(TIỂU LUẬN) INVESTMENT ECONOMICS PROJECT diet food for people who do workouts

FOREIGN TRADE UNIVERSITY THE FACULTY OF INTERNATIONAL ECONOMICS 🙟🙟🙟🙟🙟 INVESTMENT ECONOMICS PROJECT Diet food for people who workouts Instructor : PhD Dinh Hoang Minh Class : KTEE311(1-1920).1 Group Number : Hanoi, September 2019 TEAM MEMBER No 10 11 12 13 14 15 16 17 Name Nguyen Phuong Thanh Lai Hien Luong La Thi Phuong Uyen Nguyen Minh Ha Lo Nguyen Phuong Linh Nguyen Hong Hanh Nguyen Thi Thuy Tien Nguyen Phuong Mai Hoang Minh Quyen Luu Thi Hien Nguyen Phuong Thao Phan Quang Hung Nguyen Manh Hung Tran Hoang Lam Nguyen Luu Ly Nguyen Huu Hoang Hoang Nhat Chi Student ID 1714450028 1714450040 1714450033 1714450042 1714450015 1714450044 1714450039 1714450020 1714450023 1714450041 1714450029 1614450025 1614450024 1614450027 1614450032 1614450023 1614450012 TABLES OF CONTENTS PART I INTRODUCTION I.1 About Us - Optimum Nutrition I.2 About TH Milk JSC I.3 About products to invest PART II MARKET ANALYSIS II.1 Overview of host country 1.1 Economy growth and prospects 1.2 Population 10 1.3 Political Stability II.2 SWOT Analysis of our company Optimum Nutrition 11 II.3 Customer demand analysis 13 2.1 Overall and customer demographics 13 2.2 Health consciousness and dietary choice 14 II.4 Competitors 16 3.1 Current products 16 3.2 Current suppliers 19 3.3 Incompetence of competitors 22 PART III PRODUCT “DIET FOOD AND BEVERAGE” 24 III.1 Business Model Canvas 24 1.1 Customer Segment 24 1.2 Value Propositions 24 1.3 Channels 24 1.4 Customer Relationship 24 1.5 Revenue Stream 24 1.6 Key Activities 24 1.7 Key Resources 24 1.8 Key Partners 25 1.9 Cost Structure 25 III.2 Demographic 26 III.3 PRODUCT DETAILS 27 3.1 Functions 27 3.2 Packaging/ Appearance 27 3.3 Added value 29 3.4 Price 29 PART IV FINANCIALS 31 IV.1 Strategy of setting price 31 Gullon Maria Diet Cookie 31 IV.2 Customer projection 32 2.1 Targeted Customer Estimation 32 2.2 Estimated Consumption of products 33 2.3 Estimated revenue in years 34 2.4 Estimated investment cost 36 IV.3 Cash flow and investment efficiency 3.1 Cash Flow 3.2 Net Present Value (NPV) 3.3 Internal rate of Return (IRR) 3.4 Profitability of Investment (PI) 3.5 Discounted Payback period (DPP) PART V SOCIAL BENEFITS V.1 Physical Health Benefits V.2 Mental Health and Social Health V.3 Environmental Benefits V.4 Employment benefits 4.1 In the short term 4.2 In the long term PART VI References PART I INTRODUCTION I.1 About Us - Optimum Nutrition OPTIMUM NUTRITION was established in 1986 to satisfy consumer demand for consistent quality in sports nutrition Our company is also known for anticipating ever-changing customer needs and meeting the demands of a dynamic market with innovative products Vietnamese Distributors: - Starlite International Group (SIG) TRUONG THINH TRADING DEVELOPMENT JOINT STOCK COMPANY - Khong the Tin Noi LLC BOCCI Vietnam I.2 About TH Milk JSC Company name: TH Milk Joint Stock Company Address: No 166 Nguyen Thai Hoc Street, Quang Trung District, Vinh Hanoi City Branch: Floor 2, Dao Duy Anh Building, No Dao Duy Anh Street, Dong Da District, Hanoi Ho Chi Minh City Branch: Floor 5, Central Plaza Building, No 17 Le Duan Street, Ben Nghe District, Plant 1, HCMC TH Milk is the first company in Vietnam to receive clean milk certification In Vietnam, the company has Asia's leading-scale concentrated dairy farming system and is developing dairy farms in Northern border provinces (Ha Giang, Tuyen Quang, Lang Son, Thanh Hoa, …) core principles of TH Milk JSC: For true Happiness For community health 100% natural Environment-friendly Outstanding thinking and harmonious benefits Successful projects by TH Milk JSC: Clean TH Milk Road Herbal Road Healthy Beverage for Health Road Vegetables and Food for Health TH School Project TH Health Care Project I.3 About products to invest Diet Cookies, High-protein Milk, Greek Yogurt for people who workouts: Diet Cookies Dietary biscuits act as a fast food before and after workouts to restore muscle and provide nutrients to the body, burning fat Protein and fiber-fortified bread thanks to its nutritious nuts High-protein Milk High-Protein milk is an ideal food for the muscles of the exercise people who need a large amount of protein Milk is easier to drink and use than supplement foods like whey powder or meats Greek Yogurt Greek yogurt is rich in protein and vitamins, sugar-free but still has a delicious taste It is especially recommended for exercise people rather than normal yogurts PART II II.1 1.1 MARKET ANALYSIS Overview of host country Economy growth and prospects A mere 30 years ago, Vietnam remained one of the poorest countries in the world represented by the poverty rate of nearly 60% and a poorly – functioning centrally planned economy Thanks to the shift toward a market economy steered by “Doi Moi”, a series of political and economic reforms, today Vietnam’s dynamic transformation become a phenomenal highlight among the emerging markets and continues to show exceptional growth rate in many years to come Vietnam’s economy continues to show rocketing pickup in economic activity, backed by a cyclical rise in worldwide demand as well as a recovery in FDI and private sector investment and a continuous change from traditional agriculture to more productive and profitable manufacturing and service industries, demonstrating its attractiveness for future foreign investment Vietnam’s growth is projected to grow to 6.8% in 2019 with GDP per capita is expected to rise by 5.8% According to analysts from the World Bank and the think tank Brookings, Viet Nam’s economic rocket can be explained by three main factors: “First, it has embraced trade liberalization with gusto Second, it has complemented external liberalization with domestic reforms through deregulation and lowering the cost of doing business Finally, Viet Nam has invested heavily in human and physical capital, predominantly through public investments.” In the trend of globalization, Vietnam is in a strong position to benefit from economic integration and participation in international trade organizations accompanied by favorable trade agreements that are coming into force such as FTAs by ASEAN (1995), WTO (2007), CPTPP (2019) and various bilateral agreements with the U.S., Japan, South Korea, the EU (EVFTA), etc These trade agreements dramatically reduced tariffs and opened much of the economy to foreign investment Vietnam has been gradually progressing in enhancing its investment climate as shown by greater results in the World Economic Forum’s competitiveness index (up five places to 55 th in the world), and the 2018 World Bank’s ease of doing business ranking (69 th around the globe, up 31 points since 2014) More than 10,000 foreign companies – including major global players – operate in Vietnam these days, chiefly in export – oriented, labor – intensive manufacturing, indebted to government’s initiatives aiming to ease administrative bureaucracy, reduce corporate income tax and adopt a more pro – investor approach 10 Position Number of Wage per Wage per employees month year 40,000,000 480,000,000 480,000,000 30,000,000 360,000,000 1,800,000,000 15 15,000,000 180,000,000 2,700,000,000 Worker 5,000 7,000,000 84,000,000 420,000,000,000 Shipping staff 2,000 5,000,000 60,000,000 120,000,000,000 Sale 1,000 4,500,000 54,000,000 54,000,000,000 General Total wage Manager Department Manager Warehouse manager 598,500,000,000 Total Estimated Wage in following years ( \Unit: VND) Year Total 598,500,000,000 658,350,000,000 724,185,000,000 796,603,500,000 876,263,850,00 cost 4.f Cost of selling Cost of selling is the cost which facilitates the selling progress and makes it easier for product to be distributed to customers In the first year, the selling cost is estimated as below (Unit: VND) 47 Name of expense Amount per month Month Total 50,000,000 12 1,200,000,000 Insurance 200,000,000 12 2,400,000,000 Transporting 100,000,000 12 1,200,000,000 Customer service 100.000,000 12 1,200,000,000 R&D 200,000,000 12 2,400,000,000 Tools Total cost: 8,400,000,000 Due to the economy expand, suppose that the prices goes up in the next years Therefore, the selling cost would be estimated: Year Total 8,400,000,000 8,200,150,000 9,005,370,000 9,603,240,000 10,381,810,000 cost 4.g Total cost Unit: Million VND Cost Year Year Initial cost 8150 Fixed assets 5000 Marketing 38,527 Year Year Year Year 38,527 34,647.3 31,206.87 28,086.183 48 cost Cost of 12,840 14,744 15,618.4 16,680.24 16,948.26 production Wages 598,500 658,350 724,185 796,603.5 876,263.85 Cost of 8,400 8,200.15 9,005.37 9,603.24 10,381.81 500 450 405 364.5 328.05 selling Depreciation Total cost 13,150 658,267 719,821.15 738,456.07 854,093.85 931,680.103 (not include dep) Total cost 13,150 658,767 720271.15 738,861.07 854458.35 932,008.053 (included dep) 4.h Taxes According to Vietnamese law, enterprise taxes is set at 20% Therefore, we have the estimated profit and cash flow table: Unit: (VND) 49 ses ue 826,200,000,000 939,579,570,400 1,049,052,977,130 1,187,003,871,030 8,150,000,000 658,267,000,000 719,821,150,000 738,456,070,000 854,093,850,000 -8,150,000,000 167,933,000,000 219,758,420,400 310,596,907,130 332,910,021,030 uding e tax 33,586,600,000 r tax -8,150,000,000 134,346,400,000 1,348 931,680 416 43,951,684,080 62,119,381,426,000 66,582,004,206,000 83,304 175,806,736,320 248,477,525,704 266,328,016,824 50 333 IV.3 3.1 Year Cash flow and investment efficiency Cash Flow Preparatio n Fixed asset 5,000,000,00 DWC 206,550,000, 000 Execution Revenue 826,200,00 939,579,57 1,049,052,9 1,187,003,8 0,000 0,400 77,130 71,030 1,348,201,135,376 Cost (Depreciati on included) 8,150,000,00 658,767,00 720,271,15 738,861,07 854,458,35 0,000 0,000 0,000 0,000 932 Depreciatio 500,000,00 450,000,00 405,000,00 364,500,00 n Tax 33,786,600, 59,331,800, 91,341,362, 10,878,185, 163,326,083,055 000 520 519 328,050,000 9265 Closeout Liquidation Receiving from DWC 206,550,000,000 51 Tax from liquidation CF 31,146,400, 58,444,899, 117,440,93 117,742,81 164,819,004,166.24 219,700,000, 000.00 360.00 6,272.00 3,002.80 000.00 (Unit: VND) 52 The table above is the estimated cash flow table during the 5-year period To evaluate the investment efficiency, we use the following indicators: NPV, IRR, IR, DPP 3.2 Net Present Value (NPV) ● Definition: Net present value is the difference between the present value of total revenue and that of total investment; or the present value of total cash flow of the project ● Formula: ● Meaning: NPV shows the differences between the real enterprise profit and the minimum profit the investor required The higher NPV is, the more profit firm can gain In project selection: ● NPV > → Accept project ● NPV < → Reject project ● Using the formula, data and the estimated interest is 10%, we have NPV = 138,145,115,561.67 > Conclusion: We accept the project 3.3 Internal rate of Return (IRR) ● Definition: Internal rate of return is the rate of return at which total revenue is equal to total investment ● Formula: 53 ● Meaning: IRR is used to estimate the profitability of potential investments The higher IRR is, the greater you can gain from that project In project selection: ● IRR > r → Accept the project ● IRR < r → Reject the project ● Basing on the cash flow, we have IRR = 15% Conclusion: We accept the project 3.4 Profitability of Investment (PI) ● Definition: Profitability of Investment is the ratio between the present value of total revenue and that of total investment ● Formula: ● Meaning: In project selection: ● PI > 1→ Accept the project ● PI < → Reject the project ● From the data, we calculate PI: PI = 1.628 Conclusion: We accept the project 3.5 Discounted Payback period (DPP) ● Definition: Discounted payback period is the duration that the present value of total revenue is just enough to cover that of total investment ● Formula: 54 ● Meaning: In project selection: ● DPP > target payback→ Accept the project ● DPP < target payback → Reject the project ● From the data, we calculate DPP: DPP = 3.68 year Conclusion: We accept the project ConclusioN Because of the strong demand for healthy food, as well as the increase in number of people who work out, in reality, the revenue of the project increases each year From the above calculations, we could see that the project worth investing After only almost two years, the project covers all the cost and results in positive earnings The profit of the project increases tremendously after each year Both theory and reality indicate that this project will develop well in present and become more and more desirable 55 PART V SOCIAL BENEFITS V.1 Physical Health Benefits It's no surprise that eating well affects your body in positive ways A study published in Progress in Cardiovascular Diseases in 2015 analyzed the effects of three diets: a Mediterranean diet supplemented with nuts, a Mediterranean diet supplemented with olive oil and a low-fat, calorie-restricted diet The most health benefits emerged from the Mediterranean diets, which improved blood pressure levels, insulin sensitivity, inflammation and other markers of heart disease Upping your fruit and vegetable intake may help protect you from cancer, while supporting your immune system Eating enough overall calories per day – ideally as part of balanced meals and snacks at regular time intervals – can help keep you energized Healthy foods can even improve your sleep, which plays an important role in weight control The economic benefits of healthy eating are the value of the population health improvements that would be realized by shifting a population to an optimal diet, all else being equal Shifting the US population to an optimal diet would reduce the prevalence of not only several risk factors—e.g., obesity, hypertension, high blood cholesterol, insulin resistance—but also myriad chronic diseases, including coronary heart disease (CHD), stroke, type diabetes, osteoporosis, and cancers of the stomach, colon, rectum, esophagus, oral cavity, larynx, and pharynx V.2 - Mental Health and Social Health YOU CAN IMPROVE YOUR PRODUCTIVITY AT WORK THROUGH using these healthy diet food When we think of the benefits of eating healthily, most of 56 us tend to think of the long-term advantages And this is with good reason, because avoiding diseases and increasing our longevity is one of the best investments we can make in our future - Reducing our risk of long-term illnesses like heart disease, cancers, type diabetes and osteoporosis, eating well can have a profound effect on our productivity in the workplace - These diet food BOOST CREATIVITY AND HAPPINESS AT WORK It has been shown that the more portions of fruit and vegetables eaten per day, the happier, more engaged, and more creative people will be at work In a study by the British Journal of Health Psychology, adults who ate more healthily over a 13-day period had greater wellbeing and also demonstrated more feelings of meaning and purpose at work - Our products contain various vitamins needed for your life MAGNESIUM Specific nutrients such as magnesium (found in leafy greens, steak and dark chocolate) have been linked to a reduction in anxiety; magnesium has a relaxing effect on muscles PHENYLALANINE Phenylalanine can cross the blood-brain barrier and it stimulates the brain to produce mood-boosting neurotransmitters such as dopamine Find it in almonds CHOLINE - Improve longevity Plenty of research suggests that eating healthy foods can help extend your life and improve your health Studies reveal that a healthy diet can help you sidestep ailments that plague people more as they age, including heart disease, hypertension, cancer, and cataracts 57 V.3 Environmental Benefits It seems that having a habit of healthy diet isn’t just good for your health but it can also reduce significantly your impact on the environment As we have already known, producing and transporting the amount of food such as crops, livestock, fishing are responsible for 20% to 30% of total global greenhouse gas emissions Furthermore, the large number of land in our planet is being used to grow our food To be honest, a latest research shows that citizens in 28 high-income nations like the United States, Germany and Japan actually followed the dietary recommendations of their respective governments, greenhouse gases related to the production of the food they eat would fall by 13% to 25% At the same time, the amount of land it takes to produce that food could drop by as much as 17% By the way, these findings demonstrate in a logical fashion that a healthier diet leads to a healthier environment There would be an overall reduction in environmental harm if healthy diets were uniformly applied in every country The environmental impacts of food production is also shown on aspect of the stability of the food supply chain For example, decreased consumption of meat could have a major impact on water usage Almost every Americans currently get about 15% of their protein from plant-based sources Shifting that to 25% could result in enough water savings to provide two-thirds of California’s water supply V.4 Employment benefits Creating jobs is an iMportant goal in the country's economic development strategy The project's contribution to this goal is assessed by the team as follows: 4.1 In the short term 58 Creating jobs for food processing workers, helping them to have stable jobs and earn more income 4.2 - In the long term Expanding business model, creating retail stores and taking delivery, thereby creating a large amount of work for workers - Expanding the scale of the food industry, thereby, developing and promoting clean farm business models to create food supplies - Create high quality human resources to research and develop healthy products 59 PART VI References Lock K et al The global burden of disease attributable to low consumption of fruit and vegetables: implications for the global strategy on diet Bull World Health Organ 2005;83(2):100–8 World Health Organization, Diet, Nutrition and the Prevention of Chronic Diseases: Report of a Joint WHO/FAO Expert Consultation, in WHO Technical Report Series No 916 2003, Geneva, Switzerland August McLaughlin, November 28, 2018, healthyeating.sfgate.com, “How Does Eating Healthy Affect Your Physical, Mental & Social Health?” Hartmann C, Dohle S, Siegrist M Importance of cooking skills for balanced food choices Appetite 2013 Drewnowski A, Almiron-Roig E Human perceptions and preferences for fat-rich foods In: J.-Montmayeur P, Coutre JL editors Fat detection: taste, texture, and post ingestive effects 2010 p 265–266 https://www.brookings.edu/blog/future-development/2018/04/17/vietnamsmanufacturing-miracle-lessons-for-developing-countries/ https://www.vietnam-briefing.com/news/vietnam-ranked-69th-in-ease-of-doing-businessrankings.html/?hilite=%27World%27%2C%27Bank%E2%80%99s%27%2C%27Ease %27%2C%27Doing%27%2C%27Business%27%2C%27Rankings%27 https://www.worldbank.org/en/country/vietnam/overview https://www.euromonitor.com/dairy-in-vietnam/report 60 https://www.statista.com/outlook/40010000/127/milk-products/vietnam http://vinanet.vn/thuong-mai-cha/tong-quan-tinh-hinh-xuat-nhap-khau-sua-va-san-pham6-thang-dau-nam-2019-715283.html https://vietnamdairy.vn/en/2019/01/15/nam-2018-nhung-no-luc-cua-nganh-sua-viet-nam/ http://en.vbcsd.vn/detail.asp?id=476 https://vietstock.vn/2009/05/phan-tich-nganh-sua-viet-nam-theo-chuoi-gia-tri-582116240.htm? fbclid=IwAR1jV237vsNDpESNSJxITlwQvZEpAUluxHGBB2bxGrhJGm4aCpByW3XL HtA https://www.luathongduc.com/10-ly-do-nen-dau-tu-vao-viet-nam http://baochinhphu.vn/Thi-truong/Nang-cao-chat-luong-dong-von-FDI-vao-VietNam/374650.vgp http://www.satra.hochiminhcity.gov.vn/chi-tiet-tin/nen-chinh-tri-on-dinh-tao-cho-vietnam-co-duoc-1-nen-hoa-binh-va-thinh-vuong-472 http://duthaoonline.quochoi.vn/DuThao/Lists/TT_TINLAPPHAP/View_Detail.aspx? ItemID=1717 https://vietnaminsider.vn/vietnam-fitness-services-market-outlook/ https://www.slideshare.net/asiaplus_inc/survey-vietnamese-health-consciousness-andfitness-demand-85392567 https://www.slideshare.net/asiaplus_inc/vietnamese-diet 61 ... Beverage for Health Road Vegetables and Food for Health TH School Project TH Health Care Project I.3 About products to invest Diet Cookies, High-protein Milk, Greek Yogurt for people who workouts: Diet. .. like papaya, grapes, pineapples, etc Good for diet: rich in dietary fiber, helping to fill for long without craving for snacks should be suitable for those who need to lose weight Bread also helps... (Unit: people) Targeted Over-weighted Working-out Others (student, officer, object people people people who follow low calories diet, …) Estimated 15,500,000 number of (approximately people 16,3%