FNBE AUG2014

1.
YOLOGURT
Business Final Project ­ Charity Drive Financial Report
FNBE August 2014
Group Members:
Caleb Soh Er Wen 0320292
Chia Ly Vier 0320142
Chin Vin Yan 0320311
Ng Wyn Jane 0319440
Teh Sin Ying 0320509
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2. Table of Content
No. Title Page Number
1. Cover Page 1
2. Table of Content 2
3. Summary & Objective
3.1 Summary
3.2 Chosen Organization
3.3 Financial Objectives
3­4
4. Target Market 5
5. Competition Analysis 5
6. Products & Packaging 6­10
7. Pricing 11­12
8. Promotions 13­15
9. Distribution 16
10. Green Measures 17
11. Human Resource Planning 18
12. Evaluation Results 19
13. Appendix 20­23
14. Conclusion 24
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3. Summary & Objectives
3.1 Summary
This is a detailed report of our final project, charity drive for Introduction To Business
module.We required to form a group for 4­5 people and decided on the product and service we
would like to sell and provide. The profit for this event will be donated away to charitable
organization of our choice.
We have decide to sell food and beverages, specifically healthy food. We plan to sell
fruits, nasi lemak, mochi, barley drinks, herbal eggs, yogurt, curry puff, sandwiches. This is
because we think healthy food will attract more customers as nowaday people encourage and
appreciate healthy lifestyle.
The choice of our charity organization are UNICEF Nepal Earthquake Children’s Appeal.
UNICEF (United Nations Children’s Fund) in itself serves the function of providing
humanitarian aid to both children and mothers in developing countries worldwide but we agreed
as a corporation that we wanted to sow into something more specific. Hence the decision to
contribute explicitly to the ​Nepal Earthquake Children’s Appeal.
We targeted to raise a total of RM2500 from both sales revenue and donations. A total of
RM1900 would come from the sales revenue alone whereas the remaining RM600 would be
obtained through corporate and individual donations.
During this charity drive, we get the sales revenue RM 1952.40 and for the donation
RM600.00.
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4. 3.2 Chosen Organization
For our business, we chose to contribute our earnings to the ​UNICEF Nepal Earthquake
Children’s Appeal​. UNICEF (United Nations Children’s Fund) in itself serves the function of
providing humanitarian aid to both children and mothers in developing countries worldwide but
we agreed as a corporation that we wanted to sow into something more specific. Hence the
decision to contribute explicitly to the ​Nepal Earthquake Children’s Appeal.
The ​Nepal Earthquake Children’s Appeal​’s main function is to provide immediate humanitarian
aid and relieve the devastating emotional impact the quake left on the children of Nepal affected
by the quake.
Being children ourselves, albeit from a more privileged background, we believe that the children
of Nepal shouldn’t be held back by this disaster and they deserve better than that. Thus, we want
to stand together with UNICEF and support the efforts being made to restore the standard of
living for many of these children through the financial aid we have raised.
UNICEF would then utilize the donations received in the following areas:
● Shelters for victims whose house has been destroyed
● Clean water for drinking and washing
● Healthcare
● Psychosocial support for affected children
● Learning centres and safe spaces for children
3.3 Financial Objectives
We targeted to raise a total of RM2500 from both sales revenue and donations. A total of
RM1900 would come from the sales revenue alone whereas the remaining RM600 would be
obtained through corporate and individual donations.
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5. 4. Target Market
Due to the fact that our business was located in Taylor’s University Lakeside Campus, our target
market was fundamentally divided into two groups: students, which holds the higher percentage,
and lecturers or staffs, which holds a smaller percentage in our location.
Based on the analysis we made, we observed that most customers would spend their money on
food rather than on goods. We also found that customers prefer cheaper food as most of the food
found in campus are expensive. Small packaging food like curry puffs is also a hot selling
product as it is easier to bring around the campus.
Besides, based on the food sold in commercial block, we found that the highest price could go up
to RM20 which could actually afford at least 3 yogurts from our stall. We try to keep the selling
price below RM5 except for the yogurt, which has a high cost price, so that customers could
have a variety of choices by using the same amount of RM20.
5. Competition Analysis
The 2 main competitors during the charity drive are located opposite us (Terence's group) and
also the one beside them (Zi Shan's group).
Comparative Information Terence's Group Zi Shan's Group
Products Brownies, Coconut Drink,
Chicken Kebab
Soya Beancurd, Soya Bean
Drink, Steamed Nut, Popiah
Strengths They have good
communication skills to
promote their products and
good advertisement which
they design their poster in a
hipster way which attracts
students. Their brownies taste
good which attracts a lot of
brownies lover.
The food they are selling are
what people usually crave for
breakfast, which is the Soya
Beancurd. They have
attractive posters and stand
boards which attracts people
to go to their stall.
Vulnerabilities Their products have a
relatively high selling price
which stops people from
buying, unless they are really
craving for it.
They sell goods that are
easily perishable.
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6. 6. Products and Packaging
Product 1 : Fruits
Description : Grapes, Strawberries and Bananas serves as the daily dose of vitamin C.
Packaging : They are packed in plastic cups with lids, to make sure that it is clean, and comes
with a toothpick which is more convenient for customers. We also put the fruits in an icebox to
keep it fresh and cold.
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7. Product 2 : Herbal Eggs
Description : Eggs cooked in the herbal soup until it fully absorbs the essence of the herbal soup.
Packaging : They are served in plastic bags. We pre­peeled some of the eggs because some
customers requested for the peeled ones while some of them preferred the unpeeled ones.
Product 3 : Yogurt Parfait
Description : Fresh yogurt served with fresh fruits and cereals.
Packaging : They are served in a plastic container which we will pre package it at home and put
it in the icebox to keep fresh. The fruits and cereals will be put on top before it is served.
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8. Product 4 : Nasi Lemak
Description : A typical Malaysian delight, consisting of coconut rice, spicy chilli sambal, roasted
peanuts, fried anchovies and hard boiled egg. This is all wrapped up in a banana leaf and brown
paper packet to give it that iconic look.
Packaging : They are bought in a Malay stall at Damansara which is packed with banana leaves
and wrapping paper. Pre­packed, wrapped in banana leaves and brown paper. A spoon is added
for convenience.
Product 5 : Barley Drink
Description : The healthy refreshing beverage freshly boiled. Served in both choices of warm
and cold.
Packaging : They are served in plastic cups and closed lid to keep it clean. Straws are provided
before served so that the drink is completely sealed and clean. Hot water or ice is then added to
the drink to the customers request upon purchase.
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9. Product 6 : Curry Puff
Description : A traditional Malaysian pastry which is filled with a curried potato filling.
Packaging : Served in packets of two, two different packagings were used. We used plastic bags
at first but then switched to plastic containers after we realized that there were a substantial
amount of leftovers.
Product 7 : Chinese Peanut Mochi
Description : Glutinous rice ball coated with a mixture of crushed roasted peanuts and castor
sugar.
Packaging : The mochi is cut into bite sized chunks and then placed into a plastic container
together with a toothpick. The crushed roasted peanuts are added upon order to prevent it from
getting soggy.
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10.
Product 8 : Apple Egg Sandwiches
Description : Bread stuffed with a mixture of hard boiled eggs, apples and mayonnaise.
Packaging : They are packed in the plastic triangular sandwich container.
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11. 7. Pricing
Pricing also plays an important role in a small business. The customer’s decision to buy the
product is affected by its pricing. The pricing should not be too high because the customers will
not buy the products as they think it is not worth it to spend so much on it , whereas the pricing
should also not be too low as the profit gained would not be enough to reach our target. An
effective pricing strategy will help you:
i. Meet your profit objectives
ii. meet or beat your competitors’ prices
iii. retain or increase your market share
iv. match the image or reputation of business, product or service
v. match your offer to market demand
Per Unit Cost Price (RM) Per Unit Selling Price (RM)
Fruits 2.00 4.00
Herbal Eggs 0.60 2.00
Yogurt Parfait 3.00 7.00
Nasi Lemak 1.20 3.00
Barley Drink 0.20 1.00
Curry Puff 0.80 2.00
Mochi 1.50 4.00
Apple Egg Sandwich 1.00 5.00
On the first day, we focused mainly on selling yogurt parfait but the response we got from the
customers were underwhelming because the selling price was too high for a cup of yogurt. We
could not decrease the selling price, RM7, as it has a very high cost price. Thus, we decided to
change our selling strategies to include more products in order to increase the variety of choices
for the customers.
We included products with cheaper cost price such as Barley Drink, Nasi Lemak, Curry Puffs,
Sandwiches, etc. Due to its low cost price, we are able to sell it at a lower rate, as low as RM1,
which attracted more customers..
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12. We got our curry puffs, RM0.40 per piece, and nasi lemak, RM1.20 per packet, from a stall at
Damansara which reduce the amount work involved in preparing. Originally, we tend to sell our
curry puffs at RM3 per packet but the response was very slow as they think that it is too
expensive. Thus, we decrease the selling price to RM2 which increase the sales and became the
hot selling product. We remain the selling price of Nasi Lemak for RM3 as it is a price which
could be accepted by customers.
Winter’s grandmother and mother also help out with the making of Mochi and Barley Drink
which ensures the quality of both products. Winter’s mother sponsored the cost of both products
which reduces the our overall cost price. We sell the Mochi for RM4 and it is also one of our
best seller because we are the only stall selling Mochi. Originally, we tend to sell it at RM2 but it
is too expensive and nobody wants to buy it as they prefer to buy to buy other drinks with the
same amount of money. Therefore, we reduce the price for the drinks. After reducing the price,
customers response are much better as the drinks is just RM1.
For the apple egg sandwiches, the price is RM5.00. The response is not as good as other products
but it still meet our daily target. However, we still remain the original price as we can make more
profit with this pricing. Besides, for the herbal eggs, It’s just RM2 for each eggs/ The profit is
quite high because the cost for a herbal egg relatively low. Lastly, the fruits is just RM4.00 and
the cost of the fruits is RM2.00. We buy new stocks every day in order for us to provide fresh
fruits for the customers.
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13. 8. Promotion
8.1 Main Marketing Message
During the charity drive, our group’s marketing message was very straightforward which
enabled the message to brought across to our customers clearly. All of us shouted and promoted
our products by yelling “herbal eggs for RM 2” or “apple egg sandwich for RM 5” and the same
for other products as well. We also emphasized that all of our profit will be donated to UNICEF
Nepal Earthquake Children’s Appeal.
8.2 Main Tools of Promotion
Our group took advantage of different tools to promote our products such as poster, stand board
and social media.
i. Poster
We designed a poster which includes all the information needed such as main products, pricing,
and venue. People could understand about our products clearly by referring to the poster. This
helped us to promote our products indirectly.
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14.
ii. Stand board
We made a stand board which included our products’ name and pricing. One of our group
members held it and walked around to promote our products. It was a useful tool to attract
customers because they could get all the information of the products and pricing easily.
The stand board
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15. iii. Social Media
We used social media, such as Facebook and Instagram, as our main promotional tool . We
decided to promote aggressively through social media because it is convenient and free of
charge. It is a new trend of promotional strategy since there are a lot of people using Facebook
and Instagram nowadays especially the younger generation. By utilizing this media, the newest
updates of our products could be easily spread to the people.
Facebook Page ­ Yologurt
Instagram account ­ yologurt_tsnc. (left) We posted pictures of our satisfied customers as a
promotional tool to let more people know about our products. (right)
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16. 9. Sponsorship
For our group, we decided against looking for too many sponsors as we believed that the target
set is achievable through the sales profit alone. Thus we only approached Ms. Lim, Winter’s
mom for sponsorship. We approached her as she expressed her interest in sponsoring us the
moment she heard about our assignment.
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17. 10. Distribution
For most parts of our products, we prepared and stored the products at our respective houses
before bringing it along the next day. We arrive at campus every morning at 8AM to set our stall
up. We also took that time to pack some of the food made at home. Products as such would be
the curry puffs and sandwiches. The herbal eggs had to be placed into the pot to warm it through.
Having packed everything into convenient, individual containers, the products could be easily
brought about after purchase. This gives the customers an added motivation to purchase food
from us as opposed to the things found in the commercial block. Most of our products, were
packed into cups or small plastic bag which is conveniently sized to be held by hand.
We placed most of our products at our booth which is located along the corridor outside of the
Student Life Center. This enables our product to be seen by the passing traffic and gives us a
measure of free publicity. Customers would be able to view the products we have up for sale
without us having to promote it. This saved us the time effort needed to promote our products to
the customers. By placing our herbal egg cooker at our booth, we also utilized the fragrance of
the eggs to attract more customers.
Having said all that, we realized that approaching customers personally is still the better sales
method. Along the corridor where our booth is located, we would have salesmans there to
promote our products personally to the passing people. We also set up a mobile stand. This
consists of two members bringing a tray of our products around campus. This method of bringing
the product to our customers gives us a better chance of sales as the customers find it more
convenient than heading to the shops to purchase food.
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18. 11. Green Measures
As a company, we took certain measures to improve the eco­friendliness of company. First and
foremost, we decided to obtain our ingredients in bulk. This meant that we only made two trips
throughout the week to purchase our ingredients. As per compared to making repeated trips
daily, this approached helped us cut down on the greenhouse gas emissions produced when
commuting to and fro our destination.
Furthermore, we opted for a ice box instead of a fridge as that would cut down on our energy
usage. By using a ice box, we wouldn’t need electricity and thus would be able to again cut down
on our greenhouse gas emissions.
On top of that, when we were ordering the nasi lemak from the supplier, they gave us the option
between polystyrene or banana leaf packaging. We opted for the banana leaf packaging as it is
biodegradable and it also gives a traditional feel to it.
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19. 12. Human Resource Planning
Team Organizational and Job Delegation Chart :
As the weeks progressed leading up to business charity week, our team split necessary roles
amongst ourselves, which included:
i. Director
Led by Caleb, we devised a clear direction and path for both planned and impromptu situations
to achieve our objective.
ii. Sales Team
Kept constantly active and mobile, William, Winter and Jane worked together in pairs under
separate shifts every day of the week. We implemented a variety of marketing tactics such as
mobile sales around the campus and thought­out promoting scripts.
iii. Production Team
Although led by Caleb and Jane, all of us were involved in preparing our products such as
yogurts parfait and fruits. Moreover, Caleb was also in charged of buying the Nasi Lemak and
Curry Puffs every morning.
iv. Accounting and Finance Team
Lyvier was in charged of all the cost of ingredients and amount of target profit. The main
receipting and monetary issues was also handled by her. We also cleared our expenses cost after
the end of the days.
v. Documentation and Report Team
All the photos, video and non­account­related facts were documented by Lyvier and Caleb.
Everyone took part in the final business report.
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20. 13. Evaluation Results
Income Statement of TSNC2 Co.
for Charity Drive Event
Revenue
Sales
Less : Cost of Goods Sold
Cost of Goods Sold
Gross Profit
Add : Donation
Adjusted Gross Profit
Less : Operating Expenses
Stall Decoration
Total Operating Expenses
Net Profit
(RM 787.60)
(RM 9.40)
RM 2740
RM 1952.40
RM 600.00
RM 2552.40
(RM 9.40)
RM 2543.00
Nasi Lemak Barley Drink Yogurt Herbal Eggs
Selling Price (RM) 3 1 7 2
Units 130 100 96 235
Revenue (RM) 390 100 672 470
Curry Puff Sandwich Mochi Fruits
Selling Price (RM) 2 5 4 4
Units 160 80 50 47
Revenue (RM) 320 400 200 188
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21. 14. Appendix
Typhoid Injection Certificates
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22.
Receipts
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23.
Receipts
Preparation for our business.
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24.
During the charity drive
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25. 15. Conclusion
As conclusion, manage a business is definitely not a simple task. We need to work on different
aspect in order to make our business a success one. We also faced different difficulties and
challenges in this business as example, lack of customers, lack of products and slow response to
our products. We need to consider about the packaging of the product, decoration of the
stalls,advertising and promoting strategy of the business.
Basically, we learnt few things through this charity drive. Firstly, we have to be sensitive to the
the business environment. A business which does not sensitive and ignore the environment of the
business will not be successful. For our case, we studies the environment before we decide what
to sell. We try to sell food and beverage which is healthy and fresh as people prefer food which
is healthier nowadays. Besides, people always tend to prefer products with hygienic and
professional packaging. Therefore, we had try to make our packaging looks professional and
hygienic in order to attract more customer and build up the customers trust.
Besides, we should keep improving on the products we are selling by observing the response of
the customers. We have change our products when we found out the products we are selling
don't have big market. We also included more products to sell in order for us to attract different
customers. Specifically, we add in new products like Nasi Lemak, Barley drinks, Mochi and
others. This is because we found out yogurts parfait and fresh fruits have smaller markets.
Moreover, advertising and promoting our product is one of the important strategy in order for our
business to be successful. We had come out with of different promoting strategy in order to
attract customers. For instance, create social media pages, verbal promoting and make posters.
We found out that we have to take the initiative to approach our customers. We have to promote
and introduce our products to our customer to persuade them buy our products.
As conclusion, we have to focus on different aspect to make our business a success one.
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