fnbe 0814 intro to business business report

1.
SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
FOUNDATION IN NATURAL AND BUILT ENVIRONMENTS
INTRODUCTION TO BUSINESS
FINAL PROJECT : CHARITY DRIVE EVENT
LECTURER : CHANG JAU HO
Kedai Runcit CT
GROUP LEADER
SIM CHIA TING (0320932)
ACCOUNTANT
YEO KAI WEN (0319844)
SALES MEMBERS
WONG DEVIN (0319814)
SATESH RAJ (0321419)

2.
TABLE OF CONTENT
No. Title Page
1 Executive Summary 2
2 Objectives 3
3 Target Market 4
4 Competitors Analysis 6
5 Product and Packaging 8
6 Pricing 11
7 Promotion 14
8 Sponsor 18
9 Distribution 19
10 Green Measures 20
11 Human Resource Planning 20
12 Evaluation of Result 21
13 Appendix 23
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3.
EXECUTIVE SUMMARY
The FNBE August Intake 2014 students were required to form a group of 4 people to do
a Business Charity Drive in 5 days which held on 8th to 12th of June 2015 at Taylor's
University Lakeside Campus. The objective of this project is to raise fund for charity
organization. In this project, we named our group as ‘’Kedai Runcit CT’’ , it named after
our group leader, Chia Ting.
We decided to sell childhood snacks and drinks and then donate to an orphanage, Sai
Asirwaths Home at Shah Alam. The reason of us choosing this organization was we
wished to help the children by providing them education.
This project gave us a new opportunity to run a small business and throughout this
project, we were able to know how was the business going.
We started few day earlier before the charity event by going around the campus,
promote our products and persuade them to buy.
Throughout this project, we learnt that how to communicate with other people as well it
come out from our comfort. It can improve our communication skills, and gain
knowledge about how to start a business.This was an memorable experience for four of
us. Everything went smoothly throughout the whole week of the event.
Furthermore, our group had successfully raised an amount of RM2508.00 by selling the
product and get the donations for the orphanage, Sai Asirwaths Home. We’re glad that
we had reach our target.
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4.
Objectives
Sai Asirwaths Home
● Raise a minimum of RM2500 and donate to Sai Asirwaths Home by selling
snacks and drinks.
● Sell minimum to achieve the target.
● Create facebook page to the publics.
Our team chose to support Saiasirwaths because one of our member, Satesh Raj was
helping them if they needs any help and donate the money yearly.
Also, Sai Asirwaths currently having financial issues like education fees. So we decided
to donate the money to them.
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5. Target Market
1. University Students
For this charity drive, our main target for our sales are Taylor university students. Since
our main booth is in front of Student Life Center (SLC), around 80% of Taylor University
students pass by SLC from Block C, D and E to commercial building which is also know
as Syopz everyday. 20% of the student are willing to buy our product which is snack
and 30% of the students are willing to buy drinks from our booth during 8am to 6pm.
The other 50% sales are from our promotion although we get rejected by some of
students but we still manage to sell a lot. The most persuasive words are “we are doing
this for the charity drive and all the profit are donated to the orphanage ”. Although we
sell a lot of item in one day but our profit are not high enough, so we plan to sell our
product to the architecture students during night time. We start selling our product start
from 9pm to 12am. 80% of the student are willing to buy from us and this is a very good
marketing strategy. Many of them have high spending power compared to the afternoon
section.
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6. 2. Friends and family
Friends are also one of the most important customer, before the booth was open, our
sales target are friends and relative. All of them are willing to buy our products no matter
what product is that. They always say: “We are friends and this is what friends do, we
will always support you”. They tend to trust us more and they always support our charity
event.
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7. Competition Analysis
Abdul Qayyum’s group
This group was selling snacks and drinks too. They sold chips and fruit drinks. Their
booth was located on our opposite booth and it was nearby commercial block.
Advantage:
Their strategic location is near the commercial block and administration office also it
easily allow the customers to persuade them. Their fruit drinks were unique and nice.
Weakness:
They sold limited items only such as brownies, snacks and fruit drinks. Their snacks
might got in air if their things didn’t sell out.
As our both team sells quite similar product, we decided not to just sit at our booth wait
for the customers to come and buy it. We intends to walk around the campus towards
them to promote our drinks and childhood snacks.
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8. Chin Yin’s group
This group possessed as a stronger competitors towards our team.
Advantage:
They sold softsrve ice­cream, it was a very rare product. Most customers willing to buy
such expensive ice cream. This brought them a huge income from their customers.
They also had a strategic location due to they located at the first group which is the
group before Abdul Qayyum’s group.
Weakness:
The cost of their softsrve ice creams were expensive, it costed RM 9 each. Besides, the
machine produced slow and it made the customers had to wait for 20 minutes to get
their ice cream.
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9. Product and Packaging
Product
We have three main product which is snacks, candies and drinks. For the candies, we
sell variety of childhood memories candies such as mentos, lollipop, burger candy,
pizza candy, sour candy, pikin plum candy, chochair candy and skittles. For snacks, we
sell prepackaged food such as mamee monster, muruku ikan, snek ku, bika, doble
decker, twisties and corntoz. For the drinks, we also sell three type of drinks which is
carbonated drinks (Coke, sprite and root beer), can drinks (Ice lemon drink, green tea)
and isotonic drinks also known as energy drinks (100 plus)​.
1. Candies
We are only selling childhood candies for the charity drive. We sell 8 types of candies which are
● Mini Mentos
● Lollipop
● Burger candy
● Pizza candy
● Sour Plus Candy
● Pikin Plum
● Skittles
● Choclairs
● Spray flavor
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10.
2. Snacks
We selling childhoods snacks as well, there were
● Bika
● Mamee Monster
● Muruku Ikan­ Popo
● Snek ku­ Mimi and Tam Tam
● Corntoz
● Shoyuemi
● Twisties
● Double Decker
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11.
Drinks
We also selling beverages such as
● 100 Plus
● Ice lemon tea
● Coke
● Spirite
● Green tea
● Root Beer (A&W)
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12. Packaging
We do not provide any packaging for our selling products. All our product are given to customer
by hand. The reason we do not provide any packaging is to reduce our expenses and decrease
the wastage. the product we purchased were already packed by the factory made and it already
seal properly. Therefore, we do only ask the customers if they require a plastic bag for their
product purchased.
https://www.youtube.com/watch?v=Gnle8lPQde4&feature=youtu.be
Pricing
The average selling price of the candy is around 3 times the cost price if all candy are sold in
unit. Many customer find that the price is reasonable and willing to buy from us but still some of
the customer find that our price is a little bit expensive even though they know the profit still go
to the charity. Hence we do not increase the price.
Product Cost Price (RM) Selling Price (RM)
Mentos RM 0.20 RM 0.50
3 Lollipop RM 1.00 RM 3.00
3 burger candy RM 0.90 RM 2.00
Sour plus candy RM 0.20 RM 1.00
Pizza candy RM 1.10 RM 3.00
Plum candy RM 1.00 RM 3.00
Skittles RM 1.65 RM 3.00
Chocolate candy RM 0.10 RM 0.25
Spray flavors RM 0.30 RM 2.00
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13. Snacks
For the snacks, the selling price for the snacks is around RM 0.80 each but we sell 3 pack of
snacks for 2 Ringgit. The reason is that we want to make our selling price double the cost price.
Product Cost Price (RM) Selling Price (RM)
Bika RM 0.20 RM 0.80
Mamee Monster RM 0.30 RM 0.80
Muruku Ikan­ Popo RM 0.20 RM 0.80
Snek Ku­ Mimi / TamTam RM 0.20 RM 0.80
Corntoz RM 0.25 RM 0.80
Double Decker RM 0.25 RM 0.80
Shoyuemi RM 0.25 RM 0.80
Twisties RM 0.35 RM 0.80
Drinks
For the drinks, we sell RM3 each for our customers.
The cost price for all drinks is 1 Ringgit
Product Cost Price (RM) Selling Price (RM)
100 Plus RM 1.00 RM 3.00
Coke / Coke Zero RM 1.06 RM 3.00
Spirite RM 1.06 RM 3.00
Root Beer (A&W) RM 1.06 RM 3.00
Green / Ice Lemon Tea RM 1.06 RM 3.00
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14.
Others products
These two products Pocky and Satay, we sell RM 5.00 for Pocky and RM 3 for Satay.
The average selling price of the these two product is around 2 times.
Product Cost Price (RM) Selling Price (RM)
Pocky RM 2.21 RM 5.00
Satay RM 1.06 RM 3.00
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15. Promotion
We created our Facebook page and posters to attract the people who come to have a look,
purchase product and donate money.
1. Social Network
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16. 2. Poster
For poster we used Canva, a website to help us students to design our poster.
We had designed not only just one poster but several of it. Our poster is full of colour
and this allow will passersby to have a quick attention of what we sell or sometimes the
poster can grab some people's attention.
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17.
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18. 3. Face­to­Face Communication
Compare to social network and poster, the most effective way to promote our product is
face to face communication. For our very first trying to selling the products, wanted to
test whether the products are suitable to sell in campus. Our first target buyers are
mostly our coursemates and lecturers. During the charity event, we approached to our
customer and we explained further about what we sell and where do our profit go.
Besides, we would asked for donation. For the donation part, we came out with some
special sentence. We had tried that if we said : “ Would you like to donate for the
orphanage ? ”. Based on our research, there was 1 out of 10 people would donate
willingly hence we changed to “ Do you have extra heavy coins to donate for the
orphanage ? ”, we found out that there were 7 out of 10 people would donate willingly.
Video link­
( Advertisment video )
https://www.youtube.com/watch?v=Gnle8lPQde4&feature=youtu.be
(Reflection video, selling process, buy product process )
https://www.youtube.com/watch?v=nrpBKwgrIlY
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19. Sponsor
First, we did find our supplier which is ​Nestlé company​ to sponsor us beverages and ice
creams. We sent the sponsorship letter to them at 18 of May 2015 but then the Nestle
company replied us at the first of June 2015. In the letter, they mentioned that they want
more about our details and they need 4 to 6 weeks for preparing the products. After we
received the letter from ​Nestlé​ company, we knowed that they would not make it in time,
so we asked from another supplier which is Fraser and Neave, Limited (F&N).
First we called the head manager of F&N and the manager said that it needs to send a
official letter to their company and we sent our letter as like he told us but after sending
the letter for 2 weeks, they did not reply back to us. We did call back to F&N but they did
not pick up at all so we go for plan C.
One of our group member’s family agreed to sponsor us RM400, which covers the
product cost and the money was handed by cash.
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20. Distribution
For the products we were selling for the charity drive, we need to went the supermarket,
grocery to buy our respective products. The place we went to buy our products were
MK Snack Food Sdn Bhd, Pasaraya PJS, Giant Hypermarket and Kedai Lam Loong
Sdn Bhd.
We delivered our products to the customers by face­to­face communication service
because it was the most effective way to promote the products.
For the snacks, candies and drinks, we sold them by walking around the campus and
asked everyone who passed­by.
We had 3 boys and 1 girl in a group. We need 3 person had to walk around and
promote the products and 1 person in charge at the booth. So all of us had to take turn
to walk around the campus, promote our products and take the donation box ask for
donation.
Besides that, we even sell the products at night. Our targeted customers were
Architectural students who does their projects at Block E’s studios and classrooms.
We found out that our product sales at night compare to morning was more effective.
So we decided to sell the products during day and night.
After the charity drive ends, we finally sold out all of our products.
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21. Green Measure
The products we sold were environmentally friendly such as the packaging of the
products no need extra packaging or heat with the use of electrical appliances.
For our food packaging, our products had been sealed properly. Besides, the size of our
products were small packaged and it no need plastics to put the products. The
customers can put the products in their respective bags.
For our booth during the charity event, we had to make sure that our booth surrounding
area is clean and neat.
Human Resource Planning
A clear organizational chart is important that it can able to guide and direct them to do
their respective task on the project. So the members can take responsible to do the task
to ensure that the event can be run smoothly.
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22. Evaluation Result
In this charity drive, we earned a total of RM2508.00 for Sai Asirwaths Home and it
reach our target to earn RM2500.00 in net profit. It was the outcome from our member’s
effort and contribution. The money we earned RM 2508.00 came from profit earned,
sponsorship and donations.
It was hard to find the sponsors who were willing to give the products.
We appreciated that Chia Ting’s family willing to sponsor us RM 400.00 to us buying the
products which to cover the cost price of the product.
We managed to find the snacks supplier where the shop sells the snacks cheap. They
sold the quantities in a box which is much cheaper than other grocery shops.
With the cooperation with group members, we managed to run our business smoothly
from 11am to 10pm everyday. We did swifted in turns to walk around the campus to
promote our products.
We had a good experienced while doing this assignment. We did came out from our
comfort zone to speak out, walking around the campus to promote the people about our
products.
Last but not least, we felt happy that we used the money of RM2508.00 which was
earned by us to donate to Sai Asirwaths Home. When they received the money, the
children thanked to us with smiled.
https://www.youtube.com/watch?v=nrpBKwgrIlY
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23. Profit and Loss Statement Report
Income statement for Kedai Runcit CT from 8th June 2015 to 12th June 2015
RM
Total Sales Revenue RM 1987.00
Less: Cost of Goods Sold
Snacks and Drinks RM 703.00
Gross Profit RM 1283.00
Total Donation
Total Sponsor
RM 855.00
RM 400.00
Adjusted Gross Profit RM2538.00
Less: Operating Expenses
Receipt Book
Poster
RM16.00
RM14.00
Net Profit RM2508.00
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24. APPENDIX
Photos
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25.
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26.
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27. Approval letter from our organisation
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28.
Receipts (1):
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29.
Receipts (2):
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30. Receipts (3):
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31.
Receipts (4) :
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32.
Receipt (5)
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33.
The Official Receipt we received from Sai Asirwaths Home
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