[ Hanan] BMC Report PDF

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iCOMPANY LOGOBUSINESS MODEL CANVASPRINCIPLES OF ENTREPRENEURSHIP (ENT530): BUSINESS MODEL CANVASFACULTY : FACULTY OF BUSINESS AND MANAGEMENTSEMESTER : 2PROJECT : AROMATIC GEL PILLOWNAME : 1. ALIFF HUSAIRY BIN ABDUL HALIM (2020611702)2. HANAN WAFI BINTI FADZIL (2020816858)3. AISHAH NISA BINTI FAYROUZ...

Description

COMPANY LOGO

BUSINESS MODEL CANVAS

PRINCIPLES OF ENTREPRENEURSHIP (ENT530): BUSINESS MODEL CANVAS

FACULTY

: FACULTY OF BUSINESS AND MANAGEMENT

SEMESTER

: 2

PROJECT

: AROMATIC GEL PILLOW

NAME

: 1. ALIFF HUSAIRY BIN ABDUL HALIM

(2020611702)

2. HANAN WAFI BINTI FADZIL

(2020816858)

3. AISHAH NISA BINTI FAYROUZ

(2020859636)

4. NURUL SHAHIDAH BINTI BURHANUDDIN

(2020859806)

5. AIN NUR SABILLA BINTI MOHD ADZRI KAPONG

(2020825222)

i

LECTURER

: MADAM WAN HASMAT BINTI WAN HASAN ACKNOWLEDGEMENT

First and foremost, praises and thanks to the Almighty, for His showers of blessings throughout our Business Proposal which is one of the requirements that need to be fulfil in the

course work assessment for subject Principles of Entrepreneurship (ENT530). We

would like to express our sincere appreciation to our Principles of Entrepreneurship’s lecturer, Madam Wan Hasmat binti Wan Hasan for her constant guidance and encouragement, without her this work would not have been possible, and we are truly grateful for her unwavering support.

Besides that, we wish to express our gratitude to all of our classmates who rendered their help during the period of our business proposal project, providing us more idea for our business and also for their elevating inspiration and kind supervision in the completion of our report.

Finally, we would like to mention here that we are greatly grateful to each and everybody who has been associated with our business proposal at any stage. We are very grateful to them for the effort and initiative that they have shown in our project until successfully completed and we hope this business proposal report can give us little bit about entrepreneurship world.

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TABLE OF CONTENT PAGE TITLE PAGE

i

ANKNOWLEDGEMENT

ii

TABLE OF CONTENT

iii

LIST OF FIGURES

iv

LIST OF TABLE

v

EXECUTIVE SUMMARY

vi

1.0 INTRODUCTION 1.1

Company Background

1

1.2

Problem Statement

2

1.3

Opportunity recognition

3

1.4

SWOT analysis (two competitors)

4

1.5

Purpose of business model canvas preparation

8

2.0 BUSINESS PROPOSAL

9

2.1 Business Model Canvas (BMC)

10

2.2 Explanation of BMC

11

3.0 CONCLUSION

20

4.0 REFERENCES

21

5.0 APPENDICES

iii

LIST OF FIGURES

Figures

Description

Figure 1.1

Cool-Gel Tech’s Logo

Figure 2.1

Types of Cool Gel Pillow

iv

LIST OF TABLES

Tables

Description

Table 1.1

SWOT Analysis

Table 2.1

Business Model Canvas (BMC)

v

EXECUTIVE SUMMARY

The overview of this Business Model Canvas (BMC) is we managed to get a lot of new knowledge and information about business and entrepreneurship world. This business is a partnership business. We began this business to provide our customer with good quality product and to reduce the burden or problems borne by the consumer such as back pain, headaches, stiffness, and insomnia. Our business, aromatic gel pillow has grown quite substantially from the beginnings, and today Cool-Gel Tech has provided various design of aromatic gel pillow for our beloved consumers.

As we know, there are many other businesses or company that sell cool gel pillow nowadays. Thus, we decided to start-up this business and keep improvising our product to satisfy the needs of our customers and to generate more profit and revenue. We choose to establish our business is because there is a high demand from customers especially in Malaysia because when temperatures climb high, they will need this kind of product to solve all the sweaty night-time problems.

In this Business Model Canvas, we managed to analyze several information regarding our business such as our customer relationships and target customer. The Business Model Canvas is vital in a business because it helps visualize what is important and forces users to address key areas and in fact, we can improvise our product from time to time.

vi

1.0 INTRODUCTION 1.0 Company Background

Figure 1.1 Cool-Gel Tech’s Logo

Cool-Gel Tech company is one of the companies that sells cool gel pillow with aromatic scent in Malaysia. Our company owns a retail store and available in digital online platform. Basically, Cool-Gel Tech focus more on eco-friendly and premium quality products because consumers value higher quality products. Thus, sales revenue of the company will increase. There are several products that we produced and mostly user friendly such as neck cooling pillow and Lumbar cooling pillow. We are currently continually developing new products and reinforcing existing products to include a full range of sleep products that provide each sleep personality with personalized comfort.

Since Malaysia’s weather is quite hot and does not have this kind of product yet, Cool-Gel Tech take this opportunity to produce cooling gel pillow with aromatic scent to help their consumers to get a good deep sleep. As we started this business, there is only a few designs for our cool gel pillow, but now we have more than five designs and several sizes that applicable to all age. All products are user friendly which means it is safe and does not harm the consumers. It is vital for our company to ensure the manufacture of these products is safe to use because our customers are our priority.

Lastly, Cool-Gel Tech is currently cooperating with the most familiar platforms for online shopping which are Shopee and Lazada and we are looking to expand our business into the Middle Eastern East Asian markets. 1

1.2 Problem statement A Customer Problem Statement clearly elaborates on the problem that product or services solves for customers. The statement is meant to help us understand the experience that we are attempting to transform, or the space we are attempting to enter, by building our new product or service. As for aromatic gel pillow, it focuses more on people who cannot sleep well just because poor back and neck health. As we know, it is actually a common problem for everyone especially students and workers who spends most of their time at home during this covid-19 pandemic. It is also suitable for anyone who suffer with stiffness and headaches.

According to Benjamin Laker’s writings in Forbes article, he says that working from home seemed like an amazing benefit for many workers before the pandemic hit. However, The Star articles, Diyana Pfordten said that working from home may not work out for many Malaysians especially during the COVID-19 pandemic which can affects workers and students because workers and students tends to spend most of their time at home and the impact of working for hours will cause the body to become weak and lethargic. Besides that, Scott Curtis’s writings states that neck pain is typically results from injuries. In Spine health’s article, Curtis asserts that some of the injuries are caused by whiplash, uncomfortable sleep, poor posture, and stress. Based on the Spine health’s article, Zinovy Meyler’s writings state that whiplash is a neck injury due to forceful, quick back-and-forth movement of the neck and people with whiplash problems will feel better within a few weeks.

Next, for drivers who always feeling exhausted during long drives and need a lower back support when they are driving, this product is highly recommended. Based on NCBI’s journal, the writer has explained the causes of back pain and neck pain is because of the sitting posture and disruptions imposed by the car and driving is correlated with high activation of low-back and neck muscles. Besides that, in Sleep Foundation’s article, the writer, Eric Suni states that night sweats or excessive sweating during sleep can reduce sleep quality because with night sweats, they will often wake up in the middle of the night with a layer of sweat all over their body and might feel damp or wet. Lastly, people who suffer insomnia also suitable for this product to relieving insomnia because it leaves sleep

2

disorganized. Insomnia causes people to become tired, results in low energy, and causes irritation. 1.3 Opportunity recognition Recognition of opportunity means proactively brainstorming a new concept for a business venture or expansion. An organization needs some capacity to identify their opportunities in order to achieve long-term sustainability and growth. Industries typically adapt based on changes in culture, changes in consumer preference or developments in technology. In providing progressive innovations to consumers, the most creative business leaders that seize opportunities remain ahead of the competition.

As we know, business will never increase in value without growth. Yet company growth is not naturally happening, it is the product of strategic initiatives. In order to expand our business, we must employ three basic growth strategies which are market penetration, product development, market expansion.

Firstly, market penetration relates to the number of potential customers that have purchased a specific company's product instead of a competitor's product. Grow through market penetration does not involve moving into new markets or creating new products but we must implement this strategy by reducing our product’s price, or by marketing campaigns to draw consumers away from rivals. As for Cool-Gel Tech, to increase our market share, we need to make some innovation to our products from time to time. For example, we need to increase the functionality of the product.

Secondly, in terms of product development, we will create new products to serve the same market. As for our business, we will further expand our business by selling bedding products such as memory foam mattress. Without entering new markets, we can sell these new products to existing customers and grow our business. Lastly, the opportunity recognition for Cool-Gel Tech company, in terms of market developments is we want to move into a new city, state or even country. For instance, expanding our business to Southeast Asian countries, Middle Eastern, or East Asian markets. Business growth includes entering new markets for the goods or services.

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1.4 SWOT Analysis

S

Cool-Gel Tech

W

O

T

Strengths

Weaknesses

Opportunities

Threats

High quality product

Do not have membership card

Improves functionality of the products

Increasing raw material costs

Affordable price

New to industry

Intense competition Produce variety of designs

Product with aromatic scent

Expand the business globally

Owned a physical store and online shopping platform Participate in monthly sale

Strengths

Weaknesses

Opportunities

Threats

Wide range of products

Costly

Improve market value

Emergence of new competitors

Maintaining a positive brand reputation

Lower the products cost

Economic slowdowns

Strengths

Weaknesses

Opportunities

Threats

Excellent customer’s experience

Do not have their own website

Increase physical presence

Larger competitors get majority of market share

Malouf Delivers nationwide Owned a corporate headquarters

4

Moustache

Reliable product Fast delivery

Not having enough virtual marketing experience

Improve online marketing techniques

Consumers’ expectations are rising

Table 1.1 SWOT Analysis i.

Strengths SWOT Analysis Strengths are those of the organization's functionality and areas where we can perform better than our industry rivals. As for Cool-gel Tech, we produced a high-quality product with affordable price. Thus, it can be consumed by all range of customers as it is such a good investment and worth for our customers. Besides that, Cool-Gel Tech is one of the start-up company that sell cool gel pillow with aromatic scent where the scent itself is commonly known as sleep remedies. Not just that, Cool-Gel Tech apply brick and mortar as we sell our product in physical store and online shopping platform. One of the advantages for having a physical store is it will be easier for our customers to look, touch or hold the product by themselves. Thus, they will be more satisfied. However, for online shopping platform, we can reach more customers day by day since people nowadays spend most of their time on the internet and mostly prefer buying things online rather than offline shopping especially during this pandemic Covid-19. Furthermore, Cool-Gel Tech actively participate in monthly sales promotions on online shopping platforms in order to attract customers' attention. For instance, Cool-Gel Tech provide discount and cashback promotions. Customers will love this because they can spend money and get some in return. It is almost like paying less and then getting extra money to get other valuable products.

For Malouf company, their strengths are they can deliver nationwide. So, it is easier for people to reach their products. They also provide variety of products for their customers such as pillows, bedding, mattress toppers etc. Furthermore, Malouf company has already owned a corporate headquarters located in Logan, Utah, and distribution centres are located strategically across the country and they are getting stronger day by day. Next, Moustache’s strengths are their excellent customer’s experience. An outstanding customer experience is one that keeps customers coming back, while spreading the word about their experience. Besides, their product’s quality is reliable which means trouble-free product 5

that continues to satisfy its customers for a long period of time. Lastly, they provide fast delivery to their customers as it can boost customer satisfaction and loyalty.

ii.

Weaknesses Weaknesses are negative and internal factors that affect the organizational successes. Cool-Gel Tech is a new company in the industry and because of that it takes time to expand the business itself and most probably peoples are not familiar with this brand. Secondly, Cool-Gel Tech does not provide membership card for our customers. Sometimes, it is necessary for a business to provide membership cards because it keeps the customers coming back to enjoy the advantages and benefits that the we deliver while Malouf company’s weaknesses are all of their products are costly compared to Cool-Gel Techs’s products which produced a high quality product but with affordable price. Furthermore, Malouf’s weaknesses are when they need to maintain as a positive brand reputation. Since Malouf company is a well-known brand, it shows consumers’ trust and confidence to buy their products. Thus, they must ensure it measures the key components that drive brand equity. Lastly, Moustache company facing a bad virtual marketing experience and they even do not have their own website to promote all their products. So, it will be difficult for people to notice their brand.

iii.

Opportunities Opportunities apply to advantageous external variables that could offer a competitive advantage to a company. As for Cool-Gel Tech, we have been looked up for this opportunity to create or produce more different products in terms of design because design is one of the importance things that customers looked up for. So, we can generate more profit and sales for our company. For example, as for students and workers, they can use cooling gel seat cushion for their office chair as it is incredibly comfortable, Sciatic seat support pressure relief and tailbone. It features a layer of gel-filled cells on its upper surface. Such cells react to the temperature of the body and absorb excess heat from skin. Thus, we take this opportunity to provides various design for cooling gel seat such as zipper design because with a zippered cover, consumers can change according to their liking. It means that they can select the loft that fits best for their sleeping style.

6

Next, Cool-Gel Tech take the opportunities to improves the functionality of the product. This is because, function is simply the primary purpose of the product in order to satisfy the needs and wants of the customers. For instance, for people who suffers with stiffness and headaches, they usually using the wrong pillow type which will weaken painsensitive structures and produce waking symptom. Therefore, aromatic gel pillow can help reducing stiffness and headaches. These products provide an adequate pillow that supports neutral cervical lordosis which can prevent symptoms of cervical waking and improve the quality of sleep by optimizing the sleeping position. Cool-Gel Tech will take this opportunity to improve the functions of this product by providing multi-functions of cool gel pads such as for yoga cushion. Furthermore, Cool-Gel Tech decided to improve the quality of the aromatic scent and providing more scent for our consumers. The aromatic scents can help the users to release stress because the sense of smell plays an important role in the physiological effects of mood, stress, and working capacity.

Besides, we have also decided to take this advantage to expand our business globally. Thus, it helps to increase sales growth while improving the return on capital and reinvestment rate of a business. Different from Malouf company where their opportunities are to lower their products cost to attract their customers and compete with other brands who provides the best quality with lower price product. However, refer to Malouf’s weaknesses that I have mentioned before, where it is hard for them to maintain as a well -known brand, so they take this opportunity to improve their market value of their products by enhance or improvise the quality of Malouf’s products. As for Moustache company, they also need to increase their physical presence by opening a retail store and focus on where their target audience live. They also want to improve their virtual marketing skills because as we can see, it is hard for people to find Moustache’s products especially because they do not have their own website.

iv.

Threats The major competitor for Cool-Gel Tech are Malouf and Moustache company. So, there is intense competition between them. This means, they need to prove their products are the best among all in terms of market value, design, etc. This includes start-ups and established firms that may expand into the market. Increasing raw materials cost for CoolGel Tech product is one of the major threats. This is because it will affect the market price 7

of the product. As for Malouf, in order for them to fulfil their opportunities, they might face economic slowdowns especially during Covid-19 pandemic, from closing down productions or operations to a drop in consumer confidence, COVID-19 continues to impact businesses and the way they operate. Next, there are two threats for Moustache compa...