Business charity drive report

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN Centre for Modern Architecture Studies in Southeast Asia

Foundation of Natural & Built Environments (FNBE)

Introduction to Business [BUSF0103] Lecturer: Chang Jau Ho

Final Project: Charity Drive Event

30% Group Work + 10% Individual

Submission: Friday, 20th June 2014

Member List: Tan Ling Rong 0315645 Ken Wong Chun Thim 0315534 Ng Yuheng 0315476 Lim Jern Jack 0317139

Table of Contents

Title Page

a. Executive Summary 1

b. Objectives 2

c. Target Market 3

d. Competition Analysis 4

e. Product and Packaging 5

f. Pricing 6

g. Promotion 7

h. Sponsors 8

i. Distribution 9

j. Green Measures 10

k. Human Resources Planning 11

l. Evaluation of Results 12 - 13

m. Appendix 14

n. Reference 15

a. Executive Summary This is one of the most energy and time straining project as it expect us to deliver

the results in terms of income instead of normal coursework or essays. But we gained

an immense amount of experience. To begin with, this project provides us the

opportunity to contribute to society. We chose SPCA because we want to help stray

animals as most of our group members have pets at home. We came up with a few

ideas of our product and it is mainly targeted at Taylor’s students as they are our main

market. To deal with this, we make use of the hot weather and sell chilled fruit puddings.

We also sell snack seaweeds to students. It would be tempting to have some bites while

having leisure time with their friends. We also set up computer gaming service as the

demand for it is high because Dota 2 is a really famous game and students would be

challenged to play with strangers. SPCA also provided us with T-shirts, notebooks and

car stickers to sell. We manage to sell it out almost all except for 4 XL T-shirts. We

implemented several marketing strategies which includes psychological marketing and

selling our products at different places to avoid competitors. We discussed our pricing

and also adjusted based on our friend’s review. During the charity drive event, we

encountered fierce competition from other groups but luckily we sold our products early

and had achieved 75% of the target, we focus on having fun and the learning process

instead of stressing ourselves to meet the target. Last but not least, we earned

RM1835.25 in the course of 3 weeks which is RM164.75 less than the targeted amount

but we are satisfied with it as we did a good cause.

b. Objectives The Prevention of Cruelty to Animals, Selangor, Malaysia (SPCA Selangor) is the

charity organization that we chose. This is because it is a trustworthy animal welfare

organization, which provides adoption program, investigation of cruelty reports, humane

education, assistance to community animal caregivers and run a dedicated, low cost

spray or neuter clinic. And more importantly, it is a well-respected non-profit

organization that is gaining popularity in Selangor. Besides, we knew that this

organization needs more funds to upgrade their facilities, build shelter and buy medicine

for the cats and dogs.

Thus in this final project, we had to raise fund of a minimum of RM2000 for SPCA

as our target. We targeted to sell hundred cups of puddings, hundred packs of seaweed

snacks, 20 T-shirts, 20 notebooks, 30 car stickers, and setting up a computer game

station.

The YouTube link of our video: http://www.youtube.com/watch?v=7jA7wehOjpY&feature=youtu.be

c. Target Market For our target market, we aimed to sell our products to students and lecturers

within the campus as our main customers, and also other universities to increase our

profit. Our customers who are students and lecturers will usually pass-by the location in

front of Student Life Centre before going to or from the Syopz Mall. They would normally

be attracted by the cooling pudding as a snack and buy some merchandises of SPCA

because the designs of the car stickers and t-shirts are quite nice. However, the

spending power of these customers was comparably high because they have a good

financial background and higher standard of lifestyle. We hoped to sell more to female

customers, as they liked the cute animal designs, and dragon fruit flavoured pudding.

During the 3rd and 4th day, we opened computer gaming service which is targeted

directly at gamers in Taylors. We challenge the passer-by with psychological marketing

as man is a creature of ego, they are willing to pay to prove themselves in front of their

social groups by playing and getting high scores at our booth.

d. Competition Analysis

Who are they? Akmal Jamal’s Group Chong Yee Ching’s Group

What are they selling?

They are selling t-shirts and video game services. The t-shirts are sold at RM25 and the video games at RM3. The products they sell are similar to us.

They are selling gourmet ice creams at RM5 and carbonated drinks in glass bottles at RM10. They are also selling variety of breads ranging from RM4 to RM 7.

What are their strength and vulnerabilities?

Their group’s strength is they have a wide variety of games compared to us. We only have one game available for play which is DOTA 2. But we made up for our weaknesses by using this one game which is very popular among students. Besides that, A.J’s group weakness is they only sell one type of t-shirt design. Compared to us, we have a variety of designs to choose from.

Their group’s strength is they have unique product that is uncommon in normal commercial markets. It arouses curiosity among passer-by as it is special and people want to try something different. Their only weakness is they have to take risk and invest a large amount of capital in order to kick start their business. This may inquire loss if unhandled properly.

d) Why would/do their customers buy from them?

Customers would pay for their video game service as they have a variety of games to choose from. Most people would choose their service because they are using a PS3 console whereas we are using computers. Since not everyone has a PS3 console at home, they will most likely pay to have a chance play. As for their t-shirts, the one reason customers might buy from them and not us is the design of the t-shirt. Their t-shirt is catered more towards the students in the university as their design is based on Taylor’s University. Our t-shirts are sponsored by SPCA therefore the designs are not marketed towards students in the university.

Taylor’s students are mostly from upper class therefore they are well suited to leisure lifestyle. They are willing to pay to enjoy something out of the blue to fulfill their pleasure. Besides that, Jerry’s product are all exotic and sold at appropriate prices, they also implement “Happy Hour” which they will give discount to customers at certain hours to clear out their stocks. This is a very good strategy to attract customers to buy their product.

e. Product and Packaging

Products and Services Features and Benefits Packaging Customer Attraction Analysis

Dota 2 gaming service Relieves stress among students, meet new friends from tournament

Mostly male students who wants to challenge other players

Fruit Puding Refreshing and cools down body on hot days

Mostly female students and staffs too

Tao Kae Noi Seaweed Comes in many flavours, perfect snacks for leisure time

Mostly students in large groups or students who are going to classes, they want to have some snack before class

SPCA T-shirts Made of high quality cotton and comes in different design, serves to create love animal awareness campaign

Mostly our friends and staffs around campus due to its low demand and popularity

SPCA Notebooks Features a cute designed cover page, students can use it to take notes in class

Mostly female students

SPCA Car Stickers Creates awareness of start caring about animals around us and help them whenever we got the chance

One of the best-selling products due to its attractive design and right price


f. Pricing

Products Unit Selling Price

(per unit)

Product Cost Price (per unit)

Product Popularity Strategies in Price Control

DOTA 2 gaming service RM 5

RM 0.00

Popular among male customers

Although other booths set their price at RM3 per game, we dare to hike our price up to RM5 due to our successful marketing

Fruit Pudding RM 5

RM 1.26

Popular among female students because of its attractive pink colour dragon fruit content

We sell our fruit pudding at RM5, we agreed that although it was quite far-fetched but with convincing sales talk we manage to sold out all

Seaweed RM 5

RM 3.50

Popular among students who are sitting down in a social group having leisure time

RM5 is our price but we only earn 43% more from the cost which is unfeasible but if we hike up the price customers would reject it

SPCA T-shirt RM 25

Sponsored

T-shirt are the hardest to sell, but we manage to sell it to our friends and also some staffs in Taylors

The price of SPCA merchandise are all preset by SPCA

SPCA notebook RM 10

Sponsored

The cute design of these notebooks garner a lot of request from female students


SPCA car sticker RM 5

Sponsored

Car stickers is a fast selling product as it is cheap and also it shows support for SPCA


g. Promotion

a) Our marketing message is “DOTA FOR LIFE” which implicates DOTA 2 as a game in

which gamers will treat it as part of their life but it actually has a much deeper meaning.

“DOTA FOR LIFE” means by playing this game “DOTA” the players will be able to enjoy

the game while indirectly contributes to the welfare of stray animals. The money they

paid to play will be channeled to SPCA which will improve the lives of rescued animals

by providing them with food, medicine and shelter to live in. Thus the message “DOTA

FOR LIFE” brings out the cause we want to do.

b) Our 2 main tools for promoting are face-to-face conversations and giving out

pamphlets from SPCA. Our business is a small startup business which requires face-to-

face marketing in order to promote our product. It is because we don’t have the capital

and resources to advertise it in other medias, we also don’t have the influence and

recognition by the crowds thus approaching people one by one is our best course of

action. SPCA had provided us pamphlets which can be given freely to our customers,

this boosted our donations as the people trust us and knows we are reliable and the

money they donated will be channeled to SPCA. It saves us a lot of time explaining to

the customers of our cause.

c) We also researched marketing strategies online and executed some of them. These

include selling many types of products to cater customers of different needs and also

psychological marketing which we manipulate the human ego psychology to make

gamers come pouring in to our booth. We implemented high score boards and also

“Challenge the game master” campaign to tempt the passer-by to fork out their money

and show off their ability.


h. Sponsors

We have approached several potential sponsors and requested for sponsorship

and most of them that we have contacted are from corporate entities. For example, we

have contacted more than 10 potential sponsors but none of them responded, some of

them were Walls, Kings, Vitagen, Anlene, Eco Brown, Star, F&N beverage, Tutti Frutti

and many more. The ones that responded very spontaneously were F&N and Tutti Frutti

and we put high hopes towards them that were potentially willing to sponsor us but we

were let down after weeks and weeks under the abyss and we did not get a single reply

from them. The reason why we target them is because we were confident that with the

name of SPCA organization it could fish some sponsorship so that it could lessen our

burden during our charity drive. Besides most of the potential sponsor that we have

contacted are suppliers of our products which were initially ice cream sandwich but

eventually we were turned down several times and we decided that this ice cream

sandwich idea might work if we have sponsorship because our cost for our ingredients

could be covered. We approached our sponsors by contacting their customer service

hotline and asked whether we could speak to the person in charge of any sponsorship

and then when we were asked to send our proposal to them for confirmation, we sent

our authorization letter and proposal from Taylor’s University via email. We personally

never get the chance to meet any of our potential sponsor in person because none of

them agreed to sponsor us any amount and we opt to earn every single penny by

ourselves, it might seem to be a big challenge but our group still manage to pull it off

with a strategic business plan.

i. Distribution The products we sold were homemade fruit pudding made by Tan Ling Rong,

which had very little costs and another business we did was a “Dota 2 one versus one”

tournament which involved no costs at all. Besides, because we were doing this for

SPCA, one of the merchandiser supplied us with their inventories such as notebooks,

car stickers, T-shirts and many more. We were told that these inventories could be used

to increase our profit as it would surely attract animal lovers’ attention and raise the

convincing power while we ask for donations. Ling Rong got his fruit pudding

ingredients by going to the Giant Hypermarket nearby his house, which coincidently had

a promotion going on as well which resulted in the reduction of cost. We provided our

own transportation because everyone in the group has a car that could safely drive us

to the designated location.

We sold our products via face-to-face technique so that it was harder for them to

reject because when customers were approached, there is a higher convincing power

for customers to buy our products. Besides, we also went to other universities and

campus to sell our products so that we could widen our business area and it really did

increase our profit by a huge amount. The other reason why we did so was because we

realised that there were too many competitors roaming around Taylor’s University and

customers around the campus were getting annoyed by hordes of students approaching

them asking for donation and so we opted to other universities and campus.

Throughout the charity week, we decided to officially launch our “Dota 2 - 1

versus 1” championship and all the money collected will be counted as our profit as well.

We noticed it was not a bad idea indeed because it required 0 cost as well. Students

lined up and crowded our store to witness the action between challengers and chairs in

front of the computer were occupied all the time. The reason why we first thought of this

idea was because we knew how famous Esports (Electronic Sports) were among

students and it would attract crowd to our stores.

j. Green Measures

Our products are entirely environmental friendly, the reason why is because we

used very little amount of water and other natural resources. Our product’s main

ingredients are gelatine, natural colouring, some herbs and some fruits. It did not

corrupt the natural surrounding or deplete any natural resources. Besides, our product

packaging was environmental friendly as well, we used small recyclable plastic cups

and fill them with our herbal jelly and beside our stall we placed rubbish bags that the

purpose of these rubbish bags was to collect those plastic cups and recycled them. As

for carbon footprints, we left completely zero carbon footprints behind as for our

distribution method is via face-to-face delivery.

As for our Dota 2 tournament, we usually launched it during peak hours where

many students will pass-by our booth and gather as much people as possible in order to

attract customers. We tried to save as much electricity as possible by “Sleeping” the

computer whenever we could, because by “Sleeping” it, it consumed less power and

saved electricity in return. But there were days when people kept on sitting in front of

the computer non-stop and we had no chance to “Sleep” the computer at all which left

us no choice but to run the business as usual.

Besides that, the decorations at our booth are all recycled cardboards and

papers we salvaged from architecture studio. We also brought a mini whiteboard and

write on it to prevent usage of papers and manila cards as our high score board.

k. Human Resources Planning

Organizational Chart

Project Manager

In charge of all business activity and monitor the

business’ overall performance

Sales

In charge of marketing the product and boost the amount of product

sales in order to improve the business overall sale.

Accountant

Responsible for financial transactions and related

issues of business. Holds full authority and access to the money.

Advertising

In charge of promoting and advertise the

product through different media or channels in order to let unaware

potential customers to be aware about our

business products.

Tan Ling Rong (Leader)

Ken Wong Chun Thim

(Assistant) Tan Ling Rong plans and organize the products that should be sold and monitors business performance, whereas Ken assist Ling Rong in organizing and planning of the business.

Ng Yuheng

Ken Wong Chun Thim Yuheng and Ken plans and decide how to raise the amount of sales by coming up the idea of psychological marketing. This strategy significantly raised our sales and increase our profit as well.

Ng Yuheng

Yuheng went to online and advertise the business through social media via Facebook, Twitter and Instagram. Besides, Yuheng also contacted several potential sponsors in order to advertise and request for sponsorship but eventually none of them responded which was quite disappointing but ultimately we manage to sum up a total amount which is significantly close to our target amount which was RM1835.25

Lim Jern Jack Jack distributes all the receipts and regularly monitors our profit and financial issues. Besides, Jack also monitors our costs spent on products and tries to reduce it to a minimum amount to increase our profit as well.

Executive Leader of the departments

l. Evaluation of Results Income Statement of Group A Charity Drive Event

Revenue

Sales

$1,845 Less: Cost of Goods Sold

$476

Gross Profit

$1,369 Add: Donations

$481.25

Adjusted Gross Profit

$1,850.25

Less: Operating Expenses Receipt Books $15

Total Operating Expenses

$15

Net Profit

$1,835.25

Pudding Seaweed Tshirt Notebook Car sticker Dota

Selling Price $5.00 $5.00 $25.00 $10.00 $5.00 $5.00

Units 100 100 16 20 30 19

Total $500.00 $500.00 $400.00 $200.00 $150.00 $95.00

Pudding Seaweed Tshirt Notebook Car sticker Dota Cost Price $1.26 $3.50 Sponsored Sponsored Sponsored $0.00

Units 100 100 20 20 30 -‐

Total $126.00 $350.00 $500.00 $200.00 $300.00 -‐

In conclusion, we gained majority of our profit by selling SPCA’s merchandise such as T-shirts, notebooks and car stickers. Besides, we sold additional products to increase our profit and the items sold were Pudding and Seaweed. Easier to be said, the amount we got from selling our own products after the cost have been deducted was RM374.00 from Pudding, RM150.00 from Seaweed, RM95 from gaming and RM750.00 from SPCA’s merchandises. Summing up the amount we’ve collected through donations of RM481.25 and deducting costs for receipt book, we’ve collected a total amount of RM1835.25.

What we did right was we started our business fairly early, two weeks before the charity drive event, the reason why we did so was to lessen our burden and stress during the charity drive week because we know there will be tons of competitors lurking around and customers would avoid people who are selling stuffs or asking donations. We went around the campus trying to sell as much as we can two weeks before the charity drive and it really did help us a lot because by the day the charity drive week started, we have already accumulate the amount near to our target which is RM1500. Besides hunting customers around campus, we also went to other universities such a Sunway University, INTI College and walk around SS15 just to sell our products and collect donation from the students there. The hard work paid off and we were able to relax during the charity drive week because we were already so close to our target. Regarding to what we did wrong was, we forgot about our costs and expenses that had to be deducted. After accumulating the total amount, we forgot to subtract our cost from the amount and we thought that we have done everything until one of our member Ken Wong Chun Thim realized that we still have not deduct our cost from our collected amount. Therefore after deducting the costs and other expenses, we were lacking some of the amount that had to be filled until we have reached the target but the charity drive event has seem to be over and there was nothing we can do. Next mistake that we have done was, we contacted all kinds of companies and corporate for donations and sponsorship but we have neglected and overlooked the small corporate companies that would be willing to help us otherwise. We were so desperate for huge amount of sponsorship that we only approach the big daddy but neglect the underdogs. We got the advice from our seniors that we should contact small corporate companies because they were the ones the needed to be advertised not the big corporate companies that has their names already established and well known. There were many more mistakes and flaws that we have done but we could have listed all of them. But from the bright side, we have also done some wise and right decision such as starting early and applying zero costs businesses. If we were given one more chance, we would implement the same strategy but starting at even earlier before the charity drive event to avoid competitors at all cost.


m. Appendix

Donation receipt The total amount is RM1835.25, RM750 from SPCA merchandise sale and RM1085.25 from donation and our product sale deduct cost. The manager listed the money we earned from our sales product as donation though Net profit of RM619 through gaming, pudding and seaweeds Another RM481.25 from donation Additional cost of RM15 to be deducted from the sum of both earnings to get RM1085.25

Sales Receipt Submitted hardcopy

Reference Marketing and product strategies for growth. An Enterprise Rent-A-Car case study.

(n.d.). Diversification. Retrieved June 19, 2014, from

http://businesscasestudies.co.uk/enterprise-rent-a-car/marketing-and-product-

strategies-for-growth/diversification.html

SPCA Selangor, Malaysia. (n.d.). SPCA Selangor, Malaysia. Retrieved June 19, 2014,

from http://www.spca.org.my/v51/

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Business charity drive report