Introduction to business final project (final report)

Business Final

Project

Introduction to Business [BUSF0103]

Charity Drive

Group Members:

Lee Yuan June (0311128)

Yip Chin Seng (0311956)

Kelvin Chiew Kah Kheng (0311848)

Muhammad Hafiz (0311696)

Naajid Nseem (0311649)


Table of Content

No. Topic Page

1. Cover page 1

2. Table of content 2

3. Objectives 3

4. Target market 3

5. Competition analysis 4

6. Product and packaging 4

7. Pricing 5

8. Promotion 5,6

9. Sponsorship 6

10. Example of sponsorship letter 7

11. Distribution 8

12. Green measures 8

13. Operation budget 9

14. Human resource planning 10,11

15. Evaluation of results 12

16. Executive Summary 13

17. References 14

18. Appendix 15


ObjectivesOur group objective is to raise some money for the needed people. After discuss with all of the group members, we decided to donate the money to the SMJK Yu Hua Kajang, which is a school located in Kajang which needed fees for building their new library. We decided to choose this school because as a student, we knew that library is very important for every student. Library is a very important source for every student, we need library to find our information or references on study or assignment. So, we decided to help out by donating RM2000 to the school for the construction fees.

Target MarketIn this project, we mainly target on the students and staffs who are studying and working in Taylor’s University Lakeside Campus. Besides, these peoples have a better background and most of them have a high standard lifestyle. The peoples who studying or working in Taylor’s University are all own a smart phone for themselves, and they would need some protection for their phones, so, this is the reason why we selling phone cases as our main product in this project. Besides phone cases, we are also selling different type of dolls such as lava, despicable me and mandora dolls, these all are the characters of some cartoons and games. The mainly target for the toys are the students who as a fans of these cartoons or games. Also, we are selling accessories for girls and our targets for these accessories are the girls who are studying in Taylor’s University.

The spending power for these peoples are quite good because they are all from high standard family and peoples who studying in Taylor’s University are probably have high


spending power. Even though these peoples have high spending power, in our business we still do some promotion for the buyers.

Competition AnalysisThe 2 main competitors of our business are undoubtedly the phone case retail booth by our course mates and exterior business from the long-term vendors. Both of the competitors are selling phone cases as their product. In terms of our course mate, their strength is most likely the variety of the phone cases they offered, while their weakness is the pricing. On the other hand, the strength and vulnerabilities of the exterior businesses are the extreme cheap set price and the number of workers respectively, this is most probably that they are the wholesaler or the large intake of goods makes the capital lower. Customers would go for one of the either two because the business done by our course mate offered a wide range of phone cases for different smartphones whilst the exterior vendor is setting a low price and offer a deal for more attractive phone cases.

Product and PackagingAfter Mr. Jau, our Business lecturer had given us this final project, charity drive, we then discuss about the product we want to sell immediately. A lot of suggestions are given such as belt, wallet, sweets, flowers, and etc. But we decided to sell phone cases and some accessory at last because of the budget problem. We notice that phone cases and accessories have a lower budget cost compared to other products. Besides, we also notice that phone cases and accessory are more popular and great in demand. We had ordered for the newest design of phone cases that most of the teenagers interested. We got the stock of S2 cases, I-phone 5 cases, i-phone 4 cases, Samsung Galaxy S3 cases, and Samsung Galaxy Note2 cases. Because of the cost is lower so


our selling price will also be lower, consumer will not think too much if they really like the product because of the low cost needed. The products we ordered are come with the package of the original package from its own brand. It is easy to attract the teenager because of its beautiful packaging such as that fit the product exactly.

Pricing For the pricing of the product, we are required to price our product with the doubled price of the original price of the product. This is the requirement set by our lecturer before we had started our assignment. So, we decided to price for a bit higher than doubled price for the entire product we sell. Our product had a unit cost price around RM13-17, so we decided our unit selling price from RM30-35. Some of the product we ordered have higher quality and are more attractive, we decided to sold it at a higher price because of the better quality. We have some difficulties at first when selling our products because all of the consumers are grating for discount. We tried to convince them by telling them that we are doing this for the charity drive, but then the response are not too good, then we discuss for some promotion.

PromotionOur main marketing message would be “Help the Children” as our charity donation is for SMJK Yu Hua Kajang and it is a school located in Kajang which needed fees for building their new library. Besides, our three main tools or methods to promote our phone case products to the market are hand-produced posters, Facebook and face-to-face conversation. Hand-produced posters are designed either in words or in pictures, this enables us to present the promotion price to the passerby directly in order to attract more customer and it is much cheaper than a printed banner. Moreover, through Facebook we can show our products to the society by sharing the images, it provides more convenience for people who do not have time to visit our booth and its advertising


range is a lot wider. By the way, face-to-face conversation is involved during the collecting of donation by walking around the campus, it has the potential to persuade a

people for visiting our booth as it shows more passion on face-to-face speaking.

Our products image on Facebook Our hand-produced posters

SponsorshipIn this project, we are required to find some sponsorship so that we can cover up our cost of the products. Our target of the sponsorship is RM1800 to cover up our cost of our products. In every sponsors we find, we have given the sponsorship letter to the sponsors to prove that we are the students from Taylor’s University Lakeside Campus who are currently doing charity drive event. The targeted sponsors are the persons we personally know them, only some of the sponsors are from the business and company. After the sponsors promise that they will sponsors us in the project, we will collect the sponsorship letter back with their signature to prove that they have become our


sponsors. The letters we collected from the sponsors are provided in the report. The example of the sponsorship letter is shown in the next page.

Yip Chin SengFoundation in Natural & Built EnvironmentSchool of Architecture, Building & DesignTaylor’s UniversityNo. 1 Jalan Taylor's47500 Subang JayaSelangor Darul Ehsan.

Mr./Ms./Mdm.

Requesting Product Sponsorship for Charity Drive Event

We, the students from the School of Architecture, Taylor’s University, are currently

involved in a fundraising event for our school project in January 2013. Therefore, we

write this letter with the intention to invite your company to become our sponsor in this

event.

2. Our plan is to raise a total of RM2000.00 via sales of your products. All profits earned

during the event will be donated to the House of Joy, a place where some of the

orphanage live, based in Ampang Jaya, Selangor.

3. As you can see, the House of Joy needs in other to keep the orphanage under a

good living condition. Therefore, we would be delighted and it would mean a great deal

to the shelter if you could assist us in any possible manner.

4. I look forward to hearing your reply about our request. You may reach me at 016-

9310789.


Thank you.

Sincerely yours,

___________________(YIP CHIN SENG)

DistributionIn term of getting our products, phone cases are taken separately from different supplier, 70 of them are order directly online store managed by one of Chin Seng’s relatives and 30 of those are taken from Kelvin’s aunt’s store in Malacca, all accessories and dolls are also taken from the online supply stated above. Moreover, the internet products are ordered earlier before the charity drive started as it takes 2 weeks time to reach the campus and the others are taken 1 week before directly from the store. By the way, all of the products are directly deliver to the customer without any waiting time required. However, on the second day, due to the high demand of the dolls, customers are required to wait for 2 weeks for the dolls to arrive to the campus. Besides, 4 out of 10 persons are going to buy our products and make a donation, because we have a stronger competitor and much people have different sense of design and may donate to other booth before. Customers may order our doll products through phone call to Chin Seng through the advertisement on Facebook.

Green Measures Our phone cases are ordered with its original packaging that can be reuse many times. We are not using any plastic bags for the product we sold because plastic bags are non-biodegradable. We practices the 3R concept, which are recycle, reuse and reduce. We reduce the use of plastic bags by selling our products without providing any plastic bags for consumers. We also reuse the mosaic box that no one is using to keep our products. We also use recycle bags to keep our products besides using the plastic bags.


Operation budgetIn order to arrange our budget to get profit, we had a decided that the maximum cost of our budget would be RM1500. Basically, we targeted this amount because; we were sure, that we were going to make revenue higher than this, since our products (phone cases) are really popular. Luckily, we did not exceed our targeted cost. Our costs include:

Phone cases: 900+219 = RM1119Accesories: 0dolls: 200+115= RM315Total cost: RM1434


Human Resources PlanningIn this project, we have divided our work to each of the members, below shows the organizational structure with a chart.

Organizational structure of Lee Yuan June’s group:


Schedule of Tasks and Responsibilities


Position Main tasks

Project Manager

(Lee Yuan June)

Determine the goals and plan out suitable strategy in order to achieve the goals

Assistant Manager

(Yip Chin Seng)

To prevent the strategy from straying off the path and assist project manager in planning

Accountant

(Naajid Nseem)

To perform assigned accounting and related clerical support functions. Also, to carry out effective researching, tracking, and resolving accounting or documentation problems and discrepancies

Sales Executive

(Kelvin Chiew)

To take promotional activities by promoting our existing products.

Advertising Executive

(Muhammad Hafidz)

To spread the promotion of our product

Evaluation of Result

Profit:

Dolls : Rm960

Phone Cases + Accessories : Rm472

Total : Rm1432

Donation:

Rm182

Cost:

Dolls : Rm 315

Phone Cases + Accessories : Rm 1119

Total : Rm 1434

Sponsor:

400(Chin Seng)+ 400(Naajid)+ 350(June)+ 370(Hafidz)+ 300(Kelvin) = RM1820

(Sponsor – Cost) + Profit + Donation: (1820 – 1434) + 1432 + 182 = Rm2000

Although there is a huge amount of cost, but we are able to cover it up by using the sponsorship supply found by every member of our group. By the way, the donation also helps in this case to raise the money to Rm2000. The things that we have done right are that we include side products in our booth especially the dolls and screen protectors that is much lower in the cost and can earn a lot, reduce down the sell price also may increase customers in marketing phone cases. On the other hand, the wrong actions that we made are the little intake of dolls products and never take in variety of phone cases as people uses different kinds of phone. If we can repeat the event one more


time, we would probably change the dolls to our main products and phone cases and accessories as our side products, because the dolls are in very high demand among our customers hence it is more able to give a raise in the amount than the phone cases.

Executive SummaryIn conclusion, our group members are performing well since the project started. The crucial factors that lead to well performance this project are the marketing plan, financial plan, and operation plan. In term of competitors, there are some other groups selling the same products as discussed in the earlier part. Therefore, we are suggested by our lecture that we have to sell more products so that we can earn more profit.

The main objective of this project is to raise some money for the needed people. My group members and I have decided that we will donate the money to SMJK Yu Hua Kajang. The reasons we choose this organization is because they needed fees for building their new library and library is an important source for every students. So, we decided to help them throughout this business project. After we decided our charity organization, we target to raise total of RM2000 by selling all of our products for this charity drive.

Besides that, during the charity drive event, we have done some promotion for our business such as buy 2 products at the same time will get discount. Also, the pricing for our products are fair so that the customers will come to us and buy our products.


References1. Smarta Enterprises Ltd, (2008-2012), 10 ways to be 10% more efficient by next

week.2. Yahoo! Inc, (2013), How to Run a Simple Charity Collection Drive.3. Introduction to Business, (2013), Chapter 4, Managing a Business.4. VISUALLY INC, (2013), 7 Steps to Make Your Small Business More Effective.


Appendix


We are pasting the promotion paper on the table

We are waiting for customer in our store

The customers are choosing the products and we are explaining to them

Kelvin is shouting for the promotion

This is our group photo with Kelvin Chiew, Lee Yuan June, Muhammad Hafidz, Naajid Nseem and Yip Chin Seng (from left to right)

The picture of our products (phone cases)

Documents

Introduction to business final project (final report)