FOUNDATION IN NATURAL AND BUILT ENVIRONMENTSJULY INTAKE 2015 | SEMESTER 2

INTRODUCTION TO BUSINESS [BUS30104]FINAL PROJECT

CHARITY DRIVE EVENTLecturer: Ms Tay Shir Men

Group Members:

Group Leader: Ahmad Syafiq Deen bin Abdul Rahman Deen (0325116)

Arina Nadia binti Farid (0324105)Haney Marsya binti Raimy (0324486)Hazeq Osman bin Ramlan (0325875)

Lim Men Horng (0324530)Mohd Nazrul bin Mohamad Kamsol (0325540)Muhd Aizzat Hakim bin Abdul Halim (0324396)

Ng Lek Yuen (0324010)Nur Firzana binti Muhd Hasmi (0324838)

Nur Iman Jezdmeen binti Julaiman (0325440)

TABLE OF CONTENTSContent Page

EXECUTIVE SUMMARY 3OBJECTIVES 4

TARGET MARKET 5COMPETITION ANALYSIS 7PRODUCT & PACKAGING 8

PRICING 10PROMOTION 11SPONSORS 12

DISTRIBUTION 13GREEN MEASURES 14

HUMAN RESOURCE PLANNING 15EVALUATION OF RESULTS 17

APPENDIX 19

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EXECUTIVE SUMMARY

Students of Foundation in Natural Built Environment and Foundation in Design who took this module were given a task of running a charity drive for a week for our final project. We were put into groups and our group consists of 10 people. This project is mainly to raise funds for the charity organization of our own choice. Other than that, this project gives us the opportunity to try out opening our own business.

After a lot of group discussions and opinions shared amongst ourselves, we came to a conclusion that we would be selling snacks which includes cotton candy, deep fried oreos, deep fried mars bars, etc. The reasons why we chose to sell snacks is because we know the struggle of many students who are hungry but late to class, especially architecture students because we are always busy doing projects. One of them would be deep fried oreos, which is great to munch on when in a hurry.

After a week of our non-profit business, we will donate our earnings to Kechara Soup Kitchen. Kechara Soup Kitchen is a place where they provide food and services like haircuts to homeless people. Kechara Soup Kitchen isn’t really a huge organization so we decided to help the homeless too.

In the week given, our group set up a booth infront of the Student Life Centre in Taylor’s University to sell our products. However, there were a few difficulties in running this business as we didn’t have a booth for two whole days and we were only told about this last minute due to the event management.

Overall, this charity drive was a great experience for us all. It also helps us widen our knowledge on how to run a business and how difficult it is to manage it. But our team are very satisfied with the outcome as we will donate our reached target earning, RM2700, to the charity organization. In fact, we are donating more than our reached target.

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OBJECTIVES

We chose to support KECHARA Soup Kitchen as our chosen charity organisation because they have done a lot to help feed the homeless by serving them food for free, and to make these meals obviously require cost for ingredients. So, we wanted to donate to help them with it and continue their generosity towards the homeless.

To raise a minimum of RM2,700 and donate it to KECHARA Soup Kitchen.

To give the community a chance to lend a helping hand to homeless people.

To create awareness about KECHARA Soup Kitchen and how they help feed the homeless in Kuala Lumpur for free.

To get a target donation of RM200 and more from the community. To sell at least 20 units of deep fried oreos and deep fried snickers each,

40 units of cotton candy, and 45 units of Mi Sedap everyday. To collect a minimum of RM500 everyday.

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TARGET MARKET ANALYSIS

a) Customers & Their Background

Our target market would primarily be the students who study at Taylor’s University Lakeside Campus. As Taylor’s University is a private institution, predominantly, the students at Taylor’s comes from middle to upper class family background with a household income of RM3,000 and above. Therefore, the students have a higher spending power and would be willing to pay for our products even though the cost are above the average market price. Furthermore, being an adolescent means the students are tempted to impulsive buying and also letting their cravings get to them which gives us an indication that by making our products quick, bite-sized and on-the-go would certainly bring the students coming for more.

Secondly, our next potential consumers are our friends and family. The help from them gives us the upper hand in this charity drive as they can be easily persuaded into purchasing larger quantities of our products regardless of the cost or quality of our product. Besides that, they would usually bring along their other friends meaning we would be able to promote our products easily. Moreover, family members would willingly help support our effort in making our Business Final Project a success by spending above than their usual expenditure.

Thirdly, our final consumers comes down to the rest of the people that work in Taylor’s University Lakeside Campus who represents the lecturers, staffs, caretakers, visitors and everyone else. This target market would be the hardest to appeal to but once you get their attention, they tend to pay more for the products as they provide their own income.

(b) Customers Wants & Needs

Our main consumers wants and needs varies. However, amongst all three of our major target markets it is visible that they are more keen towards our instant noodle product along with having a sweet tooth for fried sweets and cotton candy. This reason is because our products are cooked and produced on the spot when it is purchased and our consumers will receive them hot, freshly made and nice to eat especially during the evening when business hour is booming as our target market is starving coming from their classes and they plan to head home. Bear in mind, they could easily have instant noodles at the commercial

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area in Taylor’s but even Star Teh Tarik Restaurant and OldTown White Coffee is more expensive to buy a meal of fried instant noodle. Other than that, by making our product on-the-go and nicely packaged along with having a reasonable price ranging from RM3-RM5. It is a no brainer to why our consumers would come back for more.

Next, our second consumers main needs coming from friends and family is that they want to provide aid and assistance. Instead of promoting to them to purchase our products, we skip that part to ask their help in raising funds to our cause which is the objective of the charity drive. It is likely that they will purchase our products more than our primary target market. We do acknowledge that it is morally wrong to take advantage of their kind generosity to help our charity.

Finally, our tertiary consumers are the least to approach our store, they will oversee what we have to offer as they pass by the stall but it is less likely they will stop by and purchase something. Therefore, the tertiary consumers have no needs for our product which means not much wanting either.

(c) Customers’ Spending Power

The target market’s spending power is determined by the amount of expense they received from their parents. Being the same age group as our main target market, we devised a plan and come up with the conclusion that they would be willing to spend their money from RM3 to products that cost up to RM7 being the maximum.

Our secondary consumers depends on the bond between us and them rather than their amount of expense. The more established our relationship is with them, the more likely the consumers are willing to pay extra for the products.

Lastly, tertiary consumers spendings range from low spending power like the caretakers to exceedingly high coming from the staffs and lecturers. We roughly determined their spending power being RM3 as the lowest up to RM10 being the most that they are willing to spend.

COMPETITION ANALYSIS

We do not have many competitors during the charity drive week, they were just like neighbours to us because we sell different types of food. However, there was

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one group selling different varieties of food such as Nasi Lemak, Lasagna, Otak-otak, etc.

Strengths: They sell their food for cheaper price. Their food ranges from RM1-RM6. Many people are more interested in buying meals rather than snacks. People also prefer not to eat snacks in the morning. Their location was an advantage as they are the first booth and this allows

them to approach potential customers easily.

Weaknesses: Their food are always sold out early. If they would prepare more meals in

a day, they could have sold more and earn more money.

Customers would buy from them because of the varieties of food they offer and the affordable price they offered. This affects our group’s pricing. We decided to lower down the price of our snacks.

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PRODUCT AND PACKAGING

We have four products that consists of cotton candy, fried oreos, fried snickers/mars and Mi Sedap(instant noodles). These products are homemade and made instantly in front of our customers.

Product 1: Mi Sedap (instant noodles)

Description: Ideal meal for rushing students. Noodles made instantly and served hot to our customer.

Package: Packed into a container

Product 2: Fried Oreos

Description: Oreos dipped in cake batter then fried is a delicious crispy snack especially for those with a sweet tooth.

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Package: Three pieces of fried Oreos chopped into four parts are served in a plastic cup, making it easier for the customers to enjoy.

Product 3: Fried Snickers/Mars

Description: A mouth-watering snack, made fresh with its oozing caramel is definitely worth it.

Package: Two bars or snickers/mars are cut into halves and served hot and crispy in a plastic cup.

Product 4: Cotton Candy

Description: A light, very sweet candy of threaded sugar, tinted with pink food coloring and twirled onto a stick.

Package: The cotton candy is to be consumed instantly thus, there is no packaging for this product.

The food products are packed into clear containers in order for people to see the products clearly and for them to be satisfied with what they ordered. Our stall is recognized because of the cotton candy as we are the only stall that are selling it and the process of making it attracts customers to come to watch out of curiosity and thus buying them.

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PRICINGProducts Selling Price (/unit) Cost PriceMi Sedap RM5.00 RM2

Deep Fried Oreos RM3.00 RM1Deep Fried Snickers RM5.00 RM1

Cotton Candy (M) RM4.00 RM2Cotton Candy (L) RM5.00 RM3

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PROMOTION

3. Face-to-face conversation – we walked the entire Block E and promoted our stall to our seniors and juniors from Architecture school. We brought the donation box as well as a carrier with our food products in it. This attracted quite a number of them to our stall since most of them were students doing assignments and were probably very hungry. We also provided delivery service for them.

1. Posters – an A3 sized poster was designed using Adobe Illustrator CC and printed. This was used to attract customers to our stall and give them an idea of what we were selling. We hung a few of these at the front view of our table, and a few others behind us on the board.

2. Social Media – we promoted them on large Facebook groups(such as the screenshot above), as well as Whatsapp groups. This attracted people we knew to express interest in it and come to our stall.

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SPONSORS

At first, we asked from a few chicken nuggets suppliers, such as Ramly Food Processing Sdn Bhd and Kedai Ayamas through email to sponsor us a few packs of chicken nuggets for us to sell but they never replied.

However, we did get a few sponsorships from each of our parents or their companies by sending out letters and this helped us make a total of RM1500 of sponsorship in cash.Other than that, we also accepted direct donations to the organization, most of the donations were donated by fellow students and lecturers in Taylor’s University Campus by approaching them in person. The total amount of donations we got is around RM335 in cash.

In conclusion, we received a total of RM1835 from sponsorships and donations.

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DISTRIBUTION

Since the nature of our food is the kind of food that is ideally to be consumed at once and not left more than an hour, we will make the products in front of our customers, and then pack them right after making them. For instance, the Mi Sedap (instant noodle) was made right after an order is placed to keep the order warm and fresh for our customers. However, before our stalls are opened we made preparations to get the noodles ready so that our customers don’t have to wait too long for their order to be done.

Next, for our cotton candy, we just needed sugar and food colouring to prepare the product and not to forget the machine itself. The total packs of sugar were needed for this charity was 6 packs. All the stocks is stored into our car and is drove to Lakeside Campus everyday for the rest charity week to deliver to our stall.

Other than that, our fried Oreos and Snickers, we had bought them in several packs and continue to buy them whenever it goes out of stock. The number of Oreos ran out more than the snickers, thus we only restocked the oreos as it had a higher demand.

Since our food is served fresh everything is packed and prepared right on the spot, customers would have to wait for a few minutes for their orders. Although having to wait for few minutes, this does not refrain them from coming back to buy our products again as the foods we prepare are worth their time.

Majority of our customers are the passing by students. Being attracted to the idea of deep fried oreos and snickers, they try it out of curiosity and continue to buy it the following few days. Other than that, instant noodles were also a big hit as it was sold at a reasonable price and is quite fulfilling for a go to lunch.

Lastly, our customers also consist of friends and lecturers who were supporting us fully by purchasing our products as well donating to our stall. For this, we are thankful for their contribution in helping the community

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GREEN MEASURES

We used a variety of packaging for our snacks. For cotton candies, we chose not to store it in a plastic bag because it would add more cost and it is not environmentally friendly. The most important thing is, cotton candies are better eaten freshly!

As for the deep fried snacks, we initially used small plastic cups but later changed the packaging to brown paper bags. The brown paper bags are a cheaper alternative but it made our products look less impressing.

We chose to use plastic containers to sell our noodles in it even though it is not environmentally friendly. However, we avoided using foam containers as they will affect health if the foam is melted. Using plastic containers are safer than using the foam containers.

The brown paper bags can be recycled again and again to produce other products such as toilet paper or other types of paper. The plastic containers, in the other hand, are reusable. The oil we used to deep fry the snacks are re-used for the second time before we throw it out.

We reduced carbon footprint during the distribution stage because we did not provide any delivery as our targets were just the students and staffs of Taylor’s University Lakeside Campus.

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HUMAN RESOURCE PLANNING

Team Organisational Structure & Job Delegations

As we progressed into the business sales week, we divided ourselves between the necessary roles below:

(A) Project Manager: Lek Yuen

The person in charge is required to organise and overlook the overall project. Giving out clear instructions to the other members ensuring they are handling their own roles responsibly. As well as, producing an action plan and solutions to maximise the business strategy sales for both planned and unplanned situations.

(B) Sales Executive: Nazrul, Firzana, Haney & AIzzat

In a group, their aim is to introduce the variety of products we are selling with food testers that we provided throughout the day and promoting the products to potential customers.

(C) Production Executive: Horng, Hazeq & Jezdmeen

Project Manager (Lek Yuen)

Sales Executive (Nazrul)(Firzana)(Haney) (Aizzat)

Marketing Executive

(Arina)(Syafiq) Accounting &

Finance(Lek Yuen)

Production Executive (Horng) (Hazeq)

(Jezdmeen)

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Each person is required to handle the products properly while prepping and presenting them in the most pleasing way, keeping in mind of hygiene and also cleanliness before giving the paid products to our customers.

(D) Marketing & Executive: Arina & Syafiq

As a pair, they strategically come up with the marketing campaigns to promote the business through posters and fliers. Additionally, they also manage the marketing strategies through social media such as Facebook, Instagram and Snapchat.

(E) Accounting & Finance: Lek Yuen

The person handling with the accountings must formulate the financial records ensuring that the business is increasing in revenue. On top of that, monitor the flow of money through receipt books and keeping them up-to-date. In addition, they must foresee the productivity of the business where money is concerned and suggest ways to minimise the cost while improving profits.

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EVALUATION OF RESULTSPROFIT AND LOSS REPORT

Statement of income for The Ming Ming’s group which ended on the 27th of May 2016

Total Sales Revenue……..…………………………………………………….RM1800Less: Cost of Goods Sold……………………………………………………...RM732Gross Profit……………………………………………………………………...RM1068Add: Donation and Sponsorship……………………….………………..........RM1835Adjusted Gross Profit………………………………………………..…………RM2903

Less: Operation Expenses Typhoid Vaccine Injection………………………………………….…………..RM110Printing Cost…………………………………………………………….……….RM18Product Packaging………………………………………………………………RM30Receipt Book Purchase……………………………………………………..….RM5Total Operating Expenses…………………………………………………….RM163 Net Profit………………………………….…………………………………..RM2,740

Throughout the whole charity drive event, our group worked really well and each member did give their full cooperation to manage the business. We also successfully earned RM2,740 in total to reach the target amount which is RM2,700 for our group.

However, running a business seems to be easy for us but when we started doing a proper business we found out how difficult it actually is to manage, especially if we do not plan well at the very beginning. We encountered pitfalls with the fried Mars bar or Snickers, coffee and tea on the first two days of business because of the price we stated was too high. The amount of fried Mars bar, snickers, coffee and tea sold during the event did not earn as what we planned. After we did the survey on the first two days, we decided to plan again for the fried Mars bar and Snickers’ price and remove coffee and tea from our menu. Although there is a lot of competition around us, we do constantly get earnings from the Fried Oreo, Mi Sedap and Cotton Candy. Some of the feedback we got from our customer for buying these three main products from us is because the price we stated for the product was reasonable.

If we are given a second chance to do this charity drive again, we would do a survey on what food will the people in the campus prefer and also the price range before the charity drive start. Furthermore, we will also redesign our menu with main dishes such as lunch meals. We would also pick a good location which have more people to pass by such as the open space outside the library because we realise that a lot people will actually avoid going through Student Life Centre because it is very packed with people.

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Link to reflection video: https://www.youtube.com/watch?v=e0lsAkV33lA&feature=youtu.be

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APPENDIX

i. Typhoid Vaccine Receipts

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ii. Letter to request for sponsorship

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iv. Purchase receipts of our products

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v. Pictures of some of our products

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vi. Sales receipt of our products

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vii. Official receipt from Kechara Soup Kitchen Charity Organisation

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