Beemate JSC is a education technology startup based in Da Nang, Vietnam that aims to provide solutions to Vietnamese English language learners in the country. The company’s main product is a learning application named BeeMate which has a unique pairing structure where learners can learn in a “buddy approach” and complete a variety of exciting activities and challenges. It will begin operations once business registration certificate and tax code is granted. Moreover, it is projected to launch on the 1st month of 2024. As proved by the company’s research, there is a growing investment in the EdTech sector in Vietnam, while there is a significant population of Vietnamese learners who have reported that they learn English in various ways like in English centers or selfstudy online using YouTube or paid online courses. BeeMate application is an entrant in the online learning market. We aim to maximize this buying behavior of consumers by giving a learning solution which is easy to use and contains exciting activities to the two users. The company is headed by Mai Phan Thao Ha and with a team of specialists in different fields: Frances Summer Dy in Marketing, Hoang Ngoc Bao Phuc in Finance, Trung Vu in Sales and Customer Supports, Pham Diem in Software, and Dung Pham in Education. A technology startup such as this requires a huge investment as the operating costs and other organizational costs are equally high. The company’s retained earnings in the first year is around 20 million VND, this is the net income and the dividends for stockholders. The profit margin is 5.61% for every 100 VND and stockholders get a 4% for every share. Following this financial analysis, the startup company is deemed to be profitable in its first year of operation.
EXECUTIVE SUMMARY Beemate JSC is a education technology start-up based in Da Nang, Vietnam that aims to provide solutions to Vietnamese English language learners in the country The company’s main product is a learning application named BeeMate which has a unique pairing structure where learners can learn in a “buddy approach” and complete a variety of exciting activities and challenges It will begin operations once business registration certificate and tax code is granted Moreover, it is projected to launch on the 1st month of 2024 As proved by the company’s research, there is a growing investment in the EdTech sector in Vietnam, while there is a significant population of Vietnamese learners who have reported that they learn English in various ways like in English centers or selfstudy online using YouTube or paid online courses BeeMate application is an entrant in the online learning market We aim to maximize this buying behavior of consumers by giving a learning solution which is easy to use and contains exciting activities to the two users The company is headed by Mai Phan Thao Ha and with a team of specialists in different fields: Frances Summer Dy in Marketing, Hoang Ngoc Bao Phuc in Finance, Trung Vu in Sales and Customer Supports, Pham Diem in Software, and Dung Pham in Education A technology start-up such as this requires a huge investment as the operating costs and other organizational costs are equally high The company’s retained earnings in the first year is around 20 million VND, this is the net income and the dividends for stockholders The profit margin is 5.61% for every 100 VND and stockholders get a 4% for every share Following this financial analysis, the start-up company is deemed to be profitable in its first year of operation A COMPANY DESCRIPTION Founded in July 2023, BeeMate is a technology startup in education solutions for young people to serve their objectives in studying English The overall goal of BeeMate is to produce and deliver a pleasant English learning experience through our technological application ● Our Mission: To simplify the English learning approach to help students and young people learn English, help them connect to the English learning community, and reach their individual goals ● Our Vision: BeeMate will become an English learning solution that millions of Vietnamese people trust We are committed to becoming a supportive tool throughout the development of Vietnamese English learners ● Our Core Value: Through our innovative products and services, we create value for our customers We grow, inspire, and motivate all those we interact with while upholding enthusiasm through our people, altering their study ways, and boosting their personal study + Simplicity: We listen, then respond quickly We are simple but effective in terms of results to ensure time, benefit, and cost for our clients + Concern: To exceed customers' expectations, we cultivate a culture that responds to their demands or solves their problems quickly and with consistent, long-term quality + Professionalism: We require our organization's morality, knowledge, understanding, and self-development to be professional in their work which must have a sense of self-responsibility, social organization, and nation A BUSINESS PLAN The Marketing Plan 1.1 Environmental analysis Micro environment According to the market report of Holon IQ, $10.6B and 1,400+ deals of EdTech Venture funding for 2022, nearly half focused on management systems and learner/teacher support The Federation of Business Information Service (FEBIS) writes in a 2022 article that “Vietnam is the most dynamic Education Technology (EdTech) market in Asia'' There is a strong investment in Vietnam’s EdTech market The rise of EdTech in Vietnam is an indication of increased digitization and globalization The main factor driving up the market is the high numbers of internet use and smart devices in the country Over 30 million dollars is the estimated total investment into edTech in Vietnam in 2022 EdTech continues to be among the top industries that investors are interested in and pouring money into The highlights of 2022 include: + The debut of the EdTech YearBook at Techfest's EdTech Village, which ranks several EdTech products in various fields + Numerous EdTech investment deals (11+ deals announced and dozens more undisclosed) + The formation of several educational technology alliances + Stronger market penetration by foreign entities into Vietnam's EdTech market Nevertheless, this growth rate is incredibly slow for online education With a compound annual growth rate of 44.3%, Vietnam is one of the top 10 markets for online education worldwide, according to Tech in Asia Research This market is anticipated to expand at a rate of roughly 20.2% from 2019 to 2023, reaching a value of $3 billion USD in 2023, which opens an opportunity for our product BeeMate Net Income ( NI ) = sales revenue - Tax - Operation EspensesInterest=1.055.858.750-263.963.438-689.935.000-42.720.000= 59.235.313 + NI > indicates that the business is experiencing a net income Retained Earning ( RE ) = NI - Les Dividend = 59.235.313-40.000.000= 19.235.313 + + Dividend rate is 4%/share, with 100,000 shares, the amount that the enterprise must pay to shareholders is VND 40,000,000 Profit Margin = Net Income / sales Revenue = 59.235.313 / 1.055.853.750 = 5.61% +This indicator shows that for every 100 dong in revenue, the business earns 5.61 dong in profit Return on asset (ROA) = Net Income / Total Asset= 59.235.313 / 1.177.200.000 = 50,31 % 1.1.1 Customers In a 2022 ELT Market report published by Vietdata, an independent research organization in Vietnam, the English language training (ELT) market in Vietnam is continuously growing alongside the openness of the economy It also adds that recently the market for English learning is not exclusive to young students There is a demand in professional working environments as more foreign investments and business pour in the country Following this information, BeeMate’s customers will be segmented by age, education level, geographic location, and occupation The background information is as follows: Age Educational Level Geographic Location Occupation Learning Goals 14-30 years old High school, University & higher North, central, south regions Students, professional workers Ielts , Toeic, Cambridge, etc… 1.1.2 Competitors Well-known offline centers ● Ha Noi city: Jaxtina, VUS, Regal Edu, DOL English, ECO English ● Ho Chi Minh city: EduPath, Apollo English, ILA Viet Nam, Newsky, IELTS FIGHTER ● Da Nang city: IRIS, AMA, ISEC, AMEC, PoPoDoo Online English learning applications ● Ecoach: a virtual learning platform offering teammates and teachers completing interesting and creative challenges/tournaments ● ELSA Speak: use of AI technology in speech recognition as well as acting as a personal virtual pronunciation coach that gives instant and precise feedback on every sound you make ● Duolingo: an application with different challenges and levels to complete providing an enjoyable game-like experience; users can compete with other users to get the highest score and receive in-app prizes and rewards ● Preply: hire expert English tutors with verified profiles at an affordable price; focus on skills and learn anytime Hidden Competitors ● Self-designed applications by individuals or other developers provided to centers as a supplement to their classroom programs ● Organized extra English classes by teachers and English tutors Macro Environment 1.1.3 Political-Legal Since the early 2000s, English has been declared a compulsory subject for all students in the country (Prime Minister, 2001) Since then, the government has opened the door for many international universities, corporations and non- governmental organizations (NGOs) to cooperate in promoting English in Vietnam The Government of Vietnam clearly identifies education as one of the priority areas; therefore, businesses investing in this sector can enjoy a 10% tax reduction during their operation, benefiting from years of corporate income tax (CIT) exemption and years of 50% CIT reduction 1.1.4 Social-Cultural Vietnamese society and culture is rooted in Confucianism, always attaching great importance to education as the key to success Vietnamese parents are willing to put in great efforts to ensure their children get a good education For the Vietnamese workforce, additional attributes, including language proficiency and soft skills, are highly valued due to their ability to increase individual employability 1.1.5 Economics In the World Bank August 2022 publication titled “Taking Stock: Vietnam Economic Growth Update”, the economy of Vietnam recovered strongly in the first half of 2022 After the social distancing due to the COVID-19 epidemic in the third quarter of 2021 The economy rebounded, growing 5.2% in the fourth quarter of 2021 and 6.4% in the first half of 2022 Additionally, Vietnam actively integrates into the global economy by joining the WTO in 2007 and having free trade agreements with other countries This contributes to the rapid increase in demand for language training, because both domestic and international companies consider applicants to have a higher level of foreign language proficiency 1.1.6 Technology According to the latest data, Vietnam's population currently has nearly 100 million people, including 45.7% people of working age and another 38% of people aged 0-24 who have a significant need for learning languages, especially English Along with that, the emerging middle class, accounting for 13% of the population, is expected to continue to increase (World Bank Vietnam, 2020), thereby creating a strong purchasing power in the market as this market is dedicated to studying abroad and traveling internationally The number of people using the Internet accounts for 70.3% of the population, with an average duration of hours 47 minutes Vietnam is ranked 10th worldwide with 61.37 million phone devices sold This PESTEL analysis shows that the market in Vietnam is ripe for development and a new entrant in the education technology industry is a welcome addition Harnessing the potential of Vietnam by tapping into the up and coming technology sector of the country makes a good environment for the team’s idea to launch an educational start-up 1.2 Products/services BeeMate is an app that pairs two learners based on their ages, learning goals, educational levels and other qualifications After that, the two users commit an amount of money to complete the upcoming 1-month motivational journey to learn English For month, the two will receive interesting, creative and unexpected challenges from BeeMate The two users will spend at least 30 minutes a day completing English training challenges If the pair does not participate fully daily, their commitment will be deducted, which will in turn motivate them more In appendix A, the user interface of BeeMate is shown BeeMate app is currently in MVP (Minimum Viable Product) development, which means that the features of the product are enough to be usable by earlystage users Moreover, the BeeMate app includes the following services: Products/services Features Sample Product Price (x1000) Inclusion (Activities & Challenges) 1-Week Trial (7 days) -limited access to -Word Games BeeMate English -Language Quizzes activities and challenges -no commitment FREE / 0.00 fee -match with a Matie 1-Month English (30 -match with a -Buddy session days) Matie around Skill covered: Listening user’s city -Listen to snippets of location (100 km popular music by radius) international artists -access -BeeTwister challenges Skill covered: anytime with your Speaking Matie -Mates will practice -failure to tongue twisters and complete take turns reciting challenges for them day is -1 USD -Joke Exchange from the Skill covered: Reading commitment fee & Writing -progress tracking -Write jokes about feature (streak) specific topics such as -return to missed food, animal or challenges hobbies 200 VND/month *** **** 6-month English **** *** Journey -unlock the -more complex English months Radius (match writing challenges* with a Matie in the whole country of VietNam region)* 1140 VND/6 (5%) discount -unlock TOEIC and IELTS courses 12-month English **** *** 2160 VND/12 Journey -study offline even -English certification months without Internet (10%) pathway connection discount -analysis in detail for the pair like progress keep tracking, percentage of each other studying 1.2 Customer demographic groups of customers: Students Workers or Professional Age from 14 - 22 from 23 - 30 Gender all genders all genders Location all Vietnam region all Vietnam region Marital Status No required marital status Income level -Under VND1,000,000/ -Under month VND10,000,000/month Social class and -High school and -Job stable and self- occupation universities students develop people -every type of occupation Education Internet Usage Travel Habits -High school and -Graduated and still university level demanding to learn more Using social media Using social media from from hours and more hours and more, but frequently occasionally Everyone can use the app as long as there is an internet connection available; free to access anywhere, anytime Ethnicity and Cultural No discrimination in ethnicity and cultural background Background Interests and Hobbies Users who are interested in English learning and improving themselves Buying Behavior Willing to pay more if the app offers more interesting games and challenges; willing to gain international certificates 1.3 Competition and competitive advantage The BeeMate company has many competitors in the market which include different English centers, schools and universities, and other app developers There are also companies, listed as hidden competitors, conducting offline and online classes In this section, the company identifies several online learning applications developed by three companies who are considered to be the major competitors: Online English learning applications by three companies: ● ELSA Speak: use of AI technology in speech recognition as well as acting as a personal virtual pronunciation coach that gives instant and precise feedback on every sound you make ● Duolingo: an application with different challenges and levels to complete providing an enjoyable game-like experience; users can compete with other users to get the highest score and receive in-app prizes and rewards