Business Plan (smoked Fish)

UNIVERSITI TEKNOLOGI MARA PERLIS

SEMINAR ON PROCESSING AND MARKETING OF MARINE PRODUCT

Titled:

SMOKED AQUA ENTERPRISE

PROPOSED BY EVALUATOR DATE

: R B Kennedy Enis Amin Hairy Mohd. Hassan :

Miss Rosnani Nazri

:

9 October 2010

CHAPTER 1

INTRODUCTION

1.1

Name of company

The name of our company is Smoked Aqua Enterprise.

1.2

Form of company

Smoked Aqua Enterprise is form of partnership and it is a private limited company.

1.3

Location of company

The location of the business is at Kuala Perlis Industrial Estate. The selection of our business location is based on several factors: a. High raw material supply. b. Industrial area for fish food product. c. Excellent distribution chain.

1.1

Market outlook

Our business is focus on the in-the-style of traditional food industry called smoked fish. The smoked fish industry has been commercialized in the Malaysian market such as smoked catfish and smoked tilapia. However, the numbers of entrepreneurs was low and this industry was not performing well as expected because there was insufficient strategy in their marketing. Overall, there are not so many competitors in this industry, most of the smoked fish’s entrepreneurs selling their product through stalls at the market or sell it at their house. The methodology is not effective as not many people will realize their existence, only those who knew the makers will know about the smoked fish. In short, the smoked fish industry is just a small industry that needs more exposure so that the smoked fish lovers can easily get the product.

1.2

Our product

Smoked Aqua Enterprise only product is smoked seabass where it is a great meal or appetizer in Malaysia. Our smoked seabass is added with special ingredients such as brown sugar, lemon juice, garlic powder, onion powder, allspice and white pepper for better taste and smell.

CHAPTER 2

BUSINESS PLAN

2.1

Introduction

Our business is focus on the in-the-style of traditional food industry called smoked fish. The smoked fish industry has been commercialized in the Malaysian market such as smoked catfish and smoked tilapia. However, the numbers of entrepreneurs was low and this industry was not performing well as expected because there was an insufficient strategy in marketing. Overall, there are not so many competitors in this industry, most of the smoked fish’s entrepreneurs selling their product through stalls at the market or sell it at their house. The methodology is not effective as not many people will realize their existence, only those who knew the makers will know about the smoked fish. In short, the smoked fish industry is just a small industry that needs more exposure so that the smoked fish lovers can easily get the product.

2.2

Main business

Our main business activity is producing smoked seabass.

2.3

Factors influencing choice of business i.

To promote the smoked seabass on a large scale

ii. To attract the youth generations customers by adding many interesting flavours. iii. To obtain incredible profit through a very reasonable cost of production iv. Low level of competition v. Easy to penetrate the food industry market vi. To change people’s perception on what smoked fish is.

2.4

Business potential

Our business has a lot of potential where it is a new product. The products are not fully available in the market and competitions are low. Therefore, we will out-stand others easily in this industry. Customers will know our existence and come to get the smoked seabass from us as we commercialized the products. We need to invest heavily on our marketing plan to create brand awareness.

2.5

Company structure

2.6

Operation management

Operating is the most important element whenever one wants to start up business. It is one of the most important parts in business plan. Without a good operation plan, Smoked Aqua Enterprise will encounter problems such as inequality production, inconsistent production, failure in delivering our product, and so on. To avoid this situation, management of the Smoked Aqua Enterprise should be done perfectly. Management plays a key role in successfully smoked seabass’s process and the most crucial part of the whole production process.

Smoked Aqua Enterprise is producing smoked seabass to the whole consumer in Malaysia and perhaps to neighbouring country such as Indonesia, Thailand and Singapore. As an industry, it will be essential through experience, research and knowledge, we learn how to produce smoked seabass in commercial way instead of the traditional ones. Commercial way here means we produce smoked seabass massively and using modern technology.

CHAPTER 3

OPERATIONAL PLAN

3.1

Operation goals

The operation goals of Smoked Aqua Enterprise are as follow: a. Produce high product’s quality.

b. Produce sufficient production. c. Comply with HACCP and GMP standards. d. Minimize use of resources. e. Provide the highest level of safety, health, security and environment.

3.2

Factory layout

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Figure 3.1 Factory layout 3.3

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Processing flow Use only fresh fish or fish that frozen immediately after catching and thawed. Average weight of fish is range 0.8to 1.0 kg.

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Brining at 800: 1 litre of water, 120 g of salt, 60 g of brown sugar, 20 g of lemon juice, 4 g of garlic powder, 4 g of onion powder, 4 g of allspice and 2 g of white paper. Time of brining is approximately 3 hours.

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Seabass will be lightly rinsed in fresh water after removed it from the brine for drying. Then, the seabass will be hanged in smoke oven prior to smoking.

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Figure 3.2 Processing flow

3.4

Packaging

Our packaging is design to attract the customer’s attention and encouraging sales by using thermoset plastic. The packaging are semi-transparent, chemically stable (proven to be safe),

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good gas barrier and have a high tensile strength. The packaging also will be labelled that provides information about the manufacture, the contents of the products, the nutritional facts and halal logo (will be applied before operation).

3.5

Finish product

3.6

Pricing

Smoke Aqua Enterprise aims to create a new product that is not only affordable but also marketable. We use cost based pricing because it is the simplest and most commonly used pricing strategy. Cost based pricing is used on the total cast of the product plus a standard mark- up.

Table 3.1 Estimated total cost per unit (kg)

Material

Price (RM/kg)

Fresh seabass

11.00

+ operation cost (30%)

3.30

+ additional cost (5%) Total

0.55 14.85

Proposed price = Total cost per unit • Mark-up (50%) = RM 14.85 • RM 7.43 = RM 22.28 ≈ RM 22.50 / kg

CHAPTER 4

MARKETING PLAN

4.1

Description of product

The success of a business venture depends very much on the ability of that business to offer the product that is demanded by the target customer group. In order to meet customer demand, our product-smoked seabass, will fulfil the needs and wants of our customer group. In brining ingredients, there are special ingredients such as brown sugar, garlic powder, onion, lemon juice, allspice and white pepper for better taste and smell. Moreover, only selected types of wood will be used in the smoking process which to ensure the product’s quality. The product’s packaging is attractive and simple.

4.2

Marketing environment

There were two type of marketing environment that has been identified. They are:

Table 4.1 Microenvironment

Microenvironment

Description

Company

✔ Improve relationship between top and middle management. ✔ Providing motivation such as monetary reward. ✔ Fulfilling workers basic needs and wants.

Supplier

✔ Build effective relationship between supplier and company. ✔ Monitoring the price and availability of raw materials.

Marketing Intermediaries

✔ Select only trusted reseller. ✔ Improve marketing channel.

Customers

✔ Fulfilling the needs and wants of customer.

Competitors

✔ We will conduct a SWOT analysis and build strategic marketing mix.

Public

✔ We will consider several group of public that could give impact or interest to our company.

Table 4.2 Macroenvironment

Macroenvironment

Description

Natural

✔ Sea pollution will effects the marine organisms and could cause shortage in raw materials.

Cultural

✔ Lifestyle of healthy and sustainability (LOHAS).

Technological

✔ Technology has contributes less contamination toward raw material, processed product and finish product.

4.3

Marketing orientation

Table 4.3 Marketing environment

Marketing concept

Description

Production concept

✔ Improve production and distribution efficiency. ✔ Considering demand versus supply. ✔ Maximize profit with minimize production cost.

Product concept

✔ Halal product. ✔ In-the-style traditional food. ✔ Continuous product improvement.

Selling

✔ Avoid overcapacity. ✔ Evaluate size of selling and promotion effort.

Marketing concept

✔ Maximize influence towards customers with minimize marketing cost. ✔ Fulfilment the needs and wants of customers.

Societal marketing concept

✔ Change the mind-set of public that smoked fish could be turn to health foods. ✔ Consumers want a food that save time, energy and give health foods.

4.4

Marketing strategy and marketing mix

4.4.1

Product

a. Brand

We use Smoked Seabass as our brand name which reflects the tasty, benefits and qualities of our smoked seabass. It is also easy to pronounce, recognize and remember.

b. Quality Our smoked seabass is freshly made and inspected to maintain its quality. It could last for more than a month if store in cool place. We also use a quality flavours to give the real-taste of each flavours.

c. Design We design our smoked seabass in simple way which is in attractive packaging to fulfil the needs and wants of the customers.

4.4.2

Price

The price that we have decided is considered reasonable after evaluation of all the factors involved which is RM 22.50/kg.

4.4.3 Promotion Smoked Aqua Enterprise will ensure that its product is well received and promoted in the best ways possible under the range of the budget. Besides that, the employee must be mentally and physically focused on producing a quality product and pleasing the customer. Among the steps that we are going to undertake are: i.

The product will be advertised through the medium of radio broadcasting which is played daily for a period of times, in newspaper (once a week every on Sunday). It is

important to grab the audience attention during their leisure time. Research proves that auditory memory is more retainable than visual memory.

ii. We will advertise our product using hanging bunting which to let the customers aware

of the existence of our product. iii. Smoked Aqua Enterprise will be engaging an agreement with Malaysia tops supermarket such as Giant and Tesco to market our product. This agreement will be a mutualistic benefit based. iv. Internet is the most effective marketing medium where it is easily access. So, to take

advantage of the effectiveness of the internet, we have created our own website to promote our company to the customers. In here, the customers can get a lot of information about our company and our product.

4.4.4

Place

Smoked Aqua Enterprise will manufacture its products itself and distribute in many channel. The forms of the distribution channel that we use are manufacturer to intermediary and manufacturer to consumer where all of these channels will giving us advantages to promote and sells our product quickly.

4.6

Market in Malaysia (SWOT analysis) Strength ✔ Using a modern technology in production. ✔ High demand in marine food. ✔ Government support. ✔ Using additional ingredients for better taste and smell.

Weakness ✔ Inconsistent production cost. ✔ Inconsistent raw material supply. ✔ Fresh company meaning there is no market yet.

✔ Using attractive packaging. ✔ Reasonable price. Opportunity

Treat

✔ Export to neighbouring country.

✔ Competition.

Figure 4.1 SWOT analysis CHAPTER 5

CONCLUSION

Smoked Aqua Enterprise product is highly profitable and marketable. There are many reasons to support this statement. Firstly, the product has a better taste and smells that unforgettable because of the ingredients used to produce this product.

Smoked Aqua

Enterprise aims to be the pioneer to the business of smoked seabass production on a large scale. The goal is possible because there are not many competitors to compete with us. In the future, we hope the product will reach into further destination outside Malaysia.