Schani  Daniel  Bharat  Teoh  Sze  Ming  Nge  Jia  Chen  Tan  Yincy  

Simpson  Chin    

   

SCHOOL  OF  ARCHITECTURE,  BUILDING  &  DESIGN  Foundation  of  Natural  Build  Environment  (FNBE)  

             

Introduction  to  Business  [BUS30104]  Submission  date  –  28th  November  2014  

       

 

 

 

B.  Objectives  

a)  For  this  particular  charity  drive  we  have  decided  to  donate  our  earning  to  the  ‘World  Vision’  organization.  We  have  chosen  this  particular  organization,  because  poverty  has  been  one  of  the  longest  problems  that  the  world  has  faced.  We  felt  as  though  it  would  be  the  most  appropriate  cause  to  support  as  everyday  we  see  how  much  food  is  wasted,  by  our  selves  and  the  ones  around  us.    

b)  Our  aim  and  target  to  donate  towards  the  organization  was  RM  2500,  which  would  mean  almost  90%  of  target  sales  had  to  be  met,  before  even  thinking  about  achieving  that  target.  

c)    http://youtu.be/yV2eBGqv0MM

 

C.  Target  Market  

a)  The  Malaysian  community  consists  of  mainly  3  different  races,  Chinese,  Indian  &  Malay.  Amongst  these  races  the  cultural  differences  are  in  ample  amounts,  in  terms  of  religion  and  way  of  lives.  Furthermore  majority  of  the  students  in  Taylors  are  of  Chinese  origins  (Buddhists  and  Christians),  followed  by  Malays  (Islam)  and  then  Indians  (Christians  and  Hindus).  Assuming  that  even  though  various  nationalities  of  students  attend  Taylors  a  generalized  assumption  can  be  made,  that  most  of  the  student  that  study  at  Taylors  University  are  of  a  middle  or  upper  stage  of  the  socio  economic  scale.  Thus  would  be  financially  stable  to  afford  the  products  that  would  be  sold.    Majority  of  Malaysians  enjoy  eating,  the  diversity  and  availability  in  the  various  types  of  food  sources  that  solidify  the  consensus  that  eating  is  the  number  one  infatuation  that  all  Malaysians  share.  

Due  to  the  different  cultural  backgrounds  and  exposure,  this  would  then  mean,  the  type  of  products  being  sold  would  not  only  need  to  satisfy  their  common  needs,  but  also  connect  to  them  in  a  particular  sense  as  well.  However,  having  students,  as  primary  targets  would  imply  that  they  would  be  more  open  and  less  reluctant  to  more  westernize  products.  

b)  Cheap  is  the  word  that  stands  out  when  thinking  about  the  masses  in  Malaysia,  this  is  probably  the  most  common  stereotype  that  is  evident  amongst  the  peoples?  Anything  that  is  cheap  is  right,  no  two  ways  about  it.  The  demand  and  supply  that  comes  of  the  lesser  option  is  generally  most  popular.  Other  than  the  obvious  needs  and  wants  that  are  of  basic  clarity.    The  demand  for  products  that  possess  a  great  quality  is  also  a  massive  subjectivity  amongst  the  Malaysians.    

c)  Spending  power  is  specific  to  the  area  we  are  planning  to  sell  at,  in  this  instance  the  prescribed  area  would  be  Taylors  University.  Based  on  this  evaluation  and  the  observation  of  the  functions  of  the  commercial  block,  we  noticed  that  students  are  willing  to  spend  a  minimum  average  of  thirty-­‐five  ringgit,  a  day.  Based  on  the  pricing  of  the  various  restaurants  

around  the  campus,  we  deducted  that  out  of  all  the  restaurants;  the  ‘Mamak’  would  be  the  most  cheapest,  it’s  a  fall  back  restaurant  when  students  or  lecturers  are  tight  or  low  on  cash.    

Furthermore  the  lecturers  at  Taylors  can  be  seen,  as  top  of  the  spending  chain,  due  to  the  status  of  possessing  a  job,  hence  would  demean  the  greater  and  less  stressful  availability  of  spending  power.  

 

 

D.  Competition  analysis  

Two  main  competitors  would  be  the  businesses  that  are  actually  selling  products  or  distributing  services  that  are  totally  different  as  compared  to  our  products.  The  stall  next  to  us  were  sponsored  massively,  as  they  possessed  a  Coco  Cola  machine  as  well  an  ice  cream  dispenser.  This  would  already  prove  to  be  super  useful  resources  in  the  long  term.  As  the  amount  of  profit  they  made  and  the  customers  they  would  attract  would  be  of  a  wider  base,  due  the  humid/  hot  climate  that  Malaysia  possesses,  it  would  mean,  people  would  automatically  seek,  a  cold  beverage  or  a  cold  dessert  to  sooth  their  warm  conditions.  

The  other  group,  that  proved  to  be  a  ‘threat’  would  be  the  group  that  was  offering  other  services  that  neither  of  the  other  groups  possessed,  the  availability  of  ‘henna’  a  form  of  non  permanent  tattooing  that  is  greatly  popular  amongst  teenagers.  This  would  mean,  that  their  target  market  would  be  more  specific  to  girls,  and  shockingly  a  large  number  of  boys  now  too,  as  they’re  more  willing  to  try  new  things.  

 

However  I  felt  like  due  to  the  fact  that  both  booth  had  more  resources  and  different  services  compared  to  us,  it  also  meant  that,  no  other  groups  actually  sold  what  we  did,  which  were  chicken  floss  tarts,  longan  pudding,  unique  muffins  and  chocolate  chip  cookies.  Their  weaknesses  were  probably  how  they  weren’t  really  able  to  handle  large  number  of  customers  due  to  inexperienced  student  working  at  their  booths.    

 

E.  Product  &  Packaging  

For   the  products  of  our   charity  drive,  we  decided   to   sell   tarts,  muffins   and  puddings.  We  initially  thought  of  selling  more  items  such  as  marshmallow  dips  and  drinks  but  we  cut  them  down  to  3  items  in  the  end  that  we  think  would  be  easier  and  could  get  more  respond  from  the  customers.      

   

Products    Item  01  |  the  muffins  would  be  our  main  item  sponsored  by  Bake  &  Brew  café  from  Penang.  A   total   of   129   muffins   were   sponsored,   consisting   different   flavours   such   as   red   velvet,  chocolate  chips,  green  tea,  blueberry,  molten  chocolate  and  poppy  seed.  We  think  that  the    

muffin  would  get  a  huge  respond  as  who  doesn’t  like  something  sweet  and  easy  to  grab  on  the  go?  And  indeed  it  turned  out  to  be  a  popular  item  at  our  stall.  It  received  a  pretty  good  respond  from  the  customers,  each  praising  the  flavour  and  the  sweetness  that  is  perfect  to  the  point.          Packaging   |   As   for   the   packaging   of   the   muffins,   they   were   individually   packed.   The  packaging  would  attract  customers  as  it  was  being  placed  in  a  transparent  small  packaging  

bag,  which  shows   those  yummy   looking  muffins.  The  muffins   fit   the  bags  perfectly,  which  give  an  illusion  that  the  sizes  are  quite  huge.  It  also  looks  clean  and  decent  from  our  stall.      Item  02  |  the  chicken  floss  tarts  is  our  second  item.  One  of  our  group  mates,  Simpson  Chin  purchase  stocks  from  his  aunty  with  the  original  price.  It  is  basically  a  tart  with  chicken  floss  fillings.  We  think  that  customers  would  like  it  because  they  are  quite  special;  very  few  people  had  tried  it  before.  It  also  has  a  unique  look.  It  would  definitely  spark  up  passer-­‐by’s  interest.    

 

Packaging  |  There  were  also  two  kinds  of  packaging  for  the  tarts.  For  those  that  are  going  to  be  sold  separately,  we  packed  4  tarts  in  a  bag.  It  was  packed  in  a  transparent  packaging  bag  like  how  the  muffins  were  packed.  As  for  the  second  packaging,  the  tarts  were  packed  in  a  bottle.  The  bottled  packaging’s  are  for  customers  whom  are  interested  to  buy  the  tarts  in  a  huge   and   cheaper   amount.     The   packaging   would   attract   customers   because   they   were  transparent   and   showcased   the   unique   and   appealing   appearance   of   the   tarts.   Potential  customers  would  be  curious  about  it  and  have  a  look  when  they  are  passing  by  our  stall.  

   

 

 

 

 

Item  03  |  the  third  item,  homemade  puddings  sponsored  by  our  fellow  group  mate,  Jason  Nge.  The  puddings  are  longan  flavoured,  with  canned  longan  flesh  in  each  one  of  them.  We  think  that  customers  would  like  it,  as  it  was  chilled  and  lightly  packed,  absolutely  suitable  on  warm  weathered  days.  It  received  quite  a  lot  of  good  feedbacks  and  were  quite  popular  as  it  was  served  chilled  which  cooled  down  people’s  thirst.    

 Packaging  |   the  puddings  were  packed   in  a   really   simple  packaging  with  no  ornaments   to  bring   out   that   homemade   character.   The   packaging  was   a   transparent   small   container   so  that  customers  could  see  what  it  contains.  Although  it  is  not  fancy  looking  but  it  promoted  a  more  organic  look.      

 

 

YOUTUBE  VIDEO  LINK:  

 http://youtu.be/KR4hWBNGygY

 https://www.youtube.com/watch?v=mtTKj12rXUU

 

 

 

 

 

F.  Pricing  

As  for  the  pricing  of  our  items,    

   Pudding   Muffin   Chicken  Floss  Cookies   Chocolate  Chip  Cookies  

S.  Price   RM3.50   RM4.00   RM6.00   RM6.00  Units   142   180   295   55  

Rev   RM497.00   RM720.00   RM1,770.00   RM330.00  

         

         

 Pudding   Muffin   Chicken  Floss  Cookies  

Chocolate  Chip  Cookies  

C.  Price   RM0.25   RM2.90   RM4.75   RM1.80  

Units   142   180   295   55  

Rev   RM35.50   RM522.00   RM1,401.25   RM99.00    

Our  products  are  quite  popular,  as  the  muffins  are  delicious  and  worthy  of  its  price;  the  tarts  are  unique  and   fresh   to   the   customers   as   they   rarely   see   anything   like   it   before;   and   the  puddings  are  chilly  and  yummy;  which  allowed  us  to  set  the  pricing  higher  than  the  unit  cost  price.  We  set  our  pricing   for  all  of   the  products   fairly  and   in  an  acceptable   range,   so   that  customers  would  not  feel  being  cheated  on.  

We   also   came   out  with   some   strategies   in   advance   in   case  we   have   difficulty   selling   our  products.  

• Sell   our   products   outside   of   campus   to   working   adults   whom   have   the   spending  ability  to  buy  them  

• Walk  around  campus  or  offices  and  approach  potential  customers  instead  of  sitting  around  the  stall.  

G.  Promotion  

a)  Change  for  change.  By  sparing  your  change  into  the  donation  box,  you  can  change  somebody  else’s  life.    

b)  Our  2  main  tools  for  promoting  our  products  are  giving  free  samples  of  our  products,  and  also  face-­‐to-­‐face  conversation.  Firstly,  we  gave  free  samples  of  both  our  cookies  by  crushing  them  into  smaller  pieces  and  leave  it  there  on  the  table  for  the  customers  to  try.  This  approach  showed  us  decent  results  as  most  of  the  customers  who  tried  the  samples  bought  our  products.  However,  we  do  have  some  other  customers  who  just  tried  free  cookies  and  walked  away.    

Secondly,  we  did  face  to  face  conversations.  This  approach  showed  us  great  results  as  most  of  the  customers  do  not  know  what  products  we  were  selling.  By  conversing  with  the  lecturers,  the  students  and  some  of  our  friends,  they  got  to  know  what  we  were  actually  selling  and  adding  on  by  letting  them  try  our  samples,  they  bought  our  products  almost  instantaneously.    

Other  than  these  two,  we  did  posters  as  well.  However,  it  was  not  as  effective  as  not  really  a  lot  of  people  were  paying  attention  to  the  boards  behind  us.    

c)  We  have  chosen  the  two  main  strategies  because  we  thought  that  it  would  be  easier  if  we  just  communicate  with  our  customers  instead  of  letting  them  discover  us  by  themselves.  We  have  to  be  bold  and  not  be  afraid  of  rejection  in  order  for  the  two  strategies  to  work.  By  approaching  them  and  conversing  with  them,  it  made  them  feel  that  we  are  very  sincere  in  selling  our  products.  Then,  by  letting  the  customers  try  our  products,  it  helped  assuring  the  quality  of  our  product,  and  hence  customers  are  more  willing  to  spend  on  our  products.    

 

H.  Sponsors  

a)  For  sponsorship  wise,  we  approached  our  relatives  first,  and  then  we  tried  to  find  sponsorship  from  several  big  corporate  like  for  example  The  Great  Eastern  and  Permasteelisa.    

b)  Our  relatives  were  very  enthusiastic  in  donating  some  amount  of  money.  We  targeted  them  because  we  know  them  personally  and  the  chances  of  them  donating  are  higher  than  other  business  groups.  Then,  we  targeted  the  2  big  corporate  because  some  of  our  relatives  are  working  inside  and  so  we  tried  our  luck.    

c)  Jason’s  mother  sponsored  all  the  puddings;  also  his  relatives  sponsored  a  total  of  RM650.  Yincy’s  mother  sponsored  a  total  of  RM100  for  the  decorations  and  another  RM300  for  the  tarts.  Then,  Schani  and  his  mother  sponsored  the  chocolate  chip  cookies  and  also  another  RM300  for  the  tarts.    Simpson’s  uncle  sponsored  RM300  for  the  tarts.  And  lastly,  Sze  Ming’s  father  sponsored  all  the  muffins  that  we  sold,  including  the  transportation  fees.  All  monetary  sponsorships  were  done  in  the  form  of  cash.    

d)  We  have  to  send  our  official  sponsorship  letter  with  the  Taylor’s  letterhead  to  the  two  corporate.  They  agreed  to  sponsor  quite  a  large  sum  of  money  for  our  group,  however  the  whole  process  would  take  about  3  to  4  months  time,  and  we  do  have  the  privilege  of  time.    Unfortunately,  we  have  to  abort  both  sponsorships.  Then,  for  our  relatives  wise,  some  of  us  talk  to  them  through  phone  calls,  and  some  of  us  asked  for  sponsorship  in  face-­‐to-­‐face  conversation.  

K.  Human  Resource  Planning  

For  our  group,  Jason  was  voted  the  project  manager,  Schani  was  the  accountant,  Yincy  was  in-­‐charge  of  the  advertising,  Simpson  and  Sze  Ming  were  given  the  roles  of  Sales  and  Marketing  supervisors  respectively.  However,  all  of  us  helped  in  promoting  and  selling  our  products.  Jason  did  a  good  job  of  organising  us  as  a  team,  by  teaching  us  what  to  do  so  that  we  can  sell  off  our  products  quickly.  Also,  with  the  tips  given  by  Mr.Jo,  our  sales  increased  in  a  faster  rate.  We  distributed  our  jobs  equally,  so  when  for  example  Simpson  and  Schani  were  selling  the  products  in  the  office,  the  other  3  will  be  looking  after  the  booth  and  vice  versa.    

 

I.  Distribution  

a)  We  used  a  vehicle  (car)  that  was  possessed  by  one  of  the  group  mates  to  drive  from  the  suppliers  around  Klang  Valley  and  to  transport  it  back  to  campus.  This  was  highly  efficient  and  productive.  There  was  no  lag  time  and  we  always  opened  out  stall  in  advance.  

b)  During  instance  of  bulk  selling,  we  encountered  customers  that  dwell  in  KL,  and  then  we  had  to  transport  the  mass  order  of  chicken  floss  there.  We  did  this  on  time  and  in  sync  with  our  stall  opening  and  closing  timing.  Furthermore  we  took  turns  doing  different  tasks  at  the  booth  this  made  do  the  diverse  tasks  easier.  

c)  An  average  number  of  customers  were  actually  approached  and  during  peak  hours,  all  members  were  at  the  booth  to  deal  with  the  large  number  of  people.  However  during  less  stressful  hours,  we  were  able  to  walk  around  to  the  staff  rooms,  lecture  halls  as  well  as  the  commercial  block  to  sell  ours  products.  

d)  A  method  used  by  our  booth,  was  through  promotion  using  close  friends,  as  well  the  social  media  such  as  whatsapp,  this  was  our  means  of  communication  with  any  of  the  customers  that  wished  to  order  from  us  or  inquire  about  when  our  booth  would  be  open  next,  etc.  

 

 

 

J.  Green  measures  

The  products  that  we  had  chosen  as  following:    

A) Longan  Pudding:  We  totally  made  it  by  our  own  so  it  considers  as  an  environmentally  product  so  it  didn’t  gives  any  effects  to  our  environment.    

B) Chocolate  chip  cookies:  The  ingredients  that  we  bought  in  making  the  cookies  were  Hershey  chocolate  chip  that  made  by  their  own  specific  factories.  So  it  considers  as  un-­‐environmentally  product  so  we  reuse  and  recycle  the  empty  bottles  to  reduce  its  hazardous  effects.  

C)  Muffin:  Muffin  was  the  main  product  that  we  sold  for  the  charity  drive  that  sponsored  by  the  Bake  and  Brew  Cafe.  As  it  made  by  machines  that  release  smokes  to  the  environment  so  it  considers  as  un-­‐environmentally  product.  We  had  recycle  the  packaging  box  for  the  environmentally  purpose.    

D) Chicken  Floss  Tart:  Is  homemade  by  Simpson’s  aunt  so  it  consider  as  an  environmentally  product  

B)  Packaging:  

A) Longan  Pudding:  The  packaging  of  the  Longan  Pudding  was  made  by  the  plastic,  which  can  be  reused  and  recycled.  

B) Chocolate  chip  cookies:  The  packaging  of  the  chocolate  chip  cookies  was  the  plastic,  which  can  be  reused  and  recycled.    

C) Muffin:  The  packaging  of  the  muffin  was  made  by  the  plastic,  which  can  be  reused  or  recycled.    

D) Chicken  Floss  tart:  The  packaging  of  the  tart  is  also  made  by  plastic  so  is  also  consider  reusable.  

C)  Carbon  footprint    

• Use  ice  box  instead  of  refrigerator  to  save  electricity    • Reuse  the  plastic  cups  and  spoons  

D)  Product’s  waste    

We  had  collected  mostly  of  the  products’  waste  after  finished  by  the  customers  in  a  big  plastic  bag.  The  products’  waste  that  we  had  collected  included  plastic  cups,  and  plastic  spoons.  After  that,  we  threw  the  entire  product’s  waste  into  the  recycle  bin  in  Taylor’s  University  to  be  recycled.  

 

E)  Reduce  the  consumption  of  resource  

Other  than  that,  our  group  is  pretty  much  environmentally  friendly.  We  take  this  chance  to  reduce  the  consumption  of  resources  like  paper,  water  and  electricity  as  we  used  recycle  paper  for  the  decorations  and  etc.,  and  we  kept  the  water  in  our  icebox  clean  so  we  don’t  have  to  change  it  many  times.  

         Income  Statement  of  Group  8  (Jason)  Charity  Drive  Event  

                   Revenue  

       Sales        

RM3,317.00  Less:  Cost  of  Goods  Sold  

   RM2,057.75  

Gross  Profit        

RM1,259.25  Add:  Donations  &  Sponsorship  

   RM1,971.00  

Adjusted  Gross  Profit      

RM3,230.25  

         

Less:  Operating  Expenses        Promotional  Expenses     RM68.25  

   Stationary  Expenses   RM20.00      Typhoid  Vaccine  Injection   RM300.00      

         Total  Operating  Expenses      

RM388.25  

         Net  Profit        

RM2,842.00    

 

   Pudding   Muffin   Chicken  Floss  Cookies   Chocolate  Chip  Cookies  

S.  Price   RM3.50   RM4.00   RM6.00   RM6.00  Units   142   180   295   55  

Rev   RM497.00   RM720.00   RM1,770.00   RM330.00  

         

         

 Pudding   Muffin   Chicken  Floss  Cookies  

Chocolate  Chip  Cookies  

C.  Price   RM0.25   RM2.90   RM4.75   RM1.80  

Units   142   180   295   55  

Rev   RM35.50   RM522.00   RM1,401.25   RM99.00    

 

 

 

Sponsorship  Letter  

 

REFLECTION  VIDEO:  http://youtu.be/jZlBuByiHe4

https://www.youtube.com/watch?v=Z2XJvTHODoY

TEMPORARY RECEIPT FROM WORLD VISION