SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN, FOUNDATION IN NATURAL AND BUILT ENVIRONMENTS (FNBE)

INTRODUCTION TO BUSINESS

FINAL PROJECT CHARITY DRIVE EVENT

Mr. Chang Jau Ho

YK. & Co.

Group Leader: Lim Yang Kang (0320538)

Group Accountant:

Erica Lo Set Lek (0319005)

Group Members Cheok Jian Shuang (0320089) Lucas Ong Tun Cheik (0319939)

Table of Contents

TITLE PAGES

EXECUTIVE SUMMARY 1

OBJECTIVES 2

TARGET MARKET 3

COMPETITION ANALYSIS 4­5

PRODUCT AND PACKAGING 6­7

PRICING 8

PROMOTION 9

SPONSOR 10

DISTRIBUTION 11

GREEN MEASURES 12

HUMAN RESOURCE PLANNING 13

EVALUATION OF RESULTS 14

APPENDIX 15­16

Executive Summary In light of our recent charity sales for our business subject, we did indeed manage to

exceed our target profit and donations, which amounted to RM 2706.40. Along the way

to actually realizing this hard­earned money, our four­man team had been seen the ups

and downs of running our own small, self­sustaining enterprise. Keeping in mind that

these highs and lows originated from excited suggestions, it was indescribably

satisfying seeing them and develop into full­fledged possibilities and eventually results.

The realization that this assignment was not just about hitting the monetary target was

increasingly evident as we bonded as a team to lead each other through each and

every challenge as they presented themselves. From customers’ criticism regarding

product quality to a drain of energy from full­day sales and late­night bracelet making

during mid­week, we always pushed on. Learning everyday and slowly but surely

grasping the skills of our individual responsibilities was insightful process. Definitely

there were times when we nearly broke down in a temper due to exhaustion and

frustration, but we managed to stay understanding and treat each other reasonably.

The result was a brilliant business, which originally start from a scratch. Not forget to

mention a brilliant friendship.

Objective

We target to raise a minimum amount of RM2,500 and donate it to World Vision. We empower to public by giving them opportunity to lend a help to World Vision through this charity drive event. We also want to raise public awareness about the needs of poor children.

Target Market

1. Students at Taylor’s University Lakeside Campus a. Total student population ­ approximately 20,000;

b. Mixed gender and race ­ local students 65%, international students 35%;

c. Mainly aged 18 to 24;

d. From mid to high income families;

e. Have a sense of fashion trends;

f. Generous and caring students who are willing to donate to a worthy charitable cause.

2. Friends, family and relatives a. Mixed gender and race;

b. Various ages;

c. Mid to high income;

d. Interested in trend of fashion.

3. Hand accessories lovers a. Mixed gender and race;

b. Various ages;

c. Strong enthusiasm and passion towards hand accessories;

Competition Analysis Basically, our competitors are the groups which doing the business same as us for charity drive.

Two main competitors which is closer to our group is :

1) Henna Temporary Tattoo Group ( Erica Chin’s Group)

The main business of this group is hand drawing temporary henna. Besides that this

business, they also sell different vintage style of accessories such as necklace, earrings and

bracelets. The stall is located far from us but the business of their stall is very good.

Advantages:

Location of the stall is near to the area of people come into school. This gives a big benefit of

catching the attention of people who just arrive school. Besides than that, the necklace and

earrings are very cheap. The price is cheaper than our products. Besides that, charms on

bracelets can customize by customer and choose what they like.

Weakness:

Although the selling of products of their is quite well, but the products are not on the trend.

Moreover, the bracelets and necklaces only suitable for girls which reduce the area of target.

2) Fashion Accessories and outfit Group ( Ngo Jia Haur’s Group)

This group sell variety of items such as T­shirt, Dota keychain, phone casing and necklace.

Basically, this business have less influence compared to the first one. The only same category

to our products are necklaces which our products are bracelets.

Advantages:

The necklaces are cheap and attractive. People especially girls prefer shiny necklaces due to its

beautiful and elegance. Games lovers will definitely choose to visit their booth at first. They also

use the strategy of reducing price if more items are bought.

Weakness:

Dota products are only provide for the game lovers which the target of customers are limited.

Choice of necklace are limited and customize is not available so customers only can buy few

types of necklace which already display at their booth.

Product and Packaging Product The only product we are selling is paracord bracelet. We do this paracord bracelet by our own

which mean all are handmade. We did a few sample of design for sell and customers also can

design their own paracord bracelet by telling us their favourite design to us. The paracord

bracelet is made up of two items which is a buckle and paracord. We choose different colour to

enable different choice to customers. The colour of paracord we decided to sell are:

1. Tiffany blue

2. Maroon

3. Navy blue

4. Red

5. Khaki

6. Brown

7. Army Green

8. Yellow

9. Pink

There are two types of buckle which is a gold buckle and black buckle.

Golden Buckle Black Buckle

We only provide two types of pattern for the paracord bracelet. There are normal braids and

king cobra pattern.

Normal braids King Cobra

Features:

The paracord bracelet is strong and hard to break as it is made up of paracord. Paracord is

used in a suspension lines of US parachutes during World War ll which symbolise the great and

powerful strength. The design of paracord bracelet is also a trend. It is more to the fashion trend

of hipster. They can match the paracord bracelet with watch or even others hand accessories.

Although there are a lot of paracord bracelet outside, but the customize design and colour is the

only one and it is only for customer themselves.

Packaging No packaging was done. We decided to hand in to the customers directly and there is not

necessary to do this. People usually will put into their hand directly after purchase.

Pricing

The prices were deliberately set slightly higher than the open retail market to achieve a higher

profit margin. However, we were confident that we could achieve our sales target, as we had

faith that the caring students and lecturers at TULC would be motivated to contribute to a worthy

charitable cause.

Product Selling Price:

Basically, we were selling the bracelets in all sort of designs (single/ mix­coloured/ normal

braids/ king cobra) with the same and reasonable price, which was RM 20.

Product Cost Prices:

a. Buckles(black/ gold): sponsored;

b. Paracords (in all sorts of colours) : sponsored.

Strategies:

a. Reasonable pricing;

b. Attractive designs of bracelets;

c. Customize service is available;

d. Location of stall along a busy main walkway at TULC;

e. Advertise our own business on social medias (Instagram);

f. Word­of­mouth advertising.

Marketing & Promotion

Our main tools for marketing our products were:­

1. Digital­produced posters

Our posters were published on the bulletin board behind our booth to attract customers

and to provide them the knowledge of our cause. The minimal posters enticed many customers

to learn more about our product and our cause.

2. Direct face­to­face conversations

We provide services in consulting the customers what to design for their paracord

bracelet. All the information and question about the paracord bracelet is discussed one by one

and final decide is based on customer’s needs.

3. Social Media applications

Instagram is the hottest apps we used to spread and promote paracord bracelet. All the

youngster or paracord lover directly contact us through instagram. People can easily understand

and have a clear view of what is paracord bracelet on this apps. We also take the advantage of

young people who love to play instagram.

Sponsors

We decided to not approached neither individuals nor corporate entities for sponsorship.

Instead, we tried to have our parents as sponsors since this reduced the possibility of getting

rejected, and also, time can be saved. In this charity drive, we managed to collect an amount of

RM 300 from parents. We use the easiest and fastest way to find sponsorship which is our

family. They willing to help in financial way. After our discussion, only three of our group mate

have to sponsor RM 300 in total. While another mate willing to sponsor all the fees for paracord.

Distribution Our products for the charity drive were made on the spot at our booth. The products were not

replenished throughout the day as the number of products expected to be sold were estimated

through calculation of expected sales volume to be made each day. This is to ensure that the

quality of the products are always on the top notch. The quantity of products sold each day was

also controlled by the amount of profit generated after each sale; it was essential for the target

to be reached each day. All products were set up before the week ended so the customers

wouldn’t take too long to get their products. Customers were also given the chance to order

products through calling and texting us. During some peak period, eg: lunch time, we knew that

it will be the most crowded time of all day that the volume was made up by more aggressive

sales method ­ like more convincing sales talk and louder calls. In the end, no attempts at stock

clearance discounts were necessary.

Green Measures As all the products are inedible, relatively no environmental waste is produced. The excess

paracords are being kept for the next use. As the majority of distribution is done face­to­face,

which the customers approach our booth when the bracelet is ready, so the carbon footprint is

low.

Human Resource Planning Due to the limitation number of each group, so every one of us in charge of several job scope.

Team Member Job Scope

Lim Yang Kang Project Leader, Social Media Manager,

Paracord Bracelet Designer, Paracord

Bracelet Maker

Erica Lo Set Lek Accountant, Treasurer, Receptionist,

Saleswoman

Cheok Jian Shuang Receptionist, Paracord Bracelet Designer,

Paracord Bracelet Maker, Saleswoman

Lucas Ong Tun Cheik Salesman, Paracord Bracelet Maker,

Marketing Strategist

Team Organizational Chart

Evaluation of Results

It is in the author’s opinion that we have done really well in sales. We have succeeded in

generating massive demand for our products, and are able to produce enough supply to meet

that demand. However, we encountered pitfalls with the arrival of the buckles and paracords

which purchased through the web. The arrival of both items were always delayed due to some

technical issues, causing the delay in our bracelet­making process. In addition, we ran into

massive difficulties in production. Although in the end we were able to meet the demand, there

is no denying the massive efforts, energy as well as overhead costs needed to sustain sizable

production rates.

If this event were to be run again, we would streamline our production, search for another

trustable material suppliers, and perhaps we could have ignored the negative condemnation

received and instead, have confidence in ourselves and our cause.

Profit and Loss Report

Statement of Income For YK. & Co for the Business Charity Event ended 19 June 2015

RM

Total Sales Revenue 2820.00

LOSS: COST OF GOODS SOLD

Paracord and Buckle 418.00

GROSS PROFIT 2402.00

Total Donation 27.20

Sponsorship from family 300.00

ADJUSTED GROSS PROFIT 2729.20

LESS : OPERATING EXPENSES

Lighter 4.00

Receipt Books 17.80

Document for Photostat 1.00

NET PROFIT 2706.40

Appendix

Group Photo

While we are selling the paracord bracelet, we are making them as well.

Receipts for Operating Expenses