(Tiểu luận FTU) business plan fiancial statement analysis

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT The project contained herein was developed to explore the necessary financing and feasibility of starting a new project for a small eco-friendly business in Hanoi, Vietnam, where there are no or few stores selling environmental-friendly goods within the territory The business plan investigates the potential market and customers of the business and illustrates Hanoi would be a perfect location of this business This plan also explains marketing, operating, and management plans which promote sales of the business and make it profitable Apart from the new product that we proposed to raise fund, the business also has other popular products based on customer demands Furthermore, the business is the first business model in Hanoi that provides refill services for ecological friendly goods The most remarkable highlight in this business plan is detailed financial plan so as to prove the possibility of this project Our goal is to have the spirits of our business remain the same and expand the branch to other cities to spread a positive message about protecting our Mother Nature LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAP COMPANY DESCRIPTION Introduction The research in this business plan features the details of starting a small business in Hanoi, Vietnam Through extensive analysis, we have been able to create a business plan and marketing strategy that will allow this business to be a market niche in the area The business name is Green Station to give the first impression of an eco-friendly brand featuring products that are not readily available at the local market The products will be diverse to meet the demographics of customers in the surrounding area as well as those looking for products on the business web page, which will also feature specialty items Green Station will feature hallmark goods mainly made from nature like coconut, bamboo, nuts, etc The products will be priced by unit (10ml-10g) or packed in kits so that customers can purchase items within their affordability Furthermore, we also sell and offer refill services The store will have a nostalgic feel that brings the customer to an “old fashion store” Not only supplying a wide range of products, but we also open free workshop for our be-loved customers Our workshop will be offered to share the experience, skills, and tips to live greener and have a healthy life Mission and Vision statement At Green Station, protecting the environment is more than just a task, it's a passion Having spent our childhood in the countryside of Vietnam, Since 2015, we have nourished an idea that aims to change the habit of using products that are full of harmful chemicals of the Vietnamese and people all over the world in general In 2016, Green Station is officially launched as a Hanoi-based social impact company with 3-zero: zero waste, zero inequality, and zero exclusion: Zero Waste: offers ecological alternatives to daily goods that are reusable and refillable from natural materials such as bamboo, coconut, flowers, etc to design sustainable products such as shampoo, conditioner, soap, and oil LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Zero inequality: This contributes to sustainable development by providing better trading conditions, ensuring the rights of artisans and workers in Vietnam Zero exclusion: Green Station seeks to promote measures to promote the integration of marginalized populations to reduce social vulnerability in Vietnam and to reduce poverty Nowadays, the use of single-use products and toxic chemicals seriously affects the ecosystem By 2050, there will be more plastic in the ocean than fish There is no second planet! So solutions to decrease this issue should be taken urgently Services The products are being made in a rented production line located in the suburban of Hanoi and will meet the demands of the community demographics In 2016, the store started with a reasonable amount of product to determine the needs of the customers The original products feature nature goods The store will also feature refill service for items from the shop to meet the idea of environment protection As customer needs and requests become apparent, we will need mass production and other products will be added to the store to meet the growing demand, to include the possibility of creating a Vietnamese brand that can compete with Lush Workshops will also be offered occasionally to raise people awareness about environmental issues to give a helping hand to make the Earth a great place to live in As business operations growth more, we will consider offering a limited selection of the most popular items through internet sales LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER II INDUSTRY AND MARKET ANALYSIS Industry Trends Natural beauty has been outperforming “conventional” beauty for some time, taking market share in the process And the dollars are really starting to add up on the natural side of the fence In 2017, products featuring natural claims represented 3.1% of the U.S personal care market, generating $1.3 billion in annual sales last year That’s up from 2.1% of the market in 2013 (representing sales of $230 million) Comparatively, beauty has been slower to go natural (natural products currently make up 1.4% of the market), but sales are growing quicker than in personal care PARABEN FREE COSMETICS SALES GROWTH VS YEAR-AGO LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In recent years, beauty shoppers have become more focused on parabens as an ingredient to avoid than just about any other For many consumers, synthetic compounds like propylparaben and butylparaben are hard to pronounce and hard to view as a safe ingredient And beauty manufacturers have been responsive to these concerns In fact, just 35% of beauty products contain parabens, down nearly points over the last two years Relative to other packaged goods categories, beauty and skin care manufacturers have been quite responsive to shifting consumer preferences Just a quarter of dairy products and a third of packaged food sold in 2017 were “clean label,” meaning they were devoid of any undesirable ingredients In edible categories, undesirable ingredients include things like high fructose corn syrup or MSG But for the beauty industry, there’s still work to be done Many categories still derive a significant share of sales from products with parabensand likely many other undesirable ingredients The good news? Those categories still heavily focused on parabens are some of the fastest shifting to paraben-free Over the last two years, facial cosmetics have gone from just 43% paraben-free to 54% LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Target Market Description Hanoi is the capital in Vietnam and is home to a diverse population Hanoi features a large middle-aged community (25-54) that accounts for 45.56% of the city population and this is our main target customer, and the age group from 15 to 24 account for 16.23% of the population is our second priority These demographics will allow our business to reach the target market with a large population There is no business model similar to our in Hanoi or the surrounding area with the nostalgic feel and natural products that Green Station will offer Local indirect competitors including The Body Shop, a large beauty chain; The Face Shop, specializing in facial beauty products our products can be purchased at our store, Vinmart and the convenience store, but these are the big name, mass-produced items, such as Hazeline, Biodemathat, etc are sold in nearly every store If someone is seeking natural, one-of-a-kind beauty items it would require ordering from another nation and take a lot of time over an hour to purchase a similar item that could be purchased at Green Station In the extended market, an even larger population can be served by Green Station Figure?  shows population data of the extended market of Hanoi Hanoi accounts for more than 60% of the target customer which Green Station want to reach The local cities will also bring in customers with extensive advertising Figure Market populations LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Green Station will impress customers by providing the best quality nostalgic candies to generate repeat purchases and create a solid customer base for future stores and online shopping Location and Target Customers The target location of Hanoi will meet a market niche for a Beauty store There is not a similar beauty store in Hanoi The target customers of the business will be individuals ages 16 to 65 This target includes local high school and college students, local corporate and business personnel, tourists, retirees, and specific-purchase customers The market will be expanded further by featuring products at the local supermarket There is the potential to expand to internet sales in the future as the business grows LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER III MARKETING ANALYSIS AND SALES PLAN The Marketing Environment  Economic force: Economic factors include: income, per capita interest, interest rate, inflation, economic growth rate of GDP Economic factors have a great influence on the tissue industry, production and business activities of the industry As the economy grows, the average income of consumers increases the demand for paper tissue Vietnam is implementing an open economy, a market economy, stable and high GDP growth rate compared to other countries in the region The tissue industry has conditions to attract investment capital and more advanced imported technology from abroad Vietnam's external economic relations are expanding, production capacity increases Along with that is the need for very large tissue amount especially in restaurants and hotels services, In recent years, paper tissue has been consumed considerably and increasingly Currently there are more than 50 fiercely competitive domestic brands Vietnam economic environment has created opportunities and challenges for the industry  Sociocultural forces: The social factors affecting the paper tissue industry is mainly population size and population needs The population of our country tends to increase at a stable level, so the tissue industry is very easy to predict demand That the perception of consumers is increasing, society is more concerned with sanitation and environmental protection are great advantages for the paper industry  Political forces: Vietnam has been evaluated as a country with stable politics, the safest investment environment in the region This is a very favorable factor to attract and call for foreign capital The government is encouraging FDI for the paper industry, the government offers many incentives for foreign investment packages in Vietnam The joining AFTA also brings many opportunities for Vietnam's paper industry LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com  Legal and regulatory forces: It is expressed through guidelines and legal documents regulating the paper industry In order to create conditions for the paper industry to exist and develop The Government has made policy decisions for the paper industry, in particular, the Prime Minister has approved the "Master Plan for the development of Vietnam's paper industry by 2015" according to Decision No 160 / QD-TTG, dated 9-1988 The Resolution of the IX National Congress of the Party clearly stated: Developing the paper industry is in association with planting paper material forests to stabilize production and protect the environment  Technological forces: Science and technology is considered a key, an important factor in production competition, affects the survival of products in the market because production technology is directly related to production costs and price In order to survive and develop in such a fiercely competitive environment, the paper industry must anticipate the changes brought about by technology and flexibly response In recent years, the paper industry has had many new technologies, applied scientific advances in three areas: - Producing paper with bleaching technology - Moving from acidic to alkaline environment during paper making - Measurement and control A series of new equipment imported from abroad has been put into use recently like the company's powder grinding system Now Toyo The equipment systems of the enterprises have been renovated and supplemented with hydraulic grinding and disc grinding The paper industry has focused on investing over 1140 million USD to implement projects of producing pulp and paper with advanced technology to ensure high quality products, more types and more competitive prices However, compared to the countries in the region and all over the world, the level of science and technology of the Vietnamese paper industry is still limited and out-of-date which leads to the ineffective production SWOT Analysis LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Opportunities  Vietnam's average consumption rate is still very low, only 0.8kg / person / year, compared with the global average of 4.2kg / person / year and it is expected that this figure will increase to 5.4 kg in 2016 and 10 kg in 2026 Mr Vu Ngoc Bao, Vice President and General Secretary of Vietnam Paper and Pulp Association said that even consumption of living paper 10kg / person / year is still much lower than the consumption of the US market (about 24kg / person / year), Western Europe (about 15kg / person / year)  According to updated data for 12 months, ending 3rd quarter/2007, Kantar Worldpanel Market Research Company in main cities of Vietnam is Ho Chi Minh City, Hanoi, Da Nang, Can Tho and rural areas In Vietnam, the domestic paper market has a growth rate of 9% in urban areas and 32% in rural areas, with an average household consumption of 240,000 VND / household / year (in urban) and 140 thousand VND / household / year (in rural areas) In living paper products such as toilet paper (Toilet Tissue), box tissue (Pocket Tissue), Pocket Tissue, paper napkins (Table Napkins), kitchen napkins ( Hand Towel), Wet Tissue is the most popular product range, especially in urban areas and overseas markets  Importing companies are not likely to grow due to the characteristic of quite light and bulky paper products, high logistics costs should be a big obstacle for foreign businesses to penetrate the market through the way of exporting products Threats  Currently there are about 100 paper production enterprises in Vietnam, of which 96% are small-capacity enterprises, using outdated technologies, no standard wastewater treatment system The production of living paper requires a large investment for factories and equipment to improve product quality, increase competitiveness That is the reason why it is considered very potential, the living paper market seems to be a playground for businesses with strong financial potential This has been demonstrated by the fact that very few businesses in the industry have expanded their investment and production activities over the past time  The majority of consumers choose prestigious / long-established brands and are selected / used by many This element with toilet paper is 25-27%, pocket paper (including dry tissue and wet tissue) is 23-24%, towel / napkin is 22-24% While with many products LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com                daily consumption, consumers are very interested in promotions, with tissue, this criterion is very little attention Sales promotions, salespeople 's recommendations or trial products seem having no effect on their buying decisions, since only - 6% of interviewees consider this a factor When the products are popular, it is very likely that fake products will appear in the market and affect business The products have many alternatives There are many competiors from domestic brands to foreign brands Domestic competitors: White cloud, Charmin, Kleenex Conttonelle, Pulppy, E’mos, Watersilk, An An,Premium, Vins, Bless You hold me, Rossy,… Foreign competitors : Japani, K-Mom, LEC, Mamamy,Himapi, Happy Mom, Goon, Nuna,… Strength We are confident to jump in the paper tissue-producing industry which is a fast-moving commodity industry and therefore users not change their familiar products and thus has many difficulties and challenges especially for a new brand because we believe that we will succeed due to our own advantages:   A high-quality product is produced entirely from natural materials and ensured origin of the source so it can be for everyone at any age including babies Environmentally friendly because our paper is recyclable and biodegradable Multipurpose when used as a dry towel or wet towel Refilling policies to help users save and protect the environment Our brand name has been known and received belief by a certain number of customers in the market and the proportion of repeat customers Our machinery is the lattest one and our technology is modern, so we can reduce the labour cost Weakness No our own experience in adjusting the number of products produced in each period of the year, all of our expectation is got from the secondary information No experience in solving the wrong products to minimize the cost The products sold are not much in first periods, so we have to buy the materials with a higher price than the competitors The machinery and factory is still small scale, so we have to produce with higher cost The distribution network is still limited, just focus on urban areas The ability to raise fund is limited because our brand is still not so popular all over the country LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com  Customer target is not large, the price of product is not suitable for all of the people Marketing Plan        Media channels: Print Ads Online Ads Outdoor Ads Events Social netwwork Advert Oral Editorial LAUNCHING AND DEVELOPING NEW PRODUCTS PLAN Before launching_ Raising awareness Launching - Understand the products and create interest After launching- Customers experience and Get Loyalty (3 months) (1 month) (4 months) Objectiv e Products are known by the public Public understand the unique and convenient characteristics of products Products become familiar products with consumers Increase sales by focusing on whole sale Message Green Tissue - a new brand of tissue on the market, a new way of paper use Green Tissue - A highquality Vietnamese tissue, a new choice for consumers, a supporting friend for green life Green Tissue - understand you and bring convenience for consumers and Return freshness for the Environment A good supplier with many favorable treatments and high discount Introduce about the appearance of Green Tissue on the market Organize an official launching event Make a public attraction Contact with more potential whole sale customers Information about products come to the public Inform and connect with relevant parties Make an impression on the consumers about excellent products, a good and new kind of service REFILLING Listening the current customers and give promotion Through online social media Press conference Key events Key events Through offline social media Ads through media channels Expert articles Expert articles Ads through media channels Ads through media channels 50,000.000 150,000.000 Period Target Action Cost 100,000.000 200,000.000 Boost Sales (4 months) LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com (million VND) Sales Plan The sales plan will be established to generate repeat sales and future growth In term of products that have been on the market, the estimated growth rate would be 25% in 2019 due to the transfer from hiring factory to self-manufacture We also aforemention a detailed marketing strategy for a new key product – Eco-friendly Wet Wipes The expected growth for this brand-new product is 30% Besides, we often organize free or charged workshop The classes are in addition to our products’ sales and the sales can grow if these workshops attract more and more attendees The business has expected sales in place and to meet those goals In the campaign of introducing Eco-friendly Wet Wipes, communication will take place with previous loyal customers to let them know first, and the store will reach out to the community by visiting community events to promote the business The goal of the business is not to be the biggest, but to sustain sales and produce a desired quality product The table below show the price list of all products: Numb er Product Eco-friendly Dry wipes Wet Wipes Essential oil Old Old New New Price COGS Price COGS 30000 10000 Unit 50 units Shampoo Conditioner Body Care Shower bath 15000 7000 13000 2500 10g ~ 10ml Body lotion Body srub LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Lip balm Lip balm & Soap 150000 50000 140000 35000 10g ~ 10ml 10000 5000 8000 3000 10g ~ 10ml 2000 800 1800 500 10g ~ 10ml Soap Natural Oil Natural oil Floor cleaner Home Care Dishwashing liquid Washing liquid A database will be generated through a Digital marketing team The database can sort by ages, areas, income The store will also maintain an email list of those who provide their personal email at the time of sale These databases will help the store focus sales to specific demographic of its products SMS message and Gmail will be send to advertise and promote upcoming holiday items for customers’ special occasion purchases A database will be maintained to keep track of customers who are participating in the incentive program for outreach to them through email and postal mail to keep them updated on their balances and promote special holidays or events to get them into the store LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... The research in this business plan features the details of starting a small business in Hanoi, Vietnam Through extensive analysis, we have been able to create a business plan and marketing strategy... customers of the business and illustrates Hanoi would be a perfect location of this business This plan also explains marketing, operating, and management plans which promote sales of the business and... most remarkable highlight in this business plan is detailed financial plan so as to prove the possibility of this project Our goal is to have the spirits of our business remain the same and expand