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Southern Taiwan University of Science and Technology Entrepreneurship & Innovation, GMBA.

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Presentation on theme: "Southern Taiwan University of Science and Technology Entrepreneurship & Innovation, GMBA."— Presentation transcript:

1 Southern Taiwan University of Science and Technology Entrepreneurship & Innovation, GMBA

2 Executive Summary Company Description Industry AnalysisMarket AnalysisMarketing Plan Management Team and Company Structure Operations Plan Product Design and Development Plan Financial Projections

3 1. Executive summary Dolce BIO is an organic ice cream which is going to fill the market gap by a flavor- rich ice cream. It is not just an average ice cream such as may be found in grocery stores. It is an a traditional dessert with a taste of Italy that a customer enjoys in a likeable environment of a small, family-style patisserie.

4 2. Company Description Company Dolce BIO is going to start its business in Tainan, Taiwan Location is planned to be in the area of university campuses (This ensures a high number of flows of people walking around every day.) The company targets not only but mostly young consumers as these usually like sweets but are already educated enough to be aware of the importance of a right BIO decision when buying food

5 2. 1 Company History Dolce BIO Ice Cream is a new venture Does not have a real market experience in ice cream industry in Taiwan BUT: Certainly does have a potential to expand because of it advantages in: Detailed product and marketing strategy Uniqueness in the market Creative, young, highly educated managers team

6 2.2 Mission Statement To always make customers smile By serving the finest theyve ever tried Keeping customers happy and satisfied in environment organically designed 1% Dolce BIO 4 Trees

7 2.3 Products and services

8 2.3 Products and Services 1/2 Dolce BIO Ice Cream will sell creamy, flavor – rich and all-natural ice cream to every kind of customer with special focus on young people The ice cream will be sold through small-size attractively looking dessert restaurants In the front side of the restaurant will be a couple of tables and chairs surrounded by the green environment of the restaurants made by fruit trees and plants growing in big flowerpots

9 2.3 Products and Services 1/2 The patisseries are also going to offer a drink menu created by a home made, fruity, all- natural drinks (lemonade, milkshakes, coconut milk, water from coconuts, mineral water) The patisseries are going to be launched by part-time workers - students who are interested in environmentally friendly business and marketing

10 2.4 Current status The company is currently in a status of obtaining financial sources for its beginning stage The business plan is feasible: various business analysis were executed

11 Industry Analysis Industry size: Large if we look at an ice cream as a sweet product or smaller if we look at it from perspective of an ice cream product. Growth rate of an industry is fast. There are enough customers to satisfy most firms production capacity. Industry is attractive as it is: fragmented growing not crowded

12 Porters Five Forces Model - Threat of Substitutes We could say that all sweet end products can be a substitute for an ice cream if o person is thinking to purchase an ice cream to satisfy his/her desire for sweet product. If we think of an ice cream as a product desired as cold refreshment in a hot weather, substitutes could be other shops selling ice cream, popsicle, shaved ice, cold drink or tea. (Cold Stone, Ciao Bella Gelato, Haagen Dazs, 7 Eleven, Preso Tea, Coca Cola…)

13 Porters Five Forces Model - Threat of Substitutes However, the venture will be producing premium quality ice cream product. There are currently few competitors. In general, threat of substitutes is high, but can be less depending on a point of view.

14 Porters Five Forces Model - Threat of new entrants Barriers to entry are low. New competitors can easily enter the industry to copy what the industry incumbents are doing. There are low capital requirements; there are not substantial economies of scale, there are no government and legal barriers. Knowhow and recipe for preparing an ice cream is not a large barrier due to information technology. Threat of new entrants is high.

15 Porters Five Forces Model - Rivalry among existing firms There is a moderate rivalry in the industry. Differentiation of a product: Ice cream from 7 eleven is cheap and easy to prepare but has lower quality and only one taste. On other hand, our product will be more expensive, focusing on quality ingredients and therefore top quality product with many flavours, but also more time consuming to prepare. Rivalry among existing firms is moderate.

16 Porters Five Forces Model - Bargaining Power of Suppliers The venture will need suppliers from various local and organically grown sources. (fruit, milk) bargaining power of supplier is moderate. There are enough suppliers to provide a critical product to the venture as well as to a large number of other buyers. The profitability of the venture will therefore not be suppressed by bargaining power of suppliers.

17 Porters Five Forces Model - Bargaining Power of Buyers Bargaining Power of Buyers is low from a perspective of a venture as a buyer as well as ventures customers as buyers. In addition, there are only few locations in the city where a customer can purchase premium quality handmade ice cream.

18 Key Success Factors Location Competitive price Freshness Organic ingredients Advertisement Promotions

19 Industry trends Currently there is a trend in establishing ventures selling sweet food products in Tainan, especially ice-cream shops. Our proposed products will be made entirely using organic ingredients as a part of our competitive advantage. There is a growing trend adopted from western countries to produce and consume food product made of organic, non-chemical ingredients (no pesticides, no GMO production, no additives o colorants and no preservatives). Ingredients sourced from local production, produced from sustainable resources by a labour that is treated fairly. In addition the product will be low in fat and sugar.

20 Market Analysis Buyer behaviour analysis: There are customers willing to purchase premium products like sweet products, need refreshment in hot days, like products with taste of Europe, like foreign management and service

21 Competitor analysis Our research revealed there are several ice cream shops in Tainan city. Our main competitors regarding to quality of ice cream would include only 4 shops. Here we do not include ice cream from machine and shaved ice as the quality is lower.

22 Competitor analysis Direct Competition: There is already few handmade ice cream shops created in the city. Because they have shops only in few locations in Tainan city, there is plenty of place and customers for the proposed venture. In addition there was large growth of machine made ice creams available from convenient stores however; our venture is focusing on high quality, organic handmade ice cream therefore machine made and shaved ice is comparatively lower grade ice product. There is not a clear market leader. Competitors in an industry are about the same size.

23 Market segmentation and target market selection Geography location: First shop will be located in Tainan city as this is the area that a venture team knows very well. Location will be carefully chosen in an area of high number of potential customers. Preferably located close to large school or other location with a lot of pedestrians and location that is easily accessible. Demographics: Our target market include: both genders, all age categories (preferably 8-40), people with average income. Our target market are customers willing to pay a premium for an organic handmade ice cream.

24 5. Marketing plan Strengths Bio organic ice cream and juices Healthy products with rich flavor Unmatured market Product of Italy Inexpensive price Good location Weakness Not recognized brand Target market is a population with lower income Higher fixed cost Complex staff training Other competitors in the area Opportunitiess Lower price then competitors Matured market of key ingredients Warm weather for almost whole year, wide range of flavors Threats Potential difficulties to find perfect location Seasonality-cold weather for 2 months Lower market demand during the vacations Seasonality of ingredients Challenge to produce inexpensive ice cream with expensive ingredients SWOT

25 5. Marketing plan - 4P, Target Market Price 40 to 100 NTD per one full scoop of a luscious ice cream, juices from 40-50 NTD Place Near University Campus of STUT and Cheng Kung Product Ice cream which contains fresh organic fruit and pieces of a quality chocolate or nuts, fresh fruit juice Promotion University Campus, Facebook, Twitter, Flyers Target customers are students and people who live around the universities (children and scholars who will stimulate their parents to taste our product)

26 Social Media (Facebook, Twitter) Collect Email Addresses to introduce offer Membership cards with loyalty program and special offer for members Flyers Launch a Blog (eventually) 5. Marketing plan Acquire New Visitors (Cheap & Easy)

27 5. Marketing plan Overall marketing strategy

28 6. Management Team and Company Structure Lubica Belhadjova – president and founder of the company Michal Kriziak- Staff, Production, Distribution, Logistics, Emil Mazan- Customer relationship management, Sales and Marketing Anja Išek – Finance, HR, Interior designer

29 Management Team and Company Structure Anja Išek 4 years of experience in finance by working for successful entrepreneurs and for the international telecommunication company T- mobile Croatia Familiar with the Taiwanese financial laws and regulations MBA degree, Bachelor in Business Economy in Finance Familiarity with finance from her little age (parents own a bookkeeping firm) Familiar with the latest trends in interior design industry

30 Management Team and Company Structure Emil Mazan: More then 7 years of experience in customer relationship management, direct marketing and telesales by working for T-mobile Croatia. Proven record of sales, team management and customer retention Familiar with Taiwanese way of thinking Dedicated to improve service and customer satisfaction Dedicated to increase sales and to create diverse model of marketing mix MBA degree, Master of Public Policy and management

31 Management Team and Company Structure Lubica Belhadjova: Cross-cultural roots as well as university education Special interest in business strategy, green marketing and environmental protection Bachelor in Business Economics and Politics MBA degree

32 Management Team and Company Structure Michal Kriziak: He has a 5 years experience in a hospitality industry. His education background is in economics and applied geographic information systems. He is currently studying GMBA in Taiwan.

33 Management Team and Company Structure Lubica Belhadjova – president and founder of the firm Michal Kriziak - Staff, Production, Distribution, Logistics, Emil Mazan - Customer relationship management, Sales and Marketing Anja Išek – Finance, HR, Interior designer

34 Management Team and Company Structure

35 Operations Plan

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38 Interior would be designed with carefully selected furniture which has to be green, healthy preferably produced with recycled material Special focus would be on the colors (staff shirts, menus, interior have to be the same color) We would try to include some plants or herbs which is not possible to see in Taiwanese coffee, tea or ice-cream shops Sweet shop has to have recognizable quote logo statue in front to attract customers To finalize the operations plan we would carefully fulfill every term, rule or regulation to get the permit to work and do business legally and ethically.

39 Product Design and Development Plan From the beginning of the school year our sweet shop has to produce positive shock on the market, has to be recognized as different and new, also it has force people to talk about us and to recognize our value added We expect that positive grow in the beginning would rise much more then just exceed break even point It would be important to exceed break even point during the winter, at the time of coldest weather in Taiwan At that time we are planning the change the products, introduce flavors of the winter fruit in Taiwan to retain the customers Development status and tasks

40 Product Design and Development Plan During the spring, after 6 months, we would evaluate our offer and change the flavors if needed We would also evaluate business model, business itself and financials Still we hope that our idea as the business is feasible and that changes in the business would not be necessary Our primary objective and the goal is to establish brand name and recognition of local community to maintain our business above break even point during the summer, period when students are going home Development status and tasks

41 Product Design and Development Plan Challenges and risks Introduce the products Convince people that we are different Establish the brand Maintain business successfull during the winter Retain the customers Achieve recognition of local comunity Keep business model feasible

42 Financial Projections To finance the initial investment to support the business each member of management team will invest equal sum of money Owners' Investment Lubica Blehadova $ 10.000 Michael Kriziak 10.000 Anja Išek 10.000 Emil Mazan 10.000 Total Investment $ 40.000 Sources of Capital Capital Equipment List Furniture $ 10.000 Equipment 7.500 Machinery 12.500 Other 1.000 Total Capital Equipment $ 31.000 Startup Expenses Location and Admin Expenses Rent & Related Costs $ 2.000 Prepaid insurance 500 Pre-opening salaries 2.000 Other - Total Location and Admin Expenses $ 4.500 Opening Inventory ice $ 100 fruits 1.000 chocolate and nuts 500 additional flavors 100 other 100 Total Inventory $ 1.800 Advertising and Promotional Expenses Advertising $ - Printing 50 Shop Add 200 Total Advertising/Promotional Expenses $ 250 Other Expenses Permits $ 2.000 Total Other Expenses $ 2.000 Working Capital $ 450

43 Financial Projections Summary Statement

44 Financial Projections Breakeven Analysis Cost DescriptionFixed Costs ($)Variable Costs (%) Variable Costs Cost of Goods Sold $ 7.0001,0% Inventory $ 1.0002,0% Raw Materials $ 1.0002,0% Direct Labor (Includes Payroll Taxes) $ 5001,0% Fixed Costs Salaries (includes payroll taxes) $ 4.000 Supplies $ 1.000 Repairs & maintenance $ 100 Advertising $ 50 Car, delivery and travel $ 50 Accounting and legal $ 50 Rent $ 500 Telephone $ 50 Utilities $ 100 Insurance $ 50 Depreciation $ 80 Total Fixed Costs $ 15.530 Total Variable Costs 6% Breakeven Sales level =$ 16521

45 Financial Projections Cash Flow (12 months) Pre- Startup EST Sep.14 Oct.14 Nov.14Dec.14Jan.15Feb.15Mar.15Apr.15May 15June 15Jul 15Aug. 15 Total Item EST Cash on Hand (beginning of month) 50020.18039.86059.54079.22098.900118.580138.260157.940177.620197.300216.980236.66020.180 CASH RECEIPTS Cash Sales31.000 TOTAL CASH RECEIPTS31.000 Total Cash Available (before cash out) 31.50051.18070.86090.540110.220129.900149.580169.260188.940208.620228.300247.980267.66051.180 CASH PAID OUT Purchases (merchandise)1.000 Gross wages (exact withdrawal) 4.000 Payroll expenses (taxes, etc.) 5.270 Supplies (office & oper.)100 Repairs & maintenance100 Advertising50 Car, delivery & travel50 Accounting & legal50 Rent500 Telephone50 Utilities100 Insurance50 Other (specify) SUBTOTAL11.320 TOTAL CASH PAID OUT11.320 Cash Position (end of month) 20.18039.86059.54079.22098.900118.580138.260157.940177.620197.300216.980236.660256.34039.860

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