SCHOOL OF ARCHITECTURE, BUILDING & DESIGN

FOUNDATION IN NATURAL & BUILT ENVIRONMENTS MARCH 2015 INTAKE

INTRODUCTION TO BUSINESS (BUS30104)

SEMESTER SEPTEMBER 2015

THE BREAKFAST CLUB

GROUP MEMBERS: ADAM WONG (0322520)

DARREN TAN YONG TEE (0323398) KIMBERLEY FAY BERNARD LO (0324237)

KYLA ELLANA BINTI NAZRIN DIEGO (0322409) LOW WING CHUN (0323315)

MELARIE MANDY DONOUGH (0323660) REBECCA MARIE TANDUBA (0322757)

RENEE TEOH YEN QIN (0322438) ROSABELLA ZUNTIVAI MOBIJOHN (0322106)

TENGKU SYAKIRA BINTI TENGKU ASMADI (0323079)

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TABLE OF CONTENT

EXECUTIVE SUMMARY

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OBJECTIVES

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TARGET MARKET

5

COMPETITIVE ANALYSIS

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PRODUCT & PACKAGING

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PRICING

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PROMOTION

12

SPONSORS

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DISTRIBUTION

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GREEN MEASURES

16

HUMAN RESOURCE PLANNING

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EVALUATION OF RESULTS

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APPENDIX

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EXECUTIVE SUMMARY

Being the final project for the module Introduction to Business, it was high time for us students to conduct a small business project through a Charity Drive Event. As mentioned in the name, the purpose of this project was to raise funds for any selected charity organization. The Charity Drive Event lasted for only four days, starting from the 26th until the 29th of January 2016. It was held in front of the Student Life Center at Taylor’s University Lakeside Campus. Our group comprises of ten members namely Adam Wong, Darren Tan, Kimberley Fay, Kyla Diego, Low Wing Chun, Melarie Donough, Rebecca Marie, Renee Teoh, Rosabella Mobijohn and Tengku Syakira. Throughout this whole week, we managed to learn and gain some experiences in running a business, evident to be useful to us in the future. Our group decided to sell breakfast food as per our observation: people in Taylor’s University, specifically students, tend to be in a rush to their classes thus missing the most important meal of the day which is breakfast. The products sold include coffee, pancakes, bagels and doughnuts. The budget to sell these products were quite pricey however, with the help of sponsors, we were able to manage the accounts of our budget. We collected a total of RM1,100 from sponsors as well as sponsors for the food item, pancakes from Munching Mob café. Our utmost gratitude extends to all the parties involved especially the sponsors in assisting us to be successful in our business. Our thanks goes out to our lecturer, Ms. Tay Shir Men as well for her guidance and support throughout this whole project.

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OBJECTIVES

The United Nations High Commissioner for Refugees (UNHCR) is a non- profit organization that provides to lead and co-ordinate international action to protect refugees and resolve refugee problems worldwide. Its primary purpose is to safeguard the rights and well-being of refugees, and help refugees rebuild their lives in safety and dignity.

We have chosen to support this organization as it is one of the major global issues that arose in the year 2015. We personally believe in changing the world for the better, one step at a time, by tackling major humanity issues one at a time. Our profits would be donated to the education and welfare of the refugee children as these children are our future generation’s leaders.

The objectives we have for this Charity Drive Event are as follows:

• Raise funds for the United Nations High Commissioner for Refugees (UNHCR)

• Overcome the global issue of refugees and create public awareness of the issue towards the refugees

• Obtain skills and experience in business management • Obtain a minimum amount of RM500 in each day of sales, inclusive of

sales and donation

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TARGET MARKET

The location of our business was in Taylor’s University Lakeside Campus (TULC). This result in the majority of customers that there is was students of TULC as well as minority customers such as the lecturers and staffs around the area. The students and staffs in this campus are mostly Malaysians and others are from overseas.

Based on the analysis that we made, we observed that most customers were feeling tired and not hyped to start their day for classes, works and etc. This is probably due to the lack of eating breakfast before they start doing whatever they are suppose to do. We also observe that most customers would rather spend their money on food and drinks than on goods. Most people would walk pass outside Student Life Central (SLC) from classes and offices during morning and afternoon because they want to grab a meal for their breakfast, lunch as well as their hi-tea in the commercial block.

For the investigation of their spending power, spending a meal or a cup of coffee in commercial block is about RM15 or more than the food and coffee sold in our stall, which is RM6 and below. This sums up that they can buy 2 - 4 types of food including the coffee just by visiting few stall outside SLC.

Consequently, most of the people in TULC are students where some of them do not have personal income to spend pricey food and beverages. So, most students will think on the opportunity cost from choosing a meal in commercial block or variety of meals from the stalls.

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COMPETITION ANALYSIS

Chun’s Group Ji Sun’s Group

Location To the left of our stall Directly in front of our stall

Products Onigiri, ice lollies, soya drinks, etc.

Fried food. (sausages, popcorn chicken, etc)

Strength

Their group has more people in the group thus making

their ability to attract customers more than other

groups. They sell a variety of food with a reasonable price. With these two factors, their customer’s demography is

broadened.

By selling something that needs to be cooked on the spot, their group uses the

sense of smell as an attraction to their stall. Their posters and signage are also

well done.

Weaknesses

Despite a very high potential for customer’s attraction, the group did not have posters that could attract even more customers. Their booth was

minimally decorated.

Their food will not taste good as it gets cold and is at best

served hot. Products that has been fried and was not sold will have a lower probability

of being sold. Some products are too pricey as well.

Customer Attraction

This group actually has a lot of potential in attracting

customers. Mainly because of their selection in products to be sold. They have a very wide range and customers

are much more likely to return again for another

purchase.

This group can attract customers with a very clever

use of smell as a point of attraction. Their food if

served hot, would have the potential of being high in

demand.

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PRODUCTS & PACKAGING

PRODUCTS Doughnuts (Sugar Glazed), Pancakes (With Butter and Syrup), Bagels (With Cream Cheese), Coffee (Original, Hazelnut, Latte, Caramel & White Coffee) Roti Kahwin (Toast with Butter and Kaya) are the products that we have sold during the Business Charity week. Doughnuts

The donuts are our best selling product. It is coated with a layer of sugar and goes extremely well with a hot cup of coffee.

Pancakes

The pancakes that we sold comes in mini sizes. This is to allow them to be packed in our packaging and also ensure our customer to devour it without any hassle. They come in butter and maple syrup or chocolate syrup according to our customer’s preferences.

Bagels

Our bagels come with cream cheese. They are best consumed when hot and are favourited by the office ladies. We serve them with or without cream cheese according to our customer’s preferences.

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Coffee

Our coffees are from the brand Nescafe. Though we did not receive any sponsors from them we bought all of them with our own money. Customers could choose between 5 flavours (Original, Hazelnut, Latte, Caramel & White Coffee) and hot or cold.

Roti Kahwin

One of our Malaysia’s traditional dish. Toasted and comes with the combination of the throat soothing kaya and rich tasted butter.

Features and Benefits

1. The reason of selling these products is because they are most suited for breakfast hence our group name “The Breakfast Club”.

2. They could be sold at a reasonable price hence attracting more customers which supports the reason why we managed to sell all our products. Except for some coffee.

3. Customers could consume them easily and is best suited for students, lecturers or staff workers who have busy schedules.

4. People would prefer warm and fresh food in a cold breezy morning.

5. They are filling enough for breakfast and tea time.

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PACKAGING We used 3 different packaging methods. For doughnuts and roti kahwin, they would be put in the plastic or paper bags. For pancakes and bagels, they would be put in the plastic takeaway containers with fork and knife. And for coffee, the paper cups were used for the hot ones and the plastic cups were used for the cold ones. Plastic takeaway container

Paper / Plastic bags

Paper cups / Plastic cups

These packaging would attract the customers as they look promising that their food or drink would be properly protected from getting dirty. The quality of our packaging would also convince the customers. Other than that, it would be very convenient for them to carry around our products or to consume them while they are walking. Minimal table or chair would be needed as our

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packaging would make it easy for them. This is the strong point of our packaging.

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PRICING

Product Per Unit Cost Price (RM)

Per Unit Selling Price (RM)

Donut 2.10 3

Bagel 2 3

Bagel with cream cheese

2.50 5

Pancakes Sponsored 3

Nescafe 0.50 2

The table above is the original selling price from the first day, since it was that used for market testing. Due to the insufficient time to achieve our target on a certain day, we had to do some price modification in order to reach our target. For an example, we changed the price of Nescafe from RM2 to RM1 to attract more customer by doing such promotion to achieve our daily target. We decided not to change the price of the donuts and pancakes since it had the best feedback from our customers.

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PROMOTION MARKETING MESSAGE The marketing message for our business is to earn profits so that we can help millions of refugee children and families receive the life-saving relief and support they desperately need. We sought for donations and also sponsorship from everywhere because we wanted to try our very best to help the unfortunate as well as to get what they need. The organization that we are donating our profits to is the United Nations High Commissioner for Refugees, also known as the UN Refugee Agency. They protect and support refugees at the request of a government or the UN itself and assists in their voluntary repatriation, local integration or resettlement to a third country. Furthermore, UNHCR provides basic and necessary humanitarian aid for Syrian refugees and helps the most vulnerable refugees with urgently needed relief cash for medicine and food, stoves and fuel for heating, insulation for tents, thermal blankets and winter clothing. UNHCR is delivering life-saving assistance on the ground to Madaya, including water, food, medicine, blankets and warm clothes, household items, diapers and hygiene supplies, and jerry cans. By helping refugees in the surrounding region, UNHCR hopes to reduce the number of desperate Syrians resorting to smugglers and falling prey to traffickers to reach safety elsewhere. Thanks to the generous support of donors since January alone, 1.8 million refugees received food aid, 500,000 children were enrolled in school, and shelter in camps was provided for more than 460,000 refugees. Thus, we’re doing this charity to help make a difference.

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PROMOTIONAL STRATEGIES AND TOOLS 1. Social Media One of the main tools we used to promote our products is through social media like Facebook, Instagram and Twitter. The reason why we chose social media as our main channel to promote and advertise is because the advertising fee is free of charge. Furthermore, it is efficient as the popularity of our business increased within a short period of time without increasing human resources. 2. Posters Other than social media, creating posters are another tool we used to promote our business products. We have designed our very own posters especially for our business charity drive. Contents on the posters were the purpose of our business, what we are selling together with the price of the product.

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SPONSORS

As a start-up for our business, we approached possible sponsors from big corporations, small businesses as well as individuals. For each of the following sponsorship deals, we communicated to possible sponsors via the telephone (where we come into contact with particular titles who are in charge) before proceeding to explain further and in detail of our purpose via e-mail.

We approached Nescafe to request for sponsorship of their products as they have previously opened up booths in campus to which we noticed that they have attracted a lot of customers thus gaining fast money. However, it didn’t go through as they were unable to fulfill the request at such short notice.

At the same time, we approached individuals whom we know personally as well as people we know who supports our charitable cause. One of our members, Rebecca was able to get sponsors from people she knows personally and received a total amount of RM700 from three entities. Rosabella and Wing Chun were also able to get sponsors due to their personal contacts and received an amount of RM200 each.

We were able to receive sponsorship for one of our products which is the pancakes from a small business called Munching Mob café, thanks to Wing Chun as he personally knows the owner and manager of the business. We received 210 slices of pancakes which easily equates to RM315 worth of our sales.

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DISTRIBUTION

We serve different products, which of course was transported in different ways depending on what it was. We bought coffee pre-mixes, chocolate syrup, maple syrup and cream cheese from Tesco, in which we transported them to campus by ourselves. We collected 2 dozen bagels from the Brooklyn B Bagel shop, at 10am each day from Tuesday to Friday. Customers were required to wait for 10-15 minutes everyday if they wish to purchase fresh bagels. As for our doughnuts, we opted for the delivery service on the first day, which was an additional charge of RM10. As for Wednesday, Thursday and Friday, we decided to pick them up ourselves as that would help save cost. We had the sponsored pancakes picked up fresh from the sponsor namely Munching Mob café itself. We also had bags of ice were delivered to us on campus on two days, Monday and Wednesday at 1 pm. Our products can be purchased at our booth. Customers were also able to make pre-orders the day before or a few hours before and we would deliver it to them at their selected locations. Certain times of the day, we would even go around campus with our products and approach our customers. This is not only to push our sales and but to make it convenient for our customers too. We try to minimize our delivery time to as little as 2 minutes as some of our customers will purchase our products 10 minutes before class. To minimize the waiting time, we prepared a hot water flask to keep our water hot for the coffee instead of having to boil the water every time a customer would like to make a purchase. We do not pre-make the coffee because we want to ensure that the coffee would not be cold or too diluted when a customer purchases it. Also, we would spread the cream cheese and bagels in advance, so customers would be able to receive the product upon payment. As for our pancakes, they have already been made by the café so all that needs to be done is to heat them up for the customers. This would take at most 3 minutes. Doughnuts on the other hand are pre packaged as it is convenient for us as well as the customers. During the charity drive week, we would have up to 200 customers approaching our booth. With the addition of our group mates going around campus, we would be able to approach approximately 100 customers. In total, we would be able to sell our products and collect donations from at least 300 customers a day. Our products are mostly purchased at our stall, but friends and relatives are able to order from us via telephone and social medias. We had displayed one of our group member’s contact number on our poster if they wish to use our delivery services. Our booth functioned in a way where we would work in shifts. Some group members will take turns being as the booth, while some would go around selling products or collecting our products from other locations.

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GREEN MEASURES

The food and drinks sold from our booth were distributed and packaged in an environmental friendly manner. Products such as bagels and donuts were sold by packaging it into paper bags, the coffee served were sold in paper cups. We tried to reduce the usage of plastic bag. The only food that was package in plastic container were the pancakes. As we know that the dispose of plastic is harmful to the environment, we served 2 servings of pancakes into 1 plastic container. By selling the foods and drinks in recyclable packagings, it helps to prevent the dispose of plastic waste.

Besides through selling our goods in an environmentally conscious manner, we reduced the carbon footprint by carpooling when we retrieve the packagings, ingredients, and foods from multiple locations. We reduced the usage of using papers to print out our business promotion by only printing two A3 size paper. As distributing out fliers would waste paper, we decided to use social media to attract our customers to our booth.

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HUMAN RESOURCE PLANNING Human resource management (HRM) is a function in an organisation that is designed to maximise employee performance in service of their employer’s strategic objectives. HRM is primarily concerned with how people are managed within organisations, focusing on policies and systems. Organisation Structure of Our Group

RebeccaMarie(ProjectManager)

LowWingChun(SalesExecutive)

DarrenTan

AdamWong

RosabellaMobijohn(AdvertisingExecutive)

MelarieDonough

ReneeTeoh(MarketingExecutive)

TengkuSyakira

KylaDiego

KimberleyFay(Treasurer)

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Job Scope of Group Members Team Member Job Scope Rebecca Marie Project Leader, Public Relations

(UNHCR), Agenda Planner, Saleswoman

Kimberley Fay Treasurer, Accountant, Saleswoman Low Wing Chun Sales Executive, Public Relations

(Munching Mob Café) Rosabella Mobijohn Advertising Executive, Saleswoman Melarie Donough Advertising Assistant, Saleswoman Kyla Diego Marketing Manager, Saleswoman,

Assistant Accountant Tengku Syakira Saleswoman, Assistant Accountant Renee Teoh Public Relations (Brooklyn B Bagels),

Saleswoman Darren Tan Salesman, Assistant Accountant Adam Wong Salesman

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EVALUATION OF RESULTS Revenue Sales Doughnuts RM 432.00 Pancakes RM 315.00 Bagels with Cream Cheese RM 65.00 Bagels RM 249.00 Coffee RM 292.0 Roti Kahwin RM 4.00 RM 1357.00 Less: Cost of Goods Sold Doughnuts RM 289.40 Pancakes RM 0.00 Bagels with Cream Cheese RM 58.90 Bagels RM 168.00 Coffee RM 99.60 Roti Kahwin RM 0.00 RM 615.90 Gross Profit RM 741.10 Add: Donation RM 260.00 Add: Sponsorship RM 1100.00 Adjusted Gross Profit RM 2101.10 Net Profit RM 2101.10

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Based on this analysis, we noticed that we didn’t exactly reach our targeted profits as a result to our sales. We find this to be due to our lack of products to offer to the public which results in the decreasing amount of customers after each day. We also find that the amount of products that we have sold could not amount to the targeted RM2,000 that we aim to profit from the sales (not including the donation and sponsorships). However, we also took note of the returning customers that we receive each day. Most of which are in favor to our food products as they themselves have stated that they are delicious. This is because we managed to maintain the freshness of our products and ensuring their quality to be continuous throughout the whole week of the Charity Drive Event. If we were to repeat this event, we’d surely amend what we did wrong so as to ensure the continuity of the incoming profit as well as the number of customers. We’d most probably attempt to increase the number of products supplied as well as make additions to the menu we provide, in order to be able to serve to a larger crowd of customers.

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REFERENCES

Microsoft Word {brandingstring}. (n.d.). Retrieved February 07, 2016, from https://word.office.live.com/wv/WordView.aspx?FBsrc=https://www.facebook.com/attachments/file_preview.php?id=941981992551204&time=1454639705&metadata The 10 Steps to a Successful Fundraising Event. (n.d.). Retrieved February 07, 2016, from http://www.thefundraisingauthority.com/fundraising-basics/fundraising-event/ UNHCR: The UN Refugee Agency. (n.d.). Retrieved February 07, 2016, from http://www.unhcr.org/cgi-bin/texis/vtx/home

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APPENDIX

The Video: https://www.youtube.com/watch?v=uQA1UU_bMdI&feature=youtu.be

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Letter via e-mail for United Nations High Commissioner for Refugees:

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Sponsorship letter via e-mail for Nestle:

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Sponsorship letter via e-mail for individuals:

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Receipts of purchases made: