1.

0 EXECUTIVE SUMMARY

The Sweet Sangat Cupcake Fairy is our latest and greatest cupcake. We designed this
cupcake to benefit the customer for Life. For the most part, we just do cupcakes. We have a few
other treats available, but the focus is definitely on the cupcakes. We believe in doing one thing
exceptionally well rather than multiple things mediocrely. We work out of our commercial or
retail kitchen rather than the home kitchen so that would be more of the transition. The reason for
this was we just outgrew our home kitchen.
When we found our space and started working on turning it into a commercial kitchen,
we did not initially plan on being open for retail/walk-in business when we opened in August
2011. However, once people found out that we were in commercial space and no longer in our
home, we were besieged with requests to be open for walk-in business. After deciding that we
there working anyway and why not make some extra money while we at it, we opened the doors
for walk-in traffic. We started small, just 3 days a week to see how it went, and by November
2011, we were open 6 days a week.
We have to be very diplomatic in explaining to your customers as to why something may
or may not be done. Everything is made to order for each customer. The base recipes (cakes and
icing) are combinations of family recipes, recipes from books and recipes we found on the web.
We made our own mutant recipes and have consistently used those since we started.
We are tried some advertising in papers and the best for us which is make our own
website online while Facebook and Twitter are amazing tools. Initially, we was wary of social
media. As a recovering Facebook addict, the thought of putting my business on Facebook just
did not seem like a great idea.
Part of what makes our cupcakes awesome is that we keep our overhead low, which
allows our prices to be low compared to other retail cupcakes. We also offers caters weddings,
events, baby showers and more offers local delivery for our delicious cupcakes.

2.0 ACKNOWLAGEMENT
As the Chairperson of the Sweet Sangat Cup Cake Fairy, I would like to thank you for the
help and support provided by entire organization in this business. The business plan was a
success and the funds that we have collected this plan are really good. All of the staff has helped
us and involved in managing this business plan. The organization has carried out social
responsibility in true sense of the word.
I would like to convey my sincere thanks to the entire organization. I look forward in getting
each cooperation in this business in future too. You have an amazing ability to envision our
success and make it become a reality. I look forward to our next year and watching our Sweet
Sangat Cup Cake Fairy grow even more successful

3.0 BUSINESS DESCRIPTION

3.1 Name
Sweeet Sangat Cupcake Fairy

3.2 Vision
Our vision is to bring together their collective talents, passions and business experience to create
a gorgeous product and retail experience to match. To make a new product, there are numerous
copies now on the market, but only one original Sweet Sangat Cupcake Fairy. All you have to do
is taste the difference. The business concept evokes all of the senses : sight, taste, touch, smell
and sound. It is a concept that inspires people.

3.3 Mission
The Sweet Sangat Cupcake Fairy aims to offer high quality cupcakes and bakery products at a
competitive price to meet the demand of the middle- to higher-income local market area
residents and tourists. We are sensitive to their needs for healthy and delicious baked goods.

3.4 Organisation Chart

PRESIDENT

VP
Human
resource

VP
Accounting and
Finance

VP
Marketing

3.5 Management / Personel

Name

: Doris Laing

Date of Birth : 10 September 1991

Place of Birth : Sarawak
Status

: Single

Position

: Chief Executive Officer ( President )

Address

: Lot 7542-11 JLN Dato Permysuri 2B Permyjaya Miri Sarawak.

Email

: realris@live.com

Education

: UNIKL MICET (Master in Chemical Engineering Technology Process)

Name

: Nor Izzaida Binti Ariffin

Date of Birth : 12 Disember 1980

Place of Birth : Sungai Rambai , Melaka
Status

: Married

Position

: Vice President of Marketing Manager

Address

: No, 22 Jalan Bistari 5/7 Taman Yayasan, Segamat , Johor

Email

: jaja92_jojot@yahoo.com

Education

: University oxford (Master in Business Marketing)

Working Experience:

Worked in consumer marketing for two years.

Now at The Sweet Sangat Cupcake Fairy Shop as a Vice President of Marketing
Manager.

Name

: Ahmad Ikhram Bin Roslan

Date of Birth : 12 August 1976

Place of Birth : Kuala Pilah, Negeri Sembilan
Status

: Married

Position

: Vice President of Human Resource

Address

: No 54 Jalan Titingwangsa 5-6 Taman Mega Wangsa Kuala pilah.

Email

: iky76@yahoo.com

Name

: Nur Nasriah Binti Che Arifin

Date of Birth : 16 November 1986

Place of Birth : Hospital Machang, Kelantan.
Status

: Single

Position

: Vice President of Accounting and Finance

Address

: Lot 2003, Taman Gading Galoh, 16600, Pulai Chondong, Kelantan.

Email

: Serikandiumar92@yahoo.com

Education

: Bachelor of Commerce (accounting & Finance) at The University of Mumbai.

Working Experience:

Three-day training offers practical

One year external audit experience in Publisher Unit at Kota Bharu.

Worked in consumer marketing for two years.

One and half year in accounting at Serdang.
Now at The Sweet Sangat Cupcake Fairy Shop as a Vice President accounting and
finance.

4.0 PRODUCT DESCRIPTION

We create Unique gorgeous cupcakes that are made with the finest quality ingredients, covertures
Belgian chocolate gouache, pure butter and eggs, each cupcake is lovingly topped with the finest
sugar decoration created by hand. We do not compromise on quality, taste and decoration which
sets us apart from the rest. We also make cupcake theme such as anniversary, Birthdays party,
corporate, graduation days, kids, wedding/engagement, valentines, mother days, Hari raya and
Christmas.

5.0 TECHNOLOGY DESCRIPTION

First of all we have the Nostalgia Electrics CKM-100 Electric

Cupcake Maker . This little machine will help you make seven
cupcakes in only five minutes! It has a ready indicator light and a
non stick surface so the cupcakes slip right out.

After our business is known, we move from own kitchen into retail kitchen and caf. We own
equipments for large production for our cupcake.

6.0 OPERATION / DAILY WORK

6.1 Operation Hours

OPEN EVERY DAY

CAFE HOURS: 8am 6 pm
DELIVERY HOURS: 9 am 8 pm
Jalan Putra Impiana 7, Taman Putra Impiana , Puchong ,Selangor.

6.2 Caf Layout

Kitchen Layout

Our Caf

6.3 Production Process

Simple decoration procedure

7.0 HISTORY OF CUPCAKE

Today we found a newspaper article (registration required) that not only talked about
cupcakes newfound popularity amongst adults, it also gave some cupcake history. Thought we
share that knowledge with you, the cupcake-devoted:
Here's a cupcake primer: A "cup" cake in 19th Century America might have been a small cake,
but it wasn't necessarily so. They were so called because the ingredients for them were measured
in cups instead of weighed, as had been the custom. According to "Baking in America" by Greg
Patent, this was revolutionary because of the tremendous time it saved in the kitchen.
Whether it was a "cup," "measure" or "number" cake, the shift to measuring from weighing was
indeed a significant one, according to "The Oxford Encyclopedia of Food and Drink in
America." But it goes on to explain that the cup name had a double meaning because of the
practice of baking in small containers -- including tea cups.
The cups were for convenience because hearth ovens took an extremely long time to bake a large
cake and early cakes, by the way, were enormous and burning was common. Gem pans, early
muffin tins, were common in households around the turn of the 20th Century and cupcakes were
then baked in those.
And if you are wondering, it was 1919 when Hostess introduced the famous snack cupcake, but
it did not become the cream-filled, squiggle-topped Hostess Cup Cake we know today until
1950.
It is interesting to note that the cakes were likely called "number" cakes because of a mnemonic
device for remembering the recipe: One cup of butter, two cups of sugar, three cups of flour and
four eggs plus one cup of milk and one spoonful of soda.
The formula became known as the one-two-three-four cake, and today's cupcakes are mostly still
made with similar traditional cake ingredients.

8.0 MARKETING
8.1 Target Market
1. Students : We expect to reach students through campus activities and marketing, as well
as by sponsoring special student events which is graduation days .
2. Middle-aged customers : We will target middle-aged customers through online
advertisements and brochures. Advertisements will be at places such as fitness centres,
train station, and public areas.
3. Couples : For the couples, we will prepared the special designed cupcake and we already
make cupcake theme for its such as anniversary, wedding/engagement, mother day, and
valentines. We will give discount for some events such as wedding and engagement.
4. Childrens : We will showed the cute cupcake pictures by advertisements which are the
banner, and template to give impact to childrens . Also prepared for the special events
such as birthday party.

8.2 Competition
Direct
Our main competitor for direct are the another major cupcake company such as Bakery shops
and gift bakery. Below are the differentiation between our stall and competitor.
Our stall

Bakery Shop

Have delivery

Do not have delivery

Variety flavour

Limited

Use secrete recipes

Nothing special

Differentation

Good services

Indirect

Fast food restaurant nearby, Burger shop in front our stall, Master Cookies, and sandwich shops.
Fast food restaurant offer the convenience of fast service. Although the health value of fast food
is low, people are often willing to sacrifice this for convenience. Burger Shops already have luch
hour.

9.0 PRODUCT

9.1 Product Differentiations

Have two possible theories are circulating in the food world. Both theories are based on cupcake
recipes that we create. The first theory is that cake batter was cooked in teacups and other small
containers since it took such a long time to cook cakes in hearth ovens. The small teacups cut
the cooking time of cakes dramatically. The second theory is based on how the ingredients in the
cupcake recipes were measured. (1 cup flour, 2 cups sugar) . However they first came about,
these wonderful creations we call cupcakes are still near and dear to everyone's heart whether
we're young or just young at heart. Our cupcake recipes are here to help everyone recreate their
fondest childhood memories or to create new memories using more grown-up cupcake recipes.
We create Unique gorgeous cupcakes that are made with the finest quality ingredients, covertures
Belgian chocolate gouache , pure butter and eggs, each cupcake is lovingly topped with the finest
sugar decoration created by hand. We do not compromise on quality, taste and decoration which
sets us apart from the rest. We also make cupcake theme such as anniversary, birthdays party,
corporate, graduation days, kids, wedding/engagement, valentines, mother days, Hari raya and
Christmas.
9.2 Brand
Whether successful brands like it or not, the Sweet Sangat cupcake fairy is happily baking at the
moment and if brand owners pay attention they could benefit from these activities. Brand
loyalists, cupcake artists and bakeries are using the cupcake as a means of expression at parties
and weddings to share brand experiences with customers, friends and guests. Trademark and
copyright violation concerns aside, we are baking works of domestic art and sharing that with
other people at parties and also pictures.
9.3 Labeling
We included logo of company, name of product, net weight, serving suggestion, due date, contact
us to order, nutrition information , ingredient, precautions, way of preparation, pricing, address,
Halals logo. Meanwhile on the more conservative side of the collective phenomenon,

corporations are labelling of cupcakes for functions and events to foster loyalty among
employees, express brand pride and extend brand awareness. Absolutely anything from logos and
images can now be printed using edible inks on icing sheets. It might surprise some to know that
some Canon bubblejet printers are used to create them. Its a liltle bit save our budget.
Example :

Name of product
Cupcake Ingredient

salt separately be my guest and use unsalted) baking powder, sugar, vanilla extract.
Way for preparation : Mix all of the ingredients well with a mixer. It should be brown

: pineapple cupcake, chocolate cupcake.

: flour, milk, eggs, butter (I use salted but if you want to add the

and smooth. Free of lumps. Bake at 350F for 25 minutes. Cupcakes will turn out moist
and delicious. Buttermilk or milk may be substituted for water. Melted butter may be
substituted for oil.

Nutrition information :

9.4 Packaging
We used beautiful & strong, clear plastic cupcake containers, for bakery packaging of cupcakes.
Very recommended packaging for door gift / favours or large quantity of order. Individual
packaging is reliable and easy to manage. Window box and transparent box packaging for
cupcakes is suitable for hantaran be it wedding or engagement ceremony cause the see thru
features let others to see the design and message on top of the cupcakes. Other than that , can
also request this packaging for that special someone birthday or special occasion. For this type of
packaging additional charges applies on top of the normal box set charges of the cupcakes.
Samples Packaging

9.5 Price

Price for each cupcake in our stalls depends on the sizes of each cupcake, shape of cupcake,
flavours, raw material and type of packaging. For the special cupcake we already gift the special
price that the customer will always feel affordable and comfortable. Pricing factors of our
business are manufacturing cost, market place, competition, market condition, and quality of
product.
Pricing Strategy

We choose penetration pricing (cheaper) to introduce our product so that can interested
many customer. For whose customer order more than 100 pieces of cupcake, our
company will give 20% discount for each type cupcake. Also for whose permanent
customer , they will get a special gift from our company.

In order to maintain competitive gas prices, we will ensure that our pricing in marketing
is lower than our competitor offer.

Our margin profit is flexible to ensure, our price is not change although our cost increase
for instance :if our cost increases we will reduce our margin profit to ensure that our price
remain same

For the first two month, we all have decide to make a promotion which is each customers
who purchased over RM100 of any products, they will get 10% discount. This is just a
beginning strategy for the customers to come and try our products.

9.6 Place
Location Map

Retailer
-We choose the retailers because retailers are much stronger personal relationship with the
consumer.
-Retailers will promote our product .
Consumer
-Our cafe customers.

9.7 Promotion

A new promotion for all customers. We prepared cupcake to became a present for birthday party,
a special days with lover,Promotion involves disseminating information about a product, product
line, brand, or company.
Advertising
Newspaper Advertising
Newspapers are most cost efficient for advertising consumer products. We concentrate
advertising in a local market and at the same time reach a wide variety of readers.
Consumers use newspaper as a source of immediate comparative product and price
information on which they base buying decisions.

Magazine Advertising
Magazines are much more specialized in content and more national in distribution than
newspaper. Magazines have better print quality, are more personal and less likely to be as
quickly thrown away as newspaper. We choose Recipies magazine to promote our
product. This is because this magazine is very suitable for our product.

World Wide Web

Our companies must have a Web site to promote our product. The internet represents a
cost-effective means of reaching targeted customers and prospects with an effective
message. We also create the Facebook account for our cupcake. Facebook is the more
easier and effective way to advertise and dealing with customers.

Brochure
Brochures contain attractive photography, graphics, product or descriptions, and a list of
benefits along fax and phone number, mailing and e-mail address and Web site
information.

Sales Promotion.

Coupons
Coupon is a ticket or document that can be exchanged for a financial discount or rebate
when purchasing a product. This coupon distributed through magazines, newspaper and
brochures. Our companies will give coupon for a financial discount of Chewy
Toothpaste.

Free samples
A free sample is a portion of Cupcake Fairy which is given out in our Caf. This is the
beginning to introduce our cupcake brand. Indirectly, we will have our cupcake fans
which keep coming again for our Cupcake Fairy.

Example of Advertising

CAFE HOURS: 8am 6 pm

DELIVERY HOURS: 9 am 8 pm
Jalan Putra Impiana 7, Taman Putra Impiana ,
Puchong ,Selangor.
Contact no: 013 8057139

Brochure 1

Brochure 2

10.0 RESEARCH, DESIGN AND DEVELOPEMENT

10.1 Cost

Cost per unit ( example -Chocolate cupcake )

Raw Material : RM 2.30
Packaging
: RM 0.90
Total
: RM 3.20

10.2 Time

Monday-Friday (caf hours) : 8.00 am -- 6.00 pm

Saturday and Sunday : 10.00 am 5.00 pm
Delivery hours : 9 am 8 pm

10.3 Testing

clinically proven-good for health.

enriched with vitamins.

11.0 FINANCIAL SEGMENT

11.1 Projected Profit and Loss

As the Profit and Loss table shows, The Sweet Sangat Cupcakes Fairy expects to continue
its steady growth in profitability over the next three years of operations.

Sales
Direct Cost of Sales
Other
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll

Pro Forma Profit and Loss

Year 1
$491,000
$76,750
$0
$76,750
$414,250
84.37%

Sales and Marketing and Other Expenses

Depreciation
Utilities
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

Year 2
$567,105
$88,646
$0
$88,646
$478,459
84.37%

Year 3
$655,006
$102,386
$0
$102,386
$552,620
84.37%

$260,800

$273,840

$287,532

$27,000
$60,000
$1,200
$39,120
$0
$388,120
$26,130
$86,130
$10,000
$3,111
$13,019
2.65%

$35,200
$69,000
$1,260
$41,076
$0
$420,376
$58,083
$127,083
$9,500
$12,146
$36,437
6.43%

$71,460
$79,350
$1,323
$43,130
$0
$482,795
$69,825
$149,175
$8,250
$15,650
$45,925
7.01%

Break-Even Analysis
Our Break-Even Analysis includes running costs of production. These are fairly low since we
manufacture all of our goods at a low cost to us. Here are the items included in the average
percent variable cost:

Manufacturing ingredients, i.e. flour, sugar, yeast and butter.

Payroll.
Mortgage.
Utilities.
Advertising.

The Break-Even Analysis as it appears below indicates that the break-even point will be
attainable each month.
Break-even Analysis
Monthly Revenue Break-even

$19,036

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

Gross Margin

36%
$12,271

Profit

Projected Cash Flow

The following chart illustrates a cash balance for the first three years, enabling the company to
grow through reinvestment.

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$251,700
$251,700

$324,000
$324,000

$400,000
$400,000

$0
$0
$0
$0
$0
$0
$0
$251,700
Year 1

$0
$0
$0
$0
$0
$0
$0
$324,000
Year 2

$0
$0
$0
$0
$0
$0
$0
$400,000
Year 3

$105,000
$128,199
$233,199

$115,500
$182,776
$298,276

$127,050
$219,845
$346,895

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0
$0
$0
$0
$233,199
$18,501
$30,593

$0
$0
$0
$0
$298,276
$25,724
$56,316

$0
$0
$0
$0
$346,895
$53,105
$109,421

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Long-term Liabilities Principal Repayment

Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Projected Balance Sheet

The following table represents the financial position of the Sweet Sangat Cupcake Fairy at the
end of each of the three upcoming fiscal years.

Pro Forma Balance Sheet

Year 1
Year 2
Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

12.0 THE APPENDIXES

Samples Products:

Year 3

$30,593
$0
$30,593

$56,316
$0
$56,316

$109,421
$0
$109,421

$175,000
$3,492
$171,508
$202,101
Year 1

$175,000
$6,984
$168,016
$224,332
Year 2

$175,000
$10,476
$164,524
$273,945
Year 3

$14,241
$0
$12,000
$26,241
$173,000
$199,241
$7,500
($5,408)
$767
$2,859
$202,101
$2,859

$15,093
$0
$12,000
$27,093
$173,000
$200,093
$7,500
($4,641)
$21,380
$24,240
$224,332
$24,240

$18,336
$0
$12,000
$30,336
$173,000
$203,336
$7,500
$16,740
$46,369
$70,609
$273,945
$70,609