UW00302
FUNDAMENTALS OF ENTREPRENEURIAL ACCULTURATION
SEMESTER 2
SESSION 2019/2020
BUSINESS MODEL CANVAS
Section :7
Lecturer : Bonaventure Boniface
Company name : Amigo
Group no :6
Type of business : Food
No Group members Matric number
1 Joan Lee Wan Rong BA18110208
2 Hashikin Binti Muthalif BA18110600
3 Janahtul Farhah Binti Mehboob Khan BA18110558
4 Lynnia Chari @ Chali BA18110387
5 Mohd Nazmi Bin Matrudin BA18110371
6 Mohd Syaharilnor Eksan Bin Mohd Salim BA18110520
7 Revan A/L [Link] BA17161115
TABLE OF CONTENTS
No Content Page
1.0 INTRODUCTION TO OUR BUSINESS
2.0 9 BUSINESS MODAL CANVAS (BMC) AREAS
2.1 Value Proposition
2.2 Customer Segments
2.3 Marketing Channels
2.4 Customer Relationships
2.5 Key Partners
2.6 Key Activities
2.7 Key Resources
2.8 Cost Structure
2.9 Revenue Streams
3.0 RISKS
4.0 CONCLUSION
5.0 APPENDIX
6.0 REFERENCE
1.0 INTRODUCTION TO YOUR NEW BUSINESS
A business is defined as an organization or enterprising entity engaged in commercial,
industrial, or professional activities. In our business project, we already decided to sell
food as our product.
The business name that we have come up together as a team and agreed within
our 8 members for APK project which known as Amigo. Amigo hold the meaning of
stylish and really in cute in every action. The terms of the Amigo are our tag line
product for our product that gives out the meaning of sincerity from our heart. We
choose this name as our brand name product name because we want to show the
cuteness of our product and the sincerity that we give while selling the product. The
colour of baby pink combined with the pure white colour as our base colour background.
The combination of colour will give out the aesthetics feeling of cuteness that suitable
for our brand name. Also, we display all the foods and beverages cute logo elements
that we sell as our products on our cover photo.
Coming up with our own official brand name and logo of Amigo. We also came
up with our own design for our sticker that will be display on our foods as our own
product brand. However, the foods only available to sell at DKP lama, DKP baru, Library,
FSSK and residential college. Hence, the sticker of our foods can only be show on our
final report.
For our business area of food and beverages, the customers that we are
targeting are the graduate and the ums students, lecturers and staff of University
Malaysia Sabah. The advantages of our product is the customer can buy our product
online. You can order our product through social media like instagram and facebook.
There are two products that we are selling. The products are Familia Popiah and
Soulmate Cake. Each of the products that we are currently selling have the price in the
range of RM3.00 per pack for popiah and RM5.00 per box for kek batik. The price range
is very affordable and reasonable which suit for all people in Universiti Malaysia Sabah.
2.0 9 BUSINESS MODAL CANVAS (BMC) AREAS
2.1 Value Proposition
The term ‘value proposition' is use ubiquitously in business today and its original
meaning has been dissipated into vague sales and marketing notions that are a
million miles away from its inteded meaning and use. It is often used to mean
benefits, offering, unique selling point (USP) or differentiation, and is also
generally regarded as the preserve of sales and marketing and not linked to an
organization's strategy.
A value proposition can be presented as a business or marketing
statement that a company uses to summarize why a consumer should buy a
product or use a service. Our company will provide traditional food products that
are popular among its fans of all ages. In modern era, we can spawn through
the newness element where we market our product through online and customer
can get an update news about our products and services.
Logo design and product branding should be appealing and user friendly.
In this case, we designed a logo that would indirectly attract customers as they
promoted our products. We also ensure that the quality of the product is
guaranteed to satisfy our customers and that with attractive product branding
and logo design they will certainly promote this product and will result in our
company benefiting.
An important aspect of the value proposition is certainly the price of
[Link] producing this product, we would expect other companies to
produce products like ours at a cheaper and affordable price. Our company
certainly strives to offer prices that will benefit both sellers and buyers. In
addition, we also provide delivery services so that our customers can find the
product they want without having to travel far.
Lastly, the products we provide are certainly easy to carry anywhere. This
product can also be manufactured in large quantities and will benefit our
company once all products are sold out.
2.2 Customer Segments
Customer segment is one of the most important building blocks in the business
model canvas for the business, so getting this building block right is key to our
success community ofcustomers or businesses that we are aiming to sell your
product or services to.
The customer that we have targeted is at the University Malaysia Sabah
(UMS). Our company segment the customer by their occupation which is
University Malaysia Sabah (UMS) student, lecturer, and University Malaysia
Sabah (UMS) staff. Most of the customer isUniversity Malaysia Sabah (UMS)
student. This is because most of the student doesn’t have their transport to go
out to buy their favorite food and they need to rent a car which will have a high
cost. So, our business is to help them to buy their food when they have not
enough time to go out and buy what they want, with this they will still be able to
get what they want. Besides, we also have a delivery for the lecturers and staff.
Our service can help the lecturers and staff to save their time. When they are
busy with their research or having a meeting, they can use our service and have
more time to do their research. On the other hand, the student may yearn for
some affordable sweetness and snack to relax as exams and assignment are
surrounding them.
As UMS is the multiracial university, the food we choose to be halal as it
may consume by any races with different religions. For an instant, Malay, Indian,
Chinese and Bumiputera like Dusun, Sino, Kadazan, Bajau, etc. In short, we are
also targeting the multiracial customers to come and make orders with us.
Moreover, most of the UMS students have their budget limit on their
expenses to make ends meet as most of us are focusing on academics instead of
making money. Therefore, we are targeting UMS customer who seeks for the low
budget and affordable price with quality food product.
2.3 Marketing Channels
A marketing channel is a platform where a company or an organization delivers
from the point of product origin to the customer. A manufacturer or a marketer
uses this platform to inspire, communicate, sell, deliver, and serve customer
expectation and their product needs. 4 tasks need to be accomplished in the
marketing channel, which is communicating, selling, shipping and servicing.
(McCalley, 1996)
2.3.1 Communicating
Our company promotes our product through face-to-face communication
and social media. In face-to-face communication, we approach to any
individual in the University Malaysia Sabah (UMS) campus to promote our
products. Besides that, we also promote our product to our family
members and friends. At the same time, social media such as Facebook,
Instagram and WhatsApp were used to deliver any information about our
products, promotion and provide customer service to the customer that is
interested in our product.
2.3.2 Selling
Our product was sold through social media which is Facebook, Instagram,
and WhatsApp. We have our business account which is Amigo_goodfood
on Instagram and Amigo on Facebook to display our product information
and receive orders through these social media. We collect the order
through these social media before we deliver it to them.
2.3.3 Shipping
Our company provides cash on delivery service to the customer that
purchase our product. We deliver customer purchased products according
to the requested location within the UMS campus.
2.3.4 Servicing
The customer review gave an effort to our company to make our product
better. The customer gave review by taking a picture of our product and
post it on social media. Through their posting, our company make it as
our ccompany feedback and improve our product quality base on their
review.
2.4 Customer Relationships
Customer relationship are the connection that company has established with
certain or specific customer segments. The relationship is measured based on
the customer satisfaction through the product and services they had. The
targeted customer can give feedback through social media platform or directly in
order to help the company to improve and establish its product. Customer will
expect a company to maintain a good relationship through social media and a
real-time face to face. Building strong customer relations is a great way to
develop customer loyalty and retain valuable, long-term customers. Therefore,
we are giving our customer a free sample tester for first time purchase to
introduce our product and foster relationship with our customer. It is also to
encourage repeat customer and earn our customer’s attention for our brand.
Majority of our customer are using social media as a medium to reach us,
and we also will be using social media as a platform to interact personally and
promote our products more to the customer. We also approach our customer
directly as we knew that not every of our customer frequently using social
media. As that concern, we promote and sell our product directly to our
customer. This kind of approach also help us to get customer feedback as fast as
possible and dealing directly with our customer helps us to build trust and
warmth relationship between our customer and us.
As our brand company called, Amigo along with our slogan “Good Food
Good Friend”. It shows that we want to have a friend-like relationship with our
customer and come close with them as close we can be. By using a various
platform like, whatsapp, Instargram and facebook we hope that our product will
reach through the customer’s heart and comfort them. This is important to
solidify the relation between the customer and our company.
2.5 Key Partners
Key partners are the relationships that you have with other business,
governmental, or non-consumer entities that help your business model work.
These can be the relationships that your company have with your suppliers,
manufacturers, business partner and so on. Companies forge partnerships to
optimize their business, reduce risk and acquire resources. Strategic alliances
between non competitors, coopetition, joint ventures develop new business and
buyer supplier relationship are the four types of patnerships.
To achieve this our group have finalized where we could buy our needs
for our selling. We finalized it so we could buy our needs for our selling. We
finalized it so we could choose the best price for our ingredients and at the same
time mantaining our products qualities. The company that we are partnership
with are Bataras Hypermarket and Bake With Yen where we buy ingredients and
containers for our products. We also are partnership with social media networks
by using social media platform such as Facebook and Instagram to promote our
products to the public.
Supplier for our ingredients would be our biggest partnership as we want
the best for our needs in order to mantain the quality of the product and also the
most important is mantaining the cleanliness of our product so that our customer
don’t get sickness from our food products. Moreover, partnerships can reduce
the risk in uncertain environments and to ensure our partnerships fills the gap of
the business and is translated to the customers.
2.6 Key Activities
We receive and collect orders from customers through google form and only
start selling all our products on Wednesday and Friday to make sure that all the
customers will not be able to miss out on the ordering time. The food will be
prepared one day earlier for all the food orders that we have received before the
day we will sell to maintain the freshness. There are 2 ways that we use to sell
our products that are direct selling and online selling.
Direct selling is one of the strategies that we take to earn our income. We
perform the direct selling by selling our product that is "Familia Popiah" with the
price of RM3 from door to door in Kolej Kediaman Excellent (KKE) as some of our
group members are living there
Besides, one of our way of selling our product is online selling. We
perform our online selling through our social media account of Instagram,
Facebook, and WhatsApp. Through social media, we can update our customers
about our Soulmates Cake Batik. Hence, customers can order the Soulmates
Cake Batik or Familia Popiah that they interested in and want to try by filling the
google form.
2.7 Key Resources
Key resources are one of the most important things in running a business. It is a
backbone for a company. It keeps every plan go according to the plan. Key
resources needed to make a business model work. Every business a model
requires them, and it is only through them that companies generate value
propositions and revenues.
The modal of this company was from our personal money. We collect
RM25.70 from each of our group members. Total of our modal is RM179.90 and
we spend the money wisely. As for human talent, we have a few group members
who very good with their cooking skills. They have their skill put into use like the
example they will make Faimiliah Popiah. In term of distribution, we also doing
COD in UMS area. Our networking is limited only in UMS.
We achieve this by finalizing what are the main products and where to
get it. After we get the best results, we plan on how to achieve it. For instant,
we have a very good connection with people who have experience in business of
Popiah or Kek Batik. By this relationship, we are looking for the best and
cheapest ingredients by asking them because they will suggest us the most
suitable place to get the ingredients by the lowest modal. In short, they are
willingly helping us in getting our products.
2.8 Cost Structure
Familia Popiah
Food Ingredients Portion Quantity Cost per
(Unit)
Plastic 1pcs 1.00 0.02
Familia Sugar 10tsp 1.00 0.23
Oil 250g 1.00 0.25
Popiah
Popia 35.71g 1.00 0.93
Nestum 183g 1.00 0.34
Total Cost Cost Per Unit 1.77
Mark Up Price 40.00% 0.71
Cost Item 2.48
Profit 0.52
Default Price Rounded 3.00
Soulmates Kek Batik
Food Ingredients Portion Quantity Cost per unit
(RM)
Tupperware 1pcs 1.00 0.28
Butter 62.5g 1.00 1.38
Soulmates Marie Biscuit 2.5 small pac 1.00 0.41
Kek Batik Choc Malt 50g 1.00 0.88
Marigold 2tsp 1.00 0.31
Creamer
Total Cost Cost per unit 3.26
Mark Up Price 40.00% 1.30
Cost Item 4.56
Profit 0.44
Default Price Rounded 5.00
2.9 Revenue Streams
We decided the price range for our product is within RM1.50 to RM5.00 as we
already compared our product within the UMS compound and outside area which
affordable for our customer segment. Our revenue solely depends on our weekly
sales, the amount ordered received in every week. Our type of payment include
cash on delivery (COD) and discount that we give away to customer that buy our
product in a big scale and of course we will also receive our payment in cash.
3.0 RISKS
Business risk is the exposure an organization or a company has to factors that will lower
its profits or lead it to fail (Will Kenton). Before run the business, we should identify a
risk and analyses any potential threats that might ruin business plan. These not only
external risk but it can also from internal risk.
There are several risks that can be listed to the product. First, we are not able to
make time for business especially when everyone has limited time for business. For
example, the time consuming in cooking and delivery time. So, the solution is we should
improve our time management and do early preparation time to make time for business.
Second, we also have financial risk because the cost of ingredientshigh. Money
flowing in and out. Besides, the possibility of a sudden financial loss can occur at any
time. So, in our company we decided to have a good management in using money and
buy the ingredients when have promotion in Bataras.
Not only that, product quality also one of the risk related to thisbusiness. It is
because, it may cause physical damaged due to transportation. So, we buy a good
quality container and plastic to avoid any damaged happen due to transportation.
Lastly, competition with other business selling the same product. Since, there is
some company like us selling the same product which is popiah and cake. So, of course
competition among seller happen and customer will buy products that are worth buying.
Therefore, we do promote, give tester and also sell in reasonable price. We should more
creative on our services and products than the other group or company. For example,
an attractive set of design and logos for every product that we sell may increase our
uniqueness. So, this will attract a lot of buyers to buy our products.
4.0 CONCLUSION
Throughout the whole process in making this project a success, our goal is to make
customers happy with our product food which we bring it out as our tag line. Competing
for the customer is never ending challenge. This is due principally to the uniqueness and
competive of each individual market, for they are all differerent and all require different
approaches because the consumer behaviour and factors which affect this behaviour. To
accomplish the objective, the following action should be taken. Well, it is showed that
our product is sweet and ‘instagrammable’ food trend.
According to our target, while it was generally agreed that the price was
reasonable and the variety wide, more than half of those review felt that our product is
sweet and ‘instagrammable’ food trend. According to our target while it was generally
agreed that the price was reasonable and the variety wide, more than half of those
review felt that quality of food could be improved upon, particularly in the areas of the
food, size of food portions of ingridents. So, the change is real. The great idea to attract
customers at library where most of the student will come there.
5.0 APPENDIX
6.0 REFERENCE
McCalley R. W. (1996) Marketing Channel Management. America: Praeger Publishers.
Will Kenton. (2019). Business Risk. Retrieved from
[Link]
Cindy Barnes, Helen Blake & David Pinder. (2009). Creating and Delivering Your Value
Proposition: Managing Customer Experience For Profit. London & Philadelphia: JS Typesetting
Ltd.
