1.

0 Introduction
I Love Tart Company is a dessert tart cafe located in the 1st Avenue Mall 10300 Georgetown,
Penang. We can describe as a customized tart cafe where customers can choose their flavour
topping with four selections. This will fulfil customers need because there are many of topping
or selections for them to choose depend on their own taste. Therefore, the tart is our main selling
point. We will provide a combination of excellent tart at value price, with packaging. I Love Tart
is the result to an increasing demand for type of dessert, to be consumed while walking around
inside a shopping mall. The founder of our company is Mr. Teh Wei Chian.
Mission and Vision
Mission
To deliver unique tart with boundless possibility, opportunity to create own favorite tart with
fantabulous taste, and feel the whole vanilla day.
Vision
In the next 5 years, our company seeks to be one of the representative desserts in Malaysia and
become the first choice of dessert whenever customers are having their delight tea time.
Objectives
To delivering a yummy tart along with own favorite topping and create their own style of tart.
2.0 Why we choose the business.
The idea of company name is come from founder, he think that name are easily recognize and
everybody love to eat tart. In September 2013, Mr. Teh Wei Chian came out with this idea which
is selling special egg tart. He once went to Taiwan for trip and he found a food shop which sells
the egg tart. He bought the food and taste was so excellent. He thought the taste and outlook is
completely different and special with Malaysias egg tart. Therefore, Mr.Teh saw the opportunity
and decided to establish a caf shop which is selling this special and unique tart. And after had a
deep discussion with his friends who are Dhushyendran, Leonard and finally they decided to run
the business in the form of partnership.
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3.0 Legal Status and Ownership Structure

I Love Tart Company is a copyrighted company in Malaysia and it is regulated by registration
with the registrar of business (ROB) under the Registration of Business Act 1965. We also have
intellectual property such as patents and trademarks. In Malaysia law under section 3(1) of
partnership Act 1961 is defined partnership to business carried out between two persons or more
with a common aim of making profit. For right of partners, it is under section 26 which protect
interest on each of partner and they are equally to be treated in business as each of parties are
require to share and manage their capital or resources equally since they are being accepted in
partnership agreement. And it is also some legal and regulation that all partner are need to follow
in order to prevent any damage for their partners. Our business is run in the form of partnership.
There are three general partnership are formed who are Teh Wei Chian, Dhushyendran and
Leonard. Each three partners are equally contributes RM30, 000. We all actively involved to the
operation of business and have unlimited liability which need to bear all the debts that owned by
the company. Furthermore, all profits and loss will be equally shared by each of the partners.

3.1 Organization Structure

Current plan is to have our financial and payroll functions done by an in-house bookkeeping. Mr
Dhushyendran will be responsible for financial and business development of I Love Tart.
Possible positions might be added include purchasing manager, controller, human resources and
administrative support team.

CEO & Founder

Mr. Teh Wei Chian

Public Relation
Manager
Mr. Teh Wei Chian

Product
Manager/Supervis
or
Mr.Leonard

Chef/Assistant
Chef
Mr.Sharon &
Ms.Sumitha

Cashier
Ms.Geetha

Figure 3.2: Management team and staff of I Love Tart Company

Marketing
/Operation and
Financial Manager
Mr.Dhushyendran

Baker
Mr.Alvis & Mr.
Daniel

4.0 Strategies that is being planned to develop our business.

Basically, our business is selling tart with selection topping added. There are two main taste
selection of tart for customers which are original egg and cheese favor. After customers select
their taste of tart, our company have four toppings selection to add on the tart for customers.
Those four available toppings are salty, candy, fruits and nuts. From one to three topping will be
charged by RM2. Other than that, our shop also provided drink for customer self-service which
allow customer to choose their drink with package of coffee and earl grey.
Besides that, for the first purchase step of the tart for those walk-in customers, they have to
choose the basic taste of tart which are either original egg or cheese favor and size of tart which
are either normal or mini tart. Next, customers can choose their own favorite toppings that they
want to add on. And finally customers can make their payment for the purchase. Last but not
least, for those customers who intend to ask for the delivery service, they are able to order
through our company website.
4.1 Porters Five Forces
4.1.1 Threat of new entrants
I Love Tart Company is also creating non-traditional barrier to entry the industry. I Love Tart
Company was creating the first-mover advantage in this industry. This is because I Love Tart
Company apply new concept to produce tarts. We have four selection of topping for the tarts,
thats mean we will add on topping above the tarts that consumer choose. This was a new
concept which is no company produce these type of tarts in before. We was also creating internet
domain name for our company in Facebook and Instagram, I Love Tart.
4.1.2 Rivalry among existing firm
There are less competitors exist in our industry. So we will not cut prices to gain the customers
seem it is produce a new concept of tarts. ). I Love Tart Company is apply new concept and idea
of tarts, it is a totally differ product of tarts in the industry by adding on different topping above
the tarts. This will lead to reduce the industry rivalry. Our industry is fast-growth industry seem it
is a food industry. We will not making price-cutting because we are having enough of customer
through the new idea of production of tarts.
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4.1.3 Bargaining power of suppliers

.I Love Tarts Company has advantages seem there is having many suppliers. For example, I Love
Tart Company can make comparison among the suppliers and choose the lower cost of material,
company can always switch the suppliers once they are giving the higher price. This will lead to
the changes of cost of production.
In additional, I Love Tart Company has attractive substitutes and no threat of forward
integration. These are because I Love Tart Company can find attractive substitutes seem it has
many substitutes in the industry by making comparison among all of suppliers. I Love Tart
Company has no threat of forward integration because of the production of tarts is using many
types of materials. Because we are offering the additional four selection of topping, there are
candy, fruits, nuts and salty selection. At the end, the power of suppliers will be declined seem
there are different type of suppliers is needed by the company. The suppliers are not possible to
enter to industry. All of these are proven that the bargaining power of suppliers in I Love Tart
Company is low.
4.1.4 Bargaining power of buyers
I Love Tart Company has no buyer group concentration because our company has a large amount
of buyer. This is because our company apply new concept into the tarts which is having four
selection of topping can be added on. It will be suitable for all people. The buyers costs of I
Love Tart Company are low. This is because of the tarts had four selection of topping can be
chosen, consumer may not be so sensitive to the price.
Besides of these, the degree of standardization of suppliers product is higher. This is because the
tarts of I Love Tart Company produced are differing from competitors through adding topping
above the tarts. Consumer may no bargain to get the products. Last but not least, the threat of
backward integration of I Love Tart Company is low. Consumer cannot enter the industry seem
the tarts are needed four selection of topping to made it and the prices of tarts are not too high.
All of these are shown that the bargaining power of buyers in I Love Tart Company is lower.

4.2 Marketing Mix

4.2.1 Product of I Love Tart
The products we are selling in our company are customized tart which we encourage customer to
design their own favorite tart with variable of choices of topping. Our tart crust are fresh made
every day and we will provide our customer the prepared fresh baked tart crust with one quarter
of filling inside, and the left three quarter of space are leave for customer to fill in their favorite
topping. The tart filling we have provide two different taste which are Original Egg tart and
Cheese tart, and the crusts we also provide in 2 different sizes, which are the Mini size and the
Original size. The size of mini tart are 2.5 inch each, and size of original tart are 4.0 inch each.
Furthermore, our company also had developed four main categories of taste, they are: Salty,
Nuts, Candy, and Fruits. Shown figure 1.0
Salty
Ham
Cheese
Sausage
Chicken Floss
Tuna
Crabstick

Nuts
Cornflakes
Raisin
Almond
Apricot
Coco Crunch

Candy
Mash Mallow
Color Candy
M&M nuts
Chocolate Chips

Fruits
Grapes
Strawberry
Logan
Pineapple
Mango
Kiwi

Figure 1.0
Our customers can choose 1 to 3 topping to mix and match their own design of taste of tart from
our taste selection. For example, they can mix the nuts categories with the fruits categories like
Strawberry mix with Raisin and Almond or mix the Salty categories with Nuts or Candy
categories like Ham with Chocolate chips and the Cornflakes, the taste of the tart are depend on
customers personal favor. Our most recommend taste is Special Oceanaza from salty series
which are different from the traditional taste of tart. This Special Oceanaza idea is come from the
sea food taste which is mix up our Tuna, Crabstick, and Cheese topping together on our fresh
baked Tart crust. Candilicious is another specialize recommended favor. Crispy tart crust mix up
with the chocolate chips, mash mallow and M&M nuts will give you the sweetest dancing
moment when u having it in your oral.
Our fresh customized tart can be keep for 3 days in home refrigerator but we encourage
customers to finish them within 1 day for the better taste. We also provide 3 different sizes of
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boxes which can contain 6 pieces, 12 pieces, and 24 pieces of tart. Our packaging boxes not only
come out with one design, but we will frequently change the design packaging according to the
festival event we meet such as Valentines Day, Merry Christmas, Chinese New Year, and
Mothers Day.

Other than customized tart, our companys caf also provide coffee powder packets and tea bag
for customers who wish to dine in to have their leisure time. Coffee packetswe provide are
Mocha, Latte and Cappuccino while Tea bag we provide are Earl Grey, Lavender and Mix Fruits.
We also serve afternoon tea-time set for customers who bought along voucher purchased from
Ecommerce website. This afternoon tea time set are including 12 pieces of tart, which customers
can select the favor themselves, and 3 cups of their choices of tea.
4.2.2 Price of Tart
Our company set up the price by using the Cost-plus pricing strategies, which is setting the price
by adding a fixed markup on the products to ensure that our costs are being covered and gaining
gross profit (Jim Riley, 2012). The price of tart we suggested is according to the size of tart crust
and amount of topping customers choose.
Mini size tart crust we charge for RM1.20 each while Original size tart crust we charge for
RM2.00. The filling inside the tart crust are free of charge for customer no matter which taste
they choose but the topping of tart our company charge customer according to amount of topping
they pick. 1-3 topping we charge RM2 while 4 topping and above we will collect extra RM1
from customers. So the overall price of Mini Tart is RM3.20 each and Original Tart is RM4
each.
For the price on our additional beverage products, one cup of coffee come with free sugar
packets and cream packets are selling at RM4.00 while one cup of tea is selling at RM3.90 along
with free sugar packets. The afternoon tea time voucher we selling in the Ecommerce website are
3 persons RM 30, and customers will not paid while dine in but already paid when purchasing
the voucher. RM3 of service charge also include into the amount of delivery orders in order to

cover our labor and petrol costs but we are not collecting the delivery fees from delivery orders
customers.

4.2.3 Promotion of I Love Tart

I Love Tart Company is using advertising to promote to our target market, and to make them
aware on our products and encourage them to consume. The promotional tools our company is
using are Social Media such as Facebook and Instagram.
In these modern days, Facebook are the most effective way to get near to public because most of
the peoples visit it every day and use it as one of the channel to share and receive the latest
information from public. Other than Facebook, Instagram is another common tools use by people
now a day. So our company also get ride on this trend and make them as our effective and
efficiency promotion tools to communicate with customer and allow them to feedback with us.
Periodically updates our companys Facebook page and Instagram will make our company
always keep in touch with our customers or potential customers.
Moreover, purchasing online voucher to exchange products and services are one of the latest
trends for citizen. Electronic tools such as Groupon or My Deal from Malaysia Ecommerce
Company are very good examples of lifestyle today. Our company also will use this trend to
expand our public awareness by corporate with these Ecommerce Company. Our company have
specially customized an afternoon Tea-time set voucher for customers to purchase online.
Other promotions we have are dined in promotion, delivery promotion and promotion which
specialize for Full Moon of new born baby and traditional festival celebration. Every first day of
the month, dine in customers will get 10% for any purchase on tart but beverage are not
including in it. In addition, with purchased of one box (6 pieces) of tart, our caf will free
customers handmade cookie along in it.

For delivery promotion, we will give away free delivery for customers who purchased minimum
30 pieces or above in their delivery orders. Customers who order Full Moon set are giving away
special full moon design of boxes and free delivery to one location. For customers who order
within traditional festival like Chinese New Year, Hari Raya, and Deepavali will get 5 sheets one
packs free enveloped with festival design.

4.2.4 Place (Distribution)

About places to sell our products, we had chosen to sell directly to our customers by operating
our business in a store outlet. We believe that in order to have good sales and public awareness
from customers, a good distribution for selling products is playing a very important role. Our
desire place for establish our business is 1st Avenue Mall Penang. This is because as a shopping
complex, 1st avenue mall are located in a beneficial area which will make us easily approach to
our target markets spending behaviour and lifestyle.
Other than outlet, we also provide hotline for customers call in to make order and we will
delivery to customers if they are in our assign destination. We do delivery to most of the
destination in Penang Island, except Batu Ferringi, Balik Pulau, Teluk Bahang, and Gertak
Sanggul.

5.0 Challenges
5.1.1 Packaging and the Delivery
One of the challenges that we had faced was the packaging and delivery part. It is so because we
had just used a normal square box to pack the tarts without using any other form of packaging.
Besides that, we used motorbike with carrier to deliver orders for costing purpose to save petrol.

The box packaging has led to broken pieces. In addition to that, there were few customers who
complain towards the poor packaging and delivery.
5.1.2 Capital Management
Capital management was also one of the main challenges that we had faced. This is so because as
any other businesses we need to pay the rent fee for the outlet that we are doing business.
Besides the rent fee, we also need to make payments such as salary for workers, water bills,
electricity bills and also to purchase things that are needed to make tarts. It was difficult to
manage the capital during early stages.
5.1.3 Intensity of Competitors
Like any other businesses we do have some competitors as the challenger that we had to
overcome. Our main competitors are bakery outlets in Penang, Malaysia. Our main competitors
are such as Summer Dessert Bakery, Bread R Us, Jasmine Bakery and few other bakeries. These
bakeries are our competitors because they are also makes tarts.
5.1.4 Miscommunication
One of the toughest challenges we had faced was the miscommunication between partners. These
are one of the common challenges that are being faced by any partnership businesses. We had
some miscommunication among us because we had different opinions and views to develop our
business. At first our suggestions didnt not tally up because of different mindset. These has also
created some arguments and causing some quarrels. One of the example of miscommunication
that we had faced is that on the amount of people that is needed to be hired to assist for the work
flow.

5.1.5 To maintain a standard recipe.

Besides all the challenges we had a great challenge to maintain a standard recipe. It is so because
we had received a few complain from the customers saying that the taste of the tart is not the
same. These had lead to lose the customers at first. The pastry chef that is being hired was not
following a standard recipe. It is important for any food industry to have a standard recipe in
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order to have the same taste. Customers will have negative feedback and will never come back to
the restaurant if the taste is not standard.

6.0 Recommendations
Firstly, the issue of the packaging must be solved by using aluminum foil to wrap before it is
being kept inside the box. This will be easier to deliver the product by motorbike. It so because
the aluminum foil can hold the tarts properly and avoid the broken pieces. The issue of capital
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management can be managed by saving the usage of some unwanted extra bills such as water
bills, electricity bills and few other. Miscommunication can be avoided if partners make a
discussion before taking a decision. It will lead to a smoother business. Finally, partners must
come up with a standard recipe as what other business are having. It is so because having a
standard recipe can be maintain the taste without any problems. A proper standard recipe should
be followed by the chefs in order to have the same taste.

Appendix
Company logo

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Store layout

13

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