Market Analysis : Easy Kit PDF

Module Name
[Planning For Growth]
Submitted To:
[U Wai Yan Paing Zaw]
Submitted By:
[Numaya Karim, Kaung Myat Hein, Khant Min Zaw, Moe Hein Kyaw,
Nandar Kyaw Zin, Nway Nu Wai, Thet Hnin Hnin Hsu]
Student ID:
[2018A7910, 2018A9980, 2018A5874,2018A8810, 2018A3799,
2018A9629, 2018A9221]

Contents
Executive Summary...................................................................................................... 4
Business Description................................................................................................. 4-8
Mission, Vision, Objective, Competitive Advantage, Critical Success Factors,
Competitors, Collaborators
Industry & Market Analysis......................................................................................8-16
PESTLE, SWOT, Porter's Five Forces, Value, Brand Essence & Promise, Brand
Identity, Segmentation & Targeting, Positioning, 7Ps of Marketing
Human Resources Strategy...................................................................................16-20
Recruitment & Selection, Training & Development, Performance Management, Reward
System, Job Description/Job Specification, HR KPI's12
Organisation Chart.......................................................................................................20
Operations & Manufacturing Plan.........................................................................20-22
Description, Schedule & Timeline, Supply Chain, Location & Facility, Quality Assurance,
Technology, Operations KPI's
Finances.................................................................................................................. 23-24
Key Milestones........................................................................................................24-25
Strategic Risks............................................................................................................. 26
Exit Strategies.........................................................................................................26-28
Work Cited..................................................................................................................... 29
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SCENARIO 1
Executive Summary
Easy Kit is a meal subscription service that is unique and first of its kind in Myanmar,
offering fresh farm to table style organic ingredients in pre portioned styled boxes delivered
directly to the customer’s doorstep. The company offers a variety of menu options based on
seasonable availability, dietary restrictions and customer’s cooking ability. The company is co-
owned and managed by seven individuals in their respected fields and supports local producers
and promotes sustainable living and consumption based in Yangon with a processing facility
where employees are trained to methodically process and package ingredients to be set out for
delivery by in house drivers. The total start-up costs will be MMK70, 000,000, from which
MMK40, 000,000 of which will be contributed by seven owners as investment capital and
remainder will be secured as loans. Easy Kit’s future exit strategy would be to either merge or
acquire an existing established restaurant to gain a larger market presence and increase sales.
Business Description
Easy Kit’s Logo
Figure 1.1
Easy Kit is a meal subscription service launching in 2020 providing fresh and high quality
ingredients along with detailed recipe for a reasonable price delivered to the customer for home
cooking.
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The company’s ownership is split between 7 partners, Kaung Myat Hein, Khant Min Zaw,
Moe Hein Kyaw, Nandar Kyaw Zin, Numaya Karim, Nway Nu Wai and Thet Hnin Hnin Hsu who
handle different aspects of the business.
Mission
The mission of Easy Kit is to promote home cooking by providing fresh and healthy
ingredients sourced locally, seasonally and sustainably in easily prepared portioned manner for
customers delivered right to their doorstep. Easy Kit wants to educate clients about farm to table
lifestyle to support local farmers and reduce food waste in a sustainable way.
Vision
Easy Kit’s vision is to “provide quality and nutritious food to your door to streamline your
life” with the benefit of a first mover advantage in the new market of Yangon.
Objective
 Easy Kit’s core concept is to delivery ingredients and recipes to clients at home in a
safe and timely manner with temperature and quality control checks in place.
 Easy Kit will realistically achieve their target by catering to people’s situation and
health concern as well as modify recipes to target market tastes. The target for the
company is to reach their goal in 2 years from the launch date
 Easy Kit will know by reaching their target within a year after entering the market and
achieving breakeven on costs to know where to expand and enter new markets.
Competitive Advantage [Differentiation]
Easy Kit has to compete with existing grocery stores and food delivery systems to carve
out a place in the market.
 By having a very personal relationship with clients with their ordering system and
open communication and feedback service so there is direct data access that
impacts the supply chain.
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 With recipes and items that are popular and demanded being repeated and menus
created aimed at the target market tastes. This allows for bulk purchase advantage
and specific purchases to occur that reduces waste and costs that occur in food
industry since customers are only “on demand”
 By having an established set menu with no customization it streamlines the system
and further eliminates costs.
 As meals are prepared only when orders are confirmed and right before delivery
items are purchased fresh and delivered without concerns of long term storage
Critical Success Factors
 One of the brand’s values is having high quality organic produce to offer to their
clients which requires time and effort to personally source local farmers who meet
the established standard for quality and grow the necessary produce needed as well
as checking the produce after delivery in the facility before preparing for distribution.
 By creating a farm to table concept requires educating customers on the supply
chain of the produce and meat that they consume and begin to foster a healthy
relationship with their environmental footprint and how to reduce their impact on the
earth.
 Reasonable prices is also a value held by the brand since by buying directly from
farmers eliminates the middle man it is directly profits them and they are able to
reinvest into their produce.
 By buying locally reduces carbon emissions that occurs when food travels from
across the planet before it arrives on your plate.
 Buying the amount necessary to meet orders minimizes food waste and increases
land sustainability.
Competitors
Easy Kit’s faces a variety of competitors in the market such as food delivery services,
prepackaged meals, grocery & convenience stores with in house hot food options, and moving
food stalls.
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Figure 1.2 Figure 1.3 Figure 1.4
Yangon Door2Door is the premier online food ordering and delivery service in Yangon.
YD2D’s website hosts menus from a broad range of Yangon restaurants. YD2D relays the
orders to the appropriate restaurant, picks up the completed order from the restaurant, and
delivers the items to the customer. YD2D service is available 12 hours a day / 7 days a week.
Food Panda is a global app newly entered in Myanmar allows customer to order anytime
and from anywhere in Myanmar. This makes ordering food online simple, fast, and convenient,
customers type in a city and area, and FP will show available restaurants. Once customer have
chosen a restaurant and ordered they are able to track the delivery within the app.
City Express is a local convenience store chain established in Myanmar which offers
prepared meal deals consisting of cooked rice and a curry prepared daily and served hot to
customers. These items are cheaply priced and readily available for consumption. The
downside to this type of food source is that limited items are provided and are repetitive and
requires in person purchase.
Collaborators
By establishing and maintaining several strategic alliances with the suppliers and
collaborators is essential for the type of business Easy Kit wants to be and launch industry
standards.
One of the main collaborators for the company will be the farmers who grow and supply
the organic produce chosen by Easy Kit to prepare and distribute to the customers. Having an
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intimate relationship with the produce supplier is critical for the success of Easy Kit as the
company brand is built on using fresh organic local ingredients as much as possible and the
benefits associated with it.
Another collaborator for the company is fishmongers and butchers who provide the
meats that are used in recipes by Easy Kit. These are ingredients also need to match the quality
and sustainable standard set by the company to ensure that customers receive the best
available to them. Sustainable fishing is the only future for the earth to ensure food for the future
and promoting local fish will appeal to customers as well.
Having a supplier that uses environmentally friendly materials for packaging the items in
the kit is essential as well since sustainability is a pillar in Easy Kit’s philosophy. Using the
correct packaging will increase lifespan of the ingredients as well as reduce waste that harms
the planet.
Industry & Market Analysis
PESTLE
Political
In the world where Covid-19 has rampaged through entire countries, the political
situation is not as it once was. There are changes in food and safety regulations being
implemented by governments that will directly impact Easy Kit’s future and with the election
looming in the near future also plays a role on the market and social sphere.
Economics
Due to the current situation, it has becoming exceedingly difficult to find resources from
abroad with quarantine and supply chain shortages. However Easy Kit’s entire business model
is to source most of the ingredients and materials locally. Buying locally helps boost the
economy and supports the farmers whose regular income sources have been compromised and
safeguards farms for the future. This also reduces transportation costs and allows for money to
circulate in the national economy freely without it leaving the country.
Social
Social distancing regulations due to Covid-19 has changed the fabric of society as we
know it. Therefore the lifestyle of people have changed to adapt and maintain distance to
ensure their health and safety. Everything that can be done over the internet or at home is
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becoming the norm with social media booming to maintain social ties. The massive societal shift
to home stays means it’s the right time for Easy Kit to be introduced as it is conveniently
delivered to the customer’s door and easy to cook as people are forced to stay indoors.
Technology
Technology is key in every business as it is the best way to reach customer bases
especially in this current market situation. By mobilizing existing social media platforms to
promote product and sell is the best start up system for the company such as a Facebook page
and Instagram to share recipes and customer interactions. With the launch of a mobile app as
the next step of innovation and for long term goals having a social media/technology team is
key.
Legal
At this moment, government regulations state that businesses can only offer takeaway
meals and be open from 4am to 12 pm with a local curfew in place along with other Covid-19
regulations. Any and all found breaking these rules will be facing harsh penalties. Easy Kit’s
model of being an online presence and made to order subscription service will be advantageous
in this scenario. Staff will be taking precautions and wear masks whenever any human contact
is required especially during delivery times and only essential staff will be on premises while
others work from home.
Environmental
In this day and age, people have become more aware and careful about their
environmental impact due to the series of natural disasters and impact of pollution on the planet.
There has been a shift towards using recyclable products to reduce waste which Easy Kit will do
to show situational awareness of the environment and attract customers.
SWOT
S
 Simple step by step instruction lead to
less stress for customer,
 A variety and interesting foods with
measured ingredients and recipe
 Home delivery of all required
ingredients
W
 No background infrastructure existing
 Recipe can be easily copied by
possible competitors,
 Lack of trust among the people.
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 One stop shop for meals
O
 First mover advantage and Competitive
advantage for the innovative and
creative idea
 Increasing stay at home situations for all
in COVID-19 period.
 People are getting used to using online
shopping to fulfil their daily needs
 Ready for capital to expand business.
T
 Restaurants and grocery stores
offering delivery systems
 Ingredients wasted because of
temperature change for perishable
goods.
Porter’s Five Forces
Threat of new entry(low) – Capital requirements in this industry are fairly high for SMEs and
product differentiation is vitally important in the meal kit industry where the company offers
differentiated food bundle with recipes rather normal prepared food. It is also important to focus
on advertising and customer services in todays market thus expenditures and technology for
research and development costs are high for new entrants. All of these factors make for strong
barriers for new entrants therefore it is fairly difficult to enter. Easy Kit will face a low threat of
new entry if the company continually releases differentiated products. But there is a problem as
time goes on, other competitors can copy easily Easy Kit’s business model.
Bargaining power of suppliers(low) – Suppliers do not have much say in the prices of local
ingredients as there are many in the market with idential products making it theortically possible
for Easy Kit to switch easily. This weak bargaining power will make the company an important
customer for suppliers for the relationship is key for the business survival for both the supplier
and Easy Kit but the supplier must provide appropriate prices for avaliable product.
Whereas there are a lot of suppliers in the food industry, Easy Kit has fewer direct
competitors. Buyers have a little option to choose and not much control over prices. Therefore
buyers can’t switch easily to other options. It makes the buyer power a weaker force in industry.
When the buyer power is weak, it makes Easy Kit less competitive. But as number of
companies increase in the industry, buyer power will increase.
Threat of substitute products(medium) – There are numerous products in food industry
where customers can eat anything instead of ordering a meal kit such as home delivery from
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restaurants. Easy Kit has to watch out for cheaper direct substitutes that become avaliable
because they will be competition. Easy Kit has to compete with differentiated products and
lower price than competitors in order to decrease threat of substitution by providing higher
quality and lower price, customers will choose the company.
Competitive rivalry (low) – There is very little rivalry among firms in food industry because
meal kit companies are very rare in Myanmar. There are no direct competitors as a meal kit
service but there are numerous food service in this industry. By targeting the existing customers
of these other services requires differentiation and and new recipes and high quality ingredients
to retain competitive advantage. Customers will looking for best taste with lower price and will
compare to other services. Therefore Easy kit must have this competative advantages in order
to prevent losing customers.
Values
Easy Kit has values to provide fresh and quality ingredients sourced sustainably from
farms and bring them to customers tables in a manner to make home cooking simpler and
approachable for all levels of cooks.
Brand Essence & Promise
Easy Kit’s entire brand is built on the principle of bringing the customer organic farm to
table ingredients to streamline their cooking experience. This requires sourcing produce from
farmers who grow small batch organic ingredients seasonally to ensure soil health and the best
possible growing conditions for quality goods. Along with buying meats from butchers and
fishermen who source their supply in sustainable methods to ensure food for future generations
and reduce global impact. By combining all these ingredients in a simple pre portioned system
allows for the customer to open the box and immediately start their cooking process. Easy Kit
promises constant innovation evolution of menus for current and future customers while
promoting sustainability and clean living with their products.
Brand Identity
Easy Kit’s brand identity is providing high quality farm to table sourced ingredients
hassle free to those wishing to learn how to cook and eat healthy at home.
Segment & Targeting
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Finding the right market segment and targeting it in the appropriate manner plays an
important role for the commercial success of Easy Kit’s launch and future success.
Demographically, young professionals and fresh graduates between the ages of 18-25
who are just starting off in life after leaving home are busy and are usually not very good cooks.
These potential customers are willing to pay for the service to have meal subscription service
that provides all the necessary items and recipe required to prepare a home cooked meal
without the effort of going shopping. This is a step up from ordering takeout and provides them a
life skill that they can use for the rest of their lives and is significantly healthier as the younger
generation are more environmentally aware and conscious about their carbon footprint and
waste.
Positioning
For young professionals, and students who are wishing for readily prepared provisions,
Easy Kit is the meal subscription that provides fresh local produce and recipes to your door.
Unlike grocery stores and restaurant take out, our produce provides a simple but educative
system to teach new cooks how to prepare meals and allow for familial bonding as well as
passing on memories with a kit including pre portioned ingredients and a recipe guide.
7Ps
Product
Easy Kit’s meal plan provides a variety of seasonal based recipes in three levels of
easy, medium and difficult with options for each level for which gives customers a choice for
what best suits them. Each recipes comes with enough ingredients for two servings as the
business intends to not waste food, therefore food preparation is created with systematically.
Figure 1.5
Figure 1.6
Figure 1.7
Organic and fresh
ingredients are used by Easy
Kit combined with sauces and marinades that are not offered by competitors are packaged in
prepared boxes that are designed to be comfortable transported and insulated. Traditional and
local favorite recipes such as mont hin khar, mala xiang guo can be chosen along with
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european classics for variety. The company sources all produce locally and uses
environmentally friendly boxes that are recyclable.
All the subscription boxes come with a tracking number and a customer satisfaction
warranty to ensure that the best possible ingredients are delivered in the best possible manner.
Easy Kit will continually release new product and recipes to attract and retain customers and
emphasize on packaging and convenience.
Price
Ingredient in Package Selling Price
per unit Meal Selling Price
per unit
Spaghetti Bolognese 8,000 Spaghetti Bolognese 9,000
Roasted Chicken &
Potatoes 10,000 Roasted Chicken &
Potatoes 11,000
Pan-Fried Dumplings
with Pork 5,000 Pan-Fried Dumplings with
Pork 7,000
Vegetable Stir Fry with
Noodles 2,500 Vegetable Stir Fry with
Noodles 3,500
Grilled Chicken &
Steamed Vegetables 6,000 Grilled Chicken &
Steamed Vegetables 8,000
Pan Seared Shrimp with
Salad 8,000 Pan Seared Shrimp with
Salad 9,000
Subscriptions are offered in bundle prices where all meals are packaged together and
sold at lower prices than total of individual box.Easy Kit has weekly, monthly or single purchase
plans with discounts based on purchase choices. Penetration pricing is initially set low to quickly
reach target wide customers to get the big market share and initiate word of mouth. This
strategy can expect getting more and more market share with new menu regularly and then
premium price will charge for some special menus.
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Place
Easy Kit will begin selling its product through social media pages such as facebook and
instagram to gain interest and a following before launching into application/websites such as
FoodPanda or Grab with the goal of using their own in house platform.
Location
Targeted location Population
Yankin 70946
Thingangyun 209486
South Okkalapa 161126
North Okkalapa 333293
Thakayta 220556
Tamwe 165313
Pazuntaung 48455
Sangyoung 99619
Kamayut 84569
Dagon 25082
Bahan 96732
Total Market size 1515177
Target segment (60%) 909106
Based on target market research prioritizing townships such as Bahan, where a
wealthier demographic exists along with Sanchaung where a larger young professional
demographic is based will be beneficial.
Promotion
The company is going to use social media and targeted ads to promote the brand with
Facebook, Youtube and TV program(Master Chef). And then Easy Kit will give promotion by
offering beauty wooden spoon and mini box (Figure 1.4,1.5,1.6)whenever customer purchase
over 1 month subscription.
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Figure 1.8 Figure 1.9 Figure 1.10
These designs will be depend on the weekly or monthly subscription. Easy Kit will give
another promotion in some seasons like Thingyan and Thadinkyuat, by drawing lucky draw such
as buy one get one and some festival ticket. Easy Kit will gives sponsers for the food vloggers
and Masterchef members in order to get customer awareness through their famous.
People
Hiring the right staff is key for the success of the process as well as training them the
right way to ensure smooth operation from arrival of produce to customer service to delivery to
meet sale targets. In order to have the the best menu available, the company will hire cooks and
recipe developers available who show creativity and out of the box thinking. In customer
service, employees who are keen to interact with potential clients and social media marketing
will be vital and in the prep and package line will have staff who are highly methodical and
systematic because it is vital that all required items are placed in each box without mistake.
Process
The important point is that our products are always available at market when customers
need. Using a Just In Time methodology is be beneficial to ensure fresh produce arrives exactly
when needed based on orders to reduce waste and ensure customers receive their order.
Having an efficient monitoring and notification system where Easy Kit reports to their suppliers
that items are low and ensures that the produce arrives just when needed. With the ordering
system set up in a manner where customers orders are placed in advanced it allows for proper
ordering to be done.
Easy Kit’s delivery process consists of preparing and packaging each item according to
recipe needs then placed in a proper temperature insulated container and sealed and sent out
for delivery and dropped off at the customer’s door with minimal human contact as possible to
ensure everyone’s health safety. With Myanmar’s population still being majority cash based
having a completely paperless payment service is not fully implementable however it is
something to reach for in the future.
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Based on each delivery customers will be asked to fill out feedback forms to ensure that
their needs are being met and any issues are made aware and handled. Employees will also fill
out forms and inform higher ups of any issues that arise.
Physical Evidence
Easy Kit is going to label their boxes with distinct color
packaging that make it easily identifiable for customers and each
ingredient will be labeled in customized Easy Kit logo and font to
identify them. All promotional materials will be photographed by
the inhouse professional to ensure high quality real images are
used. Recipes will be shown as ingredients as well as final
products for customers to view when deciding on options and
each kit will be accompanied with a photo guide of instructions for easy cooking. The items will
be placed in a 100% recyclable box in order to get customers to reuse and save the planet.
Marketing KPIs
Holding a trial run with friends and family members will allow for external feedback that
can be used to perfect the system as well as allow for word of mouth information spread
regarding the business even before the launch occurs. Social Media marketing strategies are
the best option for Easy Kit to get the public interest and momentum rolling. By slowly releasing
informative posts combined with photos and videos about the concept of the business will
generate interest while inviting the appropriate celebrities who side with the concept to advocate
for the brand will also be beneficial to increase awareness. Have polls posted on Instagram and
Facebook will have follower interaction and will make information gathering possible. Next step
is to invite food influencers to be brand advocates who will experience the box kit and have
them review and vlog the entire process to promote the product line. All of these social media
interactions will be tagged with the hashtag #easykit so it will be easier to monitor and access.
The social media manager will then monitor these posts for the public’s opinion and interaction
and interest to see how it impacts orders and awareness
Human Resource Strategy
Hiring the right staff is a vital component for the success and future for any organisation.
Easy Kit needs employees in three different areas of the company, thus there will be variations
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Figure 1.9

in the recruitment and selection process but the core considerations for recruitment would be
candidates interested in the food service industry and are willing to work hard and learn how
food impacts health and benefits the world when sourced properly. Potential employees who will
be recruited externally from training schools along with those who apply after the social media
hiring announcements will have to pass an interview with their respective department manager
and take a practical test run to show their skills that will allow for managers to make notes of
what kind of possible training they will need.
Easy Kit aims to hire fresh young graduates to fill out the workforce due to the benefits
of being an energetic workforce who are more exposed to technology they are able to adapt to
new processes and equipment faster. Having younger employees is a better method of utilizing
resources by filling entry level jobs and are less expensive.
Younger employees are more malleable combined with having less experience allows
for training and development to sink in better therefore creating a workforce catered specifically
for the needs of the company. Employees will be trained in health and safety procedures, how a
prep line will work, how to maintain food safety standards and overall time management to
increase productivity.
Easy kit will use performance management for employees by identifying their workplace
goals and reviewing results. Easy Kit wills measures their workforce. It also helps the reward
system. Performance management will figure out employees’ motivation and supervisor will
know their strength and weakness. Supervisor will measures their accuracy, absence of work,
hard work, etc. After measuring their performance, supervisor will give feedback for their
performance and these feedbacks will be applied in reward system. Easy kit will also use
360degree feedback method by accepting employee’s advice and they will appraise each other
among them. This method also useful for performance management.
Reward system is also useful for Easy Kit. It gives motivation to work hard at their
highest level for employees. Easy Kit will gives both intrinsic rewards (recognition, opportunities)
and extrinsic rewards (bonuses, trophy) for employees who are deserve it. By using that method
easy kit can raise productivity because employees will work efficiently in order to win reward.
This system also reduce turnover rate and staffs can be loyalty to stay in organization. Easy kit
will hold a staff party to give reward in December every year.
As Easy Kit is food service, employees are also important in organization such as food
preparation. Therefore Easy kit management team has to show recognition to employees and
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sometimes have to stop micromanaging among them. Management team has to open
communication for relationship. (e. g let them to share their idea and decision). And also follow
employment legislation in Myanmar such as minimum wages, salary payment date, public
holidays, and working hours.
Sample JD/JS
Job Description
Job Title: General Manager
Salary: 700000 MMK
Company overview
Easy Kit is a meal kit subscription company in Myanmar aiming to provide fresh local
ingredients to customers at home.
Duties & Responsibilities
 Overseeing daily business operations.
 Researching and identifying growth opportunities
 Generating reports and giving presentation
 Evaluating performance and productivity
 Design strategy and set goals for growth
 Ensure employees are motivated and productive
Working Condition: Have to manage all operations and must be involved entire supply
chain.
Job Specification
 Age 25 – 40
 Bachelor’s degree in science or management (MBA will be priority)
 Work experience: at least 3 years in operation, consulting, supply chain or
manufacturing.
Skills: Outstanding organizational and leadership skills, Strong analytical ability, must
have communications skills, Knowledge in food regulations and healthy.
Job Description
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Job Title: Packers
Salary: 250000 MMK
Duties and responsibilities
 Ensure that items are undamaged.
 Portion ingredients into individual food packaging and prepare to ready deliver
 Counting items and review packing lists
 Clean and general inventory maintenance
 Delicately pack recipe ingredients into boxes
 Follow guideline and regulations
Working condition: must work 6 days per week from 9am to 6pm. Must be as clean as
possible in workplace.
Job specification
 Age – at least 18 years old
 Education – High school or equivalent
 Must be willing to work entire schedule
 Able to stand on your feet and work for hours
 Follow terms and company regulations
Remark * one-year experience is preferred
Skills: must be able to pack accurately, basic mathematics, should pass our 2 weeks
training, must have teamwork, must be active and should have fast packing.
Human Resources KPI’s
Based on how the company is recruiting and retaining employees will impact the
success and future of the company. Having a system of performance appraisal will allow for
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managers and owners to understand the way the employees function and how to implement
necessary changes.
Having regular reviews especially during the first year of production will make it possible
to assess employees for additional training and developments and fix issues that arise as well
as open an avenue of communication with employees to better understand working conditions.
Employees and managers will fill out self-assessment forms as well as peer assessments forms
to gain a better companywide understanding on how interactions occur and how employees
feel. This system allows for proper allotment of resources and salary increments and bonuses
based on performance.
Organisation Chart
Easy Kit’s ownership and team structure is built in a manner to have the least amount of
staff with the maximum output to cut costs as well as ensure each owner plays a key role in the
business by using a flat organisation structure.
Operations/Manufacturing Plan
Description
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Moe Hein Kyaw
(Operations & Manufacturing)
Numaya Karim
(Recipe Developer)
Prep Line
Packers
Khant Min Zaw
(Distribution & Sourcing)
Delivery
Drivers
Kaung Myat Hein
(Finanical)
Nandar Kyaw Zin
(Customer Relations)
Nway Nu Wai
(Marketing & Sales)
Graphic Designer/
Photographer
Thet Hnin Hnin Hsu
(Social Media Manager)

The main operational steps of Easy Kit are to place orders to the right suppliers based
on the week’s customer demands, receiving the produce and meats which are checked against
the order for confirmation as well as quality standards, then the items are processed based on
the recipes of the order and packaged correctly according to the proper standards and stored
before delivery. Based on order and delivery schedule the meal kits are sent out to the
customer’s homes during the allocated time for delivery.
Schedule & Timeline
To start off, the company will release a menu and a schedule detailing delivery times
and availability based on resources for the week ahead on Friday. The orders will then be
required to be placed on Monday for weekday deliveries & Thursday for weekend deliveries.
Then the orders that come in are recorded and delivery locations and dates are confirmed and
placed on the schedule by the operations manager who informs the distribution head who
places orders to the suppliers for the right amount of ingredients required. Once the order is
received in the facility by the prep team the order is processed and packaged before being
handed over to the distribution drivers to be sent out.
Supply Chain
Easy Kit controls their own supply and distribution chain by eliminating the middleman
and by purchasing ingredients directly from the farmers, butchers and fishmongers. By
maintaining a short supply chain keeps prices low and ingredients fresh and brought directly to
the facilities and the finished meal kits are delivered by in house drivers without the need to
outsource and reduce quality assurances. By purchasing produce directly from the source in
bulk reduces potential food waste and a reduction in preservatives and freezing required to
maintain quality of food and guarantees financial support for the producers.
Location/Facility
Easy Kit requires a Yangon based processing and packaging facility that has the space
necessary for industrial kitchen equipment and refrigeration to prepare and store the
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Farmers/
butchers/
fishmongers
Easy Kit
Processing
Facility
Customer's
Address

ingredients. Incoming produce needs to be washed and sorted separately from incoming meats
to avoid any possible contamination due to allergies and food borne disease risk and each
station must be cleaned thoroughly before a new batch of incoming ingredients are unloaded to
be processed to reduce risk which means to maintain this standard requires an established line
of equipment for production.
Quality Assurance
According to an established quality control checklist a thorough inspection will be done
on location to ensure the handpicked suppliers chosen are at the standard of the company and
then each delivery of produce and other ingredients are checked again before accepting at the
facility. The facility itself is temperature controlled with the storage to ensure that the foodstuff
remain in the appropriate levels. The facility and workers will follow the government FDA
regulations and each meal kit will be sealed safely and stored before being sent out for delivery
Technology
Technology is key for the survival of the company as it is how customers place orders
and staff interact with customers. Having a Point of Sale system [POS] is critical for Easy Kit as
it is a centralized system for orders, inventory and customer sales that can be easily accessed
from multiple points. This makes managing incoming and outgoing products and produce easier
for reordering and monitoring employee hours convenient. Implementing a barcode system on
items as they enter and leave the premises allows for tracking to occur which is vital for
package deliveries so customers receive their goods timely without products spoiling.
Operations KPIs
. Easy Kit’s entire business model is to collect fresh organic produce and quality meat
and to process them in simple pre portioned meal kits which are then delivered to the
customers. This system has a lot of moving parts that depends on the timely arrival of items at
the appropriate times. Delivery In Full On Time [DIFOT] is a performance measure of on time
deliveries in the whole supply chain and is considered a superior method because it looks at
deliveries from the customers point of view. The main goal is to get the customer what they
want, when they want it in the amount they want which is exactly the kind of service the
company wishes to provide. This system allows for employees to manage stock levels as orders
are being placed and carried out thus being able to adjust them according to customer demand
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and implement any changes due to seasonal fluctuations. As soon as orders are complete and
are being carried out of the facility, time starts ticking on the quality and lifespan of ingredients
and drivers must deliver the box as soon as possible to the customer and any issues that occur
in this stage could have consequences which Easy Kit wishes to avoid which can be alleviated
by monitoring departure and arrival times of items and prepare the boxes in suitable materials to
reduce temperature fluctation.
Financial Forecast
Easy Kit’s financing structure is an investment by seven owners which have two parts,
ordinary share 200 lakhs and borrow from shareholders 200 lakhs with no interest payment.
Additional investment requirement 300 lakhs for finance will be loan from Friends which will
finding with interest rate 20% per year. Shareholders loan will be given back within the first year;
that's why Easy kit has favour with no interest from exiting investors. Friend loan will be given
200 lakhs by 2021-year end. End of year 2022, balance amount of loan (100 lakh). Interest
charges will be 60 lakhs for first and second year, third year interest will be 20 lakhs.
Initial Investment for this project is as follows:
Types Unit Price Quantity Total (MMK) Useful life
Vehicle & Truck
Truck 12,000,000MMK 1 12,000,000MMK 10
Kitchen Equipments
Interior Decoration 5,000,000MMK 1 5,000,000MMK 5
Kitchen supplies and Equipments 20,000,000MMK 1 20,000,000MMK 5
Facilities: bicycle, Office, etc.. 3,000,000MMK 1 3,000,000MMK 3
Office Equipment
Air-Con Setup 500,000MMK 4 2,000,000MMK 3
IT & Communication
Computer: application and laptop 800,000MMK 5 4,000,000MMK 3
Total 46,000,000MMK
Building rental charges per month is 800,000 MMK per Month for first year and
incremental rate is 2% per year in next two years.
Easy kit will get the three years Tax exemption for initial start of business for SMEs law.
Net profit per years are as follows:
First Year Second Year Third Year
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Total Income (PAT) MMK 944,085 MMK 14,637,491 MMK 34,610,343
Cash Flow position is also strong position for three years in overall.
First Year Second Year Third Year
Net Cash Flow MMK 33,894,085 MMK (16,011,509) MMK 33,309,343
Closing Cash Balance MMK 33,894,085 MMK 17,882,576 MMK 51,191,919
Net Present Value for Easy Kit is Positive NPV – 531,033 MMK and Pay Back period is
2.84 Years less than three years. Easy kit is worthwhile and increase the shareholders' wealth.
First Year Second Year Third Year
Retain Earning MMK - MMK 944,085 MMK 15,581,576
PROFIT & (loss) MMK 944,085 MMK 14,637,491 MMK 34,610,343
Total Accumulated R/E MMK 944,085 MMK 15,581,576 MMK 50,191,919
Easy kit can give the dividend to shareholders in coming fourth year profit and
accumulated retain earning according to the seven owners' decision.
Key Milestones
2020 Dec
Easy Kit will recruit employees and form management team as stated
in organization chart. Such as Managers, supervisors, chef,
photographer and front line workers. And then Easy kit will
collaborate with suppliers and partners.
2021 Jan Easy Kit will train chosen employees to have accuracy and skills for
producing meal kits.
2021 Feb 4th
Easy Kit website, application, Facebook page will launch in Yangon
and will start business. Easy Kit will advertise on Facebook and
billboads along with commercial videos and photos with influencers
to put on website and social media. Photographer must arrange for
commercial photos and videos.
2021 April Easy Kit will give promotion at the beginning to penetrate market and
to gain awareness from consumers.
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2021 June
Easy kill will start to collect customer feedback and what they want to
eat. And then make better menu or change menu depend on
customer feedback.
2021 Aug Every 6 months, Easy kit will change food image on the website with
new ideas.
2021 Dec
Easy kit will hold a staff party to give reward to employees who are
qualified and deserved. At this party, Manager has to do
brainstorming activity in order to get new ideas for business from
experienced employees. If Easy kit will accept that ideas, employee
can get more achievement.
Future Plan for 2022,2023
2022 April
If Covid-19 ends in 2022 April, Easy Kit company will has a
yearly trip for all company members.
Employees must make this journey in order to get familiar
each other. As usual, there will be activities such as
brainstorming for new products.
2022 June Depending on customers demand and employees and
company ideas, Easy Kit will produce new products for menu.
2022 Aug Easy Kit will prepare next product line that will be equipment
for cooking such as kit aprons, knives and etc.
2022 Nov
Easy kit will connect with City Mart in order for Meal kit to be
available at City Marts as a shelf with only Meal kit. As a new
market Easy Kit will try other shops to available meal kit
everywhere. Easy Kit will focus to available at everywhere
instead of delivery service.
2022 Dec
As the business grows up, Easy kit will need more workers
and resources. Easy Kit will have to find agency to recruit
more employees and have to find suppliers.
2023 Jan Easy Kit will lunch new meal kit for children as mini kit and
equipment for home cooking.
2023 Feb
Easy Kit will have to make partners with Ocean center around
Myanmar to available meal kit at Mandalay, Taunggyi,
Mawlamyine and other cities.
2023 Mar After partnership with local marts, Production will have to be
mass production.
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2023 June Easy Kit will have to do funding process and find investors to
build factory to produce huge production.
2023 Dec Easy Kit will have to start build factory to produce huge
number of meal kit to provide around Myanmar.
Strategic Risks
As any company in the food industry, there are health and food safety risks associated
with Easy Kit’s meal kit and production facility. To reduce this risk, employees and managers
will monitor the quality of food ingredients as they arrive to prevent and plan according to the
changes in flavour, taste, colour, amount of nutrients. Each time, recipe developers will develop
and prepare the food menu by carefully researching to get healthy and tasty dish based on the
season and incoming stock. Food menu research and development is very important to Easy
Kit’s business because wrong type of food ingredients combination can have consequences
such as food poisoning and allergies. The prep line and packaging facility must observe strict
sanitation to prevent these types of contamination according to government health regulators
and standards to minimally reduce or eliminate any risk of food errors.
Since there are many restaurants with many good quality foods, Easy Kit must develop
signature recipes to have unique tasting foods to reduce any risk of plagiarism. For a signature
sauce, Easy Kit will research target segments to develop the preferred sauce. Easy Kit must
control and develop the taste of signature sauce to gain more customers by keeping it a trade
secret however the ingredients will be displayed over the food packaging to give information to
some customers who have allergies to seafood, peanut, dairy products. Easy Kit will make
confidentiality contracts with the employees who known the secret ingredients to prevent
information leaks to the competitors.
SCENARIO 2
Exit Strategies
An exit strategy for a business is the entrepreneur’s strategic plan commonly used by
the entrepreneur to sell the ownership of the company to investors or other company. The most
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common exit strategies are merger & acquisition (M&A), Initial Public Offering (IPO), sell to a
friendly individual and Liquidation & closing. (Landau, 2019)
Merger and acquisitions are the transition of the business ownership between the two
companies. Combining two separate businesses is known as a merger whereas Acquisition is a
company incorporating another company. The business can gain advantages such as
increasing in sales and efficiencies when this occurs. Either acquiring or mergering will result in
combining two loyal customer groups into one group since both businesses have loyal
customers causing the sale amounts to increase because the business will automatically get the
customers from another company. This method allows for overall cost efficiency and work
performance improvement because the business can get information, knowledge and
shareholders from the merged or aquired company. The business can reduce the competition
rate in the market by merger or acquire the competitor. The disadvantage of this method is that
it is hard to decide the cost of a merger or acquiring another business because there is no set
standard price. It is also potentially hard to adjust the merged company employees with the new
work place, cultures, colleague, management (Parikh, 2016) which is one of the main reasons
that can lead to business failure.
Initial Public Offering (IPO) is selling the company’s stock into the public in order to raise
money for the growth of the company and create the significant funds to be used for the future.
Holding an IPO benefits the company as it is a way to gain massive amounts of capital to fund
large scale expansions and offer stock shares which attract both investors and talent. This helps
the company gain awareness and reputation from the public to build on company image. The
entrepreneurs rarely choose this method as an exit strategy because as a main drawback it is
expensive and time consuming to become a public company and it takes a large amount of
management time and effort to carry out. Due to the company public awareness, the investor
will keep monitoring over the company objectives. The stock prices can be either increase or
decrease depending on the performance of the company. (EDUCBA, 2020)
Selling to a friendly individual occurs when the company sells and transfers the company
ownership to friends, family members and employees. The main benefit of using this method is
the owner already known the buyer so it takes less due diligence. They known each other so it
is easy for the owner to exit from the business. But a drawback is that it takes longer than the
expected time because the owner needs to find suitable buyers for the company. (Hall, 2015)
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SME business commonly usually use liquidation and close as an exit strategy because
it is simple and there isn’t a lot of negotiation. Liquidation and closing is the fastest way to exit
from the market. The owner decides to use liquidation to quit from the business. The business
stops manufacturing and sell the business assets which is used to repay the creditor and
divided among the shareholders. If the company choose this method as an exit strategy, there
will be a lot of impact upon employment rate because all of the employees will lose their jobs.
Selling price of assets will drop from original price because of the deprecation rate.
To properly decide which exit strategy is best for the future of Easy Kit, comparisions
between them is needed. An IPO requires the company to have many resources and it is a time
consuming process to become a public company and have strict regulations and the Yangon
Stock Exchange is not well established thus there are not enough of a demand for an IPO in
Myanmar. Liquidation and closing may look easy compared to launching an IPO but it also
requires many documents and there are strict rules and procedures that need to be followed
based on the type of company is being closed. The company will have to begin the legal
process which is time consuming and inform all parties beforehand about the decision. All the
company’s assets need to be sold to repay any remaining creditors and cash out the
shareholders and pay the employees severance before the company can officially close.
Therefore neither of these strategies best suit the future of Easy Kit. Selling to a friendly
individual is best when there are people in the company’s network who are already interested or
involved in the business willing to purchase and continue the business such as employees or
family members whereas mergers/acquisitions are a much more formal and larger scale
variation of this process used by bigger firms with consolidates resources and benefits both
parties and the employees under Easy Kit’s umbrella.
Therefore, Easy Kit will use either a merger or an acquisition as their business exit
strategy. The company can use resources and information is gained from this action to develop
the innovated products. For Example, Uber, well-known transportation service provider in
America, Europe and so on. But in South East Asia, Grab already obtain a lot of market shares
in Asia Later these two companies’ merger in South East Asia region. Due to this factor, Grab is
finally able to eliminate his largest competitor from the business. If Easy Kit mergers with an
established restaurant chain like Golden Duck, Easy Kit will gain a lot of knowledge like recipes,
management style and automatically increase the sale amount by gaining a new market
segment.
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WORK CITED
EDUCBA, 2020. EDUCBA. [Online]
Available at: https://www.educba.com/what-is-ipo/
[Accessed 9 September 2020].
Hall, A., 2015. Aaron Hall Attorney. [Online]
Available at: https://aaronhall.com/business-owner-exit-strategies/
[Accessed 9 September 2020].
Landau, C., 2019. Bplans Blog. [Online]
Available at: https://articles.bplans.com/types-of-exit-strategies/
[Accessed 9 September 2020].
Lineshenry, 2018. Lineshenry. [Online]
Available at: https://www.lineshenry.co.uk/what-are-the-advantages-and-disadvantages-of-
liquidation/
[Accessed 9 September 2020].
Motley Fool, 2016. The Motley Fool. [Online]
Available at: https://www.fool.com/knowledge-center/advantages-disadvantages-of-going-
public-using-an.aspx
[Accessed 9 September 2020].
Parikh, V., 2016. Letslearnfinance.com. [Online]
Available at: https://www.letslearnfinance.com/advantages-and-disadvantages-of-mergers-and-
acquisitions.html
[Accessed 9 September 2020].
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