BMC Report Kokiesbabe PDF

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Download BMC Report Kokiesbabe PDF

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1.0 INTRODUCTION 1.1 COMPANY BACKGROUND Kokies Babe is a start-up snack company located in Kuching, Sarawak. It is founded by 3 friends who share the love of baking. Our brand expects to catch the interest of people who love snack as right now snacks like cookies are very popular and have a very high demand. We plan to produce more scrumptious snacks but as of now we are focusing on our main products which is Choco Cubes.

We aim to offer our products at an affordable price to meet the demand of our target market. This food product is becoming more and more of a choice for Malaysians who love to eat snacks in their daily lives as it is very delicious and easy to get.

Kokies Babe is a small company that is still thriving in this industry. We love to bake assorted of cookies and snacks that are suitable for everyone regardless of their age. Our shop is always on the lookout for new ingredients to improve the quality of our products. Without a doubt, our product is made with halal and high-quality ingredients.

Lastly, Kokies Babe will make every effort to meet the customer's needs to the fullest and satisfy the customer's needs over time.

1.2 PROBLEM STATEMENT The problem is people nowadays love to eat cookies and snacks not only during festivities hence there are always demand for them even during normal days. Sometimes snacks are often eaten to release stress therefore people always on the lookout for the best snacks they could find. As of right now there are many viral snacks and cookies such as Choco Jar and etc. People are overwhelmed with too many brands that are selling the same type of snacks. We wanted to create something new and is still very delicious.

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1.3 SWOT ANALYSIS

Weaknessess - No promoter at retail shop

Strenghts - Wide range of market place

- Improper arrangement of product in retail shop

- Affordable price

SWOT Opportuniti - Have social media account to promoted product - Having low cost product have chances to be in any marketplace

Threats -Consumer refer to buy branding product. - Attraction from competitors such as promotion

Figure 1 The strength of Kokies Babe is we have wide range of market place. We have placed our product at all of our partners outlet and on online. Compare to our competitor at Stutong such as Sahara Bakery and Taka Cake house, we have two outlets of our partnership nearby and also our factory placed on Stutong give our strengths to sells many of our product. Our cookies have affordable price which is come with various kind of size packaging that everyone can buy it. Suitable to consume at any time. Our company weakness is our product have no promoters to distributes tester to customers. Most of consumer not willing to buy because afraid of the tastes does not match with what they expected. Next is improper arrangement of our product at retail shop. Our products are display together with others company cookies which is more popular brand. There is no proper arrangement on display of our product at their shop. The opportunity of our company have is we have social media account such as Instagram and Facebook to promoted our product online to find more consumers. We also have low-cost product which means we have bigger opportunity in term of chances to be sell at any marketplace. Lastly, as for threat, we facing the problems where consumers refer to buy branding and famous product. Consumers also attractive with our competitors in term of promotion and advertisement. 2

1.1 OPPORTUNITY RECOGNITION People nowadays love to eat snacks and home baked cookies. With the saturated market it is not suitable for us to create the same product hence we came up with a new product that will capture the heart of our consumers. It is a snack that you rarely see or not cliché. Our product not only offer scrumptious delicious snack but we also cater to those who love less sweet snacks as that is rarely to be found in the market. Kokies Babe offers snacks which is freshly made in Kuching. So, our target market is the local residents of Kuching. Apart from that, Kokies Babe is established due to the high demand of our customers as we provide them with our new product Choco Cube which comes in chocolate and strawberry flavors with an affordable price where everyone can enjoy. We hope that consumers will buy our products and will lead us to great success in the future.

1.2 PURPOSE OF BUSINESS MODEL CANVAS PREPARATION The Business Model Canvas, is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model.

The Business Model Canvas breaks your business model down into easily-understood segments: Key Partners, Key Activities, Key Resources, Value Propositions, Customer Relationships, Channels, Customer Segments, Cost Structure, and Revenue Streams. By digging into these elements of your company, you can recognize and act on areas that can be improved. It also reveals clear paths on which to build your organizational innovation strategy. Other than that, a observe the essentials. With the BMC, we always have a top-level view of what our enterprise model honestly is. It also shows which activities aren't so vital or maybe stand in the manner of achieving the goal. This is due to the fact the BMC sharpens our view of the essentials, we can in addition improve our business model.

Besides that, established presentation. BMC brings our enterprise concept into a clear dependent form. This has the advantage that others can quick understand and talk our business model. The BMC gives an outline of our commercial enterprise concept from every perspective. Thus, for example, controlling, the strategy department or control speedy receive precisely the facts that is vital to them. 3

2.0 BUSINESS PROPOSAL 2.1 BUSINESS MODEL CANVAS (BMC) The business model canvas was proposed by Alexander Osterwalder. This BMC reflects systematically on your business model, so you can focus on your business model segment by segment. It is a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances. It assists firms in aligning their activities by illustrating potential trade-offs. The Business Model Canvas can be printed out on a large surface so groups of people can jointly start sketching and discussing business model elements with post-it-note notes or board makers. It is a hands-on tool that fosters understanding, discussion, creativity and analysis. There are 9 building blocks in this BMC that we analyze. The different types of building blocks roughly show the importance parts that plays roles of the business.

2.2 BUSINESS MODEL CANVAS DETAILS There are nine elements of BMC which is customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, key partnerships and cost structure. CUSTOMER SEGMENTS Customer segments are essential part when we want build a business modal canvas. Basically, customer segments aim to sell our products or services to the customers. Customers can be divided to into well-defined group based on their behaviors, needs and other traits. Besides, customer segments can also describe through demographics such as ethnicity, age, gender, profession or on their psychographic factors such as customers interests, spending behavior and motivations. For example, our Kokies Babe targets anyone regardless of their age, gender, financial background and so on. Because we know customers like to buy something light snacks, low sugar and healthy. Often customers are more inclined to buy and try something new because human nature has been created that way.

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VALUE PROPOSITIONS Value proposition is a promise value to be delivered, acknowledge and communicated by customers. It is focus on why a client need to be loyal to one business instead of turn to another enterprise. For our company, we use simple ingredient and the way to produce it only by froze it and it’s completely done without any heat or using oven. our cookies using high fine ingredient and also, we have Halal certificates which could fulfill our client believe that our product ingredient is safe. Nowadays people are not only care about the taste, they also interested to know the ingredient used in their food. We also provide many kinds of sweet level based on customers like. We prefer on using good quality of ingredient. For a client who prefer unsweetened cookies, we also provide the less sweet ingredient and have them to testing our product before proceed in order to meet their favor. We also provide a service for customer to choose shaping of cookies which is suitable for any events or as cookies door gift. We have plenty of packaging design for every festival and special event. Most important, we also care about feedback from our client who’s buy our product. From then, we able to improve our weakness. Client’s feedback is our first priority, this help us to gain more loyal client to keep on buying our product.

CHANNELS The channel building block illustrates about how a company deliver its value proposition through communications and how it reaches the customer’s segments. The basic channel functions are raising awareness among customers about a company’s products and services, helping customers evaluate a company’s value proposition, allowing customers to purchase specific products and services, delivering a value proposition to customers and providing post-purchase customer support. There are five types of channel phases that our business practices: YPES OF CHANNELS Awareness

EXAMPLES KOKIES BABE 1.

Word of mouth. We always prioritized

our customers and always treat them like first class customers. When we created a happy 5

customer, we do believe that through word of mouth there is a possible way the customer will recommend our Kokies Babe product by sharing their cookies to their friends and families. 2.

Social media.

Our product uses

Instagram as our platform to promote our cookies. 3.

Radio broadcasting.

We also uses

radio broadcast to promote our products because we know that most of the time people tend to listens to radio in the car, at home or at work. Evaluation

Kookies Babe concerns the feedback after our customers purchase our products. By this way, we know how to improve the taste of our cookies. Our business uses these two methods: 1.

Surveys. We put our suggestion box

and a survey customer feedback forms by the entrance of our shop lot. 2.

Reviews.

We recommended the

customers testimonies to send us feedback via WhatsApp and DM Instagram. Purchases

The

customers

may

walk-in

to

our

headquarters in Jalan Setia Raja, Tabuan Jaya, 93350 Kuching, Sarawak. Or you can buy it at any CS Supermarket nearby.

Besides,

customers may contact us via WhatsApp 0146981613 (Zakirah) and through via DM Instagram @kokiesbabe or through this link https://linktr.ee/kokiesbabe . 6

Delivery

We have three methods for delivery:

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1.

Cash

On

Delivery

range

within

Kuching and Samarahan

After Sales

2.

Postage

3.

Over the counter

We provide post purchase for customer support. Such as we have return policy if the product is damaged and we have customer assistance.

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CUSTOMER RELATIONSHIP Our business much emphasizes about the quality of our food. By maintaining our food quality, we ensure the customers to send us a feedback after consuming our products. Below is a sample of our customer’s feedback:

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REVENUE STREAMS Revenue Streams are the various sources from which a business earns money from the sale of goods or the provision of services. The types of revenue that a business records on its accounts depend on the types of activities carried out by the business. Generally speaking, the revenue accounts of retail businesses are more diverse, as compared to businesses that provide services.

Our revenue streams are gained by selling our physical products which is our cookies. The customer pays cash for our products and are then free to do whatever they want with it. Besides that, we also take orders for events as there are customers that are interested in making our product as door gifts for their events.

The prices of our products are as below: PACKET (230G): RM18 BOTTLE (560G): RM35

KEY ACTIVITIES Kokies Babe always make sure to maintains quality through key activities which were control of production and manufacturing, we have ICT experts in administration to manage website, online orders and the distribution of product, create branding strategies, marketing and promoting of the product and lastly, we improve our product and packaging design.

For the last activities during Hari Raya, we did make an activity about “Guessing Game” and the winners will get Kokies Babe product giveaway. And so, does for Christmas and Happy New Year 2021 event, we also create a giveaway gift to our customers with our promo.

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KEY PARTNERSHIP Key partnership is a relationship with other business, government or non-consumer entitles in order to help the business grows. Our partnership is with our suppliers who supplies our ingredient such as Ee Syn Company and Harrisons Sdn Bhd. Our main ingredients are mostly from these two companies, in order to maintain good relationship with our suppliers, we have become their loyal client to buy ingredient from them. Next, we also collaborate with CS company as our retail shop to sell our product to all of its outlet in Kuching areas. We doing a consignment with CS company which is every end of month sales report we will giving 15% of sales to our partners.

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KEY RESOURCES For the key resources, our company Kokies Babe are maintaining the quality of ingredient we use. We make sure that all types of ingredient we need to use are all tested and the mixture of ingredient are perfect enough to make better texture as a result. In order to make sure the budget of a product can be sold in affordable and reasonable price; we make sure that we able to get better ingredient with low cost and good quality.

Besides that, we also using few of equipment for baking such as trays in various size and shape, spatulas, spoons, blending bowls, mixers pastry knife, and chiller to make our product. This equipment used in bakery is a big-time saver and we can produce a lot of cookies in a day, estimated about 200-300 packs and jars of cookies. Next, we have our salesperson to promote our product and put our product at retail shop such as CS supermarket. Salesperson plays important role in order to build up loyalty and agreement between our company and to our retailers.

We also promote our product on social media and have our own catalog for advertise many types of our product. We provide delivery service for our customers to improve our services to gain customers loyalty toward our product. Our delivery man also plays important role to make sure the relationship with customers satisfied with our services and continue booking our cookies. Lastly, we have pastry chef and few workers to make our cookies. Every dough and mixture will be always checked by our pastry chef to make sure the quality of our product. We also did some checking before and after packing to make sure there is no damaging shapes or any unwanted damage on packaging or labels.

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COST STRUCTURE Defines all the costs and expenses that your company will incur while operating your business model. Our main costs are of course coming from the ingredients of our products as we are using high quality ingredients. For our cookies we are using quite expensive cooking chocolate as we wanted our cookies to taste very delicious. We are lucky that the making of this cookie does not requires a lot of machinery hence it help us to save a lot. Besides that, we also have marketing costs in order to promote our cookies. We use flyers, Facebook ads and also do giveaways to attract our customers. Our marketing cost is quite high as we believe that its very crucial to have customers to notice our brand and products because of the high competition in the market. Other than that, rents, staff salaries and also utilities bills are also included in our cost structure. As we are renting space for our HQ where we made the cookies befre it is distributed to other supermarkets as well. To make it clear, here is the list of the items that are used in the making of this cookie: •

Beryls Cooking Chocolate 1kg RM16.90

•

Nestum 1kg RM7.00

•

Packaging 50 pieces RM17

•

Stickers 100 pieces RM10

•

Brownies Baking Tray RM45

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CONCLUSIONS As a conclusion, preparing a business model canvas is very vital as it helps to figure out the important thing that a business need. This BMC has helped us to layout our strength and weakness in the market. Other than that, it helps us to find out the area that we need to improve more in order to succeed. BMC gives us a clearer vision of what we need and want in a business hence it is compulsory to create one for our business. Lastly, the process of creating BMC for our business help us as business partners to understand each other better in terms of what we envision for our business.

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