Business plan for orion xylitol

TRƯỜNG ĐẠI HỌC MỞ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM5 NGUYEN DUC DUNG BUSINESS PLAN FOR ORION XYLITOL MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: Dr Le Thanh Long Ho Chi Minh City (2012) i DECLARATION I hereby declare what I have written on “Business plan for Orion Chewing-gum” project which has never been published in any program or any course from previous courses I have myself obtained from MBMM5 program, especially getting from tutor’s advice and discussion with my colleagues I undertake that this is the project of my own All of figures and results which are mentioned in this project are righteous Ho Chi Minh City, January 2, 2012 Nguyễn Đức Dũng iv ACKNOWLEDGEMENT In a short time it’s extremely difficult to make a full perfect final project without all of people supports and helps How I could express all of my sincerely thanks to them with some words but I always wish them with a best successful in their life and works Firstly, I am grateful from the bottom heart to thank Mr Le Thanh Long was the valuable support and help throughout the process of essays Secondly, I would like to thank many of my colleagues in Orion, especially Mrs Quynh Oanh, Mr Thanh Dong (MKT team) and Mrs Thai Bao (Production team) and others in different companies who help me fulfill my tasks Thirdly, I am indebted to all of professors and supporters in Solvay Brussels School and Ho Chi Minh City Open University Last but not least I would like to thank my friends especially those who work together at MBMM5 course v TABLE OF CONTENTS Declaration i Tutor’s Comments ii Company Comments iii Acknowledgement iv Table of Contents v Abbreviation vi List of charts and tables vii EXECUTIVE SUMMARY INTRODUCTION Introduction 2 Objectives of the study Scope of work Final project structure ORION CORPORATION COMPANY History Mission statement Vision statement 4 Company structure 5 Operation objectives for the year of 2013 MARKET ANALYSIS Vietnam retail industry market General information of Chewing-gum market 2.1 Introduction 2.2 Market demand 12 vi 2.3 Competitor analysis 14 2.4 Consumer behavior 17 BUSINESS PLAN FOR ORION XYLITOL 20 Orion’s SWOT analysis 20 Orion Business Plan 20 2.1 Sales Plan 20 2.2 Personnel Plan 22 2.3 Marketing Strategy 23 2.3.1 Product 23 2.3.2 Pack 25 2.3.3 Positioning 27 2.3.4 Price 28 2.3.5 Promotion & Advertisement 29 2.3.6 Place 32 2.4 Financial Plan 33 2.4.1 Start-up funding 33 2.4.2 Break-event analysis 34 2.4.3 Projected Profit & Loss 35 2.4.4 Projected Cash Flow 36 2.5 Risk management 37 CONCLUSION AND RECOMMENDATION 39 Conclusion 39 Recommendation 40 REFERENCES 41 APPENDIX 42 vii ABBREVIATION - BTL: Below the line - ATL: Above the line - GT: General Trade - MT: Modern Trade - POSM: Point of Sales Material - POP: Point of Purchase - KA: Key Account - TM: Trade Marketing - PG: Promoter girl - Admin Staff: Administration Staff - N: North region - S: South region - HR Director: Human Resource Director - Assistant T.Nies Manager: Assistant Toonies Manager - NPs: Net Profit/Sales viii LIST OF CHARTS AND TABLES List of Charts: Figure 1: Numbers of supermarket in 2010 – Source ACN Page Figure 1.a: Numbers of shop in Traditional Trade – Source ACN Page Figure 2.1.a: Product Clarification Map – Source Orion Internal Page 10 Figure 2.1.b: General volume & value share – Total cities – Gum category – Page 10 Source ACN Figure 2.1.c: Detailed value share – Total cities – Gum category – Source ACN Page 11 Figure 2.1.d: The estimated value & volume growth – Total cities – Gum Page 11 category – Source ACN Figure 2.1.e: Unit price of Top items contributing category value and existing Page 12 over last 13 periods in cities – Source ACN Figure 2.2.a: The most factors consumers concern – Source ACN Page 13 Figure 2.2.b: Chewing-gum functional benefits – Source ACN Page 14 Figure 2.3: Market Share in Chew-gum market – Source ACN Page 15 Figure 2.4.a: VN Population – Source U.S Central Bureau, International Page 17 Database Figure 2.4.b: Consumer behavior – Source ACN – 2010 Page 18 Figure 2.4.c: VN Workforce Income – Source U.S Central Bureau, Page 18 International Database Figure 2.4.d: Promotion trend in Vietnam – Source ACN Page 19 Figure 2.4.e: Regional Differentiation Behavior – Source ACN Page 19 Figure 2.4.f: Vietnamese perception rating – Source ACN Page 19 Figure 2.3.1: Primary Research – Overview “Like” product rating Page 24 Figure 2.3.4: Price Matrix Page 28 Figure 2.3.6: Route to Market Page 32 Lists of table Table 1: “Green” campaign launch in the market in 2011 – Source ACN Page EXECUTIVE SUMMARY This project aims to help building a business plan of XYLITOL on Vietnam market in 2013 Orion made success with XYLITOL in Korea and China, and now plans to launch it to Vietnam, to a rapidly developing confectionery market XYLITOL is sugarless gum, and its target consumers are office staffs – the favorite age range of numerous giants It has to find a special and extraordinary way, to make it really special and differentiated on the market Winning the market, therefore, is set the objective of the launching project To this objective, many researches being conducted to understand the acceptance of consumers to XYLITOL, the target consumers’ perceptions & habits Following the analysis of these areas, critical issues have been indentified and eventually recommendations have been made as a result of the findings Particularly, the following major steps have been carried out Firstly, a general picture of the market potential and consumers’ behavior in consuming gum: the way they think and the process they use to make decision, which factors are really the most important in their consideration Secondly, the researchers proceeded to find the evaluation on product quality – since all marketing success begins from product base The evaluation here comes from not only the consumers, but also from shop owners who are the “ambassadors” of the brand all over the country Thirdly, based on these above factors, they have an overview of a business plan in years investment with sales forecast, profits & lost… Based on the knowledge and belief that unique value creates unique positioning, the researchers tried to find out which values are most meaningful to target consumers, then recommended the strategy & action plan to create that unique value & bring it to consumers in the most comprehensive way INTRODUCTION Introduction “Good for health” is recently phenomenon in the consumer behaviors trend, especially in foods segment Capturing from this chance, there are many companies won the market when attaching “Good for health with natural ingredients” like Tan Hiep Phat with “Doctor Thanh” drinking water, Unilever with “Sunlight washing dish is good for skincare”, … In chewing-gum segment, there was only Lotte launched XYLITOL – sugarless segment but they haven’t owned enough to whole gum segment when Wrigley (Extra) also jumped into later However, both of them just won 8.6% market share of Lotte & Extra with 6.6% market share while sugar segment is always dominants now From this opportunity, if Orion gets the right strategy, the overview market as well as the enough investment, a business plan will be built accordingly and then Orion will win over the segment with “Provide nutrition for teeth” tagline Objectives of the study Orion XYLITOL is a successful gum brand of Orion Corporation in Korea and China With the emerging population and economic growth, Vietnam is a promising market for the brands targeting in kids and youths However, the market conditions, such as logistics system and environment are not as developed as in Korea and China The consumers’ insight is not the same, while the Vietnam gum market is highly competitive, with the participation of many big global players Adopting and developing XYLITOL gum for Vietnamese market to getting the big achievement as expected, therefore, is a very challenging task: the direction and the method must be new and really special This project aims: - To reach 3% value shares in the first year - To mark a milestone the candy category at Orion Vietnam company 3 Scope of work: To approach and to convince the Orion board members buy concept “XYLITOL brand – Provide nutrition for teeth” to launch out the market, this project will be explored information from Primary data research – the method will be inducted by Focus group The sample size is 20 people The test is totally focused on target of Men & Women in office staff in HCM & HN city and from that is taken out the key factors in Orion XYLITON (Imported product), Lotte XYLITOL and Extra Wrighley’s to see perception in target consumer like best which product and Orion XYLITOL could get the winning chance in Vietnam market or not when applying formulation in localization Secondary data research – the sources are taken from Research agency, website as well as consulting from internal Orion members Final project structure: Chapter 1: Introduction: The problem statement is presented to express the target why this business plans to be prepared Chapter 2: Orion Corporation Company: This chapter briefs shortly about Orion Company Chapter 3: Market Analysis This chapter draws overview market in chewing-gum segment to take the chance and the reason why Orion has to jump into this segment Chapter 4: Business Plan for Orion’s gum This chapter brief shortly about Orion Chapter 5: Conclusion and Recommendation This chapter is to summarize of the key findings and give some recommendations 37 Total Current Assets $1,514,806 $2,936,984 $5,785,979 Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets $500,000 $200,000 $300,000 $1,814,806 $500,000 $400,000 $100,000 $3,036,984 $530,000 $500,000 $30,000 $5,815,979 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400,000 $400,000 $200,000 $200,000 $0 $0 Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital $700,000 ($54,000) $768,806 $1,414,806 $1,814,806 $700,000 $684,806 $1,452,178 $2,836,984 $3,036,984 $700,000 $2,086,984 $3,028,995 $5,815,979 $5,815,979 Net Worth $1,414,806 $2,836,984 $5,815,979 Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities 2.5 Risk Management: With expected plan to launch Orion XYLITOL will achieve the net profit as the company settle down its plan succeed in the market However, in 2013 the expert economy predicted more volatile especially in the food sector in which the confectionery industry will be more unpredictable To forecast the uncertainties issue that may occur if the plan does not deliver maximum sales target, the contingency plan for inventories as well goods from the market returns by company: - Offering products to Laos and Cambodia as well as African markets while the main supplies source from China to all of these countries got stuck when in recently China doesn’t meet enough volume not meet the growing demand from Africa should Orion Vietnam may consider and negotiate with headquarters for direct export to 38 Africa without the need for China to install additional production lines and factory expansion - Participate in co-promotions with local products selling - The board general manager is to re-consider the investment losses by accepting the first year to increase awareness and the presence of the product Year to accept lower profits targets to set the stage for the 3rd year with margins as expected when the product has to stand firm on the market 39 CONCLUSION AND RECOMMENDATION Conclusion From above analyzed information, it is showed that sugarless gum in Vietnam is very potential and attractive for investors Therefore, taking part in this market will bring a huge profit for Orion as well as more diversified choices for consumers One of the most important key factors in creating Orion’s competency is comprehensive strategy of 4P (Product – Price –Place - Promotion) while most manufactures only focus their marketing and advertising activities at retail outlets in order to attract or keep consumers Furthermore, the lack of product innovation from competitors will promote a competency for Orion to reach consumer faster as Orion owns new technologies and understands thoroughly Vietnamese customer habit form many existed products Besides, with proposed strategic plan about distribution, pricing, marketing and business, it is certainly that Orion is able to get success in investment in this market Recommendation In summary, Orion should: - Make a research product by professional research company to find out the reasons how to match between Orion XYLITOL original from Korea/China with Vietnamese taste - Create the strategic marketing/ advertising plan that can create a strong positive impression for consumers For example, when Vietnamese think “cool air”, they often think image of “vapour release” Or people can use gum before communication to keep fresh breath and get more confident - Develop more new products such as new flavor of fruits for different ages instead of age of 25 – 35 This helps expand more market share, keep exited consumers and attract new consumers 40 - Educate consumer about the benefit of using gum and the right way to use gum as a new way to approach Not only the end consumers, the middle consumer (indirect) as dentist as the new channel to invest - Invest enough impact to POSM to build and to reinforce “premium products” although Orion offers the cheaper than other competitors about consumer prices - Educate the internal team, especially sales force to be more belief on new consumer trend insight and the reason launch out Orion XYLITOL 41 REFERENCES A Books: - PROBISPLAN – How to plan a business by software – BOM Education - Vietnam Food & Drink Report – Business Monitor International Ltd - Shopper Marketing – Markus Stahlberg and Ville Maila B Research: - AC Nielsen Vietnam, 2009 Pocket Reference Book - AC Nielsen Vietnam, 2010 Pocket Reference Book - AC Nielsen Vietnam, 2011 Pocket Reference Book - AC Nielsen Vietnam – Vietnam Grocery Report 2011 Report - AC Nielsen Vietnam – Vietnam Goods Trend 2011 Report C Websites: - www.orionworld.com - www.socongthuong.thaibinh.gov.vn - www.vtv.vn - www.tinmoi.vn - www.thegioibanle.vn - www.fta.com.vn - www.tnsglobal.com - www.worldbank.org - www.fbnc.com.vn - www.bplan.com - www.xylitol.com.vn - www.atkearney.com 42 APPENDIX Appendix 1: Start-up funding table Start-up Requirements Start-up Expenses Market Research Design Recruitment Rental space Others Total Start-up Expenses $7,000 $5,000 $1,000 $31,000 $10,000 $54,000 Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets $600,000 $41,000 $5,000 $500,000 $1,146,000 Total Requirements $1,200,000 Appendix 2: Sales forecast table Sales Forecast Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 11,500 11,500 11,500 11,500 12,000 12,000 12,000 12,500 12,500 12,500 12,500 13,000 6,500 6,500 6,500 6,500 7,500 7,500 8,000 8,000 8,000 8,500 8,500 8,500 7,000 25,000 7,000 25,000 7,000 25,000 7,000 25,000 7,500 27,000 7,500 27,000 7,500 27,500 7,500 28,000 8,000 28,500 8,000 29,000 8,000 29,000 9,500 31,000 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $23.00 $23.00 $23.00 $23.00 $23.00 $23.00 $23.00 $23.00 $23.00 $23.00 $23.00 $23.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $230,000 $230,000 $230,000 $230,000 $240,000 $240,000 $240,000 $250,000 $250,000 $250,000 $250,000 $260,000 $149,500 $149,500 $149,500 $149,500 $172,500 $172,500 $184,000 $184,000 $184,000 $195,500 $195,500 $195,500 $147,000 $526,500 $147,000 $526,500 $147,000 $526,500 $147,000 $526,500 $157,500 $570,000 $157,500 $570,000 $157,500 $581,500 $157,500 $591,500 $168,000 $602,000 $168,000 $613,500 $168,000 $613,500 $199,500 $655,000 45.00% $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 40.00% $9.20 $9.20 $9.20 $9.20 $9.20 $9.20 $9.20 $9.20 $9.20 $9.20 $9.20 $9.20 35.00% $7.35 $7.35 $7.35 $7.35 $7.35 $7.35 $7.35 $7.35 $7.35 $7.35 $7.35 $7.35 $103,500 $103,500 $103,500 $103,500 $108,000 $108,000 $108,000 $112,500 $112,500 $112,500 $112,500 $117,000 $59,800 $59,800 $59,800 $59,800 $69,000 $69,000 $73,600 $73,600 $73,600 $78,200 $78,200 $78,200 $51,450 $214,750 $51,450 $214,750 $51,450 $214,750 $51,450 $214,750 $55,125 $232,125 $55,125 $232,125 $55,125 $236,725 $55,125 $241,225 $58,800 $244,900 $58,800 $249,500 $58,800 $249,500 $69,825 $265,025 Unit Sales Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL 61g Total Unit Sales Unit Prices Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL 61g Sales Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL 61g Total Sales Direct Unit Costs Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL 61g Direct Cost of Sales Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL 61g Subtotal Direct Cost of Sales Appendix 3: Personnel Plan Personnel Plan General & Administration (G&A) Sales & Development (S&D) Advertising & Marketing (A&M) Labour Total People Total Payroll Oct $5,000 $7,000 $3,500 $4,000 30 Nov $4,000 $7,000 $3,500 $4,000 30 Dec $4,000 $7,000 $2,500 $4,000 30 Jan $4,000 $6,000 $2,500 $4,000 30 Feb $4,000 $6,000 $2,500 $4,000 30 Mar $4,000 $6,000 $2,500 $4,000 30 Apr $4,000 $6,000 $2,500 $4,000 30 May $4,000 $6,000 $2,500 $4,000 30 Jun $4,000 $6,000 $2,500 $4,000 30 Jul $4,000 $6,000 $2,500 $4,000 30 Aug $4,000 $6,000 $2,500 $4,000 30 Sep $4,000 $6,000 $2,500 $4,000 30 $19,500 $18,500 $17,500 $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 43 Appendix 4: Profit & Loss table Pro Forma Profit and Loss Oct $526,500 $214,750 $105,300 $320,050 Nov $526,500 $214,750 $105,300 $320,050 Dec $526,500 $214,750 $105,300 $320,050 Jan $526,500 $214,750 $105,300 $320,050 Feb $570,000 $232,125 $114,000 $346,125 Mar $570,000 $232,125 $114,000 $346,125 Apr $581,500 $236,725 $116,300 $353,025 May $591,500 $241,225 $118,300 $359,525 Jun $602,000 $244,900 $120,400 $365,300 Jul $613,500 $249,500 $122,700 $372,200 Aug $613,500 $249,500 $122,700 $372,200 Sep $655,000 $265,025 $131,000 $396,025 $206,450 39.21% $206,450 39.21% $206,450 39.21% $206,450 39.21% $223,875 39.28% $223,875 39.28% $228,475 39.29% $231,975 39.22% $236,700 39.32% $241,300 39.33% $241,300 39.33% $258,975 39.54% $19,500 $78,975 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $18,500 $78,975 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $17,500 $78,975 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $78,975 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $85,500 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $85,500 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $87,225 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $88,725 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $90,300 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $92,025 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $92,025 $16,667 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $16,500 $98,250 $16,663 $1,500 $2,500 $1,500 $2,000 $1,500 $2,500 $3,000 $129,642 $128,642 $127,642 $126,642 $133,167 $133,167 $134,892 $136,392 $137,967 $139,692 $139,692 $145,913 Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred $76,808 $93,475 $6,250 $17,640 $77,808 $94,475 $6,250 $17,890 $78,808 $95,475 $6,250 $18,140 $79,808 $96,475 $6,250 $18,390 $90,708 $107,375 $6,250 $21,115 $90,708 $107,375 $6,250 $21,115 $93,583 $110,250 $6,250 $21,833 $95,583 $112,250 $6,250 $22,333 $98,733 $115,400 $6,250 $23,121 $101,608 $118,275 $6,250 $23,840 $101,608 $118,275 $6,250 $23,840 $113,062 $129,725 $5,000 $27,016 Net Profit Net Profit/Sales $52,919 10.05% $53,669 10.19% $54,419 10.34% $55,169 10.48% $63,344 11.11% $63,344 11.11% $65,500 11.26% $67,000 11.33% $69,362 11.52% $71,519 11.66% $71,519 11.66% $81,047 12.37% Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales 20% Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Warehouse rental Utilities Telephone, Internet Water, electricities Securities Insurances Others 15% Total Operating Expenses Appendix 5: Cash Flow table Pro Forma Cash Flow FY 2013 FY 2014 FY 2015 Cash from Operations Cash Sales Subtotal Cash from Operations $6,903,000 $6,903,000 $9,111,960 $9,111,960 $13,667,940 $13,667,940 Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received $690,300 $0 $0 $0 $0 $0 $0 $7,593,300 $911,196 $0 $0 $0 $0 $0 $0 $10,023,156 $1,366,794 $0 $0 $0 $0 $0 $0 $15,034,734 $6,423,244 $0 $6,423,244 $7,745,792 $0 $7,745,792 $11,113,897 $0 $11,113,897 Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations 44 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $690,300 $0 $911,196 $0 $1,366,794 $0 $0 $100,000 $0 $200,000 $0 $200,000 $0 $0 $0 $7,213,544 $100,000 $0 $30,000 $8,986,988 $0 $30,000 $50,000 $12,760,691 $379,756 $979,756 $1,036,168 $2,015,924 $2,274,043 $4,289,967 Pro Forma Cash Flow Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep $526,500 $526,500 $526,500 $526,500 $526,500 $526,500 $526,500 $526,500 $570,000 $570,000 $570,000 $570,000 $581,500 $581,500 $591,500 $591,500 $602,000 $602,000 $613,500 $613,500 $613,500 $613,500 $655,000 $655,000 $52,650 $0 $0 $0 $0 $0 $0 $579,150 $52,650 $0 $0 $0 $0 $0 $0 $579,150 $52,650 $0 $0 $0 $0 $0 $0 $579,150 $52,650 $0 $0 $0 $0 $0 $0 $579,150 $57,000 $0 $0 $0 $0 $0 $0 $627,000 $57,000 $0 $0 $0 $0 $0 $0 $627,000 $58,150 $0 $0 $0 $0 $0 $0 $639,650 $59,150 $0 $0 $0 $0 $0 $0 $650,650 $60,200 $0 $0 $0 $0 $0 $0 $662,200 $61,350 $0 $0 $0 $0 $0 $0 $674,850 $61,350 $0 $0 $0 $0 $0 $0 $674,850 $65,500 $0 $0 $0 $0 $0 $0 $720,500 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations $845,415 $0 $845,415 $456,165 $0 $456,165 $455,415 $0 $455,415 $454,665 $0 $454,665 $524,740 $0 $524,740 $489,990 $0 $489,990 $508,533 $0 $508,533 $516,833 $0 $516,833 $523,321 $0 $523,321 $534,515 $0 $534,515 $525,315 $0 $525,315 $588,341 $0 $588,341 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent $52,650 $0 $0 $0 $0 $0 $0 $898,065 $52,650 $0 $0 $0 $0 $0 $0 $508,815 $52,650 $0 $0 $0 $0 $0 $0 $508,065 $52,650 $0 $0 $0 $0 $0 $0 $507,315 $57,000 $0 $0 $0 $0 $0 $0 $581,740 $57,000 $0 $0 $0 $0 $0 $0 $546,990 $58,150 $0 $0 $0 $0 $0 $0 $566,683 $59,150 $0 $0 $0 $0 $0 $0 $575,983 $60,200 $0 $0 $0 $0 $0 $0 $583,521 $61,350 $0 $0 $0 $0 $0 $0 $595,865 $61,350 $0 $0 $0 $0 $0 $0 $586,665 $65,500 $0 $100,000 $0 $0 $0 $753,841 ($318,915) $281,086 $70,336 $351,421 $71,086 $422,507 $71,836 $494,342 $45,261 $539,603 $80,011 $619,613 $72,967 $692,580 $74,667 $767,247 $78,679 $845,926 $78,986 $924,911 $88,186 $1,013,097 ($33,341) $979,756 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Net Cash Flow Cash Balance 10.00% 45 Appendix 6: Balance Sheet Pro Forma Balance Sheet Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Longterm Assets Total Assets Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep $600,000 $41,000 $5,000 $309,514 $391,340 $5,000 $369,369 $391,340 $5,000 $429,223 $391,340 $5,000 $489,077 $391,340 $5,000 $548,931 $391,340 $5,000 $593,914 $411,934 $5,000 $659,491 $411,934 $5,000 $709,618 $430,474 $5,000 $778,284 $430,474 $5,000 $846,951 $430,474 $5,000 $964,816 $430,474 $5,000 $934,420 $430,474 $5,000 $646,000 $705,854 $765,709 $825,563 $885,417 $945,271 $1,010,848 $1,076,425 $1,145,092 $1,213,758 $1,282,425 $1,400,290 $1,369,894 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $0 $16,667 $33,334 $50,001 $66,668 $83,335 $100,002 $116,669 $133,336 $150,003 $166,670 $183,337 $200,000 $500,000 $483,333 $466,666 $449,999 $433,332 $416,665 $399,998 $383,331 $366,664 $349,997 $333,330 $316,663 $300,000 $1,146,000 $1,189,187 $1,232,375 $1,275,562 $1,318,749 $1,361,936 $1,410,846 $1,459,756 $1,511,756 $1,563,755 $1,615,755 $1,716,953 $1,669,894 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Starting Balances Liabilities and Capital Long-term Liabilities Total Liabilities $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $400,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $400,000 Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $700,000 ($54,000) $0 $646,000 $1,146,000 $43,187 $689,187 $1,189,187 $86,375 $732,375 $1,232,375 $129,562 $775,562 $1,275,562 $172,749 $818,749 $1,318,749 $215,936 $861,936 $1,361,936 $264,846 $910,846 $1,410,846 $313,756 $959,756 $1,459,756 $365,756 $1,011,756 $1,511,756 $417,755 $1,063,755 $1,563,755 $469,755 $1,115,755 $1,615,755 $570,953 $1,216,953 $1,716,953 $623,894 $1,269,894 $1,669,894 $646,000 $689,187 $732,375 $775,562 $818,749 $861,936 $910,846 $959,756 $1,011,756 $1,063,755 $1,115,755 $1,216,953 $1,269,894 Net Worth Appendix 6: Ratio Analysis Ratio Analysis Sales Growth FY 2013 n.a FY 2014 32.00% FY 2015 50.00% Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets 29.21% 0.28% 83.47% 16.53% 100.00% 26.87% 3.46% 96.71% 3.29% 100.00% 23.92% 1.81% 99.48% 0.52% 100.00% 0.00% 22.04% 22.04% 77.96% 0.00% 6.59% 6.59% 93.41% 0.00% 0.00% 0.00% 100.00% 100.00% 39.29% 28.15% 15.00% 15.92% 100.00% 42.62% 26.69% 12.50% 23.36% 100.00% 47.29% 25.13% 9.17% 33.99% 0.00 0.00 22.04% 72.45% 56.48% 0.00 0.00 6.59% 73.12% 68.31% 0.00 0.00 0.00% 79.51% 79.51% FY 2013 11.14% 54.34% FY 2014 15.94% 51.19% FY 2015 22.16% 52.08% Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover 6.00 0.00 3.80 5.51 0.00 3.00 5.04 0.00 2.35 Debt Ratios Debt to Net Worth Current Liab to Liab 0.28 0.00 0.07 0.00 0.00 0.00 $1,514,806 14.90 $2,936,984 39.42 $5,785,979 224.40 0.26 0% 0.00 4.88 0.00 0.33 0% 0.00 3.21 0.02 0.43 0% 0.00 2.35 0.02 Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 46 PHẦN ĐÁNH GIÁ SẢN PHẨM THỬ Xin chào! Cảm ơn bạn dành thời gian tham gia khảo sát Bạn mời dùng thử sản phẩm sau sản phẩm trả lời số câu hỏi sản phẩm Thanks for your attendant to take this survey You will be in turn invited to test products and after each product, you will answer several questions related to that product DÀNH CHO Phỏng Vấn Viên: Thứ tự cặp sản phẩm thử đánh dấu : Sản phẩm (Orion Food Manufacture) - Product (OFM) Sản phẩm (Wrigley Manufacture) - Product (WEM) Sản phẩm (Lotte XYLITOL Manufacture) - Product (LXM) Đây ba sản phẩm mời thử Bạn vui lòng nhìn kỹ ngửi sản phẩm trả lời câu hỏi cách so sánh trực tiếp sản phẩm - Look into them carefully and smell them, and then answer the following questions in terms of comparison amongst the three A Tổng Quan Chung - Overview Q1: Về mặt hình dạng bên (hình dáng, màu sắc…), bạn thích sản phẩm hơn? Appearance (shape, color, ) Sản phẩm thứ - The first one Sản phẩm thứ hai - The second one Sản phẩm thứ ba - The third one Như - The same Không thích sản phẩm - Neither Q2 Xét mặt MÙI VỊ, bạn thích sản phẩm hơn? - AROMA Sản phẩm thứ - The first one Sản phẩm thứ hai - The second one Sản phẩm thứ ba - The third one Như - The same Không thích sản phẩm - Neither 47 B PRODUCT - SẢN PHẨM Bây xin mời bạn dùng thử sản phẩm trả lời câu hỏi sau Q1 Về tổng thể, câu sau mô tả mức độ thích hay không thích bạn sản phẩm này? - Your overall liking Không thích chút - Do not like it at all Không thích - Do not like it Bình thường - Neither like it nor dislike it Thích - Like Rất thích - Like very much Q2 Giả sử sản phẩm bán nơi mà bạn thường mua với mức giá chấp nhận được, theo bạn câu thể khả bạn mua sản phẩm này? Assuming that the product you found the price acceptable, which phrase best describes how likely would you be to buy the product you have just tried for yourself? Chắc chắn không mua - Definitely not buy Có thể không mua - Probably not buy Có thể mua mà không - Might or might not buy Có thể mua - Probably buy Chắc chắn mua - Definitely buy Q3 Câu sau mô tả mức độ thích hay không thích bạn vị sản phẩm mà bạn vừa dùng thử? - Your overall liking about the taste Không thích chút - Do not like it at all Không thích - Do not like it Bình thường - Neither I like it nor I dislike it Thích – Like Rất thích - Like very much Q4 Vui lòng cho biết nhận xét bạn HƯƠNG VỊ sản phẩm? - The FLAVOR 48 Quá mạnh - Very strong Hơi mạnh - Somewhat too strong Độ đậm đà với ý - Just right to what I like Hơi nhạt nhẽo - Bland Quá nhạt nhẽo - Very bland Q5 Cảm giác bạn sản phẩm nhai (về độ cứng/mềm hay độ dính răng) nào, xin lưu ý không tính đến yếu tố VỊ sản phẩm? - (about hardness, softness, or stick to teeth) Không thích chút - Do not like it at all Không thích - Do not like it Bình thường - Neither I like it nor I dislike it Thích - like Rất thích - like very much Q6 Bạn cho biết nhận xét bạn vị cay the sản phẩm? - The FRESHMINT TASTE Quá cay the - Too mentholated Hơi cay the - Mentholated Độ cay the với ý - Just right to what I like Không cay the - Not very mentholated Không cay the chút - Not mentholated at all Q7 Bạn cho biết nhận xét bạn độ dẻo/dai sản phẩm? - The ELASTICITY Quá dẻo/dai - Too elastic Hơi dẻo/dai - Somewhat too elastic Vừa với ý - Just right to what I like Hơi không dẻo/dai - Somewhat not very elastic Không dẻo/dai chút - Not elastic at all 49 Q8 Bạn cho biết nhận xét bạn hậu vị sản phẩm? - Your overall liking about the after taste Không thích chút - I not like it at all Không thích - I not like it Bình thường - Neither I like it nor I dislike it Thích - I like it Rất thích - I like it very much Q9 Xin vui lòng cho biết ý kiến chung bạn chất lượng (nói chung) sản phẩm vừa thử - The overall quality Very poor - Rất tệ Poor - Tệ Neither poor or good - Không tốt không tệ Good - Tốt Very good - Rất tốt Q10 Xin bạn cho biết ý kiến sản phẩm bạn vừa thử (thích không thích) - Your comment - LIKE - DISLIKE Bảng Câu Hỏi sử dụng cho sản phẩm & sản phẩm để có so sánh trực tiếp – This questionnaires are used for Product and Product 50 C PHẦN SO SÁNH SẢN PHẨM VỪA ĐƯỢC THỬ - COMPARISON AMONGST THREE TESTED PRODUCTS Q1 Xét tất mặt sản phẩm mà bạn vừa dùng thử, sản phẩm sau bạn thích hơn? - Which of the products you like more? Thích sản phẩm - Like Product than Thích sản phẩm - Like Product than Thích sản phẩm – Like Product than Như - The same Q2 Có nhiều yếu tố khiến bạn thích hay không thích sản phẩm thử Sau vài yếu tố, xin vui lòng cho biết yếu tố sau ảnh hưởng đến việc chọn lựa sản phẩm bạn - Which ones that affect your like/dislike the product Thích Sản phẩm 1- Thích Sản phẩm - Thích Sản phẩm - Như - Prefer first product Prefer second product Prefer third product The same - 4 - Độ dẻo dai – - - Hương vị Flavor Vị - Taste Độ cay Freshmint Elasticity Vị Sweetness Hậu vị Aftertaste Thank you for your attendant into our interview! – Cám ơn bạn tham gia buổi vấn chúng tôi! 51 BẢNG KẾT QUẢ SẢN PHẨM THỬ A – Overview Q1 2 Q2 B - Product test Q1 Q2 Q3 Product Q4 Q5 Q6 3 5 3 Q7 3 6 Q8 4 Q9 3 Q1 4 Q2 4 Q3 3 5 Product Q4 Q5 Q6 5 5 3 4 Q7 Q8 Q9 4 Q1 3 Q2 Q3 Product Q4 Q5 Q6 4 4 5 5 4 C – Comparison test Q1 Q2 Product Product Product The Same Flavor Taste Freshmint Elsaticity Sweetness Aftertaste Q7 Q8 4 Q9 3 ... Prices Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL 61g $20.00 $23.00 $21.00 $22.00 $25.30 $23.10 $26.40 $30.36 $27.72 Sales Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL. .. 2.4.f: Vietnamese perception rating – Source ACN 20 BUSINESS PLAN FOR ORION XYLITOL Orion s SWOT analysis Orion Business Plan 2.1 Sales Plan Sales forecast based on the strategy of the first year... Sales forecast table) Sales plan for a short-time years investment: Sales Forecast FY 2013 FY 2014 FY 2015 Unit Sales Orion XYLITOL Zipper bag Orion XYLITOL 31gr Orion XYLITOL 61g Total Unit Sales