COMPANY DINO CONTI ICECREAM

CAN THO UNIVERSITY COLLEGE OF ECONOMICS BUSINESS ENGLISH Chapter 2: COMPANIES Topic: COMPANY DINO CONTI ICECREAM LECTURER: PHAM LAN ANH GROUP 29 Pham Tien Anh B1607491 32 Nguyen Thi Duyen B1607643 37 Nguyen Nhat Tan B1607487 47.Tran Ngoc Nhu B1610906 48 Doan Thi Huynh Thanh B1610911 49 Huynh Nhut Thuy B1610915 School year: 2017-2018 LIST OF TEAM MEMBERS Student Codes Ordinal Numbe rs Pham Tien Anh B1607491 29 Nguyen Thi Duyen B1607643 32 Nguyen Nhat Tan B1607487 37 Tom-HR Manager Tran Ngoc Nhu B1610906 47 Conti-CEO Doan Thi Huynh Thanh B1610911 48 Alice-Production Manager Huynh Nhut Thuy B1610915 49 Jenny-CFO Name Name & Character David-Sales manager Lisa-Marketing Director INTRODUCE THE COMPANY Dino Conti Ice Cream Inc based in Santa Barbara (USA), manufactures and distributes mainly to supermarkets and company-owned stores Its most famous product is classic chocolate ice cream aka SupaKool label This situation has scenes: Scene 1: Report on the business situation of the company in the past months Scene 2: Reasons for falling profits Scene 3: Investment option Scene 4: End of meeting Scene 1: Report on the business company in the past months situation of the Paolo: Everyone has arrived now, so let’s get started Jenny, please report for the last three month Jenny: Okay, let’s begin company's profits As everyone has seen, our are declining First, I will give you some basic information Percent market share of the product as follows: classical SupaKool chocolate ice cream is proportion at most 41%, next six topselling flavor is 32%, another flavor is 14%, novelty product is 7% and the lowest is 6% ice yogurt The two flavors are Classic SupaKool chocolate ice cream and six top-selling flavors, accounting for 73% of sales, with the remaining flavors accounting for only 27% of sales Profits are not enough to pay for other expenses Paolo: Thank you, Jenny It’s true our result hasn’t been good So what are the problems we are facing? Invite Jenny to continue with her report Scene 2: Reasons for falling profits Jenny: Yes, there are issues we are facing: First, That is prices Our pre-tax profits have fallen once again It’s all very worrying Well, we know one of the reason: our two main competitors have been cutting their prices, so our prices are beginning to look rather high They’ve also been increasing their advertising spend to get a bigger market share Second, that is products We don’t offer a very wide range of flavors That’s not helping us, and our packing isn’t exciting, It gives the wrong impression It could be the reason why our classic product isn’t selling as well as it used to Third, that is equipment We need to upgrade our equipment and storage facilities… maybe our fleet of trucks as well- they’re terribly out of date Fourth, that is outlets We must reach more than big supermarkets and our own Fifth, that is the environment Paolo: Thank you, Jenny I see what you mean Now, we have $3 million to invest in our company so that it continues to expand and become an international business Here is an extract from a company profile that appeared in a business magazine recently I need to hear opinions from Alice, David, Lisa, Tom Scene 3: Investment option Alice: In my opinion, we should choose a solution to build a larger factory with an investment of US $2.4 million and donate ice cream on a large day of the year for an investment of US $600,000 With a total investment of million US dollars Build bigger factory: First, a larger and more advanced factory will reduce labor costs to the minimum and increase productivity and increase the number of products Meet the demand for quality and quantity of consumer products Second, when larger plants import a large amount of input material, we can negotiate with the supplier for the price, so the cost of production will decrease while improving public profitability Offering free ice cream one week before the big day like Christmas or Thanksgiving, we will first divide our customers into two groups The first group is customer friendly will receive more incentives The second group is new customers, will mainly be free of the new ice cream Because then the demand for ice cream starts to rise but it has not reached its peak With advertising activities, we can improve the image of the company and investigate the reaction of consumers Then the production division will have a basis to set a reasonable production plan Limit inventory risk Finally, there is the opportunity to thank the customer of the company Paolo: Good point! I would like to hear more opinions David: Thank you comments from Alice The solution you if out very interesting But in my opinion, producing more products should go along with improving the packaging Then our total investment would be $2.8 million Improve packaging Choosing the right packaging materials will prove that our company is very aware of the community and surrounding environment Creative packaging is a proven way to stand out from your competitors Packaging change can have a lot of impact on revenue, cost, and branding Some businesses change their packaging as a proactive strategy to increase sales, while others reduce costs Changing the colour, size, shape or other features of its packaging can make it stand out to consumers Graphics on the packaging can convey the message or evoke emotions in the consumer, based on the image and colour Reducing your packaging costs allows you to reduce your selling price Packaging can play a role in the success or failure of selling products Tom: The opinions of Alice and David are remarkable, but one very important thing that we missed Where will be the market for the product and how will we sell it? Paolo: Well, David, this is also the problem I want to set out, so what solution you have? Tom: Distributing to more stores: This is a cost-effective option for just $ 500,000, but it can bring real benefits to the company First of all, this is a franchise that has been very successful in parent companies such as KFC, Vinmart, Lotte, Jolibee, Baskin Robbin, etc The opening of a chain of stores will help the company broad market share Regaining the reputation of the company will also improve the company's ability to trade on the floor Second, the transfer of business practices throughout the chain of store systems will help the company meet the needs of consumers quickly and conveniently, limiting the choice of alternative products customer In addition, with the fast delivery system being developed at present, the distribution of products is very easy while solving the problem of inventory of the company David: How we make a strong impression on customers with such stores? Tom: Consumers are flocking to safe, non-toxic, green products People are becoming more conciliative of their choices and are willing to invest more in a product to participate in this movement and to protect their family Therefore, make the company more "green" with the cost is estimated at $ 400,000 The benefit is improving company image and sales Paolo: Finally, Lisa, I want to hear your opinion Lisa: After discussion and agreement, we chose the following options: First, upgrade equipment and truck fleet Second, export to China and Russia Third, increase its advertising budget The total cost is estimated at $ 2.9 million The reason we choose these options are: First, we choose Upgrade equipment and truck fleet with the investment of $1.2 million As everyone knows, the current growth rate of the company is declining due to: sales, products, equipment, and price…So we intend to upgrade its equipment and fleet of trucks to reduce costs, increase productivity and product quality Second, we choose export to China and Russia with the investment of $1.2 million These two countries are two difficult markets but a potential market for development Moreover, it will help Dino Conti quickly become an international business Third, invest in advertising budget The purpose of investing in two rigorous markets is to expand the market and improve reputation for the company, advertising is essential to creating momentum for development In addition, advertising investment can also increase distribution channels to increase sales Scene 4: End of meeting Option Cost (estimated) Time invested (months) Upgrade its equipment and fleet of trucks $1.2 million Distribute to more outlets $500,000 Make the company more ‘green’ $800,000 Improve the products’ packaging $400,000 Total $2.9 million Expected completion time is around September Time to put into operation is the last months ... Lisa-Marketing Director INTRODUCE THE COMPANY Dino Conti Ice Cream Inc based in Santa Barbara (USA), manufactures and distributes mainly to supermarkets and company- owned stores Its most famous product... mean Now, we have $3 million to invest in our company so that it continues to expand and become an international business Here is an extract from a company profile that appeared in a business magazine... etc The opening of a chain of stores will help the company broad market share Regaining the reputation of the company will also improve the company' s ability to trade on the floor Second, the