Business Plan Hot and Cold - Business Essay Example
We decided to sell fried ice cream because there is no seller of fried ice cream in campus canteen - Business Plan Hot and Cold introduction. We then innovate the products by putting various fillings in it, such as Kit Kat, Oreo, Choco Crunch, Loackers and Chacha. We also do the live frying in front of the customers in order to attract them. In this paper, we would like to discuss about the entrepreneurial focus, entrepreneurial strategy which includes the strategy of generating and exploiting entries, creativity and the business ideas, as well as domestic and international opportunities.
b. Selling propositions Selling propositions or usually called Unique Selling Proposition (USP) is a marketing concept that was first proposed as a theory to understand a pattern among successful advertising campaigns of the early 1940. A company must make an advertisement that makes the proposition to the customers. Through that unique selling proposition, the consumers have to be convinced to but the company’s products. Hot and Cold has been using selling propositions of “When Ice Doesn’t Melt In The Frying Pan”.
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Here is to tell the customers the uniqueness of the company’s product which is fried ice cream. Hot and Cold offers ice cream plus various toppings covered by fried bread and the ice cream is still frozen. Hot and Cold aims to give different experience to the FEUI students. There is no competitors selling the same products as Hot and Cold sells in campus canteen. Thus, the selling proposition can be very helpful to attract the customers buying the company’s products. The targeted customers will be wondering what product this company brings when they hear our selling propositions.
Since HOT AND COLD 3 there is no company selling the same product in our market, Hot and Cold’s selling propositions can be very strong and successful in bringing the customers in. c. Focuses on The Market Size Trends : IUP Students : In Indonesia which that has a tropical climate people would like to consume cool foods, so we decide to create fried ice cream which that give an innovation from regular ice cream that people consumed often. Characteristic Growth rate 100 products per day. d. Who Are The Founders?
(Short CVs of the Founders of Hot and Cold) Putri solikhin : My experience is I have my own business which is in food sector my products are tahu pedas, bakso kelereng, and keripik pedas that still running until now. I’ve stared my own business in 2010 for keripik pedas, last year for tahu pedas and bakso kelereng is this year, my target market is mill-hand for tahu pedas so I sell my product near manufactory buildings, I have two branch stores for tahu pedas and one store for bakso kelereng .
For keripik pedas my system is reseller so I have 20 reseller in Semarang, Solo, and Bekasi, and I send my keripik pedas by service delivery like Tiki. That is my short CV. Vania Prameswari: I have experienced in selling foods. In high-school, I used to help my mother and my grand mother to sell their home made food to my friends, such as; Rendang fried rice, Kue Aci, Steak, Lidah kucing, and many more. Usually for the main course I could sell it 20 box per day, and for the snacks I brought it according to the orders from my friends. In
college, I made Chocolate mousse and try to sell it to IUP students for fund raising program, usually I sell it 30 packs per day. Nowadays I’m developing few HOT AND COLD 4 : In the hot weather we sell cold food which can make people : Now our growth rate is 40 products per day, we want to reach feel freshen their body with consuming cool foods. desserts recipes, and for the future, my mother and I planned to open a small canteen at the back of our house. Dyah Trisnawaty: I haven’t run any business yet. This Hot and Cold is my first time.
However, I have some experience in organizing an event that enhance my ability in management. I also able to communicate well with people, to have a deep commitment on something and eager to learn and achieve more and more. In this case, I have skill in making fried ice cream which is very needed in running this business. I also am able to give good ideas to innovate the products and differentiate them RR. Bremerina Wildawati W: I have no experiences in business. But, I have some experiences for being a treasurer, first is in junior high school, I was a treasurer in Theatre extracurricular.
Second is in senior high school, I was a treasurer in a sport organization. And the last one is in the college; I was a general treasurer in UI Band Competition 2012. And my experience for being a treasurer is useful in my business, because I used to make a financial report and I can make it for my new business. Talita W. Bachtiar: I have no experience in conducting some individual business. Yet I have several experiences in gathering money. The latest one is, I was looking for many sponsors to fund the biggest economics competition among senior high school student in Indonesia, leading 8 people of staff, and
organizing meetings and method. The budget for this event is about Rp 400,000,000,- And as a result, it have been successfully covered more than that and my team and I have attracted 30 companies to become our sponsor. I have also successfully sold 200 tickets in the oldest Jazz event in Indonesia. Pinkan Fedria T: With one year experience as staffs in various divisions in my college, my capability to work in team keeps growing as I was trusted by my team as a person who always willing to learn new things and develop personal skill.
In the past, I have experienced in selling tickets to various parties for FEUI event called Music Gallery. By doing HOT AND COLD 5 that, I am now aware of how to target the market and can be applied to our business. For the business experience, I had once making a package of cheering pack for concert. My friends and I made it all by ourselves from our own ideas and successfully resulted in a profit. Moreover, since I am a student of International Program of UI, my English skill is improved. HOT AND COLD 6
CHAPTER II CONTENTS a. Entrepreneurial Focus Driven by perception of opportunity: we driven by perception opportunity that Indonesian people like to eat something new and has cold taste because the weather in Indonesia almost entirely tropical. That’s why we decide to make fried ice cream as our product. Revolutionary with short duration: we do revolutionary with short duration when we decide to innovate our product into some flavor, we decide to make it in some flavor like kit-kat, cha-cha, loacker, and oreo.
Many stages with minimal exposure: we face many stages when we decide to produce fried ice cream as our product, we do some experiment at first, after that we decide to give a taster to public to see is our product acceptable by consumer, after that we decide to make some flavor for attract customer, after that we give taster to public again after that we sell our product. Episodic use or rent of requirement resource: because we are still a small business so we do our production in our members of group house after that we sell it in university environment so we had a permission for place to sell our product.
Flat with multiple informal networks: we don’t have any informal networks. Based on value creation: based on value creation our product is still in a good product, because we serve our product with a good packaging. Rapid growth is top priority; risk accepted to achieve growth : our risk that we face is our ice cream melted before it’s fried so in the future we will decide to bring freezer to keep our ice cream freezing until it’s fried. Promoting board search for opportunities: we do some promotion by creating twitter so that our consumer can now where and when we sell our product. HOT AND COLD 7 b.
Entrepreneurial Strategy Entrepreneurial strategy refers to the set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry. New entry here means offering a new product to an established or new market, offering an established product to a new market, or creating a new organization. In this case, we decide to create a new organization, named Hot and Cold selling new product which is fried ice cream with many variant. Looking at the diagram above, when developing new organization, we need to combine various resources such as knowledge, capital, human resources and entrepreneurship.
Hot and Cold is established based on brilliant ideas of the owners that choose to innovate the common fried ice cream with various fillings. By doing that we are able to generate new entry and take the opportunity which then needs to be assessed in order to decide whether to exploit or not. In order to be able to compete in the market, the resources used must be valuable, rare and inimitable. We believe that in the market we are in right now, our product is rare and produces using rare resources. Before deciding what products to produce, we have been conducted market research that can enhance our market knowledge.
We found that there are no campus canteens selling fried ice cream, but there is one near the campus. However, they sell just ordinary fried ice cream, filled HOT AND COLD 8 by pure ice cream only. Then we decided to innovate by putting various fillings in it such as Kit Kat, Oreo and so forth. There are some uncertainties in selling fried ice cream in campus. First, weather today cannot be predicted. In this case, we sell a hot and cold product, hot outside, cold inside. Then we have to convince customers that whether the weather is sunny or rainy, they can still enjoy our products.
Second, because we do not have any store yet, we do not have any refrigerator to store the ice cream while selling. To overcome this uncertainty, we use cooler box that can keep the ice cream frozen for a quite long time so that we do not disappoint our customers by selling melted ice cream. c. The Decision to Exploit or Not to Exploit the New Entry Opportunity Search and knowledge Search here means searching what business to create. In searching it, each of my group members is giving a different idea. And after that, we collect all of the ideas and deciding what business that we want to create and what product that we want to sell.
For knowledge, since our group members are FEUI students, our knowledge about marketing, business, accounting, entrepreneurial, and any other economic knowledge are the same. Preference for error: omission or commission From the information that we got, an error of commission is one where the person responds or does something where they should not. This is compared to an HOT AND COLD 9 error of omission, where the person fails to respond or do something when they should. Those types of errors have to be faced, wherever we start our business, the error must be coming up.
Level of information on new entry As a beginner in business world, our level of information as a new entry is the same, because none of us has been doing a business before. But, we can analyze the situation of the target market or make some researches to know more on new entry. Window of opportunity still open The opportunity to create a business always opens to everybody in FEUI. So, we confidently will utilize the opportunity to create a business. Comfort with making decision under uncertainty This business future is categorized as uncertainty business.
Because we do not know what will happen in the future or we do not know if our prediction about the future is true or false. But, our group is comfort with making decision under uncertainty. Go/no go decision to exploit new entry Our group decision is to exploit new entry. After we consider all of the possibilities, we still want to run a business in FEUI although we have to face the uncertainty. And finally we decided to make a business in culinary field; it is called Fried Ice Cream. d. Methods of Generating New Idea Our entire plan of business is elaborating something that has been made by someone else.
Some package of dessert, some service for photo booth and fried ice cream have already been exist product and services. But as we observing the market of dessert, they are a big amount of dessert lovers spreading in feui. They usually find dessert at the nearest restaurant, which usually in Kemang. Although there are several seller of dessert at margonda, the student of feui is not really noticed it. Since the class time in feui is so busy, there is no time for them to find this kind of food. So we HOT AND COLD 10 use these opportunities to start selling a dessert, which is fried ice cream.
For making them easy to find, we decide to sell our fried ice cream at the iup feui building, so everyone can reach to taste our product at the break time. This idea has been generated by using brainstorming method. We were gathering a list of ideas spontaneously contributed by all of our members. We have said as much as possible idea for sweet food that would be combined to be one dessert. And as the conclusion, the sweet foods that became a trend in the adolescent flavor taste. And than we choose the most favorite sweet food to be combined in one dessert, the result is 6 flavor of
fried ice cream. Oreo, lockers, cha-cha, Choco crunch, Nutella, and kit-kat. This is not a usual thing of offering fried ice cream. As we looked at the existing fried ice cream that one of which is on Margonda Depok, they are producing fried ice cream in its really original of taste. They just cover the ice cream with bread and than fry it for 1 minute. Therefore, we are elaborating the ideas of fried ice cream to be modified by adding nutella and adding topping before it covered with bread flour. We also use this kind of flour to make the fried ice cream taste crispy.
By solving a problem in this business, we also did a brainstorming to list as many as possible solution for every single problem. In example there was no plastic for putting the fried ice cream. So the result is, in giving our product to buyers, we can make small paper bag to bring the fried ice cream, we can also use a zipper plastic bag with our brand sticker, it is possible to make a mini box to put our fried ice cream. And the decision is using a zipper plastic with our bran sticker. HOT AND COLD 11 e. Illustration of Parameter Analysis Parameter identification 1: 1. At first, our group wanted to do a photo booth business.
This idea was created because we see that some of our friends specially the girls like to take themed and effected picture. In addition some of our group member has the technology to do it. We plan to open our stand at FE IUP building and selasar. However, we realized that in order to attract people to come to our booth, it should be on a special occasion or event. Hence, we cant run the business if there’s no events in FE UI and we also have to work together with the events committee to rent the booth. This is costly and not flexible. Therefore we decide to move on with another idea. 2.
Second plan was to create a dessert package. Some of our group members used to make and sell desserts like pudding, chocolate mousse, fried ice cream and chocolate ball. In addition we see that from the selling experience dessert was quite demanded for FE IUP student, specially desserts like chocolate mousse, cupcakes, and other small packaged desserts. Therefore we came to the idea of creating dessert package which contain three or four small desserts in a box. This could ease the consumer to carry, choose the desserts, and have variety of desserts just by one purchase. The target market was FE IUP students.
HOT AND COLD 12 Creative Synthesis 1: 3. The second idea / plan was agreed by all the group members. After agreeing the idea, we start to make weekly plan. We also start to think of the packaging we decided to use cardboard as the main material of he package / box and also to try to design and color the package / box by ourselves. After the plan is set, we try to do it and the result was not like we expected. We even have no time to buy and make the trial boxes. We also think that it was too complicated to execute the plans because we need to do a lot of small things and details, which we have no time for that.
As a result the next meeting we decided to cancel the plan and try to start from the beginning, which is creating new ideas. Parameter identification 2: 1. Our next plan was to produce and sell fried ice cream. In order to differentiate with other fried ice cream, our product have fillings inside the fried ice cream such as; Kit-kat, Cha-cha, Lockerz, Oreo andChoco crunch. We came to this idea because one of our friends has experienced in making the fried ice cream and we think that it was not as complicated to prepare as the previous idea. Although it needs few tools and equipments during the selling, but we think we still can handle it.
The packaging is also simpler than the previous idea because we learned from our previous idea that we had no time to create a packaging that we desire. Creative synthesis 2: 1. Fried Ice Cream was our final decision. We start to delegate tasks to the members, some of the members brought the equipment during the selling process, and some other make the rare fried ice cream. We decided to fry the ice cream at the time when the consumer buy. The reason is because it is more fresh, it keeps the ice cream inside the bread frozen, and it can attract people to come by the smell of the fried ice cream.
Realization 1: 1. Before selling the product we first create the testers. We ask some FE students to try our product and gave us their opinion. The tester was a success, most of them like it, we also get the information which product they like best, it was HOT AND COLD 13 the Kit-kat fried ice cream. Therefore we decided to produce the fried ice cream with kit-kat fillings more. 2. At the first day of our selling, people were very enthusiast. The reason was because we fry the fried ice cream live and many of our friends help us to market out product, some of them even help us to sell the products.
At the end of the day we sell 40 pieces of fried ice cream. The profit that we have from the first selling was very small, this was because the start up cost is quite high. Therefore we decided to sell it again in the future. However, we encountered some difficulties during the selling process. Parameter Identification and Creative synthesis 3: During the realization / the first selling process we encountered several problems and difficulties, such as; 1. We ran out of frying oil. At that time we bought it straight from the nearest store in FE. This means that we need to prepare more frying oil for the next selling process.
2. Some of the Fried Ice cream was a bit melt at the inside, it was not that frozen. This was happened because we only use cool-box to cool the raw fried ice cream. Therefore we have to find another way to freeze the raw fried ice cream for our next selling. We might board out our raw fried ice cream to Koperasi because they have ice cream refrigerator. 3. The size of the bread was not the same, some of them was slightly different. Due to this problem, some of the packaging did not fit with the product, so we have to you two packaging to handle 1 product.
From here we learned that we should make bigger packaging to ease us place the product inside the packaging. Due to these problems our group decided to sell our product one or two more time in the future in order to have higher profit, to fix our problems and to understand the market more. HOT AND COLD 14 f. A Model of the Opportunity Recognition Process It is fundamental to the entrepreneurial process that some entrepreneurs must have the ability to recognize a business opportunity. The figure above comprehensibly establishes the aspects of this opportunity recognition process.
The successful outcome of the opportunity recognition can be defined from the prior knowledge; that comes from education and experience, entrepreneurial alertness, as well as entrepreneurial networks. The first aspect is prior knowledge of markets and customer problems that occurs from the education and experience. There are two kind of experiences in the figure, personal experiences and work experience. In relation to our business, since we are all together come from the same university, the current education will be the same. We are all economics student, but the majors are different.
However, the basic of the education will still be the same, that is all about economics. By having this education, it indicates that we do not have to worry about the prior knowledge of markets because all of us have studied marketing which discussed about the markets and customers. Another source to get a prior knowledge of markets and customers problems is experience Experience could be work experience or the various of personal experiences. As we all are still in college, the work experience we got is mostly from the organizations or past events.
For example, one of us is the member of EIS , so that she somehow already knew the characteristics of most of the IUP Students of FEUI. This can be the advantage for identifying the customer problems. Relate to personal HOT AND COLD 15 experiences, all of us have experienced selling products so for the knowledge of marketing will not be a problem. The second aspect to reach a successful opportunity recognition outcome is entrepreneurial alertness. An entrepreneurial alertness is the ability of entrepreneurs to spot new business opportunities in the environment.
In this case, we actually have seen in a market that people already have Fried Ice Cream as their products. However, we spot some part missing in those products and manage to identify some new opportunities that can make us different from others. The result from entrepreneurial alertness is that our Fried Ice Cream have various flavours rolled in the bread. The third aspect is entrepreneurial networks. In business, entrepreneurial networks are such an essential thing. Entrepreneurial networks have a role to improve entrepreneurial projects by offering different types of resources.
The purpose of the entrepreneurial networks is to gather various professionals and resources that complement each other. The main needs to startup a business would be capital, therefore, entrepreneurial networks focus on providing financial resources. Entrepreneurial networks are involving lawyers, scientists, engineers, architects, investors, etc. Related to our business, for the startup business which is capital, it all comes from the members. We have not made any entrepreneurial networks since our business is also a small business, so that we did all of resources needed by ourselves.
By applying this model to our business, we have reached a successful opportunity recognition in our small business. Having economics as our background education as well as the personal and work experience, we are equipped with prior knowledge of markets and customer problems. Next, we spotted new opportunities in our business that is the various flavours of Fried Ice Cream that is the first in a market. Moreover, since we are still in the first stage, we have not involved in any entrepreneurial networks. We really hope to expand our business in a wider aspects so that the entrepreneurial networks will be made.
HOT AND COLD 16 g. Various aspect of culture Social culture: in social culture our product can be consume by children, parents, grandparents. Also our product can be accepted in consumption patterns. Religion: our product can be consume for all religion, because it’s Halal, and there are no meat in our ingredients because some of religion didn’t consume meat. Political philosophy: because we still a small company so that we didn’t has any effect from political philosophy, and also our product didn’t relate in any political views.
Economic and economic philosophy: there are no problem in economic and in our country there are only one currency that we used and our payment system is cash because our price still in reachable for consumer to pay it in cash, so it’s efficient. Education: in education sector we didn’t have any relation in education sector because we are selling food product. Manners and Customs: we only customs our shop more attractive to attract consumer to buy our product we give a poster also to attract consumer, because our product is take away product.
Language: because we still sell our product by our self so we can speak English and Indonesian language, and in the future if this business has a settle shop we will recruit our employee that can speak Indonesian and English. h. Our time line indicating the steps to successfully launch the venture. (Time Line attached at appendix 3) As it can be seen in the timeline, we need about 10 days to fix up our business plan. Fixing any deficiency, improving the lacking part, also narrowing our goal. After having all planned, there will be a week occupied for the mid-term examination week. After that, we start to refill our ingredients.
There are some remaining flavors we have now, but we have to purchase in order to produce more products. At the same time, there will be other members of our team making and designing the brochure and poster, as well as printing it. The brochure and poster are made to inform the target market that we will be selling next week so they will start getting curious. It will be given to all the students around FEUI. HOT AND COLD 17 At the end of April, we will start processing the ingredients. From April to mid-May, we will have two days for processing because we want to sell the products twice a week. The order would be processing 1 – selling 1,
processing 2 – selling 2 in a week and it will be happened in three weeks. Hopefully, in the last three weeks, we will get the profit and able to make the final report at the end of May. In the next 2 years, we would like to expand our business in various fields especially in the Marketing Area. We want more people aware of our products so that it will be easier for us to make wider market. In a short time, we wish to have specific date and time as well as place to sell the products by utilizing all the opportunities such as opening small booth at some events, visiting famous spots and giving testers, also renting small space near campus.
The first step we would like to reach is to have a vigorous promotion to the whole Faculty of Economics and at the same time, introduce our products to our neighborhood such as Faculty of Engineering and Faculty of Humanities by giving testers. Next, we really want to improve our quality. Enhance the products can be made by changing the bread to high-quality brand, always keeping the ice cream in freezer, as well as adding more flavors other than sweets. The last thing, every business will surely aims for profit. We really want to earn and gain more profit as our business keep growing. HOT AND COLD 18
CHAPTER III CONCLUSION To run a new business, we have to search for information about the market and their reaction of our new products first. Then the information we have is compiled with other resources we posses and then develop the new products. Hot and Cold offering differentiated fried ice cream which is served with various flavors. Selling ice cream in campus gives us uncertainty about the media to keep the ice cream frozen and the weather as well. But we have thought about it before we actually run our business and we develop some strategies in order to generate high profit through satisfying the customers.
Now Hot and Cold has been operating for almost a month and has satisfied the customers through its innovative products. HOT AND COLD 19 Appendix 1 General Journal Hot and Cold General Journal For the Period From February 1, 2013 to Mar, 2013 No. 1 2 3 4 5 6 7 8 27/2/13 27/2/13 27/2/13 27/2/13 27/2/13 27/2/13 27/2/13 27/2/13 Date Transaction Buy Zipper Plastic Buy Regular Van Buy Aluminium Foil Buy Bread Buy Bread Flour Buy Hi-? cook Buy Egg Packaging Expense Ice Cream Expense Packaging Expense Bread Expense Bread Flour Expense Hi cook Expense Egg Expense Cooking Oil Expense Debit
Rp5,900 Cash Rp27,800 Cash Rp10,500 Cash Rp18,000 Cash Rp8,790 Cash Rp10,500 Cash Rp15,900 Cash Rp12,110 Cash Kredit Rp5,900 Rp27,800 Rp10,500 Rp18,000 Rp8,790 Rp10,500 Rp15,900 Rp12,110 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Buy Cooking Oil Buy Topping (Locker, Kit-? kat, Oreo, Cha-? cha, Choco 27/2/13 Crunch, Nutella) Give 10 pieces Tester 28/2/13 (mocked-? up) 3/3/13 3/3/13 3/3/13 3/3/13 3/3/13 3/3/13 4/3/13 4/3/13 Buy Bread Flour Buy Zipper Plastic Buy Cooking Oil Buy Bread Buy Bread Flour Buy Aluminium Foil Buy Hot & Cold Sticker Topping Expense Cash
Bread Flour Expense Packaging Expense Cooking Oil Expense Bread Expense Bread Flour Expense Packaging Expense Packaging Expense Cooking Oil Expense Ice Cream Expense Tissue Expense Topping Expense Equipment Equipment Equipment Equipment Cash Bread Expense Bread Flour Expense Ice Cream Expense Egg Expense Cash Rp83,800 Cash Rp-? Sales Rp35,160 Cash Rp25,500 Cash Rp21,570 Cash Rp72,000 Cash Rp35,160 Cash Rp10,500 Cash Rp12,000 Cash Rp37,000 Cash Rp63,980 Cash Rp16,190 Cash Rp21,570 Cash Rp14,990 Cash Rp19,990 Cash Rp14,990 Cash Rp32,990 Cash Rp480,000 Sales Rp90,000 Cash Rp8,790 Cash
Rp55,600 Cash Rp15,900 Cash Rp600,000 Sales Rp83,800 Rp-? Rp35,160 Rp25,500 Rp21,570 Rp72,000 Rp35,160 Rp10,500 Rp12,000 Rp37,000 Rp63,980 Rp16,190 Rp21,570 Rp14,990 Rp19,990 Rp14,990 Rp32,990 Rp480,000 Rp90,000 Rp8,790 Rp55,600 Rp15,900 Rp600,000 Buy Cooking Oil Buy Campina Chocolate 4/3/13 Ice Cream 4/3/13 4/3/13 4/3/13 4/3/13 4/3/13 4/3/13 5/3/13 18/3/13 18/3/13 18/3/13 18/3/13 19/3/13 Buy Tissue Buy Topping (Kit-? Kat) Buy Cooler Bag Buy Tongs Buy Ice Cream Spoon Buy Frying-? pan Sell 40 Fried Ice Cream Buy Bread Buy Bread Flour Buy Regular Van Buy Egg Sell 50 Fried Ice Cream HOT
AND COLD 20 Appendix 2 Financial Statements of Hot and Cold Hot and Cold Income Statement For the Two Months Period, February-? March 2013 Revenue Rp 1,080,000 COGS Rp 714,220 Gross Profit Depreciation Expense (Rp250,000/5 years * 3/12) Rp12,500 Net Income Hot and Cold Balance Sheet March 31, 2013 Assets Account Payable Rp1,232,820 Equity Retained Earnings Rp320,460 Owner’s Capital 6 Owner @Rp 200,000,-? Rp1,553,280 Total Liabilities & Equity Rp353,280 Rp1,200,000 Rp1,553,280 Liabilities 0 Rp365,780 Rp353,280 Current Asset Cash Non Current Asset Equipment Total Assets HOT AND COLD 21
Appendix 3 Time Line Milestone Business Planning Producing Refiling Ingredients Processing the Product Selling the Product Marketing Making Brochure and Poster Printing Final Report Working Days 10 5 6 6 5 3 7 March 3 4 April 1 2 3 4 May 1 2 3 4 HOT AND COLD 22 Background of Venture Hot and Cold was established in February 2013 due to the tasks of Entrepreneurship subject. This business is run by six members with flat organization. Hot and Cold sells fried ice cream with new and unique variant. Hot and Cold has been using selling propositions of “When Ice Doesn’t Melt In The Frying Pan.
” Here is to tell the customers the uniqueness of the company’s product. Strengths and Weaknesses of Venture Strengths: 1. The only seller of fried ice cream in UI 2. The product is distinctive since we provide many kinds of filling 3. High quality ingredients Weaknesses: 1. Quickly melt if the products put in the cool box 2. New entry in FEUI Marketing opportunities and threats Our marketing opportunities are our product is one of the new thing in the public, our product also can be marketed for all of age, culture, and gender. But our threats is to get our consumer interested with our product so they want to try it.
Because our product is on of new thing in public so we should attract them to try our product. Competitor analysis Because our product is one of new thing in public so there are not much competitor, but maybe in the future there are some competitor that we will be face. And how we will face our competitors in the future is by always control our products good and consistent taste so our consumer would not buy from other competitors, and also we will develop our product quality by some innovation to our product or services when we deserve our products.
Marketing Goals and Objectives “We must walk consciously only part way toward our goal and then keep in the dark to our success”. Everyone haz variety of dreams; little dream, medium dream or even a big dream which is said impossible to happen. As the entrepreneurs, we always have a dream which is usually manifested as an objective or goal. It seems that our goals and objectives are all about to be known in oublic, at least FEUI student, to have much profits and to be different in the market. Our groups formulate several strategies to be known by people, in hope that those peop;e will be attracted and directly buy uo our producy.
We have already stuck flyers at IUP’s building and spread our BBM’s status to inform our product selling schedule. Moreover, each of the packages was stuckt in different shape of sticker in order to be more appealing. SO, if the consumers have already thrown the plastic (package), other people may look at the sticker and be curious about it. In brief, we sdo all these HOT AND COLD 23 strategies to magnitize people to buy our product. As a result, we will get much of profit. And what are we going to do if there has already been much profit? Entrepreneurs need to be creative in investing theos money.
As our groups have passion to be the entrepreneurs, we are going to build small fried ice cream shop in FEUI’s canteen or on margonda street, Depol. To cater to the lifestyle of Indonesian people who love dessert, doing it, it is assured that people will be attractes with our new fantastic product. The other one that we strive is to be different in the market. We have modified the existing product which is bread and ice cream to be combined with various kind of delicios topping. As we have tasted many kinds of desserts in Depok, there haven’t been established a fried ice cream shop that provides various selections of toppings.
Hence we will be able to be one that creates this creative product. To sum up, our goals and objectives are summerized by these 8 of sentences. • To let people know that there is a fried ice cream in FEUI • To get profit which is twice as much as the cost of production • To learn investing money efficiently • To build up our business skills • To get at least 5 more twitter’s followers each week • To improve packaging • To sell in better place which has many of potential buyers • To create good relationship with customers After all, each of us is able to hitch a great business idea in the future.
Marketing Strategy and Action Programs Any entrepreneur should develop the marketing strategy and action programs for its venture when the venture’s goals and objectives have been established. These strategies and action plans are the tools used to achieve the venture’s goals and objectives. The strategies and action plans can be made based on the variables of the marketing mix, which are product/service, price, place, and promotion. Product: Hot and cold offers a product of fried ice cream. It differentiates its product by putting various filliings which never been done before by any fried ice cream sellers in Depok.
The fillings are Kit Kat, Oreo, Loacker, Chacha and Choco Crunch. This idea has made the product of Hot and Cold distinctive from any other fried ice cream sold in Depok. Price: To set up the price of a product or service, an entrepreneur should consider three important elements which are costs, margins or markups, and competition. The costs incurred for making fried ice cream includes for buying the ingredients of breads, fillings, eggs, and the ice cream itself. It also includes buying the equipment such as the frying pan and cooler bag. These materials come up to Rp.
7. 584,- cost for one unit of fried ice cream. Hot and Cold decided to have margins of 4416/7584 % or Rp 7584-4416 per fried ice cream, thus the price for a portion of fried ice cream is Rp. 12. 000,-. This price may be quite expensive for only a plate of dessert for some HOT AND COLD 24 groups of people. But since there is no seller of fried ice cream in University of Indonesia yet, Hot and Cold is sure that our product will still be purchased. Place: The point about the place or the distribution of the product is to make it as convenient as possible for the buyers.
Hot and Cold sells the fried ice cream in campus of FEUI, which is very reachable by the college students who are the Hot and Cold’s target markets. The college students can go out of the class and will directly find Hot and Cold booth in front of them. They do not have to take a walk to the campus canteen. This can be the competitive advantage for Hot and Cold since the consumers’ convenience is achieved. Promotion: Hot and Cold uses some promotion tools including Twitter, broadcast message in Blackberry Messenger, stickers and posters. The Twitter and Blackberry Messenger are used to promote the product constantly.
While stickers are distributed together with the package of the product and the posters are used to inform the potential customers when we are currently selling the products. Budget To run the marketing strategy effectively, entrepreneurs have to take costs into consideration. The expenditure for marketing strategy should be clear and allocate efficiently so it can meet the desired goals and objectives. This proves that budgeting the marketing strategy is as important as analyzing the strategy. As it is clearly written in the marketing strategy part, the cost of producing one unit of fried ice cream is Rp.
7. 375,- This includes the cost of buying the ingredients of breads, fillings, eggs, ice cream, and equipment such as frying pan and cooler bag that can be called as the budget for out marketing strategy. Moreover, the budget is considered low due to the free charge of distribution place. We are selling our product in campus of FEUI, which doesn’t charge any rental fees. This is one of the advantages running business in our own ‘home’. From the promotion aspect, Hot and Cold uses promotion tools such as Twitter, Blackberry Messenger, stickers and posters.
For Twitter, as expected, it doesn’t cost anything but time. For Blackberry Messenger, we are using our own Blackberry so it also doesn’t cost anything. It’s different case if we especially buy one for Hot and Cold. In addition, we distribute stickers and posters in order to invite people’s curiosity. The budget for printing stickers and posters are Rp. 50. 000,- for the whole 80 units of fried ice cream, which results in Rp. 625,- per unit. So if we round the price, we can get Rp. 8. 000,- as the cost of producing one unit of fried ice cream.
Overall, Hot and Cold still can cover up the cost of marketing strategy since Hot and Cold has margins of 50%. This indicates that Hot and Cold are still able to earn profit with this amount of cost. This process of budgeting the marketing plan will be included in the financial plan later on. Monitoring and Control Monitoring and controlling are used to track the progress of the marketing effort, basically it is to monitor and control the process implementation and after the results came it will be evaluated. In this case Hot and Cold is focusing on two factors; HOT AND COLD
25 product and promotion to be monitored and evaluated. The reason Hot and Cold focuses on those two aspects is that we are valued our product quality and the strategy to attract mass / consumer. The quality of the product is essential because we think that people will buy our product if the quality or taste is better than the others also considering that the price is worth as much as the quality. Promotion is also essential because it attracts consumer and trigger them to be curious of what we sell, thus the more interesting and unique the promotion it will attract more buyer.
Therefore it is important to monitor the product and the promotion. 1. Product Quality Control Hot and Cold use simple quality control for its product. Fundamentally Hot and Cold will check its product every stages in the production process, starting from the raw materials until it’s served to the customer. All the defective raw materials and products will be removed from the process of production. The measurement of the success of the control itself is by looking at the number of defected products in each stage (does it decrease in the 2nd , 3rd stage and so on?
) and number of defected products has been served to the customer. a. Raw Material Control Hot and Cold only buy materials that are in a good quality starting from having specific brand of bread and ice cream to produce our products. The reason that we choose a specific brand of bread and ice cream is because of the taste and the quality. Second, for the toppings / fillings we did not use essence for the flavorings, we use the real product such as kit-kat, Oreo, Choco Crunch, Loackers and Chacha. , It is a home made product so its guaranteed that we don’t use preservative b.
Production Process Control In order to avoid defected product being sold to consumer, therefore; all the production of Hot and Cold are hand-made. The benefit is that the defected product can be spotted easily and will be removed. Second, Hot and Cold also concern of cleanliness of its production process, we use plastic gloves to assemble the raw materials and to produce the products. Hot and cold also have to control the temperature of the storage; because we have to keep the products freeze before it goes to the frying pan. The strategy is the products have to be in the freezer for about 1 or 2 days before the time to
sell, this will help the product to be stronger (not easily melt) when it placed in the cool box. The last quality control is when it comes into frying; if the ice cream inside the bread does not freeze well it can not be used and could be counted as defective. If during the frying process the ice cream comes out of the bread or the bread does not stick / assembled properly then it has to be removed quickly. 2. Promotion Control Promotion can be divided into several types; price/sales promotion, advertising, personal selling, direct marketing, and publicity. Hot and Cold use direct HOT AND COLD 26 marketing, and personal selling.
Our plan is to use simple promotion strategy and therefore it only uses simple promotional control. To promote the products Hot and Cold use four media of direct marketing; Mouth to mouth, twitter, stickers, and posters. The reason we use simple promotion tools is because the target market is not that big so it can be reach through these medium. In order to control these promotion some of the medium need to be checked, and some others are measured by looking at the effects towards the sales. a. Twitter In order to spread the words easily and directly to the consumers Hot and Cold create a twitter account.
The account will be updated every time Hot and Cold has new information or event. The goal is to have 5 followers by each week. Not all of the members could use the account, there are 2? person that are able to use this account. The reason for this is so that the flow of information come from only one source which make it clear and consistent. So far our followers are still 6 people, therefore the twitter strategy does not run well for the past 2 months. Hot and cold need some incentives or attractive event or activity that require people to follow Hot and Cold twitter account. b. Stickers and Posters.