School of Architecture, Building & Design

Foundation in Natural and Built Environment Semester 2

Introduction to Business [BUSF0103]

Final Project: Charity Drive Event Report

Chohort : July 2013

Lecturer : Chang Jau Ho

Name ID

Sharon Lim Yu Jung 0313377

Lai Jia Yi 0315957

Tan Chiew Nee 0303531

Tan Chee Siang 0315159

Kelvin Fong Jia Zheng 0317166

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Table of Content

Content Page Number

Executive Summary 3

Objectives 4

Target Market 5

Competition Analysis 6-7

Product & Packaging 8-10

Pricing 11-12

Promotion 13-14

Sponsor 15

Distribution 16

Green Measures 17

Human Resource Planning 18

Evaluation of Results 19-20

Appendix 21-27

References 28

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A. Executive Summary

It was the final project for our Introduction to Business subject and for this project we were required to run a charity drive event to raise fund and channel all the profit to charity organizations. The charity organization my group had chosen is World Vision. The reason of us choosing this organization was because we wished to help those children who are suffering from famine and poverty.

In the end of this charity drive, we had successfully raised a fund of RM2500.00 by selling several products including chocolate bars, Japanese snacks, raisins and Graffitist tees and also donations we collected within these days. We did not receive any sponsorship from any party.

We started selling our products one week before the charity drive by going around campus to promote our items. We even created a promotional song for our product, chocolate to attract more customers. Besides, we had also provided good service to our customers by greeting them with good manner and bright smiles. Several techniques had also been used by us in order to attract more customers.

Everything went smoothly throughout the whole event as everyone was assigned well with their own roles and duties to assist in making this event a success. We had also appointed an accountant to be in charge of the financial issues in the group to ensure all the money is well managed without any unnecessary loss. In the end, it turned out to be a great outcome as our group had successfully hit the target of RM2500.00.

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B. Objectives

Our chosen charity organization is World Vision Malaysia. World Vision is an international Christian Humanitarian relief, development and advocacy organization that was established in 1950 by Robert Pierce to mainly cope famine and poverty that strikes places around the world regardless of the nation, gender, religion or race.

We chose World Vision Malaysia as our beneficiary because we it is a trusted organization with good reputation. We hope that through Malaysia’s divisional office, our funds will be able to help those underprivileged at South Sudan, which World Vision had anchored their aid at the region since 1972. For years, World Vision had been reconstructing the region, crippled by violence and poverty by helping them to live a sustainable life, through providence of food, medical supplies, proper education and economic development. Thus, we would like to be a part of them and help to make a difference in the lives of the South Sudanese. Perhaps our humble aid might make their lives better and bring a little warmth to their souls. Besides, we were alarmed by the emergency of the needs of fundamental supplies for the people at Malakal, the heart of conflict of South Sudan, with a large ratio of children among them. Today, around 200,000 people were displaced from their home and relocated at United Nations’ refugee camp with an area similar to only three football fields. Thus, we believe that a prompt response to their rudimentary needs is needed and we are sure that funds are the easiest way to reach them.

Thus, we to reach our goal of net profit of RM2500, we set our target donation amount at RM 500. The remaining RM 2000 would be from our sales, mainly chocolate bars, followed by Graffitist Tee, Japanese green peas and mini-packaged raisins. Our goal was to sell 270 bars of chocolates, 70 packs of Japanese green peas, minimum 5 Graffitist Tee and 48 packs of raisins in order to reach our target.

Video link:

http://www.youtube.com/watch?v=ueU8ddOJOTg#t=332

c. Target Market

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In this event, our group sold Ikea’s chocolate, Graffitist tee, and also snacks such as Japanese green peas and raisins. After discussing with my group members, we’ve decided to mainly focus on the students from foundations, diplomas and degree courses, especially those who are having a short break between class slots and staffs in the offices at Taylor’s University Lakeside campus. This whole week was a normal academic week hence the human influx was high as usual, thus it did not affect our sales.

According to our market research, we’ve found out that chocolate is a popular item among the student range. Besides a delicious snack, it would also enhance the brain functions, which could improve and enhance the ability to think better due to its antioxidants which could help the students to learn better in class. In addition, it would also boost the working efficiency as it could reduce depressions and stress based on a scientific research. Studies have shown that people would tend to have snacks because of stress and boredom. Based on these facts, we planned to sell snacks to the office staffs as it would be a good chance to relieve them from a never enough time workday. For our third product, the Graffitist tee, our targeted customers were male students in our campus as the tee-shirts are designed for men. Most of the students in Taylor’s University pay close attention to the apparel trend as they have high fashion conscious. Hence, we think that our cool Korean designed tee-shirt should be able to attract a lot of male students especially those who were the insiders that recognized the brand.

The spending ability of our customers varied among one another, according to their occupations and family backgrounds. However, most of students here are from middle-high class family background, thus posing a relatively strong spending ability. In addition, most of the people would donate the money even though they’re not interested in our products due to their willingness to do charity deeds.

D. Competition Analysis

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ARIZONA GROUP

Our first competitor is Arizona which is grouped by Quantity Surveyor’s students, Chua Wei Jie, Lee Kim Thiam, Gan Jet Foong, and Lim Chern Yie.

They mainly focus on only one product, the Arizona drink imported from United States. Selling in 9 different favors, such as Iced Tea with Raspberry, Iced Tea with Lemon, Black and White Tea, Lemonade with Ginseng and Honey, Green Tea with Ginseng and Honey, Mucho Mango, Fruit Punch, Half Ice Tea& Half Green Tea ,and Half Ice Tea& Half Tropical at the price of RM10.00 for each can, they attracted many customers during the event. They also provided gaming service, which was the X-box game station. There were two selections of games, which were FIFA World Cup and Street Fighter with a charge of RM3.00 per round.

The Arizona drinks is a popular brand that having a quality guaranteed among all the youngster because they have many outlets at Malaysia, example Setia Walk, AEON, Jaya Grocer and etc. Besides, the FIFA World Cup 2014 was around the corner and in a hot fever, so it could be said that they are doing the right things at the right time as football enthusiasts love to have a chill drink while playing simulative games before the advent of FIFA.

The first vulnerability is that instead of refrigerator, they stored the drinks in an icebox that could not store the chill for long. Thus, the drinks turned warm after few hours. So they had to keep on refill the ice cubes to maintain the temperature. Secondly, they just stay at the stall and didn’t walk around to promote their drinks. This made them to lose a good opportunity to increase sales. Third, their group mates who were in charge of the gaming station were utilizing the free time to play games instead of promoting the products.

BREADPOP GROUP

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Our second competitor is Breadpop which is formed by Chong Yee Ching, Tay Jia Jian, Eunice Chan and Angeline Boo Lee Zhuang.

The main product they were sell was bread which was supplied from LE BREAD DAYS at SS2. They are selling four types of breads which were Bamboo Cranberry Cheese [RM5.00], Chocolate Black Bean [RM6.00], Sausage Danish [RM6.00], Mixed Danish [RM10.00]. Their second product is Tapping Tapir soda drinks with 5 different flavors, Orange & Jasmine, Pear & Lemongrass, Apple& Vanilla, Grapefruit & Chamomile and Hibiscus & Lime at the price of RM 10.00 per bottle. Besides, they were also selling popsicles from Potong Company in four flavors, which were Cherry Root Beer, Coco Banana, Watermelon Fizz and Coco Passion. Each of the popsicles was RM6.00.

Firstly, they were selling many unique authentic products with various flavors, which was an advantage to cater different taste buds. The breads that they sold were very tasty, especially the Bamboo Cranberry Cheese which was the best seller among all the products. A lot of customers would like to buy again after they have tried. Besides, the soda drinks also had a great sale during the event because the price was much cheaper than the bistro and lounge. Lastly, their popsicles had successfully caught the eyes of the passersby in this scorching hot weather, people would like to have something refreshing and chill, thus popsicle was the ideal choice. Besides, it is hard to find some handmade popsicles thus customers would like to have a try.

But they didn’t calculate the amount of breads that was needed for daily sale accurately, causing them to be unable to clear the stocks daily. Secondly, the price for the bread is comparatively high, and normally people won’t buy bread that cost about the price of a meal.

E. Product and Packaging

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Products

They are 4 types of products that we were selling. The main product was chocolate bars. We have 3 types of chocolate bars, Dark, Milk and Hazelnut chocolate. The second product was Graffitist T-shirt and the last product was snack packs. We allowed our customers to choose any three selections ranged from raisins and Japanese green peas in a price of RM5.

-Chocolate bars

These premium quality chocolate bars that we were selling were products from IKEA Sweden, made in Germany. After tasting our products personally, all of us were dumbfounded by the fine quality of the chocolate bars, especially the richness of cocoa and the comparatively less sweetened taste of the chocolates. Each bar can be broke into 24 small bite size chunks. The dark chocolate contains 60% cocoa, rich in antioxidants that girls would like it. The hazelnut chocolate was peppered with fresh chopped hazelnuts coated with a good proportion of milk chocolate, giving a nice crunch when you bite it. The milk chocolate is dense and rich with milk, slightly thicker and creamier compared to hazelnut chocolate, a perfect match for milk chocolate lovers. This is the sweetest chocolate among the three flavors. Besides the fine quality of the products, the reasons we opt for it is that it has a minimalistic design, handy and easy to store, a novelty among most as most of the students never tried Ikea’s chocolate before and also it comes in a very low price.

-Graffiti T- shirt

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This creatively designed Graffitist T-shirt is from Korea made with 100% premium cotton. There are 30 unique designs of Graffitist T-shirt in our stocks. These T-shirts are very popular among youngsters who embrace the non-mainstream and personal style in clothing. We got sponsor for the graffiti T-shirt by the supplier that come with RM0.00 cost. So, we were able to sell the T-shirt at a comparatively low price.

-Snack pack (3 raisins/ 2 raisin+ 1 green peas/ 1 raisins+ 2 green peas/ 3 green peas)

The snack pack that we were selling consisted of various selections ranged from Sunmaid California raisins and Japanese peas in different flavors. The raisins some in a mini handy paper box, stuffed with fresh, healthy and vitamins enriched raisins. Raisins can increase the daily intake of healthful fruit in a quick and easy way. The Kasugai wasabi green peas are green peas coated with wasabi, originally from Japan. The wasabi green peas are one of the most well-known Japanese snack, due to its crunchy and spicy flavors that excites your tastebuds.

Packaging

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Chocolate bars

The chocolate is originally packed in a shiny plastic wrapper with simple minimalistic design. It does not have any fancy image or font on the packaging but clearly states the type of chocolate according to the color scheme. Dark chocolate is in a dark brown wrapper, Milk in light brown wrapper and Hazelnut chocolate in with yellow wrapper.

Video link:

http://www.youtube.com/watch?v=ueU8ddOJOTg#t=88

F. Pricing

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Graffitist Tee

The Graffitist Tees are packed in transparent plastic packages to enable the customers to see the design easily and also to minimize our expenses on packaging.

Sunmaid Raisins

The raisins are originally packed in cute mini paper boxes which one can grab easily in hand. So, we use its original packaging as it is handy, simple and nice.

Japanese peas

The peas are originally packed in creative twisted pyramid plastic packages which also increased its volume to make it looks fuller. Thus, we did not make any alteration on its packaging.

1.Ikea Chocolate

We were selling our main product, Ikea’s chocolate bars at the price of RM 10.00 per bar. The cost of each bar is RM 3.33. Due to its fine quality and nice packaging, we decided to raise the price at a rate of three times the retail price to increase our profit. There are three flavors, which are Dark Chocolate (Black), Milk Chocolate (light brown) and Hazel Nut (Golden). We purchased the stock separately and in total we had purchased 270 bars of Ikea chocolate.

2. Raisin & Wasabi Green Bean

The raisins and wasabi green peas were purchased from Sunway Pyramid’s Aeon mall. The cost of one jumbo pack of Japanese peas, which consist 36 mini packs, is RM 11.90. On the other hand, the cost of one saving pack of raisin, which contains 12 small boxes, is RM 8.70. We stocked 3 jumbo packs of wasabi green bean and 4 saving packs of raisin in total. Hence, the total cost of raisin and wasabi are RM 70.50. We decided to sell any 3 packs of them randomly for RM 5.00. To further increase the sales, we allowed our customers to pick their

preferred flavors.

3. Graffitist Tee

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One of our team members, Alfred sponsored 20 Graffitist Tees. Hence, there was zero cost on it and we sold the T-shirt at RM 20.00 per piece. To further boost the sales, the more the customer purchase, the more discount we provided. For examples, one T-shirt was RM 20.00, two for RM 35 and three for RM 50.00.

G. Promotion

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Promotion informs consumers about our products and the details including the price, location, etc. Promotion is more than just advertising, and it includes several activities that are pivotal. The slogan we’ve used for this event would be ‘For Children, for Change, for Life’. This slogan conveys the message of leading an active lifestyle and provides better food supply to the malnourished children; change their life for a better tomorrow. In order to raise our target funds, our group had planned two different promotion methods to increase the sales.

The first was introducing our very own theme song “Do you wanna buy some Chocolates?”, inspired by the song ‘‘Do you Want to Build a Snowman’’ from the original Disney animation, Frozen which was a hit. We changed the lyrics into our self-adapted version, ‘Do you Want to Buy some Chocolate’. This method helps us to attract the crowds and most of them are willing to stop by and take a look of our products. Our promotion song mentioned the products we are selling, the flavors offered, the price, and also highlight our function, which is to do charity for the World Vision. Surprisingly while using this promotion method to persuade our customer, we came across a customer feedback which told us that she chooses to purchase our product because we tried so hard to sing this song for her. This was one of the best parts when doing this event.

Lyrics

The second method would be setting up a nice booth which clearly shows what we are selling. We drew a few A3 posters to explain the price and the

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products we are selling, and also the organization we are working for. This method had somehow attracted people to check out on the products we are selling due to the visual appearance and bright colors of the posters. Color is one of the most powerful methods of design. We believe that colors have the unique ability to attract shoppers.

Besides, we also gave out free samples of our product. By offering something free, people were more likely to give your business a try. And some of them would even buy your product because they felt embarrassed to taste without buying it.

Based on our experience in this charity drive event, nothing works better than approaching peoples ourselves. Instead of just waiting for the customers to come by, promote initiative would better much successful in persuading people. Hence, we need to act bravely together in order to achieve our target.

Video link :

http://www.youtube.com/watch?v=ueU8ddOJOTg#t=195

H. Sponsors

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Targeted sponsors

Ikea Malaysia Mika Sdn. Bhd.

RT Pastries Sdn. Bhd.

Tan Chee Siang

Reasons - Supplier of product- Financially strong as its annual revenue is ranked one of the highest - International conglomerate- Provide humanitarian aids and helps to children

- Supplier of product- Well-known for its Swiss Roll - Financially strong in term of local pastries industry as it has several branches.- Produce in bulk quantity

- Supplier of product- Well-known for its Hokkaido Puffs- Financially strong in term of local pastries industry as it has several branches.- Highly recommended by students from Taylor’s College Subang Jaya.

- Our group member- Has stocks of Graffitist Tees at home due to his personal small business in the past- Financially generous

Sponsorship methods and amount

No response Provide a 25% discount from retail price for all products.

Provide a 5% discount for all products, not confirmed yet as have to wait for the executive’s approval

Sponsored 20 brand new Graffitist Tees

Ways to approach

Phone calls, email and walk-in

Phone calls, email

Phone calls Face-to-face communication

I. Distribution

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The chocolates we were selling were from Ikea, we went there by car and bought in an amount of 100 bars each time. For the Japanese snacks and raisins, we got the supplies from Aeon, which is located at Sunway Pyramid. For the graphic tees, we got supplied by our own group member, Alfred. All the shirts will be kept in box and sent to campus by him every day during the charity drive event.

We delivered our products to customers by face to face service as it’s the most direct and also fastest way to promote and sell our products. For the chocolates, Japanese snacks and raisins, we sold them by walking around to ask almost everyone we saw. The feedback was quite good as they knew it was for charity. And for the graphic tees, we arranged them neatly on the table at our stall and promoted to the people who passed by our stall. We also brought along the donation box to ask for donations while walking around the campus to sell our products.

The way we used was utilizing small groups. We had 3 girls in a group to walk around and promote our products while another 2 guys to be in charge of the stall. With that, we were selling off our products faster and more effectively. We reached around 150 customers per day by walking around. And we sold approximately 40 bars of chocolates per day during the pre-sale week. During the event, we sold approximately 80 bars daily.

J. Green Measures

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The products we were selling are all environmentally friendly as most of them were food for example, chocolates, Japanese snacks and raisin without extra packaging and the need of electrical appliances to further reheat or store the food. For the food packaging, the chocolate was sealed in a plastic and it came with very handy size and packaging. Although the products were not clearly stated as environmentally-conscious productions, but we minimized the hazardous effects by not providing plastic bags to our customers when they bought our products as plastic bags are non-biodegradable and harmful to the environment. With the handy size and nicely sealed packaging, our customers can just put the chocolate into their bags or just hold in their hands after buying. For the Japanese snacks and raisin, they were both very small packaged and can be stored or kept easily as well. Hence, no plastic bags were needed to pack our products for the customers. Apart from that, the packaging of our items are all environmental-friendly as it can be recycled, for example plastics and paper boxes. Our customers can just throw the packaging into the recycle bins allocated around the campus after consumptions.

Besides, to reduce the carbon footprints and minimize the use of fuel, we stocked our products to the amount we needed so that we didn’t have to keep going back to our suppliers. We also practiced car-pooling with Jerry’s group as we went to restock. For example, Jerry and her members followed our car to SS2’s Le Bread Days when we were going to Ikea, since we will be using the same road, which is Lebuhraya Damansara Puchong.

We also made sure that we arranged neatly and cleaned up the surrounding of our stall every day after the event and dispose all the garbage and waste accordingly to the recycling bins.

Lastly, the donation box we used was also a recycled aluminum tin that we got from one of the member, Sharon’s house. Besides, we reused the cardboard boxes that were used to pack the computer components such as keyboards and mouse that we found being discarded in front of ICT labs. We used the keyboard boxes to store and display our chocolates as the sizes perfectly fit the bars and the mouse boxes to put our cash.

K. Human Resource Planning

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A clear organizational chart is important to direct and guide each member to do their respective tasks and responsibilities in order to distribute the workload evenly and ensure that the event is able to run smoothly. We distributed the posts according to personal’s strength and abilities. Besides, good teamwork is practiced by helping one another and challenges, problems and rewards are shared together.

Members Tasks

Sharon Lim Yu Jung - Approach, contact and communicate with the Charity Organization and suppliers

- Purchase and deliver products- Sell products- Finalize report

Lai Jia Yi - Design the booth and posters- Create the promotional video and songs- Sell products- Photograph and video recording

Tan Chee Xiang - Prepare receipts for customers- Accounting- Record all financial issues- Cleaning up

Kelvin Fong Jia Zheng - Do marketing research- Prepare marketing strategies- Set up the booth

Tan Chiew Nee - Distribute tasks- Sell products- Collect donations- Do report

L. Evaluation of Results

In the end of this charity drive, we had successfully hit the target of RM2500.00 net profit. It was the outcome from all the member’s hard work and contributions. All the money came from only donations and profit earned without any sponsorship. It was good that we had our strategies and techniques planned beforehand if not it wouldn’t be easy to hit our target in such short period.

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The thing that we did correctly was the way we approach people. During the pre-sales week, we faced some difficulties because we weren’t familiar with promoting products as it was our first time to run such event. We were being rejected by people and not many students were really interested in our products. But we tried our best and got better in communicating with our customers by our great manner and warm greetings. We adhered to the principal of inspiring people to do charity deeds instead of wanting them to buy our products as we believed when we touch people’s heart with sincerity, they would be willing to help. At last, we had successfully sold 270 bars of chocolates in five days. Besides, we had a good financial record all along the event, thus there were no financial issues aroused and things went smoothly. Moreover, we were opened minded and willing to accept other members’ opinions, which shared a good teamwork among the members.

Our mistake is we were not aware of that our items might be out of stock in the market. Initially, we planned to sell the organic fruit drinks from Ikea which would be a best seller but when we were there to purchase the item, we found that the items were temporarily out of stock. Thus, we had to abandon the plan and put full throttle on the chocolate bars. We took the risk that eventually ended up in a positive way, but in the future, we must take note of this situation and make sure that we can get the stock when needed. We also faced many problems during the charity drive week as we had many competitors around us at the same time. It was quite hard to attract the customer’s attention because the place was too crowded. In the end, we chose to stick to our old tactic which is walking around the campus to sell our products.

If were to have this event again, we would like to improve on our promoting skills and also communicating skills so that we can interact more with our customers and get a better sales than this time. Besides, we would like to sell more unique attractive fine foods to attract more customers instead of relying on few products as people might easily get bored with the same items.

Video link:

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http://www.youtube.com/watch?v=ueU8ddOJOTg#t=373

M. Appendix

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1. Charity Drive Proposal for sponsorships : Mika Sdn. Bhd.

A. Background on education institution

Name of university :Taylor’s University Lakeside Campus, School of Architecture, Building and Design, Foundation in Natural and Built Environment

Nature of fundraising efforts : Run a mock business venture by selling products at Taylor’s University. 100% of the profit earned will be channeled to Charity Organization (World Vision Malaysia).

B. The objective of our Charity Drive

Objective: Understand the social and ethical responsibilities of a business Helping to make a difference in the life of the underprivileged ones and

make the world a better place. To encourage students to think creatively and strategically in the course of

starting and running a business. Understand the roles of human resources management, marketing,

operations and finance in business.

Target audience:Students, lecturers and parents mainly from Taylor’s University.

Venue & time Venue : Taylor’s University Lakeside CampusTime : 2nd – 6th May 2014

Publicity effort:Advertise through social platform and personally advertising at our university compound before the week.

Funding source:Our funding source will be coming from the profit earned throughout the Charity Drive Project

Achievable target/results:A net gross profit of RM2500.

Beneficiaries involved:

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World Vision Malaysia

Expected amount to be donated to each beneficiary:RM2500

Sales channel:Sell our products directly at our booth in front of students’ life center, Taylor’s University Lakeside Campus.

Sales item:a. Ikea Food

Dark, Milk and Hazelnut Chocolate Bars, Packaged Organic Fruit Juiceb. Swiss Rolls c. Secret Polaroid

c. Proposed quotation

Item Quantity

Charcoal Milk Swiss Roll 40

Pandan Swiss Roll 20

Strawberry Swiss Roll 20

Matcha Red Bean Swiss Roll 20

2. Email for Ikea

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Subject: Request for Sponsorship for Charity DriveFrom: sharon.yujung@live.comDate: Fri, 9 May 2014 11:17:26 +0800To: customerservice.ikeamy@ikano.asia, zuraidah.rahman@ikano.asia, cornelis.vleugel@ikano.asia

To whom may concern,

Request for Sponsorship for Charity Drive

We are students from Taylor's University Lakeside Campus, School of Architecture, Building and Design, currently studying Foundation in Natural and BuIlt Environment. We are having a Charity Drive from 2nd to 6th of June, 2014 under our Business subject. All profits gained will be channeled to World Vision Malaysia to make a difference in the life of the underprivileged.

Drive by the principle of "while making good business while being a good business" we believe Ikea is our ideal sponsor for our charity drive. We would like to seek for Ikea's authority to sell Ikea's Food such as meatballs, lingonberry drink and milk chocolate bar, dark chocolate bar and hazelnut chocolate bar. Thus, we would like to seek for your kind attention to sponsor us the products and inquire about the amount of products IKEA can sponsor us or discount on selected items that Ikea could provide.

For any inquiries, please contact Sharon Lim (0198848535) or email me at sharon.yujung@live.com. We attached an attachment of the authority letter from our beneficiary, World Vision Malaysia for your information.

Thank you very much for your kind attention. We look forward for a favorable reply at your soonest convenient.

Sincerely, Sharon Lim Yu JungLeader of group 1, FNBE July 2013 Business Charity Drive

3. Receipts

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Cash Receipts of Purchasing Ikea’s Chocolate Bars

Credit Card Receipt of Purchasing

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Cash Receipt of Purchasing Raisins and Japanese Snacks

Ikea’s Chocolate bars

4. Acknowledgement Letter from World Vision

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Cash Receipt of Purchasing Receipt Books

5. Receipt from world Vision

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N. References

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Davis, B. (2009, July 3). 15 Powerful reasons to eat chocolate. . Retrieved June 17, 2014, from http://www.theinternetchef.biz/29/15-powerful-reasons-to-eat-chocolate

Magee, E. (2009, Aug 22). 12 portable goodies that will keep you away from the vending machine. . Retrieved June 17, 2014, from http://www.webmd.com/diet/features/easy-healthy-workplace-snacks

Yin, L. S. (2010, Sept 5). How do colors affect purchases?. . Retrieved June 17, 2014, from http://blog.kissmetrics.com/color-psychology/?wide=1

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