FACULTY OF ACCOUNTANCY MARA UNIVERSITY OF TECHNOLOGY (UiTM SHAH ALAM)

BUSINESS PLAN
PN. BEDAH AHMAD EN. MOHD ALIBAHARI PN. NORILMAH AZIS SUBMISSION DATE : 04 SEPTEMBER 2002

WARDATUL RAIHAN BINTI AHMAD 2000576516 KAMARIAH BINTI BAHARIN 2000575758 HASRAUMMI BINTI HARON 2000575701 WAN NURUL HAFIZA BINTI W. MAHMOOD 2000576475 SHAHIDA HANNANI BINTI ABDUR RAFAR 2000576283

1. 2. 3.

EXECUTIVE SUMMARY BUSINESS PLAN PURPOSES COMPANY BACKGROUND a.Background of company b.Partnership agreement c.Business logo PARTNERS BACKGROUND ADMINISTRATION PLAN Job description Schedule of remuneration List of office equipment Office layout List of administration budget

4. 5.

6. MARKETING PLAN Service description Target market Market size Main competitors Market share Sales forecast Marketing strategy Marketing personnel Schedule of remuneration Marketing budget 7. OPERATION PLAN Operation process Process flow chart Capacity planning Material requirement List of personnel Schedule of task and responsibilities Schedule of remuneration Machine and equipment Operation space layout Location Operation budget

8. FINANCIAL PLAN Project implementation cost Source of financial schedule Loan amortization schedule Hire purchase repayment schedule Cash flow statement Profit and loss account Balance sheet 9. APPENDIX

1. EXECUTIVE SUMMARY
Irise Laundry is a business of laundry and the business will be started on Is January 2003. Services that will be provided are normal washing, express dry cleaning, ironing, comforters and curtains. This business location is situated at No.8, Jalan Pinang E18/ E Section 18,40 000 Shah Alam, Selangor Darul Ehsan. This location is situated in resident areas. Therefore, it will have a great potential market for this business. Besides that, this area is near Akasia and Cemara College. Moreover, it has less competitors as compared to other business and services. This year economic situation is more stable, therefore we expect that in 2003 Malaysia's economic will continue to growth. As the country prospers, more people are employed, making standard living of people in Malaysia getting better each year. Furthermore our ways of thinking has changed people no longer assume that laundry is only necessary for wealthy society. We believe that our business have potential in this millennium especially in urban area because people are busy with studies and works. As the consequences they have limited time to do house chores like washing clothes. Therefore they prefer to send their clothes to the nearest laundry shop. Related to this situation, we focus to students and residents of Section 18, Shah Alam. Another factors that influencing us to choose this laundry services is because lack of competitors in Section 18, Shah Alam making it easier for us as a new entrepreneur to engage in the business because this service do not require large capital and professional workers.

1.1 Internal Goals Able to train and develop skills of the workers especially their communication skill such as relation between staffs in a business.

Maintain good working environment where close interactionflowfromtoplevel management to the lower level with good communication standard.

1.2 External Goals To cover all the expenses in two years To be an established company by another two years To be able to offer varieties of services to all customers relate to their needs and wants.

1.3 Business Objectives

Below are some of the objectives of Irise Laundry services: 1.4 Goals Setting a goal can be a crucial decision for company, as the management would have to determine the direction of the company towards reaching. It should reachable and within the capacity and reach of the company. We are dividing the goals into 2 areas, namely: Internal goal that could be achieved through the internal planning training and prudent strategy. External goals that could be attained through smart partnership, strategic marketing and promotion. An introduction of services to compete with other operators as well as to establish a strong foothold in the laundry market services. To create a new perception towards services especially about it benefit and the quality Provide high quality and well establish services to attract people especially those workaholics. Less the community burden and give a little bit welfare contribution.

2. BUSINESS PLAN PURPOSES

Purpose of business plan: This business plan is prepared by Irise Laundry to obtain a loan for the amount of RM 20735.06 from BankRakyat. Profit selling forecast have to be expected objectively and critically so that the plan can be practical. Besides, the project have to evaluate project viability and growth potential that can be solve any problems later in business and decrease the business's risk. It also will be a guideline for workers in order to know their jobs, functions and their responsibilities thus a good relationship between workers can be created. This business plan also will enable other external investors like shareholders, banks and supplier to invest in our business. It also enable us to carry out a survey to indicated whether the plan can achieve success or not. This plan will be studied thoroughly from every aspect so that it can be perform practically.

3. COMPANY BACKGROUD
Business Name Business Address Irise Laundry Services No.8,JalanPinangE/!8; Section 18, 40000 Shah Alam, Selangor Darul Ehsan. Correspondence Address No. 8,JalanPinangE/18, Section 18,40000 Shah Alam, Selangor Darul Ehsan. Phone number Form of the business Email Main activities No.of registration Date of commencement Initial own capital 03-21240336/37 Partnership business Irise @ chek.com Normal washing, dry cleaning, ironing, comforters And curtains. Work in progress 1 January 2003 Partners Contribution :- RM 100,000 1. Wardatul Raihan Bt Ahmad 2. Kamariah Bt Baharin 3. Wan Nurul Hafiza W. Mahmood 4. HasraummiBtHaron 5. ShahidaHannaniBtAbdurRafar Name of bank Bank Rakyat RM 20,000 RM 20,000 RM 20,000 RM 20,000 RM20,000

3.1 PARTNERSHIP AGREEMENT 1) Parties to the agreement i. ii. iii. iv. v. Wardatul Raihan Bt Ahmad KamariahBaharin Wan Nurul Hafiza W. Mahmood Hasraummi Haron ShahidaHannaniAbdurRafar 831018-03-5330 830207-01-5684 831001-03-5828 830406-10-5420 830915-06-5276

2) Nature and place of business Partners had agreed to carry on the business of laundry services activities. The business will be operating at No.8, Jalan Pinang C 18/ C Section 18, 40 000 Shah Alam, Selangor Darul Ehsan. 3) Firm Name The firm name that has been agreed between partners and registered under the Registration of Business is Irise Laundry. 4) Duration of Partnership The partnership business will be commencing on 1 January 2003

5) Provision of Capital All partners agreed to contribute the capital to the partnership business as follows: Wardatul Raihan Bt Ahmad Kamariah Baharin Wan Nurul Hafiza W. Mahmood Hasraummi Haron Shahida Hannani Abdur Rafar RM 20,000 RM 20,000 RM 20,000 RM 20,000 RM 20,000

6) Division of Company and Profits It is being agreed between partners to the division of capital, profits and losses in the proportion as follows:Wardatul Raihan Ahmad Kamariah Baharin Wan Nurul Hafiza Wan Mahmood Hasraummi Haron Shahida Hannani Abdur Rafar 1 IS 1/5 1/5 1/5 1 IS

7) Partnership Property All property and rights and interest in property originally brought into the partnership stock or acquired whether by purchase / otherwise on accounts of the firm or for the purposes and in the course of the partnership business are called partnership property and must be held and applied by the partners exclusively for the purposes of the partnership and in accordance with the partnership agreement. Property bought with money belonging to the firm is deemed to have been bought on account of the firm. 8) Movement of Business Wardatul Raihan Bt Ahmad Kamariah Baharin Wan Nurul Hafiza W. Mahmood Hasraummi Haron Shahida Hannani Abdur Rafar

-General Manager -Administration Manager -Operational Manager -Marketing Manager -Financing Manager

9) Methods of Dissolving a Partnership Due to the death or bankruptcy of any partners will cause a partnership to be dissolved. However the partners are advised to continue the firm activities in the event of death or bankruptcy 10) Change in the Firm All partnership is able to introduce a new member and it is necessary to make provisions for a retiring partner or agent of deceased partners to appoint another as a new partner.

PARTNERSHIP AGREEMENT CERTIFICATION

This agreement dated on 1 October 2002 between Name 1. WARDATUL RAIHAN BINTI AHMAD 2. KAMAMAH BINTI BAHARIN 3. HASRAUMMI BINTI HARON 4. WAN NURUL HAFIZA BINTI W.MAHMOOD 5. SHAHIDA HANNANI BINTI ABDUR RAFAR i/c no 831018-03-5330 830207-01-5684 830406-10-5420 831001-03-5828 830915-06-5276

Addressed at No.8,Jalan Pinang E 18/E,Seksyen 18,40000 Shah Alam, Selangor.We are agreed to fulfill all requirement that is stated in the agreement. AND as partners, we are liable and responsible on any profit or loss made by the company. HERE, it is agreed and certify about the foliowings :1) This business is named as Irise laundry which carries business on laundry service 2) Total equity is RM300735.06 including loan amounted to RM20735.06 3) Each partner has shares amounted to RM20000 4) Partners are entitled to receive monthly salary from this business's activities 5) Liabilities on assets, profit and others which related to business is shared equally. 6) Retirement notice must be issued within 30 days from the retirement date. 7) If there is any misunderstanding between partners, decision is based on majority of partners.

Partners:

(WARDATUL RAIHAN BINTI AHMAD)

(KAMARIAH BINTI BAHARIN)

IP

(HASRAUMMI BINTI HARON)

(WAN NURUL HAFIZA BINTI W. MAHMOOD)

Mn

(SHAHIDA HANNANI BINTI ABDUR RAFAR)

Witnessed by:fflMU (SH^MEEN BINTI IDRIS)

$#u
(SITIFATIMAH BINTI JOOLKEPRI) 9

COMPANY'S LOGO

We agree to pick jersey as our logo main body. The clipper symbolized the mutual trust and confidence that exist among of all the partners. Bright is chosen to represent our hope for bright future. Reasons why those color are chosen are explain below: RED YELLOW BLUE WHITE Represent our willingness to bear the risk by involving in this type of business This royal color shows that we offer first class services to the customer Represent inter-group unity that exist between us It is our priority to maintain the cleanliness of our customer's garment

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4. PARTNERS BACKGROUND
4.1 GENERAL MANAGER Name Identity card no Permanent Address Wardatul Raihan bt Ahmad 831018-03-5330 Simpang Tiga, Kg.Alor Pasir, 16250 Wakaf Bharu, Kelantan. Correspondence address No 31 Man Limau Madu 11/2G 40100 Shah Alam Selangor Telephone Date of Birth Age Marital Status Academic qualification Course Attended Skills Experiences Present Occupation 012-9289682 18 October 1983 26 years old single Degree In Accountancy (University Technology of MARA) Seminar On Management Computer and IT conference Expert in international currency analysis and business administration Administration manager for 2 years at EON Bhd and auditor at audit firm for one year. Accountant

11

4.2 ADMINISTRATION MANAGER Name Identity card no Permanent Address Kamariah Binti Baharin 830207-01-5684 83,(F)PalongTimor2, 85100 BatuAnam, Segamat, Selangor Correspondence address No 1, JalanResberi 47500 PetalingJaya Selangor Darul Ehsan Telephone Date of Birth Age Marital Status Academic qualification Course Attended 017-7893584 07 February 1983 26 years old single Degree In Accountancy (University Technology of MARA) Seminar On Administration Management Program Usahawan Muda Skills Experiences Present Occupation Computer Literate and Able to speak Mandarin Auditor at Iskandar Sdn. Bhd Lecturer at UiTM Shah Alam

12

43 OPERATION MANAGER Name Identity card no Permanent Address Wan Nurul Hafiza Bt W.Mahmood 831001-03-5828 Lot 181,TamanSeri, Pengkalan Chepa, 16100 KotaBharu Kelantan Correspondence address No 32 Jalan Limau Nipis 11/4G 40100 Shah Alam Selangor Daml Ehsan Telephone Date of Birth Age Marital Status Academic qualification Course Attended 019-2451669 01 October 1983 26 years old single Degree In Accountancy (University Technology of MARA) Seminar On Managemant Seminar In Business Management by Kementerian Keusahawanan Skills Experiences Present Occupation Able to speak English and Mandarin Part time worker in laundry services Program Usahawan Muda Assistant Financial Manager in F&N Coke (M) Sdn Bhd.

13

4.4 MARKETING MANAGER Name Identity card no Permanent Address : : Hasraummi binti Haron 830406-10-5420 Jalan Iskandar,Kg Bkt Kapar 42200 Kapar Selangor Correspondence address No 32 Jalan Limau Barli 11/6G 40100 Shah Alam Selangor Darul Ehsan Telephone Date of Birth Age Marital Status Academic qualification Course Attended Skills Experiences Present Occupation : : 013-6024149 06 April 1983 26 years old single Degree In Accountancy (University Technology of MARA) Seminar On Managemant Program Usahawan Muda Able to speak in Japanese and Computer Literate Sales Promoter at Jaya Jusco for one year Marketing Executive at Fujitsu for 2 years. Marketing officer

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4.5 FINANCIAL MANAGER Name Identity card no Permanent Address Correspondence address : : Shahida Hannani Binti Abdur Rafar 830915-03-5586 G 179,Batu Satu, 28000 Temerloh. No 31 Jalan Strawberi 11/2G 47500 Subang Jaya Selangor Darul Ehsan Telephone Date of Birth Age Marital Status Academic qualification Course Attended Skills Experiences Present Occupation : : : : 012-9559209 15 September 1983 26 years old single Degree In Accountancy(University Technology of MARA) Seminar On Managemant Seminars In Business And Financial And Malay fluently. Auditor at Megat Sdn. Bhd for 2 years Accountant Mgt CPR, Computer Skill, Able to speak English

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W
WARDATUL R A I H A N AHMAD (GENERAL MANAGER)

0129289682
No.8, Jalan Pinang C, 18/C, Seksyen 18, 40000 Shah Alam, Selangor Darul Ehsan.

Tel:0321240336/37 Email: irise@chek.com

4
KAMA RXAH BAHARIN (ADMINISTRATION MANAGER)

-rffi
HASRAUMMI HARON (MARKETING MANAGER)

0177893584
No.8, Jalan Pinang C, 18/C, Seksyen 18, 40000 Shah Alam, Selangor Darul Ehsan. Tel:0321240336/37 Email: irise@chek.com

0136024149
No.8, Jalan Pinang C, 1 8 / C, Seksyen 18, 40000 Shah Alam, Selangor Darul Ehsan. Tel:0321240336/37 Email: irise@chek.com

W A N NURUL HAFIZA W . MAHMOOD (OPERATION MANAGER)

S H A H I D A HANNANZ ABD RAFAR (FINANCIAL MANAGER)

0192451669
No.8, Jalan Pinang C, 18/C, Seksyen 18, 40000 Shah Alam, Selangor Darul Ehsan. Tel:0321240336/37 Email: irise@chek.com

0129559209
No.8, Jalan Pinang C, 18/C, Seksyen 18, 40000 Shah Alam, Selangor Darul Ehsan. Tel:0321240336/37 Email: irise@chek.com

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ADMINISTRATION PLAN

5. ADMINISTRATION PLAN
5.1 ORGANIZATION CHART GENERAL MANAGER Wardatul Raihan Ahmad

'

ir

ADMINISTRATION MGR Kamariah Baharin

OPERATION MGR Wan Nurul Hafiza W: Mahmood

MARKETING MGR Hasraummi Haron

FINANCIAL MGR Shahida Hannani Abdur Rafar

SUPERVISOR

ACCOUNT CLERK

STAFF 1

TECHNICIAN

STAFF 2

5.2 JOB RESPONSIBILITY Position: General Manager - Administration Plan Main Responsibilities: > Conduct all parts in the business organization that is Administration, Financial, Marketing and Operation, > To make sure business rum smoothly. > To create strategy and future planning in meeting at the company management. > To make decision in any problem that company occurs while running the business. > Receive report from Administration, Financial, Marketing and Operation. > Alert of any planning for the business as detail as possible. Administration Manager - Administration > Manage the company asset expenses, Plan monthly expenses and other expenses. > Responsible to everything happen in the company while operating business. > Responsible to workers salaries, medical leave and emergency leave. > To employ workers according to they is education qualifying. Marketing Manager - Marketing Plan > Research on customers, needs, desire and satisfaction to increase the company's profit. > Try to fulfill the desires and needs of the target market. > Prepare the marketing strategy and sale forecast. Operation Manager - Operation Plan > To make sure that the production department run smoothly. > Arranged the production schedule regarding the to the order and production. > Ensure all production activities goes follows the schedule as arranged. > Have to ensure all machines and tools for production department runs very well and always provide good maintenance service.

Financial Manager - Administration Plan

Production Supervisor - Operation Plan Staffs - Operation Plan

> Manage all the business financial activities. > Check, control and kept account from time to time. > Ensures that the accounting system in the financial division of company provides reports and statements needed > for planning, controlling, and decisionmaking. > Make a financial analysis based from Financial Accounting and Management Accounting. > To make sure the production process follows the required standard and specific methods > Cooperate with marketing department to gain information about latest marketing strategy and customer desire. > To make sure that all of the services follows the standard requirement and quality before give back to customers. > Manage all the operation flow every day. > Taking care of electricity problem > Repairs any machine breakdown > As a temporary worker

Technician - Operating Plan

53 SCHEDULE OF REMUNERATION
NO 1 2 3 4 POSITION NO OF MONTHLY EPF (13%) WORKERS SALARY 1 1200 156 1200 1200 600 156 156 78 SOCSO (2%) 24 24 24 12

General Manager Administration 1 Manager 1 Financial Manager Account Clerk 1

19

5.4 LIST OF OFFICE EQUIPMENT NO 1 2 3 4 5 6 7 ITEM Meeting Table Table ChanComputer Sofa Fax Machine Telephone Total QUANTITY 1 2 6 1 1 1 1 PRICE/UNIT 500 200 60 2500 800 500 100 TOTAL PRICE 500 400 360 2500 800 500 100 5160

5.5 LIST OF ADMINISTRATION BUDGET FIXED ASSET COST (RM) Capital Expenditure/ 5160 Fixed Asset Monthly Expenses: Salary Telephone Stationery EPF SOCSO Other Expenses: Insurance Deposit: Rental Water Electricity Telephone Preliminary Expenses: Business Reg. Legal Fee Stamp Duty Total TYPE MONTHLY EXPENSES (RM) OTHER EXPENSES (RM)

4200 150 50 546 84 2000 2000 100 100 120 60 50 50 4480

5160

5030

OFFICE PLAN LAYOUT

o o
TABLE RACK

o o
CHAIRS COMPUTER
FAXM/ iCH][NE/PHONE

8ffl
I I ENTRANCE

LA

AJ

MARKETING PLAN

^dilli

JOT

1 1

6. MARKETING PLAN
6.1 SERVICE DESCRIPTION Nowadays, demand for laundry is increasing as more people especially in urban area have limited time to do house chores like washing clothes. Most of working people and student work in office or study in college from morning till night .Therefore, they prefer to sent their clothes to the nearest laundry shop. Other than that, normal washing machine that used in house has no capacity to wash comforter, curtain and certain type of garment such as Korean silk, velvet and blazer. These garments can only be clean through dry cleaning. Therefore, Irise laundry provided four types of services to satisfy the customer's demand. The services comprise of normal wash, ironing, dry cleaning, and curtain/ comforter shampooing, all at reasonable price. All of these services are operated under the same premises. For normal washing, the clothes will be folded or ironed and hanged depending on the customer's order. For ironing services, customers can bring their own hanger or buy it from the laundry shop. As for dry cleaning, the clothes will be hanged and covered with plastics and for curtain and comforter, they will be ironed before folded and put inside plastic bags. Our main target is to have most customers sending their clothes for normal washing and ironing during school days and work days. As for dry cleaning service, we targeted to have most customers during school holidays because many occasion such as wedding and company annual dinner are held during these days. Lastly, more customers will sent their curtain and comforter a month before festive season such as Hari Raya Puasa, Chinese New Year, and Deepavali. This is because, they want to tidy up the house for the special occasion .Besides that, the services is performed by Muslim workers, so it is suitable for all kind of customers including the non Muslim.

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6.2 TARGET MARKET Target market is groups of customers that have needs and wants that can be satisfied by the business through the supply of goods or services. The key factors that affect target market are geographic, economic and demographic factor. Geographic factor means that it depends on the location of the business and area surrounding it. Irise laundry is situated at Section 18, Shah Alam .This area consist of residential area. Therefore, under this factor, Irise laundry target market is the residents of Section 18 and also residents of Akasia and Cemara College. Economic factors relate to the income of the population. The Section 18's resident are mainly middle -class people .Therefore, our target market range from customers with income from RM 2000 to RM 5000. As for the students who staying in Akasia and Cemara College, most of them are sponsored students. To attract them, Irise laundry offered special price for students. That is our main target market range from students who has pocket money amounted from RM 300 to RM 500 per month. Demographic factor is mainly concerned about characteristic of human population or specific segments of the population. Nowadays, people especially in urban area are busy with work or study and they have limited time to do their house chores like washing clothes. Most of the residents of section 18 are working people and student. Thus, laundry is the most favorable alternative for them.

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63MARKET SIZE Market size refers to total potential purchase of target market including competitors's services or products within the same market. Competitors are other businesses who offer similar services or products to the same target market. We manage to do some assumption concerning market size after collecting relevant information from 3 competitors, residents of section 18, Shah Alam and students of Akasia and Cemara College. Below is the total of potential sales for all the laundry shop in Section 18, Shah Alam. 6.3.1 .Normal washing, comforter and curtain services Student 60%

Non student 40% Average customer per day = 40 person Average unit of sales (kg) per month Target Market Student Non - student No. of customer No. of customer per per day 24 16 month (30 days) 720 480 Unit (kg) per visit 6 12 TOTAL Total (kg) per month 4320 5760 10,080

Normal washing Comforter Curtain

50% 40% 10%

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Average sales (RM) per month

Services

Normal washing Comforter Curtain

Total (RM) Price (RM) Average Percentage Average sales sales (kg) ofservice (kg) per service perl kg per month ( % ) 5,040 1.71 8,618.40 10,080 50 4.00 16,128 4,032 10,080 40 1,008 3.50 3,528 10,080 10 TOTAL 28,274.40

6.3.2 Ironing and dry cleaning services Student 20% Non student 80% Average customer per day = 30 person Average unit of sa es (piece) per mont l Total Target Market No. of customer No. of customer per Unit (piece) per visit per day month (30 days) Student 180 6 6 720 12 Non - student 24 TOTAL

1,080 8,640 9,720

Ironing 30% Dry cleaning 70% Average sales (RM) per month Services Ironing Dry cleaning Average % of services sales per share month 9,720 30 9,720 70 Average sales per service 2,916 6,804 Price (RM) per piece 1.20 5.00 TOTAL Total (RM) 3,499.20 34,020 37,519.20

Total Market size = 28,274.40 + 37,519.20 = RM 65,793.60

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6.4 MAIN COMPETITORS EXCEL COOL LAUNDRY STRENGTH provide good services Have regular customer Large premise WEAKNESSES Prices are slightly high Premise layout is not suitable

SUTERA SUCILAUNDRY STRENGTH Reasonable price Have regular customer Strategic location HAZKLEEN LAUNDRY STRENGTH Strategic location offered carpet shampooing services Reasonable price IRISE LAUNDRY STRENGTH Owned dry cleaning machine (make dry cleaning services more efficient) clean and friendly environment with good services Reasonable price Large premise : beautiful decoration WEAKNESSES Newly opened and not yet established in the area Located quiet far from the main road Lack of experience WEAKNESSES Limited space: packed with furniture Not enough worker Services are quiet slow WEAKNESSES Limited space Dirty environment No dry cleaning service

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6.5 MARKET SHARE Below are the operations of market share for irise Laundry before and after the business entered into the market in percentage. " Percentage of market share before the entering of irise Laundry No. 1 2 3 Competitors Excel cool Laundry Hazkleen Laundry Sutera Suci Laundry TOTAL Monthly Sales expectation 26,317.44 21,711.89 17,764.27 65,793.60 Market share
(%)

40 33 27 100

Percentage of market share after the entering of irise Laundry No. 1 2 3 4 Competitors Excel cool Laundry Hazkleen Laundry Sutera Suci Laundry Irise Laundry TOTAL Percentage of market share losses No. 1 2 3 4 Competitors Excel cool Laundry Hazkleen Laundry Sutera Suci Laundry Irise Laundry TOTAL Loss of market share
(%)

Monthly sales expectation 21,053.86 17,106.24 14,474.50 13,159 65,793.60

Market share
(%)

32 26 22 20 100

New Market share

(%)

8 7 5
-

17

32 26 22 20 100

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6.6 SALES FORECAST

Months 1 2 3 4 5 6 7 8 9 10 11 12 Year 1 (2003) Year 2 (2004) Year 3 (2005) TOTAL Total Sales(piece) Total Sales(kg) 2047 1407 3802 2612 2574 1769 2632 1809 2691 1848 2925 2008 2047 1407 3276 2250 3451 2371 2047 1407 3802 2612 3802 2612 35096 24112 45633 31344 59324 40746 140053 96202 Total Sales(RM) 9,211 17,107 11,580 11,843 12,106 13,159 9,211 14,738 15,528 9,211 17,107 17,107 157,908 205,280.40 266,864.52 630,052.92

6.6.1 SALES FORECAST DESCRIPTION Figure of total sales are determined base on the experience of our competitor and assumption made by the marketing manager base on information collected from competitor. January Base on competitors' experience, our sales for January is approximately RM 3000 because the laundry shop is just opened. People are not fully aware of the shop existence; therefore we are planning to do aggressive promotion during this month. February Sales increase by 30% because Chinese New Year takes place in this month. This is simply because demand for laundry rise during festive season as people busy to clean up the house (specifically carpet and comforter) and also garments that can only be cleaned through dry cleaning such as velvet, animal fur, and silk. March until October During these months, as the shop becomes the attention of the target customer, sales will increase by approximately 15% every month respectively. However , sales for the month of July and October will approximately fall by 30% because during these month, student in Akasia and Cemara College is on semester holiday. November During the month, Malaysia celebrates Deepavali and therefore helps increase sales by approximately 30% December Sales will also increase by 30% as Hari Raya Puasa fall in this month.

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We assume that our sales for the second year and third year of operation will likely rise by 30%' every year. We believe that our target market will start to change their preference to our laundry throughout the year. With reasonable price and efficient services, target market will preferably choose and trust irise laundry better that the competitor.

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Market Share Before Irise Enter The Market

27%

40%

Excelcool Hazkleen Sutera Suci

33%

Market Share After Irise Enter The Market

20%

32%

22% 26%

rj

Excelcool Hazkleen Sutera Suci Irise

-IQfif

Sales forecast on first year

, n n

IOUUU

16000 14000 12000 10000 8000 6000 4000 2000

u
,

i
1

] 111i i i i i a
! I I I I I I I I I I

9 10 11 12

Month D Total sales(piece)

Months I Total sales(kg) Total Sales(RM)

Sales Forecast (2003-2005)

300000 250000 200000 150000 100000 50000

,_

J
Year Total sales(kg) D Total Sales(RM)

Y
D Total sales(piece)

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6.7 MARKETING STRATEGY The main objective of developing marketing strategies is to generate sales. As irise laundry is newly operating business, we need aggressive marketing strategies to introduce the laundry shop to the public. There are several strategies that will be implemented for above stated reason. It comprises of Service strategies, Price strategies, Promotion strategies, and Place and distribution strategies. Services strategies Our business offered services which are normal washing, ironing, dry cleaning, and curtain/ comforter cleaning. Our way of work is coordinated and very systematic so there is less risk of customer loosing clothes or mistakenly got other people clothes. Moreover, we are the only laundry shop in section 18 who owned dry cleaning machine. This has become major advantage for irise laundry because our dry cleaning service is cheaper and faster than other laundry shop. Other strategy is to provide a very friendly environment and very good services. To guarantee satisfactory, we use high quality washing soap powder and special decorative plastics to covered hanged clothes. Irise laundry also recruited only Muslim staff for operating department. This matter is emphasized because Muslim customer is very concerned about how their clothes being treated. Some customer could be very choosy as they want their clothes to be washed only by Muslim. Price strategies Generally, irise laundry uses the available market price but for students, we provide new set of price that is only valid for normal washing and comforter. This is to entice students to send more clothes to our laundry. Unlike other laundry shops who use standard price for all type of comforter, irise laundry charged customer based on the weight of their comforter. This strategy is extremely attractive and it has been forecasted to attract many customers in future.

34

 Promotion strategies An attractive signboard will be put in front the laundry shop complete with colorful neon lamp to highlight the signboard at night. To promote the laundry shop to the students, a banner will be hanged on the college fence. Furthermore, we will distribute cute mini book marks that content our business name and location to the students. As for the residents of Section 18, Shah Alam, we will also hanged banner on the side of main road and distribute simple flyers to the target market area .We also provide business card for customers so that it will be easier for them to introduce our business to family and friends. (Sample are shown in the appendices) . Place and distribution strategies Irise Laundry is located near college and residential area. So, it is convenience for the students who majority does not have own transport to send their clothes. Our shop is also located near to the Giant Hypermarket which is the centre attraction of Section 18, Shah Alam. Therefore, our customers have no difficulties to find car park.

35

6.8 MARKETING PERSONNEL As irise laundry is only a small business, we do not need many marketing personnel. So, only one of the partners will be in charged on marketing and will be helped by the other partners. 6.9 SCHEDULE OF TASK AND RESPONSIBILITY No. 1 Position Marketing manager Task and responsibilities Look out for ideas and promotions that can generate sales without having to consume so much cost. 2 3 4 5 Marketing manager Marketing manager Teamwork Teamwork Ensuring the price of services is affordable and marketable. Design and create attractive flyers , banners and signboard Distribute flyers to residents of Section 18, Shah Alam and students of Akasia and Cemara College Seeking opportunities to expand the business in future

6.10 SCHEDULE OF REMUNERATION Position Marketing manager No. 1 Monthly salary 1200 EPF (13%) 156 SOCSO (2%) 24 1380 Total (RM)

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6.11 MARKETING BUDGET Type Signboard Banner Business card Flyers Mini book mark 1380 Mktg. manager remuneration TOTAL 500 1380 210 Fixed Asset Cost ( RM ) 500 50 50 50 60 Monthly Expenses (RM) Other Expenses (RM)

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OPERATION PLAN

7. OPERATIONAL PLANNING
7.1 OPERATION PROSESS In general, Irise Laundry services provides four types of services which are normal wash, iron, dry cleaning, and curtain/comforter wash. All this services will be operate under the same roof with administration, marketing and financial department. Normal working hour of operation department is six and half hour. Since this department is the most important department in our company, we have maximum working hour. The first services that is provided in our company and most favourable among the customer is normal wash. Once order is received from customer, the clothes will be separated according to the owner of the clothes and then put into a washer. A washer can operate with the capacity of 1 to 3 kg with 20 minutes operation hour. Since our company does not operate as traditional laundry service, then the clothes which already wash and spin will put into the dryer for 20 minutes. After that the clothes will go into 2 stages, according to the needs of customer whether the clothes will be iron or just delivered to them in bulk. A second service provided in our laundry company is ironing. The reason why we are providing this type of service is based on our survey that we did. The survey gives us result that people nowadays busy routine life make them does not have enough time to manage their own attire. The best solution to get out from their problem is just give their clothes to the person who can do the job and pay them at reasonable price. When order is received the clothes will put at the ironing section. The job will be done by our worker, then hang and ready to deliver. A third service which is available at our laundry company is dry cleaning. This services will treat certain type of cloths that need special treatment and maintenance such as Korean Silk, velvet and blazer. As usual, when order is received, cloths will separate and put together will other dry cleaning cloth. Then, the cloths are put into special machine for dry cleaning. This does not use normal powder to wash but use chemical substances. The cleaning will take about half an hour. Dislike normal wash, dry cleaning cloth will not put into dryer machine since the clothes are totally finished. After that the cloths will be bought to the iron section and finally delivered. 59

Last services provided in our company is curtain, comforter, blanket and bed sheet cleaning. This service becomes popular among customer because they does not have proper machine in their house to wash these cloths. The operation flow for this type of service basically is same as normal wash. After all the stage of cleaning is completed, then it is delivered to customer. As the beginning, all the services mentioned above will be provided. In future we are planning to provide many more services in order to meet market demand such as door to door service and office services. Since that services need a large amount of capital, we need to focus on business growth first before planning to expand the business.

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CUSTOMER

NORMAL WASH WASHER

JIRON

DRY CLEANING

COMFORTER

w r
%

WASHER f
IRON IRON INSPECTION

J WASHER

DRYER

DRYER INSPECTION

HANG INSPECTION I JPACK

PACK

DELIVERED
*

DELIVERED

DELIVERED

DELIVERED

DELIVERED