HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

AND INFORMATION TECHNOLOGY

DEPARTMENT OF BUSINESS ADMINISTRATION
---------***--------

SMALL BUSINESS
MANAGEMENT
BeU

Student’s name 1: Trần Thị Cẩm Quỳnh ID: 19DH120613

Student’s name 2: Cao Minh Tiến ID: 19DH480850

Class:

Instructor:

Ho Chi Minh City, December 2021

Contents
1.Introduction...................................................................................................................................1

1.1 Product introduction..............................................................................................................1

1.2 Objectives..............................................................................................................................1

1.3 Mission..................................................................................................................................1

1.4 Keys to success......................................................................................................................2

1.5 Start-up expenses summary...................................................................................................2

1.6 Company ownership..............................................................................................................3

1.7 Management team..................................................................................................................3

2. Product and service evaluation....................................................................................................5

2.1 Product description................................................................................................................5

2.2 Company location and facilities............................................................................................5

2.3 Competitive comparison........................................................................................................5

2.4 Sourcing.................................................................................................................................6

2.5 Future product........................................................................................................................6

2.6 Market growth.......................................................................................................................7

3. Feasibility assessment..................................................................................................................8

3.1 Executive summary...............................................................................................................8

3.2 The business concepts/value proposition...............................................................................9

3.3 Industry analysis..................................................................................................................10

3.4 Market Analysis...................................................................................................................12

3.5 Management team/Organizational structure........................................................................16

4. Strategy and Implementation Summary....................................................................................18

4.1 Strategy Pyramid.................................................................................................................18

4.2 Value Proposition................................................................................................................18

4.3 Competitive Edge................................................................................................................19

 4.4 Marketing Strategy..............................................................................................................19

4.5 Sales Strategy.......................................................................................................................22

5. TOWS Matrix............................................................................................................................25

6. Financial performance forecasting............................................................................................27

6.1 Break-Even Analysis...........................................................................................................27

6.2 Projected Profit and Loss.....................................................................................................28

6.3 Projected Balance Sheet......................................................................................................29

6.4. Exit Strategy.......................................................................................................................29

7. Conclusion.................................................................................................................................31

References
List of tables

Table 1. 1 Start-Up Expenses and Assets (Unit: VND)...................................................................2

Table 3. 1 Personnel Plan (Unit: million VND)............................................................................17

Table 4. 1 Annual Sales Forecast (Unit: VND).............................................................................23

Table 6. 1 Break-Even Analysis (Unit: VND)...............................................................................27

Table 6. 2 Pro forma Profit and Loss (Unit: VND).......................................................................28

Table 6. 3 Pro Forma Balance Sheet (Unit: VND)........................................................................29

List of figures

Figure 1. 1 Highlights......................................................................................................................8

Figure 3. 1 Frequency and Occasions of going to coffee shops....................................................13

Figure 3. 2 Popularity of shops by type.........................................................................................13

Figure 3. 3 Reason to choose.........................................................................................................14

LIST OF ABBREVIATIONS

Numerical Symbols of Full writing

order Abbreviations
1 HUFLIT Ho Chi Minh city University of Foreign
Languages – Information Technology
 Product: BeU

1.Introduction
1.1 Product introduction

BeU is a specialty cafeteria which is in a unique position to blend our passions for music
and coffee, allowing our clients to enjoy the best of both worlds in their own amazing
place, both extroverts and introverts, in two distinct room at the same cafeteria. A place
where people can enjoy drinks in the setting that makes them feel most at ease at their
own choices based on their unique comfort. BeU is also the place where customers prefer
to go on weekends to unwind while listening to Acoustic live music.

BeU specializes on high-quality hot and cold beverages, with a focus on specialty
coffees, smoothies and other customized beverages. Soft beverages, freshly baked
croissants, and other desserts will be available for purchase at BeU.

BeU will concentrate on two key target audiences:

 Students and white-collar workers who require a place to study, work, socialize,
and relax in their own environment.
 The coffee lovers and music fans who are passionate about coffee and music come
to enjoy beverages and relax at the same time. (làm band nhạc cuối tuần)
 Đối tượng nghiêng về CSR

1.2 Objectives

BeU has set three objectives for the next three years, which are as follows:

 Successful market entry

 Expand and diversify services
 Developing a template for expansion
 Open another cafeteria on Cao Thắng Street, district 10, Ho Chi Minh city (tìm
đúng địa chỉ)
 Ý thức về bảo vệ

1.3 Mission

BeU has followed fourth missions, which are crucial to our success:

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  Product mission: Provide highest-quality beverages to consumers

 Customer service mission: Provide and educate customers about the café space in
a manner that is aligned with the personality group chosen by them (extrovert
versus introvert space) cảm thấy thoải mái khi vào đúng ko gian => bán dịch vụ
 Community mission: Contribute to the nonprofit organization with whom we
collaborate (marketing concept hướng ra nước ngoài ví dụ đóng gói trà => kích
tiêu dùng - newcomers to marketing)
 Economic mission: Make solid business decisions to run and develop the store
profitably (tăng GDP, tăng thị phần, sức cạnh tranh)

1.4 Keys to success

BeU's success is based on four factors, three of which are similar to those found in any
Food and Beverage company. The Customer Service Mission and Community Mission,
the fourth and fifth keys, are what earn BeU the extra level of public esteem.

 The greatest places are those that are highly visible and have easy access for target
customers.
 The best merchandise, with the freshest espresso beans, cleanest hardware, the
nicest serving compartments, and most consistent flavor.
 Servers who are well-trained, cheerful, skilled, professional, and eloquent are the
most personable.
 The most novel customer service model, which is centered on customer
experience and education.
 The best reputation, which spreads word of mouth about our community mission
and charitable contributions.

1.5 Start-up expenses summary (của tụi kia kkkkk nhưng lòng ko vui)

The following tables detail the BeU's startup costs and funding. The majority of this
money will go toward building the first location, paying deposits, and providing cash for
six months' worth of operational expenditures, early stock, and other one-time expenses.
For the first several months of operation, BeU will require operating funds.

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 Table 1. 1 Start-Up Expenses and Assets (Unit: VND)

Start-Up Requirements
Start-Up Expenses:
Legal 2,000,000
Equipment 80,000,000
Labor (6 months) 168,000,000
Land Lease (6 months) 180,000,000
Design expense 40,000,000
Supplies expense (6 months) 66,670,000
Advertising expense (6 months) 32,000,000
Utilities expense (6 months) 30,000,000
Miscellaneous expense (6 months) 6,000,000
Identity/Logos/Stationery 3,000,000
Total Start-Up Expenses 607,270,000
Start-Up Assets
Cash Required 25,000,000
Start-Up Inventory 10,000,000
Long-Term Assets 50,000,000
Total Assets 85,000,000
Total Expenses and Assets 692,270,000
Back-up cash 77,730,000
Total Requirement 770,000,000

1.6 Company ownership

BeU is a cafeteria owned by two members, Ms. Quynh and Mr. Tien, who both have
260,000,000 VND in equity and 250,000,000 VND in cash raised from relatives, friends,
and angel investors. When BeU's funding is completed, Quynh and Tien will own 68
percent of the shop. (mô tả công ty cổ phần)

1.7 Management team

Ms. Quynh has been chosen by BeU to take on the role of manager. She holds a degree in
international business administration from the Ho Chi Minh City University of Foreign
Languages and Information Technology (HUFLIT). She worked as a server in a local
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coffee shop and a Japanese restaurant during her studies, giving her practical exposure in
the food and beverage business. An entrepreneurial spirit, experience and leadership,
which make her the ideal manager for BeU.

Mr. Tien, who also holds a HUFLIT degree in international business administration, will
take over as an accountant due to his strong financial resource management and
bookkeeping skills. He worked as an accountant for a business during his undergraduate
years, which allowed him to hone his statistical analysis and computer skills.

(mô tả các cổ đông đầu tư: job, background)

+ kế toán => biết về nghiệp vụ máy tính

+ chạy marketing

+ quản lý chuỗi

+ tìm nhà phân phối

+ R&D (cho ý tưởng sp)

+ HR

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2. Product and service evaluation
2.1 Product description

BeU's main product is gourmet roasted coffee, available in flavors like mocha,
Frappuccino, and brewed coffee. A smoothie line of wild berry, strawberry, peach,
mango, and lemonade will be available to complement the coffee. The modest menu line
will be completed with pastries from an outside source, which will be freshly prepared
and delivered every day. The pastry offerings fluctuate seasonally, but muffins, breads,
cookies, and scones remain the mainstays.=> thêm trà thảo mộc + mô tả menu kĩ vô
(phân mục nướ uống + bánh)

BeU provides two types of areas that are at our customers' discretion based on their
nature, where they may feel at ease and be themselves because they are not forced to hide
their true selves and are surrounded by others who are similar with them. (dựa trên
nghiên cúu hành vi đối tượng KH cụ thể là introvert và extrovert – điều gì thu hút h ọ để
tạo không gian thỏa mãn đúng mục đích của họ)

+ decor thêm k gian bv mtrg => => ko quá chú trọng sp nhiều mà bán dv

Furthermore, on every weekend, we cooperate with HUFLIT's fundraising music club to

perform acoustic music at our coffee shop, with 5 percent of the revenue going to charity.

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Each of BeU's baristas will receive extensive training in the art of brewing, mixing, and
delivering high-quality coffee. BeU will sell quality items featuring the BeU trademark,
such as coffee cups, through its company profile on social media channels.

2.2 Company location and Facilities

BeU is located on Cao Thang Street, District 10, Ho Chi Minh city which is close to the
Ho Chi Minh University of Foreign Languages and Information Technology (HUFLIT)
and the Asian International School, which highly visible and have easy access, and it is a
lively and energetic environment that is ideal for our target clients.

We have modern amenities like coffee machines, musical instruments, display bookcases,
and simple toys for small groups of friends. BeU is unique in that we generate two
distinct spaces for consumers to pick from, each with its own set of slogans, directions,
and artwork, as well as varied table and chair arrangements.

2.3 Competitive comparison

In the retail coffeehouse sector, BeU sees itself as a competitor. We do acknowledge,

however, that its products are up against competition in the form of coffee, soft drinks,
tea and smoothies.

The main rivalry for BeU will come from three directions:

o The coffeehouse chain, such as Starbucks, Highland Coffee and The Coffeehouse
o Cafés that are owned and operated by locals

BeU stands out among its competition for two reasons:

 BeU offers high-quality hot and cold beverages, as well as a diverse product line
of coffee, tea and snacks.
 Decor 2 k gian đối lập + bảo vệ mtrg => Customers can enjoy their own personal
area while having beverages, studying, working, meeting peers, and listening to
acoustic music. + educate customer
 We had music concerts on the weekends, which helped improve our revenue
stream, and we donated 5 percent of that revenue to the HUFLIT charity
organization because we collaborate with the university's music fundraising club
in order to hold the events. The live music cafe model is not discriminating,
especially when it comes to pleasant and peaceful Acoustic music. When their
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 friends appreciate it, even folks who don't have a particular taste in music can
become guests.

2.4 Sourcing (tụi nó kkkk)

BeU has arranged vendor agreements with a number of local catering services and coffee
merchants, all of whom are known for their quality and dependability. Coffee beans from
Moar Farm, Perfectto Vietnam, Phadin Coffee, and Sunshine Equipment are among the
equipment providers. We also have wholesale purchasing arrangements with FUJI
FRUIT Clean Fruit Company, ABC Bakery and Coca-Cola for other items. FPT
Company provides BeU with computer equipment and Internet access.

2.5 Future Product

BeU will provide items that change with the seasons and client demand for beverages.
BeU will counter decreasing hot beverage sales with frozen coffee drinks, smoothies, and
other cold beverages throughout the hot summer months. During the holidays, BeU will
provide unique beverages, such as muffins during the Christmas season.

In the future, there will be in-store sales for home purchases and an internet store.

+ phát triển chuỗi = nhân quỹ từ thiện

+ đa dạng sản phẩm (trà lài, đóng gói coffee, tìm tiếp nhen) => tiêu thụ ở TT nước ngoài

BeU endeavors to prioritize customers' needs, listen to them to determine which products
and services they prefer, and then fulfill them.

2.6 Market growth (tụi kia kkkk)

According to a poll conducted by Vietnambiz, the amount of coffee-cocoa produced in

Vietnam will reach 1.8 million tons in 2019-2020. In 2020-2021, Vietnam will have
finished harvesting 70% of its Robusta coffee. According to a Tuoi Tre Online poll, in
spite of the increasing competition of domestic coffee shop, coffee and flavored coffee
product consumption is quickly increasing, with 40% of coffee users in Ho Chi Minh
City purchasing their beverages from coffee shops. In TPHCM, the entrepreneur
consumes the most coffee (26.3%), followed by students.

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3. Feasibility assessment
3.1 Executive summary

BeU is a one-of-a-kind cafeteria. We prioritize the customer experience and create spaces
that represent both extrovert and introvert characters, as well as a location where
customers want to unwind on weekends while listening to Acoustic live music. BeU
focuses on high-quality hot and cold beverages, with a focus on specialty coffees,
smoothies, and other customized beverages. BeU will also sell freshly baked croissants
and other sweets. BeU will penetrate the students, office employees and who love coffee
and music by designing the facilities and the concentrated environment in addition to
music player in a prominent and easily accessible position. (mô tả thêm ý môi trg)

Aside from delivering a high-quality product and a varied array of tempting choices, we
will give up to 5 percent of earnings of every weekend to university charities to improve
consumer awareness and loyalty, as well as generate positive press and media support.

BeU understands the importance of the customer experience in our coffee shop, and it
will be the top priority in our strategy, as a result, one of the most key differences
between BeU and rivals will be our financial commitment in our décor. This technique is
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used to fund facility and equipment capital expenditures. We shall keep a small amount
of inventory to keep our products current and make advantage of price reductions as they
come up.

To cover start-up expenditures, BeU expects to raise 770,000,000 VND (Cao Minh Tiến)
in a combination of investments and short- and long-term finance. BeU's growth will be
slower than it could be otherwise, but it will be consistent, financially solid, and driven
by consumer demand.

BeU's ambition is to become a coffee shop chain with its own brand that can franchise
across the country, with the short-term goal of expanding its capabilities by opening a
second store in District 10 within three years. This model also offers a lot of potential
risks if we don't plan ahead of time:

 Customers will leave if the band's quality is low.

 It would be tough to attract clients if BeU is unable to select a suitable location
and furnish the cafe in an appealing manner.
 In comparison to many other models, the investment capital is relatively high.

By the third year, BeU aims to be financially secure enough to open a branch in Ho Chi
Minh City's District 3, which is considered the city's core and has a high level of living.
However, we recognize that severe industry competition will diminish BeU's profits
while also rising expenditures. BeU has the edge it needs to make the exit strategy viable
by understanding and planning for these risks.

The estimates for BeU's revenue, gross profit, and net income for the first three years of
operation are summarized in Figure 1.1 By year 3, we estimate a net worth of
1,686,152,954 VND, based on 2 locations of BeU. (CMT)

9
3,500,000,000

3,000,000,000

2,500,000,000

2,000,000,000

1,500,000,000

1,000,000,000

500,000,000

0
Year 1 Year 2 Year 3

Total Sales Gross Margin Net Income (Loss)

Figure 1. 1 Highlights
3.2 The business concepts/value proposition

BeU offers a significant value proposition in the Vietnamese market because our major
mission is to demonstrate and educate customers about a place where they may enjoy
drinks in a setting that makes them feel most at ease in their local environment. (thêm ý
cộng đồng, nhiều hơn là quán coffee bình thường đến để chill mà còn góp phần XH)
Customers also choose to visit BeU on weekends to unwind while listening to live
acoustic music. In addition, our major products, specialty coffee, tea, smoothies, and a
variety of pastries, will be available for purchase in our shop, which will offer high-
quality things at a reasonable price.

BeU is also adding tremendous value to the society on behalf of its clients. BeU will give
up to 5% of every purchase a customer makes from us during a live music event to
charity.

3.3 Industry analysis

In recent years, Vietnam has seen a considerable increase in coffee consumption. Roasted
coffee was worth 78.49 percent (CMT) more to customers than instant coffee, according
to a survey. Customers choose to drink roasted coffee with friends or alone in the
morning, unlike other establishments. The bulk of them chose to drink coffee while
taking in the view in a tranquil and a comfortable environment. The majority of
coffeehouse companies use Arabica seeds as their main ingredient, yet such beans are
expensive and difficult to farm in Vietnam. As a result, BeU uses Vietnam's original

10
Robusta beans as the main ingredient and enhances the flavor of the recipes to appeal to
Vietnamese palates.

3.3.1 Distribution Patterns

In the current context, social progress necessitates an increase in coffee consumption.

Administrators and producers have been contacted to accommodate this demand, and
they have driven the marketplace to find the best cost-effective solution. To Vietnamese
customers, coffee may appear to be a western-style beverage. The BeU experience is
inspired by the roots of roasted coffee in Vietnam. The strong degree of rivalry among
coffee shop chains, as well as the number of startups deciding to create coffee shops,
demonstrate that there are still development potential in this sector, particularly in Ho Chi
Minh city. With a completely new concept in customer service, BeU believes that its
special characteristic of prioritizing customers' selections with their own personalities and
community concerts will be an advantage differentiating BeU from the competition.

3.3.2 Main competitors

In the BeU market, there are three main competitors: coffeehouse chains such as locally
owned and run cafés; rồi hướng đến các brand reputation trong tương lai như Starbucks,
Highland Coffee, and The Coffeehouse

- The coffeehouse chains: Highlands Coffee will maintain its position as Vietnam's
leading coffee chain in 2020, the disparity between the two groups will have
remained stagnant. The entire revenue was at 2,140 billion VND, a slight decrease
from the previous year. The second place has been mixed, with The Coffee House
falling to third place due to a relative reduction. Starbucks' predicament is
extremely similar to that of The Coffee House. These two coffee chains had a total
income of 700-800 billion VND.
Because of the following advantages, the BeU claims it has a considerable
advantage beyond these companies:
 With Café Acoustic live music, you can easily make an impression, attract
clients, and not be discriminating.
 Unique customer service
 Community benefit

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 - Local Cafés: The established locally owned café is BeU's toughest opponent. The
BeU is aware of the local café's commitment to quality and pride in the products it
sells to its customers. Customers those frequent local cafés are usually devoted
and well-informed. A well-established café's beverage quality is superior to that of
regional or national chains.
Because of the following, BeU has a competitive edge over local cafés:
 Café Acoustic live music
 Unique customer service
 Supply trade credits
 Consistent menu
 Community benefit
 High-quality product
- Other Competition: BeU recognizes as it has developed a market presence, others
would want to imitate it. BeU, on the contrary, feels that, while imitators will
emerge, they will not be able to reproduce its corporate objective, organizational
architecture, or consumer value offer. BeU will examine its products, locations,
service, and mission on a regular basis to ensure that it stays to be a dominant
player in the specialized beverage industry. (tạo ra giá trị KH cao hơn => KH thấy
xứng và vừa đủ để ý quán => mấy tụi khác khó bắt chước)

3.3.3 Industry participants

On the same street as BeU, there is an acoustic coffee shop called May acoustic. Others,
such as Weta Coffee, 1985 Coffee Saigon, Phiêu Acoustic Café, and Say Acoustic, are
located in District 10. The majority of them, however, lack the traits of a charitable
mission and innovative customer service values. Starbucks, Highland Coffee, The
Coffeehouse, and locally owned and run coffee shops or "cafés" are among the premium
coffee service industry's other players.

3.4 Market Analysis

BeU will concentrate on two key target customers:

 Students and white-collar workers who require a place to study, work, socialize,
and relax in their own environment. (vào coffee đúng mục đích)

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  Giáo dục nâng cao ý thức
 The coffee lovers and music fans who are passionate about coffee and music come
to enjoy beverages and relax at the same time.

3.4.1 Market Segmentation

Students and office employees studying and working in universities and businesses in Ho
Chi Minh City, particularly District 10. This is a group of people who consume a lot of
coffee and hold a large section of the population. BeU established two separate space
styles for students and office employees based on two primary personality types:
introverts and extroverts. In addition, every weekend, BeU hosts Acoustic music events
to draw a crowd of music fans who may enjoy drinks while listening to shows.

According to top10tphcm, Ho Chi Minh City has a population of almost 9 million people
with 40% of coffee drinkers in the city purchasing their beverages from coffee shops.
Therefore, we have a market potential of 3.6 million customers. (CMT)

According to the Q&ME poll (2015), they looked at all publications on coffee behavior,
consumption, and enjoyment to draw the following conclusions:

Figure 3. 1 Frequency and

Figure
Occasions
3. urce:ofQ&ME
going to coffee shops
 The most popular option is independent, non-chain cafes.
Source: Q&ME

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  Females prefer chain cafes, whereas men prefer regular shops in greater numbers.
 The most important factor that contributes to the popularity of independent cafés
is the availability of space.
 The chain cafes were chosen based on their brand and taste.

Figure
Figure 3.3. 2 Popularity
3 Reason of shops by type
to choose
Source: Source:
Q&ME Q&ME
The ratio of independent shops go higher as age goes older. Local shops are more
popular among males.

Those who shop at chain stores value good taste and brand, whereas those who shop at
independent stores value the atmosphere. The local store is based on price.

3.4.2 Target Market Segment Strategy

Students, and white-collar workers are the target clientele which get a large portion of the
city population. They meet for coffee not only to converse, but also to exchange
information, study, create the network, and work.  To get an accessible location that
customers can go to, BeU is located to schools and businesses, meeting the store's criteria
of being easy to find, easy to identify, eye-catching, having parking, and having a lovely
and reasonable view.

We have joined with a fund-raising club of HUFLIT, and thanks to the media, we have a
customer base of HUFLIT students with all of the schools surrounding, thanks to the

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community assistance program that BeU is establishing. The proceeds from the concerts
of live music will be deducted by 5% to aid to the university organization’ charity.

3.4.2.1 Market trends

Market trends

In Vietnam, the consumer market for coffee is currently growing stronger. Coffee chains,
in particular, such as Starbucks, The Coffee House, Highland Coffee, City Garden Cafe,
and others, are expanding their presence in Vietnam, increasing product saturation.
Coffee shop owners must be very innovative in how they run their businesses, coming up
with new concepts to meet changing customer wants. Young people are one of today's
true diners, looking for comfortable, eye-catchingly furnished venues where they can
have coffee, socialize with others. As a result, the coffee shop industry has become more
diverse and innovative, with a variety of models and design styles, including the event
cafe concept.

For example, Phieu Acoustic Café, a live music cafe in Ho Chi Minh City's District 10,
offers a magnificent classical atmosphere, letting go of the spirit in the music played with
a variety of topics. BeU, on the other hand, makes a difference not only through live
music, but also through assisting individuals in discovering their own unique
personalities. BeU is also convinced that they serve delectable food and beverages and
are tastefully adorned.

The market is eager for a firm to enter the market that provides a high-quality, specially
blended product in a relaxing setting where individual customers may feel at ease at a
price that is competitive with other coffeehouses.

3.4.2.2 Market growth (CMT)

According to a poll conducted by Vietnambiz, the amount of coffee-cocoa produced in

Vietnam will reach 1.8 million tons in 2019-2020. In 2020-2021, Vietnam will have
finished harvesting 70% of its Robusta coffee. This is a plentiful domestic supply that we
take advantage of with competitive rates and high-quality raw materials, highlighting the
distinctive Vietnamese coffee beans through our skilled baristas.

According to a Tuoi Tre Online poll, in spite of the increasing competition of domestic
coffee shop, coffee and flavored coffee product consumption is quickly increasing, with

15
40% of coffee users in Ho Chi Minh City purchasing their beverages from coffee shops.
In TPHCM, the entrepreneur consumes the most coffee (26.3%), followed by students.
According to top10tphcm, Ho Chi Minh City has a population of almost 9 million people
with 40% of coffee drinkers in the city purchasing their beverages from coffee shops.
Therefore, we have a market potential of 3.6 million customers.

3.4.2.3 Market needs (CMT)

The usual household coffee consumption continues to rise dramatically, according to

statistics from the Trade Promotion Agency (VIETTRADE). Crop 2014-2015 is 2.08
million bags (equal to 125,000 tons), representing a 4 percent increase over 2013 - 2014.

The daily demand is approximately 13.7 million cups which is a large amount. And,
given that coffee is the second most popular beverage in the world after water, it's easy to
see why domestic coffee is so popular and expensive. Vietnam is the world's second-
largest exporter of coffee and has the world's highest coffee consumption. From there,
coffee users' desire is increasing year after year. It also presents chances and problems for
individuals who are running or planning to start a coffee shop. Coffee shop business units
and suppliers should usually pay close attention to space arrangement and training.
Management of employee recruiting prior to the start of the business. Opportunity if done
correctly, this can be a very profitable enterprise.

3.5 Management team/Organizational structure

The company would be very flat; the bulk of BeU's staff will be engaged in
manufacturing, and our goal is to have a small group of qualified managers in place who
can assist people in making decisions that benefit our customers.

BeU is owned by two individuals, one of them serves as store manager and the other as
accountant. The café will initially hire two baristas, two full-time waiters, and a security
guard. (thuê đứa chạy marketing (dài+ngắn), tuyển nv & đào tạo, tính kế toán c ủa sales
từng tháng)

The baristas will be in charge of the entire production process, including the preparation
of every delicious cup of coffee and other beverage. Due to the limited financial
resources and opportunities to learn about the industry, the rate of customer perceived
value of BeU, both managers and servers perform sales and marketing roles. So that the

16
owners may alter their business model to meet the changing needs of their clients and
foster a positive workplace culture for their staff.

In the second year, the café intends to hire one more full-time barista and two part-time
waiters. This is due to increased customer knowledge of the BeU, as well as our
community mission, which contributes to word-of-mouth marketing to attract new
customers. During the same year, we worked closely with the accountant to develop an
Internet-based information system, collaborate with a mobile app in the delivery service,
and raise the amount of money spent on social media advertising in order to reach a
larger audience.

We hope to see a significant increase in sales and brand exposure in the third year, as we
plan to operate a second coffee shop in district 10. As a result, we intend to engage two
shift managers for each store so that the owner can concentrate on long-term expansion
and development of the BeU coffee chains. (kế hoạch mở rộng => thay vì tìm nhà phân
phối thì tự làm nhà máy)

Table 3. 1 Personnel Plan (Unit: million VND) (tụi nó kkkk + lưu ý đọc đoạn trên vì
thay đổi position)

Position Year 1 Year 2 Year 3

Full-time barista 84 84 96
Full-time barista 84 84 96
Full-time server 60 60 72
Full-time server 60 60 72
Security Guard 48 48 54
Full-time barista 84 84
Part-time server 25.2 25.2
Part-time server 25.2 25.2
Shift manager 108
Shift manager 108
Security Guard 48
Total personnel cost 336 470.4 788.4

17
4. Strategy and Implementation Summary

By building facilities and a concentrated setting, in addition to a music player in a highly

prominent and accessible place, BeU will infiltrate students, office personnel, and those
who enjoy coffee and music. (love nature) BeU specializes in high-quality hot and cold
beverages, with a particular emphasis on speciality coffees, smoothies, and other
customizable drinks. Freshly made croissants and other goodies will be available for
purchase at BeU.

In addition to providing a high-quality product and a diverse menu of delectable options,

we will donate up to 5% of weekend earnings to university charities to increase consumer
awareness and loyalty, as well as generate favorable press and media exposure.

4.2 Value Proposition

An acoustic performance from BeU delivers a substantial value offer because our
consumers want to find locations to relax, listen to instrumental music, and then enjoy
their coffee, assuming they have the time to remain over the cup.

BeU's concept is that a consumer enters BeU, reads the instruction board, and evaluates
the ambience inside the two different rooms we offer. (tìm cách để KH phân biệt 2 khu
vực) Then customers purchase the product that is completed swiftly and correctly,
receive a high-quality product at a low price, and enjoy their dinner after just investing a
short amount of time in the process.

18
BeU is also adding substantial value to the society on behalf of its clients. Every time a
consumer makes a purchase from us, BeU will give up to 5% of every purchase a
customer makes from us during a live music event to a charity.

4.3 Competitive Edge

Apart from providing a high-quality product at a reasonable price in an acoustic setting

that make our customer relax, there is a unique customer service we have pursuit.

The competitive advantage that we want to achieve and maintain is that we purposefully
construct two unique locations within the same shop, one for introverts and one for
extroverts (thêm lợi thế trách nhiệm XH). By doing so, we hope to leave our customers in
the environment that they prefer, which is completely chosen by them. Our role is to
instruct, serve, and tell stories to them, educate them on the differences between
characters so that they can better understand themselves. Customers do not strive to fix in
a spot that they do not like; instead, if it is more convenient for them, they can choose
alternative rooms.

4.4 Marketing Strategy

+ Long-term:

BeU will reach and attract a diverse range of customers by hosting weekend music events
with the participation of youth groups. Customers will enjoy a calm and friendly
atmosphere at live music events, which are organized in a simple rustic manner.
Customers can also enjoy excellent drinks at the bar. As a result, BeU will launch a low-
cost advertising campaign that comprises traditional media such as a few carefully placed
outdoor advertisements. However, because a large number of our target clients are
students and office workers, we will make heavy use of social networking technologies.

Through its community support initiative, BeU concentrate on developing connections

with schools and charitable groups to deliver positive publicity. When BeU donates to
these organizations, they will spread the word about BeU to their students, teachers, and
partners. Word-of-mouth advertising has long been regarded as one of the most effective
marketing strategies available to businesses. Furthermore, we would encourage the media
to cover BeU's charitable activities, providing the company extra visibility every time it
sends a check to a nonprofit organization.
19
+ Short-term:

BeU will also make use of social media marketing tools like Instagram, Facebook,
YouTube and Twitter. We'll email our page to our fans to let them know where our
acoustic concerts will be held. On Facebook, we'll also announce the beverage and event
locations. On YouTube, we release our video about the music events at our shop.

+ tốn phí chạy marketing nhiều để tăng độ tin cậy

+ nhờ trung gian để bán đơn order (Gojeck, Baemin, …)

+ dùng customer để pro cho customer

To boost brand recognition of BeU Café shop, we plan to use both online and offline
marketing strategies. Our multi-pronged marketing plan will strive to raise awareness of
our company among potential customers as well as maintain long-term relationships with
current customers through ongoing communication.

4.4.1 Offline Marketing Strategy

4.4.1.1 Product:

Because we recognize that the product is very generous, BeU specializes in caffeine
products. For guests who cannot drink coffee, we also give various drinks and snacks to
supplement their flavors. Furthermore, the seasonal product based on the BeU brand
raises the client's level of correspondence.

 BeU's main product is Robusta coffee, which is one of the main constituents.
Espresso, coffee mocha, filter coffee, cold brew, and Frappuccino blended
beverages are also part of the coffee product range. Starbucks company is known
for its generously brewed, perfectly roasted coffee.
 Additional products/services: soft drinks, fruit tea, smoothies, pastries like
muffins, cake, bread, and snack
 Seasonal products/services: Christmas blended expresso, muffins; special edition
products, products for festivals such as Christmas and Valentine's Day (mug
coffee)
 Product/Service support: Payment by card, MoMo, etc… if customers do not use
cash

20
4.4.1.2 Price: (tụi nó)

* Pricing approach: When first entering the market, BeU would not place a high value
on profit, which helped to attract a large number of potential clients. BeU gradually won
over the hearts of customers after fully infiltrating the market, and profits began to rise.

* Pricing strategy: The average price of Starbucks Coffee is from 40,000 VND to
120,000 VND; Highland Coffee and The Coffee House is from 30,000 VND to 60,000
VND. BeU’s average price is between 20,000 to 50,000 VND is the usual pricing.
Customers can sit in a tranquil, comfortable location with a variety of entertainments at a
reasonable price.

4.4.1.3 Place

BeU uses a direct sales channel to offer its products (direct to end users). The brand
acquires focuses through picking the suitable location for the intended interest group, in
addition to establishing an impression with a dense presence in key urban centers. BeU‘s
store is located in easy-to-find, easy-to-park locations, nearby schools and universities,
where have an eye-catching street view.

In addition, we intend to interface with a delivery app so that our product may be picked
up for home purchases.

4.4.1.4 Promotion (tụi nó)

Because BeU's target audience are students and office workers, the company aims to hold
events like buy one, get one free (stationery) on Vietnamese Teachers' Day, or accrue
points when an invoice is worth more than 200,000 VND. BeU has three different
advertising campaigns:

(1) In the first year, customers who spend over 200,000 VND on items will earn
points in BeU's system. For example, a customer who purchases an item costing
201,000 VND will receive 1 point, while an invoice worth 202,000 VND would
receive 2 points. Customers who acquire a large number of points have the option
of exchanging 1 point for 1,000 VND to be deducted from their next purchase.
(2) In the second year, customers who purchase more than 500,000 VND per bill, can
join BeU member by registering BeU card are launched by us. After that,

21
 customers have accumulated 1,000,000 VND on their card, they will receive a 5%
discount on your next purchase, as well as other special member offers.
(3) We'll make updates on our social media platforms about daily promotions on
chosen items. Seasonally, we develop valuable contents that may engage our
customers through story sharing and comments. And the winner who have the
most interactions on their wall will receive two months of free coffee from BeU,
as well as other prizes.

4.4.2 Online Marketing Strategy

4.4.2.1 Website

BeU will feature a straightforward website that lists its gourmet coffees, smoothies, and
pastries are available, as well as the location, map, and operating hours. The website will
also have a calendar of any future events or sponsorships. Social media profiles, such as
Facebook, Instagram, and Pinterest will also be available on the site.

4.4.2.2 Social Media Platforms

The introduction of social media sites like Facebook and Twitter has profoundly altered
how businesses connect with BeU clients and it can reach a huge number of potential
customers. These platforms allow businesses to engage in a two-way conversation with
their customers on a regular basis. We intend to make the most of these social media
platforms by developing a presence on Facebook, Twitter, Pinterest, YouTube and other
platforms. For social media communication, our knowledge and enthusiasm for coffee,
music, and fundraising will be a perfect fit.

These accounts are created to attract new customers while keeping the current customers
by posting photographs, updates and videos as well as responding to customers quickly.
Besides, its admirers and followers are able to respond to new posts by giving likes and
posting comments. As a result, they provide additional marketing benefits such as an
advanced customer service through increased engagement and an additional area for
creatively connecting with BeU audiences.

4.4.2.3 Blog

We can use blogs to position our organization as a go-to source for music event’s
information, showcase the quality of our product and service, and demonstrate our
22
knowledge to potential clients, just like we can with social networking sites. At the same
time, the blog's regular updates encourage readers to visit our website more frequently,
resulting in a deeper, longer-term relationship with our consumers.

4.5 Sales Strategy

To improve sales revenue, BeU will employ the following strategies:

 The focus of the menu will be on the most profitable goods. The café's most
profitable items will always attract customers.
 Monitor flavoring inventory - Having too much flavoring on hand costs money
and takes up precious back-room storage space. The café will offer 4-6 different
alternatives, including some that are sugar-free.
 Reduce food waste and theft by evaluating sales and inventory records to see how
much food is thrown away due to poor preparation, returned drinks, and employee
misuse.
 Monitor and analyze the operation's progress

Organize sales competitions among employees: Baristas are the salespeople, and they
have a lot of say in how customers order. All baristas will receive some form of sales and
customer service training in order to make each transaction active rather than passive.
Sales competitions will focus on high-margin items or cross-selling.

4.5.1 Sales Forecast (tụi nó)

In the first year, BeU plans to open the first acoustic café on September 7, located in Cao
Thang Street, District 10. Each facility will be built in a few weeks by BeU. We predict
that on weekdays, we sell 100 cups of coffee and other beverages for 35,000 VND on
average, and that on weekends, thanks to the music events we host, sales will be around
160 on Saturday and Sunday.

The sales prediction predicts a modest 5-percent increase in revenue in year Two,
followed by a 7-percent increase in year three at two locations of BeU as expected. The
graph below depicts sales projections for the next three years.

Table 4. 1 Annual Sales Forecast (Unit: VND)

Annual Sales Forecast Year 1 Year 2 Year 3

23
 Weekday 924,000,000 970,200,000 2,076,228,000
Weekend (Saturday and 537,600,000 564,480,000
1,207,987,200
Sunday)
Total Sales 1,461,600,000 1,534,680,000 3,284,215,200
Cost of Sales
Total salaries and wages 336,000,000 470,400,000
788,400,000
expenses
Material expenses 133,340,000 141,340,400 299,641,648
Sales Commissions 6,720,000.00 9,408,000.00 15,768,000.00
Total Cost of Sales 476,060,000 621,148,400 1,103,809,648
Gross Margin 985,540,000 913,531,600 2,180,315,552

4.5.2 Sales Programs

At BeU, there will be employee sales competitions – Baristas are salesmen that have a lot
of power over the ordering procedure of customers. To complete each transaction, all
baristas will be required to receive sales and customer service training. High-margin
items and cross-selling will be the emphasis of the sales competitions.

24
5. TOWS Matrix

BeU is in a unique position to blend our passions for music and coffee, allowing our
clients to enjoy the best of both worlds in their own amazing place. We developed a list
of our strengths and weaknesses, as well as prospective opportunities and dangers to the
firm, using detailed market research, competition analysis, and customer surveys. The
table below summarizes the TOWS analysis.

Table 5. 1 TOWS Matrix

Opportunities (O) Threats (T)

o High population density, o There are too many

large population
o Cafes for events are
becoming increasingly
popular.
o Assemble a group of
potential clients.
TOWS Matrix o To generate an additional
cash source, create a
professional website.
o Use social media sites to
develop better, long-term
relationships with
customers.
o Potential for new clients as
a result of planned growth.
competitors
o Customers would leave if
the band's quality is low
o Customers would leave if
the space offered do not
satisfy their needs
o Run out of working capital
o New entry into the coffee
shop market could affect
revenue.

Strengths (S) SO Strategies ST Strategies

o Location is highly visible o Attract potential customers o Keep track of and analyze
and close to schools, on the area and on the the progress of operation.
office buildings Internet o Monitor flavoring
o A relaxing environment o Material sources are stable inventory
25
 for every customer o Create a unique o Control waste and theft
o Offer a wide range of competitive edge o Strengthen brand
beverages o Open another coffee shop o Develop products/services
o Trained and friendly
employees
o A competitive price
o Host Acoustic music event
o Up-to-date equipment

Weaknesses (W) WO Strategies WT Strategies

o A newly opened shop with o Raise capital o Horizon management
no regular clients o Strengthening ties with skills by learn other’s
o Lack of business and many bands experience
managerial experience o Widen partner circle o Integrating or establishing
o Limited investment o Conduct online business our own supply to cut cost
o Bands and singers aren't o Create more promotions
compatible.

26
6. Financial performance forecasting

The sales estimate predicts that in year two saw a 5-percent rise in revenue, followed by a
7-percent increase in Year three at two BeU locations. The analysis examines economic
seasonality, with earnings spikes on specific days (days of music events) and troughs in
slower months. Nonaccrual accounting is used for sales.

BeU recognizes the importance of the customer experience in our coffee shop, and it will
be a major focus in our strategy. As a result, one of the most significant differentiators
between BeU and competitors will be the financial investment in our décor. This
technique is used to fund facility and equipment capital expenditures. To keep our
products fresh and take advantage of price discounts as they arise, we shall keep a modest
amount of inventory on hand.

BeU plans to raise 770,000,000 VND in a combination of investments and short- and
long-term financing to pay start-up costs. BeU will have to develop more slowly than it
could otherwise, but it will do it in a consistent, financially stable, and customer-driven
manner.

6.1 Break-Even Analysis

BeU estimates its break-even point to be 94,498,933.33 VND per month, based on an
average revenue per unit of 35,000 VND and fixed operational costs of 80,653,333VND
per month. This equates to selling 2,700 cups of coffee every month, or 80 cups per day.

Table 6. 1 Break-Even Analysis (Unit: VND)

Break-Even Analysis
Monthly Units Break-Even 2,700
Monthly Revenue Break-Even 94,498,933.33

Assumptions
27
 Average Per-Unit Revenue 35,000
Average Per-Unit Variable Cost 5,128
Estimated Monthly Fixed Cost 80,653,333

6.2 Projected Profit and Loss

BeU expects to grow rapidly over the following three years, with robust sales and a solid
gross profit margin by the end of its first year. Expenses would total about 525,380,000
VND in the first year, resulting in a net profit of roughly 255,628,000 VND.

Aside from the 60 percent production costs, which include actual product purchases and
commissions for sales efforts, as well as expenses for rents, equipment leases, utilities,
and payroll for all employees.

In the second year, sales climb by approximately 5%. Despite a 6% increase in operating
expenses in the second year, BeU expects a net profit of 223,346,080 VND. BeU will
make charitable donations in the communities where it operates in the same year.

BeU has the opportunity to break into markets in the third year. In the third year, BeU
will build a second coffee shop, improving the company's gross profit margin by rising
sales faster than production costs. In year 3, various expenses, such as payroll,
advertising, and charitable donations, skyrocket (since we will be hiring several
employees). Once again, the company's top expense is a 12 percent increase in
production costs. The company's net profit margin has increased to 40%.

Table 6. 2 Pro forma Profit and Loss (Unit: VND)

Pro forma Profit and Year 1 Year2 Year 3
Loss
Sales
Total Sales 1,461,600,000 1,534,680,000 3,284,125,200
Total Costs of Sales 476,060,000 621,148,400 1,103,809,648
Gross Margin 985,540,000 913,531,600 2,180,315,552
Expenses
Business Expense
Advertising 64,000,000 89,600,000 83,200,000
Insurance 2,500,000 2,500,000 2,500,000
Rent Property Expenses 360,000,000 360,000,000 360,000,000
Community benefit 26,880,000 28,224,000 60,399,360
28
 Utilities 60,000,000 60,000,000 60,000,000
Miscellaneous 12,000,000 12,000,000 12,000,000
Depreciation 0 3,900,000 3,900,000
Total Business Expenses 525,380,000 556,224,000 581,999,360
Net Operating Income 460,160,000 357,307,600 1,598,316,192
Interest expense 112,500,000 62,500,000 112,500,000
Income Taxes 92,032,000 71,461,520 319,663,238
Net Income (Loss) 255,628,000 223,346,080 1,166,152,954

6.3 Projected Balance Sheet

Table 6. 3 Pro Forma Balance Sheet (Unit: VND)
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets      
Cash 700,000,000 509,411,680 1,094,680,026
Inventory 88,128,000 92,534,400 196,172,928
Total Current Assets 788,128,000 601,946,080 1,290,852,954
Long-Term Assets 100,000,000 200,000,000 500,000,000
Accumulated Depreciation 0 3,900,000 7,800,000
Total Long-Term Assets 100,000,000 203,900,000 507,800,000
Total Assets 888,128,000 805,846,080 1,798,652,954
Liabilities and Capital Current Liabilities
Accounts Payable 112,500,000 62,500,000 112,500,000
Paid-In Capital 520,000,000 520,000,000 520,000,000
Retained Earnings 0 255,628,000 478,974,080
Earnings 255,628,000 223,346,080 1,166,152,954
Total Capital 775,628,000 743,346,080 1,686,152,954
Total Liabilities and Capital 888,128,000 805,846,080 1,798,652,954
Net Worth 775,628,000 743,346,080 1,686,152,954

6.4. Exit Strategy

Investors and management have three options for recouping their investment.

Option1: Liquidation

When there's nothing else to offer, liquidation may be the only way for BeU to stay afloat
in the market. BeU, on the other hand, will locate a buyer and assist BeU in regaining its
funds. Meanwhile, BeU will retool the company so that it can be controlled by someone
29
else and sold to someone who wants to buy it. This aids BeU in minimizing debt payback
and bringing the legal process to a close.

Option 2: Keep business in the family

If BeU did not make a significant increase in profit after three years, the proprietors
would switch to a family business and rebuild the company's reputation in the following
years. The descendants of the owners will inherit a considerable wealth.

Option 3: Sell your business to key employees or managers

BeU becomes tremendously successful, and the owners decide to sell the company to key
employees in order to maximize the value of the company while minimizing the risk to
the owners. The reason for selling a business to key employees or managers who are
aware that they are being considered for future ownership is that they are just as
interested in increasing value, training future owners, and making the company more
profitable, stable, and well-managed as the owners who would succeed. Because the aims
of everyone engaged are aligned, this provides current firm owners with a solid platform
on which to develop their Exit Plans. Aside from that, business owners continue to
participate in the company's growth. They not only get the initial business worth when
they cash out, but they also get the proceeds from any gain in value.

30
7. Conclusion

In conclusion, it should be mentioned that the shop will cost 770,000,000 VND to open.
The majority of the funds will go into purchasing basic goods, such as raw materials,
furniture and decorations. Students and white-collar workers will be targeted by the
company.

BeU claims that with a completely new café concept, it stands out from the competition
by focusing on the personalities and emotions of customers when they visit BeU, in
addition to hosting Acoustic concerts with the purpose of bringing people together. As a
result, BeU would be on track to survive and expand during the next three years, as we
predicted.

31
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