Assignment 1 Case Study (Hausboom) PDF

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FACULTY OF BUSINESS AND MANAGEMENT DIPLOMA IN BANKING STUDIES

ASSIGNMENT 1: CASE STUDY HAUSBOOM SDN. BHD.

SUBMITTED TO: FARRAH NADIA BINTI BAHARUDDIN

PREPARED BY: AMEER ARIFF BIN AMEER HAMZAH

GROUP : BA119 5C

SUBMISSION DATE: 13 NOVEMBER 2020

Table of Contents

PAGE

TITLE

3

ACKNOWLEDGEMENT

4

1.0 EXECUTIVE SUMMARY

5-8

2.0 INTRODUCTION: ENTREPRENEUR & BUSINESS

9 - 11

3.0 PERSONAL ENTREPRENEURIAL COMPETENCIES

12 - 13

4.0 SWOT ANALYSIS

14

REFFERENCES

2

Acknowledgement First of all, I would like to thank ALLAH S.W.T and his messenger, Prophet Muhammad S.A.W. It is because of his blessing, I possible to finish this assignment. I have finally managed to fill up this assignment with great and enthusiasm and determination. All the time spent to search and discuss idea as well as justifying theoretical clues to drive the output were worth our effort and time.

Therefore, I would like to acknowledge with thanks, the individuals who had guided me in making this assignment. Firstly, we would like to thank to my Fundamentals Of Entrepreneurship’s lecturer, Farrah Nadia Binti Baharuddin. She had guided me on how to complete the assignment. Every week in class, she always remind and give guideline how to search information about this assignment. Then, I would like to thank to all my friends who had helped and shared idea with me. They also gave us support and advice. Lastly, I want also thank to my parents who always prayed for me and giving their time to hear our problem.

I hope my assignment is complete and will be received. I had used our effort and acknowledgment to search information and ideas. Hope my effort was worth it.

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1.0 Executive Summary The Boom Beverage’s product Hausboom, a sparkling real juice drink established in 2014. The owner of this company is Mr. Azri Zahir Azmi or also referred to as John Lemon is that the founding father of Hausboom. The Boom Beverage Sdn. Bhd. could be a company registered in Malaysia and having its registered address at No. 22A-3, Jalan 17/54 Section 17, 46400 Petaling Jaya, Selangor. the assembly fac of Halal and Good Manufacturing Practice (G cover, health and also the environment, as expr in its recipes and therefore the utmost care prov storage , transport and retailing of its produc governance is in accordance with the policies of

Hausboom was first created during a sma capacity of only 150,000 bottles. Hausboom S bottles with six different flavours like Mang Strawberry and best serve at 3℃. The drink, ta Malay, is accessible at main distributors like similarly as cafes and restaurants. Today, Hau market and cosmopolitan in Brunei and Chi Thailand, Kingdom of Saudi Arabia, Maldives, Republic of Sri Lanka and therefore the UK.

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2.0 Introduction: Entrepreneur & Business

Figure 1: Mr. Azri Zahir Azmi

Figure 2: Logo Of Hausboom

Figure 3 Hausboom Sparkling Juice

Mr. Azri Zahir Azmi or also known as John Lemon is the managing director of The Boom Beverage Sdn Bhd. He is a graduate of SM Sains Raja Tun Azlan Shah and holds a Bachelor of Materials Surveying (Construction) from the University of Malaya.

Mr. Azri has been involved in the business world since school. When he was in primary, he wanted a Deuter branded school bag worth RM200, but his parents refused to comply and gave him a school bag worth RM30. Because he wanted the bag too much, he took an opportunity to work such as to clean the table at the restaurant and sell his grandfather's durian. He learns all the details about durian so that he can give customers an insight to buy quality 5

fruit based on their wishes. Since then, he has learned a lot of business knowledge through the things he does.

When Mr. Azri joined SM Sains Raja Tun Azlan Shah in Taiping, he set out to generate side income. When form three arrived, he began to sell crackers and lollipops to other students. dHe purchased a big box of crackers for RM4.50 and sell it for RM9.00. He already make 100% profit . At that time (in 2002), he was able to buy his own Nokia mobile phone. At that time, Nokia is one of the expensive handphone brand in the market.

While majoring in Basic Science at the University of Malaya, Azri got an idea to make every student to wear a complete suit at the annual dinner because one of his father's friends had hundreds of free suits. So Azri and his friend brought all the suits for sale to other students. They sell the suit for RM50 per pair without spending capital. About 80 percent of students buy suits from them. They make a lot of profit on that day.

Initially, Azri took a degree in Applied Chemistry, but because he was not interested in the course, he moved to another major. As a result of changing majors, Azri was excluded as a PTN borrower, but he was searching for other ways to cover his finances and lifestyle. Azri joined the university debate team and participated in every debate to earn RM60 a day in addition to winning cash prizes from RM8,000 to RM27,000. He made the debate a matter of business, and a variety of debate contests were held. He also printed a ballot for the alliance candidates who contested the student election and made a profit of RM5,000. He also took photography lessons and spent the weekend of wedding photography sessions costing between RM1,500 and RM3,000 per session.

Mr Azri started his business with his brother by setting up a company and portal farmbook.my to attract farmers, fishermen, breeders to trade online. Farmbook.my did not get a response because he found that farmers and ranchers do not depend on technology. He did not give up and then joined a friend to dabble in oil and gas trading companies and when his loan to engage in agriculture was rejected by Agro Bank. He knew the reason why the bank rejected his loan because of the bank officer did now know much about agriculture industry. He saw a new opportunity, so he made a paperwork to train bank staff on agriculture.

6

Azri borrowed RM50,000 from his uncle, who was teaching farming skills at a Melaka school. On his grandfather's land in Kampung Gajah, Perak, which also has an oil palm plantation, he then began farming and developed a freshwater fishpond. When the bank sent over 30 officers to his farm to take short-term lessons, the effort turned out to be worthwhile. By sending four lecturers to educate the bank officers involved, his uncle also assisted. Azri made a small profit from the initiative. Driven by this achievement, Azri founded iGrow, an agricultural-based industrial institute that, upon graduation, offers one-year agricultural courses to students with the Malaysian Skills Certificate guarantee. His uncle even told him that he will be a tutor and give him advice. Azri 's academy, which has 12 lecturers, displayed strong success in a short span of time. About 200 students graduated from the institute.

Mr. Azri, the Hausboom founder got the idea to create sparkling juice when he was on his visit to Saudi Arabia to perform Hajj. He sat down in a café and found that people love to drink juice, but they weren't local drinks unfortunately. It made him believe Malaysia is the halal centre of the world, and neither drink comes from here. On his way back home, he had the idea of making Malaysia's first halal fizzy drinks. With very little money, Azri began Hausboom. Before buying bottling equipment from China, he mixed the drinks himself by hand. He used friends and celebrities to update the marketing campaign so that people recognised the brand when Hausboom began. Within less than half a decade Hausboom created domestically and abroad. Within seven months, Hausboom crossed more than 3,000 shops, cafés and retail outlets. They are also exported in Asia and Europe to eight countries.

Hausboom was created to fill the void in the market for premium, halal, carbonated beverages containing real fruit juice. On his interview with BeverageDaily, he said that Malaysia is the world’s halal hub but none of the drinks that he found in Saudi Arabia is come from Malaysia. Due to this problem, he came up with an idea to create his own halal beverage company to overcome this problem. Hausboom is young, healthy and trendy. It promotes culture, arts, and music. Since Hausboom has entered the industry, they have actively sought to become part of lifestyle events. They seized the initiative to become the official beverage sponsors for an event called Art of Speed 2017. In 2019, Hausboom has organized one of the biggest concerts of the year in Malaysia, Hausboom Music 2019 in Mines International Exhibition Convention Centre (MIECC).

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Since 2014, Hausboom already achieve a lot of proud achievement. Even though they just a small company from Malaysia, their name is already well known all around the world. Five years onwards, Mr. Azri exported his beverages to countries in Asia and Europe, with another 22 markets with a plant at Besut in Terengganu with a capacity of 2.5 million bottles every month. Today, Hausboom has already entered the international market and widely distributed in Brunei and China with ongoing expansion into Singapore, Thailand, Saudi Arabia, Maldives, Germany, Japan, Korea, Sri Lanka and the United Kingdom. Until today, Hausboom already achieved a lot of rewards such as, Ambank BizRACE: Top 3 Best SME, Brandlaureate: World Halal Brand Award, MIHAS: Most Innovative F&B Produts and Malaysia Good Design Mark: Best Packaging.

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3.0 Personal Entrepreneurial Competencies Personal Entrepreneurial Competencies (PECs) are the main features which successful entrepreneurs must have in order to effectively carry out their enterprise functions. The combination of expertise, skills and attitudes required to play an effective role is described as competence. When we follow this term, we link business skills to the idea of effectiveness or success during the process of recognition of opportunities. These characteristics include general and personal awareness, motivations, attributes, identity, social roles, and competences that are known to the individual or not. In other words, these qualities may also be an individual's unconscious attributes. Some of these skills are already inside the people, while other skills are learned through the training and development phase.

Sees and Acts on Opportunities First and foremost, based on my research that I do, one of the Personal Entrepreneurial Competencies that I found in Mr. Azri is Sees and Acts on Opportunities. We can find opportunity everywhere. But first, we need to look for it. Opportunity will never come to you until you look for it. Before you can see an opportunity, you have to be looking for opportunity. This seems basic but many people have given up on looking for opportunity. Sometimes we see opportunities, but we don't just use them because we know like they're nothing but issues. That is a waste and not good for entrepreneurs if they just let the opportunity to slip off.

As we know that Mr. Azri got the idea of Hausboom when he was in Saudi Arabia. He saw there is a void in the market for premium, halal, carbonated beverages containing real fruit juice. He saw the problem and turn it into opportunity. After he went back to Malaysia, he called his friends and he discuss the idea to create the first halal fizzy drinks made in Malaysia. He started the business with production over 250,000 bottles produced monthly in their first year. Within in five years since he started the business, he already expands his business to countries in Asia and Europe. All of Hausboom’s drinks are locally manufactured, with their fruit extracts sourced from overseas.

The early days of Hausboom, Mr. Azri just pour all the recipe by hand without any machinery due to lack of capital. He even use ketchup bottle as the packaging of Hausboom. His idea to custom his own packaging for has been rejected by factory because he did not achieve the requirement of the factory. Nowadays, Hausboom already has their own factory at 9

Besut, Terengganu and produced 2,500,000 bottles per month to cater their regional penetration across Malaysia, Brunei, Singapore, UK, Germany and the Middle East.

Use of Influence Strategies Next, the PCEs in Mr. Azri is he Use of Influence Strategies. An entrepreneur is able to make use of influential people to reach his business goals. Influencer is one of the famous ways to advertise your product to the customer. Based on the survey by Association of National Advertisers (ANA), 75% of the marketers using influencer as one of their marketing tools to achieve their business goals. Selection of marketing strategies is important to make sure we reach our target market.

As a small-to-medium enterprise and new company, it is hard to make people know your brand and product. Due to the lack of capital, Mr. Azri decide to choose influencer as his marketing tools. This approach is still being use until today. Before he started Hausboom, he already made a few connections with influencer through his other business. When Hausboom began, Azri used a 'hype' around this brand from friends and celebrities. One of the ways he uses to promote his product was by sending out boxes of Hausboom to the celebrities and influencer, who will then serve Azri's products to guests who visit the celebrities' events and homes.

In an interview with BaverageDaily, Mr. Azri said that in this new era, we don’t need to rely on traditional marketing tools anymore. He said that using influencer nowadays is a better option because consumer trust people that they know more than hey trust a conventional approach to marketing. Mr. Azri believes that in this era, brand come first before the product. Even other company have a high-quality product, but the failed to make their brand well known.

Problem Solving Besides, Problem Solving is one of Mr. Azmi’s PCEs. Problem solving is one of the important characteristics as entrepreneur. As the founder of your organization and the leader of your team, you will be responsible for recognizing and resolving the problems of your clients, partners, staff and your business in general. In business, we will face a lot of problem in our business lifestyle. If you fail to overcome your problem, you will fail your business, and maybe your life too. 10

Mr. Azri is a problem solver. He turned a problem into a business. When he was in Saudi Arabia, he saw a problem regarding the lack of Muslim product in a Muslim country market. He saw that as a problem and managed to turn it into opportunities. He back to Malaysia and started to make his idea come true. In a few years, Hausboom became one of the popular sparkling juice in Malaysia and world.

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4.0 SWOT Analysis SWOT is a method of analyzing these four facets of your market and reflects strengths, weaknesses, opportunities and threats. You will make the best of what you have with SWOT Analysis for your organizations. And by knowing what you lack, and eliminating threats that would otherwise catch you unaware, you will reduce the likelihood of failure. Moreover, you will begin to build a strategy that separates you from your rivals and therefore competitive in your market successfully.

STRENGTH

WEAKNESSES

Hausboom's sparkling real fruit juice

Because of new brand, Hausboom

is the new lifestyle brand with its

enter the market in Malaysia with

excentric,

limited brand awareness, where they

vibrant

and

colourful

designs.

focus more on international market

Hausboom was created to fill the void

which

in the market for premium, halal and

purchasing power than in Malaysia.

meet GMP standards.

They also faced budgeting constraint

Hausboom is a global brand that has expanded to the export market that is now available in Brunei, Singapore,

is

bigger

with

higher

because they do not received any government loan thus only limited promotion can be done

United Kingdom , Germany and the

Selling through online is not suitable

Middle East.

to implement because it may effect in

Hausboom concerns the safety, health and filling requirements of the world through the use of natural ingredients, made with quality natural fruit purée,

increasing delivery cost, less safety because of the bottles design and fail to meet the refreshment as promised (best serve at 3℃).

enriched with vitamins and fat free.

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OPPORTUNITIES

THREATS

Introduce a sparkling real fruit juice

Competing with other sparkling fruit

that offer healthy drink thus Halal and

juice company that offer more on

fulfil GMP standard to Malaysia

lower price, design and flavours

market

Competing on market location with

Introduce Hausboom into Malaysia

other sparkling fruit juice company

market

through

variable

of

segmentation Increase revenue in Malaysia market

Table 1 shows SWOT Analysis of Hausboom Sdn. Bhd.

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5.0 References

•

Arthur, R. (2018, December 20). Boom-time for burgeoning brand from Asia's fizzy drinks

backwater.

Retrieved

November

05,

2020,

from

https://www.beveragedaily.com/Article/2018/12/20/Beverage-entrepreneurs-Boomtime-for-Malaysia-s-Hausboom •

Hong, T. H. (2017, December 13). Hausboom building a long lasting beverage brand. Retrieved

November

05,

2020,

from

https://www.minimeinsights.com/2017/09/07/hausboom-building-a-long-lastingbeverage-brand/ •

Pikri, E. (2017, October 20). You've Never Heard Of This M'sian Drink, But They're Already In 7 Countries. How Even? Retrieved November 5, 2020, from https://vulcanpost.com/612441/malaysia-hausboom-sparkling-fruit-juice-drink/

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