marketing startup report our combined 24 7 coffee shop sweet house

I.Executive SummaryProduct IdeaOur combined 24/7 coffee shop - Sweet House, is a multi-service store dine -in, takeaway,and delivery which is designed to be suitable for young people in

Marketing Startup Report

MKT101 - Principles of Marketing

Group members

Nguyen Truong Hong Quan DA170006

Lecturer: Ms Truong Dieu Thao Tran Tue Man DS160294 Team number: 4; Total pages: Ngo Thi Khanh Linh DS170099

*Excluding: Cover page, Table of Content, References,

Appendices

Table of Contents

I Executive Summary ……… Page 3

II Current Marketing Situation ……… Page 4Macro-environment Analysis ……… …… Page 4Micro-environment Analysis ……… Page 8III Marketing Strategy and Action program ……… Page 14Marketing Strategy - STDP ……… Page 14Segmentation and Targeting ……… Page 14Differentiation ……… Page 15Positioning .……… Page 15Marketing Plan (4Ps) ……… Page 18Product ……… Page 18Price ……… Page 19Place ……… Page 19Promotion ……… Page 19

IV SWOT Analysis ……… Page 21

V Budget for the Startup Plan ……… Page 22

VI References ……… Page 23

I Executive Summary

Product Idea

Our combined 24/7 coffee shop - Sweet House, is a multi-service store (dine -in, takeaway,and delivery) which is designed to be suitable for young people in FPT city Beingconstructed on Nam Ky Khoi Nghia street, Sweet House will go into operation in September,

2024 The store is a combination of traditional and luxury models of coffee shop, with thebreezy first floor following a retro & eco aesthetics concept, along with the second floor inwhich customers can enjoy a more reserved ambience with quiet settings There will also be achildren's playground with supervisors

Generally, Sweet House is devised to be photographic at any corner This is one of the waysthat Sweet House looks to connect with its customers, on the other hand, offering superiorvalues compared to its competitors - current coffee shops located in FPT City

Demand for the Service

Sweet House understands that there is an increasing number of young people in FPT city.These people share the same characteristic of enjoying going to coffee to congregate and talk,and they require a specific level of concentration to complete their tasks properly, primarilyfrom the sedentary jobs It is also an excellent virtual living corner for customers who need toupload photos to their virtual lives This can be the hunt for a lot of sitting area, or lengthysitting ideal for nocturnal work/study

II Marketing Situation

Macro-environment Analysis

Social factors

Sweet House will be located in FPT city - a prospective place currently being constructedwith the aim to develop a green city with modernity (Homedy, n.d.) From the outset, SweetHouse will take advantage of those being in charge at FPT University, FPT Complex, andpeople from the neighboring area, especially students of Viet Han University and local people

of Ngu Hanh Son District These are the projected customers to Sweet House

From FPT City

- FPT Complex: home to the largest

software engineers and experts in the

Central Region, with up to 3200

engineers currently employed (FPT

From Adjacent Areas:

- Young residents of Ngu Hanh Son

District

- Viet Han University: 4000 students

in 2020, with orientation to enlarge

the scale up to 10,000 students in the

future (Giới Thiệu | Trường Đại Học

Công Nghệ Thông Tin Và Truyền

Thông Việt Hàn - Đại Học Đà Nẵng,

n.d.)

From FPT City

- FPT Plaza 1: residents in 586apartments (FPT City, n.d)

- FPT Plaza 2: residents in 700apartments (FPT City, n.d)

- FPT Plaza 3: residents in 861apartments (FPT City, n.d)

- New workers of FPT Plaza

- 7000 students from FPT educationsystem and 10,000 engineers of FPTSoftware Da Nang (FPT City, 2022)

From Adjacent Areas:

- Young residents of Ngu Hanh SonDistricts

- 10,000 students from Viet HanUniversity

- Travelers from further regions whocome to visit FPT City (mainly from

Da Nang and Hoi An)

Access to the facilities of living, working and recreation in the nearby area, and the publicinfrastructure will be completed, facilitating high standards of living The so-called "GreenTechnology Urban Area," is a residential development in Da Nang that offers its residents avariety of fresh experiences, including the first-ever clean sewage system and green areas thatspan more than 100 hectares and include green trees, parks, and artificial lakes (Homedy,n.d.) Moreover, aiming for features of resistance to flooding and storms, reducing the effects

of climate change, the density of the green park layout accounted for 21.06% - a proportion

of green trees twice as high as the present planning standards (FPT City, 2022) For thisreason, it can be predicted that this city will attract a large number of people (predominantlyyoung) who share the common characteristics of high income, modern, and tech-savvy Thiswill provide Sweet House great advantages for our business operation

Image 1: Current construction Plan of FPT city (FPT CITY DA NANG, n.d.)

Economic factors

Based on the technological prowess of the FPT Group and a long-term vision for sustainableurban development, FPT City is envisioned as the first smart green urban area model in DaNang With a high standard of life, inhabitants of FPT City can be anticipated to havedecent/high income and therefore, good affordability For this reason, it is a promising placewhere customers will be highly financially viable On the other hand, with favorable terrain,the city itself facilitates access from manifold regions (mostly public terminals and tourismdestinations)

Through an economic prism, as aforementioned, FPT City has the prospect to attract a largenumber of inhabitants and workers, specifically citizens from other regions, and tourists.

Image 2: Access to FPT city from terminals and tourism destinations (PIREALTOR, 2022)

1 Citizens from other regions:

Regarding image 1 - construction plan of FPT city There will be a business park, towncenters, schools, villages, sport centers, riverside and lakeside villas, as well as a club houseerected Therefore, it could be forecasted that there will be a new trend of metropolitans,lecturers, and students moving from other areas to settle in FPT city

2 Tourists:

Da Nang is well-known for its reputation of being the most livable city in Viet Nam Despitethe fact that FPT city is still underdeveloped today, once the infrastructures are completed, itwill be a new highlight - a captivating, tech-savvy and green region in Da Nang which willentice curious explorers Additionally, being constructed in a highly accessible location fromterminals and tourist destinations (Vinacapital Golf, Cocobay, there are even more chancesfor the devising city to become the next tourist attraction in the coming years

Political factors

Currently, it is allowed to operate a coffee shop anywhere in the metropolitan region forlandowners or renting premises (FPT City, n.d.) However, an opening of a coffee shop, or ofany other businesses requires a compliance of the national regulations, including license tax,VAT (Value added tax), and PIT (Personal Income tax) (LUATSU, 2023)

On the other hand, the Certificate of Food Hygiene and Safety will definitely play a vital role

in reinforcing Sweet House’s prestige as an “infant business”, which will inevitably undergoskepticism and uncertainty from customers

Technological factors

In 2023, in spite of the fact that FPT City has not been officially recognized as a residentialarea, it can be acknowledged that there is a high rate of technology adoption here We canestimate social network usage of potential customers through the number of young people inFPT City, Viet Han University, nearby residents, and future dwellers in FPT City

FPT University 4000 undergraduates ≥ 4000 students

Viet Han University 4000 undergraduates 10,000 undergraduates and

postgraduates

Nearby residents 115,872 people (2018) ≥ 115,872 people

Objectively evaluate, tech-usage in FPT city would be substantial This will contributegreatly to the orientation of how Sweet House will marketing itself, especially throughpromotion on social media

Environmental factors

The opening of a coffee shop will not exert considerable adverse impacts on the environmentsince the amount of trash and dust it releases into the environment is negligible As a result,similar to any other business, Sweet House will hold account for environmental protection,however, this will not be an urgent problem Sweet House will instead develop the conceptrelated to eco-aesthetic, therefore express the love for nature and therefore inspire customers

to protect the environment

2 Human resource

Sweet House will be operated under the direct management of 8 members Depending oneach job and situations, there will be discussions, coordination and negotiations betweenmanagers and other positions to find out solutions

Shift manager Delegating shifts and tasks

to staff, and supervise theirperformance

Customer data manager Manage customer data and

information about theirresponses of ‘Sweet House’events

Ingredients and process manager Manage the ingredient

storage and supervise toensure staff are followingthe right steps whilebartending

Financial manager Keep track of the cost,

revenue, and profit; findsuppliers of high-qualityproduct and affordableprices

Employee Trainer Mainly responsible for

recruiting employees andtrain them for expectedattitudes and bartendingskills

engage more customer,widen ‘Sweet House’reputation, especially onsocial media

Formality Job Responsible in dealing with

legal procedures and papers

Sweet House is planning to hire from 5 to 7 staff They will be mainly university and highschool students in FPT city, or the neighboring regions On the other hand, our team memberswill also hold employees’ tasks, with the effort to cut costs in staff salaries (delivery, cashier,playground supervisor, and barista)

These are some suppliers that ‘Sweet House’ team is looking for coaction: HALA FOOD,Thao shop, MIA CAKE, and Dalatmilk These suppliers are widely known to have prestige

on the provision of good-quality and affordable products to coffee shops around Da Nang)

per unit

Total cost (VND) HALA

FOOD

SIRO GOLDEN 750ml 10 bottles 56,000 560,000 Phuong Nam Condensed Milk 1l 10 bottles 50,000 500,000Fine Cocoa Powder 500gr 5 bottles 55,000 275,000Whipping Cream 100g 10 bottles 35,000 350,000Coconut milk 400ml 5 cans 26,000 130,000

Watermelon 10kg 10,000 90,000Pineapple 5kg 19,000 95,000

Grinded Coffee 5 packages 85,000 420,000

Sweetened Yogurt 100g 40 boxes 5,000 200,000Unsweetened Yogurt 100g 40 boxes 5,000 200,000

Salted egg cake 5 boxes 22,000 110,000Croissant 7 boxes

Competitors

For an “infant” coffee store, it is inevitable to encounter competitors Currently, the number

of existing coffee shops in FPT city is not considerable Our coffee shop, therefore, willprimarily face competitors from the adjacent areas, especially Da Nang downtown.Regarding café stores that are already in operation, we divide the competitors into 2 groups.The first group consists of coffee shops inside FPT city, and the second group comprises

(distance and opening hours), price, coffee shop model, menu varieties, interior design,customers’ review (from Google Map and reality), delivery service, and rating on GoogleMap (till March, 2023) This would help lay the groundwork for Sweet House to develop aneffective differentiation and positioning strategy.

First group: Milano Coffee, and Coca Coffee

Table A: Competitors of Sweet House inside FPT City

Overview: Milano and Coca Coffee not only charge low prices but also have good attitudes towardcustomers On the other hand, both coffee stores are quite communicative, suitable for sociableactivities such as chit-chatting However, drink flavors are not highly-rated (despite the fact thatMilano is a franchise store of a large brand) Additionally, neither coffee shops are suitable for workand study

Table B: Competitors of Sweet House outside FPT City

Overview: Competitors in the 2nd group are all well-designed and have competitive features Theprices are also considered affordable, However, access to 24/7 coffee near FPT city is still limited Onthe other hand, although the price is affordable, stores that have appropriate settings for work andstudy are relatively far

Customers

The majority of customers of Sweet House will be students and office workers from FPT city(FPT University, and FPT complex), and those from adjacent regions (residents of Ngu HanhSon district and especially students of Viet Han University) Potential customers areanticipated to be younger students of F-schools, and future residents of FPT city

Our coffee shop is designed to serve customers with two separate demands Firstly, thosewho demand a location for socializing, chit-chatting and having fun with friends will be ourcustomers Secondly, Sweet House’s customers can also be people who need a 24/7 quietsetting to focus on work or study (students, lecturers, office workers, freelancers, orarchitects).

III Marketing Strategy and Action Program

Marketing Strategy - STDP

Segmentation and Targeting

Through market analysis and in relation to ‘Sweet House’ resources, we decided to divideconsumers into 4 segments

● The sociables:people who seek places with a joyful atmosphere or lovely view, wherethey can have conversations with friends, or take photographs

● The concentrators: people who seek a quiet setting to focus and complete their work

or study (assignments/deadlines)

● The coffeeholics: people who seek to explore new flavors of coffee

● The homies: people who have few demands of going to cafe, or their jobs requirethem to spend the entire time at home (e.g factory workers, or grocery owners)Sweet house’s target customers will be those in the first 2 segments (the sociables and theconcentrators), who are mainly young people This not only fulfills the requirements ofpeople at FPT city where there are a myriad of sedentary jobs, but also contributes to ourdifferentiation strategy - a convenient multi-model coffee store

Differentiation

The strongest difference between ‘Sweet House’ and its competitors is the benefits it willbring about In the market of FPT city, Sweet House is the only coffee shop that providesplaces for either voluble people or busy introverted customers (totally soundproof) Besides,there will be a free-of-charge playground for kids where parents can trustfully allow theirchildren to play (under the supervision of Sweet House’s staff) As a result, customers areenabled to focus or enjoy the coffee time without having to worry about their children, or