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Team’s Name: A PLUS (A+)
This is a project creatinga business process to deliveryfresh
products/vegetables from Bao Loc City to officers in HCM City.This project
helps societyby creating a new business model in Bao Loc City.
3/31/2013
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TABLE OF CONTENTS
I. Introduction…………………………………………2
1. Idea’s summary……………………………………………………2
2. Team’s description……………………………………………….3
II. Business Model Canvas………………………..4
1. Key Partners…………………………………………………………5
2. Key Resources………………………………………………………8
3. Key Activities……………………………………………………….9
4. Value proposition……………………………………………….11
5. Customer relationships……………………………………….14
6. Channels……………………………………………………………..15
7. Customer segment………………………………………………19
8. Cost structure & Revenue stream……………………….20
III. Pain & Gain………………………………………….25
1. Pain……………………………………………………………………...25
2. Gain………………………………………………………………………27
3. Trump Card…………………………………………………………..28
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I.INTRODUCTION:
1. IDEA’S SUMMARY:
Nowadays, economic has developing day by day and the technology in planting of famer
has changed. First, the officers has no time to go out or searching about the quality of
vegetable; so they have two options that buy inequality vegetable or do not buy anything.
Secondly, the farmers in Bao Loc city have large resources of vegetable, but they do not
know how to form it into a process and sell it to customer. With these reasons, we decide
to build a fresh vegetable delivery from Bao Loc city to the officer in Ho Chi Minh City in
season.
In Bao Loc city, we will gather some households into a business process and gather their
product to sell customers in Ho Chi Minh City. We will have deal/contract with them about
the standardizing quality of vegetable that they sell for us in specific days. Each period will
be 5-6 days. Beside that, we will create a website and a hotline to connect customers who
need our fresh vegetable delivery. Then, when the farmers tell us their quality at the
beginning of period, we will announce the list of products available through our website or
their contact (for our customers that we will have these kinds of products). Customers will
connect with us to order if they need a big quality products/vegetable. We also build up a
delivering service direct way to customers by trucks, which reduce the cost. All of this
project will bring benefit to farmers in Bao Loc and officers/customers in Ho Chi Minh City
by finding an output for farmers’ products and satisfying the demand of officers.
We are not only the people who sell vegetables, we are also the ones who help farmers
and officers connect together.
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2. TEAM’S DESCRIPTION:
Bùi Việt Tiến
Avisor
Lê Đăng Khoa
Financemanager
Nguyễn Thị Phương
Trang
Marketing manager
Mai Hồng Ngọc
Human resource
manager
Lý Thị Mai Hương
Manufacturing
manager
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II.BUSINESS MODEL CANVAS
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1. KEY PARTNERS:
 Our partners:
There are five kinds of partners that cooperate to create our value chains. Each
of them have different roles, however, they are all important. The reason to list out
them there is showing a big view in our production systems.
Partners Roles Ways
Household Farmers who grow vegetable Gathering famers in Bao Loc
city into a group 10 people at
the first time; then, expanding
this group later.
Transportation
services
We will sign contract with them to
delivery our product from Bao Loc
to HCM city
Buying a refrigerator truck,
because transportation is the
biggest cost of our process. If
we have our own trucks, we
can save more money and get
more profit.
Moreover, on the way, trucks
will be hanged out our
banners to advertise also.
They also have to be on time
and careful, because our
products are vegetable.
Food
inspectors
They will belong to our project, and
check if standard of famers’
vegetable meet our goals.
Hiring these experts to check
not only products but also
producing process. We have
to make sure that products
that we receive reach
standard of VietGAP.
Advertising
company
Building brand is one of the most
important points to develop our
project, so we will pay more for
advertising, both online and offline.
Cooperating with journalists,
media means, training skills
service, etc.
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 Key partners and key suppliers:
Our key partners are famers who grow vegetable in Bao Loc city. Because our
key partners are also people who contribute our products, they are also counted as our
key suppliers.
We choose Bao Loc city because three reasons.
First, in this area, cultural rate is 6%. This is a high rate. And the rate of people
growing vegetable is very high. There are several household who choose growing
vegetable as a main way to create income.
Moreover, one of the disadvantages of producing in Bao Loc city is that people
do not work in network. They do it in private. Therefore, we want to create a base for
developing network production system. This can help people to create added value, as
well as upgrading valuable functions, productions, process, as well as other inter-
sectors.
Another reason is that Bao Loc city is not considering as a developed economy.
Rate of poor people is 3%. Number of people who do not have job is 4000 people. The
income of people in this place is only 31 millions per year. We hope that our system can
help people to get higher income and improving their standard life. By gathering people
in process producing vegetable, they can have more push to create products. Moreover,
we will organize events that training growing vegetable effectively if we can make a
networking of production in Bao Loc city. On the other hand, we also train our
employers, who delivery our products. By this way, we will create more jobs for people.
The other reason is Bao Loc is near Ho Chi Minh City. Da Lat is one of the most
popular places which provide vegetable for HCM City. Although Bao Loc city has the
same environment as Bao Loc city and have enough standard to growth as same as
vegetable in Da La city, Bao Loc is closer to HCM City than Da Lat. It takes 7 to 8 hours to
drive from Da Lat to HCM City, but there is only 5 hours way to drive from Bao Loc to
HCM City. Our core customers are officers who work in HCM City. Therefore, by
choosing Bao Loc city, we will save more time and money. Vegetable is also fresher.
Our partners in Bao Loc city have to follow these conditions.
Firstly, our project is delivering vegetable; therefore, they have to have
experience in growing vegetable. Secondly, the poor will be priority in our project. We
will link poor people live together to build a network. Our process is differentiated
because we not only focus on creating added value and profit, but also society
problems. Thirdly, they agree to sign contract with us about: following VietGAP
standard, providing products by deadline, as well as protecting our brand – name.
Because we are a company and we have our own brand, therefore, they have to
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corporate with us and not support for others to destroy our brand or leave out to create
their own brand.
 Key Teams:
Teams Functions Task
Marketing
Online Managing online channel to build our brand like email,
website, Facebook, newsletter, etc.
Offline Organizing events like workshop, fieldtrip, and training
staffs.
Project
Production Producing and harvesting vegetable to sell. Farmers are
also counted as our team.
Testing quality Testing to make sure our products reaching VietGAP
standard.
Training Organizing training growing effectively to develop our
outputs.
Delivery Package Packing our product into ordered package for specific
people.
Delivery Delivering vegetable from Bao Loc to HCM City.
Finance Cash flow Counting the revenue, profit, loose, etc. And setting
plan for handle financial problems.
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2. KEY RESOUCES
 Key Resources:
Conditions Ways
Quality
Clean
This is the most important condition in our project, because
our project is “Fresh delivery” and we expect to bring our
customer products which have clear origin.
To do this, we will check our product each one month as it is
growing. And checking when it is harvested. Moreover, we
will have experts team to do this. Especially, our product has
to be reach VietGAP standard.
On time
Our system working depends on the harvest time of farmers.
Therefore, our products have to be harvested on time to be
sure that we can package it and delivery it on time to our
customer.
Quantity Enough
Farmers have to delivery their products for us as same as the
quality that they agree to sign on contract.
We are different from others company that we let our
partners show the quality of products that they can get. We
have asked Bao Loc people about cooperating to delivery
vegetable to CoopMark Supermarket in Bao Loc city. They
said that they did not want to corporate with supermarket
because the supermarket forced them to sign the number as
the supermarket showed. However, farmers were not sure to
get this number. Therefore, they can be free to choose the
number to corporate with us. Farmers can base on their
experience to give us specific number of quantity that they
can handle.
If they do not do as the contract, we will have some rules
depending on contract as well as we have to find another
back up sources.
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3. KEY ACTIVITIES
The key activity of “Fresh Delivery” company is that we create a standard process to
transfer the greens from Bao Loc’s farmer to your doorstep. We will manage a website
that continuously updates the green available for customers to choice. In this website,
we also provide the news of our farmers, the quality of our greens and customer
services. You can purchase vegetable online, advanced payment or cash payments are
all acceptable. The farmers are under our contract with the standard condition of the
quality and quantities of the greens. The farmer will provide us an estimated number of
the product, and then we will offer you a combo of green with a wide range of diversity
that will be delivering in a specific date in the future. From the supplier, we will sort it
out into portion and deliver it to you.
 Supplier:
Our “Fresh Delivery” process begins with the suppliers. We will choose a specific
region of Bao Loc and develop a collaboration, etc. The farms will operate under the
VIETGAP – Process on good agricultural practices for fruit and vegetables fresh safety in
Vietnam that would provides us fresh food under the certificate of Ministry of
Agriculture & Rural Development. Every three months, we will have an expert check the
condition, quality of the farm and quality of the product. We promise you the best
green growth in the best environment that ensures to give you the best nutritious
vegetable. All the farmers will be under our contract, committed to provide the greens
with high quality. Half season we will sign contract with the estimated quantity that they
can provide us.
 Products:
A diversity of green will be at your services: salad, basil, spinach, pumpkin, wacky
pumpkin, basely Alba… a variety product such as: compo green, big set, small set that
we offer can help you buy vegetable at a lower price.
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Picture English
aborigine
egg plant
bean
broccoli
(white)
cabbage
cauliflower
celery
chili
cucumber
garlic
ginger
kohlrabi
mushroom
onion
parsley
pea
(green)
pepper
potato
radish
spring onion
(Brussels)
sprouts
zucchini,
curette
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 Website:
All you have to do is click to our website and discover a world of fresh vegetable
with high quality. The website will contain all the information you need to know about
us. It will provide the information of our process and suppliers. It also presents all kind
of vegetable and services that you prefers, including price. The procedures to buy our
product will be very easy and we accept both credit and cash payment
 Delivery:
After the transaction, we will confirm all the information that you have fill above
with an email.
We will record all the transaction, and delivery two times per week. First period will
be closed on Monday, and the second on Wednesday. The order will transfer to Bao Loc
where the entire product will be packaged and will be gather together according to the
order after harvesting. They will be preserve in the basket, transfer by the refrigerated
truck to keep the freshness of the vegetable. They will be delivered on Wednesday and
Friday buy the truck according to the recorded list.
We will delivery our products directly to the offices. As research, there are 74%
people agree with this way. It is one of our benefits to reduce transportation cost
because we can delivery several people at one time. Moreover, we can expand our
brandmane by this way.
We did a survey on 200 officers, and this is the result of this:
Content Agree to pay
by cash
Shop
online
Delivery products to
offices
Shop 2days per
week
Rate 81% 61% 74% 58%
4. VALUE PROPOSITION:
Average daily, Ho Chi Minh City consumes over 2,000 tons of vegetables. Vegetable
city’s supplier is up just under 20%, the rest are mainly imported from the province of
Lam Dong, Tay Ninh, Long An, and some Northern provinces. Most of the vegetables -
tubers - fruits (VTF) in the wholesale market, even in the supermarkets in Ho Chi Minh
City have residues of crop protection products (pesticides). This is a very worrying
situation for the health of consumers.
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Many consumers are very worried about the source of all the food they are eating
every day. There are many risks such as: bug spray, chemical fertilizer, etc. So, we are
committed to provide the fresh green with the best quality, right to your house. It can
help the white- collars workers with a limited time enjoy healthier meals. It will be a
trusted sources for the wives, mothers, daughters who are taking care of their family,
giving the best and nutritious food.
The farmer will produce under this quality control: safe vegetables (SV), GAP (good
agricultural practices) or VietGAP (Process on good agricultural practices for fruit and
vegetables fresh safety in Vietnam)
Another source is that our company will engage in the food safety chain. Food safety
chain is the link between the production facility, food business, and hygiene standards
from farming, to the dinner table. The facility will operate in closed circle; in principle
that they can only receive input from members of the supply chain. Output can be sold
at the supermarket chain members, or at the store, agent. Consumers will recognize the
product of the chain on the basis of the certification mark printed on the package
management, product labels.
To participate in the chain, the manufacturers have to meet the regulations related
to business, and safety standards of food hygiene and safety. If they meet the rules,
they will be issued a certificate of food safety. If the post-inspection process is not done
correctly manufacturer, granting agencies will revoke the certificate and delete the
name of the manufacturer out of the chain. And participating in the chain, the
manufacturer may use Safe certification to promote the brand. Department of Health
information on product certification is posted on the website and other means of mass
communication to consumers to make sure about products.
Currently, the population use social networks, more specific, Facebook grew 34
percent in 2011 compared to 2010. This number tends to grow in the future.
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Source: (Net Index 2011, 03/08/2011) Graph about development of Internet in 2010 - 2011
Young subjects (15 - 24 years) in Vietnam are the most frequently used social
networking (71 - 73%).
In the past, a lot of fear for online purchases due to old buying habits of customers
and infrastructure not developed, but at present, e-commerce and social networking are
some progress more important (39% are likely to purchase online within the next 12
months). We believe that our services will provide the customers the best convenient
and time-saving with the best product and services.
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5. CUSTOMER RELATIONSHIPS
Types Characteristics Ways
Single
Relationship customer: Want
you to know who they are and
what they need
Market research to find out what they
really want and need, constantly offer
new combo to attract them.
Married
Partnership Customers: Have a
high relationship and high
information need. They want
you to be proactive , to know
them well and to educate them
Always provide detail information and
well design product package. Promotion
campaign with the gift along with the
combo, add more value to the products.
All of our activities are to serve to establish and maintain the customer relationship.
The marketing research, the detailed information in the wrapping, the information of
our supplier, the gift along with the product are all particularly discuss in our business
model canvas. The customer is the most important stakeholders of our business. The
cost is considered acceptable because it helps to achieve customer’s satisfaction, which
help to create and maintain the bond between our businesses with the customers.
•harvest
•package
supply
the
customer
made an
order,
advanced
payment
website by trucktransfer
•to the
custmers
•received
bill
delivery
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6. CHANNELS
We divide our marketing campaign into 3 periods: 3 months, 6 months and 1 years.
Our company will base on the B2C method and using the advantage of our projects
for their help to encourage them take participate in our process. In Ho Chi Minh City,
our segment of customers is officer and diet people. Those kinds of customers is easier
get touched by uploading information on online channel and offline channel
First step to analyzing the demand of customer and the value of our project, we have
planned to finish a marketing research in few months:
 Marketing research
 Database: 400
 Measured brand awareness before, during and after each marketing stage.
Including our form of research, we can add some summarize information about
our project to let them know more about our company.
o Example: FD is the process of producing fresh vegetable planted by
household farmers in Bao Loc City. In Bao Loc City, we will gather some
households into a business process and gather their product to sell
customers in Ho Chi Minh City. Each period will be 5-6 days. Besides that,
we will create a website and a hotline to connect customers who need
our fresh vegetable delivery. Then, when the farmers tell us their quality
at the beginning of period, we will announce the list of products available
through our website or their contact (for our customers that we will have
these kinds of products). Customers will connect with us to order if they
need a big quality products/vegetable. We also build up a delivering
3
months
• Target: 200 cusomters (core
customers)
• Building Brand by advertising
and introduce to customers
6 moths
• Target: 500 customers
• Maintain and build up the
relationship and loyalty in customers
1 years
• Target: 700 customers
• Reward and promotion for
core customers to maintain
the relationship.
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service direct way to customers by trucks, which reduce the cost. All of
this project will bring benefit to farmers in Bao Loc city and
officers/customers in Ho Chi Minh City by finding an output for farmers’
products and satisfying the demand of officers. We are not only the
people who sell vegetables, we are also the ones who help farmers and
officers connect together.
 Study customer satisfaction and identify opportunities for future developments
 Online: Creating the form online to spreading out on Facebook, email and yahoo
 Offline: Printing research form and give it to the officer and collect it
immediately for not harmful to environment. It is about 200 forms.
 Online Channel
 We build a website up to advertise and update our products’ information for our
customer. Through this website, our customer will know how to take an order
and when we have new arrivals. This one is the most important channel of us.
On the website, we will upload our products such as: artichoke, asparagus,
(white) cabbage, cauliflower, cucumber, etc. It also writes briefly the quality,
date of production, date of delivery, household famer’s name, and how many
kilogram vegetables are sold and left which they can have all of the information
they need.
On website, we also plan update the confession of customers took participant in
our process and the number of customers is increasing day by day. It can make
our potential customer believe in our products; so they can consider about our
products is very convenience, fresh and cheap.
 TVCs: Creating a short video for advertising on Internet or. This plan will be run
when we have enough money in middle period.
The script of video will show the meaning of our project to bring the best quality
for children generation and people. We will summary a short idea for you that
focus on the health of the children in Ho Chi Minh City. One of the young
mothers and officer use fresh vegetable, it means that they give a hand to
encourage people use fresh vegetable. Moreover, a fresh vegetable they receive
from us is an opportunity for their children has a strong life with good health.
“EVERYTHING GOOD FOR YOUR CHILDREN” will be the main idea of our project.
 As we know that, Facebook is the most famous channel of teenager but also
used by 80% of officers. Here is a look at how the number of active users at
Facebook has grown:
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 1 million — End of 2004.
 5.5 million — End of 2005.
 12 million — End of 2006.
 20 million - April 2007
.
Create a Fan page on Facebook is the best way to attract customer and spread
out our brand. To let people know who we are, we can upload and design some
video clip about process of making product. Moreover, some contest or funny
question have award for the winner can be a good strategy to create our own
linked networking.
 Email Marketing is a tendency channel for all of marketing departments can
reach our customer immediately through their personal day.
We can create a chain of Officers’ Database and send them an email to introduce
about our project. Why do we choose email to be one of our channels? Officers
are the people who connect with computer directly and work with it day by day.
Therefore, we can send our information to our customer segment as fast as we
can rather than invite them one by one. Besides, we will not disturb them
directly and let them feel free to enjoy our service.
 Newsletter is an online magazine to summarize/provide monthly report of our
company to customer. It will be design in a specific way and contain only 4 -5
news during last month.
It is the bridge between our company and customer which make they know what
we have done and what we are doing.
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 Offline Channel
 Workshop: In the starting of our start-up, we also plan to open a small workshop
to introduce about our service to segment customers. We will give them some
promotion or discount card for going to Galaxy Cinema, Lotteria Fast food, Gloria
Jean Coffee, Starbuck Coffee, etc.
 Field trip: We plan to have some field trips for our customers in two times per
months. With this plan, we reach two benefits for keeping customer
relationship. First, we can maintain the relationship between our company and
customers by treating them at a friend who we want to bring best things for
their health. Secondly, we help them understanding about the processing of
harvest and product products clearly which make them believe in our quality’s
product.
Another plan is raising promotion for loyal customer. It means that a customer
will received a discount of 50% price if they invite more six people join in our
delivery. This way will bring to them some benefits and help their friends have a
fresh vegetable resource which good for health.
 In long-term periods, we will build a retail up which has our brand name for
delivering products to customer more easily and conveniently. In this
generation, customers believe in famous brands that they do believe that its
quality’s products are better than another’s.
In B2B marketing, the brand problem are ranked at number 10 in the list of
affected things that customer want to consider. In converse, in B2C marketing,
the brand problem is rank in the number 1st. It means that company’s brand in
the market affect customer’s thinking in perfect ways.
 Along with this contribution, we will display several clips and documents as
emotional strategy to create advantage. This is to inform people about:
 Our products have the qualities difference from others competitor and the
vegetable in the market/ supermarket. It is the product of a long process done
by a lot of household on Lam Dong Province. The fresh vegetable planted by
farmers and has not any harmful for health. It means that when our customer
will join in projects, they also encourage people using good/fresh vegetable and
limiting the consumption of poisonous vegetable.
This is a convenient service is used to help business people and develop online
sale in Ho Chi Minh City about food and vegetable. It is safe your time and make
sure about the real quality which you know where it come from.
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 Direct sales: distributing brochures and offer letters about FD bricks and directly
introducing the products to the construction companies and architecture design
companies. We can also do direct sales to the current construction sites or
construction biddings to gain more customers. Upon the researches done on the
preference of choosing bricks, price is the main factor that affects the final decision
of the contractors.
 Banner/ Sticker on Truck: We decorate our truck with our brand name and contact
for everyone can see on the street.
Uniform: Our staff will have our own brand name’s uniform which make them
more professional and more polite to our customer. Our uniform will be T-shirt
with our own color attract people in the first sight.
7. CUSTOMER SEGMENT
Our kind of segment is differentiated segment. This is a market that we decide to
focus only officers. And in these segments, we will divide into three keys groups to
design different offer for them. Market of vegetable is big. However, we will focus on
officers only because of these reasons. Firstly, they know to use Internet (our products
are ordered and paid online). Moreover, they have stable income. The third one is that
they have strong relationship with other officers in their building. And the last one is
that they do not have time to shop.
Geographic
World region or country Viet Nam
Country region Ho Chi Minh City
Size Choose two big building at first, under 200 people
Demographic
Age 25 – 45
Gender Female, male
Family life cycle Married, single
Income 3 – 10 millions
Religion Buddhism
Psychographic
Social class Uppers middle and upper class
Personality Careful
Lifestyle Vegetarian
Behavioral
Benefits Quality, quantity, service, convenience, speed
Attitude toward products Positive, positive, supportive, active
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8. COST STRUCTURE & REVENUE STREAM:
 Cost structure: The most important cost inherent in our business model is capital
activity, because we need large amount of money which helps us to maintain the
system which includes all the payment and transaction.
The most expensive key resource is quality. We need expert to ensure the quality of
product which will be delivered to the customer, in the other hand to keep the
quality of product perfectly to also need to purchase new item which cost a lot too.
The most expensive key activity is with supplier because it contains most of
expensive resource.
We will focus on the value driven. We want to offer the best price for the customers
and also the profit for the suppliers.
The fixed cost include: the salary for experts, staffs and workers, the house’s
payment, the transport truck, machine, internet payment.
The variable cost: gas, shipment, cost when we receive the product.
 Revenue stream:
The customer will pay for our product because of its quality, we offer to them the
product with high quality and good price which is good deal for them.
They pay for the health and other sake. Healthy food brings good health and
provides profit for the suppliers which help to improve the society. Like we mention
before the customer and pay us by directly cash or by credit card however to ensure
that they will buy the product we have a policy which asks them to pay at least haft
price of product which is purchased. They can contact us directly by go to our
agency.
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The table above show how much money we have to invest in. We have 2 periods
because for the first period is when we build our trust for the customer then after
gaining trust we go for the second period which is when we actually do the business.
Capital labor Description Cost Condition
Electricity 300 KWh/ month 323.950 VND/month
Worker's salary
(10 labors)
20000 VND/hour
28000000
VND/month/shift
At least 7 shifts and max 10 shifts
per week
5 hours/shift
40000000
VND/month/10 shift
Capital Labor
8000000and
50000000
13000000 VND/month
2 drivers (4000000 each)
and 2 drivers assistant (2500000
each)
Receptionist 3000000 VND 3000000 VND/month
Depreciate Cost 2 000000 VND 2 000000 VND/month Check the computer
Transportation
maintain
2600.000 VND 2600.000 VND
Change oil (separate payment)
Replace engine oil filter (separate
payment)
Cleaning the air filter engine
Raise vehicle inspection and
tightening of chassis
Additional check coolant,
windscreen washer, oil support
Maintenance wheel brake 04
Island tire
Purchasing truck 547000000 VND 547000000 VND
cooling systemwith volume is
1,4T(purchase 2 time )
Internet 5000000 VND 5000000 VND creating and keeping the website
Food Expert (2) 3.5000000*2 7000000 VND /month
Advertising 70000000 70000000/ year
Banner, leaflet, website,
workshop
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The investment plan of first year:
1st month 617000000 VND
2 month after 67.323.950 VND
4th month 617000000 VND
8 month after 67.323.950 VND
The table prices below show what kind of vegetable we will sell and their price
Total income for selling 100kg each is equal: 46,912,000vnd/1.5ton which fit the
demand of 400 people per week.
People in HCM city consumed about 1,200ton of vegetable each day and there only 5-6
ton is fresh and high quality, it’s only take about 0.005 percent. Our supplier is a group
of 10 families in BaoLoc.
Price
Egg plant 12600vnd/kg
Bean 24300vnd/kg
Broccoli 55000vnd/kg
(white) Cabbage 12000vnd/kg
Cauliflower 52000vnd/kg
Chilli 5200vnd/kg
Cucumber 8400vnd/kg
Ginger 17600vnd/kg
Onion 14300vnd/kg
Parsley 22500vnd/kg
Pea 68000vnd/kg
(green) Pepper 29900vnd/kg
Potato 23400vnd/kg
Radish 25200vnd/kg
Spring Onion 42200vnd/kg
A PLUS
23 FRESH DELIVERY
23
Period First 3 months Next 3 months Last 6 months Next year
Activities
Base on the cost table
we have above, for the
first year we have to
spend about
1,234milion vnd for
investment and all
relative cost. Like we
mention before the first
period time is when we
gain the customer’s
trust, so our plan is sale
to about 200 customers
/week with 1.5 ton. So
the total income in first
three month will be
28,147,200vnd /
3month.
After gaining trust
for three month
the customer will
come more, order
more our
prediction will be
about 500 ones
and same so the
total income for
the next 3 month
period will be
about 703,680,000
vnd/ next three
month with.
The last six
month the
customer will be
around 700 then
the income is
1,970,304,000
vnd/6 month.
The total income
for first year is
830,342,400 vnd.
The next year we
will keep the
flow stable with
700 customers
for the next 3
month, the
income will be
738864000vnd /
3 first month of
second next
year. Then
increase the
customer to 900
customers and
same 4.5ton per
week for the
next 3 month
then we have
1,266,624,000.
For the month after and so on we will have profit this mean we will have all the
investment back after 1 and half year.
The income will have tax with 10 percent base on VietNam policy and we pay the
supplier 40 percent of the income.
 The first year income: 1,459,150,848 vnd (after subtract tax and supplier
payment)
 The first year investment: 2,041,887,400 vnd.
 So we still need about 582,736,552vnd.
 The second year income: 1,082,963,520vnd (after subtract tax and supplier
payment)
 The second year investment the remaining loan: 986,680,252 vnd
 The second year profit at 6th month is 96,283,268 vnd
A PLUS
24 FRESH DELIVERY
24
Graph about income and investment in first two year.
Graph about profit:
0.00
100,000,000.00
200,000,000.00
300,000,000.00
400,000,000.00
500,000,000.00
600,000,000.00
700,000,000.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Income Investment
-800,000,000.00
-600,000,000.00
-400,000,000.00
-200,000,000.00
0.00
200,000,000.00
400,000,000.00
600,000,000.00
800,000,000.00
1,000,000,000.00
1,200,000,000.00
1,400,000,000.00
year1 year2 year3
A PLUS
25 FRESH DELIVERY
25
III.PAIN & GAIN
1. PAIN
Any process that make an idea comes to life always encounter with many
trouble and a successful business is the one that overcome it all. Our idea” Fresh
Deliver” want to be join the services industry that enhance customer satisfaction – the
feeling that a product or service has met the customer expectation. We deliver fresh
green to the door of our consumers through well- design website and flexible operating
system. But through the all procedure of making this idea alive, we have face many
riddle that need to be solve.
First problem is the supplier. We have a fixed supply under contract but it is
quite unstable. Although the technology in farming has been advanced in the recent
year, it still relies on the weather and so many things can go wrong with all the bugs,
disease. The uncertainty concerns us as how can we make sure that we always have the
best green and have enough to provide to our consumers. Our team has done some
research and come up with a solution, we need to be flexible. We have another supply
in case of shortage is that we will buy the product from the Food Supply Chain that have
VIETGAP standard, the green with the same quality. Also, we intend to develop a
networking production at Bao Loc city.
One major problem is how to convince the farmer to work as a network and
cooperate with us. One of our solutions is that we can provide them some benefits:
training class where expert come and teach farmer about the latest technology,
productive seed. Also, we let the farmer decide the quality of the green that they can
provide, so that they can be more flexible and the contract will not be burden to the
farmer any more. Second is the payment situation. We are an online shop with all the
transaction through the website, we think that we should provide some options that our
customer can have more choice. But the chance that they will cancel the order is quite
high and we can’t store the vegetable for a long time, so we decide that the payment is
in form of credit and debit card.
Finally, one problem that we have to tackle is that transportation. The
refrigerated truck is kind of expensive but it a must when we transfer vegetable in a long
distance. We reduce cost, we will hiring truck company in Bao Loc and charging by
contract. After two year, we will try to buy our own truck, because transportation is the
biggest cost of our process. If we have our own trucks, we can save more money and get
A PLUS
26 FRESH DELIVERY
26
more profit. The time is short, the human resource is lacking and we also accompanied
with studying, we all try our best to make the best business model canvas.
There are so many problems but as long as we stay as a united team that
dedicated our best to make a detailed business model canvas that can help our idea
jump out of the paper and came into life.
Pain
The insecure green source:
- Unclear source
- Chinese products
Cost time
Unstable price
Afraid of chemical, pesticide, growth
products
Pain killer
The farm under standard condition and
quality VietGAP
fresh green
Delivery to your home
Fixed price
Detailed information about the product
A PLUS
27 FRESH DELIVERY
27
2. GAIN:
There have some gains from our project make benefit for our customers and
make this project different from others.
 “Fresh Delivery” is an entrepreneur service makes fresh vegetable resources for our
customers in the market. Depend on that, we are trying to build new model up
which bring good vegetables for people’s health.
 There are some benefit for our customers in Ho Chi Minh City:
 Our customer’s segments are officers have no time to take care of
themselves in choosing the best fresh vegetables in the market/supermarket.
Therefore, “Fresh Delivery” service can help them saving time to not worry
about the quality of vegetables by ordering in the internet. Moreover,
customer can buy the higher quality products with cheaper cost from a
company has high reputation. Because we cooperate with the suppliers who
is the household in Lam Dong City, the price of products will be lower triple
times than the other in the market or supermarket
 By building this model delivery up, we are trying to rise up the perception of
customer about the important of quality in buying vegetables, especially buy
at the market. They will have a comparison between fresh vegetables and
poisonous vegetables after they use our service for a while time. There has
many situations that people was sick or has problem with their health for
using unknown products/vegetables.
 In the internet, we create a website and Fan page to connect with customers
easily. They do not have to waste time to go out. They do just skim our
information’s products online and pick the combo they want to order. It’s
very useful and has the interaction between customer and our company.
 “Fresh Delivery” is the model different from other by connecting the household with
each other in Lam Dong City. From the past, household is often product their own
products to get benefit and earn money but it is not efficient and is an individual
model. In converse, Fresh delivery try to gather all of the household to become
partners who create a link networking in business and rise the benefit up. It means
that household is not only our suppliers but also our customers.
 In addition, Officers and young mothers always try to find good resources for
supplying fresh vegetable with suitable price. So, the model of Fresh Delivery is the
A PLUS
28 FRESH DELIVERY
28
one of models our customers who are trying to looking for which flexible for their
demand. For that reasons, we did a marketing research to know the demand of
customer which flexible and do for customer. “ALL FOR CUSTOMERS, HIGH AND
BEST SERVICE”
 Besides, we can reduce the number of unemployment in Lam Dong City by using
labor in there and training specific skills for them. We are trying to create a job for
people to earn their own life and improve the perception of business model in
people by training communication skills, networking skills and delivery skills
effectively.
 In the future, we are trying to expand this model out of Lam Dong City to create
more jobs for labors and improve the perception about using fresh vegetables in
customers’ mindset.
3. TRUMP CARD:
The difference between us and other are value proposition. Nowadays, people do
not care about their health from the way to buy or choose fresh vegetables with high
cost than real. We can count that the price will be lower than 30% because we delivery
products from household. That is the reason why we are trying to give them a better
way to improve their health with cheaper cost. In the market or supermarket, the
products are packaging in plastic in a long period without fresh. However, we analyzed
products under some of quality controls: Safe vegetables (SV), GAP (good agricultural
practices) or Viet GAP (Process on good agricultural practices for fruit and vegetables
fresh safety in Vietnam). This service is not only good for customer’s health but also
convenience for saving time by ordering products to their house or offices. Besides, our
segment customer is officers and young mothers so their children will be took care
much better than the past. The children are the next generation for changing our world;
so, we did care a lot of about the adult and now we have to take care more and more.
Moreover, when the customer get used to this service, their perception about using
fresh and clean vegetables will be increased. The habit is the most important factor
influences our action nowadays. It leads to creating a new tendency in household
market. Next, there has 4000 labors do have not work which means that the rate of
unemployment is very high. This project will decrease that number and increase the
income of labors in Bao Loc City. During the research, the income of people is 31
million/year which will be increased 2 times if they join in our project. If this service is
A PLUS
29 FRESH DELIVERY
29
succeed, the rate of unemployment will decrease more and more in Bao Loc City
because this service is very easy to join in and make them have fixed their own
outcomes. In addition, we can improve the way we can exchange and buy vegetables in
Bao Loc City and Ho Chi Minh City by using the Internet. In the past, a lot of fear for
online purchases due to old buying habits of customers and infrastructure not
developed, but at present, e-commerce and social networking are some progress more
important. We believe that our services will provide the customers the best convenient
and time - saving with the best product and services. Finally, People in Bao Loc City will
have new business to increase their income and make the neighbors closer by
cooperate with each other. Additionally, the labor and farmer join in our service will be
trained some specific skills to increasing their own skills like Planning and Analyzing Plan
Skill, Communication Skill. That’s the best way they can have a vision and perception in
what they are doing, what they have tried to do, how they can improve their own
products, what they can make a deal with their customers.

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Mastermind - Fresh delivery

  • 1. Team’s Name: A PLUS (A+) This is a project creatinga business process to deliveryfresh products/vegetables from Bao Loc City to officers in HCM City.This project helps societyby creating a new business model in Bao Loc City. 3/31/2013
  • 2. A PLUS 1 FRESH DELIVERY 1 TABLE OF CONTENTS I. Introduction…………………………………………2 1. Idea’s summary……………………………………………………2 2. Team’s description……………………………………………….3 II. Business Model Canvas………………………..4 1. Key Partners…………………………………………………………5 2. Key Resources………………………………………………………8 3. Key Activities……………………………………………………….9 4. Value proposition……………………………………………….11 5. Customer relationships……………………………………….14 6. Channels……………………………………………………………..15 7. Customer segment………………………………………………19 8. Cost structure & Revenue stream……………………….20 III. Pain & Gain………………………………………….25 1. Pain……………………………………………………………………...25 2. Gain………………………………………………………………………27 3. Trump Card…………………………………………………………..28
  • 3. A PLUS 2 FRESH DELIVERY 2 I.INTRODUCTION: 1. IDEA’S SUMMARY: Nowadays, economic has developing day by day and the technology in planting of famer has changed. First, the officers has no time to go out or searching about the quality of vegetable; so they have two options that buy inequality vegetable or do not buy anything. Secondly, the farmers in Bao Loc city have large resources of vegetable, but they do not know how to form it into a process and sell it to customer. With these reasons, we decide to build a fresh vegetable delivery from Bao Loc city to the officer in Ho Chi Minh City in season. In Bao Loc city, we will gather some households into a business process and gather their product to sell customers in Ho Chi Minh City. We will have deal/contract with them about the standardizing quality of vegetable that they sell for us in specific days. Each period will be 5-6 days. Beside that, we will create a website and a hotline to connect customers who need our fresh vegetable delivery. Then, when the farmers tell us their quality at the beginning of period, we will announce the list of products available through our website or their contact (for our customers that we will have these kinds of products). Customers will connect with us to order if they need a big quality products/vegetable. We also build up a delivering service direct way to customers by trucks, which reduce the cost. All of this project will bring benefit to farmers in Bao Loc and officers/customers in Ho Chi Minh City by finding an output for farmers’ products and satisfying the demand of officers. We are not only the people who sell vegetables, we are also the ones who help farmers and officers connect together.
  • 4. A PLUS 3 FRESH DELIVERY 3 2. TEAM’S DESCRIPTION: Bùi Việt Tiến Avisor Lê Đăng Khoa Financemanager Nguyễn Thị Phương Trang Marketing manager Mai Hồng Ngọc Human resource manager Lý Thị Mai Hương Manufacturing manager
  • 5. A PLUS 4 FRESH DELIVERY 4 II.BUSINESS MODEL CANVAS
  • 6. A PLUS 5 FRESH DELIVERY 5 1. KEY PARTNERS:  Our partners: There are five kinds of partners that cooperate to create our value chains. Each of them have different roles, however, they are all important. The reason to list out them there is showing a big view in our production systems. Partners Roles Ways Household Farmers who grow vegetable Gathering famers in Bao Loc city into a group 10 people at the first time; then, expanding this group later. Transportation services We will sign contract with them to delivery our product from Bao Loc to HCM city Buying a refrigerator truck, because transportation is the biggest cost of our process. If we have our own trucks, we can save more money and get more profit. Moreover, on the way, trucks will be hanged out our banners to advertise also. They also have to be on time and careful, because our products are vegetable. Food inspectors They will belong to our project, and check if standard of famers’ vegetable meet our goals. Hiring these experts to check not only products but also producing process. We have to make sure that products that we receive reach standard of VietGAP. Advertising company Building brand is one of the most important points to develop our project, so we will pay more for advertising, both online and offline. Cooperating with journalists, media means, training skills service, etc.
  • 7. A PLUS 6 FRESH DELIVERY 6  Key partners and key suppliers: Our key partners are famers who grow vegetable in Bao Loc city. Because our key partners are also people who contribute our products, they are also counted as our key suppliers. We choose Bao Loc city because three reasons. First, in this area, cultural rate is 6%. This is a high rate. And the rate of people growing vegetable is very high. There are several household who choose growing vegetable as a main way to create income. Moreover, one of the disadvantages of producing in Bao Loc city is that people do not work in network. They do it in private. Therefore, we want to create a base for developing network production system. This can help people to create added value, as well as upgrading valuable functions, productions, process, as well as other inter- sectors. Another reason is that Bao Loc city is not considering as a developed economy. Rate of poor people is 3%. Number of people who do not have job is 4000 people. The income of people in this place is only 31 millions per year. We hope that our system can help people to get higher income and improving their standard life. By gathering people in process producing vegetable, they can have more push to create products. Moreover, we will organize events that training growing vegetable effectively if we can make a networking of production in Bao Loc city. On the other hand, we also train our employers, who delivery our products. By this way, we will create more jobs for people. The other reason is Bao Loc is near Ho Chi Minh City. Da Lat is one of the most popular places which provide vegetable for HCM City. Although Bao Loc city has the same environment as Bao Loc city and have enough standard to growth as same as vegetable in Da La city, Bao Loc is closer to HCM City than Da Lat. It takes 7 to 8 hours to drive from Da Lat to HCM City, but there is only 5 hours way to drive from Bao Loc to HCM City. Our core customers are officers who work in HCM City. Therefore, by choosing Bao Loc city, we will save more time and money. Vegetable is also fresher. Our partners in Bao Loc city have to follow these conditions. Firstly, our project is delivering vegetable; therefore, they have to have experience in growing vegetable. Secondly, the poor will be priority in our project. We will link poor people live together to build a network. Our process is differentiated because we not only focus on creating added value and profit, but also society problems. Thirdly, they agree to sign contract with us about: following VietGAP standard, providing products by deadline, as well as protecting our brand – name. Because we are a company and we have our own brand, therefore, they have to
  • 8. A PLUS 7 FRESH DELIVERY 7 corporate with us and not support for others to destroy our brand or leave out to create their own brand.  Key Teams: Teams Functions Task Marketing Online Managing online channel to build our brand like email, website, Facebook, newsletter, etc. Offline Organizing events like workshop, fieldtrip, and training staffs. Project Production Producing and harvesting vegetable to sell. Farmers are also counted as our team. Testing quality Testing to make sure our products reaching VietGAP standard. Training Organizing training growing effectively to develop our outputs. Delivery Package Packing our product into ordered package for specific people. Delivery Delivering vegetable from Bao Loc to HCM City. Finance Cash flow Counting the revenue, profit, loose, etc. And setting plan for handle financial problems.
  • 9. A PLUS 8 FRESH DELIVERY 8 2. KEY RESOUCES  Key Resources: Conditions Ways Quality Clean This is the most important condition in our project, because our project is “Fresh delivery” and we expect to bring our customer products which have clear origin. To do this, we will check our product each one month as it is growing. And checking when it is harvested. Moreover, we will have experts team to do this. Especially, our product has to be reach VietGAP standard. On time Our system working depends on the harvest time of farmers. Therefore, our products have to be harvested on time to be sure that we can package it and delivery it on time to our customer. Quantity Enough Farmers have to delivery their products for us as same as the quality that they agree to sign on contract. We are different from others company that we let our partners show the quality of products that they can get. We have asked Bao Loc people about cooperating to delivery vegetable to CoopMark Supermarket in Bao Loc city. They said that they did not want to corporate with supermarket because the supermarket forced them to sign the number as the supermarket showed. However, farmers were not sure to get this number. Therefore, they can be free to choose the number to corporate with us. Farmers can base on their experience to give us specific number of quantity that they can handle. If they do not do as the contract, we will have some rules depending on contract as well as we have to find another back up sources.
  • 10. A PLUS 9 FRESH DELIVERY 9 3. KEY ACTIVITIES The key activity of “Fresh Delivery” company is that we create a standard process to transfer the greens from Bao Loc’s farmer to your doorstep. We will manage a website that continuously updates the green available for customers to choice. In this website, we also provide the news of our farmers, the quality of our greens and customer services. You can purchase vegetable online, advanced payment or cash payments are all acceptable. The farmers are under our contract with the standard condition of the quality and quantities of the greens. The farmer will provide us an estimated number of the product, and then we will offer you a combo of green with a wide range of diversity that will be delivering in a specific date in the future. From the supplier, we will sort it out into portion and deliver it to you.  Supplier: Our “Fresh Delivery” process begins with the suppliers. We will choose a specific region of Bao Loc and develop a collaboration, etc. The farms will operate under the VIETGAP – Process on good agricultural practices for fruit and vegetables fresh safety in Vietnam that would provides us fresh food under the certificate of Ministry of Agriculture & Rural Development. Every three months, we will have an expert check the condition, quality of the farm and quality of the product. We promise you the best green growth in the best environment that ensures to give you the best nutritious vegetable. All the farmers will be under our contract, committed to provide the greens with high quality. Half season we will sign contract with the estimated quantity that they can provide us.  Products: A diversity of green will be at your services: salad, basil, spinach, pumpkin, wacky pumpkin, basely Alba… a variety product such as: compo green, big set, small set that we offer can help you buy vegetable at a lower price.
  • 11. A PLUS 10 FRESH DELIVERY 10 Picture English aborigine egg plant bean broccoli (white) cabbage cauliflower celery chili cucumber garlic ginger kohlrabi mushroom onion parsley pea (green) pepper potato radish spring onion (Brussels) sprouts zucchini, curette
  • 12. A PLUS 11 FRESH DELIVERY 11  Website: All you have to do is click to our website and discover a world of fresh vegetable with high quality. The website will contain all the information you need to know about us. It will provide the information of our process and suppliers. It also presents all kind of vegetable and services that you prefers, including price. The procedures to buy our product will be very easy and we accept both credit and cash payment  Delivery: After the transaction, we will confirm all the information that you have fill above with an email. We will record all the transaction, and delivery two times per week. First period will be closed on Monday, and the second on Wednesday. The order will transfer to Bao Loc where the entire product will be packaged and will be gather together according to the order after harvesting. They will be preserve in the basket, transfer by the refrigerated truck to keep the freshness of the vegetable. They will be delivered on Wednesday and Friday buy the truck according to the recorded list. We will delivery our products directly to the offices. As research, there are 74% people agree with this way. It is one of our benefits to reduce transportation cost because we can delivery several people at one time. Moreover, we can expand our brandmane by this way. We did a survey on 200 officers, and this is the result of this: Content Agree to pay by cash Shop online Delivery products to offices Shop 2days per week Rate 81% 61% 74% 58% 4. VALUE PROPOSITION: Average daily, Ho Chi Minh City consumes over 2,000 tons of vegetables. Vegetable city’s supplier is up just under 20%, the rest are mainly imported from the province of Lam Dong, Tay Ninh, Long An, and some Northern provinces. Most of the vegetables - tubers - fruits (VTF) in the wholesale market, even in the supermarkets in Ho Chi Minh City have residues of crop protection products (pesticides). This is a very worrying situation for the health of consumers.
  • 13. A PLUS 12 FRESH DELIVERY 12 Many consumers are very worried about the source of all the food they are eating every day. There are many risks such as: bug spray, chemical fertilizer, etc. So, we are committed to provide the fresh green with the best quality, right to your house. It can help the white- collars workers with a limited time enjoy healthier meals. It will be a trusted sources for the wives, mothers, daughters who are taking care of their family, giving the best and nutritious food. The farmer will produce under this quality control: safe vegetables (SV), GAP (good agricultural practices) or VietGAP (Process on good agricultural practices for fruit and vegetables fresh safety in Vietnam) Another source is that our company will engage in the food safety chain. Food safety chain is the link between the production facility, food business, and hygiene standards from farming, to the dinner table. The facility will operate in closed circle; in principle that they can only receive input from members of the supply chain. Output can be sold at the supermarket chain members, or at the store, agent. Consumers will recognize the product of the chain on the basis of the certification mark printed on the package management, product labels. To participate in the chain, the manufacturers have to meet the regulations related to business, and safety standards of food hygiene and safety. If they meet the rules, they will be issued a certificate of food safety. If the post-inspection process is not done correctly manufacturer, granting agencies will revoke the certificate and delete the name of the manufacturer out of the chain. And participating in the chain, the manufacturer may use Safe certification to promote the brand. Department of Health information on product certification is posted on the website and other means of mass communication to consumers to make sure about products. Currently, the population use social networks, more specific, Facebook grew 34 percent in 2011 compared to 2010. This number tends to grow in the future.
  • 14. A PLUS 13 FRESH DELIVERY 13 Source: (Net Index 2011, 03/08/2011) Graph about development of Internet in 2010 - 2011 Young subjects (15 - 24 years) in Vietnam are the most frequently used social networking (71 - 73%). In the past, a lot of fear for online purchases due to old buying habits of customers and infrastructure not developed, but at present, e-commerce and social networking are some progress more important (39% are likely to purchase online within the next 12 months). We believe that our services will provide the customers the best convenient and time-saving with the best product and services.
  • 15. A PLUS 14 FRESH DELIVERY 14 5. CUSTOMER RELATIONSHIPS Types Characteristics Ways Single Relationship customer: Want you to know who they are and what they need Market research to find out what they really want and need, constantly offer new combo to attract them. Married Partnership Customers: Have a high relationship and high information need. They want you to be proactive , to know them well and to educate them Always provide detail information and well design product package. Promotion campaign with the gift along with the combo, add more value to the products. All of our activities are to serve to establish and maintain the customer relationship. The marketing research, the detailed information in the wrapping, the information of our supplier, the gift along with the product are all particularly discuss in our business model canvas. The customer is the most important stakeholders of our business. The cost is considered acceptable because it helps to achieve customer’s satisfaction, which help to create and maintain the bond between our businesses with the customers. •harvest •package supply the customer made an order, advanced payment website by trucktransfer •to the custmers •received bill delivery
  • 16. A PLUS 15 FRESH DELIVERY 15 6. CHANNELS We divide our marketing campaign into 3 periods: 3 months, 6 months and 1 years. Our company will base on the B2C method and using the advantage of our projects for their help to encourage them take participate in our process. In Ho Chi Minh City, our segment of customers is officer and diet people. Those kinds of customers is easier get touched by uploading information on online channel and offline channel First step to analyzing the demand of customer and the value of our project, we have planned to finish a marketing research in few months:  Marketing research  Database: 400  Measured brand awareness before, during and after each marketing stage. Including our form of research, we can add some summarize information about our project to let them know more about our company. o Example: FD is the process of producing fresh vegetable planted by household farmers in Bao Loc City. In Bao Loc City, we will gather some households into a business process and gather their product to sell customers in Ho Chi Minh City. Each period will be 5-6 days. Besides that, we will create a website and a hotline to connect customers who need our fresh vegetable delivery. Then, when the farmers tell us their quality at the beginning of period, we will announce the list of products available through our website or their contact (for our customers that we will have these kinds of products). Customers will connect with us to order if they need a big quality products/vegetable. We also build up a delivering 3 months • Target: 200 cusomters (core customers) • Building Brand by advertising and introduce to customers 6 moths • Target: 500 customers • Maintain and build up the relationship and loyalty in customers 1 years • Target: 700 customers • Reward and promotion for core customers to maintain the relationship.
  • 17. A PLUS 16 FRESH DELIVERY 16 service direct way to customers by trucks, which reduce the cost. All of this project will bring benefit to farmers in Bao Loc city and officers/customers in Ho Chi Minh City by finding an output for farmers’ products and satisfying the demand of officers. We are not only the people who sell vegetables, we are also the ones who help farmers and officers connect together.  Study customer satisfaction and identify opportunities for future developments  Online: Creating the form online to spreading out on Facebook, email and yahoo  Offline: Printing research form and give it to the officer and collect it immediately for not harmful to environment. It is about 200 forms.  Online Channel  We build a website up to advertise and update our products’ information for our customer. Through this website, our customer will know how to take an order and when we have new arrivals. This one is the most important channel of us. On the website, we will upload our products such as: artichoke, asparagus, (white) cabbage, cauliflower, cucumber, etc. It also writes briefly the quality, date of production, date of delivery, household famer’s name, and how many kilogram vegetables are sold and left which they can have all of the information they need. On website, we also plan update the confession of customers took participant in our process and the number of customers is increasing day by day. It can make our potential customer believe in our products; so they can consider about our products is very convenience, fresh and cheap.  TVCs: Creating a short video for advertising on Internet or. This plan will be run when we have enough money in middle period. The script of video will show the meaning of our project to bring the best quality for children generation and people. We will summary a short idea for you that focus on the health of the children in Ho Chi Minh City. One of the young mothers and officer use fresh vegetable, it means that they give a hand to encourage people use fresh vegetable. Moreover, a fresh vegetable they receive from us is an opportunity for their children has a strong life with good health. “EVERYTHING GOOD FOR YOUR CHILDREN” will be the main idea of our project.  As we know that, Facebook is the most famous channel of teenager but also used by 80% of officers. Here is a look at how the number of active users at Facebook has grown:
  • 18. A PLUS 17 FRESH DELIVERY 17  1 million — End of 2004.  5.5 million — End of 2005.  12 million — End of 2006.  20 million - April 2007 . Create a Fan page on Facebook is the best way to attract customer and spread out our brand. To let people know who we are, we can upload and design some video clip about process of making product. Moreover, some contest or funny question have award for the winner can be a good strategy to create our own linked networking.  Email Marketing is a tendency channel for all of marketing departments can reach our customer immediately through their personal day. We can create a chain of Officers’ Database and send them an email to introduce about our project. Why do we choose email to be one of our channels? Officers are the people who connect with computer directly and work with it day by day. Therefore, we can send our information to our customer segment as fast as we can rather than invite them one by one. Besides, we will not disturb them directly and let them feel free to enjoy our service.  Newsletter is an online magazine to summarize/provide monthly report of our company to customer. It will be design in a specific way and contain only 4 -5 news during last month. It is the bridge between our company and customer which make they know what we have done and what we are doing.
  • 19. A PLUS 18 FRESH DELIVERY 18  Offline Channel  Workshop: In the starting of our start-up, we also plan to open a small workshop to introduce about our service to segment customers. We will give them some promotion or discount card for going to Galaxy Cinema, Lotteria Fast food, Gloria Jean Coffee, Starbuck Coffee, etc.  Field trip: We plan to have some field trips for our customers in two times per months. With this plan, we reach two benefits for keeping customer relationship. First, we can maintain the relationship between our company and customers by treating them at a friend who we want to bring best things for their health. Secondly, we help them understanding about the processing of harvest and product products clearly which make them believe in our quality’s product. Another plan is raising promotion for loyal customer. It means that a customer will received a discount of 50% price if they invite more six people join in our delivery. This way will bring to them some benefits and help their friends have a fresh vegetable resource which good for health.  In long-term periods, we will build a retail up which has our brand name for delivering products to customer more easily and conveniently. In this generation, customers believe in famous brands that they do believe that its quality’s products are better than another’s. In B2B marketing, the brand problem are ranked at number 10 in the list of affected things that customer want to consider. In converse, in B2C marketing, the brand problem is rank in the number 1st. It means that company’s brand in the market affect customer’s thinking in perfect ways.  Along with this contribution, we will display several clips and documents as emotional strategy to create advantage. This is to inform people about:  Our products have the qualities difference from others competitor and the vegetable in the market/ supermarket. It is the product of a long process done by a lot of household on Lam Dong Province. The fresh vegetable planted by farmers and has not any harmful for health. It means that when our customer will join in projects, they also encourage people using good/fresh vegetable and limiting the consumption of poisonous vegetable. This is a convenient service is used to help business people and develop online sale in Ho Chi Minh City about food and vegetable. It is safe your time and make sure about the real quality which you know where it come from.
  • 20. A PLUS 19 FRESH DELIVERY 19  Direct sales: distributing brochures and offer letters about FD bricks and directly introducing the products to the construction companies and architecture design companies. We can also do direct sales to the current construction sites or construction biddings to gain more customers. Upon the researches done on the preference of choosing bricks, price is the main factor that affects the final decision of the contractors.  Banner/ Sticker on Truck: We decorate our truck with our brand name and contact for everyone can see on the street. Uniform: Our staff will have our own brand name’s uniform which make them more professional and more polite to our customer. Our uniform will be T-shirt with our own color attract people in the first sight. 7. CUSTOMER SEGMENT Our kind of segment is differentiated segment. This is a market that we decide to focus only officers. And in these segments, we will divide into three keys groups to design different offer for them. Market of vegetable is big. However, we will focus on officers only because of these reasons. Firstly, they know to use Internet (our products are ordered and paid online). Moreover, they have stable income. The third one is that they have strong relationship with other officers in their building. And the last one is that they do not have time to shop. Geographic World region or country Viet Nam Country region Ho Chi Minh City Size Choose two big building at first, under 200 people Demographic Age 25 – 45 Gender Female, male Family life cycle Married, single Income 3 – 10 millions Religion Buddhism Psychographic Social class Uppers middle and upper class Personality Careful Lifestyle Vegetarian Behavioral Benefits Quality, quantity, service, convenience, speed Attitude toward products Positive, positive, supportive, active
  • 21. A PLUS 20 FRESH DELIVERY 20 8. COST STRUCTURE & REVENUE STREAM:  Cost structure: The most important cost inherent in our business model is capital activity, because we need large amount of money which helps us to maintain the system which includes all the payment and transaction. The most expensive key resource is quality. We need expert to ensure the quality of product which will be delivered to the customer, in the other hand to keep the quality of product perfectly to also need to purchase new item which cost a lot too. The most expensive key activity is with supplier because it contains most of expensive resource. We will focus on the value driven. We want to offer the best price for the customers and also the profit for the suppliers. The fixed cost include: the salary for experts, staffs and workers, the house’s payment, the transport truck, machine, internet payment. The variable cost: gas, shipment, cost when we receive the product.  Revenue stream: The customer will pay for our product because of its quality, we offer to them the product with high quality and good price which is good deal for them. They pay for the health and other sake. Healthy food brings good health and provides profit for the suppliers which help to improve the society. Like we mention before the customer and pay us by directly cash or by credit card however to ensure that they will buy the product we have a policy which asks them to pay at least haft price of product which is purchased. They can contact us directly by go to our agency.
  • 22. A PLUS 21 FRESH DELIVERY 21 The table above show how much money we have to invest in. We have 2 periods because for the first period is when we build our trust for the customer then after gaining trust we go for the second period which is when we actually do the business. Capital labor Description Cost Condition Electricity 300 KWh/ month 323.950 VND/month Worker's salary (10 labors) 20000 VND/hour 28000000 VND/month/shift At least 7 shifts and max 10 shifts per week 5 hours/shift 40000000 VND/month/10 shift Capital Labor 8000000and 50000000 13000000 VND/month 2 drivers (4000000 each) and 2 drivers assistant (2500000 each) Receptionist 3000000 VND 3000000 VND/month Depreciate Cost 2 000000 VND 2 000000 VND/month Check the computer Transportation maintain 2600.000 VND 2600.000 VND Change oil (separate payment) Replace engine oil filter (separate payment) Cleaning the air filter engine Raise vehicle inspection and tightening of chassis Additional check coolant, windscreen washer, oil support Maintenance wheel brake 04 Island tire Purchasing truck 547000000 VND 547000000 VND cooling systemwith volume is 1,4T(purchase 2 time ) Internet 5000000 VND 5000000 VND creating and keeping the website Food Expert (2) 3.5000000*2 7000000 VND /month Advertising 70000000 70000000/ year Banner, leaflet, website, workshop
  • 23. A PLUS 22 FRESH DELIVERY 22 The investment plan of first year: 1st month 617000000 VND 2 month after 67.323.950 VND 4th month 617000000 VND 8 month after 67.323.950 VND The table prices below show what kind of vegetable we will sell and their price Total income for selling 100kg each is equal: 46,912,000vnd/1.5ton which fit the demand of 400 people per week. People in HCM city consumed about 1,200ton of vegetable each day and there only 5-6 ton is fresh and high quality, it’s only take about 0.005 percent. Our supplier is a group of 10 families in BaoLoc. Price Egg plant 12600vnd/kg Bean 24300vnd/kg Broccoli 55000vnd/kg (white) Cabbage 12000vnd/kg Cauliflower 52000vnd/kg Chilli 5200vnd/kg Cucumber 8400vnd/kg Ginger 17600vnd/kg Onion 14300vnd/kg Parsley 22500vnd/kg Pea 68000vnd/kg (green) Pepper 29900vnd/kg Potato 23400vnd/kg Radish 25200vnd/kg Spring Onion 42200vnd/kg
  • 24. A PLUS 23 FRESH DELIVERY 23 Period First 3 months Next 3 months Last 6 months Next year Activities Base on the cost table we have above, for the first year we have to spend about 1,234milion vnd for investment and all relative cost. Like we mention before the first period time is when we gain the customer’s trust, so our plan is sale to about 200 customers /week with 1.5 ton. So the total income in first three month will be 28,147,200vnd / 3month. After gaining trust for three month the customer will come more, order more our prediction will be about 500 ones and same so the total income for the next 3 month period will be about 703,680,000 vnd/ next three month with. The last six month the customer will be around 700 then the income is 1,970,304,000 vnd/6 month. The total income for first year is 830,342,400 vnd. The next year we will keep the flow stable with 700 customers for the next 3 month, the income will be 738864000vnd / 3 first month of second next year. Then increase the customer to 900 customers and same 4.5ton per week for the next 3 month then we have 1,266,624,000. For the month after and so on we will have profit this mean we will have all the investment back after 1 and half year. The income will have tax with 10 percent base on VietNam policy and we pay the supplier 40 percent of the income.  The first year income: 1,459,150,848 vnd (after subtract tax and supplier payment)  The first year investment: 2,041,887,400 vnd.  So we still need about 582,736,552vnd.  The second year income: 1,082,963,520vnd (after subtract tax and supplier payment)  The second year investment the remaining loan: 986,680,252 vnd  The second year profit at 6th month is 96,283,268 vnd
  • 25. A PLUS 24 FRESH DELIVERY 24 Graph about income and investment in first two year. Graph about profit: 0.00 100,000,000.00 200,000,000.00 300,000,000.00 400,000,000.00 500,000,000.00 600,000,000.00 700,000,000.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Income Investment -800,000,000.00 -600,000,000.00 -400,000,000.00 -200,000,000.00 0.00 200,000,000.00 400,000,000.00 600,000,000.00 800,000,000.00 1,000,000,000.00 1,200,000,000.00 1,400,000,000.00 year1 year2 year3
  • 26. A PLUS 25 FRESH DELIVERY 25 III.PAIN & GAIN 1. PAIN Any process that make an idea comes to life always encounter with many trouble and a successful business is the one that overcome it all. Our idea” Fresh Deliver” want to be join the services industry that enhance customer satisfaction – the feeling that a product or service has met the customer expectation. We deliver fresh green to the door of our consumers through well- design website and flexible operating system. But through the all procedure of making this idea alive, we have face many riddle that need to be solve. First problem is the supplier. We have a fixed supply under contract but it is quite unstable. Although the technology in farming has been advanced in the recent year, it still relies on the weather and so many things can go wrong with all the bugs, disease. The uncertainty concerns us as how can we make sure that we always have the best green and have enough to provide to our consumers. Our team has done some research and come up with a solution, we need to be flexible. We have another supply in case of shortage is that we will buy the product from the Food Supply Chain that have VIETGAP standard, the green with the same quality. Also, we intend to develop a networking production at Bao Loc city. One major problem is how to convince the farmer to work as a network and cooperate with us. One of our solutions is that we can provide them some benefits: training class where expert come and teach farmer about the latest technology, productive seed. Also, we let the farmer decide the quality of the green that they can provide, so that they can be more flexible and the contract will not be burden to the farmer any more. Second is the payment situation. We are an online shop with all the transaction through the website, we think that we should provide some options that our customer can have more choice. But the chance that they will cancel the order is quite high and we can’t store the vegetable for a long time, so we decide that the payment is in form of credit and debit card. Finally, one problem that we have to tackle is that transportation. The refrigerated truck is kind of expensive but it a must when we transfer vegetable in a long distance. We reduce cost, we will hiring truck company in Bao Loc and charging by contract. After two year, we will try to buy our own truck, because transportation is the biggest cost of our process. If we have our own trucks, we can save more money and get
  • 27. A PLUS 26 FRESH DELIVERY 26 more profit. The time is short, the human resource is lacking and we also accompanied with studying, we all try our best to make the best business model canvas. There are so many problems but as long as we stay as a united team that dedicated our best to make a detailed business model canvas that can help our idea jump out of the paper and came into life. Pain The insecure green source: - Unclear source - Chinese products Cost time Unstable price Afraid of chemical, pesticide, growth products Pain killer The farm under standard condition and quality VietGAP fresh green Delivery to your home Fixed price Detailed information about the product
  • 28. A PLUS 27 FRESH DELIVERY 27 2. GAIN: There have some gains from our project make benefit for our customers and make this project different from others.  “Fresh Delivery” is an entrepreneur service makes fresh vegetable resources for our customers in the market. Depend on that, we are trying to build new model up which bring good vegetables for people’s health.  There are some benefit for our customers in Ho Chi Minh City:  Our customer’s segments are officers have no time to take care of themselves in choosing the best fresh vegetables in the market/supermarket. Therefore, “Fresh Delivery” service can help them saving time to not worry about the quality of vegetables by ordering in the internet. Moreover, customer can buy the higher quality products with cheaper cost from a company has high reputation. Because we cooperate with the suppliers who is the household in Lam Dong City, the price of products will be lower triple times than the other in the market or supermarket  By building this model delivery up, we are trying to rise up the perception of customer about the important of quality in buying vegetables, especially buy at the market. They will have a comparison between fresh vegetables and poisonous vegetables after they use our service for a while time. There has many situations that people was sick or has problem with their health for using unknown products/vegetables.  In the internet, we create a website and Fan page to connect with customers easily. They do not have to waste time to go out. They do just skim our information’s products online and pick the combo they want to order. It’s very useful and has the interaction between customer and our company.  “Fresh Delivery” is the model different from other by connecting the household with each other in Lam Dong City. From the past, household is often product their own products to get benefit and earn money but it is not efficient and is an individual model. In converse, Fresh delivery try to gather all of the household to become partners who create a link networking in business and rise the benefit up. It means that household is not only our suppliers but also our customers.  In addition, Officers and young mothers always try to find good resources for supplying fresh vegetable with suitable price. So, the model of Fresh Delivery is the
  • 29. A PLUS 28 FRESH DELIVERY 28 one of models our customers who are trying to looking for which flexible for their demand. For that reasons, we did a marketing research to know the demand of customer which flexible and do for customer. “ALL FOR CUSTOMERS, HIGH AND BEST SERVICE”  Besides, we can reduce the number of unemployment in Lam Dong City by using labor in there and training specific skills for them. We are trying to create a job for people to earn their own life and improve the perception of business model in people by training communication skills, networking skills and delivery skills effectively.  In the future, we are trying to expand this model out of Lam Dong City to create more jobs for labors and improve the perception about using fresh vegetables in customers’ mindset. 3. TRUMP CARD: The difference between us and other are value proposition. Nowadays, people do not care about their health from the way to buy or choose fresh vegetables with high cost than real. We can count that the price will be lower than 30% because we delivery products from household. That is the reason why we are trying to give them a better way to improve their health with cheaper cost. In the market or supermarket, the products are packaging in plastic in a long period without fresh. However, we analyzed products under some of quality controls: Safe vegetables (SV), GAP (good agricultural practices) or Viet GAP (Process on good agricultural practices for fruit and vegetables fresh safety in Vietnam). This service is not only good for customer’s health but also convenience for saving time by ordering products to their house or offices. Besides, our segment customer is officers and young mothers so their children will be took care much better than the past. The children are the next generation for changing our world; so, we did care a lot of about the adult and now we have to take care more and more. Moreover, when the customer get used to this service, their perception about using fresh and clean vegetables will be increased. The habit is the most important factor influences our action nowadays. It leads to creating a new tendency in household market. Next, there has 4000 labors do have not work which means that the rate of unemployment is very high. This project will decrease that number and increase the income of labors in Bao Loc City. During the research, the income of people is 31 million/year which will be increased 2 times if they join in our project. If this service is
  • 30. A PLUS 29 FRESH DELIVERY 29 succeed, the rate of unemployment will decrease more and more in Bao Loc City because this service is very easy to join in and make them have fixed their own outcomes. In addition, we can improve the way we can exchange and buy vegetables in Bao Loc City and Ho Chi Minh City by using the Internet. In the past, a lot of fear for online purchases due to old buying habits of customers and infrastructure not developed, but at present, e-commerce and social networking are some progress more important. We believe that our services will provide the customers the best convenient and time - saving with the best product and services. Finally, People in Bao Loc City will have new business to increase their income and make the neighbors closer by cooperate with each other. Additionally, the labor and farmer join in our service will be trained some specific skills to increasing their own skills like Planning and Analyzing Plan Skill, Communication Skill. That’s the best way they can have a vision and perception in what they are doing, what they have tried to do, how they can improve their own products, what they can make a deal with their customers.