BUSINESS & MARKETING MODEL OF

DONUT EMPIRE HHoHLLCLLCL.1 Kaki Bukit Road 1 #04-21 Enterprise One Singapore 415934

Prepared By

Donut Empire

The copyright in this document is vested in Donut Empire. It must not be reproduced, in whole or part, or disclosed to third parties except with the written consent of Donut Empire.

Contents

SECTION 1– EXECUTIVE SUMMARY 3

SECTION 2 – DONUT EMPIRE BRAND STORY 8STRENGHTS................................................................................................................5SERVICE EXCELLENCE...............................................................................................6INNOVATIVE TECHNOLOGY........................................................................................6QUALITY AND SAFETY...............................................................................................6

SECTION 3 – TARGET MARKET OVERVIEW 7CUSTOMER PROFILE..................................................................................................7MARKET SEGMENT....................................................................................................7

SECTION 4 – BUSINESS & MARKETING DETAILS 8TYPE OF BUSINESS....................................................................................................8TYPE OF OWNERSHIP................................................................................................8OPERATIONS IN SINGAPORE/MALAYSIA ..................................................................8NAME OF COMPANY..................................................................................................8NAME OF THE SHOP WE WISH TO OPEN..................................................................8BUSINESS OPERATIONS............................................................................................8BUSINESS EXPANSION...............................................................................................8SPACE REQUIREMENT................................................................................................8PRODUCT PRICE RANGE...........................................................................................8Product Category.................................................................................................8

SECTION 5 – QUALITY ASSURANCE 9

SECTION 6 – DONUT COLLECTION – THINK CREATIVE 9

SECTION 7 – MANAGEMENT DETAILS 11

SECTION 1– EXECUTIVE SUMMARY

DONUT EMPIRE is the largest donut chain in Singapore that offers a wide variety of

freshly made gourmet egg-free donuts everyday with Hot Smiles. In addition to being

halal-certified, DONUT EMPIRE exquisite egg-free donuts offer remarkable soft and

smooth textures with exceptionally delicate and creative designs. With their distinctive

Golden Yellow and Zingy Orange themed cafes and kiosks, Donut Empire is spanning

across Singapore, Malaysia, Indonesia, Brunei, China, India and Dubai delivering its

freshest and tastiest donuts with a Hot Smile. Vaunting over 40 yummy flavors, our tasty,

fresh and soft donuts are sold and consumes daily to the tune of over 100,000 in South

East Asia. Our market research indicates that DONUT EMPIRE’s breadth of appeal

extends across major nationalities and cultures – where every bite rings sweet moments

to people from all walks of life – students, homemakers, professionals, managers,

executives and business owners.

DONUT EMPIRE community consists of over 150 employees and a constellation of

intelligent partners globally – principals, suppliers and business partners. Donut Empire

believes that a fully engaged and leveraged diverse work force is a competitive

advantage. The company’s goal is to grow that competitive edge by fostering a happy,

loving and fun culture. Since then CEO, Sky Chiew has been awarded the spirit of

Enterprise Award as well as the 7th Asia Pacific International Honesty Enterprise Keris

Award.

DONUT EMPIRE touches live and rings sweet moments all around the world. In order to

live up to these goals and be “in touch” with global markets, customers and business

partners, DONUT EMPIRE requires diverse workforce. That is why the company is proud

of its long tradition of valuing, trusting and respecting diversity. DONUT EMPIRE

recognizes the direct link between engaging the unique talents of employees and the

company’s success, both in the short and long term. Diversity therefore is a fundamental

component of DONUT EMPIRE winning business strategy for success.

DONUT EMPIRE is also committed to strong corporate social responsibility, supporting

and participating in fundraising programs, and sponsorship of local charity and

community events. To that end, DONUT EMPIRE is destined to be a Global and Trusted

Brand that delivers the Freshest and Tastiest Donuts with a Hot Smile.

Find more information online at www.donutempire.com

SECTION 2– DONUT EMPIRE BRAND STORY

The entrepreneurial birth and rising dough of Donut Empire has its success firmly

ingrained in the meaning and philosophy of the ancient Chinese Gold Coin.

The ‘Outer Rounded Edge’ circling around the ‘Square’ reflects the inner beauty in us to

be Happy, Loving and Joyful. The ‘Square’ in the middle signifies the need to be

Disciplined, Energetic and Noble in every endeavor attempted. It was this spirit of

Harmony that was inculcated by the founders’ mother to both brothers, Sky and Steven

Chiew at an early young age.

Therein, the Donut Empire Logo resembles that of the round gold coin with a square hole

in the center, which symbolizes the ability of the Management and her people to work

together to ring and bring Sweet Moments through every fresh and tasty bite of the

donut. From the first café at Katong to 13 outlets in Singapore, Donut Empire is now the

largest Donut Chain with its headquarters and production facility in Singapore.

First Flagship store in Singapore – Tanjong Katong since July 2007

At the 20th Anniversary of the Singapore Dragon Boat Association, Sky was encouraged

by his chat with Senior Minister Goh Chok Tong on the donut business. It was this very

quip “Yes, you must do it. Take the Singapore brand to other countries” that inspired Sky

to roll out the expansion plans for Donut Empire beyond the shores of Singapore.

Strengths

DONUT EMPIRE is destined for global conquest and centered on its commitment to:

- Providing tasty, fresh and soft donuts and unique flavors that rings sweet moments with every bite:

- Being a global brand leader in relevant food research and technology in the savories and snacks industry: and

- Maintaining economic success based on experience in managing the business with excellence and training, and developing people to build it.

Service Excellence

DONUT EMPIRE understands what it takes to stay in the forefront of service excellence

and has continuously embarked on training programs such as Customer Centric

Initiatives (CCI), a national program by Spring Singapore to delight her customers

consistently through that synergistic combination of quality products (tasty, fresh and

soft donuts), excellent service and speed. The underlying purpose behind this CCI

program is to bring a service culture transformation in DONUT EMPIRE through

cultivating a “Hot Smile” spirited mindset amongst the management and staff t

collectively ring and bring “Sweet Moments” experience to customers.

Innovative Technology

Through innovative design flavors and understanding of customer needs, DONUT EMPIRE

has reliably empowered the sweet and savories market with the freshest and tastiest

donuts that literally melt in your mouths. DONUT EMPIRE has garnered many awards

such as the Outstanding Performance Awards in 2008. These awards have augured well

for DONUT EMPIRE’s extraordinary success in bringing the quality products of their

principals to the regional market place.

Quality and Safety

Quality and safety Control starts with our own production facilities, which purchase the

finest quality recipes and produce proprietary DONUT EMPIRE mixes. Our HACCP (Hazard

Analysis and Critical Control Points) certified laboratories runs stringent quality checks

and tests on all key ingredients and each batch of mix to ensure hygiene and safe

standards are maintained.

SECTION 3 – Target Market Overview

Customer Profile

Currently, Donut Empire reaches out to across the board market segments with

customers from all walks of life, all ages and gender.

Market Segment

Donut Empire’s target customer base is classified into 3 Generations - the largest groups

of customers are from Gen X (age 25 – 42) and ending Gen Y (age 18 – 24) with a total of

81%.

In terms of market segmentation, students form the largest pie of 63% with PMEBs

(Professionals, Managers, Executives and Business Owners) next with about 36%.

SECTION 4 – DONUT EMPIRE’S BUSINESS PROFILE

DONUT EMPIRE’s retail frontline cafes/kiosk outlets and production are among the best

available in the food and beverage industry in Singapore. In Singapore, Malaysia,

Indonesia and Dubai, Donut Empire can offer both café and kiosk concepts retail outlets

anywhere from the size of 200sqf to over 1000 sqf.

Type of Business:- Commercial /Retail

Type of Ownership:- Fully owned/ Partnership

Operations in Singapore & Malaysia: - First flagship café outlet is located at Kuala Lumpur

Name of Company:- Donut Empire Holding Pte. Ltd./Donut Empire Holding Sdn. Bhd.

Name of the shop we wish to open : - Donut Empire

Business Operations: - A Regionally Established Brand (Origin from Singapore)

Business Expansion:- Plans to open another 50 Cafes/kiosks in Malaysia within the next 1 year

- Expansion are in the pipeline to open another 50-100 throughout Malaysia in the

next 2 to 3 years

Space Requirement: - Anchor Outlet (min 1000 sqf)

- Shop in Shop (min 400 sqf)

- Kiosk (min 200 sqf)

Product Price Range- High : RM 3-6

- Medium : RM 2-3

- Low : RM 2

- Most Expensive : Donut Wedding Cake

- Least Expensive : Beverages

Product Category- Donuts, Donut Cake, Coffee, Tea, Beverages, Ice Cream/ Sorbet

DONUT EMPIRE MOBILE VAN

DONUT EMPIRE KISOK W SITTING

SECTION 5 – QUALITY ASSURANCE

Healthier – Our donuts are egg-free and ‘Non Trans Fat’

Original – Our ingredients are of the finest quality from the dough right down to the

flavors used (Belgium award winning premium chocolate, imported premium spices)

Tasty – Our donuts are fresh and soft that they melt in your mouth (Thanks to our

stringent quality control and proprietary recipe)

SECTION 6 – DONUT COLLECTION “THINK CREATIVE…”

To find out the latest promotions, new launch flavors and activities, visit Donut Empire Blog at http://donutempireblog.blogspot.com/

SECTION 7 – DONUT EMPIRE DETAILS

Names from left to right : Steven Chiew (Executive Director/Co-Founder), Deepak Dadlani (Executive Director) and Sky Chiew (CEO/Co-Founder)