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)

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

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

- 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,

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.

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

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.

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

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

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

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

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

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.

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.

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!

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)

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

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.

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

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

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.

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.

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