Business Plan Green land shop

Short-term goal: The first week can sale 200 products Bring the minimum profits: 2.000.000 – 2.500.000 VND/ week Make customers trust my shop: High quality product: beautiful, good gro

VIET NAM NATIONAL UNIVERSITY OF AGRICULTURE

- -BUSINESS PLAN

A Green Land Shop at VNUA

Students name:

Class: K60QTKDT

Lecture: Assoc Prof Dr Tran HuuCuong

Table Contents

1 EXECUTIVE SUMMARY 4

1.1 Business Objective: 4

1.2 Mission Statement: 4

2 COMPANY DESCRIPTION 4

3 TARGET MARKET 4

3.1 Target customer characteristics 4

3.2 Customer motivations and purchasing patterns 5

3.3 Market Size 5

3.4 Market Trends 5

4 THE COMPETITION 5

5 MARKETING AND SALES PLAN 7

5.1 Goals 7

5.2 Product Strategy 7

5.3 Pricing Strategy 7

5.4 Place Strategy 8

5.5 Promotion and Advertising Strategy 8

6 OPERATIONS 8

6.1 Location/ facilities 8

6.2 Production/ quality control 8

6.3 Supply/ distribution 9

6.4 Customer service 9

6.5 Operational advantages 9

6.6 Operational challenges 9

6.7 Solutions 9

7 MANAGEMENT STRUCTURE 10

7.1 Organization structure 10

7.2 Management Team 10

7.3 Personnel Plan 10

8 FINANCIALS 10

8.1 Important Assumptions 10

8.2 Start-Up Costs 11

8.2.1Estimating cost of capital 11

8.2.2Estimating investment costs 11

8.2.3Estimating salary costs in 2019 11

8.2.4Estimated total expenses 12

8.3 Projections 12

8.3.1 Projected Profit and Loss 12

8.3.2 Projected Balance Sheet 13

1 EXECUTIVE SUMMARY

1.1 Business Objective:

As a start-up store, we set clear goals Short-term goal:

The first week can sale 200 products

Bring the minimum profits: 2.000.000 – 2.500.000 VND/ week

Make customers trust my shop:

High quality product: beautiful, good growth- don’t have pets

Cheaper price than other shop

Long-term goal:

Provide quality products to customers as well as the best service for customers

to build prestige in around VNUA

1.2 Mission Statement:

Small plants not only decorate, refresh the family space but it has become an

"accessory" to beautify the work room Many people choose gifts as beautiful as cheap as well as In addition to decorative effects it also brings a lot of fengshui meaning With small plants, you can completely create a beautiful green space in the narrow area, in the cafe, restaurant, workplace So the shop was born with the purpose of directing users to a cool, creative space A space does not have noisy, dusty, stress and away from the worries of life Help people find more fun, inspirational work; optimistic, confident in life

2 COMPANY DESCRIPTION

Name: Green Land Shop

Variety product: seed, bonsai, decorative plant, …

Location: 3 Street-An Lac- TrauQuy - Gia Lam -Ha Noi

Email: greenland@gmail.com

Facebook: Green Land shop

Slogan: “Green land, green planet”

Motivation: Customer wants to relax after hard working day with airy space and green tree

3 TARGET MARKET

According to a survey, found that demand for ornamental plants was strong or moderate in most of the Interior decoration market and FengShui around the country And Green Land Shop is targeting three main types has the most potential

3.1 Target customer characteristics

After studying and analyzing, we have categorized some characteristics according to each type of customer.For students, they are young and have low income Usually buy pots or small plants The trees are suitable for gifts and decorations

For office workers, they have better financial resources, often buying large trees suitable for office And plants suitable fengshuifor residents, quite financially The diversity of plants, there are also a large number of residents buying fengshui trees

3.2 Customer motivations and purchasing patterns

What factors most influence your customers’ purchasing decision?

Consumer: Students have limited financial resources, so the decisive factor when buying is their price and personal preferences In addition, the style of shop decoration and customer service also plays a role.For employees and residents, they have higher income but at the same time the free time is limited, so the decisive factor when buying is the store location and customer needs Next is the quality of trees, fengshui and customer service

Business: The most important thing to attract customers is the quality of products and customer service Then there are many important factors are not only the product price, business location, transportation services,

3.3 Market Size

Total customers per month

Students: about 20-50 people

Employee offers: around 40 people

Residents: about 50 people

Total target customers: Nearly 150 people per month

3.4 Market Trends

In the future, expected the number of students, officers and residents at and around VNUA area will increase Trends to bonsai at the desk create open space, reducing the stress of office workers will increase Life is improved, mental needs of people increase such as: birthday, 20/10, 20-11, 8-3 Products such as teddy bears, clothes, shoes are familiar The trend to find new gifts to beautify the balcony, learn about the tree increase When people find more meaningful gifts, bonsai that meet these requirements will become the first choice

4 THE COMPETITION

In VNUA, we have many competitors, specific competitors are: Vườnhoasinhviên, Flower Corner, Thếgiớihoacảnh, Vườnhồngnôngnghiệp They have a lot of strengths are the number of patrons is stable, good prices for their available sources, spacious shop, eye-catching decoration and employees have long experience Beside that, they have 2 Weaknesses are do not transport the range near school and high price So, we created a competitor evaluation table, to understand them as well as to improve our goods

Indicator Important

level

Vườnhoa sinhviên

Flower Corner

Thếgiớih oacảnh

Vườnhồngn ôngnghiệp

Green Land

Service to

customers

After completing the table, we find that we have a lot of competitive advantages, namely: Have many activities and promotion services, good price: range of 30.000-70.000VND - cheaper price than other shop After a careful review, we have a comment about SWOT in our shop on the table:

Young employee, give new ideas,

effective

Price is consistent with the level of

income of consumers

Fast delivery, quality and reduced

transportation costs

Little capital New shop has not many customers The area of shop is small for decoration arrangements

Young employee don’t have experienced

Market demand is high

Income customers increase

There are many suppliers of raw

materials at competitive prices

Internet development is strong,

effective support for advertising

Business model is easy to copy Price of products and materials increase Competitors have strong finances

5 MARKETING AND SALES PLAN

The Marketing mix is a set of four decisions which needs to be taken before launching any new product These variables are also known as the 4 P’s of marketing These four variables help the firm in making strategic decisions

necessary for the smooth running of any product / organization The Variables of marketing mix are as follows:

1) Product

2) Pricing

3) Place

4) Promotions

5.1 Goals

Short-term goal: The first week can sale 200 products Bring the minimum profits: 2.000.000 – 2.500.000 VND/ week Make customers trust my shop: High quality product: beautiful, good growth- don’t have pets, cheaper price than other shop Long-term goal: Provide quality products to customers as well as the best service for customers to build prestige in around VNUA

5.2 Product Strategy

Variety product: Pot plants, seed, bonsai, decorative plant, soil nutrition…

The products of the shop have their own characteristics, customers can enjoy the creativity according to their own preferences, and shop also provides full equipment

5.3 Pricing Strategy

Not to the higher price of the competitors

 Penetration Pricing: 2 opening weeks Low price to secure high volumes.

Discount 30% to attract customers and increase demand

 Complementary Pricing: charge a very low price, compared to the

competitors, for a common item, while raising the price on other items

The price of the product is suitable for many groups of customers, because it is self-designed products, so there are many prices for customers to choose from different products

To increase the number of customers to the store, there are strategies to reduce the price on holidays, special occasions.Take care of customers by accumulating point, discount on birthday

5.4 Place Strategy

Address: 3 Street-AnLac- TrauQuy - Gia Lam -Ha Noi The shop is located in a

densely populated area to attract customers Security area, customers have ample

parking when visiting the shop to visit and select the products you like The space is decorated neatly, clean and creative, bringing cool feeling to satisfy customers

Selling online and free ship around VNUA

Direct distribution: customers come to the store to be able to easily select and

consult more specific, but the store still has online sales service, delivery for those who are busy, there is no time to visit the shop

5.5 Promotion and Advertising Strategy

Promotion Strategy

When customer buy product in the shop, they can have been services such as: keep track of customer information, call care after 1 week, 1 month Donate some things cute Enter the discount code Buy 4 get 1

Advertising Strategy

The means of choice are simple, low cost but highly effective: post in the Facebook, Zalo, Instagram

Leaflets: Design and print brochures for your store, with Facebook, Zalo, Instagram address, and contact address for direct order via phone, which is used to deliver to customers Customers want to refer to their own design of plants as you like and can transfer to other people to make the store more widely known

6 OPERATIONS

6.1 Location/ facilities

The study of facility location problems, also known as location analysis, is a branch

of operations research and computational geometry concerned with the optimal placement of facilities to minimize transportation costs while considering factors like avoiding placing hazardous materials near housing, and competitors' facilities The techniques also apply to cluster analysis Our shop includes 1 floor about 20m2,

1 bed, a kitchen, storage area and garden wide 30m2 With criteria:

Beautiful design

Inside decoration with mini pots: stone lotus, lucky tree

Garden showcasing such as rose creepers, Paper flowers, orchids

6.2 Production/ quality control

We are quality control by choose the import markets or prestigious seedlings and check careful product before receive.About Inventory control, first we try not to stock up lots, the most important is take care of plant, bring water and kill pet for plant, flower

6.3 Supply/ distribution

For the supplier, we choose 2 suppliers areVNUA Plants center (Address: Vietnam National University of Agricutal) and Hoang HoaTham Plants markets (Address:

628 Hoang HoaTham, Tay Ho, Hanoi)

6.4 Customer service

Customer service is very important, we always pay attention to service when customers come to the store:

Save customers’ vehicles carefully when they come

We will serve mineral water first for them to drink in waiting time

We turn on music every day

Free ship for customers in VNUA area

Developing close relationship and be very friendly to anyone who comes in

6.5 Operational advantages

Starting out as a student of VNUA, we are well aware of the market here and grasp the operational advantages

Supply: we have near, cheap and high quality suppliers.

Market: wide market, many customers

Distribution: we have quick and professional serving.

6.6 Operational challenges

Beside the operational advantages, we encountered some challenges such as:

Supply: Sometimes the quality of suppliers is not good and they can increase prices

of products

Production: Difficult to keep flower fresh in long time.

Distribution: Each customer has different favorite plant, flower.

Capital: Have many risk from start- up with project need many money.

6.7 Solutions

To address these issues, we have put forward some of the possible solutions:

Choose to co-operate with the best suppliers

Estimate the products can sell for one day to adjust import products quantity

Check the quality of materials everyday

Encourage customers to feedback our products

Train employees to make them work faster and more professional

7 MANAGEMENT STRUCTURE

7.1 Organization structure

Green Land Shop will be wholly owned and operated by Nhung, Thảo, Linh Nhung will perform all office and accounting functions such as calculating the initial shop costs and seed costs Linh and Thảo will perform sales We will hire one staff for Technical work, and one shipper

7.2 Management Team

Nhung will actively manage the shop Shop management duties will include importing goods, establishing and maintaining accounting systems Recruiting, training and managing sales staffs Organizing the business activities

Linh and Thảo serving and introducing products for customers They actively market Green Land SHop by speaking to local residents, give out flyers and post information to social networks And they will also actively participate in managing shop during the busy

7.3 Personnel Plan

The following is a summary of GreenLand Shop’s Personnel Plan

Job

Function

No Hrs/Month Total Hrs Pay rate Total Wages

Technical

staff

8 FINANCIALS

8.1 Important Assumptions

This financial plan is set up as an estimate to calculate the amount of money needed

to put the project into operation

Financial objectives: self-mobilization of capital and profit of at least 20% compared with the capital spent annually

Purpose of the financial plan:

Expect reports on business results and profit distribution

Expect financial needs

Expected cash flow projection

Helps managers to select organizational measures, adjust financial resources to

be used effectively

Sales forecast: Estimated maximum number of customers per day to 30 people per day It is forecasted that the average operating capacity in 2019 will be 50%, 70% in

2020 and 80% in 2021

The number of days of operation of the shop is 30 days / month

8.2 Start-Up Costs

8.2.1Estimating cost of capital

Estimating cost of capital: Set by the supplier according to the quantity purchased:

In 2019: buy 1400 seeds of about 70 million, 500 pots of plants and decorative materials, tools to support the tree estimating 68 million

In 2020: buy 2000 seeds estimating 90 million, 600 pots and decorative materials, tools estimating 72 million

In 2021: buy 2500 seeds estimated at 116 million; 800 baskets of plants and raw materials, tools estimating 175.2 million

8.2.2Estimating investment costs

8.2.3Estimating salary costs in 2019

Position Salary / month Salary / year

8.2.4Estimated total expenses