FACULTY OF BUSINESS AND MANAGEMENT

BUSINESS STUDY

FUNDAMENTALS OF ENTRPRENEURSHIP
ENT300
GROUP ASSIGNMENT

NO NAME STUDENT ID
1 Nur Adibah Binti Ab Malek 2018419214
2 Najihah Binti Mohamed Rafee 2018247522

3 Meor Dzakwan Faiq Bin Meor Fauzi 2018416178

4 Muhammad Nur Najmi Bin Mat Hanim 2018807204
5 Fizal Saimon Bin Mohd Fauzzi 2018271672
6 Muhammad Arif Najhan bin Mohd Saharudin 2018427678

LECTURER: Madam Rafidah binti Abdul Azis

SUBMISSION DATE: 27 November 2020
TABLE OF CONTENT

NO TOPIC PAGE

1 EXCUTIVES SUMMARY 1

2 INTRODUCTION 2 - 12
• COMPANY BACKGROUND
• COMPANY LOCATION
• PURPOSE OF BUSINESS PLAN
• OWNER’S BACKGROUND
• PRODUCT DESCRIPTION

3 ADMINISTRATION PLAN 13 - 22
• INTRODUCTION TO THE ORGANIZATION
• ORGAZNIZATION CHART
• LIST OF ADMINISTRATIVE PERSONNEL
• SCHEDULE OF TASK AND RESPONSIBILITIES
• SCHEDULE OF REMUNERATION
• OFFICE EQUIPMENT AND SUPPLY
• OFFICE STATIONERY
• ADMINISTRATION BUDGET

4 MARKETING PLAN 23 - 37
• PRODUCT DESCRIPTION/ SPECIFICATION
• MARKET SEGMENTATION
• ANALYSING MARKET TREND AND SIZE
• COMPETITION ANALYSIS
• FORCASTING SALES
• DEVELOPING MARKETING STRATEGY
• PLANNING OF MARKETING PERSONNEL
• PREPARING MARKETING BUDGET

5 OPERATIONAL PLAN 38 - 55
• PROCESS PLANNING
• OPERTAION LAYOUT
• PRODUCTION PLANNING
• MATERIAL PLANNING
• MACHINE AND EQUIPMENT PLANNING
• MANPOWER PLANNING
• OVERHEAD REQRUITMENT
• LOCATION PLAN
• BUSINESS AND OPERATION HOURS
• LICENSE, PERMITS AND REGULATIONS REQUIRED
• OPERATION BUDGET

6 FINANCIAL PLAN 56 - 64
 • FINANCIAL INPUT (ADMINISTRATION, MARKETING,
AND OPERATION)
• PROJECT IMPLEMENTATION COST AND SOURCE OF
FINANCING
• CASH FLOW PRO FORMA STATEMENT

7 APPENDICES 65 - 68
1. EXECUTIVE SUMMARY

The name of our company is Wealth and Health Co. Wealth and Health Co is a small-sized company that
manufactures new innovative and unique product that is suitable for everyone especially those that often
spend too much time sitting.

The product is known as “Cushion Massage Pad” which is a newly improved product that will provide the
solution for people out there that are looking for ways to prevent themselves from having back sore and
give them relaxation. This product can save cost, time and energy because of its main specialties which are
thin and portable. This massage pad can provide its massaging service at any time and any place required
by its user. It is hassle-free and a great problem-solver for back pain.

Jalan Sungai Puloh was chosen as the location for our factory because of the easy access to transportation
and near to our suppliers. On the other hand, there are also room for expansion and improvement for
business development at the chosen location. This characteristic is good for our business to maintain its
operation for long term.

The management of the company consists of six lead workers which are Nur Adibah Binti Ab Malek as
Chief Executive Officer, Najihah Binti Mohamed Rafee as Financial Manager, Meor Dzakwan Faiq Bin
Meor Fauzi as Administrative Manager, Muhammad Nur Najmi Bin Mat Hanim as Marketing Manager,
Fizal Saimon Bin Mohd Fauzzi as Operational Manager and Muhammad Arif Najhan bin Mohd Saharudin
as Research and Development (RnD) Manager. Our workers have intensive and useful experience in
multiple sectors such as sales, marketing, administration and finance that may help to improve the company
achievements and keep our company’s system operations running smoothly as expected.

The product that we came up with is a very exceptional product. There is no other product in Malaysia that
can offer this kind of product at a very affordable price like we did. We believe that our product will be an
aid for the society during this period of time, where people are more exposed to different health conditions
and stress. The cushion massage pad is also very practical for everyone to use. The instruction that will be
given is understandable and new users will not have a problem in figuring how the massage pad functions.

1
 2. INTRODUCTION

Company background:

Company’s name is Wealth and Health Cooperation (W&H). This is because we created products
that focus on healthcare and have futuristic and luxurious elements in them.

Owner’s background:

The idea to establish this cooperation was co-founded by the Chief Executive Officer (name) and
(name) as the biggest shareholder.

Product description:

A portable back massager cushion. The cushion is built-in with rechargeable battery that can last for
72 hours after a full charge. The cushion was designed with soft gel nodes that vibrates and moves
around the area of your spine to recreate the in-spa experience. The cushion is portable and easy to
be kept inside the provided back to make sure that the buyer can feel like they have the massaging
chair on the go. This back massager is suitable in this new norm era especially for those that doing
work from home and students that attend online classes for hours every day.

2
Purpose Business plan
Business plans are described as written documents that are prepared by an organization as the first
step before start to progress. Once we start our business this business plan would be our step-by-
step guidelines towards achieving the organization goals. It's important for a new company like us
to have a business plan in order to stay and maintain our business in the market.

This business plan is set up as a guideline for us in managing our company such as in planning,
leading, controlling, setting, budget, financial forecast, target market, strategies and even long-
term goals.

Besides that, the purpose of the business plan prepared by Wealth and Health (W&H) is to
convince Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) for a capital
loan worth of RM 500,000. This amount will divided in administrative plan , marketing plan and
operational plan .The reason we choose Small Medium Enterprise Development Bank Malaysia
Berhad (SME Bank) to get a capital loan because Small Medium Enterprise Development Bank
Malaysia Berhad (SME Bank) is generally function as a development financial institution to meet
the need of Small to Medium Enterprise (SME)

Furthermore, the purpose of this business is to help the government and people to control the
pandemic Covid-19 in an efficient way. We tend to produce the best technology that could help
Malaysia or even the globally to face the new norm of this pandemic.

Moreover, as this business plan is prepared it could help us to improve our weakness to get better
time by time and achieve our mission and goals.

3
Company location in table form

The logo of our company

NAME OF COMPANY Wealth & Health SDN. BHD.

CORRESPONDENCE ADDRESS Jalan Sungai Puloh, 41200 Klang, Selangor

EMAIL Wealth&[email protected]

TELEPHONE NUMBER 0123456789

WEBSITES www.wealth&health.com.my

FORM OF THE BUSINESS Health care

MAIN ACTIVITY Manufacturing

DATE OF COMMENCEMENT 20 October 2020

DATE REGISTRATION 1 December 2020

REGISTRATION NUMBER SB 123-4567-M

NAME OF BANK Maybank

BANK ACCOUNT NUMBER 1234 5678 9101

4
 COMPANY LOCATION

The location of our company is located at Jalan Sungai Puloh, 41200 Klang, Selangor. The reason
why we choose this place as our business location is because it is suitable for our style of operation
because it is near to the highway such as the Federal Highway and the New Klang Valley Expressway
(NKVE). Other than that, the location is like intersection between Klang and Shah Alam so we will
not only have customer limited only around Klang but also customer from Shah Alam and Klang
Valley. It is also very easy to be located since there are many landmarks that can be use as guidance
to find the location such as Jusco, Bukit Raja and Icity. It is also suitable because of its rent price
that is very affordable and reasonable. It is considered as cheap because of the area is actually a high-
end area. The other reason why this location is chosen is because of the accessibility and parking.

5
 Chief Executive Officer (CEO)

Name Nur Adibah Binti Ab Malek

Identification Card Number 001011-01-1122
Permanent Address JB 4500, Jalan Merbah, Kampung
Tersusun, Serkam Darat, 77300,
Merlimau Melaka.
Telephone number +60 1112859518
Date of Birth 11th October 2000
Age 20 years old
Email [email protected]
Academic Qualification Master’s in business administration
management, University Oxford.
Degree in business administration
management, Universiti Teknologi Mara
Skills Fluent in Bahasa Malaysia and English.
Expert in Microsoft Words, Microsoft
PowerPoint and Microsoft Excel.
High in numeracy and technical skills.
Experience Sales manager at Zalora Group
Human Resource manager at Fashion
Valet Group Sdn Bhd
Present Occupation Chief Executive Officer (CEO)

6
 Financial Manager

Name Najihah Binti Mohamed Rafee

Identification Card Number 000319-01-0826
Permanent Address 17, Tembaga Kuning 7,
Taman Sri Skudai,
81300, Johor Bahru
Telephone number +60 11-18887954
Date of Birth 19th March 2000
Age 20 years old
Email [email protected]
Academic Qualification Master’s in forensic accounting &
Financial Criminology,
Universiti Teknologi Mara
Skills Fluent in Bahasa Malaysia and English.
Expert in Microsoft Words, Microsoft
Powerpoint and Microsoft Excel.
High in numeracy and technical skills.
Experience Assistant Financial Manager at Lazada
Group
Manager at F.O.S Group Sdn Bhd
Present Occupation Financial Manager

7
 Administrative Manager

Name Meor Dzakwan Faiq Bin Meor Fauzi

Identification Card Number 981029-43-5093
Permanent Address No 11, Jalan 5A,
Taman Sungai Kapar Indah, Klang,
42200, Selangor
Telephone number +60 142372437
Date of Birth 29th October 1998
Age 22 years old
Email 0195191490
Academic Qualification Diploma in Business Administration,
Universiti Teknologi Mara
Degree in International Business,
Universiti Teknologi Mara
Skills Fluent in Bahasa Malaysia, English,
mandarin
Expert in Microsoft Powerpoint, Microsoft
Word, Microsoft Excel,
Adobe Photoshop
Expert in Keyboarding Speed Skills
Experience Operator at Kuroda Precision Industries
Supervisor at Sugarbomb Perfumes
Present Occupation Administrative manager

8
 Marketing Manager

Name Muhammad Nur Najmi Bin Mat Hanim

Identification Card Number 000623-10-0375

Permanent Address No. 91, Lot 3705, Jalan Nanas,
Kampung Meru Barat,
42200, Kapar,Selangor
Telephone number +60 142372437
Date of Birth 23rd June 2000
Age 20 years old
Email [email protected]
Academic Qualification Master’s in marketing, McCombs
School of Business
Degree in marketing, Universiti
Teknologi Mara
Skills Expert in using Google Analytics
Fluent in English, Chinese and France
Can work in team

Experience Marketing manager at Sugarbomb

Perfumes
Present Occupation Marketing manager

9
 Operational Manager

Name Fizal Saimon Bin Mohd Fauzzi

Identification Card Number 960607-10-6177

Permanent Address No. 12 Jalan Tanjung Shawal,

Sungai Pinang,
41400, Klang, Selangor Dahrul Ehsan
Telephone number +60 173092588

Date of Birth 7th June 1996

Age 24 years old

Email [email protected]

Academic Qualification Degree in Operation Management

Skills Fluent in English

Expert in organizing work schedule

Expert in multitasking

Experience Supervisor in TASCO BERHAD

Sales Manager of CUCKOO (selling water filter
and air purifier)

Present Occupation Operational Manager

10
 Research and Development (RnD) Manager

Name Muhammad Arif Najhan bin Mohd

Saharudin

Identification Card Number 000324-10-1861

Permanent Address Lot 1299, Jalan Masjid,

Sungai Tengi Kanan,

45500, Tanjong Karang, Selangor

Telephone number +60 1120728690
Date of Birth 24th March 2000
Age 20 years old
Email [email protected]
Academic Qualification Master of Business Administration (Product
Development Management), Dimensions
International College, Singapore.

Skills Communication skill

Expert in doing research

Fluent in Bahasa Melayu, English,

Chinese
and Japanese
Experience Assistant Manager of Research and
development Top Glove (2016-2019)

Present Occupation Research and Development (RnD)

Manager

11
PRODUCT DESCRIPTION / SPESIFICATION
W&H Cooperation

PRODUCT NAME Cushion Massage Pad

Design Seat pad that comes with massage devices
Price per unit RM60
Material Cotton fabric, Cotton filling, Silk Thread
Body net weight 2.6 lbs / 1.2 kg
Body dimensions Height: 7.8 Inches; Width: 7.8 Inches
Charging cable USB-C
Device power source AC100V-240V
Power consumption 34W

12
 3. ADMINISTRATION PLAN
Introduction to the organization

1. Vision
Wealth and Health Cooperation is aiming to be an unmatched leader in bringing high quality and low cost of health care
globally.

2. Mission
• We want to provide a world with faster solutions for every health conditions.
• We want to be customer’s first choice of health companion.
• We want to combine both luxurious and good health as one thing that is available for everyone.
3. Objectives
• To determine the target market and understanding the buyer trends in order to create the best features in our
products that match their needs.
• To determine the overall budget and control costs in both production and operations in order to come out
with the best price that can still provide us with profit.

Organizational Chart

Chief Executive Officer (CEO)

Nur Adibah Binti Ab Malek

Administrative
Financial Manager Marketing Manager
Manager
Najihah Binti Muhammad Nur
Meor Dzakwan Faiq
Mohamed Rafee Najmi Bin Mat Hanim
Bin Meor Fauzi

Operational Research and Development

Manager (RnD) Manager

Fizal Saimon Bin Muhammad Arif Najhan bin

Mohd Fauzzi Mohd Saharudin

13
List of administration personnel

Position Number of personnel

Chief Executive Officer (CEO) 1
Financial Manager 1
Administrative Manager 1
Marketing Manager 1
Operational Manager 1
Research and Development (RnD) Manager 1
Total 6

Schedule of task and responsibilities

POSITION TASK AND RESPONSIBILITIES
CHIEF EXCUTIVE OFFICER • To plan and guide the strategic progress of the
business.
• To ensure that all activities of the business are
run with a proper procedure.
• To create a good relationship with
subordinates and ensure each subordinate
carry out their task efficiently.
OPERATIONAL MANAGER • Improves the operational systems, process and
policies in support of organization mission and
increase the effectiveness and efficiency of
support services.
• To ensure the business can produce the
product with estimated time and good quality
that had been plan in the marketing plan.
FINANCIAL MANAGER • Responsible to all activities in the business
that involves finance.
• Provides and interprets financial information
of the business.
• Maintains a balance between in flow and
outflow of cash in order to see that an adequate
supply of cash is available at proper time for
the smooth running of the business.
ADMINISTRATION MANAGER • Responsible to administrative the business
management.

14
 • Responsible with the changes of the
remuneration schedule according to the latest
provident funds.
• Assign responsibilities to administrative staff
and ensure the facilities are equipped with the
supplies and services needed.
MARKETING MANAGER • Improves the function of existing product and
services in order to increase the profitability.
• Identifies target market and in charge of the
organization entire marketing activities as to
influence customer to buy the company
product.
RESEARCH AND DEVELOPMENT (R&D) • Responsible for research, planning, and
MANAGER implementing new programs and protocols
into their company or organization.
• Responsible for overseeing the entire
development process of new products and
programs within an organization, from the
initial planning phase to implementation or
production.

15
 Schedule of Remuneration
W&H Cooperation

Position Number Month Salary (RM) SOCSO (RM) EPF (RM) (12%) Total amount
of (2.5%) (RM)
workers
Chief Executive 1 3000.00 75.00 360.00 3435.00
Officer (CEO)
Finance Manager 1 2800.00 70.00 336.00 3206.00

Research and 1 2800.00 70.00 336.00 3206.00

Development
Manager
Administration 1 2500.00 62.50 300.00 2862.50
Manager

Marketing 1 2500.00 62.50 300.00 2862.50

Manager
Operational 1 2400.00 60.00 288.00 2748.00
Manager

Total amount 18320

16
OFFICE EQUIPMENT AND SUPPLY
IMAGE EQUIPMENT AND PRICE/UNI QUANTIT TOTAL
SUPPLY T (RM) Y AMOUNT
(RM)
Adjustable Swivel Med-
Back Mesh Mix Office
Chair
54.30 6 325.80

TAD EKO 4 Feet Office 110 6 660

Desk with 3 Drawer

Full Set Pc Hp Dc5800 399 4 1596

Desktop Core 2 Duo
2.8Ghz / Ram4Gb / Lcd
19
Square/Keyboard/Mouse /
Window 7 / Free Wifi
Adapter

Full Height Swing Door 370 2 740

Steel Cupboard

17
 PANASONIC R32 S- 3080 1 3080
25PU1H5B CEILING
CASSETTE 2.5HP S-
25PU1H5B-1 / U-
25PN1H5-1 25,000btu

Canon MF217w Laser 925 1 925

Printer Print, Copy, Scan
and Fax with Wifi

PANASONIC KX-
TS500ML SINGLE LINE
65 3 195
PHONE

TOTAL 7521.80

18
OFFICE STATIONERY
EQUIPMENT AND TOTAL
SUPPLY
IMAGE PRICE/UNIT QUANTITY AMOUN
T
(RM)
(RM)

KANGAROO
STAPLER HD-10
2.00 3 6.00

Pen2 0.60 Black - 5 6.00

Blue – 5

File 4.50 6 27.00

19
Scissors 2.00 3 6.00

Liquid paper 3.50 6 21.00

Notebook 1.50 10 15.00

Calculator 13.00 3 39.00

A4 Paper 9.00 3 18.00

20
 Ruler 0.50 6 3.00

Puncher 3.00 3 9.00

Printing Catridge 70.00 2 140.00

Stamp pad 7.00 3 21.00

TOTAL 311.00

21
Administration Budget
Fixed Assets Other Expenses Total
Monthly Expenses
Particulars Expenses
(RM)
(RM) (RM) (RM)
Fixed Assets

Land and Building 1,000,000.00 1,000,000.00

Office Furniture &
7,521.80 7,521.80
Fittings
Working Capital
Remuneration
Salaries + EPF + 18,320.00 18,320.00
SOCSO
Business Registration
1,000.00 1,000.00
and Licenses
Other Expenditure
Office Supplies 311.00 311.00
Total 1,007,521.80 18,320.00 1,311.00 1,054,102.80

22
4. MARKETING PLAN

PRODUCT DESCRIPTION / SPESIFICATION

W&H Cooperation

PRODUCT NAME Cushion Massage Pad

Design Seat pad that comes with massage devices
Price per unit RM60
Material Cotton fabric, Cotton filling, Silk Thread
Body net weight 2.6 lbs / 1.2 kg
Body dimensions Height: 7.8 Inches; Width: 7.8 Inches
Charging cable USB-C
Device power source AC100V-240V
Power consumption 34W

23
3.2 Explanation About the Product/Services Description.

i. Understanding the needs and wants of customers.

It is important for us as the entrepreneur to run a business to understand what the

need is and want of our customers. As we knew, our country getting affected
because of the pandemic. Many problems popped out as citizen has boundaries to
live their life normally. For examples, people who lived at CMCO area need to work
from home and university student who currently attending their class in virtual way.
Their usually need to sit front their laptop for a long period and this will cause
backpain. Hence, our product is very helpful to overcome this problem and very
convenient to use as they need something simple to help them overcome their
problem.
ii. Understand the Marketability of a product or service.

We can try to find many types of way to achieve the best marketing strategies that
suit to our company objectives. For an example, we can promote our product by
using many types of method such as social media platform or online shopping
application, advertisement in a form of pamphlet, brochure, flyers, magazines,
newspaper, or showing up the signboard about our product in front of our building.
iii. Company should describe their product or services accordingly.

Cushion Massage Pad is a genius innovation from our company. We produce

something simple and convenient for people to use. For examples, many people
cannot afford to buy massage chair because it is very expensive. Furthermore,
massage chair will use more space. Hence, our Cushion Massage Pad specially
design for them who suffered severe backpain. We only have two nodes which is
massage device that we put into our selected cushion (Zabuton) from Japan. Two
nodes are enough to relaxing muscle pain based on our research. Our Cushion
Massage Pad also can be fold so our customer can easily bring it anywhere as we
include bag to insert our cushion in the packaging.

24
MARKETING SEGMENTATION

Type of segmentation:

Mass - marketing
Our company focus on the mass – marketing strategies. We ignore the market segment
differences and we focus on the whole market with one offer. Our cushion massage pad had
no specific user. It can be used by many people from all different ages.

W&H COOPERATION
CUSHION MASSAGE PAD

Based of market segmentation

Demographic Age: 7 to 70 years old.

Gender: Male and female.

Income: Recommended for middle to higher

level income because the price is
very affordable for middle level
income.

Religion: It is suitable to every race and

religion in Malaysia.

Occupation: Highly recommended for every

occupation especially that are
working from home.

Education: Any level is recommended

Geographic West and East Malaysia area that are reachable by

post.

Behavioral Usage rate: Our customer will be interested in

our product especially for

25
 those who frequently use our
cushion massage pad to feel
comfortable during their daily
online class and work from home
routine.

Psychographic Comfortable: Our customer demand for a

lifestyle comfortable lifestyle. They
want their daily life routine to
be comfy and healthy to
maintain a healthy body
condition.

26
Market Trend

As the pandemic attack will take a long time, we expect our company to keep operate for a long-times
frame. Besides, we believe our products of Cushion Massage Pad could help people to face the new norms
and will still useful even after the end of pandemic. The market trend for this product is limitless.
Market Size
After doing a lot of research about the potential place, Wealth & Health SDN BHD decided to choose
Kuala Lumpur as market segment. As Kuala Lumpur is national capital of Malaysia, there are many
people that work and live there.
Based on statistic provided by department of Statistic Malaysia there are about 1,770,000 people stay
and live in Kuala Lumpur. We estimate that 40% of people in Kuala Lumpur are the customer of chair
and cushion massage product.

Calculation Market Size in value

Total population in Kuala Lumpur 1,770,000 people

40% (estimate existing product buyer) x
Target Market
1,770,000 people
Market Size = 708,000 people
Product price per unit RM 149.90
Market size in RM 708,000 x 149.90
(Total market size) = RM 106,129,200

Market Share before entering the market

Wealth & Health SDN BHD

Competitor Market Share (%) Total sales (RM)
Ogawa 18 19,103,256
Osim (M) Sdn Bhd 10 10,612,920
SnowFit 8 8,490,336
Others 4 4,245,168
Total 100 106,129,200

27
Market Share after entering the market

Wealth & Health SDN BHD

Competitor Market Share (%) Total sales (RM)
Ogawa 18 19,103,256
Osim (M) Sdn Bhd 10 10,612,920
SnowFit 8 8,490,336
Others 4 4,245,168
Wealth & Health SDN
3 3,183,876
BHD
Total 100 106,129,200

COMPETITION ANALYSIS

Competitor Product Price Place Promotion

Ogawa • Moderate • High • Availability • Mass
quality everywhere promotion
• Strong
branding

Osim • High quality • High • Availability • Mass

• Moderate everywhere promotion
branding

Snowfit • Moderate • High • Availability • Local

quality everywhere promotion
• Moderate
branding
Others • Low • Moderate • Availability • Local
quality everywhere promotion
• Unknown
branding

28
Forecasting Sales

Sales Projection Sales (RM) Events

JANUARY 265,323 Grand opening
FEBRUARY 365,323 Chinese New Year
MAC 465,323 School break
APRIL 165,323 Ramadhan
MAY 465,323 Aidilfitri
JUN 165,323 No event
JULY 265,323 Aidiladha
AUGUST 165,323 No event
SEPTEMBER 165,323 No event
OKTOBER 165,323 No event
NOVEMBER 165,323 No event
DECEMBER 365,323 School break
TOTAL YEAR 1 3,183,876
TOTAL YEAR 2 (INCREASED 15%) 3,661,457 Estimate percent of sales increase
(3,183,876+15%) in year 2
TOTAL YEAR 3 3,979,845 Estimate percent of sales increase
(INCREASED 25%) (3,183,876+25%) in year 3

29
Developing Marketing Strategy

A good marketing strategy consists of 4P’s which are:

• Product Strategy
• Pricing Strategy
• Place Strategy
• Promotion Strategy
1. Product Strategy

• Design
The design of our Cushion Massage Pad meets the needs of the working people and students to embrace these
new norms in the pandemic era. The pad is designed to fit a regular sized of any chair. The “legless sitting”
design was also made to make it even more convenient. The massage pad can be used on both chairs and
floors by our users according to their preference. We focused on reducing the risk of pain or injury of our users.
It is light-weighted to make sure it is easily can be carried around.

• Packaging
Our product comes with its own portable bag which can fit the Cushion Massage Pad perfectly. The bag comes
together with every purchase of the pad to make sure it is convenient for our buyers to bring the pad with
them all the time. Our buyers can just fold our massage pad into tuck it into the bag. With the portable bag,
doing works or studying at cozy cafes is no longer painful.

• Warranty
Warranty is issued by our company for every purchase of our product. We provide a one-year long warranty
from the date of purchasing that allows our buyers to fix or replace their purchased product without any
payment. However, the warranty can only be used if the problems resulting from defective parts or
workmanship.

30
 2. Pricing Strategy

• Based on cost (Fixed cost + Variable cost + Desired margin)

Cost involved to produce 300 unit of Cushion Massage Pad:

Material costs: RM 21000

Labor costs: RM 1800

Overhead: RM 2700

Total costs for 300 units: RM 25500

Total costs for 1 unit: RM 85

Selling Price: Total cost + Mark-up %

RM 85 + 76%

= RM 149.6 ~ RM 149.90

o We are using a pricing strategy based on cost needed which is the total of fixed cost, variable cost
and desired margin. The material costs for producing 300 unit of Cushion Massage Pad is RM 21000.
After being sum up with labor costs and overhead costs, the amount used is RM 25500 in producing
300 units of Cushion Massage Pad. For 1-unit production, the total cost is RM 85. We set the mark-
up percentage to 76% and therefore, the most relevant selling price for our product is RM 149.90.

• Based on competition

Company Price (RM)

Ogawa 250

Osim 220

Snowfit 180

o We are aiming to have the lowest price among our competitors. This is because, our target market
are mostly students and working people from all background. Our objective is to bring comfort and
ease in their daily life during pandemic without burden them with a high price. We believe that by
having the cheapest price in the sector will gain us more buyers and profit.

31
Distribution Strategy

Our company use direct channel to market our product. We already consider many aspects
to select this kind of strategy such as type of product, target market, market coverage,
transportation ease and product standardization. Direct channel including, kiosk and online
retailing. For examples, shop lot at nearest mall, Shopee, Instagram, Facebook.
Direct Channel Location Country/State

Kiosk Parkson Pavilion Selangor

Parkson IOI Mall Puchong
Parkson Sunway Piramid

Online channel Shopee East Malaysia

Instagram West Malaysia
Facebook

Promotion Strategy (Advertising)

1. Brochures

Our company choose brochures to promote our product as it is very affordable and can put
many information about our product. Brochures is the strong medium for advertising.
Furthermore, brochures will decrease our marketing cost and easy to produce in a short
period. We will distribute our brochures 1 month earlier for customer to make preorder.
The lowest price that we managed to get is RM 110.00 for 500 pcs 1 side A5 sized.

32
2. Business card

Our company also choose business card to promote our product. Both methods easy to
distribute and display. Business card also leave a lasting professional impression. For
example, nothing implies professionalism like business card accompanying a handshake
after client meeting, networking event or completed job. It also pockets sized and easy to
carry at all times anywhere. Our company also planned to order business card in a bulk for
a relatively low cost. Our company already ask for quotation from several seller. The lowest
price that we can get is RM78.00 for 600 pcs.

Promotion using social media

We created Instagram and Facebook to market our product. Based on our research, Instagram
and Facebook algorithm is almost the same and this will make us easier to manage our post
and ads at the same time. Other than that, these two social media known as the fastest medium
to promote our product. We also have Shoppe and Lazada account to boost our sale. To join
Instagram and Facebook ads our company have to pay RM 3000 per month as Instagram ads
is RM1500 same goes to Facebook.

Sales promotion

Publicity is the public visibility or awareness for any product, service or company. This method
can help our company to maintain good relationship with customer and understand their
demand better.

33
Promotion cost
Promotion activities Details Cost (RM)
Advertising • Brochure 110.00
• Business Card 78.00
• Instagram and Facebook 3000.00
ads
Sales promotion • Cost incurred to approach 1000.00
customer
Total 4188.00

34
Planning for marketing personnel.

List the number of marketing personnel required

Position No. of personnel
Marketing Executive 1
Sales personnel 1
Promotion personnel 1
Total 3

Job description and job specification

Position Job Specification Job Description
Marketing Executive • Develop pricing • Degree holder in
strategies, customer marketing
satisfaction and • Minimum 3 years
balancing firm’s working experiences
objective • Good command in
• Formulate and Malay and English
coordinating marketing • Ability to develop
activities to consume marketing plan and
• Oversees current strategies.
implement and initiate
for new product or
services
Sales Personnel • Assist in promotional • Minimum Diploma
strategies and product • 1-2 years working
development experiences in sales
• Greet customer and lines
assist customer with • Ability to work
their purchases independently
• Good personalities
Marketing Personnel • Plan, prepare and • Minimum Diploma
manage the publication • 1-2 years working
and distribution of experiences in
publicity materials marketing lines
• Develop and • Ability to work with
communicate through various kind of people
the organization’s and large-scale
CRM (Customer community
Relationship • Good personalities
Management) system
• Represent the company
at events

35
Schedule of remuneration of marketing personnel
POSITION NO MONTHLY EPF 12% SOCSO 2.5% TOTAL
SALARY (RM) (RM)
(RM)
Marketing 1 2500 300 62.50 2862.50
Executives
Sales Personnel 1 1500 180 - 1680
Marketing 1 1500 180 - 1680
Personnel
Total 3 5500 660 62.50 6222.50

36
MARKETING BUDGET

ITEM FIXED WORKING OTHER EXPENSES

ASSET CAPITAL (RM)
(RM) (RM)

Working capital:
Advertising
- Brochure 110
- Business card 78
- Instagram and 3000
Facebook ads
- Sales promotion 1000

Salary (Remuneration
18,320
Salaries + EPF + SOCSO)

Other Expenses:
Grand Opening
5000

- 22508 5000

37
5.OPERATIONAL PLAN
Process Planning
Flow chart production of cushion massage pad

First, cotton is evenly spread on a linen fabric sheet in required amount. Nodes are
being put evenly in between the cotton focusing on the waist and spine area

Then, a DC motor is installed. That will allow the nodes to travel

upward and downward delivering a deep tissue kneading massage.

In order to give electric supply to the DC motor, a USB connector

shell is being attached at the bottom of the pad.

Next, the linen fabric is sewn around the cotton and nodes making the
shape of a solid pad.

After that, yards nylon webbing tapes are sewn around the edges of the pad. It will
also be sewn on the base area in order to ensure the pad is able to stand stably.

Then, the pad will be divided into two partitions by sewing yards
nylon webbing as divider to ensure that the pad is foldable.

Zipper nylon coil will also be sewn around the edges of the pad to
make it able to turn into a bag-shaped when not in used.

Yards nylon webbing tape will be attached as handlers on the top and
bottom of the pad.

When a complete massage pad has been produced, it will be tested

first to ensure all functions are working fine.

Lastly, the final product will be put into the packaging before we
distribute them to the buyers.

38
Operation Layout

PACKAGING SEWING
MACHINES MACHINES

ASSEMBLY
MACHINES

39
Production Planning
Wealth & Health SDN BHD Sales Forecast

7,956,000/12
Average sales forecast per month
= RM 663,000

Price per unit RM 90.90

663,000/90.90
Number of outputs per month
= 7294 units

Number of operation days per month 26 days

7294/26
Number of outputs per day
= 281 units per day

7294 + 10%
Estimate % Safety stock per month
= 8023 units per month

Actual number of outputs per day + safety 8023/26

stock = 309 units per day

40
Material Planning
1) Material use to produce Cushion Massage Pads
Product No Raw Materials

101 Cotton
102 Velvet Fabric

103 Shiatsu roller massager

104 Motor DC

105 Yards Nylon Webbing Tape

106 Zipper Nylon Coil
107 Label and packaging
108 USB connector shell

2) The Bills of Materials for a unit of product

(Wealth and Health Cooperation)
Product No Raw Materials Total Quantity Price Per Kg, Price (RM)
required Meter, Pcs, Cm/
unit (RM)
101 Cotton 2.0 kg/unit 18 18

102 Linen Fabric 1.0 meter/unit 10 10

103 Shiatsu roller 2 pcs/unit 5 10

massager
104 Motor DC 1 pcs/unit 10 10

105 Yards Nylon 1.0 meter/unit 2 4

Webbing Tape

106 Zipper Nylon Coil 1 pcs/unit 3 3

107 Label and 1 pcs/unit 4 4

packaging

108 USB connector 1 pcs/ unit 11 11

shell

41
 TOTAL 70

3. The Bills of Material for a month

(Wealth and Health Cooperation)
Product No Raw Materials Total Quantity Safety Stock Price Per Kg, Price (RM)
required /month (10%) Meter, Pcs,
Cm/ unit (RM)
101 Cotton 1 kg/unit x 309 = 31 kg 18 6120
309kg
102 Linen Fabric 1.0meter/unit x 31 meters 10 3400
309 = 309.0 meter
103 Shiatsu roller 2 pcs/unit x 309 = 31 pcs 5 1700
massager 618 pcs
104 Motor DC 1 pcs/unit x 309 = 31 pcs 10 3400
309 pcs
105 Yards Nylon 1.0 meter/unit 309 31 meters 2 680
Webbing Tape = 309 meter

106 Zipper Nylon 1 pcs/unit x 309 = 31 pcs 3 1020

Coil 309 pcs

107 Label and 1 pcs/unit x 309 = 31 pcs 4 1360

packaging 309 pcs

108 USB connector 1 pcs/unit x 309 = 31 pcs 11 3740

shell 309 pcs

TOTAL 21420

42
4) Suppliers of raw material

Product No Raw Materials Supplier

101 Cotton Nanmu Yarns & Threads
Manufacturing Sdn. Bhd.
1st Mile, Jalan Banting, Tepi
Sungai Aur, Pandamaran N/V,
Port Klang, 42000, Pelabuhan
Klang, Selangor, 42000
03-3167 5162
102 Linen Fabric Fabric Fanatics
F1, Summit USJ Mall, 31, Jalan
Kewajipan, Usj 1, 47600 Subang
Jaya, Selangor
012-622 2074
103 Shiatsu roller massager Xiamen Comfier Technology
Co., Ltd.
5/F, No. 3-5 Building, Siming
Industrial Park, Meixi Road,
Tong'an

http://www.comfier.cn
104 Motor DC Oriental Motor (Malaysia) Sdn
Bhd
A-13-1, North Point Offices, 1,
Medan Syed Putra Utara, Mid
Valley City, 59200 Kuala
Lumpur
+60322875778
105 Yards Nylon Webbing Tape Fabric Fanatics
F1, Summit USJ Mall, 31, Jalan
Kewajipan, Usj 1, 47600 Subang
Jaya, Selangor
012-622 2074
106 Zipper Nylon Coil New Plastics Industries Sdn.
Bhd.
Lot 58, Batu Kajang, Malaysia,
11, Jalan Cheras, 43000 Kajang,
Selangor
+60387365882
107 Label and packaging Autumn Home Forever Sdn.
Bhd. (Packaging Company
Malaysia)
MY Kuala Lumpur Jalan
Ampang T3-16-02, Level 16
Menara 3 (3 Towers ), 349,
Kampung Berembang, 50450
+601111976141
108 USB connector shell Oriental Motor (Malaysia) Sdn
Bhd

43
 A-13-1, North Point Offices, 1,
Medan Syed Putra Utara, Mid
Valley City, 59200 Kuala
Lumpur
+60322875778

MACHINE AND EQUIPMENT PLANNING

Number of machine and equipment required for Cushion Massage Pad

Planned Rate of Production per day

×Standard Production Time /unit
Machine Productive Time per day
No. of
machine
required

10 units
×4 hours
9 hours

4.44 @ 4 machines

Above calculation is an example of machine required (Sewing Machine, Assembly Machine and Packaging
Machine) for Cushion Massage Pad.
Nevertheless, the business decided to only use two high class industrial sewing, assembly and packaging machine
which can produce about 2 units of our products at one time.
Therefore, the number of 4 machine required is not applicable for the business operation of producing products for
the company

44
Machine and equipment required to produce Cushion Massage Pad

Item Price per unit Quantity Total Cost Supplier

(RM)

Industrial Sewing 5,000 2 10,000 Konwa Industrial

Machine Sewing Machine
(M) Sdn Bhd

Industrial 4,000 2 8,000 Winston Electric

Assembly
Machine

Industrial 5,000 2 10,000 Labelling to Pack

Packaging Enterprise
Machine

Shelving 2,000 1 2,000 IKEA

Used Van 20,000 1 20,000 TG Enterprise

Sdn Bhd

Total 50,000

45
Manpower Planning.
Identify number of workers required
No of workers required = 30 units / 9 hours working X 2 hours finished product
= 7 workers required

List operational personnel under operation department

Type of Business Type of workers

Manufacturing factory Production operator, Technician, Supervisor and Head operation

manager.

Position Number of Personnel

Production Operator 3

Technician 2

Supervisor 1

Head Operation Manager 1

Total 7

Job description and Job specification

Position Job description Job specification

Production Operator • Carry out and maintaining the • Minimum Sijil

factory machinery Pelajaran Malaysia

• Ensuring the smooth and efficient • Able to work

running of machines independently and
work under pressure
• Occasionally removing and packing
finished product • Good personalities

46
 • Gaining a thorough knowledge of a
wide range of factory machinery
and how it works.

Technician • Plan and schedule repairs. • Minimum Diploma in

Engineering
• Repair faulty equipment units and Manufacturing or
damaged structures. relevant field if
preferred
• Maintain the inventory records for
equipment and supplies. • Minimum 1 years
working experiences
• Develop and implement
preventative maintenance • Able to work
procedures. independently and
work under pressure
• Help develop and implement the
budget for the maintenance • Must be well-
department. organized and can
prioritize tasks.

• Good personalities

Supervisor • Accomplishes department • Minimum Diploma in

objectives by supervising staff and Engineering
organizing and monitoring work Manufacturing or
processes relevant field if
preferred
• Conduct periodic quality checks on
equipment and systems to ensure • Minimum 2 years
everything is up to standard. working experiences

• Maintains safe and healthy work • Able to work

environment by establishing and independently and
enforcing organization standards work under pressure
and adhering to legal regulations.
• Ability to
• Provides quality service by control/command
enforcing quality and customer and manage staff
service standards.
• Good personalities

Head Operational • Works with the managers and • Degree holder in

Manager technicians to ensure that facilities, marketing
transportation, technology
resources, and center operations are

47
 effectively and efficiently managed • Minimum 3 years
and meet the Performance working experiences
Standards, all regulations and
policies and procedures. • Good command in
Malay and English
• Responsible for contract
development and management. • Ability to
control/command
• Establish and maintain professional and manage staff
working relationships with vendors,
agency funders, tenants, and the • Able to work under
business community. pressure

Schedule of remuneration of operational personnel.

Position No of Salary EPF 12% SOCSO 2.5% Total

worker (RM) (RM)

Head Operation 1 2400 288 60 2748

manager

Supervisor 1 1700 204 - 1904

Technician 2 1500 180 - 1680

Operator 3 1300 156 - 1456

Total 7 6900 828 60 7788

48
OVERHEAD REQUIREMENT

These are the indirect labour costs, indirect material, insurance, maintenance and utilities.

No. Types of overhead Monthly cost (RM)

1 Electricity 1500

2 Machine Maintenance 700

3 Telephone 100

4 Water 200

5 Internet 350

6 Indirect labour (packers) 3000

7 Indirect material (tools, cleaning 100

supplies, lubricating oil)

Total 5950

49
LOCATION PLAN

The location of our business is at Jalan Sungai Puloh, Selangor. The choice of location we choose is very important
because it will affect our sales revenue, business operation cost and also it is important for our long-term investment.
The reason why we choose this location as our choice of location is because of the distance from raw material and
suppliers is very near. It makes us easy to restock our raw material. Next, we choose this location as our business
location because it is an easy access for transportation. The price of the land and building are also very reasonable
and affordable giving us more reason to choose that location. There are also room for expansion and business
development at the location. The location is a high-end area which is very suitable to do business there since there’s
a lot of affordable people there. This is for the long-term investment of the business.

50
OPERATION AND BUSINESS HOUR
OPERATION HOUR

DAY OPERATION TIME TOTAL HOUR

Monday 8.00 AM – 1.00 PM 9 HOURS

2.00 PM - 6.00 PM

Tuesday 8.00 AM – 1.00 PM 9 HOURS

2.00 PM - 6.00 PM

Wednesday 8.00 AM – 1.00 PM 9 HOURS

2.00 PM - 6.00 PM

Thursday 8.00 AM – 1.00 PM 9 HOURS

2.00 PM - 6.00 PM

Friday 8.00 AM – 12.00 PM 8 HOURS

2.00 PM – 6.00 PM

Saturday CLOSED -

51
 Sunday CLOSED -

Our operation hours will be from 8 a.m. to 6 p.m. There will be one-hour break from 1 p.m. to 2 p.m. However, the
operations hours for Friday will be different because they will have 2 hours of break to give chance for the Muslims
to perform their Friday prayer. The total of operation hours for a week is 44 hours.

BUSINESS HOUR
DAY BUSINESS TIME TOTAL HOUR

Monday 9.00 AM – 6.00 PM 9 HOURS

Tuesday 9.00 AM – 6.00 PM 9 HOURS

Wednesday 9.00 AM – 6.00 PM 9 HOURS

Thursday 9.00 AM – 6.00 PM 9 HOURS

Friday 9.00 AM – 6.00 PM 9 HOURS

52
 Saturday 9.00 AM – 5.00 PM 8 HOURS

Sunday CLOSED -

Our store may open to the customer from 9 a.m. to 6 p.m. which is 6 days a week. Our store will be closed on
Sunday. However, the schedule on Saturday will be slightly different from the other day since it will be closing
early at 5.00 p.m.

53
LICENSE, PERMITS AND REGULATIONS REQUIRED
In order to operate the business, there are few requirements to be fulfilled such as:

1. Company Registration. Need to be approved by Suruhanjaya Syarikat Malaysia (SSM).

2. Tax Registration. Need to be approved by Lembaga Hasil Dalam Negeri (LHDN).

3. Employees Provident Fund (EPF). Need to be registered at Kumpulan Wang Simpanan Pekerja (KWSP)
either by at the centre itself or from their online website.

4. Social Security Organization (SOCSO). Need to be registered at Pertubuhan Keselamatan Sosial

(PERKESO) either by at the centre itself or from their online website.

5. Business Premises License and Signage License. These licenses need to be applied from Majlis Bandaraya
Shah Alam

6. PSV Licenses Class D (Van/ Minibus) for the van driver. These licenses need to be obtained by passing JPJ
Test at any driving test centre.

7. SIRIM Licenses. Need to be obtained by passing SIRIM test to ensure the product is safe to be used by
customers. The estimated required cost for all these registrations is up to RM 3,000

54
Operation Budget

Wealth & Health SDN BHD Operation Budget

Fixed Assets Monthly Expenses Others Total
Particulars
(RM) (RM) (RM) (RM)

Fixed Assets

Machinery and
30,000 30,000
Equipment

Used Van 20,000 20,000

Working Capital

Raw Materials and

11,919 11,919
Packaging

Salaries, EPF and SOCSO 7,788 7,788

Carriage Inward and Duty 126.50 126.50

Pre-Operation and Other

Expenditure

Deposit (Bill, Indirect

Labour, Indirect material 5,950 5,950
etc)

Business Registration and

3,000 3,000
License

TOTAL 78,783.50

55
6. FINANCIAL PLAN

FINANCIAL INPUT (ADMINISTRATION, MARKETING AND OPERATION)

56
PROJECT IMPLEMENTATION COST AND SOURCE OF FINANCING

57
58
59
CASH FLOW AND PRO FORMA STATEMENT

60
61
62
63
64
7. APPENDICES

65
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