SCHOOL OF ARCHITECTURE, BUILDING AND DESIGNTHE DESIGN SCHOOL
FOUNDATION IN NATURAL BUILD ENVIRONMENT
NAME: Darren Tan Quan Wen (0322662) Lew Quo Ming Michelle Tang Ying Jien
INTRODUCTION TO BUSINESS (BUS 30104)
FINAL ASSIGNMENT: CHARITY DRIVE
LECTURER: MS. TAY SHIR MEN
SUBMISSION DATE: 14TH DECEMBER 2015
INDEX
No Content Page1 Executive Summary 32 Objective 4 – 5
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3 Target Market 64 Competition Analysis 7 – 85 Product & Packaging 9 – 116 Pricing 127 Promotion 13 – 168 Sponsors 179 Distribution 18 – 1910 Green Measures 20 - 2111 Human Resource Planning 22 – 2312 Evaluation of Result 24 – 2613 Appendices 27 – 30
Executive Summary
In groups of 4, Foundation in Natural and Built Environments students who took the Introduction to Business module were involved in an annual charity drive. The purpose of this assignment is to raise funds for a charity organization. This gives us an opportunity to run a business venture and also to gain experiences about how a business is run throughout a week.
Our team decided to raise funds by selling sweet or desert food and tries to find a sponsor. However we encounter lots of problem during our charity drive, we sold several of products. Which is frozen
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yogurt, cotton candy, cakes, coffee and meggi mee. Basically we change product every day, due to machinery problem we had for our main product, which is frozen yogurt and cotton candy.
All profit will be donated to the Persatuan Penjagaan Kanak-Kanak Cacat Klang Selangor (PPKKCKS), It’s a home fill with of disable children. We chose this charity organizations because the house is in a bad condition and most kids do not have enough material to study. Therefore we want to raised funds to provided them better equipment and facility.
A total of RM 2152 was rasied by our team.
Objectives1 Breast Cancer Welfare Association (BCWA)
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- 4, Kampung Raja Uda, Lorong Bunga Raya, 42000, Pelabuhan Klang, Selangor, 42000, Malaysia
- +60 3-3165 4312
The reason we decided to donate to PPKKCKS is because it’s a home fill with disable children. The house is in a bad condition and most kids do not have enough material to study. Therefore we want to raised funds to provided them better equipment and facility. 2 Professional & Personal Objectives
i. A target of RM 25000 ii. Sales profit of RM 2500 and more to cover up our costs iii. Target sales of products altogether,
154 Frozen Yogurts 10 cottons candy 50 packs of coffee 56 packs of meggi mee 150 cakes
3 Personal Objectives i. Obtain new skills such as marketing techniques, accounting
skills and planning strategies ii. Strengthen group work/cooperationiii. To gain a memorable experience together
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Target Market
Students Most students in Taylor’s Lakeside University come early for morning classes due to the limited parking spaces and do not have time for their breakfast. Most of them would usually buy some convenient food such as waffle and snacks from the
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vending machine. Most stalls in campus sell foods that are packaged, students can just come and buy it and go for their class, which is very convenient for them to do so. Judging by the fact that there are a lot of students would spend their money on luxury stuff such as Starbucks, Chatime etc. We believe that students in Taylor’s University have high spending power.
Friends We promoted about what we are doing and what we are going to sell on social medias like Facebook, Instagram and Twitter, our friends would know about this charity drive and support us. And because it is easier to communicate with them about our products compare with strangers, therefore it would also be easier to persuade them to buy our products. The purpose of our charity drive is to earn profit in order help our charity organization, so we would emphasize this fact to persuade our friends to support our charity organization. Most of them have normal spending power.
Competition Analysis
Our competitors are of course the other groups in our business class that were also involved in the same charity drive as us, but the two of our main competitors were:
1) Isy Roc’s Group
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They were also selling ice cream like us but ours is yogurt, which is more expensive, then theirs. Besides that they also sold different types of toping and different flavours. We were worried that no one would buy our frozen yogurt as we heard quite a number of customers claiming that the other group’s ice cream taste better and its cheaper ● Strengths: Wide varieties of toping and flavour ice cream.
● Weaknesses: Only one product they are selling
2) Justin’s Group
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Pretty sure that this group is the strongest among all and is most of the other group’s competitor. A sausage company sponsored this group. Everyday their booth will be crowded and people were lining up throughout the five days of charity drive. ● Strengths: They did not have to walk around with trays of what they are selling to ask others if they are interested or not, instead, people come over and ask if they are ready to sell. Due to the sausage smells that attracts people.
● Weaknesses: They don’t have much business after lunch hour or breakfast hour. it takes a long time to prepare the food.
Product & Packaging1. Frozen Yogurt
Flavours: Original, Corny Flakes, Crunchy Popcorn, Sweet Oreo, Strawberry and Chocolate
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2. CakesFlavours: Green Tea, Tiramisu, Passionate Chocolate, Cheese and Banana
3. Maggie Mee with Egg
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4. Coffee
5. Roses
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PricingThe following is our price list for the products that we have sold during the charity week.Frozen Yogurt of all flavours are sold at RM8 each cup. The green tea and banana cake is sold at RM9 while tiramisu, cheese and passionate chocolate cake are sold at RM10. Maggie mee with egg is sold at RM5 while without egg is RM4.50 but most of the customers have placed orders with egg. The coffee is sold at RM1 per cup. Finally, the roses are tied up with our charity where you can donate RM5 and above to receive a rose. In other words, the roses are sold at RM5 each.
Cost Price (RM)
Selling Price
Units Revenue (RM)
Frozen Yogurt
4.50 8.00 154 1232.00
Cake 5.00 9.00 40 360.00Cake 6.00 10.00 90 900.00Maggie Mee
2.00 5.00 56 280.00
Coffee 0.50 1.00 27 27.00Roses 1.00 5.00 10 50.00
Total Revenue (RM): 2849.00
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PromotionWe have used several methods to promote our products to the public in order to boost our booth popularity. Our promotion methods are carried out face to face and through social media.
1. PostersWe have designed our own posters for each of our products. This is to attract attention from customers and let them know what products we are selling. It is easier to show and explain the products we have to customers with the poster. The poster also comes in handy when promoting our booth through social media such as Facebook, Whatsapp and Email.
2. PromotionsWe have introduced interesting promotions for our products too. For example, the normal price for a box of cake is RM10 but you will be able to get a second box at RM8. This way, customers can save RM1 for each purchased cake. In the long run, we are also able to sell more cakes even if our profit earned for one cake is lower.
We have also tied up the rose with our donation where each RM5 is donated, we will give them a rose for free.
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3. Face to face promotionDuring charity drive week, we have promoted our booth to customers (students walking by our booth) through face to face promotion. We have approached them and explained about the aim of our charity drive week and convinced them to buy our products.
4. Facebook PromotionWe have created a Facebook page called “Cloud Factory” where we have heavily promoted each of our items, give updates on our daily sales and have creative posters. The posts are attractively written so that people will be convinced to approach our booth. All information about the charity drive and our booth is written clearly there.
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5. Lucky DrawWe have also promoted our products through a lucky draw game where each person who purchases a box of cake from us would be given a chance to win a free Frozen Yogurt (worth RM8) from our booth. This attracts customers to purchase the cake because they are interested in the free Frozen Yogurt.
6. Charity / DonationWe have also used our charity home, PPKKCKS to promote our items and products too. We promote our items to customers and introduce our charity home to them stating that we are raising funds for these children. This helps boosts our sales
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because more customers are convinced to purchase items knowing that the money is going to be donated to charity.
Sponsorsa. Approached Sponsors
Our group has approached different sponsors such as “Sim Derby” in hopes of being able to sponsor our team throughout this project. However, we were able to obtain a sponsorship from a company that one of our teammates parent
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recommended that is “Ultra Dynasty Sdn Bhd”. They were generous enough to sponsor our entire project as they are willing to donate the money to charity. The company was willing to sponsor the amount of RM2, 300 to assist our group for the project.
b. Reasons for Approaching Stated Sponsor
As most of our parents have a wide range of contacts and are even closer with some of them. It was easier to approach the sponsor from “Ultra Dynasty Sdn Bhd” as one of the team member’s parent was close to them. The mother of one our teammate aided our group in terms of convincing the sponsor upon the reason for sponsoring our group and how it could assist the charity home that we had chosen.
c. Method of ApproachingAs there was multiple methods used in obtaining this sponsorship but the main method was by sending emails and also having to call the company. We wanted a face to face meeting however we weren’t able to have it due to the fact that the location of the company is rather far. We were able to have one of our teammate’s parent to meet up with the sponsor with all the documents in hand in hopes to convince them due to the fact that the parent works next to the company. We send multiples email and even a sponsorship letter printed with Taylor’s University name on it. In the end we were extremely grateful upon the generous sponsorship given to us by the company.
Distributiona. Sales Location
Our stall is located directly in front of the Student Life Centre of Taylor’s University Lakeside Campus and around campus as we carry food around campus to be sold as well.
b. Transportation of ProductsAs the first day of our charity drive, we had to carry the Yogurt Machine from the restaurant known as “Snowy” in the commercial area of Taylor’s University Lakeside Campus.
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Given that we only had to carry the machine to our stall and also bring along the materials used to make yogurts, we actually did not have much things to bring along. However on the second day, we added cakes to be sold on our stalls. All the cakes were transported form Michelle’s car to campus and placed on our stall. The cakes were all well packaged when we got them as we purchased it from a wholesaler with a lower price. On the third day, as our machine required servicing and all the cakes were sold out, we decided upon selling mee goreng and bought a few packets of it from the nearby AEON Big and brought it the next day. Darren was responsible for bring all of the packets as we stored all of them in his car. The mee goreng that we sold are packaged fresh as soon as we were done cooking with them.
c. Delivery TimeAs most of our products required some time to make, the time interval for each product to make required a short amount of time as we did not wish to have the customers wait long. The cakes on the other hand requires very minimal time for the customers to obtain it as it is all packaged individually and are ready to be taken on the spot. We also do have a donation box that a few of our members will go around campus along with some of our products in hand to sell or collect donation all over campus.
d. Number of CustomersWe estimated upon the number of customers based on how much we sold. The total estimation would be at least over 150 customers per day considering that we had customers purchasing multiple products from us including roses.
e. Other Methods of OrderingWe also provide delivery service as long as it is within the campus boundaries. Via phone or social media, customers can contact us to either deliver or to hold on to one of our product for them.
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Green Measurea. Environmentally - Conscious Manner
Given that recycling and protecting the environment is very important, we were strictly concern upon the usage of disposable materials and packaging for this project. One of our objectives in this project is to protect and improve upon the health of environment by reducing usage of non-renewable resources.
b. Environmentally-Friendly Product Packaging Before having taking deal with our suppliers, we first asked them whether their materials used for the product packaging would be disposable so that it does not bring harm to the environment. We wanted to reduce minimal waste created in order to encourage using packaging that is recyclable.
The packaging for the mee goreng and cakes for the customers are plastic containers as they are easily disposable and also recyclable. The plastic cups used for drinks as we sold coffee at one point consisted of using recyclable material as well. Reduction in using plastic bag as we only provide
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plastic bags to customers who requested it. In a way, we are able to reduce the way of disposing non-renewable waste. We also used plastic gloves as to ensure the cleanliness of the product as well as able to recycle it easy.
c. Reduction of Carbon FootprintWe reduced the usage of plastic bags for the customers as we only provide upon request form the customer. In addition, we walked around campus to sell our products to people who did not know about our charity drive in front of the student life centre. As our food also do not require refrigeration unlike some stalls who required much usage of electricity for keeping their products.
d. Waste ManagementThe product waste such as plastic containers and cups after being used are to be thrown into the 3R bin which include Reuse, Recycle, and Reduce bins provided all over campus. Customers can easily throw it in and all of these waste will be taken to the recycling centre where they are sorted by type and categorize.
e. Measures Taken to Reduce Consumption of Resources1. Our products do not require the usage of much water
therefore reducing water usage.2. We did our best into minimizing the amount of electricity
usage for all our electrical appliances.3. Provide plastic bag as requested by customers only
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Human Resource Planning
Team Organization Chart
Job Scope
Team Member Job ScopeLiew Quo Ming Project Leader, Public Relations
(PPKKCKS), Product Dealer, Sponorship Dealer, Product Promoter, Donation Manager, Chief Salesman
Darren Tan Sales Manager, Product Dealer, Marketing Strategist, Sponorship Dealer, Treasurer, Promoter, Customer Servicer, Salesman, Driver
Lew Quo MingProject Leader
Tang Ying Jien
Stall Manager
Michelle WongAccountant
Darren TanSales Manager
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Michelle Wong Accountant, Donation Manager, Promoter, Product Dealer, Customer Servicer, Saleswoman
Tang Ying Jien Stall Manager, Public Relations (PPKKCKS), Poster Designer, Machine Operator, Salesman, Driver
As our group has a clear job scope, we are able to guide ourselves to do our own respective task and distribute the workload evenly. This will produce a member with their own sets of specific skills so that every field of job scope are able to run smoothly without any mistakes.
As the Project Leader, Liew Quo Ming manages all the other members and ensures every member does their part so that the business will run smoothly. As The Sales Manager, Darren Tan make sure that all our business are in good condition with profit is able to cover up the expenses. As the accountant, Michelle keeps tracks of the money flows and ensure there is no money losses. As the Stall Manager, Ying Jien ensures that the stalls are operable and makes sure that the business is making profit.
Quo Ming and Ying Jien also manage with Public Relations, which ensures that all donations are donated to PPKKCKS. Quo Ming and Darren Tan were tasked to get sponsorship to have funding for our business to start operating. Darren and Michelle Wong was in charge of dealing with the profit and losses and manages the money flows while keep the receipt in checked. Liew Quo Ming, Darren Tan and Michelle Wong are tasked to manage the product supplier and make sure that all products and machineries are available and ready to sell. Quo Ming and Michelle Wong keep check on the donation to confirm we have enough donation to cover up our expenses and target goals. Ying Jien also manages the poster design to ensure customers are able to comprehend our products and the pricing of the products.
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Evaluation of resultAt the end of this project, we managed to achieve more than our target, which is more then RM 2300 consisting our sponsor, sales and donation.
Profit & Loss StatementRM RM
Revenue 2849Net sales 2849
Less: Cost of Good SoldFrozen Yogurt 493Meggi Mee 56Cakes 840 (1389)Gross Profit 1460Add: Sponsor 2300
Donation 354 2531Adjusted Gross Profit 3991
Less: Operating ExpensesTyphoid Injection 260Machine Rental 200Total operating expenses (460)
Net Sales 3531
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Net Profit
Frozen Yogurt Coffee Maggi Mee Cakes Donations Sponor
In the end of the project, we got net sales of RM 3621 by selling Frozen Yogurt, Coffee, Maggi Mee and Cakes. To conclude, it was a very profitable business and we have reach our RM2300 goal. We manage to get back our Typhoid Injection fees and also get some pocket money for ourselves from the profit.
During our project, we faced a lot of problems and obstacles. One of our main problems is that we had trouble with machineries supplied by our product supplier. First, we had decided to do cotton candy, but on pre-testing the cotton candy machine maker, its heater broke and the product was not put on sales. So, we decided to buy cakes to cover up our expenses and support the sales of the frozen yogurt. On the first day, we reached our target with solely the sales of frozen yogurt and realize we had over purchased the cakes. But all is well when we boosted our promotion and managed to sell off the cakes.
Our next big obstacle is on the 3rd day of sales when our frozen yogurt machines maker was broken in the evening. We were shocked and quickly decided on selling Maggi Mee and coffee, as it is the safest proof product we can think of. Things got worse when one of our teammates, Ying Jien was sick with food poisoning and cannot attend on the following 4th day of sales. But with the rest of the three teammates, we are still manageable on the 4th day and get more profit from it.
We also faced problems with the frozen yogurt and cotton candy machine supplier. At first, we had trouble getting an agreement on
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the pricing of the products. The supplier was trying to get profit from us as they charged us with a very high price for every single product sold and also a high rent for the machineries. But after much consideration, we finally got a deal with a win-win situation. But after that, we had trouble with the cotton candy machine and they charged us with the repair fees of the machine because they were not at the scene when the machine broke and blamed us for spoiling the machine. We cannot do anything, as it was partially our fault too. Also, when the frozen yogurt machine got broke too, they give us a refund as they were present at the scene and declared that it was their machines own faulty.
Although we faced a lot of problems, we were grateful we have the chance to face it because all this obstacles are going to be faced by us in the real business world and we have learned to deal with it and overcome it. If we are given to repeat the event one more time to mend our mistakes, we will do better and do what is best and get a better profit.
Video link:
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Appendix
Photos
Project Briefing Sales Promoting
Cakes (Products)
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Selling Products
Frozen Yogurt (Product)
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Typhoid Injections Receipt
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Sponsorships Letter
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Sales Receipts (Random Picked)
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