Name of Module: Principles of Economics (FNBE0315)

Report Title: ‘The Nutty Bun’ Charity Drive Report

Group Members: Haziq Zariful (0314131)

: Garnette Dayang Robert (0315491)

: Kawthar Rashid Jeewa (0314832)

: Ayuni Nordin

: Kishant Kumar

Charity Drive Report 1

Table of Content

Content Page

Cover page 1

Table of Content 2

Executive Summary 3

Objectives 3

Target Market 3-4

Competition Analsysis 4

Product & Packaging 5-6

Pricing 6-7

Promotion 7-9

Sponsors 9

Distribution 9-10

Green Measures 10

Human Resource Planning 11

Evaluations of Results 12

Appendices 13

References 14

Executive Summary

2 Charity Drive Report

The Business studies group consisting of Haziq Zariful, Garnette

Robert, Kawthar Jeewa, Ayuni Nordin & Kishant Kumar aims to achieve

a target amount of RM2000 to be given to the charity organization that

is Trinity Home for children. The group sells Arizona drinks; jam tarts &

bracelets, carefully placing the right pricing & promotion in order to

achieve this goal. Even promoting using blogs & flyers to create

awareness of the charity team. They must also plan well as a business

team to properly organize information & improvements during the

event. In the end, the group achieved a net profit of RM2010 &

donated them.

Objectives

a) Our charity organization is the ‘Trinity Children Centre Home’; a

sanctuary for orphaned, abandoned, battered, abused and neglected

children (Tccpj.com.my, n.d.). The reason we chose this organization is

because they help kids who have been through hardships & open

opportunities for these kids, guiding their way to a brighter future.

b) Our target sales would be RM2716, which would make a RM1079

profit after subtracting the Cost of goods sold of RM1637. The target

sponsorship was more than RM1000 so that we can reach the

overall/total target cash money of RM2000. Before the event, we did

not have a target donation amount, until we realized there were

unsuccessful products, so to play it safe, we started asking for

donations & placed a target of more than RM200.

Target Market

a) Our customers are mostly students & lecturers from Taylor’s

University. Most of them are from Architect Degree course since

their course does not take a break in February unlike other

degree programs. There were also foundation course students,

from the most recent intake of January 2014, other than that;

Charity Drive Report 3

there were also a lot of Foundation in communication students

who were our customers.

b) Most of the students were opted to buy the Arizona drinks &

bracelets while most of the lecturers were opted to buy the jam

tarts

c) Most of them didn’t mind spending for their wants as the low

price of the products would probably not affect their income.

Competition Analysis

a) Our two main competitors would be Lee Joyee’s group, consisting

of Shirley Liew, Hui Sim and Ker Neng Peh & Phua Jing Sern’s

group, consisting of Daniesh Ashik, Eugene Peng & Wilson.

b) Joyee’s group sells phone cases & provides Henna services while

Jing Sern’s group sells popsicles & a variety of buscuits.

c) The strength of Joyee’s group is their Henna services, which is

popular in Malaysia & Taylor’s University; hence there would be a

lot of customers. Their vulnerability however is that there is only

1 henna paste syringe, hence, a large number of customers

would have to wait for their turn. Also, they oversupplied their

phone cases, causes their profit to not be maximized.

The strength of Jing Sern’s group is their marketing, they have

different types of large posters while the group members interact

with customers more easily & well. The products they sell are

also substitute goods for our products; the popsicles can be

substituted from our refreshments, while their biscuits can be

substituted from our jam tarts. Their vulnerability is how they

have few products & were sold at a low price, which would mean

they have a lower profit.

d) The customers would pay for the Henna services as they are

popular in Malaysia & Taylor’s University as body art while the

group also made a professional performance when doing so.

4 Charity Drive Report

Customers would buy from Jng Sern’s group because of the way

they interact with customers, persuading them to buy their

products.

Charity Drive Report 5

Products & Packaging

Products

a) The charity group is selling 3 products: Arizona drinks, Jam tarts

& bracelets.

Arizona drinks – Iced tea drinks imported from America made by

beverage company ‘Arizona’, ranging different types of flavors

such as green tea with red apple, cranberry tea & iced peach

tea.

Jam Tarts – Homemade, pineapple-flavored jam tarts with 20

numbers inside a container

Bracelets – Homemade Sarawak bracelets made by group

leader, Garnette’s, grandmother with 2 different types for either

male or female.

b) The customers would like the Arizona drinks due to the taller

height of the cans, which provides more of the drink compared to

a canned drink from a vending machine. Moreover, the iced tea

is cooled which, in many flavors, can quench the thirst of the

students/lecturers who have been working all day.

The jam tarts provide an addictive taste along with the

sweetness of the pineapple jam placed on top. They offer a light

on-the-go snack for the busy customers.

The bracelets that were sold have different varieties in color &

shapes, often catching the eyes of passersby and eventual

customers who yearn for a colorful accessory.

Packaging

a) The Arizona drinks were canned in different colors depending on

the flavor; the jam tarts were placed in small containers upon

purchase from supplier whereas the bracelets were placed in

baskets (only after the 2nd day of the event)

6 Charity Drive Report

b) The Arizona drinks have definitely attracted customers due to

the tall stature of the cans & also their eye-catching colors that

varies depending on flavors.

The packaging for the jam tarts however weren’t attractive for

the customers because of its unprofessional look that is of a

transparent container, showing how it’s homemade.

The bracelets, on the other hand, which were placed in baskets,

were organized so that it shows the striking colors to attract

customers.

Pricing

a) The Arizona drinks, in all honesty, were sold at

RM9, not at the required minimum of twice the

cost price in fear of a low quantity demand

from customers. The bracelets were sold at

RM8 for the female bracelets while the male

bracelets were RM5. The jam tarts were sold at a price of RM12.

b) The Arizona drinks were bought at RM5.50 per unit, the jam tarts

were bought at RM8 per container containing 20 jam tarts,

whereas the bracelet were bought at RM3 for the ones sold at

RM5 while it is RM6 for the ones sold at RM8.

c) The Arizona drinks & bracelets were definitely eye-catching due

to their colors & variation. The Arizona drinks were our most

popular product; hence, the price was increased by RM1 after the

2nd day of the event.

Charity Drive Report 7

d) The difficult products to sell were the jam tarts bracelets. The

bracelets had a promotion of ‘2 for RM14/9’ for the ones sold at

RM8/5 respectively. Anticipating the difficulty in selling, the jam

tarts were given a same promotion, a ‘2 for RM20’, which is a

RM4 decrease. However, this promotion was ineffective, hence

we tried giving samples (packed by the supplier) whenever

people gave donations or when asked. Nevertheless, it still

couldn’t promote the product well & thus we went on with a

promotion of ‘buy 2 jam tarts, get Arizona drinks for half price’.

Promotion

a) Our main marketing message is, ‘Your change can make their

change’. ‘Their’ refers to the charity organization we are helping,

which is a Christian home for homeless children. The message

shows how the people’s money, even as small change, can make

an impact to the children.

b) Our main promoting tools are Blog

(http://kawtharjeewa.wix.com/arizoners) & flyers.

c) The reason we use ‘2 for RM__’ strategies for both the bracelets

& jam tarts is so that we can remove the large stock while

maximizing profit. While the price is reduced, it is still higher

than the cost price (eg. 2 bracelets for RM14, each bracelet in

the promotion is sold at RM7, which is still RM2 higher than the

cost price).

The reason we gave samples for the jam tarts is so that

customers can taste the jam tarts and buy more later or spread

their sensation to friends.

We used ‘buy 2 jam tarts, get Arizona drinks for half price’

strategies because we can tactically use the popularity of the

drinks in order to sell more of the jam tarts. It is also a

combination that offers customers a meal of snacks & a drink.

8 Charity Drive Report

We used Wix.com (a blog site) as a promotion tool because of

the way it organizes our information well while the flyers

conveniently help customers understand our products &

information before deciding on what to buy.

Charity Drive Report 9

Sponsorship

a) All sponsors we’ve approached are individuals who isn’t

sponsoring by representing a company & there were 5 sponsors

in total

b) All sponsors personally know a different group member each,

while two of the sponsors also supply two different products that

we sell.

c) The sponsors gave cash money in a total amount of RM1410,

while the suppliers sponsored 20 bracelets & 100 containers of

jam tarts, offering with a lower price.

d) We approached the sponsors via messaging while the suppliers

also had a face-to-face meeting with one of our group members

per supplier.

Distribution

10 Charity Drive Report

a) The products that we sold were prepared in advanced for a

week’s stock (by our prediction). At the start of the event, Ayuni

transported the Arizona drinks while Kishant transported the jam

tarts, both by separate cars. Both of them were also brought with

boxes in order to carry them to the booth more easily. The

bracelets were brought by Garnette, in a plastic seal bag from

Sarawak when she went back for Chinese New Year.

During the event, to make it more convenient, Haziq & Garnette

kept the products since they lived in the student residence &

would bring them back to the booth the next day.

b) The products were ready by early morning so customers didn’t

have to wait to get the products that they bought.

c) The customers cannot order the products online or via phone.

Green Measures

a) The Arizona drinks are made of recyclable tin cans but can only

be recycled if thrown into a recycling bin, so we encourage

customers to do so after they bought them.

b) The jam tarts are placed inside a reusable plastic container

whereas the boxes used to transport both the jam tarts & drinks

to the booth were old boxes reused & is still stored for future

reuses.

c) The products were distributed early on in an anticipated week’s

stock so that we wouldn’t have to drive to get more during the

event. Also, they are dividedly stored in Haziq’s & Garnette’s

rooms in the student residence so they wouldn’t have to be

transported by car.

d) The Arizona drinks would be thrown to recycle bins while the

container for the jam tarts would either be thrown as garbage or

reused.

Charity Drive Report 11

e) Instead of using a small refrigerator, we placed the drinks inside

a cooler with ice inside, however, water would be wasted when

the ice melts, that is why we limit the packs of ice used to 4 per

day.

12 Charity Drive Report

Human Resource Planning

What they do during the event:

Project Manager – Plan strategies and tactics to sell products &

maximize profit. Decides changes of price, supply, promotion,

etc.

Sales Executive – Evaluate financial position of the group. Sells

product by guiding customers & interacting with them. Identify

product improvements. Collect, Analyze & Summarize

Information.

Accountant – Handles the receipts & documents number of

products sold, profit, price changes, etc.

Advertising Executive – Create posters, distribute flyers &

products to people outside the charity drive area to promote our

booth.

Charity Drive Report 13

Project Manager

Garnette Robert

AccountantAyuni Nordin

Deputy Accountant

Garnette Robert

Marketing/Advertising

Kawthar & Kishant

Sales Executive

Haziq Zariful & Kawthar

14 Charity Drive Report

Evaluation of Results

a) Profit & Loss Statement For 'The Nutty Bun'

For the week 10th Feb to 16th Feb 2014Revenues RM RM RMSales: Arizona drinks (RM9) 1386: Jam Tarts (RM12) 372: Male Bracelets (RM5) 40: Female Bracelets (RM8) 72NET SALES 1870

Cost of Goods SoldCost of goods sold: Arizona drinks (RM5.50) 847: Jam Tarts (RM8) 720: Male Bracelets (RM3) 24: Female Bracelets (RM6) 46 1637

Gross Profit 233Add: Donations 397Add: Sponsorship Revenue 1410Adjusted Gross Profit 2040

Operating ExpensesDiscount Expenses 30

NET PROFIT 2010

b) What we did right is how we promote unsuccessful products, which

proved effective, also using the popularity of successful products to sell

more of the unsuccessful ones. We adapted to changes & identified

product improvements. The promotions also didn’t affect a large expense,

at RM30 only.

Our flaws however was that we predicted a wrong number of stock we

might sell, causing a large decrease in profit. A large difference was the

jam tarts, which made a loss of RM348, as we supplied 90 & only 31 were

sold. Other than that, we made a low profit also because we didn’t sell our

products twice their cost price.

c) If we repeated the event, we would do so differently, such as selling

various unique products, also supplying them only when we needed

to, not early on before the event.

Charity Drive Report 15

Appendix

16 Charity Drive Report

Donation Receipt from Charity organization

Sponsorship receipt

Arizona Drinks Receipt (1)

Arizona Drinks Receipt (2)

Bracelet Receipt from sponsorship

Jam Tarts receipt

References

[1] Hiring.monster.com. n.d. Project Manager Job Description Sample | Monster.com. [Online] Available at: http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/project-manager-job-description-sample.aspx [Accessed: 10 Feb 2014].

[2] Hiring.monster.com. n.d. Sales Executive Job Description Sample | Monster.com. [Online] Available at: http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/sales-executive-job-description-sample.aspx [Accessed: 10 Feb 2014].

[3] Socialmediatoday.com. n.d. Charitable Marketing Strategies | Social Media Today. [Online] Available at: http://socialmediatoday.com/smatista/1814396/charitable-marketing-strategies-8-ideas-small-businesses [Accessed: 10 Feb 2014].

[4] Tccpj.com.my. n.d. Trinity Community Centre Petaling Jaya. [online] Available at: http://www.tccpj.com.my/index.cfm?menuid=7&parentid=35 [Accessed: 21 Feb 2014].

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