FACULTY OF APPLIED SCIENCES: BACHELOR OF (HONS) APPLIED SCIENCES TECHNOLOGY ENTREPRENEURSHIP (ENT600)
“AQUA LAMP”
PREPARED FOR: ASSOC. PROF RAHIMAH SARMIDY
PREPARED BY: FATIN HAZIKA BINTI MOHD ARIF
2013677038
KHAIRUN NIESA BINTI ABDULLAH
2013633154
NOORUL AULA BINTI SAIEPUDDIN
2013647482
NUR ATIQAH BINTI THOMIRIN
2013658324
NURUL ATIKAH BINTI MOHKSIN
2013287322
DEC 2015
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY……………………………………………..……………...1 2.0 PRODUCT DESCRIPTION…………………………………………………..……….2 3.0 TECHNOLOGY DESCRIPTION……………………………………………………..4 4.0 MARKET ANALYSIS AND STRATEGY……………………………………………6 5.0 MANAGEMENT TEAM……………………………………………………………...12 6.0 PROJECT MILESTONE……………………………………………………………...18 7.0 CONCLUSION………………………………………………………………………..21 8.0 APPENDICES………………………………………………………………………....21
1. EXECUTIVE SUMMARY Nowadays, people are concerning about power saving. Our Aqua lamp will provide light without using electricity. We can save a lot of electricity Eco-friendly to the public community especially for students and backpackers. The simple design and discreet colours of Aqua Lamp make it very suitable for any space – bedroom, living room, bathroom or even your working environment. This lamp powered by water during chemical reaction. The main reason that makes this lamp so original is that it functions simply with the help of the power of water. Namely, this cordless lamp needs just a little bit of water and a hydroelectric battery, composed of a carbon stick covered with magnesium powder, to provide the charming light for the ambient. The water and the battery combined create a stellar electro chemical reaction, and that way they provide enough energy to light up the LED strips. There will have a variety of designs according to customers demand. We will introduce this new technology to public, in order to reduce electrical usage in domestic daily due to the global warming nowadays. The lampshade is made of sanded blow glass, on the top of it there is a part made of bio-plastic where the battery is set and where you pour the water, with an interesting steel switch, while the light comes from the warm white led strips. This Aqua Lamp has functions and advantages not found in today's common lamps, thus providing a competitive advantage over more established competitors.
2. PRODUCT DESCRIPTION
Nowadays, our Earth having global warming issue that affects all living things. Our company has come up with this idea in order to reduce this issue by reducing electrical usage in daily life. By taking the advantages toward this situation, the Aqua Lamp has been invented with special features. The Aqua Lamp features are consist of sanded blow glass, turbine, tunnel, battery, bio-plastic, steel switch, and warm white LED strips. First of all, the Aqua Lamp is made of sanded blow glass. This sanded blow glass that a forming technique in which molten glass is poured or ladled into a mold of compacted sand. A rough-textured granular surface results where the glass comes into contact. More interesting, this sanded blow glass come out with different and interesting design that can make people follow their own choice based on their interest. On the top of it, there is a part made of bio-plastic where the battery is set and where you can easily pour the water. The bio-plastic will covered up the battery and of course environmentally friendly which is only used the water to make the lamp light up.
In addition, other than battery that bio-plastic covered up, turbine also attached to the battery to generate electricity to light up the LED strip. The features completed with the present of turbine which important for the production of power electricity. The turbine is designated with little structure so that it is compatible with the size of Aqua Lamp. The rotation of the turbine generates the electricity and the current electric help the production of the light in the LED strip. A rotary mechanical device that extracts energy from a fluid flow and converts it into useful work. A turbine is a turbo machine with at least one moving part called a rotor assembly, which is a shaft or drum with blades attached. Moving fluid acts on the blades so that they move and impart rotational energy to the rotor. The high rate of flowing water causes the turbines to turn rapidly where this energy captured and converted to electricity. The advantage of this type of turbine is its high efficiency rating. If the waste heat is recovered by heat exchanger and used to power another generator, in a combined cycle configuration, the efficiency can be as high as 60%. In a cogeneration configuration where the waste heat is recovered and used to for space and water heating, the efficiency can be as high as 90%. Moreover, this unique lamp only needs just a little bit of water and a hydroelectric battery, composed of a carbon stick covered with magnesium powder, to provide the
charming light for the ambient. Energy produced by hydroelectric means has the added benefit of not using emission producing fossil fuels which will pollute the air. Hydropower functions by converting the energy in flowing water into electricity. The volume of water flow
and
the
height
(called
the
head)
from
the
turbines.
Hydroelectric power is a clean source of renewable energy where an adequate water source is readily available. The water and the battery combined create a stellar electro chemical reaction, and that way they provide enough energy to light up the LED strips. Warm white LED strip used in this Aqua Lamp is act as source of light. This warm white LED strips was chosen for this Aqua Lamp, is a comfortable white colour that is used in living areas, residential and bedrooms applications. In addition, this LED is the comfortable light ideal. Because of that, the light can produce warm environment that can give us a warm serenity. Steel switch plays an important role for this Aqua Lamp. The light comes from the warm white LED strips with an interesting steel switch that is function as power on and power off. Move to right to switch on and move it to the left for switch off.This is because, the steel switch that connected to the turbinewhich will give the hydroelectric battery to generate the electricity. Water will pour firstly to the tunnel and the steel switch can rotate to on the lamp. The tunnel is also important because it is function to provide a space for the water flows directly into the turbine. It is also for avoid from the water spilling out during the process of adding of water. Furthermore, with the present of tunnel, the water easily flows into the Aqua Lamp without any spilling problem. It is really efficient and easy to handle with. On top of the tunnel is the where water start to flow-in. The water flows in through the tunnel to contact with the turbine which is for generating the electricity to light up the LED strip. It is the starting process to light up the Aqua Lamp. This Aqua Lamp is very useful and compatible to any environment and also environmental friendly which the light source produces from the water. This Aqua Lamp help people with the design which very simple and productive to bring it anywhere. In addition, it also comes with the compatible size where you can easy to carry it anywhere and anytime you want.. On top of that, it discreet colours of Aqua Lamp make it very suitable for any space such as bedroom, living room, bathroom or even your working environment.
3. TECHNOLOGYDESCRIPTION 3.1 SANDED BLOW GLASS This Aqua Lamp is made of sanded blow glass that a forming technique in which molten glass is poured or ladled into a mold of compacted sand. A rough-textured granular surface results where the glass comes into contact.
3.2 STEEL SWITCH Based on the design of the Aqua Lamp, the steel switch that made of from stainless steel metal, will switch on the lamp when the water pour into the bio-plastic with the battery at the top of the sanded blow glass.
3.3 BIO-PLASTIC These bio-plastic is the place where the water should be pour . In this bio-plastic, there was a battery. These batteries will combined with the water and create stellar electro chemical reactions to produce the light.
3.4 WARM WHITE LED STRIP Simple as its own name and features, this Aqua Lamp will produce a warm white colour from the LED strip. To light up this LED strip, enough energy from the reaction of water and battery is required to make the lamp functioning.
3.5 TURBINE A turbine is a turbo machine with at least one moving part called a rotor assembly, which is a shaft or drum with blades attached. Moving fluid acts on the blades so that they move and impart rotational energy to the rotor. The high rate of flowing water causes the turbines to turn rapidly where this energy captured and converted to electricity. The advantage of this type of turbine is its high efficiency rating. If the waste heat is recovered by heat exchanger and used to power another generator, in a combined cycle configuration, the efficiency can be as high as 60%. In a cogeneration configuration where the waste heat is recovered and used to for space and water heating, the efficiency can be as high as 90%.
4. MARKET ANALYSIS AND STRATEGIES
4.1 CUSTOMERS Our product can be marketable for personnel use and also for companies such as houses, companies and also universities. Since our product is small it will be easier to carry around, most of customers that will use this product anywhere when they need light. This product can also be used like ‘torchlight’. The major purchasers are the houses at the town, universities students and also backpackers. This product is efficient to be used at the place that does not have electricity, besides it also can be used as decoration lamp for houses in urban area. Since the temperature nowadays is higher especially at the urban place compared to rural place, this product is more efficient to use and sell at the urban place in order to reduce global warming. This product is easily reached and receptive because we sell this product online and also wholesale through manufacturer’s representative. For those customers want to get this product, they can order through our official website or they can get it directly from our company. We were focusing on launching our Aqua Lamp in all retail in Shah Alam.
4.2 MARKET SIZE AND TRENDS 4.2.1 Price calculation No 1 2 3 4 5 6
Components Turbine LED strips Sanded blow glass Hydroelectric battery Steel switch Bio-plastic TOTAL
The percentage of mark-up cost is 15% Selling price = Mark-up +Cost per prototype = (15% × RM154) + RM 154 =RM 177 per unit
4.2.2 The 3 years of the current total market
Price (RM) 30.00 24.00 35.00 40.00 10.00 15.00 RM154.00
Number of total population in Shah Alam = 3 050 000 Middle class people in Shah Alam =
40 100
× 3 050 000 = 1 220 000
From the total population, 1% is our potential customers. = 1% × 1 220 000 = 12 200 customers
Average market size for LED lamp industry = (“Aqua Lamp”) + (Top two highest selling LED lamp in Malaysia) =RM ( 177 + 155 + 110) / 3 =RM 147.33 Total Market Size = RM 147.33 × 12 200 = RM 1 797 426
The demand market for aqua lamp within three years will increase. This may because of many people nowadays like new innovations that can reduce their cost to do something. The minimum price that will be spend for our product only RM 147.33, so as we can predict about each 1% of customer lived in Shah Alam will attract with our product. So the total market size for our product is about RM 1 797 426. This product also has potential profitability because it is a new innovation produced by us. As everybody knows, people nowadays love to use new things in order to follow the technology trend.
For our product which is aqua lamp, we already target the potential annual growth in order to sell this product to customer. Below is the estimation of total market size for second and third years:
Year Market size (%) Target Market Total Market size
2015 1 12 200 1 797 426
2016 1.5 18 300 2 696 139
2017 2 24 400 3 594 852
Total market size in 3 years = RM 1 797 426+ RM 2 696 139+RM 3 594 852 = RM 8 088 417
Furthermore, we also target houses in urban area as our potential market. After this stage shows its improvement, we want to expand the market size to the big organization to use this product. This product only being introduced inside our country, then if we get good response from customer we want to expand it to country inside Asia. Then we can continue to introduce it through worldwide.
4.2.3 Major factors affecting the market growth The major factors that affect market growth for “Aqua Lamp” generally come from the need to cut cost of electrical bills in daily lives. Since daily costs nowadays make everyone felt burden, aqua lamp would help to reduce the electrical cost. Furthermore, our product also more eco friendly compared to others since we only used chemical reaction to light up the lamp rather that use electricity. Beside that the opportunity that we use in order to introduce this product is capability push which is technology driven. Technology driven means we introduce new innovation or invention to customers that love new technology. So we can say that this product will be a success if we introduce it to the customer.
4.3 COMPETITION
4.3.1 Comparison between Aqua Lamp and other competitors PRODUCT
Aqua Lamp
Arka Lamp
ThorFire Camping LED Lantern USB
PICTURE
PRICE PERFORMANCE
RM 147.33 RM 155.00 RM 110.00 A little drop of The Arka Lamp can The ThorFire Camping water into the Aqua be push the head LED Lantern USB need Lamp will generate down to transform it to energy to produced into light
a
pull it to be a led
180-lumen lantern, and collaspe it
flashlight or activate to be a mini flashlight the red-light mode to
STRENGTHS
Do
preserve night vision used 3 in 1 lamp (lantern, needs only little room in
not
electric to produce
USB
light
flashlight)
(power
saving) Only need a little drop of water
Hang
charger, it
5.9oz in weight (low) from
a
branch or hook or set up on a flat surface
WEAKNESS
backpack and pocket
with
its
foldable feet The light produced Need to be charged Need to be charged is not very bright
before used
4.3.2 Advantages and disadvantages of Aqua Lamp
before used
All of the products have their own advantages and disadvantages based on several significant aspects that will affect the decision of the customers to choose which company provide the best products or services. Companies from the outside of the Malaysia might have disadvantages on their product pricing since price is one of the most important aspects that will be considered by the customer to purchase products. Customers will search for company that offers lower price but with the same quality. As for the local competitions, we do not say that their products have disadvantages if compared to our product. But since our product has the new technology that can produced light with only using a little drop of water, we can say that our product has advantages if compared to our other local competitions. We depend on the capability push or the technology driven opportunity concept to make the customers choose our product.
4.4 MARKET SHARE AND SALES Based on the acceptance of our product which is Aqua Lamp by customers, we can predict the market share for our product for 3 years. For assumptions, we had assumed that the increase of market share was 10% for every year. As we can see below on the table, the total sales increase until RM269 613 in 2017.
First year: 2015 Total market share
= 10% of total market size = 10% x RM 1 797 426 = RM 179 742.60
RM 179 742.60 / RM 177
= 1 015 units
With estimated RM 179 742.60 of sales and market share of 10%, Aqua Lamp will enter the market
YEAR MARKET SHARE SALES (UNITS) SALES FORECAST
2015 10 % 1015 RM 179 742.60
2016 13 % 1320 RM 233 666.38
2017 15 % 1523 RM 269 613.90
4.5 MARKET STRATEGY 4.5.1 Overall marketing strategy We will trigger the interest of customers to find out more and try our product. And when they satisfied with the functions and features of our products, they will purchase it. This product had been design to be user friendly. It’s easy to use power saving.
4.5.2 Pricing We will make sure that this Aqua Lamp is reasonable in price to the market. We also will improve our product from time to time by follow the latest technology. The price of our product is fixed wherever our product is sold. 4.5.3 Service and warranty policy This product will be covered by 3 years warranty. And the failure is only covered if it is because of system and mechanical failure only, not because of customer broken it up. If there are any compliments, enquiries or complaints, customers can refer to our company website for further action. 4.5.4 Advertising and promotion This is the commercial style in promoting our product. We will use our technology era by promoting Aqua Lamp through internet and multimedia. In additions we also will
advertise it on banner or sign board and business card. We also build our company website for the Aqua Lamp to ease our customers and to attract new customers to find out more about our product. To let the customer happy to buy our product we will also provide free give to customer. Examples of our free give are mini torchlight (thumb size) and sweets. The other free give will be added from time to time. 4.5.5 Distribution We will distribute our products to the retailers directly from the manufacturer from our factory. So, the customers whose want to buy our Aqua Lamp do not need to deal with us, but with the retailer.
5. MANAGEMENT TEAM 5.1 ORGANIZATION TEAM 5.1.1 Key management roles in the company KEY MANAGEMENT ROLES
NAME
CHIEF EXECUTIVE OFFICER ADMINISTRATIVE MANAGER FINANCIAL MANAGER MARKETING MANAGER OPERATION ENGINEER
FATIN HAZIKA BINTI MOHD ARIF NUR ATIQAH BINTI THOMIRIN KHAIRUN NIESA BINTI ABDULLAH NOORUL AULA BINTI SAIEPUDDIN NURUL ATIKAH BINTI MOHKSIN
5.2 KEY MANAGEMENT PERSONNEL 5.2.1 Career highlights NAME AND POSITION CAREER HIGHLIGHTS FATIN HAZIKA BINTI MOHD ARIF Qualifications: (Chief Executive Officer) Degree in Mechanical Engineering, Ohio University, US Master in Mechanical Engineering, Seoul National University
Skills: A visionary and full of energy to drive towards success Ability to manage employees efficiently Experiences: Senior Vice President and Treasurer of Dutch Lady Milk Industries Bhd General Manager in Shell Sdn. Bhd NUR ATIQAH BINTI THOMIRIN (Administrative Manager)
Qualifications: Degree in Business Administration, University Technology MARA, Malaysia. Master in Business Management, Wisconsin University, USA. Skills: Able to manage workers Hardworking person Experiences: Administration Executive at IWK Administration Senior Executive at TNB
KHAIRUN NIESA BINTI ABDULLAH (Financial Manager)
Qualifications: Degree in Accounting, University Technology MARA, Malaysia), Master in Applied Finance, Macquarie University, Australia) Skill: Able to manage financial efficiently Experiences: Financial Executive at NESTLE Senior Financial Executive at BIMB
NOORUL AULA BINTI SAIEPUDDIN (Marketing Manager)
Qualifications: Degree in Business Administration, University Technology MARA, Malaysia. Master in Business Administration, Boston University, USA Skills: Able to predict the market growth Able to conduct a good marketing skills to
increase product sales
Experiences: Sales Executive in Panasonic Sdn. Bhd. Operation Manager in Hang Seng Electronic NURUL ATIKAH BINTI MOHKSIN (Operation Engineer)
Qualifications: Degree in Mechanical Engineering, University Technology MARA, Malaysia Master in Mechanical Engineering, Seoul National University Skills: A visionary and full of energy to drive towards success Able to manage and direct operations team to achieve success Experiences: Sales Executive in Hang Seng Electronic Operation Manager in Panasonic Sdn. Bhd.
5.2.2 Duties and responsibilities of management team NAME AND POSITION FATIN HAZIKA BINTI MOHD ARIF (Chief Executive Officer)
DUTIES AND RESPONSIBILITIES To communicate effectively with shareholders, employees, Government authorities, other stakeholders and the public To lead and oversee the implementation of the Company’s long and short term plans in accordance with its strategy. To ensure that the Company maintains high standards of corporate citizenship and social responsibility wherever it does business. To ensure effective internal controls and management information systems are in place To ensure the company is appropriately organized and staffed and to have the authority to hire and terminate staff as necessary to enable it to achieve the
approved strategy. To lead, in conjunction with the Board, the development of the Company’s strategy. NUR ATIQAH BINTI THOMIRIN (Administrative Manager)
Deals with the entire administration task and at same time as the Public Relation in the company Responsible of selecting workers in company Act as an assistant manager for the administration side
Ensure all the fixtures and fitting always enough for operation Updating the staff handbook and personal records regarding the salary and payroll negotiations Gathering information from other departments and employees KHAIRUN NIESA BINTI ABDULLAH (Financial Manager)
Deals with the bank, lenders, etc, (to seek money) To manage money and watch over the assets of the company Responsible for knowing how much the product is expected to cost and how much revenue it is expected to earn so that the company can invest the appropriate amount in the product Must overcome the financial problem if appears.
NOORUL AULA BINTI SAIEPUDDIN (Marketing Manager)
To conduct market research and analysis of the product To observe market size and trend of the product To estimate market price and share of the company To organize marketing strategy so that the sales of the product can be increase Exploring ways of improving existing products and services, and increasing profitability
NURUL ATIKAH BINTI MOHKSIN
Make sure that the quantity and
(Operation Engineer)
quality of the product is at highest level
Look for the supplier to supply inventories and raw materials
Monitor activities related to process of products Maintain accurate and clear documentation for operational procedures and activities Support operational risk and audit process for the purpose of preventive maintenance Manage work assignment and allocation for staff
5.3 MANAGEMENT COMPENSATION AND OWNERSHIP NAME AND POSITIONS FATIN HAZIKA BINTI MOHD ARIF (Chief Executive Officer) NUR ATIQAH BINTI THOMIRIN (Administrative Manager) KHAIRUN NIESA BINTI ABDULLAH (Financial Manager) NOORUL AULA BINTI SAIEPUDDIN (Marketing Manager) NURUL ATIKAH BINTI MOHKSIN (Operation Engineer)
MONTHLY SALARY
SHARE OF OWNERSHIP (%)
AMOUNT OF EQUITY INVESTED
RM 7 800
26
RM 39 000
RM 6 000
20
RM 30 000
RM 5 400
18
RM 27 000
RM 5 400
18
RM 27 000
RM 5 400
18
RM 27 000
5.4 SUPPORTING PROFESSIONAL ADVISORS AND SERVICES
FATIN HAZIKA BINTI MOHD ARIF (CHIEF EXECUTIVE OFFICER) KHAIRUN NIESA BINTI ABDULLAH (FINANCIAL MANAGER)
NUR ATIQAH BINTI THOMIRIN (ADMINISTRATIVE MANAGER)
NOORUL AULA BINTI SAIEPUDDIN (MARKETING MANAGER)
NURUL ATIKAH BINTI MOHKSIN (OPERATION ENGINEER)
6.0 PROJECT MILESTONES
ACTIVITIES
DATE-DEADLINES
DESCRIPTION
Project Initiation
10 – 15 SEPTEMBER 2015
Develop idea for the product.
Product Analysis
16 - 25 SEPTEMBER 2015
Analyse product in market if existent.
Design
and
Technology
Development of Product
26 SEPTEMBER –
Create the product appearance
5 OCTOBER 2015
and the technology will be used and equipped to the product.
Market
Analysis
and
6 – 25 OCTOBER 2015
Strategies
Perform research about the market
and
the
potential
customer. Estimate the price and market strategies that going to be used.
Management
Team
25 – 31 OCTOBER 2015
Organization
Define the role and assign the team member responsibility.
Analysis of Financial
1 -5 NOVEMBER 2015
Perform and estimate the cost for the materials that will be used for the production and other things.
Signing of Distributors and
6 – 15 NOVEMBER 2015
Dealers
Find vendor or dealer who trusted and also provide with low cost services while waiting for proposal approval.
Ordering of Materials in
16 –20 NOVEMBER 2015
Production Quantities
Buy tools and other related component
to
produce
the
product.
Production
Development
21 – 30 NOVEMBER 2015
Producing the product started.
started
Lunching Prototype
the
Product 1 DECEMBER 2015
Present the prototype to Shareholder.
Continue
the
production 2 –15 DECEMBER 2015
Continue
development
the
production
development to the market.
Product promotion
16 – 22 DECEMBER 2015
Make
product
promotion
through internet, banner, flyers, media socials and other. Launch
Aqua
Lamp
market Business maintenance
to 23
DECEMBER
–
24 Launch product into market
DECEMBER 2015 25 DECEMBER - ongoing
Maintain the business in the market
7.0 CONCLUSION
As conclusion, there are many types of lamp that produced in our surrounding technology. It also become one of the essential utilities that need at all placed we go especially at our home and during travels. With the present of Aqua Lamp, we can save electricity and also money from paying high bill of electricity used in home.
8.0 APPENDICES ORGANIZATION CHART
FATIN HAZIKA BINTI MOHD ARIF (CHIEF EXECUTIVE OFFICER) KHAIRUN NIESA BINTI ABDULLAH (FINANCIAL MANAGER)
NUR ATIQAH BINTI THOMIRIN (ADMINISTRATIVE MANAGER)
NOORUL AULA BINTI SAIEPUDDIN (MARKETING MANAGER)
NURUL ATIKAH BINTI MOHKSIN (OPERATION ENGINEER)
