southern taiwan university of science and technology entrepreneurship & innovation, gmba
TRANSCRIPT
Southern Taiwan University of Science and TechnologyEntrepreneurship & Innovation, GMBA
Team CS:Emil MA1N0211Anja MA1N0206Lubica MA1N0212Michal MA1N0218
Table of Concept
Executive Summary
Company Description
Industry Analysis Market Analysis
Marketing Plan
Management Team and Company Structure
Operations Plan
Product Design and
Development Plan
Financial Projections
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.
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
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
2.2 Mission Statement To always make customers smile
By serving the finest they’ve ever triedKeeping customers happy and satisfiedin environment organically designed
1% Dolce BIO 4 Trees
2.3 Products and services
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
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
2.4 Current status The company is currently in a status of
obtaining financial sources for it’s beginning stage
The business plan is feasible: various business analysis were executed
Industry AnalysisIndustry 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 firm’s production capacity.Industry is attractive as it is:
fragmented growing not crowded
Porter’s 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…)
Porter’s 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.
Porter’s 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.
Porter’s 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.
Porter’s 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.
Porter’s 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 venture’s customers as buyers. In addition, there are only few locations in the city where a customer can purchase premium quality handmade ice cream.
Key Success Factors
Location Competitive price Freshness Organic ingredients Advertisement Promotions
Industry trendsCurrently 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.
Market AnalysisBuyer 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
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.
Competitor analysisDirect 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.
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.
5. Marketing plan
Strengths• B
io organic ice cream and juices
• Healthy products with rich flavor
• Unmatured market
• Product of Italy
• Inexpensive price
• Good location
Weakness• N
ot recognized brand
• Target market is a population with lower income
• Higher fixed cost
• Complex staff training
• Other competitors in the area
Opportunitiess• L
ower price then competitor’s
• Matured market of key ingredients
• Warm weather for almost whole year, wide range of flavors
Threats• P
otential 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
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)
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)
Dolce BIO Ice Cream tends to create positive boom in the market with it’s presence
Appearance of the shop would be different then our competitor's to attract the costumers and to make them to recognize our brand as different and unique
Each Sweet shop will have big colorful advertisement with the same colors as the menu, staff shirts and the ice-creams, in front of the stores will be big plastic ice-cream to attract customers to take a picture with it
Each Sweet shop will contain sofas and comfortable big colorful pillow seats and a small ‘living room style’ table. All interior parts will be made from organic materials to contribute to the ‘green’ and natural atmosphere of the Dolce BIO.
5. Marketing plan Overall marketing strategy
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
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
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
satisfactionDedicated to increase sales and to create
diverse model of marketing mixMBA degree, Master of Public Policy and
management
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 PoliticsMBA degree
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.
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
Management Team and Company StructureAdvisers:
Owners of similar sweet shops in Croatia and Slovakia:- Have more then 2 decades of experience in the business- Run their business over generations with the family- Secret recipes and knowledge- Responsible for staff training and education- Advising the company with the selection of machines
Owners of Taiwanese sweet shops or ice-cream shops- More then 10 years in the business- Advise how to adopt the product itself- Advise which flavor we have to offer- Advise where and when to buy the ingredients
Operations Plan
General operations plan 1’st phase: LOCATION
- find acceptable location near the campus or the university
- it has to be area very many students are passing, eating or just spending their day
- we believe that summer vacation would be the best time to find location, when students are going home and some businesses are closing as well
- Facility has to have 50-70 m2 with the backroom of 30-40m2 for the production of the ice-cream and juices
- Preferably it has to have outdoor space for terrace and parking space for the scooters and bicycles
Operations PlanGeneral operations plan 2’st phase: SELECTION AND PURCHASE OF A
MACHINERY
According to recopies of Italy sweet shop owners from Europe and advises for flavor variation of Taiwanese owner we have to define flavors of the products in order the set the menu- Our advisors form Europe will advise us which type of machines,
fridges and other equipment we have to buy and how to use them properly and efficient
- We would try to compare it with Taiwanese choice and selection of a machinery and try to notice and understand the differences
Operations PlanGeneral operations plan 3’st phase: S TA F F R E C R U I T I N G , E D U C AT I O N A N D
T R A I N I N G
As we would intensively search for the location, we would also search for the young, cool workers willing to learn and to earn an extra money They have be students Able to speak English Have to be different then the others Have some prior experience by working in tea shop or restaurant
They will be motivated by higher salaries and benefits of the work During their vacations they will be educated and trained how to make
and produce fine rich flavor and bio ingredient ice-cream Process is easy, the key are ingredients and recipe
Each member of management will be guided through training as well
Operations Plan
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.
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
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
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
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 ListFurniture $ 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
Financial Projections
Sources of CapitalOwners' and other investments $ 40.000 Bank loans - Other loans - Total Source of Funds $ 40.000
Startup ExpensesCapital equipment 31.000 Location/administration expenses 4.500 Opening inventory 1.800 Advertising/promotional expenses 250 Other expenses 2.000 Working capital 450 Total Startup Expenses $ 40.000
Summary Statement
Financial ProjectionsBreakeven Analysis
Cost Description Fixed Costs ($) Variable Costs (%)Variable Costs
Cost of Goods Sold $ 7.000
1,0%
Inventory $ 1.000
2,0%
Raw Materials $ 1.000
2,0%
Direct Labor (Includes Payroll Taxes) $ 500
1,0%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
Financial ProjectionsCash Flow (12 months)
Pre-Startup
ESTSep.14 Oct.14 Nov.14 Dec.14 Jan.15 Feb.15 Mar.15 Apr.15 May 15 June 15 Jul 15 Aug. 15 Total
Item EST
Cash on Hand (beginning of month) 500 20.180 39.860 59.540 79.220 98.900118.580138.260157.940177.620197.300216.980236.660 20.180
CASH RECEIPTS
Cash Sales 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000
TOTAL CASH RECEIPTS 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000 31.000
Total Cash Available (before cash out) 31.500 51.180 70.860 90.540110.220129.900149.580169.260188.940208.620228.300247.980267.660 51.180
CASH PAID OUT
Purchases (merchandise) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Gross wages (exact withdrawal) 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000
Payroll expenses (taxes, etc.) 5.270 5.270 5.270 5.270 5.270 5.270 5.270 5.270 5.270 5.270 5.270 5.270 5.270 5.270
Supplies (office & oper.) 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Repairs & maintenance 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Advertising 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Car, delivery & travel 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Accounting & legal 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Rent 500 500 500 500 500 500 500 500 500 500 500 500 500 500
Telephone 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Utilities 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Insurance 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Other (specify)
SUBTOTAL 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320
TOTAL CASH PAID OUT 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320 11.320
Cash Position (end of month) 20.180 39.860 59.540 79.220 98.900118.580138.260157.940177.620197.300216.980236.660256.340 39.860
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