MEAL BOX DELIVERY SERVICE BUSINESS PLAN

MEAL BOX DELIVERY SERVICE

Prepared By:
Jacqueline Teo
Mark Mah
David Sothie Naysadorai

14 July 2014

Table of Content
1.0 EXECUTIVE SUMMARY
2.0 INTRODUCTION
3.0 VISION
4.0 CONTEXT
5.0 OVERVIEW OF OPPORTUNITY
6.0 IMPACT
7.0 MARKET FEASIBILITY
8.0 INTELLECTUAL PROPERTY
9.0 BUSINESS CONCEPT AND MODEL
10.0 BUSINESS STRATEGY
11.0 MARKETING STRATEGY
12.0 FINANCIAL MODEL
13.0 IMPLEMENTATION PLAN
14.0 STRATEGIC AND OPERATIONAL PLAN
15.0 CONCLUSION

1.0 EXECUTIVE SUMMARY
During the 3rd international Conference on Management (3rd ICM 2013) proceeding, the paper on Consumers preference between fast food restaurant and casual dining restaurant: A conceptual paper by Faridah Ahmad, Hazrina Ghazali and Mohhidin Othman fro Department of Food Service technology, University Putra Malaysia. The following are extractions from the paper:
Malaysian restaurant industries have been growth competitively and continue to grow as demands from consumers increase. This is reflective to the report, fast food sectors sees 10
% growth (Euromoniter International 2012b). The most preferable type of restaurant among consumers during dining out is still questionable. However, according to the Euromonitor
International, casual dining restaurants are gaining popularity owing to urbanization of
Malaysian where life is getting busier in urban areas where people are opting to dine out or having a meal away from home. Under food attributes, the paper reflects most researchers agree that quality of food is the most important factor in determining customer loyalty and key factor to influence customer satisfaction. Service Quality reflected in the same paper indicated that good quality of service given by staff as the greatest influence of expectation and restaurant selection. They also posited that the service quality has relationship with customer satisfaction and customer loyalty.
To embark on this project, a total of RM 215,300.00 as the initial start-up cost. Funders are from the shareholders of this project who have concurred to the agreement of this project.
This exciting project will employ Blue ocean strategy as our framework for business strategy, guerilla marketing strategy, a strong product strategy, a resilient distribution strategy, as well as service delivery standards where the internet will be utilized as the drivers for promotions strategy. In the 1st year, company projects RM 1,020,000.00 in sales, averaging RM 85,000 per month. The company projects an increase of 30% of sales from Year 1 in the 2nd year, projected sales revenue is RM1, 600,000.00 averaging RM133, 333.00 per month. The projected sales revenue for Year 3 is RM2, 160,000, averaging RM 180,000.00 per month
30% increase.

2.0 INTRODUCTION
This enterprise write-up is divided into twelve sections, namely vision, context, opportunity, impact, market feasibility, intellectual property, business concept and business model, business strategy, financial model, implementation plan, strategies and operational plan followed by conclusion.
The group had done some research into this venture and find that the food consumption business in Malaysia as a lucrative and most profitable venture to go into. A famous quote from Arnold Palmer goes like this “The Road to Success is always under construction”.
Indeed the success of any entrepreneurship effort will always be a tireless effort of the people involved. In this case of our venture, we have arrived at the critical decision made to pursue meal catering for the busy person, not withstanding these foods and meals catered to the various income groups in the designated environment we target are sustainable and growing. 3.0 VISION
The vision of this business is:
“To be the leading food delivery service Company providing the convenience to enjoy warm meals with variety in all major cities and townships in Malaysia.”
We, the entrepreneurs, have found the needs of the various sectors of the working class adults of people who are busy in their daily day to day work and social needs. This in itself covers the broad spectrum of adults. Thus our vision is to serve the growing population proper healthy Halal meals which are wholesome and nutritious for the population of the major cities. This effort is a factor of accommodating the needs, which will be explained later.
Motivating factors to the rationales behind this vision area are a number of key driving factors to our business goals. They are as follows:
Main Factor
Being the member of the busy working class for a substantial number of years, we have experienced the lifestyle that we, and many of our associates and colleagues are hinged on the fact that our working class is time constrained and that sometimes meals taken are beyond the time of the food availability in most restaurants and food outlets. Traditional practice of the Malaysians is packing food from home in Tiffin or Tupperware of the past

does not seem to sync with a busy person today. For example, the typical family person with children attending school in the industrial age (1970 till 1985 in Malaysia) would have had to rise from bed before dawn to prepare the breakfast for the family before sending off the children and spouse to work concurrently prepare simple packed lunch for the spouse and children for their lunch break times. Amidst of these, the same person who is also the working partner in the family would then have to go to work, bringing his/her own meal for lunch consumption.
In the Information Age, (1985 till 2000 in Malaysia) we see that the evolution of working class food intake habits increasingly eroded due to the increase in demand for productivity and output of the various industries, leaving the working class with no other alternative but to eat food that is available at the time he or she is free.

Thus the need for a better and

healthier food consumption is seen as critical and meals taken in a timely fashion.
Having identified these abovementioned needs, we have determined that a void here is available for a viable business entrepreneurship challenge. The working class of the country is in large established, townships is growing with the increasing employability market of local and foreign workers.
Next is the increasing spending power of these workers due to the rise income and as the government has projected for the ‘high income nation” by the year 2020, there is significant increase in salaries and wages. Owing to all the above issues, the spending habit of the workforce is seen as a potential source of revenue for the food delivery industry, we will examine the justification for these factors in the geo-social analysis later.
Further to the workforce being able to spend, much of the workforce is also health conscious. In this venue, we find that our venture could accommodate the meal by calorie intake. Vegetarian, meat and carbohydrates (including fats and trans-fats and energy) are the main source of the intake making our packaging show the exact amount. In this aspect the workforce is aware of exactly how much nutrition they are receiving in contrast to the cost of meals. Making an informed decision here is vital to the workforce in order that they could sustain the daily food intake in accordance to individual needs.
Therefore, with the abovementioned motivations and rationales, we believe that the ultimate decision in line with our philosophy we believe that the organization we establish would not be enriching lives of the workforce but also be part of the corporate social responsibility for the healthy and longevity of the same workforce.

3.1 How the vision fits with our personal and business goals.
The creation of value here is seen holistically. The vision of the business itself is the social need which we are fulfilling, notwithstanding this value, the intrinsic and extrinsic values here are insurmountable for the markets and us. Our personal goals here are to satisfy the social demand of our target market as meals ore defined as a necessity for the sustenance of basic human life and by virtue of this fact, we contribute to a higher need. This is actually going back to the theory of Maslow Hierarchy of needs where food is as a biological need. The only challenge here is that the timeliness of delivery of meals. Business goals are in the context of short and long term satisfaction of stakeholders; expansion here is without the compromise of core competencies of the organization. Therefore we would always remain core in our business goals focusing on our passion for delivery the best meals for all.
3.2 Values statement
“We will cater to the people’s wants and needs for nutritious, wholesome and savory meals cooked and delivered professionally, to our customers, without compromising on timeliness. We will always remain core in our beliefs that the busy person deserves the meal of the day, without compromise on food quality standards”

The organization appreciates and caters to the nutrition value of today; people are very well informed of the nutrition value of their meals especially for professionals who are health conscious to sustain energy and alertness needed throughout out the day. Customers can also weigh out their nutrition value as to their own personal preferences including wholesomeness. The customers here can even calculate the amount they require and then simply time the delivery of the meal to their own personal requirement.
Our team of staff is committed to the goals and visions of the organization, by regular training and coaching in the field of meal preparation, and service delivery standards. We understand that the customer will always come first; communicating this clearly across the board from the Company Shareholders to the staff about the business priority will be done systematically to ensure one total shared belief. Timeliness as stated above is by virtue the most critical part of our deliverables. It is the sincere wish of the team that our efforts to bring about this awareness as to their importance are realized.
Our core competencies will always remain in delivery of meals for the busy person. The team will never shift away from this firm belief. In view of this our supply chain management which we contract from pertaining to our raw products and foods will also share in our core beliefs. These suppliers who work with us in this endeavor will also benefit from our ways in

doing business as we always maintain harmonious and professional and transparent in our dealings, while maintain mutual respect for each other.
The famous quote from Hussein Nishah reads “Treat people the way you want to be treated.
Talk to people the way you want to be talked to. Respect is earned not given”. Going by this mantra for our business, we will always resolve dealings with all stakeholders and without discrimination to race, or creed. We will always respect the sensitivities of all.

4.0 CONTEXT
4.1 The Cultural
According to the Star on Line, as at 26th February 2014, the Malaysian population reached
30 million people. It was also published that as at year 2010, there was 67.4 % Bumiputera
(Muslim and non-Muslim by religion), Chinese consisted of 24.6 %, Indians were ranked at
7.3 % and the other races in the country consisted of 0.7%. Notwithstanding this The
Department of Statistics Malaysia, in its Intercensal Mid-year population Estimation reported that the working class people which are classified from 15 years of age till 64 years old consisted of 67.1 percent of the population. This amounts to about 20.13 Million people.
The Company recognizes the cultural sensitivities of each of the segments the main being the Halal food of the population and that the working class of people of the country deserve their meals. It therefore makes perfect business sense that all food produced in our kitchens for delivery will be ONLY HALAL.

4.2 Governmental
The company understands that the government is holds fast to the Islamic principles of Halal for food and thus emphasis of Halal will be included in our business policy of dealings with the relevant authorized supply chain which also comply with the same. The company has come to realize and recognize that the Halal standards are the most marketable, sustainable and trusted, being accepted nationwide for quality in supply chain. Governments also lends support in terms of food research and development for the wellbeing of the Malaysian public.
4.3 Global
Euromonitor International a research engine pointed out in its Country report that “Malaysian produce healthy packaged foods which is sustainable value “over the forecast period of the same report.

“Halal Certification-Trust, Safety and Hygiene Important in the food service industry”
Restaurant Manager Expectation published the journal “Halal Certificate in Malaysia “ –
Michael Hall, Dept of Economics , College of Business and Economics, University of
Canterbury New Zealand.
With Malaysia poised to be the Halal Hub of food in South East Asia, the company also realizes that notwithstanding any change in the business landscape in local food service industry in Malaysia, The Company will cautiously advance in further expansion in this direction. 4.4. Organizational
Functional business organization will remain on structure basis. The top-down approach will remain the organizational style of management. Decision making will hinge in the continuous input of data from research and development of product and services. The roles of the various departments within the organization will contribute input for Major decision making by the stakeholders. We will always maintain the “Management by walkabout” style in our organization premises, while ensuring strict compliance to policy, and procedures of each and every one of our processes.

4.5. PESTEL Analysis
4.5.1 Political Analysis
As indicated earlier, the Malaysian Government is intensifying efforts in food service industry in the avenue of Halal food services. The Government has serious concerns on health issues to curb obesity, however the company is unfazed by this as our food product source is from the Halal supply-chain. We are not a franchise and therefore there is no need for license for franchise. However, good relationship with government in giving mutual benefits such as employment and tax is a must for any company in this industry. Protection of employees in accordance to Malaysian labour law is another requirement.
4.5.2. Economic Analysis
Being a business entity locally incorporated, the company will be will face government regulation of Tax on profit as well as service tax currently imposed. Future implementation of
Goods and Service Tax by the National Customs Agency would see an increase to the

Taxation policy, The Company will always strive to meet the requirements while pricing of the meals delivered will be the top priority to cater to vast population of the target markets.
We utilize existing information Technology infrastructure to facilitate the business, therefore the cost is kept at a minimum to maximize customer satisfaction, especially for average income market. (Earnings per month RM 3500.00 until RM 7000.00 - source analysis from
Jobstreet.com)

4.5.3. Social Analysis
As stipulated earlier, the Bumiputra race of the country is the largest by population.
Therefore, the company sees this as a large target market in the Halal food service industry.
Accepted norms of meals delivery by competitors have seen that this is viable business development. Other target markets also depend on the approaches which vary in socially acceptable media such as advertising and marketing approach which segregated the races in the country. Many programs to enhance corporate social responsibility would be undertaken to “give back” to the community and the country on whole.
4.5.4. Technological Analysis
Malaysian technological advances have seen leaps and bounds with many of the food preparation devices such as restaurant ban-Marie, freezers, industrial grade ovens, juicers and processed and fresh, have been penetrating the food service industry and the standards have the following requirements as per Halal. The driving force of our food technology will be based on the guiding principles of Halal. The following excerpt is from GUIDELINES FOR
THE PREPARATION OF HALAL FOOD AND GOODS FOR THE MUSLIM CONSUMERS by Dr. Ahmad Robin Wahab from Amal Merge (M) Sdn. Bhd.

All processed foods are Halal if the ingredients used are Halal, so as the processing done is clean and free from the filth such as:
i) Must not be made of, or containing any parts or products from animals, which are

forbidden by Islamic Laws to be consumed by Muslims or not slaughtered according to Islamic Laws. ii) Must not contain any products which are considered as filth according to Islamic Laws whether in little or large quantities such as pig oils, fats, lards from carcass, types of alcohol and other items.

iii) Must be prepared, processed or manufacturer using equipment which are free from filth according to Islamic Laws, such as cutting devices, premises, containers and other related equipment. iv) During preparation, processing and storage, food must not come into contact or close proximity with any food which do not meet the Halal requirement or any product that is considered as filth according to Islamic Laws.

4.5.5 Environmental
The company is serious in ensuring the policies are in line with the government green technology. The company will take full advantage f the Invest Malaysia under services sector in the area of recycling product waste, Application for polystyrene will be maximized in the utilization of packaging of meals, and Considerations will be made to re-use water and solar power for conservation of electricity. A policy for caring for the environment and recycling will be in effect to ensure zero damage, lowered emissions as well as minimized carbon footprint would be in-effect.
4.5.6

Legal

The company holds fast to the Trade descriptions act 1972 pertaining to Halal food processing. The approvals from Kementrian kesihatan, and Majlis Bandaraya are all necessity for the typical food cooking and delivery system. DOSH complaint will be another necessity to be looked into in our kitchens cooking practice and procedures.

5.0 OVERVIEW OF OPPORTUNITY
“A comprehensive map of the opportunity and its three domains (operations, marketing and customer services) can become a platform for exploring the new strategic landscape. In each domain, the technology can enable a radical new vision of what a business can accomplish.” ~Making sense of business opportunity MIT Sloan Magazine 2001 by David
Freeny~

For our venture, we have identified the main consumer need which is time constraint.
Therefore, we strive to achieve the follow:


Convenience: Although restaurants and cafes are readily available in areas with high density of commercial buildings, it may not necessarily be convenient for the working crowd to get a decent lunch. This is due to the heavy traffic of lunch patrons at the restaurants and food courts, which causes delays in orders taking and meal

preparation. Lunch boxes are suitable for the working class who do not have the luxury of time to take longer hours for lunch or simply do not want to go through the trouble of stepping out of their office.


Quality: Meals are cooked an hour prior to the delivery time so that it could be served warm. It’s packed in bio-degradable food containers that are microwave safe should they choose to re-heat their meals for later consumption.



Affordability: Meals are priced reasonably with no delivery charge incurred to customers. 

Choices: Customers get to choose variety of different cuisine which includes local
Malaysian food, Japanese, Korean, as well as Western. There will also be light snacks which include sandwiches available for those who do not want a full meal.



Simplicity: Our website is designed to be simple and easy to navigate with minimal buttons and promotional ads.

Below are the drafted designs for our website:

Image 1: Front page. Simple with only 5 pages to navigate.

Image 2: Customers can quickly look at the list to find out if their location is within our delivery areas.

Image 3: Simple 4-steps for our customers to place their order.

Image 4: There are 4 categories for customers to browse through. With 3 categories as the type of cuisine and 1 category for those who want light snacks.

Image 5: The direct lines and emails of our customer service team are displayed so that customers can contact them if they have any questions or feedback.

5.1 Potential Customers
Our potential customers are divided into the following 3 category:


Working class: These are the people who work in commercial buildings such as offices and banks.



SOHO: These are commonly freelancers and entrepreneurs who work from the comfort of their home.



Residents: These are residents in high-rise condominiums and apartments in the city centre.

5.2 Business Model

Purchase raw materials from food wholesalers Food Preparation and Menu
Updates in Website
Customers Place Orders
Cooks Prepare Meals as Per
Customers ' Orders
Meals Are Packed and Delivery is
Made
Diagram 1: Meal Box Business Model

As shown in Diagram 1, our business model is comprehensive as we are the producer, marketer and distributor of our lunch boxes.

It started with purchase of raw ingredients needed and menu preparation. Once customers place their orders, cooks will prepare the meals accordingly. Meals are then packed and distributed to areas we pre-assigned to ensure timely delivery.
With our online ordering system, everything range from orders to sales and customer data are recorded, thereby cutting down time wasted in documenting our processes. The system will also assist us managing customer relationships, ensuring that we receive their feedback promptly and is able to rectify any arising issues.

5.3 SWOT Analysis
Strengths


Weaknesses

Experienced and resourceful



Lack of capacity to cover wide areas.

business partners with connection



Inability to prepare meals quicker

and strong networking ability.


Reliable supply chain management

than an hour


system for food product


Expansion of logistics infrastructure would take a longer time

Experienced deliverymen with professional supervision

Opportunities




Threats

Increased in popularity of food

are well established such as

class.

Domino’s, Pizza Hut, McDonald’s,

Increased demand for quality cuisine,

etc.


Increasing prices of petrol may inflate

The Corporate Social Responsibility

prices of foods and product as cost is

(CSR) program (new) is extended to

passed over to consumer.

all, benefitting, the poor, homeless as



well as orphanages and shelters.


Existing food delivery services that

delivery service among busy working

nutrition, and dietary avenues.




Increase in number of potential

Impending GST imposition may inflate the cost of doing business.



As traffic volume increases, in the city

customers as development takes

so does the statics of accidents.

place in “Greater KL’”

These are also perceived as increased risks to deliverymen.
Subsequently increase in insurance policies for deliverymen due to policy loading. Table 1: SWOT Analysis of Meal Box Delivery Service

6.0 IMPACT
The most famous venture capitalist, John Doerr, stated that one of the most promising opportunity sea changes of this century is the clean commerce and sustainable enterprise movement. As per the Timmons Model of Entrepreneurial Sustainability (Spinelli & Adams,
2012), we need to assess the impacts of our new food business venture on the environment, community and society in order to ensure a long-term sustainability of our new venture.

6.1 Impact on the natural environment
As part of efforts to avoid and to reduce negative effects on the environment, our Meal Box
Delivery Service will incorporate the following measures in all our business activities:


Purchase raw food materials locally to save fuel costs



Minimize packaging



Use biodegradable plastics for food packaging



Use recyclable products



Avoid using any toxic materials



Creating an efficient (and fuel-efficient) food distribution network



Use online e-commerce business transactions to minimize our carbon footprint.



Work with suppliers and distributors who take steps to minimise their environmental impact 6.2 Impact on community and society
Our Meal Box Delivery Service strives to be a neighbour of choice by responding to the needs of our community and society through the following initiatives:


Providing customers with the convenience of online food-ordering system through our Meal Box Delivery Service website.



Providing our community with a long product line of delectable and nutritious homecooked meals.



Timely free delivery of food orders right up to our customers’ doorsteps.



Receiving invaluable online feedback from all and sundry for us innovate to cater to the needs of our customers and also to forge long-term mutually beneficial relationships with each other, and with our suppliers and key trading partners.



Creating many part-time or long-term employment opportunities for our community through Meal Box Delivery Service thus contributing to the long-term prosperity of our society. 

Contributing back to society through our various annual social affirmative activities.

6.3 Impact on long-term business sustainability
In order to make ensure long-term business sustainability, we plan to put aside a certain portion of our profits to finance the:


development food-ordering mobile applications



research and development of new value-added food products



reduction of costs in the value chain of our operations



creation of new competitive market spaces through Blue Ocean Strategy

Also, we continuously seek like-minded new venture creation strategic partners and angel investors to grow this venture throughout Malaysia and ultimately to penetrate overseas markets. 7.0 MARKET FEASIBILITY
A feasibility study was carried out to determine the viability of our venture, involving the following key aspects:


The main characteristics of our food product, the size and value of the market.



The availability and cost of staff, location, equipment, services, raw materials, ingredients, packaging and delivery.



Calculating the initial capital outlay and the operating costs.



Calculating the difference between expected revenue and the costs of production.

To evaluate the market potential of our product, both primary and secondary data approaches were used. Literature review was conducted to determine the demographic profile, lifestyles and the dietary trends of urban life in the Federal Territory of Kuala Lumpur.
As the population of Kuala Lumpur is huge, currently at 1.7 million (Department of Statistics
Malaysia, 2014), no effort was expended in determining the actual size of our customer base as “ ...where common sense and observation tells us the market is huge, there may be little point in spending lots of money closely measuring its size.” (Hague & Hague, 2004, p. 25).
This is also in line with our bootstrapping approach towards initiating our now venture.

A market survey questionnaire on food delivery service (Appendix 1) was developed and subsequently administered on a random sample of adult respondents (n = 65) in our targeted market segments in Kuala Lumpur.
Our questionnaire covers the following aspects:


Exploring the level of acceptance in potential customers for online food-ordering system. 

Establishing the potential of using mobile telephone food-ordering system applications. 

Identifying the popular food-delivery establishments (competitors) in the current market. 

Identifying the online food-ordering profile of potential customers, such as place and time. 

Identifying the food preferences (quality and cuisine) of potential customers.



Exploring the potential in the use of personal references for guerrilla marketing.



Identifying some basic demographic characteristics of potential customers.

7.1 Summary of Research Approach

Secondary (Literature)

Primary (Quantitative)



Market Watch 2012. (n.d.)



Halal Guide (2013)



Malaysian Halal Consultation and Training (2012)

Questionnaire

survey

on

food

delivery

service

administered to 65 respondents.
Table 2: Summary of Research approach

7.2 Data Analysis
7.2.1 Market Needs
Malaysian households spend an average of 24% of their total income on food. The food service market, which is estimated to worth US$ 4.9 billion to US$ 5.5 billion in 2012, is estimated to grow at between 7%-10% per annum over the next three to five years (“Market
Watch 2012,” n.d.). As 60% of Malaysians are Muslims, there is a great market potential for

halal food delivery, too. Hence, obtaining a halal certificate would provide added marketing value our new venture.

7.2.2 Competitor Analysis
A competitor analysis was conducted for our targeted market area to obtain a picture of our rivals’ positions in the market, in terms of marketing strategies, products, prices, channels and positions. The appropriate information is used to differentiate our product line in order to create our own competitive advantage (Paley & Norton, 2006)

The key aspects of our competitor analysis are presented in Table 3.

Name of

Type of

Price Range

Free

Food Ordering

Halal

food

Cuisine

(RM)

Delivery

System

certification

service

Website

Website Mobile telephone application

Domino’s

Fast

12.00 to

Pizza

Food

50.00

Pizza Hut

Fast

12.00 to

Food

45.00

Fast

3.00 to 15.00

McDonald’s

Yes

Yes

No

Yes

my
Yes

Yes

No

Yes

Fusion

Box

but

pizzahut.com. my No

Yes

No

Yes

Food
The Lunch

dominos.com.

www.mcdonald
s.com.my

6.00 to 12.00

Yes

Yes

No

No

thelunchboxmalaysia.com

mostly
Asian
Mom’s

Chinese

8.50

Yes

Yes

No

No

Home-Cook
Grace

momsfood.com
.my

Chinese

8.50 to 9.00

Yes

Yes

No

No

Kitchen

www.gracekitc hen.com.my Food
Delivery
*Meal Box

Malaysi

Delivery
Service

In

Going

In the process

an

near

for

of development

Asian,

future

certification

Chinese
,

8.00

Yes

Yes

Western
, and
Italian

*Proposed new venture for comparison

Table 3: Competitor Analysis
From Table 3, the common entry-level value specifications among our five main competitors include free delivery and online food-ordering system. The big and well established Western fast food chains - Dominos, Pizza Hut and McDonald’s - are Halal-certified and command premium pricing for their food products. The remaindering three competitors - The Lunch
Box, Mom’s Home-Cook and Grace Kitchen Food Delivery – which offer Chinese and common Asian cuisine compete on a low to medium pricing strategy are not certified Halal.

In line with our Blue Ocean Strategy, our Meal Box Delivery Service will differentiate and position ourselves with following extra aspects:


Offerings of a long food product line – Malaysian, Asian, Chinese, Western and
Italian



Medium food pricing of RM8.00



To offer mobile telephone application food-ordering system in the near future



To obtain Halal certification

7.2.4 Data Analysis – Quantitative Market Research

Our random market survey, administered on 65 respondents comprising 78.5% females and
2.5% males revealed the following information (Appendix II):


63.1% and 21.5% of the respondents work in the city and suburbs respectively; which is a plus to our targeted market segment.



58.5% of the respondents have had experience in placing online orders, which is another plus for our online food-ordering business.



Most of the online food orders were delivered to the respondents’ homes (58.3%) with the rest (41.7%) headed for their offices, which is in line with our target market segment. 

99.2 % of the respondents patronize the branded high-end fast food chains
(Domino’s Pizza, Pizza Hut and McDonald, KFC, Nando’s Canadian Pizza and Food
Panda), but just as well as Meal Box Delivery Service does not intend to compete

head-on with the market leaders in the fast-food market segment; we are creating new competitive spaces in line with the Blue Ocean Strategy philosophy.


Only 0.8% of the respondents have made online food order with unbranded food establishments, such as our Meal Box Delivery Service. This information is a good reminder for Meal Box Delivery Service to work smarter to make her presence felt.



78.5% of the respondents intend to either continue placing food orders online
(53.8%) or will consider placing food orders online (24.6%) in the near future. This online food-ordering trend, which is gradually but surely gaining traction and momentum, bodes well for the Meal Box Delivery Service.



As expected a majority of the respondents (76.9%) are still more comfortable with placing food orders using the telephone. Therefore, Meal Box Delivery Service will still try to capture this market segment.



83.1% of the respondents will consider ordering food online through the mobile telephone application. This indicates that there is great potential in developing our own food ordering mobile telephone application, in line with our Blue Ocean Strategy approach. 

As 55.6% of the respondents have indicated that they are usually or always very particular with the ordering process, Meal Box Delivery Service has to ensure that each customer will find it a breeze in placing their online food order with us.



Likewise, customers place a premium on the punctuality (52.3%) of food delivery to them, which will be taken care of in our delivery planning.



Meal Box Delivery Service has to maintain our food quality as potential customers usually and always place a premium the following qualities of food: way food is cooked (64.6%), looks (47.7%), smell (64.6%), taste (67.7%), variety (64.6%) and temperature (47.7%).



Finally, Meal Box Delivery Service can always depend on referrals by satisfied customers (guerrilla marketing) to market our food products and service, as indicated so by 63.1% of our respondents.

8.0 INTELLECTUAL PROPERTY
Barringer and Ireland (as cited in Zulkarnain Kedah, 2013) stressed the importance of protecting intellectual property in business establishments through patents, trademarks, copyrights and trade secrets.

Our new venture branded as “Meal Box Delivery System” with a logo designated (TM) to match. The letters (TM) serves as an initial reservation with a view to registering both our brand name and logo with the Malaysia Intellectual Property Corporation in the near future.
Upon registration the letters (TM) would be substituted by the letter (R), with its concomitant legal protection. Delaying the registration to minimize initial capital outlay is part of our bootstrapping approach to jumpstart our new venture.

9.0 BUSINESS CONCEPT AND MODEL
A business concept, which is a corporate mission, defines an enterprise’s aims (Karloef,
Loevingsson & Fredrik, 2002). Hamel (2002) further defined that a business concept that has been put into practice becomes a business model. He proposed that a business model consists of the following four components: core strategy, strategic resources, value network and customer interface.
9.1 Core Strategy
The core strategy, which is pivotal around our new venture’s mission statement, product/market scope and differentiation, is the game plan on how Meal Box
Delivery Service competes relative to our competitors.

9.1.1 Mission statement
We strive to deliver our online-ordered Meal Box Delivery Service wide range of delectable quality meals to our customers right on time and to their delight.
9.1.2 Product and Market Scope
The product and market scope determines what food products and market segment coverage Meal Box Delivery Service would be focusing on. Going by the popular market demand, Meal Box Delivery Service will initially deliver Western (inclusive of Italian),
Chinese and Asian cuisines to office workers and to residential areas within our target geographical areas.
9.1.3 Basis of Differentiation
Taking cue from Hamel (as cited in Zulkarnain, 2013) Meal Box Delivery Service would differentiate in the following aspects to make it difficult to copy:


Peace of mind – Halal meals for the Muslims



Low cost with quality - quality meals for up to 60% less than the mainstream fast foods 

Convenience – online food ordering system with free delivery service



Variety – a wide range of cuisines to choose from



Green – meals exquisitely packed within eco-friendly recyclable combo boxes

9.2 Strategic Resources
Two most important strategic resources to successfully launch our Meal Box Delivery
Services are our core competencies and our strategic assets.

9.2.1 Core Competencies
In line with Zulkarnain’s (2013) explanation (as cited in Simon, Hittt and Ireland, 2007) the core competencies

which would confer Meal Box Delivery Services a comparative

competitive advantage over that of our rivals, as well as added customers’ perceived benefits, would be as follow:


Our online food-ordering system is programmed to simultaneously record transactions and accounting, as well as displaying customers’ orders in the kitchen for food preparation. This integrated business system speeds up operation while reducing costs by avoiding staff redundancy.



Our Halal status would enable us to expand into the large Muslim food delivery market. 

Our continuous quest in search of scrumptious and new menus will help to attract customers and enlarge our customer base.



Our bootstrapping approach to marketing via the Blue Ocean Strategy and guerrilla marketing that rely on innovation, ingenuity and surprise would enable us to extend our market and grow our brand on a low budget.



Our user-friendly online food-ordering system, and the soon-to-come mobile telephone food-ordering system will enable our customers to place orders anytime and from any place, thus helping to build customer loyalty



Our annual social affirmative activities, besides enabling us to contribute back to our community,would help us to build relational bridges and branding.

9.2.2 Strategic Assets
Strategic assets, which are firm-specific, help to “...generate sustained competitive advantage...” (Kochhar, 1997, p. 25) of Meal Box Delivery Services are our strategic

business partners, a highly qualified and competent management team location, cooks and chefs, brand and customer data which are briefly described here:


Strategic business partners - Meal Box Delivery Services was conceptualized by three highly motivated business partners, each contributing their respective skills, knowledge and experience to make things possible.



A highly qualified and competent management team, for instance, amongst them is
Miss Jacqueline Teo, who is a successful business lady, and highly sought-after business consultant and trainer extraordinaire.



Our cooks and chefs are the reasons for the very existence of Meal Box Delivery
Service, as the food they prepare will either make or break our new venture.



Brand – as we grow our Meal Box Delivery Service brand, we expect to compete with top brands such as McDonald’s, Domino’s Pizza and Pizza Hut.



Customer data stored in the database will be analysed using data mining tools
(statistical programs) to predict future customer trends and unveil hidden data patterns to be used to improve sales of new food products and reduce the cost of acquiring new customers.

9.3 Partnership network
To be successful and innovative, our new venture requires a partnership network to complement our resources (The Essence Consulting, n.d.), and for Meal Box Delivery
Service’s include all our suppliers and capital venture partners.

9.4 Customer Interface
The customer interface describes how Meal Box Delivery Service interacts with our customers (Hamel, 2002). Three important components of our customer interface are our channels, customer information and relationship dynamics.


Channels are the ways we reach our customers, which are mainly through our online presence and through our food couriers.



Customer information includes the customers’ data we compile and display in our
Meal Box Delivery Service website for mutual benefits.



Relationship dynamics – we strive to build a mutually beneficial life-time customer value. 10.0 BUSINESS STRATEGY
10.1 Blue Ocean Strategy
Chan-Kim and Manborgue (2005) define blue ocean strategy as “creating products and services for which there are no direct competitors”. Our company adopts the blue ocean strategy as a philosophy and practice by gradually reducing our competition in red markets
(existing markets) while working towards creating new value and capturing new demand
(new markets).
Using the strategy canvas and the four actions framework of the blue ocean approach to business strategy, we have brainstormed and arrived at some practical actions to be implemented, in accordance with the propositions of the blue-ocean strategy.

Blue Ocean Strategy propositions
Create uncontested market space

Some practical actions
To penetrate new markets or forging joint ventures with new partners such as hospitals, institutions, budget hotels, youth hostels, schools, colleges, old folks home and kindergartens

Make competition irrelevant

To create new menus where there are no existing competitors, such as creating new food combos customised to the occasion, such as picnic and birthday food combos

Create and capture new demand

Crowdsourcing via our website and Facebook for new food products and packaging ideas.
To send daily menu of the day through emails and mobile telephone application to capture customers attention and patronage

Brake the value-cost trade-off

To incorporate green technology to cut cost and to improve on the quality of food

Align the whole system of a

To constantly innovate and streamline our

company’s activities in the pursuit of

business process to achieve efficiency and lower

differentiation and low cost

operating costs and add value to our products through in-house action research

Table 4: Propositions of the blue ocean strategy and some practical actions

10.2 Guerrilla Marketing
Guerrilla marketing is a means of generating maximum business traffic from a small budget, which involves building a mutually beneficial network with other business entities and customers for referrals and finding creative ways to improve each other’s businesses.
(Richard, 2005).
In line with our bootstrapping approach, our marketing activities will involve efforts to identify and build a network of guerrilla marketing partners from different businesses within the neighbourhood of our targeted business area. Our guerrilla marketing partners act as each others’ referrals via our word of mouth and also by attaching brochures or business cards with each customer’s receipt. Likewise, guerrilla marketing will be implemented online through customers’ referrals via the online social media embedded in our website and
Facebook.

11.0 MARKETING STRATEGY
11.1 Target Market
Meal Box Delivery Service’s initial target market encompasses of working class in Kuala
Lumpur city centre who want an alternative quick and convenient way to order lunch and get it delivered to their doorsteps. We acknowledge that there are existing services, namely
Pizza Hut, Domino’s Pizza and McDonald’s. However, they do not always emphasize on nutritional balance of the meals.
In the 2nd quarter, we will further expand our target market to include residential areas where working class and freelancers who work from home can enjoy the convenience of having nutritional home-cooked meals delivered to them without having to go through the hassle of getting proper meals in the city.

11.2 Product Strategy
Meal Box Delivery Service offers customers variety of choices with cuisine types which include local Malaysian food, Chinese, and Western for a start as we have cooks who are familiar with these cuisine types. As the business expands to the neighbouring cities, we will hire a sushi chef and open a category of Japanese food, which will be packed in bento for our customers. Above all of that, customers can also opt for lighter meals or snacks. In this category, we provide sandwiches, pastries and cakes.

11.3 Distribution Strategy
To ensure that meals are prepared, properly cooked and packaged for delivery, all orders will be placed by customers online via our website one day in advance or at least 3 hours before our cut off time, which is 11 a.m. daily. As we’re only focusing on lunch boxes, we have fixed our delivery time at 12.00 to 12.30 p.m. from Monday to Saturday excluding
Sundays and public holidays.

11.4 Promotion Strategy
As we require customers to place orders via website and through mobile apps, we will implement the following media and tactics to capture our customers:


Promote our website through search engine optimization and search engine marketing around food delivery, meal boxes and lunch boxes for the local area.



Promote our website and online menu using Google Adwords.



Drive traffic to our website through using Facebook Ads.



Create and distribute flyers that come with a discount coupon to the commercial buildings in the city centre.

Table 4 below shows our projected marketing budget in these three major channels. For both Google Adwords and Facebook Ads, we see the needs to allocate higher budget to create awareness of our existence but we will decrease it in the following year after we have successfully generated awareness and positive word-of-mouth through superior customer service and high quality meals delivered. 10, 000 copies of flyer will be printed and we will include a discount code to encourage potential customers to “test-drive” our service. In the subsequent years as we expand our delivery area to neighbouring towns in Bangsar and
Subang Jaya, we will allocate the same amount of budget for 10, 000 copies of flyer with discount code printed.
2014

2015

2016

Online via Google Adwords

36, 000

24, 000

24, 000

Online via Facebook Ads

12, 000

9, 600

6, 000

Flyers

1, 000

1, 000

1, 000

TOTAL

49, 000

34, 600

31, 000

Table 5: Summary of Projected Marketing Budget 2014, 2015 and 2016

Google Adwords
We will run text ads using the following keywords targeting Kuala Lumpur in our first year and we will include Bangsar and Subang Jaya in the subsequent years:
Keywords

Average Monthly Search

Food delivery

480

Food delivery service

140

Food delivery KL

590

Food delivery Kuala Lumpur

170

Lunch box

260

KFC delivery

18, 100

McDonald’s delivery

8, 100

Table 6: Keywords for Ad Groups in Google Adwords
The logic behind using keywords that include KFC Delivery and McDonald’s Delivery even though we are not a fast food chain is to build awareness to customers searching for fast food delivery. As we will bid for the keyword to appear on top of the page, customers may see that they have another alternative as compared to merely fast food.
Besides text ads, display ads proof to be very effective as well when it comes to food as visual stimulation is stronger. Although the placement of our display ads are limited, we will run display ads featuring our lunch packages with discount code targeting to appear in the following websites based on the highest relevancy and visitors are most probably comfortable placing orders for food delivery service:
Placement

Relevancy

Impressions per week

foodpromotions.com.my

High

250K – 300K

cook.my

High

5K – 10K

Table 7: Websites for ads placement via Google Display Network.
Facebook Ads
Meal Box Delivery Service’s Facebook page will serve as a platform to interact with our customers, listen to their feedback and updating them on the latest menu or promotional packages. The initial Facebook ad run is going to generate the number of likes and to boost the post of our lunch packages. Our customer service team will be actively monitoring comments and feedback from potential and existing customers.

Flyer Distribution
Meal Box Delivery Service’s flyer will include our top 6 lunch sets, discount code and simple steps to order online. We will not be distributing it to the crowds who are heading out for lunch because the likelihood of them disposing our flyers is higher as they might not want to be holding a piece of paper while they head to their eating places. Flyers will be distributed after lunch hour where people are walking back to their office where chances of them bringing it back to their respective desks are higher. With permission obtained, we will be distributing our flyers at the entrance of the following buildings:
Menara Ambank

Menara Genesis

Berjaya Times Square

Menara Dion

Menara Standard Chartered

Menara MBF

The Weld

Bangunan Life Centre

Wisma Goldhill

Menara Prudential

Wisma Genting

University Kuala Lumpur

Plaza Imbi

Menara Uni Asia

Starhill

Wisma Sime Darby

Pavilion KL

Wisma Amoda

Bangunan LTAT

Menara Worldwide

Table 8: Partial list of major buildings in the Kuala Lumpur city centre.

12.0 FINANCIAL MODEL
12.1 Assumption in Year 1
The new venture needs an initial capital investment of RM 215, 300. The table below is the breakdown of the start-up requirement:
Start-Up Expenses
Legal

3,000

Stationery

300

Signage

3,200

Insurance

900

Kitchen Tools

7,000

Salary/ Wages (up to 3 months)

70,800

Pest Control & Spaying

800

Website Development + SEO

20,000

Renovation Work

2,600

Cleaning Supplies

200

Rent & Rent Deposit

10,500

Eletricity & Water Deposit

1,750

Start-up marketing

5,000

Accounting system

250

Total Start-up Expenses

126,300

Start-Up Assets
Cash Required

50,000

Start-up Inventory

10,000

Current assets

18,900

Long-term assets

10,100

Total Assets

89,000

Total Requirements

215,300

Table 9: Start-up expenses breakdown
Our projected sales turnover in the first year will be RM 1, 020, 000 (RM 85, 000 per month)

Projected expenses for the first year will be as follows:
Projected sales revenue for the year 2014:
Month

Total Sales (RM)

January

40, 000

February

48, 000

March

58, 000

April

69, 000

May

83, 000

June

100, 000

July

110, 000

August

120, 000

September

130, 000

October

150, 000

November

160, 000

December

180, 000

TOTAL

1, 248, 000
Table 10: Projected sales revenue for 2014

12.2 Assumption in Year 2
The projected total sales revenue for Year 2 is RM 1, 600, 000 (on average RM 133, 333 per month) which is at least a 30% increase in sales from Year 1. This is due to the repeat sales generated from existing customers in Kuala Lumpur city centre, expansion to a new delivery areas in Klang Valley, namely Bangsar, as well as monthly package promotion available for residents in high rise buildings in targeted areas.

12.3 Assumption in Year 3
The projected total sales revenue for Year 2 is RM 2, 160, 000 (on average RM 180, 000 per month) which is at least a 30% increase in sales from Year 1. This is due to the repeat sales generated from existing customers, expansion to Subang Jaya, where our promotional effort will focus on the industrial areas in Glenmarie. Monthly package promotion continues for residential buildings with dinner meal box made available.

12.4 Break-even Point
Year 1

Year 2

Year 3

1,248,000

1,600,000

2,160,000

Production Cost

374,400

480,000

648,000

Total Cost of Sales

374,400

480,000

648,000

Gross Margin

873,600

1,120,000

1,512,000

Gross Profit Margin %

70%

70%

70%

Salaries/ Wages

23,600

39,250

50,900

Rent

3,500

8,000

13,500

Utilities (Electric, Water, Gas)

800

1,600

2,400

Stationery

250

500

750

Telephone, Fax, Internet

350

700

1,050

Petrol

300

600

900

Marketing

49,000

34,600

31,000

Accounting, Tax advisory

5,000

5,000

5,000

TOTAL FIXED COSTS

82,800

90,250

105,500

BREAK-EVEN POINT

118,286

128,929

150,714

Sales

Cost of Sales

Fixed Cost

Table 11: Break-even Calculation

12.5 Summary of Financial Analysis
Revenue

1,248,000.00

1,600,000.00

2,160,000.00

100%

100%

100%

Cost of Materials

30%

30%

30%

Personnel Expenditures

1.89%

2.45%

2.36%

Other Expenditures

6.63%

5.64%

4.88%

Total Cost

39%

38%

37%

Profit Before Tax

61%

62%

63%

Table 12: Summary of financial analysis

13.0 IMPLEMENTATION PLAN
Food business can involve a high start-up capital. Therefore, it is essential that we properly plan out the start-up costs. We will be using bootstrapping method to finance our business expenses as well as resources needed to begin our operations.
Each of us, the business partners, will contribute equally from our personal savings as startup capitals. We will also obtain cooking supplies and equipment from the existing suppliers of one of our business partners to enjoy better discounts and longer payback duration to allow us to generate revenue from our sales. Besides, we will hire interns or fresh graduates for the position of admin clerks and customer service executives to lower the cost.
It is important for us to ensure we are in compliance with Section 11 of Food Act 1983 and guidelines from JAKIM are thoroughly followed. By obtaining the Halal logo, we will provide confidence to the Muslim community that our food is prepared in accordance to JAKIM requirements. Our operating kitchen which will be located in Jalan Gelugor, Kuala Lumpur, near Kenanga
Wholesale City, will be cleaned on a daily basis after food preparation to ensure cleanliness is upheld.

14.0 STRATEGIC AND OPERATIONAL PLAN
14.1 Legal Formation & Governance
Our business is registered as a private limited company with Malaysian Companies
Commission under the name Meal Box Sdn Bhd. The benefits of being a private limited company include:
1.

Unlimited liability where the owners (also called “Shareholders”) are only liable for the debts up to the amount invested. Their personal assets will not be affected.

2.

Ease in capital raising for business expansion.

3.

The company can still continue its business even if the there are changes among shareholders or directors of the company.

The following chart illustrates the governance structure for new venture effective on 1 August
2014:

Board of
Directors

Finance
Manager

Admin &
Account Clerks

Marketing

Operations
Manager

Manager
Customer
Service
Executives

Cooks

Delivery drivers

Kitchen
Assistants
Diagram 2: Organizational chart

In regards to our organizational structure, the three business partners will be serving as board of directors as well as taking the active roles in management in the first year of the business. Here are the roles and responsibilities of the managing partners:
1. Finance manager


Maintain a documented system of accounting policies and procedures.



Ensure that sufficient funds are available to fulfil ongoing operational and capital investment requirements.



Maintain banking relationships and arrange for debt financing if necessary.



Manage the preparation of the company’s budget and report to management if any variances occur in established budget.

2. Marketing manager


Monitor and analyse market trends in food delivery service and food & beverage industry as a whole.



Identify ways to improve existing products, customer service and the needs to introduce new products.



Study competitors’ product offerings and services.



Carry out marketing research on a quarterly basis to identify potential target markets and create strategies to enhance communication with them.



Implement offline and online promotional activities to create awareness and generate sales revenue.



Work closely with operations manager to establish standards for timely delivery and quality meals.

3. Operations manager


Develop guidelines that are aligned with company objectives.



Planning and controlling of raw materials purchase and meal preparation.



Identify issues and areas of improvement to create a proper system to ensure smooth operations.



Monitor performance by working closely with marketing manager for feedback and suggestion through customer interaction.

4. Admin and Account Clerks


Carry out accounting and clerical functions to support management.



Compile and sort invoices, receipts, and cheques.



Filing, mailing and sorting out documents.



Record business transactions and daily worksheets to company’s accounting system. 

Record charges and refunds if any

5. Customer Service Executives


Assist customers with any enquiries and resolve customer complaints via telephone, email or social media.



Assist customers with order placement, refunds or exchanges.



Update customers of deals and information.



Update customers’ database.



Assist in tactical marketing and promotional activities.

6. Cooks


Create and improve menu based on customers’ feedback and suggestion.



Train new kitchen assistants.



Advise operations on purchasing of raw materials.



Prepare and ensure meals are cooked in accordance to JAKIM requirements.

7. Kitchen Assistants


Washing and cleaning of raw materials.



Record inventory.



Assist cooks in meal preparation.



Cleaning kitchen equipments and kitchen.

8. Delivery Drivers


Learn the routes in their delivery areas and find out short routes to avoid traffic. 

Deliver meals on time in full and proper packaging.

14.2 Team Development
The table below shows the current members of our team and the members we need to recruit to ensure our business operations is running smoothly. As mentioned earlier, we as the business partners will take an active role in managing the business in finance, marketing as well as operations in the first year. We will subsequently fill these roles with new and

Mark Mah (managing partner)

Delivery Drivers

Kitchen Assistants

Cooks

Customer Service Executives

Admin & Account Clerks

Operations Manager

Marketing Manager

Finance Manager

qualified hires in the second year.

X

Jacqueline Teo (managing partner)
David Dorai (managing partner)
Adrena Foo
Aireen Ariffin

X
X
X
X

Azzad Ismail

X

David Leong

X

Tee Chi Hao

X

Vacant

0

Fuad Hassan

X

Vijendren Krishnan

X

Vacant

0

Table 13: Team of Meal Box Delivery Service

X = Position filled | 0 = Position vacant

14.3 Stakeholders & Operational Management
As shown in the table below, these are the key stakeholders of our new venture. Here, we include their needs and concerns, both positive and negative on the business and how we could manage the relationships.
Key

Needs and Concerns

Stakeholders
Shareholders

Impact (positive and

How to Manage

negative)
Expected for return on

If ROI does not

Increase revenue by

investment to be at

happen within a year,

aggressive marketing

least 40% in 2 year

they might lose

to achieve 40% ROI in

onwards.

confidence to reinvest

the 1st year.

nd

when we want to expand the business.
Board of

Fair allowances and

Disappointment and

Take constructive

Directors

annual bonus with

loss of trust if expected

feedback and useful

appreciation of their

results are not

suggestion from board

guidance.

produced.

of directors and implement it to boost revenue for the business. Team of

Monthly salary with

Lose their loyalty if

Establish a positive

Management

career advancement,

they are not

work culture that

annual bonus and

compensated fairly.

encourages learning

appreciation from

Low morale if their

as well as attractive

business owners.

hard work is not

remuneration

appreciated.

packages.

Non-executive

Stable monthly salary,

Loss of morale and

Provide monetary

staff

annual bonus and

leave jobs if their

incentives for good job

possibly career

expectations are not

performance. Allocate

advancement.

met.

budget for training and education for those who are interested to switch role to executives and possibly management in the future.

Customers

Great and reliable

Dissatisfied and

Constantly improve

service with

disappointment if

service standards to

consistently good

quality of service and

ensure timely delivery

quality meals

meals are not met.

with quality meals

delivered.

Might even spread

delivered. Under

negative word-of-

unforeseen

mouth causing bigger

circumstances where

loss of customer base

these are

to business.

compromised, take corrective measures to compensate customers.

Suppliers

Prompt payment and

Drop their support if

Make payment on time

consistent order

payment is not made

and maintain order

placing.

on a timely manner.

quantity.

Table 14: Key stakeholders

14.4 Financial Management
At the end of the month, we (the board of directors) will hold a meeting with the management team to submit cash flow and income statement as well as to monitor the KPIs set.
KPI

TARGET

PROFITABILITY

EFFICIENCY

Monthly sales

> RM 100, 000

70%

30 days

Customer base

> 10, 000

N/A

30 days

> 1, 000

N/A

30 days

No later than 12.30 p.m.

N/A

No more than 3

(overall)
Customer base
(new)
Delivery time

times a week for delay in delivery.
Table 15: Key Performance Indicators.
At the meeting, we will review the following indicators:
 Monthly sales target of more than RM 100, 000 needs to be achieved.
 Customer base, both existing and new customers need to be maintained at more than 10,
000 in order for us to achieve our monthly sales target.

 New customers needs to be acquired every month from our marketing effort, targeted at signing up at least 1, 000 new customers.
 Delivery time is the most important factor in our service quality. Our drivers must not deliver food later than 12.30 p.m. and even if there are valid reasons for delay, it shall be no more than 3 times a week.

14.5 Sales & Customers
In market where customers are more likely to order food delivery from established food chains, for e.g., Dominos Pizza, McDonald’s, we face the challenge of convincing them the quality of our food because we do not have a physical restaurant serving walk-in patrons.
Considering that our business rely mostly on social media marketing, as per our marketing plan earlier, we will be utilize Google Adwords, Facebook Ads and flyer distribution to drive traffic to our website.

14.6 Growth & Exit
Providing lunch boxes to busy working class serves as a stepping stone for us to venture into something bigger. As long as we put the highest priority on good quality meals and exceptional service, we can expand further into including variety of cuisine as well as providing healthy and well balanced breakfast and dinner.
We are striving to be the market leader in food delivery service that not only provides nutritional and quality meals but also providing customers the most convenient way to order their meals on a daily basis.
Our growth strategies are broken down to short, medium and long-term:
Short-term – starting up and early stages
Our main challenge at the initial stage would have to be the meal preparation and packaging. While most fast food already came with a food preparation system, we need to build that system from scratch without compromising the quality of our meals. We need to ensure warm meals stay warm and cold food stay cold when they’re served to our customers. This is precisely why we needed more time to prepare the meals, hence we need to inform customers to place order before the cut-off time. From the perspective of customers, this might not be as convenient because they cannot place their orders anytime they want to and

they might even get disappointed to be told that their meals cannot be delivered on the same day if they order after the cut-off time.
Our cooks need to make sure the meals are well prepared and tasty so the customers feel that it’s worth the wait while our customer service team need to record all the feedback and suggestion, regardless of whether it’s positive or negative so that we can use this information provided to be included as part of our medium-term growth strategies.
The 3 business partners will be involved directly in day-to-day operations in the initial stages to ensure everything is running smoothly. We will be training the staff on areas that are within our expertise and send them to external training programmes when it’s necessary.
Medium-term: Continuous improvement on existing strategies and implementation of expansion strategies.
We believe the most important ingredient of success in our business has to be our serviceoriented culture in this expansion stage. It is a continuous effort since the initial stage for us as business partners to instil the right culture and constantly improving it.
As we open up our market to new areas, we need to make sure the culture centres on reliability on the quality of our service and food. For instance, the new employees we hire in the new outlet are required to go through 4 weeks of customer service training and induction training to understand our business operations as a whole.
Our website will need to be revamped to include new content and features that are necessary to make sure it is up-to-date but still stays user-friendly. The simplicity of the website will also be maintained.
Long-term: Business maturity and decline stages
At this point, estimated to be over 5 years into the business, we anticipate competitors of similar offerings will enter the market. At this stage, we need to be creative in our offerings.
While we cannot yet tell the technologies available in the future for us to tap into, we can safely assume that we will work towards maintaining our position as the market leader in food delivery service.
One of our marketing plans to get interactive with our customers is tutorial videos that provide guidance to our customers who would like to prepare their lunch boxes or bento once in a while. These videos will be uploaded to YouTube. They can buy their own ingredients at the market or they can also choose to get the ingredients directly from us in a pack where the portion is already set for one person. They just need to put in the number of

people they are preparing the lunch boxes or bentos for and it will be delivered to their doorsteps. Again, this provides simplicity and convenience for our customers.

15.0 CONCLUSION
To sum up this business venture, we would like to share the fundamental belief that a successful business is the type of business that will improve people’s lives. Our belief is very much influenced by an online retail company, Zappos.
As the story goes, the founder, Nick Swinmurn was looking for a pair of shoes in a mall. In one store, he found the right style but not the right colour and in another store, he had the right colour but not the right size. If we look back at the current food delivery services that are available, we find that customers are compromising either the taste, or the quality, or the delivery time. There is no one food delivery service that could satisfy it all.
While we do not claim to have the perfect solution, our Meal Box Delivery Service will capitalize on our resources to ensure that our meals and services are near perfection. Our customers’ satisfaction will be our priority.
The original idea to launch this venture in the first place is to offer the best choices of nutritional and well balanced meals in a convenient way to the busy working class people.
We have identified the needs for this when we were the one experiencing the similar problem. This was how Zappos’ founder decided to launch the business. He could relate it to his own experience and frustrations in not being able to find the right shoes for himself simply because one store doesn’t have all that he wants. It was time consuming and tiring having to walk from one outlet to another to find the right fit whereas the click of a button would have been much faster.

REFERENCES
Chan-Kim, W., & Manborgue, R. (2005). Blue-Ocean Strategy: How to create uncontested market space and make competition irrelevant. Cambridge: Harvard Business School.

Hague, P. N., & Hague, N. (2004). Market research in practice: A guide to the basics.
London: Kogan Page Ltd.

Halal Guide (2013). What is Halal? Halal Guide Philippines. Retrieved from Hamel, G.
(2002). Leading the revolution. New York: Harvard Business Press Retrieved from http://ezproxy.aeu.edu.my:2085/toc.aspx?bookid=3469 Karloef, Loevingsson, B. & Fredrik. (2005). A to Z of Management Concepts and Models.
London:

Thorogood.

Retrieved

from

http://ezproxy.aeu.edu.my:2061/lib/aeu/home.action?force=1

Kochhar, R. (1997). Strategic assets, capital structure, and firm performance. Journal Of
Financial And Strategic Decisions, 10(3), 25. Retrieved from http://scholar.google.com.my

Malaysian Halal and Consultation Training Agency (2012). Key challenges faced by the halal
Market

Watch

2012.

(n.d.).

The

Malaysian

food

industry.

Retrieved

from

http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Market_reports/The_Malaysian_Food_I ndustry.pdf Paley, & Norton. (2006). Manager’s guide to competitive marketing strategies. London:
Thorogood. Retrieved from http://ezproxy.aeu.edu.my:2061/lib/aeu/home.action

Richard, T. (2005). Smart sales people don 't advertise: 10 ways to outsmart your competition with guerrilla marketing. Retrieved from http://ezproxy.aeu.edu.my/login
Spinelli, S. & Adams, R. (2012). New venture creation: Entrepreneurship for the 21st century
(9th ed.). Singapore: McGraw-Hill.

Stewart, D.W. & Zhao, Q. (2000). Internet marketing, business models, and public policy.
Journal of Public Policy & Marketing, 19(2), 287296.

The Essence Consulting. (n.d.). Business model: A box of bricks for strategists. Retrieved from http://www.theessenceconsulting.nl/pdf/business%20model%20a%20box%20of%20bricks%20for%20strat egist.pdf Zulkarnain Kedah. (2013). Entreprise project. Unpublished manuscript. University of
Cambridge, London.

APPENDICES

Appendix I
FOOD DELIVERY SERVICE SURVEY
JUNE 2014
Instruction: For each item, please tick (√ ) your response.
1.

2.

Have you ever placed an online order for food delivery before?


Yes (please go to question no. 2)



No (please skip to question no. 3)

If Yes to question no. 1, then:
(a)

Where is your food usually delivered to?
(Please tick (√ ) one or more where appropriate)

(b)

(c)



Office



Home



Relative or Friend’s House



Others (Please state (________________________________________)

How long have you been using food delivery services?


Less than 6 months



6 months -1 year



1 - 2 years



2 - 5 years



More than 5 years

Please

tick

(one

or

more,

where

appropriate)

the following

establishments that you have made online food delivery services before:


Dominos’ Pizza



Pizza Hut



KFC



McDonald’s



Nando’s

food

3.

(a)

5.

Food Panda



Go Click Food



Grace Kitchen



Others: (Please state:___________________________________ )

Would you consider online food order and delivery in the near future?

(b)

4.





Yes



No

Would you place food order for delivery via the telephone instead?


Yes



No

Would you consider ordering food delivery through mobile telephone applications?


Yes



No

Please think about all the foods that are delivered to you from online ordering.
How often are you satisfied with the... (please tick (√ ) in the box)
Always
ordering process? punctuality of the food being delivered? way the food is cooked? way the food looks? way the food smells? way the food tastes? variety of food? temperature of the food?
(Hot food remains hot and cold

Usually

Sometimes

Seldom

food remains cold)

6.

Would you recommend an establishment to your family, friends and colleagues if you’re always or usually satisfied with all the above?

7.

8.



Yes



No



Maybe

What types of cuisine do you prefer? (Pl ease check one or more where appropriate)


Asian (in general)



Chinese food



Indian food



Malay food



Western food (in general)



Italian food



Mexican food



Middle Eastern food



Fusion food

Personal information
(a)

(b)

(c)

I am a ...


male



female

I am working...


In the city



In the suburban area (pinggir bandar)



In a rural area (luar bandar)

My home is located...


In the city



In the suburban area (pinggir bandar)



In a rural area (luar bandar)

============ Thank you very much for your opinion ===========

Appendix II
Table

1: Tabulated data from Food Delivery Service

Survey
Item Response

Tally

Response

Tally Total (checksum)

1
2(a)

Yes
Office
Home
Relative/Friends
2(b) <
6 mths house 6 mths – 1 yr
1-2 yrs
2-5 years
> 5 yrs
2(c) Domino’s Pizza
Pizza Hut
KFC
McDonald’s
Nando’s
Canadian Pizza
Food Panda
Others
3(a) Yes
No
3(b) Yes
No
4
Yes
No
Item Response
Tally
5
Always
ordering
9
punctuality
8
process

38
20
24
4
6
11
7
8
7
30
26
6
22
3
1
3
1
35
3
29
9
33
5

No

27

way cooked looks smell taste variety temperature Item Response
6
Yes

31
26
34
35
36
26

7

No
Maybe
Asian
Chinese

11
5
8
9
6
5

65

NA

48

NA

39

92
NA
Can tick more than once 16
11
21
6
21
6

51
65
14
50
65
15
54
65
11
Total (checksum)

Usually Sometimes Seldom
27
19
10
26
23
8
16
26
13
14
15
24
Tally
41
2
22
32
33

7
8
10
7
8
10

65
65
65
65
65
65
65
65
Total (checksum)
65

172
Can tick more than once Indian

3

Malay

7

Western

48

Italian

20

Mexican
Middle Eastern
Fusion
8 (a) Male
Female
8(b) Working in city

8(c)

9
10
10
14
51
41

Working in suburban area

14

Working in rural area
Home in city
Home in suburban area
Home in rural area

10
39
15
11

65
65

65

References: Chan-Kim, W., & Manborgue, R. (2005). Blue-Ocean Strategy: How to create uncontested market space and make competition irrelevant Hague, P. N., & Hague, N. (2004). Market research in practice: A guide to the basics. Halal Guide (2013). What is Halal? Halal Guide Philippines. Retrieved from Hamel, G. (2002). Leading the revolution. New York: Harvard Business Press Retrieved from http://ezproxy.aeu.edu.my:2085/toc.aspx?bookid=3469 Karloef, Loevingsson, B. & Fredrik. (2005). A to Z of Management Concepts and Models. Financial And Strategic Decisions, 10(3), 25. Retrieved from http://scholar.google.com.my Malaysian Halal and Consultation Training Agency (2012) Paley, & Norton. (2006). Manager’s guide to competitive marketing strategies. London: Thorogood Richard, T. (2005). Smart sales people don 't advertise: 10 ways to outsmart your competition with guerrilla marketing Spinelli, S. & Adams, R. (2012). New venture creation: Entrepreneurship for the 21st century (9th ed.) Stewart, D.W. & Zhao, Q. (2000). Internet marketing, business models, and public policy. Journal of Public Policy & Marketing, 19(2), 287296.