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“THROUGH THE STORM” THE BUSINESS STRATEGY OF LEMON TEA SHOP THINK DIFFERENT DO EXCELLENT

Firework team - "Through the storm" Strategy

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Page 1: Firework team  - "Through the storm" Strategy

“THROUGH THE STORM”

THE BUSINESS STRATEGY OF

LEMON TEA SHOP

THINK DIFFERENT

DO EXCELLENT

Page 2: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

Table of Contents

1. INTRODUCTION ..................................................................................................................................... 3

1.1 Overview .......................................................................................................................................... 3

1.2 Mind map of business strategy........................................................................................................ 3

2. BUSINESS STRATEGY ............................................................................................................................. 4

2.1 Ansoff’s model of product development ......................................................................................... 4

2.2 Detailed business strategy ............................................................................................................... 4

2.2.1 Phase 1: “Peace in the eye of the storm” ................................................................................. 4

2.2.2 Phase 2: “Silent movement” ..................................................................................................... 5

2.2.3 Phase 3: “Storming” .................................................................................................................. 7

3. CONCLUSION ......................................................................................................................................... 9

VIETNAM YOUTH TO BUSINESS FORUM 2013

ONLINE COMPETITION

Page 3: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

1. INTRODUCTION

1.1 Overview

Start – up is always attractive to almost young and ambitious people who want to define themselves a

niche in market whereby become successful businessmen in foreseeable future. They often observe

customer needs and then catch that market signal for translating it into practice. In fact, present

young generation has a great flair for market trend, in particular “lemon tea – air blade” – emerging

phenomenon from the end of the year 2012, which is considered as worth start – up opportunity. I

also integrate into this trend through inaugurating a lemon tea shop with assured certified materials

bringing my successful passion together. However, bad publicity and rumors spreading widely about

hygiene of lemon tea force me to have to think strategically to get rigid of turn-around situation and

for vital competition.

1.2 Mind map of business strategy

Page 4: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

2. BUSINESS STRATEGY

2.1 Ansoff’s model of product development

First of all, my current business is self – evaluated in terms of application of Ansoff’s model to

evaluation to indicate how to develop my products. The result shows that product development is

necessary to improve my current business situation as competitors are eating up shares of others in

context of severe competition.

2.2 Detailed business strategy We continue the business normally. At the same time, we will propose the new business plan which

will change our situation and restore customer belief.

2.2.1 Phase 1: “Peace in the eye of the storm”

There is increasingly trend that people refuse using lemon tea contained chemicals and uncertified

materials. This is appropriate point of time to support for this by using social networking to spread

more information about impact of these chemical comsumption on people health. Specifically, the

application of viral social network is illustrated below:

The consequences of using social networking will bring both advantages and associated risksfor my

business. However, the risks are tolerated within my control and I am willing to enjoy risks to take

higher returns.

Page 5: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

We are willing to enjoy risks to take higher returns.

2.2.2 Phase 2: “Silent movement”

The critical analysis: conducted on range of areas including product assessment, market research of

the customer needs and customer targeting and finally competitors benchmarking.

Customer Targeting:

A

D

V

A

N

T

A

G

E

S

R

I

S

K

S

S

70%

30%

Page 6: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

The majority targeted customer is students/pupils accounting for 65%. They are

willing to spend money to buy product as long as the prices are reasonable and they

are entitled quality beverage.

This is most important customer category to be significantly developed in future.

The other category includes groups of friends, young people and couples. They often

go to lemon tea shop about average 2 times per week especially on the weekend.

We estimate these category accounts for 35%.

Product Assessment:

Selling price: we current offer 8,000 VND.

The price is then adjusted for 10,000 VND.

Production costs: based on the current situation, production costs are 3,000 VND.

The production costs is adjusted for 4,000 VND after researching and introducing

new exclusive “special” lemon tea.

Quality: After researching and introducing, we will register with department of health

of Ho Chi Minh City about the guarantee on out product.

Design of package: We are using plastic cups for our products.

The paper cup will replace the current plastic cup with design of environment

friendly.

The paper cup can be recycled for next times

Competitors Benchmarking:

Similar selling price: about 8,000 VND – 16,000 VND

Our adjusted offer is reasonable (10,000 VND)

The component of menu list are all similar causing boring on customers

The new menu list with exclusive “special” lemon teas refreshing customer’s

tastes.

The services of lemon tea shop are rather acceptable as a whole. However, they have

not yet reflected the professionalism in serving customers.

Our waiter force will be trained to be friendlier with specific performance indicator

each month and they will be provided uniform.

Page 7: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

Intensive researching of “special” product of lemon tea and redesign of the menu list:

2.2.3 Phase 3: “Storming”

Short term strategy – 6 months

o Product Orientation

Product Communication Competition strategy

+ Using social network, websites, word of mouths

about new products of lemon tea

+ Copy of “Hygiene License” on food safety and

processed materials

+ Offering trial free use of new products

+ Competing on existing products

while attracting customer to new

products.

+ Enhancement of service quality to

maintain customer satisfaction.

+ Issue scoring cards:

Page 8: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

o Focus on developing market share from current customers

Sale revenue is increased by focusing on other (35%) firstly in six months. The revenue is expected

to increase at level of 10%, the production costs is at 5%.

Long term strategy – 5 years

Page 9: Firework team  - "Through the storm" Strategy

[ LEMON TEA SHOP – THE BUSINESS STRATEGY]

LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL

The summary of sale revenue from combination of long term strategy and short term

strategy:

3. CONCLUSION

We are confident to go throughout the storm and build our brand stronger through combination both

short term and long term strategies to introduce new version of lemon tea which is more environment

friendly and increase our profitability in the foreseeable future. We are willing to take associated risks

in order to earn higher return and take all necessary actions to ensure that the risks are within our

control. With our slogan “Think different – Do excellent” we believe that our business strategy will

bring successful as soon as it is implemented in practice.