business charity drive report final
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SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN Centre for Modern Architecture Studies in Southeast Asia
Foundation of Natural & Built Environments (FNBE)
Introduction to Business [BUSF0103]
Lecturer: Chang Jau Ho
Final Project: Charity Drive Event
30% Group Work + 10% Individual
Submission: Friday, 20th June 2014
Member List: Tan Ling Rong 0315645 Ken Wong Chun Thim 0315534 Ng Yuheng 0315476 Lim Jern Jack 0317139
Table of Contents
Title Page
a. Executive Summary 1
b. Objectives 2
c. Target Market 3
d. Competition Analysis 4
e. Product and Packaging 5
f. Pricing 6
g. Promotion 7
h. Sponsors 8
i. Distribution 9
j. Green Measures 10
k. Human Resources Planning 11
l. Evaluation of Results 12 - 13
m. Appendix 14
n. Reference 15
a. Executive Summary
This is one of the most energy and time straining project as it expect us to deliver
the results in terms of income instead of normal coursework or essays. But we gained
an immense amount of experience. To begin with, this project provides us the
opportunity to contribute to society. We chose SPCA because we want to help stray
animals as most of our group members have pets at home. We came up with a few
ideas of our product and it is mainly targeted at Taylor’s students as they are our main
market. To deal with this, we make use of the hot weather and sell chilled fruit puddings.
We also sell snack seaweeds to students. It would be tempting to have some bites while
having leisure time with their friends. We also set up computer gaming service as the
demand for it is high because Dota 2 is a really famous game and students would be
challenged to play with strangers. SPCA also provided us with T-shirts, notebooks and
car stickers to sell. We manage to sell it out almost all except for 4 XL T-shirts. We
implemented several marketing strategies which includes psychological marketing and
selling our products at different places to avoid competitors. We discussed our pricing
and also adjusted based on our friend’s review. During the charity drive event, we
encountered fierce competition from other groups but luckily we sold our products early
and had achieved 75% of the target, we focus on having fun and the learning process
instead of stressing ourselves to meet the target. Last but not least, we earned
RM1835.25 in the course of 3 weeks which is RM164.75 less than the targeted amount
but we are satisfied with it as we did a good cause.
b. Objectives The Prevention of Cruelty to Animals, Selangor, Malaysia (SPCA Selangor) is the
charity organization that we chose. This is because it is a trustworthy animal welfare
organization, which provides adoption program, investigation of cruelty reports, humane
education, assistance to community animal caregivers and run a dedicated, low cost
spray or neuter clinic. And more importantly, it is a well-respected non-profit
organization that is gaining popularity in Selangor. Besides, we knew that this
organization needs more funds to upgrade their facilities, build shelter and buy medicine
for the cats and dogs.
Thus in this final project, we had to raise fund of a minimum of RM2000 for SPCA
as our target. We targeted to sell hundred cups of puddings, hundred packs of seaweed
snacks, 20 T-shirts, 20 notebooks, 30 car stickers, and setting up a computer game
station.
The YouTube link of our video: http://www.youtube.com/watch?v=7jA7wehOjpY&feature=youtu.be
c. Target Market For our target market, we aimed to sell our products to students and lecturers
within the campus as our main customers, and also other universities to increase our
profit. Our customers who are students and lecturers will usually pass-by the location in
front of Student Life Centre before going to or from the Syopz Mall. They would normally
be attracted by the cooling pudding as a snack and buy some merchandises of SPCA
because the designs of the car stickers and t-shirts are quite nice. However, the
spending power of these customers was comparably high because they have a good
financial background and higher standard of lifestyle. We hoped to sell more to female
customers, as they liked the cute animal designs, and dragon fruit flavoured pudding.
During the 3rd and 4th day, we opened computer gaming service which is targeted
directly at gamers in Taylors. We challenge the passer-by with psychological marketing
as man is a creature of ego, they are willing to pay to prove themselves in front of their
social groups by playing and getting high scores at our booth.
d. Competition Analysis
Who are they? Akmal Jamal’s Group Chong Yee Ching’s Group
What are they selling?
They are selling t-shirts and video game services. The t-shirts are sold at RM25 and the video games at RM3. The products they sell are similar to us.
They are selling gourmet ice creams at RM5 and carbonated drinks in glass bottles at RM10. They are also selling variety of breads ranging from RM4 to RM 7.
What are their strength and vulnerabilities?
Their group’s strength is they have a wide variety of games compared to us. We only have one game available for play which is DOTA 2. But we made up for our weaknesses by using this one game which is very popular among students. Besides that, A.J’s group weakness is they only sell one type of t-shirt design. Compared to us, we have a variety of designs to choose from.
Their group’s strength is they have unique product that is uncommon in normal commercial markets. It arouses curiosity among passer-by as it is special and people want to try something different. Their only weakness is they have to take risk and invest a large amount of capital in order to kick start their business. This may inquire loss if unhandled properly.
d) Why would/do their customers buy from them?
Customers would pay for their video game service as they have a variety of games to choose from. Most people would choose their service because they are using a PS3 console whereas we are using computers. Since not everyone has a PS3 console at home, they will most likely pay to have a chance play. As for their t-shirts, the one reason customers might buy from them and not us is the design of the t-shirt. Their t-shirt is catered more towards the students in the university as their design is based on Taylor’s University. Our t-shirts are sponsored by SPCA therefore the designs are not marketed towards students in the university.
Taylor’s students are mostly from upper class therefore they are well suited to leisure lifestyle. They are willing to pay to enjoy something out of the blue to fulfill their pleasure. Besides that, Jerry’s product are all exotic and sold at appropriate prices, they also implement “Happy Hour” which they will give discount to customers at certain hours to clear out their stocks. This is a very good strategy to attract customers to buy their product.
e. Product and Packaging
Products and Services Features and Benefits Packaging Customer Attraction Analysis
Dota 2 gaming service Relieves stress among
students, meet new
friends from
tournament
Mostly male students
who wants to challenge
other players
Fruit Puding Refreshing and cools
down body on hot days
Mostly female students
and staffs too
Tao Kae Noi Seaweed Comes in many
flavours, perfect snacks
for leisure time
Mostly students in large
groups or students who
are going to classes,
they want to have
some snack before
class
SPCA T-shirts Made of high quality
cotton and comes in
different design, serves
to create love animal
awareness campaign
Mostly our friends and
staffs around campus
due to its low demand
and popularity
SPCA Notebooks Features a cute
designed cover page,
students can use it to
take notes in class
Mostly female students
SPCA Car Stickers Creates awareness of
start caring about
animals around us and
help them whenever
we got the chance
One of the best-selling
products due to its
attractive design and
right price
The YouTube link of our video: http://www.youtube.com/watch?v=7jA7wehOjpY&feature=youtu.be
f. Pricing
Products Unit Selling Price
(per unit)
Product Cost Price (per unit)
Product Popularity Strategies in Price Control
DOTA 2 gaming
service
RM 5
RM 0.00
Popular among male
customers
Although other booths set
their price at RM3 per game,
we dare to hike our price up to
RM5 due to our successful
marketing
Fruit Pudding
RM 5
RM 1.26
Popular among female
students because of its
attractive pink colour
dragon fruit content
We sell our fruit pudding at
RM5, we agreed that although
it was quite far-fetched but
with convincing sales talk we
manage to sold out all
Seaweed
RM 5
RM 3.50
Popular among
students who are sitting
down in a social group
having leisure time
RM5 is our price but we only
earn 43% more from the cost
which is unfeasible but if we
hike up the price customers
would reject it
SPCA T-shirt
RM 25
Sponsored
T-shirt are the hardest
to sell, but we manage
to sell it to our friends
and also some staffs in
Taylors
The price of SPCA
merchandise are all preset by
SPCA
SPCA notebook
RM 10
Sponsored
The cute design of
these notebooks garner
a lot of request from
female students
The price of SPCA
merchandise are all preset by
SPCA
SPCA car sticker
RM 5
Sponsored
Car stickers is a fast
selling product as it is
cheap and also it shows
support for SPCA
The price of SPCA
merchandise are all preset by
SPCA
g. Promotion
a) Our marketing message is “DOTA FOR LIFE” which implicates DOTA 2 as a game in
which gamers will treat it as part of their life but it actually has a much deeper meaning.
“DOTA FOR LIFE” means by playing this game “DOTA” the players will be able to enjoy
the game while indirectly contributes to the welfare of stray animals. The money they
paid to play will be channeled to SPCA which will improve the lives of rescued animals
by providing them with food, medicine and shelter to live in. Thus the message “DOTA
FOR LIFE” brings out the cause we want to do.
b) Our 2 main tools for promoting are face-to-face conversations and giving out
pamphlets from SPCA. Our business is a small startup business which requires face-to-
face marketing in order to promote our product. It is because we don’t have the capital
and resources to advertise it in other medias, we also don’t have the influence and
recognition by the crowds thus approaching people one by one is our best course of
action. SPCA had provided us pamphlets which can be given freely to our customers,
this boosted our donations as the people trust us and knows we are reliable and the
money they donated will be channeled to SPCA. It saves us a lot of time explaining to
the customers of our cause.
c) We also researched marketing strategies online and executed some of them. These
include selling many types of products to cater customers of different needs and also
psychological marketing which we manipulate the human ego psychology to make
gamers come pouring in to our booth. We implemented high score boards and also
“Challenge the game master” campaign to tempt the passer-by to fork out their money
and show off their ability.
The YouTube link of our video: http://www.youtube.com/watch?v=7jA7wehOjpY&feature=youtu.be
h. Sponsors
We have approached several potential sponsors and requested for sponsorship
and most of them that we have contacted are from corporate entities. For example, we
have contacted more than 10 potential sponsors but none of them responded, some of
them were Walls, Kings, Vitagen, Anlene, Eco Brown, Star, F&N beverage, Tutti Frutti
and many more. The ones that responded very spontaneously were F&N and Tutti Frutti
and we put high hopes towards them that were potentially willing to sponsor us but we
were let down after weeks and weeks under the abyss and we did not get a single reply
from them. The reason why we target them is because we were confident that with the
name of SPCA organization it could fish some sponsorship so that it could lessen our
burden during our charity drive. Besides most of the potential sponsor that we have
contacted are suppliers of our products which were initially ice cream sandwich but
eventually we were turned down several times and we decided that this ice cream
sandwich idea might work if we have sponsorship because our cost for our ingredients
could be covered. We approached our sponsors by contacting their customer service
hotline and asked whether we could speak to the person in charge of any sponsorship
and then when we were asked to send our proposal to them for confirmation, we sent
our authorization letter and proposal from Taylor’s University via email. We personally
never get the chance to meet any of our potential sponsor in person because none of
them agreed to sponsor us any amount and we opt to earn every single penny by
ourselves, it might seem to be a big challenge but our group still manage to pull it off
with a strategic business plan.
i. Distribution The products we sold were homemade fruit pudding made by Tan Ling Rong,
which had very little costs and another business we did was a “Dota 2 one versus one”
tournament which involved no costs at all. Besides, because we were doing this for
SPCA, one of the merchandiser supplied us with their inventories such as notebooks,
car stickers, T-shirts and many more. We were told that these inventories could be used
to increase our profit as it would surely attract animal lovers’ attention and raise the
convincing power while we ask for donations. Ling Rong got his fruit pudding
ingredients by going to the Giant Hypermarket nearby his house, which coincidently had
a promotion going on as well which resulted in the reduction of cost. We provided our
own transportation because everyone in the group has a car that could safely drive us
to the designated location.
We sold our products via face-to-face technique so that it was harder for them to
reject because when customers were approached, there is a higher convincing power
for customers to buy our products. Besides, we also went to other universities and
campus to sell our products so that we could widen our business area and it really did
increase our profit by a huge amount. The other reason why we did so was because we
realised that there were too many competitors roaming around Taylor’s University and
customers around the campus were getting annoyed by hordes of students approaching
them asking for donation and so we opted to other universities and campus.
Throughout the charity week, we decided to officially launch our “Dota 2 - 1
versus 1” championship and all the money collected will be counted as our profit as well.
We noticed it was not a bad idea indeed because it required 0 cost as well. Students
lined up and crowded our store to witness the action between challengers and chairs in
front of the computer were occupied all the time. The reason why we first thought of this
idea was because we knew how famous Esports (Electronic Sports) were among
students and it would attract crowd to our stores.
j. Green Measures
Our products are entirely environmental friendly, the reason why is because we
used very little amount of water and other natural resources. Our product’s main
ingredients are gelatine, natural colouring, some herbs and some fruits. It did not
corrupt the natural surrounding or deplete any natural resources. Besides, our product
packaging was environmental friendly as well, we used small recyclable plastic cups
and fill them with our herbal jelly and beside our stall we placed rubbish bags that the
purpose of these rubbish bags was to collect those plastic cups and recycled them. As
for carbon footprints, we left completely zero carbon footprints behind as for our
distribution method is via face-to-face delivery.
As for our Dota 2 tournament, we usually launched it during peak hours where
many students will pass-by our booth and gather as much people as possible in order to
attract customers. We tried to save as much electricity as possible by “Sleeping” the
computer whenever we could, because by “Sleeping” it, it consumed less power and
saved electricity in return. But there were days when people kept on sitting in front of
the computer non-stop and we had no chance to “Sleep” the computer at all which left
us no choice but to run the business as usual.
Besides that, the decorations at our booth are all recycled cardboards and
papers we salvaged from architecture studio. We also brought a mini whiteboard and
write on it to prevent usage of papers and manila cards as our high score board.
k. Human Resources Planning
Organizational Chart
Project Manager
In charge of all business
activity and monitor the
business’ overall
performance
Sales
In charge of marketing
the product and boost
the amount of product
sales in order to improve
the business overall sale.
Accountant
Responsible for financial
transactions and related
issues of business.
Holds full authority and
access to the money.
Advertising
In charge of promoting
and advertise the
product through different
media or channels in
order to let unaware
potential customers to be
aware about our
business products.
Tan Ling Rong (Leader)
Ken Wong Chun Thim (Assistant)
Tan Ling Rong plans and
organize the products
that should be sold and
monitors business
performance, whereas
Ken assist Ling Rong in
organizing and planning
of the business.
Ng Yuheng
Ken Wong Chun Thim
Yuheng and Ken plans
and decide how to raise
the amount of sales by
coming up the idea of
psychological marketing.
This strategy significantly
raised our sales and
increase our profit as
well.
Ng Yuheng
Yuheng went to online
and advertise the
business through social
media via Facebook,
Twitter and Instagram.
Besides, Yuheng also
contacted several
potential sponsors in
order to advertise and
request for sponsorship
but eventually none of
them responded which
was quite disappointing
but ultimately we
manage to sum up a
total amount which is
significantly close to our
target amount which was
RM1835.25
Lim Jern Jack Jack distributes all the
receipts and regularly
monitors our profit and
financial issues. Besides,
Jack also monitors our
costs spent on products
and tries to reduce it to a
minimum amount to
increase our profit as
well.
Executive
Leader of the departments
l. Evaluation of Results
Income Statement of Group A Charity Drive Event
Revenue Sales
$1,845 Less: Cost of Goods Sold
$476 Gross Profit
$1,369 Add: Donations
$481.25 Adjusted Gross Profit
$1,850.25
Less: Operating Expenses Receipt Books $15
Total Operating Expenses
$15
Net Profit
$1,835.25
Pudding Seaweed Tshirt Notebook Car sticker Dota
Selling Price $5.00 $5.00 $25.00 $10.00 $5.00 $5.00
Units 100 100 16 20 30 19
Total $500.00 $500.00 $400.00 $200.00 $150.00 $95.00
Pudding Seaweed Tshirt Notebook Car sticker Dota
Cost Price $1.26 $3.50 Sponsored Sponsored Sponsored $0.00
Units 100 100 20 20 30 -
Total $126.00 $350.00 $500.00 $200.00 $300.00 -
In conclusion, we gained majority of our profit by selling SPCA’s merchandise such as T-shirts, notebooks and car stickers. Besides, we sold additional products to increase our profit and the items sold were Pudding and Seaweed. Easier to be said, the amount we got from selling our own products after the cost have been deducted was RM374.00 from Pudding, RM150.00 from Seaweed, RM95 from gaming and RM750.00 from SPCA’s merchandises. Summing up the amount we’ve collected through donations of RM481.25 and deducting costs for receipt book, we’ve collected a total amount of RM1835.25.
What we did right was we started our business fairly early, two weeks before the charity drive event, the reason why we did so was to lessen our burden and stress during the charity drive week because we know there will be tons of competitors lurking around and customers would avoid people who are selling stuffs or asking donations. We went around the campus trying to sell as much as we can two weeks before the charity drive and it really did help us a lot because by the day the charity drive week started, we have already accumulate the amount near to our target which is RM1500. Besides hunting customers around campus, we also went to other universities such a Sunway University, INTI College and walk around SS15 just to sell our products and collect donation from the students there. The hard work paid off and we were able to relax during the charity drive week because we were already so close to our target. Regarding to what we did wrong was, we forgot about our costs and expenses that had to be deducted. After accumulating the total amount, we forgot to subtract our cost from the amount and we thought that we have done everything until one of our member Ken Wong Chun Thim realized that we still have not deduct our cost from our collected amount. Therefore after deducting the costs and other expenses, we were lacking some of the amount that had to be filled until we have reached the target but the charity drive event has seem to be over and there was nothing we can do. Next mistake that we have done was, we contacted all kinds of companies and corporate for donations and sponsorship but we have neglected and overlooked the small corporate companies that would be willing to help us otherwise. We were so desperate for huge amount of sponsorship that we only approach the big daddy but neglect the underdogs. We got the advice from our seniors that we should contact small corporate companies because they were the ones the needed to be advertised not the big corporate companies that has their names already established and well known. There were many more mistakes and flaws that we have done but we could have listed all of them. But from the bright side, we have also done some wise and right decision such as starting early and applying zero costs businesses. If we were given one more chance, we would implement the same strategy but starting at even earlier before the charity drive event to avoid competitors at all cost.
The YouTube link of our video: http://www.youtube.com/watch?v=7jA7wehOjpY&feature=youtu.be
m. Appendix
Donation receipt The total amount is RM1835.25, RM750 from SPCA merchandise sale and RM1085.25 from donation and our product sale deduct cost. The manager listed the money we earned from our sales product as donation though Net profit of RM619 through gaming, pudding and seaweeds Another RM481.25 from donation Additional cost of RM15 to be deducted from the sum of both earnings to get RM1085.25
Sales Receipt Submitted hardcopy
Reference Marketing and product strategies for growth. An Enterprise Rent-A-Car case study.
(n.d.). Diversification. Retrieved June 19, 2014, from
http://businesscasestudies.co.uk/enterprise-rent-a-car/marketing-and-product-
strategies-for-growth/diversification.html
SPCA Selangor, Malaysia. (n.d.). SPCA Selangor, Malaysia. Retrieved June 19, 2014,
from http://www.spca.org.my/v51/
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