JambaJuice: Thepurposeofourbusinessistoprovidethecustomerwiththetrulygoodqualityand healthyproductsuchasJuiceandsmoothies,tohelpthecustomerstoawaremoreof
Trang 21 ImportanceroleofFoodandBeverageIndustryinVietnam
Thefoodandbeverageindustry,isaverylargeone,andwasexpectedtovalueatUS$33.7billionin2012,withpredictedgrowthat18.9percenttillyear2014.Itisgrowingfastatalmost21percentin2013,producingfoodatagrowthof20percentandbeverageproductionatalmost27percent.Intermsofvolumegrowthforproducingpackagedfoodandsoftdrinks,Vietnamwasthebestperformingcountryfrom2007to2012.Productssuchaschilled,frozen,driedandprocessedfood,aswellasicecream,readymeals,babyfoodandnoodles,haveexperiencedgrowthinproduction.
2.TrendofFoodanfBeverageIndustryinVietnam
ConsumerspendingonFood&Beverageisgrowing.Thefoodserviceindustryisexpectedtogrowatacompoundannualgrowthrateofsixpercentbetween2013and2018.Percapitaexpenditureonfoodandnonalcoholicbeveragesisexpectedtogrowatsevenpercentperannumfrom2012to2016,reachingUS$276by2016.AssociatedwiththisgrowthinFood
&Beverageisthegrowthofmodernretailformatssuchassupermarketswhichpresentopportunitiesforgreaterexposuretoimportedproductsnotgenerallystockedbytraditionalstores.Vietnam,ontheotherhand,hasacriticalfocalareaforitsfoodandbeverageindustry,astheVietnameselivingstandardshasalreadystartedtorise.Thecountry’seconomieshavedevelopedintooneofAsia’sdynamicandgrowingmarketforagriculturefood.Themarkethasapotentialgrowth,asthespendingonpackagedfoodandbeveragesinVietnamisstillconsideredlow.Vietnam’sWTOmembershiphaspromotedareductioninitstradeandinvestmentbarriersincludingtariffs,subsidies,nontariffbarriers,investmentrestrictionsandintellectualpropertyrights(IPR).Risingdisposableincomelevelsandchanginglifestyles,particularlyinurbanareas,areincreasingconsumerdemandforsnacks,convenienceandluxuryFood&Beverageitems.Theannualgrowthoffoodsalesisanticipatedtobe9.4percentforthe2012to2017period.Theagriculturalsectorrequiressignificantinvestment;foreigninvestorscanexpectassistedentry.Thegrowingtourismsectorisafactorfuellinginterestinconveniencecategories,inadditiontosubsectorssuchassoftdrinksandalcoholicdrinks.HealthconsciousnesstrendsprovideanopportunityforFood&Beverage
manufacturerstodiversifyintofoodoptionsperceivedtobehealthier.
Trang 33.Juicetrend:
In2014,juiceregisteredofftradevolumeandvaluegrowthof12%and20%respectively.Althoughtheserateswerelowerthanthoserecordedin2013,theywerestillhigh,indicatingstrongandstabledemandforjuice.Improvinglivingstandardsandgreaterconsumerinterestinhealthandwellnessarethemainfactorscontributingtorobustgrowthofjuicedrinks.Inaddition,people,especiallythosewholiveinurbanareas,arebecomingincreasinglybusyandreluctanttosqueezejuiceforthemselvesandtheirfamily.Instead,theypurchase
packagedjuicedrinksmadebyprestigiousmanufacturersforconvenienceandhygiene.AsVietnamisatropicalcountrywiththeclimateisalmosthotduringtheyearthattheconsumeofbeverageisextremelyhighespeciallyforthejuice.EspeciallyinHoChiMinhCity,peoplenowaremoretendingtoreachthosekindsofproductthatnotonlymeettheirneedbutbeahealthyproductaswell.Theteenagers,theofficeworkersarenowchoosingjuice,smoothiesastheirfavoritedrinksinsteadofcoffee.Theparents,theelderlyalsoinfavorofjuicesinceit’sgoodforthehealth.JuiceisbecomeanindispensabledailydrinkoftheHoChiMinhpeoplewiththedemandforjuice,smoothiesorfruit/vegetableproductsincreasingsteadily.
Trang 41 JambaJuice:
Thepurposeofourbusinessistoprovidethecustomerwiththetrulygoodqualityand
healthyproductsuchasJuiceandsmoothies,tohelpthecustomerstoawaremoreoftheirhealthwiththeirdailyfoodanddrinks.
Atfirst,weopenthefirstJambaJuiceonTranNaostreet,District2wheretherearealotofsegmentationsandpotentialcustomers.PublishingtheimageofJambaJuicetothecustomersbygivingthemtherealmeaningofagoodandhealthydrinkthenachievethetrustfromcustomers.Inaddition,wedevelopthelongtermstrategyforJambaJuicetogofurtherinthisbusinessline.
readytoserveyouevenbetter.
3.Themarket:
HoChiMinhCityisagreatpotentialmarketfortheJuiceindustrywiththeincreasinglyhighdemandofdrinkswithfresh,nutritious,andhealthy.WhilethedemandofJuicekeep
increasingbutthesuppliesoftheJuicehasn’tmettherequirementsofthecustomeryet.CustomersreachJuicesincetheywantarealfreshandhealthydrink.AndJambacandoit.ThecustomersoftheJuiceindustryinVietnamarediversewiththelargenumberof
ThecustomersoftheJuiceindustryinVietnamarediversewiththelargenumberof
customersandtherearemanycustomersegmentations.Especiallyforthesegmentationofcustomerwiththeageisunder25whichisabigsegmentationwiththeconsumptionofJuicecustomerwiththeageisunder25whichisabigsegmentationwiththeconsumptionofJuiceishugeandincreasesteadily.Theelderly–apotentialsegmentationoftheJuiceindustryisstrongalso.ThelivingstandardoftheHoChiMinhCityisincreasingandtheyaremorestrongalso.ThelivingstandardoftheHoChiMinhCityisincreasingandtheyaremoreconcerningabouttheirhealthythattheywouldliketochoosethosekindofdrinksandthenumberofconsumptionofthispotentialsegmentationisstrongtoo.Asmentionedabove,peoplearebecomingawaremoreoftheirhealththatcoffeeandtheothernormalfavoritedrinksdoesn’tmeettheneedofthepeoplenowadays
drinksdoesn’tmeettheneedofthepeoplenowadays.
Trang 5ThecompetitorsofJambawillbeinthesamebusinessline–Starbuck,Coffeehouse,TrungNguyencoffee,HighlandscoffeeandtheotherscoffeestorearethecompetitorswithJambaevenwhentheirmainproductsiscoffeewhichisthefavoritedailydrinkofVietnamesepeople.Besides,thesestoreshavethesimilarproductsasJamba.Butthetrendischanging,peoplearereachingtheproductswithhigherqualityandgoodfortheirhealthandJuiceisoneofthetopchoices.JambagettheexpertiseinthisfieldwiththehighknowledgeaboutthenutritiousandhealthyproductsandtheproductsofJambaisalsoexaminedbythespecialistsandthiswillgainthecompetitiveadvantagefromtheothercompetitors.
Trang 6couponstoattractpeopletocometoourstoreandenjoy.Specially,wewillsponsorforsomeattractiveprogramsontelevisionsuchassitcomsorColormeruntospreadourbrands.
Trang 7A MacroEnvironment:
Franchising started in Vietnam in 1990s with some wellknown foreign fast food brands (like KFC, Listeria, Jollibee, etc.), so it is still in its early stage in Vietnam Up to 2014, there were about 100 foreign franchisors registered in Vietnam Most of them come from the US and Singapore The dominant business fields are retailing, education, and food and beverage (F&B)(Tilleke&Gibbins,InternationalFranchising–Vietnam,28Jan2014).
Now, we will go through the differences in some factors which may affect the success in doingthefranchisebusinessofJambaJuice
1.DemographicchangesthatmayaffectthefoodandbeverageconsumptioninVN:
In term of age structure, there are about 17.8 per cent of Vietnam’s population were from 15
to 24 years old (Index Mundi, Age structure, 23 Aug 2014) Based on the graph shown below, we can realize that there was a huge number of Vietnamese are in the age from 18 to
29 and from 30 to 60 In the first group, they are teenagers and young people, so they are change oriented and adaptive In the second group, most of them are officer and those who arehelthconcern.Therefore,inbothgroups,theyarewillingtoenjoyanewjuicebrand.
Trang 8In term of middle class segmentation, the Vietnam News shows that there were about 12 million people considered in this group and this figure is expected to increase to 33 million in 2020(VietnamNews,Vietnam‘smiddleclasssettodouble,27Dec2013).
2.Economicchangesthatmayaffectfoodandbeverageconsumption:
The economic growth rate in Vietnam is expected to remain around 5.8 per cent to 2016 (World Bank, Global Economic Prospects, East Asia and the Pacific, Jun 2014) In 2014, GDP per capita in Vietnam had growth to about USD 2,050 (World Bank, GDP per capita, 2015) More particularly, this figure in HCM city which is our initial franchise location is about USD 4,513 in 2013(Vietnam Plus, 12 Dec 2014) This means that the adjusted price (from 60 000 VND to 100 000 VND) is affordable for the middle and high class customer in HCMcity.
3.Socialculturalchangesthatmayaffectfoodandbeverageconsumption:
The Vietnamese are very sensitive with the price Thus, when charging high price compared
to other brand names in Vietnam Food & Beverage market, the quality of products and service would be good as well so that customer would not leave our brand after the first time enjoying our product Besides, with an increase in incomes as well as demand for Western products,JambaJuicewillbebeneficial.
Moreover, in Vietname, people will respond to incentives with a very high level Thus, attractivepromotionstrategieswillhelpJambaJuicehasmorecustomers.
Trang 95.ChangesinLawandRegulationsthatmayaffectfoodandbeverageconsumption.When doing franchise, we will face to 2 circumstances The first circumstance is that the franchisees will buy material themselves Another circumstance is that franchisees will import raw materials or goods from franchisor Because most of the franchisors want to maintain their product over countries and they want to have more profits in selling raw materials as well, they will deicide to sell raw materials to franchisees However, when selling material to franchisees, the parties may have to consider the legal restriction that are imposed on import of such goods The tariff rate in Vietnam now (after WTO accession) is still a litlle bit high This will make the franchisee has to set a high adjusted price when negotiating with the franchisor Based on the law of demand, a high price will lead to the low quantity of product sold Besides, the quota of some imported goods is eliminated recent years.
Trang 10about 60 000) Moreover, their stores are very peaceful as Starbuck which are suitable for officers, business man or those who would like to have a quiet area The rests are Urban Station, Phuc Long, and Highland Products of these store are cheap (average price is about
30 000 or 40 000) However, the atmosphere at these store is quite noisy, especially in Phuc Long,whichisjustsuitableforteenagers.
In Food & Bevergae service industry in Vietnam, particularly in HCM city now, Phuc Long and Highland have high market share because of its taste and very affordable price But in term of high class, Starbuck still a giant in this industry because of its fame in the world. Trung Nguyen coffee is a local famous brand name which appears a very long time in Vietnam.
Trang 11Vission statement: “Our desire is to expand and operate to be the most popular juice brand namefromthewholeVietnam,whichisprovidethebestandhealthiestfoodforyou”.
2.Marketinggoals:
The revenue percentage will be 20% grows per years,and each products will be 3% per years because,we will get more profits and prove that there are a lot of customers believe to use our products.
We expect to sell $600,000 a year in widgets If the total amount of widgets sold from all companies within the market totals $12,000,000, then market share equal to 5% As the market for a good or service grows, we maintain or increase market share as a sign of a company's competitiveness Increases in market share might come from innovation, broadeningdemographicappeal,lowerprices,orhavemorepowerinthemarket.
Trang 12A Segmenting
1.Currentmarket:.....
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and drink.drink.drink ToToTo havehavehave higherhigherhigher profitsprofitsprofits thethethe farmersfarmersfarmers useuse poisonusepoisonpoison andand pesticideandpesticidepesticide to to maketomakemake thethethe vegetablevegetable and
and fruitfruitfruit growgrowgrow fasterfaster andfasterandand bigger.bigger.bigger SoSoSo that’sthat’s thethat’sthethe reasonsreasonsreasons whywhywhy wewewe sawsawsaw somesome casessomecases ofcases ofof foodfood
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poisoning on onon televison,newspaper…Thistelevison,newspaper…Thistelevison,newspaper…This becomesbecomesbecomes ourourour anxietyanxietyanxiety aboutaboutabout customercustomercustomer healthy,healthy,healthy, eatingeating and
and drinkingdrinkingdrinking behaviorbehaviorbehavior of ofof Vietnamese.Vietnamese AnVietnamese.AnAn itit ititit isisis goodgoodgood chancechancechance forforfor us usus tototo bringbringbring JampaJampa JuiceJampaJuiceJuice intointo
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Vietnam marketmarketmarket withwithwith 100%100% fresh100%freshfresh andandand organicorganicorganic food.food Thesefood.TheseThese areare ourareourour customercustomercustomer currentcurrentcurrent targettargetmarket:
a.Highandmediumincomelocalresident:
Trang 13As you can see on the graph, Vietnam average GPD per capital in 2014 is about $1077,91,so the medium and average income is just about over 250USD per month Furthermore, the average ratio of over 4millions VND group is more 80% in Ho Chi Minh and Ha Noi city in 2009.
When the people belong to this kind, they are about 3055 Especially, they will have different ideas about living and enjoying life to get a long expectancy and healthy life.They are willing to pay and have less sensitive about price,they just care about their health, because theywanttogetmoremoneytohaveahigherlivingconditionsincludingfood.
And we will divide this group into 2 main groups: 1 st who working in the offices anf 2 ndworkingoutsideandtheyhavetomoveregularly.
_Going to the 1 stgroup: everyday they live in a box office and smell the air conditions and sit
in one place, face to the laptop or computer for many hours,which makes they feel boring.So how about their health? That’s a big problem Sitting hours to hours can cause more fat and make their body unbalance.Living under air conditions and exposure to computer or laptop, the most important is making up all day long makes their skin goes dryer and worse.WHAT can OUR store help them? With our experts about ingridients and nutritions about 100% fresh food, we make sure that we have some meals and drinking can help their body and skin improvebeautifullydaybydaybecausecustomerexpectationisourhonetsly.
_And The 2 ndgroup( engineer, saler…): with the main characteristic of job, they must go outside many times a day, moving for all day is a reason why their body lose energy through perspiration,and the sunshine is a factor which kill their skin.Our food services will help them
Trang 14get back energy and the fresh of skin.And when they don’t know where to go they can come
to our store with a mordem US decoration where suitable for some small meeting with partners.
_Over 15 years old: they hang out with friends and hear about a new fruit store with high quality and price, the decoration with US style.So they will get into that place and try 1 meals
or drinking to sastisfy their curiousity.When they visit our store we make sure they will comebacktwiceandmorebutwithmanypeoplehavethesameagewiththem.
Trang 152.Potentialtargetsmarketsinfuture
ConsumerspendingonFood&Beverageisgrowing.Thefoodserviceindustryisexpectedtogrowatacompoundannualgrowthrateofsixpercentbetween2013and2018.Percapitaexpenditureonfoodandnonalcoholicbeveragesisexpectedtogrowatsevenpercentperannumfrom2012to2016,reachingUS$276by2016.SoourtargetmarketsinthefuturearepeoplewholiveinthehighqualityapartmentsandthecustomersfromwholeHCM
city,becausedistrict2hasmanybuidings,apartmentsarebuildingandthisisapromisewithaplentyofhumancometohere,withthehighlivingconditiontheyneedaplacetoenjoyheathyfood.AndofcoursewewilltryourbesttoexpandfromthewholeHCMcitytomakemorecustomerknowmoreaboutuswiththeaimistoicreasingthehumanlifethrougheatinganddrinking.
Trang 16We believe in the saying “out of sight and out of mind.” Here’s a fact of business life: Reminding target market that we are actively doing business and tell our employees to use thewordJampaJuicebeforesayinganything,ifnotcustomerwillforgetandgoelsewhere.
d.Providevalue–exceedcustomerexpectations:
Providing ongoing value to our target market is vital to better brand recognition and becoming the wellrespected “goto” person in our field Also, providing the services and food more than what customer needs, through taking care of customer considerately and alwaysavailablewhentheyneedus.
e.Developawebsiteandfacebooktoshowourproducts:
An added benefit to hosting website is that once the video is recorded, customer can download it from website.Another free marketing resource for your current Internet customers is inviting them to participate in a Facebook Group In Facebook Group, participants can share tips, ask questions and network with one another to keep in touch with ourclients.
2.Brandstrategy:
a.Usesocialmedia:
Using the power of Twitter and Facebook, as social media has become a trend that is increasingly welcome by the people in the nowadays especially with the emergence of the smart mobile phone such as the Iphone and so on which provide instant social connection to viathefreeandpowerfulinternetaccess.
b.Buildingasustainablesupplychain:
With the value of our franchisor the company has adopted a high business ethics standard to connect with farmers and for the customers By adopting a poisoning strategy to be a provider
of a premium juice drinking experience, which gives us a potential force for positive reform
in every part of the supply chain to provide green keeping a building a sustainable supply chain and, we beliew that we would be able to differentiate with other competitors, and with
Trang 17the increased awareness of environmental protection and continual development and harmony withthenature.
c.Rapidexpansion:
We need to have rapid expansion, our strategy is to increase the market share in existing markets In long term we will acquires several fundraisers and more investors incorporate with us quickly We will try to establish as the market leader to the customers and thus becomedifferentiatedcomparedtotheofferingbythecompetitors.
Trang 18● Variety of drinks : more than 30 custom smoothies (including Aloha Pineapple, Mangoagogo, and Strawberry Surf Rider) and Jamba Boosts (smoothies made with vitaminandproteinsupplements),alongwithotherfruitjuicesandfooditems.
● Offer not only the healthy drinks but also the catchy and tasty smoothies: our products have goodlooking texture, have delicious taste, have necessary nutrition and in a comfortableandfashionablestore.
Trang 19● Limited food and snack offerings in comparison to other brand (McDonald’s, Starbucks, etc) We just focus on healthy and tasty smoothies, whereas people also need some food andsnackaccompaniedwiththedrinks.
● Many substitutes: milk shake, milk tea, coffee, etc For adults, business people, officers and older generations, coffee maybe still the best choice For younger people, milk tea andmilkshakearethemostfamiliardrinks.
● Franchisors may have difficulties in providing support in management, capital, training, marketing,etc.
3.Opportunities:
● Increasing concern about health and food sanitation: people now are more concerned about the quality of food, not just the price and taste, especially when there’ve been a crisisinfoodsafetyinVietnamsincealongtimeago.
● Trend in body fitness: mostly young people (also partially the older generation) now desirenicebodyshape,therefore,theycareaboutthefoodandnutritionmorethanever.
● Young age structure: create chances to conduct campaigns, events, sponsors,… to raise awarenessamongcelebritiesandyoungpeople.
4.Threats:
● Suppliers seeking: we need to ensure the quality, origin and preservation of fruits. Besides the standards of fruits, we also need to consider the terms and contracts to maintainthestableandeconomicalsupply.
● Competition with domestic and traditional smoothies shops: how to create the awareness and habits of customers to change to our store, instead of some small smoothies shops nearby? How to impress people about our differentiated products from other smoothies out there? And how to influence coffee styles in Vietnam, to create the new trend in drinksforVietnamese?
● Laborproductivity:posesathreattotrainingandmanagementissues.
● Cross cultural differences may force the products, services and stores’ environment to adapttoVietnamesecustomers.
Trang 20A Productstrategies
1 Vietnamesefavorablejuicetastes:
MatchaGreenTea,Banana,PassionFruit,Orange,Strawberry,Kiwi,Blueberry,Mango,Peach,Apple,Grape,PineappleareVietnameseFavorableJuiceTaste
2.Franchiseproductplan:
● EnergyBowls:blendofrealwholefruit,freshGreekyogurtand/orsoymilk,toppedwithanassortmentofdrytoppings&freshfruits.
● Attractiveandconvenientpackaging:
Trang 21Onthegobottle
Trang 22ChunkyStrawberryBowlAdeliciousblendoffreshGreekyogurtwith
strawberries,bananas,peanutbutter,andsoymilk.It’stoppedwithorganicgranola,freshbananasandfreshstrawberriesandservedinaconvenient,on–thegobowl.
Trang 23FruitandGreekYogurtBowl
NonfatGreekYogurttoppedwithfresh
blueberries,fresh
strawberries,freshbananas,organicgranolaandadrizzleofhoney.
Trang 24OrangeSupreme
WenameditSupreme,hopingit'dliveuptoourloftyexpectations.Takeonesipofblendedfreshsqueezedorangejuice,carrotjuice,bananas,applejuiceandchiaseeds,andyou'llknowthatitdid.
VeggieVitality
Weintroducedcarrots,applesandfreshsupergreenstoeachother.Turnsout,theygetalongquitenicelyinthisdeliciousveggiejuicewithahintofsweetness.
TropicalGreens
Foratrulytropicalflavor,we’vecombinedapples,pineapples,Supergreens,andChiaseeds.Thisisoneislandthatwillneverbedeserted.