Boba O Nomu
Boba O Nomu
TEAM MEMBERS:
All praises to Allah and His blessings for the completion of this assignment. We thank Allah for
all the opportunities, trials and strength that have been showered on us to finish writing the case
study. We experienced so much during this process, not only from the academic aspect, aspect of
personality and also the COVID-19 issue. Our humblest gratitude to the holy Prophet
Muhammad (Peace be upon him) whose way of life has been a continuous guidance to us.
The completion of this assignment could not have been done without the participation and
assistance of so many people whose names may not all be enumerated. Their contributions are
sincerely appreciated and gratefully acknowledged. However, we would like to express their
deep appreciation and indebtedness particularly to the guidance from our lecturer, Sir Azmy bin
Mat. His support and assistance have given the biggest impact to the completion of our
assignment. We also would like to show our gratitude to Sir Azmy for giving us this opportunity
by sharing some information about the Business Model Canvas. It gives awareness and guidance
to us so that we have the capabilities to complete this research smoothly and with minimum
obstacles.
Last but not least, may Allah showers the above cited personalities with success and honor in
their life.
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EXECUTIVE SUMMARY
The Boba O Nomu Cafe is a new cafe that operates in Tanjung Sepat, Melaka. It is the cafe
managed by Bumiputera. Boba o Nomu is a Japanese language meaning drink boba. Our
company vision is to create and sell boba drinks that are affordable and in accordance with the
tastes of the people of Malaysia. It shows how our company positions our products in customer’s
minds until they can remember my cafe’s name when they think about boba drinks, which are
simple and easy to pronounce. As for the business, we are providing a special, delicious and
nutritious healthy milk tea, but with the intention of growing a variety of flavors for young
working adults and families who want to take sweet beverages after their meal. This boba drink
is suitable to be consumed for people because it has many flavors that suit Malaysian people's
taste. We are focusing on giving happiness in each boba drink.
The target market for our product is mostly students, we chose a location near the university or in
a student housing neighborhood. Not only that, our cafe location is also in the middle of the
town. We targeted these groups because this group of people is usually the ones who will try new
beverages and will provide and boost our marketing through their social media. These groups of
people also enjoy trying something new and our boba drinks are also in a price range that is
affordable to this group. The gender target is not limited to men or women only but for both
genders. Our target market also included working adults in any industry. Whether a teacher,
lecturer, or even a clerk, all types of occupations can enjoy this product as their sweet beverages
after having their meal. Business plan is necessary for all entrepreneurs. It is prepared for a group
of people which are the owner itself, banker, creditor, suppliers, customers and employees. This
business plan consists of a marketing, operational, organizational and financial plan.
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TABLE OF CONTENT
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1.0 INTRODUCTION
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1.4 SWOT ANALYSIS
TeaLive and XinFuTang, two rivals who also make boba beverages, are among them. These two
brands are well-known among customers, and consumers prefer their beverages because of the
brand. They are well-known and make a variety of beverages in addition to boba milk tea. They
do, however, charge a greater fee for the beverages, around RM13 and above. Because of the
expensive price, customers may only buy the beverages once in a while. It is also a long way
from where the kids could get there. The majority of students spend their weekends in the mall,
which is where all of the brands are located because the target market includes students and
employees, Boba o Nomu has a unique chance to capture their attention. Other students from a
neighboring college are also present. Recognize the potential to enhance the product's popularity
among students.
Our long-term goal in selling beverages is to establish connections with customers in order to
reduce customer churn and boost repeat business. We will accomplish this in a variety of ways,
including following up with customers to ensure that the beverages meet their expectations,
quickly and efficiently resolving difficulties, giving training, and making ourselves available to
answer inquiries. We also provide added value to our customers by providing regular updates on
menu modifications, new goods, and services.
Following that, Boba o Nomu aspires to fulfil our goal of making a profit. The percentage of
gross profit to be achieved on sales is the profit target in this case. As a seller, we aim to increase
our order volume. Boba o Nomu wishes for our drink to become well-known and well-known.
As a result, as demand grows, our firm will be able to expand its product line. As the volume of
our business grows, we will be able to make more money.
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2.0 Business Proposal
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Key Activities Key Resources Key Partnerships Cost Structure
● Price reasonable and ● Capital Raw Material suppliers. ● Important costs – Raw
affordable ● Staffs ● Megah Jaya Supply & Co materials and equipment
● Do some researchers from ● Drink Equipments costs
other shops such as TeaLive ● Strategic location Equipment Suppliers ● Expensive cost in key
and Cool Blog ● Regular Customer ● Chu Eng Company resources – Drinking
● Learn new recipes and ● High quality raw material ● Suria Supermarket equipment
techniques to produce ● Xuan Huat Equipment ● Expensive cost in key
variety of selections of Sdn.Bhd. activities - delivery cost to
drinks retailer
Packaging Manufacturer
● Viking Packaging Sdn. Bhd.
Advertising Supplier
● BH Printing and Trading
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2.1 Customer Segments
In the customer segments is where we want to target our products to achieve our business
objectives, there are several target markets that could be highlight that has the core reason on the
benefits of our products:
i. People in cities
Our cafe is located close to the big cities where our potential customers mostly come from
cities and other countries. People in the city have a huge population of people in the city
where they have a different demographic, psychographic, and behavioral characteristics.
So, we are giving the opportunities to sell our product to the customers that have a different
personality of people that would affect their buying behavior.
ii. Teenager generation
Teenagers are the young generation aged between 13 to 19 years old. We believe that they
are a group of people who will develop their unconditional interest in our Boba O Nomu
Cafe and they are highly likely to buy our products from time to time. This is because teens
tend to spend their money more on food and drinks than buying clothes. Other than that,
our boba drinks have a variety of flavour and types which they have many choices to buy.
iii. Value quality over price
Boba O Nomu Cafe always puts the priority on the quality of the drinks because customers
are prioritizing not only in the price but the quality which is to ensure customers stay loyal
to the brand. We are using fresh ingredients and we will make sure the cleanliness of the
food. Thus, it is important for us to set prices competitively matching with the quality
offer. That is why our product quality is very important to establish the confidence of the
customer to the product and win their loyalty. The satisfaction of our customer would give
them to stay with only one product even if they have more substitute products with many
competitive advantages from the competitor.
iv. Family
Our next customer segments include a group of families. We are targeting because we
believe that our product could strengthen the relationship because our product can be
served as an evening drink where all family members will gather and enjoy our products
and eat some snacks together. Our product offers the best flavor where the kids also can
enjoy our drinks with different tastes.
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2.2 Value Propositions
The value proposition building block defines a package of goods and services that produce value
for a particular consumer segment.
i. Halal certificate
Our boba drinks business has an Halal certificate that has been certified by Jakim
Malaysia. It is also encouraging because almost entirely boba drinks is also controlled by
the employers and employees who believe in Islam, however, the target market of our
products are not only focused on the Malay race even other race also can get and feel boba
drinks create by our own Boba O Nomu Cafe. We will always have stock for our customers
at any time.
ii. Conveniently bring and affordable
In Boba O Nomu Cafe, we have 2 different sizes of cups. The size of a regular cup is RM 3
and RM 5 for a large cup. This makes it easier for customers to buy, carry and taste our
drinks anywhere and anytime even during busy times. In addition, it is reasonable and
affordable compared to other brands like TeaLive or Cool Blog that their prices are much
higher than the company’s drinks.
iii. Gives satisfaction
Boba O Nomu also can assure the customers with high satisfaction for every cup of the
drinks. This is because only quality ingredients are being used in the drinks. Some of the
ingredients used are Lipton’s black tea and black pearl from trusted supplier, Suria
Supermarket.
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2.3 Channels
Goods and services sometimes made their way to consumers through multiple channels.
Increasing the number of channels, we are able to find a good way to increase sales. But it can
also create a complex system that sometimes makes distribution management difficult. Longer
distribution channels can also mean less profit because each intermediary charges a manufacturer
for its services. Thus, a few channels can be used.
i. Facebook
Facebook is so ubiquitous that the company says one out of every five minutes spent on
mobile is either there or on their sister site, Instagram. There are about two billion people
who log into Facebook every month. While the network is promoted as a way to keep up
with family and friends, a large number of Facebook users follow and interact with brands
on the site. Therefore, customers can find out about Boba O Nomu’s daily information or
updates through the tip of their fingers. It will also be easier for the customers and alert
them faster about the daily promotions or business updates.
ii. Flyers
People can rarely resist reading a flyer or leaflet that lands on their doorstep. Design a
colorful and eye-catching flyer of your business, sit back and expect an influx of phone
calls.
iii. TV Ads
TV ads also had been used for our marketing. Our marketing budget will stretch that far,
why not market our wares on TV ads. The TV advertisements are still one of the most
effective ways to help brands and businesses sell their products and services.
iv. Delivery Service
Furthermore, Boba O Nomu also provides delivery services to the students. The company
offers delivery services for every 5 cups and upwards purchases. For every delivery
service, we only charged RM 1 which is reasonable for a delivery to their rooms.
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2.4 Customer Relationships
Customer relationships define the type of partnership an organization has with its particular
customer segments.
i. Provide loyalty card
In order to have a good customer relationship is to give rewards to the customers. Regular
and loyal customers are very worth rewarding. For instance, develop a loyalty card or
membership to show our appreciation and respect for being our loyal customers. With the
loyalty card or membership provided to our customers, they could gain a lot of benefits, for
example buy 1 drink, free 1 drink when they are constantly purchasing our drinks. When
they feel appreciated and rewarded, this will make them trust our product better.
ii. Promotion
We are using the promotion technique by using technology that is rapidly growing.
Through this method, we will use the concept of the customer – friendly, we use Facebook
to make the promotion. Our customers will be able to make an order directly on Facebook
and our secretary will always update our recent activity and also keep sharing to Facebook
users about our products. It will give us savings in advertising costs because on Facebook
all for free but the result is very unexpected.
iii. Make personal approach
Last but not least is to make a personal approach. Being able to remember details such as a
customer’s favorite flavors or their names can mean a lot, this will not only make the
customer feel appreciated but it also ensures that the customers feel valued, known and
understood. One of the ways is to do notes or reminders based on the regular customer’s
preference or likes. When a customer regularly purchases the products, this means that the
company’s customer relationships are indeed very strong.
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2.5 Revenue Streams
A revenue stream is a source revenue of a company or organization. In business, a revenue
stream is generally made up of either recurring revenue, transaction-based revenue,
transaction-based revenue, project revenue or service revenue. In government, the term revenue
stream often refers to different types of taxes.
i. Transaction based revenue
These revenues are based on predictable sales of goods. Revenue is earned by a transaction
from a customer. For example, a customer in a clothing store, buying a new jacket,
generates a transaction based revenue. This type of revenue is often considered less
attractive than the recurring model because an action is required to attract customers. In our
business we use cash payment for transaction based revenue. Cash payment is an
immediate payment in cash. For example, customers come to our shop at Cheras, buy our
drinks and they will pay in cash at that time. It is because the drinks do not require a credit
card to pay so cash payment is the best.
ii. Service revenue
This revenue model sells the time of oneself or of a business’s employees. The service
revenue model is often used in combination with one of the other models. An example of a
service based model are consulting firms. They offer their advice and commonly charge
per hour. Service revenue in our business is cash on delivery (COD). Cash on delivery is a
system of paying for the drinks when we deliver. We will charge RM1 for each purchase of
5 cups of drinks per delivery. Cash on delivery is offered for customers at Cheras only.
iii. Gratuity or tip
A gratuity is a voluntary amount of money given in exchange for a service performed. A
gratuity is also known as a tip. A gratuity is different from service charge or service
revenue, it is because serviced charge is mandatory while gratuity or tip is voluntary. We
put a tip jar in our shop for our customers to give any tips for us. Apparently, there are tips
on how to improve our business like introducing new flavors or improving our services.
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2.6 Key Activities
Key activities are an important element of a business because it represents what the company
must do in order to make the business work and operate successfully. Each of the activities stated
in the business canvas can be producing a product or providing a service, or either a mix of both.
Key activities are required in a business to create and offer a value proposition, reach the
markets, maintain the customer relationships as well as to earn a greater revenue.
However, key activities differ depending on business model type and can be categorized into
production, problem solving, platform or network related. For instance, if a business focuses on
the production of a product, the activities that may include ongoing learning about the customers,
target market segmentation, and new techniques to improve the product.
i. Reasonable and affordable price
The first element of the key activities that our business does is maintaining the price of the
drinks and ensuring that the price is reasonable and affordable for our customer to
purchase. This is because price is one of the main parts of the choices that a customer
considers before purchasing any product. The increasing price of the ingredients that are
used in the drinks will be one of the challenges in order to maintain a good price for the
customers.
ii. Do some researchers
In order for this element to be used in the business, some research was done based on the
price of other brands’ such as TeaLive and Cool Blog for instance. This activity is very
useful for Boba O Nomu’s business to practice due to the high demand for the drinks that
the business will produce. Hence the price that was practiced in the business is affordable
for the customer this is because the target market mostly are students.
iii. Learn new recipes and techniques
The third element of key activities that are used by the business is to learn new recipes and
techniques to produce a variety of selections of drinks other than milk tea and also
delivering quality products. One type of drink might not attract some customers who
demand for other drinks with different flavors. Customers would ask for other flavors that
are available. For example, TeaLive produces a variety of flavors in their menu such as
fruit tea, smoothies and also sparkling juice.
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2.7 Key Resources
Key resources are the building block describing the most important assets needed to make the
business model work. Every business model requires them, and it is only through them that
companies generate value propositions and revenues. These are the main assets that the
company, in particular, requires to create the end product, and these are usually differentiated
from the key resources being utilized by the competitors.
Our business implemented four key resources which are physical resources, human resources,
intellectual resources and financial resources. Firstly, physical resources which it included of
ingredients to prepare the drink to the customer, such sugar, milk, to get from the supplier in a
good condition, we also rental the buildings to produce our products effectively with the storage
facility and equipment which are providing with all utensils, coffee maker, machines and kitchen
station to enable the worker to have their own work space to prepare the drink. For the human
resources, which is the key person to keep the operations going that is our staff, an expert barista
where they are very important as talented in preparing our product and they are innovative to
prepare a variety types of boba drinks. We also hire marketing experts that could be creative in
giving the ideas to expand the business and achieve the business goals and objectives. All the
key people in the business are very important in the knowledge-intensive way of doing things as
they are very expert in their field in order to expand the business successfully. Next we have
intellectual resources which we focused on our brands, proprietary knowledge, and customer
databases. All the ingredients of our product are basically from our own recipes which the
special of our menu cannot be duplicated by others. Lastly, financial resources where the
business needs capital to satisfy our customers’ needs especially during seasonal demand. So, for
the initial business, we need to make a loan from the bank which we need to pay back with the
profit and revenue that we get from the business.
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2.8 Key Partnerships
In this business of Boba O Nomu, it has a few key partnerships which is the network of partners
and suppliers that make the business model work.
2. Equipment supplier
Our next key partner is an equipment supplier which comes from Chu Eng Company, and
Xuan Huat Equipment Sdn. Bhd. .The equipment suppliers include all the equipment
needed to produce our product that are required for storage space and food preparation. To
operate properly, our business required good management of storage space which includes
refrigerator, stainless steel working table, cooling rack. Other than that, we also need
equipment for drink making process which is automatic tapioca pearl maker, automatic
tapioca pearl cooker, Boba tea shaker cups, bubble tea automatic tea brewer and more
machinery such as bubble tea sealer machine, bubble tea shaker machine, bubble tea
fructose dispenser, coffee maker and bubble tea blender and extractor, which all the
machine needed to produce our product. All the machinery and electrical equipment need
to be maintained and fixed regularly to prevent sudden shutdown of the machinery that can
cause spoilage and result in failure. All the equipment needed is to keep the stocks and
ingredients in a proper management so that it would not damage.
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3. Packaging manufacturer
We also require a packaging manufacturer that is Viking Packaging Sdn Bhd. which could
help us in making the best packaging for our product. Packaging is important as it could
protect our product from damage, insects and protection during the distribution process.
We are using high quality plastic of packaging that is Low Density Polyethylene (LDPE)
which it is very flexible with high impact strength, good stress crack and impact resistance
and good chemical resistance. We are using transparency packaging which customers can
look through to our products and we also offer a variety of patterns and designs for
occasion and event. The Viking packaging Sdn Bhd will help us to produce plastic cups or
goodie bags for packaging. The variety design is enable the customer to choose a suitable
design for any occasion. The manufacturer will produce our packaging based on our
standard of products and it shows the brand identity of our product with complete
information and labeling which includes address, brand name, ingredients as a reference
for the customers to buy.
4. Advertising supplier
BH Printing and Trading is our main advertising supplier which helps us in promoting our
product to potential customers. Our supplier will include all the information of our
company and attractive designs based on their creativity. BH Printing and Trading is one of
the biggest suppliers of printed advertising which have a variety and colorful design and
they could make it faster as customers want. One of the advertising is we are using print
advertising as a form of marketing that uses physically printed media to reach customers
on a broad scale. They will be suppliers for banners, magazines, signboards, newspapers,
and flyers. People will interact with print advertising as customers spend more time
reviewing print ads, the amount of information a customer absorbs is higher with print ads
and viewers subconsciously see products in print ads as being valuable. The cost of printed
ads is quite high but it is an effective way to have a high level of response to the potential
customer about the uniqueness of our product.
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Key Partnership Item
Food supplier - Tapioca Balls
- Flavored syrup
- Flavored powder
- Full cream milk
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Advertising - Stand banner
supplier - Poster
- Media commercial
● The Important costs in business model is raw materials and equipment costs
● The most expensive cost in our key resources are baking equipment
● The expensive cost in our key activities is the delivery cost to retailer
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CONCLUSION
The Boba o Nomu involves selling boba drinks with a main taste of milk with a variety of
flavors. Our company will make sure that my customers will only get the high quality of boba
drinks that have been made by company secret recipes. After some research and analysis, we
conclude that there is a high demand in our company's products from the people. Therefore, we
see this as an advantage to grab the opportunities of making large profits. It is also an added
advantage because there are not many companies that can sell boba drinking products at a lower
price. In Boba O Nomu Cafe, we have 2 different sizes of cups. The size of a regular cup is RM
3 and RM 5 for a large cup. This makes it easier for customers to buy, carry and taste our drinks
anywhere and anytime even during busy times. In addition, it is reasonable and affordable
compared to other brands like Tea Live or Cool Blog that their prices are much higher than the
company’s drinks. Boba O Nomu also can assure the customers with high satisfaction for every
cup of the drinks. This is because only quality ingredients are being used in the drinks. Some of
the ingredients used are Lipton’s black tea and black pearl from trusted supplier, Suria
Supermarket. In conclusion, our company is highly confident that we are able to cater to the
needs of our target market. We hope that Boba O Nomu Cafe can be the best boba base drink
café in Tanjung Sepat and Melaka state. In 5 years, our company will try to expand our business
into several branches in Malaysia. Furthermore, we also hope that Boba O Nomu Cafe can
enter the international market in years ahead. We will give all of our efforts to ensure these
dreams come true.
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APPENDICES
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Business Model Canvas
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Key Activities
· Price reasonable and Key Resources Key Partnerships Cost Structure
affordable · Capital Raw Material suppliers. · Important costs –
· Do some researchers from · Staffs · Megah Jaya Raw materials and
other shops such as TeaLive · Drink Supply & Co equipment costs
and Cool Blog Equipment · Expensive cost in key
· Learn new recipes and s resources – Drinking
techniques to produce variety · Strategic Equipment Suppliers equipment
of selections of drinks location · Chu Eng · Expensive cost in key
· Regular Company activities - delivery
Customer · Suria cost to retailer
· High Supermarket
quality · Xuan Huat
raw Equipment
material Sdn.Bhd.
Packaging
Manufacturer
· Viking
Packaging
Sdn. Bhd.
Advertising Supplier
· BH Printing
and Trading
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