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1.0 Executive Summary 1.1
1.0 Executive Summary 1.1
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1.1
Executive Summary
Introduction
I-tronic is a trading company that generally known as produces a smart and innovation
vacuum cleaner known as Robo TAP. I-tronic is partnership business that venture by four
partners who will contribute same amount of capital and will hold different task &
responsibilities to manage this business.
The nature of this business is selected through experience especially for the housewives and
office cleaner. It is basically a modern way to clean up mess and dirty places in a short time
and it can save some cost of electrics and user energy.
Our future prospect of this business is our product can be used in many places such as
shopping mall, boutiques and shop lots apart from houses and offices.
1.2
The Product
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Robo TAP is a smart evolution of an automatic vacuum cleaner that is used to clear out the
mess from a targeted area. Being an excellent domestic cleaning robot, Robo TAP can clean
up messy spot as directed by the user.
It features a special IPS system attached to the users shoes and acts based on the users
movements. IPS is an indoor positioning system is a solution to locate objects or people
inside a building using radio waves, magnetic fields, acoustic signals, or other sensory
information collected by mobile devices.
When the user taps his/her shoes, TAP recognizes the signal and moves towards the messy
area to clean the same. Two or more taps will direct the robot to cancel the order. The
mechanism is relatively simple and it is as entertaining as tap dancing.
1.3
Company Summary
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I-tronic has been formed as a Malaysia registered Corporation. The company was
incorporated on 1 January 2016. It is a new entity with four individuals as the majority
shareholder. To start up this business, we need RM 900,000. RM 500,000 we get some loans
and we invested RM 400,000 which is each of us invest RM 100,000 to date, to complete
research and development and pre-production marketing of the product.
The nature of this business is selected through experience especially for the housewives and
office cleaner. It is basically a modern way to clean up mess and dirty places in a short time
and it can save some cost of electrics and user energy.
I-tronic head office is located at Jalan Persiaran Klang, 40400, Shah Alam, Selangor Darul
Ehsan, Malaysia. For the moment, the head office has adequate office space to conduct its
initial operations, however at some point in the future, management expects to outgrow this
office space and will be relocating to the new operational facility at Damansara Utama.
1.4
Company Ownership
I-tronic has been established as a Partnership company. The shareholder is Miss Nur Faridah
binti Saadi, Miss Nor Hanis binti Ramlee, Miss Nur Syahirah and Miss NorShaana it founder
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and also the financial manager. The company authorized share capital is RM 400,000
comprising 400,000 ordinary shares of RM 1.00 each. It had issued and fully paid up capital
amounting RM 400,000.00 comprising 400,000 shares of RM 1.00 each. Currently there is no
plan to include new shareholder to the existing arrangements.
1.5
Start-up Summary
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The following summary table shows the projected start-up costs during the six months
needed to get into production. It includes the supply of specific machinery and equipment
needed for the production. The start-up costs are to be financed by the money raised through
debt financing from a bank.
The funds sought for opening the processing the vacuum at RM 3,411,940 with projected net
profits, in the first year of over RM 508,060
Management expects to begin production in approximately 6 months from funding as detailed
in the Start-Up table below.
Use of Fund
1.6
Cost of Development
Amount
(RM)
508,060
Working capital
Total
391,940
900,000
Fulfillment
I-tronic is required to comply with various rules and regulations among a number of local,
state, and federal government agencies. As a Berhad (Limited) Company, it has to comply to
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Company Commission of Malaysia stipulated by the Company Act 1965. The Commission
had issued commence of business (Form 23) to I-tronic on 3 April 2015. I-tronic is also
required to maintain business and manufacturing license issued by MIDA. The company is
required to comply with additional environmental protection laws by Department of
Environment, Malaysia. I-tronic will subscribe to Employment Act 1955 for matter pertaining
to employment of personnel, Immigration Act if I-tronic decides to employ foreigners, EPF
Act 1951 and SOCSO. At the State level, Kuala Lumpur will have it own local authority
codes and it industrial planning code for setting a plant in the State.
At the Management level, I-tronic accounting policy follows generally accepted accounting
principles. The financials records are turned over to the CPA on a quarterly basis. I-tronic will
uses USB for its accounting software; Accounting is system based on the accrual method. The
fiscal year is based on year-end. Financial reporting methods include monthly, quarterly, and
annual statements.
An annual audit is to be performed by the firm's CPA firm in January before the Inland
Revenue Board of Malaysia Annual Return in May. I-tronic carries insurance for business
liability, automobile and addition group medical coverage for its staff. Additional insurance
programs such as key-man coverage will most likely be implemented in second quarter of
2015. Management has no knowledge of pending lawsuits or threat of legal action directed at
either the company or its officers.
Creating a value proposition is a part of business strategy. Kaplan and Norton say "Strategy is
based on a differentiated customer value proposition. Satisfying customers is the source of
sustainable value creation."
Developing a value proposition is based on a review and analysis of the benefits, costs and
value that an organization can deliver to its customers, prospective customers, and other
constituent groups within and outside the organization.
To build an effective business model, a company must identify which customers it tries to
serve. Various set of customers can be segmented based on the different needs and attributes
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4.0
Channel
Value propositions are delivered to customers through the communications, distribution and
sales channels. Theres two types channel that I-tronic have which is direct and indirect
channel.
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I-tronics channel considers the distribution channels that cover the way the online business.
Where our company have a relationship with wholesaler and retailers to involved in order to
reach segment customers.
For direct distribution channel our company using a website to let people know our product
and also to facilitate the customer make a purchase directly. Our website provides a blank
space for customers to provide feedback. we also use facebook page to advertise our products
so that more people recognize the this as our products, its because now facebook is the most
popular social networking site. It also allows users to find out the quality and function of the
vacuum innovation we produce.
While indirect channel to provide additional sources of market share and revenue that
normally are not attainable with direct sales force. Through this channel I-tronic Company
have a relationship with wholesaler and retailer such as Lazada.com, GoShop.com, Kawanku
sdn bhd and others. We will supply our product to wholesaler to facilitate the customer find
out our product because there are more commonly known by the public.
5.0
Customer Relationship
Customer Relationships are the relationships that our company wishes to establish with the
Customer Segments. Our company use the most important ways of building Customer
Relationships are through Customer Service, by building Trust and Credibility, and by letting
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customers evaluate the Value Propositions through Ratings and Reviews and also feedback.
Various forms of customer relationships include:
5.1) Our Company provide full disclosure about our product when interacting with a client
either online or face to face.
5.2) Our Company has post-transaction elements such as refer to the after-sale services and
include warranty repair capabilities, complain resolution and product returns. Every purchase
of our product will give warranty one year to gain the trust of the customer.
5.3) Our Company provide the customer feedback and also review and rating remind of
testimonials. Testimonials are positive customer comments and evaluations that are
specifically will be picked and placed on I-Tronics website. This is because ratings are
simple systems that give customers the opportunity to rate a Value Proposition on a
predefined scale. Besides, Customer can give feedback on the website or facebook page to
improve our product quality.
5.4) We also build networks as many as we can such as we provide email support, if
customers have a question they contact the online business by email to get an answer. We also
provide telephone support. It is the support form that establishes the strongest Customer
Relationships because customers get to talk, directly, with a real person.
easily to customers do their works. There are a lot of aspects to focus on the business such as
motivations. Motivations is really important to beginning a new product in market cause of is
not easily to make the customer satisfaction with our product. For a company I-Tronic need
to more motivation in world business.
6.1 Types of Partners
6.1.1) Strategic alliances between non competitors
A strategic alliances is an agreement for cooperation among two or more independent
firms to work together toward common objectives. In this relationship the partners to purse a
set of agreed upon goals or to meet a critical business need while remaining independent
organizations, partners may provide the strategic alliances for Robo-TAP with resources such
as products, distribution channels, project funding, capital equipment, knowledge or
intellectual property. This can collaboration which aims for a synergy where each partner of
I-Tronic hopes that the benefits from the alliance will be greater than those from individual
efforts.
6.1.2) Co-opetition: strategic alliances between competitors
Collaboration is a strategic alliances typically between two firms with the goal of
providing mutual benefit for each firm. Collaborating with competitors of Robo-TAP which
are Panasonic, SONY is like a double-edged sword. Sharing between firms is a smart strategy
as long as the relationship is give and take and is one that will benefit both parties without
compromising each of the firm's competitive position in the industry.
expansion, development of new products or moving into a new markets. Robo-TAP may have
strong potential for growth and may have innovative ideas and products. However, a joint
venture could give more resources, greater capacity, increased technical expertise and also
access to established markets and distribution channels. I-Tronic decide to create joint
venture that should set out the terms and conditions in a written agreement. This will help
prevent any misunderstandings once the joint venture is up and running.
6.1.4) Buyer-supplier relationship to assure reliable supples
Robo-TAP will get as many as benefits that can accrue when partnering initiatives are
established with suppliers. Suppliers can be an important source of information on ways in
which both small and large businesses can improve performance and productivity. I-Tronic
need suppliers involve in this business which can help buyers compete in the marketplace
with improve of products through contributing to product design, technology, or ideas for
purchasing Robo-TAP. In most such instances, suppliers help buyers by pointing out ways in
which designs can be improved or more desirable materials can be used. In addition to
providing design recommendations that results in improved products, suppliers are often
sources of suggestions but allow buyers to hold consistent tolerances in production.
7.1.4) Network
We are using facebook which we created the facebook page that the customers know our
product. In facebook we put the advertising, promotion, images that easily customers get
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more knowledge from us. In addition, same goes with websites which we do the website for
customer can also find us more, we also put everything that how or steps to using our
products.
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Revenue Streams is under the finances part of the business model canvas. Revenue Streams is
the way a company makes income from each customer segment. Our revenue streams come
from many different sources due to our various customer segments. Our revenue streams are:
9.1)
9.2)
Traditional Sales of Products and Services - This Revenue Stream is based on good oldfashioned commerce: selling a product whether it is physical or digital to the Customer
Segments at a higher price than the total costs of acquiring and delivering it and thereby
making a profit. It generates revenue by selling and delivering its products to its customers.
processing.
10.1 Classes Business Structure
Cost Driven- I-Tronic using the the cost to import the product from other country such as Air
Asia. Value Driven- It created to know the benefits that the customer will get from our
products which Robo-TAP help people doing the works.
10.2 Characteristics of Cost Structures
10.2.1) Fixed Costs
Internet
Connection
(Unifi/Maxis),
Website
Management,
TNB,
Syabas,
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11.0
Conclusion
The company's management is confident that the Robo TAP can achieve its aggressive sales
forecasts, generating total sales of approximately RM 3,411,940 in years 2016. In addition,
Robo TAP management has carefully considered its market, potential customer base, and its
ability to grow its sales average to capture 10% of the vacuum cleaner industry.
Robo TAP has the potential to become a highly regarded resource in local, regional, national,
and international markets.
establishment of the company as a "unique" entity in its industry, careful development of its
products coupled with strategic partnerships with some of the industry's retail elektronic
outlets, and the company's profitable revenue model, Robo TAP has the potential to provide
lucrative returns to potential investors
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12.0
Disclaimer
This e Marketing Plan was prepared by the Group 5. The financial projections that
appear in this e Marketing Plan are estimated revenues, expenses, and cash flow, which are
based on research and the assumptions discussed throughout this e Marketing Plan. They
represent the best of management's knowledge and belief and also are based on actual
operations. I-Tronic expected revenues, expenses, and cash flow for the projected periods are
subject to the Company's ability to develop sales and production levels at the price and costs
estimated by management. Accordingly, these projections reflect management's estimates as
of May 2015, and its expected course of action if such sales and production levels are
attained at the price and costs anticipated.
These projected financial statements are for the purpose of providing updated information to
existing and new investors. These projected financial statements should not be considered to
be a presentation to forecast future results. Accordingly, these projections may not be useful
for other purposes.
The assumptions disclosed herein are those that management believes are significant to the
projections. Furthermore, even if the sales and production levels as well as the projected price
and costs are attained, there will usually be differences between projected and actual results
because events and circumstances frequently do not occur as expected, and those differences
may be material.
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13.0
Appendices
13.1
References
https://canvanizer.com/canvas
http://hanisramlee.wix.com/itronic
https://www.facebook.com/pages/I-Tronic
13.2
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