1. Individual Assignment For MBA Program – Marketing Managemnet Prepared by Saiful Anuar Mat Taib 27 February 2010 Al-Halal Food

2. Executive Summary The Product  There has been increasing demand for halal food in most part the world both in the muslim dominated countries as well as non-muslim countries like Europe, The USA and Asia. Considering the type of food that span interest through out countries and culture, Halal Sausage is specifically selected to cater for this concept, where the market potentials are very wide as most people in the world accept sausage as familiar food. Allow bigger market, halal sausage will definitely make its mark especially in the muslim consumers. Source of Raw material  Poultry, chicken, duck, goose, turkey, bird can be easily sourced from within Malaysia and also neighboring country, Indonesia and Thailand. Beef and goat are also sourced within Malaysia or easily available from Australia, New Zealand, India and Thailand. So there is no problem of sourcing raw material for the product. The price and quality is the balance we have to strike in producing quality final product. Product grading will be done based on price and quality having in mind customers needs and wants 

3. Marketing Strategy  The market for the halal sausage is a follows:- Phase 1 – 80 % local market and 20 % export market Phase 2 – 60 % local whilst 40 % export Phase 3 – 30 % local and 70 % export market These gradual changes in market allocation based on our vision of gaining world establishment of our brand “AL-HALAL SAUSAGE” made in Malaysia. The phases indicate the introductory stage and the final achievement stage 3 target after 6 years Financial Implication  The initial capital for the setting up the production line is about RM1.17 which will be allocated for :- Equipment/ Machinery, Setting up & Rental, Working Capital (refer to cashflow) Financed by :-Individuals Investors RM200,000.00 Personal CapitalRM120,000.00 Bank/LeaseRM850,000.00 Total RM1,170,000.00 Return on Investment  Based on our projection, the business can expect breakeven for cash capital investment of RM1,120,000 in year 6.

4. Product Range Al-Halal Sausage ChikenBeef MuttonRabbit Seafood exoticVegetables Organic

5. The Challenge  Food production has very big potential in the global market, as every where in the world there is shortage of food supply especially in the countries where resources related to food production are limited  Such countries are Middle East, North Africa, some European countries and some countries in Asia  Halal food especially gain high demand from these countries, our target is about 500m muslim and non muslim people from these part of the world

6. The Challenge Al-Halal Sausage (Made in Malaysia) is our proposed brand name that will be well known in the world halal food market.  Our target sales is about RM2.0m per annum in the first year operation and increase double to RM4.0m after 4 years.  We plan to expand our halal frozen food products like burger, nuggets, meat loaf, cake, satay, processed whole chicken, turkey etc carry the brand Al-Halal food (made in Malaysia)

7. SWOT Analysis Strength Well experienced manager Easy source of raw material Location in centre Asian Hub Malaysian Reputation as dynamic Muslim Country Weaknesses International Certs. Standard lacking Being new comer Opportunity Government Grant Tax Incentives Established Malaysian Halal Hub Government Package Financial aids Threats Barriers to enter certain countries Competition

8. Potential Customers Local market ~ Big potential as Malaysia still import 40% of its food ~ 27 m population ~ potential neighboring countries Asia market ~ Asian muslim population is about 400m ~ Other potentials are the orients where Halal food is not available ~ Hongkong, Taiwan, Vietnam, Cambodia Middle East ~ About 300m muslim population ~ one of the highest food consumers in the world ~ high income society ~ close ally to Malaysia European ~ About 100m muslim population ~ Importers of Halal Food ~ high income society ~ close ally to Malaysia Al-Halal Food (Made in Malaysia)

9. Competitors  There are not many established halal food producers in term of branding.  Well known brand name internationally are related to specific product category like milk related products Nestle and Fernleaf  Al-Halal Food shall be the brand name, visioned to be at par with those established food products.  As far as competition is concern, there is so much opportunity in halal food market that can be tapped, competition is healthy.

10. Collaboration  Collaboration with food distributors in all regions/countries will be done upon productions reach certain level that can cater for large orders.  We also consider Joint venture with other food producers in target countries to established synergy for the brand/product and meet demand from those countries  Cooperation in the field of R&D and quality enhancement would be carried out in the localized manner to understand their expectations, needs & wants.

11. Financial Projection Cash InflowMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Total Sales Income100000120000 150000 200000 250000 1860000 0 Bank Leasing Facility850000 Personal Investment120000 Investors contributions200000 TOTAL INFLOW1170000100000120000 150000 200000 250000 3030000 Cash Outflow Cost of sales7500090000 112500 150000 187500 1395000 Bank Repayments9500 104500 Purchase of Equipments900000 Building Renovations150000 Rental400005000 95000 Overhead25000 300000 TOTAL OUTFLOW1115000114500129500 152000 189500 227000 2944500 GP/L55000-14500-9500 -2000 10500 23000 85500 Gross Profit (accumulated)55000405003100021500120001000080001850029000395006250085500

12. 10 Years Projection Cash Inflow Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Sales Income 1860000200000030000003500000400000045000005000000550000060000008000000 Leasing Facility 900000 Personal Investment 100000 Investors contributions 200000 TOTAL INFLOW 3060000200000030000003500000400000045000005000000550000060000008000000 Cash Outflow Cost of sales 1395000150000022500002625000300000033750003750000412500045000006000000 Bank Repayments 104500 30000 Purchase of Equipments 900000150000 Building Renovations 150000200000 Rental 95000 104500 114950150000 Overhead 300000315000346500381150400207.5450000 TOTAL OUTFLOW 2961000201450028055003365150361965840795004654500482950051300006630000 GP/L 99000-14500194500134850380342.54205003455006705008700001370000 Gross Profit (accumulated) 9900084500279000413850794192.512146931560193223069331006934470693

13. Break Even Initial Capital Bank Facility850000 Personal investment120000 Other Investors200000 1170000 Break even6 years IRR16% The business is expected to break even in year 6 Sales for first 2 years is expected about RM2.0m pa and increase to RM4.0m in year 4

14. Marketing Strategy Phase 1 ~Setting up production line ~penetrate local market ~standardize production system, procurement etc ~acquiring certifications Phase 2 ~Improvise production system. BRANDING ~enhance production capacity ~product development ~R&D and international certification & standard ~international market present, exhibition, trade mission ~JVs, Agency, Distributors Phase 3 ~Setting up JV production & Packaging line overseas, Europe & Middle East ~ Enhance Branding ~Established ecommerce for hybrid system ~Opening AL-HALAL hypermarket in Middle East ~AL-HALAL Brand international recoqnition at par with Nestle brand and hypermarket chain at par with TESCO

15. Conclusion  Al-Halal Food ‘s vision to be the International Brand shall be reality with proper planning and implementation and full commitments and passions.  The right ingredient for success has been identified, starting with halal sausage is the niche by itself in the European and Middle East market as well as local market.  The potential for success with initial capital of RM1.2m and break even conservatively in 6 years if not earlier  First year expected sales of RM2.0m increase double fold every two years will see the future look very promising for Al-Halal Food