1.

0 Executive Summary

1.1 Concept

2 in 1 Steamboat restaurant is a planned private company which involved in the food and
beverage industry. Our idea of opening a steamboat restaurant are sources from the market
demand based on the consumer tastes and preferences in the food marketplace. Our steamboat
restaurant is different from other as we introduced our own unique concept by blending
steamboat and karaoke rooms together. The name of 2 in 1 Steamboat Restaurant is derived
from this unique concept. This gives consumers a very unique experience as consumers will fully
content with both the food and karaoke.

1.2 Location

Our steamboat restaurant are located at PV 126, Setapak. Our target market is mostly
towards university students from nearby educational institution such as TARUC and also focus
on the workers and senior citizens who live around Setapak area.

1.3 Soup base

Our soup bases are specially formulated according to consumer’s tastes and preferences.
Our soup bases comes from various countries such as Korea, Japan and China. We are also planned
to apply a HALAL certification from government for our restaurant, which will further expand
and open the food and beverage market towards the Muslim. We also provide vegetarian soup
specific for those vegetarian, it will further increase customer statistics.

1.4 Feature

The feature of our steamboats is our variety uniqueness soup base, the introduction of
various countries’ exotic soup bases, and the provision of a special Karaoke room service available
for those who wish to have a private dining experience. Our staff also provided attentive customer
service to our customer, this is the core competencies to give our business a competitive advantage
over others. We have a strong Research & Design (R&D) team and well-trained staff team, along
with our large premise, will strategically support our core competencies.
1.5 Supplier

We will stable trading with Hsh Frozen Foods Sdn. Bhd and Soon Fatt Foods S/B which
are provide the local food ingredient and also ensure the quality of food are fresh and good
obtain the quality supplies punctually and sustain continuous supply sources from our preferred
suppliers. All of the supplier will offer us cheaper price compare to the market as we purchase in
bulk.

1.6 Advertising and Promotions

In order to attract the customer, we plans to offer a 3 months promotion for them. We will
create an official website and a Facebook page to promote our hotpot cuisine and update our latest
information. This will enables us to collect customer feedback and help customer to know use
through the social media.

2.0 Company Description

2.1 History of company organization

“2 in 1 Steamboat” was founded by our General Manager, Tan Yin Yiing. She is one of
the employees of a steamboat restaurant many years ago. She had more than 5 years working
experience and she was so proficient in the steamboat industry. She is a steamboat lover and has
the passion in singing. However, she has encountered the problem of not able to fulfill her desire
to enjoy steamboat and singing at the same time. So, she has decided to bring up with her own idea
of opening a steamboat restaurant by blending steamboat and karaoke rooms together. As the
founder herself and her friends are steamboat lover and have the passion in singing, 2 in 1
Steamboat Restaurant had been formed and had registered as a private limited company. Our
restaurant is located at PV126 Setapak, KL. As a conclusion to the description of our business, we
are a team of six and everyone is accountable to our business operations.
2.2 Vision and Mission

Vision

To be the unique steamboat restaurant that provide steamboat and karaoke room service together.
Mission

1) To provide the various type of soup base.

2) To use quality and Halal ingredient in our soup base.
3) To satisfy each of the age group taste and preference.

3.0 Business Idea and Opportunity Analysis on the Venture

3.1 Creation of Idea/Opportunity, Product.

The idea of opening a steamboat restaurant extract from the market demand based on the
consumer tastes and preferences in the food marketplace. Our target market is mostly towards
university students from nearby educational institution, workers and senior citizens who live
around Setapak area. Our steamboat restaurant is different from other steamboat restaurant as we
introduced our own unique concept by blending steamboat and karaoke rooms together. The
name of 2 in 1 Steamboat Restaurant is derived from this unique concept. This gives consumers a
very unique experience as consumers will fully content with both the food and karaoke. Also, our
soup bases are specially formulated according to consumers tastes and preferences. Our soup bases
comes from various countries.

In our restaurant, we provide 10 types of soup base selections for our customers such as
Original 2 in 1 Soup, SiChuan Ma-La, Korean Kimchi Soup, Thai Tomyam Soup, Japanese
Curry Soup, Vegetarian Soup, Milky Seafood Soup and Seaweed Soup. Besides, we mainly
introduce a square pot with a divider which can put four different soup bases. Customers can
opt for any four types of soup base they like that stated in our menu. What makes our restaurant
special and different from others is we have coconut broth. It is one of our highlights soup base
in our restaurant. Our coconut are farm fresh organic coconuts which could help the people to
dispel heatiness, so this make Malaysians prefer to have coconut to cool off from the hot weather.
 Besides, the Mongolian Herbs soup is also our restaurant signature soup base. It is famous
with its fully natural herbs and spices which are originated imported from Mongolia and one of it
is the well known Chinese Herbs ‘Ginseng’ is included in this broth. While for karaoke rooms,
the idea of this was conceived by communities with a passion for singing especially youths as
majority of people around Setapak area are students, students can gather with friends to enjoy their
moments. Besides, our restaurant can be a perfect place to held gathering or birthday party because
our karaoke rooms are different with others because we serve steamboat in the private rooms.
Steamboat are serves in fully equipped karaoke rooms at the same time. This is one of our
attractive idea to attract customers to dine in our restaurant.

In order to make this business a successful one, we do take use of the opportunities which
is a favorable set of situations that creates need for a service, product or business. To recognize a
good opportunity, the opportunities must have the following essential qualities such as below:

3.1.1 Attractive

Steamboat is an attractive opportunity as steamboat business has a real high demand in

the current market and has the opportunity to achieve higher profit. Survey had been carried
out and it shows that many people likes to eat steamboat. This can be seen through the survey
summary. From what I have gathered, the results shows that steamboat is listed on the top list of
Malaysia food marketplace that preferred by Malaysians. (Appendix 2)

3.1.2 Timely

At the same time, steamboat business is also timely because society nowadays are looking
more to healthier food so they prefer to eat steamboat as steamboat is considered as a light meal
to consume. This is because steamboat is more emphasize on non-fried ingredients except for
fu chuk (beancurd). Steamboat mainly serves fresh vegetables and does not have meat unless
you add-on. The steamboat ingredients are mainly cook in a boiled soup. This fulfill the society
requirements to go for healthier food.

3.1.3 Durable

Steamboat business is a durable opportunity which means that this business have the
chance to grow and last long. To compete with other competitors, we will rehash our old menu
to stay current and fresh to attract customers, by adding something new to the menu will add the
curiosity of the customers and propels them to try out the new items. Also, we will renovate our
restaurant as the first impression of restaurant will make customers to walk into our restaurant.
This will offer an opportunity to attract a fresh wave of customers. From here, our business profits
will maintain or increase and it will make our restaurant more sustainable. Besides, our business
profit will also increase.

3.1.4 Value Added to Customers

Due to majority of steamboat main ingredients basically serves with small portion of
vegetables, to satisfy our customers taste bud, our restaurant will fulfill our customers’ needs by
adding value added to our customers by offering refillable drinks. In order for our customers to
save charges, so our restaurant does not incur any service charges.

3.2 Industry Analysis (Porter’s Five Forces Analysis)

Industry analysis also known as Porter’s Five Forces Analysis which developed by Michael
Porter. Its purpose is to determine the attractiveness of an industry (Porter, 2005). It consists of
five competitive forces which as the below.

3.2.1. Rivalry Among Existing Competitors

Rivalry among the existing competitors means to assess the relative competitive strength
of rival firms (Porter, 2005). The criteria such as:

3.2.1.1. Industry Growth Rate

Industry growth rate refers to the overall growth rate of the industry. In Malaysia, F&B
industry still in the growth phase as annual growth rate is 5.1%. Therefore, competitors will
increase gradually which will decrease our restaurant's profits. Thus, the intensity of competition
is high.

As popularity of steamboat and karaoke increase in this few years, but there is no restaurant
provides combination of steamboat and karaoke do at the same time together. Thus, we grab this
opportunity and introduce a creative idea in our restaurant which allow customers blend
steamboat in a karaoke room.

3.2.1.2. Many Competitors

There are big or small competitors with a string brand image and financial position in
F&B industry such as Hometown and Two pesos (Porter, 2005). Therefore, our profit might
decline due to high intensity of competition in this industry.

In order to compete with other competitors, we listed out our restaurant’s feature and
printed into flyer. Then, we dispatch those flyer around PV128 area to attract more customers.

For overall assessment, the risk in rivalry among the existing competitors are high.

3.2.2 Threat of New Entrants

Threat of new entrants use to assess the ability of new entrants to start operations and the
structural barriers they must overcome (Porter, 2005). The criteria such as:

3.2.2.1 Brand Loyalty

Brand loyalty refers to faithfulness of consumers to a particular brand. As a new

restaurant, we had zero brand loyalty in food and beverage industry. Therefore, threat of new
entrants to our restaurant is high.

We created a page about our restaurant in Facebook to increase brand loyalty from
customer. It is a free-of-charge platform for us to promote our product to audience.

3.2.2.2 Capital Requirements

Capital requirements refer to capital investment required for a company to setup. New
restaurant can enter into foods and beverages industry with minimum capital. This will result a
low barrier for the new company to enter in this particular industry and it will affect our
restaurant's profitability. Thus, the treats of new entrants is high.

For the overall assessment, the risk in threat of new entrants are high.
3.2.3 Bargaining Power of Suppliers

Bargaining power of suppliers use to assess the relative strength and number of sellers
(Porter, 2005).The criteria such as:

3.2.3.1 Differentiation of Inputs

Differentiation of Inputs refers to the valued, unique and tangible product differences that
exist in the supplier's products which can restrict our ability to buy around.For instance, we rely
on organic coconutto helps us to generate incomebut there is only one supplier who supply
organic coconut in KL. Thus, the bargaining power of suppliers is high.

To ensure our supplier provides good quality of coconut to us, we must maintain a good
relationship with the coconut supplier by making payment on time.

3.2.3.2 Switching Costs

Switching costs refers to any cost incurred by a company when switch to another supplier.
We can simply switch to another supplier due to low switching cost. Therefore, it allows our
restaurant switch to another supplier if current supplier provides low quality ingredients to us.
Thus, the bargaining power of supplier is low.

3.2.3.3 Number of suppliers

The market in food and beverage industry was saturated with those suppliers who provide
the same products causes an individual supplier's bargaining power diminishes. Therefore, we can
choose the best supplier in term of price and quality. Thus, the bargaining power of supplier is
low.

For overall assessment, the risk in bargaining power of suppliers is low.

3.2.4 Bargaining Power of Customers

The bargaining power of customers use to assess the relative strength and number of
customers (Porter, 2005). The criteria such as:
3.2.4.1 Differentiation of Outputs

Differentiation of outputs refer to ability to differentiate the products or service from those
competitors. In F&B industry, the products are slightly differentiated causes customer will pick
any restaurant in the area. So, our restaurant’s profit will be affected. Thus, the bargaining power
of customers is high.

We are the only restaurant provides coconut broth soup which made with by fresh organic
coconut in Setapak area. Therefore, it may reduce the bargaining power of customer.

3.2.4.2 Switching Cost

Switching cost refer to the cost that a buyer would incur if they ceased buying from a
company and started buying from competitor's product. In F&B industry, there are low switching
cost causes customer may switch to other restaurants. For instance, if there is a long queue in front
of our restaurant, customers may feed up with waiting and leave the restaurant for a competitor.
Therefore, our restaurant's profit will decrease. Thus, the bargaining power of customers are high.

For overall assessment, the risk in bargaining power of customers are high.

3.2.5 Threat of Substitutes

Threat of substitutes use to assess the ability of new products with superior characteristics
to replace existing products and services (Porter, 2005). The criteria such as:

3.2.5.1 Relative Price Performance of Substitutes

Relative price performance of substitutes refers to the cost effectiveness of the substitute
products. Lower price of substitutes will causes higher threat of substitutes. For instance,
supermarkets sell steamboat ingredients which regarded as substitute at a lower price. As a
result, customer who wants to save money may turn to supermarkets to buy the ingredients and
cook steamboat on their own at the comfort of their homes instead of eating in our restaurant. Thus,
the threat of substitute is high.

3.2.5.2. Number of Substitutes

 Number of substitutes refer to availability of a product that the consumer can purchase
instead of the industry's product. There are other substitutes which are the indirect competitors
such as fast food restaurants, noodles restaurant and etc. Therefore, customer has a lot of option to
choose. Therefore, our sales will be affected. Thus, the threat of substitutes is strong.

For overall assessment, the threat of substitutes are high.

4.0 Business Model of the Venture

4.1 Market Analysis (PESTEL Analysis)

Market analysis is a qualitative and quantitative assessment of the market (Duff, 2018).
Besides, PESTEL analysis is a tool that used to evaluate the key driver of change in the business
environment.

4.1.1 Political

Political factor refer to the effect of the action that taken by the government on the macro-
environment of business (Greenspan, 2017). This would include political policy as well as taxation
policies.

The tax policy such as Goods and Services Tax (GST) need to be considered because it
will affect the sales of our business. GST is calculated by adding up the 6% of the cost of purchase
of the buyers which will reduce the demand of the customer since product prices are already pricey
as it is. Then, it means that it will also increase the financial burden of our customer. So, in order
to decrease the financial burden of the customer, we have excluded the services charges for the
customer.

4.1.2 Economic

Economic factor is determinants of a certain economy’s performance.

According to the research (Murugiah, 2017), the inflation rate in 2018 is 2.7% and 2017 is
3.8%. The decrease in the inflation rate in 2018 is due to the stability price of fuel and appreciation
of ringgit Malaysia. As a result, the import price will be lower. Due to the lower of inflation rate,
it is a right time to start our steamboat restaurant because the cost of raw material is lower which
will increase the profitability of our business. Furthermore, the purchasing power of the
consumer will also increase so it will increase the market demand.

4.1.3 Social

Social factor takes into the consideration of all events which will impact the market (Dcosta,
2017). These events include religion and belief.

Malaysia is a multiracial country with a population of 28 million of which approximately

60% is Muslims and 40% is Buddhist, Christian and Hindu (AKHIR, 2018). Therefore, before
starting the steamboat restaurant, it is important to get a HALAL certification for our restaurant
because it will give opportunity to other races of ethnics to visit our restaurant. With HALAL
certificate, this will increase our restaurant image in Muslims society. As a result, the sales of
our restaurant will be increase.

Besides, vegans are one of our target customers as it generated small percentage of sales
for our business. To cater their needs, our steamboat restaurant has provide vegetarian set meals.

4.1.4 Technological

Technology is an essential element for the organization since it is a useful tool for the
attainment of market (Kevin-F, 2010).

An advance Technology environment is important for our steamboat restaurant because it

allows us to reach more customers. For example, our steamboat restaurant has introduced the
new ways of communicating with targeted market by having an official website and Facebook
page. It brings convenient for customers to make bookings and able to get more information about
our steamboat restaurant.

4.1.5 Environmental

The environmental factor takes into the consideration of environmental and ecological
aspects (Dcosta, 2017).

Our restaurant provides reusable chopsticks and spoon sets rather than disposable one
as this widespread use of disposable chopsticks and spoons has proved detrimental for the
environment. Besides, some of our steamboat ingredients are mainly focus on local instead of
import from other countries. This not only can reduce the transportation costs, it is also
environmental friendly as it can reduce the pollutions to be occurred.

4.1.6 Legal

Legal factor refers to how the law will affect the method of business operations (Bush,
2016).

Before our steamboat restaurant can start operating in Malaysia legally, our steamboat
restaurant is required to comply with some form of licensing such as business license and
signboard license. This is because if our restaurant operates without the license, it will affect the
operation and sales of our business.

Business license and signboard license is important because it helps us to avoid unwanted
disturbance and frustration on authority issues. So, to get both of the license successfully, our
restaurant is required to follow the guidelines of license.

4.2 Customer’s needs and want

4.2.1 Feature service

Even just a slight adjustment of a product or service could make it more useful to buyers.
In order to attract customers in the market, our restaurant is different from other steamboat
restaurants in the existing market now. Our restaurant enable customers to enjoy steamboat
together with karaoke service is our restaurant feature and our objective is to let customers enjoy
singing without being bothered by others and enjoy the much needed privacy that one would
like. Karaoke had become one of the popular entertainment among youngers nowadays, with this
karaoke service, consumers able to spend their leisure time with their friends and family or
even singing and dining alone without bothered by others.

4.2.2 Convenience

Convenience is considered as the most important element for customers nowadays.

According to marketing expert Beth Harte said, “It doesn’t matter how or where you want to
distribute your products and services. It only matters where people want to buy them”. The reason
we choosing our restaurant location is to ensure that customers have convenient access to our
restaurant. Our steamboat restaurant will be located at PV 126 Setapak. For workers and students,
they able to visit our restaurant easily by car or public transport, which this could attract more
customers and fulfill their needs and preferences in respect of convenience.

4.2.3 Affordable Price

Price is a major consideration for many segments of consumers when making a purchase
on the product and services. According to market research, price can determine the choice of the
customer and act as one of most important element as a consideration of customer. Our steamboat
price will set at affordable which can fit into our targeted customer’s budget which is college
students, senior citizens and even workers. (Balle, 2018) In order to provide our service to more
customers, we charge a reasonable fair price to increase customers satisfaction and obtain
customers loyalty. This will encourage repeat visits. The price of our foods and drinks that we
provided are charged in fairer and more cost-effective compared to other competitors in the
existing market to ensure our customers have a quality dining experience at affordable price. This
is the most effective way to satisfy our customers as this will let them to feel worthiness for the
price and gain the maximum value of the money they paid.

4.3 Competitor Analysis

Every entrepreneurs have to do some competitor analysis before start a business. The
analysis will help you to know and compare your competitor’s strength and weakness, so you can
establish unique products or services which is different from your competitors. The 3 competitors
for our steamboat business is as follow:

Categories Ho Ho Steamboat Two Pesos Hometown 2 in 1 Steamboat

Restaurant Steamboat Restaurant
Restaurant.
Location Danau Kota Danau Kota Genting Klang PV16
residential area residential area
Pricing  RM20.00 per  RM16.50 -  Classic fish  Price is fixed
pax RM26.90 per ball set (2 according set
set pax) - chosen, set
 vegetarian pot RM46.20 ranging from
-RM12.90  one piggy RM35 (1-2
set (3-4 pax) to RM65
pax) - (3-4pax)
RM54.90  vegetarian pot
- RM15.
Product  Limit to 2  served with a  Signature  10 types soup
variety types of soup mini hotpot Tom Yam base:
base: which contain Soup, - Mongolian
- clear soup different Clear herbs soup
- Tom Yam ingredients Soup, - Coconut
soup. based on the Porridge in broth
 contains 16 set menu you Claypot - Milky
ingredients per choose  contains 16 seafood
set ingredients soup
per set  can choose 4
types of soup
in a square pot
with a divider
 contains 17
ingredients
per set
Advertising  By official  By official  By  By official
website and website and Facebook website and
Facebook Facebook page Facebook
page page page
 Potential  Families  Families  Families  Workers
 Vegetarian
customers  Any ages but  Any ages  Senior
diners
restricted for  Not suitable but citizens
vegans and for Muslims restricted  University
Muslims for vegans students
and  Vegans and
Muslims Muslims.
Service  No wi-fi  With wi-fi  No wi-fi  With wi-fi
provided  With credit  With credit  With credit  With credit
card services card services card card services
services  karaoke
service
 Event
reservation
Business 3.30pm - 12.00am  12pm - 3pm 5pm - 12am 12.00pm -
hour  6pm - 11pm 11.00pm
Branches 6 branches 5 branches 10 branches None.

4.3.1 Location

Location are important because with a suitable location, it will gain the loyalty of different
categories of customers such as workers, senior citizens and university students. The other 3
competitors are mainly focus on families. Our restaurant located at PV126, Setapak where there
have a lot of students live there and there is high ‘food traffic’ around Setapak area.

4.3.2 Pricing

By playing with the prices, the steamboat business will win a customer’s heart or lose out.
A business can maximize their profit by buying the ingredients in a bulk to get cheaper purchase
price. An affordable price will also attract most of the customers in our target market. Our
restaurant has the cheapest price and it does not include any service charge compared to other three
competitors.

4.3.3 Product variety

To gain satisfaction of potential customer, we must always change the menu and ensure
the products and service provided in good quality. Our restaurant have provide various types of
soup base compare to other competitors which will create perfect sense of taste of the customer’s
dining experience.

4.3.4 Advertising

We have to learn other three competitors advertising and promotion strategies such as
create an official website. Through advertising, customer can know the latest information of our
restaurant. Besides, it can also help us to improve customer loyalty.

4.3.5 Potential Customer

The two competitors are restricted for Muslims and vegetarians. 2 in 1 steamboat restaurant
will get a HALAL certificate for their restaurant, so it can serve the Muslims customer. It is also
suitable for vegetarian. Then, it enable to maximise their profit.

4.3.6 Service Provided

Steamboat restaurant are monopoly competitors, so we have to sell variety of products and
services which is different from our competitors. Ho Ho Steamboat Restaurant and Hometown
Steamboat Restaurant only provide credit card services, but Two Pesos has provided extra wi-fi
service to their customers. Our steamboat restaurant provided karaoke service and reservation
service for our customers. The concept of combining karaoke with steamboat can provide
customers for birthday party and family gathering.

4.3.7 Business Hours

 Our restaurant has the longest business hours among all the competitors. The longer the
operating hours, the demand of customer will increase as well during lunch, dinner and supper
time.

4.3.8 Branches

Hometown Steamboat Restaurant is most successful compared to other three restaurants

because it has several branches to overcome financing problem. They able to make more profit to
cover the loss of other branches.

4.4 Market Segmentation

Market segmentation is a process which dividing the market of potential customers into
different groups on the basis of certain characteristics (Dutta, 2018). It can be divided into various
variables such as:

4.4.1 Geographical

Geographical segmentation refers to the process of splitting up a sales of the business in

the market of a business based on the geographical area. Those includes location.

According to the research (Department of Statistics, 2010), the population in Setapak is

700,000. Therefore, we would like to choose a place in Setapak to operate the steamboat restaurant
which is PV 126.

4.4.2 Demographic

Demographic segmentation is the process of dividing the total people in the market based
on the customer demographics. It divides into certain variables such as religion and ages.

The steamboat business will be targeted on the Muslim and vegetarian diners which aged
18 – 60 years old. This is because most of the population in Malaysia are Muslim. Besides, there
are a percentage of people in Malaysia is vegetarian diners.
4.4.3 Psychological

Psychological segmentation is defined as a market segment by using lifestyle of people,

their activities, interest as well as opinions (Bhasin, 2018). The psychological aspects included
lifestyle and social class.

It is a good business opportunity for us to start a steamboat restaurant as the people

nowadays would like to prefer a healthy lifestyle. According to The Star article (Thavarajah, 2016),
there are 9.7 million of Malaysian have health problems.

Besides, the social class must also be considered because it help us to determine which
class of people is our targeted customer. Students, workers and senior citizens are our targeted
customer as our foods are quite affordable based on the pricing.

4.4.4 Behavioural

Behavioural segmentation is the approach which segments the buyers into groups based on
their use of the product and the benefits they expect to receive (ACCA's examining team, 2016).

The behavioural approach is important to our steamboat restaurant because it can help us
to determine the needs and wants of the customer based on their behaviour. It is significant to use
the behavioural segmentation based on usage rates because it can help the company to determine
how frequent the consumer will acquire the company product. It ranks users under heavy users,
light users and non-users (Lindsayt, 2014).

4.5 Target Market

Target market refer to the specific group of customer for which a business positions its
products and services (Lilyquist, 2016).

4.5.1 Target Market Based on Geographical

4.5.1.1 Location

Location refer to the particular place. We operate our steamboat restaurant at PV 126,
Setapak because it is a place which surrounded with many shopping mall such as Setapak Central
and Aeon. It means there would have high population of people which included students,
employees and senior citizens.

Furthermore, tertiary education institution such as TARUC is also situated at a place near
to PV 126. Therefore, the amount of students at Setapak could possibly create a high demand of
our steamboat business. We could also make an assumption if 1% of the students could visit our
restaurant, it could generate a large portion of sales to our business.

Moreover, there are many food stalls and restaurant located at Setapak. It means there is a
high flow food traffic in that area which could also enhance our sales in future.

4.5.2 Target Market Based on Demographic

4.5.2.1 Age

Age refers to the length of time that a people have lived. The target customer for our
steamboat restaurant is aged 18-65 years.

Moreover, it is suitable for aged 18-65 years to visit our restaurant because there are various
type of soup base and karaoke room has been provided by our restaurant. The soup base will cater
to those people typical eating style because there are many types of soup can be chosen. Each of
the age group can according to their preferences to choose which type of soup that they want.

4.5.2.2 Religion

Religion is the set of beliefs that define the relations between human being and sacred.

Muslims and vegetarian is our restaurant targeted customer because most of the population
in Malaysia are Muslims and there are also a percentage of Malaysian is vegetarian diners.

According to the research (Jolene, 2017), there are 1,185 vegetarian- friendly restaurants
opened in Malaysia. It means vegetarianism has been gaining in popularity in Malaysia society.
So, the niche market in Malaysia could not be ignored as there are small percentage of vegetarian
in Malaysia.

In order to increase the Muslim and vegetarian customer, our restaurant are working on to
get the HALAL certification and provide other set of meals which is vegetarian in the restaurant.
If the HALAL certification and vegetarian set meals are successfully apply in our restaurant, it
could stimulate high demand of sales to our restaurant.

4.5.3 Target Market Based on Psychological

4.5.3.1 Lifestyle

Lifestyle refers to the typical way of life of an individual. Nowadays, there are most of the
people in Malaysia are look for healthy lifestyle. So, it means it is a good time for us to start a
steamboat restaurant.

The people could have a choice to eat steamboat because steamboat considered as a healthy
food. Steamboat usually emphasizes on non-fried ingredient. The foods are cooked with soup and
not being fried or seared.

4.5.3.2 Social Class

Social class refers to a group of people within a society who possess the same
socioeconomic status.

Students are our targeted customers as the foods are quite affordable based on pricing.
Students will get the discount from our restaurant. Even though the price is discounted, we still
could generate our sales from high demand of TARC students.

Besides, workers could be potential customers to our business as they are middle class
customers which could provide sales to our business. Therefore, it could not be ignored as they
have income to pay for their foods.

Furthermore, senior citizens are also our targeted customers. It is because our foods are
provided in a way of healthy lifestyle and the pricing is affordable. So, if we could promote our
foods to the senior citizens which also considered as lower class earners, it could still be part of a
profitable sales to our business.

4.5.4 Target Market Based on Behavioural

4.5.4.1 Usage Rate

Usage rate segmentation divides consumers according to how much they use a product.
People who could make a spending spree for foods every day are classified as a heavy users.
However, the light users and non-users are also focused as they could part of the sales to our
steamboat restaurant. Thus, we excluded the service charges to every customers visit to our
steamboat restaurant. As we aggregate all the light users and non-users spend on a single bill, the
sales of our steamboat restaurant are quite foreseeable in future. Therefore, we include refillable
drinks in our menu which could attract the light-users and non-users. So, people who do not like
to spend a lot for foods, our restaurant would be suitable for them.

4.6 Positioning

Positioning of market defines where your products or services stands in relation to other
competitors that providing similar products and services in the marketplace as well as the image
or identity of the brand or product in the mind of the consumer. (Havaldar, 2014)

Positioning of our restaurant is eating steamboat in karaoke rooms with a reasonable

price. Our restaurant slogan is “Eat, Sing, and be Entertained!” means consumer can sing while
enjoying their steamboat at the same time. Since our restaurant is located at PV 126, Setapak
which is a place with high population of people that have an average age of 18-65 years and all
kind of religion, our steamboat restaurant are going to focus on a wide range of customer. So our
steamboat set is designed to suit various kind of customer. Thus, our restaurant is aiming to get
the HALAL certification so that Muslim customer can enjoy our steamboat. Currently a lot of
people are going for healthy lifestyle, our restaurant also introduce a steamboat set that suit
vegetarian to consume.

Our restaurant is going to make promotion to draw the attention of the people around
here. For example, we are going to advertise our restaurant by putting banners around our
restaurant like in front of the PV condominiums, TARUC, and Setapak Central. By putting
banners, people around here will know what we are going to advertise. Newspapers like “The
Star”, “Sin Chew” and “Berita Harian” are also one of our advertising method to raise
awareness.
 Moreover for sales promotion, we are giving student a 10% of discount when they dine
in on weekdays (Monday-Friday) by showing their student ID. Besides, senior citizens who are
60years above will also be given 10% discount on selected days. Short term promotion week will
be held on certain month by selling the steamboat set at a lower price like Set B for RM60
instead of RM65. VIP members will get a 10% off when they dine in and spend more than
RM50.

Lastly, we have create an official webpage in the Facebook. The reason is people
nowadays like students like to surf internet. So by using social media to advertise the cost is
much lower and will raise more attention.

4.7 Product Attribute Mapping

High

2 in 1
Steamboat
Restaurant

Two Pesos
Types of soup bases

Hometown
Steamboat

Ho Ho
Steamboat
Restaurant
Low
Low Tailored to the specific needs of the clientele High
 Our restaurant stated at the highest position in the graph because it provides many special
features for all the customers and it is suitable for Muslims and vegetarian dinner compare to other
competitors. It provides various types of soup compare to others. In addition, it also provides some
special services which the unique concept by blending steamboat and karaoke rooms together.
Moreover, this restaurant also provides other services which is event reservation. Nowadays
people are looking for healthier food, so this restaurant also focus on how to provide the healthier
food. Next, the restaurant’s menu was totally different from other steamboat restaurants because
it will rehash the old menu to stay current and fresh to attract customers and adding something
new that other competitors does not have it. The restaurant will also fulfil the customer satisfaction
by provide various types of refillable drink.

5.0 Marketing Plan

5.1 Marketing Mix

5.1.1 Product

A product is a physical object or service that a business owner going to sale to the market
that targeted by them to satisfy the need after purchases and use or consumption. When it comes
to developing a product, some aspects should be considered like design, quality, packaging,
features, after-sales service, and customer service.

5.1.1.1 Unique Selling Points (USP)

Product that offer by our company is blending steamboat and karaoke rooms together. This
is one of the USP because almost none of the competitor are providing such combination of service.

Besides, our steamboat is serve with a square pot with a divider which can put four
different soup bases. So, our customer can choose any four kind of soup base they like from our
menu. This make our product different from others because the current steamboat industries only
allow customers opt one to two type of soup base for each pot. Besides, we have also provided
karaoke rooms.

5.1.1.2 Product Benefit

Our restaurant also provide various type of soup base to serve our customers. Coconut
Broth and Mongolian Herbs Soup are the signature soup bases for our restaurant. For instance, we
use farm fresh organic coconuts for coconut broth and Mongolian Herbs Soup we use fully natural
herbs and spices which import form Mongolia.

5.1.2 Price

Price is the amount that consumer is expected to pay for using the product. Price of a
product will impact greatly on how the product sells in the market. Normally, there is a perceived
value of any product to a customer.

5.1.2.1 Discount Pricing Strategy

Our restaurant will use discount pricing strategy to introduce our steamboat into the current
market. For example, our company will offer 10% discount to everyone who dine in our restaurant
for the first three month. So, our steamboat set price will be lower than other competitors. By using
this tactic, we can attract more new customer and promote our restaurant. Thus, our restaurant will
become well known.

5.1.2.2 Value-based Pricing

Three month later, our restaurant will use value-based pricing strategic to determine the
price for our menu. So, our company will estimate what is the amount that customer willing to pay
for our steamboat.

5.1.3 Place

Place is refer to how a product is distribute by the firm from the original place to the end
consumer. There are two type of distribution which are selling direct and selling through
intermediaries. (Zimuto, 2012).

5.1.3.1 Direct selling

 Our restaurant are selling steamboat and services directly to the customer which mean we
going to use brick-and-mortar distribution strategy which refers to physically existing stores or
outlets. So, customers can directly dine-in our restaurant that located in PV 126.

5.1.4 Promotion

Promotion is an activities (marketing techniques and strategies) that a firm use to

communicate their product to the consumer (target market). Promotion includes functions and
activities that provide extra value to ultimate customers and this able to induce immediate sales.

5.1.4.1 Advertisement

We are going to put banner to promote about grand new opening of our restaurant around
Setapak area and also advertise on “The Star” newspaper to raise awareness of people living
around here.

5.1.4.2 Social Media

We are going to create an official webpage and Facebook page to promote our company.
For example, customer will be given a 5% discount when they like and share our Facebook page.
Thus, this will attract more customer to dine in our restaurant.

5.1.4.3 Sales Promotion

Sales promotions is promotion designed to create a short term increase in sales. Our
restaurant will make short term promotion in specific month by selling our steamboat Set B for
RM60 instead of RM65.

Also, whenever customer spend above RM65 in a single receipt, we will give them coupon
cost RM5 discount for their next purchases. Through those promotion, our company has created
incentives to boost sales while offering added value to the customers.

5.2 Marketing Strategy

 A number of marketing strategies will be used on our business to easily target students,
workers and senior citizens within targeted market. These strategies include traditional print
advertisements and discounts offered as a part of our restaurant grand opening campaign. We
also provide uniforms to workers as creating corporate image to the restaurant to make a good
impression on customers. The following are list of strategies of how we intend to use to achieve
our business aims in order to make our business a successful one.

5.2.1 Location

Our restaurant will be operated at PV126, Setapak. It is a good location for starting a
business as there are nearby residential areas, educational institutions and workplace.
we’re located in a popular part of town with heavy food-traffic. It makes us accessible for
customers. We will place digital signboards in smoothing customers path to our restaurant.
Also, digital menu boards will be replaced from printed menu and display outside our
restaurant entrance as people often will stop to view menu first before selecting a place to eat.
This will help to engage customers into our restaurant. Besides, our restaurant location also will
consider that there are enough parking to accommodate customers in our restaurant. We will
have our own parking lots so that customers don’t have to worry there is no place to park.

5.2.2 Make Customers Feel Valued

Customers want to feel that we care about their happiness and concerns. We will find out
what they want and approach them in the way they find most comfortable. In our restaurant, we
will provide training for workers especially improving their communication skills, we will
communicate with our customers well and politely and keep them updated whether our
restaurant offering any new products or services or having any promotional sales with
limited availability. Other than that, we will make our customers feel valued by replying their
inquiries or return their phone calls right away to show that we are responsive to their needs.
We will listen to their feedback to find out what they like and dislike so that we could improve
our restaurant services. Moreover, we will consider offering birthday promotions to customers
when they are going to celebrate their birthday in our restaurant and prepare a small gift or
handmade cards for customers to make them feel like we value them. As a result, this will
encourage repeat visits.
5.2.3 Improve Customer Loyalty

Update customers retention is also one of our strategies increase customers trust and
loyalty. We will create a VIP list for those customers who often dine in our restaurant to thanks
them for their support. With this VIP elevated status, customers able to enjoy exclusive offers in
our restaurant. We also will be honest and genuine with our customers to win their loyalty. We
will thank them by offering them a 10% discount when they dine in our restaurant in order to
make them feel appreciated.

5.2.4 Word of Mouth

Word of mouth marketing strategy will recruit satisfied customers to help to promote
our steamboat business as the power of word of mouth recommendations is huge. Our restaurant
rely on this method to grow our steamboat business. So, if our restaurant gives customers a great
impression, there will be a good chance they will share their feedbacks of our restaurant with
their friends and family. To encourage word mouth strategy for our business, we will reward
our customers by giving them discount on future purchase. Our restaurant also provides
refillable drinks for customers. From here, when we make them feel special, they will be more
likely to share with their friends and family about the good deals that our restaurant provided.
We also will post our restaurant promotional deals on social media, for example, Facebook,
as people will repost our post in their social media profiles. This will help in promoting our
restaurant and will encourage people to talk about our restaurant and in the meantime will
increase potential customers as a result.

6.0 Product development

6.1 Description of product

In our restaurant we offer 10 type of soup base for our customer to select, we introduce a
square pot with a divider which can put four different soup bases at the same time. Customers can
select any four types of soup base that they like or prefer stated in our menu, it is flexible for
customers can try variety soup at the same time. Besides, we also have offer 3 different set of
steamboat ingredient which is set A, set B and set C customers may choose the food’s set
according to the numbers of diners. The ingredient of our food are Halal which is suitable for the
Muslim’s customers. Besides, vegetarian diners also is the group of customers we focus on. Set C
are specific design for the vegetarian diners, the ingredient inside are purely made by vegetable.

6.1.1 Soup

Coconut Broth

Coconut Broth is our restaurant’s special signature soup base, it is made by the natural
pure coconut water as the soup base which also contain the ingredient such as ginger, mushroom,
lime juice and sugar. It is very nourishment and suitable for those sweet lover, suitable for
Malaysians that live in the hot weather country and may able help to the people that will get heaty
easily to dispel heatiness.

Mongolian Herbs Soup

This soup base is our restaurant’s chef recommended signature soup base it is made by
natural herbs and spices that originated imported from Mongolian such as “Ginseng”, cinnamon,
star anise, goji berry. This soup base are nourishment because Chinese spices ingredient are
contained high sources of Antioxidant which may help to reduce free radical damage and fight for
heart attack and perfect for elderly diners.

Original 2 in 1 Soup

This soup basically are most popular soup base which design for those original soup
lovers. The soup base contain ingredient such as chicken carcass, mushroom, lotus root, corn and
radish. This soup are taste light and fresh, doesn’t make you feel heavily.

Sichuan Ma-La

This soup base are the favorite type soup for Malaysian, our soup base contain ingredient
such as black cardamom, ginger, fennel seed, dried chili and Sichuan peppercorn. Sichuan
peppercorn are originated imported from China, the taste of this soup base are extremely
mouth-burning and spicy. It’s worth for those spicy food lovers to try this soup base.

Korean Kimchi Soup

 Our soup are design for those Korean’s food lover, our soup base are cooking based on
traditional Korean Kimchi soup recipe. The ingredient contained in the soup are Korean chili
flake, soy sauce, Kimchi and beef. Diners may getting vitamin and mineral from the Kimchi.

Thai Tomyam Soup

Our restaurant are providing the most authentic Tomyam soup which we are cooking based
on the authentic Thai recipe. Our soup contained lime juice, fish sauce, onion, mushroom, tomato
and garlic. The taste of soup are flavorful and spicy, perfect for those spicy lovers and we
confidence that the taste of our soup are the best and delicious tomyam soup that diners have ever
tasted.

Japanese Curry Soup

Japanese Curry Soup is the traditional cuisine in the Japan, our Japanese Curry soup are
contained the ingredient such as tomato juice, potato, carrot, lady finger, fresh milk and Japanese
curry powder. We include a lot of vegetables instead of high-fat ingredient, diners may able to
have a heartier meal with delicious taste which perfect for elderly people get away the worriment
about high blood pressure.

Milky Seafood Soup

Milky Seafood Soup include variety of seafood as the soup base such as prawn, fish and
clam. Organic local fresh milk included as the soup base which are able to bring a lot of calcium
and vitamin, it is essential nutrient for children diners. Besides, children diners are more
willing to eat this soup as the taste of this soup are flavorful and delicious.

Seaweed Soup

In our restaurant we provide Korean-style seaweed soup, the ingredient that contained
inside the soup base are beef, soy sauce, taufu and Korean imported seaweed. Seaweed are contain
excellent source of micronutrients including folate, calcium etc. Which are able to act as cancer
fighter and is the heatier soup ever.

Vegetarian Soup
 Vegetarian Soup are design to welcome the vegetarian diners. This soup base are purely
made by variety vegetable such as dried lily flower, romaine, needle mushroom, mushroom,
bamboo sprout, carrot and corn. Our Vegetarian soup are rich in nutrients and vitamins which
may help to ensure the healthiness our vegetarian diners.

6.2 Analysis of quality

6.2.1 Ambience

Nowadays dining is not solely about the cuisine, quality environment also is an important
element to attract customer to visit the restaurant and enhance their dining experience. In our
restaurant, we provide private karaoke room for customer who ever wish to having a singing
together with dining experience without bothered by others or diners who want to held a gathering
or party in our restaurant. Ambience of a restaurant is one of the most important element that
influence the customer satisfaction, we emphasize on our ambience of environment quality and
in order to make our customer to have a greatest dining experience we design our restaurant
based on modern theme this is a broad design term that emphasize on clean and comfortable simple
colour palette to makes our restaurant look elegant and sleek, purpose to let our consumer feel
comfortable with the environment.

6.2.3 Staff

A restaurant which has the great service in common is that their staff or waiters are having
customer-friendly attitude, the good attitude quality staff may lead to customer satisfaction and
loyalty. In order to ensure our staffs and waiters quality, we tend to providing training for our
employees before they commencement of their works ensure customer’s comfort while dining in
our restaurant and also to ensure that our restaurant will be capable of providing attentive and
satisfactory services to our diners. Greeting service are being a must in our restaurant, this is one
of the way that we show our respect to every customer and sincerely appreciate they choose our
restaurant. In our restaurant employee’s schedule, we will arrange at least three wait staff are
being to assist customers and solve the problem quickly enhance the efficiency of our restaurant.

6.2.4 Food and drinks

 Probably the most important service that a customer expects to receive when dining out
is a good selection of delicious and well-presented food. In our restaurant, we are providing foods
and drinks which is delicious, healthy, hygiene and in the good quality. We emphasize the
hygienic of our foods and beverage preparation process, the hygiene and quality control of
foods and drinks will be implement by our management on a daily basis ensure that the foods
and beverage we provided are safe. Besides that, the ingredient we used in our cuisine mostly are
organic ingredients where we take the responsibility for take care of our customer healthy. All
meat we are purchase from the stable local supplier ensure the freshness and quality of the meat.

6.3 Production and operations

6.3.1 Ingredients

We will collect all the fresh ingredient from our suppliers in the morning before we start
operates. For Seafood, we will freshly shipped daily from Pulau Ketam. As all the ingredients are
fully bought, we will start to make dumplings and cut the ingredients into pieces. For seafoods, we
will cut the squid into rings.

6.3.2 Steamboat Dipping Sauce

We will add the chili padi, red chilis, water and all the seasoning to blend it. After
completed, the sauce can be ready for serve.

6.3.3 Drinks

We will prepare the 2 in 1 signature drinks by mix soda, honey together. Next, we will
cook a big pot of Chinese tea for refillable purpose.

6.3.4 Soup base

Coconut Broth

This soup base will be prepare before 3 days because it takes about 6 hours to cooks it. To
prepare this soup, we must combine all the ingredients and the chicken together.

Mongolian Herbs soup

 We pour some oil onto the pan and saute the onions and carrot then add the beef and
fry it. Then, pour all the cooked ingredients into a pot and add suitable amount of seasoning
cooked for 30 minutes.

Original 2 in 1 soup

First, we must add all the ingredients and water together then cooked it with a medium
high heat until chicken falls off the bones. Then, add salt and pepper to stir it.

Sichuan Ma-La

We chop the fennel seed and soak in the dry chilis and garlic. Then cooked it with the low
heat by adding beef bones, Sichuan peppercorn and salt.

Korean Kimchi Soup

To prepare this soup base, we will adding all the ingredient and pour enough water to
cooked it for 30 minutes with the medium heat.

Thai Tomyam Soup

To prepare this soup, we will add all the ingredients and tomatoes into the water and boil
it for 5 minutes. Then, squeeze the lime juice into the soup and stir it.

Japanese Curry Soup

Before add all the ingredient into the boiled water, we must put vegetable oil to cook all
the ingredients first. Then, can only transfer it into the water to boil about 30 minutes.

Vegetarian Soup

We pour some vegetable oil onto the pan to saute the ingredients until simmer. Then, put
all the ingredients into the water and add some soy sauce to taste. Let the water boiled for 1 hours
and then drizzle some sesame oil on it.

Milky Seafood Soup

Firstly, heat the cooking oil on pan and fry the fish until brownly. Then, transfer the fish to
the pot then add water, other ingredients, seafood, milk and salt to cook it.
Seaweed Soup

To prepare this soup, we will add water, chicken stock cube and chicken together and cook
for 30 minutes. Then, add salt, soy sauce and seafood together make it become tastily