FACULTYOFENGINEERINGANDTHEBUILDENVIRONMENT

BACHELORINCIVILENGINEERING

BUISNESS MODEL CANVAS

LAT JIU PAN MEE

Course Details

Subject Code : ENL 4183 Entrepreneurship Development

Lecturer’s Name : Susha Varughese

Title of Assignment : LAT JIU PAN MEE (Pan Mee restaurant)

Submission Date : 10TH OCTOBER 2018

NAME STUDENT ID Programme IC Number/ Passport Number

LOH KHEE LENG SUKD 1502448 BCE 940920-08-5079

CHIN YEE SIANG SUKD 1501908 BCE 960528-08-5005

ANG JUN KANG SCM 028165 BCE 960617-56-5123

WOO CHAO DONG SCM 024030 BCE 951103-14-5151

ZEYAD ASHRAF ALI SUKD 1601388 BIA

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 TABLE CONTENT

Content Page

Introduction 4

Key Partners 5

Key Activities 6

Value Proposition 8

Customer Relationship 11

Customer Segment 12

Key Resources 14

Distribution Channel 15

Cost Structure 17

Revenue Streams 18

Conclusion 19

Reference 20

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Introduction

According to the research done on residence staying nearby SEGi University,

Kota Damansara and Sunway Giza at Kota Damansara, it shows that the residents
around there have a liking of Pan Mee, especially with Chilli paste. This is further
supported by the fact that Chilli Pan Mee restaurant and JoJo little kitchen are one of
the most famous pan mee shop located at the research location. Chilli Pan Mee and
JoJo little kitchen served their in non halal. Doing so, many Muslim customers are
unable to enjoy this delicacy. Pan mee lovers gave their feedback on the above two
restaurant that although their food is tasty, those shop serve with higher prices and
small portion. Adding noodle is not an option given by those shops.

Based on the collected data and feedback from peoples, a decision is made
to open a similar restaurant called the Lat Jiu Pan Mee which uses the same concept
with those 2 pan mee shop, but it stands out by serving the noodles in halal,
providing generous portion of food and with affordable price. Others than pan mee,
customers also can enjoy others choice of side dishes and drinks.

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Key Partners

Key partnerships are the network of suppliers and partners that make the
business model work. Companies forge partnerships to optimize their business
models, reduce risk, and required resources (“How do I use the Key Partnerships
building block of the Business Model Canvas?”, 2009)

In this business model, key partnerships are the network of partners and that
make the business model success. LAT JIU PAN MEE shall merge with partners
which allowed it to optimize its business models, reduce business risk and helps to
obtain the required resources. There are 4 different types which included strategic
alliances between non-competitors, strategic partnership between competitors, joint
ventures to develop new business and buyer-supplier relationship to assure reliable
supplies.

In this business model, 2 types of key partners are involved, which are joint
ventures and buyer-suppliers relationship. Joint venture means that there will be
investors funding and shareholder is given to them in order to gather capital funds to
start new business. While buyer-suppliers means that it will have a reliable source of
supplies coming in, for our supplier this means that they have a steady confirmed
buyer for their product (“Key Partners in A Buisness Modal Canvas”, 2015). Besides
that, LAT JIU PAN MEE key partners supplier is crucial to provide it noodles and
ingredient of food regularly within the contract sign to ensure the stock for business
will not be interrupted. This type of suppliers can differentiate into 2 main categories,
which includes noodle suppliers and ingredient suppliers. Noodle suppliers need to
supply few type of noodles based on the orders while ingredient suppliers need to
supply resources like chilli, sauce, egg and others ingredients that they need to use
to prepare meals for customers.

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 1) The company called EE KEE Noodle located in SERI Kembangan would be
supplying LAT JIU PAN MEE vegetarian pan mee noodle in large quantity.
The reason why EE KEE Noodle is chosen is because it is able to meet the
standards of noodle they demanded and is also able to match with its stock
demand.

Key Activities

To Work LAT JIU PAN MEE Value Proposition Properly

In this business, only a simplest form of key activities is required which are
marketing, advertising our restaurant, and serve the customers with the best of foods
and meals. LAT JIU PAN MEE does not aim for high profit other shops because it
practices cost leadership strategy. LAT JIU PAN MEE provides affordable prices,
generous portion of food and substantial variety of choices for the customers.

Development of Distribution Channels

The distribution channels for LAT JIU PAN MEE business is simple, as it flows
from the supplier of noodle to the chefs. All of the noodles and ingredients from
suppliers to the chef’s restaurant will be tested and quality checked to ensure
consistency of the food served are fresh and good quality.

Enquiry/Checklist for food supplier:

• How long can the food store?

• How to ensure that the noodle is only by vegetable ?
• How is the cleanliness of the factory?
• How is the noodles made?

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Customer Relationship with Our Business

With the new starting of business, online ordering and catering could be too
challenging for LAT JIU PAN MEE and it is risky to add on this to their business.
action. We still stick to the traditional restaurant base, which customers need to sit-in
the restaurant in order to eat there or take away. Reward system such as
membership cards will be one of the important bridge between the business and
customers which they can collected points to exchange a free meal in our LAT JIU
PAN MEE. This will encourage customers to come and sit-in our restaurant and
enjoying the delicious meal.

Quality Control

Many popular restaurants neglected this small aspect once their business
improves. Thus, leading to a downfall of their business not long later. Therefore, LAT
JIU PAN MEE would have strict quality control of the restaurant by requesting the
chef to taste the food weekly and will also spot check the restaurant often to ensure
all the noodles served remains as they should be.

Supplier

In order to ensure the stocks and maintain without interrupted, suppliers need
to restock all required material with maximum duration of 48 hours after being
ordered by the restaurant and delivers to the restaurant. Suppliers also need to
maintain and ensure the quality of stocks before delivering. All of the rules on the
contract must be followed by suppliers within contract duration else penalty will be
served.

Chef

Chefs are the core of the restaurant. All of the meals serve to the customers
are prepared by them and this serving would be reviewed by customers. The
activities done by chef daily is prepared food based on customer orders and produce
the meals with same consistency and portion every time. The quality of meals refers
to the level of half boil egg and sauce added into the meal and the portion must be
the same every time they serve customers. Also, the chefs need to constantly alert
the person in charge of the remaining stock in the restaurant to prevent business
interrupted by running out of stock.

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Counter

Counter is the revenue stream holder in the restaurant. Key activities for the
counter is to receive bill from customers, calculate bills and making change to
customer without any errors. After business ended for that day, counter need to total
up daily income and note down. When chef reports about shortage of stock, the
person in charge will need to make order to suppliers and keep tracking about stocks
delivery. Every bill must be calculated accurately as any errors could result in lost of
money and faith from customers.

Servant

Servant act as important roles in the restaurant base business because they
are the one who interacts the most with customers. The key activities for servant is
help serve customers by distributing menu to them, and receiving their orders and
pass to chefs. After all food prepared, servants will delivery ordered meals to
customers. Once the customers left, they need to clean up the table quickly and
ready for next customers. Every day before and after the business, they need to help
to set up the restaurant. The cleanliness of restaurant is maintained by them by
cleaning the tables and mopping the floors.

Value Proposition

In the successful business plan, value proposition is one of the key to ensure
business work smoothly. Value proposition is the marketing statement that conclude
why customers choose LAT JIU PAN MEE as their dining place. In a restaurant,
image is very important which helps its business to sustain and expand slowly. Once
the restaurant is a success, it can produce loyal customers.

Company Business Value

LAT JIU PAN MEE set few business value for its restaurant. In the concept of
business, LAT JIU PAN MEE practices the saying that customers is always right
because they are the one paying. LAT JIU PAN MEE is open to all comments and
feedback to ensure the restaurant continues to upgrade its service from time to time.
LAT JIU PAN MEE welcomes all kinds of races as long as they enjoy pan mee
noodles. Lat JIU PAN MEE also assures the customer that the noodles will be
delicious.

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Product Services to Solves Problem Issue & Satisfy Needs to Each Customer
Segment

In surrounding Sunway Giza and SEGi University at Kota Damansara, there

are many races of people around. As Chinese traditional food, pan mee have non-
halal ingredient and result in many Muslim races cannot enjoy this delicious meal.
Base on this research, A eliminate the traditional mind while propose new halal pan
mee was proposed to eliminate the traditional mind-set that only Chinese can eat
pan mee. With this attributes added, LAT JIU PAN MEE hopes to increase
customers base towards Muslim races and they will be able to taste Chinese
traditional food. This may also help in promote unity of all races in Malaysia.

Besides that, there were many office and some construction sites carried on
nearby Sunway Giza. Office worker and construction site labour often eat at the
surrounding area for their convenience. The workers are big eaters, the competitors
of LAT JIU PAN MEE served noodles of small portion and high price and they did not
get to enjoy their meal well. LAT JIU PAN MEE aims to solve this problem once in for
all by providing more affordable price with a generous portion to the customers, at
the same time adding noodles is optional in the menu.

The word of “Lat Jiu” in the brand name Lat Jiu Pan Mee stand for chilli in
mandarin word. Based on research, chilli is the vegetables that full of vitamin
C(“Spice up your health with chilli”, 2016). The level of vitamin C contains in chilli can
up to seven times than an orange. On the other hand, chilli also benefits from
fighting sinus congestion, aiding digestion and helping to relieve migraines and
muscle, joint and nerve pain of human. Moreover, chilli also good source of vitamin A
and E, B-carotene, folic acid and potassium. Chilli also can help in reduce food
micro-organism, promoting metabolism rate for loss weight and release stress. In our
restaurant, all food is not serve with chilli, while a tin of special made dry chilli paste
will put on every table and customer may add the portion based on their needs. For
spicy lovers, they can enjoy their meals with full of chilli while others can selecte their
needs portion.

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Similar Product Exists in Market but Added Features & Attributes.

At the surrounding area of SEGi university and Sunway Giza at Kota

Damansara, there were two similar product shop which is Chilli Pan Mee and JoJo
Little Kitchen. LAT JIU PAN MEE concept is almost similar to these two restaurants
while LAT JIU PAN MEE innovate with special green noodles made by vegetables
and new features and attributes.

LAT JIU PAN MEE provides halal food which enable all races to enjoy this
Chinese traditional food. All of the meals will be serve with generous portion and
more affordable prices. For those customers who have desire to have a even bigger
portion of food, they can top up their meals with bigger portion, or add-ons their
meals with various type of side dishes.

In Sunway Giza, Kota Damansara, most of the customers will be office

workers. The usual office workers will tend to have a short lunch break. Based in
their needs, LAT JIU PAN MEE assures that all meals will be serve in a short time so
they can have their meals without waiting for long queue.

Different from traditional pan mee shop, LAT JIU PAN MEE will provide
variety choice of pan mee like curry pan mee, chicken pan mee and many other
choices for customers to try. LAT JIU PAN MEE also provides many side dishes like
chicken wings, fish cake and others for customers to eat together with their meals.

With those features and attributes added, LAT JIU PAN MEE have the
confidence that their business will be strong and able to compete with those
traditional pan mee shop.

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Customer Relationship

There are various types of business running around the world while millions of
methods are used to introduce their products and services. There are 2 types of
campaign called transactional and relational. Transactional is the method that
focuses on product sales while relational is focus on creating
relationship("Transactional Vs. Relational Marketing", 2018).

Customer relationship is the process and manner by as a business develops,

establishes, and maintains relationships with its customers. Every business income
fluctuation is depending on their quantity of customers who supports their business.
This is why customer relationship are very crucial and essential to develop.

LAT JIU PAN MEE emphasis on relationship marketing rather than

transactional marketing. Relationship marketing will have broader and longer-term
goals compare to transactional marketing. This type of marketing is used to focuses
on developing a long-lasting relationship with customers to secure the business in
future. Relationships as a focus of marketing strategy aids in the understanding of
consumer needs, which is useful to implement profitable exchanges (“Relationship
Marketing vs. Transactional Marketing”, 2012).

There are few steps of actions LAT JIU PAN MEE take into its business which
help it to maintain long-term customer relationships which included price, promotion,
cleanliness and feedback. Unlike others pan mee shop which aims for high profit,
LAT JIU PAN MEE provides more economic and affordable prices with generous
portion to allow customers have their meals happier. Besides that, LAT JIU PAN
MEE practices reward system, which there will be a membership card to allow
customers to gain and collected point and exchange for a free meal. Customers can
get bonus from enjoying meals and redeem their bonus when reach the points.

Besides that, LAT JIU PAN MEE ensures that the restaurant will provide a
clean and safe environment for the customers. All workers will need to maintain
cleanness of the restaurant in order to get reward of grade “A” from cleanness
council. All food will be prepared with halal, safe and clean with quality confirmed to
customers so they are willing to dine-in our restaurant again.

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 Moreover, LAT JIU PAN MEE adheres to the phrase of “Customers is always
right.” Without customers, any business will be collapse no matter how they
management works. So, a feedback comment box will be placed inside our shop and
allow all customers to comment their feedback about the services either positive or
negative. This feedback from customers will give a direction for the business in
future to make any improvement.

Customer Segment

Targeted Customer, 12-35 years old

Family, Others,
15% 5%

Students from
universities
around, 30%

Surrounding
Office workers ,
50%

Customer segmentation is when a customer is separated into group of

individuals that have similar traits such as gender, age, social, income and spending
habits.

Segmentation of customers depends heavily on determining various

differentiators that separates each customer into different groups that can be
targeted. A customer’s information such as race, age, education level, where they
live, lifestyle, race and behaviour tendencies are taken into consideration when
segmenting customers. By using this strategy, we can target specific people.

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 This model of segmentation allows us to allocate marketing resources
effectively and maximizing all opportunity. When a group of customers is sent
personalized messages as part of a marketing mix that is designed around their
needs, it's easier us to send those customers special vouchers which are to
encourage them to come and dine in more often. Customer segmentation also takes
customer service and customer loyalty into account. Vouchers sent out to customers
using customer segmentation tends to received better feedback by the customers as
compared to impersonal brand messaging that does not acknowledge any kind of
customer relationship. By using customer segmentation, LAT JIU PAN MEE can also
stay ahead of competitors in each specific sections of the market and determining
potential customers that could be interested (“What is customer segmentation”,
2015).

After all, LAT JIU PAN MEE restaurant targets customers from any races and
gender. As long as they had a liking in spicy food, they can enjoy here. The
combination of pan mee and chili lover is inspired by the founders as they like spicy
pan mee. Our restaurants are also halal certified.

For such adventurous food, the age group that we targeted are 12- 35 years’
old which are teenagers and adult. The price of the food is less than rm10 per bowl
of noodle which is usually the price this customer segment is willing to pay for a bowl
of noodle. There is also no specific gender for this business as it is a food that can
be enjoyed by all genders. The content of the noodle is also very well balanced as it
has fibres, halal meat, eggs and special sauce which provide a balance diet meal.
Moreover, studies also said that eating spicy food can reduce weight (“Weight Loss
Foods: Eat Spicy To Help You Achieve Your Weight Loss Goals”, 2015).

Furthermore, the price will be set to RM7 per bowl not inclusive of any extra
toppings. Within the RM10 price limit, LAT JIU PAN MEE will be easily comparable
to other similar restaurants who charges around rm8 to rm10. LAT JIU PAN MEE
services also provide many types of choices which includes many customable
options for the customer to customise their meal. When a customer has a special
request to remove whichever ingredient they don’t want in the meal, it can be done.
Furthermore, LAT JIU PAN MEE also provide member card for the customer to allow
them to accumulate points to redeem promotions. With the above services, customer

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segmentation would be widening and LAT JIU PAN MEE would be able to
accommodate many type of customers favour especially those who would want a
achieve cheap, fast, generous portion and multiple choice restaurant.

Key Resources

Typically, there are 4 types of resources we need to focus on, which are
categorized into physical, intellectual, human and financial.

Firstly, a business would need to source for physical resources. The first thing
would be the location. LAT JIU PAN MEE will be located at Sunway Giza which is
populated with office workers and people looking for delicious food. Once the shop
location is decided, the shop facilities such as table, chair, kitchen and apparatus
would need to be taken into account. LAT JIU PAN MEE could order these in bulk
from various dealerships to obtain a special price it is order in quantity.

Furthermore, LAT JIU PAN MEE would need to acquire intellectual resources.
LAT JIU PAN MEE have a set of recipe which they produced to make this restaurant
a success. LAT JIU PAN MEE have a special made dry chilli paste and pan mee
sauce which does not like any other competitor in the market. The half boil egg that
LAT JIU PAN MEE serve together with the noodle also requires special training to
the staff to ensure that all eggs are exactly half boil and have the same consistency.
LAT JIU PAN MEE is aware that eggs lovers out there are very particular about this
and have the confident to make it just the right half boil egg for them.

Besides that, LAT JIU PAN MEE business would definitely require human
resources and man power. LAT JIU PAN MEE would implement one cashier for the
shop to consistently manage and receives payment from customers. Secondly, LAT
JIU PAN MEE would hire 3 chefs to cater with the demand and might even need
more if the business is a success. Each chef will undergo high evaluation to meet the
strict requirement for the restaurant. A bad chef would be a leading downfall to the
restaurant business. Then, 4 more servants or waiters would be hired to serve the
food to customers. All of the waiters will be given a training of serving and ethics of
cleanliness will be taught onto them to ensure the business runs smoothly without
any unhappy customer.

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 LAT JIU PAN MEE would also need to manage would be Financial resources.
We have decided to direct some of the financial resources for the advertisement,
shop rental, utilities, food ingredients and labour. For advertisement, LAT JIU PAN
MEE would be spreading flyers and creating a Facebook page and use their
advertising to reach its potential customers.

Procurement (recommendation to the factories supplier of noodle)

These are the requirements demanded by LAT JIU PAN MEE:

• Vegetarian noodle
• Green noodle colour
• Elastic noodle
• Fresh noodle
• Halal

Distribution channel

Distribution channel is the way a message or information can be deliver or

made aware to all of us or until it reaches the end consumer. This includes retailers,
wholesalers and also the internet. Advertising online in websites or publishing our
restaurant on newspaper also could be an effective channel for our restaurant to
reach consumers.

One of the marketing that LAT JIU PAN MEE emphasized on is called Cost
leadership strategy. Cost leadership is when a company leads the market by making
itself as the cheapest restaurant or provider for a product in a competition. A high
level of cost management went into thought and planning just to ensure that LAT JIU
PAN MEE can provide affordable food as per compared to our competitors. LAT JIU
PAN MEE order and signed food stock and ingredient stocks contracts in large
quantity to be able to reduce the final cost of the price to the consumers. Although
this would result in higher initial cost for our business, but in the long run, it definitely
benefits.

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Mass Marketing
Mass marketing is a strategy in marketing which neglects market segment
differences and uses mass media and distribution to introduce the prod services or
products to the market(“What is Mass Marketing? - Simplicable,” , 2017).

i) Giveaway and Contest by LAT JIU PAN MEE

• The first 100 bowls of noodles on the opening day will be free of charge.
• A small competition to see who can eat the most chilli in a bowl of noodle will also
be held.

ii) Social Media

• Invite social influencers to attend to the opening and have a review on the food and
post it onto social media.
• Promotes the food through the company’s official Facebook page.

These are the marketing strategies can be used in the starting of the
business. Both mass marketing represents a more suitable way instead of direct
marketing towards a restaurant business. However, due to the limited budget
constrain, some of the channels are not suitable for the starting of LAT JIU PAN
MEE business. For an example, advertising through radio or television and
collaboration with famous brands which require a high initial cost of business.
Though it will still be considered once the business is on track and depends on the
budget of the company. Therefore, social media will be the first choice due to its
feasibility to promote the products and services to the public in the starting of
business.

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Cost Structure

Cash Model

Marketing Supplier Others

Social media. Noodles. Shop rental.

Flyers Ingredients. Utilities bill.
Labour

Estimate cost:

1.) Marketing
• Social media advertising ( RM 100 / month)
• Flyers ( RM 300 / month )
2.) Supplies
• Noodles ( RM 1500 per month )
• Ingredients, eggs, meat and etc ( RM 1500 per month )
3.) Others
• Shop rental
o RM 5000 / month
• Utilities bill
o Electricity and water ( RM 1000 / month )
• Labour ( no. of workers are subjected to change once business is on
track)
o 1 chef ( RM 2500 / month )
o 2 waiter ( RM 1500 / month )
Approximately : RM 13,400 / month is needed to run this business.

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Revenue Stream

A revenue stream is actually another meaning for income. It sounds more

advance and complicated than “salary” and was often used for investment talks
where assets are told to have a “revenue stream in the future”.

LAT JIU PAN MEE restaurant’s main revenue stream would be called
Transaction revenue, which is the sales of goods with one-time customer payments
and the total sales of food we sold in a year to customers which is direct and does
not goes through any layer.

Any extra opportunity to enlarge LAT JIU PAN MEE business would be adding
variety for food and providing services like delivery but these would only be done if
the business is a success and are able to cope with higher demand. LAT JIU PAN
MEE ultimate goal would definitely be selling franchise out to the others and
ultimately creating its own noodle as compared to getting it from a supplier at the
moment.

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Conclusion
LAT JIU PAN MEE is extremely competitive in the noodle industry.
Competitors like Chilli Pan Mee and JoJo Little Kitchen are the benchmark of the
restaurant. Only companies that can fulfil the cravings of the hungry customers will
harvest the business opportunity in the food industry.

Founder of LAT JIU PAN MEE believes that once the restaurant is well
known, earning approximately RM 20,000 per month per shop is possible and is set
to reach this goal in 3 months time. All factors have already been considered by LAT
JIU PAN MEE and is ready to strike the industry with full force by planning to launch
5 separate franchise within 2 years after it started..

Huge initial start-up cost is needed to get a head start of the competitors.
Franchies selling would be the correct path to solve the huge capital cost debt
needed. Once the company gets a few franchise on going, LAT JIU PAN MEE would
be able to dominate the industry for many years to come.

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REFERENCE

1. Transactional Vs. Relational Marketing. (2018). Retrieved from

https://smallbusiness.chron.com/transactional-vs-relational-marketing-
20763.html.

2. What is Mass Marketing? - Simplicable. (2017). Retrieved October5, 2018, from

https://simplicable.com/new/mass-marketing.

3. Definition of direct marketing. (2016). Retrieved from

https://www.bakergoodchild.co.uk/a-definition-of-direct-marketing/.

4. Relationship Marketing vs Transactional Marketing. (2012). Retrieved from

https://yourbusiness.azcentral.com/relationship-marketing-vs-transactional-
marketing-5393.html.

5. Definition of customer segmentation. (2015). Retrieved from

https://searchsalesforce.techtarget.com/definition/customer-segmentation.

6. Key Partner In Business Model Canvas. (2015). Retrieved from

https://www.cleverism.com/key-partners-in-business-model-canvas/.

7. How do I use the Key Partnerships building block of the Business Model
Canvas?, ,(2009) Retrieved from
https://strategyzer.uservoice.com/knowledgebase/articles/1194355-how-do-i-
use-the-key-partnerships-building-block-o.

8. Weight Loss Foods: Eat Spicy To Help You Achieve Your Weight Loss Goals,
2015. Retrieved from https://www.bodyandsoul.com.au/nutrition/nutrition-
tips/spice-up-your-health-with-chilli/news-
story/93bfed3669d1bbbaf3d41f16ef93e790.

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