FOUNDATION IN NATURAL AND BUILT ENVIRONMENTS

INTRODUCTION TO BUSINESS (BUS30104)

CHARITY DRIVE REPORT

PRETTY PASTRIES

Group Members:

1. Bridget Tan Su Ting (0318370)

2. Ahmad Razin (0318779)

3. Claudwie Tan Wan Sien (0317997)

4. Ahmad Ashraf (0317744)

Date: 28th November 2014

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Contents

a. Executive Summary……………………….………………………...……3

b. Objectives………………………………….………………………..……4

c. Target Market……………………………………………………….……5

d. Competition Analysis…………..………………………………...………6

e. Product and Packaging………………………………………….....……8

f. Pricing Strategy…………………...………………………….…………12

g. Marketing and Promotion..….…………..……………..……………..…13

h. Sponsors…. …………………………...……..…………………...……15

i. Distribution and Sales……………………………………………..….…16

j. Green Measures.…………………………………………………….…..17

k. Human Resource Planning……………………………………..….……18

l. Evaluation of Results & Conclusion.………...………………..…..……20

m. References………………………………………………………………23

n. Appendix...……………………………….…….…….…………………24

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Executive Summary

Pretty Pastries is a non-profit charity drive booth, started by a group of four

students in order to raise funds for a charity organization. The business took

place over a duration of five days in the course of a charity drive event at

Taylor’s University Lakeside Campus.

This charity event is the final assignment of the Introduction to Business

module for the Foundation in Natural and Built Environments course. All the

proceeds earned from the booth are required to be donated to a selected charity

organisation, National Cancer Society of Malaysia (NCSM). Pretty Pastries

sold a varied range of products such as cupcakes, muffins, brownies and

cookies.

Pretty Pastries was owned and managed by four students. These students are

Ahmad Ashraf, the group leader; Bridget Tan, the accountant and product

manager; and Ahmad Razin and Claudwie Tan, the marketing executives. The

capital of the business was sponsored by a list of corporate entities that were

vital to its success. They are Just Heavenly Café, Jurutera Perunding

Primareka Sdn Bhd, IOI Properties Group Bhd, Stratos Consulting Group Sdn

Bhd and KLK Land Sdn Bhd. The total amount of money raised through

sponsorship is RM3000. Pretty Pastries was located at Taylor’s University

Lakeside Campus. The population at Taylor’s University Lakeside campus

consists of the students, lecturers and staff which were impending customers of

Pretty Pastries. A total profit of RM5159 was made during the five day

duration of business operation. The entire proceeds were donated to National

Cancer Society of Malaysia (NCSM).

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Objectives

To raise money for a charitable organisation. The National Cancer Society

of Malaysia was selected as the recipient as the group has family members

and friends affected by cancer. The society aims to create an understanding

of cancer that leads to prevention and early detection. It also aims to

educate the public on the best possible care and support available for those

affected by cancer.

To provide an opportunity for the public to contribute to a worthy cause.

To target a profit of RM2500 over five days to donate to the charity.

To achieve the target with care and responsibility.

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Target Market

1. Students at Taylor’s University Lakeside Campus:-

a) Total student population – approximately 20,000;

b) Mixed gender and race – Malaysians 65%, Foreign students 35%;

c) Mainly aged 18 to 24;

d) Mid to high income families;

e) Have a taste for desserts such as pastries;

f) Caring students who do not mind donating to a worthy charitable cause.

2. Lecturers and staff at Taylor’s University Lakeside Campus:-

a) Mixed gender and race, Malaysians and Foreigners;

b) Aged 25 to 50;

c) Mid to high income;

d) Interested in purchasing desserts such as pastries;

e) Do not mind donating to charity.

3. Visitors at Taylor’s University Lakeside Campus:-

a) Mixed gender and race;

b) Various ages;

c) Mid to high income;

d) Interested in purchasing desserts such as pastries;

e) Do not mind donating to charity.

4. Friends and relatives of the students

a) Mixed gender and race;

b) Various ages;

c) Mid to high income;

d) Interested in purchasing desserts such as pastries;

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e) Do not mind donating to charity.

Competition Analysis

After a market survey through observation and sample interviews, we decided

on our “Pretty Pastries” project. The products provide good nutritional value

and satisfy the cravings of both students and lecturers alike.

The direct competition to our plan to market “Pretty Pastries” would come

from the existing outlets “Backofen” and “Tiffin” at Taylor’s University

Lakeside Campus (TULC). They are both selling main meals with a variety of

pastry desserts such as cakes, doughnuts and puddings. The strengths of both

are that they are established outlets at TULC and their pricing is relatively

affordable. For example, the cakes at Backofen are sold at RM5 a piece. They

also offer a wide variety of flavours including favourites such as Red Velvet,

Lemon Meringue and Tiramisu.

Tiffin

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Backofen

Their weaknesses however include a lack of attractive packaging and some

gaps in their dessert offerings in that they do not sell cupcakes and muffins

which are growing in popularity among Klang Valley residents. They do not

publicly show they contribute part of their proceeds to charities and hence may

not compete so well against more philanthropic food operators nearby. At the

same time, they do not advertise regularly on social media and do not carry out

aggressive direct selling.

Their customers buy from them out of familiarity and convenience as well as

because of the favourable taste and pricing. Their service is also quite good

and fast.

Based on this analysis, our team decided to sell desserts which are lacking at

these two outlets at equally reasonable prices. We also decided to package our

desserts attractively to capture the attention of the target customers.

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Product and Packaging

1. Cupcakes

Description

The cupcakes were sponsored from Just Heavenly Café. There were two types

of cupcake flavours: the popular Chocolate and Vanilla. The two flavours were

chosen because they were the café’s most popular flavours, and by inference,

should also be appealing with the target market.

Features and Benefits

The decorative icing on the cupcakes made the cupcakes very attractive and

tasty.

Packaging

The cupcakes were packaged in unique Cherry “Cute” cupcake boxes. These

boxes are durable and easy to handle. The eye-catching packaging is itself a

form of promotion and would also trigger impulse buying.

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2. Muffins

Description

The muffins sold were purchased wholesale from a bakery called The

Raspberry Cake House. The muffins were plain butter with raisin muffins.

Features and Benefits

Plain butter with raisin is commonly well-liked and therefore customers were

familiar with the flavour and did not hesitate to purchase this product.

Packaging

The muffins were packaged in unique Cherry “Cute” Cupcake Boxes. These

boxes are durable and easy to handle.

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3. Triple Espresso Brownies

Description

The Triple Espresso Brownies, sponsored by Just Heavenly Café were fudgy,

chocolaty temptations topped with coffee crème and studded with chocolate

chips and walnuts.

Features and Benefits

The brownies were crispy at the surface and soft and chewy on the inside.

They did not turn stale very quickly and could be kept out of the fridge for a

week. Brownies are also a popular dessert in the Klang Valley and would thus

appeal to the target market.

Packaging

The brownies were packaged in airtight plastic bags to prevent them from

becoming stale and tasteless.

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4. Chocolate Chip Cookies

Description

The Chocolate Chip Cookies were freshly homemade and sponsored by a

friend. They were made so that they were chewy and soft.

Features and Benefits

The cookies were baked every day and therefore do not become stale very

quickly. They were sold fresh and gave off an irresistible rich chocolate scent.

Packaging

The cookies were packaged in brown paper bags to promote a greener

environment. They were stored in an airtight container to prevent them from

becoming stale and tasteless.

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Pricing Strategy

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 Prices:-

Cupcakes – RM5.50 per unit;

Muffins – RM3.00 per unit;

Triple Espresso Brownies – RM2.50 per unit;

Chocolate Chip Cookies – RM5.00 per unit.

Product Cost Prices:-

Cupcakes – Sponsored;

Muffins – RM1.30 per unit;

Triple Espresso Brownies – Sponsored;

Chocolate Chip Cookies – Sponsored.

Strategies:-

Bulk discount - 2 cupcakes at RM10;

Bulk discount - 2 muffins at RM5;

Attractive stall with clear signs;

Location of stall along a busy main walkway at TULC;

Direct selling - We walked around campus to sell the products;

Off shore sales - We ventured to other campuses such as Sunway

University, Taylor’s College and INTI College to sell the products and to

ask for donations.

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Marketing and Promotion

Our main marketing message was “Be aware and show you care.”

Our two main tools for marketing our products were:-

1. Hand-produced attractive 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

colourful hand-produced posters enticed many customers to learn more

about our products and our cause.

2. Direct face-to-face conversations

We walked around the campus to promote our booth to lecturers and

students. This method was very effective as we were given the

opportunity to explain to people about the event, motivating and

providing them with an opportunity to contribute to a worthy cause.

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Among the other strategies were:

1. Instagram;

2. Emails;

3. Sponsorship letters;

4. Telephone calls;

5. Giving free samples of products (brownies and cookie bits);

6. Mobile phone text messages.

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Sponsors

We approached both individuals and corporate entities for sponsorship. We

aimed to catch the attention of a few corporate entities that were supportive of

our cause and have the financial capacity for larger amounts of donations.

We targeted product suppliers in the hope that we can help promote their

products.

We approached these outlets and corporations through sponsorship letters as

well as face-to-face meetings.

In this charity drive, we managed to collect a total of RM 3000 cash and

products from the following corporate entities:-

a) Just Heavenly Café – 110 cupcakes and 160 triple espresso brownies

worth RM 1368;

b) Jurutera Perunding Primareka Sdn Bhd – RM 1000 (Cheque);

c) IOI Properties Group Bhd – RM 1000 (Cheque);

d) Stratos Consulting Group Sdn Bhd – RM 500 (Cheque);

e) KLK Land Sdn Bhd – RM500 (Cheque).

Initially we had planned to utilise part of the donations to purchase ingredients

to make cupcakes. After a few unsuccessful attempts, we decided on purchasing

the products from reliable suppliers. This “outsourcing” turned out to be more

efficient and profitable.

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Distribution And Sales

Our products for the charity drive were collected from suppliers early each

morning and brought fresh to TULC by car (vehicles owned by group

members). The products were then brought to our stall and set up to be sold.

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 fresh and sold within the day. 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

we started selling such that customers did not have to wait for our products. Not

only that, we also walked around campus while carrying our products on trays

and display boxes to make it more convenient for customers to purchase our

products. Customers were also given the opportunity to order products by calls

and text messages. Some days when initial sales were slow (or when group

members had to attend classes), the volume was made up by more aggressive

sales methods – like more convincing sales talk and louder calls. In the end, no

attempts at stock clearance discounts were necessary.

There was a slow day when we had to venture “off shore” to Sunway

University, Taylor’s College and INTI College to speed up sales.

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Green Measures

a) Recycling

Recycle bins were set up behind our stall to collect any recyclable wastes

and put them in the campus’s recycling bins at the end of each day in

order to protect the environment.

Labels for products were written on recycled cardboard to minimise

unnecessary wastage of paper.

b) No Littering

We placed bins nearby our booth and immediately disposed of any wastes

to prevent customers and group members from littering the ground.

c) Ask and It Shall Be Given to You

In order to prevent wastage of plastic bags and paper packages, they were

only given to customers after asking for their preference.

d) No Waste

All products were sold (and presumably eaten) with no perishable

products having to be discarded or wasted. Our selections of products not

only look good but we believe also provide good nutrition and

nourishment to students.

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Human Resource Planning

With the objectives in mind, we elected a group leader and divided out the work

among the group members. There were group brainstorming sessions to discuss,

analyse and evaluate ideas. Research was carried out to decide on the product,

budget and target to be achieved.

We deliberated the financial plans to ensure that we could attain the goal of

earning a minimum income of RM2500 within five days. Although we had only

a small booth with only four staff, we managed to split the work

responsibilities. Nevertheless, there were a lot of overlapping, helping out and

complementing each other. There were areas where all were heavily involved

in, e.g. sales.

Organisational Structure

Ahmad Ashraf, our group leader was accountable for the preparation and

management of Pretty Pastries. Bridget Tan, our accountant was accountable for

Group Leader

(Ahmad Ashraf)

Finance

(Bridget Tan)

Accountant

(Bridget Tan)

Product Manager (Bridget Tan)

Sales Executive

Promotion and Marketing

(Claudwie Tan)

Receptionist

(Ahmad Razin)

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finance, handling and administering daily operations of financial records

outstanding and receivable, cash receipts, and contributed in the preparation of

the business report. Bridget, also our product manager, was in charge of the

acquisition and accounts of the product stock. Furthermore, Claudwie Tan who

was responsible for the promotion and marketing hand-prepared our

promotional posters and led deliberations on advertising approaches. Ahmad

Razin, our receptionist, was in charge of promoting products to customers at our

booth and publicised our movement for the National Cancer Society of

Malaysia to customers. Overall, we managed to accomplish our goals by

functioning efficiently as a team due to our effective preparation and planning

which allowed us to work well together.

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Evaluation of Results & Conclusion

The objectives we listed to achieve in our business charity drive project were to

gather support from sponsors, find suitable suppliers, achieve a profit of RM

2500 and donate our funds, sales income and collected donations effectively to

National Cancer Society of Malaysia (NCSM). An effective plan with time line

was laid out with clearly identified tasks for each group member. Every

member was assigned their individual errands based on their strengths and

proficiency in this coordinated team effort.

Firstly, we approached several companies and people and requested for their

sponsorship. After numerous endeavours, we successfully gathered RM 3000. It

was initially quite difficult and challenging to convince suppliers to provide us

goods at cheaper prices. We had to make adjustments in deciding what

products to sell and the sourcing methods. However, in the end, through

perseverance (and numerous rejections), we managed to locate suitable

suppliers and our business was able to run smoothly.

With the cooperation of every group member, we managed to effectively run

our business from 8am to 6pm every day. We took shifts and set up a duty

roster to be able to attend classes. The time management system we used was

very efficient and it did not adversely affect our business or our classes.

In conclusion, we feel that our objectives were achieved and the business was

run effectively during its five day duration. We managed to exceed our targeted

profit of RM 2500 and we also felt that we managed to raise awareness for

NCSM, our chosen charity organization. We felt fulfilled and satisfied that we

were able to donate our entire profit to NCSM and in so doing, contribute to a

good cause.

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However, there were times when we received discouraging responses from

customers who would either ignore us or even insult our products. We accepted

this as constructive feedback. This dismayed us and there were times when our

low morale affected our sales. Nevertheless, we pulled ourselves together and

motivated ourselves to persevere in our objective of contributing to what we

believe in. We managed to learn a crucial lesson and that is, people will voice

what they want to voice and we must not allow it to discourage us. So, if asked

what we would have done differently, we would have unquestionably ignored

the negative condemnation received and instead have confidence in ourselves

and our cause.

Video Link -

https://www.youtube.com/watch?v=1jfMUlvnbsg&feature=youtu.be

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The Financial Results

Sponsorship cheques received before commencement of business - RM 1500.00

- out of which RM 880.00 was utilised as capital for the "Pretty Pastries" business

- which generated a gross collection (total sales proceeds) RM 3 039.00.

- Thus the net profit was RM 3,039 less RM 880 = RM 2 159.00

- with a return of RM 2 159/RM880 = 245.30% which is good.

Sponsorship checks received late, i.e. another RM 1,500 was banked in and accumulated

for contribution directly to NCSM.

Income Statement of Pretty Pastries Charity Drive Event

Revenue Cupcake Muffin Brownies Cookies

Sales 3,035.00RM S. Price 5.50RM 3.00RM 2.50RM 5.00RM

Less: Cost of Goods Sold 325.00RM Units 110 500 160 106

Gross Profit 2,710.00RM Rev 605.00RM 1,500.00RM 400.00RM 530.00RM

Add: Donations 3,000.00RM

Adjusted Gross Profit 5,710.00RM Cupcake Muffin Brownies Cookies

Less: Operating Expenses C. Price -RM 1.30RM -RM -RM

Typhoid Vaccine Injection 240.00RM Units 110 250 160 106

Ahmad 60.00RM Rev -RM 325.00RM -RM -RM

Razin 60.00RM

Claudwie 60.00RM

Bridget 60.00RM

Advertising Expenses 96.00RM

Cupcake Boxes 215.00RM

Total Operating Expenses 551.00RM

Net Profit 5,159.00RM

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References

National Cancer Society Malaysia (NCSM). (2014). National Cancer Society

Malaysia. Retrieved from http://www.cancer.org.my/

Skelchy, N. (2011). Just Heavenly Cafe | Just Heavenly | Designing Dreams,

Serving Pleasure. Justheavenly.biz. Retrieved from http://justheavenly.biz/just

heavenly-cafe/

OpenRice Malaysia. (2014). Backofen (Subang Jaya). Retrieved from

http://my.openrice.com/klangvalley/restaurant/backofen/67866/

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Appendix

Our booth

A customer posing for the camera

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Handwritten labels on recycled cardboard

Donation cheque

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Sponsorship letter to Just Heavenly Café

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Sponsorship letter to Stratos Consulting Group Sdn Bhd

Sponsorship letter to IOI Properties Group Bhd

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Sponsorship letter to KLK Land Sdn Bhd

Record of clearance of donation cheques

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Receipt of typhoid vaccine injection

Receipt of cheque deposit

Receipt of cheque deposit

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Receipts of purchase of muffins

Sales receipt booklets (six in total)

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Sample of sales receipt

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Samples of sales receipts

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A visit to NCSM

Passing the cheque to Ms Sue, one of the founders of NCSM

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Receipt of donation

Chatting with one of the patients (with brain cancer) from the Children’s Home of

Hope at NCSM

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Dr. Sulaiman Tamanang (radiologist) explaining about breast cancer

Ms Sue showing us around the Resource & Wellness Centre