IDEAS FOR TODAY AND TOMORROW

GINGER KING
By:
1. Yusfarisyam Fauzi
2. Lee Sook Kuan
3. Noor Hazlina Ihzanullah Khan
Vision

To be the best and most

trusted ginger-based product
supplier in Asia region
Product Understanding
 Alpine Ginger Malaysian Sdn. Bhd.
 A ginger farm and a sales office in Kuala Lumpur
 Product line
◦ Edible food : Ginger Powder
◦ bulk pack
◦ bottle pack (RM 55 per bottle (shelf price))
◦ GiNGERLAB : Body care range
◦ Toothpaste (toothpaste with mint) (RM15)
◦ Shampoo (anti-loss) (RM45)
◦ Ginger fibre
SWOT Analysis
Strength Weakness
• Owns local ginger farm • Lack of R&D
• Simple/natural farming and • Lack of innovative products
processes • Lack of food safety and quality
• High quality ginger certification

Opportunities
• Growing awareness on ginger
health benefits
• Growing demand for healthy living
• Potential consumers around Asia
Region that understand the
benefits of ginger
Threats
• Unpredicted weather
• Numbers of competitors
• Customers perception on local
products
 Market analysis-Porter’s 5 Forces
EASE OF ENTRY (MODERATE)
-local and international brands THREAT OF SUBSTITUTES
-laws and regulations involved: (MODERATE)
approval from Ministry of Health, GMP, -lotions/balm
-low to moderate cost of setting up COMPETITORS (HIGH) -doctors
business Health supplementary
products from Blackmores,
GlaxoSmithKline, Amway, BARGAINING POWER OF
Herbalife, Dunia Herbs CUSTOMERS (HIGH)
BARGAINING POWER OF -variety of choices in the
SUPPLIERS (HIGH) market
-few suppliers -low switching cost
-Quality Bentong Ginger -low to moderate brand
loyalty
Target Market
-health-conscious customers
(maintain normal blood
circulation, strengthen immunity)
-those who are suffering from
stomach-related illnesses (boating, Medium income
group of all races Those who live in
flatulence, loss of appetite) cities and suburbs

-pregnant women

Adult and elderly Health-conscious

people
Goals and Objectives
Short Long
Term – Term –
First 3 Establishment of After 3
years “Ginger King” as years Asia Market
a well known
penetration
and trusted
brand
Products
creation which Diversification of
goal is to exceed ginger-based
customers' product
expectations.

Compliance and
Certification for
products and
processes
 Marketing Strategy
Empowering brand:
“Ginger King Powder” Products Market Place
“GiNGERLAB”
Innovation and creativity “Halal”
Gain certification and in the packaging
endorsement from accountable certification
for Muslim Medical
body for the product (premium packing)
market hall
Sponsoring in the
mainstream TV program Highest standard of
quality by improving Strengthen
the process -fairs and
Joining expositions and fairs to distributors expositions
promote brand relationship
-retail
Develop body care and target
More Corporate Social product line medical hall outlets
Responsibility (CSR)
involvement
Management Team
CURRENT EXPANSION

Farm Operation Sales and Marketing

• 10-12people Farm Operation
(normal season)
• 20-25 people HR Dept
(peak season)
• part time IT Development
• local and orang asli Promotional
Sales and Marketing R&D: Food Product, Body Care Product,
• 8 people (full time) Regulation
Financial Strategy and Analysis
Current Land Area
Based on 6 years soil rotation
10 Acres
1 year = 75 acres/6 = 12.5 acres
1 Acre = 3 tons of Ginger
5 Acres 1 kg of Ginger = 1 bottle of powder
10 Acres
Cost of 1 bottle = RM30
Selling Price = RM40
Theoretically annual income (only for powder) :
Revenue = RM40 x 37,500 bottles = RM1,500,000
Profit = RM10 x 37,500 bottles = RM375,000

Current Overall Revenue = RM1,200,000

(RM100,000/month)
Financial Strategy and Analysis
Funding
SME Government Scheme
- RM100,000 to RM3,000,000
- 4 – 6% of interest rate
- Up to 5 years of loan period
Capital Ending
Year Beginning Balance Total Payment Interest Paid
paid Balance
1 3000000.00 712189.20 180000.00 532189.20 2467810.80
2 2467810.80 712189.20 148068.65 564120.55 1903690.25
3 1903690.25 712189.20 114221.41 597967.79 1305722.46
4 1305722.46 712189.20 78343.35 633845.85 671876.61
5 671876.61 712189.20 40312.60 671876.60 0.00
Financial Strategy and Analysis
Land area after acquisition
R&D
1 Plot

Cash Asset
Marketing
Spending Acquisition

1 acre = RM80,000
4.5 Plot = RM3,600,000
10% D/P = RM360,000
Investment 20 Years loan = RM284,775/annum
 Financial Strategy and Analysis
Cash Flow Forecast
Total Target Target profit Investment
Asset Loan
Year R&D Marketing Commitment profit for for other Balance income
Acquisation Payment
& Spending Ginger plant (15%)
0 200000 360000 200000 0 760000 210000 90000 2540000 0
1 200000 284775 200000 712189 1396965 420000 180000 1743035 381000
2 200000 284775 200000 712189 1396965 510000 218571 1074642 261455
3 50000 284775 50000 712189 1096965 600000 257143 834820 161196
4 50000 284775 50000 712189 1096965 600000 257143 594999 125223
5 50000 284775 50000 712189 1096965 600000 257143 355177 89250
6 50000 284775 30000 0 364775 600000 257143 847544 53277
7 50000 284775 30000 0 364775 600000 257143 1339912 127132
8 50000 284775 30000 0 364775 600000 257143 1832279 200987
9 50000 284775 30000 0 364775 600000 257143 2324646 274842
10 50000 284775 30000 0 364775 600000 257143 2817014 348697
11 50000 284775 20000 0 354775 600000 257143 3319381 422552
12 50000 284775 20000 0 354775 600000 257143 3821749 497907
13 50000 284775 20000 0 354775 600000 257143 4324116 573262
14 50000 284775 20000 0 354775 600000 257143 4826483 648617
15 50000 284775 20000 0 354775 600000 257143 5328851 723973
16 50000 284775 10000 0 344775 600000 257143 5841218 799328
17 50000 284775 10000 0 344775 600000 257143 6353586 876183
18 50000 284775 10000 0 344775 600000 257143 6865953 953038
19 50000 284775 10000 0 344775 600000 257143 7378320 1029893
20 50000 284775 10000 0 344775 600000 257143 7890688 1106748
Financial Strategy and Analysis
Cash Flow Forecast
9000000

8000000

7000000

6000000

5000000

4000000

3000000

2000000

1000000

0
0 5 10 15 20 25
Conclusion
With a good and proper business plan, Ginger King brand has great
potential to be the best supplier for ginger-based product in Asia. The
growth can make good business sense - better brand recognition,
building value in the business for employees and customers, offering a
wider range of products and services to a larger geographical market,
and creating "economies of scale."

The entrepreneur is that endless challenge seeker. Once their small business is
humming along, growth is the next exciting challenge