Foreign Trade University

E-COMMERCE FINAL PROJECT REPORT

Pet Care - The Pet Food & Accessories

Online Shop

Subject : Business System and Operation Management

Teacher : Dr. Nguyen Thi Hong Van

Group 9: Lê Thị Phương Mai - 1912250626

Phan Hà Trang - 1911150074

Nguyễn Thị Tú Uyên - 1912250032

Đinh Nông Hương Dung - 1911150021

Nguyễn Đức Hoàng - 1912250013

Class: TMAE306.3

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 TABLE OF CONTENT

I- Introduction: 2
II- Business Analysis: 2
1. SWOT 2
2. Porter's 5 forces model 3
3. Eight key elements of business model 5
4. 7Cs 8
5. 4Ps 10
6. STP 10
7. Milestone 11
8. Financial plan 12
III- Web presence 13
1. Gmail 13
2. Instagram 14
3. Wix 17
IV- Limitation: 29
1. Less contact with consumers 29
2. Difficult to expand reach 29
3. Charge commision 29
4. Customer service challenge: 30
V- Work evaluation of members: 30

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I- Introduction:

Nowadays, people are busy in their daily life and have a lot of stress from
their working area. Most of them would like to have a pet to accompany them in
their daily life and also can release the stress that they received. For example,
having a dog is a good choice for most people who want to have a pet. Dogs are
not only very good companions and also have deep emotional ties between
people. Dogs will protect the people by literally laying down their lives.

Therefore, the demand for food, accessories for pets has increased during
the recent years. As pet lovers and business students, we see the potential of
providing pet products in terms of both profit and positive social impact. This is
the strongest motivation for us to draw up the idea of opening an online shop
named “PET CARE".

PET CARE is a small online shop selling products for pets. Our passion is
to help you easily buy high-quality unique products for your "lover".We
strive to offer top-quality products at the best prices with good service to our
valued customers. Every product sold by us is guaranteed to have a high quality.
Each of them brings comfortability and safety for pets. All products are checked
carefully and in detail to make sure the product originated from reliable sources.

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We want to provide everything pet-lovers need for your pets in one place where
they can shop premium food, toys, and health care products. As people
recommend keeping your pets happy, healthy and feeling like part of the
family!

Moreover, we provide general pet care advice. Our website has a wealth of
practical information and advice on all aspects of pet parenting, while our
Instagram page will keep you updated on the latest news and developments
from the team at PET CARE.

II- Business Analysis:

1. CANVAS BUSINESS MODEL:

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 Key Partners Key Activities Value Propositions
Customer Customer Segments
Relationships
-Good pet -Selling products on -Provide a wide -Focus on -Customers who
products E-commerce variety of products customer are from 18 to 45
suppliers. platforms. with reasonable relationship years old.
-Delivery -Customize products prices. management. -Pet lovers
companies according to order of -Provide product - Offer after sale
customers customization and customer
-Provide general pet pet care advice services
care advice services.
-Social
responsibility
(create community
Key Resources to connect pet Channels
lovers, spread
-Human Resources: messages of We plan to
a team to package treating pets and utilize E-
goods for customer, animals). commerce
a team for customer website such
service, a team for as website,
marketing, a team Instagram
for operation and
finance
-Physical assets: a
storehouse,
computer.
-Money: for
marketing activities

Cost Structure Revenue Streams

-Pet products supplies Revenue from selling products for pet
-Marketing costs
-Salary costs
-Commission for e-commerce platforms

2. SWOT
a. Strengths

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 - We provide a variety of customized products which are unique at a
relatively cheap price.
- Our employees are dedicated and innovative, they are highly motivated to
offer customers products and services that suit their preferences. They also can
quickly capture the changeable taste of the customers.
- Various channels for customer benefits such as Google Site, Shoppee,
Instagram, Facebook, etc.
- Socially responsible (host adoption fair, neuter/spray,...).
- No shop rental fee (100% online business).
b. Weaknesses
- We have little brand recognition because we are new in the market.
- Limited start-up funds.
- The staff are young and inexperienced.
c. Opportunities
- People are becoming more and more caring and interested in their pets,
they are willing to pay more for the well being of their pets.
- Learning opportunities for the staff about business.
- Increasing pet communities online.
- Potential co-branding with pet grooming salons, pet shops, pet
accommodations, etc.
d. Threats
- Many similar online business models are in the market with a large
budget and big brand name.
- Fake products of famous brands at lower prices are popular.
- SME have difficulty in accessing prestigious suppliers, costs, custom
documents, etc.
- Ease of new market entrants with the similar model.
1. Porter's 5 forces model
a. Traditional Competitors

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 - Well-known digital shops selling products for pet with large revenue, for
example:
○ https://www.petcity.vn/
○ https://famipet.vn/
○ http://phukienpet.vn/
○ https://www.petmart.vn/
○ https://dogparadise.vn/
- Our strategy: We deal with them by our information system to lower
operation cost and lowest prices.
b. New Market Entrants
- New businesses might copy our model and compete with us later, they
tend to be passionate and have a strong will to defeat us.
- Our strategy: We continuously introduce new and unique products for
individual customers. We propose mass customization so that we can satisfy
specific preferences of everyone we serve.
c. Substitute Products and Services
- Fake products of famous brands and products made of low-quality
materials.
- Our strategy: We use our information system to enable a specific market
focus and serve this narrow target market better than competitors. Our
information system is able to analyze customer buying patterns, tastes and
preferences closely so that we can serve small target markets so buyers only
trust our company.
d. Customers
- The Internet raises the bargaining power of customers, who can quickly
find the lowest-cost provider on the web.
- Our strategy: We foster customer intimacy by giving them more decision
making power on our webs, continuously offer them benefits and give them our
genuine care so that we can attract and retain them.

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 e. Suppliers
- Procurement over the Internet tends to raise the bargaining power of
suppliers. They can also benefit from reducing the barrier to entry and from
elimination of distributors and other intermediaries standing between them and
their users.
- Our strategy: We utilize our information system to facilitate direct access
by suppliers to production schedules and even permits them to decide how and
when to ship supplies to us. This allows them more lead time in producing
goods. Hence, they will be more likely to enjoy the benefits of working with us
and prolong our business relationship
f. Value chain
- We first need to organize ourselves by deciding how we’re getting our
supplies and what supplies we are going to purchase.
- We would need to make sure our customer services are good enough to
take care of customers and advise products that are suitable for customer needs.
- We would have to make the customer pay for the services and product
and advise their puppy received while in our care. For this we would use a
transaction processing system to achieve this with the least amount of errors.
2. Eight key elements of business model
a. Value proposition (unique selling points)
- Sell a variety of products with reasonable prices.
- Customize pet apparel, especially amputees pet apparel.
- Socially responsible (host adoption fair, neuter/spray,...).
b. Revenue model
- Selling customized pet’s stuff,pet’s food.
- Main revenue stream: online sales via e-commerce platforms.
- Who pays: pet’s owner from the age of 20 to 35.
- How much is paid: under 1 million VND/product, we do offer volume
discount and feedback/affiliate discount.

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 - What’s paid: cash and credit.
- How are we paid: via COD or internet banking.
- For what is paid: purchase/order
c. Market opportunity
- Market : nationwide about stuff , focus mainly on Hanoi and HCMC
about food.
- We focus on the millenials. This is a potential market, capable of long-
term development and upgrading for businesses and according to the research,
64% of 18-29 years olds use instagram and 87% of customers search for
information online. People are becoming more and more caring and interested
in their pets. They care about nutrition and consider them as friends and family
members. To be more specific, 81% of people said they consider their pet one
of the greatest lover of their life, 20% said their pet are their true love, 68% pet
owners said they use alternative therapy to care for their medical and behavioral
conditions preventatively and almost 6 in 10 pet owners post their moment with
pet on internet. Moreover , they spend 77% of the cost of food, 23% of the cost
of accessories and care and more than 75% of users are willing to pay less than
1 million per pet a month.
- This is a statistic-based, well-rounded report with a large number of
respondents and conducted by an established corporation, indicating the trend of
buying food and caring pet continues to flourish in the future
d. Competitive environment
- Many similar online businesses are in the market.
- A huge shift from traditional to online business due to pandemic.
- Companies with potential capital have regular marketing campaigns on
social platforms.
- Fake products of famous brands at lower prices are popular.
- SME have difficulty in accessing prestigious suppliers, costs, custom
documents…

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 - Technology has been used to attract more customers, increase
experiences, then to raise margin profit and optimize procedures.
e. Competitive advantage
- Proficiency in the use of online platforms, such as Google Site, Shoppee,
Instagram, Facebook,…
- Employees are young, enthusiastic, creative, global- thinking, teamwork,
and hard- working.
- Goods are supplied at good quality at reasonable prices from. prestigious
suppliers. We have a variety of stunning, trending models which are suitable for
the youth.
- Capture quickly the changeable taste of the customer.
f. Market strategy
- Customer research: understand customer’s insights, identify customer’s
underserved needs.
- Market segmentation: millennials with average income.
- Marketing mix:
○ Product: pet accessories, customized pet apparel, especially
amputees pet apparel.
○ Price: affordable price.
○ Place: Instagram.
○ Promotion: ads, online contest (giveaways), coupons,
discounts
- Customer acquisition:
○ Using video content to increase engagement.
○ Do giveaways to increase organic awareness.
○ Leverage content marketing to improve SEO and keep
prospects engaged.
○ Use consistent branding and clear communication to
increase trust and authority.

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 ○ Run referral programs.
○ Implement a reward program to increase client retention.
○ Create an affiliate program.
○ Build partnerships and utilize their leads to promote our
product.
○ Leverage influencers that reach your target audience and
align to brand voice.
○ Ensure paid search campaigns are optimized based on
product, audience and geographic location.
- Customer’s loyalty and retention: Rewards, Relevance, and Recognition.
g. Organizational development
There are 2 main functions:
- Sales & Marketing: responsible for choosing sources of products,
categorizing products, packing goods for customers, and customer service,
managing Instagram Account and other online platforms of the shop.
- Finance: calculate net income (loss), expenses, revenue.
h. Management team
Culture of the business is efficiency, friendliness and caring. We have a few
employees, so we want to make a closed working environment where all of the
employees are friends and commit to work in the long run. Moreover, each
employee is aware of their responsibilities and strives to care for customers.
3. 7Cs
a. Context
- Our online channels are well-structured with many lighthearted images of
pets and pet products.
- The color palette of our webs is mainly pastel colors to make customers
feel pleasant and subconsciously enjoy our warm, lovely vibe.

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 - We also prioritize convenience as well as accessibility of the customers’
experience on our webs. Our wireflow is easy for customers to follow, thus,
makes it quick for them to purchase.
b. Content
- We focus on creating consistent messages which are helpful for our
customers such as tips for pet owners, “how to…” series, DIY series using
images, reels, videos, blogs, etc. beside displaying our products.
- We want to attract customers with our stories (our company’s own
stories, slide of life stories, stories about animals, etc.) and make the customer
journey on our webs similar to an adventure.
c. Commerce
- We offer full commerce functions for customers. For example: shopping
cart, digital bill, payment method, etc.
- We also ensure privacy and personal information of our web customers.
d. Connection
- We use multiple market channels for specific purposes (for telling stories,
for displaying products, for creating a community) and link it together.
e. Community
- It is our wish to create a customers’ community so that they can connect
with each other, ask for pet tips and connect their pets as well as their
friendship.
- We also make it easier for them to give their opinions on various matters
relating to the community and make it heard.
f. Customization
- We offer pet owner’s diverse customized products according to the pet’s
breed, age, personalities and special conditions.
- We have different approaches with each customer as well. We try to
make their connection with us as unique and genuine as possible.
g. Communication

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 - We aim to serve our customers 24/7, whenever they notify us, we can
provide them with direct chats, video calls, emails, in-app communication, etc.
- Interaction with customers using our social media’s posts is an efficient
way to communicate with them, we can answer their comments, reactions,
shares playfully, in a way that shows them our brand personality and our
genuine care for them along with their pets.
4. 4Ps

Product Price
● Food (200.000-1.200.000
● Dog and cat’s food
VND)
● Accessories
● Accessories (200.000-
● Customize clothes
3.600.000 VND)
● Customize clothes have special
prices to order

Place Promotion
● Online: Instagram, Facebook ● Sale event on holiday
fanpage, Website, other ● Discount on international pet
webshop... day, pet’s birthday
● Offline: Locate in HaNoi in the ● Sharing tips and feedback to
future get 5% discount on the next bill
● Pay in advance for customize
clothes to get 5% discount

5. STP

Segment People want to treat their pet like a lover.

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 Target Group Our focus will be on middle-aged female baby
boomers. This group represents the largest and most
affluent segment of the pet product market in
general and of pet owners in particular. This focus
will primarily manifest itself in the type of
marketing and advertising techniques we employ.

Positioning Petcare is a shop where you can find the suitable

products and many customize products.

6. Milestone

Date Milestone Assigner

August 10 2021 Create idea of project All team member

From August 10 to Develop the business All team member
August 19 2021 Value proposition, revenue Trang, Dung, Hoang
model, market opportunity

Competitive environment Mai

Competitive advantage Uyên

Organization development, Mai,Dung
Management team

August 26 2021 Design instagram, write All team member

content

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 7. Financial plan

Advertising in 6 The first 3 The next 3 Total in 6 month

months months months
Instagram 2.4 million/month 1.2 million/month 10.8 million
Google Ads 1 million/month 1 million/month 6 million
Total 16.8 million

Cost Quantity Amount (VND) Month Total

estimation
items
Staff Salary 2 sales online 5 million/staff full-time 6 126
1 pet nurse 5 million/nurse flexible- million
1 accountings time
6 million/staff full-time
Telephone 1 200.000 6 1.2
million
Internet and 1 300.000 6 1.8
Wireless million
Total 129
million

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III- Web presence

Instead of using traditional marketing such as television, print ads, etc, we

choose the online platforms to promote our project with much cheaper costs,
aim at our potential customers. After considering the advantages and
disadvantages of platforms, we come to the conclusion that Instagram and
Website are the best solution to spread the products and popularize them in the
community. The following parts will present detailed steps to build a successful
web presence.

1. Gmail
- ID: petcaresince21@gmail.com
- Password: ecommerce

To create any web presence, gmail is really important and necessary.

Because it helps to create an account to register the web platforms.

Step 1: Create an new business email

Figure 1-1 Gmail home page after successful account registration

Step 2: Develop network via email

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 - Write email-marketing.
- Send to potential customers.

Step 3: Customer relationship Maintenance

- Send a thank you email.

- Send a happy birthday email .
- Send email of giveaway and minigame.
2. Instagram

Instagram is one of the most popular social network platforms in Vietnam

with millions of users. Therefore, we utilize this platform to post pictures,
descriptions and videos of products. We also use a livestream function to
increase interaction with customers.

Figure 2-1 Official interface of Instagram account

- ID: petcaresince21@gmail.com
- Password: ecommerce

Step 1: Creating an instagram account

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 There are 2 ways to sign up for a new account:

- Customary signing up with your information.

- Signing in with an existing Facebook account.

We choose to sign up with our information

Step 2: Fill in the information

Change shop information as a business account.

Synchronize with the website account above to link with the website to
increase the reaction with potential customers as well as fulfill as much as
possible information without spending too much time.

Step 3 : Update product and information

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Step 4 : Maintain the content

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 NOTE: Hashtag is a great way to expose your content to a new audience,
especially if you can get featured in the Top section.

Your hashtags on the post will be shown in hashtag pages which contain all
the content associated with a specific hashtag. If someone searches for a post
and yours is the most recent with that hashtag, it will be the first thing they see
in the Recent section. Thus, using hashtags to categorize your posts according to
types of topic so that customers are able to find information about products
more easily.

#petcare_official #petsofinstagram #petlovers #pet #cat#dog #petcare

#petclothes #petoftheday #petfood #petcustomize #lovepets

3. Wix

Wix is a Cloud web development platform that allows users to build online
HTML websites and mobile websites, through the use of a drag and drop tool.
The most standout point of Wix is to easily add and remove features such as:
plugins, social networking, online marketing, email marketing, contact form,
etc.

- Link Wix: Home | Petcareshop (wixsite.com)

- ID: petcaresince21@gmail.com
- Password: ecommerce

Step 1: Login Wix

With the first user, you could choose to create an account, otherwise you
could use Facebook, Google or even Apple account to login Wix.

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 Figure 3-1 Gmail home page after successful account registration

Figure 3- 2 Dashboard of Wix after login account

Step 2: Plan content and website

- After choosing the template and content of the website, editing follows
the available template based on our customized website.

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 Figure 3- 3 “Pet Care Provider” template chosen

Step 3: Design and build website

- Adjust contents in the chosen template to suit your demands. For

example, we have changed the background color from blue to pink, the logo
into the dog image, or order of tabs in the Header sections.

Figure 3- 4 Pet Care interface after editing

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 - Upload products from your sources to Manage Products. When Products
window appears, click to add products into Collections, such as
Clothes, Collar, Foods, and Kennel.

Figure 3- 5 Products interface

- Design Product Page, Cart Page, and Thank You Page based on your
desire.

Figure 3- 6 Products Page interface

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 Figure 3- 7 Cart Page interface

Figure 3-8 Thank You Page interface

- Add information in Home, About Us, Activities and Contact Us sections.

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 Figure 3-9 Home

Figure 3-9 About Us

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 Figure 3-10 Contact Us

- Design in the same steps in the mobile website.

Figure 3-11 Mobile website

Step 4: Adjust SEO Basis

- For each section in tabs, you need to adjust the SEO basis to make it
convenient and easily search in Google for users.

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 Figure 3-12 SEO Basis in Home section

Step 5: Choose domain and publish web

- We choose a domain and host for the web and publish it.

Figure 3-13 Domain name of Pet Care Shop in Wix

Step 6: Promote and maintain website

- Upload and update the products with the latest information.

- Frequently receive reviews from the customers and fix the bugs on the
website.
- Try to attract new customers and bring them benefits from our service.

* Layout and special features of our website:

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 Figure 3-14 Home

Figure 3-15 About Us

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Figure 3- 16 Activities

Figure 3-17 Clothes

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Figure 3-18 Collar

Figure 3-19 Foods

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 Figure 3-20 Kennel

Figure 3-21 Product Page

4. Shopee:

In Vietnam, shopee is the most popular E-commerce platform with a lot of

interesting monthly promotion programs such as Sale 6/6,7/7 and so on.
Therefore, we decided to run a business account on this platform to boost the
sales as well as brand awareness.
Step 1: Open a business shopee account

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Step 2: Develop shopee channel:
- Decorate the channel by posting pictures

- Post products (pictures, description, price)

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 - Choose the suitable delivery company

IV- Limitation:

1. Less contact with consumers

With starting a pet store, there can be minimal face-to-face interaction,

which means it can be a lot more difficult to establish trust with your customers.

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We plan to post videos and images up there to view the details. Moreover, we
will livestream frequently to interact with consumers and to show the quality of
the products. We also implement giveaways and minigames to increase
interaction with consumers.

2. Difficult to expand reach

In Vietnam, there are a lot of people who don't use the Internet. Nonusers
include some people in the following groups:
○ People 65 and older
○ People with less than a high school degree
○ People with household income below 10 million VND
○ People who live in rural communities
As such, online stores cannot reach all prospective customers, whereas
physical stores like resale shops typically do. Therefore, we will utilize the
potential online customers to maintain relationships with the consumers.
Moreover, in the future, we may expand physical stores to expand reach and the
amount of potential customers.
3. Charge commision
Marketplaces can charge commission on every sale and fees can vary from
site to site. Before selling products on a marketplace, we will research so
carefully to make sure that we can gain profit from these platforms.
4. Customer service challenge:
As we are an online shop, it is difficult to meet pets and customers face-
to-face to care for pets carefully and frequently. Therefore, we will provide
excellent online customer services such as chat support, phone call,....

V- Work evaluation of members:

No. Name Task Hour Note

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1 Lê Thị Phương Mai Introduction, Limitation, 11
Cover page, Support
finishing web presence,
Canvas business model
2 Nguyễn Thị Tú Uyên Slides, Instagram design, 20
Value chain
3 Nguyễn Đức Hoàng 4Ps, Finance, Milestone 6
4 Phan Hà Trang Design Website, Web 18
presence report, Edit report
5 Đinh Nông Phương Dung SWOT, 5 Porter’s 14
competitive forces model, 8
key elements, 7Cs

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