Schani Daniel Bharat Teoh Sze Ming Nge Jia Chen

Tan Yincy Simpson Chin

SCHOOL OF ARCHITECTURE, BUILDING & DESIGN Foundation of Natural Build Environment (FNBE)

Introduction to Business [BUS30104] Submission date – 28th November 2014

B. Objectives

a) For this particular charity drive we have decided to donate our earning to the ‘World

Vision’ organization. We have chosen this particular organization, because poverty has been

one of the longest problems that the world has faced. We felt as though it would be the

most appropriate cause to support as everyday we see how much food is wasted, by our

selves and the ones around us.

b) Our aim and target to donate towards the organization was RM 2500, which would mean

almost 90% of target sales had to be met, before even thinking about achieving that target.

c) http://youtu.be/yV2eBGqv0MM

C. Target Market

a) The Malaysian community consists of mainly 3 different races, Chinese, Indian & Malay.

Amongst these races the cultural differences are in ample amounts, in terms of religion and

way of lives. Furthermore majority of the students in Taylors are of Chinese origins

(Buddhists and Christians), followed by Malays (Islam) and then Indians (Christians and

Hindus). Assuming that even though various nationalities of students attend Taylors a

generalized assumption can be made, that most of the student that study at Taylors

University are of a middle or upper stage of the socio economic scale. Thus would be

financially stable to afford the products that would be sold. Majority of Malaysians enjoy

eating, the diversity and availability in the various types of food sources that solidify the

consensus that eating is the number one infatuation that all Malaysians share.

Due to the different cultural backgrounds and exposure, this would then mean, the type of

products being sold would not only need to satisfy their common needs, but also connect to

them in a particular sense as well. However, having students, as primary targets would

imply that they would be more open and less reluctant to more westernize products.

b) Cheap is the word that stands out when thinking about the masses in Malaysia, this is

probably the most common stereotype that is evident amongst the peoples? Anything that

is cheap is right, no two ways about it. The demand and supply that comes of the lesser

option is generally most popular. Other than the obvious needs and wants that are of basic

clarity. The demand for products that possess a great quality is also a massive subjectivity

amongst the Malaysians.

c) Spending power is specific to the area we are planning to sell at, in this instance the

prescribed area would be Taylors University. Based on this evaluation and the observation

of the functions of the commercial block, we noticed that students are willing to spend a

minimum average of thirty-five ringgit, a day. Based on the pricing of the various restaurants

around the campus, we deducted that out of all the restaurants; the ‘Mamak’ would be the

most cheapest, it’s a fall back restaurant when students or lecturers are tight or low on cash.

Furthermore the lecturers at Taylors can be seen, as top of the spending chain, due to the

status of possessing a job, hence would demean the greater and less stressful availability of

spending power.

D. Competition analysis

Two main competitors would be the businesses that are actually selling products or

distributing services that are totally different as compared to our products. The stall next to

us were sponsored massively, as they possessed a Coco Cola machine as well an ice cream

dispenser. This would already prove to be super useful resources in the long term. As the

amount of profit they made and the customers they would attract would be of a wider base,

due the humid/ hot climate that Malaysia possesses, it would mean, people would

automatically seek, a cold beverage or a cold dessert to sooth their warm conditions.

The other group, that proved to be a ‘threat’ would be the group that was offering other

services that neither of the other groups possessed, the availability of ‘henna’ a form of non

permanent tattooing that is greatly popular amongst teenagers. This would mean, that their

target market would be more specific to girls, and shockingly a large number of boys now

too, as they’re more willing to try new things.

However I felt like due to the fact that both booth had more resources and different

services compared to us, it also meant that, no other groups actually sold what we did,

which were chicken floss tarts, longan pudding, unique muffins and chocolate chip cookies.

Their weaknesses were probably how they weren’t really able to handle large number of

customers due to inexperienced student working at their booths.

E. Product & Packaging

For the products of our charity drive, we decided to sell tarts, muffins and puddings. We

initially thought of selling more items such as marshmallow dips and drinks but we cut them

down to 3 items in the end that we think would be easier and could get more respond from

the customers.

Products

Item 01 | the muffins would be our main item sponsored by Bake & Brew café from Penang.

A total of 129 muffins were sponsored, consisting different flavours such as red velvet,

chocolate chips, green tea, blueberry, molten chocolate and poppy seed. We think that the

muffin would get a huge respond as who doesn’t like something sweet and easy to grab on

the go? And indeed it turned out to be a popular item at our stall. It received a pretty good

respond from the customers, each praising the flavour and the sweetness that is perfect to

the point.

Packaging | As for the packaging of the muffins, they were individually packed. The

packaging would attract customers as it was being placed in a transparent small packaging

bag, which shows those yummy looking muffins. The muffins fit the bags perfectly, which

give an illusion that the sizes are quite huge. It also looks clean and decent from our stall.

Item 02 | the chicken floss tarts is our second item. One of our group mates, Simpson Chin

purchase stocks from his aunty with the original price. It is basically a tart with chicken floss

fillings. We think that customers would like it because they are quite special; very few

people had tried it before. It also has a unique look. It would definitely spark up passer-by’s

interest.

Packaging | There were also two kinds of packaging for the tarts. For those that are going to

be sold separately, we packed 4 tarts in a bag. It was packed in a transparent packaging bag

like how the muffins were packed. As for the second packaging, the tarts were packed in a

bottle. The bottled packaging’s are for customers whom are interested to buy the tarts in a

huge and cheaper amount. The packaging would attract customers because they were

transparent and showcased the unique and appealing appearance of the tarts. Potential

customers would be curious about it and have a look when they are passing by our stall.

Item 03 | the third item, homemade puddings sponsored by our fellow group mate, Jason

Nge. The puddings are longan flavoured, with canned longan flesh in each one of them. We

think that customers would like it, as it was chilled and lightly packed, absolutely suitable on

warm weathered days. It received quite a lot of good feedbacks and were quite popular as it

was served chilled which cooled down people’s thirst.

Packaging | the puddings were packed in a really simple packaging with no ornaments to

bring out that homemade character. The packaging was a transparent small container so

that customers could see what it contains. Although it is not fancy looking but it promoted a

more organic look.

YOUTUBE VIDEO LINK:

http://youtu.be/KR4hWBNGygY

https://www.youtube.com/watch?v=mtTKj12rXUU

F. Pricing

As for the pricing of our items,

Pudding Muffin Chicken Floss Cookies Chocolate Chip Cookies

S. Price RM3.50 RM4.00 RM6.00 RM6.00

Units 142 180 295 55

Rev RM497.00 RM720.00 RM1,770.00 RM330.00

Pudding Muffin Chicken Floss Cookies

Chocolate Chip Cookies

C. Price RM0.25 RM2.90 RM4.75 RM1.80

Units 142 180 295 55

Rev RM35.50 RM522.00 RM1,401.25 RM99.00

Our products are quite popular, as the muffins are delicious and worthy of its price; the tarts

are unique and fresh to the customers as they rarely see anything like it before; and the

puddings are chilly and yummy; which allowed us to set the pricing higher than the unit cost

price. We set our pricing for all of the products fairly and in an acceptable range, so that

customers would not feel being cheated on.

We also came out with some strategies in advance in case we have difficulty selling our

products.

Sell our products outside of campus to working adults whom have the spending

ability to buy them

Walk around campus or offices and approach potential customers instead of sitting

around the stall.

G. Promotion

a) Change for change. By sparing your change into the donation box, you can change

somebody else’s life.

b) Our 2 main tools for promoting our products are giving free samples of our products, and

also face-to-face conversation. Firstly, we gave free samples of both our cookies by crushing

them into smaller pieces and leave it there on the table for the customers to try. This

approach showed us decent results as most of the customers who tried the samples bought

our products. However, we do have some other customers who just tried free cookies and

walked away.

Secondly, we did face to face conversations. This approach showed us great results as most

of the customers do not know what products we were selling. By conversing with the

lecturers, the students and some of our friends, they got to know what we were actually

selling and adding on by letting them try our samples, they bought our products almost

instantaneously.

Other than these two, we did posters as well. However, it was not as effective as not really a

lot of people were paying attention to the boards behind us.

c) We have chosen the two main strategies because we thought that it would be easier if we

just communicate with our customers instead of letting them discover us by themselves. We

have to be bold and not be afraid of rejection in order for the two strategies to work. By

approaching them and conversing with them, it made them feel that we are very sincere in

selling our products. Then, by letting the customers try our products, it helped assuring the

quality of our product, and hence customers are more willing to spend on our products.

H. Sponsors

a) For sponsorship wise, we approached our relatives first, and then we tried to find

sponsorship from several big corporate like for example The Great Eastern and

Permasteelisa.

b) Our relatives were very enthusiastic in donating some amount of money. We targeted

them because we know them personally and the chances of them donating are higher than

other business groups. Then, we targeted the 2 big corporate because some of our relatives

are working inside and so we tried our luck.

c) Jason’s mother sponsored all the puddings; also his relatives sponsored a total of RM650.

Yincy’s mother sponsored a total of RM100 for the decorations and another RM300 for the

tarts. Then, Schani and his mother sponsored the chocolate chip cookies and also another

RM300 for the tarts. Simpson’s uncle sponsored RM300 for the tarts. And lastly, Sze Ming’s

father sponsored all the muffins that we sold, including the transportation fees. All

monetary sponsorships were done in the form of cash.

d) We have to send our official sponsorship letter with the Taylor’s letterhead to the two

corporate. They agreed to sponsor quite a large sum of money for our group, however the

whole process would take about 3 to 4 months time, and we do have the privilege of time.

Unfortunately, we have to abort both sponsorships. Then, for our relatives wise, some of us

talk to them through phone calls, and some of us asked for sponsorship in face-to-face

conversation.

K. Human Resource Planning

For our group, Jason was voted the project manager, Schani was the accountant, Yincy was

in-charge of the advertising, Simpson and Sze Ming were given the roles of Sales and

Marketing supervisors respectively. However, all of us helped in promoting and selling our

products. Jason did a good job of organising us as a team, by teaching us what to do so that

we can sell off our products quickly. Also, with the tips given by Mr.Jo, our sales increased in

a faster rate. We distributed our jobs equally, so when for example Simpson and Schani

were selling the products in the office, the other 3 will be looking after the booth and vice

versa.

I. Distribution

a) We used a vehicle (car) that was possessed by one of the group mates to drive from the

suppliers around Klang Valley and to transport it back to campus. This was highly efficient

and productive. There was no lag time and we always opened out stall in advance.

b) During instance of bulk selling, we encountered customers that dwell in KL, and then we

had to transport the mass order of chicken floss there. We did this on time and in sync with

our stall opening and closing timing. Furthermore we took turns doing different tasks at the

booth this made do the diverse tasks easier.

c) An average number of customers were actually approached and during peak hours, all

members were at the booth to deal with the large number of people. However during less

stressful hours, we were able to walk around to the staff rooms, lecture halls as well as the

commercial block to sell ours products.

d) A method used by our booth, was through promotion using close friends, as well the

social media such as whatsapp, this was our means of communication with any of the

customers that wished to order from us or inquire about when our booth would be open

next, etc.

J. Green measures

The products that we had chosen as following:

A) Longan Pudding: We totally made it by our own so it considers as an environmentally

product so it didn’t gives any effects to our environment.

B) Chocolate chip cookies: The ingredients that we bought in making the cookies were

Hershey chocolate chip that made by their own specific factories. So it considers as

un-environmentally product so we reuse and recycle the empty bottles to reduce its

hazardous effects.

C) Muffin: Muffin was the main product that we sold for the charity drive that

sponsored by the Bake and Brew Cafe. As it made by machines that release smokes

to the environment so it considers as un-environmentally product. We had recycle

the packaging box for the environmentally purpose.

D) Chicken Floss Tart: Is homemade by Simpson’s aunt so it consider as an

environmentally product

B) Packaging:

A) Longan Pudding: The packaging of the Longan Pudding was made by the plastic,

which can be reused and recycled.

B) Chocolate chip cookies: The packaging of the chocolate chip cookies was the plastic,

which can be reused and recycled.

C) Muffin: The packaging of the muffin was made by the plastic, which can be reused or

recycled.

D) Chicken Floss tart: The packaging of the tart is also made by plastic so is also consider

reusable.

C) Carbon footprint

Use ice box instead of refrigerator to save electricity

Reuse the plastic cups and spoons

D) Product’s waste

We had collected mostly of the products’ waste after finished by the customers in a

big plastic bag. The products’ waste that we had collected included plastic cups, and

plastic spoons. After that, we threw the entire product’s waste into the recycle bin in

Taylor’s University to be recycled.

E) Reduce the consumption of resource

Other than that, our group is pretty much environmentally friendly. We take this

chance to reduce the consumption of resources like paper, water and electricity as

we used recycle paper for the decorations and etc., and we kept the water in our

icebox clean so we don’t have to change it many times.

Income Statement of Group 8 (Jason) Charity Drive Event

Revenue Sales

RM3,317.00

Less: Cost of Goods Sold

RM2,057.75

Gross Profit

RM1,259.25

Add: Donations & Sponsorship

RM1,971.00

Adjusted Gross Profit

RM3,230.25

Less: Operating Expenses Promotional Expenses RM68.25

Stationary Expenses RM20.00 Typhoid Vaccine Injection RM300.00

Total Operating Expenses

RM388.25

Net Profit

RM2,842.00

Pudding Muffin Chicken Floss Cookies Chocolate Chip Cookies

S. Price RM3.50 RM4.00 RM6.00 RM6.00

Units 142 180 295 55

Rev RM497.00 RM720.00 RM1,770.00 RM330.00

Pudding Muffin Chicken Floss Cookies

Chocolate Chip Cookies

C. Price RM0.25 RM2.90 RM4.75 RM1.80

Units 142 180 295 55

Rev RM35.50 RM522.00 RM1,401.25 RM99.00

Sponsorship Letter

REFLECTION VIDEO : http://youtu.be/jZlBuByiHe4

TEMPORARY RECEIPT FROM WORLD VISION