business report.doc

Taylor’s University SABD | FNBE 08/14⎸

SCHOOL OF ARCHITECTURE , BUILDING AND DESIGN

FOUNDATION IN NATURAL BUILT ENVIRONMENT

Introduction To Business (BUS30104)

Charity Drive Event (Business Report)

Group members :

Name Student ID

Lim Ting Le (Leader) 0320028

Wong Qin Kai 0320024

Lee Jia Kiam 0320029

Ngo Jia Haur 0320144

Nur Iman 0321736

Lecturer : Chang Jau Ho

Submission Date : 20th June 2015 (Saturday)

Content

Introduction to Business | Assignment 3 1


Title Page

Cover page 1

Content 2

Executive Summary 3

Objective 4

Target Market 5

Competition Analysis 6-7

Product & Packaging 8-13

Pricing 8-13

Promotion 14

Sponsorship 15

Distribution 16

Green Measures 17

Human Resource Planning 18-19

Evaluation of Results 20-21

Appendix 22-26



Executive Summary

In this project, we were asked to start a business to raise the fund for a charity

organization with RM 2500. The charity organisation that we choose was Rumah

Seri Kenangan Cheras. We decided to choose this organization because they need

us to provide them the best care to those homeless old folks, they don’t even

deserve to bear the consequences. Some children don’t want to take care of their

parents whenever they are suffering with disease, therefore they decided to send

them to this organization .Through this charity drive, we successfully hit our target

amount RM2632.70 by collecting the donation and selling our products. There

were a number of competitors but we managed to hit our target by using some

promotion.We used different kind of promoting ways to communicate with our

customer and we also used online method to easily let them understand our

product and the aim of charity. In our team, we assigned the job fairly and equally

to every teammates. Beside that, we also concerned about the green measure for

this project to remain the environment - friendly. The final conclusion, our team

members performed well from the beginning of the charity drive to hit the target

within the limited time. The key factors to hit the goal successfully in this charity

drive are our communication skill, financial plan, marketing plan and also

operation plan.



Objectiv e

We had chosen Rumah Seri Kenangan Cheras (RSKC) as our charity

organization.This organization was founded in 1965 and inaugurated by Menteri

Kebajikan Am. The aim of RSKC is to provide custody and protection to the

senior citizens who are poor in order to secure the well-being and their quality of

life. Besides that, they also provide treatments,medicine,counselling services,

guidance, worship facilities and recreational facilities to the senior citizens. Not to

be forgotten, RSKC also encourage relatives and local community to pay

attentions and contributions to senior citizens who are placed in institution. The

reason why the activities such as open days, celebrations and national celebrations

were held is because they provide an opportunity for the community to visit and

interact with them.

The quantifiable objectives that we want to accomplish in this charity event are

getting a target profit of RM2500 with RM 1000 for sponsorship , RM500 for

donation and RM1200 for our sales units.

Video Link :https://www.youtube.com/watch?v=p4HCzWviHNQ

Target market

Through this charity drive event by selling our products to Taylor’s student.



We are targeting the male and female gender and the age which is between 18 -

25 because our products are Dota 2 t-shirt, plain t-shirt and necklace. Through our

research, 50% of Taylor’s student plays Dota 2 online game and loves sport, so we

decided to sell the product which related to those element.

Our business charity event’s title is all about the old folks. Through out our

research, most of the student will donate their money to the old folks because they

tend to change those old folks to a better life.

Other than that, they also understand the hardship for us in this assignment. For

this reason, there are numbers of friends which support our charity event through

donation and buying several products from us. But since we are selling product in

Taylor’s university lakeside campus,we can’t set a high pricing for our product

because student couldn’t afford to purchase such high price product. Therefore, we

are forced to limit our pricing.

In Taylor’s University, we spotted that there are many couples walking around

the campus. Most of our buyers for the necklace are from the boy who buy for

their girlfriend. Couple will interested for the necklace, gamer will interested with

the the Dota 2 t-shirt and sport people will interested with the plain t-shirt.

Competiton Analysis

Some of our competitors during charity drive.



During the charity, we also found out that there are several competitors around

the campus and also the charity event. There are some real challenges for us to hit

the target because some of them are selling the same products. As you can see that

some stores are selling the Dota 2 t-shirts and the necklaces around the charity

event. Due to this competition, selling Dota 2 t-shirt and necklace is hard for us

because with the same product, there will be a different pricing for each product.

Therefore, the hardest part is to compete the pricing for every products.

With the pricing of the Dota 2 t-shirt, the average pricing is between RM25

due to some friendship price and some promotion price. At the campus, there is

also a shop which sell sport jersey which can become our competitor too. The

main strength of our Dota 2 t-shirt and the sport t-shirt is the quality of the shirt.

For reality example, a buyer come and buy 1 sport t-shirt for himself but on the

next day, he come and buy 20 pieces of the sport t-shirt for his friends. We

interviewed him about the reason for purchase a big amount of our sport t-shirt. He

replied that the quality is too good and comfortable. Therefore, his friends asked to

buy that amount of the sport t-shirt.Same to the Dota 2 t-shirt,we sold out the Dota

2 t-shirt within 2 days which the reason is also the same ( good quality ). With this

high amount of demand, I believe that our product satisfied the customers and let



them leaves a remarkable impression towards our products.

For our necklace, we were able to sold an amount of the necklace. But with

this product, there is a shop placed at the campus which is our main competitor

too. In term of pricing, we tried to make its price lower than the shop and we able

to sold some of it. We are not so focus in the necklace because the necklace was

taken by Ngo Jia Haur’s mother. If there is a remaining necklace, we will return to

his mother as well.

Our main strategies are all about the promotion and the pricing. Our focus is all

towards the student around the campus. In between the charity event, you can see

that all of our store are comparing their product with the promotion and pricing. I

think this are the main factor and element to compete each other.

Product & Packaging

Product

Plain sport t-shirts, Dota 2 t-shirts and jewelries are the products that we sold

during business charity drive event. The reason that we wanted to sell these three

products because they are cheap and more affordable for student to obtain it.



1)Plain sport t-shirts

Based on our research , most of our students always like to wear plain sport t-shirt

to the campus because it seems lightweight and comfortable so we decided to

purchase a certain amount of t-shirt for our business charity drive event.Other than

that , the differences between these t-shirts are their colour and size

Colour : Red, Blue, Black and White.

Size : S, M, L, XL, XXL and XXXL

Packaging

To reduce the cost, we decided to use plastics bag as our packaging.We just fold

them up and put inside the plastic bag. Besides that, our packaging was good in

design and it looks simple and attractive. The reason that we had chosen this

plastic bags as our packaging is customers can see through our packaging and they

can know more with how our products look like and what quality does those t-

shirts used.



Pricing

Cost Price : RM10.5

Selling Price : RM25

The selling price is 2.4 times cost price. As you can see, each piece of t-shirt that

we sold can earn RM14.5. However ,it is also reasonable for us to sell the t-shirt

with RM25 because the quality of our t-shirts is high and colourful. After business

charity drive event, we found out that plain t-shirts are not easy to sell because all

we left in our store are very big sizes. But luckily we did sell these products early

before the charity drive start.

2)

Dota 2 Clothes



Based on our research , 60% of our students like to play dota 2 online game so we

decided to purchase it as our product. Due to we are not sure about the market of it

so we only had purchased with 8 pieces of dota 2 t-shirt. The differences between

these clothes are colour, length, and size. But they got similarity too, all of them

are printed with Dota 2 logo.

Colour : Red, Black, Yellow, Dark blue, Blue and Grey

Size : M and L

Length : Long sleeve and Short sleeve.

Packaging

To reduce the cost, we decided to use the original one as our packaging when we

bought from Taobao. We all know that the main attraction of the t-shirt is not

about the packaging but is the quality of it. As you can see the pictures above , all

the dota 2 t-shirts are printed with dota 2 logo and putting outfits together will be



easy also .

Pricing

Cost Price (short sleeve) : RM19.60

Cost Price (long sleeve) : RM42

Selling Price (short sleeve) : RM 25

Selling Price (long sleeve) : RM 45

The selling price of short sleeve is 1.28 times the cost price. For the long sleeve is

1.07 times the cost price. It is reasonable for us to sell the t-shirts with RM25 and

RM45 because our clothes look very colourful and popular. As you can see , the

profit that we earned from each long sleeve is only RM3 because during that time ,

we already hit our target with RM2500 so we decided to put RM45 as our selling

price and make customers more affordable to obtain it.

3) Necklace



We decided to sell jewelries as our product during the business charity event

because most of the ladies and couples were easily get attracted by the jewelries.

For one practical example , when a boy knew that his girl friend like this kind of

jewelry ,he will come and buy secretly because he wanna give a surprise to his girl

friend. All of the jewelries that we sold are genuine silver and its wouldn’t turn

rusty. We sold different types of jewelries with different colours and prices. As

you can see the pictures above , there are blue, orange, red, pink and and white.

Packaging

The packaging of jewelries are simple because all of them are packed with a small

plastic bag. To make it more attractive, we decided to take them out and show it

on a yellow colour towel.

Pricing

Cost Price : We took it from Ngo Jia Haur’s mother shop.

Selling Price : RM21-RM31

We managed to sell 8 pieces of jewelries during the business charity drive event .

Most of the customers are couples and lecturer .As Ting Le mentioned , one of our

customer had hesitated for a long time because she is not sure want to buy how

many pieces but at the end she decided to buy two which are the yellow and blue

colour. Other than that ,she also told us that if her daughter like this too she will



come back tomorrow but unfortunately she didn’t come.

Video Link : https://www.youtube.com/watch?v=p4HCzWviHNQ

Promotion

The first strategy that we used to promote our products during the charity event

is to combine all the information into 4 pieces of posters. The purposes that we

wanted to combine all the information into posters is to let them understand about

the messages that we wanted to conduct. For some customers who doesn’t want to

purchase for our products, they can donate some money to the old folks

organization that we had mentioned in the poster.

For the second strategy that we used to promote our products is Facebook and

Instagram because nowadays there are too many people like to use social network

to convey their information so we decided to use this strategy to hit our



assignment’s target as well. By using this strategy ,customers can also easily

understand about our charity purpose and the information of our products.

Last but not least, our last strategy to promote our products is walking around

the campus. We take some of our products and sell them to the staff and also the

one who was studying in the classroom. It can also successfully attract the

customers who doesn’t walk through the student life centre.

Video Link: https://www.youtube.com/watch?v=p4HCzWviHNQ

Sponsorship

During the charity drive event, we are required to request some sponsorship to

help us achieve our goal. First ,we had approached some companies which named

Red bull Malaysia and Malaysia Milk Sdn Bhd by sending the sponsorship letter

and also the charity organization letter as prove .The reason that we wanted to

target them because they often promote energy drinks and Marigold HL milks in

our campus. But unfortunately ,we get refused by them.

Since we get refused by them , we then approached some sponsorship from our

parents and group members. Here is the name of sponsors and the amount that

they sponsored.

No. Name Approach Method Amount



1. Wong Qin Kai Face to face RM100

2. Lim Ting Le Face to face RM100

3. Lee Jia Kiam Face to face RM100

4. Ngo Jia Haur Face to face RM100

5. Nur Iman Face to face RM100

6. Chan Ching Yee Phone Call & email RM100

7. Wong Ung Ching Phone Call & email RM200

8. Lim Chin Huat Phone Call & face to face RM200

9. Lee Yew Beng Face to face & phone call RM200

Distribution

We found a manufacturer named Evergreen Adventure Sdn Bhd at Taman

Midah which supplied us with 96 pieces of sport plain t-shirts. Other than that, we

only had ordered 8 pieces of Dota 2 t-shirt from Taobao because we are not sure

about the demand of Dota 2 t-shirts.

For the sake of the common target , we also try to get some necklaces from

Ngo Jia Haur’s mother shop because she is the owner of Nk Crystal Marketing.

Due to his mother is a business-minded people, she comes up with a good idea

which is to receive the half revenue that we earn from the necklaces .Therefore, we

deal with it.

In our store, we have enough products to sell to our customers. So, we don’t

have to spend much time on preparing the products to the customer. Most of our

revenues are came from the customer which purchased with our products. In a



specific average, the rate of customer who purchase our products (around 60

peoples ) is more than the customers that donated money into the donation boxes.

Lastly , we also provided pre-order service via social networking such as

Facebook and Instagram to our customers. The reason that we wanted to provide

this kind of service was save time and it will make the customer easier to get the

information before they decided to buy our products.

Green Measures

By selling the sport plain t-shirt and the jewelries, we had used plastic bag to

deliver our products to the customers. However, the plastic bags that we bought

are good in design because it can seal up after we used so it doesn’t causes any

environmental problems if we managed it nicely. For example, each t-shirt is

covering with one plastic bag. But in certain cases, if a customer has purchase 2

pieces of our t-shirts ,we will only provide one plastic bag to the customer because

plastic bags don’t harm the global warming but it does harm the environment.

Based on our research , marine animals and birds are died each year by choking on

the plastic bags because they always take them as their foods.



Another important matter is that we always use one car rather than going with

5 cars to order our products.With this action, we managed to prevent the

environmental problems because if we go there with 5 cars, it may causes air

pollution and wastes of petrol. For the donation boxes, we used the unwanted

materials such as wooden that we found at Block E to create donation boxes.

Human Resource planning

This is our group’s organizational chart:


Advertising(Ngo Jia Haur)

Sales Executives

(Lee Jia Kiam)

Accountant(Wong Qin

Kai)

Marketing(Nur Iman) Executives

Project manager(Lim Ting Le)


Human Resource Planning

At the beginning of this assignment, Lim Ting Le was chosen as our group

leader. Since then,we also appointed him as our group’s project manager since he

is good at strategy planning and problems solving. As a project manager, Ting

Le’s task is to order products from the supplier and ensure that the whole charity

drive event run smoothly. Moreover, it is also important for a project manager to

be self-motivated and inspiring.

Due to Wong Qin Kai has a lot of experiences in accounting so he volunteered

to be an accountant. In this project, Qin Kai is in charge of managing the budget,

recording all the transactions and preparing the P&L statement to show the profit

or loss of the business. On the other hand, Ngo Jia Haur is responsible for

advertising because he is creative and never failed to come out with innovative

ideas. He was assigned to prepare publicity posters and update information on

social media sites, such as Facebook, Instagram and etc.

For Lee Jia Kiam, our sale executive, his task is to approach potential

customers and communicate with buyers.. As a sale executive, Jia Kiam had done

a great job. He has the ability to cope with rejection, desire to sell, and excellent

communication skills. Furthermore, Nur Iman served as our marketing manager.

His part is to promote our product and support the advertising executive with

marketing plan and strategies. Not to be forgotten,a special gratitude to Iman



because he is the only member who volunteered to bring alone the donation box

and asked for donation in our group.

Evaluation of the result

Profit & Loss Statement of Business Charity Drive Event

for the period ended 12th June 2015

RM RM

Sales Revenue 2,732

Less : Cost of goods sold

Plain t-shirt 1,068.50Dota 2 t-shirt &Dota 2 key chains 298.60

Jewelry 140

Plain t-shirt packaging 16.30Total Cost of goods sold 1,523.40

Gross profit 1,208.6

Add other revenues

Sponsorship 1,200

Donation 232.50

Adjusted gross profit 2,341.10

Less : Operating Expenses

Receipt books 8.40



Net profit 2,632.70

After whole week of business charity drive event , our group had totally gained

a lot of profit by selling the plain sport t-shirts and the jewelries that took from Jia

Haur’s mum shop. As you can see, the profit that we earned from plain sport t-

shirts and 11 pieces of jewelries are RM1061.50 and RM142 respectively.

Through the Profit & Loss Statement , our group’s net profit is RM2,632.70 which

already included with sponsorships and the donations.

Besides that , the things that we did right from this assignment are choosing the

plain sport t-shirts and dota 2 t-shirts as our charity products because the demand

of both t-shirts are too high and 60% of our students are dota 2 fans so they are

more likely to buy. However ,we also set a good strategy for our plain sport t-

shirts which is sell them early in order to earn more profits. Other than that , the

thing that we did wrong from this assignment is the phone casing because one of

our member had purchased the phone casing wrongly. At first, we wanted to

purchase Iphone 6 casing but unfortunately he purchased the wrong casing which

is Samsung Galaxy S6. Due to his careless,we had only managed to sell one casing

during charity drive event.

Last but not least , if we can repeat the same event one more time , we would

like to ask for more sponsorship from the big companies because this time we all

focused on group members and their parents so that’s why we only get limited



amount.

Video Link : https://www.youtube.com/watch?v=p4HCzWviHNQ

Appendix



Our Posters


business report.doc

Education