CHAPTER 3: SEVEN-APPROACH BUSINESS MODEL

3.1

Introduction to Seven-Approach Business Model

Seven-Approach Business Model is a plan that shows how all of the different major aspects
of a business work together to generate a profit. The ultimate objectives of this business plan
is to serve as a guideline for the transformation building of small enterprises into bigger
enterprises. Figure below shows the seven approaches and their respective key tools:

Figure 1: Seven-Approach Business Model

3.2

Seven-Approach Business Model

Approach 1: Set Out Clear Goals

To be a successful entrepreneur, it is essential to set a clear goals and objectives before
starting any business. These goals and objectives serve as guideline and motivation for the
entrepreneur or the company to work hard towards the goals set earlier.
Before decided to set up Chillex Caf, the owner, Mr Luqman first set vision, mission and
objectives for his business as follows:
(i)

Vision:
We serve you variety of local foods in town, we do also promise to provide the
most chilling and relax atmosphere for you to chill out.

(ii)

Mission:
To constantly improve the food quality and environment setting.
To open more and more food chains.
To go beyond food industry by taking part in community service programs like
establishing education chains in the future, if possible.

(iii)

Objectives:
To follow family business.
To earn money and eventually contribute back to society.

From Mr Luqman personal point of view, a successful caf must have a distinguish concept
which can differentiate his caf from others. He always wanted his caf to be a preferable
place for the customers to chill and relax. He thinks that it is very important to give a good
impression to the customers as it ensures their loyalty. These had become his basic market
planning when establishing Chillex Caf.
His target of customers are university students and the residents from the Bandar Seri
Iskandar neighbourhood. This is also his initial intention of setting the caf at this area as the
food demand is relatively high.
The start-up cost for this caf is RM 80,000. The money was spent mainly for renovations,
purchasing dining tables and kitchen apparatus. For every month, there will be cash outflow.
The rental fee for the shop is RM 2500 and the salary for a waiter is varies from RM 900 to
RM 1500, while for a chef, the salary is RM 1500 to RM 3000. Besides, money needs to be
spent to purchase the daily ingredients for food. So far there is no major maintenance fee

required. Overall in the end, the profit of the caf (after subtracting the cash outflow) is
roughly RM 15,000 to RM 30,000.

Approach 2: Attract and Please Customer

By having all marketing planning above, the next step is making all those planning into a
realistic move. To checking the feasibility of his marketing strategies, Mr Luqman put his
effort to do some surveys and studies of present caf and restaurant around Bandar Seri
Iskandar for example Secret Recipes, Havoc Caf, Burgerbyte and so on to know each
individuals strengths and weaknesses. He also travelled to the Ipoh city to visit all those
well-established caf such as Plan B. By doing so, he had a clearer mind on how his future
caf will look like.
Mr Luqman also applies the concept of 4Ps of Marketing Mix. It seems really basic but it is
important to redefine marketing. The summary of the concept is as follows:

Figure 2: 4Ps of Marketing Mix

The first P is Product. Product is an item or service that satisfies a customer need or want.
Just like other typical cafs and restaurants, Chillex Caf serves food and beverage. What
differentiates Chillex Caf from others is the variety of food and beverage available. The

choice of food varies from local to western and to Thai, for example Nasi Goreng Kampung,
Chicken Chop and Nasi Goreng Thai. Same goes to drinks, Teh Ais, Air Banding, Mocha and
a lot more available in this caf. As service is also one of elements in Product, the workers
here provide excellent, fast and friendly services. In addition, Chillex Caf, as the name
suggests, is a nice place for the customers to chill and relax themselves here. There are
wonderful channels and movies played in the caf so that the customers can relax while
enjoying their food.
The second P is Price. Price is defined as the amount a customer pays for a product or
service. Mr Luqmans main target of customers are university students and residents around
the neighbourhood. Therefore, the price set in the menu is affordable. It varies from RM 3.00
to RM 29.00. The price element is definitely a strong point to keep the customers loyal.
The third P is Place. Place is where transactions take place and how customers access the
product or service. The location of Chillex Caf is considered strategy as it is located at the
centre of the universities and residential area. Within radius of 1 km, there are two
universities which are Universiti Teknologi PETRONAS (UTP) and Universiti Teknologi Mara
(UiTM) Perak. It is also in walkable distance for the students who stayed at the UTP outside
campus. Besides, Chillex caf is near to its daily ingredient suppliers, Tesco and Billions.
Therefore, it is very convenient for the customers and the workers.

Figure 3: Location of Chillex Caf

The last P is Promotion. Promotion is communications used to tell customers about the
product or service. It includes advertising, public relations and personal sales and promotion.
In the era of technology, the most effective way of promoting the newly opened business is
through the social media. The Facebook and Instagram page has been created as initial
step to acknowledge people of the presence of the caf. For each customer who visited this
caf, they will automatically become the sale person that promote it to others because of
the good impression.

Figure 4: Chillex Concept Caf Facebook Page

Figure 5: Chillex Concept Caf Instagram Page

The interior design of the caf is very pleasant and said to be following the present trend as
there are plenty of unique wall art drew by one of the the UiTM lecturers. There are standard
seats and also chill corner. Overall it is spacy and comfortable. The food presentation is
also good and follows certain high standard.