Target market

Group between 35 and 54

Around 60% of the market is comprised of the age group between 35 and 54 age
group. It is majorly the employed population that prefers coffee products . This
particular demography is fond of premium quality products, no matter how high is its
price.

Youth between the age of 18 and 24

Coffee consumption is observed to be increasing among the youth population and is
developing as a campus culture. The group is considered to be very potential since
they could turn out to be the company's loyal and persistent customers.

Coffee shops lovers: These are the type of coffee lovers who spend time in a coffee shop or
cafe where they can choose from a variety of different specialty beverages or regular coffee
where the atmosphere is inviting. They prefer to sit and relax while drinking the coffee
you’ve served them, perhaps have a little to eat with it and just enjoy the social atmosphere
a nicely planned coffee shop has to offer

Product Characteristics

Great Coffee
We serve pure coffee with high quality. Our coffee bean
plantations are located in the area of Da Lat, fresher climate
and hilly landscape. Skilled Baristas
Say no to preservatives
Ensure safety and hygiene
Using environmentally friendly materials
Convenience
There are times when a customer might crave coffee but lack the time to visit coffee
shops. Our shop that allows you to order coffee online is convenient under such
circumstances
Time Is Money
Queuing for a couple of minutes is a small price to pay when buying tasty coffee.
However, waiting in line for extended periods of time is annoying. Our coffee shop
that serves our customers quality coffee in the shortest time possible is simply the
best.
Pricing
In order to arrive at a pricing decision, we group your competitors together according
to relevance in ascending order and see where our product and brand fits in the
range between them.

Pricing below the competition: Pricing below competition shouldn't be a strategy if

at all, our product is limited in terms of features and functionality. It can also be
adopted when we want to provide a competitive price for our customers in order to
grab their attention and increase sales and our brand value.

Distribution

Open store: The traditional way to sell goods, customers sit at the coffee shop and
sip their drinks and work, still useful and fully meet the requirements of customers.

Online Sale:
Customers can order our products through apps like Grab, Baemin, and Shopee Food.
We partner with this business to optimize store reach. Ensure that customers can
receive products in the fastest time, and do not need to waste time going to the shop

Promotion:
Low Cost Ways We Intend to Advertise / Promote Our Coffee Shop on the Internet
We are quite aware that the internet is presently the biggest platform when it comes
advertising / promoting any business and one good thing about adverting on the
internet that is far cheaper than other conventional advertising platforms. This is why
we will ensure that we explore all available means on the internet platform to
advertise our coffee shop.

Here are they ways we intending leveraging on the internet to advertise / promote
our coffee café:

Leverage on social media platforms such as; Instagram, Facebook , LinkedIn, Badoo,
Snap chat, YouTube, Twitter, Google + et al
Make use of mobile apps to promote our coffee café
Design an interactive corporate website and use the platform to promote our coffee
café
Place adverts on high traffic websites
Engage in blogging and make use of the platform to promote our coffee café
Leverage on email marketing strategy to advertise and promote our local coffee café.

Financial plan
Use of Funds
The start-up expenses include an estimated 415 million VND consisting of several
items:

Legal expenses for obtaining licenses and permits as well as the accounting services
totaling 50 million.
Insurance (general liability, workers’ compensation and property casualty) coverage
at a total premium of 50 million.
Premises remodeling in the amount of 150 million.
Other start-up expenses including website (100 million) and phone and utility
deposits (65 million ).

The required start-up assets of 800 million VND include:

Plates, glasses, etc. worth approximately 100 million
Equipment for the total amount of approximately 700 million
Espresso machine
Coffee maker
Coffee grinder
Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.)
Storage hardware (bins, utensil rack, shelves, food case)
Counter area equipment (counter top, sink, ice machine, etc.)
Serving area equipment (plates, glasses, flatware)
Store equipment (cash register, security, ventilation, signage)
Office equipment (PC, fax/printer, phone, furniture, file cabinets)
Other miscellaneous expenses

Sources of Funds

Funding for the company comes from two major sources–owners’ investments and bank loans.
Two major owners, P.Hoang Jessica and P. Thị Mỹ Janice, have contributed 800 million VND and
500 million VND respectively. Other investors have contributed 600 million VND, which brings
the total investments to 1,9 Billion VND.
The remaining 500 million needed to cover the start-up expenses and assets came from the two
bank loans–a one-year loan in the amount of 150 million and a long-term (five years) loan of 350
million. Both loans were secured through the Bank of Vietnam. Thus, total start-up loss is
assumed in the amount of 230 miilion.
Estimates of revenue, expenses
Lost & Profit

FY2022 FY2023 FY2024

Revenue 450 Mil 560 Mil 750 Mil

Direct Costs 130 Mil 160 Mil 230 Mil

Gross Margin 320 Mil 400 Mil 520 Mil

Gross Margin % 60% 60% 60%

Operating Expenses

Salaries & Wages 100 Mil 120 Mil 160 Mil

Employee Related
50 Mil 60 Mil 75 Mil
Expenses

Rent 30 Mil 35 Mil 40 Mil

Marketing 5 Mil 7 Mil 10 Mil

Utilities, phones,
10 Mil 14 Mil 18 Mil
Internet, etc.

Total Operating
Expenses 195 Mil 246 Mil 303 Mil