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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

Key Summary

Objectives

Target Market

Competitive Analysis

6-7

Product and Packaging

8-10

Pricing

11-12

Promotion

13-15

Sponsor

16-17

Distribution

18

10

Green Measures

19

11

Human Resource Planning

20-21

12

Evaluation of Results

22-23

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Appendix

24-37

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.

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.

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.

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

Vitamin Factory

Fruits Ice-Cream

Information

Conclusion to improve
our business- Fruit
Twist

Products

Fresh fruit juice,

Fresh fruits, ice

A variety of fruit

smoothies, vanilla ice

cream and floats.

products that is suitable

cream floats.

for everyone: lychee


jelly, passion fruit jelly
and fruit juices
watermelon, carrot,

Strengths

- Products are trustworthy

- A wide range of

orange or mix.
- Use fresh fruits to

because it is operated by

food that is suitable

produce products.

professional workers, not

to consume during

students.

hot weather.

- Have mobile sales and


delivery service.

- Fresh fruits are used to


make the products.

- Offer products at
affordable and

- Famous brand, have lots


of outlets all over in
Malaysia

reasonable.

Vulnerabilities

Attraction

Prices are slightly

Lack of promotion

- Offer products at

expensive. (Range: RM7 -

and choices of

cheaper price.

RM10++)

fruit- only sell


watermelon.

-Have promotion on last

Happy hours (12pm-2pm)

Mobile sales and

two days.
- 1 for RM3, 4 for RM10

20% discount

friendly services.

promotion for jellies


- Mobile sales and
delivery services to SLC
and office.

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 bestselling orange juices, healthy carrot juices, cooling watermelon juices, refreshing lime
juice and mix fruit juices which customers can choose any two types of fruits.

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.

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.
2.
3.
4.

Jelly - 1 for RM 3, 4 for RM10


Fruit Juice - RM 3
Mix fruits juice - RM4
Lime Juice - RM3

Each products 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.
2.
3.
4.
5.
6.
7.
8.
9.

Passion fruit jelly - RM0.50 per jelly


Lychee jelly - RM0.63 per jelly
Lime juice - RM0.67 per cup
Orange Juice - RM1.40 per cup
Carrot Juice - RM1.13 per cup
Watermelon Juice - RM0.585 per cup
Carrot Orange juice - RM1.43 per cup
Watermelon Carrot - RM1.235 per cup
Watermelon Orange - RM1.21 per cup

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

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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.

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
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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.

2. Posters
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Posters are another main tool that we use to promote our products. Weve
designed our very own poster for our business which introduce the purpose of
our business and the products that we are selling.

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 mothers friends. Official letters were
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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.

Below is a list of parties that donated:

Parties

Amount

15

RM 500.00
1. TEMIS(M) SDN.BHD

RM 200.00

2. HLE TRADING SDN.BHD


RM 200.00
3. KEJURUTERAAN SERTING
SDN.BHD
RM 50.00

4. MMC ENGINERRING&
INDUSTRIAL SUPPLY
5. SKYT MINHO KLINING SDN.BHD
6. TYT BUILDERS SDN.BHD

RM 100.00
RM 300.00

Donation

RM 231.70
Total Amount

RM 1581.70

DISTRIBUTION

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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 Qis 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.

GREEN MEASURES

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Allofourproductsareedible,soitdoesnotcreatemuchwastethatisharmful
totheenvironment,exceptfortheirpackaging.Ourproductsaremainlyproduce
usingfruits,thosefruitswaste,suchasskinsarebiodegradable.
Forourjellyproduct,wehavetouseplasticcontainersduetoitbeingableto
sustainhightemperature.Becauseduringtheprocessofmakingthejellies,itwillbe
atboilingtemperature,soourbestchoiceistouseaplasticcontainer.Butwedo
encourageourcustomerstorecycle,asitisstateonthestickersweprinted.The
plasticcontainersasforfruitjuice,weusedpapercupsbecauseitisbiodegradable.
Whenwebringourproductstoschool,wemakesurethatitisaonewaytrip.
Thiscanhelpussavetime,fuelandalsoreducecarbonfootprintcreatedbyus.
Duringthesales,itisalldonebyfoot,solowcarbonfootprintswereproduced.
Duringtheeventweonlyusedelectricityforourfruitblenderanditisonly
usedondemand.Itdoesnoteventakeaminutetoblendthefruits,soitbarelyusesa
hugeamountofelectricity.Forwater,weusedabucketofwatertoconstantlywash
ourblenderandsomeequipmentused.Ifthewaterstartstogettoodirtyonlywillwe
changethewater,insteadofusingrunningwatertoconstantlytokeepourequipment
cleanwhichusesmorewater.Aftertheproductsarebeingconsumed,weencourage
ourcustomerstorecyclethecontainers.Onourpackaging,itisprintedsaying,Please
recycleafterused.asanencouragementforcustomerstorecycle.Wehadconsidered
askingcustomerstobringbackthecontainerssothatwecanreuseit,butdueto
hygiene,wedecidedtonotusethisstrategy.

HUMAN RESOURCE PLANNING


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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.

Project Manager
- Chan Koon Qi

Assistant Project
Manager
- Chia Keh Chian

Accountant
- Chan Koon Qi
- Chia Keh Chian

Marketing &
Packaging
Lead by: Cha Yun
Xian

Sales
Lead by: Angela
Wee

Documentation &
Report
Lead by: Chia Keh
Chian

a) Project Manager
As a project manager, Koon Qi leads the team to the teams goal which is to raise
RM2,500 for PAWS.

b) Assistant Project Manager


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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


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.
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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 Jelly
Fruit Juice
Mix 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.
Self-reflection video link: https://www.youtube.com/watch?
v=DgIYAE_uzNE&feature=youtu.be

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a) Profit & Loss Report


Income Statement for Fruit Twist for Business Charity Drive Event
Revenue Sales
Fruit Jelly
Fruit Juice
Mix Fruit Juice

RM 1,704.00
RM
318.00
RM
64.00
RM 2,086.00

Less: Cost of Goods Sold


Fruit Jelly
Fruit Juice
Mix Fruit Juice

RM 310.75
RM 145.20
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
Printing
APPENDIX
Packaging
Receipt books
Total Operating Expenses

RM
RM
RM
RM
RM

Net Profit

RM 2589.40

* All costs of products and operating expenses are recorded approximately due to
certain inaccuracies and round ups*
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325.00
128.80
130.25
21.70
605.55

APENDIX
Group members typhoid
injection medical
certification

23

13

receipt books used during charity drive


event.

Donation cheque for PAWS

24

25

Sponsorship

letters

26

27

28

29

30

31

Emails to PAWS Animal Welfare Society

32

33

Visiting to PAWS, Subang

Making process of the jellies

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Our booth during charity drive event

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