FNBE0214 - Business (Charity Sales)
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Transcript of FNBE0214 - Business (Charity Sales)
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INTRODUCTION TO BUSINESS
CHARITY DRIVE REPORT
GROUP MEMBERS
Amos Tan Chi Yi (0318330)
Aida Junita binti Zulkiflee (0317766)
Chia Sue Hwa (0317920)
Khor Yen Min (0318149)
Lee Czen Shing (0317832)
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Table of Contents
Objectives
Target Market
Competition Analysis
Product and Packaging
Pricing
Promotion
Sponsors
Distribution
Green Measures
Human Resource Planning
Evaluation of Results
Executive Summary
Appendices
Reference
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1. Objectives
1.1 Donation to Hospital UKM (Pediatric Unit)
Details of charity to receive profits from business sales week:-
Charity of choice: Hospital UKM (Hospital Universiti Kebangsaan Malaysia)
Specific unit: Pediatric Ward 4D (child cancer patients)
Address: Tingkat 7, Blok Klinikal, Hospital UKM, Jalan Yaacob Latiff, Bandar Tun Razak,
56000 Cheras, Wilayah Persekutuan Kuala Lumpur, Malaysia
Phone Number: +60 3-9172 6064
The reason for donation of our business sales profits to the Pediatric Unit of Hospital UKM is to
fund expenses for purchase of needs and tools of the affected children. Items include books,
schooling necessities, and medical treatment.
1.2 Professional and Personal Objectives
Professional objectives targeted:-
i. A target donation of RM 2500.00
ii. A sales profit of RM2500.00 and above.
iii. Targeted sales unit:
- 40 brownies
- 80 cups of popcorn
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- 50 sticks of cotton candy
Personal Objectives
i. To produce and execute a substantial business proposal and plan.
ii. To obtain new skills in the context of our business (e.g. marketing techniques,
accounting skills, production methods, planning strategies)
iii. To gain a memorable experience.
YouTube Link https://www.youtube.com/watch?v=k79o_Rh6E74&feature=youtu.be
2. Target Market
2.1 Customers and Their Backgrounds
Our primary customers would be the students of Taylor's University Lakeside Campus (TULC).
As the TULC is a private institution, the majority students of said institution would be from the
middle to upper income level group (household income >RM4000 at least), and would thus
would be willing to purchase our products even though it is above market price. These students
would also be highly interested in the consumption of sweet and savory treats (akin to our
products), and, being young adults, be highly vulnerable to compulsion and craving, which we
take as an opportunity. By creating addictive and tasty products that are bite-sized, our primary
customers would be highly compelled to return day after day, if not hour after hour.
Our secondary customers would be our friends and family. The advantage of this customer base
would be that they can be easily convinced and persuaded into purchasing large amounts of our
products at a higher cost without any regard for quality. As they are close acquaintances to us,
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we would be able to present our products easily with barely any need for marketing. Especially
to family, with their willingness to support our endeavors, would spend way above usual
customers from their income bracket would normally spend.
Our tertiary customers would be everybody else present in the TULC – staff, lecturers, janitors,
visitors, everybody else. This target group would be harder to appeal to, but is also willing to
spend more on our products as they most likely have their salaries.
2.2 Customers’ Wants and Needs
Our customers' wants and needs are diverse. The following information regarding “customer
type” is derived from the information presented in (2.1)
Our primary customers want primarily one thing: sweet delicacies. Our target group has a large
craving for sweet products such as ours, and is willing to pay a premium for it. This target group
is also misleadingly informed on the ambiguous “advantages” and “freshness” of “home-made
products”, and thus would be be willing to an even higher price for a product that is exactly the
same as a factory-made one. Thus, it is clear that our products caters extremely well to this target
demographic. In addition, by making our products delicious yet bite-sized, as well as reasonably
priced, (less than and equal to RM5) we create an artificial need to the customer: the need for
more gratification. Here, we take advantage of the customer's want for more by selling products
that are sized just short of satisfying. The customer would then have an innate need for more of
the same, and would be coaxed into coming and purchasing the same product again.
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Our secondary customers primarily want one thing: to support us. While it is true a sizable
minority of them wants them because of the merit of the product, the majority just want to
exercise their obligation as family and friends and purchase the products to “support” and “care”
for us. With this, we could take advantage of that mentality and present our products to them
from a different angle. Instead of showing them how tasty and “homemade” our products are, we
could ask them to support our cause. Regardless of approach, however, it is highly likely that
they will succumb to their friendship or familial obligations and purchase our products. For the
record it is indeed morally wrong to take advantage of such generosity.
Our tertiary customers have no need of our product, and barely have any wants of it as well.
2.3 Customers’ Spending Power
The following information regarding “customer type” is derived from the information presented
in (2.1).
Our primary customers' spending power is highly dependent on their parent's income bracket.
However, as they are students of TULC, a private institution, the vast majority of them would
come from a middle to upper income family. (household income >RM4000) Based on our
informal oral surveys among our peers, the majority of them are willing to expend up to RM5
for any product, with RM10 being the absolute limit. This is also reflected in the tendencies of
the students to have their lunches and dinners at relatively expensive restaurants. (Matsuba and
Old Town White Coffee bearing in mind)
Our secondary customers' spending power is less dependent on income, and more dependent on
how strong the relationship between us and them is. The closer the ties the customer has with us,
the more said customer is willing to expend. For example, a distant friend would not spend as
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much as a close family member. Thus, their spending power could be ranked on a scale; from
RM5 (being distant friends and acquaintances), RM10(closer friends), and RM20 and above
(close friends and family members).
Our tertiary customer's spending power is diverse, ranging from low spending power from the
janitors to extremely high spending power from the lecturers and staff. We estimate that the low-
income group (i.e. janitors, cleaners) would be willing to expend at most (and rarely) RM5, and
the higher income group (lecturers, staff, visitors, etc) would be willing to, on average, expend
upwards of RM15.
3. Competition Analysis
A full analysis of our 2 main competitor stalls, Pretty Pastries and Eat and Treat:-
Comparative Information
Pretty Pastries Eat and Treat Conclusion to improve Poppins
Products Brownies, cupcakes, cake pops, buns.
Ice cream, tea-infused eggs, Ipoh
kaya puffs.
A variety of similar foods suitable for everyone:
brownies, popcorn, cotton
candy.
Strengths Demure and colorful
baked goods, and decoration that
appeals to a certain
market.
A wide range of
goodies that appeals to a large market.
Appealing and fitting theme
for type of foods and décor.
Vulnerabilities Lack of mobile sales
with customer majority. Lack of
promotion.
Lack of mobile sales
and promotion.
Emphasize mobile sales,
promotions and marketing.
Hot products Brownies. Ice-cream. Brownies as the main and popular product.
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4. Product and Packaging
4.1 Products
We have three products. These products are reminiscent of products sold during American
funfairs, and are presented as a fun, and delicious snack. The products are homemade with fresh
ingredients, and offer a delicious and addicting flavor.
Brownies (priced RM5 per piece) –
homemade with supermarket bought ingredients, with special emphasis on Hershey's chocolate
chips being used. The brownies cut into sizes of roughly 5cm x 4cm, and placed on a white
paper.
Popcorn (priced RM3 per cup) – homemade with
supermarket bought ingredients, using a freely leased popcorn
machine courtesy of a team member's family. Special emphasis
is placed on the homemade nature of everything, including the
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sweet caramel sauce. The popcorn is put inside cups of volume 250ml. It is not divided by
weight.
Cotton Candy/Candyfloss (priced RM2 per stick) – made in situ and
on demand with supermarket bought ingredients, using a freely leased
cotton candy making machine courtesy of a team member's family.
Customers will be able to see the cotton candy being made in front of
them. We do not expect this product to be our main selling point, as the
machine overheats easily, thus limiting our production.
4.2 Packaging
The products are minimally packaged to save cost, ease production and create a more product
oriented focus.
BROWNIES
Brownies are simply put on clean small baking papers, and sold as is.
POPCORN
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Popcorns are put inside 250ml plastic cups and brown paper bags.
Packaging is done by volume and not by weight.
COTTON CANDY
As cotton candy is meant to be consumed at once, no packaging is
given at all.
While the packaging is minimal at best and barebones at worst, the presentation of the products
(smell, stall and staff design, theme and look) is enough to appeal to the customers.
YouTube Link: https://www.youtube.com/watch?v=X6UqaQwknlY&feature=youtu.be
5. Pricing
The selling price of the products are as follows: Brownies RM5/piece, Popcorn RM3/cup, Cotton
Candy RM2/stick. The prices are roughly three (3) times the cost price. The prices are also
constant, with no discounts given to bulk orders.
Pricing is determined based on the table below:
Brownies
(i)
Brownies
(ii)
Brownies
(iii)
Pecan
Pie Popcorn
Cotton
Candy
S. Price RM 3.50
RM 55.00
RM 5.00
RM 65.00
RM 3.00
RM 2.00
Units 32 5 542 1 149 17
Rev RM
112.00 RM
275.00 RM
2,710.00 RM
65.00 RM
447.00 RM
34.00
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Brownies
(i)
Brownies
(ii)
Brownies
(iii)
Pecan
Pie Popcorn
Cotton
Candy
C. Price RM 1.05
RM 17.00
RM 1.40
RM 32.00
RM 1.25
RM 0.22
Units 32 5 542 1 149 17
Rev RM
33.60 RM
85.00 RM
758.80 RM
32.00 RM
186.25 RM 3.74
In this table, the item “Brownies (i)” refer to brownies sold during market testing. “Brownies
(ii)” refer to brownies sold as special orders to customers. “Brownies (iii)” refers to brownies
sold during the Charity Sale event itself. “Pecan Pie” refers to a special order from the baker's
acquaintances.
As is evident on the table, the cost prices of brownies, popcorn and cotton candy are RM1.40,
RM1.25 and RM0.22 respectively. Thus, with the sales prices of RM5 for brownies, RM3 for
popcorn and RM2 for cotton candy, we are able to generate a revenue that is on average 3.57
times the cost price of brownies, 2.4 times the cost price of popcorn, and a whopping 9 times the
cost price of cotton candy.
The products are popular and attractive, with a high demand for brownies and popcorn, and
medium to low demand for cotton candy. During our initial market testing of brownies, the
selling price of RM3.50 generated great demand. This led us to later produce slightly bigger
servings at an increased cost of RM5. Popcorn also showed great demand, with many enjoying it
as a sweet and simple snack and a supplement during their study times. As such, even at a above
market price of RM3 along with a significantly reduced serving compared to those sold in
supermarkets, the demand for popcorn is evident. As the cotton candy required up to three
minutes of waiting, the demand is far lower than the other two. Customers frequently complained
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that it was taking too much time, and the poor operating capacity of the cotton candy machine
made it difficult to mass produce.
In the event that our products fail to gain popularity or isn't selling enough, our contingency
plans include aggressive push marketing, increased focus on selling to our secondary customers
(see 2.1), and expanding our market area to include other colleges and universities. We did have
to employ those strategies, and it produced a significant increase to our sales, particularly thanks
to us selling our products to the SS15 area, where the Taylor's College, INTI, and Metropolitan
colleges were located.
6. Promotion
A detailed plan of the promotional strategies and tools you will use:
Our main marketing message is “Think of the Children”, as our charity organization is the
HUKM childrens with cancer ward. Our promotion include elements of emotional appeal, where
we push the idea of “dying children” in order to win the customer's interest.
Our primary and the most important tool of product communication is through word of mouth.
Thanks to our broad contact list, we are able to inform a vast amount of people to visit our stall
and purchase our products, as well as them advertising to their peers. This extends beyond
TULC. Before we reached out to the SS15 colleges, notifications were sent to friends currently
studying there, with instructions to spread the word, advertise and purchase the products.
Our secondary tool is aggressive push marketing. We aggressively and proactively approach
people to advertise our product, going as far as SS15 to advertise on the streets as well as the
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Taylor's College campus and even going to charity events organized by third parties to sell our
products there.
In addition, we made an attractive poster that uses bright and cheerful colours to further promote
our products.
We believe this promotion approach is suitable because it works for our product. By both
pushing our products via approaching people as well as pulling customers by advertising through
word of mouth, we create a strong demand for our products.
YouTube Link: https://www.youtube.com/watch?v=0Cjd4JmXvUA&feature=youtu.be
Photos of booth props and set-up daily.
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7. Sponsors
Through this project from the beginning of preparations to sales week to accounting, we have not
approached any individual or organization for any form of sponsorship. Reason being, we
decided as a team to break through independently.
However, we did accept contributions in form of cash to be included directly as donations to the
charity. Parties that donated:-
i. Family members
ii. Friends
iii. Fellow students in Taylor’s University Campus
iv. Students from Taylor’s College Subang Campus and Inti College
Total donations amount: RM500.90.
8. Distribution
As our products are homemade the night before each sale, we needed to produce large quantities
of products quickly as well as to transport them to the campus. By separating production of
brownies and production of popcorn to two different homes, and splitting the team, we are able
to create both products simultaneously and efficiently. The products are then stored in large
containers, and then transported to campus via car.
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To distribute the products on campus, two methods are used. The first merely involves the
attractive placement of products on the stall table. The second involves placing the products on
an attractive red tray and then traveling throughout the entire campus to push the products.
Transportation to out of campus areas is done via car, and the products are distributed there using
the same red tray as aforementioned.
Brownies and popcorn are premade and prepackaged, and thus are readily available to the
customer for instant consumption. However, cotton candies require to be made on the spot, and
using a faulty and troublesome machine. This results in cotton candies requiring up to 3 minutes
to prepare. Fortunately, the demand for cotton candies is far lower than demand for brownies and
popcorn, and thus we did not encounter any problems.
By splitting our team into “pushers”, stall operators, we are able to simultaneously reach out to
people all over the campus as well as to the people near the SLC. In addition, when we needed to
reach out to the other campuses, we sent a two person team there, left a person to take care of the
stall, and sent another two person team throughout the campus. This allows us to cover a vast
amount of space at the same time, further expanding our products as well as reaching out to a
large amount of potential customers.
Left to right: Booth
sales at fund-raising
event organized by
Hospital UKM. All ready
to sell at SS15 colleges!
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9. Green Measures
As all the products are edible, relatively few environmental waste is produced. With the
exception of the plastic cup used to package the popcorn (which could be recycled), everything
else is environmentally-friendly. As the brownies are packaged with paper, and the entire cotton
candy being edible, we create very few wastage; paper could be recycled or decomposed, and the
plastic cups could be recycled.
As the majority of distribution is done on foot (throughout campus and on the SS15 streets), the
carbon footprint is low.
Electricity is used only on demand, and only used to power the cotton candy machine. The cotton
candy machine is only used when a customer orders a cotton candy, which due to its low
demand, results it being used relatively rarely. This, by extension, greatly reduces electricity use.
10. Human Resource Planning
Team organizational and job delegation chart:-
Director
(Amos)
Sales
(Sue)
(Sam)
(Yen Min)
Production
(Aida)
(Yen Min)
(Sue)
(Sam)
(Amos)
Accounting and Finance
(Yen Min)
(AIda)
Documentation and Report
(Amos)
(Sue)
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As the weeks progressed leading up to business sales week, our team split necessary roles
amongst ourselves, which included:
i. Director
Led by Amos, a clear direction and path to achieving our objectives was readily devised,
for both planned and impromptu situations.
ii. Sales Team
Kept constantly active and mobile, Sue, Samantha and Yen Min worked together in pairs
under separate shifts and target locations every day of the week. A variety of marketing
tactics such as thought-out promoting scripts, mobile sales at every part of campus, and
selling at other colleges were implemented.
iii. Production Team
Although led by Aida and Yen Min, the whole team was involved heavily in the baking
of brownies and popcorn. Hard work by night was required to mass produce fresh units
for sale the next day.
iv. Accounting and Finance Team
Handled by Yen Min and Aida simultaneously (as production), this made it easier for the
bakers to control the cost of ingredients and amount of target profit, both needed daily.
Main receipting and monetary issues were also largely handled by the duo.
v. Documentation and Report Team
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All photos, videos, and non-account-related facts documented by Amos and Sue. Also the
writers of the final business report.
As a conclusion, thorough team spirit was evident through equal job delegation and helping out
one another regardless of designated departments.
Left to right, clockwise: Aida checking on the brownies. Sue selling
remaining goods at Taylor’s College, Subang. Yen Min and Sam mixing the
chocolate for the brownies. Cotton-candy testing sessions at Amos’s
house. Amos getting handy making caramel for popcorn in Sue’s kitchen.
Yen Min counting current cash at the booth.
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11. Evaluation of Results
At the end of this project, the results are shown on the following Income Statement.
Income Statement of Group A Charity Drive Event
Revenue
Sales RM 3,643.00
Less: Cost of Goods Sold RM 1,099.39
Gross Profit RM 2,543.61
Add: Donation RM 500.90
Adjusted Gross Profit RM 3,044.51
Less: Operating Expenses
Typhoid Injection
RM 300.00
Printing
RM 14.40
Miscellaneous
RM 94.75
Total Operating Expenses RM 409.15
Net Profit RM 2,635.36
It is in the author's opinion that we have done really well in sales. We have succeeded in
generating massive demand for our products, and are able to produce enough supply to meet the
demand. However, we encountered pitfalls with the cotton candy machine, and even though the
revenue for a single cotton candy is 9x the cost price, the miniscule amount sold during the event
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did not give as much an impact as we had hoped. We could have dropped the cotton candy from
the menu and focus on our two most popular products. In addition, we ran into massive
difficulties in production. Although in the end we were certainly able to meet the demand, there
is no denying the massive efforts, energy as well as overhead costs needed to sustain sizable
production rates.
If this event were to be run again, we would streamline our production, remove the cotton candy
from the menu, and perhaps we could have gone to more campuses besides TULC and the ones
in SS15.
YouTube Link to Reflection Video: https://www.youtube.com/watch?v=l-
T_7RLtvQo&list=UUnH7Dd8keieBBS8PTKe3BpQ
12. Executive Summary
In light of our recent charity sales for our business subject, we did indeed managed to exceed our
target profit and donations, which amounted to RM2635.35. Along the way to actually realizing
this hard-earned money, our five-man team had seen the ups and downs of running our own
small, self-sustaining enterprise. Keeping in mind that these highs and lows originated from
excited suggestions, it was indescribably satisfying seeing them through and develop into full-
fledged possibilities and eventually results.
The realization that this assignment was not just about hitting the monetary target was
increasingly evident as we bonded as a team to lead each other through each and every challenge
as they presented themselves. From customer’s criticism regarding product quality to a drain of
energy from full-day sales and late-night baking during mid-week, we always pushed on.
Learning every day and slowly but surely grasping the skills of our individual responsibilities
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was an insightful process. Definitely there were times when we nearly broke down in a temper
due to exhaustion and frustration, but we managed to stay understanding and treat each other
reasonably.
The result was a brilliant business, built by Poppins, from scratch. Not to mention a brilliant
friendship.
13. Appendix
A collection of all printed
documents.
Official handing over the cheque to the Pediatric Ward of
Hospital UKM. Final group photo in the nursery of the Pediatric
Ward.
Typhoid injection
certificates of all
team members.
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The final donation cheque to Hospital UKM.
Left and below: A total of 6 receipt books
were used. A sample of on-the-spot
accounting and receipting during booth
sales.
Collected receipts from
purchases.
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14. Reference
How to Write a Business Report: http://www.wikihow.com/Write-a-Business-Report
Structure of the Report: http://unilearning.uow.edu.au/report/4b.html