course name business start up final paper business plan

EXECUTIVE SUMMARY Business Name: Chewchy Location: Online stores Instagram, Facebook, Shopee & Production Facility: Street No.3, Belleza residential area, District 7 Type and size: Food

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF FOREIGN LANGUAGES

COURSE NAME: BUSINESS START-UP

COURSE CODE: 001197

FINAL PAPER

BUSINESS PLAN TEAM : 6

Team leader’s full name: ĐẶNG TRÚC NHƯ QUỲNH Student ID: 019H0353

Group: 6

Lecturer in charge: KIM HUỲNH ĐIỆP

HCMC, April 2023

REPORT ON TASKS DELEGATED AND FULFILLMENT

Team: 6

No ID Full name

(in alphabetic order)

Responsibilities

(specify detailed duties) Remarks by

team leader Score

given by lecturer

in charge (3pts)

H Personnel S2 Financial projections

Cooperatively

Finished on time

H Personnel S2 Financial projections

Cooperatively

Finished on time

3 019H0264 Nguyễn

Huỳnh Thảo Vân

Cooperatively

Finished on time

Team leader

(signature & full name)

After each team hands in the report,

lecturer-in-charge should base on the feedback of

each team member to give points, using the

questions below:

1 Why does your team choose that goods or

service to start up? (1.0)

2 What are the advantages and

disadvantages of delivering that goods or

service into the target market? (1.0)

3 How can each group member work to

meet the requirements of this report? (1.0)

MARKING SHEET

TEAM: 6

No ID Full name (in alphabetical order) Score given by lecturer in charge (3/10 (a) Score given by examiner 1 (7/10) (b) Score given by examiner 2 (7/10) (b) Total score [= (a)+(b)] In figure In word 1 019H03 53 Đặng Trúc Như Quỳnh

2 019H03 58 Nguyễn Thanh Thảo

3 019H02 64 Nguyễn Huỳnh Thảo Vân Report score in detail: Examiner’s score (7/10) examiner 1 (signature & full name) examiner 2 (signature & full name) 1 Content: ………/5.0 2 Language use ………/2.0

Examiner’ comments (if any): ………

………

………

………

CONTENTS

Executive Summary or Statement of Purpose ……… 1

Section One: The Business ……… 3

Section Two: Financial Data ……… 22

Section Three: Supporting Documents ……… 26

EXECUTIVE SUMMARY

Business Name: Chewchy

Location: Online stores (Instagram, Facebook, Shopee) & Production Facility: Street No.3, Belleza residential area, District 7

Type and size: Food and Beverage

Mission: "Taking care of community health through products of natural origin"

Slogan: “Eat better, not less”

Contact information:

Instagram : @chewchy.official

Facebook : Chewchy Official

The product that our company focuses on producing is Nougat candy, a type of snack that has become popular in the confectionery market recently and is being received very positively by the community It can be seen clearly that there are numerous kinds of snack foods available on the market today, but very few of these foods have been developed especially for dieters, and they tend to have limited tastes and inadequate customer satisfaction In response to customer demand, we investigated and developed Nougat with trans fats and low additives, which was mostly made of healthy components and had no effect on weight gain when compared to the aforementioned sweets on the market

Nougat candy has lately built a name for itself in the confectionery industry Nougat candy has become a gastronomic craze, especially among the younger generation As a result, Chewchy's nougat products are aimed at young and middle-aged people who want to maintain a balanced diet while still having control over their daily nutritional intake Chewchy has studied and manufactured items at natural origin to fulfill the demands of customers who want to eat delicious but also nutritious foods

With the company's founders' capital of 500,000,000 VND, we want to purchase equipment for manufacturing items as well as other start-up requirements Chewchy will use the present proprietors for day-to-day operations

when it begins operations in order to keep beginning expenses low and create a successful food service company The owners will split the responsibilities of Operations Manager, Pastry Chef/Head Baker, and Marketing Manager Once the bakery is established and cash flow is consistent, an assistant manager and part- time employees for counter help, as well as an assistant baker, will be employed Despite recent economic difficulties, the retail bakery market's sales forecast is expected to increase This is primarily because people will spend money on tiny sweet pleasures that are affordable when other luxury items are cut from household budgets Chewchy will focus on recruiting loyal clients through marketing and advertising to both enterprises and residential populations in the

Ho Chi Minh City area

SECTION ONE: THE BUSINESS

be a potential company in the F&B industry in Vietnam

There are numerous kinds of snack foods available on the market today, but very few of these foods have been developed especially for dieters, and even when they are, they tend to have limited tastes and inadequate customer satisfaction Understanding consumer psychology, we develop Nougat products

in a variety of flavors so that consumers can indulge in their own sweet cravings without worrying about gaining weight or suffering health-related consequences

in comparison with typical snacks Our company focuses on manufacturing

healthy and ecologically friendly snacks and desserts, allowing customers to easily monitor their nutritional consumption

We chose the name Chewchy because it is easy to remember and impress customers which makes the company stand out from the market When read aloud, the combination of the two terms "Chewy" and "Crunchy" will sound like the same pronunciation, which is intriguing for customers to keep in mind

We discovered via extensive research that even small changes can have a significant impact and aid individuals in better controlling people's health However, dieting to lose weight is bad for health, especially since it can hurt both body and mind In light of this, the slogan of our business is "eat better, not less"

to promote wholesome eating that is still nutrient-rich and discourage skipping meals

Since we founded the business, "Taking care of community health through products of natural origin" has been our mission since we want to provide real benefit to society Our ethos is to create a line of versatile and nutritional products using only the best organically derived ingredients

Confectionery is not in the group of essential consumer goods, but it is an indispensable product in the Vietnamese market Everyone can see that they are necessary products that were purchased and used in all situations Therefore,

Vietnam is an ideal environment for new businesses like Chewchy

B Products/Services

Chewchy’s product is healthy Nougat - a kind of fluffy, aerated confection that is made of premium ingredients including honey, egg whites, coconut oil, and protein powder It also contains fruits like cranberries, raisins, etc., and high- quality nuts such as almonds, walnuts, macadamia, cashews, etc

Chewchy presents one of the most innovative nougat packaging developments

Without a doubt, nougat is a product that has been able to evolve and reach new markets Food that may be consumed seasonally or all year and that is

currently available in a range of flavors and created with ingredients to satisfy all tastes

This valued delicacy can be packaged in a variety of ways Flow pack packaging with vacuum packing is one of the most popular options The package

is then vacuum packed, which increases the product’s shelf life

The core benefits of our product consist of helping balance the digestive system, preventing constipation Supporting to reduce cholesterol, protecting the heart, helping minimize heart disease and lower blood sugar Providing antioxidants, beautifies and rejuvenates the skin Providing natural protein, helps the body firmly and reduces cravings, supplementing the optimal source of nutrients for the body

For the young generations and middle-aged people who are concerned about their weight and general health, but looking for healthy alternatives to sweets We are the Chewchy is the only health food company that delivers various types of healthy Nougat because we always seek and understand customers’ demand and struggle to support them to have a better health; and changes people’s mind about healthy food can also be delicious

Chewchy provided unrivaled customer service by taking client input seriously Treat each customer as though their experience is one-of-a-kind, and treat them as if they are your most important purchasers

Owing to the cooperation with a delivery company, we are able to deliver faster than our competitors, as a result, Chewchy will have an advantage Since when it comes to internet shopping, speed is often the decisive factor Customers want their items as soon as possible, and they will choose the company that can provide them

The features that differentiate Chewchy from other competitors are that our company offers a variety of delectable and distinct flavors: Longan Red Apple Oolong Tea, Super Nut Milk.y, Macca Coffee, Black Milk Tea These flavors created the desire of many dieters to crave milk tea, sweets apart from many basic flavors such as vanilla, chocolate or matcha options on others’ menu

Chewchy will assess our prospects via the value we offer them including depth of our information, the quality of our website, and so on

Consumers buy our products for two major reasons: to boost pleasure such

as glowing health, and to reduce tension during the diet journey

The prospects will also be more likely to engage in dialogues with us as we allow them to communicate in the various methods that they prefer (a blog article, video or audio content)

Another point is Chewchy also concentrates on the most appealing benefits

of our Nougat and delivering on time as promised

C Market Analysis

Nougat candy has recently made an impression on the confectionery market Nougat candy has become a culinary fad, particularly popular among the young demographic Therefore, Chewchy's nougat products target young and middle-aged persons who wish to maintain a balanced diet as well as exert control over their daily nutritional intake In order to meet the needs of customers to eat delicious but still healthy, Chewchy has researched and created products of natural origin This unique group of 100% environmentally friendly substances is produced on the basis of natural materials In terms of geographical segmentation, the climate has no effect on product quality, therefore consumers throughout Vietnam can buy and use it as long as it can be shipped within one month Confectionery is not in the group of essential consumer goods, but it is an indispensable product in the market According to Nielsen (2019), the Vietnamese confectionery market is worth about VND 40 trillion The average growth rate is 5-8 %/year, higher than that of the world (1.5%) Consumption per capita in Vietnam is about 2 kg/year, lower than the world's 2.8 kg/year Currently, confectionery production units in Vietnam are mostly small-scale production establishments, with only about 30 industrial-scale production enterprises In addition, there are also a number of foreign confectionery importers and distributors This is an ideal environment for a confectionary solid for growth

Vietnam has an estimated population of about 90 million people, a young demographic structure, and a strong per capita income growth rate The domestic market has developed into a fertile area with high potential and a consistent growth rate, drawing both domestic and foreign investors Nougat is gradually establishing itself as a must-investment opportunity New manufacturing units, in particular, must find items to pave the way for enterprises looking for products that disrupt, impress, and attract consumers That is what Chewchy is intending and the direction that can be developed in the future

Chewchy is a new firm with few consumers Thus, our organization is prepared to design a variety of advertising campaigns in order to inform the target customers However, it takes a long time for a new business to gain customer trust and establish itself as the dominant player in the marketplace A further weakness

of Chewchy's goods is that they are somewhat more costly than normal Nougat This is because the raw material we utilize to create the product is of high quality

We decided to choose 100% eco-friendly ingredients after thorough research in order to deliver maximum nutrition to our clients Furthermore, the pricing we have chosen is geared toward clients with an ongoing income who are eager to

invest in their health

environmental impact, making our company stand out in the market and garner respect

To be specific, when the nougats are sliced into 20-gram pieces by an automation technology machine, they will be wrapped in biodegradable pro- plastic packaging Each nougat is stamped with the following information: business name (Chewchy), company logo, product name (Nougat), location of manufacture (Vietnam), flavor, and net weight More special, each Nougat packaging will have a positive saying about being healthy to raise the awareness

of advanced purchasers

In the delivery stage, paper zip bags and paper boxes are mainly utilized for packaging the Chewchy Combo of Nougats, depending on the customer's choice of packaging when placing an order

On the front, we will print our company name and logo

On the back of the package, it will have two stamps, including these information:

Stamp 1

Product name, Flavor, Ingredients, Production Date, QR code

Expiry Date: 2 months from the manufacture date

Preservation:

Use the product directly

Keep it in a cool and dry place

If storing in the refrigerator, take the nougat out 20 minutes before eating to let the fondant return

Stamp 2 Nutrition Facts

This information shows serving size, number of servings in the packaging, calories each serving, and the amount of various nutrients contained in the product The labels can assist customers in following a balanced diet and limiting overeating that leads to a calorie surplus

*Product line

1 Original Flavor: Chewchy Nougat (Original), Strawberry, Mango, Blueberry, Almond Chocolate

2 Special Flavor: Orange Earl Grey Tea, Longan Red Apple Oolong Tea, Super Nut Milky, Macca Coffee, Black Milk Tea

*New products

Chewchy is in the process of testing a new ingredient list to launch a new Nougat product that is totally vegan (no egg, dairy-free) while still ensuring adequate nutrients needed for a certain diet

Besides using dried fruits, maple syrup is also used in place of sugar to generate the predominant sweetness

Brown rice flour or almond flour: keep the nougat form

Vanilla essence: use a dash to create fragrance and a pleasant sweet flavor Coconut cream or coconut oil: adds creamy texture, and holds the nougat bars together

2 Pricing strategies

Chewchy Company uses a premium pricing strategy as we want to charge greater prices for our products than rivals, emphasizing “image pricing" and

“prestige pricing" A premium pricing approach has the advantages of producing higher profit margins, generating higher barriers to entry for competitors, and increasing brand perception and value across the board High prices go hand in hand with high-quality products Over and beyond the price, Chewchy offers a diverse assortment of distinctive flavors and tasty nougat sweets, giving us a competitive edge

3 Promotional strategies

The long-range goal of Chewchy is not only to dominate the healthy food product market but also to establish an iconic brand Chewchy can bring consumers high-quality products coupled with convenient service and great online

shopping experiences Our marketing strategies will concentrate on Sales

Promotion Advertising , and Word-of-mouth

Online platforms will be used to promote our business and products because the majority of individuals who purchase on these platforms are young and adult people, they are also our target audience Chewchy will initially engage

in web-based marketing to generate awareness of the company and product information By ensuring that the website is easy to navigate as well as simple to

order from, the Chewchy website is designed with eye-catching illustrations, clear

product classification, specific prices, and delivers the most essential information Our team will then give social media outreach to clients top priority This

is regarded as a key tactic for luring in a sizable number of prospective clients For Facebook and Instagram, Chewchy will have these following programs, which are mainly used for Sales Promotions

Buy 1 combo “Original Nougat”, Get 5 “Special Nougat” Bars is regarded as providing samples for buyers to try our new products

If customers buy 1 Combo of “Special Nougat", they will receive 15% off for the next receipt

Posting stories with hashtags or tagging our store’s account in their posts on Instagram and Facebook will get buyers 20g of Nougat bars for their next purchase

#sweetrevengeofficial #sweetrevengenougats #sweetrevengefestival

#nougatfestival #buy1get5 #buy1get15 #buy1get20

For Shopee, Chewchy will implement discount policies in accordance with certain

time frames and Shopee-designated holidays, such as: 30 April - 1 May, 5 May, etc Additionally, Chewchy will give more discount codes to customers so they can hunt for sales and apply discount codes with limited quantities to encourage customers to quickly buy great deals

Importantly, we encourage our clients to communicate with us or provide feedback via Instagram messaging, Facebook Messenger, and product reviews on Shopee

In addition, Loyalty Cards (online) are also made with memberships in mind Specifically, customers can accumulate points by scanning the QR code on