ENT300

FUNDAMENTAL OF INTREPRENEURSHIP

BUSINESS MODEL CANVAS (BMC) REPORT

BUSINESS NAME: KAKALOT CAFÉ

PREPARED BY:
NAME: SITI NURAZIEMAH BINTI AZMY

STUDENT NUMBER: 2018800492

CLASS: A4AS1205_D

PROGAMME: DIPLOMA IN SCIENCE (AS120)

FACULTY: FACULTY OF APPLIED SCIENCE

PREPARED FOR:

LECTURER’S NAME: MADAM HAFINI SUHANA BINTI ITHNIN

SEMESTER: OCTOBER 2020-FEBRUARY 2021

1
TABLE OF CONTENT

EXECUTIVE SUMMARY.........................................................................................................................3
INTRODUCTION......................................................................................................................................4
CUSTOMER SEGMENTS.......................................................................................................................6
VALUE PROPOSITIONS.........................................................................................................................8
CHANNELS.............................................................................................................................................10
CUSTOMER RELATIONSHIPS...........................................................................................................11
REVENUE STREAMS...........................................................................................................................12
KEY ACTIVITIES....................................................................................................................................13
KEY PARTNERS....................................................................................................................................15
KEY RESOURCES.................................................................................................................................17
COST STRUCTURE..............................................................................................................................18
APPENDICES.........................................................................................................................................19

2
EXECUTIVE SUMMARY

Business model canvas (BMC) is defined as a one-page summary describing the high-
level strategic details needed to get a business (or product) successfully to market. It is also
known as visual chart filled with nine blocks of elements describing firms’ or product’s value
proposition, infrastructure, customers and also finances. The co-founder of Canva, Melanie
Perkins once said that “if you can offer a free tier that provides a lot of value, it will naturally help
your product to spread much more rapidly.” With this being said, every idea has their own value
which we cannot turn a blind eye and we must see the potential of one’s business no matter
how small it is to be proposed and to be improve so that more successful entrepreneur can be
discovered regardless of their age.

Therefore, the purpose of preparing the business model canvas are to help us analyze
the business model of our own company and to ensure that we, as young entrepreneur is able
to keep focus on our key building blocks in order to save more time and succeed. The nine key
blocks of elements which are key partners, key activities, value proposition, customer
relationships, channels, customer segments, cost structure, and revenue stream help us to have
a clearer vision on what we wanted to promote and what we wanted to target in our proposed
business plan.

For this report, I already choose to open a café for as my chosen business and named it
as Kakalot Café. I choose the business because it always being in my dreams and also my
cousins to open a café that have vibe as Starbucks Café which sell variety types of coffee,
smoothies, and also the dessert.

When I do this report, there a few problems that l had faced to do the report. Firstly, I
had problem to choose a suitable business to write a good report and I had used almost 3 hours
to think of a one good business. Next, I had problem to elaborate my writing in every key blocks
of element and that make me spend more time to finish this report. For the last problem that I
faced when doing this report, I had problem with the noisy sound around my surrounding due to
the voices of my cousins who used to play with my brother every day and I can’t do the report
properly because of it.

3
INTRODUCTION

Given name as Kakalot Café, my café shop is a sole proprietorship business located at
Jalan Parit Ismail, 82200, Benut, Pontian, Johor where is easy to be seen by people due to the
road was the main road between Benut Town and Simpang Renggam Town. The reason why it
is named as Kakalot because it was inspired from a website named “mangakakalot.com” where
I always read the manga comic and I found the name was good and cute so I decided to name
my café as Kakalot Café. Kakalot Café is a coffee shop that offers only the high quality
products, a superb service quality, delicious and tasty not only for the coffee but also for the
food that been served and offered at the menu. Kakalot Café was highly emphasized on its
originality, efficiency and satisfaction among the customers after their visit.

The idea to open a café already in my mind and cousins also after we finish our
secondary school in 2017. The desire to open a café is getting more and more exaggerated
after we often visit Starbucks Café to buy their drinks and thought why we must buy when we
can make it ourselves. So, we decided to open a café. Since my family already owned a shop
building, we just have to get a business license from Suruhanjaya Syarikat Malaysia (SSM).

Kakalot Café provided a beautiful scenery from the outside and nature since the café
was surrounded by variety flora and fauna that allow the customers to escape from their daily
stress life by enjoying the nature and relax their mind with the café cozy and comfortable vibes.
Thus, Kakalot Café provide the best quality of products and excellent service for the customers
so they can spend their time here leisurely.

At Kakalot Café, we offer our customers only the best local quality coffee beverages that
surely will surprise the customers with the taste and the originality of the coffee. Cold coffee
drinks such as Ice Coffee, Ice Americano, Ice Latte, Ice Cappuccino and Ice Chocolate are the
menus that surely will fantasize all the coffee and chocolate lovers. Besides, Kakalot Café also
have variety type of delicious ice blended such as Caramel Ice Blended, Chocolate Chip Ice
Blended, and variety types of fruity ice blended such as Watermelon Ice Blended, Strawberry
Ice Blended and Green Apple Ice Blended.

Kakalot Café not only provide the drinks, we also provide variety types of food that
surely tasty such as chocolate moist cake, Vietnamese roll, chicken slice sandwich, cookies,
and even heavy food such as fried rice, pasta, and fried noodle.

4
 Kakalot Café also provide a delivery service for those who can’t come to our café due to
work. Kakalot Café promised a fast and efficient delivery service to ensure the taste of food and
drinks. Kakalot Café also always make sure the price for delivery charge are suitable and
affordable for the customers to pay it. Kakalot Café also used Food Panda service to send the
orders from Food Panda apps and the delivery service range is maximum till Benut Town.

Kakalot Café was hoping to be a popular and known as a tasty and delicious café like
the popular trending café, Starbucks Café and to be an efficient and fast delivery like Food
Panda service.

5
CUSTOMER SEGMENTS

Customers segment is the part of where the groups of people or organizations that you
aim to reach or serve. In business model canvas, there 4 factors that we must consider in
customer segments which are:

1) Geographic
Kakalot Café located at the main road between Simpang Renggam Town and
Benut Town. In the range of this area, there many schools such as SK Parit Markom,
and SMK Sri Tanjung, villages such as Kampung Parit Madirono and Kampung Parit
Salleh, residential area such as Taman Benut Utama, and Taman Jasmin and even the
factories that can be our target to our café.

2) Demographic
Kakalot Café target citizen from various categories such as age, gender, their
income, and social background. For age, Kakalot Café targeting all ages starts from the
kids aged 4-5 years old till the elders aged 50-60 years old since Kakalot Café served
various types of drinks and foods that fit and suitable to their respective ages. In the
context of gender, Kakalot Café targeting both genders, female and male cause not the
only one who drinks coffee was man but also they are many women at outside who also
a coffee lover. Next, if we talk about income, Kakalot Café are open to all sections of
society since Kakalot Café offered a reasonable price for all of their menus without
missing the originality and taste of all the menus served in this café. Last category which
is social background mean all kind of social background such as school students, office
workers and even farmers can enjoy their time here at Kakalot Café.

3) Psychographic
Psychographic includes characteristic like lifestyle, and interest. First
characteristic which is lifestyle mean that Kakalot Café’s target is the customer who has
a very busy and unhealthy lifestyle since in Kakalot Café we can give them the relax and
calm society to them enjoying their time viewing the beautiful nature around Kakalot
Café. Second point which is interest conclude that our targeted customers who are
interested and curious about our drinks and food and want to try it either its good or not.

6
4) Behavioral
Kakalot Café is targeting the customers based on behavioral who is a coffee
lover and a hardcore fan of coffee. Since our main menu is coffee, it is easy to attract
this kind of customers to come at our café and try the delicious coffee themselves. We
also targeting the citizen who is a food lover since Kakalot Café served variety types of
delicious and tasty food.

7
VALUE PROPOSTIONS

Value proposition is the promise made by us as an entrepreneur in order to value

promises that can be offer and the feature deliberate to make the products or services look
appealing to the costumers. Thus, the value propositions that been offered by Kakalot Café are:

1) Halal
Kakalot Café assure that all products that being selling to the customers are
100% halal to make sure that everyone can enjoy the menus served by us regardless of
their religion. Kakalot Café determined to carefully choose the ingredients that meets the
requirements of Islamic Law. Besides, Kakalot Café always ensure that the preparations
of our menus are all made in a hygienic environment and prioritize the customer’s health
as the first thing to be concerned of.
2) Best quality of local coffee products use
The coffee used in Kakalot Café is more unique than other café as we only serve
the best high quality local coffee beans and maintain it originality that had been supplied
by our coffee farmers. Kakalot Café offered only the best taste in coffee beverages
which highlight its own originality and quality. This is why Kakalot Café promised the all
coffee lovers and drinkers who come to our café the best taste of coffee. Coffee like Ice
Americano, Ice Latte, Ice Cappuccino, and Hot Coffee will give the satisfaction for all the
costumers. Moreover, the combination between coffees and steamed milk or other
additives like cocoa, milk foam, and cream will give a velvety smoothness to the coffee
and make the coffee’s texture become thicker and tastier.

3) Fast delivery
Kakalot Café promised a very efficient, friendly, and fast delivery to our costumer
who unable to come at Kakalot Café themselves and only ordered it online. Hence,
Kakalot Café had joined with our key partner, Food Panda service as they are trusted
and reputable online food ordering and have a very fast delivery service in Malaysia.
Next, we also deliver the order by ourselves since some of the costumers ordered from
direct call, so after they order the menus, we will make the order as soon as the order
come and deliver it. The delivery charge also is cheaper depending on the distance
between the café and the costumer’s house.

4) Cozy and comfortable place

8
 Kakalot Café concept is comfortably relaxing café where we provide a very
comfortable place for people to relax their mind from their busy schedule. They just can
grab a cup of hot coffee and enjoyed seeing the beauty of nature outside and relaxing
their mind. Kakalot Café also have an enough space for the costumers since it’s a big
café and can fit 30 costumers at the same time. So the costumers didn’t have to worry
about being uncomfortable with many people and narrow space and we also have the
table outside the café where the costumers can enjoy their foods while seeing the
beauty of nature. Kakalot Café also give choices to their customers choose their own
preferred music to be play in the café to give more comfortable.

5) Reasonable price
In addition to serving delicious dishes, Kakalot Café also only offering food and
drinks with a reasonable price for our customers. As we know, in order to develop a
good business, we need to take much consideration about the pricing value that we offer
to the customers not only focusing on the quality of the products. So, Kakalot Café
promised to serve the dishes with cheaper and affordable price yet still maintain the
quality and taste of products serve.

9
CHANNELS

Channels is the method on how the seller will communicate with their customer
segments. It is also emphasizing on how our products will be distribute to our customers. So,
Kakalot Café channels includes:

1) Marketing Channel
Kakalot Café always promoting our business by both online and offline. By
online, we will post our daily menus in social media such as Instagram, Facebook,
Twitter, and Tik Tok. Kakalot Café have their own social media account like Instagram
and Twitter with username @itskakalotcafe and Facebook account named Kakalot Café,
there we always post our menu for today and if promote it with cheaper price. Kakalot
Café also have a official website, www.kakalotcafe.com where our staff will post the
menus for today as well the phone number if they want us to deliver it to them. At the
social media also, we will give them the link to contact us to order the dishes. Kakalot
Café also join Food Panda apps and service where the customers just can order menus
from us on Food Panda apps. Next, by offline mean Kakalot Café always promote our
café by give them pamphlet form house to house or at night market at Benut Town and
Simpang Renggam Town. Besides, we also make a beautiful signboard to Kakalot Café
and it is big enough to customers see it.

2) Distribution Channel
Kakalot Café been providing delivery service through distribution channel which
is Food Panda service to send the order from Kakalot Café to the customers who
already ordered it online through Food Panda apps. Since Food Panda is the most
trusted and fast enough to send the products to the customers, they surely will not worry
about being waiting for a long time and can enjoy our foods and drinks while it still fresh
from the café.

10
CUSTOMER RELATIONSHIPS

Customer relationship can be defined as the type of relationship that one’s business
establish with their customers. Hence, Kakalot Café have come up with a few strategies to
maintain the relationship with our loyal customers.

Firstly, when it comes to the customers who have been to our café for the first in their
live, we will give them 50% discount from every item they buy from our café. For example, if
they buy 2 cups of Ice Americano and 1 set of Vietnamese Roll, they will get 50% discount for
each item they purchased. Besides, we will give them one free either food or drink if they buy
anything from our café more than 5 items. At the end, when they want to pay for the orders at
the counter, we will give the voucher that can be used for the next purchase when they come
back to Kakalot Café. We also will give them a small merchandise like keychain, magnet, and
pin with positive motivation on it. Lastly, we will offer to them to join membership where in the
next purchase, they will get 15% of discount which is very worth it to try be a member. In this
way, we can persuade them to come again to our café and soon become our loyal customers.

Next, in order to maintain the customer’s loyalty to Kakalot Café, we will make the offer
to who had been to Kakalot Café. Example, to our members we will promote free foods and
drinks for those who will celebrate their birthday at Kakalot Café. Besides, we will always update
the new promotion in our website and social media like 1 drink and 1 food for the cheaper price
than usual price for only that day so the customers must not miss this chance to get the
products with cheaper price. Next, to our members we will give them the 10% voucher when
they go to our café by just showing us their membership card and for the newbie will promote to
them to come at our café to purchase the voucher by buy at least 2 products from Kakalot Café.
In this way, more customers will come and buy our products.

Lastly, in order to maintain our good communication with the customers we will always
try to give them a perfect service. When the customer order anything from our menu we will
always try to promote them another dishes from our menu by asking them if they want to add
anything to their order or by promote them the foods or drinks that they must try and confirm
that they won’t regret eat or drink the dishes that we choose to our customers. This way can
make our communication and relationship become stronger.

11
REVENUE STREAMS

Revenue stream at Kakalot Café have two different items which are primary core
business and the second one is secondary business.

My primary core business as an entrepreneur is Kakalot Café who had been my dreams
for a long time along with my cousins. Kakalot Café served variety types of delicious and tasty
coffee and foods that the customers won’t forget and regret for coming to our café.

My secondary plan, due to COVID-19 pandemic my café can’t operating because of

safety. So, I was opened order for lunch and delivery service. I changed the menu every day so
the customers will not get bored of the same menu. I promoted the cheaper price for the food
and free delivery for the customers who ordered the lunch from me.

12
KEY ACTIVITIES

Key activities is any activities that we as an entrepreneur do when open a certain

business in order to make our own profit. In Kakalot Café, there are several key activities that
had been done by me as the founder.

The first activities that I do is opening the café and named it as Kakalot Café. Since I
already have my own shop so I did not rent any shop to open my café. Located at Jalan Parit
Ismail, my café already in strategic area as many cars passing by the road since it was the main
road connecting between two towns. My cousin as my business partner acted as interior
designer for the café as she has a degree in interior design and as the result Kakalot Café had
transformed into a beautiful and comfortable café.

Next activity is buying all the ingredients needed to make the drinks and foods. We
bought the ingredients for food such as salad, shrimps, crab filaments, and cucumber at the
fresh market early in the morning every day 2 days. We made sure only the fresh and high
quality ingredients used in our dishes. Then, we bought the other ingredients such as pasta,
flour, sugar, milk, butter, and others at the market near our house. We also carefully check the
ingredients to make sure it didn’t expire and only the high quality of products used in order to
ensure the best taste in our dishes. For the coffee, we only bought the high quality and fresh
coffee beans from the trusted and best coffee factory once a month.

For our next activity, Kakalot Café is well-known for making the best coffee ever and still
maintain the originality of the coffee. Me as the main barista of the café had already take a
special training from the professional barista that took me a month to expert in making the best
coffee to our customer in Kakalot Café. I also taught my cousin to make the basic step to make
a simple coffee like the hot coffee, and Ice Americano so my work as the main barista will
become easier. In Kakalot Café, we also known to use the best method in brewing a cup of
coffee that will relaxing the customers with the intense aroma from the coffee. My specialty in
making any kind of coffee drinks that exist in the world like Ice Latte, Hot Cappuccino while my
cousin expert in basic coffee hot and ice coffee.

Other our key activity is cooking a superb and delicious foods and desserts. My aunt
was the main chef of Kakalot Café and she can cook any kind of food since she has a degree in
culinary art. Our foods like pasta, fried rice, and even Vietnamese roll is her specialty and she
can cook it very fast. She knew how to make the dishes more appetizing to being eaten by the

13
customers. Me and my cousin are expert in making a beautiful and tasty dessert like chocolate
moist cake, cheese tart, and tiramisu. We had been trained hard to ensure it meets the tastes of
customers.

Next, we also did the promotion to attract the customers to come at our café. We did
50% discount to the customers when their first time experiences in Kakalot Café and give the
voucher for the members of Kakalot Café. We also promoted it online on our official website and
social media.

Lastly, Kakalot Café did a fast and efficient delivery to the customers who ordered
online. We delivered it ourselves to who called us or who directly ordered through the website or
the links and send it to them with charged for the reasonable delivery charge. For the customers
eho ordered it through the Food Panda apps, the rider will directly send the orders as soon as
we finished the order.

14
KEY PARTNERS

Key partner are the network of suppliers and partners that will help to make the business
model work. Kakalot Café’s key partners are: can be described as the building block related
with most assets needed in order to make a business model work. Kakalot Café’s key resources
are:

1) Target Supermarket
Target Supermarket at Benut Town is our main market to buy the fresh and high
quality of ingredients to make the delicious foods. We went to market every 2 days in
order to maintain the freshness of the ingredients and Target Supermarket always give
us the best quality and fresh products. The vegetables supplied by Target Supermarket
are always fresh make me bought it there every time.

2) IKEA
The tables and chairs in Kakalot Café are from IKEA store, I choose IKEA store
as the place to buy these because IKEA serving variety types set of tables and chairs,
with variety types of color that we can choose. They also sold it with the reasonable
price. They also can deliver to our café. So, I chose IKEA to buy the tables and chairs.

3) Unifi
Unifi is our main line in Kakalot Café used as our main Wi-Fi since we give our
customers the access to our Wi-Fi so they really can enjoy their time at Kakalot Café. I
choose Unifi as my main line at Kakalot Café because it is the fastest line at Kakalot
Café yet it is reasonable to pay the bill since the service is excellent.

4) TNB and Syarikat Air Johor

Kakalot Café get the electric directly from TNB and we already chosen smart
mode in order to save the electrical uses. So, by doing this we will save the pay for the
electric bill. Same goes to the water, since I opened the café at Johor I used the water
supplied by Syarikat Air Johor.

5) HP

15
 Kakalot Café used HP brand computer as the main computer for the waiters take
the order from online order and the cash machine to save the money paid by customers.
HP brand was chosen it was a good brand, has known for the high quality of products
and most important cheaper than other brand.

6) Food Panda
We used Food Panda service as our main delivery service for the customers who
ordered it through Food Panda apps. I choose Food Panda as my key partner than other
food delivery service since Food Panda is the most trusted service among people in
Malaysia and they also had a faster delivery.

7) Coffee Farmers
This is the most important key partner for our café as they are the one who
supplied high quality local coffee beans for us. We choose to join hands with famous and
the most trustworthy coffee beans supplier in Malaysia such a Liberica Coffee Bean
Shipper. This is because their most widely and valuable traded tropical agricultural
products. Hence, we are gathering our utmost effort to make sure that only good quality
coffee are serve to our customers. This is what makes our café different from any other
café as we produce coffee beverages from only original and high quality standard
coffee beans supplied from the coffee farmers.

16
KEY RESOURCES
Key resource can be described as the building block related with most assets needed in
order to make a business model work. Kakalot Café’s key resources are:

1) Advanced coffee machines

With advanced coffee machines, it will help us a lot in producing good coffee to
all the customers. We need advanced coffee machines to make our work smoother and
convenient. It is economical yet portable and time consuming devices specifically design
to brew coffee. The difference between standard coffee maker and advanced coffee
machines is the various specific settings and controls of advanced coffee machine will
allow us to customize the drinks and craft a host of coffee beverages at ease. In
additional, the built-in coffee grinder will help to break down the coffee beans for
brewing. It is very convenient as it helps to make the coffee taste better and freshly
made.

2) Excellent Delivery Service

Food Panda is known for their efficient service in order to deliver the order from
the shop to the customers. Hence, Kakalot Café give their trust 100% to them and the
rider to send the order from our café carefully yet as fast as can to the customers. Their
apps also easy to be used by both Kakalot Café and the customers make them as the
top of food delivery apps exist in Malaysia and because of that Kakalot Café use their
service as the main delivery service.

17
COST STRUCTURE

Cost structure can be defined as all the costs and expenses that Kakalot Café will
sustain while operating it. Kakalot Café’s cost structure will further explain as below.

For the fixed cost, Kakalot Café must pay for the coffee machine every month for the
same price, as I do not buy it for the full payment and pay it for the same price gradually for
every month. It same goes for the Unifi bill, where I pay it for the same price every month since I
purchased the same plan every month.

For the variable cost, Kakalot Café must pay for the utility bill, raw material, and others.
For the utility bill, TNB and SyarIkat Air Johor must pay the bill with amount of how much
Kakalot Café used the electric and bill every month. It is same to the raw ingredients that we
bought at fresh market and Target Supermarket since we have to pay according to the current
market prices. Example, the shrimp’s price is different every time I bought it.

18
APPENDICES

- Coffee - Opening - Halal 1st experience

farmers - Buying - Best
- Cooking Retain loyalty 4 factors to
- Target quality of
- Promoting consider:
Supermar coffee Upselling:
- Delivering
ket used upgrade -geographic
- Making
- Ikea - Reasonabl
coffee -demographic
- HP e price
- TNB - Comforta -psychographic
- Unifi ble and
Marketing -behavioral
- Food - Courier cozy place
channel:
Panda service - Fast
-online
- Syarikat - Advance delivery
-offline
Air Johor d coffee
Courier service
maker

Fixed cost: Unifi bill, Coffee machine Primary: core business (Kakalot Café)

Variable cost: utility bill, raw ingredients Secondary: backup plan (lunch and delivery
service)

19