Firework team - Through the storm" Strategy

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  1. 1. THROUGH THE STORMTHE BUSINESS STRATEGY OFLEMON TEA SHOPTHINK DIFFERENTDO EXCELLENT
  2. 2. [ LEMON TEA SHOP THE BUSINESS STRATEGY]LEMON TEA SHOP THE BUSINESS STRATEGY | CONFIDENTIALTable of Contents1. INTRODUCTION.....................................................................................................................................31.1 Overview..........................................................................................................................................31.2 Mind map of business plan..............................................................................................................32. BUSINESS STRATEGY.............................................................................................................................42.1 Ansoffs model of product development.........................................................................................42.2 Detailed business strategy...............................................................................................................42.2.1 Phase 1: Peace in storms eyes..............................................................................................42.2.2 Phase 2: Silent movement.....................................................................................................52.2.3 Phase 3: Storming..................................................................................................................73. CONCLUSION.........................................................................................................................................9VIETNAM YOUTH TO BUSINESS FORUM 2013ONLINE COMPETITION
  3. 3. [ LEMON TEA SHOP THE BUSINESS STRATEGY]LEMON TEA SHOP THE BUSINESS STRATEGY | CONFIDENTIAL1. INTRODUCTION1.1 OverviewStart up is always attractive to almost young and ambitious people who want to define themselves aniche in market whereby become successful businessmen in foreseeable future. They often observecustomer needs and then catch that market signal for translating it into practice. In fact, presentyoung generation has a great flair for market trend, in particular lemon tea air blade emergingphenomenon from the end of the year 2012, which is considered as worth start up opportunity. Ialso integrate into this trend through inaugurating a lemon tea shop with assured certified materialsbringing my successful passion together. However, bad publicity and rumors spreading widely abouthygiene of lemon tea force me to have to think strategically to get rigid of turn-around situation andfor vital competition.1.2 Mind map of business strategy
  4. 4. [ LEMON TEA SHOP THE BUSINESS STRATEGY]LEMON TEA SHOP THE BUSINESS STRATEGY | CONFIDENTIAL2. BUSINESS STRATEGY2.1 Ansoffs model of product developmentFirst of all, my current business is self evaluated in terms of application of Ansoffs model toevaluation to indicate how to develop my products. The result shows that product development isnecessary to improve my current business situation as competitors are eating up shares of others incontext of severe competition.2.2 Detailed business strategyWe continue the business normally. At the same time, we will propose the new business plan whichwill change our situation and restore customer belief.2.2.1 Phase 1: Peace in the eye of the stormThere is increasingly trend that people refuse using lemon tea contained chemicals and uncertifiedmaterials. This is appropriate point of time to support for this by using social networking to spreadmore information about impact of these chemical comsumption on people health. Specifically, theapplication of viral social network is illustrated below:The consequences of using social networking will bring both advantages and associated risksfor mybusiness. However, the risks are tolerated within my control and I am willing to enjoy risks to takehigher returns.
  5. 5. [ 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 ofthe customer needs and customer targeting and finally competitors benchmarking. Customer Targeting:ADVANTAGESRISKSS70%30%
  6. 6. [ LEMON TEA SHOP THE BUSINESS STRATEGY]LEMON TEA SHOP THE BUSINESS STRATEGY | CONFIDENTIALThe majority targeted customer is students/pupils accounting for 65%. They arewilling to spend money to buy product as long as the prices are reasonable and theyare 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 oftengo 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 introducingnew exclusive special lemon tea.Quality: After researching and introducing, we will register with department of healthof 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 environmentfriendly. 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 customerstastes.The services of lemon tea shop are rather acceptable as a whole. However, they havenot yet reflected the professionalism in serving customers. Our waiter force will be trained to be friendlier with specific performance indicatoreach month and they will be provided uniform.
  7. 7. [ 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 monthso Product OrientationProduct Communication Competition strategy+ Using social network, websites, word of mouthsabout new products of lemon tea+ Copy of Hygiene License on food safety andprocessed materials+ Offering trial free use of new products+ Competing on existing productswhile attracting customer to newproducts.+ Enhancement of service quality tomaintain customer satisfaction.+ Issue scoring cards:
  8. 8. [ LEMON TEA SHOP THE BUSINESS STRATEGY]LEMON TEA SHOP THE BUSINESS STRATEGY | CONFIDENTIALo Focus on developing market share from current customersSale revenue is increased by focusing on other (35%) firstly in six months. The revenue is expectedto increase at level of 10%, the production costs is at 5%. Long term strategy 5 years
  9. 9. [ LEMON TEA SHOP THE BUSINESS STRATEGY]LEMON TEA SHOP THE BUSINESS STRATEGY | CONFIDENTIALThe summary of sale revenue from combination of long term strategy and short termstrategy:3. CONCLUSIONWe are confident to go throughout the storm and build our brand stronger through combination bothshort term and long term strategies to introduce new version of lemon tea which is more environmentfriendly and increase our profitability in the foreseeable future. We are willing to take associated risksin order to earn higher return and take all necessary actions to ensure that the risks are within ourcontrol. With our slogan Think different Do excellent we believe that our business strategy willbring successful as soon as it is implemented in practice.