YOLOGURT Business Final Project Charity Drive Financial Report
FNBE August 2014
Group Members: Caleb Soh Er Wen 0320292 Chia Ly Vier 0320142 Chin Vin Yan 0320311 Ng Wyn Jane 0319440 Teh Sin Ying 0320509
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Table of Content
No. Title Page Number
1. Cover Page 1
2. Table of Content 2
3. Summary & Objective 3.1 Summary 3.2 Chosen Organization 3.3 Financial Objectives
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4. Target Market 5
5. Competition Analysis 5
6. Products & Packaging 610
7. Pricing 1112
8. Promotions 1315
9. Distribution 16
10. Green Measures 17
11. Human Resource Planning 18
12. Evaluation Results 19
13. Appendix 2023
14. Conclusion 24
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Summary & Objectives
3.1 Summary
This is a detailed report of our final project, charity drive for Introduction To Business module.We required to form a group for 45 people and decided on the product and service we would like to sell and provide. The profit for this event will be donated away to charitable organization of our choice.
We have decide to sell food and beverages, specifically healthy food. We plan to sell
fruits, nasi lemak, mochi, barley drinks, herbal eggs, yogurt, curry puff, sandwiches. This is because we think healthy food will attract more customers as nowaday people encourage and appreciate healthy lifestyle.
The choice of our charity organization are UNICEF Nepal Earthquake Children’s Appeal.
UNICEF (United Nations Children’s Fund) in itself serves the function of providing humanitarian aid to both children and mothers in developing countries worldwide but we agreed as a corporation that we wanted to sow into something more specific. Hence the decision to contribute explicitly to the Nepal Earthquake Children’s Appeal.
We targeted to raise a total of RM2500 from both sales revenue and donations. A total of
RM1900 would come from the sales revenue alone whereas the remaining RM600 would be obtained through corporate and individual donations.
During this charity drive, we get the sales revenue RM 1952.40 and for the donation
RM600.00.
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3.2 Chosen Organization For our business, we chose to contribute our earnings to the UNICEF Nepal Earthquake Children’s Appeal. UNICEF (United Nations Children’s Fund) in itself serves the function of providing humanitarian aid to both children and mothers in developing countries worldwide but we agreed as a corporation that we wanted to sow into something more specific. Hence the decision to contribute explicitly to the Nepal Earthquake Children’s Appeal. The Nepal Earthquake Children’s Appeal’s main function is to provide immediate humanitarian aid and relieve the devastating emotional impact the quake left on the children of Nepal affected by the quake. Being children ourselves, albeit from a more privileged background, we believe that the children of Nepal shouldn’t be held back by this disaster and they deserve better than that. Thus, we want to stand together with UNICEF and support the efforts being made to restore the standard of living for many of these children through the financial aid we have raised. UNICEF would then utilize the donations received in the following areas:
● Shelters for victims whose house has been destroyed ● Clean water for drinking and washing ● Healthcare ● Psychosocial support for affected children ● Learning centres and safe spaces for children
3.3 Financial Objectives We targeted to raise a total of RM2500 from both sales revenue and donations. A total of RM1900 would come from the sales revenue alone whereas the remaining RM600 would be obtained through corporate and individual donations.
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4. Target Market Due to the fact that our business was located in Taylor’s University Lakeside Campus, our target market was fundamentally divided into two groups: students, which holds the higher percentage, and lecturers or staffs, which holds a smaller percentage in our location. Based on the analysis we made, we observed that most customers would spend their money on food rather than on goods. We also found that customers prefer cheaper food as most of the food found in campus are expensive. Small packaging food like curry puffs is also a hot selling product as it is easier to bring around the campus. Besides, based on the food sold in commercial block, we found that the highest price could go up to RM20 which could actually afford at least 3 yogurts from our stall. We try to keep the selling price below RM5 except for the yogurt, which has a high cost price, so that customers could have a variety of choices by using the same amount of RM20. 5. Competition Analysis The 2 main competitors during the charity drive are located opposite us (Terence's group) and also the one beside them (Zi Shan's group).
Comparative Information Terence's Group Zi Shan's Group
Products Brownies, Coconut Drink, Chicken Kebab
Soya Beancurd, Soya Bean Drink, Steamed Nut, Popiah
Strengths They have good communication skills to promote their products and good advertisement which they design their poster in a hipster way which attracts students. Their brownies taste good which attracts a lot of brownies lover.
The food they are selling are what people usually crave for breakfast, which is the Soya Beancurd. They have attractive posters and stand boards which attracts people to go to their stall.
Vulnerabilities Their products have a relatively high selling price which stops people from buying, unless they are really craving for it.
They sell goods that are easily perishable.
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6. Products and Packaging Product 1 : Fruits Description : Grapes, Strawberries and Bananas serves as the daily dose of vitamin C. Packaging : They are packed in plastic cups with lids, to make sure that it is clean, and comes with a toothpick which is more convenient for customers. We also put the fruits in an icebox to keep it fresh and cold.
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Product 2 : Herbal Eggs Description : Eggs cooked in the herbal soup until it fully absorbs the essence of the herbal soup. Packaging : They are served in plastic bags. We prepeeled some of the eggs because some customers requested for the peeled ones while some of them preferred the unpeeled ones.
Product 3 : Yogurt Parfait Description : Fresh yogurt served with fresh fruits and cereals. Packaging : They are served in a plastic container which we will pre package it at home and put it in the icebox to keep fresh. The fruits and cereals will be put on top before it is served.
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Product 4 : Nasi Lemak Description : A typical Malaysian delight, consisting of coconut rice, spicy chilli sambal, roasted peanuts, fried anchovies and hard boiled egg. This is all wrapped up in a banana leaf and brown paper packet to give it that iconic look. Packaging : They are bought in a Malay stall at Damansara which is packed with banana leaves and wrapping paper. Prepacked, wrapped in banana leaves and brown paper. A spoon is added for convenience.
Product 5 : Barley Drink Description : The healthy refreshing beverage freshly boiled. Served in both choices of warm and cold. Packaging : They are served in plastic cups and closed lid to keep it clean. Straws are provided before served so that the drink is completely sealed and clean. Hot water or ice is then added to the drink to the customers request upon purchase.
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Product 6 : Curry Puff Description : A traditional Malaysian pastry which is filled with a curried potato filling. Packaging : Served in packets of two, two different packagings were used. We used plastic bags at first but then switched to plastic containers after we realized that there were a substantial amount of leftovers.
Product 7 : Chinese Peanut Mochi Description : Glutinous rice ball coated with a mixture of crushed roasted peanuts and castor sugar. Packaging : The mochi is cut into bite sized chunks and then placed into a plastic container together with a toothpick. The crushed roasted peanuts are added upon order to prevent it from getting soggy.
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Product 8 : Apple Egg Sandwiches Description : Bread stuffed with a mixture of hard boiled eggs, apples and mayonnaise. Packaging : They are packed in the plastic triangular sandwich container.
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7. Pricing Pricing also plays an important role in a small business. The customer’s decision to buy the product is affected by its pricing. The pricing should not be too high because the customers will not buy the products as they think it is not worth it to spend so much on it , whereas the pricing should also not be too low as the profit gained would not be enough to reach our target. An effective pricing strategy will help you: i. Meet your profit objectives ii. meet or beat your competitors’ prices iii. retain or increase your market share iv. match the image or reputation of business, product or service v. match your offer to market demand
Per Unit Cost Price (RM) Per Unit Selling Price (RM)
Fruits 2.00 4.00
Herbal Eggs 0.60 2.00
Yogurt Parfait 3.00 7.00
Nasi Lemak 1.20 3.00
Barley Drink 0.20 1.00
Curry Puff 0.80 2.00
Mochi 1.50 4.00
Apple Egg Sandwich 1.00 5.00
On the first day, we focused mainly on selling yogurt parfait but the response we got from the customers were underwhelming because the selling price was too high for a cup of yogurt. We could not decrease the selling price, RM7, as it has a very high cost price. Thus, we decided to change our selling strategies to include more products in order to increase the variety of choices for the customers. We included products with cheaper cost price such as Barley Drink, Nasi Lemak, Curry Puffs, Sandwiches, etc. Due to its low cost price, we are able to sell it at a lower rate, as low as RM1, which attracted more customers..
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We got our curry puffs, RM0.40 per piece, and nasi lemak, RM1.20 per packet, from a stall at Damansara which reduce the amount work involved in preparing. Originally, we tend to sell our curry puffs at RM3 per packet but the response was very slow as they think that it is too expensive. Thus, we decrease the selling price to RM2 which increase the sales and became the hot selling product. We remain the selling price of Nasi Lemak for RM3 as it is a price which could be accepted by customers. Winter’s grandmother and mother also help out with the making of Mochi and Barley Drink which ensures the quality of both products. Winter’s mother sponsored the cost of both products which reduces the our overall cost price. We sell the Mochi for RM4 and it is also one of our best seller because we are the only stall selling Mochi. Originally, we tend to sell it at RM2 but it is too expensive and nobody wants to buy it as they prefer to buy to buy other drinks with the same amount of money. Therefore, we reduce the price for the drinks. After reducing the price, customers response are much better as the drinks is just RM1. For the apple egg sandwiches, the price is RM5.00. The response is not as good as other products but it still meet our daily target. However, we still remain the original price as we can make more profit with this pricing. Besides, for the herbal eggs, It’s just RM2 for each eggs/ The profit is quite high because the cost for a herbal egg relatively low. Lastly, the fruits is just RM4.00 and the cost of the fruits is RM2.00. We buy new stocks every day in order for us to provide fresh fruits for the customers.
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8. Promotion 8.1 Main Marketing Message During the charity drive, our group’s marketing message was very straightforward which enabled the message to brought across to our customers clearly. All of us shouted and promoted our products by yelling “herbal eggs for RM 2” or “apple egg sandwich for RM 5” and the same for other products as well. We also emphasized that all of our profit will be donated to UNICEF Nepal Earthquake Children’s Appeal. 8.2 Main Tools of Promotion Our group took advantage of different tools to promote our products such as poster, stand board and social media. i. Poster We designed a poster which includes all the information needed such as main products, pricing, and venue. People could understand about our products clearly by referring to the poster. This helped us to promote our products indirectly.
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ii. Stand board We made a stand board which included our products’ name and pricing. One of our group members held it and walked around to promote our products. It was a useful tool to attract customers because they could get all the information of the products and pricing easily.
The stand board
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iii. Social Media We used social media, such as Facebook and Instagram, as our main promotional tool . We decided to promote aggressively through social media because it is convenient and free of charge. It is a new trend of promotional strategy since there are a lot of people using Facebook and Instagram nowadays especially the younger generation. By utilizing this media, the newest updates of our products could be easily spread to the people.
Facebook Page Yologurt
Instagram account yologurt_tsnc. (left) We posted pictures of our satisfied customers as a
promotional tool to let more people know about our products. (right)
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9. Sponsorship For our group, we decided against looking for too many sponsors as we believed that the target set is achievable through the sales profit alone. Thus we only approached Ms. Lim, Winter’s mom for sponsorship. We approached her as she expressed her interest in sponsoring us the moment she heard about our assignment.
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10. Distribution For most parts of our products, we prepared and stored the products at our respective houses before bringing it along the next day. We arrive at campus every morning at 8AM to set our stall up. We also took that time to pack some of the food made at home. Products as such would be the curry puffs and sandwiches. The herbal eggs had to be placed into the pot to warm it through. Having packed everything into convenient, individual containers, the products could be easily brought about after purchase. This gives the customers an added motivation to purchase food from us as opposed to the things found in the commercial block. Most of our products, were packed into cups or small plastic bag which is conveniently sized to be held by hand. We placed most of our products at our booth which is located along the corridor outside of the Student Life Center. This enables our product to be seen by the passing traffic and gives us a measure of free publicity. Customers would be able to view the products we have up for sale without us having to promote it. This saved us the time effort needed to promote our products to the customers. By placing our herbal egg cooker at our booth, we also utilized the fragrance of the eggs to attract more customers. Having said all that, we realized that approaching customers personally is still the better sales method. Along the corridor where our booth is located, we would have salesmans there to promote our products personally to the passing people. We also set up a mobile stand. This consists of two members bringing a tray of our products around campus. This method of bringing the product to our customers gives us a better chance of sales as the customers find it more convenient than heading to the shops to purchase food.
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11. Green Measures As a company, we took certain measures to improve the ecofriendliness of company. First and foremost, we decided to obtain our ingredients in bulk. This meant that we only made two trips throughout the week to purchase our ingredients. As per compared to making repeated trips daily, this approached helped us cut down on the greenhouse gas emissions produced when commuting to and fro our destination. Furthermore, we opted for a ice box instead of a fridge as that would cut down on our energy usage. By using a ice box, we wouldn’t need electricity and thus would be able to again cut down on our greenhouse gas emissions. On top of that, when we were ordering the nasi lemak from the supplier, they gave us the option between polystyrene or banana leaf packaging. We opted for the banana leaf packaging as it is biodegradable and it also gives a traditional feel to it.
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12. Human Resource Planning Team Organizational and Job Delegation Chart :
As the weeks progressed leading up to business charity week, our team split necessary roles amongst ourselves, which included: i. Director Led by Caleb, we devised a clear direction and path for both planned and impromptu situations to achieve our objective. ii. Sales Team Kept constantly active and mobile, William, Winter and Jane worked together in pairs under separate shifts every day of the week. We implemented a variety of marketing tactics such as mobile sales around the campus and thoughtout promoting scripts. iii. Production Team Although led by Caleb and Jane, all of us were involved in preparing our products such as yogurts parfait and fruits. Moreover, Caleb was also in charged of buying the Nasi Lemak and Curry Puffs every morning. iv. Accounting and Finance Team Lyvier was in charged of all the cost of ingredients and amount of target profit. The main receipting and monetary issues was also handled by her. We also cleared our expenses cost after the end of the days. v. Documentation and Report Team All the photos, video and nonaccountrelated facts were documented by Lyvier and Caleb. Everyone took part in the final business report.
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13. Evaluation Results
Income Statement of TSNC2 Co. for Charity Drive Event
Revenue Sales Less : Cost of Goods Sold Cost of Goods Sold Gross Profit Add : Donation Adjusted Gross Profit Less : Operating Expenses Stall Decoration Total Operating Expenses Net Profit
(RM 787.60)
(RM 9.40)
RM 2740
RM 1952.40 RM 600.00 RM 2552.40
(RM 9.40)
RM 2543.00
Nasi Lemak Barley Drink Yogurt Herbal Eggs
Selling Price (RM) 3 1 7 2
Units 130 100 96 235
Revenue (RM) 390 100 672 470
Curry Puff Sandwich Mochi Fruits
Selling Price (RM) 2 5 4 4
Units 160 80 50 47
Revenue (RM) 320 400 200 188
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14. Appendix
Typhoid Injection Certificates
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Receipts
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Receipts
Preparation for our business.
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During the charity drive
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15. Conclusion
As conclusion, manage a business is definitely not a simple task. We need to work on different aspect in order to make our business a success one. We also faced different difficulties and challenges in this business as example, lack of customers, lack of products and slow response to our products. We need to consider about the packaging of the product, decoration of the stalls,advertising and promoting strategy of the business. Basically, we learnt few things through this charity drive. Firstly, we have to be sensitive to the the business environment. A business which does not sensitive and ignore the environment of the business will not be successful. For our case, we studies the environment before we decide what to sell. We try to sell food and beverage which is healthy and fresh as people prefer food which is healthier nowadays. Besides, people always tend to prefer products with hygienic and professional packaging. Therefore, we had try to make our packaging looks professional and hygienic in order to attract more customer and build up the customers trust. Besides, we should keep improving on the products we are selling by observing the response of the customers. We have change our products when we found out the products we are selling don't have big market. We also included more products to sell in order for us to attract different customers. Specifically, we add in new products like Nasi Lemak, Barley drinks, Mochi and others. This is because we found out yogurts parfait and fresh fruits have smaller markets. Moreover, advertising and promoting our product is one of the important strategy in order for our business to be successful. We had come out with of different promoting strategy in order to attract customers. For instance, create social media pages, verbal promoting and make posters. We found out that we have to take the initiative to approach our customers. We have to promote and introduce our products to our customer to persuade them buy our products. As conclusion, we have to focus on different aspect to make our business a success one.
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