Chapter 01 the e business plan

Nguyễn Thế Đại Nghĩa● Group: 03Number Name Class Student code1 Trịnh Tuyết Quân K22411CA K2241115012 Chu Thị Thuỳ Dung K22411CA K2241114823 Nguyễn Quốc Trịnh K22411CA K2241115064 Đinh Th

VIETNAM NATIONAL UNIVERSITY- HO CHI MINH CITY

UNIVERSITY OF ECONOMICS AND LAW

E-COMMERCE PROJECT

● Instructor: Mr Nguyễn Thế Đại Nghĩa

● Group: 03

CHAPTER 01: THE E-BUSINESS PLAN 4

1.8.2 Unique Selling Proposition (USP) 24

CHAPTER 03: CONCLUSION 53

Chapter 01: The E-Business Plan

1.1 Introduction

1.1.1 Purpose

The purpose of this instructional material is to furnish a comprehensive set of instructions fordevising and implementing an electronic business strategy for Lagom, a scented candle brand.The objective of this plan is to help Lagom enhance its virtual reach, connect with a largeraudience, and elevate customer satisfaction by integrating electronic technologies ande-commerce approaches

Platform: Mobile application & Website

Location: Vietnam, Thu Duc City

Overview

Lagom is a brand that specializes in selling candles The brand is known for its commitment

to offering high-quality candles that are eco-friendly and sustainable Lagom believes in the concept

of "just enough" or "not too little, not too much," which is reflected in their product line Our candlesare designed to provide the perfect amount of scent and ambiance to create a relaxing and comfortableatmosphere Lagom's candles are made from natural, non-toxic materials, including soy wax andessential oils Lagom’s commitment to sustainability extends to our packaging, which is made fromrecycled materials and can be reused or recycled again One of the unique aspects of Lagom's candles

is our subtle and sophisticated scents Instead of overwhelming fragrances, Lagom's candles provide asubtle and refined scent that creates a relaxing and cozy atmosphere Our candles come in a range ofscents, including lavender, vanilla, and sandalwood, among others In addition to our commitment tosustainability and our subtle scents, Lagom is also dedicated to providing excellent customer service

We offer fast and reliable shipping and have a helpful and knowledgeable customer service teamavailable to answer any questions or concerns

Market Positioning

Overall, Lagom's values of sustainability, subtle scents, and excellent customer service bring afresh perspective to the candle market and provide consumers with a high-quality, eco-friendly, andcalming product

Growth Strategy

Firstly, Lagom will invest in digital marketing efforts to increase brand awareness and drivetraffic to its website This will include search engine optimization (SEO), pay-per-click (PPC)advertising, and social media marketing By reaching consumers where they spend their time online,Lagom can establish itself as a top-of-mind option for those in the market for high-quality,eco-friendly candles

Secondly, Lagom will focus on optimizing its website and user experience to encourageconversions and repeat purchases This will involve implementing a user-friendly design, fast loadtimes, and clear calls to action throughout the site Additionally, the brand will prioritize customerservice and communication to ensure that shoppers have a positive experience and are more likely toreturn for future purchases.

Thirdly, Lagom will explore opportunities to expand its reach beyond its online store Thiscould include partnerships with other e-commerce retailers or participation in online marketplaces toreach new customers

Finally, Lagom will prioritize data and analytics to inform its growth strategy By tracking keymetrics such as website traffic, conversion rates, and customer feedback, the brand can continuouslyoptimize its marketing and product offerings to better meet the needs of its target audience.Conclusion

Through strategic expansion and a continued emphasis on its core values, Lagom iswell-positioned for long-term growth and success The brand's commitment to natural and non-toxicingredients resonates with a growing demographic of socially responsible consumers, while itsaffordable price point makes it accessible to a broad market of candle enthusiasts By staying true toits mission of promoting balance and mindfulness through fragrance, Lagom can continue todifferentiate itself from competitors and build a loyal customer base Through innovative productdevelopment, strategic marketing, and a commitment to sustainability, Lagom is poised to become aleader in the online candle market

1.3 Business Description

1.3.1 Issues

Many traditional candles are made with paraffin wax, which is a byproduct of petroleum andcan release harmful chemicals like benzene and toluene when burned Additionally, the productionand disposal of traditional candles can contribute to air and water pollution and can have negativeeffects on wildlife and ecosystems Therefore, there is a considerably growing demand foreco-friendly alternatives The Lagom was founded to solve this issue in the fragrant candle field withits totally eco-friendly and high-quality products

Commerce 100% (1)

52

Testbank

ecommerce Chapte… E-

shipping options In the B2B segment, we work with retailers, wholesalers, and other businesses tosupply our products for resale or as promotional items We offer competitive pricing, flexible

packaging options, and customized scents and branding to meet the specific needs of our B2B clients.1.3.6 Value proposition

Lagom chooses a B2C and B2B business model, which is a website that plays the role of

providing products that create a sense of relaxation and comfort for users For buyers, with just a fewclicks, you can see the types of floral scents as well as describe the scents in detail, so even if you

don't experience it directly, you can still feel what the scent will be As it suits us, we work to redefine

a time-saving outsourcing solution for both buyers and sellers The Lagom scented candle brand hasnot been launched on the Vietnamese market yet, however, there are a number of factors that help

create its brand value on e-commerce platforms First, Lagom's scented candles are appreciated fortheir quality and unique design Lagom products offer sophisticated and diverse scents, crafted fromnatural and eco-friendly ingredients This helps Lagom products attract the interest of those who lovethe fragrance and seek products to help themselves relax Second, the Lagom brand focuses on

customer experience and professional service Lagom creates a convenient and user-friendly onlineshopping experience and provides product advice and guidance to customers On the Lagom scentedcandle website, you'll easily find blogs that help "beginners" or how to use scented candles to bringthe most comfortable feeling This helps Lagom make a difference and earn the trust of customers.Finally, the Lagom brand also pays special attention to environmental protection Lagom's scented

candles are made from environmentally friendly materials and production technologies such as

soybeans, and Lagom also applies campaigns to help protect the environment by recalling after use.The above makes this brand trustworthy and responsible to the community Although not yet

launched, the Lagom scented candle brand believes that it will create a valuable brand thanks to

product quality, customer experience, and respect for the environment With those advantages, Lagomhas the potential to develop and attract many customers on e-commerce platforms in the future

E-value: Online has many choices and easy access

Topic 2-2020 ĐÁP ÁN

Commerce 100% (3)

E-6

Figure1Accordingly, in Vietnam, searches related to mental health services also showed an increase of61% compared to 2019 - the time before the appearance of the Covid-19 epidemic (Figure 1) Despitehaving the lowest number of searches in the country, this clearly reflects the fact that Vietnamesepeople have paid more attention to mental health issues during the pandemic According to the report,during the pandemic, Vietnamese people mainly take care of their mental health by using fragranceand light The scented candle product is the most interested, with searches increasing 481% in the first

5 months of this year compared to the same period in 2019, and up 142% compared to 2020.Vietnamese people make conscious lifestyle choices: Reusable straws and cups at cafes,oversized bags at supermarkets, and eco-friendly fashion brands have now become the norm popularimages in many cities across the country

According to a Vietnamese consumer survey, 91% of respondents said they are aware of andengaged in a conscious lifestyle For comparison, the figure is 86% in Indonesia, 73% in Thailand, and75% in Malaysia Notably, 84% of Vietnamese respondents to the survey said that they are willing topay higher prices for products that represent a conscious lifestyle This hints at the potential forpremiumization in the market Taking advantage of this, businesses can use environmentally friendlymaterials and/or packaging to meet the market potential

Over the next decade, Vietnam's consumer class could be expanded by 36 million, defined asconsumers who spend at least $11/day at purchasing power parity (PPP)1 This is a big change In

2000, less than 10% of Vietnam's population was in the consumer class, but by 2021 this number hasincreased to 40% By 2030, this number could reach close to 75% (Figure 2) New consumption isemerging strongly not only from first-time consumers but also because the income of the generalconsumer class tends to skyrocket in the income pyramid The top two tiers of the consumer class(including those who spend at least $30 a day) are growing at the fastest rate and could account for20% of Vietnam's population by 2030

Figure2Urbanization is an important factor contributing to income growth Vietnam's urbanpopulation is expected to skyrocket by 10 million people over the next decade as the share of urbanpopulation increases from 37% in 2020 to 44% in 20302 In 2021 alone, out of the country's totalpopulation, the urban population was 36.57 million people, accounting for 37.1%; the rural populationwas 61.94 million people, accounting for 62.9%

Regarding the age group, the age group over 13 accounted for a large proportion (79.7%), andthe age group over 18 accounted for 72.8% In general, the age group 16 – 64 still accounts for a highproportion, equivalent to 67.4% (Figure 3)

Gender: Male 49.1 million people, accounting for 49.8%; 49.41 million women, accounting for50.2% The sex ratio of the population in 2021 is 99.4 males/100 females.

Figure31.4.1.3 Economy:

After the turmoil, the economy showed signs of recovery Economic growth in 2021 is 2.58%,although it is the lowest level in more than 10 years, it is still a positive sign when many economieshave negative growth during the pandemic Commenting on Vietnam's economy in 2022, the chiefeconomist of the World Bank (WB) in Vietnam Jacques Morisset said that: Vietnam's economy in

2022 will have bright colors

In addition, consumption has been more widely distributed in the past decade Although themain consumption power is still located in the two major economic and financial centers of thecountry, Hanoi and Ho Chi Minh City, other cities are also developing into economic engines In 2020,Hanoi and Ho Chi Minh City account for 37% of the total number of Vietnamese households withincomes higher than $22,000/year in 2011 purchasing power parity, but this share may decrease to 31

% by 2030 (Figure 4) In addition, growth in the number of middle-class households in small cities(and even in rural areas) is happening at a faster rate than in Hanoi and Ho Chi Minh City – with acompound annual growth rate of about 8% compared to 5%

In addition, consumption has been more widely distributed in the past decade Although themain consumption power is still located in the two major economic and financial centers of thecountry, Hanoi and Ho Chi Minh City, other cities are also developing into economic engines In 2020,Hanoi and Ho Chi Minh City account for 37% of the total number of Vietnamese households with

incomes higher than $22,000/year in 2011 purchasing power parity, but this share may decrease to 31

% by 2030 (Figure 4) In addition, growth in the number of middle-class households in small cities(even in rural areas) is happening at a faster rate than in Hanoi and Ho Chi Minh City – at a faster ratethan in Hanoi and Ho Chi Minh City the compound annual growth rate of about 8% vs 5%

Figure4Besides the above bright and positive points, there are still difficulties and challenges.According to the report of the General Statistics Office published on December 29, 2021, theestimated average income per person per month in 2021 at current prices is about 4.2 million VND,down 73,000 VND compared to 2020

The latest survey by YouGov - an international data analysis and research company, alsoshows that the pandemic has changed the personal finance picture in Vietnam This year, consumersare more cautious about their short-term consumption habits as well as their long-term financial plans.Nearly half of households have experienced a reduction in income by 2021 More than a quarter saytheir income has fallen slightly by 10-20% Meanwhile, 20% saw a large reduction, at least 20% lessthan the previous salary Against this backdrop, 28% of Vietnamese consumers increased their savingsand reduced spending on non-essential consumption during the pandemic This trend of Vietnameseconsumers is at the forefront of Asia, higher than the index of Hong Kong (China) and far ahead ofSingapore Changes due to the pandemic have prompted consumers to reassess their current spending

habits and long-term financial plans More than 53% of Vietnamese consumers cut non-essential items

in the past 6 months Meanwhile, 80% plan to continue cutting in the future

Figure51.4.1.4 Technological environment

According to Wearesocial, there were 68.72 million Internet users in Vietnam in January

2021 The number of Internet users increased by 551 thousand (+ 0.8%) between 2020-2021 and theInternet usage rate in Vietnam reached 70.3% in January 2021

The number of social network users in Vietnam in January 2021 reached 72 million, equivalent to73.7% of the total population The number of social media users in Vietnam increased by 7 million(+11%) from 2020 to 2021

By the end of 2020, according to experts, Vietnam is one of the fastest growing e-commercemarkets in Southeast Asia, second only to Indonesia Vietnam is also one of two countries (along withIndonesia) with strong growth in e-commerce website traffic in the region

In Vietnam, according to the 2021 E-commerce White Paper, B2C e-commerce revenue has alsocontinuously increased over the past 5 years Specifically, if in 2016, this figure only reached 5 billionUSD, by 2019, the revenue has doubled, reaching more than 10 billion USD and in 2020 it is 11.8billion USD, with a growth of 18 % Compared with the last year In particular, Google's SoutheastAsia internet economy report forecasts that Vietnam's e-commerce will reach about $29 billion by

2025 with a growth of 34% compared to 2020

In addition, the percentage of new online shoppers, out of total online shoppers in Vietnam,also accounts for the highest percentage (about 41%) in the region, in 2020 Compared to this rate onaverage in Southeast Asia about 36%, Indonesia and the Philippines with 37%, Malaysia with 36%,Singapore and Thailand with 30%

Online shopping and e-commerce platforms are giving consumers this 24/7 accessibility Up

to 64% of Vietnamese consumers said that they will continue to shop online even after Covid-19 isgone (according to NielsenIQ Vietnam)

Besides, the e-commerce shopping cart also has a clear shift to essential items Home care sectorincreased by 12% compared to 2020 (Figure 7)

Figure7The proportion of users paying via mobile in Vietnam is estimated at 29.1%, just behind China andKorea, but the total transaction value of each user is low (Figure 8).

Figure8

The Government publishes quality standards for scented candles to ensure the legality ofproduction, business and circulation of goods; Manufacture factory; distribute products in compliancewith legal regulations; Legally circulated products; create prestige; brand enhancement; Create astable consumption market; market expansion; product development; Competitive advantage withunpublished products; increase business performance; Minimize regulatory audits.

In addition, the Government's Resolution 128/NQ-CP (Resolution 128) on temporaryregulations on safe, flexible adaptation and effective control of the Covid epidemic helps productionand business activities recover strong rebound Resolution 128 allows the transition from the "ZeroCovid-19" strategy to "Safely adapting, flexibly, effectively controlling the Covid-19 epidemic",creating a premise for localities to reopen The most positive point of Resolution 128 is that in allsituations and developments of the Covid-19 epidemic, production can be organized, as long asenterprises meet the safety requirements for epidemic prevention

1.4.2 Micro environment:

Table 1:Customer

mainly selected for gifts

target customer file Products areused to decorate or bring apleasant scent, improve mood,relax,

pay little attention to mentalrelaxation products, limitedfinancially However, tend tolike pretty decorationsFrom 18 to 22 years old The age group is mostly

students, with quick access,preference for trending products,unstable financial situation

From 23 to 30 years old The age when you start working

or have a stable job, have afamily or young children andstart focusing on mental healthcare, products to help you relax,reduce pressure, decorate yourhome

Over 30 years old Having a job and income that

can be more stable than inprevious periods, focusing onmental health care for bothyourself and your family,upgrading living space

have no need or can only pay fornecessary activities

From 3 to 7.5 million VND Economic conditions are

moderate, affording higherdemand for products, but willnot be frequent and continuousand at the same time there areprice considerationsFrom 7.5 to 15 million VND Better income, able to pay for

regular use, more concernedwith quality than priceOver 15 million VND Relatively high income, they

expect much more about productquality and products that showtheir own distinctionGeographical location Hanoi and Ho Chi Minh City The standard of living is quite

high and densely populated.Easy access to informationthrough social networks and

many other media However,there will be many competitorsTourist and resort city The growth of tourism and

services drives demand fromresorts, where they use scentedcandles and other mental healthproducts to support theirservices

Other regions There are areas that may not be

accessible or know much aboutscented candles, the demand isalso less

1.5.Market Analysis-Targeted customer

Currently in Vietnam, the use of scented candles for relaxation and decoration is graduallybecoming a trend Realizing that the consumer demand for scented candles is gradually increasing andthis is a quite positive market From the criteria analyzed above, we can see that scented candleproducts are used in a fairly wide age segment and many market segments However, in the first stage,based on resources and ability to perform, the group identifies the main target market as:

● Female

● People from 18 years old to 30 years old

● Have quick access to social networks, the media

● Have a need to use scented candles to relax or for decorative purposes

● Wholesale customers are souvenir shops, supermarkets, cafes - tea shops, restaurants andevent venues, resorts and resorts

1.6 Competitors Analysis

1.6.1 Competitive advantage

Lagom Scented Candles have the following competitive advantages in the Vietnamese market:Reasonable price: With a price of 200,000-450,000 VND, Lagom can compete with othercompetitors in the market and attract a number of potential customers

Easy-to-see website: With a user-friendly and easy-to-use website, Lagom can make it easyfor customers to find information about its products and place orders conveniently

Products made from natural materials: Lagom is committed to manufacturing products madefrom natural ingredients, ensuring safety for users health This is a big advantage as today'sconsumers are looking for more natural and safer products for their health.

Seasonal Collection: With a collection of fragrances designed specifically for the seasons ofthe year, Lagom helps customers have more choices and meet their different needs

Update promotion information continuously: Lagom updates promotions regularly on its website,helping customers save purchasing costs and increase the attractiveness of products

Customer Focus:

Because of its focus on the customer and the customer experience, Lagom also uses a method

of collecting feedback from customers after purchase that will help the shop sell customer focusedscented candles effectively Listening to customers' opinions on product packaging, customer careadvice, shipping and product use will help the shop improve the quality of its services and products.Focusing on customer needs is a competitive advantage of a shop selling scented candles With thedevelopment of the market, consumers increasingly require professional advice and care afterpurchase By meeting these requirements, the store will gain the trust and support of customers Thishelps the shop maintain and develop its scented candle market

Product Difference:

The most obvious difference of Lagom is the attention to customer experience, environmentalprotection, and relaxation, the brand always tries to create visual uniformity from website tonewspapers Discover products and banners, all of which show the elegance and sophistication of thebrand and product, the product's scent is also particularly noticeable when it is often directed to gentle,relaxing scents for people use application

With a 24/7 online chatbot support service, Lagom customers can get basic product-relatedquestions answered quickly and conveniently Besides, Lagom also provides support articles to helpcustomers choose the product that best suits their needs and preferences

In addition, Lagom also focuses on environmental protection with specific policies, helping tominimize adverse impacts on the environment This not only helps Lagom create trust and confidencefrom customers but also actively contributes to the sustainable development of the community.With the above notes, the SWOT table of the Lagom scented candle brand will have thefollowing notes:

Strength Weaknesses Opportunities ThreatsReasonable price

Low investment cost

The variety of product

The products are notreally different from otherproducts on the market

The E-commerce market

is growing very fast Thegrowth rateof globale-commerce is 16.24% in

2021 and thebreakthrough is forecast

to increase to 24.5% in

2025 This figure inVietnam is more than20% in 2021, given itsscale 16 billion USD

The use of scentedcandles to take care ofmental health as well asfragrance the living andworking environment isgradually getting moreattention

Competitors have hadyears of experience with abroader segment andmore diverse products

There is still not a widevariety of fragrancesources Currently, weonly hire to focus on 1production plant

1.6.2 Competitor Analysis

Bath & Body Works, LLC is an American retail brand under central L Brands (formerly LimitedBrands) along with Victoria's Secret Founded in 1990.Bath & Body Works is a specialty retailer andhome of America's Favorite Perfume(R) offering a range of body and home fragrances, fragrancesprays, and fragrances , body lotion and cream, 3-wick candle, home fragrance diffuser and liquidhand soap

Bath & Body Works' revenue for the quarter ended January 31, 2023 was $2.888 billion, down 4.6%year-on-year Bath & Body Works' revenue for the twelve months ended January 31, 2023, was $7.560billion, down 4.09% year-over-year Bath & Body Works' annual revenue for 2023 is$7.56 billion,down 4.09% from 2022 (due to Macrotrends)

● Website: Bath & Body Works' website has a beautiful interface, consistent colorswith brand colors, and an easy-to-see presentation to help buyers easily choose

Strengths:Bath & Body Works offers 209 different types of candles on their e-commercestore1 They come in a variety of scents in both single and triple-wick candles.Bath and BodyWorks scented candles are authorized by the user The product has been purchased by dozens

of people on the e-commerce platform

Currently, Bath & Body Work products have covered more than 30 countries andterritories announcing more than 1,700 stores in the US and Canada, nearly 300 otherterritories around the world

● Weaknesses: High price

Heny Garden: Heny is a Vietnamese brand developed in the Vietnamese market.Success in 2020

● Website: Heny Garden's website has a variety of products, as chatbots and pop-ups tosupport customers, but the local layout is difficult to see, making buyers confused whenchoosing products

● Strengths: Heny has a wide range of products for different customer segments from armpitbeds under 100,000 to sets around 800,000 In addition, Heny also provides wholesaleservice with a cheaper price for customers who buy more than 15 jars

● Heny sells combos that allow buyers to make their own fragrances

● Weaknesses: Because there are too many services and products included when enteringthe web, users will be confused by the arrangement of those products, the web does notsuggest those products to the user

Table 3

Rivals Strengths Weakness Operation

range

Production /Service

Fragrance andbody careproducts

585,000-773,00

0 VND for 3wickes candle374,000-421,00

0 for 1 wickcandle

Heny garden 100% organic,

has a wide

range of

Webpresentation isquite difficult to

Vietnam Simple and

relaxingfragrance

50,000-800.000VND

Services suchas: freemessages,manualpackaging.

1.7.1 Form of Transaction

- Online transactions - All activities of Lagom customers and businesses will be through

an online form in which:

+ Website will be the main bridge between customers and businesses - All transactions betweenthe two parties will be on the Website Includes all roles: Purchase, Sales, Product

information, Brand information, policies, promotions, news, customer information, Shipping,Payment

+ Fanpage Lagom on Facebook will be a secondary tool for the website with the following

roles: Product introduction product information, Brand information, Marketing, Contact

+ View products (Price, product information, promotions, ) Customers can view the

information posted on the website or Lagom (Chatbox / Lagom Consultants) contact support,questions or product introduction advice on Messenger / Zalo / Gmail messaging applications

or Hotline numbers by Lagom

+ Select products: Customers choose the products they want to buy, then choose the number ofproducts, sizes or variations of the product to put in the cart

+ Payment: Fill in the customer's personal information (name, email, phone number, address),choose a payment method (COD / Online payment) and confirm the purchase of the order

+ Order confirmation: Lagom will confirm the customer's order through email notification

immediately after the customer confirms the purchase of the order

+ Packing - Shipping: Once payment is confirmed, Lagom will pack it and send it to a 3rd partycarrier for delivery to the customer's address

+ After-sales customer support: Lagom has a customer support service after purchasing a

product including product return, warranty, product support to answer customer questions

Details of the after-sales customer support service policy are available on Lagom's website

+ Save time and effort: Let your

business focus on its core business,

while the experts create the website

+ Low cost: This is verybeneficial when businesseshave knowledge of website

+ Get flexibility and variety:Combining both methodsgives us flexibility and variety

for you Easily find service

providers that fit your business

needs and budget

+ Professional: Experts in this field

have good knowledge and

experience, ensuring that your

website will be built professionally

and effectively

+ Latest Updates: Experts in this

field regularly update the latest

technologies, keeping your website

up to date The service provider

will be responsible for maintaining

and upgrading the website, helping

businesses save time and costs for

this

building from which they cansave costs by doing itthemselves

+ Freedom and flexibility:

Enterprises are fully active inall aspects of the website andhave full control over thedesign and functionality oftheir website

+ Full control: You havecomplete control overbuilding and managing yourwebsite The website can becustomized and upgradedmore easily

of options Businesses canchoose to outsource servicesthat they do not have theknowledge and skills to build

on their own As for the partsthat businesses can build bythemselves, we can actively

do it ourselves to save costs.+ Leverage the expertise andexperience of the serviceprovider: You can takeadvantage of the expertise andexperience of the serviceproviders, making yourwebsite perform better, can beoptimized for speed pages,ensure security, etc.+ Saving: Businesses can savetime and costs If you buildthe entire website yourself, itwill take more time and costthan outsourcing But if yououtsource the whole thing, thecost will be very high.Combining both methodssaves you money and timecompared to building oroutsourcing

Disadvantage

+ High Cost: Outsourcing can be

expensive in terms of costs

Businesses will have to pay for this

service, especially if they want to

build a complex, high-quality and

high-quality website Quite

disadvantageous for a newly

established business - built on a

B2C business model like Lagom

+ Dependency: Businesses will

have to depend on the services of

the provider, sometimes unable to

control the activities related to their

website such as adjusting, repairing

or changing products, information

Product information, promotions,

+ Time-consuming andlabor-intensive: Building awebsite takes time and effort,especially if you don't haveexperience or knowledge ofprogramming

+ Unprofessional: If yourbusiness lacks experience andknowledge, your website maynot look professional andeffective

+ Not up to date: If yourbusiness is not up to date, youmay not know the latesttechnologies and be unable touse them on your website Notguaranteeing the highest

+ Difficulty in managementand coordination betweenenterprises and partners: Thecombination of both methodscan also cause difficulties inmanagement and coordinationbetween the parties Managingissues like data dispersion,site performance and quality,and flexibility will bedifficult Businesses mustmake sure that the parties areworking on the same scheduleand have good delivery toavoid status quo orasynchrony between parts ofthe website

offers, etc will become time

consuming

+ Security: It is possible to

encounter problems related to

customer information security due

to not being able to control the

website source code

quality and efficiencycompared to outsourcing

⇒ Lagom decided to choose The combination of Self-building and Building services to build thewebsite( Haravan)

1.7.3 Payment and Delivery

- Payments:

+ Method 1 - Cash payment: Bill payment on receipt of goods (COD)

+ Method 2 - Payment by bank transfer (Prepaid)

- Delivery:

+ Goods are delivered by a shipping company - Lagom cooperates with logistic companyNinjaVan and receives nationwide shipping

+ Shipping cost depends on customer's receiving location, specifically:

● Inner city: 19,000 VND - Outer city: 24,000 VND

● Other addresses: 33,000 VND

- Description of the payment and shipping process:

+ Step 1 - Register for payment: After choosing the product you want to buy, you can clickbuy directly / click on the cart icon to proceed with the order payment

+ Step 2 - Enter personal information: Customers can log in (If already have an account) /Enter personal information directly such as Name, Email, Phone number and address.Customers can enter discount codes to receive preferential orders from Lagom (If any).+ Step 3 - Choose a shipping method: Customers can choose 2 shipping methods which arePayment on Delivery (COD) and Bank Transfer (with detailed instructions)

+ Step 4 - After completing the order: When the customer completes the purchase on theWebsite, Lagom will send the customer an Order Confirmation Notice via Email After that,Lagom will receive the order and process the goods to pack and ship to the customer'saddress successful money transfer)

+ Step 5 - Support after the transaction: Lagom has a customer support service after acustomer buys a product on Lagom's website Any problem or support of customers andLagom is interacted through Hotline / Zalo / Messenger / Gmail, Lagom will quickly handleand resolve quickly and most reasonably based on Lagom's pre-existing policy Support policydetails are updated on the website).

1.8 Marketing Plan

1.8.1 Target Audience

Our primary target market consists of:

● Homeowners and renters who appreciate home decor and fragrances

● Gift shoppers looking for thoughtful and personalized presents

● Individuals who prioritize eco-friendly and sustainable products

1.8.2 Unique Selling Proposition (USP)

The Lagom offers:

● High-quality, handcrafted candles made from eco-friendly materials

● A wide range of unique and captivating scents

● Personalization options for special occasions and gifting

● Sustainable packaging and commitment to the environment

1.8.3 Promotion Objectives

1 Business Objectives:

- Sale volume at 1500-2500 products

- Drive traffic to the online store

2 Communication Objectives:

- Create brand awareness within the target market

- Position the products as high-quality and eco-friendly candles

- Generate positive word-of-mouth and referrals

3 Marketing Objectives:

- Establish a loyal customer base through engagement and trust-building

- Enhance market penetration

- Boost consumption level

1.8.4 Promotion Strategies and Tactics

- Share engaging content, including product photos, customer testimonials, and

promotions

Email Marketing:

- Collect email addresses through website sign-ups, social media, and offline events

- Send regular newsletters featuring new products, promotions, and valuable content.B.OfflineChannels

Local Craft Fairs and Markets:

- Participate in relevant events to showcase and sell products directly to potential

customers

- Collect email addresses and build relationships for future online engagement

Collaborations and Partnerships:

- Partner with local businesses (e.g., spas, boutique shops, yoga studios) for productplacement and co-promotions

- Collaborate with event planners, wedding coordinators, and corporate gifting services toexpand sales opportunities

Public Relations:

- Reach out to local newspapers, magazines, and radio stations for features and interviews

- Share press releases for new product launches, events, and noteworthy achievements

Referral Program:

- Develop a referral program that incentivizes existing customers to refer friends andfamily through discounts, exclusive offers, or loyalty points

Table 5: Referral Program

2 Establish asocial mediapresence andgrow followers

Ignite your senseswith - Unveil aworld of exquisite,handcraftedproducts tailored toyour desires

Exclusivelaunch offersandpromotionsfor earlyadopters

1 Social mediaplatforms

2 Influencerpartnerships andcollaborations 3.Contentmarketing

4 Emailmarketing

5 PR outreach 6.Launch event

2 Build a loyalcustomer basethroughengagementandtrust-building.

Experience TheLagom - Indulge inour top-tier productsand unmatchedcustomer servicethat leaves youwanting more

Customertestimonialsand successstories

1 Social mediaadvertising

2 Emailmarketing

3 SEOoptimization

4 Local events,fairs, and markets

5 Referralprogram

6 Partnershipswithcomplementarybusinesses

Brand Loyalty

and Advocacy Months 5-6

1 Encouragerepeatpurchases andincreasecustomerlifetime value

2 Turncustomers intobrandadvocatesthroughpositiveword-of-mouthand referrals

Embrace the Lagomcommunity -Cherish our ongoingcommitment todeliveringunparalleledproducts andmemorableexperiences

Exclusiveloyaltyprogrambenefits andrewards forreturningcustomers

1 Loyaltyprogramimplementation

2 Social mediaengagement

3 Emailmarketing

4 Contentmarketing

5 Customersurveys andfeedback

6 Strategiccollaborationswith influencersand communityleaders

● Track key performance indicators (KPIs) like website traffic, conversion rates, emailopen rates, social media engagement, and event footfall.

● Monitor customer feedback and reviews to identify areas of improvement

● Regularly analyze and adjust promotional tactics to optimize results and return oninvestment (ROI)

1.8.6 Budget Allocation

- Allocate the promotion budget based on the expected ROI and effectiveness of eachchannel, prioritizing online channels with low-cost, high-impact potential Consider thefollowing allocation:

● Influencers partnership and collaborations: 15%

● Content Marketing: 15%

● Social Media: 20%

● Email Marketing: 10%

● Public Relation:10%

● Local Craft Fairs and Markets: 10%

● Referral and Loyalty program: 10%

● Collaborations and Partners: 10%

Table 6

Influencer partnerships and collaborations 15% 2,250,000

Email marketing 10% 1,500,000

1.9 Human Resources

Organizational Structure: