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FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)CASE STUDYWAWA COSMETICS BY WAWA ZAINALTYPE OF BUSINESS: COSMETIC PRODUCTSPrepared by: MUHAMMAD ARIF BILLAH BIN MOHD JAMIAN HM1114A (2019320617)Prepared for: DR. MOHD ADZWIN FARIS BIN NIASINDate of Submission: 06/11/TABLE OF CONTENTS1 EXECUTIVE SUMMARY .........

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FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300) CASE STUDY

WAWA COSMETICS BY WAWA ZAINAL TYPE OF BUSINESS: COSMETIC PRODUCTS

Prepared by: MUHAMMAD ARIF BILLAH BIN MOHD JAMIAN HM1114A1 (2019320617)

Prepared for: DR. MOHD ADZWIN FARIS BIN NIASIN

Date of Submission: 06/11/2020

TABLE OF CONTENTS 1.0

EXECUTIVE SUMMARY...........................................................................................1

2.0

INTRODUCTION.........................................................................................................2

2.1

Entrepreneur Profile.................................................................................................2

2.2

Business Profile..........................................................................................................3

3.0

ENTREPRENEURIAL CHARACTERISTICS (PECs)............................................5

3.1

Persistence..................................................................................................................5

3.2

Information Seeking..................................................................................................5

4.0

SWOT ANALYSIS........................................................................................................7

4.1

Internal Factors.........................................................................................................7

4.2

External Factors........................................................................................................9

5.0

REFERENCES............................................................................................................10

1.0 EXECUTIVE SUMMARY The overlook of this case study is that I was able to study, identify and see the existence problem that need to be solved in real life situation. The entrepreneur and its business that I choose as my entrepreneurship source of information is Wawa Zainal the founder of Wawa Cosmetics. They sell various types of cosmetic products that they develop through their experience. There is no specific location of where the location of their shop at. But Wawa Cosmetics is selling their products through online shopping and assign dropship agents to push their products all around Malaysia. This company is runs by Malaysian celebrity couple Aeril Zafrel and Wawa Zainal. This business was originally owned by Wawa Zainal while her husband as the CEO. Wawa Cosmetics is under subsidiary company that is, Respected Citizen Sdn. Bhd... From my studies, Wawa Zainal at first intended to launch Wawa Softlens products in 2016 but failed to develop it due to other commitments and lack of entrepreneurship skills. In middle of 2018 Wawa Zainal had improved her skills by doing various of research and studies for about 2 years after her first failure. She began to sell cosmetic products and did not expect the response was quite lively. Wawa Zainal then established Wawa Cosmetics officially in 2018 with the support from her husband. Recently, Wawa Cosmetics had launched a new cosmetic product that is, Muslim Bukhari. The couple was planning to build mosque worth RM1.2 million in Aeril hometown in Kampung Rengit, Batu Pahat, Johor from the profit that they gained. After their success, according to Harian Metro, they were planning to build a ‘Tahfiz’ school. We can conclude that Wawa Zainal had trough uncountable obstacles before she made her success. From this, my study is to detect the key analysis or SWOT analysis that is, the positive and negative factor that influence their carrier and Personal Entrepreneurial Competencies (PECs) or key characteristics such as persistence and information seeking that made her a successful entrepreneur.

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2.0 INTRODUCTION 2.1 Entrepreneur Profile

Figure 2.1 Wawa Zainal with her family. Source from https://iluminasi.com/ Nur Hawa binti Zainal Abidin or famously known as Wawa Zainal was born on 12 Mac 1991 in Sabah, Malaysia. Currently she is 29 years old and was originally work as an actor and model as her occupation before she is dabbling in the entrepreneurship field. She was the 8th daughter from 11 siblings. Wawa had finished her secondary school at St. Dominic Lahad Datu, Sabah and no articles that mention either she continue her study or not. Before entering the business industries, Wawa first went into modelling industry at the age of 12 and had entered the world of acting in 2011. Wawa Zainal was married with Aeril Zafrel or Suhairil bin Sunari in 2012 who was also a Malaysian Celebrity. This couple was given with 3 children. Wawa Zainal exposed her intention to enter the business industry by launching his first product that is Wawa Softlens which is an eye contact lens product but according to one of her interviews in Entrepreneur Insight (https://youtu.be/qCEEF01Iad4), she failed to further her business because of her lack of focus and when she not focused it will consume time to runs to business properly, said Wawa. Wawa Zainal nominated top 100 most influential young entrepreneur in 2018 alongside with her husband Aezrel. From this, it will boost her influence on the public. Wawa Cosmetics was at the peak in early 2020 this year because the launching of Wawa Cosmetics Romance Mysterious which is special for couple gift and Wawa Cosmetics Bukhari Muslim.

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2.2 Business Profile

Figure 2.2 Wawa Cosmetics Company Logo. Source from https://wawacosmetics.com.my/ Wawa Cosmetics is established under a subsidiary company that is Respected Citizen Sdn. Bhd. in early August 2018. This type of business is a shared company that originally owned by Wawa Zainal as the founder and her husband Aeril as the CEO of Wawa Cosmetics. This company intention is to sell various of local limited edition cosmetics product especially a Muslims friendly product. Based from my research that I found, Wawa Cosmetics not yet officially launch, yet this product gain a lot of interests from the user and fans who love the quality of the product that been released by the couple, Astro Awani (September 10, 2019). There is no specific location of where the official shop for this product, but Wawa and her husband take a different way to sell they products by assign a leader as a stockist or supplier to each part of Malaysia. We want to share our ‘rizque’ and we don’t want to gain wealth by ourselves. This is another way we can give back to all fans that do not stop supporting at us, said Aeril in Astro Awani (September 10, 2019). They also sell their products through online platform such

as

Lazada,

Shopee,

Instagram

and

through

their

official

website

at

https://wawacosmetics.com.my/. The beginning of their journey to enter the world of entrepreneurship is started in 2016 when they launched Wawa Softlens but didn’t succeed. When Wawa and her husband further their research, gaining knowledge and improves their business skills, they started to maximize their sells from the launching of their first product Wawa Unicorn Kit.

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Figure 2.2.1 Aeril left side and Wawa on the right launching Wawa Unicorn Kit. Source from https://www.astroawani.com/ According to Astro Awani (September 10, 2019), issued limitedly, Wawa Cosmetics Unicorn Kit edition already sold almost 25, 000 unit before the official launch has been made. After that, followed by the release of Wawa Cosmetics Romance Mysterious and Wawa Cosmetics Bukhari Muslim that hit the Malaysian cosmetic market in 2020.

Figure 2.2.1 Wawa Cosmetics Romance Mysterious left, Bukhari Muslim right. Source from https://wawacosmetics.com.my/ For extra information, both of this product only released for limited time as Romance Mysterious is special for Valentine’s Day and Bukhari Muslim for rising charity to build a mosque in Aeril’s hometown at Batu Pahat, Johor.

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3.0 ENTREPRENEURIAL CHARACTERISTICS (PECs) 3.1 Persistence From my studies, I found that one of the factors that influence Wawa Zainal to be a successful entrepreneur is her persistence to keep the original intention of Wawa Cosmetics type of business that is to sell a cosmetics product. From the interviews that I found in www.youtube.com/watch?v=l3Y5cd_UWEE and www.youtube.com/watch?v=qCEEF01Iad4 Wawa and her husband Aeril was interviewed by a YouTube channel that called Entrepreneur Insight respectively and Aeril as the CEO said that the biggest mistake that they made is they not being serious in the beginning of their participation. He said, the truth is they didn’t see cosmetics can make a lot of money. In Wawa’s interview, she said that at the early of 2016, the first product that they launch is Wawa Softlens and the product was a horrible mistake because the lack of her focus to search for opportunity from the product. After their failure, 3 years later they made a comeback to sell cosmetics product again. According to Astro Awani (September 10, 2019), the famous celebrities, Aeril Zafrel and Wawa Zainal admit that they had reach the millionaire status after more than 3 years dabbling in the world of business. From this, we can see that persistence is one of the key characteristics that lead to Wawa’s success. The proof is, they do not give up from selling cosmetics product even though they suffer a huge loss at the beginning of their business. As example, they repeated the actions to focus on selling the same product in their business and overcome many obstacles together. Obviously, their failure in selling cosmetics product at first is a sign of another failure if they keep selling it without further improvements but other things happened, and this is an undeniable characteristic that Wawa have. 3.2 Information Seeking Before budding entrepreneurs, we must find knowledge first, like me I never come from a business family, I don’t have the basic of business, but I dare to try, said Wawa in an interview at https://www.youtube.com/watch?v=qCEEF01Iad4. From this, it so significant that Wawa has learnt from her past mistakes and improves her business skills to achieve her dreams and become a successful entrepreneur. The first failure leads to Wawa’s awareness and more careful to run a business.

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Even though todays Wawa Zainal had become a millionaire, according to her interview in https://www.youtube.com/watch?v=qCEEF01Iad4, she said that now I’m also still searching for knowledge afterwards we will not be tossed. This shows that Wawa does her personal research on how to provide a product or service, because most of the people nowadays tend to try budding entrepreneurs without any basic business skills or knowledge that could lead them to suffer huge losses in their business. We can take Wawa efforts as example to continue our business because at the end it will be worth it to ourselves. From this we can conclude that, it is important for all of us to undertakes market research, analysis or investigation. We can see Wawa success as a proof of achievements, as example Wawa and her husband together further their business skills. Wawa and her husband also believe that, the more we share the ‘rizque’, the more we will get, Astro Awani (September 10, 2019). Nevertheless, we must never stop searching for knowledge even though we had achieved our goals. This is another factor that could bring a lasting wealth and success.

Figure 3.2.1 Photo of Wawa and her husband Aeril on the launching of ther new product Bukhari Muslim. Source from https://www.hmetro.com.my/

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4.0 SWOT ANALYSIS Positive Strengths Wawa Cosmetics product is



Hard to sell because of high price

suitable for all skin and age



Owner have other commitment

Variety type of cosmetics product



Agents may mark-up the price



Offer a halal product



Does not have a specific shop



Strong number of stockists

 Internal  Factors

Negative Weaknesses

Opportunities

Threats

Popular from their celebrity



A lot of competitors

status influence



Increasing material cost

External 

Easier to get the product



Can’t export the product due to the

Factors



Easy to deliver



Develop new cosmetics product



pandemic 

Lack of material causing the company to stop the production

4.1 Internal Factors Strengths Wawa Cosmetics product built for all type of skin and age. This is because all Wawa Cosmetics receives lots of positive reviews from the user. Some of them get the result after 3 months even though they have a sensitive skin. Not only Bukhari Muslim product that Wawa Cosmetics produce, but after that they keep producing another unique item such as perfume that not all cosmetic company produce it. This shows that this company keep their verities to their users. According to some research in britanica.com, over 61 percent of religion in Malaysia were Muslims. A cosmetics product that contain animal-based such as pork and alcohol is prohibited for the Muslims. From this statistic the Malaysian majority will have the opportunity and gain confidence to buy Wawa’s product. Another factor of Wawa’s company strength is they have the people to carry their stocks abroad. An agent or stockists will bring their stocks to their area then they will be the representative to sell the product. This will easier for Wawa Cosmetics company to sell their product.

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Figure 4.1.1 Some Review from the Customer. Source from Siti Wawa Adieylla post at Facebook Weaknesses It is undeniable that Wawa Cosmetics product is quite expensive with the range of product from RM30 to RM70 is quite expensive for a local cosmetics product. Product such as Wawa Unicorn set, Muslim Bukhari, Mysterious Romance respectively pricing at 65 ringgits. Although it is a set product but some of our people may feel it is not worth it. As for celebrity, Wawa and her husband must admit their busyness for multi-tasking life. Sometimes life as a celebrity and at the same time running a huge business is no easier, lots of time must be scarify in order to achieve the success. Due to this problem sometimes, it will delay the production because lack of commitments. From my observation, the agents tend to higher the original product price at an unreasonable price. Therefore, both parties will get profits, but it will cause a surplus in economic due to the high price. Another factor that influence Wawa Cosmetics weakness is, there is no specific shop for this business. They tend to use social media and agents as the platforms to sell the product. This problem could lead to unbalance in pricing.

Figure 4.1.2 The Example of Unbalance Price Listing. Source from Google Search 8

4.2 External Factors Opportunities From the existence popularity that Wawa have it could bring a huge impact from her influence as a Malaysian celebrity. They fans will support whatever they do, and this could bring a long-lasting customer. From my observation, the agents or stockist made a huge impact for increasing the Wawa Cosmetics selling chart. It is because the agent can be found in the nearest location and people just meet them for Cash on Delivery (COD) rather than order the item and wait for it to be delivered. Until now, Wawa Cosmetics still launching new product such us the launching of Wawa Travel Perfume Set, Sweet and Sexy version after the launching of Muslim Bukhari. From this, it could be a clear picture that new product will be keep coming for now.

Figure 4.2.1 Wawa Travel Perfume Set. Source from Shopee.com Threats In Malaysian market, lots of existence cosmetics company will be the rival for Wawa Cosmetics Company. Senior cosmetics companies such as Mary Kay, M.A.C, Dior and Body Shop could affect Wawa sales. This luxurious cosmetic companies are undeniably experienced in the field rather than Wawa’s product and her competitive product is wellknown around the world. Increasing of materials is another challenge for this company. Huge amount of capital will be taken out and it is hard to forecast whether the product will success or not and this could lead to loss of expenses. Another obstacle that this company facing right now is the pandemic outbreak that affecting the world. According to Wawa interview in https://www.youtube.com/watch?v=qCEEF01Iad4, her intention is to broad his product not only in Malaysia but in the neighbourhood countries such as Indonesia, Singapore and Brunei. Unfortunately for them, it will slow the process to exports this product. Finally, another threat that this company may face is Lack of material that can cause the delay of the production of this company and more dangerous they will stop from producing. 9

5.0 REFERENCES Gempak, A. (2019, September 10). Astro Awani. Retrieved from https://www.astroawani.com/berita-hiburan/alhamdulillah-kami-sudah-digelarjutawan-ini-pengakuan-aeril-zafrel-dan-wawa-zainal-217125 Jefri, N. (30 July, 2020). Harian Metro. Retrieved from https://www.hmetro.com.my/utama/2020/07/605256/saling-melengkapi Tahir, S. M. (2020, October 28). Harian Metro. Retrieved from https://www.hmetro.com.my/rap/2020/10/635497/selepas-bina-masjid-nak-bukapusat-tahfiz-pula Zafrel, A. (2018, September 14). 100MIYE 2018 - Aeril Zafrel, Wawa Cosmetics. (E. Insight, Interviewer) Zainal, W. (2018, September 14). 100MIYE 2018 - Wawa Zainal, Wawa Cosmetics. (E. Insight, Interviewer)

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