a business plan for bubble milk tea
TRANSCRIPT
Ming chuan university
A business plan for opening take-out milk tea shop in Vietnam
Ming Chuan University _ IBT4
Võ Văn Minh Tuấn
4/1/2014
Table of contents
Chapter 1: Introduction.....................................................................................................91.1 Motivation.........................................................................................................................................................9
1.2Background......................................................................................................................................................10
1.3 The Introduction about Caramel Shop............................................................................................................10
1.3.1 The main field of industrial......................................................................................................................10
1.3.2 The organizational structure....................................................................................................................11
1.4 Caramel shop business overview....................................................................................................................11
1.4.1 Store location...........................................................................................................................................12
1.4.2 Products and services...............................................................................................................................13
1.4.3 Facilities, Equipment, and Technologies.................................................................................................14
1.4.4 Supplier or Partnering Relationships.......................................................................................................15
1.5 SWOT Analysis of Caramel shop:..................................................................................................................15
1.5.1 Strengths..................................................................................................................................................15
1.5.2 Weaknesses..............................................................................................................................................15
1.5.3 Opportunity..............................................................................................................................................15
1.5.4 Challenges................................................................................................................................................15
1.6 STP analysis....................................................................................................................................................16
1.6.1 Segmentation:..........................................................................................................................................16
1.6.2 Targeting:.................................................................................................................................................18
1.6.3 Positioning...............................................................................................................................................19
Chapter 2: Literature review...........................................................................................222.1 Overview......................................................................................................................................................22
2.1.1 Vietnam overview..................................................................................................................................22
2.1.2 Ho Chi Minh City overview..................................................................................................................23
2.2Analysis business environment in Vietnam Market.......................................................................................24
2.2.1 Political environment.............................................................................................................................24
2.2.2. Social and demographic environment...................................................................................................24
2.2.3 Economic Environments........................................................................................................................24
2.2.4 Cultural environments...........................................................................................................................25
2.3 Beverage market...........................................................................................................................................26
2.3.1 Hot Drinks.............................................................................................................................................26
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2.3.2 Soft Drinks............................................................................................................................................27
2.4 Vietnam milk-tea market..............................................................................................................................29
2.5 Government law for starting a new business................................................................................................30
2.5.1 The steps to complete business registration...........................................................................................30
2.5.2 Some noteworthy other legislations in Vietnam Enterprise Law...........................................................31
2.6. Definition of the Business Model Canvas....................................................................................................31
2.7. Contents of the Business Model Canvas table (source: Business Model Generation book)........................32
2.7.1 Value Propositions.................................................................................................................................32
2.7.2 Customer Segments...............................................................................................................................33
2.7.3 Channels................................................................................................................................................33
2.7.4 Customer Relationships.........................................................................................................................34
2.7.5 Revenue Streams...................................................................................................................................34
2.7.6 Key Partners..........................................................................................................................................35
2.7.7 Key Activities........................................................................................................................................35
2.7.8 Key Resources.......................................................................................................................................35
2.7.9 Cost Structure........................................................................................................................................36
2.9 The Business Model Canvas of Caramel milk-tea shop................................................................................37
Chapter 3: Research methodology..................................................................................383.1 Research design............................................................................................................................................38
3.2 Sampling......................................................................................................................................................38
3.3 Data collection..............................................................................................................................................38
3.4 Data analysis................................................................................................................................................39
3.5 Structure.......................................................................................................................................................39
Chapter 4: Marketing plan..............................................................................................404.1 Product and product strategy..........................................................................................................................40
4.2 Product feature and benefit.............................................................................................................................42
4.2.1 Bubble milk tea........................................................................................................................................42
4.2.2 Vietnamese traditional coffee..................................................................................................................42
4.2.3 Tea............................................................................................................................................................44
4.3 Competition.....................................................................................................................................................50
4.4 Promotion and promotional budget................................................................................................................51
4.4.1 Preparation time.......................................................................................................................................51
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4.4.2 Operation time.........................................................................................................................................52
4.4 Proposed Location:.........................................................................................................................................56
4.5 Distribution Channels.....................................................................................................................................56
4.6 Sales Forecast..................................................................................................................................................58
4.6.1 Best scenario............................................................................................................................................58
4.6.2 Worst scenario.........................................................................................................................................59
Chapter 5: Operational Plan............................................................................................605.1 Production.......................................................................................................................................................60
5.1.1 Quality control.........................................................................................................................................60
5.1.2 Product development...............................................................................................................................62
5.2 Location..........................................................................................................................................................63
5.4 Personnel.........................................................................................................................................................65
5.4.1 How to recruit the person for the job.......................................................................................................65
5.4.2 Salary expenses........................................................................................................................................65
5.5 Inventory.........................................................................................................................................................66
5.5.1 Types of stock..........................................................................................................................................66
5.5.2 Stock control method...............................................................................................................................66
5.5.3 Stock control systems – inFlow Inventory Software...............................................................................69
5.7 Organization and Management.......................................................................................................................76
Chapter 6: Startup Expenses and Capitalization...........................................................786.1 Sources of capital.........................................................................................................................................81
6.2 Startup Expenses..........................................................................................................................................81
6.2.1 Buildings or Real Estate........................................................................................................................81
6.2.2 Capital equipment list............................................................................................................................81
6.2.3 Location and admin expenses................................................................................................................82
6.2.4 Advertising and promotional.................................................................................................................82
Chapter 7: Financial Plan................................................................................................837.1 12-Months Profit and Loss Projection..........................................................................................................83
7.1.1 Best scenario..........................................................................................................................................83
7.1.2 Worst scenario.......................................................................................................................................85
7.2 Breakeven point analysis..............................................................................................................................87
7.2.1 Best scenario..........................................................................................................................................87
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7.3 Projected Cash Flow.....................................................................................................................................88
Appendices.........................................................................................................................90I. Logo and Advertising materials..............................................................................................................90
I.1 Symbol......................................................................................................................................................90
I.2 Logo..........................................................................................................................................................90
I.3 Banner.......................................................................................................................................................90
I.4 Billboard...................................................................................................................................................91
II. Menu......................................................................................................................................................92
III. Maps and photos of location................................................................................................................93
III.1 Map of location.......................................................................................................................................93
III.2 The drawing bench.................................................................................................................................94
IV. Detailed lists of equipment owned or purchased................................................................................94
IV.1 Sugar Syrup Dispenser Machine..............................................................................................................94
IV.2 Sealer Machine.........................................................................................................................................95
IV.3 Shaker.......................................................................................................................................................96
IV.4 Measuring Scoop......................................................................................................................................96
IV.5 Thermo blocks pot....................................................................................................................................96
IV.6 Paper cup..................................................................................................................................................97
References:.........................................................................................................................98
List of tables
Table 1: Caramel basic menu....................................................................................................................12
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Table 2: Table of target market buying criteria.........................................................................................19Table 3: Map buying criteria against competitive positioning..................................................................19Table 4: Ranking Caramel product's strengths..........................................................................................20Table 5: Points for 5-D dimension model of some countries (http://www.geert-hofstede.com/).............24Table 6: Hot Drinks Volume Sales – Historical Data & Forecasts, 2010-2017........................................25Table 7: Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-2017.............................26Table 8: The Business Model Canvas.......................................................................................................31Table 9: Caramel milk-tea shop’s business model....................................................................................36Table 10: The List of Caramel's product...................................................................................................40Table 11: Evaluate competitors.................................................................................................................49Table 12: Preparation cost (Unit: 1,000 VND)..........................................................................................50Table 13: Promotional leaflet cost (Unit: 1,000 VND).............................................................................50Table 14: The product price table (Unit: 1,000 VND)..............................................................................51Table 15: The product price of gold time strategy....................................................................................51Table 16: Promotion price (Unit: 1,000 VND)..........................................................................................52Table 17: 12-month promotion forecast for "Gold time" strategy.............................................................52Table 18: Table of special day during year in Viet Nam...........................................................................53Table 19: 12-month promotion forecast for "Gratefulness" strategy........................................................53Table 20: 12-month promotion forecast for "Good partner forever" strategy, stage 2..............................54Table 21: Best scenario of sales forecast...................................................................................................57Table 22: Worst scenario of sales forecast................................................................................................58Table 23: Types of stock............................................................................................................................65Table 24: The advantage and disadvantage of stock control methods......................................................65Table 25: Material inventory.....................................................................................................................66Table 26: WIP inventory...........................................................................................................................67Table 27: Finished goods inventory..........................................................................................................67Table 28: Consumable products inventory................................................................................................68Table 29: Supplier's information...............................................................................................................70Table 30: Months Profit and Loss Projection (Best scenario)...................................................................83Table 31: Months Profit and Loss Projection (Worst scenario)................................................................85Table 32: Breakeven analysis of best scenario..........................................................................................86Table 33: Projected Cash Flow..................................................................................................................88
List of figures
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Figure 1: Caramel organizational structure.................................................................................................9Figure 2: The chart shows the ratio of the population by age group in 2009............................................15Figure 3: The pie chart shows proportion of each age group in target group............................................15Figure 4: The percentage of male and female in each age group..............................................................15Figure 5: The chart shows the monthly income of Vietnamese in 2009...................................................16Figure 6: Hot drinks 2010-2017................................................................................................................24Figure 7: Soft drinks 2010-2017................................................................................................................26Figure 8: Distribution channel...................................................................................................................54Figure 9: Flat organization structure..........................................................................................................75Figure 10: Caramel's structure...................................................................................................................76
List of pictures
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Picture 1: Ho Chi Minh City district 10 map.............................................................................................12Picture 2: Sugar Syrup Dispenser / Fructose Machine..............................................................................14Picture 3: Sealer Machine..........................................................................................................................14Picture 4: A typical sugar level chart.........................................................................................................61Picture 5: Chuan Dai company and their products....................................................................................73Picture 6: Trung Nguyen's distribution agent............................................................................................74Picture 7: Highland Honey Bee Co., Ltd...................................................................................................75Picture 8: Distribution agent of Vietnam Dairy Products Joint-Stock Company......................................76Picture 9: Product of Ngoc Diep shop.......................................................................................................77
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Chapter 1: Introduction
1.1 Motivation
Milk tea(also called bubble tea) is an extremely popular drink in most of Asian countries. It originally started from Taiwan in 1988. Milk teas specialist drink increasingly being offered in cafes, coffees shops and bars.It originates from Asia and is made up of hot or cold tea, milk, sugar and giant black tapioca balls. Ice is then added and the drink shaken to create the bubble effect. Bubble tea is often referred to as pearl shake, tapioca ball drink; bob ice tea and bubble drink among other things. The term "bubble" refers to the tapioca balls in the drink. These chewy tapioca balls, or "pearls," are consumed along with the beverage through a wide straw. Bubble tea is especially popular in many East Asian and Southeast Asian regions such as Taiwan, Brunei, China (including Hong Kong and Macau), Malaysia, the Philippines, Singapore, South Korea, Thailand, Indonesia, Vietnam and Australia populated by urban professionals with high disposable incomes and an interest in alternative eating and drinking venues. Compared to opening a full size restaurant, the startup costs to open a bubble tea cafe are low. The wide range of our contacts & relationships mean we will open a bubble tea cafe with minimal investment ensuring we get the biggest bang for our buck. A bubble tea cafe is not labor intensive, is simple to operate and does not necessitate that the owner be on site. The key is to get things set up correctly in the early stages and to use effective operating systems to save valuable time, effort, and money.
We wish we could calculate the total amount of English breakfast tea I consumed over the past year. While working on our thesis, tea drinking was an integral part of the process. There is something about that piping hot and cold beverage that inspires thought, creativity, focus, and hard work.
In the modern life, a lot of company employees leave their job because they do not find job interesting. They feel pressured and boring. A section of young people today do not like working for the company after graduated, they like to challenge themselves. They wanted to establish their own company where they can show all their best skills and personal passion. We are people belongs to this part. We learn business and we have passion for business.
It goes without saying that necessity is the mother of invention, so merchants created the business to make good use of people’s need of drinking water. In the past, we would drink plain water or tea to quench our thirst. Nowadays, there are much more competitions as more and more prosperous tea cafes spring up. To appeal to more customers, the increased sorts of beverages followed the increase of innovative ideas. Then, bubble tea came into being. Modern people drink beverages instead of plain water. Among that, Bubble tea is a drink in great demand. Imagine this, on a hot summer day; you’re having a cup of refreshing Bubble tea. When having a sip of it, the chewy pearls are full of your mouth. It’s fantastic!
1.2 Background
One of trends which attracts most of the youth is chain of coffee and milk-tea shops. Because they have air conditioning and free Wi-Fi so now they become ideal rendezvous spaces. Many famous milk-tea trade-names appear in recent years such as: Sun flowers shop, Alo tea, -18C, so on. They have a lot of subsidiaries around country. Each year, in Ho Chi Minh area, they also have from 3 to 4 new shops. Especially, around university zones, they usually have about 5 big or small milk-tea shops. This proves that milk-tea is one of favorites drinking of youth community, particularly pupils and students. And we who are Vietnamese students studying in Taiwan are not exception. However, these convenient milk-tea shops still arrears many shortcomings such as: (1) Waiting time too long: Customers who buy take out cups must wait about 10 minutes after they make order then they can get their glasses. At busy time, customers must wait more than 20 minutes. Even when shop is too crowded customers, customers should not wonder why staffs forgot their orders. It is very popular. Customers should learn how to accustom themselves to this problem instead of getting angry. (2) Uncomfortable space: Having a part of community does not like milk-tea shop’s space. Some people want to enjoy milk-tea at home with their family or in the park with their friends. Someone wants to bring milk-tea to their office. But they do not want spend a lot of time for waiting. Besides that shop’s services are not really worthy as they were paid by customers. (3)High price: Because the shop provide air conditions and free Wi-Fi for customers using at shop so these expenses were count on the price of each glass. This makes the price always expensive. But have some customers are not willing to pay for these unworthy services. (4) Take-out milk-tea services do not develop and do not take care. It is still elementary and does not hygienic.
Starting from individual favorite, business passion and faults which are still in bubble-tea market, our group decides to make a take-out milk-tea business plan. We will apply Taiwanese’s service style and service system and combine with new flavors from other countries which we learned from foreign friends in 2 years we study in Taiwan. We hope we can bring convenience to consumers. Besides that we also hope with new processing formula, milk-tea not only a beverage but also a nutrition drink for all ages, from kindergarten to the workers or employees working in large firms, especially females.
1.3 The Introduction about Caramel ShopThe idea to establish Caramel shop stems from general interests of 4 students who are looking to
be challenged themselves after school in the group. We are confident that we will become the first best beverage quality products supplier and professional service style in Vietnam.
With the motto to maximize customer satisfaction, Caramel is always striving to bring products and services with excellent value to our customers, confirmed Caramel brand in Vietnam.
1.3.1 The main field of industrialThe business: We provide the traditional beverages and beverages come from many countries around
the world.(See more our products on menu in Appendices)
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1.3.2 The organizational structureFigure 1: Caramel organizational structure
Member of executive board
- Mr. VõVăn Minh Tuấn (Alyosha): Executive directorwho initiated idea and makes the shop’s development orientation.
- Miss. TrangHồngNgọc (Mizhu): Financial, personnel andmarketing director.
- Mr. Nguyễn Cao Chung (David): Supply and processing director and designer.
1.4 Caramel shop business overviewThe business sector of this thesis belongs to entertainment - beverage field. This kind of business
is quite popular in the Vietnamese current market, from popularly level to premium level. Living standards and income of each person, each household is increasing. In recent years, the number of Vietnamese enterprises as well as foreign enterprises and colleges, universities rose quickly. It makes work and study intensity of people becoming higher, it also makes their free time been gradually narrowed. The take-out milk-tea shop was launched which can meet this need. This type of business model has been appeared for a long time and has been growing in developing countries such as USA, UK, Singapore, Australia, and Taiwan. It is for all social grades and has been gotten population interested. In Vietnam market, this business model also has been existed for 10 years but it has not worked efficiently. They lost consumers’ interest because of their service style and unfocused quality.
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Executive BoardBartenderBartenderSalesmanManager
1.4.1 Store locationBecause Caramel’s main revenue comes from beverages and target customers are people from 16
to 30 ages so our shop must close to school and official, service and entertainment areas. With above address we think it can meet basic requirements of shop. Shop is located on the busy road (Bac Hai Condominium, Ward 15, District 10, Ho Chi Minh City, and South of Vietnam) that has many peoplegoes around andthere are 3 schools, 1big national university, entertainment areas and hospitals near. The area of shop is 20 square meters which enough to meet the sales and product processing.
Picture 1: Ho Chi Minh City district 10 map
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1.4.2 Products and servicesThe main products are milk tea with delicious taste, Vietnam traditional coffee-milk along with
fruit smoothies for refreshment and vitamin supplements during hot days in Ho Chi Minh City. Specially, customers can chose how many percentage of ice and sugar (25% - 50% - 75%) and they can mix drinks with extra foods.
Table 1: Caramel basic menu
Bubble tea flavor
(19,000 vnd)
Coffee-Milk(11,000 vnd)
Tea(12,000 vnd)
Fruit juice/smoothies
(15,000 vnd)
Extra foods(5,000 vnd)
Taro Coffee 100% Ginger (Hot) Orange Pudding + Egg+ Chocolate
Kiwi Coffee-Milk 50-50 Lemon PineappleHoneydew Coffee-Milk 75-25 Honey (Hot) LemonPeach Coffee-Milk 25-75 Herbal Kumquat YogurtPapaya Milk 100% Chrysanthemums Grapefruit HoneyStrawberry Fresh milk (Hot) Papaya Ice-cream
+ Mango + Vanilla+ Chocolate+ Strawberry
Watermelon Red apple GrapeBanana Red tea StrawberryCoconut WatermelonLychee AppleAlmond Passion fruit JellyChocolate Tomato Bubble (small/big)Passion fruit Pineapple MilkRaspberry AvocadoBlackberryGreen AppleGrapeOreo cookie
The services: We apply the hygienic and best quality services. In addition, there will have delivery milk-tea service for bulk buyers.
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1.4.3 Facilities, Equipment, and TechnologiesSugar Syrup Dispenser / Fructose Machineand Sealer Machineimported directly from Taiwan.
Picture 2: Sugar Syrup Dispenser / Fructose Machine
Picture 3: Sealer Machine
Milk tea makingtechnology will follow Taiwan technology.
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1.4.4 Supplier or Partnering RelationshipsThe main raw materials(milk, tea, sugar, pudding …) suppliers comefrom Vietnam. Specially,
milk tea flavorand bubble willimported directly from Taiwan.
1.5 SWOT Analysis of Caramel shop:
1.5.1 StrengthsAlthough we are not the first take out milk tea shop but our strengths are professional service
style and cheaper prices, it lower from 30 to 50% compared to other milk tea brands. We grasp well customers’ interests and tastes.
1.5.2 WeaknessesA young and new business, which was established from the students, having limited capital
resources such as the founders are people who going to graduate; we use our part-time job salary as our main capital. And a small part of our capital is from borrowing our family.
1.5.3 OpportunityBring Asian’s culture echoes; Vietnam taste is sweeter than the Western nations.
Take-out style in professional service is our advantage compare with other milk-tea shops.
Meeting customers’ demand in this sector, specify in district 10 where have many our target customers (students, official employees and the busy people).
1.5.4 ChallengesThe first, competitor is available from our weaknesses, along with the growth of competition
from direct competitors. We must be wise. Our store has more shortcomings than other milk tea stores in the same areas such as: small investment capital and new young brand.
Secondly is the Vietnam consumers taste. Customers are stricter in choosing drink for themselves. Flavor issue is more concerned, but to ensure health requirements. This is a major challenge in the flavor issue as well as improvement of Caramel store’s hygiene during processing drinks.
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1.6 STP analysis
1.6.1 Segmentation:Segmentation is concerned with identifying different groups of purchasers in a market in order to
target specific products and services for each group or segment. According to a research-level there are four major ways of segmenting a market such as: “a Priori segmentation”, “usage segmentation” (also known as declines analysis or pare to analysis), “attitudinal research and cluster analysis” and “needs based segmentation”. We will use the “A Priori segmentation” method. It means the market is split according to pre-existing demographic criteria such as age, sex or social economic status.
Age and sex segmentation:
The analytical results from the survey of population census in 2009 showed that, the proportion of people aged from 15 to 34 is the highest (for both gender), about 37.4%. This is Caramel target customers.
Figure 2: The chart shows the ratio of the population by age group in 2009
0-14 15-34 35-54 55-74 75+0
5
10
15
20
25
30
35
40
45
MaleFemaleBoth gender
(Based on the statistics of page http://www.gopfp.gov.vn/)
In the 15-34 ages group, we can see, people from 15 to 19 ages are most crowded, occupied 28%. The second is the group from 20 to 24 ages; it is accounted about 26%. Two remaining groups 25-29 and 30-34 have proportions respectively are 24% and 22%.
Figure 3: The pie chart shows proportion of each age group in target group
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28%
26%
24%
21%
15-1920-2425-2930-34
(Based on the statistics of page http://www.gopfp.gov.vn/)
Meanwhile, the number of men and women in each age group are about equal in the proportion, the difference is not significant.
Figure 4: The percentage of male and female in each age group
15-19 20-24 25-29 30-3405
10152025
Male Female
(Based on the statistics of page http://www.gopfp.gov.vn/)
Monthly income segmentation:
When segmenting customer by monthly income,Vinaresearch Company made clearly four phrases such as low income, average income, pretty income and high income. Firstly, people who have “low income” that means each month their salary below 4,500,000 VND (equivalent to 6,207 NDT). They are usually students who work part time jobs and poor workers or farmers in remote areas. This group is about 4.4%. The second is “average income” group; they have proportion about 13.5%. They are usually new official employees, students working part time jobs in big city. Their salary is from 4,500,000 VND to 7,500,000 VND (equivalent to 6,207 – 10,345 NDT). Pretty incomer is a person who has salary from 7,500,000 to 15,000,000 VND (equivalent to 10,345– 20,670 NDT). And high income group belongs to people who have salary higher than 15,000,000 VND for each month. These two groups have the highest percentages, respectively 39.4% and 42.8%
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Figure 5: The chart shows the monthly income of Vietnamese in 2009
4%
13%
39%
43%
Low income Average income Pretty income High income
(Based on the statistics of page www.vinaresearch.jp)
1.6.2 Targeting:
We use concentrated marketing. It is a marketing approach that is aimed at connecting with and selling products to a specific consumer group. This strategy calls for taking steps to identify the target market that is highly likely to be attracted to the products, and developing a marketing plan that is unique to reaching that group of consumers. The process also normally includes planning the delivery of products in a manner that is likely to generate repeat business from those consumers. In many cases, concentrated marketing is an ideal approach for smaller businesses with limited resources, since it does not rely on the creation and use of mass marketing, production, or distribution to reach a wide range of potential consumers.
Applying this model in the case of Caramel shop, our concentrationsare middle class who meet these factors: age from 15 to 30, income from 4,500,000 to 10,000,000 VND and busy. We have our own model below:
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While a concentrated marketing approach can help Caramel shop makes the most of a small advertising budget, there are some potential drawbacks with this type of marketing. We will mention more detail in chapter 4.
1.6.3 PositioningThe goal of product positioning is to keep our product on top of our customers’ mind when
they’re considering a purchase. To be successful, product positioning must achieve three objectives: (1) Differentiate your product from the competition’s (2) Address important customer buying criteria and (3) Articulate key product (or company) characteristics.
We use positioning triangle for analysis this part.
Firstly, we must know clearly what is buying criteria our target customer uses to evaluate milk-tea products. We also already assign a quantitative weight to each criterion based on opinion of the people surveyed.
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Caramel's target customersBusyMiddle-class15-30 year olds
Table 2: Table of target market buying criteria
No. Percentage Target market buying criteria (prioritized and weighted)1 10% The origin of bubble2 10% Short waiting time3 10% Quality of product components (tea, milk, pudding, fruit and jelly)4 10% Convenient and delivery services5 10% Hygiene6 15% Location and decoration7 30% Price8 5% Innovation
The second, by using primaryresearch, we find out some famous milk-tea shop in Ho Chi Minh City such as: Sunflower, Tapi tea and Alo tea. They are big competitors of Caramel.
Next, by doing secondary research, we can map buying criteria against competitive positioning. These competitors have already success in some criteria. For example: Sunflower, Tapi tea and Alo tea are famous about their decoration of shop. They are all clean shop and when come to those shopscustomers feel comfortable and relax a lot. Those brand all famous because they have many shops in center of each district in big cities.In 3 mentioned brand, pricing of milk tea in Tapi tea is the cheapest and suitable for almost students. But two most important criteria do not have any brand success and have good feedback from customers.
Table 3: Map buying criteria against competitive positioning
No. Percentage Target market buying criteria (prioritized and weighted)
Competitor
1 10% The origin of bubble2 10% Short waiting time3 10% Quality of product components (tea, milk,
pudding, fruit and jelly)Sunflower
4 10% Convenient and delivery services Sunflower , Tapi tea, Alo tea5 10% Hygiene Sunflower, Tapi tea, Alo tea6 15% Location and decoration Sunflower, Tapi tea, Alo tea7 30% Price Tapi tea8 5% Innovation
After considering overview milk-tea market, we recognize our shop strengths such as the origin of bubble (we can contact with Taiwanese bubble supplier for the best quality), price (we commit our product will cheaper than price on market about 30% but still keep best quality), location (in the middle of residential area) and short time waiting (because we realize that Taiwanese style service more professional that our recent style service. So we believe we can reduce waiting time for customers).
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Table 4: Ranking Caramel product's strengths
No. Caramel product’s strengths
Percentage Target market buying criteria (prioritized and weighted)
Competitor
1 5# 10% The origin of bubble2 10% Short waiting time3 4# 10% Quality of product components (tea,
milk, pudding, fruit and jelly)Sunflower
4 2# 10% Convenient and delivery services Sunflower , Tapi tea, Alo tea5 10% Hygiene Sunflower, Tapi tea, Alo tea6 3# 15% Location and decoration Sunflower, Tapi tea, Alo tea7 1# 30% Price Tapi tea8 5% Innovation
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Chapter 2: Literature review
2.1 Overview
2.1.1 Vietnam overviewVietnam officially the Socialist Republic of Vietnam, is the eastern most country on the
Indochina Peninsula in Southeast Asia. With an estimated 90.3 million inhabitants as of 2012, it is the world's 13th-most-populous country, and the eighth-most-populous Asian country. (wikipedia.org)
Vietnam, a one-party Communist state, has one of south-east Asia's fastest-growing economies and has set its sights on becoming a developed nation by 2020. Vietnam struggled to find its feet after unification and tried at first to organize the agricultural economy along strict collectivist lines. But elements of market forces and private enterprise were introduced from the late 1980s and a stock exchange opened in 2000. Foreign investment has grown and the US is Vietnam's main trading partner. In the cities, the consumer market is fuelled by the appetite of a young, middle class for electronic and luxury goods. After 12 years of negotiations the country joined the World Trade Organization in January 2007. (BBC News)
Vietnam is a densely-populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession hurt Vietnam's export-oriented economy, with GDP in 2009-12 growing less than the 7% per annum average achieved during the previous decade. In 2012, however, exports increased by more than 12%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. In early 2012 Vietnam unveiled a broad, "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises, and the banking sector. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some financial analysts believe it could be as high as 15%. (Index Mundi)
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2.1.2 Ho Chi Minh City overviewHo Chi Minh City formerly named Saigonis the largest city in Vietnam.
Ho Chi Minh City is located in the southeastern region of Vietnam, 1,760 km (1,090 mi) south of Hanoi. The average elevation is 19 meters (62 ft.) above sea level. It borders TâyNinh Province and BìnhDương Province to the north, ĐồngNai Province and BàRịa–VũngTàu Province to the east, Long An Province to the west and the South China Sea to the south with a coast 15 km (9 mi) long. The city covers an area of 2,095 km2 (809 sq. mi) (0.63% of the surface of Vietnam), extending up to Củ Chi District (12 mi (19 km) from the Cambodian border) and down to CầnGiờ on the South China Sea. The distance from the northernmost point (PhúMỹHưng Commune, Củ Chi District) to the southernmost one (Long Hòa Commune, CầnGiờ District) is 102 kilometers (63 mi), and from the easternmost point (Long Bình ward, District Nine) to the westernmost one (BìnhChánh Commune, BìnhChánh District) is 47 kilometers (29 mi)
The result of the 2009 Census shows that the city's population was 7,162,864 people, about 8.34% of the total population of Vietnam, making it the highest population-concentrated city in the country. As of the end of 2012, the total population of the city was 7,750,900 people, an increase of 3.1% from 2011.As an administrative unit, its population is also the largest at the provincial level. The majority of the population is ethnic Vietnamese at about 93.52%. Ho Chi Minh City's largest minority ethnic groups are Chinese with 5.78%. Cholon – in District 5 and parts of Districts 6, 10 and 11 – is home to the largest Chinese community in Vietnam. Other ethnic minorities include Khmer 0.34%, Cham 0.1%. The inhabitants of Ho Chi Minh City are usually known as "Saigonese" in English, "Saigonnais" in French and "dânSàiGòn" in Vietnamese. A varying degree of English is spoken especially in the tourism and commerce sectors where dealing with foreign nationals is a necessity, so English has become a de facto second language for some Saigonese.
Ho Chi Minh City is the economic center of Vietnam and accounts for a large proportion of the economy of Vietnam. Although the city takes up just 0.6% of the country's land area, it contains 8.34% of the population of Vietnam, 20.2% of its GDP, 27.9% of industrial output and 34.9% of the FDI projects in the country in 2005. In 2007, Ho Chi Minh City's contribution to the annual revenues in the national budget increased by 30 percent, accounting for about 20.5 percent of total revenues. The consumption demand of Ho Chi Minh City is higher than other Vietnamese provinces and municipalities and 1.5 times higher than that of Hanoi. In 2007, the city received over 400 FDI projects worth $3 billion. In 2008, it attracted $8.5 billion in FDI. In 2010, the city's GDP was estimated at $20.902 billion, or about $2,800 per capita, up 11.8 percent from 2009. By the end of 2012, the city's GDP was estimated around $28,595 billion or about $3,700 per capita, up 9.2 percent from 2011. Total trade (export and import) reached $47.7 billion, with export at $21.57 billion and import $26.14 billion. In 2013, GDP of the city grew 7.6% by Q1, 8.1% by Q2, and 10.3% by the end of Q3. (wikipedia.org)
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2.2Analysis business environmentin Vietnam Market
2.2.1 Political environmentIn other to have a political stability, Vietnamese law is accumulating and adding international
law: the antitrust laws, intellectual property rights and the patent invention … Vietnamese law, which is improving gradually, creates a healthy competition between domestic and foreign companies. Presently, position of Vietnamese consumers is growing rapidly.
The State’s support policies to promote economic development through fiscal policy and monetary policy to ensure high growth rates, encouraging investment is essential due to the preferential policies: taxes, land, consultancy and support services. We know opportunity isscaling up nationwide production thanks to loans from state banks. And also still have challenges is fierce competition from other corporations.
2.2.2. Social and demographic environmentVietnam's population is currently about 86 million people, ranked 13th in the world, with
increasing levels average 947 thousand people per year. Population concentrated in two major cities of Hanoi and Saigon.
The Vietnamese population structure is in the period of "The golden population structure"in which population of working age groups are approximately higher two times than the population of dependent age groups. Its advantages are the young people make up the majority, appropriate vibrant and dynamic business activities. It also has some difficulties such as causing pressure on employment, education and high unemployment issues.
Average income figures indicate the average income of Vietnam by the end of 2012, approximately 1749 in one year. Predicting by 2013 the Vietnam’s average income reached to 1900 USD. Vietnam’s incomes increases leading to consumers have more choice to ensure their level of satisfaction.
2.2.3 Economic EnvironmentsThe economic growth of Vietnam reached a high intraday in 2005-2007, but in 2008-2009 the
growth rate decreased about 2% by the deflationary policies of the state. In 2010, the economy was soon out of deterioration and gradually recovery and rapidly growth (6.78%). So economic recovery and growth will make customer’s spending for basic needs much more.
According to Professor Pham Song, chairman of Vietnam Medical Council "Vietnam is one of the non-alcoholic beverages markets that has the fastest growth rate in the world. The survey figures showed that an average each Vietnamese person drinks about 3 liters of non-alcoholic beverages per year. Predicting to 2015, the total amount of drinks in Vietnam will increase nearly 50% compared to 2007 in other to serve the consumers’ beverages needs”. This is an advantage for market development of Caramel.
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2.2.4 Cultural environmentsVietnamese cultural environment has some characteristics such as: power distance,
individualism, masculinity or femininity, uncertainty avoidance and long term orientation. Vietnam has a longstanding agricultural culture for thousands of years.Vietnamese people generally are friendly and diligent. People in the north are considered politically sensitive, hardworking and always seek to avoid risk.The Northern greatly influenced by Chinese culture, due to over 1000 years under the domination of feudal China.In addition, Vietnam and China have come together in the socialist path for many decades.According to the assessment of Professor Hofstede (in1980), Vietnam culture belongs to the kind of high power distance, follow the trend individualism and the rate of uncertainty avoidance is average.
Table 5: Points for 5-D dimension model of some countries (http://www.geert-hofstede.com/)
Countries Power distance Individualism Femininity Uncertainty
avoidanceLong term orientation
Vietnam 70 20 40 30 80
China 80 20 66 30 118
Japan 54 46 95 92 80
Thai 64 20 34 64 56
USA 40 91 62 46 29
Denmark 18 74 16 23 (does not have)
Recently, Vietnamese have a new trend in eating that is focusing on healthy. Their eating habits are changing. Besides having a delicious meal, Vietnamese consumers also concerned about food or drink which can to keep healthy. So Caramel need to make strategies which assure about product quality and safety - taste of Vietnamese, especially Southerners like sweet and sour drink. Vietnam consumers have high psychological nationalistic pride. Caramel is taking advantage of the 100 % owned capital Vietnam Company. Vietnamese youths interesting in explore new things, they like to experience themselves.
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2.3Beverage market
2.3.1Hot DrinksTable 6: Hot Drinks Volume Sales – Historical Data & Forecasts, 2010-2017
Hot Drinks Volume Sales – Historical Data & Forecasts, 2010-2017
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Coffee sales (‘000
tonnes)
39.19 42.36 45.42 49.87 54.21 58.78 63.49 68.18
Tea sales (‘000
tonnes)
208.40 220.38 233.24
248.69 266.03
284.81 308.73 322.73
(Note: f = BMI forecast. Source: General Statistics Office,Company information, Trade press, BMI)
Figure 6: Hot drinks 2010-2017
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f0
50
100
150
200
250
300
350
Hot Drinks 2010-2017
Coffee sales (‘000 tonnes) Tea sales (‘000 tonnes)
(Note: f = BMI forecast. Source: General Statistics Office,Companyinformation, Trade press, BMI)
Vietnam’s sturdy economic growth over the next few years will continue to fuel demand for higher value food and beverage products, such as coffee. Vietnam’s massive youth population, for whom visiting cafés and drinking coffee is a growing lifestyle choice, is another major positive. As this group of young, aspirant consumers enters the workforce, the accordant rise in their level of incomes will serve to further buoy the demand for higher-value coffee products. The tea sector is also set to experience strong growth over our five-year forecast period, buoyed by rising incomes and increasing domestic demand.
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These dynamics will continue to attract the sights of multinational coffee producers, in turn imbuing the sector with greater dynamism over our forecast period. As a case in point, Masan Consumer has acquired a 50.1% stake, valued at around VND1.07trn (US$51mn), in the Vietnamese coffee producer Vinacafe Bien Hoa Joint-Stock Company. By acquiring a controlling stake in Vinacafe, Masan clearly wants to put itself in a strong position to leverage on the exciting demand dynamics in the Vietnamese coffee sector. Reflecting Vinacafe’s strength in the Vietnamese coffee sector, the coffee producer recorded an impressive 30% CAGR in its headline sales between 2006 and 2010.
Also looking to capitalize on Vietnam’s coffee potential, Nestlé plans to increase its coffee sourcing from local farmers in Vietnam and has committed to a new coffee factory in the country. The US$270mn factory will be constructed in the south-east province of Dong Nai and will produce Nescafé-branded products for the domestic and international markets from 2013.
Meanwhile, Philippine food major Jollibee Foods Corporation in early 2012 announced it was to acquire a 50% interest in Superfoods Group, which will give it a 49% stake in SF Vung Tau Joint Stock Company in Vietnam and a 60% share in Blue Sky Holdings in Hong Kong. The acquisition of a majority interest in the SuperFoods Group could expedite Jollibee’s international push given the former’s reach across the coffee markets of Macau, Hong Kong and Vietnam.
2.3.2Soft DrinksTable 7: Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-20172010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Soft drinks sales
(MNliters)1,694.54 1,820.11 1,937.14 2,087.21 2,226.31 2,382.92 2,523.34 2,712.36
Carbonated soft drink
sales (MNliters)
846.38 905.34 948.96 1,026.30 1,111.06 1,201.26 1,295.74 1,391.62
Soft drink sales growth, liters (% chg.
y-o-y)
20.37 7.41 6.43 7.75 6.66 7.03 5.89 7.49
Soft drinks sales
(VNDmn)48,430,761 58,936,203 69,720,789 79,057,398 90,567,804 103,254,858 117,311,874 132,630,353
Carbonated soft drink
sales (VNDmn)
7,102,612 9,016,364 10,246,674 11,619,255 13,270,648 15,065,525 17,062,862 19,241,779
Soft drink sales growth,
21.76 21.69 18.30 13.39 14.56 14.01 13.61 13.06
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VND (% chg. y-o-y)
Soft drinks sales
(US$mn)2,531.14 2,853.60 3,314.51 3,800.84 4,403.98 5,078.94 5,836.41 6,631.52
(Note: f = BMI forecast. Source: General Statistics Office,Company information, Trade press, BMI)
Figure 7: Soft drinks 2010-2017
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
Soft Drinks 2010-2017
Soft drinks sales (mn litres) Soft drinks sales (US$mn)
(Note: f = BMI forecast. Source: General Statistics Office,Company information, Trade press, BMI)
We are witnessing a rapid emergence of competition in the Vietnamese soft drinks market. The opportunities provided by a rapid middle-class emergence in Vietnam are firmly within the sights of domestic drinks producers such as PepsiCo Vietnam, Tan HiepPhat and Coca-Cola Beverages Vietnam, and the companies’ aggressive initiatives in terms of product innovation, portfolio expansion and advertising will only instill greater dynamism into the sector.
The maturation of a massive youth population and rising consumer affluence are translating into a burgeoning appetite for soft drinks. As consumers move up the income ladder over the coming years, an accelerating premiumisation momentum in the sector means that value sales are expected to increase more dynamically over our forecast period.
An intensifying influx of sector investments will provide another major impetus to drive industry growth. In particular, we expect domestic soft drinks manufacturers to ramp up their initiatives in terms of product innovation, portfolio expansion and marketing. In the regard of portfolio expansion, local soft drink manufacturers are gradually calibrating their portfolio towards healthier and functional beverages such as fruit juices and ready-to-drink teas as they look to tap into a growing health awareness trend in the country.
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Reflecting a shift of consumer preferences towards healthier beverages, PepsiCo Vietnam and Coca-Cola Beverages Vietnam have been losing market shares in recent years due to declining sales of carbonates, according to anecdotal reports. However, with the health awareness trend remaining well-entrenched over the coming years, we expect more domestic soft drinks manufacturers such as PepsiCo Vietnam and Coca-Cola Beverages Vietnam to expand their non-carbonates offerings going forward. As a case in point, Big C recently introduced its private label fruit juice range Casino Bio to cater to the burgeoning domestic demand for health and functional beverages.
As competition intensifies in the Vietnamese soft drinks market, domestic producers are also looking to differentiate themselves through branding and marketing initiatives. Coca-Cola Beverages Vietnam and Tan HiepPhat have executed some of the biggest advertising campaigns in Vietnam through various formats such as print advertisements, television and the internet. These initiatives have not only bolstered consumer awareness of the different soft drinks brands but also encouraged greater soft drinks consumption in the country.
Moreover, domestic soft drinks manufacturers will continue to engage in product innovation by offering different bottle formats and sizes in an attempt to cater to the varying consumer tastes and preferences. For instance, Coca-Cola Beverages Vietnam and PepsiCo Vietnam produce their soft drinks in varying sizes, and this has facilitated their reach to the end-consumer market. As more companies hop on the product innovation bandwagon, this will bring about greater dynamism in the sector and further fuel sales growth.
2.4Vietnam milk-tea marketBubble Tea was introduced into Vietnam by the end of 2002 and the fastest growing since 2008.
Bubble Tea is a beverage originating from Taiwan with a very strange flavor combinations mild flavor of tea, with delicious pearl and fatty flavor is a phenomenon for teenager and it has quickly became a favorite snack in Vietnam
Most of the business model in Taiwan milk tea sold close small glass style brought while in Vietnam developed a lot of different forms of business such as business chain , sale or sold in place to bring on or delivery to suit every customers , and includes many ongoing promotions . We can say the profits from this business model are very large and very large market now, so here is the investment destination for many business enterprises.
The attractiveness of pearl milk tea is not embedded in the education of clients and students, but also spread to all workers and employees in many occupations, ages. It is easy to catch the milk tea shop adjacent to the school gate, watching the dorm walls, in the streets, in markets, supermarkets,dormitories,condominiums, office buildings...
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2.5Government law for starting a new businessTo establish a new business in Vietnam, any individual or organization needs to understand
clearly and comply with strict legal regulations in the state of Socialist Republic of Vietnam.
2.5.1 The steps to complete business registrationThe first thing should be noted is “Enterprises of all economic sectors shall be entitled to conduct
any business lines that are not banned by law”(based on Article 7- Chapter 1-Vietnam Enterprise Law)
Secondly, we need to follow these steps to establish enterprises and have business registration:
Step 1: To make the business registration (according to Article 15 - Chapter 2 -Vietnam Enterprise Law)
1. Persons decided to establish an enterprise must submit a complete business registration dossier as provided for by this Law to a competent business registration office and shall be responsible for the truthfulness and accuracy of information contained in the dossier.
2. The business registration office shall examine the business registration dossier and issue a business registration certificate within ten working days as from the date of receipt of the dossier; if refusing to issue a business registration certificate, it shall notify the applicant thereof in writing. The notification must clearly state the reason for refusal and requirements for amendment or supplement.
3. The business registration office shall examine and be responsible for the validity of the dossier when issuing a business registration certificate; and shall not be allowed to ask applicants for any document other than those provided for by this Law.
4. The time limit for issuing business registration certificates associated with specific investment projects shall comply with the law on investment.
Step 2: Preparing business registration dossiers of private enterprises (according to Article 16 - Chapter 2 -Vietnam Enterprise Law)
1. Business registration application, made according to a form set by competent business registration offices.
2. Copy of the people's identity card, passport or other lawful personal certification.
3. Written certification of legal capital issued by a competent agency or organization, for enterprises conducting business lines which are required by law to have legal capital.
4. Practice certificates of the director and other individuals, for enterprises conducting business lines which are required by law to have practice certificates as provided for by law.
Step 3: Submitting dossiers and waiting to get certificate of the business registration.
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2.5.2 Some noteworthy other legislations in Vietnam Enterprise Law
2.6.2.1 Article 21Contents of business registration applications
1. Enterprise name.
2. Address of the enterprise's head office; telephone number, fax, email address (if any).
3. Business lines.
4. Charter capital, for companies, or start-up investment capital of the enterprise owner, for private enterprises.
5. Capital share owned by every member, for limited liability companies or partnerships; number of shares owned by every founding shareholder, types and par value of shares, total number of shares of each type eligible for sale offer, for joint-stock companies.
6. Full name, signature, permanent address, nationality, number of the people's identity card, passport or other lawful personal certification of the owner, for private enterprises; of owner or his/her authorized representative, for one-member limited liability companies; of every member or every member's authorized representative, for limited liability companies with two or more members; of every founding shareholder or every shareholder's authorized representative, for joint-stock companies; of every general partner, for partnerships.
2.6.2.2 Article 24 Conditions for the grant of business registration certificates
Enterprises shall be granted business registration certificates if they fully meet following conditions:
1. Registered business lines are not prohibited;
2. The enterprise name complies with Articles 31, 32, 33 and 34 of this Law;
3. There is a head office that complies with Clause 1, Article 35 of this Law;
4. Business registration dossier is valid as provided for by law;
5. Business registration fee is fully paid as provided for by law.
Business registration fees shall be determined on the basis of the number of registered business lines; specific fee rates shall be stipulated by the Government.
2.6.Definition ofthe Business Model CanvasThe Business Model Canvas is a strategic management template for developing new or
documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances. It assists firms in aligning their activities by illustrating potential trade-offs. (http://en.wikipedia.org/)
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Table 8: The Business Model Canvas
2.7. Contents of the Business Model Canvas table (source: Business Model Generation book)
2.7.1 Value Propositionsa. Definition
This block forms the central spine of the whole model. Business Model Generation summarizes the role of this block as follows:describe bundles of products or services that create value for a specific customer segment. It also value delivered to the customer (benefit or cost) and value propositions assigned to customer segments. To understand value propositions clearly, managers can solve customers’ problem smoothies and easily to meet customers’ needs to make them satisfied.
b.Attributes
A good customer value proposition will provide convincing reasons why a customer should buy a product, and also differentiate your product from competitors. Gaining a customer's attention and approval will help build sales faster and more profitably, as well as work to increase market share. Understanding customer needs is important because it helps promote the product. A brand is the perception of a product or service that is designed to stay in the minds of targeted consumers.
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Business Model Generation provides this list of attribute-adjectives:newness, performance, customization, full service, design, brand or status, price, cost reduction, risk reduction, accessibility and convenience or reusability.
In conventional push-marketing, almost all of these will lead to a ‘race to the bottom’. By contrast, in pull-marketing, all of these can lead to strong differentiation and perceived high-value – but only if linked to the shared-vision of the shared-enterprise. Any value-attribute that doesn’t align with the values of the shared-enterprise – for example, an emphasis on price or cost-reduction within a luxury-oriented market – will probably cause more harm than good.
2.7.2 Customer Segmentsa. Definition
Customer segment block defines groups of people or organizations that your business aims to reach and serve. Customer segments have needs that justify a distinct offering. They are reached though different Distribution Channels and require different types of relationships. They have different levels of profitability and may be interested in a sub-set of the Value Proposition.
b. Types
Segmenting your customers into groups according to their needs has a number of advantages. We can sort customer segment in many ways such as mass market (for example, fast-moving consumer-goods), niche market (for example, anglers, doll’s-house collectors, dental supplies), segmented within a market (for example, low-end versus high-end fashion), diversified from an organization’s perspective (for example, Amazon Retail versus Amazon Kindle versus Amazon Web Services)and multi-sided market (for example, newspaper advertising, web-based search)
2.7.3 Channelsa. Definition
The Channels block is shown in the center-right region of the Business Model Canvas. The book asserts that this block: describes how a company communicates with and reaches its Customer Segment to deliver a Value Proposition. It has some functions such as: raising awareness among customers about a company’s products and services,helping customers evaluates a company’s value proposition, allowing customers to purchase specific products & services, delivering a value proposition to customers and providing post-purchase customer support.
b. Types
Direct IndirectOwner - Sales Force
- Web Sales- Own Stores
Partner - N/A - Partner Stores- Wholesaler
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c. Phases
There are some phases we need to note when building this block: awareness, purchase, delivery, and after sales. For each phrases, manager must proposed the proper strategy.
2.7.4 Customer Relationshipsa. Definition
The Customer Relations block is shown towards the upper right on the Canvas. The book states that this block: describes the types of relationships a company establishes with specific Customer Segments. A comment about motivations, which the book summarizes as: customer acquisitions, customer retention and boosting sales (upselling).
b. Types
Moving on, the book summarizes typical roles of relationship-types – I’ve added a descriptor to indicate the interaction type in each case: personal assistance (human to human), dedicated personal assistance (human to human), self-service (human to self), automated service (machine to human), communities and co-creation (partners).The organization may also need ‘hands-off’ relationships with some of its stakeholders – for example, knowledge-management community-of-interest, brand-related fan-club, or product discussion forums.
2.7.5 Revenue Streamsa. Definition
The Revenue Streams block is shown on the lower-right of the Business Model Canvas. The book summarizes this block as follows: the cash a company generates from each Customer Segment and represents the Customer Segment’s quantification of the Value Proposition. Which, bluntly, is likely to give a lethally-incomplete description of the ‘value-returns’ flows of a business-model…
b. Types
The book suggests the following means to generate value-streams: sale of assets, usage fee, subscription fee, leading or renting or leasing, licensing or royalties, brokerage and advertising. All of which, again, implies the specific subset of transactions that can be mapped or transformed directly into monetary form, which is often dangerously-incomplete. All of this needs mapping of pre- and post-’monetization’, with an explanation of each transform – and maintenance of any non-’monetisable’ value!
Beside that we also have 2 other types such as: periodicity (one-time and recurring) and pricing mechanism (fixed list price, bargaining, auction, market dependent, volume dependent and yield dependent).
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2.7.6 Key Partnersa. Definition
On Business Model Canvas, the block is shown over on the far left. The book summarizes this block asdescribes the network of suppliers and partners that make the business model work. And main motivations are optimization and economy of scale, reduction of risk and uncertainty and acquisition of particular resources and activities.
b. Types
The book suggests four different types of partnerships:strategic alliances between non-competitors, competition (strategic alliances between competitors),joint ventures to develop new businesses and buyer-supplier relationships to assure reliable supplies. We might note also that an ordinary ‘hands-off’ or contract-only buyer-supplier relationship actually is also a type of partnership – just not as explicit in its form as a relationship of partners in business. As motivations for partnership-type relationships, the book suggests: optimization and economy of scale, reduction of risk and uncertainty (and also enabling of shared-opportunity) and acquisition of particular resources and activities.
2.7.7 Key Activitiesa. Definition
This block is shown in the upper center-left of the Business Model Canvas. It describes the most important things a company must do to make its business model work.
b. Types
They categorize key activities as production, problem solving and platform or networkwhich is a very incomplete subset, even for a summary of this type.
2.7.8 Key Resourcesa. Definition
The Key Resources block is shown on the center-left of the Business Model Canvas. It describes the most important assets required to make a business model work. It allows an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments and earn revenues.
b. Types
We can categorizes assets as follows: physical (material, facilities, equipment), intellectual (brand, IP, partnerships, data), human (people and skills) andfinancial (cash, line of
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credit, loans). Some time we also can categorize assets as ownership (owned, leased, licensed and acquired from key partners).
2.7.9 Cost Structurea. Definition
This block is shown on the lower-left of the Business Model Canvas. It describes all costs incurred to operate a business model.The book suggests just two business-model cost-structure types:Cost-driven business models focus on minimizing costs whenever possible, aim for lowest-possible cost-structure(e.g. budget airline). Value-driven business models are less concerned about cost, focusing instead on value creation,emphasis on perceived-value such as premium service (e.g. luxury hotel). Such costs can be calculated relatively easily after defining Key Resources, Key Activities and Key Partnerships.
b. Types
For cost-structures themselves, the book suggests the following characteristics: fixed-cost, which will (usually) be same regardless of scale (e.g. manufacturing-plant); variable-cost which linked to volume, scale, consumables etc.; economies of scale which costs reduce with increasing scale and economies of scope which re-use in other contexts.
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2.9 The Business Model Canvas of Caramel milk-tea shopTable 9: Caramel milk-tea shop’s business model
Key partner- Buyer-supplier relationships to assure reliable supplies: we build relationship with Taiwanese bubble supplier and Mongolia flavors supplier. We also have good relationship with reliable domestic suppliers (milk company, tea company and ice-cream company)
Key Activities- Production- Problem solving- Network- Marketing
Value propositions
- Brand: Caramel- Apply Taiwanese services styles more professional, quicker and friendlier.-Price is cheaper than other milk-tea shop in the current market (less than 30%-50%).- Diversity in flavors and sizes of bubble.- New kind milk-teas from others countries.
Customer relationships
- Personal assistancecustomer service.- Our first customers begin from our old classmates, school-mates and acquaintances.
Customer segments
- We chose mass market but we focus on the group people from 12 to 30 years old (students and workers)
Key Resources- Physical- Intellectual- Human- Financial
Channel- Direct channel- use Sales force- Customers come shop to buy directly (buy less than 5 cups) or they can purchase through telephone and we will deliver product to them (if they buy more than 5 cups)
Cost Structure- Fixed costs- Variable costs
Revenue streams- Periodicity: we chose recurring, every 2 months.- Form of generation: asset sale milk-tea products.-Pricing mechanism: fix list price and yield management.
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Chapter 3: Research methodologyThe four purposes of this chapter are (1) To describe the research methodology of this study; (2)
To explain the sample selection; (3) To describe the procedure used in designingthe instrument and collecting the data and (4) To provide an explanation of the statisticalprocedures used to analyze the data.
3.1 Research design
To identify possible strategies Caramel can adopt, the research will take a quantitative analysis
approach; it will focus on descriptive analysis. The descriptive approach will give systematic procedures
the caramel can focus to increase quality and quantity of customer.
3.2 Sampling
Our participants from specific location (District10, Ho Chi Minh City) will be selected
randomly. To request an opportunity to conduct an interview with the relevant persons, the researchers
will send survey to the random people in park, school, office and supermarket.The aim of the researcher
is they will fillingallquestionnaires or interview these people that are involved in planning strategic
development for the Caramel store.
3.3 Data collection
Data collection will focus on both primary and secondary data. Secondary data is information
obtained from previous researches on a subject. Scholars collect and analyze data in most researches;
therefore, collecting secondary data is simple and does not call for a technical approach for analysis. In
this case, secondary data will mainly come from articles and different materials written about milk-tea
article, beverage survey. Plans that are strategically prepared by the government and individuals will
contribute significantly in completing the study
Primary data is the fresh data collected from the field by a researcher. It contributes significantly
in situation analysis because it shows the status quo. The researcher will use quantitative methods of
data collection to collect primary data: questionnaires and interviews. The researcher will prepare for
interviews or send a questionnaire to the people who’s is target strategy in providing solutions to the
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challenges. The researcher will formulate clear research questions in both the interviews and
questionnaires to help the respondent answer the questions clearly.
3.4 Data analysis
Data will be collected in two weeks. The data collected will be analyzed with relevant data
analysis methods and presented in the final stage of strategic planning. Quantitative research methods
will be used for data analysis.
3.5Structure
This study will have different sections including introduction, literature survey, methodology,
results, and interpretation of study results, recommendation and conclusion. Each of the sections
mentioned will be provided with relevant information about creating a strategy to open a milk-tea store
in take-out style properly.
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Chapter 4: Marketing plan
4.1 Product and product strategyA product strategy is the ultimate vision of the product, it as a map guide direction for our shop’s
development. As we mentioned above, our target customers are students and official employers, so our products need to be diversify.
In the first year, we focus on 3 main antlers as bubble milk tea, coffee-milk and tea. We make sure that the product quality always the best and not change our special flavors. Vietnamese customers are afraid ofunidentified products so we must ensure with customers, all bubble export directly from Taiwan. When opening shop, we have total 12 original flavor bubble tea such as: blueberry, chocolate, green apple, honeydew, taro, passion fruit, raspberry, strawberry, vanilla, mango, lychee and peach. In Vietnam traditional coffee-milk antlers, we have some featured products as: 100% ice coffee, ice coffee-milk 50%, ice coffee- 75% milk, fresh milk and honey milk. About tea antlers we have ginger tea (just use in hot), honey tea, herbal tea, lychee black tea, yoghurt black or green tea and lemon tea. In this period, we have some special products which help our shop different from other bubble tea shop are Taiwanese black tea and bubble tea ice cream. Combine with these drinks we deliver extra foods such as circular glass bead, tube glass bead and pudding (see the table below).
Every 3 months, we will launch new product to meet diversity demand of customers as well as bring freshness for our shop.
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Table : The List of Caramel's product
Follow this orientation, in the first 3 months after opening time; we will launch some new products like brown rice green tea, kumquat green tea, bubble tea with flavor black tea and papaya. We also add more 2 flavors ice cream as oranges and mango and some extra foods flavor so customers will have more choice for their mix. Next 3 months, peanut and banana bubble milk tea and chrysanthemums tea are launched to market with one new circular glass bead flavor. 3 last months in the first year, we add a series of 4 new flavors for bubble milk tea product (red bean, watermelon, cherry and coffee) and 2 kinds of tea like red apple and black tea latte. Beside we also continue to supply new favor for glass bead product.
In conclusion, after one year open shop, we total have 20 kinds of original bubble milk tea, 6 kinds of ice-cream can combine with original milk tea, 3 kinds of coffee-milk, 12 kinds of tea and more than 10 kinds of extra foods.
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4.2 Product feature and benefit
4.2.1 Bubble milk teaMilk tea is also known as pearl milk tea, boba milk tea, boba tea, tapioca tea, bobanai cha, pearl
tea, bubble tea, bubble drink, 珍 珠 奶 茶 , tapioca pearl drink, momi, momi milk tea, QQ, or any combination above. The oldest known milk tea consisted of a mixture of hot Taiwanese black tea or green tea, small tapioca pearls, condensed milk, and syrup. Many variations were created, the most common of which is served cold rather than hot.
Milk tea is generally offered in two distinct ways as a fruit-flavored cream drink and a sweetened fruit drink. Most fruit-flavored cream drink includes powdered non-dairy creamers to "cream" the drink, but some shops also offer fresh milk, ice cream, soy milk, or lactic milk as an alternative. These creamed drinks may or may not include tea as its base liquid. A sweetened fruit drink usually includes crushed-fruit smoothies with tapioca pearls to add fun. Milk tea comes in a variety of different flavors, the most popular being the fruity and creamy ones. Some widely available fruity and creamy flavors include strawberry, green apple, passion fruit, mango, lemon, watermelon, grape, lychee, peach, pineapple, cantaloupe, honeydew, banana, avocado, coconut, and kiwi. Other popular non-fruity and creamy flavors include taro, chocolate, coffee, mocha, black milk tea, thai tea, lavender tea, and rose tea. Some cafes and shops offer non-creamy drinks by using fruit pulp syrups like passion fruit, honeydew, strawberry, and lychee. There are now 250 varieties of flavors and choices of a milk tea drink.
4.2.2 Vietnamese traditional coffee
Vietnamese iced coffee is a combination of concentrated coffee brew, condensed (very sweet) milk(do not use evaporated milk; always condensed milk). To brew Vietnamese iced coffee as authentically as possible (though with a specialty coffee twist), we need something called a phin (one kind of filter). A phin is the name for the little coffee brewer used for this brewing style.
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A phin is small filter coffee pot. It looks like a hat and sits upon the top of a coffee cup. Inside is a chamber for coffee and room for hot water. It is very basic and simple, and works.
Coffee is a very popular drink in many countries. Perhaps no one stimulant is used widely and legally worldwide as coffee. Coffee is sold in many forms, granules, powders or instant bag. You can purchase at any time and buy as much as you can. Ha Vo - Vietnamese herbalist told that “Drinking one to two cups of coffee per day can help your body fresh and flexible”.He is also mentioned in his research that due to stimulate nerves, coffee increased the stress hormones like adrenaline, cortical so be able to enhance the ability to "fight back or run away" help us dynamic, flexible and temporary relief of fatigue. Coffee can help relieve boredom and sleepiness monotonous tasks such as driving, watchman, childcare and sick caregivers.For diabetes, used to have an official popular research on Annals of Internal Medicine journal that drink coffee may reduce the risk of diabetes in healthy people, who does not have cancer, diabetes and cardiovascular. Especially, a recent study by scientists at the University of South Florida showed that coffee has the ability to significantly improve symptoms of Alzheimer’s disease, amnesia disease and occur in the elderly.
How to make Vietnamese Iced Coffee-milk by using phin?
Step 1: Preparing tools and materials. All you need are 1 phin, 20 grams ground coffee, condensed milk, 1 cup and ice.
Step 2:Adding materials: Condensed milk and coffee. We put condensed milk into glass, depending to your taste, you can use ratio 1:1,1:2 or 3:4 for coffee and milk. This is a 120ml brewer and can hold a max of 15g of coffee. We're adding around 14g for our brew.
Step 3: We adding the spreader then add about 20ml of 90C water. After that letting it sleeps a bit, allowing the coffee to expand. We call this period is pre-infusion time.
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Step 4:Adding another 100ml of brewing water after letting the pre-infusion take place for 20 seconds. Then add the lid to keep the heat in and let the brew take place. The brew may start off slowly at the start but when the brew is about 2/3 of the way,it is speeding up a bit.
Step 5:When finish we have a cup with rich, concentrated coffee and the layer of condensed milk. We stir the coffee vigorously to mix the condensed milk layer with the coffee brew.At this point, most of the condensed milk is mixed in with the brewed coffee, but it is still hot, so time to add ice.
4.2.3 TeaAccording to statistics, tea is the second most popular beverage in the world after water only.
That's true, because a part can drink the tea in the form of heat, cold; other parts are also many kinds of tea suit individual preferences. In the world we have more than 1,500 varieties of tea. People drink tea from hundreds of years ago by the great benefits of it.
A. Green teaWritten in Medical New Today, green tea has may form such as available bottled and sweetened
with sugar or an artificial sweetener, in single tea bags, loose-leaf, and in instant-powder. Green tea supplements are sold in capsule form or liquid extracts.
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According to the National Cancer Institute, in countries where green tea consumption is high cancer rates tend to be lower, but it is impossible to know for sure whether it is the green tea that prevents cancer in these specific populations or other lifestyle factors. We also have a 2006 study published in the Journal of the American Medical Association concluded that green tea consumption is associated with reduced mortality due to all causes, including cardiovascular disease. Other studies have found that green tea is helpful in preventing dental cavities, stress, chronic fatigue, treating skin conditions and improving arthritis by reducing inflammation.Not only that many studies indicate green tea can fight many diseases, even increased longevity. In large concentrated tea antioxidants called polyphones, it has the ability to fight cancer, osteoporosis and cardiovascular disease-related.
B. Lemon tea Lemon tea is a mixture of tea and lemonade. You can use fresh tea, dried tea or instant tea bag to
make tea. Cooling tea then cut lemon and squeezed it to get juice, per 500ml of tea we can squeeze 1 lemon. Add a few slices of thinly sliced lemon to decoration. If you like sweet drink, you can add honey in this mixture.
Combined the benefits of tea and lemon, lemon tea helps drinkers reduce anxiety. Research has shown that lemonfragrance helps relaxing effect, reducing fatigue, dizziness, nervousness and suspense. As a sharing on privacy blog clairekcreations.com atFebruary 12, 2013, Claire wrote “I have the juice of half a lemon in my tea (some people just have a slice) which filled one cube perfectly. I zested all the lemons first so there was absolutely no wastage and now I have a nice little supply in my freezer ready for baking and cooking”. And she has received 18 comments agreed with her opinion. In addition, in Tracey Roizman’sarticle onhealthyeating.sfgate.com, he use the research of Purdue University to talk about drinking green tea with lemon improves the health benefits of the tea that citrus juice brings out green tea's antioxidants, making them more available for your body to absorb. Catechins, which prefer the acid environment of the stomach, become degraded in the more alkaline conditions of the small and large intestine, where nutrient absorption takes place. Lemon juice can increase the amount of catechins your body extracts from green tea by up to six times. While compounds in tea can inhibit iron absorption from foods in your diet, drinking your green tea with lemon reduces that effect.
C. Ginger teaGinger tea is a mixture of tea with fresh ginger, some time you can add honey or lemon as your
own taste.Ginger tea is now very popular in the world, especially in cold climates.The way to make it is simple and you can do it at home. Firstly, peeling the ginger root and slice it into thin slices. Next,
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boiling water then add the ginger into saucepan and waiting for 15-20 minutes. After that you can use it. Ginger tea’sflavor characterized by warm and spicy.If you add honey and lemon, it will have a little sweet of sugar and sour taste of lemon.
According to Dinh Dung pharmacist’s research (Ha Tinh Pharmaceutical Joint Stock Company),ginger has been used as medicine since more than 5000 years ago because of its valuable medicinal properties. In Burma, China and India, ginger tea is used to prevent and treat the normal flu. In Vietnam, ginger is used to prevent colds, nausea and motion sickness and it is very effective in treating cough. Thank for containing Cineole, ginger can help relieve stress, migraine treatment, and help to refreshing and having a good sleep.Ginger can help to reduce Cholesterol, and reduce heart disease and high blood pressure. In reality, scientific has proven that ginger tea not only increases blood pressure for people with low blood pressure but also help to prevent and reduce high blood pressure for people withblood pressure. Ginger has affection to enhances blood flow to the genitals so the Western countries and North America nowadays, people tend to use ginger instead of Viagra to treat physiologically impotence in male and female. Take one cup of ginger tea before bedtime is not just to protect the health but also can add flavor to the private emotional life of each person.
D. Herbal teaDrinking tea is a habit of many Vietnamese, especially herbal tea. Each type of tea has a distinct
aroma gives a different feeling and great taste for customers. There’s nothing nicer on a cold midwinter’s day than a soothing cup of herbal tea. But besides being a tasty, warming, caffeine-free pick-me-up, herbal tea has lots of wonderful health benefits. From soothing a troubled tummy to easing insomnia and calming a troubled mind, herbs have all sorts of healing powers. Drinking herbal tea can also be a great source of vitamins and minerals.
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The research on Thuc Pham Thuoc newspaper online (Vietnam medical newspaper), they said herbal teas contain antioxidants and they list out all the benefits of herbal tea such as: it can help reduce the risk of heart attack and stroke, protects your bones, give you a sweet smile, support protecting the immune system, helping the body hydrated and enhances metabolic processes.Beside that having a study based on 4,400 women showed that for 6 years, drinking herbal tea regularly reduces the risk of breast cancer in half.
E. Brown rice green tea Brown rice tea, known as "Genmaicha" in Japanese, is a special blend of green tea and roasted
brown rice. Brown rice tea contains flavonoids, antioxidants, trace minerals and vitamins. The health benefits of brown rice tea are comparable to that of green tea. Brown rice tea has a nutty aroma and flavor, and you can serve it warm or use it to make iced tea. It’s very good for health because it’s rich in Polyphones and lower risk of cancer.
Roasted brown rice tea purifies the liver, causing the blood is cleaning. Red blood cells are round and serums are clear. In addition, it also gives you bright ruddy and beautiful complexion, cleaning the blood, not toxic. Less or no longer aches when it's cold.
F. Chrysanthemums teaChrysanthemum tea is made from chrysanthemum flowers, belonging to the Chrysanthemum
morifolium or Chrysanthemum indicum species, which is extremely popular in East Asia, specifically China. Chrysanthemum flowers are usually dried and boiled in hot water in a teapot, cup or glass, to prepare this tea. Sugar or honey is also added to chrysanthemum tea and occasionally, wolfberries are included. The tea that is prepared is transparent and can be bright yellow or pale in color, exuding a floral aroma. In China, after a pot of chrysanthemum tea is emptied, hot water is again added to the
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flowers. This produces a tea that is less strong than the previous one. The process is repeated several times, until the flowers lose their aroma completely. Traditional Chinese medicine practices still use chrysanthemum tisane for treating conditions such as sore throat and fever.
Since long time, people consider chrysanthemum as a kind of herbal tea, which can anti-inflammatory, analgesic and anti-ulcer. Furthermore, compared with other herb teas have heat effect; chrysanthemums also help brighten the eyes, making mental clarity, lowering blood pressure. Chrysanthemums can consistent with both children and adults. In particular, efficient cooling effect of these flowers will be very good for those who regularly have high temperature, heat due to office work, often sitting at a computer, facing stress due to work pressure, less time campaigning and conditions not eating enough nutrients.Additionally, based on information in report of Dan Tri online newspaper, we can summarize the benefits of chrysanthemums tea including as stomach cramps treatment, migraine treatment, reducing dark circles under eyes, improving sleep and treating cramps during menstruation.
G. Kumquat green tea
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Kumquat green tea is a famous beverage. It is not only a beverage, Kumquat green tea has many health benefits as:Kumquats are low in calories (8 kumquats have little more than 100 calories) and they are full of antioxidants, vitamins, minerals (copper, calcium, potassium, iron, selenium, zinc, manganese), and lots of fiber. Kumquats have polyphenols in them like green tea and beta-carotenes important for your immune system, and even great zeaxanthines, and lutein that are important for eye health. Kumquats contain vitamins A, B’s, C, and E which are important for keeping way degenerative diseases.
H. Red apple tea Red apple tea although do not have tea components in raw materials but is still considered as a
good cooling tea is for summer. In addition to red apple tea has many health benefits such as: anti-allergy, curing low blood pressure and anti-cancer.
Red apple tea in combination with ginger tea will become a suitable tea in cold winter days. Ginger has moisturizing effect, cold treatment, the sweet ofred apple soothes the throat, and apple juice is very good for those with sore throat in cold season.
4.3 CompetitionWe use the scale from 1 to 5 to evaluate the strengths and weaknesses of competitors as table
below:
Factor Me Alo Tea Sun Flower
Api tea
Product 4 3 4 3Quality 4 3 4 3Service 4 3 3 2Selection 3 2 5 2
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Price 5 3 2 2Location 3 3 5 5Company Reputation 1 2 5 3Appearance 3 3 5 5
Table 10: Evaluate competitors
As you can see the table, Sunflower is taking advantage about the quality. Alo tea is one of the first brands that have been sold the milk-tea but they cannot keep their performance when they began. The quality of Api tea is low too because their target customer are for the one who want cheap product so the customer cannot expect too much their quality
The service of our competitors is about the same. It is the Sai Gon culture because in the south of Viet Nam, we always focus on service. We have a statement: “Customer is the god”. So if any store in Ho Chi Minh City doesn’t treat customer like that. They are going the wrong way.
In Alo tea and Api tea, the customer don’t have too much the selection to choose for themselves. Contrast to Sunflower, they selection is diversified .Their menu have many kind of milk-tea favor, juice favor and the coffee favor also. But this is the disadvantage of Sunflower also because they don’t have their unique flavor to attract more customers.
About the price, the Sunflower is higher than the other competitors. About 20-30% cost compare with Api Tea and Alo Tea.
The location is very importance for the business, the location of our competitor is very good. The location of Sunflower is on the street which has many people go on this every day. The Alo Tea is near the Sunflower and the Api tea is near the school.
4.4 Promotion and promotional budget
4.4.1 Preparation timeEvery shop must have a hanging billboard to gaining brand awareness and getting
customers’attention7. Its price is quite expensive, around 1,550,000 VND. Beside brand hanging billboard, we are planning to hanging banners in front of our shop and in main streets of district 10, especially which places near our shop. By estimation, we need to total 5 banners; each costs 200,000 VND so total we spend 1,000,000 VND for banner expense.Because our shop located in condominium where have many other shops so we need a big stand billboard putting on pavement front of the shop. This billboard costs about 1,000,000 VND. This table below shows all opening cost. (Unit: 1,000 VND)
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Table 11: Preparation cost (Unit: 1,000 VND)
In addition, to enhance branding, we will distribute leaflets to 4 schools in this region during 2 first months. The first month (scheduled in July 2014), we distribute 500 leaflets and the next one, quantity of leaflets will decrease, maximum is 400. So the budget for this expense will around 300,000 VND. (Unit: 1,000 VND)
Table 12: Promotional leaflet cost (Unit: 1,000 VND)
4.4.2 Operation timeThe beverages price in Vietnam market is from 20,000 VND to 50,000 VND. It is pretty high for
students and who have low income. As we mentioned in some parts above, our main target is student and office employees so we try to keep the price as low as possible. We accept to get low profit in order to have loyal customers. Base on internet survey and interview bubble tea shop’ owners in Ho Chi Minh City, we see the average cost for one bubble tea cup is around 5,000 to 7,000 VND, cost tea and coffee-milk arefrom 1,500 to 4,000 VND and extra foods cost just about 2,000VND. These prices coincide with costing of our group. After consideration and calculation, we use cost plus method to set up the original price for each category and collect revenue as table below:
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Table 13: The product price table (Unit: 1,000 VND)
We commit that our shop’s price is the lowest and best price but always maintain the best product quality. In the intense competition environment of Vietnam bubble tea market today, in order to attract customers from the other shops we proposed 4G strategies as follows: (1) “Gold time” strategy, (2) “Gratefulness” strategy, (3) “Good partner forever” strategy and (4) “Gift” strategy.
A. “Gold time” strategyWe apply “Gold time” strategy for each category in daily life. Base on customer behavior, we set
up table gold time as follow:
Table 14: The product price of gold time strategy
Coffee-milk is a popular morning drink so its gold time will be from 8:00 to 9:00, which have almost employees on the way go to their company. From 12:00 to 13:00 is the break time of all organization (schools and companies) and the weather in this period is very hot.It makes people feelconstraining.Not only that, at this time, there is a large parent to pick up students, they have to wait and tired under the sultry sunshine. In that case, they want to find something cold, a little sweet and saving time. Tea is their best choice. So it is suitable to make this period as tea gold time. About bubble tea, we chose gold time from 17:00 to 18:00, coincide with time students come back home after class. Because bubble tea is student favorite drink so we will have change to increase product quantity.
Promotional budget for this strategy is pretty large.The reducing price for each product is also a promotional price or in other words that this amount will be directly subtracted from the profits. We
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have a summary table below to make clear this opinion.
No Product Original price Price in “Gold time” Discount price1 Coffee-milk 15 11 42 Tea 12 9 33 Milk tea 19 14 5
Table 15: Promotion price (Unit: 1,000 VND)
“Gold time” strategy happens in 1 hour for each category product for every day. So the maximum number of products can be consumed for each type of product in 1 hour, as follows (the predictedfigures): (1) from 12 to 25 coffee-milk cups, (2) from 20-25 tea cups and (3) from 20 to 30 milk tea cups. We have a table counting promotion cost in 12 months as below:
Table 16: 12-month promotion forecast for "Gold time" strategy
B. “Gratefulness” strategyFollowing “Gratefulness” strategy, “objectivecustomers” will get free all kinds of extra foods
such as: pudding, bubble, ice-cream or jelly. But each cup just can choose one types of extra foods. What is “objectivecustomers” mean? We apply this strategy for specific objects, for instance: if you are a student and come to our shop buying drink in Vietnamese Student’s Day (9 th January), you can choose one of any kind of extra food you prefer without additional charge. We have 9 special days, in detail as Vietnamese student’s day, International women's day, Reunification day, International Labor Day, Children day, Remembrance Day, Vietnamese national day, Vietnamese women's day, Vietnamese teacher dayand Christmas day. Each special day corresponding to one object, respectively student, female, everyone, employees, children, martyrs and wounded soldiers, every one, female,teacher and every one. As you can see, no special day for male and our shop think it is not fair for male customers so we set up a day for male customer in 3rd August. This day called Caramel male day. We hope with this
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strategy we can meet customers’ psychological demand. And with exactly name of this strategy, we can express gratitude to all interested customers to our stores. For summary information of “Gratefulness” strategy, you can look at table below:
No Date Meaning Objects1 9th January Vietnamese Student’s Day Student2 8th March International Women's Day Female3 30th April Reunification Day Everybody4 1st May International Labor Day Employees5 1st June Children Day Children6 27th July Remembrance Day Martyrs and Wounded Soldiers7 3rd August Caramel Male Day ^^ Male8 2ndSeptember Vietnamese National Day Everybody9 20th October Vietnamese Women's Day Female10 20th November Vietnamese Teacher Day Teachers11 24& 25th December Christmas Day Everybody
Table 17: Table of special day during year in Viet Nam
This strategy only applies to one special day of each month so in other to costing, we based on the estimated number of products consumed per day. (Unit: 1,000 VND)
Table 18: 12-month promotion forecast for "Gratefulness" strategy
C. “Good partner forever” strategy Stage 1 of “Good partner forever” strategy will happen in the first opening week. If customers
like our Facebook page they will have “buy 1 get 1 free” for all product categories. So what should our customer do to get discount on this strategy? Very simple! Firstly, they come to Caramel website (https://www.facebook.com/CaramelLovefromTaipei) and click the button “Like” (they can do it at home or at Caramel shop). Then waiting for 5 minutes, they will get confirms message like this “Congratulations, you get "buy 1 get 1 free". Please come to Caramel shop to get it today”. If they do not use smartphone, they can leave their mobile phone number inbox and wait for receive the same confirm message. After that, they print or capture this message and show it for seller when they buy products. Some important regulations when joint this even that: (1) Valid confirm message is which received in 24 hours (remember attach message time when you capture or print message out). (2) One Facebook or one mobile phone number just has 1 confirm message. If customers do not follow these regulations, they are not allowed to take part in.
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Promotional budget for this stage will counted based on our estimation. Assuming, we have 60 customers per day and each person at least have 2 products. So in this week, the total products we sold out are: 60 people * 2 products * 7 days = 840 products. But we have 3 difference categories so we will pick the highest cost to calculate. So the total budget for “Good partner forever” strategy in stage 1 will be: 840 products * 7,000 VND = 5,880,000 VND.
Stage 2 of this strategy is spending for people who are already Caramel’s friends on Facebook. Every month, we will randomly select 10 lucky customers who will get “buy 1 get 1 free”. They will get the message “Congratulations, you are 1 of 10 lucky customers get "buy 1 get 1 free". Please come to Caramel shop to get it this week”. This message is only valid for 1 week. Lucky customer list will be announced on the 15th day of each month on Caramel’s Facebook.
Here is strategy’s budget:
Table 19: 12-month promotion forecast for "Good partner forever" strategy, stage 2
D. “Gift” strategy“Gift” strategy applies for friends of Caramel’s employees. They will get 10% off when buying
products. Of course it only happens when it does not coincide with time of other promotional strategy.
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4.4 Proposed Location:
To sell a product like milk-tea, we need a location near our target customer. It needs to be near the school and the office also. Once more thing, it need to be cheap and enough space to operate effectively the store. The store must be easily visible to customer eye.It must be in convenient way for customer to get product quickly. The store must be locates in area that don’t have too many competitor because It can harm the revenue of the store through the time.
4.5 Distribution ChannelsThe chain of businesses through whicha goods or service passes until it reaches the end
consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels have two different types as direct and indirect forms. A "direct" channel allows the consumer to buy the good from the manufacturer and an "indirect" channel allows the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.
Figure 8: Distribution channel
Our shop – Caramel- is individual business, so we use direct channel or zero level channels. It is includes 3 methods like: retail outlets (take-out), phone order selling (delivery directly to customer house) and internet order selling.
A. Retail outlets (take-out)Take out milk-tea is not strange with the Taiwanese or the Western people. It’s one of the best
ways to delivery product to customer that not only save cost but also save time. Although the cost is the advantage of this channel but the quality is still guaranteed .The disadvantage of this channel is the customer cannot enjoy product at the store. So we decide the target customer is the people don’t have
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much time, money and want a convenient product. This is our main delivery product channel, the store will open from 11 AM to 11 PM. Mostly the product will produce when customer order.
B. Phone order selling (delivery directly to customer house)The delivery product service is the convenient ways to bring the product to the customer who
don’t have time to go to the store and order. The demand of coffee in school, office is very high in Viet Nam. Mostly people are taking the product that is unidentified original may can harm they healthy. We will offer them the coffee with the reasonable price and still guarantee the quality. Customers just stay at home, office, school or park, or even on the street, can make phone call by the number +84 16 693xxxxx (hotline) for us and we will have staff deliver to them. If customers live nearest shop, delivery fee is free. If not, delivery fee will be from 5,000 to 10,000 VND (depend on their address). One more requirements to carry out customers’ delivery are buying more than 5 cups. The criterion of this method is convenient, save time and money for customer, this channel we will deploy after three month opening the store.
C. Internet order selling This is modern channel we will apply when we going open to store. With the high developed
internet in Viet Nam, we will establish a selling product tool online through Facebook, Twitter or Yahoo. The customer can make online order through Facebook address https://www.facebook.com/Caramelmilktea or nick skypeCaramel_milktea heaven. And the delivery have carried out must be meet the same minimum requirements of phone selling.
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4.6 Sales Forecast
4.6.1 Best scenario
Table 20: Best scenario of sales forecast
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4.6.2 Worst scenario
Table 21: Worst scenario of sales forecast
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Chapter 5: Operational Plan
5.1 Production
5.1.1 Quality controlWe are really emphasizing the quality of products here because the Bubble Tea team put good
quality products as the key to a successful bubble tea business. We have tested every single one of our products to ensure we have the best experience to tell you about our products and we ensure we source from the best. We have personally been to Taiwan, been to the factories to see how our stock being made and questioned where all products and raw ingredients come from. We have the utmost confidence that we can supply the best quality products to you and have the knowledge how to make them.
5.1.2 Product developmentWhen opening shop, we have total 12 original flavor bubble tea such as: blueberry, chocolate,
green apple, honeydew, taro, passion fruit, raspberry, strawberry, vanilla, mango, lychee and peach. In Vietnam traditional coffee-milk antlers, we have some featured products as: 100% ice coffee, ice coffee-milk 50%, ice coffee- 75% milk (bạcxỉu), fresh milk and honey milk. About tea antlers we have ginger tea, honey tea, herbal tea, lychee black tea, yoghurt black or green tea and lemon tea. In this period, we have some special products which help our shop different from other bubble tea shop are Taiwanese black tea and bubble tea ice cream. Combine with these drink we deliver extra foods such as circular glass bead, tube glass bead and pudding. In conclusion, after one year open shop, we total have 20 kinds of original bubble milk tea, 6 kinds of ice-cream can combine with original milk tea, 3 kinds of coffee-milk, 12 kinds of tea and more than 10 kinds of extra foods.
A. Vietnamese traditional coffee: Vietnamese iced coffee is a combination of concentrated coffee brew, condensed milk.
Benefits of Vietnamese traditional tea:
- Coffee could reduce your chances of getting skin cancer (if you are a woman).- Coffee could help keep your brain healthier for longer
B. Green tea: Green tea has increasingly become a very popular drink worldwide because of its immensely powerful health benefits. It is extraordinarily amazing what green tea can do for your health. And if you're not drinking three to four cups of green tea today, you're definitely not doing your health a big favor.
Benefits of green tea
- Green tea and cancer: Green tea helps reduce the risk of cancer.- Green tea and heart disease: Green tea helps prevent heart disease and stroke by lowering the
level of cholesterol.
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- Green tea and Anti-aging: Green tea contains an antioxidant known as polyphenols which fight against free radicals.
- Green tea and weight loss: Green tea helps with your body weight loss.C. Lemon tea and Ginger tea: Since ages, tea has been associated with a lot of medicinal benefits.
In fact, very few things are as refreshing or energizing than having a cup of tea. While this drink is available in various brews and flavors all across the world, one variety that rules the heart of many is lemon and ginger tea.
Benefits of lemon tea and Ginger tea:
- Strong and beautiful hair: For a lot of people, hair problem is an indispensable fact of life. Whether it’s an itchy scalp, hair loss or a receding hairline, effects are mostly psychological; sometimes even leading you to the edge of depression.
- Smooth and flawless skin: Lemon and ginger tea has been used since ages to stop or cure several health disorders. Believe it or not, they have countless medicinal benefits.
- Prevents nausea, cold and flu: Natural lemon and ginger tea is an instant cure for vomiting and motion sickness. It also works as a natural remedy for cases of flu and cold.
D. Herbal tea: Drinking tea is a habit of many Vietnamese, especially herbal tea. Each type of tea has a distinct aroma gives a different feeling and great taste for customers. Herbal teas are often their physical or medicinal effects, especially for the stimulant, relaxant or sedative properties. The medicinal effects of certain herbs are discussed under herbalism.
Benefits of herbal tea:
- Achieving a more calm and relaxed state of mind- Aiding with stomach and digestive problems - Relieving stress- Promoting a good night’s sleep
5.2 LocationShop is located on the busy road (Bac Hai Condominium, Ward 15, District 10, Ho Chi Minh
City, and South of Vietnam). Ho Chi Minh City is the economic center of Vietnam and accounts for a large proportion of the economy of Vietnam. The city takes up just 0.6% of the country’s land area. It contains 8.34% of the population of Vietnam. In 2007, Ho Chi Minh City's contribution to the annual revenues in the national budget increased by 30 percent, accounting for about 20.5 percent of total revenues. The consumption demand of Ho Chi Minh City is higher than other Vietnamese provinces and municipalities and 1.5 times higher than that of Hanoi. There are many people goes around and 3 schools, 1 big national university, entertainment areas and hospitals near.
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5.3 Legal environment
An important issue need to keep in mind before opening business shop is a legal issue. An issue seemed pretty simple but if not well prepared can cause a lot of unnecessary troubles. We should have: (1) business license, (2) tax code and (3) certificate of hygiene and food safety.
A. Business license
According to the provisions in 52 article of decree 43/2010 on the business registration: individual, group of individuals or households representative can sent a request for registration to the district business registry office where business located. This charter also states that business which located in one place, use no more than ten employees, do not have private seal and have responsibility with their whole property for business operations, will permit to apply individual business registration. Therefore, our shop will register this type of license. The necessary documents for registration include: ID card, copy of lease agreement, household registration to the People's Committee to make business registration procedures. Then within seven days we will receive a license. The maximum fee is 100,000 VND.
B. Tax code
We need go to the tax department to make the tax code. When Caramel milk tea shop start to operate, will have a tax collector come to collect taxes. This tax called license tax, about1 million per year. Milk tea shop’s tax per head monthly fluctuating from 200,000 to 1 million VND depending on how large is your shop. Compared with the duty of other types of business, tax of beverages services is insignificant. Under the provisions of circular no. 84/2008ATT-BTC dated 09/30/2008 of the Ministry of Finance, and guiding the implementation of decree no. 100/2008/ND-CP of the Government dated 8/9/2008, the detailing a number of articles of the Tax Law on Personal Income, from 1/1/2009, will abolish corporate income tax applies to households, individual business and only collect the personal income tax. In Caramel case, we are a household which has more people to join the business, but only one person named in the business registration so this guy will be taxpayer. Taxable income from business is determined by income deducting reasonable expenses relating to the taxable income generated from tax in the business period. The reasonable expenses include salaries, wages, remuneration and other payments to employees, costs of materials, commodities used in the manufacturing business, depreciation, fixed assets maintenance which used in the business; interest payments, administrative costs, taxes, fees and charges payable under the provisions of the law are included in the cost and other expenses involved. Determining revenue, cost-based norms, standards, regime and documents and accounting books are prescribed by law.
C. Certificate of hygiene and food safety
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Other important document is certificate of hygiene and food safety. To get this certificate, we and our staffs will take a medical examination at the preventive medicine centers. You will get a blue card which certificate you do not have infectious diseases. Some days after, you and staffs go to hygiene and food safety training class. This class happens in one morning, when you finished answering multiple choice questions, 5 days later, you will receive a white card. Bring these cards and all business licenses go to People’s committee to sign up hygiene and food safety. Within 10 days there will be people to check out your shop will then be issued a hygiene and food safety certification.
5.4 Personnel
Human resource is a critical part of the operation management of our shop. Because we are a small business so we just need 2 kinds of employees as: seller and bartender. They will work for us as part time employees. So we will pay salary by the hour. This is the best choice to save financial budget for small business.
5.4.1 How to recruit the person for the jobWe will go to ThiNghe Employment Exchanges Center (http://www.vieclamhcm.net/) to hire
employees.Our main target is workers and students who want to work part time job. The peoplewho meet require conditions must know a little or have experience about dispensing skill, healthy, friendly and eye catching appearance. For more detailed about dispensing skill, our workers, especially students will be trained dispensing skill in two weeks or at least they must have dispensing certificate.About healthy, employees must have a strong healthy to do the job at least for5 hours per day.The last but not least, friendly condition or say other word is communication skill which should along with dispensing skill and healthy is very important when building strong brand in customers’ mind.
5.4.2 Salary expensesAs we mentioned above, salary will be paid by the hours for our employees. Our shop will open
from 8h:00 o’clock in the morning to 23h:59’ o’clock in the evening, totally 16 hours per day. We divided into 3 periods working: (1) 8h to 12h, (2) 13h to 17h and (3) 18h to 23h59’. The employee must work at least 150 hours per month. Each hour will cost 7,000 VND. This is a salary for one position (seller or bartender) if they chose working full-time.
Salary expense for 1 month (1 person)(unit: 1,000 VND)
Period 1 (8h to 12h)
Period 2 (13h to 17h)
Period 3 (18h to 23h:59’)
1 day 35 28 42Month has 30 days 1050 840 1,260Month has 31 days 1085 868 1,302
Based on the table above, if one person works full time, one year we will pay for the total:
(1,050 + 840 + 1,260) *5 + (1,085 + 868 + 1,302) * 7 = 38,535(unit: 1,000 VND)
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But we have 2 positions, so our salary budget will cost: 38,535* 2 = 77,070(unit: 1,000 VND)
5.5 InventoryAccording to the Merriam- Webster Dictionary, inventory is defined as “The quantity of goods or
materials on hand”. Inventory is also known as “an itemized list of goods or valuables, with their estimated worth; specifically, the annual account of stock taken in any business” (online Dictionary.Com).
5.5.1 Types of stockEverything we use to make our products, provide our services and to run our business is part of
our stock. There are 4 main types of stock: (1) raw materials and components which are ready to use in production, (2) work in progress products which are stocks of unfinished goods in production, (3) finished goods ready for sale and (4) consumables. In our shop, we have all 4 types of stock, take a look on below table for more detailed:
No Types of stock Items
1 Raw materials and componentsTube glass bead, circular glass bead, flan-cake powder, bubble beads, coffee ground, tea ground, cream powder, sugar.
2 Work in progress products Honey, sugar syrup. 3 Finished goods ready for sale Fresh milk, ice cream.4 Consumables Plastic cups, straws, plastic bags, plastic
covers.Table 22: Types of stock
5.5.2 Stock control methodAn important question we need to consider in inventory management that “How much stock
should we keep?” We considered 2 avenues to keep stocks that are: (1) Keeping little stock and negotiating with suppliers to deliver stock as we need it and (2) Keeping lots of stock. Analyzing advantage and disadvantage of 2 avenues, we have a summary table to compare as:
Avenue 1:Keeping little stock and make negotiation with suppliers Avenue 2:Keeping lots of stock
Advantage
Efficient and flexible Lower storage costs Can keep up to date and develop
new products without wasting stock
Easy to manage Low management costs Never run out Buying in bulk may be cheaper
Disadvantage
Meeting stock needs can become complicated and expensive
Might run out of stock if there's a hitch in the system
Dependent on the efficiency of suppliers
Higher storage and insurance costs Certain goods might perish Stock may become obsolete before
it is used Capital is tied up
Table 23: The advantage and disadvantage of stock control methods
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Avenue 1 is suitable with a fast-moving environment business where products develop rapidly, the stock is expensive to buy and store, the items are perishable or replenishing stock is quick and easy. While avenue 2 suits business which have sales are difficult to predict, we can store plenty of stock cheaply, the materials we buy are unlikely to go through rapid developments or they take a long time to re-order.
Caramel is a small and individual business and our main product are beverages which always need to keep fresh. Our financial resource is also limit. So we will use avenue 1 combine with fixed interval stock control method. Each commodity group will have different storage time and importing period.
A. Raw materials
Raw materials include tube glass, popping, jelly, powder, sugar, milk powder, coffee ground and tea ground used in the production of goods. A milk tea shop typically acquires raw materials from one or more producers or suppliers (see more detail in supplier part).
Because raw materials for beverage is the kind of foods can storage and preserve for a relatively long time, the maximum time is about 1 year. Product unit of these items are jars and big bags. To ensure convenience in importing goods and saving in shipping as well as ensure freshness of raw materials, we are going to purchase every 3 months. The number of commodities imported is declared as the table below:
Table 24: Material inventory
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B. Work in progress (WIP) products
There are many definition of WIP product, but this definition “That part of a manufacturer's inventory that is in the production process and has not yet been completed and transferred to the finished goods inventory” is most suitable with our shop. As we mentioned above, our shop WIP products are honey and sugar syrup. This kind of component occupies very small percentages of main products and they can be preserved in one year. To avoid wastage and saving costs, we are going to make order every 6 months. Because these items have the same distributor with raw material so we can combine these orders to minimize transportation costs.
Table 25: WIP inventory
C.Finished goods ready for sale
This kind of items including fresh milk and ice cream, they are perishable. So they should not be storage too long because it will not be good for the health and does not safety food and hygiene. With this group, we are going to import every week to ensure products’ freshness.
Table 26: Finished goods inventory
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D. Consumables
Consumables are products that to serve the products packaged and help customers remember our brand when they have demand, such as: plastic cups (500 ml), paper cups (500ml), 2 kinds of straw, plastic bags and plastic cover. Purchasing in bulk will get discount and save the shipping cost, and this products group is not damaged by the time; so with this group of products, we are planning to order enough product for 1 year.
Table 27: Consumable products inventory
5.5.3 Stock control systems – inFlow Inventory SoftwareA. Introduction about inFlow Inventory Software
We use “inFlow Inventory Software” (Inventory management software) which support update information and management the volume as well as the quantity of inventory in business. This is an easy using program but have full features. This software designed for small to mid-sized businesses. By using inFlow, we can save time on paperwork, fulfill customer needs more accurately, and free up cash held in excess inventory. InFlow can help track inventory, take customers’ orders, reorder stock, generate reports, and much more.
Founder is a small group of people in Toronto, Canada who are passionate about building tools to help other businesses. They believe that software should be easy to use, contains lots of powerful features, and be made beautiful for people.
According to the program manufacturer, they said “since 2007, inFlow has been used by over 210,000 users in 60 countries across countless industries. They have retailers, wholesalers, manufacturers, e-commerce, professional services, healthcare, government, etc. using our software. InFlow is even being used in medical clinics, casinos, and aviation schools”. To understand clearly or download for using, you can access their website http://www.inflowinventory.com.
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B. Some features related to inventory management
Firstly, “Manage Products and Inventory” which includes these categories: product list, barcode, multiple units of measurement, multiple locations and sub-locations, full movement history and assemble products from bill of materials. This feature helps user keep their products organized with pictures, prices, and categories, use barcode scanners to manage inventory more quickly and accurately, use multiple units of measurement (for instance: buy by the case, track inventory by the piece, and sell by the dozen), get a full history of any inventory movements or adjustments to track down any problems or theft and automatically assemble finished products or packages from raw materials, updating the inventory accordingly.
Secondly, “Reorder stock from vendors” which has reordered stock, product cost tracking and print or email purchase order. These entries have utility respectively as automatically generate purchase orders for products that are low in stock, automatically keep track of product costs, using a moving average if they change and ensure accuracy by printing or emailing purchase orders with both own product codes and the vendor's product codes.
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5.6 Supplier
Our suppliers are both Taiwan Company and Vietnam Companies, but mostly in Vietnam, in order to saving shipping cost and can respond promptly when shop suddenly out of reserved stock. Here is our vendor information summary table:
Table 28: Supplier's information
Follow pages will show our big vendors’ history and information.
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A. Chuan Dai Company Chuan Dai is a Taiwanese company. They have description about themselves on their
website as“CHUAN DAI Enterprise Co., Ltd was established in 2006. We are a professional manufacturer who specializes in producing, developing, and selling chewy food in Taiwan. We rely on our experience and upgrade our production technology, also use superior selected ingredients to research, develop and manufacture chewy additive food with plentiful and diversity texture which could add in drinking and ice product. In the term of the R&D, CHUAN DAI not only focus on the creativity and unique of products but also continuously to upgrade our technique and equipment to make sure our quality steadily. CHUAN DAI gain our renown by Pop-up Juice in market. Pop-up Juice is one of the kind unique chewy foods which are very different to the other existing product. Pop-up Juice will pop up in your mouth when you chew it, and give you surprising taste texture and flavor. Pop-up Juice already brings a new trendy storm in international market such as EU and USA market”.
Picture 4: Chuan Dai company and their products
Main products: Coating juice boba, agar jelly, food material and so on Company website: http://www.chuandai.url.tw/990104.html . Company email: [email protected]. Company address: No. 756, Zhongshan N. Rd., YongkangDist, Tainan City, Taiwan 710,
Tainan, Taiwan, Taiwan Company motto: CHUAN DAI will keep the faith in providing the best service and
product to our customer as our business vision. Company telephone number: +886-6-2321181, fax: +886-6-2315315. Contact with sale
person, Mr. Joey Chen. Company history:
2006 Chuan Dai was established
2007Early of year Design and develop the machine for Pop-up JuiceCentral Design and develop the machine for Kanten JellyEnd of year Pop-up Juice launched and available in market
2008 Kanten Jelly was available in market2012 June Get certificated of HACCP & ISO2200
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B. Xuan Thinh Company Xuan Thinh is a Vietnamese private company which provides beverage materials. They
are one of the leading companies who establishing and having responsible for the brand's core. They hope they can bring the best materials and the difference, which they desire to share with customers, to beverage stores. To do this desire, they always keep innovation and develop product lines, besides the design and operation of a sustainable brand.
Main products: Tea, milk powder, syrup, flan-cake powder, bubble. Company website: http://www.nguyenlieutrasua.com/ Company address: No 22 Hoa Phuong Road,Ward 2, PhuNhuan District, Ho Chi Minh
city, Viet Nam. Company telephone number: + 84 949 791 050. Contact with sale person, Mr Tuan or
MrsXuong. Any complain, we can call to hotline and meet director Mrs Van.
C. Trung Nguyen Coffee Company Trung Nguyen Coffee is the most famous coffee brand of Vietnam. This is the No. 1
Vietnamese coffee company and is present in more than 60 countries around the world. Their products are variety so they can easily meet all customer interests and demands. They got many awards such as: FSSC 22000 certification (certified safety food system) , National Brand award, National Gold Quality Award in 2011, Vietnam high quality in 2010 and was selected as "Cultural Ambassadors of Foreign Affairs" by Vietnam Ministry of Foreign Affairs.
Picture 5: Trung Nguyen's distribution agent
Main products: coffee. Company website: http://www.trungnguyen.com.vn/ Company email: [email protected] Distribution agent address: No 295 Nguyen DinhChieuroad, Ward 5, Distrist 3, Ho Chi
Minh city, Viet Nam. Distribution agent telephone number: + 84 8 383 35 115. Contact with sale person,
MrsHuong. Company sologan: “Explore creative inspiration”
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Company history:
1996 Trung Nguyen was established in Buon Ma Thuoc province1998 Open the first coffee shop in Ho Chi Minh city2001 Conquered all coffee consumers across Vietnamese and products spread
nationwide2003 Defeated world rivals2008 Established an office in Singapore to develop the ASEAN coffee market 2010 Exported coffee to over 60 countries around the world as American,
Canada, Russia, UK, Germany, Japan, China, ASEAN countries, …2012 Was voted " Top Favorite coffee brand"
D. Highland Honey Bee Co., Ltd Highland Honey Bee is a one of Vietnam leading company providing fresh honey,
especially royal jelly products. Besides that, pure forest honey products also had customers’ trust in Vietnam and other foreign countries over the years by the inherent characteristics of the original honey. Product is 100% pure honey is filtered from beehives placed in all-natural forests, without any preparation stage.
Picture 6: Highland Honey Bee Co., Ltd
Main products: honey. Company website: http://www.suaongchua1080.com/ Company email: [email protected] Company address: No 15 No Trang Long, ward 7, BinhThanhdistrist, Ho Chi Minh city,
Viet Nam. Company telephone number: + 84 8 665 80 857. Contact with sale person, Mr Hoang Vu.
E. Vinamilk Company
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Vinamilk is a short form of Vietnam Dairy Products Joint-Stock Company which manufacturing and trading of milk and dairy products. Vinamilk is the leading enterprise of the milk processing industry, currently has 75% share of Vietnam milk market. Apart from strong domestic distribution with a network of 183 distributors and nearly 94,000 sales points are covered 64 provinces, Vinamilk products are also exported to the United States, France, Canada, Poland, Germany, Southeast Asia ... After more than 30 years of establishment, nowadays Vinamilk has 8 plants, 1factory and 3 on building plants, with a diversity of products, Vinamilk currently has over 200 items sterilized milk, pasteurized milk and dairy products. Currently in Southern region, they have 7 distribution agents so we will choose one of them, which is closest to us.
Picture7: Distribution agent of Vietnam Dairy Products Joint-Stock Company
Main products: sterilized milk, pasteurized milk and dairy products. Company website: http://www.vinamilk.com.vn Distribution agent website: http://cuahangsuavinamilk.com/ Distribution agent address: No 10 Tan Trao Road, Tan Phu ward, district 7, Ho Chi Minh
city, Viet Nam. Distribution telephone number: + 84 8 541 61 333. Contact with sale person, Mrs Phuong Company history:
Year Milestone events1976 Vinamilk was established1976-1996 Vinamilk faced with many difficulties, they had to restore the factory,
and both produced and distributed products. 1996-2005 - Producing business was constantly raising and developing, the annual
growth rate from 15 to 45%, revenue increased from 1.5 to 2.6 times. Their share in the market from 75 to 90% (depend on product category). Exporting increased year by year.
2005-now - In the 5-year of study (2005-2010) they released over 30 new products- Vinamilk was formed areas of materials in the Vietnam by building 5 dairy farms, with the total amount of 5,900 cows.- Vinamilk familiar brand famous in domestic and overseas have rounded excellence of a functional economy unit of the State, becoming a bright spot in the WTO period.
F. Ngoc Diep shop
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Ngoc Diep shop is a big plastic agent which has cheapest price in Ho Chi Minh City. They provide all kinds of plastic cups, plastic straws, plastic bags, tissues, toilet paper plastic spoons, chopsticks, toothpicks and so on.
Picture8: Product of Ngoc Diep shop
Shop website: http://www.dailylynhua.com/ Company email: [email protected] Company address: 566/187/262 Nguyen Thai Son Street, ward 5, Go Vap district, Ho
Chi Minh city, Viet Nam. Company telephone number: + 84 1689 900 900. Contact with sale person, Mr Ngoc
Diep.
5.7 Organization and ManagementBecause Caramel is just a small firm therefore we will apply “flat organization
structure”.
Figure 9: Flat organization structure
A flat organization (also known as horizontal organization or delayering) is an organization that has an organizational structure with few or no levels of middle management
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between staff and executives. The idea is that well-trained workers will be more productive when they are more directly involved in the decision making process, rather than closely supervised by many layers of management.
This structure is generally possible only in smaller organizations or individual units within larger organizations. When they reach a critical size, organizations can retain a streamlined structure but cannot keep a completely flat manager-to-staff relationship without impacting productivity. Certain financial responsibilities may also require a more conventional structure. Some theorize that flat organizations become more traditionally hierarchical when they begin to be geared towards productivity.
The flat organization model promotes employee involvement through a decentralized decision-making process. By elevating the level of responsibility of baseline employees and eliminating layers of middle management, comments and feedback reach all personnel involved in decisions more quickly. Expected response to customer feedback becomes more rapid.
As we already mentioned above in chapter 1, we build our structure like that:
Figure 10: Caramel's structure
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Chapter 6: Startup Expenses and Capitalization
Startup Expenses
Caramel Milk-Tea Sources of Capital Owners' Investment (name and percent ownership)
Alyosha $ 100,000
Mizhu 50,000
Tsend 25,000
David 100,000
Total Investment $ 275,000
Bank Loans
Total Bank Loans $ -
Other Loans
Total Other Loans $ -
Startup Expenses Buildings/Real Estate Purchase
Construction -
Remodeling 10,000
Other -
Total Buildings/Real Estate $ 10,000
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Leasehold Improvements
Total Leasehold Improvements $ -
Capital Equipment List
Furniture $ 5,000
Equipment 35,238
Machinery 10,840
Other 2,000
Total Capital Equipment $ 53,078
Location and Admin Expenses
Rental $ 120,000
Utility deposits 48,000
Legal and accounting fees 2,500
Prepaid insurance -
Pre-opening salaries -
Other -
Total Location and Admin Expenses
$ 170,500
Opening Inventory
Total Inventory $ -
Advertising and Promotional Expenses
Advertising $ 8,613
Printing 270
Other/additional categories 500
Total Advertising/Promotional $
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Expenses 9,383 Other Expenses
Total Other Expenses $ -
Reserve for Contingencies $ -
Working Capital $ -
Summary Statement Sources of Capital
Owners' and other investments $ 275,000
Bank loans -
Other loans -
Total Source of Funds $ 275,000
Startup Expenses
Buildings/real estate $ 10,000
Leasehold improvements -
Capital equipment 53,078
Location/administration expenses 170,500
Opening inventory -
Advertising/promotional expenses 9,383
Other expenses -
Contingency fund -
Working capital -
Total Startup Expenses $ 242,961
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Security and Collateral for Loan Proposal Collateral for Loans Value
6.1 Sources of capital.Mostly the sources of our capital are from the investors. Specific is 4 member of group
project. This is the money that each member will contribute depend on the capability. Milk-tea shop is just a small business firm so we will decide to spend all capital from our-self:
The list of investors is below:
-Alyosha will invest 100 million VNĐ.
-Mizhu will invest 50 million VNĐ.
-Tsend will invest 25 million VNĐ.
-David will invest 100 million VNĐ.
6.2 Startup Expenses.
6.2.1 Buildings or Real Estate.In this part, the appearance of house will reconstruct to suitable with business purpose.
The house will be decorated with new paint colors and two banners also. We just need to buy some water pipe and power line system. With the advantage of having an engineer in family so we think we won’t spend too much to complete the decorated things. The cost to complete is about 10 million.
6.2.2 Capital equipment list.Operating a milk-tea shop need an amount of equipment to make it smoothly. We decide
to buy some equipment such as: sealer machine, calculating machine, refrigerator to make product. On beside that, we also need some furniture to decorate and hide stuffs after we sell the milk-tea product.
Capital Equipment ListFurniture $ 5,000 Equipment 35,238 Machinery 10,840 Other 2,000 Total Capital Equipment $ 53,078
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6.2.3 Location and admin expenses.The place for selling product need a very important factor is: stability. The contract
which renting a house need to clear and balance for us. After researching many place, we already chosen a house was mentioned in another part. The requirement for this house is: (1) for renting house at least 12 months, and (2) Utility deposit less or equal 40% of the sums of 12 months.
After renting a house for selling product purpose, we have another problem to solve with the law. The Vietnamese Law require certificate to operate the store. On beside that, we need to pay excise 1 million each year and revenue tax depend on the size of the store.
Location and Admin Expenses
Rental $ 120,000
Utility deposits 48,000
Legal and accounting fees 2,500
Prepaid insurance -
Pre-opening salaries -
Other -
Total Location and Admin Expenses
$ 170,500
6.2.4 Advertising and promotional.Attracting customer not only need a quality product but also need a promotional
campaign.The cost of this part will base on quarterly because our target customer so we will focus stronger in the school time and less activity in the summer. (We mentioned it clearly in chapter 4)
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Chapter 7: Financial Plan
7.1 12-Months Profit and Loss Projection
7.1.1 Best scenarioCaramel
(Best scenario)
Fiscal Year BeginsJul-14
Revenue (Sales)Milk-tea 29,450.00 34.61 38,285.00 34.14 39,900.00 34.74 42,408.00 34.47 41,610.00 34.09 42,408.00 33.59Milk-tea (promotion) 13,020.00 15.30 17,360.00 15.48 16,800.00 14.63 17,360.00 14.11 16,800.00 13.76 17,794.00 14.09Coffe-milk units 11,625.00 13.66 16,275.00 14.51 15,750.00 13.71 18,600.00 15.12 18,900.00 15.48 19,065.00 15.10Coffe-milk ( promotion) 5,115.00 6.01 8,525.00 7.60 9,900.00 8.62 10,912.00 8.87 10,560.00 8.65 11,253.00 8.91Tea 13,020.00 15.30 16,740.00 14.93 16,200.00 14.11 16,740.00 13.61 16,200.00 13.27 17,112.00 13.55Tea (promotion) 5,580.00 6.56 5,580.00 4.98 6,750.00 5.88 6,975.00 5.67 8,100.00 6.64 8,370.00 6.63Extra Foods 7,281.00 8.56 9,369.00 8.36 9,540.00 8.31 10,019.00 8.14 9,887.00 8.10 10,255.00 8.12Total Revenue (Sales) 85,091.00 100.00 112,134.00 100.00 114,840.00 100.00 123,014.00 100.00 122,057.00 100.00 126,257.00 100.00
Cost of SalesMilk-tea 16,440.00 55.82 21,577.00 56.36 21,876.00 54.83 23,016.00 54.27 22,472.00 54.01 23,221.00 54.76Coffe-milk 5,146.00 44.27 7,719.00 47.43 8,093.00 51.38 9,263.00 49.80 9,213.00 48.75 9,520.00 49.93Tea 5,185.00 39.82 6,128.00 36.61 6,386.00 39.42 6,599.00 39.42 6,842.00 42.23 7,165.00 41.87Extra Foods 3,034.00 41.67 3,904.00 41.67 3,975.00 41.67 4,175.00 41.67 4,119.00 41.66 4,273.00 41.67Total Cost of Sales 29,805.00 35.03 39,328.00 35.07 40,330.00 35.12 43,053.00 35.00 42,646.00 34.94 44,179.00 34.99
Gross Profit 55,286.00 64.97 72,806.00 64.93 74,510.00 64.88 79,961.00 65.00 79,411.00 65.06 82,078.00 65.01
ExpensesSalary expenses 7,378.00 8.67 7,378.00 6.58 7,140.00 6.22 7,378.00 6.00 7,140.00 5.85 7,378.00 5.84Outside services 1,000.00 1.18 1,000.00 0.89 1,000.00 0.87 1,000.00 0.81 1,000.00 0.82 1,000.00 0.79Depreciation 833.30 0.98 833.30 0.74 833.30 0.73 833.30 0.68 833.30 0.68 833.30 0.66Advertising (discount) 8,613.00 10.12 11,415.00 10.18 12,123.00 10.56 12,727.00 10.35 12,762.00 10.46 13,921.00 11.03Advertising (event) 70.00 0.08 70.00 0.06 70.00 0.06 70.00 0.06 70.00 0.06 70.00 0.06Repairs & maintenance 500.00 0.59 500.00 0.45 500.00 0.44 500.00 0.41 500.00 0.41 500.00 0.40Internet & Wifi 320.00 0.38 320.00 0.29 320.00 0.28 320.00 0.26 320.00 0.26 320.00 0.25Rent 10,000.00 11.75 10,000.00 8.92 10,000.00 8.71 10,000.00 8.13 10,000.00 8.19 10,000.00 7.92Telephone 200.00 0.24 200.00 0.18 200.00 0.17 200.00 0.16 200.00 0.16 200.00 0.16Taxes (real estate, etc.) 1,200.00 1.41 200.00 0.18 200.00 0.17 200.00 0.16 200.00 0.16 200.00 0.16Total Expenses 30,114.30 35.39 31,916.30 28.46 32,386.30 28.20 33,228.30 27.01 33,025.30 27.06 34,422.30 27.26
Net Profit 25,171.70 29.58 40,889.70 36.47 42,123.70 36.68 46,732.70 37.99 46,385.70 38.00 47,655.70 37.74
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(Continue from the previous page)
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Table 29: Months Profit and Loss Projection (Best scenario)
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7.1.2 Worst scenario
Caramel(Worst
scenario)
Fiscal Year BeginsJul-14
Revenue (Sales)Milk-tea 11,780.00 29.58 14,725.00 34.21 17,100.00 38.80 17,670.00 47.41 14,250.00 43.81 11,780.00 38.75Milk-tea (promotion) 4,340.00 10.90 4,340.00 10.08 4,200.00 9.53 3,038.00 8.15 2,940.00 9.04 3,038.00 9.99Coffe-milk units 6,975.00 17.52 6,975.00 16.21 4,500.00 10.21 3,255.00 8.73 3,150.00 9.68 3,255.00 10.71Coffe-milk ( promotion) 2,387.00 5.99 2,387.00 5.55 3,300.00 7.49 2,486.00 6.67 1,980.00 6.09 2,046.00 6.73Tea 9,300.00 23.35 9,300.00 21.61 9,000.00 20.42 5,580.00 14.97 5,400.00 16.60 5,580.00 18.36Tea (promotion) 2,790.00 7.01 2,790.00 6.48 3,240.00 7.35 2,790.00 7.49 2,700.00 8.30 2,790.00 9.18Extra Foods 2,250.00 5.65 2,520.00 5.86 2,732.00 6.20 2,448.00 6.57 2,105.00 6.47 1,908.00 6.28Total Revenue (Sales) 39,822.00 100.00 43,037.00 100.00 44,072.00 100.00 37,267.00 100.00 32,525.00 100.00 30,397.00 100.00
Cost of SalesMilk-tea 6,165.00 52.33 7,192.00 48.84 7,955.00 46.52 7,603.00 43.03 6,364.00 44.66 5,548.00 47.10Coffe-milk 2,830.00 40.57 2,830.00 40.57 2,490.00 55.33 1,672.00 51.37 1,619.00 51.40 1,672.00 51.37Tea 3,299.00 35.47 3,299.00 35.47 3,376.00 37.51 2,357.00 42.24 2,281.00 42.24 2,357.00 42.24Extra Foods 938.00 41.69 1,050.00 41.67 1,138.00 41.65 1,020.00 41.67 877.00 41.66 795.00 41.67Total Cost of Sales 13,232.00 33.23 14,371.00 33.39 14,959.00 33.94 12,652.00 33.95 11,141.00 34.25 10,372.00 34.12
Gross Profit 26,590.00 66.77 28,666.00 66.61 29,113.00 66.06 24,615.00 66.05 21,384.00 65.75 20,025.00 65.88
ExpensesSalary expenses 7,378.00 18.53 7,378.00 17.14 7,140.00 16.20 7,378.00 19.80 7,140.00 21.95 7,378.00 24.27Outside services 1,000.00 2.51 1,000.00 2.32 1,000.00 2.27 1,000.00 2.68 1,000.00 3.07 1,000.00 3.29Depreciation 833.30 2.09 833.30 1.94 833.30 1.89 833.30 2.24 833.30 2.56 833.30 2.74Advertising (discount) 8,613.00 21.63 11,415.00 26.52 12,123.00 27.51 12,727.00 34.15 12,762.00 39.24 13,921.00 45.80Advertising (event) 70.00 0.18 70.00 0.16 70.00 0.16 70.00 0.19 70.00 0.22 70.00 0.23Repairs & maintenance 500.00 1.26 500.00 1.16 500.00 1.13 500.00 1.34 500.00 1.54 500.00 1.64Internet & Wifi 320.00 0.80 320.00 0.74 320.00 0.73 320.00 0.86 320.00 0.98 320.00 1.05Rent 10,000.00 25.11 10,000.00 23.24 10,000.00 22.69 10,000.00 26.83 10,000.00 30.75 10,000.00 32.90Telephone 200.00 0.50 200.00 0.46 200.00 0.45 200.00 0.54 200.00 0.61 200.00 0.66Taxes (real estate, etc.) 1,200.00 3.01 200.00 0.46 200.00 0.45 200.00 0.54 200.00 0.61 200.00 0.66Total Expenses 30,114.30 75.62 31,916.30 74.16 32,386.30 73.48 33,228.30 89.16 33,025.30 101.54 34,422.30 113.24
Net Profit -3,524.30 -8.85 -3,250.30 -7.55 -3,273.30 -7.43 -8,613.30 -23.11 -11,641.30 -35.79 -14,397.30 -47.36
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(Continue from the previous page)
Table 30: Months Profit and Loss Projection (Worst scenario)
In this scenario, we must close Caramel shop because we not only could not get profit but also have debt.
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7.2 Breakeven point analysis
7.2.1 Best scenarioCost Description Fixed Costs ($) Variable Costs (%)
Variable CostsCost of Goods Sold 470,095$ 34.9%Inventory 25,908$ 3.9%Raw Materials 75,132$ 11.3%
Fixed CostsSalaries (includes payroll taxes) 87,346$ Repairs & maintenance 6,000$ Advertising 142,205$ Car, delivery and travel -$ Accounting and legal -$ Rent 120,000$ Telephone 2,400$ Utilities -$ Insurance -$ Taxes (Real estate, etc.) 3,400$ Interest -$ Depreciation 10,000$
Total Fixed Costs $ 942,486
Total Variable Costs 50%
Breakeven Sales level = 1,890,264
Table 31: Breakeven analysis of best scenario
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7.3 Projected Cash FlowWe just use data from best scenario which we can continue our business.
Cash Flow (12 months) Jul-14Pre-
Startup EST
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Total Item EST
Cash on Hand (beginning of month)
275,000 78,168 127,342 206,205 287,424 357,192 444,989 535,589 594,752 652,866 732,528 799,831 876,385 78,168
CASH RECEIPTSCash Sales 0 85,091 112,134 114,840 123,014 122,057 126,257 113,776 88,012 113,562 120,364 110,253 117,568Collections fm CR accounts 0Loan/ other cash inj. 0TOTAL CASH RECEIPTS
0 85,091 112,134 114,840 123,014 122,057 126,257 113,776 88,012 113,562 120,364 110,253 117,568 0
Total Cash Available (before cash out)
275,000 163,259 239,476 321,045 410,438 479,249 571,246 649,365 682,764 766,428 852,892 910,084 993,953 78,168
CASH PAID OUTPurchases material 18,783 0 0 0 18,783 0 0 18,783 0 0 18,783 0 0Purchases wip 2,563 0 0 0 0 0 0 2,563 0 0 0 0 0Purchases finished goods 392 1,176 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568Purchases consumables 1,966 0 0 0 0 0 0 0 0 0 0 0 0Machines & equitment 46,078 0 0 0 0 0 0 0 0 0 0 0 0Salary expenses 0 7,378 7,378 7,140 7,378 7,140 7,378 7,378 7,140 7,378 7,140 7,378 7,140Outside services 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000Repairs & maintenance 0 500 500 500 500 500 500 500 500 500 500 500 500
CARAMEL Fiscal Year Begins:
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Advertising (preparation) 3,550 150 120 0 0 0 0 0 0 0 0 0 0Advertising (discount on products)
0 8,613 11,415 12,123 12,727 12,762 13,921 11,531 8,400 12,164 12,780 11,963 12,966
Advertising (event) 0 5,880 70 70 70 70 70 70 70 70 70 70 70Internet & Wifi 500 320 320 320 320 320 320 320 320 320 320 320 320Rent 120,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000Telephone 0 200 200 200 200 200 200 200 200 200 200 200 200Taxes (real estate, etc.) 1,000 200 200 200 200 200 200 200 200 200 200 200 200Miscellaneous 1,000 500 500 500 500 500 500 500 500 500 500 500 500SUBTOTAL 196,832 34,539 31,893 32,481 51,868 33,120 34,279 53,235 28,758 32,522 51,921 32,321 33,324 0Loan principal payment 0 0 0 0 0 0 0 0 0 0 0 0 0Capital purchase (specify) 0 0 0 0 0 0 0 0 0 0 0 0 0Other startup costs 0 0 0 0 0 0 0 0 0 0 0 0 0Reserve and/or Escrow 0 0 0 0 0 0 0 0 0 0 0 0 0Owners' Withdrawal 0 0 0 0 0 0 0 0 0 0 0 0 0TOTAL CASH PAID OUT
196,832 34,539 31,893 32,481 51,868 33,120 34,279 53,235 28,758 32,522 51,921 32,321 33,324 0
Cash Position (end of month)
78,168 128,720 208,961 291,320 362,466 451,403 543,381 603,922 663,176 744,216 812,659 890,591 974,835 78,168
Table 32: Projected Cash Flow
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AppendicesI. Logo and Advertising materials
I.1 Symbol
I.2 Logo
I.3 Banner
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I.4 Billboard
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II. Menu
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III. Maps and photos of location
III.1 Map of location
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III.2 The drawing bench
IV. Detailed lists of equipment owned or purchasedIV.1 Sugar Syrup Dispenser Machine
- Humanized interface design, easy to operate.- Whole machine is made of stainless steel, antistatic.- Fast giving fructose speed, 0.5-3 second.
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- No dropping, no leaking, bar table clean.- Adopting microcomputer control, precise amount of given sugar without leaking - Capable of manually setting up giving amount.- Innovative removable sugar port.- Using the constant temperature heater and computerized flow set, accurate flow.
IV.2 Sealer Machine
The machine takes in the cup and seals a thin plastic film called seal-tape over the top. This is very similar to the way the plastic is sealed on top of a yogurt container. Many seal-tapes have different designs and characters for the customers to enjoy looking at. Adding a company design or logo to the seal-tape is also an option but a minimum order is necessary. This is very popular for chain stores as it helps with their branding campaigns and advertising. With the plastic seal-tape covering the plastic cup so tightly, the customers enjoy piercing the top with the large angled bubble straws. It is also very convenient if the customer is not consuming the bubble tea drink immediately. It helps the keep the bubble tea drink from spilling. When piercing the top, it makes a "popping" noise, similar to "soda pop" when the gases are released from the can. The cup sealer machine is not necessary; however the bubble tea cup sealer can pay for itself in the long run with the savings in cups and lids.
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IV.3 Shaker
IV.4 Measuring Scoop
IV.5 Thermo blocks pot
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IV.6 Paper cup
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References:1. Benefit of coffee http://www.ykhoa.net/yhoccotruyen/voha/vh089.htm, Risheng Xu. Study finds
coffee may decrease diabetes risk. www.thecrimson.com, Caffeine reverses memory impairment in mice with Alzheimer’s symptoms. www.sciencedaily.com.
2. Benefit of flower tea http://www.hungphatea.com/vn/Tu-Van/Cong-Dung/Tac-Dung-Cua-Tra-Hoa-Cuc/
3. Benefit of ginger tea http://old.hadiphar.vn/webplus/viewer.print.asp?aid=532&l=VN4. Benefit of green tea http://umm.edu/health/medical/altmed/herb/green-tea5. Benefit of herbal tea http://www.thucphamthuoc.com/tac-dung-cong-dung/143-nhung-ich-loi-
khi-uong-tra-thao-duoc.html6. Benefit of lemon http://www.tinmoi.vn/nhung-loi-ich-tuyet-voi-cua-qua-chanh-01854361.html7. Benefit of lemon tea http://clairekcreations.com/2013/02/lemon-tea/,
http://healthyeating.sfgate.com/benefits-drinking-green-tea-lemon-honey-8679.html
8. Cultural environment http://www.geert-hofstede.com/
9. Food and drink market report :http://www.just-drinks.com/market-research/vietnam-food-and-
drink-report-q2-2013_id159613.aspx
10. Information about Ho Chi Minh city: http://en.wikipedia.org/wiki/Vietnam ,
http://en.wikipedia.org/wiki/Ho_Chi_Minh_City11. Legal environment http://www.mpi.gov.vn/portal/page/portal/bkhdt/tthc/287206?
pers_id=353662&item_id=410920&p_details=1
12. Machine: http://www.alibaba.com/showroom/fructose-syrup-dispenser-machine.html
13. Viet Nam Law: http://www.gopfp.gov.vn/
14. Vietnam economic: http://en.wikipedia.org/wiki/Economy_of_Vietnam
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