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PBusiness Plan: 1 Executive Summary (5a)Business plan for our company T@LK Co. Ltd. had provide detailed information related to our company’s product which is involve our company history, product description, where is our company located, when we start our business, what business we are doing, where...

Description

PBusiness Plan: 1.0 Executive Summary (5a) Business plan for our company T@LK Co. Ltd. had provide detailed information related to our company’s product which is involve our company history, product description, where is our company located, when we start our business, what business we are doing, where our product retailed and etc. Other than that, in this business plan we also discussed some relevant analysis about global growth rate of electronic toothbrush market in which our product 4 in 1 Travel Kit can be entrant as become one part for the electronic toothbrush in the recently. After that we based on the analysis, we found that our product 4 in 1 Travel Kit had potential to growth in the coming future. After we had done our market research, based on the statistic which show that the current growth of electronic toothbrush market is 5% and is estimated to achieve 10% in the year 2025. Compared to our company’s competitors, such as Colgate Pro Clinical 150, Oral-B Pro 1000, Philip Sonicare and etc, those competitor’s product is less attractive and lack of some function that can fulfil the customer’s needs and wants. Our company product 4 in 1 Travel Kit obviously better in the aspect of the function compared to other competitor’s product because nowadays more customers are more prefer to convenient and want to avoid inconvenient matter when go for travel. So, in comparison, our company was optimizations on electric toothbrushes which is combination with the different types of the changeable head. Other than that, the market segmentation that our company choose is demographic segmentation. Then, our target market is concentrated low to middle class residents. Our product target customer in the market is family. Besides that, our company had provide and set the market mix based on the product (travel kit with function such as up to 10 days using with 15 mins charging, IPX7 waterproof level and etc), price (the unit price of products is RM 220), promotion (advertise on social media, such as Facebook, Instagram) and place (corporate with another online platform, such as Lazada, Shopee and many more and set up official website to help our customer more understand our product). In addition, our professional engineer has design and draw in a draft as a model. After that, our company also prepared the product, design and develop plan. We forecast that our product will take a few long times to develop and improve with a specific duration. At the last, the estimated income statement and cash flow statement in year 2020 and 2021 shows that our company will continue to earn profit and we does not face any cash flow problem.

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2.0 Company Description 2.1 Formation of organization

T@LK Co. Ltd. has established in 1 February 2019. T@LK Co. Ltd. is electronic toothbrush company. Our company has decided to re-improve our products which is including makeup brush, comb and facial cleaner. This product will let the customer more convenient when they go for travel or use it in their daily life. Our company is a private limited company. This is good for our company’s member because the company asset and personal asset is separate. Besides that, the personal asset cannot pay the company liability. At the beginning, our company main office was established at Johor Bahru, Malaysia. Our product are not only sell at Johor Bahru but also available to retailers at other state in Malaysia. Since our company is newly formation, our company has 30 workers include our CEO but this will not affect our business operations. The idea of producing this travel kit is our CEO, Mr. Kerk Zi Ho’s idea. Through the research, he realizes that nowadays people are wanted to avoid bring too many things when go for travel. Then, he collects customers' opinions on this travel kit to develop products that make customers more convenient. After that, Mr. Kerk convene a meeting with board of directors (BOD) and all the employees to discuss whether these additional function will benefit the customers or not and give suggest solution to implement the problems. T@LK Co. Ltd. has adequate experiences workers in each department to run the operation. In order to develop a good product, we will send our employees go to training during end of the year. Our company are try to help the people to let them really can convenient during the travel. Our product can really help people to solve this problem. Other that, different age stage’s female and male can also use our product. Our product 4 in 1 Travel Kit has equip variety of the functions such as the most advanced waterproof level function, endurance battery, more lighter and more convenient to use of the different age of the customer base. The 4 in 1 Travel Kit have 1 year warranty. If customer recover any problem or malfunctioning on our product, our company will provide good service to maintain the product become more durable to use.

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2.2 Objectives  Monthly sales reach 500 set 4 in 1 Travel Kit in the first year of operations.  Our company provides our customers with quality make up kit at a reasonable price.  Generate positive cash flow from operations and have a net profit at least 20% of sales profit. 1. Mission  Providing quality product to the customer in the Malaysia.  Providing the best service to fulfill our customers’ expectations.  Let all the Malaysian know our brand and purchase our product to become a best company in Malaysia. 2. Vision  Become a best company in Asian countries.  Become a priority product in customer’s mind.  Create a product of the best quality in the minds of customers. 2.3 Role played of each member 2.3.1 Chief Executive Officer (CEO) - Mr. Kerk Zi Ho  The chief executive officer is the highest-level executive in the company and responsibilities in making major company decision, managing the overall operations, resources of company and implementing the vision and mission of company.  CEO needs to evaluate the success of the company to reach the company goals.  Assessing the risk of company. 2.3.2 Head of Finance Department - Mr. Lee Qin Ji  Head of finance department need to forecast the monthly, quarterly and annual results of company.  Evaluate and decide on investments whether can gain profit or not. 

Guide and lead a team of accountants.

 Analyse the profit or loss of company.  Recommend cost-reducing solutions of company.

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2.3.3 Head of Marketing Department - Ms. Tan Hui Sin  Head of marketing department need to guide and lead the marketing executives.  Forecast and develop the marketing strategy and marketing plan.  Need to planning, directing and coordinating the marketing efforts.  Research the demand of the market.  Research the information of competitor. 2.3.4 Head of Human Resource Department - Ms. Lim Xue Yun  Head of human resource need to develop and implement human resource policy.  Need to recruit and negotiate with employee about employment agreements.  Ensuring compliance follow the laws and regulations.  Manage the employee wellness and performance reviews.  Motivate and give training to employee. 2.3.5 Head of Production Department - Ms. Lo Pei Sin  Head of production department need to guide the work of junior employee.  Need to planning and organizing the production time table.  Ensure the product’s quality.  Assessing the project and resource requirement  Selecting, ordering and purchasing materials.

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2.3 Role played of each team Our company consists of 5 main team members.

CEO Kerk Zi Ho

Finance Department

Head Of Department Lee Qin JI

Human Resource

Marketing Department

Department

Head of Department Lim Xue Yun

Head of Department Tan Hui Sin

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Production Department

Head of Department Lo Pei Sin

3.0 Business idea and opportunity on this venture 3.1 Creation of Idea/Opportunity The idea to produce the 4 in 1 Travel Kit was initiated by our CEO, Mr Kerk Zi Ho. He was inspired someday when he goes for travel with his family, he has to bring a lot of pack of things such as toothbrush and facial cleaner. Sometimes, his sister forgot to bring comb and make up brush. Through this experience, he brainstorms and started to think the more suitable solution to make it easily and convenient to bring out the all the kit. Accordingly, he finally come out one idea which is call 4 in 1 Travel Kit. This product is including with toothbrush, comb, makeup brush and facial cleaner. The 4 in 1 Travel Kit have different types of the changeable head and put in a one bag and bring together and his family also can use when during travelling. The 4 in 1 Travel Kit can use in our dairy life also. So, he successfully develops a product which is help the customer to solve inconvenient things and can more enjoy during their trip. Therefore, it is a multifunction kit as it travels kit changeable head. The electric toothbrush and the facial cleaner no need to change the battery, our product can use USB Type C cable and a charging head to recharge the device and when charge one time can use 9 days with 15 minutes per day. Nowadays, customer always seeks for convenience because they sometimes forget to bring the daily thing. Then the travel kit changeable head no need to waste the money to purchase battery and insert it, this product is to give convenience to users. Therefore, one of the things in our product is facial cleaner. This facial cleaner is for all the age state and gender use. The waterproof of the facial cleaner is IPX7, when the customer clean their face it can have waterproof function can protect use by everyone even children and vibrate up to 32,000 times per minute can wash the face very clean. For changeable head of comb is for family to use and no need to scare to bring during travel. The makeup brush is for female to use and they no need to bring all the makeup brush during travel it can save the luggage space and lighten their luggage and it can also convenience when go for travel.

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3.2 Industry Analysis Analysis of the industry shows that beauty and personal care industry has become an important factor in the economic development of a country. The beauty and personal care industry analysis also states that the beauty and personality industry offer many job opportunities for those people who just graduate from college and want to applicant for the job. This beauty industry has blown up to be a RM 2,199 billion industry and analysts say that these will make it even bigger as they can in the future. Therefore, the beauty and personal care are facing challenges and chance. This industry need to have creativity and innovation. The cost need to control to product a new product for the beauty and personal care industry. Nowadays, many people know the beauty and personal care industry is a very good industry so they started to enter into the beauty and personal care market and providing revenue opportunities. Because of that there are many competitors, beauty and personal care researchers need to concentrate on find out the ways and capitalize on current trend to produce a quality product to compare with other competitor to satisfy the customer need and want. Despite Malaysia's gross domestic product (GDP) growth in 2018 and 2017, the present value of the beauty and personal care business has achieved steady growth due to its active participation in new product launches. Top beauty and personal care companies continue to expand rapidly in Malaysia and have a good result. In 2018, the size of the global wellness economy was RM 18.6 trillion include the personal care and beauty is RM 4,476 billion. From 2015 to 2017, the industry has grown by 6.4 % annually, from RM 15.3 trillion to RM 17.4 trillion, which is almost twice the global economic growth (according to IMF data, it is 3.6 % annually). Besides that, based on current labor market conditions, the employment rate of beauty and personal care industry is increased 3.0 % in 2018. In 2015, Malaysia's total trade in personal care and cosmetics products was approximately RM 9.3 billion. Of this total, RM 4.7 billion of imports met more than 50% of demand. The report show that the China ranks Thailand, France, EU28 in descending order, and the United States, South Korea and Japan are the main exporters to Malaysia. The study found that Malaysian consumers' interest is affected by a large number of advertising, marketing and prosperity, which has increased their interest in high-end brands and they prefer to use imported cosmetics. The latest in Malaysian market trade is the emergence of halal cosmetics, which will appeal to Muslim customers in the country.

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Industry Analysis beauty and personal Gross Domestic Product (GDP)

Employment Rate Year 2018

Year 2018 Increased 3.0%

Numbers of Imports Year 2018

RM 4,476 billion

Business Model (5d) 4.1 Market Analysis According to Malaysia's existing population estimation report for 2019 estimated have 31.9 million people. The median monthly household income for Malaysians is RM 5,228. Different segment of customer will have different buying patterns. According to the low household income of family, they will directly think their purchasing power first or this product really useful for them. If the product is not so useful or it can be substitute with other product, they will direct buy what they want or cheaper things only. For middle household income of family, due to their purchasing power they will purchase according their personality or social need. For example, some of them will choose to purchase the product with brand to highlight his identity or status. Nowadays, customer pursues the product which is convenient to them and good quality of product and in lower price. T@LK Co. Ltd. decides to develop a new product which is really can let customer convenient during travel or in their daily life. Now the market has not yet launched 4 in 1 Travel Kit so our product is fresh to customers. Our product also fully fulfils the customers’ requirements. We perceive that the customers will purchase our product because is the market’s rare product. This is because most of the customer always like to try something new now.

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Market Analysis Electronic toothbrush Past Revenue

Current Revenue

Forecast Revenue

Year 2016

Year 2018

Year 2025

RM 9,106 million

RM 13,660 billion

RM 16,557 billion

Annual growth

Forecast Growth

Year 2013 - 2019

Year 2020 - 2025

5%

10%

According to the electronic toothbrush market and based on the market research, we found that there is an increasing demand for the electronic toothbrush. In 2016, the revenue of electronic toothbrush with approximately reached RM 9,106 million. During in 2018, the revenue in this market was increased to RM 13,660 billion. In addition, the electronic toothbrush market is estimated and expected to reach RM 16,557 billion at the end of 2025. In fact, the growth of electronic toothbrush market is tremendous and fast. Currently, the annual growth of electronic toothbrush is 5 % from year 2013 to year 2019. And the growth is forecasted to reach 10 % from year 2020 until year 2025. This show that nowadays more people are realizing the importance of electronic toothbrush and following the trend of using electronic toothbrush for personal benefits.

4.2 Customer’s need and want With the ever-changing world of technology, customer needs should dive innovation. However, the intermediate point that too many companies miss is the huge advantage of understanding what customers need to solve. So, our company try to search customer’s need and want and try to innovation a new product to satisfy customer’s need and want. We need an innovation product to make our life become quality and better. We also need the product to convenient in our life. Nowadays, people on the market tend to buy high-quality products that include various functions at the right price. Based on the current toothbrush, comb,

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makeup brush and facial cleaner in the market, now did not have the four products combine together in the market so this will attract the customer to purchase. So, in the people mind, they want the 4 in 1 Travel Kit which can easy to bring out when they during in travel. The 4 in 1 Travel Kit can convenience everyone especially for family. The 4 in 1 Travel Kit is designed for those who forget to bring daily things during travel. The feature of this product is changeable head of tools, the people can freely and quickly to change the tools and complete their daily task. Changeable head include toothbrush, comb, facial cleaner and makeup brush. The product needs to use USB Type C cable and a charging head to recharge the device. The 4 in 1 Travel Kit with deference of functions is the best choice for the customer and also improved the customer lifestyle. 4.3 Competitor Analysis Feature

MIJIA T100

Colgate Clinical 150

Water prove

IPTX 7

Battery

Pro

4 in 1 Travel kit

Oral-B Pro 1000

Philip Sonicare

IPTX 7

IPX 7

IPX 7

IPX 7

Rechargeable

Non- Rechargeable

Rechargeable

Rechargeable

Rechargeable

Power Time

30 days with 2 minutes per day of 4 hours single charge

-

9 days with 15 minutes per day of 24 hours single charge

7 days with 10 minutes per day of 22 hours single charge

5 days with 5 minutes per day of 24 hours single charge

Vibration/ Rotation

Rotate 16,500 times per minute

Vibrate 20,000 times per minute

Vibrate 32,000 times per minute

Rotate 7,600 times per minute

Vibrate 31,000 times per minute

Price (RM)

30-40

80-99

220

600-650

900-950

We compare our product with others competitors. We can find that our product has many functions compare with others brand. For water prove, our product water prove level is IPX 7 same with other competitors. The figure of IPX is higher, the water prove level is higher. It can find that our product quality has follow the market needs and wants. At the same time, our product also fulfils the basic requirement of this market. Besides for the power time, Philip Sonicare only can use in 5 days with 5 minutes per day of 24 hours single charge. For the Oral-B Pro 1000, it can until 7 days with 10 minutes per day of 22 hours single charge. Other brand which is Colgate Pro Clinical 150 couldn’t recharge. We had meet a strong competitor which is MIJIA T100, 30 days with 2 minutes per day but with only 4 hours charge.

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However, for our product which is 4 in 1 Travel Kit can use until 9 days with 15 minutes per day of 24 hours single charge. The vibration and rotation are a method to clean the leftover in our oral. Our product in average vibrate rate which is 32,000 times per minutes. Follow down by Philips Sonicare 31,000 times per minutes and Colgate Pro Clinical 150 vibrate up to 20,000 times per minutes. Other brands such as MIJIA T100 and Oral-B Pro 1000 will had rotate up to 16,500 and 7,600 times per minutes. Our products have larger capacity than other brands in power time aspect. This also is an advantage of our product to consumer. Next, the vibration of electronic toothbrush is help us to remove plaque build-up from our teeth and gums. The vibration can allow for more micromovements every time we move our toothbrush across our teeth. The higher of vibration quantity is more useful to our teeth. The vibration for our 4 in 1 Travel Kit is 32,000 times per minute while others brand is less than us. Of co...