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INTRODUCTION TO BUSINESS FINAL PROJECT CHARITY DRIVE REPORT MUSTAQIM CHOO (0319879) NURINA AIDA (0320035)

Introduction to business final

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Page 1: Introduction to business final

INTRODUCTION TO BUSINESS

FINAL PROJECT

CHARITY DRIVE REPORT

MUSTAQIM CHOO (0319879)

NURINA AIDA (0320035)

WENG CHUAN (0319951)

SABA SANEI (0317822)

Page 2: Introduction to business final

CONTENTS

NO CONTENTS PAGE1 OBJECTIVES 22 TARGET MARKET 33 COMPETITION ANALYSIS 4 - 54 PRODUCT AND PACKAGING 6 - 95 PRICING 106 PROMOTION 11 - 127 SPONSORS AND DONATIONS 138 DISTRIBUTION 149 GREEN MEASURES 15

10 HUMAN RESOURCE PLANNING 16 - 1711 EVALUATION OF RESULTS 18 - 1912 SUMMARY 2013 APPENDIX 21

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OBJECTIVES

The main objective of our charity drive event is to collect money for charity organization. We chose to donate all our profits to CADS Enhancement Centre. CADS is an acronym for “Cerebral Palsy, Autism-ADHD, Down Syndrome-Dyslexia, Slow Learners.” This organization was formed in 2003 by a group of parents, academicians and individuals with interests in special needs children development. They also provide the necessary counseling and support group for the family and care-givers of CADS children.

We chose this specific charity organization firstly because of our love towards children and we wanted to show our support towards their mission and vision which is to develop and maximize the special children’s potentials so that they will eventually grow into independent, productive members of the society and are respected by the community. This organization is a bit different with other organizations because they actually created a school for these types of children and give them the full and right education that they need.

Our target for the amount of donation at the beginning was RM1000 but we increased it slightly to RM1200 in the second day of the charity drive event due to the tons of donation that we have collected in the first day. Our plan was to get donation from the people within our campus and other campuses as much as RM500 and another RM700 will be collected from our friends and family. We planned to get at least one sponsor for the products that we sell. For sales, our target was to get a profit of RM1200 because we wanted to achieve a total amount of RM2500 and above for both donation and sales if possible.

The video link: https://www.facebook.com/l.php?u=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3D9kIoLs16UKk%26feature

%3Dyoutu.be&h=dAQEdiXLn

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TARGET MARKET

Our target customers were mainly the students because we opened three booths in 3 different campuses which were in Taylor’s Lakeside, Kolej Risda in Alor Gajah and University Putra Malaysia so the amount of students were very high in total. There were approximately 700 students in Taylor’s Lakeside, 1000 students in Kolej Risda and 700 students in Universiti Putra Malaysia during that charity drive event week. The products that we sold were custom shirts and we provided a photo booth service as well. Since most of the students are teenagers, the possibilities of them being attracted to buy our shirts were very high. Besides that, teenagers love to take pictures nowadays so the photo booth would be very popular among them. Other than that, our shirts are universal products and also unisex so our customers target would be multicultural students including all genders. The second biggest target was the students who have high interest in fashion in those three places.

Usually, students are in need of cheap and affordable shirts because some of them are not financially stabilized and most of them want to save money. At the same time, they would want fashionable shirts as well so our shirts would definitely fill their wants and needs.

These targeted customers have high spending powers especially students from Taylor’s because Taylor’s is a private university so most of the students came from rich families and tend to have tons of money. In addition, our shirts are quite cheap so the shirts are very affordable to them.

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COMPETITION ANALYSIS

Our 2 biggest competitors were Christina’s Group and Naim’s Group. Both of the booths were quite near to ours so there was already a bit of competition there. Christina’s Group was selling horoscope badges while Naim’s Group was selling dresses and providing video game station.

For Christina’s Group, one of their strengths is that since their products are badges, they are compact and easy to place and wear due to they’re small sizes. They are also able to be put anywhere like for example, on shirts, bags and pencil cases. Other than that, they are horoscope badges so they come with a lot of choices. While on their weakness side, the badges are not too pricey. People can buy them but it does not contribute that much to the charity in terms of profits.

For Naim’s Group, their strengths are that they have a fun theme because they provide a video game station. There would be less hassle because there is no need for big preparation and less time. Its game, so all they need is a game console and a tv. Unfortunately, their weaknesses would be that dresses are only targeting girls so they would not have a lot of male customers. Other than that, video games are limited to only a few selection of games and mostly only guys would be attracted to video games.

Overall, customers would possibly buy from them because of the badges’ prices are quite cheap and all of them are custom made so customers cannot find the badges anywhere else. Furthermore, video games would attract a lot of customers because it gives them entertainment and most of the students could release their stress by playing video games.

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Christina’s Group’s Booth

Naim’s Group’s Booth

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PRODUCT AND PACKAGING

At our booth, we sold DIY shirts and we provided a photo booth service. The total amount of shirts that we made was 150 with sizes ranging from S to L. The type of material of the shirts is 100% cotton. They are unisex so girls and guys can wear them. The shirts were made by ourselves. We used fabric dye and create a few types of patterns and designs on the shirts with those dyes. The customers can also order a custom made shirt especially for them if they want to according to the designs, sizes and colors that they want.

For the photo booth service, we did the backdrop by ourselves with cloth and color papers. The customers can take their pictures there and have them printed instantly on a photo strip.

One of the benefits of our product is that they are custom made which means that you cannot find them anywhere else and the customers can order the shirts according to their own preferences. Besides that, tie dye shirts are in trend and very popular nowadays among all ages. The shirts also came in different sizes and designs so the customers have a lot of choices and options. The shirts are also affordable and worth the price. Compared to food, customers can keep the shirts for a long time.

For the photo booth service, it is very different and unique because our booth was the only one who provided such service so there was no competition in that type of service. Nowadays, photo booth is also very popular and teenagers love taking pictures especially when there is a proper background and you can print those pictures instantly.

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For packaging, we did not use any plastics or bags. Instead, we used strings to tie the shirts and just gave them to the customers as it is. We decided to use strings because they are eco-friendly and they are recyclable and reusable items. The customers can also carry the shirts easily by holding onto the strings. This type of packaging would definitely attract the customers because it is simple yet unique and it is more to a hipster style which is really in trend right now. They can also recycle and reuse the strings if they want.

The video link: https://www.facebook.com/l.php?u=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DDEUUgagV2LI%26feature

%3Dyoutu.be&h=6AQEaFpSO

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Our booth

Our products which are the DIY shirts

The photo booth service

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The packaging of our product

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PRICING

For the pricing, the selling price for each unit of shirt would be RM15 while the selling price for one photo strip for the photo booth is RM5.

The cost price of each plain shirt was RM5 so it was a total of RM750 since there was 150 shirts, and all of them were fully sponsored. The cost price of each bottle of fabric dye was RM5 and we used 5 different colors so the total cost would be RM25. All of fabric dyes were sponsored as well. Lastly, the cost price of each photo strip was RM1.

Our products and services were very attractive and quite popular due to the trend and styles nowadays so we had a few thoughts on justifying a higher price like for example, increase the price of the shirt by RM2 so that it would be RM17 each but due to competitions that we have around, we did not change the price.

We had a bit of difficulties in selling our products in campus at first, so we came up with a strategy to open two other booths in different places as well to gain more customers.

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PROMOTIONS

Our main marketing message was “Spend Less for More” because our shirts are quite cheap and affordable for everyone. So basically, the customers would just have to pay RM15 for a shirt that looks like it is worth RM30.

The main tools that we used to promote our products are digitally-made posters, instagram, sponsorship letters, telephone calls and face-to-face conversations. We also did a promotion of buying two shirts for RM25 instead of RM30. People intend to buy more when we offer cheaper prices for larger quantities because it would save their money. We did posters because they are more visible to people around us and people intend to be attracted to colorful posters. Instagram is one of the most popular social network nowadays and almost everyone has it so by doing an instagram account, our products will be known quickly and people can easily get the information about our products on that website. With instagram, we can connect with our customers easily and efficiently. We did a few sponsorship letters so that would help in spreading the info about our products too. We also promote our products by making calls to our friends and families and talking to some of them in person because it is much easier to explain and do business in these ways.

The link to our video:

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Posters of our products

Poster of our photo booth Our instagram account

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SPONSORS AND DONATIONS

A) Product sponsorship – Mr.Feekry Choo

We have approached Mustaqim Choo’s father, which is Mr. Feekry Choo for sponsorship for our charity drive. The reason we have approached him is because he is financially generous and is also very active in doing charity. Other than that, Mustaqim choo knows him personally and plus, Mr. Feekry Choo is an active supporter of our cause which is the CADS centre. We have requested sponsorship in products. In conjunction to that, for the product sponsorship we requested a total of 150 plain white T-shirts in various sizes. We first approached him through a phone call to make the request. Once, he agreed, we set a meeting date and venue to meet face to face and discuss the matter in more detail.

B) Product Sponsorship – Mr.Ghizan Bin Saleh

We have approached Nurina Aida’s father, which is Mr. Ghizan Bin Saleh for sponsorship for our charity drive. The reason we have decided to approach him is because he is fairly active in doing charity and wants to be more active, he believes that by doing this he can be more active in doing charity. Besides that, since Nurina Aida is Mr. Ghizan’s daughter, she knows him personally. We have requested sponsorship from Mr. Ghizan in the form of products. Related to that, we requested sponsorship for the fabric dyes and promotional expenses. Also, we first approached him through a phone call to make the request. Once Mr. Ghizan agreed, we set a meeting date and venue to meet face to face and discuss the matter in more detail.

C) Donations – Family/Friends/Staff/Students

We had collected a total amount of RM1100 for donations from our families, friends, the staff and students in three campuses.

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DISTRIBUTION

We used a car as the transportation for carrying our products to all three booths which were located in Taylor’s Lakeside campus, Kolej Risda campus and Universiti Putra Malaysia campus. We also walked around SS15 and Sunway College promoting and selling our products. For those who ordered online via instagram, texts and phone calls, we had to drive to them and handed them the products ourselves. We did not want to use the posting service because we wanted to save money and time as posting takes up to 2-3 days.

Our group was one of the earliest booths that was opened during the charity drive event and by 10 o’clock, our booth was already set up and ready to sell. At our booth, none of our customers had to wait for their products because we already placed every products at our booth so whatever they wanted was already there while for the customers who ordered online, they had to wait for a day for us to send it directly to them. We also had a few orders for the custom shirts so the ordered ones took about 2 days to make so those customers who ordered had to wait until we are finished making them.

We were able to reach a total of 82 customers at our booth and also online. There were approximately 10-15 customers per day including online. For donations, there were about 15-20 donators per day so in total, there were around 80 during the whole charity drive week.

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GREEN MEASURES

In this project, we are completely aware of the fact that green measures are crucial in efforts of reducing our carbon footprints and saving Mother Nature. In order to do that we have put in our best efforts. Firstly, all our products including the shirts and fabric dyes are made from natural and recyclable material that contains no harmful chemicals whatsoever. Continuously, we also decided to not use plastic bags to reduce the landfill that is haunting our country today but instead be used parcel strings to creatively tie the shirt and sell it to the customer. In conjunction to that, we also went green with our transportation of products which is a hybrid car owned by Nurina Aida. The benefits of driving a hybrid car are totally endless, you can save the environment as well as save money on petrol expenses, other than that it is also quieter compared to normal cars. During the event, we did not use any water and also used a small amount of electricity only for the photo printer that is used for the photo booth. Related to that, the materials we used for the background of the photo booth is 100% recyclable and reusable. We have put in our best efforts in reducing our carbon footprints and helping Mother Nature regain its beauty like never before.

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HUMAN RESOURCE PLANNING

Jadyn Choo (Team Leader): Project Manager

The person in charge of handling the overall project giving instruction to the other members to enable to them to handle their own position responsibility and carry out their task carefully, so that the running of the project is smooth.

Nurina Aida (Assistance): Sales Executive, Accountant

The person who in charge of introducing our selling products, presenting the product to the customers and manage the activities of sales subordinates as well as organize the sales. A part from that, she also the head of the design product and also in charge the flow of the money as the accountant and keep track of the receipts in order to keep track of the profit earning.

Saba Sanei (Member): Sales Assistance/ Promoter/ Designer

The person in charge of selling the products and promoting it. Besides that she is also part of the group members who design the products.

Poh Weng Chuan (member): Sales Assistance/ Promoter/ Designer

The person in charge of selling the products and promoting it. Besides that he is also part of the group members who design the products.

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ORGANIZATIONAL CHART

Sales members

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Le’ Mood Shirt Booth

Jadyn Choo: Project Manager Nurina Aida: Sales executive/Accountant

Saba Sanei: Sales Assistance/Promoter/Designer

Poh Weng Chuan: Sales Assistance/Promoter/Designer

Profits/MoneyClients/Customers

Products

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1415 0

1415 1100 2515

EVALUATION OF RESULTS

PROFIT AND LOSS REPORT

Income Statement of Our Group For the Charity Drive Event

RevenueSales…………………………………………………………………………….Less: Cost of Goods Sold…………………………………………………Gross Profit………………………………………………………………….Add: Donations…………………………………………………………….Adjusted Gross Profit……………………………………………………

Less: Operating ExpensesPromotional Expenses……………………………….. 0Total Operating Expenses………………………….. 0

Net Profit……………………………………………………………………. 2515

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First of all, one of the right thing we did was that we promote our products online and because of that, we got tons of orders. Besides that, we opened two other booths at different places so we gain a lot more customers. Although the sales went well, we did quite a few mistakes and one of them was that we should have started making the DIY shirts earlier because if we did so, we could have promoted our products earlier and would attract more customers.

Through our charity drive event experience, if we can repeat the event one more time, we would try to make the shirts earlier and more efficient. Besides that, we would try to do more variety of designs and colors like for example, print logos or pictures on our shirts to fill our customers’ wants and give them more choices.

REFLECTION VIDEO LINK

Mustaqim Choo:

https://www.facebook.com/l.php?u=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DHYnLmf9NN_k%26feature%3Dyoutu.be&h=SAQEPeEjX

Nurina Aida:

https://www.youtube.com/watch?v=hj9kti-5PX0

Weng Chuan:

http://www.facebook.com/l.php?u=http%3A%2F%2Fyoutu.be%2FbRNMObC_JM0&h=GAQGniyMF

Saba Sanei:

https://www.youtube.com/watch?v=gVOTXqlRfPo&feature=youtu.be

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SUMMARY

In a nutshell, Business is not child’s play. It is a very serious matter than revolves around in our daily lives. We must always plan well, plan ahead and expect the unexpected while a lot of unpredicted problems might occur along the way. In the planning process we must think of the target market, competition, the product and packaging, pricing, promotion and distribution. Besides that, we should never forget to consider green measures because without taking good care of nature we won’t be able to do business anyway. In conjunction to that, attitude also crucial in doing business as it effects on how you cooperate with co-workers, customers, clients and even sponsors. It is very important to be punctual, never let someone wait for too long as it makes it looks very unprofessional. Related to that, honesty is also an important part in doing business, once trust is gained it is easier to expand businesses but once the trust is broken, one’s business can go down in mere seconds. Aside that, in the business world there will always be profit and loss, which is the reality of the business world. In order to be successful in this field one must be ready to face these hurdles.

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APPENDIX

REFER TO THE ENVELOPE/HARD COPY

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