(TIỂU LUẬN) GROUPPROJECTTopicJAMBAJUICEFRANCHISEBUSINESSPLAN

VIETNAMNATIONALUNIVERSITYINTERNATIONALUNIVERSITY SCHOOLOFBUSINESS    Course:Franchising Instructor:Dr.HoNhutQuang  GROUPPROJECT Topic:JAMBAJUICEFRANCHISEBUSINESSPLAN  MEMBERS: 1.VUTUYETNGAN 2.NGUYENTHIKIMOANH 3.NGUYENDUYKIMTHU 4.NGUYENTIENDAT 5.NGOHOANGCHIEN 6.NGUYENQUOCCUONG 7.NGUYENDUYLONG   INTRODUCTION ImportanceroleofFoodandBeverageIndustryinVietnam Thefoodandbeverageindustry,isaverylargeone,andwasexpectedtovalueatUS$33.7 billionin2012,withpredictedgrowthat18.9percenttillyear2014.Itisgrowingfastat almost21percentin2013,producingfoodatagrowthof20percentandbeverageproduction atalmost27percent.Intermsofvolumegrowthforproducingpackagedfoodandsoftdrinks, Vietnamwasthebestperformingcountryfrom2007to2012.Productssuchaschilled, frozen,driedandprocessedfood,aswellasicecream,readymeals,babyfoodandnoodles, haveexperiencedgrowthinproduction.  2.TrendofFoodanfBeverageIndustryinVietnam ConsumerspendingonFood&Beverageisgrowing.Thefoodserviceindustryisexpectedto growatacompoundannualgrowthrateofsixpercentbetween2013and2018.Percapita expenditureonfoodandnonalcoholicbeveragesisexpectedtogrowatsevenpercentper annumfrom2012to2016,reachingUS$276by2016.AssociatedwiththisgrowthinFood &Beverageisthegrowthofmodernretailformatssuchassupermarketswhichpresent opportunitiesforgreaterexposuretoimportedproductsnotgenerallystockedbytraditional stores.Vietnam,ontheotherhand,hasacriticalfocalareaforitsfoodandbeverageindustry, astheVietnameselivingstandardshasalreadystartedtorise.Thecountry’seconomieshave developedintooneofAsia’sdynamicandgrowingmarketforagriculturefood.Themarket hasapotentialgrowth,asthespendingonpackagedfoodandbeveragesinVietnamisstill consideredlow.Vietnam’sWTOmembershiphaspromotedareductioninitstradeand investmentbarriersincludingtariffs,subsidies,nontariffbarriers,investmentrestrictionsand intellectualpropertyrights(IPR).Risingdisposableincomelevelsandchanginglifestyles, particularlyinurbanareas,areincreasingconsumerdemandforsnacks,convenienceand luxuryFood&Beverageitems.Theannualgrowthoffoodsalesisanticipatedtobe9.4per centforthe2012to2017period.Theagriculturalsectorrequiressignificantinvestment; foreigninvestorscanexpectassistedentry.Thegrowingtourismsectorisafactorfuelling interestinconveniencecategories,inadditiontosubsectorssuchassoftdrinksandalcoholic drinks.HealthconsciousnesstrendsprovideanopportunityforFood&Beverage manufacturerstodiversifyintofoodoptionsperceivedtobehealthier.   3.Juicetrend: In2014,juiceregisteredofftradevolumeandvaluegrowthof12%and20%respectively. Althoughtheserateswerelowerthanthoserecordedin2013,theywerestillhigh,indicating strongandstabledemandforjuice.Improvinglivingstandardsandgreaterconsumerinterest inhealthandwellnessarethemainfactorscontributingtorobustgrowthofjuicedrinks.In addition,people,especiallythosewholiveinurbanareas,arebecomingincreasinglybusy andreluctanttosqueezejuiceforthemselvesandtheirfamily.Instead,theypurchase packagedjuicedrinksmadebyprestigiousmanufacturersforconvenienceandhygiene. AsVietnamisatropicalcountrywiththeclimateisalmosthotduringtheyearthatthe consumeofbeverageisextremelyhighespeciallyforthejuice.EspeciallyinHoChiMinh City,peoplenowaremoretendingtoreachthosekindsofproductthatnotonlymeettheir needbutbeahealthyproductaswell.Theteenagers,theofficeworkersarenowchoosing juice,smoothiesastheirfavoritedrinksinsteadofcoffee.Theparents,theelderlyalsoin favorofjuicesinceit’sgoodforthehealth.Juiceisbecomeanindispensabledailydrinkof theHoChiMinhpeoplewiththedemandforjuice,smoothiesorfruit/vegetableproducts increasingsteadily.     PART1:EXECUTIVESUMMARY JambaJuice: Thepurposeofourbusinessistoprovidethecustomerwiththetrulygoodqualityand healthyproductsuchasJuiceandsmoothies,tohelpthecustomerstoawaremoreoftheir healthwiththeirdailyfoodanddrinks. Atfirst,weopenthefirstJambaJuiceonTranNaostreet,District2wheretherearealotof segmentationsandpotentialcustomers.PublishingtheimageofJambaJuicetothecustomers bygivingthemtherealmeaningofagoodandhealthydrinkthenachievethetrustfrom customers.Inaddition,wedevelopthelongtermstrategyforJambaJuicetogofurtherinthis businessline.  2.Product:  FreshlySqueezedJuicesand Smoothies FreshlySqueezedJuicesand  ThatthehighqualityandhealthyoftheproductbringstoJambaJuicetheveryunique ThatthehighqualityandhealthyoftheproductbringstoJambaJuicetheveryunique characteristic. AnothergoodpointofJambaistheexpertiseofJambateammemberswithdeeplevelof AnothergoodpointofJambaistheexpertiseofJambateammemberswithdeeplevelof nutritionandwellnessknowledge.MasterBlendersareourinternaljuiceandsmoothiegurus readytoserveyouevenbetter readytoserveyouevenbetter.  3.Themarket: HoChiMinhCityisagreatpotentialmarketfortheJuiceindustrywiththeincreasinglyhigh demandofdrinkswithfresh,nutritious,andhealthy.WhilethedemandofJuicekeep increasingbutthesuppliesoftheJuicehasn’tmettherequirementsofthecustomeryet. CustomersreachJuicesincetheywantarealfreshandhealthydrink.AndJambacandoit. ThecustomersoftheJuiceindustryinVietnamarediversewiththelargenumberof ThecustomersoftheJuiceindustryinVietnamarediversewiththelargenumberof customersandtherearemanycustomersegmentations.Especiallyforthesegmentationof customerwiththeageisunder25whichisabigsegmentationwiththeconsumptionofJuice customerwiththeageisunder25whichisabigsegmentationwiththeconsumptionofJuice ishugeandincreasesteadily.Theelderly–apotentialsegmentationoftheJuiceindustryis strongalso.ThelivingstandardoftheHoChiMinhCityisincreasingandtheyaremore strongalso.ThelivingstandardoftheHoChiMinhCityisincreasingandtheyaremore concerningabouttheirhealthythattheywouldliketochoosethosekindofdrinksandthe numberofconsumptionofthispotentialsegmentationisstrongtoo.Asmentionedabove, peoplearebecomingawaremoreoftheirhealththatcoffeeandtheothernormalfavorite drinksdoesn’tmeettheneedofthepeoplenowadays drinksdoesn’tmeettheneedofthepeoplenowadays.  Thesizeofthismarketisgrowing.Peoplearemorewillingtopayforthesehighquality products.Abovethat,thelivingstandardandtheaverageincomeishigherthanbefore. WiththepurposetoprovidethehighqualityJuicedrinkstothecustomers,thelocationis locatedonTranNaoStreetinDistrict2withthehighnumberofpotentialcustomers.These areparentswithyoungkids,theelderly,andthefamilieswithhighincomethattheywill reachsuchhighnutritiousandhealthyproductasJuice.Thisgeographicallocationalsohas importanteffectonthelongtermstrategy. ThecompetitorsofJambawillbeinthesamebusinessline–Starbuck,Coffeehouse,Trung Nguyencoffee,HighlandscoffeeandtheotherscoffeestorearethecompetitorswithJamba evenwhentheirmainproductsiscoffeewhichisthefavoritedailydrinkofVietnamese people.Besides,thesestoreshavethesimilarproductsasJamba.Butthetrendischanging, peoplearereachingtheproductswithhigherqualityandgoodfortheirhealthandJuiceisone ofthetopchoices.Jambagettheexpertiseinthisfieldwiththehighknowledgeaboutthe nutritiousandhealthyproductsandtheproductsofJambaisalsoexaminedbythespecialists andthiswillgainthecompetitiveadvantagefromtheothercompetitors.  4.Themarketingplan: Ourmarketingplanisheadingtotheawarenessofthecustomerabouttheirhealthby providingtrulygoodhealthyandqualitydrinks.Therefore,theimageofJambatothe customerswillbedevelopedbasingonthequalitythatJambabrings.  WewilluseIntegratedMarketingsCommunicationinourmarketingplan.Inthefirststage beforOpening,wWewouldliketopushthemarketingonnewspaperthataimtoourtarget marketsuchasGiađình&Tiếpthị,Phụnữ, Wealsowanttouseotheronlinemediasuch asonlinenewspaperandultilizepowerofsocialnetworkwhichhavethousandsofnetworkto spreadtheinformationthatwearecomingtoVietnam.AtthesecondstageOpening,we alsoultilizethesechannelstoinformthatweareherealready.Wealsoorganizepressrelease toinformthis.Furthermore,wewillusethehelpfrominfluencerssuchasChiPu,ThúyHạnh whoareveryfamous,young,beautifultobuildcreditonourcustomersaboutourproducts whicharehighquality,natural,healthyandbeautymakingproducts.Inaddtion,some couponsonfrandopeningarecriticalaswell.Finally,afteropening,wewillcontinuetouse couponstoattractpeopletocometoourstoreandenjoy.Specially,wewillsponsorforsome attractiveprogramsontelevisionsuchassitcomsorColormeruntospreadourbrands.       PART2:SITUATIONANALYSIS A MacroEnvironment: Franchising started in Vietnam in1990s withsomewellknownforeignfastfoodbrands (like KFC, Listeria, Jollibee, etc.), so it is stillin its early stagein Vietnam. Upto 2014, therewere about 100 foreign franchisors registered in Vietnam. Most of them come from the US and  Singapore. The dominant business fields are retailing, education, and food and beverage (F&B)(Tilleke&Gibbins,InternationalFranchising–Vietnam,28Jan2014)   Now, we will go through the differences in some factors which may affect the success in doingthefranchisebusinessofJambaJuice  1.DemographicchangesthatmayaffectthefoodandbeverageconsumptioninVN: In term of age structure, there are about 17.8 per cent ofVietnam’spopulationwerefrom15 to 24 years old  (Index Mundi, Age  structure,  23  Aug 2014)  Based  on  the graph  shown below, we can realize that there was a huge number of Vietnamese are in theagefrom18to  29 and from 30 to 60. In the first group, they are teenagers and young people, so they are change oriented and adaptive. In the second group, most of them are officer and those who arehelthconcern.Therefore,inbothgroups,theyarewillingtoenjoyanewjuicebrand.  In term of middle class segmentation, the Vietnam News shows that there were about 12  million people considered in this group and this figure is expected to increaseto 33 millionin 2020(VietnamNews,Vietnam‘smiddleclasssettodouble,27Dec2013).  2.Economicchangesthatmayaffectfoodandbeverageconsumption: The economic growth rate in Vietnam is expected to remain around 5.8 per cent to 2016 (World Bank, Global Economic Prospects, East Asia and the Pacific,  Jun 2014). In  2014,  GDP per capita in Vietnam had growth to about USD  2,050 (World Bank, GDP per capita, 2015). More particularly, this figure in HCM city which is our initial franchise location  is about USD 4,513 in 2013(Vietnam Plus, 12 Dec 2014). This means that the adjusted price (from 60 000 VND to 100 000 VND) is affordable forthe middleandhighclass customerin HCMcity.  3.Socialculturalchangesthatmayaffectfoodandbeverageconsumption: The Vietnamese are very sensitive with the price. Thus, when charging high pricecompared to other brand names in Vietnam Food & Beverage market, the quality of  products  and  service would be good as well so that customer would not leave our brand after the firsttime enjoying our product. Besides, with an increase in incomes as well as demand for Western  products,JambaJuicewillbebeneficial. Moreover, in Vietname, people will respond to incentives with a very high level. Thus, attractivepromotionstrategieswillhelpJambaJuicehasmorecustomers.  4.Technologicalchangesthatmayaffectfoodandbeverageconsumption: The fact that the import tax of techlonogies and machines which are used in Food & Beverage service is quite high. Therefore, some of frachisee will negotiate tothefranchisor so that they can use other machines which are bought by itself. However, other machines sometimes do not work well as the franchisor’s machines. For example, the products with  new machine is not as fresh as the products of franchisor. The change in the quality of productwouldleadtoadecreaseinconsumption.    5.ChangesinLawandRegulationsthatmayaffectfoodandbeverageconsumption.  When doing franchise, we will face to 2 circumstances. The first circumstance is that the franchisees will buy material themselves. Another circumstance is that franchisees will import raw materials or goods from franchisor. Because most of the franchisors want to maintain their product over countries and they want to have more profits in selling raw materials as well, they will deicide to sell raw materials to franchisees  However, when selling material to franchisees, the parties may have to consider the legal restriction that are imposed on import of such goods. The tariff rate in Vietnam now (after WTO accession) is still a litlle bit high. This will make the franchisee has to set a high adjusted price when negotiating with the franchisor. Based on the law of demand,ahigh price will leadtothelow quantity of product sold. Besides, the quota of some imported goods is eliminated recent years.  B.MicroEnvironment Consumeranalysis:  Potential customerofJAMBA Juice arethose who has middle and high income. Theycanbe teenagers who are usually impacted by the trend; they can behigheducatedofficerswhoare willing to pay for services they gain when they buy product; they can be  those who has a healthconcern.   2.Competitoranalysis: Because in Vietnam, there is no significant famous juicebrandnamestore,JAMBAjuicecan gainthefirstmoveadvantagesinthetendencyofhealthconcern. However, we should consider the subtitute products of juice which are tea, milk tea and coffee. JAMBA Juice will compete to many famous brand names  in the  world or brand  names hold large market share in Vietnam. They are Starbuck, The Coffee House, Coffee Bean and Tea Leaf, Phuc Long, Highland Coffee, Trung Nguyen Coffee, Gloria Jeans Coffee, Urban Station and so on. Starbuck is our main competitor in term of market segmentation because it focus on targeting the high class customer who are willing to pay a lots on service and brandname ( average price is about 80 000 or90000VND).Thepriceof products of other brand names like The Coffee House, Coffee Bean and Tea Leaf, Gloria Jeans, and Trung Nguyen Coffee are more affordable than JAMBA Juice ( average price is about 60 000). Moreover, their stores are very peaceful as Starbuck which are suitable for officers, business man or those who would like to have a quiet area. The rests are Urban Station, Phuc Long, and Highland. Products of these store are cheap (average price is about 30 000 or 40 000). However, the atmosphere at these store is quite noisy, especiallyinPhuc Long,whichisjustsuitableforteenagers. In Food & Bevergae service industry in Vietnam, particularly in HCM city now, PhucLong and Highland have high market share because of its taste and very affordable price. But in  term of high class, Starbuck still a giant in this industry because of its fame in the world  Trung Nguyen coffee is a local famous brand name which appears a very long time in Vietnam.   D.PromotionorIMCPrograms: 1.1ststage:Beforeopening(within1month) A  dvertising: KindofAds Adsmessage Media Channel Frequency/ Location Duration PrintedAds Informative Press: +PhụNữ +GiaĐìnhvà TiếpThị +Phụnữngày nay +Phụnữthời đại 1foreachtime 1month onepress released OnlineAds Informative Website (banner): +kenh14 +tuoitreonline +vnexpress +eva.vn +Zing.vn +Báođiệntử DânTrí +Báođiệntử Vietnamnet Forum (banner) +webtretho 1foreachday 1month Banner(on street)   20 2months   2.2ndstage:Opening(next3months) Advertising: KindofAds Adsmessage Media Channel/ Location Frequency/ Amount Duration TVC Informative CableTV: +YanTV 10timesper dayforeach channel 3months Banner(on street)   20 3months PrintedAds Informative Press: +PhụNữ +GiaĐìnhvà TiếpThị +Phụnữngày nay +Phụnữthời đại 1foreachtime 3months onepress released OnlineAds Informative Website (banner): +kenh14 +tuoitreonline +vnexpress +eva.vn +Zing.vn +Báođiệntử DânTrí +Báođiệntử Vietnamnet Forum (banner) +webtretho 1foreachday 3months  PRactivities:   Pressrelease   TVTalkshow:Sứcsốngmới  YanAroundMộtvòngtrảinghiệm PROnline SocialNetwork:Facebook,Instagram Influencers: Chi  Pu, Hari  Won, Thúy Hạnh, Ninh Dương Lan Ngọc, Ngô Thanh Vân, Diệu Nhi,SĩThanh,YayaTrươngNhi,   SalesPromotionprogram: Combo  Discount20%for5firstdaysfromdateofopeningstore   3.3ndstage:AfterOpening Combo   DiscountPolicyforVIPandVVIP   Accumulatedpoint Discountrate VIP 500 10%/orderbill VVIP 1000 20%/orderbill 100points=VND100,000  Coupon: +Customerbirthdaycoupon  +1+1coupon(HappyMonday)   SpecialEvents:     PART7:HUMANRESOURCESPLAN  1.Thebusinesswillwillfollowhierarchystructurefromtheexecutiveleveltothefuntional level. +Executivelevelincludesowner/chiefmanager,marketingmanager,operationmanagerand financeexecutiveofficer. +Funtionallevelconsistsofmarketresearchstaff,qualitycontrolstaff,businesssupervisor andauditor.  2.Wealsohirethefrontlineworkers,staffsandespeciallyparttimeconsultanttojoinhand indealingwithcompany’sissues.         3.Jobdescriptions: ● Owner/Chiefmanager: Developbusinessideas,goals,businessstrategicplans. Organizeandencourageallthestafftocarryoutthestrategicplans. Ensuretheachievementofbusinessobjectives.  ● Consultant: Expertswhocanhelptodoyourbusinessnowandinfuture. Consultantsmaybeaccountants,bankcarders,lawyers,governmentofficials. Giveadvicesandconsultinformationtogenerateideaforthebusiness  ● Marketingmanagerishighlyresponsiblefor: Salespromotion. Advertising. Sales. Superviseresearch. Forecastsalevolume.  ● Marketresearchstaff Workwithmarketsurveyagency,conductnecessarysurvey. Analyzesurveyinformationaboutmarket,demographictrend,customers. Bringwhatonmarketingpaperintoactions. Keeptrackwithadvertingactivities. Cooperatewithbusinesssupervisortokeeptrackwithinternalandexternalproblems. Takeactionsneededtoincreasethecompany’simage.  ● Operationmanager: Improvefacility,construction,management. Productmodifyanddesign. Efficientuseofmachines,spaceandpersonnel. Developmentandinstallationofproducttoolsandequipment.  ● Input–outputqualitycontrol: Productionandinventorycontrol,materialscontrol. Qualityassurance,qualitycontrolofinputmaterialandfinishproduct. Supply–chainmanagement.  ● Businesssupervisor: Makesureallactivitiesworksmoothlyandflawlessly. Resolveallproblemintheworkplace. Dealwithcustomercomplainandfeedback. Workscheduling.  ● Workers: Getthedailybusinessactivitiesdone. Frontlinejobsuchastakeorder,cashier,security,makeproduct,etc… Dividedintoproductionstaffandservicestaff.  ● Financeexecutive: Keepeyesoncreditaccount,accountpayable,accountreceivableanddailyoperatingcost. Generateideasonraisingcapital,investment. Fundsmanagement. Capitalrequirement. Forecastincome,expense.  ● Auditor: Copewithbalancesheet,incomestatement,annualfinancereports. PrepareTaxdocuments,cashflowstatement.   4.Workingbeneftsandrequirements: a.Payrollandrequirements: Position Numberofpeople Salary/month Skillandrequirement Owner/Chief manager 1 Dependablebut fixedat1000 Wellknowntheindustryand companystrategy Leadership,corporate governance. Marketing manager 1 1000 2yearexperienceinselling. KnowledgeaboutVietnamese market. Dynamicandcreativityability. Marketresearch staffs 2 700 Experienceinconductingsurvey Statisticsanalyzeability. Consultant 1 Operation manager 1 1000 Goodatoperationmanagement. 2yearexperience InputOutput qualitycontrol 2 700$ Goodatscheduling. Experienceinquality management. Statisticsanalysis Dependablebut Wellunderstandingthemarket. fixedat700 Morethan5yearexperiencein thefield Business supervisor 1 700 Emotionalintelligence. Humanresourceskills Functional personnel 4servicestaff 6productionstaff Financeexecutive 1 1000 Skillincorporatefinance. Highmorality. 2yearexperienceinfield Finance document preparer 1 700 Acquaintedwithfinancepapers. Dilligence,honesty Experienceisadvantage $2400permonth Goodattitude. ($4per Abilitytoworkwithcustomer. Learningability. 8hourshift,2 shiftspermonth)   b.Workingbenefits: “Flexibleworkhour”,“Compressedworkweek”isavailableforallstaffexceptfor functionalpersonnel. Eachworkerinfunctionalpersonnelcanchoose“jobsharing”,“jobrotation”programs. “Meritpay”forexceptionalbehavioratworkplace. Semiannualhealthcareprogram,annualvacationformanagerandexecutives.     PART8:FINANCIALPROJECTION Attachedexelfile  PART9:PROJECTIMPLEMENTATIONANDCONTROL ProjectImplementationandControl Description 1.Ongoingactivities Timeschedule  2015  1.1Fieldmonitoringtrips, reporting,andplanning/progress review 1.2Discussion andsigningwiththefranchise company 1.3Staffcapacitybuilding Miles tone 16%  Meansof Verification  2016     46.67 2016 %     2015       2015      0% Initiation 0% Initiation 0% Initiation 0% Initiation 0%  0% Planning 2016     2015    Initiation 2016    1.4Financialaudits,bothforthe projectandpartners’books 1.5Monitoringfinancial performance,burnrate,etc. 2.Projectstartupactivities:  2015     2016     2015     2016     2015   2016   2.1Settingupfranchises(products,  services) 2015         2016   andDesign 2.2Staffrecruitment,job descriptions,induction,staff deployment,buildingcapacity 2.3Creatingmarketingactivities  0% 2015   2016   andDesign  0%  2016      2016   Planning andDesign 0% 2015           2015    2.4Maintaininghumanresources capacity  Planning Execution REFERENCE http://blog.socialwalk.com/researcharticleanalysisoffoodbeveragemanufacturinginthail andcomparedtovietnam/  http://www.austrade.gov.au/Australian/Export/Exportmarkets/Countries/Vietnam/Industries/ foodandbeverage  http://www.euromonitor.com/juiceinvietnam/report  http://www.marketingvietnam.net/  http://www.quangcaongoaitroi.org/gocmarketting/chiphiquangcaongoaitroi.html    APPENDIX CostforAds 1ststage:Beforeopening ndofAds smessage MediaChannel equency uration agePrice lcost ($) intedAds ormative Press: reachtime 5days +PhụNữ adspage 00 0/post 000 0/day 000 ressreleased iaĐìnhvàTiếpThị oneofthose Phụnữngàynay press +Phụnữthờiđại nlineAds ormative Website: st/daywith month +kenh14 eofthose +Tuoitreonline website +vnexpress +Zing.vn +Vietnamnet +Webtretho illboard vertising  crowdedstreet:Dien nner/street months hu,PhamVanDong, pliedin3 … streets      2ndstage:Opening  KindofAds Adsmessage Frequency/ Duration eragePriceTotalcost ($) Amount MediaChannel/ Location TVC Informative 3timesper 15days 2500/time +CableTV: +YanTV 112,500 yforoneof 2channel. Change hanneleach month. Billboard  advertising Oncrowdedstreet: 2banner/ ienBienPhu,Pham VanDong,… months 200/day 108,000 street Appliedin3 streets PrintedAds Informative Press: +PhụNữ foreachtime months 0/adspage 37,800 onepress GiaĐìnhvàTiếpThị leasedwith +Phụnữngàynay neofthose +Phụnữthờiđại press. hangepress ach7days OnlineAds Informative Website: 1post/day +kenh14 withoneof +tuoitreonline osewebsite. +vnexpress Change +Zing.vn áođiệntửVietnamnet +webtretho  bsiteeach7 days months 500/post 45,000  