ENTREPRENEURSHIP SEPT 2018 SEMESTER

1. Executive Summary Vietnam''''s economy is growing, accompanied by the development of technology and other fields, including many private enterprises established and developed in the fields of telecommunications, technology, shopping and dining ... in which food service accounts for the highest start-up rates. Nowadays, there are quite a few cafes and dairies that are open to the needs of people who are more diversified. Moreover, to start a successful business, businesses need to make a difference and unique, with the technological and economic development, we look forward to establishing Coffee 3C.

ASSIGNMENT SUBMISSION AND ASSESSMENT

BMET5103 ENTREPRENEURSHIP SEPT 2018 SEMESTER

BUSINESS PLAN OF COFFEE CODER CLUB (COFFEE 3C)

Class: OUM

Name:

CONTENTS

1 Executive Summary 3

2 Industry Analyst 3

3 Company descriptions 5

4 Market Analysis 5

5 SWOT Analysis 10

5.1 Marketing Plan 12

6 Sales Process 13

6.1 Sale Tactic 14

7 Design and Development Plan 15

7.1 Design Model 15

7.2 Development status and tasks 16

7.3 Challenges and risks 17

7.4 Feasibility of the project 17

7.5 Projected development costs 17

8 Operation plan 18

8.1 Business location 18

9 Management team & Company Structure 19

9.1 Management team 19

9.2 Company structure 21

10 Project Milestone 23

11 Financial projections 24

Recap 27

CONCLUSION 29

1 Executive Summary

Vietnam's economy is growing, accompanied by the development of technology and other fields,including many private enterprises established and developed in the fields oftelecommunications, technology, shopping and dining in which food service accounts for thehighest start-up rates Nowadays, there are quite a few cafes and dairies that are open to theneeds of people who are more diversified Moreover, to start a successful business, businessesneed to make a difference and unique, with the technological and economic development, welook forward to establishing Coffee 3C Coffee is a popular drink in many parts of the world.Information technology is an integral part of today's era, and the combination between them hasmade Coffee 3C, coffee and milk tea I always pay attention to the quality of the product and thehealth of people, not only that, Coffee 3C is the space for people to work in the IT field cancommunicate and exchange together or simply quiet place to Students and office staff to rest,study or work

2 Industry Analyst

Coffee is one of the main export items of Vietnam is the export agricultural products rankedsecond in turnover after rice Therefore, the coffee industry has played a very important role inthe national economy

The coffee sector contributes to the restructuring of our agricultural sector Previously, Vietnamwas a country known for its rice products Today, Vietnam is also known for its coffee This notonly helps diversify the crop structure in the agricultural sector but also diversifies thecommodities in the export of agricultural products of Vietnam

The coffee sector has contributed to the economic restructuring: the coffee sector is associatedwith a closed process from production to consumption This has led to a number of developmentindustries, such as the construction of facilities for research on breeds, irrigation, transportation,machinery manufacturing, etc So, Economic structure in areas where coffee trees grow Thiscontributes to speeding up the process of industrialization and modernization in rural agriculture.The coffee sector has contributed significantly to the state budget revenues Every year the coffeeindustry brings to the country $ 1- 1.2 billion USD/ year, accounting for 10% of the country's

export turnover Therefore, coffee is one of the most potential products of Vietnam, with bothhigh domestic and export sales, indicating that the coffee business will be more productive forother products such as juice thirst, milk tea,

Today, our country's economy is growing, and its per capita income is increasing, and people's demand for food and entertainment is higher After hours of study and work stress, the students, the office often go to the coffee shop to meet, chat and relax According to a number of studies conducted by IPSARD, the demand for coffee in HCMC is very high, and most of them are businessmen and students

Picture 1 Market share of famous coffee brands in Vietnam market

From the table above shows that the HCMC market is very suitable for business cafe forstudents, students and office workers And we have a business plan for Coffee Corder Club.Nowadays, there are many well-known cafes, and the opening of a coffee shop will have manycompetitors, so we plan to set up a different cafe as compared to conventional coffee chains, and

I believe that this distinction will create the distinction that no coffee shop can have This coffeeshop will be the place for the sharing and interesting with coffee and IT lover IT associate come

and have a chance meet together and do experience sharing, and learning, training, contract, andteam work to build all project of programming like as Android, IOS, Java, Web,

3 Company descriptions

The café is called Coffee Coder Club, which is a cafe for almost all students, offices andespecially for those who work and study in the IT field, the tagline is Coffee and Code, thehighest number of guests is 100 guests Coffee shop located near the center of the city, at 100/12

Vo Van Tan, Ward 5, District 3, Ho Chi Minh City near the University of Natural Sciences Theduration of the restaurant is from 8:00 am to 10:00 pm Especially in the 3C cafe that is located

in a very quiet alley, quite private space, can be convenient for study or meeting on the work, andnetwork facilities are installation at high speed

Vision of the 3C coffee shop: The café was created with the desire to create an open space for IT,not only that, but we also want to connect IT people together to have Together, we also want to

be able to help companies solve problems related to code or to solve problems related IT

Mission: Our desire is that cafes are not only a place to share, connect and develop the ITexperience but also a place where you can come and enjoy the attractive drinks as well as withyou Friends and relatives share and talk about themselves more after days of study and workstress

Slogan: Together, we are stronger!

4 Market Analysis

Based on the business model of Coffee 3C has been presented relatively successful, now 3CCoffee shop is looking forward to improving our products and services, not only the coffeebusiness that we would like to bring more choices for everyone We have planned to enhance ourbusiness as a milk tea drink According to current information on the market, milk tea fever is onthe rise, the brand as Gong Cha or Share Tea - the brand has been very successful in thefastidious markets such as Europe and the opening of milk tea First in Vietnam, hundreds ofpeople are willing to queue long waits and even, they limit the number of cups a person isbuying Thus, the consumption of this beverage is very large In fact, the cost of a glass of milk

tea today is about 30,000-60,000 VND, 2-3 times more than before, while the cost of rawmaterials for a glass of milk tea is not too high The cost is low in profit, so this may be thereason why "homeowners" choose to trade milk tea to start a business According to a report byEuromonitor, Vietnam's milk tea market is worth $ 282 million USD by 2016, an annual growthrate of 20% High growth has attracted many investors to jump into the market According toLozi, a company that provides app sharing for dining experiences, more than 53% of respondentsregularly drink milk tea once a week From the beginning of 2017 to the end of June, on average,every month in Hanoi, there are 8 milk tea shops of the brand opened.

Although many brands of milk tea use imported materials, but the source of the topping has notbeen verified, many small shops in the roadside use poor quality raw materials affect the health

of consumers should ensure Consumer health is very important We plan to launch pearlHomemade milk tea, with topping material made by our own hand, and the process will also behygienic to ensure the health of consumers

Market segmentation and target market:

Currently, most of the catering services are segmented by school age students, students andoffice workers, and based on the market segment, Coffee 3C also identifies target markets asstudents and office workers, in addition to those active in the IT field

Competitor Analysis:

Picture 2 The chart shows the popularity of milk tea brands in Hanoi

From the above chart, we find customers now prefer branded teahouses because they think thatusing branded products with high price will guarantee quality However, this claim is still notfully rational because most of these types of tea milk composition is mainly imported fromabroad and the origin is not clearly defined For example, Toco Toco milk tea has been tested bymany Vietnamese authorities and found that many non-originating products are sold for sale,which is confusing for many consumers Moreover, the average price of 1 cup of milk tea brandssuch as Gongcha, TocoToco, Hot & Cold from 40,000 VND or more This price compared tooffice workers is quite preferential, but for the age of students this is a relatively high price, sothat you will choose milk tea of the lower price, the product will not guarantee the health of you

So, we decided to launch Home Made Milk Tea for the purpose of providing quality products atcompetitive prices, so that all ages can use and ensure the health of our customers

And to achieve that, Coffee 3C has established Business Canvas as follows:

Key Partners: Based on regular customers, Coffee 3C will introduce new products whencustomers order coffee, in addition to the shop located near the University of Science andTechnology The whole office should be easy to attract students and office staff to use.

Key Activities: The main activity of Coffee 3C is coffee business, space is shared for all of you

in the IT field and we are now looking forward to adding more milk tea products to help createmore variety Customers, milk tea is a drink for all ages and is a trend that many young peoplelove to use, creating a new feeling, not boring

Key Resources: It is the intellectual and material resources, including physical assets such asequipment for business Our intellectual resources are CEOs who are active in the field of IT andCFOs operating for many years in the financial sector as well as Marketing and Operationdepartments so we always believe that new products will be more customer choice We want tobring the experience and ethics in business to bring the best products to customers

Value Proposition: The core value of a coffee shop is to give customers a space to share theirexperiences, develop more in the IT field, and want to bring their drinks to the right price,manage and guarantee product quality

Customer Relationship: The majority of customers are students and office staff, because coffee is

a popular drink, so most customers come to the shop mainly because the space is suitable forwork, study rehearsal and relaxation, the number of customers of the shop mainly students of theUniversity of Natural Sciences and the nearby office buildings

Channels: The new product will be advertised on facebook, shop and Standee at the shop, inaddition when the customer to the staff will also actively introduce to customers to know anduse By identifying target customers and using distribution channels for the product, we see theimportance of platform products, only when the first product is truly stable, then the next productcan come out eyes and is believed by everyone

Customer Segments: The segment of customers that Coffee 3C is particularly interested in isstudents and office workers and customers working in the field of IT, milk tea products arecoming out with a goal for young people, and This product is also relatively easy to drink We

look forward to expanding our products as well as being trusted by more young people, to ensurethe health of our customers.

Cost Structure: Fixed cost of Renting cost & Depreciation of 40%, Coffee & Milk Tea 20% andVariable cost from selling coffee and milk tea (40%) In particular, we have the following table:

Build up and decorate

Internet service 3,000,000Screen 41’ inch 17,000,000Air-conditioner 22,000,000Projector (Sony) 18,000,000Tool to make coffee,

Other cost (Hire

employee distribute

leaflet…)

10,000,000

Table 1 Total cost of materials and equipment

Note: The cost does not include: rent space (stakes), other costs (about 10 million) and costs of materials investment time before operating

Management Accountning:

a Fix Cost: Costs are almost fixed or less likely to vary with output

- Rental space: 20 million VND / month (Due to the large space, quiet, no need of frontage

so the ground may be in the alley)

- Depreciation of fixed assets: VND 250 million / 25 months = VND 10 million / month

- Interest rate = 0 VND

- Human resources: including 8 people doing rush hour and 4 people working in low hour, the salary per person is 3 million VND / month, total: 36 million VND / month

- Electricity, water, internet, loss: 3 million VND

- Coffee, milk, tea, topping: 12 million VND / month

- Cost of relationships: 1 million VND

The total fee for one month is VND 82 million

b Variable Cost: As costs change as sales vary, assuming variable costs in this case is 40%.From the above we can infer:

- Turnover for one month: 82,000,000*100/60 = 137 million VND / month

- Turnover per day: 137,000,000/ 30 = 4,560,000 VND / day

- With the average selling price of 35,000 VND / 1 cup of coffee and 30,000 VND / 1 cup

of milk tea, the amount of milk tea and coffee to sell in the day to breakeven is:

• Number of cups of coffee: 4,560,000/ 35,000*50% = 65 cups / day

• Number of cups of milk tea: 4,560,000/ 30,000% 50% = 76 cups / day

Revenue Streams: The revenue required to reach the break-even level of one month is137,000,000 VND, the turnover needed to reach the breakeven level per day is 4,560,000 VND

On average, the total number of cups sold for breakeven is 65 cups and the cup of milk tea sold

to breakeven is 76 cups At the beginning of our business we expect sales to break even, andwithin 6 months to 1 year we believe that sales and profits will also increase.

5 SWOT Analysis

Strengths:

- Cafes have relationships with IT professionals, university teachers, forums, some ITcompanies, based on customer relationships available in the IT sector, when making a drink Themilk tea is easier to access

- Located near the university and building, easy to attract middle-aged youth when the newproduct is milk tea

Compared to current coffee chains, coffee and tea prices are relatively cheaper than some coffeeshops, such as The Coffee House, Starbucks, Urban Station and Red Code any drink

- The space of the restaurant is quiet, suitable for students to study, read books and officeworkers exchange work together Moreover, the shop also has enough facilities such as Wifinetwork speed high, projector, air conditioner

- At the end of each week, the coffee shop will have a live exchange for you to work in the ITfield, so that we can promote new products through these events

Weaknesses:

- The first limitation is financial, because it is a start-up coffee shop, so there will be manyfinancial difficulties, the cost of designing and buying materials is relatively high The loss is noteasy

- The number of main customers is still active in IT and students, but most of them are stillcurrent customers, close customers are still relatively few, so it is difficult to ensure revenuebreak even as expected

- Location: Because the shop is located in a quiet alleyway area, few people know about it Themain customers are the people from the university or office area, who are not familiar with thearea This position is both the strengths and weaknesses of the shop

- The main product is known as coffee, so when the drink milk tea, people will be afraid of notdelicious and quality with other brands of milk tea.

Opporturnities:

- The business model combined with the IT operation is one of the special features for Coffee3C

- As one of the IT service providers when companies need to complete small or large projects

- The need to share issues in the field of IT is increasing, and this is also the opportunity for us tocontribute together to share and develop the field of IT, the opportunity for Coffee 3C is widelyknown and to experience

- The market of milk tea is very hot, especially milk tea Home Made many young people lovemilk tea more than other drinks, so when milk tea will easily create attractive to customers Notonly that, milk tea needs to ensure the quality and good price will make people believe and use,Coffee 3C can meet the needs so this is one of the opportunities that Coffee 3C definitely truegood show

Threats:

- Competitors trading coffee and milk tea appear more and more business milk drinks milk will meet many difficulties

5.1 Marketing Plan

Implementing the 4P plan involves the following steps:

- Product: Milk tea products are now sold in the market, including milk tea with the price ofhigh-end to high-grade Coffee 3C products should be different One of the things that makes adifference is that milk tea is made from tea and milk, not like regular milk tea, made fromunknown sources, which affects human health consumption Topping is also done by themanual, ensuring hygiene, not like the topping type made from toxic chemicals In addition,when the customer orders, the new employee begins to blanche in place, unlike the milkshakethat is blended for the day, these are the salient features of the new product

- Price: On the price, the price of a cup of milk tea with topping is 30,000 VND and the price of acup of coffee is 35,000 VND, which is relatively competitive with other milk tea shops,competitive price with a product Quality and health are probably the kind of drinks that areworth using Although pricing a product at a lower price than its competitors is not a newstrategy, most Vietnamese still prefer quality products at discount prices rather than high-endproducts The high price, because Vietnam is still a developing country, so the number of peoplewith low income is higher than that of high income people, so the application of this strategy isquite right.

- Promotion: Make some promotions like: Buy 2 get 1 for any product, or buy 1 get 1 for 2-3weeks, 15-20% off on total bill Short promotion time will attract more visitors than long time Inaddition, Coffee 3C will also apply the promotion for you to purchase online by supportingdelivery charges The main promotional channel is still Facebook and Zalo, in addition to thestore will hang Standee and poster in front of the door so customers can know and rush to use thepromotion One of the most effective ways to advertise is to hire a staff handed out flyers in front

of the college entrance or at high school close to the coffee shop (it is estimated that 1,000 flyerswill be delivered in the first month, continue broadcasting or not) According to each brochure,customers who come and bring their leaflets will receive a discount of 15% on any drink that isnot included with the promotion at the restaurant, which will help customers to pay attention topromotions and introduce many friends to enjoy the incentives

- Place: Coffee 3C's main selling method is direct delivery In order to expand its market share,Coffee 3C will cooperate with distributors such as Delivery Now, Grab, Vato People can usetheir products at school or at home and at working

6 Sales Process

• Prepare the plan: Our business product plan is still looking to expand our milk tea drinks andenvironment for the IT industry As mentioned above, our customers will be students and officeworkers and the amount of products we would like to sell one day to reach the break-even pointmentioned Can be in the price structure of Business Canvas

• Approach: As one of the sales techniques aimed at knowing the main needs of the customer andassessing the customer, the sales person needs to understand the needs of the customer by askingthe customer directly For men and middle aged 30 and over, most of them will only like coffeeand for male students they can use coffee and milk tea Finally, if the customer is a female, mostoffice workers or students love the drink is milk tea, based on those needs, we can introducemore customers to use regular coffee, they can try milk tea

• Introduce Product: To introduce the product, the first thing is to understand the outstandingadvantages of the product compared to other competitors Milk tea is the new drink of the shop,and the main advantage of this product is all made by hand, do not enter raw materials ofunknown origin Coffee are purchased at the coffee plantation in the Central Highlands, millingand roasting in place, ensuring coffee without additives or toxic chemicals

Prepare the plan

Approach

Introduce Product

Ordering and payment

• Ordering and payment: After the customer selects the product, proceed to order quantity andpayment at the cashier.

• Promotion for member and new customer: This is the after sales program that almost anybusiness forms apply Especially, the business of eating is effective for both types of customers,

as a loyal customer when buying more products will accumulate and enjoy incentives, 2 is thepromotion will attract new customers first use the product

6.1 Sale Tactic

One of the most important strategies to help customers know new products is the combination ofcommunication through Zalo, Facebook or traditional channels such as direct referrals Whencustomers come to the shop and hang posters in front of the shop for people to know and come touse

In addition, the promotion strategy is an important strategy to increase the number of customers

of Coffee 3C, the promotion strategy can be buy 1 get 1 or reduce from 15% -20% of the totalbill paid when using milk tea

Cooperate with other media channels such as Samsung Pay, Galaxy Gift, AirPay with the aim

of increasing the market share, helping more people know about Coffee 3C and save onmarketing costs and increase the number of customers By co-operating with the abovechannels, Coffee 3C will enjoy a 15% discount when milk tea drinks for customers usinggenuine Samsung phones or electronic applications, the promotion will not be cumulated withchapters Other And Samsung will print free Poster, Tent card for Coffee 3C with videorecording and running Facebook Ads for free, the cooperation will bring many benefits forCoffee 3C in terms of communication The promotion only lasts 3-6 months to ensure the level

of attractiveness and cost for the 3C Coffee when launching new drinks As the program ends,Coffee 3C continues to implement Marketing for Coffee products to create a variety of choicesfor consumers