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TABLE OF CONTENT
1. Executive summary a. The Concept b. Objectives c. Missions 2. Company & Industry summary a. Ownership structure b. Organizational issues & Business Preparation c. Location & Facilities 3. Product a. Selecting product b. Sourcing 4. Target market a. Market Needs Analysis b. Main competitor 5. Marketing & Sales Strategy a. Pricing b. Promotion c. Channels of Distribution d. Sales strategy 6. Management summary 7. Logistics, Risks, and Insurance 8. Appendix
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1. EXECUTIVE SUMMARY
After long-decade negotiation process, Vietnam finally joined the WTO in January 2007. Then Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Since jointed WTO, Vietnam has welcomed many high-ranking delegations to discuss cooperative issues. Many foreign investors, enterprises and tourists have come to Vietnam to seek investment opportunities. However, the competition has also brought a lot of benefits as Vietnamese goods will more easily penetrate foreign markets, benefiting many local manufacturers. So far, Vietnam has opened almost all areas to foreign investors. Other products have also taken advantage of the opportunities of WTO membership, including garments and textiles, electronics, and computer components. In recent years, Vietnams economy has overcome the global economic crisis and a strong development. Vietnameses life got more advanced, more modernized along with development of scientific and technical equipment. When a life standard has improved, and people had a full life, they will start paying more attention to their health and beauty care. In Vietnam, there are more spas, beauty salons opened day by day to satisfied people needs. Therefore, the demand for medical aesthetic devices in Vietnam is increasing more and more.
a. THE CONCEPT:
Recognizing that the market for aesthetic devices is very potential and competitive, our company will minimize the competition by targeting 1 to 3 specific products, generally focusing in small multifunction devices. We will start the business in Ho Chi Minh City, so that we will focus in the most popular product that import from big country like US, Germany. Our company provides 3 key successes that we should maintain in working process to get more benefit and develop. First of all is product with high quality, high value relationship with its vendors and
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customers. Second, we notice product with competitive prices, that make customer will have more consideration about us when they choose supplier. In the end, transport speed is an dispensable factor in branding process, bring our name to customer. I will set up as a home-based business with additional warehouse space. This will be the most cost effective arrangement yet provide the requisite amount of service and support.
b. OBJECTIVES:
To import high quality devices product, and reliable to define brand name of company. To concentrate on selected market sector that has been researched. To improve the reliability and timeliness of shipments from foreigner. To expand the market with more qualified product in future
c. MISSIONS:
Our company mission is to supply certain market niches for aesthetic devices, and medical equipment which are not available and not well served by large domestic manufacturers. We will utilizes our management background, experiences in retail market, as well as the relationship with owners of beauty salons, private clinics to tailor the products to the needs of these market niches.
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foreigner we should have minimum capital appropriate 500 million VND. So that I decide to set a new company with 3 members: Me and 2 of my friends Tran Anh Thu and Dinh Thi Yen Ngoc, our ownership structure will be partnership. With this structure we can share the right of management, responsibility for company activities, capital business cost. Especially, we will
not need to pay tax liability; a partners profit or loss from the partnership is included in each partners income tax return and taxed as income to the individual partner (Cooke, 1995; Cheeseman, 2006b). Moreover, each partner is a general agent of the partnership in any business transaction within the scope of the partnership agreement. (Belay Seyoum, 2008; Pg.44)
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Submitting list of company members accompany with their signatures and identity documents. Submitting management structure Submitting Tax registration Address receive tax announcements Operation date Accounting form: independent accounting Importing registration: aesthetic devices is one of product need to register when import in Vietnam Bank account: our company will order product from foreigner and send them the payment by bank account. So that we will open at least 2 international banks account, one of foreigner bank (HSBC) and one of Vietnam Bank (Vietcombank, BIDV or EximBank) to ensure that the payment will always be sent on time to suppliers. Through this bank account the government also will easier to control and audit Kinds of Tax liabilities: there are many kinds of tax that Import Company has to pay. Namely: VAT, company income tax, import-export tax, excise tax Submitting Seal sample registration.
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product, we also have to repair other facilities such as stationeries, office table and chair, computers, etc.
3. PRODUCT
a. Selecting product:
Depending on the market in Vietnam and business size of consumers, at first our company will import multifunction devices that easy to use and the cost will be cheaper when you import many devices with characteristic features which only can use for one purpose. Moreover, those factors will attract more customers when almost beauty salons now dont have very large space to put in devices. Nowadays, time is money. The one who can provide comprehensive services, most effective and save time will win. So that we chose Omnipotent optical System Machines for the first time we present in the market. This system machine is a helping device for clinics and beauty salons to attract and keep customers. That device might satisfied various kinds of customer with different diseases such as: skin pigmentation disorders, skin whitening, hair removal, improved capillary blood vessel diseases, improve the capacity label, all aging, acne, firming, wires chest, etc.
b. Sourcing:
Our products are imported from China, Korea, US or Germany. Depending on customer demand and market fluctuation, the companys members will have a meeting to decide imports level and quantity of products. There is one person who takes responsible for arranging importing schedule with the various foreigner suppliers and handles all matters that arise until
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the point when goods are ready for shipment. The payment is made by us directly to the supplier at the prevailing exchange rate of that country.
4. TARGET MARKET
a. Market Needs Analysis:
To be successful, New Generation Co (NGC) needs to target on a certain market. In first three years, we will focus on small and new clinics and salons. There are many new salons is opened in every city of the country a year. They are fresher in the industry, so that they have to consider more carefully and give us more chance to introduce the product with lower cost. Usually, an import and distribution company only works on one product or brand name, with our company customer will has more choices with various product devices, manufacturers, and prices. The beauty and health care industry is never going down even if domestic economy is affected by global financial crisis from 2007 until now. From 2010, Vietnam beauty and personal care industry posted strong current value growth. Products such as color cosmetics, skin care, fragrances performed very well over the recently period when market demand non-stop increasing and manufacturers provide marketing activities to stimulate consumer demand. In recently years, Vietnam consumers enjoyed higher stable income and standard of living, they are more willing to spend money on beauty and personal care services, especially woman. Of course, beauty and personal care services with accompanied products like skin care products, aesthetic devices and many other products which supplied by foreign brand name will attract more customer. They believe that products is manufactured in foreign countries is better quality compared to domestic ones.
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Capture those market demands, Vietnamese businesses has been non-stop invested and expanded in beauty and personal care market. Day by day, more and more clinics, beauty salons are open accompanied with high quality beauty care products and latest modern devices which imported from leading technology countries such as US, Korea, Germany.
b. Main competitors:
Vietnam beauty and personal care industry is a potential industry for investors. Therefore, there are many suppliers and manufacturer from foreigner opened their representative office in Vietnam to distribute their products. Besides that, also have many domestic companies specializing in the distribution of medical aesthetic devices. However, they just sell one product or products of one brand only.
b. Promotion:
Brand identity is not only the key successful with customers. Marketing strategy and Pricing are factors that decide the success of business. To attract customer, company should provide suitable marketing plan with market situations and demands. Then they should offer the product with lower cost than other competitors. Combining those two factors is promotion
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strategy. NGC can offer product with 10% discount for first 10 customers in first 6 months we open. Moreover, we can also issue promotion program in holidays.
c. Channels of Distribution:
NGC has 3 main channels of distributions: by airplane, train, or trucks depending on customer demand. Transportation period, delivery due, and transport cost will depend on customer choice of channels distributions. In some case, there is mandatory channel of distribution which delivery way is too far, or inconvenient transportation.
d. Sales strategy:
Key of sales strategy is direct sales. We can hire out-sourcing employee to go to new clinics introduce our product, develop leaflets. Besides that, we can also introduce our services to friends, family, old colleagues, etc. They can help us advertising without cost. Advertising on internet is also an effective way
6. MANAGEMENT SUMMARY
The management of NGC is made for the owner and other members who have rights to control and manage company operations. This summary also provides the basic structure and functions duty for company. There are many administrative functions of NGC would become the primary focus of the other team member. As mentioned earlier in this plan, a team member needs to be found and trained as soon as possible before company go to operation. This functions list allow me as a director of company to concentrate on new sales, maintenance of existing accounts, and devising company strategy and policies. In the other hand, NGC is a small size in-house business, so we cannot divide many departments with specially function. At the beginning, one member has to do many works with various properties. Members duties:
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[Director]: Control daily operations, creating marketing plan, developing new business plan every 3 months; organizing all paperwork related to shipping devices from foreigner [Deputy Director]: also join creating marketing plan, directly monitoring out-sourcing employees, contact with distribution and transport company who help us to delivery product to customer; manage and arrange stuff concern with warehouse [Chief accountant]: reporting daily, monthly financial issues and reports into computerized accounts; balancing checkbook and recording bank statements; care about invoicing, billing [Receptionist cum. Admin]: assisting to board of director, answering phones from customers [Out-sourcing employees / part-time employee]: delivery leaflets, finding customers for company, introducing new products to customers
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foreign currency so that foreign exchange, foreign credit, and transportation risks are cannot avoid. We just can try the best to reduce the risks to the minimum level Insurance: there are two main kinds of insurance that company have to buy before import product is cargo insurance and freight insurance
APPENDIX (REFERNCES)
TEXT BOOK: Seyoum Belay, PhD; 2009; Export-Import Theory, Practices, and Procedures; 2nd edition Pinson L., Jinnett J.; 2001; Anatomy of a Business Plan: A Step-By-Step Guide to Starting Smart, Building the Business, and Securing Your Company's Future Chapman M.; The Business Plan for your Import-Export Business Andrews J.; 2004; Start your own Import-Export Business; 5th edition Beauty & personal care in Vietnam Market Research Report Circular 05/2008/TTLT-BKH-BTC-BCA (applied from July 13th 2009) : Guideline for business document registration , tax registration of limited company with 2 members and more dpi.hochiminhcity.gov.vn (Registration form for limited company)
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