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Lovato Bakery Café is a partnership between 5 individuals operating out of Ampang, Selangor, Malaysia. The business was established in March 2013 and specializes in producing and selling cheese tarts in 5 flavors. The business plan outlines the company's vision, objectives, management structure, marketing strategy, and financial projections. It identifies key competitors in the area and provides sales forecasts projecting over RM1 million in annual revenue.
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- 1. The Lovato Bakery Café Business Plan
- 3. "LOVATO BAKERY CAFÉ" INTRODUCTION OWNER AND PARTNERS Main Founder: Nurul Azura binti Ahmad (General Manager) Partners: Nurul Syazwin binti Zakaria (Administration Manager) Nor Siti Aisyah Binti Shoeb (Marketing Manager) Nur Shamira Binti Abdul Manaf (Operation Manager) Mardhiah Binti Muhamad Sham (Financial Manager)
- 4. INTRODUCTION INTRODUCTION INTRODUCTION Nature of Business: Food Business Form of Business: Partnership Main Activity: Produce and Selling Cheese Tart Flavor: Strawberry, Blueberry, Orange, Kiwi, Chocolate Date of Establish : 20th March 2013 Business Address: LOVATO BAKERY CAFÉ No.4, Ground Floor, Lorong Kolam Air Lama 1, 68000 Ampang, Selangor Darul Ehsan Contact Number: 03-5553433 E-mail: lovatobakerycafe@yahoo.com Facebook: http://www.facebook.com/lovatobakerycafe
- 5. HISTORY ABOUT THE COMPANY At the beginning, we run a virtual business and we decided to open a franchise because we got a good response from our existing customers. At the time, we run the business by ourself and we also hire 1 worker under Marketing Manager and 9 workers under Operating Manager. Our franchise provide: Air conditioner Electricity Free Wi-Fi
- 6. LOCATION No.4, Ground Floor, Lorong Kolam Air Lama 1, 68000 Ampang, Selangor Darul Ehsan
- 8. INTRODUCTION Lovato bakery café is a company selling only pastry good which specialize in tarts. The reason we name our company “Lovato bakery café” is because we operate in a small shop located near office, residence and we sell “mini” pastries. Everything we sell is linked to the word “mini”.
- 9. Vision To produce quality deserts to a consistently high standard. Mission 1) We provide the best possible service to our customers that meets or exceed their expectation. 2) We continually strive to meet higher standards inour operations for the benefit of our staff and customers. 3) We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work. Objective 1) To offer our customer the fresh desserts. 2) Achieve 99% customer satisfaction and develop repeat 3) customer base. 4) Create stable customers. 5) Increase dessert production to meet the required demand.
- 10. Schedule and Task Responsibilities General Manager The general manager’s responsibilities involve supervision, public relations, marketing, profitability and sales, service, reporting, capital requirements, and other duties as assigned by the board of directors. The general manager will maintain a positive attitude that promotes team work within the cooperative and a favorable image of the cooperative. Marketing Manager Defined as the activities that are carried out systematically to encourage and increase sale of products/services as long as the activities are in line with religious and ethical practices. It is also maintaining customer, monitoring and analyzing market trends and studying
- 11. Financial Manager Financial managers control a organization's assets, including its investments and cash, to maximize their efficient use. Operation Manager The responsibilities of an operations Manager involves the process of planning, designing, and operating production systems and subsystems. Administrative Manager The administration of any business forms an important base from which the business routines are maintained and controlled.
- 12. ADMIN BUDGET Fixed assets Expenses (RM) Monthly Expenses (RM) Other Expenses (RM) Furniture and Fittings 4 000 - - Salaries - 8 050 - Rental - 3 000 - Rental Deposit - - 9 000 Utilities Deposit - - 1 000 Petrol - - 300 Business registration and license - - Total 4 000 3 000 11 050 13 300
- 14. Lovato Bakery Cafe twist is its authenticity. By offering light and sweet tastes of cheese tart with different and variety flavor that is prepared from premium ingredients that contain real cheese benefits, it is guaranteed to satisfy the most discerning taste buds.
- 15. PRODUCT DESCRIPTION Our company provide product such as dessert that is mainly made up with cheese tart. This cheese tart was combined with fruit topping to ensure that it have its own specialty. This type of product are already exists. So we make up a new ideas from the existing product in the industry and came out with our own product line and branding (LOVATO BAKERY CAFE). Mainly, we follow up the hot trend and lifestyles of peoples. Nowadays, most people want something new and we are ready to improve and develop more products to ensure that we manage to fulfill our customer’s needs.
- 16. Product Features • We offer varieties of flavor for cheese tart and varieties of toppings. We also provide 5 type of foods. • TOPPING • Chocolate • Blueberries • Strawberry • Orange • Kiwi
- 17. Targeted Market • In Cheras there is 587,550 peoples living here covering an area 59.31 km2. Gender of male is 82,582 peoples and female is 80,968 peoples. • We have selected these two places because it has high population of residency and they are places where people are ready to spent money and shopped. We have specifically chosen these strategic locations for our product to be promoted and sell.
- 18. Geographic Segmentation • Due to this segment, our company set up this business on place with high populations which are the centre of AMPANG cities where many people around nation gather for many purpose. People who live in the cities are more aware and educated about tastes, therefore this place is strategic to do the business along with the company vision. We target to getter customer from Ampang around 20,036 peoples.
- 19. Demographic Segmentation • Age and Life-Cycle Stage Our products are suitable for all age of consumer which include from kids until the elderly. We target customer from age 13-60 years old. And also child among 6-12 years old
- 20. Gender Segmentation • Since our products are favourite and healthy food, we provide to all gender. Because our product is suitable for all gender. Its provide suitable design and taste of food for men and female. We had survey that around Ampang we have 20,036 customers. Gender Population Man 10008 Female 10028
- 21. Income Segmentation • Since our company located in town, so range of income is more from middle-income group to highincome group. Price of our product is not so expensive. So customer from lower-income group also can purchase our product.
- 22. Psychographic Segmentation • Our products are basically for consumers which consume healthy lifestyle and educated social life. Those who love cheeses, fruits and sweets and have high awareness toward health will be our main target.
- 23. Market Size • Market size refers to the total potential purchase of the market. This includes purchase a competitor’s product within the same market in order to identifies their quality and price of their products. BI Costumers SALES/ANNUALLY (RM) L. 1 Teenagers 600,000 2 Children 150,000 3 Adult and Older 350,000 TOTAL 1100,000
- 25. COMPETITION • After viewing the market, we find that we have three competitor. The competitor is Nabe Bakery Café, Meor Bakery and Just Lildaisy Bakery. • Nabe Bakery Café : This cafe in Ampang was bustling, filled with mostly Korean patrons. We found out that Nabe Bakery Cafe is manned by a Korean husband and wife team, and that they use mainly ingredients imported from South Korea for their cakes and breads. This company also offered international food and trended now. But this company is not satisfied our Asian customer which like to taste something more unique but simple like cheese tart.
- 26. • Meor Bakery : Meor Bakery has a unique position within the baked goods industry. They offered all type of bread, muffin. Their company prefer order for the ceremony. But their company did not have enough qualities in making tasty cheese tart. •Just Lildaisy : This bakery good in making cake and bread. Their more refer for event like party. This bakery not provide cheese tart for the customer.
- 27. Market Share market share before Lovato entering the market BIL. COMPANY MARKET SALES/ANNUALLY SHARE (RM) 1 Nabe Bakery Cafe 36% 396,000 2 Meor Bakery 32% 352,000 3 Just Lildaisy 32% 352,000 TOTAL 100% 1100,000
- 29. Market share after enter the market :
- 31. Sales Forecast Sales Forecast For LOVATO BAKERY CAFE Year 2013 Month Sales collection January RM90,000 February RM85,000 March RM92,000 April RM91,000 May RM87,000 June RM95,000 July RM89,000 August RM95,000 September RM95,000 October RM93,000 November RM90,000 December RM98,000 Total RM1100,000
- 33. Product • LOVATO attributes are its ability to meet or exceed customer expectations consistently, its speed in responding to customers demand, and its anticipation of new customers. LOVATO want to create some product that can create value to the customers and give them satisfaction. LOVATO want make cheesetart that will be named in the town. LOVATO trademark is “cheesetart best in the town ever”
- 34. Packaging • Some design and packaging that so attractive for customer. Suitable for teatime, celebration, gift and etc. • Ours packaging is compatibility with the product, processing and storage conditions • product protection from chemical, physical and biological sources of deterioration • suitability for the intended final use of the product (microwavable) • ability to withstand the stresses of distribution (won't degrade or break)
- 36. Labelling • Nutrition labelling refers to the standardized presentation of the nutrient content of a food. Found on food labels under the heading, "Nutrition Information", nutrition labeling includes serving size in household units and nutrients per serving. Usually energy (calories) protein, fat and carbohydrates are listed.
- 38. Quality • Ours product is very qualified because of the ingredients, mixing, attractiveness and tastes. We had make cheese tart with quality and nutrition ingredient. And we mixing it with favorite flavors. We also make it look attractive and make it tastes that everyone will love it.
- 39. Pricing • LOVATO provide high quality speciality cheese tart product that customized to its customer needs. The value of product is reflected in its premium price PRICE = COST PER UNIT + MARK-UP =RM0.80 + ( 25% × RM0.80) =RM0.80 + RM0.20 =RM1.00
- 40. DISTRIBUTION STRATEGY • DIRECT TO CUSTOMER LOVATO provide personal selling to the customers. Where customer can directly deals with LOVATO to make purchasing. Customer can make order via email, online and direct to counter at LOVATO BAKERY CAFÉ, No. 4, Ground Floor, Lorong Kolam Air Lama 1, 68000 Ampang. Customer also can make online order in LOVATO facebook inbox, or emailing to lovatobakery@yahoo.com • LOVATO CUSTOMERS
- 41. Promotion
- 42. Signboard
- 43. MARKETING BUDGET FOR LOVATO BAKERY CAFÉ YEAR 2013 ITEMS TOTAL UNIT PRICE PER TOTAL UNIT (RM) BROCHURES 3,000 COST 1.00 RM1.00 × 3,000 units = RM 3,000 SIGNBOARD 2 300 (RM300 x 2) = RM 600 BUSINESS CARD 2,500 0.20 RM 0.20 × 2,500 units = RM 500 ADVERTISEMENT (MEDIA MASSA- NEWSPAPER) 130 RM 200 × 12 months = RM 2400 (5CM × 5CM = RM 200) TOTAL COST RM6500
- 45. INTRODUCTION • Objective of operation department is to provide better quality of product, punctual to due date and will make the customers satisfied towards our product • Main focus in operation management is to provide diverse of healthy flavour in mini cheese tarts that we produced and supply in high quality to fulfil our customer needs and wants.
- 46. Process of Flow Chart Measure flour, egg, butter, sugar, cream cheese, vanilla essence, etc. Mix and blend ingredients Ensure that the dough is of the right quality The dough is formed into required shape ◦ The crust are baked at 90-110◦C for 20-25 minutes Crust are taken out from the oven to cool Crust of poor quality are separated/rejected
- 47. Crust are filled with fruits and cream cheese that has been prepared earlier ◦ Tarts are baked at 90◦C for another 15 minutes Tarts are taken out and packed into packages The packages are inspected before being placed into boxes The boxes are placed in the store before being distributed to the market
- 48. Material Requirement List of materials required INGREDIENT Flour Eggs Caster Sugar Icing Sugar Vanilla Extract Cream Cheese Cocoa Powder Butter AMOUNT REQUIRED FOR 60 TARTS 290 gm 2 units 50 gm 50 gm 2 ml 250 gm 177 ml 170 gm Bill of materials per unit INGREDIENT Flour Eggs Caster Sugar Icing Sugar Vanilla Extract Cream Cheese Cocoa Powder Butter AMOUNT REQUIRED/TARTS 5 gm 0.03 of an egg 0.83 gm 0.83 gm 0.03 ml 4.2 gm 2.95 ml 2.83 gm
- 49. Quantity of raw materials required INGREDIENT Flour Eggs Caster Sugar Icing Sugar Vanilla Extract Cream Cheese Cocoa Powder Butter AMOUNT REQUIRED/month 5 gm x 50,000 = 250,000 gm 0.03 of an egg x 50,000 = 1,500 gm 0.83 gm x 50,000 = 41,500 gm 0.83 gm x 50,000 = 41,500 gm 0.03 ml x 50,000 = 1,500 ml 4.2 gm x 50,000 = 210,000 gm 2.95 ml x 50,000 = 147,500 ml 2.83 gm x 50,000 = 141,500 gm
- 50. Manpower Requirement Planning Remuneration EPF Socso per Month (13%) (2%) Permanent RM 900 RM 117 RM 18 6 Permanent RM 900 RM 117 RM 18 1 Permanent RM 950 RM 124 RM 19 Position No. Job Status Bakery Clerks 2 Food Preparation Worker Supervisor Total RM 1,530 (RM 765 x 2) RM 4,590 (765 x 6) RM 807
- 52. Location
- 53. Operation Budget Particular Machine requirement Working capital Fixed Assets RM 3,596 Raw materials Carriage inward and Duty Salaries, EPF and SOCSO Operation overhead Pre-operation and other expenditure Other expenditure Deposit (rent, utilities, etc) Business Registration and Licences Insurance and Road tax for motor vehicle Other preoperations expenditure Total Monthly Expenditure Others Total RM 3,596 RM 545.40 RM 7,734 RM 7,734 RM 9,479.40 RM 9,479.40 RM1,200 RM 3,596 RM 545.40 RM 1,200 RM 19,058.80 RM 22,654.80
- 54. FINANCIAL PLAN
- 55. Introduction of financial plan • A financial plan incorporation all financial data derived from the operation budgets in example the marketing, production or operation and administration. • Based on this financial data, projections are then prepared via several pro forma statements, namely cash flow, income (profit and loss) statement and balance sheet. • The importance of financial plan is – To determine the size of investment – To ensure that the initial capital is sufficient – To identify and propose the relevant sources of finance.
- 56. The process of developing a financial plan Step 1 : Gather all financial input Step 2 : Prepare the project implementation Step 3 : Prepare the sources of finance schedule Step 4 : Prepare the pro forma cash flow statement Step 5 : Prepare the pro forma income statement Step 6 : Prepare the pro forma balance sheet Step 7 : Perform financial analysis based on the above pro forma statements
- 57. • • Project implementation cost The table shows that project implementation cost for the production of cheese tart. The fixed cost assets own by our company are equipment, office furniture, and machine. Total working capitals that cover administrative, marketing and operational budget are RM 37,460. Cost for pre-operations and other expenditure are RM 5276. Requirements Cost F ixed Assets Land & Building Office Equipm ent Signboard Machine W orking Capital 1 months Adm inis trative Marketing Operations Pre-Operations & Other Expenditure Contingencies 5% TOTAL 30,000 600 3,596 22,275 6,935 8,280 25,679 4,868 102,234
- 58. Source of Financing The table show the source of finance for LOVATO BAKERY CAFÉ. The source of finance come from a loan, hire-purchase and own contribution by each members of the company. Requirements Cost Loan Fixed Assets HirePurchase Own Contribution Cash Land & Building Office Equipment 30,000 30,000 Signboard 600 600 Machine 3,596 3,596 Working 1 months Capital Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies 5% 22,275 6,935 8,280 25,679 20,403 22,275 6,935 8,280 5,276 4,868 50 4,818 TOTAL 102,234 20,454 81,780 Existing F. Assets
- 60. MONTH CASH INFLOW Capital (Cash) Loan Cash Sales Collection of Accounts Receivable TOTAL CASH INFLOW PreOperations 2 3 4 5 6 7 8 9 10 11 TOTAL YR 1 12 81,780 20,454 YEAR 2 YEAR 3 1,210,000 1,265,000 90,000 91,000 87,000 95,000 89,000 95,000 95,000 93,000 90,000 98,000 90,000 85,000 92,000 91,000 87,000 95,000 89,000 95,000 95,000 93,000 90,000 98,000 1,202,234 1,210,000 1,265,000 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 16,500 3,000 300 198,000 36,000 3,600 217,800 39,600 3,960 250,470 45,540 4,554 2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 2,475 29,700 32,670 37,571 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 5,900 900 135 70,800 10,800 1,620 77,880 11,880 1,782 89,562 13,662 2,049 546 Operations Expenditure Cash Purchase Payment of Account Payable Carriage Inward & Duty Salaries, EPF & SOCSO 92,000 2,475 Marketing Expenditure Promotion Salary EPF&SOCSO 85,000 81,780 20,454 1,100,000 16,500 3,000 300 102,234 CASH OUTFLOW Administrative Expenditure Salary Rental Petrol Vehicle Budget SOCSO &EPF Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Fixed Assets Purchase of Fixed Assets Land & Building Purchase of Fixed Assets Others Hire-Purchase Down Payment Hire-Purchase Repayment: Principal Interest Loan Repayment: Principal Interest Tax Payable TOTAL CASH OUTFLOW CASH SURPLUS (DEFICIT) BEGINNING CASH BALANCE 1 546 546 546 546 546 546 546 546 546 546 6,006 6,552 7,207 7,734 7,734 7,734 7,734 7,734 7,734 7,734 7,734 7,734 7,734 7,734 92,808 102,089 117,402 13,479 14,827 17,051 4,091 818 0 513,949 696,051 4,091 614 0 589,773 675,227 687,911 1,383,962 7,734 13,479 11,200 11,200 1,000 1,000 34,196 34,196 341 85 46,396 55,838 341 85 341 85 341 85 341 85 341 85 341 85 341 85 341 85 341 85 341 85 50,850 39,150 37,916 47,084 37,916 54,084 37,916 53,084 37,916 49,084 37,916 57,084 37,916 51,084 37,916 57,084 37,916 57,084 37,916 55,084 37,916 52,084 341 85 0 37,916 60,084 55,838 94,988 142,072 196,156 249,240 298,324 355,408 406,491 463,575 520,659 575,743 627,827 4,091 1,023 0 514,323 687,911
- 61. Profit and Loss ProForma Year 1 Sales Year 2 Year 3 1,100,000 1,210,000 1,265,000 20,000 20,000 Less: Cost of Sales Opening Stock of Finished Goods Production Cost 99,549 110,045 125,676 Less: Ending Stock of Finished Goods 20,000 20,000 40,000 0 0 0 79,549 110,045 105,676 1,020,451 1,099,955 1,159,324 Administrative Expenditure 267,300 294,030 338,135 Marketing Expenditure 83,220 91,542 105,273 Other Expenditure 13,479 14,827 17,051 Business Registration & Licences 1,000 Gross Profit Less: Expenditure Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Interest on Hire-Purchase Interest on Loan 1,023 818 614 Depreciation of Fixed Assets 6,120 6,120 6,120 Total Expenditure 372,142 407,337 467,193 Net Profit Before Tax 648,309 692,617 692,131 Tax 0 0 0 Net Profit After Tax 648,309 692,617 692,131 Accumulated Net Profit 648,309 1,340,926 2,033,057
- 62. Balance Sheet Pro-Forma Year 1 Year 2 Year 3 Land & Building Office Equipment 24,000 18,000 12,000 Signboard 480 360 240 Machine 2,877 2,158 1,438 Other Assets Deposit 11,200 11,200 11,200 38,557 31,718 24,878 530 20,000 500 20,000 480 40,000 687,911 708,441 1,383,962 1,404,462 2,059,189 2,099,669 758,198 1,447,379 2,135,747 81,780 648,309 730,089 81,780 1,340,926 1,422,706 81,780 2,033,057 2,114,837 16,363 12,272 8,181 16,363 12,272 8,181 546 746,998 1,201 1,436,179 1,529 2,124,547 ASSETS Non-Current Assets (Book Value) Current Assets Stock of Raw Materials Stock of Finished Goods Accounts Receivable Cash Balance TOTAL ASSETS Owners' Equity Capital Accumulated Profit Long-Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES