VIETNAM INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS

Group: The Beasts

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Conclusion LES SAISONS CAF

Les Saison Caf Information

Discussion

Literature Review
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Les Saison Caf Information

Literature Review

Discussion

Since 2012, Vietnam has become the worlds leading coffee exporter
2000
13.00%

Present

50.00%

50.00%

87.00% Vietnam Other countries Vietnam Other countries

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Source: AFP

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Les Saison Caf Information

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Discussion

Revenue from coffee exporting over years (billion USD)

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2.5
2 1.5 1 0.5

0
2005 2006 2007 2008 2009 2010 2011 First 9 months of 2012

Revenue from coffee exporting over years Source: General Department of Vietnam Customs
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Introduction

Les Saison Caf Information

Literature Review

Discussion

Why have we chosen to open a coffee shop but not another type of business?
Low initial investments Low price pressure from the suppliers Popularity of coffee shops to teenagers

Available and adequate coffee supplier

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Les Saison Caf Information

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Discussion

Why Ho Chi Minh City???

Source: Vietnam Ministry of Agriculture and Rural Development (MARD) 11/2012

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Les Saison Caf Information

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Why Ho Chi Minh City???

Crowded center city

Saigonese

Coffee

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Les Saison Caf Information

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Why Ho Chi Minh City???

Already have place to carry out this proposal: 196 Su Van Hanh Street, Dist. 5, HCMC
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Introduction

Les Saison Caf Information

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Discussion

Small-size Big size, beautiful view high price. Some coffee shops have bad employees behavior to customers.

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Les Saison Caf Information

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Name Type of business Slogan Location Phone number Email address Facebook Open Hours Planning Opening date

Les Saison Caf Coffee shop Enjoy the flavors of seasons! 196 Su Van Hanh, Dist. 5, Ho Chi Minh City. (+84) 3 848 762 (+84) 934 008 803 lessaisonscafe@gmail.com Les Saisons or Les Saisons Page 9:00 A.M 11:00 P.M 29.10.2013

Area

120m2

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Introduction

Les Saison Caf Information

Literature Review

Discussion

- Become an attractive destination for not only young customers (teenagers, couples) but also for families or business persons. - Be the best place for entertainment with variety of activities, for delicious drinks at affordable price level. - Expand our business to other domestic regions and even be highlyreputed brand name to other countries.

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Introduction

Les Saison Caf Information

Literature Review

Discussion

Delivering delicious drinks at acceptable price level, Creating friendly environment for customers, Helping customers feel comfortable as they are at home, Listening to and understanding what customers really want, Non-stopped improvements in services quality, Qualified and well-training employees.

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Introduction

Les Saison Caf Information

Literature Review

Discussion

Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it
Michael Porter, Competitive Advantage, 1985, p.3
COMPETITIVE ADVANTAGE Lower Cost Differentiation

Broad Target COMPETITIVE SCOPE Narrow Target

1. Cost Leadership

2. Differentiation

3A. Cost Focus

3B. Differentiation Focus

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Introduction

Les Saison Caf Information

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Discussion

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Les Saison Caf Information

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Discussion

Marketing mix is originating from a single P (price) at the very beginning and then it has been developed into other three Ps which are product, promotion and place.

Net Present Value (NPV) of time series of cash flows is the difference between the Present value of total cash flows in the future and the initial investment. Payback period is the length of time before you recover your initial investment.
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Introduction

Les Saison Caf Information

Literature Review

Discussion

New entrants (Medium)

Suppliers (Low)

Internal rivalry (Medium)

Buyers (high)

Substitutes (Medium)
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Les Saison Caf Information

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Discussion

Strengths Location Ingredients Themedactivities Designs Sanitation Price

Weaknesses Budget Market share Management Scope limit Changing taste of customers

Opportunities Development Extension & Expansion Flexibility

Threats Existing competitors New entrants

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Introduction

Les Saison Caf Information

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Discussion

Coffee
Soda Iceblended

Icecream

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Les Saison Caf Information

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Discussion

Books and Chess

Winter Room Spring Room

Chocolate making

Autumn Room

Summer Room

Pottery crafting

Ice-cream making
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Les Saison Caf Information

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Discussion

Main competitive advantages: - Variety of services - Highly-visible and spacious location - Low ingredients costs (coffee) and low price level - Limited business scope

Product

Price

Place

Promotion

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Introduction

Les Saison Caf Information

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Discussion

Main customer segment: young customers (15-30 year-old) Main characteristics of drinks and services: change-to-adapt

Product

Price

Place

Promotion

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Les Saison Caf Information

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We commit that the price level will not change over 10% of last price at least in the first two years of operation.

Other coffee shop 40,000 80,000

Les Saison Caf 25,000 50,000

Product

Price

Place

Promotion

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Introduction

Les Saison Caf Information

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Discussion

- Business-to-customer (B2C): selling and providing products and services directly to customers at the address: 196 Su Van Hanh, Dist. 5, HCMC - After recovering investments and gaining some profits:

Product

Price

Place

Promotion

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https://www.facebook.com/man.pham.58152?ref=tn_tnmn#

Product

Price

Place

Promotion 25

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Les Saison Caf Information

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Initially estimated budget: VND 600 million Operating expenses: about VND531 million/year Labor cost: VND40,5 million/month Allocated expenses: VND5 million/month Projected sales growth rate: First year: 5%/year Second year: 10%/year Third year: 15%/year Fourth year: 20%/year Fifth year: -4%/year Average price: VND35,000 Average cost per cup: VND10,000 VND15,000
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Introduction

Les Saison Caf Information

Literature Review

Discussion

Chart for Net present value

$1,600,000,000.00 $1,400,000,000.00 $1,200,000,000.00 $1,000,000,000.00 $800,000,000.00 $600,000,000.00 $400,000,000.00 $200,000,000.00 $0.00 NPV

Payback period: 2 years

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 New air, new chance and new profit. Contact us at: lessaisonscafe@gmail.com or by telephone number: (+084)934-008-803

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 Cuong, K. (2013, March 14). VnExpress - Tin nhanh Viet Nam. Retrieved from VnExpress: http://vnexpress.net/gl/kinh-doanh/2013/03/moinguoi-viet-dung-1-15-kg-ca-phe-trong-nam/ E.Porter, M. (January 2008). The Five Competitive Forces Shape Strategies. Harvard University Review. Goi, C. L. (May 2009). A Review of Marketing Mix: 4Ps or more? International Journal of Marketing, 1-5. Horton, J. (2012). Understanding the 4Ps of marketing. Florida State University College of Business. Huong, N. T., & Quan, T. Q. (2012). Vietnam - Coffee Annual - 2012 Coffee Annual. USDA Foreign Agricultural Service. Viettrade. (2012, October 24). Vietnam Trade Promotion Agency. Retrieved from Vietnam Trade Promotion Agency: http://www.vietrade.gov.vn/en/index.php?option=com_content&view=art icle&id=1619:vietnams-coffee-products-export-in-first-9-months-of2012&catid=270:vietnam-industry-news&Itemid=232
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