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FACULTY OF ACCOUNTANCY AND MANAGEMENT
UKTE2013 ENTREPRENEURSHIP
GROUP ASSIGNMENT COVER SHEET
IMPORTANT: This form MUST BE attached as cover page to the hardcopy of group assignment before submitting to the tutor
COURSE DETAILS
TUTORIAL GROUP : Tutorial 1
TUTOR NAME : Ms. Yeong Wai Mun
ASSIGNMENT DETAILS
COMPANY NAME : Pepper Guard
DUE DATE : WEEK 4, 6 November 2017 (Monday, before 12.00noon)
STUDENTS DETAILS
TEAM MEMBERS
- Student Name : Tew Jing Wen Student ID : 1605868
- Student Name : Yeoh Qing Ching Student ID : 1504703
- Student Name : Tee Shin Teng Student ID : 1402619
- Student Name : Lee Yi Wen Student ID : 1501362
- Student Name : Lim Soo Men Student ID : 1503958
- Student Name : Lee Chi Ying Student ID : 1502944
FACULTY OF ACCOUNTANCY AND MANAGEMENT
UKTE2013 ENTREPRENEURSHIP
MARKS ALLLOCATION FOR GROUP ASSIGNMENT
IMPORTANT: This form MUST BE attached as second page after the cover page to the hardcopy of group assignment before submitting to the tutor
Tutorial Group Tutorial 1 Tutor Name Ms. Yeong Wai Mun Date WEEK 4, 6 November 2017 Group Members Name & ID
**1. Tew Jing Wen 1605868
- Yeoh Qing Ching 1504703
- Tee Shin Teng 1402619
- Lee Yi Wen 1501362
- Lim Soo Men 1503958
- Lee Chi Ying 1502944**
Assessment Marks Allocation Marks Given 1 Executive Summary 5 marks
2 Introduction Brief introduction about the company
10 marks
3 Content
- Industry Analysis (15 marks)
- Market Analysis (10 marks)
- Marketing Plan (15 marks)
- Management Team and Company Structure (10 marks)
- Operations Plan (10 marks)
- Financial Projections (10 marks)
70 marks
4 Future Growth Plan and/or Contingency Plan
10 marks
customers, so that, in the face of danger, you and your loved ones are equipped with not only powerful products, but knowledge as well. We believe everyone should be protected so they can live a safe, healthy life with peace of mind.
Pepper Guard is a diversified manufacturer and provider of personal defence and security products to consumers for protecting themselves. The Pepper Guard products includes personal defence products, personal & home protection products, and electronic security & surveillance Products. Besides, Pepper Guard is the original trusted brand of pepper spray products for self-defence against attacks by people and animals. It has many years’ experiences of developing aerosol defence spray dispensing technologies in the consumer and law enforcement markets. Pepper Guard also has an entire line of high quality security cameras, digital video recorders, observation monitors and wireless alarm security systems.
Our new product for this business plan is Smart Pepper Spray. It is a self-defence tool that combines a camera and using Bluetooth to connect your smartphone with a bottle of pepper spray. The purpose of this product is bridging the gap between technology and security by developing the most advanced products for consumer safety. Its integrated camera with flash connects wirelessly to the iPhone and Android app, sending the photo of your attacker to the proper authorities while the small, but mighty siren attracts attention to your situation. Besides, it notifies local authorities with the photo of the attacker and your GPS location to dispatch help wherever you are in Malaysia. It also includes the highest concentration of pepper spray available to law enforcement. By using this spray, you are able to take a photo, alert the authorities, and bring an attacker to the ground with one push of a button. It is re-usable, not disposable, and can be charged at home, just like a smartphone, and will replace a used pepper spray canister with a refilled one. This is the first pepper spray with an automated camera
in Malaysia, thus Smart Pepper Spray has high potential to have high market value and attract a lot of customers especially women.
Pe pp er Gu ard ’s cur re nt sta tus is pro vid ing pe rsonal defence products and have about 65 employees in the company. Our company’s services include offering free tips and videos that can find throughout Pepper Guard website. Besides, our company is an active status company that is operating and is regular in filling the Balance sheets, Profit & Loss Statements, and other statutory documents. Pepper Guard is a legal company that have registered under Suruhanjaya Syarikat Malaysia (SSM). Our company also is a limited company which is a legal entity separate from its owners. Other than that, the company’s ownership can be changed or extra capital raised through the selling of shares, without necessarily affecting the company’s management (Goodfellow, 2015).
Market Analysis
Market segmentation and target market selection
There are 3,000 rape cases reported every year on average in Malaysia with only two out of 10 cases going to court. This implies that there is one female being raped every 35 minutes in Malaysia. (Tan, 2015) Therefore, self-defence for women is a necessity and not really an option. In addition, a pepper spray purchase is an investment in your personal safety and overall wellness. Thus, the target markets for our company’s new product, Smart Pepper Spray, are women of all ages and ethnicities.
Based on the demographic segmentation, we concentrated on women who are aged between 16 – 60 years old or more. This including teenagers, adults, senior citizens and person with disabilities, and our product is for all ethnicities in Malaysia such as Malay, Chinese and Indian. For teenagers, we concentrated on the students
This table shows the competitor analysis between Pepper Guard, Stoper and SafePRO
Based on the competitor analysis, Pepper Guard’s Smart Pepper Spray has a high-tech design like camera, siren speaker and Bluetooth to connect a smartphone. It also enables photo capture and GPS location to users. Besides, excellent packaging is provided which including Primary Package, Secondary Package and Transportation Packaging. This spray costs RM 120 but would giving discounts for first time purchase. By offering a high quality product at reasonable prices, our company has a distinct advantage. During the promotion part, our company promotes Smart Pepper Spray through several methods. Firstly, we promote through sales promotion like discount, free gifts and free sampling. Next, we promote the spray by advertising through radio and online advertisements. The last method is digital marketing such as email to attract customers. Other than that, our company is using direct distribution channel for our products. For example, we sell directly to the consumer in own retail stores and direct distribution via Internet in own website.
There are two primary competitors of pepper spray market in Malaysia which are Stoper and SafePRO. Based on the competitor analysis, Stoper has been actively using green technology to reduce the environmental footprint. Their products are made from environmentally friendly ingredients and over 20 million bottles of pepper sprays are produced and exported globally. Stoper Pepper Spray Max Strength has 2.4m spray range and fires up to 5x longer than other brands. It also is a streamline deploy type which is best used for outdoor as effective against wind. (Stoper Industries Holdings Sdn Bhd, 2017) It costs RM78 and always discounted when online purchase. Besides, Stoper using sales promotion and online advertising to promote their products. In addition, Stoper sold their product by e-tailer (Lazada), a network of dealers, and at the retails outlet.
Apart from that, SafePRO is using low price strategy to attract customers in Malaysia. Their pepper sprays are key chain size, fire distance 1 meter, and easy to carry, but no warranty. It only costs RM 39.80 which is cheaper than other popular brands and further discounts when online purchase. Besides, they only using sales promotion to promote their products such as using promo code. Their products are available on the e-tailer (Lazada) and at the retails outlet like supermarket, hardware shop and concept stores. (Lazada, 2017)
Marketing Plan
A brand is the identification of a product. It can be in the form of a name, symbol, or design etc. The branding is not only done to identify the seller or producer but also to make our product superior than competitor’s product. It is a seller’s promise to deliver quality and satisfaction of buyer’s expectations. (Samiksha, 2017)With brand we can easily identify which all products belong to a particular company. The part of brand which can be spoken is called brand name. Our company pepper spray product’s brand name is Pepper Guard. Advantages of brand name are with branding marketer can differentiate his products from the competitor’s product and the brand name advertising become more effective as it not only makes people aware about the features of product but also about brand which can benefits.
Packaging is the basic activity of every company. There are three levels of Packaging which are Primary Package, Secondary Package and Transportation Packaging. (Samiksha, 2017) Primary Package refers the immediate packing of product. It remains with product till it is used for example a glass bottle. Secondary Package is additional packing which give more protection. Generally consumers throw that when they start using the product for example, a plastic cover used to keep pepper spray. Transportation Packaging is packaging’s used for storing or transporting the goods. This packing gives protection to goods, for example, a big boxes used to shift Pepper Guard. In conclusion, packaging is important until it reaches on user’s hands. User will be satisfied when they received the products that still in a good condition.
Functions of Packaging is protection which refers the fundamental function of packaging is that it protects the product from damage. Appropriate packaging protects the product from sun, rains, moisture, and breakage. For example, glass bottle which protects the pepper spray from atmospheric contacts. With the help of packaging the product can be easily identified, for example, with the white and black packing so that customer cam recognise from far off that it is a Pepper Guard product. The handling of the product becomes more convenient with appropriate packing. It makes it convenient to store and convenient to shift from one place to other. A small glass bottles is very convenient for middle men to transport it, supply it and store it. Labels are attached on the product to provide some information to customer. For example, the weight and ingredients of the pepper spray.
Our company is using Penetration strategies which aims to attract buyers by offering lower prices on goods and services in order to gain market shares. Once this
a barrage of automated email newsletters that do little else besides giving us another task to do on our commutes to work. We will marking them all as unread without reading or delete it immediately. Thus, we designed our marketing emails be personalized, filled with interesting graphics for desktop and mobile devices. Title of the email determine the importance of the email content. An eye catching title will be using to attract user to read the email in order to know our products, thus, they will buy the product. In conclusion, a good title is important for email in order for user to read the contents.
Our company is using direct distribution channel. A direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries. A direct chain of distribution may involve face-to-face sales, computer sales or mail order but does not involve any form of distributor other than the original producer. (S.Tailor, 2000)Our company that produces our own products and sells them directly to the consumer in own retail stores is using a direct chain of distribution. Using a direct channel of distribution to connect consumers with our product, especially a Web-based channel, can have several benefits. Most importantly, web-based selling has low overhead and gives our product a potentially global reach. Because no intermediaries share the profits, most direct distribution channels tend to have higher rates of profit than indirect distribution channels. Direct distribution via the Internet is convenient for customers and available 24 hours a day. However, there are disadvantage in direct distribution channel is that a direct distribution channel cannot compete with the geographical reach and business volume of a distribution channel that includes major wholesalers and retailers. We cannot sell as much product over oour company website as we can if we sell through only on outlets and website. In conclusion, our company will know the sales of the product daily and make the changes on the prices due to there are many customers are using the products.
Sales tactics are techniques that are used to achieve sales goals. They differ from sales strategy in that they are focused on immediate goals whereas a strategy is a plan for the future. (Spacey, 2015) First, our company make sure we have allocated enough resources such as people and money to accomplish our company's goals for the year. Sufficient resources will affect the size of our marketing budget and how quickly we want to see the sales outcomes. Next, our company review and update ideal customer profile. We always look back at our best customers and identify the characteristics that make them buy our products and satisfied with it. Third, review
our Website and Online Marketing. To see whether our branding and messaging consistent with the exiting product on the website. Moreover, are we still engaging with the right target audience with the exiting product. Lastly, we will make sure that we are clear on what makes our product different from the competitors. For example, talk to some of our customers and find out why they chose to buy from us rather than others and what make them appreciate our product. In conclusion, we believe in our sales tactics that can help in company’s goals and growth.
Yeoh Qing Ching, Chief Marketing Officer (CMO) Qing Ching was skilled in Management, Sales, Strategic Planning, Business Development, and Marketing Strategy. Strong business development professional graduated from University of Beijing. She worked as a marketing planner with Cartridge Top, printing business in United States.
Lee Chi Ying , Research and Development Director Chi Ying was experienced in modern manufacturing. After obtaining a Bachelor of Mechanical Engineering from Donghua University. She worked in product development for Space Inc., creating pinhole lenses and cameras. She also has extensive customer service and sales experience, having worked for four years as the online manager of Thingyfy, a retailer of high-end pinhole cameras.
Company Structure
Operations Plan
1. Business Location
Pepper Guard Sdn Bhd had chosen to establish our industry near the industrial area in Seksyen 7, Shah Alam, Selangor. The main reason why we chose to locate the industry in Seksyen 7, Shah Alam is due to Shah Alam is a well-planned modern city. Shah Alam is also known as an industrial city with modern infrastructure and strategic location, being only 25 km away from Port Klang and Subang Airport, the former international airport before the opening of the Kuala Lumpur International Airport (KLIA) in Sepang. These factors make Shah Alam the choice for thousands of multi- national factories that operate to produce goods for the international market. Besides, the second reason that we select this particular location is because the land size of Shah Alam is wider and bigger than any normal industrial areas.
Moreover, due to the target market of Smart Pepper Spray is focusing on women and ladies, we decided to rent few shop lots that located at Klang Valley. Klang Valley is considered as one of the cities in Malaysia that were listed as Asia’s most dangerous cities. Klang Valley has a large number of criminal gangs.
2. Facility and Equipment
The facilities and equipments in the production industry is one of the essential components in order to produce a high quality product. The most vital facility and equipment that are needed by Pepper Guard Sdn Bhd is machinery. There are approximately 10 machineries that being used in Pepper Guard Sdn Bhd to produce the Smart Pepper Spray.
There are two types of machines that are required by Pepper Guard Sdn Bhd to produce a self- defense pepper spray, which is the Smart Pepper Spray. The first type of machine is spraying bottle making machine. This spraying bottle making machine is to produce the spraying bottle which is stainless steel, light- weighted and portable. The spraying bottle of self- defense pepper spray holds a large capacity. This spraying bottle holds 50 bursts of pepper spray. Whereas the second type of machine is capsaicin production machine. Capsaicin is the active ingredient in self-defense pepper spray. Capsaicin is a chemical derived from the fruit of plants in the capsicum genus, including chilies. Extraction of oleoresin capsicum (OC) from peppers requires capsicum to be finely ground, from which capsaicin is then extracted using an organic
Figure 1.
Figure 1.
Financial Projection As a start-up company, we have tried some methods to obtain funds for our business. One of them is Graduate Entrepreneur Fund. Graduate Entrepreneur Fund is open for start-up business. The objective of Graduate Entrepreneur Fund is to help the young entrepreneurs to start their business and also for those already own their business. The financing limit is from RM20000 to RM25000 or up to 100% of the project cost.
Besides that, we also applied Young Entrepreneur fund. It is handled by SME bank, used as venture capital funds and working capital of the company. It is quite similar to the Graduate Entrepreneur Fund, but the criteria of application are slightly lower. The financing limit of Young Entrepreneurs Fund is only up to RM100, 000 in maximum. The interest of this fund is 5 percent.
Malaysian Technology Development Corporation (MTDC) is one of our important funder. It provides Business Start-Up Fund (BSF) to encourage and facilitate the growth of technology entrepreneurs and new start-up companies. Flexible funding via Convertible Notes or Preference Shares at a maximum of RM5. million or 90% of the recognised project cost or whichever is lower.
RM
RM RM
- Plant 2,500, Start-up Assets RM RM
- Office equipment 500,
- Cash in hand 400,
- Insurance 20,
- Total Start-up Assets 3,420,
- Advertising fees 10, Start-up Expenses
- Salary 250,
- Rental 50,
- Research Expenses 1,500,
- Miscellaneous 10,
- Utility 10,
- Total Start-up Expenses 1,830, - 5,250,
- Partner 1- Mr Alex investment 500, Financing
- Partner 2 - Ms Amy investment 500,
- Partner 3 - Mr Lim investment 300,
- Graduate Entrepreneur Fund 50,
- Young Entrepreneur Fund (YEF) 100,
- Business Start-up Fund (BSF) 3,800,
- Total Financing 5,250,
- Statement of Cash Flow for the year ended December
- Net Income -1,450, Cash Flows-Operating Activities
- Depreciation 650,
- Net Income Adjustment 350,
- Account Receivable -320, Changes in Operating Activities
- Changes in Inventories -199,
- Other Operating Activities -210,
- Liabilities 520,
- Net Cash Flow-Operating -659,
- Capital Expenditures -125, Cash Flows-Investing Activities
- Investments -2,822,
- Other Investing Activities -140,
- Net Cash Flows-Investing -3,087,
- Sales and Purchase of Stock 2,950, Cash Flows-Financing Activities
- Net Borrowings 5,000,
- Other Financing Activities 5,950,
- Net Cash Flow-Financing 13,900,
- Net Cash Flow 10,154,
- Statement of Financial Position as at 31 December
- Property, Plant and Equipment 3,210, Long-Term Assets
- Long-Term Investments 560,
- Goodwill
- Intangible Assets 1,400,
- Other Assets 270,
- Cash and Cash Equivalents 1,500, Current Assets
- Short-Term Investments 2,546,
- Trade Receivables 745,
- Inventory 1,900,
- Other Current Assets 790,000 7,481,
- Total Assets 12,921,
- Accounts Payable 1,600, Current Liabilities
- Other Current Liabilities 2,341,
- Total Current Liabilities 3,941,
- Long-Term Debt 4,200, Long-Term Liabilities
- Other Liabilities 2,235,
- Deferred Liability Charges
- Total Liabilities 10,376,
- Common Stocks 1,018, Stock Holders Equity
- Retained Earnings
- Other Equity 1,527,
- Total Equity 2,545,
- Total Liabilities & Equity 12,921,
