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INTRODUCTION Livestock and poultry is a traditional farming form in Viet Nam; poultry products, especially pork, chicken is not only a valuable food source, but also has its own social i

TABLE OF CONTENTS

A INTRODUCTION 3

B CONTENT 4

I OVERVIEW ABOUT THE CHAIN OF STORES: 4

II PRODUCTS: 4

1 Business products 4

2 Future products 8

3 Sales policies 8

4 Marketing: 8

III MARKET ANALYSIS: 9

1 The general market 9

1.1 Market segmentation 9

1.2 Target market 10

2 Customers characteristics 10

3 Competitors 11

4 Suppliers 11

5 Econometric factors 11

IV TECHNOLOGY: 12

1 Equipment: 12

2 Construction location: 13

V MANAGEMENT ORGANIZATION 13

1 Organize production and operation: 13

2 Human resources and workers 13

2.1 Staff need 13

2.2 Staff salary 13

VI THE DEMAND FOR INVESTMENT CAPITAL AND CAPITAL SOURCES 14 C CONCLUSIONS 17

A INTRODUCTION

Livestock and poultry is a traditional farming form in Viet Nam; poultry products, especially pork, chicken is not only a valuable food source, but also has its own social impression thourgh the creation of a culinary culture with spiritual elements, it is used much in anniversaries, holidays and festivals For these reasons, livestock and poultry products have always got their own position in the consumer market, a fact that contributes to promote livestock development, create jobs, increase incomes for farmers

In the context of increasing demand of the consumer market and the integration and developing trend of the country, the quality management of poultry products in general and food in particular is an essential and urgent task Quality management and food safety: has always been an importanta matter in almost all countries around the world Depending on the educational level and economic development in each country, the required level of quality and safety differs in terms of the allowed percentage of heavy metals, antibiotics, plant protection drugs and the maximum level of microbial contamination in the products But in general, to ensure the safety, the requirements generally consist of the following factors:

- That food is not pathogenic to humans

- That food is not contaminated at a harmful level

- That food has the infection levels of antibiotic, heavy metals and pesticide plants lower that the allowed limits

- Foods of animal origin are not infected by hormone growth factor

In breeding, one of the issues that mostly concerns breeders is pet food Since food is an important factor in the living conditions of the animals and is a factor in order for them to live normally and produce a lot of high quality products to meet the needs of people Feeding in the traditional way is to use the available food and combine them according to one’s owe habit, that method makes the animals not able to develop well, easy to get sick, do not have high resistance, lack some substanes while have more than enough of some others which makes them don’t have enough needed nutrition to grow as the customers wish, and lead to low economic efficiency

Vietnam has joined the WTO, which makes the commercial quality requirements of all products strictly increase; food now doesn’t need to only meet domestic demand but also need

to meet the export demand on the world market For this reason, the breeders have to know what your pet should eat, with how much capacity to ensure both cost savings and the adequacy of nutrients to grow to be competitive enough in the market in order to gain profit Besides, the quality of the food for the animals must be strictly managed and can meet the leading safety standards according to the state’s regulation of nutritional value, of microorganisms, fungi and antibiotics ratios which should be within the permitted limits It’s absolutely forbidden to use growth hormones Management and providing quality food is the basic step to prevent danger of contaminated meat, eggs, antibiotics, heavy metals, plant protection drugs Based on the actual situation, our team decided to go in-depth research and create the investment project: «The chain of cattle’s food stores in Luong Son district, Hoa Binh province» However, before implementing a chain of shops to cover Hoa Binh province

as well as its neighboring areas, our team decided to build the project according to the data of a store

B CONTENT:

- Name: «The cattle’s food store of Luong Son district, Hoa Binh province»

- Location: Luong Son town – Luong Son town – Hoa Binh province

- Business area: Sell the food for cattle – poultry, vet medicines, some tools in breeding

- The position in the industry: Graded 1 chain of cattle’s food store

1 Business products:

Foods sold in stores include two groups: complete mixed food and concentrated mixed food, in which each group has the following foods: The food for pigs, chickens and ducks There are also medicines and food for chickens and ducks According to the information source from suppliers and customers, the kind of products we expected to sell products has the benefits which can be summarized through the three following tables:

Table 1: Benefits when using industrial food:

1 Complete mixed food - Already prepared

- Is balanced in terms of nutrition, there’s no need to add more substances

- Harvesting time does not last long

- High productivity

- Create good quality cattle and poultry

- Increase the resistance agains diseases

2 Concentrated mixed food - Provide main nutrition: Protein, minerals, vitamin

- Take advantage of the available food in the family

- Convenient for manual processing and small-scaled cattle and poultry breeding

Table 2: Uses of food products:

1 Food for pigs:

a Food for pigs for meat:

- Food for piglets

- Have aroma which stimulate piglets more

- Help piglets digest more easily

- Help the bones to be harder

- Piglets grow fast without losing energy

- Food for pigs weighted from 7kg –

15kg

- Provide substances so that pigs can develop fat around the body

- Develop the bones

- Pigs grow fast

- Look nice

- Food for pigs weighted from 15kg –

30kg

- Nutritious food to replace mother’s milk

- Adding antibiotics

- Increase the survival rate

- Help the pigs to not slown down the growth speed

- Prevent stress

Food for pigs Uses

- Food for pigs weighted from 30kg –

60kg

- Provide substances for weight gaining, with not very high nutrition

- Help to grow stably

- Help the meat not to have too much fat

- Food for pigs weighted from 60kg –

above 100kg

- Reach the commercial quality for the harvesting time

- Gain weight at the maximum level

b Food for sows

- Food for sows

- Good physiological development for breeding

- Help pregnancy

- Provide substances helping to have more milk

- Ensure adequate weight and size

- Food for sows which are feeding its

piglets

- Make the sows have more milk for the piglets

- Ensure the fetility for the next batch

- Ensure good health and

2. Food for ducks - chickens

a Food for ducks – chickens bred for

meat

- Help to gain weight

- High resistance

- Reach the commercial quality

b Food for ducks – chickens bred for

eggs and new poultry

- Make more eggs

- Make better eggs

- Keep the size and weight

- Breed more batches

- Ensure the energy for activities

Table 3: Medicine and food containing tools for poultry:

Medicine/tool names Uses

Antibiotics Prevent and heal the diseases

Injection needles Use to inject the medicines

Food containers for poultry - Very convenient when feeding the poultry- Prevent the loss and falling of food (reduce the food loss)

- It’s able to feed many at the same time

2 Future products:

In addition to traditional products developed based on the general needs, we will offer food for fish, pet care products and the automatic food container for pig in order to meet the growing and more modern breeding

3 Sales policies:

This is a grade 1 store chain which mainly sells directly to consumers through the intermediary distribution channel; it can be seen through the following distribution graph:

Graph a:

Graph b:

And deliver in two forms:

- Directly at the selling places

- Door to door deliver as requested if the customers buy in large volume

Even though there are two forms of delivery, they are still made at the same price in order to encourage the demand for products of the store and it’s seen as a way to attract customers

4 Marketing:

stores

Customers

To make the stores quickly be known, we plan to offer information and attract customers as followed:

- Advertising through the main form which is to hang banners in the main routes

- Collaborate with the People’s Committee to organize guideline breeding program to show people the way to run the cattle - poultry business effectively, give them the books and manuals in livestock and poultry care and breeding

- Set the billboard posters in the store with the essential information (stores’s names, names of products, discount) and it needs to be clear and easy to read

- Have the promotion program of giving out free caps, T-shirts, calendars during the opening time

- Have the program to examine for diseases for poultry and give free consultancy for all the breeding units in the area

III MARKET ANALYSIS:

1 The general market:

- The stores mainly serve the customers of Luong Son Town; through meetings with local farmers, we know that the majority of the farmers here have the right investment level; they have an understanding of cattle breeding and have made it to be a profitable industry to become rich; especially, they are aware of the role of food Therefore, the demand for food for cattle will increase

- The bird flu is under control and tends to decline in the context with the demand for poultry meat will increase, it leads to the fact that the poultry industry will continue to grow and the food for poultry will rise back

- The prices of poultry tend to increase, which encourages the breeding more

All this shows the real need for quality and safe food for cattle – poultry, and associated products will increase significantly in the coming years

1.1 Market segmentation:

According to the breeding forms in the area, we divide the market with the following ways:

Table 4: Market segmentation methods:

Breeding styles

Criteria

breeding

Number of people

involved in breeding

Just a little part of the farm (3%)

Is the common breeding style in the area (95%)

Not much (2%)

Breeding scale

Large volume (More than 20 pigs, and more than 1000 ducks and chickens)

Medium volume (Pigs 1 –

20, ducks and chickens 10 – 1000)

Small volume (Ducks and chickens 1- 10)

Buying criteria High quality, door todoor delivery Quality and affordableprices Convenient andnear

Buying pattern Not frequent

(Around 1 time/month)

Frequent

times/month)

Not frequent

Based on these criteria, household breeding form has many features suitable for opening the store than the form of farm breeding and small-scaled breeding, because this form is the most popular in the region; the breeding volume of this form is not as large as that of the farm breeding method, but it’s still quite large and the people of this method buys food frequently and with high usage, their buying criteria are not too strict either

1.2 Target market:

The household breeders are our main customers because this is a common form of cattle breeding in the region, they often purchase and have high level of usage, the following farms can be developed intofarms Therefore, the same disaster we will have policies to attract customers in this market segment because eventhough they don’t buy much, their purchase is lagrge, keeping them is a condition for future growing

2 Customer characteristics

Our main customers are the farmers; their way of life is simple, natural, straight; they are not sophisticated when buying and they are friendly When buying, what they are interested

in the most is whether the foods give high productivity, cost savings and do not prolong the harvest, and can prevent the diseases and whether the products are really effective compared

to conventional food? In addition, through conversations with the farmers, we know that when buying, they also consider things such as: the shop has full instructions about how to prepare,

use the food for livestock - poultry appropriately; prices; time and forms of service; whether the stock is sufficient; the attitude the staffs and sales people

3 Competitors

Although there are many favourable objective and subjective conditions, in order to be successful we also have to research and look at the competitors in the area and must do better

in order to attract customers Currently, in the area of Luong Son town, there are two stores already; they are the competitors that we have to consider, they have lasting relationships with farmers in the region Although they have advantages, they are still weak in the consultancy and service Another problem of theirs is that they don’t have wide enough space needed, and the unfavorable traffic also makes it difficult for the transportation of goods to customers Understanding the strengths and weaknesses of competitors, we have actively invested in those aspects to ensure to attract customers from the early days of operation

4 Suppliers

In our opinion, the supplier plays an important role in the success of the business, creating good relationships with quality providers will give tremendous advantages for businesses, but it’s not easy to find good quality suppliers with reasonable price Through the process of search and selection, currently, the store's main supplier is level 1 agent shop of Vietnam Cattle food Joint stock (Proconco) with the brand “Cam con co” They provide quality products with reasonable price

5 Econometric factors

In today's market economy, the opening of businesses is not difficult, and the state has always encouraged agricultural support industries Therefore, for poultry food business, the registration is not too difficult

In recent times, the cattle - poultry industry in general and chicken - duck in particular has suffered heavy losses because breeders used products which makes the animals have more meat, they are genetically deformed and have some substances which can create cancer However, this situation is under control and stabilized to create opportunities for the poultry food store – to bring people and consumers the best and safe products

The Bank for Agriculture and Rural Development of Vietnam has preferential policies for farmers with low-interest loans

At the local area, there are not many companies, enterprises, while the number of people

in working age increases, the area of farming land, on the contrary, is decreasing This fact proves that breeding will create conditions for people to have more income and have a stable life

1 Equipment:

Table 5: Needed equipment:

Price (1000dong/

unit)

Total (Unit:1000 dongs)

2 Construction location:

The store is built right in the center of the town of Luong Son, Luong Son district, Hoa Binh province, the location is close to the large farms as well as small ones and also very convenient for the buying and selling of people This is the appropriate location, and it does not conflict with the initial plan which is to build cattle food stores that is in close contact with breeders in the area and trades in local neighborhood, as well as convenient in terms of the road for delivery of the products to customers

1 Organize production and operation:

- Store owner: is the person who manages and monitors all activities of the shop

Engineer

Store owner

Staff

Accountant