INTRODUCTION TO BUSINESS FINAL PROJECT REPORT

Business Title: Fruit Twist

Group Members: Angela Wee 0322097

Cha Yun Xian 0322048

Chan Koon Qi 0322000

Chia Keh Chian 0322062

Darryl Harvey Lawrence 0322112

Subject and Course: Intro to Business [BUS 30104] FNBE January 2015

Submission date: 14th December 2015

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TABLE TO CONTENT

No. Title Page Number

1 Key Summary 3

2 Objectives 4

3 Target Market 5

4 Competitive Analysis 6-7

5 Product and Packaging 8-10

6 Pricing 11-12

7 Promotion 13-15

8 Sponsor 16-17

9 Distribution 18

10 Green Measures 19

11 Human Resource Planning 20-21

12 Evaluation of Results 22-23

13 Appendix 24-37

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KEY SUMMARY

The final project for Introduction to Business is Charity Drive Event is held

from 1st December till 4th December at Taylor's University Lakeside Campus in front

of Student Life Centre. Our group consists of 5 members, including Angela Wee, Cha

Yun Xian, Chan Koon Qi, Chia Keh Chian and Darryl Harvey Lawrence. The purpose

of this assignment is to raise fund for our selected charity organization. Throughout

the charity week, we managed to gain some experiences from running our own

business and prove to be useful knowledge in the coming future.

Our group decided to raise funds by selling our own homemade products. The

product that we sell consists of jellies and fruit juices which is made by the group

members, Angela Wee, Chan Koon Qi, Cha Yun Xian and Chia Keh Chian. The

jellies were prepared the jellies from home two weeks before the charity event since

our group is planning to sell it a few days before the charity drive event to maximize

our profit. On the other hand, fruit juices are being sold during the charity event only

so that we manage to keep the drinks fresh and tasty. The reason why we chose to sell

fruits made products is because it is healthier and manageable. The budget of selling

fruit juice and jelly is also lower compare to selling other products.

A total amount of RM 1350 sponsorship is collected to help us start up our

business. We would like to thank all the parties that sponsor us in this business charity

drive, and our lecturer, Madam Tay for her guidance and support throughout this

project.

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OBJECTIVES

Address: Pilmoor Estate, Subang Airport Road, 47200 Subang, Selangor, Malaysia

Contact: 03 7846 1087

Raise fund for our chosen charity organization.

Create a public awareness towards animals.

Obtain new skills from running a business like marketing techniques.

Gain a minimum of RM 100 per day from selling our product.

Our main objective is to raise fund for PAWS Animal Welfare Society to show our

support to them. The reason why chose them is because they can provide homes to

animals who doesn't have one. Without them, animals will be leaving in the streets

exposed to the elements.

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TARGET MARKET

a) Students & Staffs

Since the charity event is being held in the campus, our main target customer will

be the students and office staffs. They are expected to provide the highest percentage

of our income. Most students who bought our product is to support the charity even

though the price is above market price. From our understanding, we found that

students in Taylor University have high spending power but are highly dependent on

their parents’ income since most of the students didn't really do part time jobs.

b) Family & Friends

Our secondary target will be our family and friends who are willingly to help us

for this assigment. They are the people who knows us personally as they tend to trust

us more and support for the charity. We promote our products to them by sending

them a message throught social media and cross-platform messaging app such as

Facebook and Whatsapp because its easier to let them know on what are we selling.

Their spending power is in normal rate.

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COMPETITIVE ANALYSIS

As all the other business area, we also have a few competitors to deal with during this

one week business charity drive event. Among the handful we will be facing, the

more challenging ones are Vitamin Factory, a stall that sells fresh fruit juices in

school operated by professional workers and Fruits Ice-Cream, a temporary stall ran

by our course mates.

Below is a full analysis of our two main competitors:

Comparative

Information

Vitamin Factory Fruits Ice-Cream Conclusion to improve

our business- Fruit

Twist

Products Fresh fruit juice,

smoothies, vanilla ice

cream floats.

Fresh fruits, ice

cream and floats.

A variety of fruit

products that is suitable

for everyone: lychee

jelly, passion fruit jelly

and fruit juices –

watermelon, carrot,

orange or mix.

Strengths - Products are trustworthy

because it is operated by

professional workers, not

students.

- Fresh fruits are used to

make the products.

- Famous brand, have lots

of outlets all over in

Malaysia

- A wide range of

food that is suitable

to consume during

hot weather.

- Use fresh fruits to

produce products.

- Have mobile sales and

delivery service.

- Offer products at

affordable and

reasonable.

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Vulnerabilities Prices are slightly

expensive. (Range: RM7 -

RM10++)

Lack of promotion

and choices of

fruit- only sell

watermelon.

- Offer products at

cheaper price.

-Have promotion on last

two days.

Attraction Happy hours (12pm-2pm)

20% discount

Mobile sales and

friendly services.

- 1 for RM3, 4 for RM10

promotion for jellies

- Mobile sales and

delivery services to SLC

and office.

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PRODUCT AND PACKAGING

a) Products

The products we are selling are all healthy and nutritious fruit products- fruit jellies

and fruit juices.

1. Fruit Jelly (RM3/cup, RM10 for 4 cups)

Home-made passion fruit jellies and lychee jellies (not in the picture) using the real,

fresh fruit. No artificial colors flavors or preservatives are added.

2. Fruit Juice (RM3/cup, RM4/cup for mix fruit juice)

Fresh fruit juice which is made on the spot upon customers’ orders. We offer best-

selling orange juices, healthy carrot juices, cooling watermelon juices, refreshing lime

juice and mix fruit juices which customers can choose any two types of fruits.

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b) Packaging

As for the packaging of our products, we had

decided to use typical plastic containers to contain

our fruit jellies and put into ice box to ensure their

freshness and coldness. What are special about

our packaging are the animal stickers on it. We

printed a lot of dogs and cats stickers, cut and

stick one by one onto the container. The designs

of the stickers were found on internet but Koon

Qi added PAWS logo and green message: ‘please

recycle after use’ on it. The main reason why we were using these stickers was

because they are able to convey our messages clearly and quickly- that we are raising

fund for PAWS, an animal shelter. Also, it improved the aesthetic value of our

product, thus attracting customers especially dog and cat lovers. We knew this is an

effective packaging when we heard our customers said ‘so cute, I want to buy and

keep the container!’ then started to pick jelly with the picture they liked.

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For fruit juices, we only use normal paper cup as packaging as fruit juices are made

on the spot and meant to be consumed at once to ensure its coldness and freshness.

Paper cups are used as they are recyclable and saved cost.

Video link:

https://www.facebook.com/1514966078797718/videos/1515424972085162/

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PRICING

a) Unit Selling Price of Products

1. Jelly - 1 for RM 3, 4 for RM10

2. Fruit Juice - RM 3

3. Mix fruits juice - RM4

4. Lime Juice - RM3

Each product’s price is set by estimation of the cost. For jelly, lime juice and fruit

juice, we initially assumed the cost is RM 1 and below through some rough

calculations. For mix fruit juice, we assumed the cost is around RM1.50 through some

rough calculations. So, each selling price of the product is more than twice the cost

price.

b) Unit Cost Price of Products

1. Passion fruit jelly - RM0.50 per jelly

2. Lychee jelly - RM0.63 per jelly

3. Lime juice - RM0.67 per cup

4. Orange Juice - RM1.40 per cup

5. Carrot Juice - RM1.13 per cup

6. Watermelon Juice - RM0.585 per cup

7. Carrot Orange juice - RM1.43 per cup

8. Watermelon Carrot - RM1.235 per cup

9. Watermelon Orange - RM1.21 per cup

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All cost price calculated here is in approximation. This is due to some very small

amount that is being round up or some form of inaccuracy is taken into account.

c) Product Sales

During the first week of sale, we only sell jelly products. At that time, there weren’t

many competitions too. And also due to our packaging that are related to animals, it

attracted many animal lovers. So, the sales of jelly during the first week were very

well.

As for second week, we had many competitions, so the sale of the jelly was not good.

But the sale of the fruit juice is going well. This is due to the competitions not having

any healthy drinks that are being sold. Our competitions only sold soft drinks, so

customers that do not like soft drink would purchase our fruit juice. Especially orange

juice, it has a high demand, lime juice had the least demand, which is why it was

discontinued after two days of sale.

d) Sales Strategies

When we have difficulty in selling our products, we would have some promotion for

our customers. For example, buy 2 free 1 for our jellied that was not selling well, or

RM2 for a cup of carrot on the last few because carrot was the least popular fruit juice

that had a slow sale.

We did not expect that orange juice would be popular, so on the next day, we stocked

more orange to prepare for the high demand of orange juice.

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PROMOTION

a) Marketing Messages

The marketing message for our business is simple and straight forward, “HELPS

PAWS, and be the one who make a difference in these animals' life.” Our message

appeals to everyone in the campus, especially animal lovers to purchase our products,

and all profits earn will be donated to PAWS Animal Welfare Society.

b) Promotional Strategies and Tools

1. Social Media

One of the main tools that we use to promote our products is through social

medias like Facebook, Twitter and Instagram.The reason why we choose

social media as our main channel to advertise our business is because the

advertising fee is free and it is efficient as the popularity of our business can

be increased within a short period of time without increasing human resources.

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2. Posters

Posters are another main tool that we use to promote our products. We’ve

designed our very own poster for our business which introduce the purpose of

our business and the products that we are selling.

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SPONSOR

For this project, we were required to ask for some sponsorships and donation in

order to reach our business target. After several discussions, all of had agreed to ask

sponsorship from our parents and friends. Besides that, Angela was able to get some

sponsorship from a few companies of her mother’s friends. Official letters were

prepared for the sponsors so that they understand the purpose of this charity drive. In

the end, we are lucky to get a good sum of sponsorship money to aid us in achieving

our goal.

Other than that, Chia and Cha had tried going around campus to collect

donations for PAWS. To encourage the act of donating money to the animals, we had

also used strategies such as design our donation box and carrying the poster around to

make people clear of our purpose. By this way, we managed to collect an amount of

money in form of cash from the public.

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Below is a list of parties that donated:

Parties Amount

1. TEMIS(M) SDN.BHD

2. HLE TRADING SDN.BHD

3. KEJURUTERAAN SERTING

SDN.BHD

4. MMC ENGINERRING&

INDUSTRIAL SUPPLY

5. SKYT MINHO KLINING SDN.BHD

6. TYT BUILDERS SDN.BHD

RM 500.00

RM 200.00

RM 200.00

RM 50.00

RM 100.00

RM 300.00

Donation RM 231.70

Total Amount RM 1581.70

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DISTRIBUTION

As our products such as jellies are all homemade and beverage are made right

after the customers order, we need to produce large quantities of jellies and bought all

the fruits we needed right before the day to ensure the quality of the fruits as well as

transport them to campus via car. The products are then stored in a huge refrigerator

in one of our members, Koon Qi’s house.

To distribute the products, we have to come early to help Koon Qi carried all

the jellies and machine from her car which are packed nicely in few of the boxes.

Jellies are premade and pre-package, and thus are readily available to the customer for

instant consumption. However, fruit juices were required to make on spot using

machine. The process of making fruit juice required up to 2 minutes. Fortunately,

most of the customer loved our fruit juice and willing to wait for it.

By splitting our group, we are able to simultaneously reach out to people all around

the campus as well as in front of SLC. In addition, we will always have 2 people

promoting our products by walking around in the campus. At the same times, the rest

will help to take care of the stalk and in charge of the making of fruit juice. This allow

us to cover a vast amount of space at the same time, further expanding the products as

well as reaching out to a large amount of potential customers.

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GREEN MEASURES

All of our products are edible, so it does not create much waste that is harmful

to the environment, except for their packaging. Our products are mainly produce

using fruits, those fruits waste, such as skins are biodegradable.

For our jelly product, we have to use plastic containers due to it being able to

sustain high temperature. Because during the process of making the jellies, it will be

at boiling temperature, so our best choice is to use a plastic container. But we do

encourage our customers to recycle, as it is state on the stickers we printed. The

plastic containers as for fruit juice, we used paper cups because it is biodegradable.

When we bring our products to school, we make sure that it is a one way trip.

This can help us save time, fuel and also reduce carbon footprint created by us.

During the sales, it is all done by foot, so low carbon footprints were produced.

During the event we only used electricity for our fruit blender and it is only

used on demand. It does not even take a minute to blend the fruits, so it barely uses a

huge amount of electricity. For water, we used a bucket of water to constantly wash

our blender and some equipment used. If the water starts to get too dirty only will we

change the water, instead of using running water to constantly to keep our equipment

clean which uses more water. After the products are being consumed, we encourage

our customers to recycle the containers. On our packaging, it is printed saying, ‘Please

recycle after used.’ as an encouragement for customers to recycle. We had considered

asking customers to bring back the containers so that we can re-use it, but due to

hygiene, we decided to not use this strategy.

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HUMAN RESOURCE PLANNING

Most of the time, our team would work together to manage all aspects of our

business. However, each of us will lead a particular aspects base on our expertise to

make sure everything goes right according to plan.

a) Project Manager

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Project Manager- Chan Koon Qi

Accountant- Chan Koon Qi

- Chia Keh Chian

SalesLead by: Angela Wee

Marketing & Packaging

Lead by: Cha Yun Xian

Documentation & Report

Lead by: Chia Keh Chian

Assistant Project Manager

- Chia Keh Chian

As a project manager, Koon Qi leads the team to the team’s goal which is to raise

RM2,500 for PAWS.

b) Assistant Project Manager

Keh Chian constantly assists Koon Qi when it comes to some decision making,

especially in some impromptu situation. Both of them would consider the pros and

cons for each decision made, also sometimes with the help of the other memebers.

c) Accountant

Both Keh Chian and Koon Qi often control the costs that were used by the teams.

They also make sure to inform everyone how much they should make each day to

reach the goal. They also handle the accounting after every day to calculate the

profits.

d) Sales

This department is led by Angela Wee. She would make decision on what we should

do during the sales to market our product. For example, on the last day she decides to

have some discount on our product so that more customers would be attracted. Other

group members assist her by walking around the campus and promoting the products.

e) Marketing & Packaging

Before distributing our products, Yun Xian decides how we should package our

products for the market. She designed the stickers for our packaging, the poster and

the menu. She makes sure the products look attractive enough during the sales.

f) Documentation and Report

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As a team, we all work together write the report. But before that, Keh Chian

distributed each part for us so that we can concentrate on each part ourselves.

Discussion are made together sometimes to decide what we should write for the

report.

EVALUATION OF RESULTS

For this charity drive, we have successfully reached our target and gained a net profit

of RM2086 and RM232 as donation which sum up to RM2318 in total.

Fruit Twist Product Sales

Fruit JellyFruit JuiceMix Fruit Juice

As shown in the diagram above, the biggest seller of our business is fruit jellies as we

managed to sell out average 100 cups per day, follow up by fruit juice, average 30

cups per day. However, we have a few loses in the products which at the last day we

found out that some of the jellies have gone mouldy so we decided to stop selling fruit

jellies.

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Self-reflection video link: https://www.youtube.com/watch?

v=DgIYAE_uzNE&feature=youtu.be

a) Profit & Loss Report

Income Statement for Fruit Twist for Business Charity Drive Event

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Revenue Sales

Fruit Jelly RM 1,704.00Fruit Juice RM 318.00Mix Fruit Juice RM 64.00

RM 2,086.00

Less: Cost of Goods Sold

Fruit Jelly RM 310.75Fruit Juice RM 145.20Mix Fruit Juice RM 16.80 RM 472.75

Gross Profit RM 1479.70

Add: Donation RM 231.70

Add: Sponsorship RM 1350.00

Adjusted Gross Profit RM 3061.40

Less: Operating expenses

Typhoid Vaccine Injection RM 325.00Printing RM 128.80Packaging RM 130.25Receipt books RM 21.70Total Operating Expenses RM 605.55

Net Profit RM 2589.40

APPENDIX

* All costs of products and operating expenses are recorded approximately due to certain inaccuracies and round ups*

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Revenue Sales

Fruit Jelly RM 1,704.00Fruit Juice RM 318.00Mix Fruit Juice RM 64.00

RM 2,086.00

Less: Cost of Goods Sold

Fruit Jelly RM 310.75Fruit Juice RM 145.20Mix Fruit Juice RM 16.80 RM 472.75

Gross Profit RM 1479.70

Add: Donation RM 231.70

Add: Sponsorship RM 1350.00

Adjusted Gross Profit RM 3061.40

Less: Operating expenses

Typhoid Vaccine Injection RM 325.00Printing RM 128.80Packaging RM 130.25Receipt books RM 21.70Total Operating Expenses RM 605.55

Net Profit RM 2589.40

APENDIX

Group member’s typhoid injection medical certification

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13 receipt books used during charity drive event.

Donation cheque for PAWS

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Sponsorship letters

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Emails to PAWS Animal Welfare Society

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Visiting to PAWS, Subang

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Making process of the jellies

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Our booth during charity drive event

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