PROJECT 1BUSINESS PLAN PRESENTATION

Introduction To Business [BUS 30104]Foundation in Natural & Built Environment 01/2015

GROUP MEMBERS

• Seow Koji Takehira• Sirajeddin Ali Suliman• Mohamed Haroon Faleel• Fong Kah Yan (Louise)• Omar Layas

DESIGN SOLUTION SDN.BHD

BusinessBACKGROUND

Our Business

• Nature of our Business :Product• Type of Product: Tiles• We are a business company whom suppli

es tiles to:

-Contractors-Designers

LOCATION• Our Company is Located in:

74 , SS 15/4b, SS15, 47500 Subang Jaya, Selangor, Malaysia

Our company is located at a strategic position where many architecture firms are around us.

REASON• Tiles are one of the common object we se

e in our daily life.

• -Tiles can be serve as aesthetic purposes which comes with many different types and materials

CERAMIC PORCELAIN

• Tiles and its arrangement can also reflect to different cultures.

• We are highly motivated to introduce tiles as our product, to give designers the freedom to choose and make use the most out of it.

MarketingAnalysis

INTRODUCTION I am going to start a floor tiles business called D

esign Solution company.Hence, there are many factors of concern to be considered prior venturing into this field of competition.

• As we know that the market nowadays are very competitive, what are the possible avenues available to achieve our business goal？

• In order to do so, I’m going to do a marketing analysis on tiles market.

TARGET AUDIENCEWe can sell the tiles to:1.Contractor (70%)2.Walked in customers/end users(30%)

CONTRACTOR(MAIN SOURCE OF CUSTOMER)

• Bigger purchasing volume• High possibility or being our regular

customer

Strength

• Shop location is good• Lower price• Good quality • Efficient service• Prompt delivery

Weakness • Our outlet is not as big as those

established company, and therefore may not have an impressive product display

• They may have larger ex-stock availability

Opportunities• Higher volume of walked in customers• Good personal services• Direct personal relationship with

customers

Threat

• The bigger company may have more “special offer” and “discount” which may attract our customers

MarketingStrategy

Marketing Strategy is the fundamental goal of increasing sales and achieving a sustainable competitive advantage

Product Benefits

• Our Tile is Imported.– Made in Japan / USA– Better Quality– Better Value for Price

• Has many different Varieties– Colors– Shapes– Brands

Sales Strategy• Joins trade exhibitions to get customers

• Visit contractor company to introduce our company and products.

• Customers can make their order through:– Phone– Walk-in– E-mail

• Delivers the product within 3 working days:– 1st Day : Receive Order, purchase from wholesaler– 2nd Day: Receive product from wholesaler– 3rd Day : Product Delivered to customer

PRICING• Cost of Tiles:

– Ceramic tiles = RM 12/pc– Porcelain tiles = RM 20/pc

• Retail Price– Ceramic tiles = RM 20/pc– Porcelain tiles = RM 28/pc

• Profit as a percentage of what we sold: 40%

Promotional Activity• Trade Exhibition

– Archidex – OneBuild– Building & Construction

Promotional Activity• Stock Clearance

– 15% Discount for Tile from Previous Years

• Discounts– 5% Discounts =1,500 Tiles– 10% Discounts =5,000 Tiles– 20% Discounts =8,000 Tiles and Above

• Phamplet– Company Info– Catalogues

ADVERTISING

• Online Advertising– Social Media

• Facebook Page• Twitter• Instagram

– Website

ManagementStrategy

Our business structure

• Company Structure: Partnership• Reasons:

1. More capitals available.2. Have greater borrowing capacity.3. High-calibre employees can be made partners4. Easy to change legal structure later if circumstances change.

Job titles and roles

Administrative Manager •Supports operation of the b

usiness

•Ensure that there is effective information flow

•Ensure that the resources are employed efficiently

Job titles and roles

Marketing Director•Plan marketing and branding objectives

•Expand product solutions and offerings.

•Prepares marketing strategies

•Design print ads and publications

Job titles and roles

Group Sales Director •Get new clients by network

ing, prospecting

•Ensure Customer satisfaction

•Come up with strategies, tactics,profit target,sales plan.

•Set weekly, quarterly and annual goals for sales staff

Job titles and roles

Budget Analyst •Develops, critiques, analyz

es and implements budget.

•Estimates future budgetary needs.

•Ensure that the company is efficient and raising the profit of the company

Job titles and roles

Customer Service Representative•Listen and respond to customers need and concerns.

•Provide Information about product and services.

•Review or make changes to customers account.

•Handle returns or complaints

Number of employees

LOWER LEVEL EMPLOYEE2= Marketing Assistant 2= Sales Assistant2= Accounting Assistant2= Cleaner

MID-LEVEL EMPLOYEE1= Marketing Manager1= Sales Manager1= Accountant

FINANCIAL PLAN

Funding Requirements

Capital Required : RM 500,000

Percentage:75% by Owner's = RM 375,00012.5% from Maybank = RM62,50012.5% from CIMB = RM62,500

50% of total capital spent on starting a business= RM250,000(Utility, Equipment, Material, Rent, Renovation, Legal Documents)

PROFIT FIGURECost of tiles:Ceramic Tiles : RM12/pcPorcelain Tiles: RM20/pc

Final Retailing PriceCeramic Tiles : RM 20/pcPorcelain Tiles : RM28/pc(Profit of role we sold 40%)

Targetted Sales per Month : 10000 tiles (1:1=Ceramic: Porcelain) =RM 240,000

Forecasted Annual Sales : RM 2,880,000Forecasted Sales for next 3 years : RM 8,640,000

PROFIT FIGURESales per month : RM 240,000

Liability (Loss) = (RM 175,500)Utility and Resource fee: (RM 5,000)Maintanance Fee : (RM 2,000)Insurance : (RM 1,000)Rent : (RM 5,000)Tax : (RM 500)Miscellaneous : (RM 2,000)Cost of Tiles: (RM 160,000)

Total Profit per month = RM 64,500

Dividing ProfitLOW LEVEL EMPLOYEE : RM1,600 x 8 people = RM12,800

MID LEVEL EMPLOYEE :RM 2,500 x 3 people = RM 7,500 PARTNERSHIP [RM 30,000] (By Capital Contribution)Partner A 20% = RM 6,000Partner B 10% = RM 3,000Partner C 30% = RM 9,000Partner D 25% = RM 7,500Partner E 15% = RM 4,500

LOSSES ARE DEDUCTED FROM COMPANY'S BANK ACCOUNT

REMAINING RM 14,200 FOR COMPANY BANK ACCOUNT

FORECAST PROFIT• Total Amount of Profit in First year

RM 64,500 x 12 month = RM 774,000

• Total Amount of Profit for next 3 years. (Targetted)RM 774,000 x 3 years = RM 2,322,000

Conclusion

Our Action Plan :

•Increase Sales and Profit•Maintain Good Relation with contractor and customer

•Efficiency in Workflow•Improve communication•Have meetings and discussion

•Effective use of Resources•Reduce Loss of Budget•Make use of available resource

•Have a good social connection•Gains Trust•Company Reputation Increase

Reference

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