Download - Business studies - charity report
Name of Module: Principles of Economics (FNBE0315)
Report Title: ‘The Nutty Bun’ Charity Drive Report
Group Members: Haziq Zariful (0314131)
: Garnette Dayang Robert (0315491)
: Kawthar Rashid Jeewa (0314832)
: Ayuni Nordin
: Kishant Kumar
Charity Drive Report 1
Table of Content
Content Page
Cover page 1
Table of Content 2
Executive Summary 3
Objectives 3
Target Market 3-4
Competition Analsysis 4
Product & Packaging 5-6
Pricing 6-7
Promotion 7-9
Sponsors 9
Distribution 9-10
Green Measures 10
Human Resource Planning 11
Evaluations of Results 12
Appendices 13
References 14
Executive Summary
2 Charity Drive Report
The Business studies group consisting of Haziq Zariful, Garnette
Robert, Kawthar Jeewa, Ayuni Nordin & Kishant Kumar aims to achieve
a target amount of RM2000 to be given to the charity organization that
is Trinity Home for children. The group sells Arizona drinks; jam tarts &
bracelets, carefully placing the right pricing & promotion in order to
achieve this goal. Even promoting using blogs & flyers to create
awareness of the charity team. They must also plan well as a business
team to properly organize information & improvements during the
event. In the end, the group achieved a net profit of RM2010 &
donated them.
Objectives
a) Our charity organization is the ‘Trinity Children Centre Home’; a
sanctuary for orphaned, abandoned, battered, abused and neglected
children (Tccpj.com.my, n.d.). The reason we chose this organization is
because they help kids who have been through hardships & open
opportunities for these kids, guiding their way to a brighter future.
b) Our target sales would be RM2716, which would make a RM1079
profit after subtracting the Cost of goods sold of RM1637. The target
sponsorship was more than RM1000 so that we can reach the
overall/total target cash money of RM2000. Before the event, we did
not have a target donation amount, until we realized there were
unsuccessful products, so to play it safe, we started asking for
donations & placed a target of more than RM200.
Target Market
a) Our customers are mostly students & lecturers from Taylor’s
University. Most of them are from Architect Degree course since
their course does not take a break in February unlike other
degree programs. There were also foundation course students,
from the most recent intake of January 2014, other than that;
Charity Drive Report 3
there were also a lot of Foundation in communication students
who were our customers.
b) Most of the students were opted to buy the Arizona drinks &
bracelets while most of the lecturers were opted to buy the jam
tarts
c) Most of them didn’t mind spending for their wants as the low
price of the products would probably not affect their income.
Competition Analysis
a) Our two main competitors would be Lee Joyee’s group, consisting
of Shirley Liew, Hui Sim and Ker Neng Peh & Phua Jing Sern’s
group, consisting of Daniesh Ashik, Eugene Peng & Wilson.
b) Joyee’s group sells phone cases & provides Henna services while
Jing Sern’s group sells popsicles & a variety of buscuits.
c) The strength of Joyee’s group is their Henna services, which is
popular in Malaysia & Taylor’s University; hence there would be a
lot of customers. Their vulnerability however is that there is only
1 henna paste syringe, hence, a large number of customers
would have to wait for their turn. Also, they oversupplied their
phone cases, causes their profit to not be maximized.
The strength of Jing Sern’s group is their marketing, they have
different types of large posters while the group members interact
with customers more easily & well. The products they sell are
also substitute goods for our products; the popsicles can be
substituted from our refreshments, while their biscuits can be
substituted from our jam tarts. Their vulnerability is how they
have few products & were sold at a low price, which would mean
they have a lower profit.
d) The customers would pay for the Henna services as they are
popular in Malaysia & Taylor’s University as body art while the
group also made a professional performance when doing so.
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Customers would buy from Jng Sern’s group because of the way
they interact with customers, persuading them to buy their
products.
Charity Drive Report 5
Products & Packaging
Products
a) The charity group is selling 3 products: Arizona drinks, Jam tarts
& bracelets.
Arizona drinks – Iced tea drinks imported from America made by
beverage company ‘Arizona’, ranging different types of flavors
such as green tea with red apple, cranberry tea & iced peach
tea.
Jam Tarts – Homemade, pineapple-flavored jam tarts with 20
numbers inside a container
Bracelets – Homemade Sarawak bracelets made by group
leader, Garnette’s, grandmother with 2 different types for either
male or female.
b) The customers would like the Arizona drinks due to the taller
height of the cans, which provides more of the drink compared to
a canned drink from a vending machine. Moreover, the iced tea
is cooled which, in many flavors, can quench the thirst of the
students/lecturers who have been working all day.
The jam tarts provide an addictive taste along with the
sweetness of the pineapple jam placed on top. They offer a light
on-the-go snack for the busy customers.
The bracelets that were sold have different varieties in color &
shapes, often catching the eyes of passersby and eventual
customers who yearn for a colorful accessory.
Packaging
a) The Arizona drinks were canned in different colors depending on
the flavor; the jam tarts were placed in small containers upon
purchase from supplier whereas the bracelets were placed in
baskets (only after the 2nd day of the event)
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b) The Arizona drinks have definitely attracted customers due to
the tall stature of the cans & also their eye-catching colors that
varies depending on flavors.
The packaging for the jam tarts however weren’t attractive for
the customers because of its unprofessional look that is of a
transparent container, showing how it’s homemade.
The bracelets, on the other hand, which were placed in baskets,
were organized so that it shows the striking colors to attract
customers.
Pricing
a) The Arizona drinks, in all honesty, were sold at
RM9, not at the required minimum of twice the
cost price in fear of a low quantity demand
from customers. The bracelets were sold at
RM8 for the female bracelets while the male
bracelets were RM5. The jam tarts were sold at a price of RM12.
b) The Arizona drinks were bought at RM5.50 per unit, the jam tarts
were bought at RM8 per container containing 20 jam tarts,
whereas the bracelet were bought at RM3 for the ones sold at
RM5 while it is RM6 for the ones sold at RM8.
c) The Arizona drinks & bracelets were definitely eye-catching due
to their colors & variation. The Arizona drinks were our most
popular product; hence, the price was increased by RM1 after the
2nd day of the event.
Charity Drive Report 7
d) The difficult products to sell were the jam tarts bracelets. The
bracelets had a promotion of ‘2 for RM14/9’ for the ones sold at
RM8/5 respectively. Anticipating the difficulty in selling, the jam
tarts were given a same promotion, a ‘2 for RM20’, which is a
RM4 decrease. However, this promotion was ineffective, hence
we tried giving samples (packed by the supplier) whenever
people gave donations or when asked. Nevertheless, it still
couldn’t promote the product well & thus we went on with a
promotion of ‘buy 2 jam tarts, get Arizona drinks for half price’.
Promotion
a) Our main marketing message is, ‘Your change can make their
change’. ‘Their’ refers to the charity organization we are helping,
which is a Christian home for homeless children. The message
shows how the people’s money, even as small change, can make
an impact to the children.
b) Our main promoting tools are Blog
(http://kawtharjeewa.wix.com/arizoners) & flyers.
c) The reason we use ‘2 for RM__’ strategies for both the bracelets
& jam tarts is so that we can remove the large stock while
maximizing profit. While the price is reduced, it is still higher
than the cost price (eg. 2 bracelets for RM14, each bracelet in
the promotion is sold at RM7, which is still RM2 higher than the
cost price).
The reason we gave samples for the jam tarts is so that
customers can taste the jam tarts and buy more later or spread
their sensation to friends.
We used ‘buy 2 jam tarts, get Arizona drinks for half price’
strategies because we can tactically use the popularity of the
drinks in order to sell more of the jam tarts. It is also a
combination that offers customers a meal of snacks & a drink.
8 Charity Drive Report
We used Wix.com (a blog site) as a promotion tool because of
the way it organizes our information well while the flyers
conveniently help customers understand our products &
information before deciding on what to buy.
Charity Drive Report 9
Sponsorship
a) All sponsors we’ve approached are individuals who isn’t
sponsoring by representing a company & there were 5 sponsors
in total
b) All sponsors personally know a different group member each,
while two of the sponsors also supply two different products that
we sell.
c) The sponsors gave cash money in a total amount of RM1410,
while the suppliers sponsored 20 bracelets & 100 containers of
jam tarts, offering with a lower price.
d) We approached the sponsors via messaging while the suppliers
also had a face-to-face meeting with one of our group members
per supplier.
Distribution
10 Charity Drive Report
a) The products that we sold were prepared in advanced for a
week’s stock (by our prediction). At the start of the event, Ayuni
transported the Arizona drinks while Kishant transported the jam
tarts, both by separate cars. Both of them were also brought with
boxes in order to carry them to the booth more easily. The
bracelets were brought by Garnette, in a plastic seal bag from
Sarawak when she went back for Chinese New Year.
During the event, to make it more convenient, Haziq & Garnette
kept the products since they lived in the student residence &
would bring them back to the booth the next day.
b) The products were ready by early morning so customers didn’t
have to wait to get the products that they bought.
c) The customers cannot order the products online or via phone.
Green Measures
a) The Arizona drinks are made of recyclable tin cans but can only
be recycled if thrown into a recycling bin, so we encourage
customers to do so after they bought them.
b) The jam tarts are placed inside a reusable plastic container
whereas the boxes used to transport both the jam tarts & drinks
to the booth were old boxes reused & is still stored for future
reuses.
c) The products were distributed early on in an anticipated week’s
stock so that we wouldn’t have to drive to get more during the
event. Also, they are dividedly stored in Haziq’s & Garnette’s
rooms in the student residence so they wouldn’t have to be
transported by car.
d) The Arizona drinks would be thrown to recycle bins while the
container for the jam tarts would either be thrown as garbage or
reused.
Charity Drive Report 11
e) Instead of using a small refrigerator, we placed the drinks inside
a cooler with ice inside, however, water would be wasted when
the ice melts, that is why we limit the packs of ice used to 4 per
day.
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Human Resource Planning
What they do during the event:
Project Manager – Plan strategies and tactics to sell products &
maximize profit. Decides changes of price, supply, promotion,
etc.
Sales Executive – Evaluate financial position of the group. Sells
product by guiding customers & interacting with them. Identify
product improvements. Collect, Analyze & Summarize
Information.
Accountant – Handles the receipts & documents number of
products sold, profit, price changes, etc.
Advertising Executive – Create posters, distribute flyers &
products to people outside the charity drive area to promote our
booth.
Charity Drive Report 13
Project Manager
Garnette Robert
AccountantAyuni Nordin
Deputy Accountant
Garnette Robert
Marketing/Advertising
Kawthar & Kishant
Sales Executive
Haziq Zariful & Kawthar
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Evaluation of Results
a) Profit & Loss Statement For 'The Nutty Bun'
For the week 10th Feb to 16th Feb 2014Revenues RM RM RMSales: Arizona drinks (RM9) 1386: Jam Tarts (RM12) 372: Male Bracelets (RM5) 40: Female Bracelets (RM8) 72NET SALES 1870
Cost of Goods SoldCost of goods sold: Arizona drinks (RM5.50) 847: Jam Tarts (RM8) 720: Male Bracelets (RM3) 24: Female Bracelets (RM6) 46 1637
Gross Profit 233Add: Donations 397Add: Sponsorship Revenue 1410Adjusted Gross Profit 2040
Operating ExpensesDiscount Expenses 30
NET PROFIT 2010
b) What we did right is how we promote unsuccessful products, which
proved effective, also using the popularity of successful products to sell
more of the unsuccessful ones. We adapted to changes & identified
product improvements. The promotions also didn’t affect a large expense,
at RM30 only.
Our flaws however was that we predicted a wrong number of stock we
might sell, causing a large decrease in profit. A large difference was the
jam tarts, which made a loss of RM348, as we supplied 90 & only 31 were
sold. Other than that, we made a low profit also because we didn’t sell our
products twice their cost price.
c) If we repeated the event, we would do so differently, such as selling
various unique products, also supplying them only when we needed
to, not early on before the event.
Charity Drive Report 15
Appendix
16 Charity Drive Report
Donation Receipt from Charity organization
Sponsorship receipt
Arizona Drinks Receipt (1)
Arizona Drinks Receipt (2)
Bracelet Receipt from sponsorship
Jam Tarts receipt
References
[1] Hiring.monster.com. n.d. Project Manager Job Description Sample | Monster.com. [Online] Available at: http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/project-manager-job-description-sample.aspx [Accessed: 10 Feb 2014].
[2] Hiring.monster.com. n.d. Sales Executive Job Description Sample | Monster.com. [Online] Available at: http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/sales-executive-job-description-sample.aspx [Accessed: 10 Feb 2014].
[3] Socialmediatoday.com. n.d. Charitable Marketing Strategies | Social Media Today. [Online] Available at: http://socialmediatoday.com/smatista/1814396/charitable-marketing-strategies-8-ideas-small-businesses [Accessed: 10 Feb 2014].
[4] Tccpj.com.my. n.d. Trinity Community Centre Petaling Jaya. [online] Available at: http://www.tccpj.com.my/index.cfm?menuid=7&parentid=35 [Accessed: 21 Feb 2014].
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