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0 Product details

Our company specializes in producing halal instant frozen food such as frozen Roti Canai, frozen
curry puff, frozen murtabak, frozen chapatti, frozen satay, frozen spring roll, frozen Pisang
Goreng, frozen Keropok Lekor and frozen fish ball. We have an advantage in these products
that are very popular in the market right now because the types of food that we are providing
are the usual favorite foods in Malaysia and can be accepted by the outside world community
and the way of preparation is very simple and delicious. The products packaging are also very
attractive and stored in a cold-controlled warehouse and the quality of the products are also in
a very good condition.

We produce the instant frozen food that is traditionally Malaysian dishes to be sold in
the local market as well as the international market to refine our exciting new recipes and also
creating innovation of the new recipes to provide our own customer-oriented products. We
want to produce our product to meet the satisfaction of customers and to bring the excellence
to our product by producing and selling a high quality instant frozen food.

Not only that, in the international market, Malaysian resident that is living in their
country cannot be disregard and they will of course looking and craving for their home country’s
dishes. In order to fulfill their wants and needs, we want to export our product internationally
so that they will not be longing for the taste of Malaysian dishes as Malaysia is one of the
worlds most popular for coastal tourism and known for its food heaven.

Finally, the lack of competition for instant frozen food products are mostly the favorite
food that only can be found in Malaysia such as Roti Canai, curry puff, spring roll, Keropok
Lekor and so on. Our company also wants to export our product to the international market to
get the global recognition and represent the Malaysian’s culture that has multiethnic of its vast
majority of population by introducing the symphony of flavours that make Malaysian cuisine
highly complex and diverse.

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2.0 Target market

Our target market is especially to the Malaysian people that are Muslims. These days, instant
frozen foods are getting a place in Malaysian’s heart. This is due to the high demands of
Malaysians on frozen foods that are really easy to prepare and a very high ensured hygiene
which caused a phenomenon of frozen food industry in this country. As we know that today is a
modern day where everyone wants simple things that don’t cost so much and not wasting
anytime. We target the housewives who want to save the cost of their expenses by purchasing
instant frozen foods in order to save cost and time. We also target single unmarried man and
woman and also those who are always busy with their work because this product is very easy
to prepare in no time with a minimal effort.

As a matter of fact, for the overseas, we have selected five Malaysia’s neighboring
countries like Philippines, Thailand, Myanmar, Indonesia and Vietnam. We also aware that some
Malaysian moves to those countries because of their works or even continuing their study, or
some of them are because of family. The impact of the immigration is expected to help the high
demand for our products and the Malaysian people that craves for Malaysian foods, with this
product they can feel the Malaysian vibes anytime and anywhere they want to eat. Not only
that, international tourists that often visit Malaysia can bring this product to their own country
as a gift to their family or even start as a business there for those who have traveled to
Malaysia.

To summarize, in order to promote and brand our product, we use the market
segmentation to target our market such as demographics, psychographics, and geographic
areas. From the demographic factor, our target market is both for female and male, whether a
student, an employer and employee, married and single and mostly Muslim people as well as
non-Muslim people. Based on the psychographics, we produce our product which is instant
frozen food that is super easy and timeless to be prepared and also it is a very tasty and
delicious instant dish. For the demographic areas, we want to produce our product both to the
local as well as the international market whether a Malaysian citizen or foreigner.

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3.0 Business challenges

In this frozen food industry all of the food company has to faced so many challenges as our
new company need five year to expect for our company to grow business internationally. Our
company is trying new solutions and ideas to face any problem that we have encountered in
our business. The main challenge faced by our company is the challenge of managing a cold
storage warehouse, which is also included in to maintain the accurate temperature for food
storage and while ensuring staff equipment is complete to perform the work more efficiently.

Another challenge that we have to face is time management and product quality control.
It is a high priority to facilitate cold storage and also to comply with the OSHA regulatory
standards and the FDA guidelines on our daily working procedure and also the products
equipment for the cold storage of our products. In addition, the process of product innovation is
very slow process. This process is may take more time than it should be, like testing and
marketing any product it take a long time to have an outcome and the cycles of the product to
getting the products from shelf development to market is a challenge for our company. We also
need the design and packaging of our products is much more simple, which it will be more
suited to be marketed and a very customer friendly product. We also face the challenge of
taking a long period of time to know the consumer preferences that sometimes changing their
preferences over time and we need to target the customers with the right messaging in an
optimum place and time is really important, then we also have to preserve the life cycle of food.
It's not a secret to keep frozen food from damaging because of it may cause problem like a low
quality product is one of the biggest challenges in the market.

Not only that, the challenge is in protecting the food products. The challenge is to
maintain the warehouse, temperature and humidity that appropriate to store the product.
Failure to control this temperature can result in damages or losses. There are also challenges in
dealing with barriers in international business we have to face the high risks in exporting our
products and maintain the safe and humid temperatures and the food will be in a good
condition. The last one is Malaysia's halal certification status is not the same as that of other
countries. That is, Malaysia does not have the Halal Act that applies throughout the country.
Hence, it makes it difficult for us to export to other countries other than Philippines, Thailand,
Vietnam, Myanmar and Indonesia.

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4.0 Potential Return on Investment (ROI)

Return on Investment (ROI) is a performance measure used to evaluate the returns of an

investment or to compare the efficiency between different investments. ROI measures the gain
or loss on the return of an investment relative to the cost of the investment. Below are the
potential ROI that our company has estimated for five consecutive years to measure whether
our company gain from money invested or vice versa.

2019 2020 2021 2022 2023

RM RM RM RM RM

Investment Capital Cost 1,000,000 1,000,000 1,100,000 1,200,000 1,200,000

Net Income 195,000 165,000 175,000 165,000 115,000

Return on Investment (ROI) 19.5% 16.5% 17.5% 16.5% 11.5%

Table 4.0. Potential Return on Investment (ROI)

From the table above, we can see that in 2019, our company will invests a capital cost for
RM1,000,000 and has a net profit of RM195,000. The potential ROI for the first year is 19.5%
that represents a positive return on the investment. In 2020, our company will also invests
RM1,000,000 but with a net income of RM165,000 which results to 16.5% of ROI a decrease
from the previous year’s ROI. In 2021, our company sells the share for RM1,100,000 with a net
profit of RM175,000. The potential ROI for that year will be 17.5% that shows an increase from
2020’s ROI. For the next four to five years, our company will sells the share for RM1,200,000
with a decreasing net income which is RM165,000 and RM115,000 respectively. The potential
ROI for 2022 and 2023 will be 16.5% and 11.5% respectively that shows a continuous
decrease. To sum up, our company only shows a positive rate of return and resulting to
potential ROI that are greater than zero. This will help our company to ensure selecting the
most cost effective technology and approach on the future.

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5.0 Financial Projection

5.1 Cash Flow Projection

Cash Flow Projection

2019 2020 2021 2022 2023

RM RM RM RM RM
Cash Opening Balance 300,000 594,000 808,000 932,000 1,095,900
Cash Coming In
Sales 750,000 700,000 650,000 650,000 600,000
Cash on hand 100,000 100,000 50,000 50,000 50,000
Total Cash Inflow 850,000 800,000 700,000 700,000 650,000
Cash Coming Out
Inventory 100,000 150,000 150,000 100,000 100,000
Salary 250,000 250,000 250,000 250,000 250,000
Advertising & Promotion 80,000 60,000 50,000 50,000 50,000
Rental payment 50,000 50,000 50,000 50,000 50,000
Insurance 30,000 30,000 30,000 30,000 30,000
Utilities 25,000 25,000 25,000 25,000 25,000
Taxes 20,000 20,000 20,000 30,000 30,000
Interest 1,000 1,000 1,000 1,100 1,200
Total Cash Outflow 556,000 586,000 576,000 536,100 536,200
Cash Closing Balance 594,000 808,000 932,000 1,095,900 1,209,700

Table 5.1. Cash Flow Projection

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5.2 Sales Projection

Sales Projection
Unit 2019 2020 2021 2022 2023
Roti Canai 15,267 14,767 16,300 16,200 16,280
Curry puff 11,786 10,786 12,000 12,167 11,400
Murtabak 9,950 9,150 9,986 10,071 9,200
Chapatti 9,050 7,950 8,886 9,071 7,829
Satay 3,529 3,429 3,667 3,833 3,320
Spring roll 10,986 10,186 11,100 10,867 10,000
Pisang Goreng 5,200 4,900 5,500 5,383 5,000
Keropok Lekor 5,100 4,700 5,400 5,183 4,883
Fish ball 5,308 4,908 5,700 5,500 5,280
Price
Roti Canai RM6.00 RM6.00 RM5.00 RM5.00 RM5.00
Curry puff RM7.00 RM7.00 RM6.00 RM6.00 RM6.00
Murtabak RM8.00 RM8.00 RM7.00 RM7.00 RM7.00
Chapatti RM8.00 RM8.00 RM7.00 RM7.00 RM7.00
Satay RM35.00 RM35.00 RM30.00 RM30.00 RM30.00
Spring roll RM7.00 RM7.00 RM6.00 RM6.00 RM6.00
Pisang Goreng RM15.00 RM15.00 RM12.00 RM12.00 RM12.00
Keropok Lekor RM15.00 RM15.00 RM12.00 RM12.00 RM12.00
Fish ball RM13.00 RM13.00 RM10.00 RM10.00 RM10.00
Sales RM RM RM RM RM
Roti Canai 91,600 88,600 81,500 81,000 81,400
Curry puff 82,500 75,500 72,000 73,000 68,400
Murtabak 79,600 73,200 69,900 70,500 64,400
Chapatti 72,400 63,600 62,200 63,500 54,800
Satay 123,500 120,000 110,000 115,000 99,600
Spring roll 76,900 71,300 66,600 65,200 60,000
Pisang Goreng 78,000 73,500 66,000 64,600 60,000
Keropok Lekor 76,500 70,500 64,800 62,200 58,600
Fish ball 69,000 63,800 57,000 55,000 52,800
Total Sales 750,000 700,000 650,000 650,000 600,000

Table 5.2. Sales Projection

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5.3 Profit Projection

Profit and Loss Projection

2019 2020 2021 2022 2023
RM RM RM RM RM

Sales 750,000 700,000 650,000 650,000 600,000

Less: Cost of Goods Sold 100,000 100,000 50,000 50,000 50,000
Gross Profit 650,000 600,000 600,000 600,000 550,000
Operating Expenses
Salary 250,000 250,000 250,000 250,000 250,000
Advertising & Promotion 80,000 60,000 50,000 50,000 50,000
Rental payment 50,000 50,000 50,000 50,000 50,000
Insurance 30,000 30,000 30,000 30,000 30,000
Utilities 25,000 25,000 25,000 25,000 25,000
Taxes 20,000 20,000 20,000 30,000 30,000
Total Expenses 455,000 435,000 425,000 435,000 435,000
Net Profit Before Tax 195,000 165,000 175,000 165,000 115,000
Interest 1,000 1,000 1,000 1,100 1,200
Net Profit After Tax 194,000 164,000 174,000 163,900 113,800

Table 5.3. Profit Projection

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5.4 Export Projection

Export Projection
2019 2020 2021 2022 2023
Indonesia 19,235 18,155 19,708 19,655 18,638
Thailand 16,235 15,155 16,708 16,655 15,638
Myanmar 14,235 13,155 14,708 14,655 13,638
Philippines 12,235 11,155 12,708 12,655 11,638
Vietnam 14,235 13,155 14,708 14,655 13,638
Total 76,174 70,774 78,538 78,276 73,192

Table 5.4. Export Projection

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6.0 Financial requirement

Items Amount
(RM)

Machines 200,000
Annual capital expenditure 600,000
Annual salary 250,000
Total cost 1,000,000

7.0 Justification of the financial requirement

According to research by IDC’s business value, decision makers requiring proof of business
value outcomes prior to considering and approving a purchase. The total cost that our company
required to startup our business is estimated to be RM1,000,000.

Here, we specify the expenses that we will need. Among these, the machines we will be
needed in our business are to facilitate the process of our raw materials to produce our
products such as the Roti Canai, curry puff and other products as well as the for the product’s
packaging. The purpose of our purchase of this machine is to facilitate and accelerate the
process of selling frozen products so that it can be contributed and marketed to nearby stores.
The cost estimate to buy the required machine is RM200,000.

In addition, we also intend to employ 15 to 20 workers during the operation of our

factory. Each employee will be paid RM1,000 monthly. Our company estimates around
RM15,000 to RM20,000 salaries per month. Hence, the annual salaries are estimated at the
required value of RM250,000 to be paid to employees. Lastly, capital expenditures are an
expenditure incurred to increase existing fixed assets or investments. It may be land,
equipment and machinery, or other forms of physics. Therefore, we will need RM600,000 for
capital expenditure to run this business.

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8.0 Strategies to Become Exporter

If we want to become a frozen food exporter, we must first develop an export plan. The key to
a successful export plan is to encourage everyone to be involved in the export process. All
aspects of the export plan should be supported by specific implementers.

In order to ensure an effective export plan, few strategies need to be done to become a
successful exporter. First, the written plan shows our strengths and weaknesses more clearly.
Written plans are not easily forgotten, ignored, or intentionally executed by someone who
evades for some reason. It is easier to communicate effectively with others without being
misunderstood and can be used to clarify their respective responsibilities and provide a basis for
future performance evaluation. The second point is that it is possible to seek financial support.
A written export plan can indicate to the company's management what needs to be supported
by the company in order to obtain the necessary external conditions. The last advantage is that
it should be especially noticeable. For a company that starts investing time, energy and funds to
export, it may take some time to see the return and a detailed written export plan allows the
company's top decision-making body to firmly believe in export confidence.

A plan is a basic tool that can be used to influence all factors that affect a company's
ability to compete internationally. To ensure that we are successful in becoming a frozen food
exporter, we must develop an international marketing plan that includes commitment to
international trade, export price strategy, export drivers, potential export markets and ways for
customers to enter the international market. Developing an international marketing plan is
important to our company's market positioning, internal goals and commitments. It is also
necessary for our company to seek funding for export. Completing and analyzing an export
marketing plan can help the company predict future goals, summarize facts, identify limitations,
and develop an action report. It also sets clear goals, an implementation timeline and
milestones towards success.

Then we have to pay attention to the quality of our products, as well as the conditions
of other exporters in order to win more export channels. Many importers will choose low-priced,
good-quality products. If we want to meet the requirements, we must choose the better raw
materials of our frozen foods.

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9.0 Strategies to Market Our Product

When we market our products, we must first familiarize ourselves with the characteristics of the
products that we sell. Especially in the face of customers, pay attention to the display is very
familiar with the product. Familiar with the target customers who sell their products, and these
target customers should be classified, which are core customers, those non-core customers,
which are key customers, and which are non-key customers. Customers can be divided into
several categories, according to what kind of classification, competition different strategies and
methods should be used for different customer categories. The time and effort allocated to
different types of customers are different. How is the market segmented, what are the
competitors, the capacity of the market, the geographical distribution of the customers and the
time distribution of the products, and the short-term development trend of the product market
(the development trend in the next 2-3 years). When selling products, it is necessary to arrange
the time reasonably, and to make reasonable space allocation according to the customer's
buying habits and geographical location. According to the customer's situation, choose the most
favorable product purchase method for both parties. For example, when we are selling our
products to country A, we must first understand the preferences of people in country A, what
foods they like, and what to produce according to their needs. Also knowing the products of
country A has specialized. If country A has the same product of spring roll as our country, we
will not sell spring roll to country A, but sell Pisang Goreng. This will increase the success rate.

Secondly, we must master the marketing skills. Marketing is not mandatory to sell to
customers, but to guide customers from the perspective of customers. Customers sometimes
value your service spirit more than product. In reality, sales are not completed at one time, and
often require multiple communications with customers. In communication, some sales will fail
and some will succeed. Therefore, we must make reasonable choices, some can give up, some
should continue to work hard, some are short-term customers, some are temporarily
unsuccessful, but as long as the relationship is good, there is hope for success in the long run,
and we cannot give up. Then we have to pay attention to the importance of the old customers,
to keep the old customers in the cost and effectiveness of marketing, it is more useful than
looking for a new customer. At the same time, the old customer has social relations, and his
social relations can also be used by our company.

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10.0 Advantage from Trade Agreements that Malaysia Signed

International trade one of the important parts in Malaysia economic growth. It was proven since
2000 until now, because the GDP Malaysia increased to 200 percent. Free trade agreement
(FTA) one of the mechanisms to open foreign market for the exporters and give the positive
impact on economic growth.

Free trade agreement (FTA), countries that participate or have signed the agreement
agree to countries to reduce or remove trade barriers and to increase trade of goods and
services with each other. For example, tariff and import quotas. Malaysia had signed and
implemented 7 bilateral free trade agreements with Japan, Pakistan, India, New Zealand, Chile,
Australia and Turkey.

At the ASEAN level, Malaysia has 6 regional China, Korea, Japan, Australia, New Zealand
and India. Free trade agreement can help our business through export things because it offers
lower tariffs on export and import of goods and components. So that it makes our product more
competitive, as compared to exports and imports from other or non-FTA countries.

Other than that, we can reduce the cost from eliminate or reduction of customs
procedures. All the rules and regulations that is not burdensome to trade with an outside
country. Cheaper imports routes of the FTA partnership countries can benefit ours. We also can
improve the competitiveness of Malaysian industries through improvements competition and
economic scale. Foreign direct investment can also be improved and thus can be promoting
capacity building through economic and technical cooperation activities.

FTAs encourage our business to do more exports because of the cover protections that
give for investors and the intellectual property rights. Besides, we can promote the Malaysian
delights to all over the world.

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11.0 How to Cushion the Impact of Economic Recession and Crisis

Malaysia is a country that has experienced economic recession and crisis in 1998. In mid-1997
the Asian financial crisis started in Thailand and spread to Malaysia, Indonesia, Japan and the
republic of Korea. The countries involved in the credit crunch are losing their currency, stock
market value and asset value drops. But Malaysia successfully recovered from the crisis without
borrowing from the IMF's International Monetary Fund. The government has taken a wise move
and among the fastest countries to recover from the crisis. The steps taken receive praise from
IMF and world leaders.

Among the effects of a recession that is felt is the country's output is diminished. Our
business can help increase the country's output by making exports to outside countries.
Increasing state output at the same time can increase the country's GDP. National productivity
will also increase. Increased in national income (GDP), with a lot of trade and increasing
country productivity.

The impact of the recession and the financial crisis that most impact the people is the
problem of unemployment. With the creation of our business then job opportunities will also
exist. Therefore, labor skills will also increase and people who unemployed can have job.

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