Business Model Canvas Report Kerepek Rakyat PDF

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BUSINESS MODEL CANVASPRINCIPLES OF ENTREPRENEURSHIP (ENT530)FACULTY & PROGRAMME: BACHELOR OF BUSINESS ADMIN. (INVESTMENTMANAGEMENT) (HONS)SEMESTER: 4GROUP MEMBERS:1. MOHAMMAD HIKAL BIN MOHAMMAD SALIM (2020988485)2. FAWWAZ BIN MUHAMAD (2020953763)3. MU’AIN ADLI ABQARI BIN FAZLI (2020982679)4. MOH...

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BUSINESS MODEL CANVAS PRINCIPLES OF ENTREPRENEURSHIP (ENT530) FACULTY & PROGRAMME: BACHELOR OF BUSINESS ADMIN. (INVESTMENT MANAGEMENT) (HONS) SEMESTER: 4

GROUP MEMBERS: 1. MOHAMMAD HIKAL BIN MOHAMMAD SALIM (2020988485) 2. FAWWAZ BIN MUHAMAD (2020953763) 3. MU’AIN ADLI ABQARI BIN FAZLI (2020982679) 4. MOHAMMAD ALIFF BIN MOHD ZANI (2020974009) GROUP: JBC2514H

LECTURER: MADAM ZANARIAH ABDUL RAHMAN DATE: 31ST DECEMBER 2020

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ACKNOWLEDGEMENT

We would firstly like to say a huge thank you towards all the parties that help us on doing this assignment especially to our lovely lecturer for the subject principles of entrepreneurship (ENT530) in helping us by giving us guidance throughout the whole process Madam Zanariah Abdul Rahman. Next, we would like to say a huge thanks towards our group members for giving their utmost cooperation in making this report. We are grateful that we can cooperate well with each other as teamwork and coordination is key in making this assignment. We are also grateful towards our friends and family that gave us support while making this assignment. Lastly, we would like to be thankful for giving us the opportunity to do this assignment in which it is an exciting assignment that would help our entrepreneurship skill in the future and also give us the motivation for us to have a business.

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TABLE OF CONTENT

TITLE

PAGES

TITLE PAGE i. ACKNOWLEDGEMENT ii. TABLE OF CONTENT iii. LIST OF FIGURES

iv.

LIST OF TABLES

v.

EXECUTIVE SUMMARY vi. 1. INTRODUCTION 1.1 Company Background

7

1.2 Problem Statement

8

1.3 Opportunity Recognition

9

1.4 SWOT Analysis (between two competitors) 1.5 Purpose of Business Model Canvas (BMC) Preparation

10 - 11 12

2. BUSINESS PROPOSAL 13

2.1 Business Model Canvas (BMC)

14 - 21

2.2 Explanation of BMC 3. CONCLUSION

22

4. REFERENCES

23 -24

5. APPENDICES

25 -26

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LIST OF FIGURES

1.0 Introduction i.

Figure 1 Organizational chart Kerepek Rakyat

2.0 Explanation of BMC (Channels) ii.

Figure 2 Kerepek Rakyat Channels

3.0 Appendices iii.

Figure 3 Kerepek Rakyat Instagram Page

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LIST OF TABLES

1.0 SWOT Analysis i.

Table 1 Ros K Enterprise SWOT Analysis

ii.

Table 2 Kerepek Anep SWOT Analysis

2.0 Appendices iii.

Table 3 estimated calculation

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EXECUTIVE SUMMARY

Kerepek Rakyat is a partnership business that sells kerepek with three variety which are spicy, original and cheese flavour. The business was started in January 2020 with four partners in which the reason for starting the business was for their determination to provide consumers with good quality of kerepek to snack to across Malaysia. The business is quite new and have not made quite a name yet in which it is a bit difficult for the business to make a name in this broad market. Furthermore, the business has a special ingredient in the product in which it may attract customers as the special ingredient would give the kerepek a distinct taste than any other kerepek. While the competition for the business is quite tough, we went and do a SWOT analysis on our competitors to better understand our competitiors so that our business has a competitive edge. In addition, we have included a Business Model Canvas (BMC) in which we could identify our business even more and improve from it. In BMC, there are nine components in which we identify and analyse these nine BMC components to make an overlay for our business and dissect it to understand the business in order to move forward.

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INTRODUCTION

1.1 Company Background Name of company: Kerepek Rakyat Type of business: Partnership (Retailer) Organizational Chart of Kerepek Rakyat

Hikal (Co-Founder/General Manager)

Mu'ain (CoFounder/Operations Manager)

Fawwaz (CoFounder/Marketing Manager)

Aliff (Co-Founder/Financial Manager)

Figure 1 Organizational Chart Kerepek Rakyat

Location: Kerepek Rakyat Headquarters Lot 6207, Jalan Utama, Kampung Tanjung Sengkawan 8500 Segamat, Johor Darul Takzim. Company History: The business was started in January of 2020 and begin operations in March of the following year by four friends that became business partners. They were driven to provide consumers with good quality of kerepek to snack to across Malaysia. Mission Statement: To provide consumer with delicious and unique kerepek Vision Statement: To be the number one choice of brand in Malaysia to provide kerepek to the consumers with variety of assortments of kerepek. Target Market and Product: The product is kerepek ubi that comes with three variations (Original, spicy & cheese). The target market is mass market in which people who are interested to try our kerepek or love to eat our deliciously crispy kerepek.

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1.2 Problem Statement

Starting a business is not easy as we thought. This is because our business may face some challenge or difficulty in order for us to establish it. Especially for people who wants to start a business and has no experience in doing a business. In order for us to establish our business, we have to seek the knowledge from the others who have these experience. There are so many things that we can learn in this entrepreneurial world and we can hone our skills and knowledge to become a great entrepreneur in the future. Furthermore, one of the major problems that we might be struggle with is our financial. In order for us to start our business, we must have the capital to start the business. We also should have some funds before getting a loan from the bank. Therefore, it is better for us to be more financial prepared so that we are able to manage our finances wisely and make profit from our business. Other than that, we must know the target market for our product before we start the business. It is hard for us if we do not have a specific target because the demand and sales will become low. The business also must use the right channel of business in to interact with the customer such as WhatsApp, Telegram, Facebook and Instagram. Hence, it will be easier for us to communicate with the customer and avoid the miscommunication. Finally, yet importantly, we also need to try to build a name for our business in the local products for the snacks. Other local brand uses the feedbacks method to make sure that their products will fulfil the customer satisfaction. In addition, we need to broaden our brand awareness of customers as having a broad brand awareness will make our brand and company more recognizable to our consumers. For that reason, we must use the method in order for us to establish the business and create a strong name for our product in the local region for the meantime.

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1.3 Opportunity Recognition

To start a business, we must brainstorm and create new ideas that will differentiate us with the other businesses. Normally, a small business uses the opportunity recognition to visualize their idea, strength and the capability of the business in the specific market. For a company to able to stay stable in the entrepreneur world they need to have the ability to recognize opportunities based on the societal changes, customer preference and the technological advances. Therefore, the entrepreneurs must have the ability to recognize the opportunity in order for them to compete with the other business that has the same products with their company. Firstly, the recipe and the ingredient, which is use in the products, must be different from the other business to make sure that the business have their own uniqueness. Therefore, it will create an advantage for the business and will attract the customer to buy the products. Kerepek Rakyat use a special ingredient to make the taste of our product different from the others, which is sour plum (spicy flavour) to make the taste feel different and unique to our customers. Next, the business must use a new medium in order to attract more customer to buy their product that will increase their sales and revenue. People nowadays tend to buy their needs and wants by using online shopping platforms and does not prefer to go to the physical store. Kerepek Rakyat use online platforms as our main medium to interact with our customer. It is much easier and better than having a physical store because the operation of the ordering and delivering will be done through online shopping platforms and also social media platforms. Moreover, this COVID-19 pandemic situation makes this the advantage to us and the customer as we will be interacting without having a face-to-face interaction. Lastly, the business must use a convenient and user-friendly packaging for the customer so that they can use the products easily without facing any difficulty and problems. Kerepek Rakyat use a zip lock packaging for our products because it is easy for the customer to use and keep our chips and it will last more than a week without having any issues.

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1.4 SWOT Analysis SWOT ANALYSIS FOR COMPETITORS

Ros K Enterprise

STRENGTHS

WEAKNESSES

•

They have many types of Kerepek

•

Unattractive packaging

•

Low price of product

•

Lack of commercial and

•

Efficient way of producing Kerepek

•

They have a store

OPPORTUNITIES

advertisement

THREATS

•

Popular wholesale Kerepek factories

•

Local brand and trusted

•

Increasing demand for Kerepek

•

Many competitors among local products

•

Unable to meet high demand of Kerepek more than store capacity

Table 1 Ros K Enterprise SWOT Analysis

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Kerepek Anep

STERENGTHS • • • •

WEAKNESSES

Really spicy Kerepek Many fans of spicy Kerepek Good and nice packaging Good marketing and advertisement

OPPORTUNITIES • The Founder is popular in social media • Good feedback from customers • Trusted product

• • • •

Expensive No store New brand No various types of Kerepek

THREATS • •

Many competitors among local products Cannot meet the high demand of Kerepek

Table 2 Kerepek Anep SWOT Analysis

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1.4 Purpose of BMC Preparation

The main purpose of making this business model canvas is to represent the overall structure of kerepek rakyat business plan and to make it easy to understand our business plan. Business model canvas also is a tool to understand our business purpose and focus on the business to make it more systematic and ensure that each area of business is effectively utilize. With the right strategy of business model canvas, we can make our company walk in the right track and can make our business become more successful. Besides that, the purpose of this business model canvas is to increase of quality of product instead of quantity of the product. This is because the quality of the product plays an important part to make the company to have our own regular customer. For example, if we produce product that have low quality such as kerepek that do not have proper packaging and the taste of the kerepek is just like other kerepek, it will make the customer thinks that they can buy kerepek with other seller and it will make our company lose customers. Other than that, the reason we make this business model canvas is because it is great to develop a portfolio idea. This is because with business model canvas can spend a few minutes or a few hours to create multiple ideas and strategy compare to traditional business plan that will weeks and month to create one idea or one strategy. Hence, with the use of business model canvas, we can choose the best idea and strategy for our company in shorter time. After that, business model canvas also helps us to identify and understanding our competitors through market demand. This is because when we see our competitor strength, we can identify our weaknesses and we can improve the quality of our product. thus, this will help our company to improve and fully utilize the resources and equipment to overcome our weaknesses. On the other hand, we can also reduce the waste of the resources. Lastly, business model canvas also helps our company to focus more on our customer and help us to find an effective way to communicate with our customer about why they should be our regular customer and help us to improve our product. This is because customer feedback and satisfaction play an important role to us to improve our product quality.

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BUSINESS PROPOSAL 2.1 Business Model Canvas (BMC)

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2.2 Explanation of BMC

1. Key Partners Key partners are the other external parties or supplier that may help the business to operate their key activities so that they deliver and sell the products to the customer. Kerepek Rakyat key partners that help us to get the revenue is the manufacturer, supplier, postal service and the online marketplace. Kerepek Rakyat manufacturer is the kerepek factory, which will provide the supply products to us. We then will repack the chips in small amount, which is 500 grams for each pack, and sell it around RM 15 per pack. We must make sure that the factory will produce enough supply for our product so that we will able to achieve our targeted sales every month. Next, our second key partners in the business is our supplier, which is Kerepek Fazz. They will supply us the product and we will repack the product and sell it through the online platform and the social media. Each month we will restock the chips from Kerepek Fazz around 250kg at the price of RM 1,750. Therefore, we must establish the connection between the supplier to make sure we get enough supply throughout the month and able to gain the revenue and sales. Besides that, the courier services also are the key partners to our business because they are going to deliver the products to the customer. Courier services such as Pos Laju and J&T plays a major role in helping us to fulfil the customer satisfaction. Therefore, it is better for us to use courier services to establish the operation of our business. Finally, yet importantly, the online marketplace also gave us a huge advantage for our business to interact with the customer. Social media such as Facebook and Instagram will help us to boost our sales by posting our product on the apps. They also provide a promotion on having advertisements on their site that we can subscribe every month, which will cost us around RM200 and RM450 respectively. In addition, we also use the apps like Shopee to sell the products to our loyal customer. 2. Key Activities Key activities are an action do by the entrepreneur or the business to achieve the value proposition for the customer. Kerepek Rakyat key activities divided into three parts, which is repacking, distributing and the digital marketing in order for us to operate the business.

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Kerepek Rakyat focus on repacking the chips that we have order from the supplier and replace the packaging to the new one. Our packaging will include all the details about the products such as the flavours, the weight of the packaging, company logo and name and all the features that are highlighted on the packaging. Other than that, we make sure that the zip-lock packaging is safe and secure so that there will be no issues such as the packaging has been torn or damage when the products are distributed to the customer. Next, distributing also is one of the key activities that is done by Kerepek Rakyat as we use courier services to post our products to the customer outside of our zone which Selangor and delivery to the customer inside Selangor. For courier services, we use J&T and Pos Laju as it is one of the best couriers’ services in Malaysia. Then, we do the delivery operation to the customer in Selangor with the charge of RM 5 inside Shah Alam and RM 10 outside of Shah Alam for customers who want same day delivery. However, we must make sure that the product delivered safe to the customer so it is better for us set an appropriate date to meet up with the customer to deliver our products. Lastly, we also promote and sell our products to the customer through online selling using the social media platform such as Facebook and Instagram. We also use Shopee as the system in the apps is more user friendly for the customer. Furthermore, Shopee application is an easy way for the customer to buy because they can place the order for our products and we will make the delivery after receiving the order. We also make a digital marketing, which we will promote our product on Instagram and Facebook by posting the teaser of our new product, the details and the feedback that we will get from the customer after they consume our product will be taken and use to improve our product. 3. Key Resources Key resources is meant by what type of resources that are suitable for the company to make the operations and the key activities is achieved. Kerepek Rakyat use four types of key resources, which is physical resource, human resource, financial resource and intellectual brand. The first key resources for our company are physical resources that we will use to operate the business operation. Kerepek Rakyat use our own asset such as the packaging, vehicle and the entire asset that help us to operate the business. This physical resource is important to make sure that the operation place and the product is always in a good condition to avoid any accident to the customer or the workers. Next, the other key resources that we use for our business is human resources. Human resources also are important for us to smooth the operation of the business. All operation in 15

our business such as packaging, ordering and delivering will need the usage of human resources to be completed. Therefore, it is better for us to add or increase the human resources in our business to increase the efficiency and production of the company. Financially, Kerepek Rakyat also will use the financial resources to fund on their product. To produce a good and quality of the product we will need the fund to make sure that we buy a good and safe supply from the supplier. We also will need the fund to finance the operation of our business such as the restock cost, promotion on the social media and the overhead cost. Therefore, to make the business establish easily, we must make sure, that the fund that we need and have must be able to cover for all the cost that we will face every month so that we will improve the sales and revenue of the business. Lastly, we also need the intellectual skills to make us expert and know more about the product. As we have Kerepek Rakyat as our business, we must know the ingredient and the recipe that is used on our product before we sell our products to the customer. Besides that, we also must have the knowledge on the marketing strategies. We need to come out with an idea on how to attract more customer, how to make our product looks more attractable and how to improve the delivery of the information to the customer. 4. Value Proposition Kerepek lovers must choose Kerepek Rakyat because we offer various type of Kerepek flavours with a good taste. We have original, spicy and cheese flavours. Customer who loves spicy, can choose our spicy Kerepek and to those who are not love spicy, they can buy original or cheese Kerepek from us. For our spicy Kerepek we use different ingredient from other sellers. Th...