FACULTY OF ACCOUNTANCY

MARA UNIVERSITY OF TECHNOLOGY

(UiTM SHAH ALAM)
BUSINESS PLAN
PN. BEDAH AHMAD
EN. MOHD ALIBAHARI
PN. NORILMAH AZIS
SUBMISSION DATE : 04 SEPTEMBER 2002
WARDATUL RAIHAN BINTI AHMAD 2000576516
KAMARIAH BINTI BAHARIN 2000575758
HASRAUMMI BINTI HARON 2000575701
WAN NURUL HAFIZA BINTI W. MAHMOOD 2000576475
SHAHIDA HANNANI BINTI ABDUR RAFAR 2000576283
1. EXECUTIVE SUMMARY
2. BUSINESS PLAN PURPOSES
3. COMPANY BACKGROUND
a.Background of company
b.Partnership agreement
c.Business logo
4. PARTNERS BACKGROUND
5. ADMINISTRATION PLAN
Job description
Schedule of remuneration
List of office equipment
Office layout
List of administration budget
6. MARKETING PLAN
Service description
Target market
Market size
Main competitors
Market share
Sales forecast
Marketing strategy
Marketing personnel
Schedule of remuneration
Marketing budget
7. OPERATION PLAN
Operation process
Process flow chart
Capacity planning
Material requirement
List of personnel
Schedule of task and responsibilities
Schedule of remuneration
Machine and equipment
Operation space layout
Location
Operation budget
8. FINANCIAL PLAN
Project implementation cost
Source of financial schedule
Loan amortization schedule
Hire purchase repayment schedule
Cash flow statement
Profit and loss account
Balance sheet
9. APPENDIX
1. EXECUTIVE SUMMARY
Irise Laundry is a business of laundry and the business will be started on I
s
January 2003.
Services that will be provided are normal washing, express dry cleaning, ironing, comforters and
curtains. This business location is situated at No.8, Jalan Pinang E18/ E Section 18,40 000 Shah
Alam, Selangor Darul Ehsan. This location is situated in resident areas. Therefore, it will have a
great potential market for this business. Besides that, this area is near Akasia and Cemara
College. Moreover, it has less competitors as compared to other business and services.
This year economic situation is more stable, therefore we expect that in 2003 Malaysia's
economic will continue to growth. As the country prospers, more people are employed, making
standard living of people in Malaysia getting better each year. Furthermore our ways of thinking
has changed people no longer assume that laundry is only necessary for wealthy society.
We believe that our business have potential in this millennium especially in urban area
because people are busy with studies and works. As the consequences they have limited time to
do house chores like washing clothes. Therefore they prefer to send their clothes to the nearest
laundry shop. Related to this situation, we focus to students and residents of Section 18, Shah
Alam.
Another factors that influencing us to choose this laundry services is because lack of
competitors in Section 18, Shah Alam making it easier for us as a new entrepreneur to engage in
the business because this service do not require large capital and professional workers.
1.1 Internal Goals
Able to train and develop skills of the workers especially their communication skill such
as relation between staffs in a business.
1
Maintain good working environment where close interaction flow from top-
level management to the lower level with good communication standard.
1.2 External Goals
To cover all the expenses in two years
To be an established company by another two years
To be able to offer varieties of services to all customers relate to their needs and wants.
1.3 Business Objectives
Below are some of the objectives of Irise Laundry services:
An introduction of services to compete with other operators as well as to establish a
strong foothold in the laundry market services.
To create a new perception towards services especially about it benefit and the quality
Provide high quality and well establish services to attract people especially those
workaholics.
Less the community burden and give a little bit welfare contribution.
1.4 Goals
Setting a goal can be a crucial decision for company, as the management would have to
determine the direction of the company towards reaching. It should reachable and within the
capacity and reach of the company. We are dividing the goals into 2 areas, namely:
Internal goal that could be achieved through the internal planning training and prudent
strategy.
External goals that could be attained through smart partnership, strategic marketing and
promotion.
2
2. BUSINESS PLAN PURPOSES
Purpose of business plan:-
This business plan is prepared by Irise Laundry to obtain a loan for the amount of
RM 20735.06 from BankRakyat.
Profit selling forecast have to be expected objectively and critically so that the
plan can be practical.
Besides, the project have to evaluate project viability and growth potential that
can be solve any problems later in business and decrease the business's risk.
It also will be a guideline for workers in order to know their jobs, functions and
their responsibilities thus a good relationship between workers can be created.
This business plan also will enable other external investors like shareholders,
banks and supplier to invest in our business.
It also enable us to carry out a survey to indicated whether the plan can achieve
success or not. This plan will be studied thoroughly from every aspect so that it
can be perform practically.
3
3. COMPANY BACKGROUD
Business Name
Business Address
Correspondence Address
Phone number
Form of the business
Email
Main activities
No.of registration
Date of commencement
Initial own capital
Irise Laundry Services
No.8,JalanPinangE/!8;
Section 18, 40000 Shah Alam,
Selangor Darul Ehsan.
No. 8,JalanPinangE/18,
Section 18,40000 Shah Alam,
Selangor Darul Ehsan.
03-21240336/37
Partnership business
Irise @ chek.com
Normal washing, dry cleaning, ironing, comforters
And curtains.
Work in progress
1 January 2003
Partners Contribution :- RM 100,000
1. Wardatul Raihan Bt Ahmad RM 20,000
2. Kamariah Bt Baharin RM 20,000
3. Wan Nurul Hafiza W. Mahmood RM 20,000
4. HasraummiBtHaron RM 20,000
5. ShahidaHannaniBtAbdurRafar RM20,000
Name of bank Bank Rakyat
4
3.1 PARTNERSHIP AGREEMENT
1) Parties to the agreement
i. Wardatul Raihan Bt Ahmad 831018-03-5330
ii. KamariahBaharin 830207-01-5684
iii. Wan Nurul Hafiza W. Mahmood 831001-03-5828
iv. Hasraummi Haron 830406-10-5420
v. ShahidaHannaniAbdurRafar 830915-06-5276
2) Nature and place of business
Partners had agreed to carry on the business of laundry services activities.
The business will be operating at No.8, Jalan Pinang C 18/ C Section 18, 40
000 Shah Alam, Selangor Darul Ehsan.
3) Firm Name
The firm name that has been agreed between partners and registered under the
Registration of Business is Irise Laundry.
4) Duration of Partnership
The partnership business will be commencing on 1 January 2003
5) Provision of Capital
All partners agreed to contribute the capital to the partnership business as follows:
Wardatul Raihan Bt Ahmad RM 20,000
Kamariah Baharin RM 20,000
Wan Nurul Hafiza W. Mahmood RM 20,000
Hasraummi Haron RM 20,000
Shahida Hannani Abdur Rafar RM 20,000
5
6) Division of Company and Profits
It is being agreed between partners to the division of capital, profits and losses in the
proportion as follows:-
Wardatul Raihan Ahmad 1 IS
Kamariah Baharin 1/5
Wan Nurul Hafiza Wan Mahmood 1/5
Hasraummi Haron 1/5
Shahida Hannani Abdur Rafar 1 IS
7) Partnership Property
All property and rights and interest in property originally brought into the partnership
stock or acquired whether by purchase / otherwise on accounts of the firm or for the
purposes and in the course of the partnership business are called partnership property
and must be held and applied by the partners exclusively for the purposes of the
partnership and in accordance with the partnership agreement.
Property bought with money belonging to the firm is deemed to have been bought on
account of the firm.
8) Movement of Business
Wardatul Raihan Bt Ahmad
Kamariah Baharin
Wan Nurul Hafiza W. Mahmood
Hasraummi Haron
Shahida Hannani Abdur Rafar
-General Manager
-Administration Manager
-Operational Manager
-Marketing Manager
-Financing Manager
9) Methods of Dissolving a Partnership
Due to the death or bankruptcy of any partners will cause a partnership to be
dissolved.
However the partners are advised to continue the firm activities in the event of death
or bankruptcy
10) Change in the Firm
All partnership is able to introduce a new member and it is necessary to make
provisions for a retiring partner or agent of deceased partners to appoint another as a
new partner.
PARTNERSHIP AGREEMENT CERTIFICATION
This agreement dated on 1 October 2002 between
Name i/c no
1.
2.
3.
4.
5.
WARDATUL RAIHAN BINTI AHMAD
KAMAMAH BINTI BAHARIN
HASRAUMMI BINTI HARON
WAN NURUL HAFIZA BINTI W.MAHMOOD
SHAHIDA HANNANI BINTI ABDUR RAFAR
831018-03-5330
830207-01-5684
830406-10-5420
831001-03-5828
830915-06-5276
Addressed at No.8,Jalan Pinang E 18/E,Seksyen 18,40000 Shah Alam, Selangor.We are
agreed to fulfill all requirement that is stated in the agreement.
AND as partners, we are liable and responsible on any profit or loss made by the
company.
HERE, it is agreed and certify about the folio wings :-
1) This business is named as Irise laundry which carries business on laundry
service
2) Total equity is RM300735.06 including loan amounted to RM20735.06
3) Each partner has shares amounted to RM20000
4) Partners are entitled to receive monthly salary from this business's activities
5) Liabilities on assets, profit and others which related to business is shared equally.
6) Retirement notice must be issued within 30 days from the retirement date.
7) If there is any misunderstanding between partners, decision is based on majority
of partners.
8
Partners:
(WARDATUL RAIHAN BINTI AHMAD) (KAMARIAH BINTI BAHARIN)
I P |
Mn
(HASRAUMMI BINTI HARON) (WAN NURUL HAFIZA BINTI W. MAHMOOD)
(SHAHIDA HANNANI BINTI ABDUR RAFAR)
Witnessed by:-
fflMU
(SH^MEEN BINTI IDRIS)
$#u
(SITIFATIMAH BINTI JOOLKEPRI)
9
COMPANY'S LOGO
We agree to pick jersey as our logo main body. The clipper symbolized the mutual trust and
confidence that exist among of all the partners. Bright is chosen to represent our hope for bright
future. Reasons why those color are chosen are explain below:
RED - Represent our willingness to bear the risk by involving in this type of
business
YELLOW - This royal color shows that we offer first class services to the customer
BLUE - Represent inter-group unity that exist between us
WHITE - It is our priority to maintain the cleanliness of our customer's garment
10
4. PARTNERS BACKGROUND
4.1 GENERAL MANAGER
Name
Identity card no
Permanent Address
Correspondence address
Telephone
Date of Birth
Age
Marital Status
Academic qualification
Course Attended
Skills
Experiences
Present Occupation
Wardatul Raihan bt Ahmad
831018-03-5330
Simpang Tiga, Kg.Alor Pasir,
16250 Wakaf Bharu,
Kelantan.
No 31 Man Limau Madu 11/2G
40100 Shah Alam
Selangor
012-9289682
18 October 1983
26 years old
single
Degree In Accountancy
(University Technology of MARA)
Seminar On Management
Computer and IT conference
Expert in international currency
analysis and business administration
Administration manager for 2 years at EON Bhd and
auditor at audit firm for one year.
Accountant
11
4.2 ADMINISTRATION MANAGER
Name
Identity card no
Permanent Address
Correspondence address
Telephone
Date of Birth
Age
Marital Status
Academic qualification
Course Attended
Skills
Experiences
Present Occupation
Kamariah Binti Baharin
830207-01-5684
83,(F)PalongTimor2,
85100 BatuAnam,
Segamat, Selangor
No 1, JalanResberi
47500 PetalingJaya
Selangor Darul Ehsan
017-7893584
07 February 1983
26 years old
single
Degree In Accountancy
(University Technology of MARA)
Seminar On Administration
Management
Program Usahawan Muda
Computer Literate and Able to speak Mandarin
Auditor at Iskandar Sdn. Bhd
Lecturer at UiTM Shah Alam
12
43 OPERATION MANAGER
Name
Identity card no
Permanent Address
Correspondence address
Telephone
Date of Birth
Age
Marital Status
Academic qualification
Course Attended
Skills
Experiences
Present Occupation
Wan Nurul Hafiza Bt W.Mahmood
831001-03-5828
Lot 181,TamanSeri,
Pengkalan Chepa,
16100 KotaBharu
Kelantan
No 32 Jalan Limau Nipis 11/4G
40100 Shah Alam
Selangor Daml Ehsan
019-2451669
01 October 1983
26 years old
single
Degree In Accountancy (University
Technology of MARA)
Seminar On Managemant
Seminar In Business Management by
Kementerian Keusahawanan
Able to speak English and Mandarin
Part time worker in laundry services
Program Usahawan Muda
Assistant Financial Manager in F&N Coke (M) Sdn
Bhd.
13
4.4 MARKETING MANAGER
Name : Hasraummi binti Haron
Identity card no : 830406-10-5420
Permanent Address Jalan Iskandar,Kg Bkt Kapar
42200 Kapar
Selangor
Correspondence address No 32 Jalan Limau Barli 11/6G
40100 Shah Alam
Selangor Darul Ehsan
Telephone 013-6024149
Date of Birth 06 April 1983
Age 26 years old
Marital Status single
Academic qualification : Degree In Accountancy
(University Technology of MARA)
Course Attended Seminar On Managemant
Program Usahawan Muda
Skills Able to speak in Japanese and Computer Literate
Experiences Sales Promoter at Jaya Jusco for one year
Marketing Executive at Fujitsu for 2 years.
Present Occupation : Marketing officer
14
4.5 FINANCIAL MANAGER
Name Shahida Hannani Binti
Abdur Rafar
Identity card no 830915-03-5586
Permanent Address : G 179,Batu Satu,
28000 Temerloh.
Correspondence address : No 31 Jalan Strawberi 11/2G
47500 Subang Jaya
Selangor Darul Ehsan
Telephone : 012-9559209
Date of Birth 15 September 1983
Age : 26 years old
Marital Status : single
Academic qualification : Degree In Accountancy(University
Technology of MARA)
Course Attended Seminar On Managemant
Seminars In Business And Financial Mgt
Skills CPR, Computer Skill, Able to speak English
And Malay fluently.
Experiences Auditor at Megat Sdn. Bhd for 2 years
Present Occupation Accountant
15
W
WARDATUL RAI HAN AHMAD
(GENERAL MANAGER)
0129289682
No.8, Jalan Pinang C, 18/ C, Seksyen 18,
40000 Shah Alam, Selangor Darul Ehsan.
Tel:0321240336/37 Email: irise@chek.com
4
KAMA RXAH BAHARIN
(ADMINISTRATION MANAGER)
0177893584
No.8, Jalan Pinang C, 18/ C, Seksyen 18,
40000 Shah Alam, Selangor Darul Ehsan.
Tel:0321240336/37 Email: irise@chek.com
-rffi
HASRAUMMI HARON
(MARKETING MANAGER)
0136024149
No.8, Jalan Pinang C, 18/ C, Seksyen 18,
40000 Shah Alam, Selangor Darul Ehsan.
Tel:0321240336/37 Email: irise@chek.com
WAN NURUL HAFI ZA W. MAHMOOD
(OPERATION MANAGER)
0192451669
No.8, Jalan Pinang C, 18/ C, Seksyen 18,
40000 Shah Alam, Selangor Darul Ehsan.
Tel:0321240336/37 Email: irise@chek.com
SHAHI DA HANNANZ ABD RAFAR
(FINANCIAL MANAGER)
0129559209
No.8, Jalan Pinang C, 18/ C, Seksyen 18,
40000 Shah Alam, Selangor Darul Ehsan.
Tel:0321240336/37 Email: irise@chek.com
16
ADMINISTRATION
PLAN
5. ADMINISTRATION PLAN
5.1 ORGANIZATION CHART
GENERAL MANAGER
Wardatul Raihan Ahmad
1 '
ADMINISTRATION MGR
ir
OPERATION MGR
T
MARKETING MGR
v
FINANCIAL MGR
Kamariah Baharin Wan Nurul Hafiza
W: Mahmood
Hasraummi Haron Shahida Hannani
Abdur Rafar
STAFF 1
SUPERVISOR
TECHNICIAN
ACCOUNT CLERK
STAFF 2
5.2 JOB RESPONSIBILITY
Position:
General Manager - Administration Plan
Administration Manager - Administration
Plan
Marketing Manager - Marketing Plan
Operation Manager - Operation Plan
Main Responsibilities:
> Conduct all parts in the business
organization that is Administration,
Financial, Marketing and Operation,
> To make sure business rum smoothly.
> To create strategy and future planning
in meeting at the company management.
> To make decision in any problem that
company occurs while running the
business.
> Receive report from Administration,
Financial, Marketing and Operation.
> Alert of any planning for the business
as detail as possible.
> Manage the company asset expenses,
monthly expenses and other expenses.
> Responsible to everything happen in
the company while operating business.
> Responsible to workers salaries,
medical leave and emergency leave.
> To employ workers according to they is
education qualifying.
> Research on customers, needs, desire
and satisfaction to increase the
company's profit.
> Try to fulfill the desires and needs of
the target market.
> Prepare the marketing strategy and sale
forecast.
> To make sure that the production
department run smoothly.
> Arranged the production schedule
regarding the to the order and
production.
> Ensure all production activities goes
follows the schedule as arranged.
> Have to ensure all machines and tools
for production department runs very
well and always provide good
maintenance service.
Financial Manager - Administration Plan
Production Supervisor - Operation Plan
Staffs - Operation Plan
Technician - Operating Plan
> Manage all the business financial
activities.
> Check, control and kept account from
time to time.
> Ensures that the accounting system in
the financial division of company
provides reports and statements needed
> for planning, controlling, and decision-
making.
> Make a financial analysis based from
Financial Accounting and Management
Accounting.
> To make sure the production process
follows the required standard and
specific methods
> Cooperate with marketing department
to gain information about latest
marketing strategy and customer desire.
> To make sure that all of the services
follows the standard requirement and
quality before give back to customers.
> Manage all the operation flow every
day.
> Taking care of electricity problem
> Repairs any machine breakdown
> As a temporary worker
53 SCHEDULE OF REMUNERATION
NO
1
2
3
4
POSITION
General
Manager
Administration
Manager
Financial
Manager
Account Clerk
NO OF
WORKERS
1
1
1
1
MONTHLY
SALARY
1200
1200
1200
600
EPF (13%)
156
156
156
78
SOCSO
(2%)
24
24
24
12
19
5.4 LIST OF OFFICE EQUIPMENT
NO
1
2
3
4
5
6
7
ITEM
Meeting Table
Table
Chan-
Computer
Sofa
Fax Machine
Telephone
Total
QUANTITY
1
2
6
1
1
1
1
PRICE/UNIT
500
200
60
2500
800
500
100
TOTAL
PRICE
500
400
360
2500
800
500
100
5160
5.5 LIST OF ADMINISTRATION BUDGET
TYPE
Capital Expenditure/
Fixed Asset
Monthly Expenses:
Salary
Telephone
Stationery
EPF
SOCSO
Other Expenses:
Insurance
Deposit:
Rental
Water
Electricity
Telephone
Preliminary
Expenses:
Business Reg.
Legal Fee
Stamp Duty
Total
FIXED ASSET
COST (RM)
5160
5160
MONTHLY
EXPENSES (RM)
4200
150
50
546
84
5030
OTHER
EXPENSES (RM)
2000
2000
100
100
120
60
50
50
4480
OFFICE PLAN LAYOUT
RACK
o o
TABLE
o o
CHAIRS
COMPUTER
FAXM/
8ffl
iCH] [NE/PHONE
LA AJ
I I
ENTRANCE
MARKETING PLAN
M
J O T
^dilli
1
1 1
6. MARKETING PLAN
6.1 SERVICE DESCRIPTION
Nowadays, demand for laundry is increasing as more people especially in urban area have
limited time to do house chores like washing clothes. Most of working people and student work
in office or study in college from morning till night .Therefore, they prefer to sent their clothes to
the nearest laundry shop. Other than that, normal washing machine that used in house has no
capacity to wash comforter, curtain and certain type of garment such as Korean silk, velvet and
blazer. These garments can only be clean through dry cleaning.
Therefore, Irise laundry provided four types of services to satisfy the customer's
demand. The services comprise of normal wash, ironing, dry cleaning, and curtain/ comforter
shampooing, all at reasonable price. All of these services are operated under the same premises.
For normal washing, the clothes will be folded or ironed and hanged depending on the
customer's order. For ironing services, customers can bring their own hanger or buy it from the
laundry shop. As for dry cleaning, the clothes will be hanged and covered with plastics and for
curtain and comforter, they will be ironed before folded and put inside plastic bags.
Our main target is to have most customers sending their clothes for normal washing and
ironing during school days and work days. As for dry cleaning service, we targeted to have most
customers during school holidays because many occasion such as wedding and company annual
dinner are held during these days. Lastly, more customers will sent their curtain and comforter a
month before festive season such as Hari Raya Puasa, Chinese New Year, and Deepavali. This
is because, they want to tidy up the house for the special occasion .Besides that, the services is
performed by Muslim workers, so it is suitable for all kind of customers including the non -
Muslim.
22
6.2 TARGET MARKET
Target market is groups of customers that have needs and wants that can be satisfied by
the business through the supply of goods or services. The key factors that affect target market are
geographic, economic and demographic factor.
Geographic factor means that it depends on the location of the business and area
surrounding it. Irise laundry is situated at Section 18, Shah Alam .This area consist of
residential area. Therefore, under this factor, Irise laundry target market is the residents of
Section 18 and also residents of Akasia and Cemara College.
Economic factors relate to the income of the population. The Section 18's resident are
mainly middle -class people .Therefore, our target market range from customers with income
from RM 2000 to RM 5000. As for the students who staying in Akasia and Cemara College,
most of them are sponsored students. To attract them, Irise laundry offered special price for
students. That is our main target market range from students who has pocket money amounted
from RM 300 to RM 500 per month.
Demographic factor is mainly concerned about characteristic of human population or
specific segments of the population. Nowadays, people especially in urban area are busy with
work or study and they have limited time to do their house chores like washing clothes. Most of
the residents of section 18 are working people and student. Thus, laundry is the most favorable
alternative for them.
23
63MARKET SIZE
Market size refers to total potential purchase of target market including competitors's
services or products within the same market. Competitors are other businesses who offer similar
services or products to the same target market.
We manage to do some assumption concerning market size after collecting relevant
information from 3 competitors, residents of section 18, Shah Alam and students of Akasia and
Cemara College. Below is the total of potential sales for all the laundry shop in Section 18, Shah
Alam.
6.3.1 .Normal washing, comforter and curtain services
Student 60%
Non student 40%
Average customer per day = 40 person
Average unit of sales (kg) per month
Target
Market
Student
Non - student
No. of customer
per day
24
16
No. of customer per
month (30 days)
720
480
Unit (kg) per
visit
6
12
TOTAL
Total (kg) per
month
4320
5760
10,080
Normal washing 50%
Comforter 40%
Curtain 10%
24
Average sales (RM) per month
Services
Normal washing
Comforter
Curtain
Average
sales (kg)
per month
10,080
10,080
10,080
Percentage
ofservice
( %)
50
40
10
Average sales
(kg) per service
5,040
4,032
1,008
Price (RM)
perl kg
1.71
4.00
3.50
TOTAL
Total (RM)
8,618.40
16,128
3,528
28,274.40
6.3.2 Ironing and dry cleaning services
Student 20%
Non student 80%
Average customer per day = 30 person
Average unit of sa
Target Market
Student
Non - student
es (piece) per mont
No. of customer
per day
6
24
l
No. of customer per
month (30 days)
180
720
Unit (piece)
per visit
6
12
TOTAL
Total
1,080
8,640
9,720
Ironing 30%
Dry cleaning 70%
Average sales (RM) per month
Services
Ironing
Dry cleaning
Average
sales per
month
9,720
9,720
% of services
share
30
70
Average
sales per
service
2,916
6,804
Price (RM)
per piece
1.20
5.00
TOTAL
Total
(RM)
3,499.20
34,020
37,519.20
Total Market size = 28,274.40 + 37,519.20 = RM 65,793.60
25
6.4 MAIN COMPETITORS
EXCEL COOL LAUNDRY
STRENGTH
provide good services
Have regular customer
Large premise
SUTERA SUCILAUNDRY
STRENGTH
Reasonable price
Have regular customer
Strategic location
HAZKLEEN LAUNDRY
STRENGTH
Strategic location
offered carpet shampooing services
Reasonable price
IRISE LAUNDRY
STRENGTH
Owned dry cleaning machine (make dry
cleaning services more efficient)
clean and friendly environment with good
services
Reasonable price
Large premise : beautiful decoration
WEAKNESSES
Prices are slightly high
Premise layout is not suitable
WEAKNESSES
Limited space
Dirty environment
No dry cleaning service
WEAKNESSES
Limited space: packed with furniture
Not enough worker
Services are quiet slow
WEAKNESSES
Newly opened and not yet established in
the area
Located quiet far from the main road
Lack of experience
26
6.5 MARKET SHARE
Below are the operations of market share for irise Laundry before and after the business
entered into the market in percentage.
" Percentage of market share before the entering of irise Laundry
No.
1
2
3
Competitors
Excel cool Laundry
Hazkleen Laundry
Sutera Suci Laundry
TOTAL
Monthly Sales
expectation
26,317.44
21,711.89
17,764.27
65,793.60
Market share
( %)
40
33
27
100
Percentage of market share after the entering of irise Laundry
No.
1
2
3
4
Competitors
Excel cool Laundry
Hazkleen Laundry
Sutera Suci Laundry
Irise Laundry
TOTAL
Monthly sales
expectation
21,053.86
17,106.24
14,474.50
13,159
65,793.60
Market share
( %)
32
26
22
20
100
Percentage of market share losses
No.
1
2
3
4
Competitors
Excel cool Laundry
Hazkleen Laundry
Sutera Suci Laundry
Irise Laundry
TOTAL
Loss of market
share
(%)
8
7
5
-
17
New Market share
( %)
32
26
22
20
100
27
6.6 SALES FORECAST
Months
1
2
3
4
5
6
7
8
9
10
11
12
Year 1 (2003)
Year 2 (2004)
Year 3 (2005)
TOTAL
Total Sales(kg)
1407
2612
1769
1809
1848
2008
1407
2250
2371
1407
2612
2612
24112
31344
40746
96202
Total Sales(piece)
2047
3802
2574
2632
2691
2925
2047
3276
3451
2047
3802
3802
35096
45633
59324
140053
Total Sales(RM)
9,211
17,107
11,580
11,843
12,106
13,159
9,211
14,738
15,528
9,211
17,107
17,107
157,908
205,280.40
266,864.52
630,052.92
6.6.1 SALES FORECAST DESCRIPTION
Figure of total sales are determined base on the experience of our competitor and
assumption made by the marketing manager base on information collected from
competitor.
January
Base on competitors' experience, our sales for January is approximately RM 3000
because the laundry shop is just opened. People are not fully aware of the shop existence;
therefore we are planning to do aggressive promotion during this month.
February
Sales increase by 30% because Chinese New Year takes place in this month. This is
simply because demand for laundry rise during festive season as people busy to clean up
the house (specifically carpet and comforter) and also garments that can only be cleaned
through dry cleaning such as velvet, animal fur, and silk.
March until October
During these months, as the shop becomes the attention of the target customer, sales will
increase by approximately 15% every month respectively. However , sales for the month
of July and October will approximately fall by 30% because during these month, student
in Akasia and Cemara College is on semester holiday.
November
During the month, Malaysia celebrates Deepavali and therefore helps increase sales by
approximately 30%
December
Sales will also increase by 30% as Hari Raya Puasa fall in this month.
29
We assume that our sales for the second year and third year of operation will likely rise
by 30%' every year. We believe that our target market will start to change their
preference to our laundry throughout the year. With reasonable price and efficient
services, target market will preferably choose and trust irise laundry better that the
competitor.
30
Market Share Before Irise Enter
The Market
2 7 %
4 0 % Excel cool
Hazkl een
Sutera Suci
3 3 %
Market Share After Irise Enter
The Market
20%
22%
32%
26%
rj Excelcool
Hazkleen
Sutera Suci
Irise
-IQfif
IOUUU
16000 -
14000
12000 -
10000
8000
6000
4000
2000
u
Sales forecast on first year
i
]
, n n
1 1 1 i i i i
, -
i a
! I I I I I I I I I I I
1 2 3 4 5 6 7 8 9 10 11 12
Months
Month I Total sales(kg)
D Total sales(piece) Total Sales(RM)
Sales Forecast (2003-2005)
300000
250000
200000
150000
100000
50000
0
, _

. _
J
~
Y
Year
Total sales(kg) D Total sales(piece)
D Total Sales(RM)
33
6.7 MARKETING STRATEGY
The main objective of developing marketing strategies is to generate sales. As
irise laundry is newly operating business, we need aggressive marketing strategies to
introduce the laundry shop to the public.
There are several strategies that will be implemented for above stated reason. It
comprises of Service strategies, Price strategies, Promotion strategies, and Place and
distribution strategies.
Services strategies
Our business offered services which are normal washing, ironing, dry cleaning,
and curtain/ comforter cleaning. Our way of work is coordinated and very systematic so
there is less risk of customer loosing clothes or mistakenly got other people clothes.
Moreover, we are the only laundry shop in section 18 who owned dry cleaning machine.
This has become major advantage for irise laundry because our dry cleaning service is
cheaper and faster than other laundry shop.
Other strategy is to provide a very friendly environment and very good services.
To guarantee satisfactory, we use high quality washing soap powder and special
decorative plastics to covered hanged clothes. Irise laundry also recruited only Muslim
staff for operating department. This matter is emphasized because Muslim customer is
very concerned about how their clothes being treated. Some customer could be very
choosy as they want their clothes to be washed only by Muslim.
Price strategies
Generally, irise laundry uses the available market price but for students, we
provide new set of price that is only valid for normal washing and comforter. This is to
entice students to send more clothes to our laundry. Unlike other laundry shops who use
standard price for all type of comforter, irise laundry charged customer based on the weight
of their comforter. This strategy is extremely attractive and it has been forecasted to
attract many customers in future.
34
Promotion strategies
An attractive signboard will be put in front the laundry shop complete with
colorful neon lamp to highlight the signboard at night. To promote the laundry shop to
the students, a banner will be hanged on the college fence. Furthermore, we will
distribute cute mini book marks that content our business name and location to the
students. As for the residents of Section 18, Shah Alam, we will also hanged banner on
the side of main road and distribute simple flyers to the target market area .We also
provide business card for customers so that it will be easier for them to introduce our
business to family and friends. (Sample are shown in the appendices) .
Place and distribution strategies
Irise Laundry is located near college and residential area. So, it is convenience
for the students who majority does not have own transport to send their clothes. Our shop
is also located near to the Giant Hypermarket which is the centre attraction of Section 18,
Shah Alam. Therefore, our customers have no difficulties to find car park.
35
6.8 MARKETING PERSONNEL
As irise laundry is only a small business, we do not need many marketing
personnel. So, only one of the partners will be in charged on marketing and will be
helped by the other partners.
6.9 SCHEDULE OF TASK AND RESPONSIBILITY
No.
1
2
3
4
5
Position
Marketing manager
Marketing manager
Marketing manager
Teamwork
Teamwork
Task and responsibilities
Look out for ideas and promotions that can
generate sales without having to consume so much
cost.
Ensuring the price of services is affordable and
marketable.
Design and create attractive flyers , banners and
signboard
Distribute flyers to residents of Section 18, Shah
Alam and students of Akasia and Cemara College
Seeking opportunities to expand the business in
future
6.10 SCHEDULE OF REMUNERATION
Position
Marketing
manager
No.
1
Monthly salary
1200
EPF (13%)
156
SOCSO
(2%)
24
Total (RM)
1380
36
6.11 MARKETING BUDGET
Type
Signboard
Banner
Business card
Flyers
Mini book mark
Mktg. manager
remuneration
TOTAL
Fixed Asset
Cost ( RM )
500
500
Monthly
Expenses (RM)
1380
1380
Other Expenses
(RM)
50
50
50
60
210
37
OPERATION PLAN
i
7. OPERATIONAL PLANNING
7.1 OPERATION PROSESS
In general, Irise Laundry services provides four types of services which are
normal wash, iron, dry cleaning, and curtain/comforter wash. All this services will be
operate under the same roof with administration, marketing and financial department.
Normal working hour of operation department is six and half hour. Since this department
is the most important department in our company, we have maximum working hour.
The first services that is provided in our company and most favourable among the
customer is normal wash. Once order is received from customer, the clothes will be
separated according to the owner of the clothes and then put into a washer. A washer can
operate with the capacity of 1 to 3 kg with 20 minutes operation hour. Since our company
does not operate as traditional laundry service, then the clothes which already wash and
spin will put into the dryer for 20 minutes. After that the clothes will go into 2 stages,
according to the needs of customer whether the clothes will be iron or just delivered to
them in bulk.
A second service provided in our laundry company is ironing. The reason why we
are providing this type of service is based on our survey that we did. The survey gives us
result that people nowadays busy routine life make them does not have enough time to
manage their own attire. The best solution to get out from their problem is just give their
clothes to the person who can do the job and pay them at reasonable price. When order is
received the clothes will put at the ironing section. The job will be done by our worker,
then hang and ready to deliver.
A third service which is available at our laundry company is dry cleaning. This
services will treat certain type of cloths that need special treatment and maintenance such
as Korean Silk, velvet and blazer. As usual, when order is received, cloths will separate
and put together will other dry cleaning cloth. Then, the cloths are put into special
machine for dry cleaning. This does not use normal powder to wash but use chemical
substances. The cleaning will take about half an hour. Dislike normal wash, dry cleaning
cloth will not put into dryer machine since the clothes are totally finished. After that the
cloths will be bought to the iron section and finally delivered.
59
Last services provided in our company is curtain, comforter, blanket and bed
sheet cleaning. This service becomes popular among customer because they does not
have proper machine in their house to wash these cloths. The operation flow for this type
of service basically is same as normal wash. After all the stage of cleaning is completed,
then it is delivered to customer.
As the beginning, all the services mentioned above will be provided. In future we
are planning to provide many more services in order to meet market demand such as door
to door service and office services. Since that services need a large amount of capital, we
need to focus on business growth first before planning to expand the business.
<t0
CUSTOMER
NORMAL WASH
C JIRON
WASHER
DRYER
I JPACK
DELIVERED
IRON
HANG PACK
INSPECTION
DELIVERED DELIVERED
*
DRY
CLEANING
COMFORTER
WASHER f J WASHER
- 4

w
r
%
s
IRON DRYER
INSPECTION INSPECTION
DELIVERED DELIVERED