INTRODUCTION TO BUSINESS [BUS30104]

Final Project: Charity Drive Event

GROUP MEMBERS

Kiu Ngin Pern (0322084)

Hong Shi Lik (0322081)

Brian Koh Jun Yan (0322002)

Lee Zhi Ang (0322061)

Le Jia Ling (0322532)

Brand

“Fruits Ice-Cream”

Executive SummaryBased on our experience from the start of our fund raise till the end we have noticed some key areas that we didn’t notice before. When selling fruits, it isn’t as easy as one might think because of the fact that the fruit spoils, especially the banana a period of three days is the maximum before it can be sellable, also if we were to repeat this project again we would include an ice-cream maker as during the afternoons a lot of people would buy it. Combined this with our hottest selling item the watermelon it would be far easier for us next time to achieve our financial target.

Also the division of labour is also important as in a group not everyone thinks and behaves in the same way, me being the leader I had to decide on which role would be suite each member of my team and looking back I would say we were all rather efficient at carrying out our tasks. Teamwork is key after all and this project was done more smoothly because of this.

Objectives

Our Stall named Fruit Ice-cream. I would like to say that we had learnt a lot from this business final project and we know how to manage staffs and know that if you want to start a business you must have the correct time place and products in order to make your business successful.

The Reasons

The Charity Organization that we chose for this project is Ebenezer Home which is located in No.43, Jalan Telok Jambu 10, Taman Iswara, Seksyen 25, 40400 Shah Alam, Selangor. And the reason why we support this organization is because they are Indian and they have many elders and young ones in the place. By the way most of the people in Malaysia would have ignored them because they are either racist or afraid of them. That’s why we are supporting them when nobody noticed them.

Objectives accomplished

And in this project we have successfully accomplish our objectives which are reaching the target amount that we set before we start our business, RM2.5k. And we donated all for the charity organization with the entire amount that we had earned from this charity drive. And we had sold more than the target amount of fruits that we set for ourselves in the beginning. So that we have accomplish the objective in the project’s brief which is the target amount, we had earn more than RM2.5k in these 4 days. And we are like sold out every fruits every day.

TARGET MARKETDue to the fact that our business was located in Taylor’s University Lakeside Campus, our target market was fundamentally divided into two groups: students, which holds the higher percentage, and lecturer or staffs, which holds a smaller percentage in our location.

Based on the analysis we made, we observed that most customers would spend their money on soft drinks rather on fruits. We also found that customer prefer cheaper drinks as most of the drinks found in campus are quite expensive. A plastic cup like soft drinks is also a hot selling product as it easier to bring around the campus.

Besides, based on the soft drinks sold in commercial block, we found that the highest price could go up to RM 6, which could actually afford at least 3 soft drinks in our stall. We try to keep selling the price below 3 except for the fruits, which has high cost price, so that customer could have a variety of choices by using the same amount of RM 6.

COMPETITION ANALYSISThe 2 main competitors during the charity drive are located left hand side (Hassan’s group) and also the one on right hand side (Cham’s group).

Comparative Information Hassan’s Group Cham’s Group

Products Ice-cream, Floats Pasta Shaker, Fruit

Strengths They have good communication skills to promote their products and good advertisement which they design their poster in simple way which attract students.

The food they are selling what are people usually eat in breakfast. They have attractive posters and boards that attract people go their stall.

Vulnerabilities Their products have a relatively high selling price which stop people from buying, unless they are craving

They sell goods are easily perishable.

Product and Packaging

Products

For our group, we decide to sell fresh fruits as our main products after we discussed in our meeting. We also selling drinks likes Coca-Cola, Sarsi and A&W. But selling fruits is not that special also so we decide to add some topping on the fruits instead of just sell it normally. For example, we add some chocolate topping and some colourful candy topping on the grapes that we had already put on the sate stick. Each sate stick had 5 grapes.

Features and benefits

The products that we sell is fresh fruits which consists of watermelon, grapes, banana, pear and kiwi. The benefits of fruits are naturally low in fat, sodium, and calories. None have cholesterol. Fruits are sources of many essential nutrients that are under consumed, including potassium, dietary fibre, vitamin C, and folate (folic acid). Vitamin C is important for growth and repair of all body tissues, helps heal cuts and wounds, and keeps teeth and gums healthy.

Packaging

Our product are being pack inside a plastic container which is the watermelon. The reason why we pack it inside the container is because we want to keep it away from fly so that the costumer would not think that the fruits we sell are not hygienic. Also, it is easier for us to keep it inside the ices box to keep it cold and fresh. For the grapes, we use small paper cup to fill it. Lastly, for the drinks, we use normal transparent plastic cup to fill it with the soft drinks that we bought.

By using plastic container to pack the watermelon that we sell, it would catch the attention from the costumers. It is because watermelon is red in colour itself so by using plastic container it make the red colour very obvious and costumers can see how fresh are our watermelon. This is how it attract the costumers. Using paper cup to pack the grapes are also easy to attract the customer because after they buy it they can eat the grapes easily by using satay stick. For the drinks, it would be easier to attract customer because the drinks was pack inside transparent plastic cup and it can be easily spotted by them.

PRICING

Pricing

We went and purchased all the materials and fruits needed to set up our business therefor we had kept close attention to our spending and have come up with the following pricings according to an estimate 200-400% profit upon initial deductions from cost of making each material.

Item Selling Price Per Unit. Cost Price Per Unit.Watermelon RM5 RM1Bananas RM2 RM0Grapes RM5 RM0.7Soft-drinks RM2 RM0.3Choc-Grapes RM3 RM1.1

Justification for our Pricing

Because the products we are selling are fruits, this already sets our target market into the consumer customer base (our product can be seen as more of food item). Basically our stall guarantees daily freshness as we restock on our supplier of fruit on a daily basis, this we can prove from the receipts kept from our transactions with our suppliers.

Such as- Our fruits are freshly cut and packaged in the morning daily therefor customer would have more satisfaction and would be more willing to purchase out products because of this.

-Our stall is the only ones selling fresh fruits though the duration of our business sell, therefor this gives is a monopoly in the market giving us an opportunity to bump up our selling price.

-Our soft-drinks we also have a firm monopoly in the market as especially during the hot afternoons, we found ourselves even selling to our fellow business rivals as we were the only ones selling iced beverages at the time.

Strategies of Selling

Initially we took a more pro-active approach to selling our products and that was we had two our members stand outside the stalls and try to engage and attract the customers walking by to buy our goods. This worked as slowly more and more customers were beginning to buy our products.

We noticed a couple of variables

1) The watermelon was the hottest selling item, it is also the cheapest fruits offered

from our supplier therefor after the first selling day we pushed watermelons instead of the other fruits instead for the remaining days.

2) On the second day I had three people myself because I was a resident in the University Hostel, and Edge and Shi Lik separate from the main stall. The reasons for this was that we wanted to target other customers that would not have the chance to pass by our stall, such as office workers in their tea break, students in corridors and classrooms etc. etc..

3) During the hot afternoons, a lot of customers would buy cold items such as our cold soft-drinks and our competitors ice-creams. Thus we made sure that we had a huge supply of cups, variety of soft-drinks and plenty of ice.

SPONSORS

For our group sponsors, we specifically targeted close relatives and friends and approached them individually to ask them for financial support. A few of our group members already come from a relatively high financial background and nearly all were willing to donate for our cause and that is towards the Ebenezer Home.

The form of most donations came largely in the form of cash. The problem came about that since we were not associated with the Ebenezer Home directly and were only given permission to donate our profits from our fundraiser to their establishment we had to give them some form of compensation for their generous donations instead with a few packages of our products from our fundraiser fruit sale.

Below is the list of our sponsors and the specific amounts they donated and what products did we exchange in return.

Name Amount Item sold Date Mr. David Lee RM50 Custom Art #1 21/11/2015Mrs Linda RM50 Mix Fruit Bowl 2 21/11/2015Mr. Andrew Fakhir RM200 Custom Art #2 23/11/2015Mrs Francis Tan RM10 Watermelon 2 Box 24/11/2015Mr. Edward Fong RM4 2 Grape Sticks 24/11/2015Mr. Daniel Edrice RM4 2 Choco Grapes 24/11/2015Mrs Sally Tan RM10 Watermelon 2 Box 26/11/2015Ching Family House

RM500 Custom Art #3 28/11/2015

Mrs Kung Lai Chi RM20 Watermelon 4 Box 28/11/2015Mr. Johnathan Sim RM150 Custom Art #4 28/11/2015Mrs Liew Jiek RM150 Custom Art #5 28/11/2015

*As a disclaimer some of the items that were sold may not be found being sold during our fundraiser during the 1st December 2015 to 2nd December 2015. This is due to a limited time offer and we were doing a prototype test run therefor there was a significant lack of supply and time of preparations, specifically the Custom Artworks.

DISTRIBUTION

FRUITS AND SODA DRINKS

TAYLOR’S LAKESIDE CAMPUS DISTRIBUTION ON 1 st Dec 2015:

- 2kg of grapes, 5kg of watermelon, 9 kg of banana and 5 bottles of soda drinks are being ordered on 30st Nov 2015.

- Soda Drinks are delivered by groupmates, Lee Zhi Ang by car, transporting the goods from Suria Mas to Taylor’s Lakeside Campus.

- On 30st Nov 2015, 2kg of grapes, 5kg of watermelon and 9kgof banana are collected at 5:00pm and delivered to Taylor’s Lakeside Campus.

- We sold the items on booth during the charity drive.

TAYLOR’S LAKESIDE CAMPUS DISTRIBUTION ON 2st Dec 2015:

- Grapes, watermelon and banana are sold in the booth.

- Soda drinks are mostly contributed by other members from other stall.

- Boxes of watermelon and banana are sold out around 2:00pm

- 22kg of watermelon and 8kg of banana are ordered from Kung Fu Restaurant around 3:00pm

TAYLOR’S LAKESIDE CAMPUS DISTRIBUTION ON 3ST DEC 2015:

- The rest of the grapes and soda drinks were brought to be sold.

- The new boxes of watermelon and banana are ready to be sold.

- We sold 10 boxes of watermelon and one bunch of banana at the stall and by on foot.

- The rest of the grapes were sold at the stall as well as soda drinks.

TAYLOR’S LAKESIDE CAMPUS DISTRIBUTION ON 4ST DEC 2015

- Most of the watermelon and banana were sold out.

- During the peak selling hour, the soda drinks has become more popular and selling fast.

- We split into two teams to sell the remaining grapes at the stall as well as the whole campus by foot. 15 cups of grapes are sold on 4st Dec 2015.

Green Measures

Products that our group chosen was fresh fruits, it was made in an environmentally friendly manner. That it is environmentally friendly which do not harm the environment when they are made or when you use them.

The Product Packaging was not environmental friendly. This is because the packaging we used was plastic container which cannot be naturally decompose. Also, we prepared a rubbish plastic bag to keep the product’s wastes and the packaging of the products after the costumers had finished their fruits. Later, we will throw the rubbish into the nearby recycle rubbish bin so that it can be recycled.

All of our fruits are all pre-washed before we sell it, so the costumer no need to wash it again. This is how we save the water during the event. We save electricity by keeping all our fruits inside the ices box so we no need to waste electricity on the refrigerator. Lastly, we did not provide costumer plastic bag to wrap the fruits they buy from us so that it will be more environmentally friendly.

Human Resource Planning

Kiu Ngin Pern Walking Salesman

- walking around the campus and sell fruits to the students

Hong Shi Lik Cashier

- in charge of keeping track of the sales amount of the costumers

Brian Koh Bartender Seller

- in charge of making drinks for the costumers

Lee Zhi Ang Promoter

- promote in front of the boothJia Ling Helper

- helping around and see who need helps

Evaluation of Results

Profit and Loss Report

As you can see from the income statement prepared above., we have gained over a 200% profit margin overall when comparing the cost price per unit sold and the revenue gained after the reduction of the cost price. We see that we have met our financial target and even exceeded it by a considerable margin as a whole. The overall business plan so far can be evaluated as a successful venture based on the amount of profits earned.

The right things that we done was the role being given to all the group members was perfect that we were all rather efficient at carrying out our tasks. Teamwork is key after all and this project was done more smoothly because of this.The things that we do wrong was when selling fruits, it isn’t as easy as one might think because of the fact that the fruit spoils, especially the banana a period of three days is the maximum before it can be sellable.

If we were to repeat this project again we would include an ice-cream maker as during the afternoons a lot of people would buy it. Combined this with our hottest selling item the watermelon it would be far easier for us next time to achieve our financial target.

Income Statement Charity Fundraise For Ebenezer HomeRevenue AmountSales RM1,536.00Cost Of Goods Sold RM278.70Gross Profits RM1,257.30Donation Box Collections RM102.00Sponsorship (Friends and Family) RM1,148.00Rounded Total Gross Profit RM2,508

Item Watermelon Banana Grapes Choc-Grapes

Soft-drinks

Selling Price

RM5 RM2 RM5 RM3 RM2

Units 102 boxes 61 pieces 84 cups 78 sticks 125 cupsUnit Cost RM0.7 0 RM1 RM1.1 RM0.3Cost total. RM71.4 0 RM84 RM37.5 RM148.2Gross Profit RM438.6 RM122 RM336 RM148.2 RM212.5

Expenses Quantity Pricing RMToothpick 1 box 2Basket 1 4Paper cup 4 rolls 6Plastic Container 200 bottles 12Satay Stick 2 pack 4Plastic Forks 1 pack 3Choc Syrup 1 bottle 5

Facebook Page

https://www.facebook.com/fruitsicecreamFIC/

APPENDIX

Charity Drive Event

Resit of the fruits we bought

Pictures of Artworks Sold Listed ChronologicallyCustom Art #1 Custom Art #2 Custom Art #3

#1) David Lee wanted an anime #2) Mr Andrew had an idea of a #3) The Ching Family

styled portrait of a boy in the surreal flower like portrait a young couple starting

rain piece full of bright colors up were happy to buy it

Custom Art #4 Custom Art #5

#4 Mr Sim a florist and close #5 Liew Jiek who is a degree student in law family friend was delighted at wanted a piece that would reflect the daily educationalmy interpretation of the art of stress she goes through every day.flowers.

A visit to Ebenezer Home

Donate money to Ebenezer Home

Resit we got from Ebenezer Home

Referenceshttp://www.choosemyplate.gov/fruits-nutrients-health