Mba ricebusinesspresentation


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a short presentation on a possible business startup to export rice to US. This is a fiction plan by a MBA student group in Vietnam.

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Mba ricebusinesspresentation

  1. 1. AQUA RICE TM Since 4000 BC
  2. 2. Chairman: Ngo Trong Thanh - CEO: Nguyen Toan Thang - COO: Nguyen Khac HoanCMO: Luu Van Hai - CFO: Nguyen Ngoc Tu Eagle.,Inc AQUA RICE TM Since 4000 BC
  3. 3. Obesity in US Obesity Costs U.S. About $147 Billion Annually
  4. 4. Diabetes in US <ul><li>Total: 23.6 million children and adults in the United States—7.8% of the population—have diabetes. </li></ul><ul><li>New Cases: 1.6 million new cases of diabetes are diagnosed in people aged 20 years and older each year . </li></ul>
  5. 5. <ul><li>Rice Fits Today's </li></ul><ul><li>Healthful Eating </li></ul><ul><li>Profile </li></ul>RICE IS HEART HEALTHY - The FDA says that diets rich in whole grain foods such as brown rice may help reduce the risk of heart disease and certain cancers. Eat Brown Rice to Manage Diabetes
  6. 6. Rice in Vietnam <ul><li>In 2009, Vietnam surpassed </li></ul><ul><li>Thailand as the rice number </li></ul><ul><li>1 exporter </li></ul>In 1999, Thailand, Vietnam, and India held on to the world's top three rice export market share. In 2007, Vietnam held the position No 2
  7. 7. Segmentation Market Summary Age 2 – 19 years old 20 and older Women Men Rice Forms Rough (Paddy) Rice Brown Rice Regular Milled White Rice Parboiled Rice Precooked Rice
  8. 8. Segmentation (continue) Market Summary Regions Northeast 131gr/day South 79gr/day Midwest 60gr/day West 146gr/day Racial/Ethnic Group White, non-Hispanic 76%/55gr Black, non-Hispanic 11%/118gr Mexican-American 4%/124gr Other Hispanic 4.8%/303gr Other 3.9%/633gr
  9. 9. Targeting Nationally Black, non-Hispanic Mexican-American Other Hispanic Other White, non-Hispanic All Ages Vitamin E, Thiamin, Riboflavin, Niacin, Vitamin B6, Folacin, Potassium, Magnesium, Iron and over dozen other nutrients
  10. 10. Market needs, trends and growth U.S. rice consumption is on the upswing U.S. rice consumption is about 4 million tones per year
  11. 11. SOWT analysis <ul><li>S: </li></ul><ul><li>Quality Management Ability </li></ul><ul><li>Production Capacity </li></ul><ul><li>Competitive Price </li></ul><ul><li>Marketing Technology </li></ul><ul><li>O: </li></ul><ul><li>Diabetes & Obesity </li></ul><ul><li>Large Population </li></ul><ul><li>Food Culture/Crisis </li></ul><ul><li>Rice farming is a high-cost, high-yielding, large-scale in U.S </li></ul><ul><li>W: </li></ul><ul><li>Market Understanding </li></ul><ul><li>Chemical Use in Agriculture </li></ul><ul><li>Inventory management & Technology </li></ul><ul><li>T: </li></ul><ul><li>Local rice agriculture expansion </li></ul><ul><li>Protectionism </li></ul><ul><li>Import Taxes regulations </li></ul>
  12. 12. Competition
  13. 13. <ul><li>Medium Grain Rice </li></ul><ul><li>Short Grain Rice </li></ul><ul><li>Brown Rice </li></ul>Competition <ul><li>Organic Rice </li></ul><ul><li>Sushi Rice </li></ul><ul><li>Sweet Rice </li></ul>
  14. 14. <ul><li>Arkansas Rice Mills, LLC P.O. box 2398 Jonesboro, AR 72402 </li></ul>Competition
  15. 15. Competition Our main competitors (continue) American Rice, Inc. 10700 North Freeway, Suite 800 Houston, TX 77037 US Associated Rice Marketing Cooperative P.O. Box 1180 Durham, CA 95938 US Beaumont Rice Mills, Inc. P.O. Box 3111 Beaumont, TX 77704-3111 US Bertrand Rice 10105 Seward Ln. Elton, LA 70532 US Connell Rice & Sugar Company 200 Connell Dr. Berkeley Heights, NJ 07922 US Cormier Rice Milling Co., Inc. P.O. Box 152 DeWitt, AR 72042-0152 US
  16. 16. Product & Packaging 0,5Kg 1Kg 2Kg 5Kg 10Kg Tones
  17. 17. Positioning <ul><li>Highest quality and safest quality rice for the shake of our customers’ healthy life </li></ul><ul><li>Good relationships with American importers, retailers, and Vietnamese rice growers, brokers and wholesalers. </li></ul><ul><li>Superior product offering because of our purchase from growers who rely on the regulated use of chemicals and pesticides (less than two percent of the time) and of the high conservation technology </li></ul>AQUA RICE TM Since 4000 BC
  18. 18. Brand Idea & Driver <ul><li>Water = Aquatic + Rice = Aquarice </li></ul><ul><li>Origin country of product: number 1 rice producer and exporter </li></ul><ul><li>4000 year “aquarice” culture practice </li></ul><ul><li>Rice and Water Puppets </li></ul><ul><li>Healthy function of product: good good & cheap cheap “nothing is as harmless as rice </li></ul><ul><li>Low calories brown rice rich in mineral and vitamins </li></ul>
  19. 19. Pricing <ul><li>Market-Penetration Pricing: lowest price in the market </li></ul><ul><li>Value-Based Pricing: good quality rice + exceptional assistance service (use guide, cultural feature) </li></ul>
  20. 20. Distribution Channels Local Merchants Rice Growers Eagle Warehouses Importers Retailers Wholesalers Restaurants Customers
  21. 21. Promotions <ul><li>Free ticket at Asian Restaurant </li></ul><ul><li>Rice cooker offered for high quantity deal </li></ul>Free tour to Vietnam Rice use free guidance through gastronomic festival & contests Quantitative discounts
  22. 22. Communication mix <ul><li>Message: Quality rice with high nutritious, cultural and historical features at very low price </li></ul><ul><li>Events: seminars, food festival and contest, combined with Vietnamese cultural and trade event in U.S along the year. </li></ul><ul><li>Partnership with Vietnamese student in U.S </li></ul><ul><li>Free samples </li></ul><ul><li>Advertising </li></ul><ul><ul><ul><li>50% online (Internet) </li></ul></ul></ul><ul><ul><ul><li>10% at Pharmaceutical shops (for brown rice only) </li></ul></ul></ul><ul><ul><ul><li>20% at Asian stores </li></ul></ul></ul><ul><ul><ul><li>20% at others retailers (Walmart, Sam Club etc) </li></ul></ul></ul>
  23. 23. Sales Forecast <ul><li>Sales forecast (tones) 2010 2011 2012 </li></ul><ul><li>Brown Rice (tones) 5,00 1,000 1,500 </li></ul><ul><li>White Rice (tones) 1,000 2,000 3,000 </li></ul><ul><li>Sales forecast (USD) </li></ul><ul><li>Brown Rice (USD) 450,000 900,000 1,350,000 </li></ul><ul><li>White Rice (USD) 700,000 1,400,000 2,100,000 </li></ul><ul><li>Total 1,350,000 2,300,000 3,450,000 </li></ul><ul><li>Contribution Margin 418,500 759,000 1,138,500 </li></ul><ul><li>Contribution Margin/Sales 31.00% 33.00% 33.00% </li></ul>
  24. 24. Marketing Expense Budget <ul><li>Marketing Expense Budget 2010 2011 2012 </li></ul><ul><li>Printed sales materials $20,000 $0 $0 </li></ul><ul><li>Business development $4,550 $6,000 $8,000 </li></ul><ul><li>Advertisements $50,000 $150,000 $250,000 </li></ul><ul><li>Website $15,000 $12,000 $12,000 </li></ul><ul><li>Others </li></ul><ul><li>Total Expenses 89,550 168,000 263,000 </li></ul>
  25. 25. Contingency Planning <ul><li>Difficulties and Risks </li></ul><ul><li>Problems developing brand awareness. </li></ul><ul><li>Difficulty obtaining the highest quality input. </li></ul><ul><li>Issues involving importation of the rice into the US </li></ul><ul><li>Worst Case Risks Include </li></ul><ul><li>Determining that the business </li></ul><ul><li>cannot support itself on an ongoing basis. </li></ul><ul><li>Having to liquidate equipment or intellectual </li></ul><ul><li>property to cover liabilities. </li></ul>
  26. 26. <ul><li>THANK YOU </li></ul><ul><li>& </li></ul><ul><li>CAM ON NHIEU! </li></ul>