FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)

BUSINESS MODEL CANVAS

NAME OF COMPANY
Chibs Ice Cream

TYPE OF BUSINESS
Food and Beverage (F&B)

PREPARED BY
FACULTY & PROGRAMME : FACULTY MECHANICAL ENGINEERING
SEMESTER : JEM1105A
PROJECT TITLE : BUSINESS MODEL CANVAS OF CHIBS ICE CREAM
NAME : NURLISA BINTI HAMZAN
STUDENT ID : 2017368543

PREPARED FOR
PN. NURUL ASRIN BINTI ROSLAN

SUBMISSION DATE
14th May 2020
TABLE OF CONTENTS PAGES

INTRODUCTION…………………………………………………………………. 3

KEY PARTNERS………………………………………………………………….. 4

KEY ACTIVITIES………………………………………………………………… 5

VALUE PROPOSITION………………………………………………………….. 6

CUSTOMER RELATIONSHIP………………………………………………….. 7

CUSTOMER SEGMENT…………………………………………………………. 8

KEY RESOURCES………………………………………………………………… 9

DISTRIBUTION CHANNEL…………………………………………………….... 10

COST STRUCTURE………………………………………………………………. 11

REVENUE STREAM……………………………………………………………… 12

CONCLUSION…………………………………………………………………….. 13

BUSINESS MODEL CANVAS CHIBS ICE CREAM………………..…………. 14

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INTRODUCTION

In this Business Model Canvas, we will be discussed about our business of Chibs Ice
Cream. It is the business that specializes in dessert and can eat by all kind of ages. The ice
cream business was inspired by the passionate and something that enjoyed and loved. The
mission was to take the loved product and make it even better. Making some research about
the science behind ice cream production and figured out that a lot of quality of the products
was ice cream crystal formation. The colder we freeze the substance, the smaller it will make
the ice crystals, and the smaller the ice crystals the smoother the texture.

Founded in 2017 at Johor Bharu, our company has remained in the Chibs family for the
first generation as the “Chibs” comes from the name combination of the family. This company
opened branches in Johor Bharu and now the Chibs Ice Cream has more than 60 shop locations
in west Malaysia. There are 20 difference flavours in the menu that become a favourite of
people in Malaysia. It comes in form of cups, cones and handpack which are making it easy
for customers to choose their favourite ice cream.

These ice creams were marketing using social media to advertise where and when they
would be. The company comes with the idea that the customer could have a different flavour
everyday of any month. The slogan” more TASTE more YUM” describe that there is the
various type of flavour in the menu that customers can choose. The menu allowing this
company to pick the best ingredients and make sure that every single flavour is perfect when
making it due to the customer specifications.

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KEY PARTNERS

As the business is the owner business, our key partners for the Chibs Ice Cream is the
supplier, The Islamic Development Department (JAKIM), local authorities and Bank and
Credit Institutions. By doing this we can get the idea about what is market scenario,
optimization in product and cost can be achieved and from where we can get raw material of
our product.

The supplier is an organization in supplying the raw material to make the ice cream.
The supplier for this raw material consists of 3 different company which is Lorisa Bakery in
supplying the ingredients of making the cream, second, Plastic Mart Sdn Bhd & Creative
Printing is supplying the packaging of our ice cream and lastly, Muji &Co that supplying the
fruits for flavouring.

Furthermore, The Islamic Development Department (JAKIM) play the important role
as the organization involving in Malaysia Halal Certification Procedure Manual and Good
Manufacturing Practice (GMP). This is important to the company to get Halal confirmation as
it proven that the ingredients we used in making the ice cream are not mixing with ingredients
that contain alcohol or are prohibited in religion. This also coincides with something that is
good to eat.

Besides that, the local authorities such as firefighter play a role in ensuring safety of
our restaurant. It is important for them to make maintenance of the fire extinguisher in our
branches to prevent from any incident occurs in the kitchen. We also cooperate with them in
the inspections of ventilation system in the kitchen.

Lastly, Bank and Credit Institutions such as Maybank Malaysia is important in the
lending sector. This loan is important because it is intended to be the capital of establishing our
new branches in Malaysia. However, we are very concerned about the loan amount so that it
will not be a burden on the repayment.

The motivation of Chibs Ice Cream is to grow our ice cream business and be even more
successful in the year ahead and created best tasting and healthy ice cream in the world.

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KEY ACTIVITIES

To improve the business, we are aware about how this Chibs Ice Cream will represent
to customers. There are several keys activities that we have done such as marketing, sales,
development, operation, and distribution.

For marketing, the promoting activities by using social media were held. The social
media such as Instagram, Facebook and Twitter are the platform that we advertise our Chibs
Ice Cream to the customers who want the dessert that fulfils their desire. These make easier for
them to get the information and what they want to know about our ice cream.

Besides, we also make sales as key activities in this business. This sales means that we
are selling the Chibs Ice Cream direct to customer. Chibs Ice Cream are always freshly prepared
every day. The scooper will serve the customers in front of customer service and give what
customers need. Vince Lombardi once said “It takes months to find a customer, seconds to lose
one. “. Therefore, we required all staff to give a good service to customers as it can make the
customers happy and satisfied with our service.

The development was done by making some improvements on the quality and taste of
Chibs Ice Cream. We have improved the quality and taste of some ingredients by using real
fruit without preservatives. This will make the ice cream quality fresher and taste delicious.
Other ingredients such as eggs and cheese, we use the high-quality ingredients to get customers
satisfaction.

Operation and distribution mean that we are completing the final product with the
improvement of packaging and managing inventory. Our packaging is supplied by Plastic Mart
Sdn Bhd & Creative Printing that was the combination ideas between our company and them.
The original idea was a round packaging cup, but it was modified with more attractive design
which is pentagon. The pentagon shape can hold large amount scoop of ice cream in one cup.
We believed that the customers will be satisfied with the ice cream.

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VALUE PROPOSITION

There are several value propositions that must be taken into consideration in customer
satisfaction. Therefore, we consider the customer satisfaction by the functional benefit,
emotional benefit, and self-expression benefit.

As we know, Chibs Ice Cream are made from the hand-selected ingredients, all
provided from reputable local farms. Milk and cream are organic, and the final product is free
from preservatives, emulsifiers, and stabilizers. Thus, we want to make sure that our product
can give health benefit to consumers. Josh Billings, an American humourist said, “health is
like money, we never have a true idea of its value until we lose it.” Health issues plays the
important role as the risk of high sugar consumption become more well-known. Therefore, we
are constantly monitoring the amount of the sugar and sweeteners usage in the process of
making ice cream.

Second, emotional benefit means that we ensure that everyone who consume our ice
cream will fell happy because it is a healthy ice cream and various flavour of ice cream. The
smoothness of the ice cream with uniqueness of nitrogen freezing method, can attract more
customers to fell wow with their choice of flavours and topping. Customer service is set to the
highest level to make sure every customer enjoys a good experience and will come back.

Besides that, self-expression benefit means that our performances to customers was
good such as served the ice cream faster and more efficient. The newness is created to this
business as the idea was related to new generation an up to date. As we know, fans of ice cream
are mostly from kids but do not forget that adults are enjoying ice cream too. Therefore, we
have created an ice cream menu with 20 flavours that appeal to our customers and suit their
tastes. Thus, we will gain the trust of our customers to continue our dealings and to be our loyal
customers.

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CUSTOMER RELATIONSHIP

In order to build a long-term relationship with customer, we are adhering to the

principle which is the goal is not to sell an ice cream, it is to build a relationship of confidence
and trust with the customer. Therefore, the company provided customer intimacy, operational
excellence, and customer feedback as the ways to strengthen the relationship with the
customers.

Customer intimacy means that every day, our company make a promotion on birthday
treats. Whoever having a birthday celebration on that day, we provided the special discount
which is buy 1 free 3 ice cream and the customer will get the birthday present from our
company. This present is in the form of a special ice cream cake from our company. By taking
this initiative, our customers will feel valued and will always be loyal to us. This approach can
attract customers who have not tried our ice cream to try it.

Operational excellence means that the operation of ice cream is ready on time, the ice
cream was fresh making and the ice cream was safely delivered to customers. This operational
excellence was important as it can improve the quality of staff work and avoid the negative
feedback from customers about our company. If we receive the negative feedback from our
customers, it means that we have made a mistake in creating a good and successful business.
This thing should be avoided as it will affect our business and customers will not like this ice
cream anymore.

Besides, Chibs Ice Cream maintain customers relationships and engaged customers via
social media and instant messaging. Customers also can give feedback and review on our online
platform. It truly makes our day when we hear feedback about how well our ice cream meet
our customers’ expectation. If there is a negative comment, we will try our best to improve.
This is to form a relationship with each customer and make them feel comfortable which will
bring higher chance in repeat purchase in the future.

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CUSTOMER SEGMENT

The customer segment is important as it shows to who our business is focusing. Hence,
for this business, Chibs Ice Cream, the customer segment is focusing to the public regardless
age, gender, occupation, race, or nationality.

As we know, the consumer needs and wants change with their age, gender, and life
cycle. However, for this business, ice cream can be eaten without need a specification for the
buyer. No matter how old you are, people will eat ice cream as much they want and what
distinguishes the old and young is the choice of the ice cream flavour when buy the ice cream.

Besides, this business is focusing for all over lifestyle people whether through their
activities, interest, or hobbies because all of them will be interested in buying the ice cream as
it is not a product that classifies the users to have it. However, the ice cream market is also
volatile due to several factors including the weather. During summer, the ice cream having a
high demand in markets especially for the 4 seasons country while in winter, the demand of ice
cream will be decreased. Therefore, for the customer segment, we are focusing to the public as
it can make the business successful without making this factor a hindrance.

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KEY RESOURCES

The key resources are the infrastructure to create, deliver and capture value. It shows
which assets are indispensable in our business model such as physical, intellectual, human, and
financial.

For the physical, our company have created 60 stores location. The inventory and
equipment in each store are prepared well to satisfy the customers when buying the ice cream.
All the comforts were provided for customers including dining table, reservation for birthday
celebration, toilets, and Muslim prayer space. With all these equipment’s, we believed that we
could make our customers happy with the service provided.

For the intellectual and human, the supplier plays an important role as they supply the
ingredient and packaging to us. The good packaging and various flavours will attract more
people to buy our ice cream. The recipes of ice cream are based on the family’s recipes which
is use the secret ingredients. The branding also important as it represents our company which
is always fulfil what customers want and improve our product to better.

The financial is referring to our investments and all the ice cream that sell are cash on
hand. The profit we have is based on the sales revenue of the market that taking place in
Malaysia. The more the demand of Chibs Ice Cream the more the profit the company produces.

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DISTRIBUTION CHANNEL

Steve Jobs said that “get closer than ever to your customers. So close that you tell them
what they need well before they realize it themselves.” The distributions channel for Chibs Ice
Cream is the platform for us to provided information to customers out there about this business.
The distribution channel for Chibs Ice Cream are through direct sales, Internet, food service
and agent.

The direct sales means we are dealing directly with the customers. We are dealing face
to face with customers and the communication between staff and customers are important as it
can affect the customers either satisfied or not with our service.

The internet such as social media helps in advertised Chibs Ice Cream business.
Through Twitter, Facebook, and Instagram, people will know our product and easier for them
to get the ice cream directly or through delivery. People can contact us through the detail that
we provided in the social media such as company website and branches phone number.

We also provided the food service such as catering or any celebration reservation.
People who attend the event will find out our business and will recognize the business directly.
This is the way how we want to bring Chibs Ice Cream to the public.

We are also selling the product through the agent which is the agents will promote our
product via advertisement. The agent also one of a staff who plays a role in promoting this
Chibs Ice Cream to public. If there are any customers that interested with the ice cream, the
agent will notify our management about the detail of customer’s reservation.

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COST STRUCTURE

After planning our business infrastructure, we will also have an idea of the associated
costs with operating both fixed and variable. What we are going to determines the cost involved
in rental (inventory), raw material, packaging, marketing and delivery cost and others.

Chibs Ice Cream has estimated the costs for a branch:

FIXED COST

▪ Accounting : RM 1 800/month
▪ Staff salary : RM 800/month
▪ Legal : RM 500/year
▪ Payroll & Benefits : RM 1 500/month
▪ Rental : RM 1 500/month
▪ Advertising : RM 200/month
▪ Management/Administration : RM 300/month
▪ Packaging : RM 500/month

VARIABLE COST

▪ Telecommunications : RM 150/month
▪ Delivery cost : RM 800/month
▪ Utilities : RM 500/month
▪ Raw material : RM 4 500/month

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REVENUE STREAM

The revenue stream is where we are making it clear on how and through the pricing
mechanisms of our business model is capturing value. We considered on how we generate
revenue through our value prop and how much does each revenue stream contribute to overall
revenue.

We generated the sales through:

▪ Physical product
▪ Agent
▪ Catering & Business Purchases
▪ Event
▪ Different menu offering

Customer willing to pay:

➢ RM 8/cone
➢ RM 10/cup
➢ RM 35/quart handpack
Sales of product approximately : 1200 unit of cup/month = RM 12 000/month
: 2000 unit of cone/month = RM 16 000/month
: 750 unit of quart handpack = RM 26 250/month

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CONCLUSION

In conclusion, the to be success in a business it requires creativity and innovation in

addressing a new opportunity to compete with others. In this report, the Business Model Canvas
(BMC) have been use as entrepreneurial tool that enables new business to visualize, design,
and reinvent the business model through its nine basic elements from both rational and
emotional perspectives. Business Model Canvas (BMC) help to reach the goals of the business.
However, as Steve Jobs once said, “simple can be harder than complex.”, the Business Model
Canvas (BMC) of Chibs Ice Cream is still need the improvement and effectiveness of which
largely relies on its inputs. Management and consultants play the important role in creating this
business forward or in the other words to the world market. This is because, we believed the
Chibs Ice Cream is a small business that can make a huge impact on the company.

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 BUSINESS MODEL CANVAS CHIBS ICE CREAM

1. KEY PARTNER 2. KEY ACTIVITIES

▪ Key owner
▪ Supplier: Lorisa Bakery ▪ Marketing
Plastic Mart Sdn Bhd & Creative Printing
Muji &Co ▪ Sales
▪ The Islamic Development Department ▪ Development
(JAKIM)
▪ Operation and Distribution
▪ Local authorities
▪ Bank and Credit Institutions.

5. CUSTOMER SEGMENT 4. CUSTOMER RELATIONSHIP 3. VALUE

▪ Customer intimacy PROPOSITION
▪ Public regardless
▪ Operational excellence ▪ Functional
age, gender,
occupation, race, ▪ Customers’ feedback benefit
▪ Emotional
or nationality.
benefit
8. COST STRUCTURE
▪ Self-
▪ Accounting
expression
6. KEY RESOURCES ▪ Contract labour
▪ Legal benefit
▪ Payroll & Benefits
▪ Physical
▪ Rent
▪ Intellectual and ▪ Telecommunications 7. DISTRIBUTION
human ▪ Advertising CHANNEL
▪ Management/Administration
▪ Financial.
▪ Raw material ▪ Direct sales
▪ Packaging ▪ Internet
▪ Delivery cost
▪ Food service
▪ Agent
9. REVENUE STREAM
Generated the sales through:

▪ Physical product ▪ Event

▪ Agent ▪ Different menu offering
▪ Catering & Business Purchases

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