Original Viet is a souvenir and coffee shop located in Hanoi selling 100% Vietnamese made goods. It is operated by 5 members as a limited company. The shop plans to break even within 2 years and become a top destination for visitors within 3 years. Products include ceramics, silk, paintings and drinks like coffee and tea. Marketing strategies include advertising, promotions and PR. Financial projections show the business becoming profitable within 3 years with good growth and liquidity ratios.

1. HANOI UNIVERSITY
Faculty of Management and Tourism
GROUP 4 – TR05
Nguyen Huy Canh
Mai Duc Ha
Le Thi Kim Ngan
Tran Thi Thanh Tam
Bui Thi Thoa
ENTREPRENEURSHIP
Original Viet
SOUVENIR & COFFEE SHOP

2. OVERVIEW
• Brief introduction to our business
• Products
• Market analysis
• Marketing Strategy
• HR plan
• Financial plan

3. Brief introduction to our business
 Original Viet is a souvenir & drink shop, only
sell 100% made-in-Vietnam goods
• 100m2 two-storey shop, located on Van Mieu
street, Hanoi
• A Limited Company with 5 members, one of us
is appointed to become the Director
 Objectives
• To reach break-even point after two years of
operation
• To become a must-visit place for international
visitors and expatriate in Hanoi in the next 3
years

4.  Key success factors
• High-quality product
• Professional service
• Convenient access
 Physical requirements
• 10 sets of chairs and tables
• 2 air conditioners
• 1 fully-equipped bar
• Machinery (1 card machine, 1 computer, 2
blenders, 2 juicers, etc.)
 Sources of funding: personal savings, family &
relatives, friends (0% interest rate)

5. START-UP EXPENSES (in thousand VND)
No. Expenses Amount Notes
1 Legal form 3,000
2 Deposit of six-month rent 210,000
3 Design and decor 50,000
4 Machinery & Equipment 90,000
5 Marketing 61,500 1st month
6 Staff uniform 10,000
7 Purchasing handicrafts 100,000
8
Bar & Ingredients for making
drinks 40,000
9 Labour costs (basic salary) 41,470 1st month
Total expenses 566,010

6. Products
Souvenir
1. Ceramics: : Bat Trang,
(Hanoi) & Chu Dau
(Hai Duong)
2. Silk: Van Phuc village
(Ha Dong)
3. Traditional paintings:
Dong Ho & Phu Lao
4. Rattan and bamboo
wares: Phu Nghia,
Chuong My (Hanoi) &
Tang Tien, Viet Yen
(Bac Giang)
Drink
• Coffee: Trung
Nguyen & Me Trang
• Tea: Thai Nguyen &
Bat Bao
• Fruit juices and
smoothies
• Cassava flour
 bought from
agencies &
supermarkets in
Hanoi.

7. Sample souvenir products
* All of these products are made upon our contract with
handicraft villagers

8. Competitive Comparison
 Products:
- 100% “ made in Vietnam”: from the
handicraft villages.
- Produced upon contract
Combination: perfect place for buying
souvenir and enjoying true taste of
Vietnamese drinks, smoothies
 Friendly
& professional staff

9. Future Products
 Products coming from the mountainous areas:
- Can wine
- Hand – embroidered brocade: bags, scarves, hats
- Silver and bronze jewelry: ear- rings, rings,
necklace, bracelets

10. Market Analysis
 Market segmentation:
• International tourists
• Foreigners staying in Hanoi
 Market need:
special gifts & high-quality beverage
 Market trends: hand-made souvenirs &
traditional tasty drinks
 Market growth: “Hanoi – One thousand year
anniversary”  welcome a large number of
tourists

11. Competitors
Souvenir
• Craft Link
• Handicraft
villages
• Souvenir
retailers
Drink
• Hapro coffee
shop
• Highland Coffee
• Coffee shops
ranging from
small to medium
size in Hanoi

12. Marketing Strategy
 Postioning: to be listed as one of top
10 must-visit shops in Hanoi
 Pricing Strategy
- Value-based pricing
- Price range:
+ Souvenirs: VND 50,000 – 600,000.
+ Drinks: VND 15,000 – 35,000

13. Promotion
1. Advertising
- Message:
“True Vietnamese handicrafts, tasty Vietnamese
drinks. Explore Original Viet”.
- Newspaper advertising : “The Guide” newspaper.
- Online banner advertisement on:
www.vietnamtourism.com
- Set up Shop’s website:
www.originalvietshop.com.vn

14. 2. Sales promotion
• Samples : Offering free Vietnamese
drinks in 1st
month of opening.
• Premium offers: Reducing price as an
incentive in special occasions and
opening day.
3. Public relations
• Article about “Original Viet” shop on
“The Guide” & “Time Out” newspapers.
• Corporate materials: maps,
handbooks, catalogues

15. Distribution
• Location: Van Mieu Street
→ Distributing products & service directly
to the customers
• Book online (internet distribution
channel)
• Order via phone call

16. Organization structure
Director
Administrati
on
Drink
servers
Shopkeepe
rs
(6)
Sales and
marketing
manager
(1)
Accountants
(2)
Guard (1)
Waiters/
waitresses
(6)
Bartenders
(2)

17. Workflow
• Backstage
- Purchasing goods
- Marketing activites
- HR & financial management
• Frontstage
- Selling souvenir
- Serving drink

18. Hiring
• Recruiting: advertisement on the internet
(http://www.24h.com.vn) & internal
recruitment
• Selection: interview & consider
candidates’ personality
• Socialization: providing handbooks &
trying to create a comfortable and friendly
environment

19. Compensation
No. of
staff
Basic
salary
Benefit Incentive Total
Director 1 5,000 900 300 6,200
Sales &
Marketin
g
1 4,000 720 300 5,020
Administra
tor
3 7,500 1,350 900 9,750
Guard 1 2,500 0 200 2,700
Bartender 2 3,000 0 400 3,400
Waiter 6 6,000 0 1,200 7,200
Shopkeeper 6 6,000 0 1,200 7,200
TOTAL 34,000 2,970 4,500 41,470

20. Financial plan
Assumptions
• Low season: June-July
High season: September – December
• Tax is exempted in the first 2 years of operation
• Loan is borrowed from friends and relatives.
 no interest rate will be paid.
• Growth rate: 30% in the 2nd year
50% in the 3rd year

21. Projected income statement (in thousand VND)
2010 2011 2012
Sales 2,305,025 2,996,533 4,494,799
Expenses
Cost of goods sold 877,700 1,141,010 1,711,515
Salaries 497,640 646,932 970,398
Marketing activities 345,754 449,480 674,220
Office rent 360,000 396,000 455,400
Depreciation 60,000 120,000 180,000
Utilities 120,000 120,000 120,000
Other expenses 54,000 54,000 54,000
Total expenses 2,315,094 2,927,422 4,165,533
Profit before tax -10,069 69,111 329,266
Tax expenses 0 0 82,316
NET INCOME -10,069 69,111 246,949
Retained earnings (50%) 0 34,555 123,475

22. Break-even analysis
• Souvenir
Contribution Margin = 0.625
Break- even point = VND 1,149,915,000
• Drink
Contribution Margin = 0.6
Break- even point = VND 1,197,828,000

23. Projected balance sheet (in thousand VND)
ASSETS
2010 2011 2012
Current assets
Cash (15% of sales) 345,754 449,480 674,220
Inventory (14 days sales) 19,740 25,662 38,493
Total current assets 365,494 475,142 712,713
Gross P&E 180,000 180,000 180,000
Less Depreciation 60,000 120,000 180,000
Net P&E 120,000 60,000 0
TOTAL ASSETS 485,494 535,142 712,713
LIABILITIES & EQUITY
Liabilities
Accounts payable 83,250 108,225 162,338
Total current liabilities 83,250 108,225 162,338
Long term debt 52,244 12,362 12,345
TOTAL LIABILITIES 135,494 120,587 174,683
Equity
Contributed capital 350,000 380,000 380,000
Retained earnings 0 34,555 158,030
TOTAL EQUITY 350,000 414,555 538,030
TOTAL LIABILITIES & EQUITY 485,494 535,142 712,713

24. Projected cash flow (in thousand VND)
Year 2011 2012
Cash from operating activities
Cah collected from customers 2,996,533 4494798.75
Cash paid to suppliers
Purchasing 1,146,932 1,724,346
Cash paid to suppliers 1,121,957 1,670,234
Cash paid to employees 646932 970398
Cash paid for marketing 449,480 674,220
Cash paid for rent 396000 455400
Cash paid for depreciation 120,000 180,000
Cash paid for utilities 120000 120000
Cash paid for other expenses 54000 54000
Net cash from operating activities 88,164 370,547
Cash from investing ctivities
(no investment in the first 3 years)
Net cash from investing activities 0 0
Cash from financing activities
Cash paid to lenders 39,882 16
Cash paid to business partners 34,555 123,475
Net cash from financing activities 74,438 123,491
TOTAL CASHFLOW 13,726 247,056

25. FINANCIAL RATIOS ANALYSIS
2010 2011 2012 Comments
Profitability ratios
Profit margin -0.44% 2.31% 5.49% Not very good
ROE -2.88% 16.67% 45.90% Quite good
ROA -2.07% 12.91% 34.65% Quite good
Liquidity ratios
Current ratio 4.39 4.39 4.39 Good
Debt ratio 3.58 4.44 4.08
Not very good,
high risk
Efficiency ratios
Inventory turnover 116.77 116.77 116.77 Good
Days of inventory 3.13 3.13 3.13 Fewer better
Total assets turnover 4.75 5.60 6.31 Good