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Tay Jit Ying 0319002

Yan Wai Chun 0319626

Tey Thien Hee 0318676

Saw Hwei Ying 0318093

Charity Drive Report Business Final Project

FNBE APR 2014

CONTENTS

page

Contents

0

Executive Summary

1

Objectives

2

Target Market

2

Competition Analysis

3

Product and Packaging

4

Pricing

5

Promotion

5-6

Sponsors

7

Distribution

8

Green Measures

9

Human Resource Planning

10

Evaluations of Results 11-12

A. Executive Summary

The main task for this assignment is to raise fund for a charity organization via selling

our items and also by seeking donations from the others. In order to raise a target of RM2000

for the National Kidney Foundation by selling mix rice and drinks such as Sprite and Ribena

drinks to the students and staffs of Taylor’s University Lakeside Campus.

To give a brief summary, the reasons why we chose to sell mix rice are because we

think that it will have a high demand as the price are reasonable and cheaper compared to the

food sold at the commercial blocks. Besides, there are also high possibilities of students

buying soft drinks to quench their thirst especially during a hot day.

Moreover, we also ought to collect a maximum of RM2500 from donations and

sponsors. We started requesting for donations and sponsorships a few weeks before the

charity drive event starts so that the person and the organization that we had approached

would have enough time to consider the donations that they had planned to made.

We were satisfied with the outcomes of this assignment and we had learnt a lot of

business knowledge that couldn’t be delivered in the classroom itself.

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B. Objectives

We had chosen to donate the fund we gained to the National Kidney Foundation

Malaysia as we are aware that the National Kidney Foundation is providing not only dialysis

treatment but also any other kidney-related matters. Besides, it is also a non-profit

organization so fundraising served as an important component for the organization to keep

helping lower income patients who often could not afford dialysis treatments privately which

charged around RM150 to RM250 for each dialysis sessions whereas National Kidney

Foundation only charge a cheap fee of RM50 per dialysis sessions. And those are the reasons

why we would love to help the National Kidney Foundation who needs to raise RM12

million annually to subsidise the dialysis costs for 1509 patients throughout the whole

country.

Quantifiable Objectives

We planned to gain fund by selling mix rice and carbonated drinks as well as

collecting donations for the National Kidney Foundation during the Charity Drive event for

five days to achieve a good grade in the goal achievement rubric section.

Below are the targets that we would like to achieve for each section.

Target Sales: RM1000

Target Donation: RM1000

C. Target Market

Our target customers are mostly students as our booth are located at the most busy streets

in the campus which is situated just in front of the Student Learning Centre as most of the

students will pass by our booth after their respective classes. As we are student as well, we

are aware that by selling mix rice, we could offer the students a new choice on what food to

have for lunch and it also saves their money as our mix rice and carbonated drinks are

cheaper compared to other stalls located at the commercial block where we only sell at the

price of RM8 for mix rice with chicken and fish and RM7 for all vegetables. In addition, we

could also help the staff in Taylor’s University by giving them another option which is to

have their lunch in their office itself during the lunch hour instead of eating in the campus or

outside where they might be caught in the traffic jam. People around the campus especially

the students would also love to stop by and have a drink to cool themselves down after a long

day especially during the hot weather where we will get thirsty more easily.

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D. Competition Analysis

One of our competitors is the group led by Carnisius as their stall is located directly

opposite our stall and they sell the same type of products as us which is carbonated drinks

such as Sprite and Ribena as well. Moreover, they are also selling fish balls as their other

products. The reason why we said that they are our main competitor is because they sell

Ribena at a cheaper price, which is RM1 compared to us which sells at the price of RM2 as

we need to earn some profit. We had also come to understand that they are not using the pure

Ribena but instead they used Sunkist Ribena which also has the similar taste as the Ribena to

make their drinks for their customers.

On the other hand, customers are more attracted to the store led by Wing Hoe as the food

that they are selling is delicious, which is roasted chicken and many of them would buy their

lemonade drinks at the same time or else they would be thirsty after eating. Other than that,

their lemonade is quite tasteless as too much of ice was inserted to the drinks and it is

considered expensive to sell the price at RM3.

We are not affected in terms of pricing by the stall at the commercial blocks as our food

and drinks are cheaper than those available there and this gives us another advantage but

undoubtedly there is more variety of food available there than the products that we sell.

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E. Product and Packaging Products a) Products sold

I) Mix rice lunch boxes with free drinks Mix rice lunch boxes with three choices such as vegetarian, chicken and fish,

served with free drinks. II) Ribena

Cooling blackcurrant flavor drinks.

III) Sprite Cooling carbonated drinks.

IV) Ribena + Sprite Cooling blackcurrant syrup mixed with carbonated drinks to create a new flavor.

b) Features and benefits of products

I) Mix rice lunch boxes with free drinks Mix rice lunch boxes with three choices allow the customers to choose as there are more choices and serve with free drinks to attract more customers.

II) Ribena and Sprite Icy cold drinks with reasonable price attract customers to buy it.

III) Ribena with Sprite Sweet blackcurrant syrup mix with carbonated drinks to create a brand new beverage.

Packaging

a) Products packaging

I) Mix rice lunch box is packaged in polystyrene food packaging. II) All drinks are packaged in transparent plastic cups.

b) Attraction of Packaging

I) Mix rice lunch box is packed in polystyrene food packaging as it is lighter and easier to carry. It is more hygienic because it cannot be reused. Polystyrene food packaging is selected as it seals firmly and tight to prevent any spilling.

II) All drinks are packaged in transparent plastic cups. This allows the customers to see what they want to buy and they do not need to return the cups to the

sellers as it is cheap.

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F. Pricing

a,b)Unit selling price and Unit Cost Price Product Unit Cost Price Unit Selling Price

Lunch box Set A (3

vegetables)

3.5 7

Lunch box Set B (chicken with 2 vegetables)

4.5 8

Lunch box Set C (fish with 2 vegetables)

4.5 8

Ribena 2

Sprite 2

Ribena and Sprite 4

c) Products popularity

Mix rice lunch boxes is the best selling item as it was sold out everyday. We found out that it was very popular and have a high demand among the staffs and students of Taylor’s University because the selling price was reasonable and served with free

drinks. The price of the lunch boxes remained the same as it will be too expensive if we would to raise the price. Since we had made a lot of profit, we think that it was not

necessary to raise the price again.

d) Marketing Strategies

Mixed rice lunch box is one of our main products. It is preferable to be the lunch for the customers. For the marketing strategies, we tried to get our products ready before

lunch hour and went to every divisional office and approached any potential customer. After lunch hour, we were more focused on selling beverage. This is because during this period, most of the people will have their lunch and were not interested to buy

lunch box rather than cold drinks. Next, we had implemented price skimming technique as we set the prices of the products at a higher price initially and lower them

down once we found out that the customers felt that the prices were too high. During this business charity drive, most of the students in degree and other intake were having semester break and the campus was deserted. This causes the number of our

potential customers decreases and hence we think of a new marketing strategy. We decided to collect donations from our acquaintances who requested us to buy our lunch

boxes and sent the lunch boxes to the nearby orphanages. By using this strategy, we can overcome the problem that we do not have enough of customers in the campus but we are still able to hit our estimated target.

G. Promotion a) Marketing message “Fill your stomach and save their kidneys” is our marketing message as we

were raising fund for the National Kidney Foundation. All the profits that we earned will be donated to the National Kidney Foundation to help those patients

with lower income who suffering from kidney failure. By passing this message to the customers, they will be more willing to buy our products.

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b) Tools for promoting the products

I) Digital-produced poster II) Face-to-face conversation

c) Reasons for choosing these tools I) Digital-produced poster

We found out that poster is a very effective medium to convey our message to the customers. The poster include our selling products and the prices of our

selling products. The reason why we produced our poster digitally is because we think that the poster will be more tidy as the information was arranged systematically.

II) Face-to-face conversation We always used face-to-face conversation technique to approach our

potential customers as it is a more direct way compared with other method. This technique allows us to approach our customers and persuade them to buy our products. It is an easier way to sell our products as we do not have to

compete with our other classmates.

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H. Sponsors

Who have we approached for sponsorship ?

The weeks before we start our business charity drive, we have tried to approach corporate

entities such as, F&N, Nestle etc, with the provided letter but all of the efforts were wasted.

After all the failures, we approached our parents and also our relatives which agreed to

donate us some money.

Reasons why we targeted them.

The reasons are because our parents have a wider range of contacts with other people such as

sponsors, so it would be an advantage in order to get a sponsor. Besides, we approached our

parents because they are the closest and trustiest person we know who are willingly support

us in terms of cash. Apart from that, we also approached our relatives because most of them

have stable monthly incomes which make them affordable to give us sponsors.

In what form and how much they sponsored?

One of our group’s member, Saw Hwei Ying, managed to find sponsors from her relatives,

who gave us a total amount of RM 920 for the charity drive (including buying rice box for the

orphanage). With that and the other member’s, we managed to gather a total amount of cash

RM1191.35.

How did we approach them?

Telephone calls

As all of us are not from Selangor, the only and the easiest way to approach our sponsors is

through telephone calls. With this method, we managed to contact our parents and relatives to

request sponsorships.

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I. Distribution

Our mix rice supplier is ZapFan4u, throughout the whole charity drive week, the supplier

delivered the mix rice that we ordered to our campus and unloaded the mix rice near the

round-about.

Sales location

Our stall is located in front of the Student Life Centre of Taylor’s University Lakeside

Campus which is also one of the busiest street in the whole campus. Besides, we also carried

our products around the campus to be sold. The products were easy to be carried around the

campus as the mix rice were packed in polystyrene boxes nicely when the supplier deliver to

us.

Delivery time

All of our products can be delivered to our customers within a minute or two. Everyday

before the business started, we bought ice cubes from 7-eleven and put it in an icebox. Our

drinks can be prepared and served to our customers in a short waiting time. We poured the

Ribena syrups in the cups when before we start our business to reduce the waiting time of the

customers. When a customer approached us, we only have to add water and ice cubes and the

drinks are ready to be served.

Number of customers

With an average of 30 boxes of mix rice each day, we have at least an average of 30

customers per day considering that we still have other customers that bought our drinks

separately. We offered our mix rice box with a free drink ( Jus Tea ) everyday to attract more

customers.

Ordering

Customers are unable to order our products in advance via phone or online. The only way to

get our products is to approach our stall in front of the Student Life Centre.

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J. Green Measures

Environmentally-friendly packaging?

Our main product is mix rice box. The boxes used to contain the rice are polystyrene

containers which can cause environment pollutions if dispose them inappropriately. On the

other hand, our drinks are served using plastic cups which are recyclable. To minimize the

pollutions, we provide a rubbish bag beside our stall so that our customers can dispose the

containers properly. We also encouraged our customers to dispose the containers and the

plastic cups in the nearest recycle bin.

How to reduce carbon footprint?

The usage of plastic bags in our stall is zero as we did not provide any plastic bags for our

customers. The range of our business is only around the campus, therefore we didn’t use any

transportation devices as we only walk around the campus.

Waste management

Our products, especially our drinks are contained in plastic cups, straws and etc. can be

thrown in the 3R bins around the campus. We also provide the rubbish bag beside our stall so

that it is more convenient to our customers as we helped them to separate the types of rubbish

accordingly and threw them into the 3R bin eve

Reduction of consumption of resources

Instead of using a refrigerator, we used an icebox to store the ice cubes. Electric usage of the

electrical appliances is zero because our products do not need to reheat or to be kept chilled.

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K. HUMAN RESOURCES PLANNING

The process that links the human resource needs of an organization to its strategic

plan to ensure that staffing is sufficient, qualified, and competent enough to achieve the

organization's objective.

Project Manager - A project manager is responsible for the planning, organization, resource

management, and discipline pertaining to the successful completion of a project.

Accountant - An accountant is responsible for accounting record, preparation for financial

report, handling cash receipts and secures financial information by completing data base

backups etc.

Sales Executive - A sales executive is responsible for analyzing sales reports and customer

surveys; prepare budgets and sales forecasts; and determine sales prices.

Advertising Executive - A advertising Executive is responsible for handling all aspects of

advertising including marketing research and sales such as distribute leaflets to the students

in campus and creating facebook page to advertise our products.

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Roles of Group

Members

Project

Manager

Tay Jit Ying

Sales

Executive

Saw Hwei

Ying

Accountant

Tey Thien Hee

Advertising

Executive

Yan Wai Chun

L. Evaluations of Results

Right and Wrong

What we did right is we walked around the campus, we found our right customers who need

our products such as the staffs of the university and also students who planned to have their

lunch. We understood their needs and we approached to them, we went to divisional offices

and also classrooms to sell our products while lunch time. Second, we lowered down the

price of one of our drinks in the last two days of the charity week so that it can attract more

customers to buy it and this method works for us. Everday we set a goal for ourselves, a daily

target to be reached which is an average profit of RM200.

On the other hand, we have made our mistakes. During our charity week, we don’t have the

courage and felt shy to approach our customers. Our products are also less promoted around

the campus for the first two days of the charity week. Besides, we failed to request the mix

rice’s supplier to deliver our products to the campus at 11.30pm, which is the time that many

students and staffs passed by our stall and headed for their lunch.

The Second Chance

Things would change if we had the second chance to start our business charity drive. We

would definitely reduce or never make the mistakes that we have made. What we would do

is, we would inform the mix rice’s supplier to deliver the products to us earlier so that we

manage to sell our products at lunch hours. We would also promote drinks with lower price

so that it can be sold more and boost up our profits.

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Profit & Loss Report

Profit and Loss Account

For the week 19th Jan to 23th Jan 2015

RM RM RM

Sales

Food - Chapfan Set A ( RM7 )

98

Chapfan Set B ( RM8 )

1,088

Chapfan Set C ( RM8 )

288 Drinks - Pure ( RM2 )

216

Mix - ( RM4 for Day1-2 )

68

( RM3 for Day3-4 )

117

Heaven ( RM5 )

475 2,350

Cost of goods sold

Food - Chapfan Set A ( RM3.5 )

49

Chapfan Set B ( RM4.5 )

612

Chapfan Set C ( RM4.5 )

162

Chilli Sauce

3.28 Drinks - Ribena

37.4

Sprite

39

Longan

26

Food & Drinks Container

57.9 986.58

Gross Profit

1,363.42

Add : Donation

329.43

Sponsorship Revenue

900

Adjusted Gross Profit

2,592.85

Less : Operating Expenses

Typhoid Injection

525

Ice

22.5 547.5

Net Profit

2,045.35

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Links

Product and packaging video

https://www.youtube.com/watch?v=GTAo5T5pjOQ

Promotion video for Business

https://www.youtube.com/watch?v=0HB7YS2NH4Y

Footage of the visit to the National Kidney Foundation Malaysia

https://www.youtube.com/watch?v=J-2jUyjIcnk

Reflection for our Business Charity Drive Event

https://www.youtube.com/watch?v=ilGu6BZTLvg