ABOUT LENDU PREMIUM LODGING

ACKNOWLEDGEMENT

In the name of Allah, the Most Gracious and Most Merciful

First and foremost, we would like to express our undying gratitude to the Almighty Allah SWT for giving us a chance to breathe and lending us the strength and patience in getting us through our assignment without any major hiccups. Without Your blessing, we have never been able to complete this assignment as dutifully as we did.

Secondly, we would like to give a huge dollop of appreciation towards our lecturer, Madam Khairunnisa Binti Abd Samad for guiding us throughout this whole process. Without her guidance we would not have been able to complete this assignment.

Thirdly, we would like to thank our parents for their endless support and love. They are the reason to why we are here today. We would not be standing here today if not for their support and love.

Lastly, we would also like to extend our appreciation towards our classmates who have helped us along the way. Without their help we wouldn’t have finished this assignment. May Allah bless them.

Thank you.

EXECUTIVE SUMMARY

LENDU PREMIUM LODGING is a business that involve in process of innovation and new venue creation through four dimensions which includes individual, organization, environment and institution. In order to form a business, there are quite numbers of phase that should be understood and developed by entrepreneur.

LENDU PREMIUM LODGING is a business which we provide accommodation and hospitality towards the students. This business is a sole proprietorship business. Capitals of this business are RM 200,000.00.

LENDU PREMIUM LODGING is a business that mainly focuses on service towards the student. We discover that UiTM Lendu have limit the amount of student who get the college. Therefore, we have decided to build up this business to provide the service to the students who didn’t get college in UiTM. So they can find accommodation from us.

Finally, we are planning to expand Malaysia’s Small and Medium Enterprise (SME) through this field of business and we aim to become one of the Malaysia’s young and leading entrepreneur in the lodge service through the breakthrough service in international market.

1. INTRODUCTION

1.1. Name of the company

              Lendu Premium Lodging is a company established to provide a place for customers, specifically for students in Uitm Alor Gajah, Melaka. Our company has professional workers to provide the best services to our customers, especially to students who failed to applied or who couldn’t get into hostel. Our company aims to serve our customers with a premium lodging which provides many facilities to the students compared by others. Customers will be served with fully equipped furniture starting from their rooms, bathroom, kitchen and living room. Since our biggest competitors would be rental houses, they normally would not provide their houses with fully equipped furniture. So, our company is offering something different in order to attract more customers. Furthermore, a lot of students who couldn’t get into the hostel had to pay a big amount of money for their rental, but less facilities have been provided to them. Therefore, we are here to acknowledge people about our company which provides a better accommodations and facilities with much better prices. 

1.2. Nature of Business

Our company nature of business is provides facilities towards the customers especially students of Uitm Alor Gajah, Melaka. Our company are different with other rental houses which we provides a better accommodations and facilities to them. Our uniqueness in our services is we provides more luxurious accommodations and facilities which we called as premium. With our services that provides much better facilities towards the students, it will satisfies their demand.

1.3.  Industry Profile

The industry that our company involved is a premium lodging industry. The reason why we choose this industry is because we want to spread our idea of the premium lodging. Furthermore customer can enjoy our services in our company which we provide most of the thing that they need in their daily basis. This is because we provide the best facilities for the students to live and study comfortably without worrying about a thing. To have a good and high quality services, Lendu Premium Lodging only use a very good material and products for their comfortability in our rooms. Our target customers are for the students of Uitm Alor Gajah, Melaka.

1.4. Location of the business

We choose to locate our business at KM 26 Jalan Lendu, 78000 Alor Gajah, Melaka.

1.5. Date of business commencement

     Lendu Premium Lodging will incorporates on 1 November 2018 and has being registered on 1 January 2018. For setting up purposes, we took about 3 months to find and deal with the supplier of the raw material for better prices and equipment in order to operate the business successfully.

1.6. Factor in selecting the proposed business

 We choose our business because we see a chance in making profit with our lodging services. Besides that, we choose lodging services because we want to provides places for students who couldn’t managed to stay in hostel. Moreover, the places are only opposite of the Uitm Alor Gajah, Melaka which will ease their journey to the campus. We will be happy to provide the best services which can give a great satisfaction at affordable price to the people.

1.7. Future prospects of the business

The first our future prospect of business around in 3 years from now we are going to open our branch in entire Malaysia and provide quality of services with a good satisfaction of services to all students beyond border. Furthermore, we can introduce them to our idea of premium lodging.

Moreover, the future prospect of our business is we want to improve our services by provide more facilities and accommodations to the students which will give the best and satisfaction to them.  Besides that we also want to make the improvement of making our services by using a very good materials and high quality furnitures, as well as reducing the cost of materials.

2. PURPOSE

There are several purposes of making business plan which are as a guideline for day to day management of the business, to convince related parties in order to raise capital and obtain support for the venture, to be able to distribute business resources more effectively, to study and evaluate the feasibility of business.

2.1. To evaluate the project viability and growth potential

All the information that has been gathering and analysis as part of preparing the business plan, it can show an early indication for the capability of the projects. Thus, the entrepreneur can make a better choice before investing in the proposed venture. We use this business plan as a guide to see whether the business will succeed in future. This business plan includes company background, owners or partner’s background, marketing strategy, operations plan, location of business, organizational plan and also the most important in organizing the business which is the financial plan of the business. From that, we can predict the market acceptance of our service and set out what steps should be taken to increase the growth of the business.

2.2. To apply for loans or financing facilities from the relevant financial institutions

This business plan is prepared in order to convince the banker and investor to have confident in our business to raise capital and gain support for the venture. We need investors to raise fund for a particular purpose such as buying capital, equipment, management of the company and upgrading certain things to achieve a better quality in providing services.

This business plan also being drafted before we finally made a full excellent report so that Lendu Premium Lodging will get the financing it needs in order to start its business. Lendu Premium Lodging has made discussions with shareholders and achieve consent to collect RM15, 593 from all the shareholders in the Lendu Premium Lodging company. Each shareholder agreed to contribute RM2, 768 per person for the business, except for the Financial Manager, she contributed RM10057. We will also apply for bank loan from Bank Pertanian Malaysia Berhad for the amount RM22815.

 The accumulated capital provided by each shareholder in the company and from the bank loan which the sum is RM38, 408 may be enough for now and the next 3 month to open up a shop and purchases all the company asset, office equipment, kitchen appliances and the food items stock to make bayam chips and to pay rent preliminary for the first 3 months. We can get all this stuff from trusted suppliers and they agreed to give the best offer ever and lowest prices in an effort to support local company.

2.3. To act as a guideline for the management of the proposed business

We also use this business plan as a guide to managers for business success in future. Lendu Premium Lodging have all the secrets to becoming one of the leading lodging company. We have set out our own motto, mission and vision for success. This business plan includes company background, owners or partner’s background, marketing strategy, operations plan, location of business, organizational plan and also the most important in organizing the business which is the financial plan of the business.

2.4. To allocate business resources effectively

Lendu Premium Lodging will fully utilize all the assets so as to achieve double profit. The benefits that can be given to shareholders and the rest will be used to upgrade the business and we are going to open more than one branch in the future. We believe in what we do and we completely confident that Lendu Premium Lodging will be a successful.

1. COMPANY BACKGROUND

Name of the Company	Lendu Premium Lodging
Business Address	KM 26, Jalan Lendu, 78000 Alor Gajah, Melaka.
Website	apizatan11.wixsite.com/lendupremiumlodging
E- mail	lendupremiumlodging@gmail.com
Telephone Number	03-90113457
Fax Number	03-90112345
Form of Business	Partnership
Main Industry	Lodging and services
Main Activity	Providing services
Date of Commencement	1 January 2018
Registration Number	001773825-M
Name of Bank	Maybank Berhad
Bank Account Number	1642-5856-6509

3.1.1 Vision

To provide the best lodging services worldwide and maximize customers satisfaction within 7 years.

3.1.2 Mission

To be a leading in producing lodging services. We exist to attract and maintain customers and strive for the higher rank of quality among premium lodging services, while we bring happiness to customers when staying at Lendu Premium Lodging and to achieve a better respond from the customer by provide a good services in 7 years ahead.

3.2Organizational Chart

3.3 Logo and Motto

3.3.1 Logo

Description:

· Text:

Lendu Premium Lodging: The official name of our ompany. It symbolizes our main idea of making a premium lodging. We use the word ‘Lendu’ because it located in Kampung Lendu, Alor Gajah. While ‘Premium Lodging’ means that our company provides services for the customers to the fullest.

· Pictures:

House Appliances: An illstrated image of house appliances that we provide in our company.

· Colours:

Yellow: It represents healthy lifestyle.

3.3.2 Motto

“Your dream, our vision.”

“Your dream, our vision”. This motto represents the determination of our company to provide the best lodging services with a touch of art and love to our precious customer. It also magnifies the need of our company to give people the services that is affordable for customer. With the best services, it will guarantee our customer most satisfaction. We assure that our Lendu Premium Lodging will give them the satisfaction.

BANKING DETAILS 

Bank                                  : AGRO BANK

Account Number               : 1642-5856-6509

Partnership Own Capital   : Fitri Aimal Bin Nasaruddin                 RM2, 768

Muhammad Hafiz Bin Atan                                                             RM2, 768

Muhammad Syahmirul Hon Bin Ridzun Hon                                 RM10, 057

Bank Loan                                                                                       RM22, 815

                                                                                                          _________

                                                                                           TOTAL RM38, 408

1. LOCATION OF BUSINESS

BUSINESS LOCATION

2. DESCRIPTION OF PHYSICAL SITE

ADDRESS	NAME OF BUILDING OWNER	RENTAL PAYMENT	RENTAL RECORD
KM 26, Jalan Lendu, 78000 Alor Gajah, Melaka.	Anthony Lee	RM 3000	5 years

4. BASIC EQUIPMENT AVAILABLE

NO	TYPES	UTILITY
1.	Water	Business and operational purpose such as to clean all the cooking equipment.
2.	Electricity	Business purpose
3.	Telephone line	Call customer and receive call from customer
4.	Internet Line	To check online order and promoting product

ADMINISTRATION PLAN

8.2 MANPOWER PLANNING

POSITION	NUMBER OF PERSONNEL
CHIEF EXECUTIVE MANAGER	1
FINANCIAL EXECUTIVE MANAGER	1
OPERATIONAL EXECUTIVE MANAGER	1
MARKETING EXECUTIVE MANAGER	1
ADMINISTRATION EXECUTIVE MANAGER	1
HUMAN RESOURCE EXECUTIVE MANAGER	1
TOTAL	6

In the company, they were 6 managers which handling chief executive manager, financial, operational, marketing, administration and human resource executive manager.

8.3 SCHEDULE OF TASK AND RESPONSIBILITIES

POSITION	TASK AND RESPONSIBILITIES
CHIEF EXECUTIVE MANAGER ( FITRI AIMAL BIN NASARUDDIN )	· To ensure the business are done towards the business objective. · To monitor and ensure all business operation are under control. · Lead staffs to make sure the product in company is going smoothly. · To ensure all equipment in the office is managed a good condition. · Always alert with movement of all activities and programs handled by the organization. · Make good rules standardized with the vision, mission objective of the company.
FINANCIAL EXECUTIVE MANAGER ( MUHAMMAD IMRAN BINAMIRUDDIN )	· Manage and control the overall budget, expenses and profits of the company. · Prepare monthly, annual cash flow and income statement. · Managing the company financial account, monitoring and reporting system. · Make sure budget for administration is estimated accurately.
OPERATIONAL EXECUTIVE MANAGER ( MUHAMMAD SYAHMINUL HON BIN RIDZWAN HON )	· To control and monitor the operation of the business and fully utilizing of resources. · Using efficient ways to increase sales and profit to make sure good development of business. · Manage the quality of products and ensure problems are handled efficiently. · Set rules and procedures for staff to follow for smooth department. · Manage and determine the operation cost adequate with the company budget.
MARKETING EXECUTIVE MANAGER ( MOHAMMAD HAFIZ BIN ATAN )	· To identify strategic marketing plan for the company and identify new marketing opportunities. · Promoting the products offered to the customers. · Responsible in making any advertising for example banner, business card and any promotion related matter. · Prepared the department report to submit to the manager. · Responsible to forecast company sales for upcoming years.
ADMINISTRATION EXECUTIVE MANAGER (AINOL RAFIEQ BIN RAMLI )	· Make sure all office needs are available. · Set up payroll, hiring, compensations and training functions. · Determining the most effective means of organizing resources to achieve goals and objectives.
HUMAN RESOURCE EXECUTIVE MANAGER ( MUHAMMAD NUR RAHMAN BIN MT ADIL )	· Manage all the mailing transaction, payment of bills and all the filing system. · Developing effective methods and techniques when implementing changes. · Hire workers and assure the income payment.

8.4 SCHEDULE OF REMUNERATION

POSITION	NO OF STAFF	MONTHLY SALARY (RM)	EPF CONTRIBUTION (13%) (RM)	SOCSO (1.75%) (RM)	NET SALARY (RM)
CHIEF EXECUTIVE MANAGER	1	1500	195	26.25	1721.25
FINANCIAL EXECUTIVE MANAGER	1	1400	182	24.5	1606.5
OPERATIONAL EXECUTIVE MANAGER	1	1400	182	24.5	1606.5
MARKETING EXECUTIVE MANAGER	1	1400	182	24.5	1606.5
ADMINISTRATION EXECUTIVE MANAGER	1	1400	182	24.5	1606.5
HUMAN RESOURCE EXECUTIVE MANAGER	1	1400	182	24.5	1606.5
TOTAL	6	8500	1105	148.75	9753.75

From the schedule of remuneration above, the basic salary for chief executive manager is RM 1,500. While, basic salary for financial, operational, marketing, administration and human resource manager is RM 1,400. The company decides to provide 13% for the Employees Provident Fund (EPF) and 1.75% for the Social Security Organization (SOCSO) for all managers.

8.5 LIST OF OFFICE EQUIPMENT AND SUPPLIER

Table 8.5.1 List of Office Furniture and Fittings

EQUIPMENT	COST PER UNIT (RM)	QUANTITY	TOTAL (RM)	SUPPLIER
Computer	2,000	1	2,000	STYLE ONE STOP MARKETING 31, Jalan SG 3/1, Taman Sri Gombak 68100 Batu Caves, Selangor.
Desk	135	1	135	LMT AUTOMATION SDN. BHD. No. 43, Jalan SG 1/9, Taman Sri Gombak, 68100, Batu Caves, Selangor.
Ceiling Lights	20	4	80	ATOMM ELECTRICAL & LIGHTING 5, Jalan SG 3/14, Taman Sri Gombak, 68100 Batu Caves, Selangor.
Telephone	120	1	120	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
Chair	70	1	70	LMT AUTOMATION SDN. BHD. No. 43, Jalan SG 1/9, Taman Sri Gombak, 68100, Batu Caves, Selangor.
Printer	200	1	200	STYLE ONE STOP MARKETING 31, Jalan SG 3/1, Taman Sri Gombak, 68100 Batu Caves, Selangor.
Curtain	150	1	150	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
Welcome Bell	15	1	15	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

White Board	290	1	290	JL INDUSTRIAL SUPPLIES No. 30, Jalan SG 1/5, Taman Sri Gombak, Batu Caves, 68100 Selangor.
Vacuum Cleaner	99	1	99	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
Dustbin	5	3	15	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
Broom and Dustpan	14	1	14	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

File Cabinet	150	1	150	PERABOT DAN ELEKTRIK SL No 11, Jalan SG 1/9, Taman Sri Gombak, Batu Caves, 68100 Selangor.
Air Conditioner	783	2	1566	Senheng Bandar Utama Cheng M NO.75 & 75-1, JALAN INANG 4, TAMAN PAYA RUMPUT UTAMA, 76450 Malacca
Fire Extinguisher	145	1	145	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
TOTAL			5,049

Table 8.5.2 List of Office Supplies

NO	ITEMS OF DESCRIPTION	QUANTITY	PRICE PER QUANTITY	TOTAL PRICE
1	Account book	3	RM 3	RM 9
2	Address book	1	RM 2.50	RM 2.50
3	Book keeping (hard cover)	3	RM 5	RM 15
4	Cash bill book	3	RM 5	RM 15
5	Cheque record book	3	RM 3.50	RM 10.50
6	Note book	7	RM 2.50	RM 17.50
7	Soft exercise book	7	RM 1.50	RM 10.50
8	Casio desktop calculator	2	RM 8	RM 16
9	Envelope	2 SETS	RM 2	RM 4
10	Box file/document case	2	RM 6	RM 12
11	Clip board file	4	RM 4	RM 16
12	Expanding file	3	RM 8	RM 24
13	Ring file	2	RM6	RM 12
14	A4 paper	2	RM 8.90	RM 17.80
15	Computer form	5	RM 6.90	RM 34.50
16	Inkjet & glossy paper	3 SETS	RM 15	RM 45
17	Clips	2 BOXES	RM 3.50	RM 7
18	Date chop	3	RM 7.50	RM 22.50
19	Document tray	3	RM 10	RM 30
20	Eraser	5	RM 0.20	RM 1
21	Glue & gum	3	RM 0.50	RM 1.50
22	Pin	3	RM 1.50	RM 4.50
23	Puncher	3	RM 4	RM 12
24	Ruler	5	RM 0.60	RM 3
25	Scissors	6	RM 1.20	RM 7.20
26	Stapler	5	RM 4.50	RM 22.50
27	Canon ink cartridge	4	RM 21	RM 84
28	Notice board	2	RM 50	RM 100
29	Ball pen	2 DOZENS	RM 4	RM 8
30	Mechanical pencil	6	RM 3	RM 18
Total				RM 582.50

Total for the list of stationeries are RM 582.50. This is a yearly base for stationeries that use in the office.

8.6 ADMINISTRATION BUDGET

ITEM	FIXED ASSET (RM)	MONTHLY EXPENSES (RM)	OTHER EXPENSES (RM)	TOTAL (RM)
Fixed Asset · Furniture & Fitting · Office Equipment	220 3, 483			3, 703
Working Capital · Salary, SOCSO and EPF · Rental of Building · Utilities - Water - Electricity - Internet - Telephone bills · Stationeries		4, 934.25 2, 200 300 500 150 150 582.50		8, 816.75
Pre-Operation & Other Expenditure · Deposit (rent, utilities, etc.) · Business Registration · Business License · Road tax & insurance			8, 800 60 1, 590 350	10, 800
Total				23, 319.75

Table 8.6 Administration Budget

MARKETING PLAN

6.0 INTRODUCTION

Marketing can be defined as the activities that are carried out systematically to encourage and increase sales of products or services as long as the activities are in line with religious and ethical practices. Marketing is one of important factors that can help the company to increase the sales of its products and services. Consequently, this can transformed the company’s profit to increase significantly. Besides that, the customers need and want also can be fulfilling if the marketing project of a company works. For example, all facilities that are provided in the lodge make the customer satisfied and felt that their needs are fulfilled. Thus, the company sales can be improved.

6.1 MARKETING OBJECTIVES

Marketing is the process of creating, communicating, delivering and exchanging offerings that brings satisfaction and have value for customers, clients, partners and society at large. Meanwhile, marketing objectives are goals set by the business when promoting its products or services to potential consumers that should be achieved within a given time frame. As we all know, ‘Lendu Premium Lodging’ are new to students who are do not get the residency in UiTM and searching a place or accommodation to stay during the semester. The issue is UiTM management had to limit the amount of resident in UiTM area. Hence, they cannot provide more college and resident to the student because of limited of land area and capital to build other college. The student’s faith who are unlucky to get selected as resident of UiTM could be more pitiful because they need to find house or hostel to rent for whole semester. The student also need to use transportation because they living outside of the university area. However, ‘Lendu Premium Lodging’ falls into the category of new business as we are the pioneer in providing lodging service which is it more like as college but it is rental system with good accommodation and complete facilities. With our marketing plan, we have estimated  1% market acceptance and sales with the amount RM648,000.00 should be achieved in the first year of the businesss. In conjunction to that, our company has include few objectives that needs to be achieved by ‘Lendu Premium Lodging’:

1. Promotional objectives.

To widely inform the latest product produced by ‘Lendu Premium Lodging’. It can be done through the function of social media, flyers and advertising on television and radio.

2. Branding objectives.

We aim to raise awareness of our brand to the customer and grow brand recognition so that our service will be more familiar in the lodging industry. This is vital as consumers often attracted to something that they see or heard of. Most importantly, our business are focusing on the student in UiTM Lendu.

3. Quality objectives.

We make sure that our services are provided at top condition to satisfy the consumers’ taste and expectation which lead to their satisfaction and accomplish our goals.

6.1.1 BENCHMARK

We choose Apartment Yayasan Melaka (AYAM) as our company’s benchmark because they provide the same service and facilities but they are apartment basement under government management.

 

AYAM was established under the Malacca Foundation Enactment 1984 (No. 4/1984) on 15 September 1984. It is a combination of Malacca Islamic Foundation with Yayasan Pelajaran Melaka. Their starting operations at the Old Museum, Jalan Kota Melaka. In 1993, Yayasan Melaka built a 16-storey building on Jalan Hang Tuah with a construction cost of RM 34 million.

Their product are the student residence which each floor has 8 units and each unit has 5 rooms labelled alphabetically A, B, C, D & E. Each unit also has a living room, pantry, 2 bathrooms and 2 bathrooms. The Melaka Foundation also provides facilities such as beds and mattresses, wardrobes, study tables, chairs and wall fans in each room for student convenience. Each room is rented out to 2 students meaning 1 unit has 5 rooms and can accommodate 10 students.

The Melaka Foundation also offers affordable rental rates to students. In addition, room rental facilities are offered to students staying in the short term for exam preparation, preparation of reports, industrial training with daily rental rates.

6.2 DESCRIPTION OF SERVICES

‘Lendu Premium Lodging’ is a lodging facility on Lendu, Alor Gajah near with UiTM Lendu, designed to provide customers which is the student with comfortable surroundings at reasonable rates while studying in the university. Our service offers a comfortable accommodation to customers with every room have complete equipment and facilities for a resident. There are 5 building lots, each lot has two floors, while each floor has 14 rooms including toilet, kitchen and living room. Most importantly, we decide to choose our location near UiTM Lendu because our target market is the students.

  To support our service marketability, Lendu Premium Lodging has been certified as an accommodation rental company that offer rooms to students. With this certification, we gain the trust and confidence of our customers to purchase our services.

6.2.1 SERVICE DESCRIPTION

SERVICE	DESCRIPTION
Features	· Premium Lodging for student. · It comes with 2 types of room which divided male and female customers: 1. Male lots: - The building lot for male customer are design with single room per person which our company provide a room for one person. We prepared 17 rooms and each room has a complete facility, but they also get privacy condition because the room space is divided by petition. 2. Female lots: - The building lot are designed especially for female customer with one room can provides accommodation for two person. This room design to ensure the female customer can feel comfortable with roommates. Female always feel safe if they had someone company them along. Lendu Premium Lodging prepared 9 rooms which one room can accommodate two person.
Benefits	· Students can get accommodation around the university. · Reasonable price for all facilities, equipment and services. · There are no interruptions and problems such as water supply, electricity, security and rentals. · Good relationship between Lendu Premium Lodging and the university in solving the problem of student’s residency.

6.2.2 SERVICE ILLUSTRATION

The services offered to customers are rooms with ample amenities including fan, bed, closet, desk, chair, mirror and suitable room space to living. In addition, the kitchen room, living room and toilet are included in our service. This makes our services complete and suitable for customers especially students to stay there. We provide 5 building lots, each lot has two floors, while each floor has 14 rooms which totally we calculate will be 140 people.

6.2.3 PRICE DETERMINATION

Price is the amount of money that is charged to the customer for the particular selling and buying. The price is the amount a customer pays for the product or service. The business may increase or decrease the price of the service if other company have the same service. The price is the main point that customer think whether they want to buy the service or not. These are because the customer did not buy the service that they think the price is not suitable for the service. As our goal, we want the customer to be satisfied with our service.

Cost-based pricing is a method that our company used as a price determination. Cost of pricing is based on the total cost of the product or service plus a standard mark-up. The total cost per unit on the total up is between the fixed cost and the variables cost such as extra expenses, salaries, utilities and so on.

Cost per room (RM) = Fixed Cost (per room) + Variable Cost (per room)

= RM 200.00 + RM 40.00

= RM 240.00

Cost of Pricing (RM) = Fixed Cost (per room) + Variable Cost (per room) + Markup

= RM 200.00 + RM 40.00 + RM 60.00

= RM 300.00

6.2.4 FURNITURES PLANNING

Here is the list of the furniture in our building:

No	Machine		Price per quantity (RM)	No of Quantity	Total Price (RM)
2.	Fluorescent Lamp		40.00	3	120.00
3.	Fan		154.00	2	308.00
4.	Cashier Table		250.00	1	250.00
5.	Chair		18.00	1	18.00
		TOTAL PRICE FOR FURNITURE			00.00

6.2.5 LIST OF MACHINE SUPPLIER

No	Machine	Supplier
1.	Cashier, Cashier Table, Shelf Steel  , Chair	RC Machinery Sdn Bhd 42 Jln SBC 8, Taman Sri Batu Caves, 68100 Batu Caves, Selangor 03-61851800
2.	Fan	Daikin Malaysia Sdn Bhd Lot 9, Jalan 13/6, Seksyen 13, 46200, Petaling Jaya, Selangor Darul Ehsan, Malaysia 03-7953 8388
3.	Fluorescent Lamp	Pubillah Enterprise No 81,Jalan SR 1/1D,Saujana Rawang, 48000, Rawang.Selangor. 011-21262110
4.	Security Door Device and CCTV	Flexi Team Computer (Malacca) Sdn Bhd (465733-P) 40A, Jalan Melaka Raya 20, Taman Melaka Raya, 75000 Melaka Phone: 06 - 283 2934
5.	Washing Machine	Samsung Sdn Bhd 67, Jalan Taman Ibu Kota, Taman Danau Kota, 53300 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur. Phone: 03-4131 3915
6.	Television	Panasonic Sdn Bhd Lot 9 & 10, Jalan Ptb 1, Kawasan Perindustrian Tangga Batu, 76400 Tanjong Kling, Melaka Phone: 06-351 1444
7.	Bed	Hostel Supplies Malaysia Sdn Bhd No. 25, Jalan Uranus AJ U5/AJ, 40150 Shah Alam, Malaysia Phone: 012-705 7299 / 010-288 2699 ifeelhomey@hostelsupplies.com
8.	Wardrobe	Hostel Supplies Malaysia Sdn Bhd No. 25, Jalan Uranus AJ U5/AJ, 40150 Shah Alam, Malaysia Phone: 012-705 7299 / 010-288 2699 ifeelhomey@hostelsupplies.com
9.	Desk	Hostel Supplies Malaysia Sdn Bhd No. 25, Jalan Uranus AJ U5/AJ, 40150 Shah Alam, Malaysia Tel: 012-705 7299 / 010-288 2699 ifeelhomey@hostelsupplies.com
10.	Kitchen tools	Grand Hardware & Enterprise Sdn Bhd No. 11, 13, 15 & 17, Jalan CM 2, Taman Cheng Mutiara, 75250 Bertam Malim, Malacca Phone: 06-335 1851
11.	Kitchen cabinet2	Numberg Kitchen Warehouse Taman Malim Jaya, 75250 Malim Jaya, Melaka Phone: 016-335 1717
12.	Sofa	Mattress Sofa Hypermart 622 Jalan Ong Kim Wee, Melaka, 75300 Melaka. Phone: 06-281 1501
13.	Floor Carpet	Star Carpet Lingkaran MITC, Melaka International Trade Centre, 75350 Melaka. Phone: 016-624 0143
14.	Wifi (Unifi Plan)	Telekom Malaysia Berhad Menara TM Melaka, No. 2, Jalan Wisma Negeri, MITC, Melaka, Malacca International Trade Centre, 75450 Ayer Keroh, Malacca Phone: 06-252 5252
15.	Water Cooler (Cooway)	Coway Malaysia Ilham Tower, Level 20, No. 8, Jln Binjai, 50450 Kuala Lumpur Phone: 1-800-88-8111
16.	Fire Extinguisher	AEON METRO PRIMA SHOPPING CENTRE Jalan Metro Prima, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur. Phone: 012-628 5396
17.	Shoe rack	Hostel Supplies Malaysia Sdn Bhd No. 25, Jalan Uranus AJ U5/AJ, 40150 Shah Alam, Malaysia Tel: 012-705 7299 / 010-288 2699 ifeelhomey@hostelsupplies.com
18.	Refrigerator	Senheng Bandar Utama Cheng M NO.75 & 75-1, JALAN INANG 4, TAMAN PAYA RUMPUT UTAMA, 76450 Malacca Phone: 011-1088 8754
19.	Dryer	Haier Tumble Dryer NO.45, Wp Kuala Lumpur,Kuala Lumpur,50450 Phone: 06-2457723
20.	Iron Stream Dry & Iron Board	Lazada.com.my NO.45, Wp Kuala Lumpur,Kuala Lumpur,50450 Phone: 06-2457723
21.	Rubbish Bin	Mudah.com.my NO. 33, Jalan Utama 43, Taman Mutiara, Skudai, Johor. Phone: 016-7547626
22.	Electronic Cooker (RUBINE INDUCTION COOKER RSH-BEANS-BH28)	Lazada.com.my (Harmony Electrical Sdn Bhd) NO.45, Wp Kuala Lumpur,Kuala Lumpur,50450 Phone: 06-2457723
23.	Windows Grill	Grill Murah Berkualiti Tmn Industri Balakong, 43300 Seri Kembangan. Phone: 011-2787 2241
24.	Rubber Mat	Lazada.com.my D’kebun Commercial Centre, No 30-G Desa Putera 843/K08, Pusat Perniagaan Desa Putera Jalan Kebun 41200 Klang, Selangor Darul Ehsan. Phone: 011-10850349
25.	Shower	OSUKI Sdn Bhd (Lazada.com.my) NO.45, Wp Kuala Lumpur,Kuala Lumpur,50450 Phone: 06-2457723
26.	Toilet equipment ( slippers, sweeper, shovel, footwear, mop)	Hostel Supplies Malaysia Sdn Bhd No. 25, Jalan Uranus AJ U5/AJ, 40150 Shah Alam, Malaysia Phone: 012-705 7299 / 010-288 2699 ifeelhomey@hostelsupplies.com
27.	Rice Cooker	Panasonic Sdn Bhd Lot 9 & 10, Jalan Ptb 1, Kawasan Perindustrian Tangga Batu, 76400 Tanjong Kling, Melaka Phone: 06-351 1444
28.	Modern Wall Mounted Mirror (50 cm x 90 cm)	Firas Store (Lazada.com.my) Ajiad street ,11115 Amman, Jordan
29.	Dining Table	Casateak Furniture Malaysia Manufacturer No 32-G, Jalan OP 1/5 , One Puchong Business Park, Bandar Puchong Jaya, 47160 Puchong, Selangor, Malaysia Phone/Fax: +603-80820341
30.	First-Aid Kit	Farmasi Saiza 36, Jalan Anggerik, Taman Seri Bayu, 78000 Alor Gajah, Melaka Phone: 06-556 6503

6.3 TARGET MARKET

One of the important parts in marketing plan is our target market. Target marketing involves breaking a market into segments and then focusing our marketing efforts on one or few segments consisting of the customers who share the same needs and desires that are most closely match to the service we offers. When speaking of target market, the first thing that pop up in our head is who will be consuming our service. We, Lendu Premium Lodging take this matter as our concern as we strive to search for the best target to perform our marketing strategies.

As our business fall in the category of lodging industry, we are considered lucky as lodging can be both human being’s needs and wants. Need is when they has living, they also need a shelter in order to survive or to get comfortable environment to lived. While wants could be when they desire for the service as they loved it so much. As for Lendu Premium Lodging, we strive to function as both to the consumers. We will provide all facilities that they needed as well as making our service so ‘magnificent complete’ that they will rent every month. Hence, we can say that our target market is university students who did not get college residence in the university area.

For new lodging business like us, we are targeting nice market which is easier for us to find those who most likely will enjoy our service and where those customers are most likely to purchase our service. Our company is located at Jalan Dimensi, Taman Dimensi, 78000 Alor Gajah, Melaka where the place is a residential area and at the same time, it also near the local university institution which is UiTM Lendu. Our business has identified the target market 2 kilometers radius from our operation that is 7,500 people sourced from Department of Statistics Malaysia. Our major segmentation of target marketing is geographic, demographic and psychographic factor.

6.3.1 Geographic Segmentation

In geographic factor, we specific to those who lives in UiTM Lendu as their population is large. There is wider opportunity to expand our business as we have larger number of potential consumers. With many infrastructure provided nearby our business premise such as public transport system, the place is considered easy to be reached and accessible by many people. Hence, our target market is large. In terms of additional cleaning service, it will provided for each month as we are very concerned about the cleanliness of the premises so customers will feel comfortable.

6.3.2 Demographic Segmentation

In demographic factor, we precise based on university student. We discover that they are the most suitable target market for our service as they able to help us in expanding our market share. This is because students who are do not get the residency in UiTM and searching a place or accommodation to stay during the semester. Plus, based on our research, we found that UiTM management had to limit the amount of resident in UiTM area. Hence, they cannot provide more college and resident to the student because of limited of land area and capital to build other college. The student’s faith who are unlucky to get selected as resident of UiTM could be more pitiful because they need to find house or hostel to rent for whole semester. Thus, our service can be trusted by the students as what our service provide to customer is what the student need most.

6.4 MARKET SIZE

Market size is the number of buyers and sellers in a particular market. This is important for company like us that wish to launch a new service, since small markets are less likely to be able to support a high volume of goods. Large markets could bring in more competition.

Market size also is the total potential purchase that is expected from the target market. The potential purchase includes purchase of the competitor’s product or services within the same market. Estimation of the target market is done by requiring information regarding the particular market we intend to enter.

According to our source, Department of Statistics Malaysia, the population in UiTM Lendu there are about 7,500 people. We had estimated that from the target market of the student, we assume that 1,000 students not get residence in the university.

Therefore,

Direct Selling

i. Assume that 1km from our shop and one university has 7,500 students: ii. Assume that 1% will buy our service: 7,500 x 1% Potential customer = 75 per student iii. Average price = RM300.00 iv. Sales per month: = Potential customer x Average price = 75 x RM300.00 = RM22,500.00

6.4.1 Population Table

Type of Outlet	No. of outlet	No. of items to needed (unit)	Price/unit (RM)	Total (RM)
Direct Selling	1	75	300.00	22,500.00
TOTAL				22,500.00

6.5 COMPETITORS

In business, competitors play an important role as a benchmark to be compared and compete with each other in order to improve the quality of our services. Competitors can be defined as another company that offer similar, can be a substitute or other alternative services to the same target market.

In our target market area, we found that there are three competitors who their services are sold in area within Jalan Dimensi, Taman Dimensi, Alor Gajah, Melaka. Hence, our company does a research regarding our competitors because it is important for us to examine and analyze their strength and weaknesses in term of quality, customer service, price, financial ability and market share.

By setting the competitor as our benchmark, we can produce and improve our service from time to time to make sure we are able to be top in market. We also make the competition as a healthy challenge and make the competitors as variation in market competition. Thus, customer can have many selections to meet their needs and wants. We will also provide high quality service to meet their expectation and satisfying their desires. The similarity that we have with the competitor is that we have the same service, which is providing rental to consumer and the features that differs us from the competitor is that we sell the service for the student, lodging room is petition for each customer and it more a like hostel.

6.5.1 Identifying Competitors

After research, here is a table that shows strength and weaknesses possessed by each competitor:

 Table 6.5.1 Competitive Analysis

COMPETITORS	ADDRESS	STRENGTHS	WEAKNESSES
YAYASAN MELAKA (AYAM)	No.40-48 & 52, Jalan BKD 27, Taman Bukit Damai 2,  75450 Bukit Katil, Melaka, Malaysia.	· Offers affordable rental rates to students. · Has consistent customer.	· Under Government management. · Rules and regulation are very strict.
APARTMENT DIMENSI LENDU	No. A-2-6, 2nd Floor, Block A,  Apartment Dimensi, Taman Dimensi,  Jalan Dimensi 3, 78000 Alor Gajah,  Melaka	· Strategic business location. · Good security system.	· Prices are slightly expensive. · Poor marketing strategies.

6.5.2 Ranking Of The Competitors

Here is a table that shows the ranking of competitors starting with the highest market acceptance:

Table 6.5.2 ranking of the competitors

Rank No	Competitors
1	Yayasan Melaka
2	Apartment Dimensi Lendu

6.6 MARKET SHARE

Market share refers to the estimation potential sales of this business after taking market size and influences of competition into consideration. Market is representing in term of percentage (%) of potential market size owned.

6.6.1 Market share before the entry of Lendu Premium Lodging services;

COMPETITOR	BEFORE ENTRANCE (%)	AMOUNT (RM)
Yayasan Melaka	60	1,200,000.00
Apartment Dimensi Lendu	40	800,000.00
TOTAL	100	2,000,000.00

 

6.6.2 Market share after the entry of Lendu Premium Lodging services.

COMPETITOR	AFTER ENTRANCE (%)	AMOUNT (RM)	PERCENTAGE OF LOSS (%)
Yayasan Melaka	59.5	1,190,000.00	0.5
Apartment Dimensi Lendu	39.5	790,000.00	0.5
Lendu Premium Lodging	1	2,000.00	-
TOTAL	100	2,000,000.00

 

6.7 SALES FORECAST

Table 6.7 Sales Forecasting

Month	Sales Forecast
January 2018	17,904.00
February 2018	18,018.00
March 2018	18,018.00
April 2018	18,018.00
May 2018	18,018.00
June 2018	18,018.00
July 2018	18,018.00
August 2018	18,018.00
September 2018	18,018.00
October 2018	18,018.00
November 2018	18,018.00
December 2018	18,018.00
Year 2018	216,102.00
Year 2019	222,585.06
Year 2020	231,488.46

6.8 MARKET STRATEGY

Marketing strategy is an organization’s strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve maximum profit. The purpose of creating marketing strategy is to clearly show what step will be undertaken to achieve the business’ marketing objective which have made before.

Lendu Premium Lodging is still a new business in the lodging industry, so the business have to challenge a huge number of competitors that had already establish in the market and are well-known to the customers. In order to make the business known to the public eye, it needs to invest a fairly big amount of money to promote its product so that the percentage of its involvement in the market that the business targeted can be achieved.

Lendu Premium Lodging focuses more in developing the marketing strategy to reduce the risk of the business so that it can get more profit than lose. There are four main variables that Lendu Premium Lodging considers in developing the marketing strategy, by using the concept of 4P which is product strategy, pricing strategy, place strategy, and promotion strategy.

6.8.1 Product

We define our service as lodging service. This is because our service has many advantages. It means that we sell service to the customers. Lendu Premium Lodging has a unique characteristic to offer to our customers. Some of the characteristics are:

· Our service can fulfill the customer’s need.

· Determination of the price that appropriate with the quality of the service.

· For the important of the quality of the service, we provide high quality of service to specific customer.

1) THE BRAND

The meaning of Lendu Premium Lodging itself shows that our service is different from others. ‘Lendu’ meaning our service is located in Lendu, Alor Gajah, Malacca. ‘Premium’ shows that our service are high standard service while ‘ Lodging’ refers that our service is a lodging service which only focuses on students.

 

2) QUALITY

We also provides high standard of facilities along with the room. Our service is design for student to rent every semester. All the facilities provided are in compliance with all customer requirements which is the students.

3) DESIGN

We have designed the design for each petition which is the room by examining every student's requirement to achieve the best possible satisfaction. Each building lot has complete facilities and meets the agreed standards. Most importantly the design are also focusing the safety.

6.8.2 Price

The business decided to sell our service for RM300.00 for each month after considering all the cost including utilities. Since the service is a new brand, the business is not taking the risk to increase the profit. At the beginning, the business only wants to ensure our business is stable and well known among the market.

We will also have an opening promotion where the price of our service will be priced at RM280.00 when the coupon on our flyers are shown. This is to attract customers to purchase our service, so they will buy more which will create regular customers.

The business use price skimming strategy as its pricing strategy. This strategy designed to help businesses maximize sales on new product and services. It involves setting rates high during the introductory phase. The company then lowers prices gradually as competitor goods appear on the market. We chose this strategy as it allows our business to maximize profits on early adopters before dropping prices to attract more price-sensitive consumers. It also creates an illusion of quality and exclusively when your item is first introduced to the marketplace.

6.6.3 Place

For a successful business place design we must consider 4 element that is important to make sure our customer very satisfied and comfortable. This element are density of customer and lighting are very important when designing a successful building lot design.

Firstly, density of customers. This element show that the layout plan should be based on customers comfort. This make sure comfort to the customers although at peak hour when the customer are expected to be crowded with people. This element shows that, customer must have certain space to enable them to move around the shop, at our shop we use and open floor space concept to make sure customer can have the space they needed although when the shop is full with people this concept also make sure full comfort to the customer

Last but not least are, lighting. Proper lighting are important. This element are intended, for customer to match the mood. Since our shop are intended to make sure our customers easily go through the shop therefore we need a bright floor space , therefore we needed a quite amount of light to make sure our floor space is lit with light.

6.8.4 Promotion

Promotion strategies are important in order to inform our service to the customer. This is to ensure all the customers know about Lendu Premium Lodging. To inform them that we provide service that is high quality and the pricing that we offer is affordable.

As a new company, advertisement is an important rule. To make sure that our service is known in the market, we have to plan a few systematic strategies that are:

1) SOCIAL MEDIA

The type of promotion that will be done is mainly through social networking. We have been creating social network accounts; Facebook, Twitter and Instagram as people nowadays tend to use those accounts daily. These two social websites are widely popular and uses by most people, especially students. In that page, the business has included the location of its business and telephone number so that they can ask questions should they need to acquire information about the business.

· OFFICIAL WEBSITE

 

· INSTAGRAM

 

· TWITTER

 

· FACEBOOK

 

2) FLYERS

We distribute our pamphlets within the area of our target market. Pamphlets are financially viable and sustainable, convenient to carry around and to sell at readings and capable of being printed to order, saving on storage costs. The size of our flyer is A4. The flyers are made to give information about our products to the public.

3) BUSINESS CARDS

We provide business card to our customer, this to ensure the customer know how to get in touch with us. The size of our business cards are 3.5 x 2 inches.

6.9 ORGANIZATIONAL CHART

6.10 MANPOWER PLANNING

Manpower planning is where planning to determine the planned rate of the production per day for the particular section of each jobs on our own. The position that vital for the operation is the Marketing Manager. She/he will take all the responsibilities on his/her own during the marketing procedure.

Table 6.10 List of Marketing Personnel

Position	Number of personnel
Marketing Manager	1
TOTAL	1

6.11 SCHEDULE OF TASK AND RESPONSIBILITIES

Table 6.11 Task and Responsibilities of Marketing Personnel

POSITION	TASKS & RESPONSIBILITIES
Marketing Manager	· Develop new marketing strategies to promote the company’s services and image. · Organize and analyze market research and surveys, and generate report on services. · Develop company to maximize its profits and market share while, ensuring that the users are satisfied. · Develop policies among users and staffs.

6.13 MARKETING BUDGET

Table 6.13 Marketing Budget

Item	Fixed Assets (RM)	Monthly Expenses (RM)	Other Expenses (RM)
FIXED ASSETS · Furniture	60,810.00
WORKING CAPITALS · Promotion 1. Flyers 2. Business card			175.00 160.00
OTHER EXPENDITURES · Grand opening			1000.00
TOTAL	60,810.00		1335.00

OPERATIONAL PLAN

OPERATIONAL PLAN

- Process Planning

 

- Business and Operation Hour

LENDU PREMIUM LODGING office is starts their operation from 8:00 am and will be closed at 5:00 pm. The office time is using the official basic office time that been used by others company.

LENDU PREMIUM LODGING has 6 workers including CEO. All the workers work 8 hour per day. Each employee has 1 hours for break. The office consists of CEO, Finance Manager, Operating Manager, Administration Manager, Marketing Manager and lastly HR manager.

OPERATION HOUR PER DAY	OPERATION TIME	DAYS
8 HOURS	8:00 AM – 5:00 PM	MONDAY - FRIDAY

- License and Permits

License RM 350.00	Permits
- Business License with Majlis Pembandaran Melaka - Business Registration with Suruhanjaya Syarikat Malaysia (SSM)	- Permits License with Majlis Pembandaran Melaka

- Monthly Expenses

TYPES	COSTS
Electricity	RM150 x 5 building = RM750
Water	RM100 x 5 building = RM500
Telephone Bills	RM80
Maintenance	RM700
Wi-Fi	RM129 x 5 building = RM645
Rent	RM600 x 5 building = RM3000
Water Cooler	RM200 x 5 building = RM1000
TOTAL	RM 6675

- Direct Labour Planning Schedule

No	Position	Salary per month (RM)	EPF (RM) 13%	SOCSO (RM) 1.75%	TOTAL
1	Operational Manager	1400	182	24.5	RM 1606.50

- Operation Budget

ITEM	MONTHLY EXPENSES (RM)	OTHER EXPENSES (RM)
MONTHLY ASSET - WAGES, EPF & SOCSO - LICENSE	RM 1606.50 RM 350.00
OTHERS - Electricity - Water - Telephone Bills - Maintenance - Wi-Fi - Rent - Water Cooler		RM750 RM500 RM80 RM700 RM645 RM3000 RM1000
TOTAL	RM 1956.50	RM 6675 RM 8631.50

- Plan Layout

 

LEVEL 1

 

LEVEL 2

 

KITCHEN / TOILET

 

LIVING ROOM / TOILET

 

STAIRS

 

HALL ROOM

- Output Per Day

Estimated output per month:

room x RM300

= RM 54000

Estimated output per year:

RM 54000 x 12 month

= RM 648

CONCLUSION

We hope that the vision of LENDU PREMIUM LODGING becoming will become a reality and that we will be able to reach our goal and objectives. As a business that provide services, we hope we are able to raise the name of our country and become well organized.

We also believe that LENDU PREMIUM LODGING  will meet the demand among Malaysians as well as foreigners and become one of the competitive advantage company compared to other competitors. However we are aware of the challenges that we are going to face  but we are confident that with each business partner’s experience and our corporation will lead towards solving the problems.

We hope that LENDU PREMIUM LODGING  will become established in Malaysia and internationally in the future. In addition to that, we also hope that our shop can be accepted and meet the needs and wants of the society.

APPENDIX