More Related Content Similar to Business - Charity (13) Business - Charity1. School of Architecture, Building and Design (SABD)
Foundation in Natural and Built Environment (FNBE)
Introduction To Business [BUS 30104]
FINAL PROJECT: CHARITY DRIVE EVENT
Lecturer: Mr Chang Jau Ho
TEAM K.O. KULTURE
Group Leader
Chin Khang Wei (0320728)
Group Accountant
Terence Tan Peng Ong (0320275)
Group Members
Daniel Song Cheng Hock (0320155) Salesman of the Week
Tan Ming Howe (0320199)
Seet Tiong Hong (0320438)
Video Link : http://youtu.be/U83eZXjtMg
3. 1. Executive Summary
Our final assignment for the “Introduction to Business” subject was a Charity Drive Event which
was held for one week, in the month of June. In a group of 5 members, we had the opportunity
to run a mock business venture and thereby gain the relevant practical experience. The purpose
of this assignment was to let us apply the theories we learnt in the classroom practically.
All of our profit was to be given to the “Dignity for Children” foundation. It is a foundation aiming
to bring quality education to underprivileged children. Dignity provides them the education from
kindergarten to high school levels. Our team was in agreement that education is the key to
breaking the cycle of poverty. We surmised that education gives these children the chance to
contribute back to society in future.
After our group discussion, we wanted to challenge ourselves to open a food and beverage
venture.In order to achieve our targeted amount of profit, we decided to sell a variety of goods
to customers. We intended to sell fried chicken, coconut beverages, waffle and badges in our
initial business plan. By doing this, we could offer a variety to our customers.
Our team sourced our marinated chicken from Arisan. We were fortunate to have KHIND lend
us two air fryers for the duration of the operation of our business. We collaborate with a waffle
stall in Arena to perform a consignment of waffles. As for the coconut beverages, we managed
to enlist help from a coconut hawker from PJS 7, who sold stock to us with a discounted price.
As for the badges, we contacted “Orange Box Studios” to allow us to use their designs. To
make our badges more interesting, we came up with customdesign badges for our customers.
For a period of a week, our team set up a booth in front the Student Life Centre in Taylor’s
Lakeside Campus to raise funds by operating our business. This area has the highest
concentration of human traffic everyday especially during peak hours. We invented many
strategies with the aim of attracting customers, ranging from Facebook marketing to personal
marketing.
However, our business did not perform well on the first two days when the main product was
fried chicken. The inventory was not selling of quickly enough, in order for the target profit to be
achieved. We quickly adjusted our business plan to adapt to the situation by replacing fried
chicken with brownies. It was a wise decision by our team because the brownies is performed
exceptionally well. We planned to sell more brownies in order to cover up the lacking profit
margins from the first two days.
Therefore, our team manage to raise a total of RM 2524.20 for “Dignity for Children
Foundation”.
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4. 2. Objectives
● To raise a minimum of RM 2500, to donate the amount to Dignity for Children.
● Selling fried chicken, brownies, coconut beverages, waffles and badges.
● Create awareness of Dignity for Children.
● To operate a successful business in a team effectively and systematically.
● To apply the theories of human resource management, marketing, production and
finance in real life.
Our team chose Dignity for Children and donated all of our profit to them as we wished to
support the cause of enabling the underprivileged to receive an education. We believe that
education is the key to break the cycle of poverty. Besides that, Dignity also needed awareness
about their centre among Taylorians. We went to visit their centre and found the condition of the
center to be in want, as they needed funding for their management and for the childrens’ meals.
Video Link : http://youtu.be/U83eZXjtMg
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3. Target Market
3.1 Customers Background
For the charity drive, we mainly focused on the students of Taylor’s University Lakeside
Campus as our customers. This is because students spend the most time in Taylor’s
University Lakeside Campus. Most of the students have their lunch or dinner on
campus, so we focused on students as our main customers. These customers come
from diverse financial backgrounds, but mostly, come from middleupper class
backgrounds. However, seeing that most do not earn their own income, they are less
willing to spend more than RM 10 in one sitting.
Besides that, we also targeted lecturers and visitors as our customers. The lecturers
and visitors are usually people who earn a respectable income, and are willing to spend
up to RM 35 in one sitting. Our booth was located in front of the Student Life Center,
near the bus stop. A lot of people such as lecturers, visitors and students pass by our
booth on the way to their destinations. Since our products by majority was food, our
target is also to let customers enjoy our food, paying extra attention to chocolate lovers.
We usually started to sell our products during the lunch hours.
3.2 Customers’ Wants and Needs, and Spending Power
1. Chicken Kebab
Most of people like to eat chicken, especially fried chicken. Our air fried chicken was
marinated with unique ingredient and was accompanied by a special sauce. Our K.O
package also consists of 2 sticks of chicken kebab and a cup of coconut milk, which
only costs RM 9.50. Our chicken kebab contains vegetables such as cucumbers and
carrots so this definitely would be a healthy meal for our customers.
(Each Chicken Kebab = RM 4 ) (Two sticks = RM 7.50)
2. Coconut Juice
After having our K.O. chicken kebab, our customers definitely would delight in a drink to
refresh themselves. Coconut milk is the best choice for customers to replenish
themselves. For the charity drive, the price of the coconut milk was actually reasonable
for the customers compared to the RM 8 Orange juice in our campus.
(Each cup of Coconut Juice = RM 3 )
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7.
4. Competition Analysis
After careful consideration of all the potential competitors, we decided that of all, “Uncle
Qayyum’s” and “Yologurt_TNSC’s” establishments were our strongest competitors. This
was decided considering various key factors, such as the types of products sold and
their possible impact on K.O. Kulture’s performance, the popularity of these products,
and the brand awareness each of these establishments held.
The brunt of the competitive analysis can be found in this table below:
Comparative
Information
Uncle Qayyum Yologurt_TNSC
Main Products
Specialty Beverages. (Teh Botol,
Fruit Tea)
Cheese Nachos.
Brownies.
Various local desserts & snacks.
(Kuih)
Varieties of yoghurt based desserts.
Specialty sandwiches. (appleegg,
etc.)
Muah Chee.
Herbal Eggs.
Barley drinks.
Strengths
Preexisting customer base, due to
popularity of stall operators.
Peripheral attractions, such as live
bands, and performances.
Easily consumable products. (On
the go friendly)
No preparation/packaging of foods
required
Low cost of goods sold
Good Brand Awareness.
Popular, unique product.
Substantial support from donors.
Product variety, which caters to
multiple needs, i.e., snack time, lunch,
dessert, etc.
Attractive stall decor.
Engaged in precharity drive sales
Low cost of goods sold
Weaknesses
Lack of mobile sales units.
Late arrival, i.e., 12p.m. Loses out
on breakfast crowd.
Products are mostly snack based.
Weak promotional & marketing
strategy.
Lacking in mobile sales units.
Lacking in marketing strategy.
Lacking in reach beyond the physical
stall.
Time consuming preparation of goods
to be sold
Popular
Products
Brownies
Nachos
Teh Botol
Yoghurt desserts
Herbal Eggs
Contributing
Factors to
Customer
Motivation
The products offered are easy to
consume on the go
Booth popularity draws a lot of
customers to their booth
Competitive pricing due to low
C.O.G.S.
Attractive product packaging
Products offered are unique, and
cannot be found elsewhere
Products offered are suitable for
consumption anytime, even for lunch.
Competitive pricing due to low
C.O.G.S.
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9. (C). Coconut Juice
Cool refreshing coconut juice is exactly what the throat needs on a hot humid day, brought in
directly from a supplier from PJS 7. We would then extract the coconut water into tupperwares
and then kept into a cooler box with ice to keep cool and ease of packaging.
Upon customers request coconut water will be poured into paper cups from the tupperwares
and given to customers.
(D). Badges
We collaborated with orange box studios, a small team of designers from Taylor’s University
and actually borrowed a badge making machine with this machine we could practically create
any badge we wanted to, these were some of the designs we sold.
Badges didn’t need any packaging because people would just pin them up and go.
(E). Waffles
We also collaborated with a store in arena that sold waffles, we would buy the waffles from them
and sell them at a higher price. We stored the waffle in paper bags. Upon request from
customer we would take out the waffles and put them into the small toaster oven to ensure it
was crispy, we would also add flavours such as blueberry, peanut butter and raspberry.
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10. 6. Pricing
The pricing strategy for most of our products was targeted at getting the most profit out of
each unit sold, while maintaining reasonability in relation to the prices of similar products in
other stalls. Below is a breakdown of our product selling prices, followed by a breakdown of
the cost of the products sold. All figures are as accurate as possible, but may not reveal
exact prices, considering discounts, bulk orders, and price hikes.
Product Selling Price
(RM Per Unit)
Cost of
Goods Sold
(RM Per Unit)
Profit Earned
(RM Per Unit)
Estimated Unit
Sales
(units per day)
Product
Contribution
(RM per day)
Chicken
Kebabs
(per stick)
3.504* (~2x
Cost Price)
2 2 <120 <240
Coconut
Beverages
(per cup)
3 (3x Cost
Price)
1 2 <90 <180
Button
Badges
(Per Badge)
3 (3x Cost
Price)
1 2 <90 <180
Brownies 3.504* (~6.2x
Cost Price)
0.60 3.40 <125 <425
Waffles 3 (1.3x Cost
Price)
2.30 0.70 <50 <35
French Toast 1.50 (10x Cost
Price
~.015 1.35 <25 <33.75
*The first figure refers to the selling price of product if two or more orders are initiated. The second figure is for normal
orders of single units.
6.1 Product Popularity & Sales Strategies
The pricing was determined using estimates aimed at expected targets of at least RM
3000, in order to provide us a safe buffer from the original RM 2500 target. The buffer
provided would allow for any unforeseen circumstances, such as spoilt stock, sales
returns, or discounts/lowered prices.
In the original business plan, we only intended for the sales of the chicken kebabs,
coconut beverages, and the button badges. However, after the lack of contribution
showed by the actual performance of the chicken kebabs during the first two days, we
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11. were forced to switch our main product from chicken to brownies. The pricing for the
brownies were determined based on estimated profits we needed to achieve in three
days of sales in order for us to hit the RM 2500 target.
6.1a Brownies
The brownies turned out to be a roaring success, selling out on average, after 4 hours
of sales. It also, happens to be the product with the largest contribution per day. They
were popular among our customer base, as it served as a convenient, easily
consumable snack. Product sampling had a 100% success rate of drawing purchases
from customers. Besides that, its popularity was proven by the fact that many customers
often returned day upon day, with positive comments. This is credited to the preparation
and recipe of the brownie. Due to the low cost of each brownie and its popularity among
customers, we stood to gain even more profit from each unit sold, simply by hiking up
prices from the originally intended RM 3.50 per piece to RM 4 per piece, without
causing detriment to sales, seeing that it was a popular product among our customer
base. This, also considering that such products found outside, cost significantly more.
However, seeing that customers often respond to incentives, we adjusted pricing for
bulk orders, or even multiple orders. For example, to hasten the inventory turnover, by
encouraging customers to purchase more, we gave customers discounted prices for
purchases of two or more units for specific products. , e.g., 1 brownie for RM 4, 2
brownies for RM 7. Using the adjusted selling prices, it was still determined that we
would be able to achieve a safe profit margin, hence it was determined that such
strategies would not harm the business.
6.1b Contingencies
For other products, we also offered package deals for customers who bought several
different complementary products at once. These incentives benefited all involved, as
customers gained more value for money, at decreased opportunity cost, and we
maintained similar profit margins, while turning over stock that would not have been
turned over otherwise. An example of this in practice was when we sold a package of
two chicken kebabs, and one coconut beverage for a compounded price of RM 9.50,
which is RM 1.50 less than if they had purchased these items separately.
In the case of poor performance, the contingency was to sell any leftover products at
locations outside of campus, such as Sunway Pyramid Mall, Inti, KDU, and even at
coinciding charity events. Selling leftover inventory to family members was also an
option. However, all this needed not to be done, as we accomplished our goals selling
within the span of one week in Taylor’s University.
Less dire situations would have called for less extreme countermeasures, such as
sales of poorly performing products at even cheaper prices, such as selling chicken
kebabs for RM 3, while reducing portions unnoticeably
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14. 8. SPONSORSHIP
At the beginning, we had planned to approach potential targets such as friends, family
members and companies that could help us in achieving our sales target by listing these
targets on a piece of paper with the guidance of our lecturer.
MONETARY DONATION
We had acquired RM 700 solely from donation before our charity drive project started.
The donation was contributed by our friends and people who were interested in helping
Dignity For Children. Besides that, we travelled to Sunway Pyramid Shopping Complex,
Publika and shoplots at TTDI to seek for donations. We didn’t seek support from our
family members.
PRODUCT AND MACHINERY SPONSORS
At first, we were seeking sponsorships for marinated chicken fillets and airfryers. We
decided to send emails and perform follow ups on the companies we contacted such
as QSR Holdings Malaysia (Ayamas), Tefal (M) Sdn. Bhd., Nando’s Chickenland
Malaysia Sdn. Bhd. and Philips (M) Sdn. Bhd. through phone calls. However, our efforts
were in vain as they preferred direct sponsorship. Then, Khind Holdings Berhad came
across our mind as we knew that Khind Holdings Berhad’s foundation called Khind
Starfish Foundation has been actively involved itself in CSR activities. One of the
initiatives the hold is called “Projects For Happiness” which promotes happiness and
addresses the root cause of poverty. Khind Starship Foundation’s objective blends well
with our chosen foundation, Dignity Foundation which led us to two sponsored Khind
AirFryers. We sent an email and received phone calls from Mr. Wong , Khind’s CSR
Manager. After days of persuasion and negotiations, he agreed to help us out and got
us two demo set airfryers. Besides, Ms Khay, the head of Khind Starfish Foundation
has proposed to the board of directors of Khind Holdings Berhad for further support to
Dignity For Children.
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15.
9. DISTRIBUTION
We have many products such as airfried chicken kebab, homemade brownies, coconut
beverage and superhero badges under the brand of KO Culture. We have designated
personels to take charge of each product.
AIRFRIED CHICKEN KEBAB
Daniel Song kept the marinated chickens in his home and brought it to Taylor’s
University every morning. The process of making the chicken kebab took us quite
some time as we had to prepare the equal portions of chicken fillets followed by a
process of airfrying them for 7 minutes. The customers had to wait 7 minutes for their
orders to be prepared. We discontinued that plan although it contributed high profits as
it was very time consuming. Then, we replaced the chicken kebab with the homemade
brownies.
BROWNIE
Daniel Song also brought along the homemade brownies along with the airfryers with
the use of his spacious vehicle every morning. The brownies were ready to be eaten
when they were brought to the sales locations as they were baked early in the morning.
All of our customers could just grab the brownies and go. Most importantly, the product
itself tasted very delicious.
COCONUT BEVERAGE
Seet Tiong Hong was incharge of the coconut beverages. He acquired the fresh
coconuts every morning throughout the week from a coconut stall at PJS 7 and brought
it to the sales location. As for the coconut beverages, they were prepared in batches of
eight cups. As the coconut beverage wasn’t a very hot selling product, Seet Tiong Hong
and Chin Khang Wei had to grab a few cups to sell them by personally approaching
potential customers. Besides, eight cups of coconuts beverages is the optimum number
we could sell at any one go before the ice melted.
SUPERHERO BADGES
As for the superhero badges, Terence Tan took care of it by bringing all the necessary
materials to our sales venue everyday and, also made the badges on to spot to attract
customers. The process of making badges was fast and easy, & we also had badges
that were premade. We had a few customers enquire about our products and came to
our stall to custom make their desired badges.
METHODS OF APPROACH
Furthermore, we divided ourselves and traveled in pairs around Taylors University. One
of the pair was responsible for the receipts and donations while the other one was
responsible for the products. We managed to approach around 150 to 200 customers
per day. Our customers could even reach us to order our products through Facebook.
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16.
10. Green Measures
The business we established was not only intended in planning to be a profit generating
business, but also as a business which fulfilled ethical, and environmental standards,
improving the state of the community, and environment around us. As such, the
company ethos is reflected in this manner, in the products & packaging, preparation
processes and material usage, and energy usage protocol.
10.1 Products Sold
The products we sold were mostly foods & drinks, with the exception of the badges. In
order to reduce wastage of the various foodstuffs, we only ordered our inventory of
food, on a day by day basis, based on the popularity, and expected targets such
products were held. This was done, as the facilities to store the food to prevent it from
spoiling weren’t accessible. If excess amounts of food were left over, they would have
had to be thrown away. Hence, this measure greatly reduced wastage on our part. Any
excess or wasted food, was disposed of in a manner befitting organic waste, allowing it
to decompose, to fulfil various functions, such as fertiliser production.
10.2 Packaging
The packaging solutions we employed, involved the usage of fully biodegradable
materials, such as paper. We minimised the use of plastic, realising the impact plastic,
or non biodegradable waste has upon the environment. Besides that, we minimised the
wastage of packaging where necessary, by asking customers if they desired packaging
at all, or if they required smaller packaging, so that materials would not be wasted
unnecessarily. An example of this, is the usage of serviettes instead of large paper
bags, where possible. We also instructed customers to recycle the packaging after
usage.
10.3 Energy Usage
In the utilisation of energy, K.O. Kulture employed very conservative practices. Only two
of our pieces of apparatus required electricity to run, namely the airfryers, and the
oventoaster. In order to reduce unnecessary usage of electricity, we used the air fryers
only during peak periods, such as at the 9am10am period, the 11am12pm period, and
the 3pm4pm period. The batches of chicken would be mass produced and prepared
into units, and stored in heat retaining devices, so that we would not have to run the air
fryers every single time we had to fulfil orders.
10.4 Preparation & Material Usage
In the preparation for the operation of the business, we also minimised any wastage,
and utilised any environmentally friendly measures possible. This is seen in our
advertisement process. For our posters, we used recycled materials, such as leftover
cardboard and rafia string. At the end of operations, we also separated organic waste,
from other waste, so that the materials could be disposed of properly.
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11. Human Resource
Job specification is important to run the business smoothly and effectively. Hence, a clear
jobscope is vital to direct and guide each member to do perform respective tasks and to
delegate workload evenly. Considering each members’ ability and strengths, the tasks were
given accordingly.
Our distribution of tasks:
Team Member Job Scope
Chin Khang Wei
Project Leader, Public Relations (Dignity,
Orange Box Studio, Arena,
Arisan),Advertising Executive, Salesman
Terence Tan Peng Ong
Accountant, Treasurer, Badge Manager,
Salesman
Daniel Song Cheng Hock
Assistant Project Leader, Designer, Agenda
Planner, Cook, Salesman, Social Media
Handler
Daniel Tan Ming Howe
Social Media Manager, Creative Video
Director, Transporter, Salesman
Seet Tiong Hong
Marketing Strategist, Public Relations
(Coconut), Chief Salesman
Our Team Organizational Chart:
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