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Group Assignments
“KEREPEK UMI HOUSE”
LECTURER NAME:
MADAM NOOR FAIZAH BINTI MOHD LAJIN
PREPARED BY:
ZURINA BT MD NOOR 2013325011
MUHAMAD FAHMI BIN AB. RAHMAN 2013979701
TUTY HARYANTI BT AHMAD RODZI 2013102533
ROSLAWATI BT ABD MALIK 2013951797
GROUP : NMCPF8AY
CASE STUDY ANALYSIS FOR
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ANKNOWLEDGEMENT
First of all we would like to thanks to God for giving us strength and guidance during finishing
this case study assignment. Alhamdulillah, despite facing time constraints, we are able to
perform tasks by site visits, comparing a few business entity and completing tasks. Next, we
would like to say thank you so much to Madam Noor Faizah Binti Mohd Lajin, our dedicated
lecturer for teaching and guidance, giving us chances to explore and correct us for anything
during fulfilling phases for this research study. Besides that, we also would like to give thanks
to our dearest parent for giving us advise, strength and moral support as they are really our
loyal peer. Last to our team members who committed together for sharing ideas and
knowledge then together finishing this research study accordingly. Thank you so much.
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Table of Contents
1. INTRODUCTION ....................................................................................................... 5
7. REFERENCES…………………………………………………………………………… 21
8. APPENDICES………………………………………………………………………………22
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1. INTRODUCTION
Chips or commonly known as “kerepek” is a part of culture and lifestyle in the Asean
especially Malaysia. In a wider sense, it can serve as a representation of different
spheres of life and characters in people depending on its origins.
Many chips are intimately connected with take-out, snacks, and junk food.
Distinguished by its local flavor, it creates and mirrors culture and the environment.
According to Knowles (1998), its history can be found from the people’s nomadic
means of existence until the means of trade developed permanently that the food
genre eventually became its own unique category. This quality explains the cultural
and geographical characteristics of the above mentioned.
Kerepek can be then defined as a large variety of easy to eat and easy to
prepare meals and drinks particularly prepared especially during leisure, also as stated
and approved by F.G. Winarno, A. Allain of the Food Technology Development Centre
(1986). It is enjoyed and known by all. Everybody benefits from its healthy consumption
as well as it grants one important aspect in Malay culture finding pleasure in eating.
Several factors contributing to its popularity and demand in the country are its unique
taste and affordability. Its success led to a wider array of its kinds. Some of which are
Banana, Sweet Potatoes, Potatoes, Onions and Ginger.
Competition is common in all business environment which demand the attention from
firms to develop effective strategies to allow them to be different from competitors. In
the case of Kerepek Umi House, the existence of many similar competitors that offer
almost similar products. From year 1983 to 2015, there were many crisps
manufacturers arose in the state of Kuala Langat, Selangor. There are four competitors
registered with Majlis Daerah Kuala Langat (MDKL) that produce crisps such as Nas
Food Sdn Bhd, Perniagaan Warisan Usaha, Ros Kerepek and Syarikat JAEZ. The
main competitor of Kerepek Umi House is Kerepek House which is located in the
village of Kanchong Darat, near the company's location.
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The revenue of Kerepek Umi House had increased from times to times.
However, the increasing in the revenue was not because of the quantity of the
products. It came from the increasing of price of raw material of crisps. The company
found out that their customers went to another crisps' producers to make a comparison
in term of price, taste and type of crisps. This was not an easy task to carry out
especially when there are similar manufacturers especially, small micro enterprises
that offer almost identical products.
Besides one of the major challenged that faced by Kerepek Umi House is they
do not engaged with the implement of new communication technology such as social
media. The trends and convergence in communication nowadays has forced many
Small Medium Enterprise (SME) to approach new method in order to satisfy their
market approach. According to Heene and Sanchez, (2010), when a firm does not
work to improve its competitive advantage, it risks to lose its competitive life,
competences, ability to expand services and to enhance value of its capabilities, and
therefore loses business to its competitors. Consumers’ opinion and preferences to
choose goods and services can be the determining aspect relating to the point of
difference. Through the point of difference, a company is able to influence their
customers’ purchase intention. The organization needs to identify, which point of
difference influence their customers’ purchase and therefore create their intention to
buy. Kerepek Umi House must understand their point of difference and establish these
to the point of attracting customers to purchase their brands. There are common
characteristics that customers of crisps usually look for when purchasing crisps like
those manufactured by Kerepek Umi House. In order to justify the extent of influence
that these points of difference have on customers’ purchase intention, this study is
therefore carried out to determine which dimensions in the points of difference will have
the strongest influence towards the purchase intention of customers towards crisps
produced by Kerepek Umi House.
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1.3 Purpose of The Study
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2. COMPANY INFORMATION
2.1 Background
There are many small industries in Kuala Langat undertaken by the villagers. The resulting
product is marketed in the district of Kuala Langat and the Klang Valley. The resulting
product-based foods such as crisps and biscuits. These food products received
encouraging response by consumers especially during the festive season. The sign board
on the roadside all the way in Kampung Labohan Dagang shows Kerepek Umi House,
Ros Kerepek, and Perniagaan Warisan Usaha are the popular wholesale factories chips
in Banting. There are also other entrepreneurs who operate businesses of crisps on a
small scale. Kerepek Umi House was established on 1998 by Puan Hajjah Yaumi Haji
Ikhsan, 57, in Selangor and the company is located in a village named Kampung Labohan
Dagang, Jalan Kebun, Kuala Langat, Selangor. This company is a family owned and has
being managed by entire of their family assisted by other mainpower. As from our interview
session with the founder, this company is microenterprise, which is a small business that
employs less than ten people. The operation hours of the company are from Monday to
Sunday which is from 9.00 am to 9.00pm.
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2.2 Organizational Structure
The organizational structure for ‘Kerepek Umi House’ are as on below chart:-
Founder : Puan
Hajjah Yaumi
Haji Ikhsan, 57
Asisstant : Haji
Sadali Haji
Rudin, 63
Marketing :
Mohd
Hasbullah, 32
Frontliner :
Suhaili Binti
Matpol, 35
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2.3 Products
The main product that offered by Kerepek Umi House is chips which being extracted
by natural source such as potatoes, sweet potatoes and other natural source. As the
product being processed, the chips are being packed subsequently with estimated
net weight and packaging method.
Photo 2.3.1 : The chips that are ready packed being marketed.
Photo 2.3.2 : The chips that are packed up into wholesale size.
Overall the products that being marketed by Kerepek Umi House is based on natural
source which directly extracted from plantations and free from any chemical based
ingridients. Besides that, Kerepek Umi House also provided empty based packaging
(without labelling) to be marketed to subsequent small retailer.
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2.4 Business, Marketing, Operational Strategy
The company currently has only one small factory and shop. The company main
business is snacks’ processing and selling crisps in varieties packaging sizes. Kerepek
Umi House has many types of crisps selling at the shop including banana crisps, potato
crisps, tapioca crisps and yam crisps. The crisps produced by Kerepek Umi House
have many flavours such as spicy, black pepper, salty and curry. The company mission
is to maximize the profits on the sale of chips as well as providing services and
assistance to small and medium entrepreneurs (SMEs) and local operators. The
company also selling villager's crisps product in their shop instead of producing and
selling their own crisps. Kerepek Umi House also has been a tourists attraction since
the location of the company is near with Banting, Telok Panglima Garang and Jenjarom
region.
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3. COMPANY ANALYSIS
3.1 SWOT
Almost the
5 Price Almost the same Almost the same
same
Facebook,
7 Social Media None Facebook and blog Instagram, blog,
Youtube
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SWOT Analysis is a very actual and effective way of detecting business Strengths and
Weaknesses, and of examining the Opportunities and Threats faced by business
organizations as well. Holding out an analysis using the SWOT framework helps the
organizations to concentrate their activities into areas where you are strong and where
the greatest opportunities lie.
Our major competitor is Kerepek FAZZ and Ros Kerepek. Both business are in same
district, Banting, Selangor. Kerepek FAZZ was established on 1983 at Kanchong
Darat, while Ros Kerepek is a family business which established on 1989 at same
location Kanchong Darat. Both company provided same business with Kerepek Ummi
House which are processing food, supply and sell product. Below are comparing table
between those companies.
SWOT Analysis
Strength
1. Location
Kerepek Umi House located very near to Kuala Lumpur International Airport (KLIA)
which is 15 kilometer while from Kuala Lumpur is about 52 kilometer compared to other
companies.
2. Interesting place
About 1 kilometer from the company, is located a very popular place which is
Tadom Hill Resorts. A lot of people go there every weekend, public holiday and school
holiday.
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Weakness
Opportunity
1. Business opportunity
The location give more business opportunity because it is near Kuala Lumpur and
KLIA. People who live in Kuala Lumpur might choose the place because it is nearer
than the other two companies. While people or businessman who live outside the state,
can just come with flight and go to the company which located nearby the airport.
Threats
1. Lack of promotion. Lack of promotion makes businesses less familiar than two other
companies. Promotion is crucial in conducting a business to be more advanced and
can last longer.
2. Lack of skill and main power such as the use of more advanced machine technology
and speed up the product manufacturing process.
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1. Location
Kerepek Umi House located Marketing and Promotion
very near to Kuala Lumpur Kerepek Umi House failed
International Airport (KLIA)
in doing marketing and
which is 15 kilometer while
from Kuala Lumpur is about 52
also promotion. They just
kilometer compared to other market their product
companies. within Banting, Putrajaya
and Bangi. They also do
2. Interesting place not have any account on
About 1 kilometer from the social media to promote
company, is located a very their product, compared to
popular place which is the other two companies.
Tadom Hill Resorts. A lot of
people go there every weekend,
public holiday and school
holiday.
1. Business opportunity
Lack of promotion The location give more business
Lack of promotion makes opportunity because it is near Kuala
Lumpur and KLIA. People who live in
businesses less familiar than
Kuala Lumpur might choose the place
two other companies. because it is nearer than the other two
Promotion is crucial in companies. While people or businessman
conducting a business to be who live outside the state, can just come
more advanced and can last with flight and go to the company which
located nearby the airport.
longer.
Lack of skill and main power
2. Create social media account
such as the use of more
People nowadays use social media to
advanced machine technology promote their product in easily way. At
and speed up the product the same time, this platform helps to sell
manufacturing process product to target audience.
The Business Canvas KEREPEK Date:
15.10.2017
2. VALUE 1. CUSTOMER
7. KEY 4. CUSTOMER
PROPOSITION RELATIONSHIP SEGMENTS
ACTIVITIES
8. KEY After sales service
Special Contest through the
PARTNERS Production of All
packaging Social Media
kerepek using vacuum (Facebook/Instagram)
Gender
FAMA Hari Raya special All range
sealer
Packaging price offer
Local Free sample
of age’s
Multisizing
Authorities Special occasion Local and
Machines sizes and easy
services
3.2 Business Model Canvas (BMC)
to bring foreigner
Supplier everywhere All publics
6. KEY
Stakeholder RESOURCES Reasonable 3. CHANNELS
price
Raw Shoplot
Material The ingredients Cash On Delivery
are 100% halal FAMA
Postage
Lorry
Machines
Label
9. COST STRUCTURE
5. REVENUE STREAMS
Salary
Sales
Advertising
From customer feedbacks can always attracts new
Utilities bill
customer
Internet fees
Advertising
6. RECOMMENDATION AND SUGGESTION
Given that this chips business is only known from oral information sharing, from buyers
who have tasted chips, as well as word-of-mouth, some ideas and proposals are
suggested for the improvement of the business. Among the recommendations
suggested are:-
ii) Planting and farming courses. Entrepreneur such as Umi’s chips can attend
courses organized by government agencies and acquire new knowledge in
introducing existing products. For example, the government is actively
promoting agricultural activities among the public by offering land, planting
courses and more incentives. Entrepreneurs such as Umi chips can send labor
to participate in courses such as techniques and opportunities to grow cassava,
chili farming and others that become raw materials for their products.
iii) Packaging. Umi chips entrepreneurs also need to make packaging more
attractive, easy to open, easy to carry anywhere and user-friendly. For example
packaging that uses vacuum sealer technology can provide added value to
their products. Buyers like something simple. So attractive, easy and user-
friendly packaging can attract buyers to make consistent purchases and
contribute to the company's profitability and sustainable performances.
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Vacuum Sealer Technique
iv) Advertising and Promotion. Entrepreneurs and social media are very closely
related. Social media has made the world of communication timeless, unlimited
geographically and happening at all times. Therefore, whether like it or not
entrepreneurs need to make social media one of their advertising mediums to
promote their products. Furthermore, viral power is very strong and they need
to utilize it. Promotion abroad can also attract investors from outside to get
these Umi Chips products will add more revenue sources. It is not possible that
Umi Chips will be able to supply their products abroad.
v) Adding of workers and Main Power. Adding employees is also able to make
Umi's business run smoothly, orderly and maintain a good management
system. With a good management system, successful business opportunities
are better and able to produce excellent governance systems and can reduce
costs. Indirectly it can generate more revenue and benefited to employees.
Based on the above recommendations and suggestions, and assisted by the technique
of using the Business Model Canvas and also SWOT analysis, entrepreneurs like Umi
chips businesses can make their businesses more systematic, competent, organized
and ultimately contribute to the company's profits.
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7. REFERENCES
2. Mustafa, F. (2017, May 28). Kerepek Ubi Kayu RK Warisan Keluarga. Utusan Malaysia.
Retrieved November 7, 2017, from http://www.utusan.com.my/bisnes/usahawan/video-
kerepek-ubi-kayu-rk-warisan-keluarga-1.486983
3.Jin, B., & Sternquist, B. (2002). The influence of retail environment on price perceptions:
An explotary study of US and Korean students. International Market Equity, 19.
5. Khraim, H.S. (2011). The Influence of Brand Loyalty on Cosmetics Buying Behaviour of
UAE Female Consumers, International Journal of Marketing Studies, 3, (2), 123-133.
6.Keller, K. L., Apéria, T., & Georgson, M. (2008). Strategic Brand Management. Harlow,
England: Pearson Education Limited.
7. Cleverism. (1 March, 2017). Business model canvas - Value proposition. Retrieved from
cleverism: https://www.cleverism.com/business-model-canvas-creating-value-
proposition/
8.Cleverism. (1 march, 2017). Business Model complete guide. Retrieved from cleverism:
https://www.cleverism.com/business-model-canvas-complete-guide/
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8. APPENDICES
Facebook Page
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