UNIVERSITI KUALA LUMPUR

MALAYSIAN INSTITUTE OF AVIATION TECHNOLOGY

BUSINESS IDEA

PRODUCT TITLE : TEEBAG

COMPANY NAME :

PREPARED BY :

CONTACT :

TEL : 0138271258
FAX : -09 5477404
E-MAIL : K4H@[Link]

PREPARED FOR:

TABLE OF CONTENT
NO. CONTENT PAGE NUMBER

1.0 EXECUTIVE SUMMARY 4

1.1 BACKGROUND OF THE COMPANY/HISTORY 5

1.2 ORGANIZATION CHART
1.3 VISION, MISSION, TAGLINE
6
1.4 OBJECTIVE
1.5 LOGO
11

11

2.0 INTRODUCTION 12

3.0 PRODUCT DESCRIPTION 13

4.0 TECHNOLOGY AND PROCESS DESCRPTION 16

5.0 TARGET MARKET 18

5.1 MARKETING SEGMENTATION 18

5.2 MARKET SIZE 19

5.3 MARKET SHARE 20

6.0 MARKETING MIXS STRATEGY 22

6.1 PRODUCT STRATEGY 22

6.2 PRICE STRATEGY 22

6.3 PLACE/ DISTRIBUTION STRATEGY 23

6.4 PROMOTION/ ADVERTISING STRATEGY 24

7.0 BUSINESS MODEL 25

7.1 FIRST DESIGN 25

7.2 SECOND DESIGN

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 7.3 THIRD DESIGN 26

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8.0 PROCESS OF PLANNING 28

9.0 FINANCIAL STATEMENT 29

1.0 EXECUTIVE SUMMARY

Market values nowadays always demand for the good and quality things. As usual, many
people love the quality product but always ask for the cheap price. Our product is about a
drawstring bag which is made from high quality recycle t-shirts. The bag is really useful for

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people who have problem having unwanted t-shirt and instead of throwing it away, better recycle
it into a drawstring bag. By using this product, there are many benefits that users will get.

The products are made from recycle t-shirt and with the small budget one unit of the
product only take RM8. After add on with the mark up and labors for the worker, we cost it
RM15 for each bag. As usual, people will buy more the product to use for their own personal
occasion. The more they buy the less the price.

Apart from that, it maybe will cause some problem towards people especially in the rural
populations are not effort to buy this product. Although this product will give more benefit to
them, they still believe with their old own ways and dont want to spend money for this product.
Maybe some of them think that this thing not useful and the price is high of this product.
Actually, this product is very ecofriendly and we only use high quality material and also high
quality recycle t-shirt and we will indirectly reduce waste.

So, most of the consumer wants the product that not only gives more benefit but also
needs the product that requires the lower cost.

1.1 BACKGROUND AND COMPANY

HISTORY

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 The TEEBAG will be a sole partnership company owned and operated by Siti Khadijah
Taherah Binti Khairul Idzham. She was the founder of this product which is already exist and
innovate them into one creative drawstring bag. She creates a new 4 top executive member and
played their own role to achieve the objective.

The concept of developing this business came from the owners passion for crafts and her
desire to ease people in daily lifestyle and also reduce waste. The top executive member was Siti
Hajar Binti Azmi as human resources. Siti Nur Hanis Binti Rozali is responsible to manufacture
the product. And all about the finance and assurance wholly taken by Mohammad Haziq Bin
Kamili. The last top executive member is Muhammad Hanis Izzuddin Bin Abdul Latif accounted
for sales and marketing. With all the 5 executive, the business was run smoothly with minimal
problem.

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 1.2 ORGANIZATION CHART

CEO
MANAGER/
HUMAN
RESOURCES

MANUFACTURI FINANCIAL / SALES/MARKETI

NG / PRODUCT ASSURANCE NG

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1.2.1 List Administrative Personnel

POSITION NO OF PERSONEL

CEO 1

MANAGER/ HUMAN RESOURCE 1

MANUFACTURING/ PRODUCT 1

FINANCIAL/ ASSURANCE 1

SALES/ MARKETING 1

TOTAL 5

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Job Description

Personnel Position Task and Responsibilities

CEO Head of all departments in the

company.
Responsible to plan, direct and
coordinate the operations of
company.
Responsible in formulating
policies, managing daily
operations, and planning the use
of materials and human
resources.
Accountable for the overall
performance of the company.

SALES/ MARKETING Set the price for the product in

market
Define the advertising process of
the product
Define market trends and size

MANUFACTURING/ PRODUCT Supervises workers to ensure

efficiency
Managing daily operations and
planning the use of materials and
human resources
Determine the quantity of certain

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 items to be produced, inspects
the quality of workmanship.

FINANCE/ ASSURANCE In charge to oversee the

preparation of financial reports,
direct investment activities, and
implement cash management
strategies.
Take cares of all the important
financial functions of an
organization. She has to ensure
that the funds

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MANAGER/ HUMAN RESOURCE Maintains the work structure by
updating job requirements and
job descriptions for all positions.
Take cares of all the important
financial functions of an
organization. She has to ensure
that the funds

Ensures planning, monitoring,

and appraisal of employee work
results by training managers to
coach and discipline employees.

Maintains management
guidelines by preparing,
updating, and recommending
human resource policies and
procedures.

Contributes to team effort by

accomplishing related results as
needed.

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1.3 VISION, MISSION, AND TAGLINE
MISSION
To ease our costumer in daily routine and save waste

VISION
We inspire and enable better world through our product about the creativity, innovation and save
earth.

TAGLINE:

TEE TODAY TEE TOMORROW

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1.4 OBJECTIVES

i. Reduce waste
ii. Design new layout of the drawstring bag
iii. Produce low cost bag
iv. Eco green

1.5 LOGO COMPANY

INTRODUCTION

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 Nowadays, many people like style. They are willing to buy expensive products even if
they do not have strong financial. So, we need to be a creative person to make the products with
low capital.

That is why we created a product to fulfill the customers need, which is TEEBAG.
TEEBAG is a bag which is made from recycle t-shirts, needle and thread and string. The price of
the bag is very affordable and reasonable. It is easy to travel and not heavy. Our TEEBAG is the
kind of bag that people will need and require for everyday purposes.

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2.0 PRODUCT OR SERVICE
DESCRIPTION

SIZE
Our products size are fixed by the design as standard size of drawstring bag. For
example, our 1st design are fixed that is 30x40cm.

MATERIALS
i. Recycle t-shirt
ii. Cotton cording
iii. Needle & thread
iv. Scissors
v. Sewing machine

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 PRODUCT FEATURES
i. Our product is simple as we use recycle t-shirt and we create and innovate them
into several design.
ii. It is light and easy travel.
iii. This product can reduce waste, ecofriendly and also can use in any occasion.

BENEFITS
i. The price is cheaper than other bags.
ii. Easy to carry.
iii. Green product. ( Reduce the waste)
iv. Stylish and Simple
v. Fun color combination.
vi. Very good for travelling.
vii. Multipurpose bags

PRICE STRUCTURE

ITEMS QUANTITY PRICE/UNIT

REQUIRED (RM)
1. T-shirt 1 -

2. Cotton cording 3 meter RM3.00

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 3. Needle & 1 set RM15.00
thread

4. Scissor 1 pair RM2.50

5. Sewing machine 1 set RM20.50

3.0 TECHNOLOGY AND PROCESS

DESCRIPTION

1) Scissors to cut cloth into desired design.

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2) Sewing machine to sew the bag.

3) Sew chalk to make a line.

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 4) Sewing tape measure to measure the design of the bag

4.0 MARKET AND COMPETITION

4.1 MARKETING SEGMENTATION

I. To give the product that provides the need and satisfaction of the consumer as it will give
more profit toward them.
II. To increase the level of trusty of loyal customers to our product. When product is good,
the customer will come to us and trust our product and share with their friend about the
benefits of the product.
III. To provide the useful product for the users and make them satisfy with the product
IV. To increase the quality production and estimate market acceptance and sales
V. To introduce our product to all people as to shown the new product with many benefits

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4.2 MARKET SIZE
K4H SDN BHD are targeting 1000 people for early stage of the business. The targeted
people are mainly from students which is 70% from total target. We also target kids from
kindergarten, elementary and secondary schools which is 10%. The other 20% are from others
which includes public workers, teachers and individuals.

PERCENTAGE (%) NO. OF PEOPLE

TOTAL 100 1000

MARKET SIZE
STUDENT 70 700

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KIDS 10 100
(Kindergarten ,
Elementary and
Secondary
school)
OTHERS (Public 20 200
people ,
foreigners )
4.3 MARKET SHARE
After analyzing the market, we have determined our market share. Before we enter the
market, there are two companies that are conquering the market, Teras Terus SDN BHD and
Lilikeed SDN BHD. After we enter the market, there are slight changes in the market. We
manage to obtain 16% of the market share.

4.3.1 Market share before entering the market

Name of company Percentage of Estimated sales

share (%)

TERAS TERUS 55 30,000

SDN BHD

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LILIKEED & CO 45 25,000
SDN BHD

4.3.2 Market share after entering the market

Name of Percentage Estimated Percentage of

company of share (%) sales loss (%)

TERAS 44 26,000 1
TERUS SDN
BHD
LILIKEED & 30 20,000 3
CO SDN BHD

K4H SDN 16 15,000 -

BHD

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5.0 BUSINESS MODEL
5.1 FIRST DESIGN

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Our first design is a typical drawstring bag. As for student, they use this bag to put their
necessaries such as books, stationaries and water bottle. As for athletes, they can put their sports
kit such as shoes and boots.

5.2 SECOND DESIGN

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Our second design is a simple sling bag and very suitable for the ladies. Customers can put their
personal things such as car keys, hand phones, make ups kit, purses and wallets.

5.3 THIRD DESIGN

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Our last design is sachet bag. It is small, cute and easy to carry. We design this bag is several
sizes that is small, medium and large. For small size, our customers can keep coins and car keys
inside this sachet bag so that it will not scattered. For medium and large size, our customers can
put clothes and laptop for travelling.

PROCESS OF PLANNING

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Collects all the recycle clothes

Choose recycle cloth with high

quality

Design products layout

Manufacture products (sew)

Products are ready

Distribute to costumers

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FINANCIAL STATEMENT

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 K4H SDN BHD

COST OF GOOD MANUFACTURE AS AT 31 OCTOBER 2015

MATERIAL INVENTORY 30000

MATERIAL PURCHASE 8000

MATERIAL USED 8000

MANUFACTURING OVERHEAD 45000

UNIT MANUFACT 1000

COST PER UNIT 8

PRICE SALE 15

INCOME STATEMENT
SALES 15000

COST OF GOOD SOLD 15000

GROSS PROFIT 7000

EXPENSES

PROMOTION 500

SALARY 45000

TOTAL EXPANSES 45500

NET OPERATING 5000

INCOME TAX 30000

NET PROFIT 7000

ASSET
CURRENT ASSET 22500
INVENTORIES 4000
TRADE AND OTHERS 5000
RECEIVABLES 2500
SHORT TERMS INVESTMENT 500
CASH AND CASH EQUIVALENT 7000
PREPAID INSURANCE 3500
TOTAL ASSET 28
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