1. SCHOOL OF ARCHITECTURE, BUILDING & DESIGN
Foundation of Natural Build Environment (FNBE)
Semester 2
Group Members: Yap Yong Xing
Melvin Lim Wei Jien
Tan Wen Hao
Jake Sia
(0314715)
(0315772)
(0313690)
(0314396)
Subject: Introduction to Business
Lecturer: Chang Jau Ho
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2. Table of Content
Executive Summary ……………………………………….…….……3
Objectives ………………………………………………………..…….4
Target Market …………………………………………………………..5
Competition Analysis ………………………………..………………..6
Product and Packaging ……………………………………………..7
Pricing …………………………………………………………………...9
Promotion …………………………………………..…………………10
Sponsors ……………………………………………...………………..11
Distribution …………………………………………….……………...12
Green Measures ……………………………………………………..13
Human Resources Planning ……………………………………….14
Evaluation of Results ………………………………………………..15
Conclusion ……………………………………………………………16
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3. Executive Summary
The purpose of this report is to organize the data collected for this
project. In this project, we have bought some goods and sold them and
with the money collected from this event, we will donate the money to Sri
Eden, an orphanage home.
In the report we go through several things, some of which include
our target market and our main competition in the event. Towards the
more details of the report we have wrote about the goods and their
packaging that were sold to the customers. We also discussed ways of
how we would promote and advertise our goods so that customers would
buy our products.
Last but not least, we present the results of the sales which we have
obtained from the business we ran for a week. We even included our very
own organizational chart of our group of 4 members where each of us
plays a different role in our small business.
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4. Objectives
The objectives of this project are so that we get a feel of human
resources management, marketing, operations and finance in business. By
carrying out this project we also can understand the social and ethical
responsibilities of a business.
Instead of keeping the profits we earn for ourselves, we have to find
a charity organization to donate the money to. So we have chosen Sri
Eden as our charity organization. Sri Eden is an orphanage home and we
believe that children are the future of this country and hence by
supporting this orphanage home we hope to contribute to this country’s
future.
Our target sales during the charity drive event is around RM1000 –
RM2000. However, if we exceed that amount, we would still give RM2000
to the charity organization but we are thinking of splitting the extra money
amongst ourselves.
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5. Target Market
Our primary customers would come from Taylor’s University Lakeside
Campus where most of them would be students, lecturers, staffs and
parents. Our secondary choice of customers would be people around
housing areas and hawker stalls.
The first thing at comes to mind is food because everyone needs
food however it also depends on what types of food. Since Chinese New
Year isn’t officially over, we would try selling some Chinese New Year
snacks. Since Valentine’s Day is also around the corner, we would also sell
some chocolates in conjunction with Valentine’s Day. We may also sell
some other things that people might like such as wristbands, cupcakes
and earrings.
Naturally when it comes to spending power of the customers the
customers from Taylor’s University Lakeside Campus would be more thrifty
in spending their money since they are mostly students. However, when it
comes to customers outside of campus area, they would be more open
to buying our product seeing as how most of these people already have
jobs.
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6. Competition Analysis
One of our main competitors is also from the same course as us.
They are selling Valentine’s Day chocolate. One of their main strengths
would be the variety of chocolates they are selling and their chocolate
designs are very nice. However, they only specialize in selling chocolates
which may cause appeal to only a specific market. Also the fact that they
have labeled their chocolate with quite a high price, RM6 each together
with free gifts. This may cause them to lose some sales.
Another of our main competitors is also from the same course as us.
They are selling Chinese New Year cookies which they are selling for RM9
per box, as well as Valentine’s Day cookies which they are selling for RM5
per pack. One of their strength lies with their Valentine’s Day cookies
where they attach a small note to the packaging to make it special.
However their vulnerabilities are that they are selling just a few products
which may just appeal to a specific group of customers.
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7. Product & Packaging
Chocolates with Valentine’s Day
packaging
Cupcakes
People should like it because since
the packaging goes well with
Valentine’s Day.
People should like it
because it is easy to eat,
makes a good snack.
Hair Bands with ribbons
Pringles
People should like it because
it is simple yet stylish.
Who doesn’t like Pringles,
makes a good snack.
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8. Fried Seaweed
Since CNY is not officially over
we thought we’d try our luck
in selling these.
Wristbands with brand
brand labels (eg.adidas)
This is more of an extra
extra product incase
people are interested.
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9. Pricing
Chocolates
Selling price: RM6
Cost price: RM1.90 (24 boxes)
Not popular & attractive
Cupcakes
Selling price: RM1 per packet
Cost price: RM5.20 per box (24 packets a box) x 4
Popular but not attractive
Hair Bands
Selling price: RM6 (RM180)
Cost price: RM2 (30 Hair Bands)
Not popular & attractive
Pringles
Selling price: RM5 each (RM60)
Cost price: RM23 one box (12 packets)
Not popular & attractive
Fried Seaweed
Selling price: RM12 (RM600)
Cost price: RM6 (50 bottles)
Popular but not attractive
Wristband
Selling price: RM3 each (RM72)
Cost price: RM3.50 for 24 pieces
Not popular & attractive
Heart-shaped chocolate
Selling price: RM10 per box (RM180)
Cost price: RM3.50 per box (18 boxes)
Not popular but attractive
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10. Promotion
Our main marketing message is to “Help the Kids” from the
orphanage, Sri Eden. We also believe that children and the next
generation are the future of this country. Hence, we are donating to the
orphanage.
Our 2 main tools for promoting our products are giving out free
samples & face-to-face conversation.
The reason for this is because our products are not well known so in
order to sell it we need to let people try some first and hope that they will
come back to buy some. We also used the old fashion way of face-toface conversation because we plan to sell our stuff mostly to friends and
friends’ friends. Hence, we will promoting to them by word of mouth.
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11. Sponsors
For sponsorships, we have obtained some from parents, friends and
relatives. We target them because we know them and are close to them
also because they support our cause which is donating to the orphanage
to help the kids. What’s more is that all the money will go to charity. Most
of the sponsorships come in the form of cash.
We approached them by means of telephone calls and face-toface meetings. We then explained to them that what we are doing is for
our business assignment and we are donating the money to a charity
organization, Sri Eden. By explaining this to them properly we hope that
they will understand and donate some money.
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12. Distribution
For the fried seaweed, the supplier makes the seaweed in Shah
Alam. Upon completion we drove there to collect the product and then
drove to Taylor’s University Lakeside Campus to sell them. For the other
products. We bought the other products from a whole seller in bulks at KL.
It depends entirely on how much stock we ordered which in our
case the fried seaweed took around 4days to make and around 2hours to
deliver from the supplier in Shah Alam to Lakeside Campus. For the other
products, we just bought it and bring it to Taylor’s Lakeside Campus
ourselves.
The number of customers we can reach effectively would be
around 50 – 80 persons some of which having purchased our products
more than once.
Customers cannot order our products online nor order via phone
because they do not see the urgency for buying our products. Most of our
customers buy our products when they are here in person since it is also
convenient for them.
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13. Green Measures
Some of our products are home-made which makes it
environmentally friendly in a way. The products include the hair bands
and the fried seaweed which was made at the home of the supplier. For
the other products which are not home-made the packaging used is not
very hazardous and is easily recycled.
All the consumable products were already packaged and sealed
in their containers before it was even distributed. After we sell the products,
the good as well as their packaging is in the hands of the customer hence
it is their responsibility how they handle the products’ waste.
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14. Human Resource Planning
Project Manager
Sales Executive
(Melvin Lim)
(Jake Sia)
Advertising
Executive
Accountant
(Yong Xing)
(Wen Hao)
We placed Melvin as the project manager to have the overall
control over the project because he is good at organizing people and
assigning jobs.
We then placed Jake as the sales executive to do the recording of
data for the report.
We placed Yong Xing as the advertising executive because he is
talkative and can connect to people easily.
Lastly, we placed Wen Hao as the accountant because he likes
doing accounting and what’s more is he volunteered himself.
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15. Evaluation of results
Business Charity Drive ‘We Feel High High’
P&L Statement for the year ended 30st June 2014
$
$
$
Revenue
Sales
1332
Less: Cost of Goods Sold
(515.9)
Gross Profit
816.9
Add: Donation
1000
Adjusted Gross Profit
1816.9
Less: Expenses
Stationery Expenses
(8.4)
Printing Expenses
(5.5)
Total Operating Expenses
(13.9)
Net Profit/(Loss)
1803
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16. Conclusion
One of the things we did wrong is that we mostly sold our goods to
friends and relatives or people we know because we failed to promote
our goods efficiently.
However, despite what we have done wrong we are still able to sell
most of our goods and even collect some donation. In conclusion, we are
lucky we are able to sell all our products, mostly the people that bought
are friends and relatives.
As a group, we did learned a lot. We need to have teamwork and
market our products to people properly. Besides that, we really learned
not to be shy and ask anyone that passes by. Eventhough it was tough
but overall we had a fun time doing this project.
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17. Appendix
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