Business plan for food products of nova consumer group in the period 2022 2025

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY DOAN HAI DANG BUSINESS PLAN FOR FOOD PRODUCTS OF NOVA CONSUMER GROUP IN THE PERIOD 2022-2025 Major: BUSINESS ADMINISTRATION Major Code: 8340101 MASTER’S THESIS HO CHI MINH CITY, July 2022 THIS RESEARCH IS COMPLETED AT UNIVERSITY OF TECHNOLOGY – VNU – HCM CITY Instructor: Assoc Prof Dr Pham Quoc Trung The Examiner 1: Dr Phan Trieu Anh The Examiner 2: Dr Do Thanh Luu Master’săthesisăisădefendedăatăHCMăcityăUniversityăofăTechnology, VNUHCM City on 22 July 2022 TheăboardăofătheăMaster’săThesisăDefenseăCouncilăincludes: (Please write down the full name and academic rank of each member of the Master Thesis Defense Council) Dr Nguyen Vu Quang, Chairman Dr Le Thi Thanh Xuan, Secretary Dr Phan Trieu Anh, Reviewer Dr Do Thanh Luu, Reviewer Assoc Prof Dr Pham Quoc Trung, Member VerificationăofătheăChairmanăofătheăMaster’săThesisăDefenseăCouncilăandătheă Dean of School of Industrial Management after the thesis being corrected (If any) CHAIRMAN OF THE COUNCIL DEAN OF INDUSTRIAL MANAGEMENT i VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness THE TASK SHEET OF MASTER’S THESIS Full name: DOAN HAI DANG Date of birth: 13/09/1992 Major: Business Administration I Student code: 2070610 Place of birth: Vinh Long Major code: 8340101 THESIS TOPIC: Business Plan for Food Products of Nova Consumer Group in The Period 20222025 / K Ho ch Kinh Doanh Cho Các S n Ph m Th c Ph m C a T p oàn Nova Consumer II TASKS AND CONTENTS: Preparing the Business Plan including the resources, competitive advantage, SWOT analysis, production, marketing, HR, and financial plan for Food Products of Nova Consumer Group in The Period 2022-2025 III TASKS STARTING DATE: March 1st 2022 IV TASKS ENDING DATE: June 30th 2022 V INSTRUCTOR: Professor Pham Quoc Trung HCM City, date month year INSTRUCTOR (Full name and signature) HEAD OF DEPARTMENT (Full name and signature) DEAN OF INDUSTRIAL MANAGEMENT (Full name and signature) ii ACKNOWLEDGEMENT Throughout the writing of this thesis, I have received a great deal of support and assistance I would first like to thank my supervisor, Professor Pham Quoc Trung, whose expertise was invaluable in formulating the research questions and methodology His insightful feedback pushed me to sharpen my thinking and brought my work to a higher level I would like to acknowledge my colleagues from my company at Novagroup and Nova Consumer Group for their wonderful collaboration They provided me with the tools that I needed to choose the right direction and successfully complete my dissertation Finally, I could not have completed this dissertation without the support of my parents Their wise counsel and sympathetic ear are always there for me iii SUMMARY OF MASTER’S THESIS This thesis presents the business plan for food products of Nova Consumer Group in the period 2022 to 2025 in Vietnam, including raw meat (pork, beef, chicken, eggs), processed foods including sausages, canned goods, and rice cakes To establish Nova Consumer's business plan, the writer analyzed macroeconomic indicators to analyze their impact on consumer spending and prices of feed, fertilizer, and raw materials In addition, the writer has analyzed micro-economic indicators to position the company in the relevant market and give appropriate development strategies Through the research process, the writer analyzes the business concept of Nova Consumer, which is the closed production model called 3F Feed - Farm - Food Accordingly, Nova Consumer owns technologies for manufacturing vaccines, veterinary drugs, and animal feed Then, they use them to grow livestock and poultry on their farms After that, they simultaneously sell raw meat products to the market and uses them as input materials for the production of processed foods such as sausages and canned goods As Vietnam's meat consumption market is growing well following the recovery of GDP growth rate after the pandemic, Nova Consumer can reach potential customers who are households and young people In particular, with the expansion of online shopping activities due to the impact of the pandemic, Nova Consumer has the opportunity to reach 49 million online shopping customers in Vietnam Nova Consumer also can easily cooperate with other members of Novagroup to distribute and retail food products These are the unique advantages of Nova Consumer compared to competitors such as Masan Meatlife, and CP Group From 2022 through 2025, the writer proposes that Nova Consumer can accelerate the development and business expansion by continuing the 3F model by expanding the number of herds and poultry on farms; upgrading, expanding, and building new food processing factories Besides, the writer recommends that Nova Consumer can take advantage of the development of online marketing channels according to the combined method of 4P and 4C In addition, the writer proposes that Nova Consumer coordinate with other member companies of Novagroup to expand the market, boost sales, and achieve an expected net profit after tax of up to VND 660 billion and expected revenue to reach 9,450 billion by 2025 iv Lu năV nătrình bày K ăho chăkinhădoanhăcácăm tăhàngăth căph măc aăCông Ty C ăPh năNovaăConsumer giaiăđo nă2022ăđ nă2025ăt iăVi tăNam,ăbaoăg m cácăs năph m th tăs ngă(heo,ăbị,ăgà,ătr ng),ăth căph măch ăbi nănh ăxúcăxích,ăđ ăh păvàăbánhăg o ăthi tăl păK ăho chăkinhădoanhăcho Nova Consumer, tácăgi đãăphânătíchăcácăch ă s ăkinhăt ăv ămơăđ ăphânătíchătácăđ ngăđ năchiătiêuăc aăng iătiêuădùngăvàăgiáăth că n,ă phânăbónăvàăngunăli u.ăNgồiăra,ătácăgi c ngăphânătíchăcácăch ăs kinhăt ăviămơăđ ă đ nhăv ăcôngătyătrênăth ătr ngăliênăquanăvàăđ aăraăchi năl căphátătri năphùăh p Quaă qă trìnhă nghiênă c u,ă tácă gi phân tích mơ hình kinhă doanhă c aă Novaă Consumeră làă mơă hìnhă s nă xu tă khépă kínă mangă tênă 3Fă Th că nă – Trangă Tr iă – Th că Ph m.ăTheoăđó,ăNovaăConsumerăs ăh uăcơng ngh ăs năxu tăv căxin,ăthu căthúăy,ăth că năch năni.ăSauăđó,ăh ăs ăd ngăchúngăđ ăch năniăgiaăsúcăvàăgiaăc mătrongătrangătr iă c aămình.ăSauăđó,ăh ăv a bánăcácăs năph măth tăs ngăraăth ătr ngăvàăv aăs ăd ngăchúngă làmănguyênăli uăđ uăvàoăđ ăs năxu tăth căph măch ăbi nănh ăxúcăxích,ăđ ăh p Doăth ătr t căđ ăt ngătr ngătiêuăth ăth tăc aăVi tăNamăđangăt ngătr ngăt tătheoăđàăph căh iăc aă ngăGDPăsauăđ iăd ch,ăNovaăConsumerăcóăth ăti păc năđ iăt hàngăti măn ngălàăcácăh ăgiaăđìnhăvàăgi iătr ă s mătr cătuy nădoă nhăh ngăkháchă căbi t,ăv iăvi căm ăr ngăho tăđ ngămuaă ngăc aăđ iăd ch,ăNovaăConsumerăcóăc ăh iăti păc nă49ătri uă kháchăhàngămuaăs mătr cătuy năt iăVi tăNam.ăNovaăConsumerăc ngăcóăth ăd ădàngăh pă tácăv iăcácăthànhăviênăkhácăc aăNovagroupăđ ăphânăph i vàăbánăl ăcácăs năph măth că ph m.ă âyălàănh ngăl iăth ăriêngăc aăNovaăConsumerăsoăv iăcácăđ iăth ănh ăMasană Meatlife, CP Group T ăn mă2022ăđ năn mă2025,ătácăgi đ ăxu tăNovaăConsumerăcóăth ăđ yănhanhăvi că phátătri năvàăm ăr ngăkinhădoanhăb ngăcáchăti păt cătri năkhaiămơăhìnhă3Făb ngăcáchăm ă r ngăs ăl ngăđànăgiaăsúc,ăgiaăc măt iăcácătrangătr i;ănângăc p,ăm ăr ngăvàăxâyăd ngăm iă cácănhàămáyăch ăbi năth căph m.ăBênăc nhăđó,ătácăgi khuy năngh ăNovaăConsumerăcóă th ăt năd ngăl iăth ăc aăvi căphátătri năcácăkênhăti păth ătr cătuy nătheoăph h p gi aămơăhình 4Păvàă4C.ăNgồiăra,ăng ngăth căk tă iăvi tăđ ăxu tăNovaăConsumerăph iăh păv iă cácăcôngătyăthànhăviênăkhácăc aăNovagroupăđ ăm ăr ngăth ătr ng,ăđ yăm nhădoanhăs ,ă đ tăl iănhu năsauăthu ăd ăki nălênăđ nă660ăt ăđ ngăvàădoanhăthuăd ăki năđ năn mă2025ă đ tă9.450ăt ăđ ng v COMMITMENT I hereby declare that the topic: "Business Plan For Food Products Of Nova Consumer Group In The Period 2022-2025" is an independent research work under the guidance of my supervisor: Associate professor Ph.D Pham Quoc Trung This topic is the product that I have made efforts to research during my study at the Ho Chi Minh City University of Technology as well as the internship at the Nova Consumer Group The data and results presented in the report are completely honest, I would like to take full responsibility and discipline of the subject and the school if there are problems AUTHOR DOAN HAI DANG vi TABLE OF CONTENTS THE TASK SHEET OF MASTER’S THESIS i ACKNOWLEDGEMENT ii SUMMARY OF MASTER’S THESIS iii COMMITMENT v TABLE OF CONTENTS vi List of tables ix List of Figures x I INTRODUCTION 1.1 Background 1.2 Business Opportunity 1.3 Objective of the thesis 1.4 Introduction of methodology 1.5 Key contents of the thesis II METHODOLOGY FOR BUSINESS PLAN ANALYSIS 2.1 Frameworks to analyze economic, industry, and market environment 2.2 Methods to collect data to measure market potential 2.3 Methods to feasibility business analysis 10 III BUSINESS CONCEPT INTRODUCTION 13 3.1 Introduction of the food products of Nova Consumer Group 13 3.2 Industry 15 3.3 Key partnerships 17 3.3.1 Supply chains partner 17 3.3.2 Financial institutions 18 3.4 Ethical and legal considerations 18 3.5 Economic and market analysis 19 3.6 Economic environment analysis 21 vii 3.6.1 Inflation 21 3.6.2 Interest 22 3.7 Industry analysis 23 3.8 Market potential analysis 24 3.8.1 Target customer 24 3.8.2 Customer behavior 26 3.9 Business model 27 3.9.1 The competitive landscape 27 3.9.2 Business Canvas Model 29 IV BUSINESS PLAN 33 4.1 Business Resources 33 4.2 Competitive advantage 38 4.3 SWOT analysis 39 4.3.1 Strength 39 4.3.2 Weakness 41 4.3.3 Opportunity 41 4.3.4 Challenge 42 4.4 Growth strategy 42 4.5 Production plan 44 4.6 Marketing Plan 44 4.6.1 The combination strategy of 4Cs and 4Ps 44 4.6.2 Applying e-marketing 46 4.7 Human resource plan 49 4.8 Financial projection and analysis 50 V SUSTAINABILITY ANALYSIS 53 5.1 Risks 53 5.1.1 Identify the risks 53 5.1.2 Analyze the impact 55 viii 5.1.3 Prioritize risks based on business objectives 57 5.1.4 Respond to the risk 57 5.1.5 Monitor results 58 5.2 Business plan’s limitations 58 5.2.1 Potential competitors in the future 58 5.2.2 Potential impacts of climate change and epidemic 59 5.2.3 Potential impacts of economic crisis 59 CONCLUSION 61 REFERENCES 63 APPENDIX 68 63 REFERENCES Amit, R & Zott, C (2001) Value creation in eBusiness Strategic Management Journal, 6–7 (22), 493–520 Anh Minh, (2020, 30) The State Bank of Vietnam reduces the operating interest rate for the 3rd time this year Government News Retrieved from https://baochinhphu.vn/nganhang-nha-nuoc-giam-lai-suat-dieu-hanh-lan-thu-3-trong-nam-102279877.htm Bich Hong (2022, 5) The wave of investment in livestock Vietnam News Agency Retrieved from https://baotintuc.vn/kinh-te/lan-song-dau-tu-vao-chan-nuoi- 20220605074305109.htm Dat Nguyen (2022, 13) Standard Chartered sees Vietnam inflation higher than central bank forecast VnExpress Retrieved from https://e.vnexpress.net/news/business/dataspeaks/standard-chartered-sees-vietnam-inflation-higher-than-central-bank-forecast4450760.html Dat Nguyen (2022, 9) World Bank expects Vietnam GDP to grow at 7.5% VnExpress Retrieved from https://e.vnexpress.net/news/economy/world-bank-expects-vietnamgdp-to-grow-at-7-5-4497347.html Diep Son (2022, 14) Supply autonomy helps Nova Consumer reduce input costs for agricultural production Tien Phong Retrieved from https://tienphong.vn/tu-chunguon-cung-giup-nova-consumer-giam-chi-phi-dau-vao-cho-san-xuat-nong-nghieppost1445946.tpo Ha Thanh (2021, 16) Vietnam ranks first in Southeast Asia in terms of online shoppers Kinh Te Do Thi Retrieved from https://kinhtedothi.vn/viet-nam-dung-dau-dong-nama-ve-luong-nguoi-mua-sam-truc-tuyen.html Hong Anh (2022, 15) Nova Consumer - How is the first 'Startup' of billionaire Bui Thanh Nhon preparing for an IPO? Vietnam Business Insider Retrieved from https://vietnambusinessinsider.vn/nova-consumer-startup-dau-tien-cua-ty-phu-buithanh-nhon-chuan-bi-ipo-dang-kinh-doanh-ra-sao-a25044.html Huyen Trang (2022, 02) Enterprise has just successfully produced ASF vaccine: Profit of nearly a hundred billion per year, capitalized by Nova Consumer, shares rebounded 60% in half a month Nhip Song Kinh Te Retrieved from 64 http://nhipsongkinhte.toquoc.vn/doanh-nghiep-vua-san-xuat-thanh-cong-vac-xindich-ta-lon-chau-phi-loi-nhuan-gan-tram-ty-moi-nam-co-von-cua-nova-consumerco-phieu-bat-tang-60-trong-nua-thang-4202226101037464.htm Iacono, Marissa, (2013) "Farm to Table: A look into who supports it and its significance in America today" Honors Theses and Capstones Retrieved from https://scholars.unh.edu/honors/118 Jason Westland (2020, 19) Strategic Planning Models: An Introduction to Popular Models ProjectManager.com Retrieved from www.projectmanager.com/blog/strategic-planning-models Jay Ogilvy (2015, 8) Scenario Planning and Strategic Forecasting Forbes Retrieved from https://www.forbes.com/sites/stratfor/2015/01/08/scenario-planning-and-strategicforecasting/?sh=56c1def411a3 Kantar (2021), Vietnam Insight E-book, 6th edition Kantan, page 11 Karen Mundy & S Gary Bullen (n.d.) Estimating Market Potential: Is There a Market? Adapted from material by Kent Wolfe, Department of Agricultural and Applied Economics, University of Georgia, Kotler, P dan & Keller, K.L (2016) Marketing Management, 15th ed Pearson Education, Inc., Upper Saddle River, N J Mankiw (2017) Principles of Economic, 8th Edition Cengage Learning page 491 Masan MeatLife (n.d.) MeatDeli Story Retrieved from https://www.masanmeatlife.com.vn/san-pham/cau-chuyen-meatdeli/ Minh, H N., Jimmy, A., Binh, N T (2021) Factors Affecting the Growth of E-Shopping over the COVID-19 Era in Hanoi, Vietnam Sustainability, MDPI, 2021, 13(16), 21p, DOI: 10.3390/su13169205 Minh, N N (2022) Per capita pork consumption in Vietnam 2016-2029, Statista Retrieved from https://www.statista.com/statistics/758885/vietnam-pork- consumption-per-capita/ Minh, S., & Tien, T (2022, 24), Key sectors drive H1 GDP growth VnExpress Retrieved from https://e.vnexpress.net/infographics/economy/key-sectors-drive-h1gdp-growth-4491332.html 65 Ministry of Agriculture and Rural Development (2021) Annual Report for the year 2021 Retrieved from https://www.mard.gov.vn/Pages/bao-cao-thong-ke.aspx# Ministry of Health's Portal (2021, 12 25) Vietnam received 181.5 million doses of the COVID19 vaccine; Nearly 98% of the population over 18 years old gets the 1st injection Retrieved from https://moh.gov.vn/tin-tong-hop/- /asset_publisher/k206Q9qkZOqn/content/chieu-25-12-viet-nam-a-tiep-nhan-181-5trieu-lieu-vaccine-phong-covid-19-gan-98-dan-so-tren-18-tuoi-tiem-mui-1 Ministry of Planning and Investment (2020, 10 6) Expectations for outstanding growth in the period of 2021-2025 Retrieved from https://fia.mpi.gov.vn/Detail/CatID/a2feab58437c-49a1-9449-9f69c5fe128d/NewsID/c25d5564-f5cc-4718-b00d-e083ecd0d47e Moc, A (2022c, 20) Why did Nova Consumer spend nearly VND 500 billion to buy a mysterious food company that accounts for 15% of the Vietnamese sausage market? CafeBiz Retrieved from https://cafebiz.vn/vi-sao-nova-consumer-chiu-chi-gan-500ty-dong-mua-lai-1-cong-ty-thuc-pham-bi-an-de-quyet-dau-voi-vissan-va-masantren-thi-truong-xuc-xich-20220419171201722.chn Ngoc, D (2022, 15) Adding NovaGroup, the race to expand food chain stores is getting fiercer CafeF Retrieved from https://cafef.vn/them-novagroup-cuoc-dua-mo-rongcac-chuoi-cua-hang-thuc-pham-ngay-cang-khoc-liet-20220615152807657.chn Nova Consumer Group (2021) Introduction Retrieved from https://novaconsumer.com.vn/gioi-thieu Nguyen, C (2022, 6) What does Nova Consumer have for the consumer goods industry? Dien Dan Doanh Nghiep Retrieved from https://diendandoanhnghiep.vn/novaconsumer-co-gi-cho-cuoc-chien-nganh-hang-tieu-dung-224507.html Nguyen, D (2022, 3) De Heus continuously expands investment in Vietnam's strategic market Bao Dau Tu Retrieved from https://baodautu.vn/de-heus-lien-tuc-mo-rongdau-tu-tai-thi-truong-chien-luoc-viet-nam-d167137.html Song, H (2022, 7) Goods basket and rising inflation cause difficulties for the economy VNEconomy Retrieved from https://vneconomy.vn/gio-hang-hoa-va-lam-phat-tanggay-kho-khan-cho-nen-kinh-te.htm 66 SSI Securities Corporation (2021) Notice Of Initial Offering Of Shares To The Public Of Nova Consumer Group Corporation Retrieved from https://www.ssi.com.vn/khach-hangca-nhan/co-phieu-nova-consumer SSI Securities Corporation (2021) The Prospectus of Nova Consumer page 7, 55 Thanh, M H., Shamim Shakura, Kim Hang Pham Doa (2019) Consumer concern about food safety in Hanoi, Vietnam, Food Control 98, 238-244 Thu, N (2022, 25).ă Vietnam’să Fuelă Priceă Hikesă Affectingă Businesses,ă Governmentă Considers Tax Cuts Vietnam Briefing Retrieved from https://www.vietnambriefing.com/news/vietnams-fuel-price-hikes-affecting-businesses-governmentconsiders-tax-cuts.html/ Tomoya, O (2021, 29) Vietnam's GDP shrinks 6.17% in Q3, hurt by pandemic lockdowns Nikkei Asia Retrieved from https://asia.nikkei.com/Economy/Vietnam-sGDP-shrinks-6.17-in-Q3-hurt-by-pandemic-lockdowns Tomoya, O (2021, 12 29) Vietnam's real GDP growth slows to 2.58% in 2021 as the pandemic drags Nikkei Asia Retrieved from https://asia.nikkei.com/Economy/Vietnam-real-GDP-growth-slows-to-2.58-in-2021as-pandemic-drags Tran, D (2022, 1) Successful IPO, Nova Consumer aims at a billion USD market capitalization Tuoi Tre Online Retrieved from https://tuoitre.vn/ipo-thanh-congnova-consumer-huong-den-muc-tieu-von-hoa-ti-usd-20220601002509144.htm Van, A (2021, 9) IMF:ăVietnam’săinflationăină2021ă mayăremainăată4ăpercent.ă Vietnam Investment Review Retrieved from https://vir.com.vn/imf-vietnams-inflation-in2021-may-remain-at-4-per-cent-82995.html Viet Nam News (2021) WB lowers the forecast for Vietnam’s 2021 GDP growth to 2-2.5% Retrieved from https://vietnamnews.vn/economy/1059130/wb-lowers-forecast-forviet-nams-2021-gdp-growth-to-2-25.html Viet Nam News (2021) The FMCG market is forecast to grow by 6.4 percent in urban areas in 2021 Retrieved from http://bizhub.vn/news/fmcg-market-forecast-to-grow-by-64per-cent-in-urban-areas-in-2021_323025.html 67 Vietnamwork (2021) “Covid-19 And The Labor Market in 2021: Situations and Solutions”,ă page 28 Retrieved from https://www.navigosgroup.com/covid-19-labor-market2021-situations-solutions/ VNR (2022), Top 500 Company VNR500 Retrieved from https://vnr500.com.vn/Charts/Index?chartId=1 Vu, L., & Glewwe, P (2011) Impacts of Rising Food Prices on Poverty and Welfare in Vietnam Journal of Agricultural and Resource Economics, 36(1), 14–27 http://www.jstor.org/stable/23243131 68 APPENDIX A Nova Consumer Group’s Audited Financial Statement of 2021 69 70 71 72 73 B The competitive landscape of Nova Consumer Nova Consumer Farm-Feed-Food X Masan Meatlife Dabaco X CP Group X X Model Control technology on X the vaccine and veterinary medicine production Control factory to X X X produce processed food X X E-marketing X X Overview Supported by the ecosystem in the value chain 2 74 C Vietnam’s GDP and CPI in H1/2022 (Minh Son & Tien Thanh (2022) 75 D Pork consumption per capita in Vietnam from 2019 to 2021 with forecasts until 2029 (Minh Ngoc, 2022) 76 E Core inflation of Vietnam from 2010 to 2021 with forecasts until 2023 (Dat Nguyen, 2022) 77 PROFILE Full name: DOAN HAI DANG Date of birth: 13 September 1992 Place of birth: Vietnam Address: Apartment M2.20.20, Eco Green Saigon, Block E, 107 Nguyen Van Linh Street, Binh Thuan Ward, District 7, Ho Chi Minh City TRAINING PROCESS (Starting from university to now) University of Law (2010-2014), Bachelor of Law Vietnam’săJudicialăAcademy (2017-2019), Lawyer Practicing License Ho Chi Minh City University of Technology (2020-2022), Master of Business Administration WORKING PROCESS (Starting from work to now) Vietnam International Arbitration Center (2014-2016), Legal Assistant Novaland Group, (2016-2019), Legal Supervisor Central Retail Group, (2019-2020), Legal Manager Nova Group, (2020-Current), Senior Legal Manager ... contents of the thesis This thesis presents the business plan for food products of Nova Consumer Group in the period of 2022 to 2025 in Vietnam This thesis consists of chapters: (i) In Chapter I - Introduction,ăweăintroduce? ?the? ?background? ?of? ?Nova? ?Consumer? ??să... Preparing the Business Plan including the resources, competitive advantage, SWOT analysis, production, marketing, HR, and financial plan for Food Products of Nova Consumer Group in The Period 2022- 2025. .. Make the business context diagnosis and build the appropriate business plan for the food products of Nova Consumer Group, especially the 3F models and the cooperation with other members of Novagroup