A business plan for bubble milk tea

MING CHUAN UNIVERSITY
A business plan for
opening take-out milk tea
shop in Vietnam
Ming Chuan University _ IBT4
Võ Văn Minh Tuấn
4/1/2014

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Table of contents
Chapter 1: Introduction ..............................................................................................8
1.1 Motivation............................................................................................................................................ 8
1.2Background........................................................................................................................................... 9
1.3 The Introduction about Caramel Shop .................................................................................................... 9
1.3.1 The main field of industrial ............................................................................................................. 9
1.3.2 The organizational structure .......................................................................................................... 10
1.4 Caramel shop business overview.......................................................................................................... 10
1.4.1 Store location ............................................................................................................................... 11
1.4.2 Products and services.................................................................................................................... 12
1.4.3 Facilities, Equipment, and Technologies ........................................................................................ 13
1.4.4 Supplier or Partnering Relationships .............................................................................................. 14
1.5 SWOT Analysis of Caramel shop:........................................................................................................ 14
1.5.1 Strengths...................................................................................................................................... 14
1.5.2 Weaknesses.................................................................................................................................. 14
1.5.3 Opportunity.................................................................................................................................. 14
1.5.4 Challenges ................................................................................................................................... 14
1.6 STP analysis....................................................................................................................................... 15
1.6.1 Segmentation: .............................................................................................................................. 15
1.6.2 Targeting: .................................................................................................................................... 17
1.6.3 Positioning................................................................................................................................... 18
Chapter 2: Literature review.....................................................................................21
2.1 Overview ........................................................................................................................................... 21
2.1.1 Vietnam overview ........................................................................................................................ 21
2.1.2 Ho Chi Minh City overview .......................................................................................................... 22
2.2Analysis business environment in Vietnam Market ................................................................................ 23
2.2.1 Political environment.................................................................................................................... 23
2.2.2. Social and demographic environment ............................................................................................ 23
2.2.3 Economic Environments ............................................................................................................... 23
2.2.4 Cultural environments................................................................................................................... 24
2.3 Beverage market................................................................................................................................. 25
2.3.1 Hot Drinks ................................................................................................................................... 25

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2.3.2 Soft Drinks................................................................................................................................... 26
2.4 Vietnam milk-tea market..................................................................................................................... 28
2.5 Government law for starting a new business ......................................................................................... 29
2.5.1 The steps to complete business registration..................................................................................... 29
2.5.2 Some noteworthy other legislations in Vietnam Enterprise Law....................................................... 30
2.6. Definition of the Business Model Canvas ............................................................................................ 30
2.7. Contents of the Business Model Canvas table (source: Business Model Generation book) ..................... 31
2.7.1 Value Propositions........................................................................................................................ 31
2.7.2 Customer Segments ...................................................................................................................... 32
2.7.3 Channels ...................................................................................................................................... 32
2.7.4 Customer Relationships ................................................................................................................ 33
2.7.5 Revenue Streams.......................................................................................................................... 33
2.7.6 Key Partners................................................................................................................................. 34
2.7.7 Key Activities .............................................................................................................................. 34
2.7.8 Key Resources.............................................................................................................................. 34
2.7.9 Cost Structure............................................................................................................................... 35
2.9 The Business Model Canvas of Caramel milk-tea shop.......................................................................... 36
Chapter 3: Research methodology.............................................................................37
3.1 Research design.................................................................................................................................. 37
3.2 Sampling............................................................................................................................................ 37
3.3 Data collection.................................................................................................................................... 37
3.4 Data analysis ...................................................................................................................................... 38
3.5 Structure ............................................................................................................................................ 38
Chapter 4: Marketing plan........................................................................................39
4.1 Product and product strategy................................................................................................................ 39
4.2 Product feature and benefit.................................................................................................................. 41
4.2.1 Bubble milk tea ............................................................................................................................ 41
4.2.2 Vietnamese traditional coffee ........................................................................................................ 41
4.2.3 Tea.............................................................................................................................................. 43
4.3 Competition........................................................................................................................................ 49
4.4 Promotion and promotional budget ...................................................................................................... 50
4.4.1 Preparation time ........................................................................................................................... 50

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4.4.2 Operation time.............................................................................................................................. 51
4.4 Proposed Location:............................................................................................................................. 55
4.5 Distribution Channels.......................................................................................................................... 55
4.6 Sales Forecast..................................................................................................................................... 57
4.6.1 Best scenario................................................................................................................................ 57
4.6.2 Worst scenario.............................................................................................................................. 58
Chapter 5: Operational Plan .....................................................................................59
5.1 Production.......................................................................................................................................... 59
5.1.1 Quality control .................................................................................Error! Bookmark not defined.
5.1.2 Product development .................................................................................................................... 59
5.2 Location............................................................................................................................................. 60
5.4 Personnel ........................................................................................................................................... 62
5.4.1 How to recruit the person for the job.............................................................................................. 62
5.4.2 Salary expenses............................................................................................................................ 62
5.5 Inventory............................................................................................................................................ 63
5.5.1 Types of stock.............................................................................................................................. 63
5.5.2 Stock control method .................................................................................................................... 63
5.5.3 Stock control systems – inFlow Inventory Software........................................................................ 66
5.7 Organization and Management ............................................................................................................ 73
Chapter 6: Startup Expenses and Capitalization......................................................75
6.1 Sources of capital................................................................................................................................ 78
6.2 Startup Expenses................................................................................................................................. 78
6.2.1 Buildings or Real Estate................................................................................................................ 78
6.2.2 Capital equipment list. .................................................................................................................. 78
6.2.3 Location and admin expenses. ....................................................................................................... 79
6.2.4 Advertising and promotional. ........................................................................................................ 79
Chapter 7: Financial Plan..........................................................................................80
7.1 12-Months Profit and Loss Projection .................................................................................................. 80
7.1.1 Best scenario................................................................................................................................ 80
7.1.2 Worst scenario.............................................................................................................................. 82
7.2 Breakeven point analysis ..................................................................................................................... 84
7.2.1 Best scenario................................................................................................................................ 84

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7.3 Projected Cash Flow ........................................................................................................................... 85
Appendices.................................................................................................................87
I. Logo and Advertising materials ...................................................................................................... 87
I.1 Symbol............................................................................................................................................ 87
I.2 Logo ............................................................................................................................................... 87
I.3 Banner............................................................................................................................................ 87
I.4 Billboard ......................................................................................................................................... 88
II. Menu........................................................................................................................................... 89
III. Maps and photos of location........................................................................................................ 90
III.1 Map of location ............................................................................................................................. 90
III.2 The drawing bench ........................................................................................................................ 91
IV. Detailed lists ofequipment owned or purchased.......................................................................... 91
IV.1 Sugar Syrup Dispenser Machine..................................................................................................... 91
IV.2 Sealer Machine ............................................................................................................................. 92
IV.3 Shaker.......................................................................................................................................... 93
IV.4 Measuring Scoop........................................................................................................................... 93
IV.5 Thermo blocks pot......................................................................................................................... 93
IV.6 Paper cup...................................................................................................................................... 94
References:................................................................................................................95

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List of tables
Table 1: Caramel basic menu....................................................................................................................12
Table 2: Table of target market buying criteria .........................................................................................19
Table 3: Map buying criteria against competitive positioning..................................................................19
Table 4: Ranking Caramel product's strengths..........................................................................................20
Table 5: Points for 5-D dimension model of some countries (http://www.geert-hofstede.com/) .............24
Table 6: Hot Drinks Volume Sales – Historical Data & Forecasts, 2010-2017........................................25
Table 7: Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-2017 ............................26
Table 8: The Business Model Canvas .......................................................................................................31
Table 9: Caramel milk-tea shop’s business model....................................................................................36
Table 10: The List of Caramel's product ...................................................................................................40
Table 11: Evaluate competitors .................................................................................................................49
Table 12: Preparation cost (Unit: 1,000 VND) .........................................................................................50
Table 13: Promotional leaflet cost (Unit: 1,000 VND) .............................................................................50
Table 14: The product price table (Unit: 1,000 VND) ..............................................................................51
Table 15: The product price of gold time strategy ....................................................................................51
Table 16: Promotion price (Unit: 1,000 VND) .........................................................................................52
Table 17: 12-month promotion forecast for "Gold time" strategy ............................................................52
Table 18: Table of special day during year in Viet Nam ..........................................................................53
Table 19: 12-month promotion forecast for "Gratefulness" strategy........................................................53
Table 20: 12-month promotion forecast for "Good partner forever" strategy, stage 2 .............................54
Table 21: Best scenario of sales forecast...................................................................................................57
Table 22: Worst scenario of sales forecast ................................................................................................58
Table 23: Types of stock ...........................................................................................................................63
Table 24: The advantage and disadvantage of stock control methods ......................................................63
Table 25: Material inventory.....................................................................................................................64
Table 26: WIP inventory...........................................................................................................................65
Table 27: Finished goods inventory ..........................................................................................................65
Table 28: Consumable products inventory................................................................................................66
Table 29: Supplier's information ...............................................................................................................68
Table 30: Months Profit and Loss Projection (Best scenario)...................................................................81
Table 31: Months Profit and Loss Projection (Worst scenario) ................................................................83
Table 32: Breakeven analysis of best scenario ..........................................................................................84
Table 33: Projected Cash Flow..................................................................................................................86

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List of figures
Figure 1: Caramel organizational structure ...............................................................................................10
Figure 2: The chart shows the ratio of the population by age group in 2009 ............................................15
Figure 3: The pie chart shows proportion of each age group in target group ...........................................15
Figure 4: The percentage of male and female in each age group ..............................................................16
Figure 5: The chart shows the monthly income of Vietnamese in 2009 ...................................................17
Figure 6: Hot drinks 2010-2017 ................................................................................................................25
Figure 7: Soft drinks 2010-2017................................................................................................................27
Figure 8: Distribution channel...................................................................................................................55
Figure 9: Flat organization structure .........................................................................................................73
Figure 10: Caramel's structure...................................................................................................................74

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List of pictures
Picture 1: Ho Chi Minh City district 10 map ............................................................................................11
Picture 2: Sugar Syrup Dispenser / Fructose Machine ..............................................................................13
Picture 3: Sealer Machine..........................................................................................................................13
Picture 4: A typical sugar level chart ........................................................ Error! Bookmark not defined.
Picture 5: Chuan Dai company and their products....................................................................................69
Picture 6: Trung Nguyen's distribution agent............................................................................................70
Picture 7: Highland Honey Bee Co., Ltd...................................................................................................71
Picture 8: Distribution agent of Vietnam Dairy Products Joint-Stock Company......................................72
Picture 9: Product of Ngoc Diep shop .......................................................................................................73

Chapter 1: Introduction
1.1 Motivation
Milk tea(also called bubble tea) is an extremely popular drink in most of Asian countries. It
originally started from Taiwan in 1988. Milk teas specialist drink increasingly being offered in cafes,
coffees shops and bars.It originates from Asia and is made up of hot or cold tea, milk, sugar and giant
black tapioca balls. Ice is then added and the drink shaken to create the bubble effect. Bubble tea is often
referred to as pearl shake, tapioca ball drink; bob ice tea and bubble drink among other things. The term
"bubble" refers to the tapioca balls in the drink. These chewy tapioca balls, or "pearls," are consumed
along with the beverage through a wide straw. Bubble tea is especially popular in many East Asian and
Southeast Asian regions such as Taiwan, Brunei, China (including Hong Kong and Macau), Malaysia,
the Philippines, Singapore, South Korea, Thailand, Indonesia, Vietnam and Australia populated by
urban professionals with high disposable incomes and an interest in alternative eating and drinking
venues. Compared to opening a full size restaurant, the startup costs to open a bubble tea cafe are low.
The wide range of our contacts & relationships mean we will open a bubble tea cafe with minimal
investment ensuring we get the biggest bang for our buck. A bubble tea cafe is not labor intensive, is
simple to operate and does not necessitate that the owner be on site. The key is to get things set up
correctly in the early stages and to use effective operating systems to save valuable time, effort, and
money.
We wish we could calculate the total amount of English breakfast tea I consumed over the
past year. While working on our thesis, tea drinking was an integral part of the process. There is
something about that piping hot and cold beverage that inspires thought, creativity, focus, and hard work.
In the modern life, a lot of company employees leave their job because they do not find job
interesting. They feel pressured and boring. A section of young people today do not like working for the
company after graduated, they like to challenge themselves. They wanted to establish their own
company where they can show all their best skills and personal passion. We are people belongs to this
part. We learn business and we have passion for business.
It goes without saying that necessity is the mother of invention, so merchants created the
business to make good use of people’s need of drinking water. In the past, we would drink plain water or
tea to quench our thirst. Nowadays, there are much more competitions as more and more prosperous tea
cafes spring up. To appeal to more customers, the increased sorts of beverages followed the increase of
innovative ideas. Then, bubble tea came into being. Modern people drink beverages instead of plain
water. Among that, Bubble tea is a drink in great demand. Imagine this, on a hot summer day; you’re
having a cup of refreshing Bubble tea. When having a sip of it, the chewy pearls are full of your mouth.
It’s fantastic!

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1.2 Background
One of trends which attracts most of the youth is chain of coffee and milk-tea shops. Because
they have air conditioning and free Wi-Fi so now they become ideal rendezvous spaces. Many famous
milk-tea trade-names appear in recent years such as: Sun flowers shop, Alo tea, -18C, so on. They have
a lot of subsidiaries around country. Each year, in Ho Chi Minh area, they also have from 3 to 4 new
shops. Especially, around university zones, they usually have about 5 big or small milk-tea shops. This
proves that milk-tea is one of favorites drinking of youth community, particularly pupils and students.
And we who are Vietnamese students studying in Taiwan are not exception. However, these convenient
milk-tea shops still arrears many shortcomings such as: (1) Waiting time too long: Customers who buy
take out cups must wait about 10 minutes after they make order then they can get their glasses. At busy
time, customers must wait more than 20 minutes. Even when shop is too crowded customers, customers
should not wonder why staffs forgot their orders. It is very popular. Customers should learn how to
accustom themselves to this problem instead of getting angry. (2) Uncomfortable space: Having a part
of community does not like milk-tea shop’s space. Some people want to enjoy milk-tea at home with
their family or in the park with their friends. Someone wants to bring milk-tea to their office. But they
do not want spend a lot of time for waiting. Besides that shop’s services are not really worthy as they
were paid by customers. (3)High price: Because the shop provide air conditions and free Wi-Fi for
customers using at shop so these expenses were count on the price of each glass. This makes the price
always expensive. But have some customers are not willing to pay for these unworthy services. (4)
Take-out milk-tea services do not develop and do not take care. It is still elementary and does not
hygienic.
Starting from individual favorite, business passion and faults which are still in bubble-tea market,
our group decides to make a take-out milk-tea business plan. We will apply Taiwanese’s service style
and service system and combine with new flavors from other countries which we learned from foreign
friends in 2 years we study in Taiwan. We hope we can bring convenience to consumers. Besides that
we also hope with new processing formula, milk-tea not only a beverage but also a nutrition drink for all
ages, from kindergarten to the workers or employees working in large firms, especially females.
1.3 The Introduction about Caramel Shop
The idea to establish Caramel shop stems from general interests of 4 students who are looking to
be challenged themselves after school in the group. We are confident that we will become the first best
beverage quality products supplier and professional service style in Vietnam.
With the motto to maximize customer satisfaction, Caramel is always striving to bring products
and services with excellent value to our customers, confirmed Caramel brand in Vietnam.
1.3.1 The main field of industrial
The business: We provide the traditional beverages and beverages come from many countries around
the world.(See more our productson menu in Appendices)

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1.3.2 The organizational structure
Figure 1: Caramel organizational structure
Member of executive board
- Mr. VõVăn Minh Tuấn (Alyosha): Executive directorwho initiated idea and makes the shop’s
development orientation.
- Miss. TrangHồngNgọc (Mizhu): Financial, personnel andmarketing director.
- Mr. Nguyễn Cao Chung (David): Supply and processing director and designer.
1.4 Caramel shop business overview
The business sector of this thesis belongs to entertainment - beverage field. This kind of business
is quite popular in the Vietnamese current market, from popularly level to premium level. Living
standards and income of each person, each household is increasing. In recent years, the number of
Vietnamese enterprises as well as foreign enterprises and colleges, universities rose quickly. It makes
work and study intensity of people becoming higher, it also makes their free time been gradually
narrowed. The take-out milk-tea shop was launched which can meet this need. This type of business
model has been appeared for a long time and has been growing in developing countries such as USA,
UK, Singapore, Australia, and Taiwan. It is for all social grades and has been gotten population
interested. In Vietnam market, this business model also has been existed for 10 years but it has not
worked efficiently. They lost consumers’ interest because of their service style and unfocused quality.
Executive
Board
Bartender Bartender Salesman
Manager

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1.4.1 Store location
Because Caramel’s main revenue comes from beverages and target customers are people from 16
to 30 ages so our shop must close to school and official, service and entertainment areas. With above
address we think it can meet basic requirements of shop. Shop is located on the busy road (Bac Hai
Condominium, Ward 15, District 10, Ho Chi Minh City, and South of Vietnam) that has many
peoplegoes around andthere are 3 schools, 1big national university, entertainment areas and hospitals
near. The area of shop is 20 square meters which enough to meet the sales and product processing.
Picture 1: Ho Chi Minh City district 10 map

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1.4.2 Products and services
The main products are milk tea with delicious taste, Vietnam traditional coffee-milk along with
fruit smoothies for refreshment and vitamin supplements during hot days in Ho Chi Minh City.
Specially, customers can chose how many percentage of ice and sugar (25% - 50% - 75%) and they can
mix drinks with extra foods.
Table 1: Caramel basic menu
Bubble tea
flavor
(19,000 vnd)
Coffee-Milk
(11,000 vnd)
Tea
(12,000 vnd)
Fruit
juice/smoothies
(15,000 vnd)
Extra foods
(5,000 vnd)
Taro Coffee 100% Ginger (Hot) Orange Pudding
+ Egg
+ Chocolate
Kiwi Coffee-Milk 50-50 Lemon Pineapple
Honeydew Coffee-Milk 75-25 Honey (Hot) Lemon
Peach Coffee-Milk 25-75 Herbal Kumquat Yogurt
Papaya Milk 100% Chrysanthemums Grapefruit Honey
Strawberry Fresh milk (Hot) Papaya Ice-cream
+ Mango
+ Vanilla
+ Chocolate
+ Strawberry
Watermelon Red apple Grape
Banana Red tea Strawberry
Coconut Watermelon
Lychee Apple
Almond Passion fruit Jelly
Chocolate Tomato Bubble (small/big)
Passion fruit Pineapple Milk
Raspberry Avocado
Blackberry
Green Apple
Grape
Oreo cookie
The services: We apply the hygienic and best quality services. In addition, there will have
delivery milk-tea service for bulk buyers.

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1.4.3 Facilities, Equipment, and Technologies
Sugar Syrup Dispenser / Fructose Machineand Sealer Machineimported directly from Taiwan.
Picture 2: Sugar Syrup Dispenser / Fructose Machine
Picture 3: Sealer Machine
Milk tea makingtechnology will follow Taiwan technology.

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1.4.4 Supplier or Partnering Relationships
The main raw materials(milk, tea, sugar, pudding …) suppliers comefrom Vietnam. Specially,
milk tea flavorand bubble willimported directly from Taiwan.
1.5 SWOT Analysis of Caramel shop:
1.5.1 Strengths
Although we are not the first take out milk tea shop but our strengths are professional service
style and cheaper prices, it lower from 30 to 50% compared to other milk tea brands. We grasp well
customers’ interests and tastes.
1.5.2 Weaknesses
A young and new business, which was established from the students, having limited capital
resources such as the founders are people who going to graduate; we use our part-time job salary as our
main capital. And a small part of our capital is from borrowing our family.
1.5.3 Opportunity
Bring Asian’s culture echoes; Vietnam taste is sweeter than the Western nations.
Take-out style in professional service is our advantage compare with other milk-tea shops.
Meeting customers’ demand in this sector, specify in district 10 where have many our target
customers (students, official employees and the busy people).
1.5.4 Challenges
The first, competitor is available from our weaknesses, along with the growth of competition
from direct competitors. We must be wise. Our store has more shortcomings than other milk tea stores in
the same areas such as: small investment capital and new young brand.
Secondly is the Vietnam consumers taste. Customers are stricter in choosing drink for
themselves. Flavor issue is more concerned, but to ensure health requirements. This is a major challenge
in the flavor issue as well as improvement of Caramel store’s hygiene during processing drinks.

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1.6 STP analysis
1.6.1 Segmentation:
Segmentation is concerned with identifying different groups of purchasers in a market in order to
target specific products and services for each group or segment. According to a research-level there are
four major ways of segmenting a market such as: “a Priori segmentation”, “usage segmentation” (also
known as declines analysis or pare to analysis), “attitudinal research and cluster analysis” and “needs
based segmentation”. We will use the “A Priori segmentation” method. It means the market is split
according to pre-existing demographic criteria such as age, sex or social economic status.
Age and sex segmentation:
The analytical results from the survey of population census in 2009 showed that, the proportion
of people aged from 15 to 34 is the highest (for both gender), about 37.4%. This is Caramel target
customers.
Figure 2: The chart shows the ratio of the population by age group in 2009
(Based on the statistics of page http://www.gopfp.gov.vn/)
In the 15-34 ages group, we can see, people from 15 to 19 ages are most crowded, occupied
28%. The second is the group from 20 to 24 ages; it is accounted about 26%. Two remaining groups 25-
29 and 30-34 have proportions respectively are 24% and 22%.
Figure 3: The pie chart shows proportion of each age group in target group
0
5
10
15
20
25
30
35
40
45
0-14 15-34 35-54 55-74 75+
Male
Female
Both gender

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Meanwhile, the number of men and women in each age group are about equal in the proportion,
the difference is not significant.
Figure 4: The percentage of male and female in each age group
Monthly income segmentation:
When segmenting customer by monthly income,Vinaresearch Company made clearly four
phrases such as low income, average income, pretty income and high income. Firstly, people who have
“low income” that means each month their salary below 4,500,000 VND (equivalent to 6,207 NDT).
They are usually students who work part time jobs and poor workers or farmers in remote areas. This
group is about 4.4%. The second is “average income” group; they have proportion about 13.5%. They
are usually new official employees, students working part time jobs in big city. Their salary is from
4,500,000 VND to 7,500,000 VND (equivalent to 6,207 – 10,345 NDT). Pretty incomer is a person who
has salary from 7,500,000 to 15,000,000 VND (equivalent to 10,345– 20,670 NDT). And high income
group belongs to people who have salary higher than 15,000,000 VND for each month. These two
groups have the highest percentages, respectively 39.4% and 42.8%
28%
26%
24%
22%
15-19
20-24
25-29
30-34
0
10
20
30
15-19 20-24 25-29 30-34
Male Female

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Figure 5: The chart shows the monthly income of Vietnamese in 2009
(Based on the statistics of page www.vinaresearch.jp)
1.6.2 Targeting:
We use concentrated marketing. It is a marketing approach that is aimed at connecting with and
selling products to a specific consumer group. This strategy calls for taking steps to identify the target
market that is highly likely to be attracted to the products, and developing a marketing plan that is
unique to reaching that group of consumers. The process also normally includes planning the delivery
of products in a manner that is likely to generate repeat business from those consumers. In many cases,
concentrated marketing is an ideal approach for smaller businesses with limited resources, since it does
not rely on the creation and use of mass marketing, production, or distribution to reach a wide range of
potential consumers.
Applying this model in the case of Caramel shop, our concentrationsare middle class who meet
these factors: age from 15 to 30, income from 4,500,000 to 10,000,000 VND and busy. We have our
own model below:
4%
14%
39%
43%
Low income Average income Pretty income High income

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While a concentrated marketing approach can help Caramel shop makes the most of a small
advertising budget, there are some potential drawbacks with this type of marketing. We will mention
more detail in chapter 4.
1.6.3 Positioning
The goal of product positioning is to keep our product on top of our customers’ mind when
they’re considering a purchase. To be successful, product positioning must achieve three objectives: (1)
Differentiate your product from the competition’s (2) Address important customer buying criteria and (3)
Articulate key product (or company) characteristics.
We use positioning triangle for analysis this part.
Firstly, we must know clearly what is buying criteria our target customer uses to evaluate milk-
tea products. We also already assign a quantitative weight to each criterion based on opinion of the
people surveyed.
Caramel's targetcustomers
Busy
Middle
-class
15-30
year olds

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Table 2: Table of target market buying criteria
No. Percentage Target market buying criteria (prioritized and weighted)
1 10% The origin of bubble
2 10% Short waiting time
3 10% Quality of product components (tea, milk, pudding, fruit and jelly)
4 10% Convenient and delivery services
5 10% Hygiene
6 15% Location and decoration
7 30% Price
8 5% Innovation
The second, by using primaryresearch, we find out some famous milk-tea shop in Ho Chi Minh
City such as: Sunflower, Tapi tea and Alo tea. They are big competitors of Caramel.
Next, by doing secondary research, we can map buying criteria against competitive positioning.
These competitors have already success in some criteria. For example: Sunflower, Tapi tea and Alo tea
are famous about their decoration of shop. They are all clean shop and when come to those
shopscustomers feel comfortable and relax a lot. Those brand all famous because they have many shops
in center of each district in big cities.In 3 mentioned brand, pricing of milk tea in Tapi tea is the cheapest
and suitable for almost students. But two most important criteria do not have any brand success and
have good feedback from customers.
Table 3: Map buying criteria against competitive positioning
No. Percentage Target market buying criteria
(prioritized and weighted)
Competitor
1 10% The origin of bubble
3 10% Quality of product components (tea, milk,
pudding, fruit and jelly)
Sunflower
4 10% Convenient and delivery services Sunflower , Tapi tea, Alo tea
5 10% Hygiene Sunflower, Tapi tea, Alo tea
6 15% Location and decoration Sunflower, Tapi tea, Alo tea
7 30% Price Tapi tea
8 5% Innovation
After considering overview milk-tea market, we recognize our shop strengths such as the origin
of bubble (we can contact with Taiwanese bubble supplier for the best quality), price (we commit our
product will cheaper than price on market about 30% but still keep best quality), location (in the middle
of residential area) and short time waiting (because we realize that Taiwanese style service more
professional that our recent style service. So we believe we can reduce waiting time for customers).

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Table 4: Ranking Caramel product's strengths
No. Caramel
product’s
strengths
Percentage Target market buying criteria
(prioritized and weighted)
Competitor
1 5# 10% The origin of bubble
3 4# 10% Quality of product components (tea,
milk, pudding, fruit and jelly)
Sunflower
4 2# 10% Convenient and delivery services Sunflower , Tapi tea, Alo tea
5 10% Hygiene Sunflower, Tapi tea, Alo tea
6 3# 15% Location and decoration Sunflower, Tapi tea, Alo tea
7 1# 30% Price Tapi tea
8 5% Innovation

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Chapter 2: Literature review
2.1 Overview
2.1.1 Vietnam overview
Vietnam officially the Socialist Republic of Vietnam, is the eastern most country on the
Indochina Peninsula in Southeast Asia. With an estimated 90.3 million inhabitants as of 2012, it is the
world's 13th-most-populous country, and the eighth-most-populous Asian country. (wikipedia.org)
Vietnam, a one-party Communist state, has one of south-east Asia's fastest-growing economies
and has set its sights on becoming a developed nation by 2020. Vietnam struggled to find its feet after
unification and tried at first to organize the agricultural economy along strict collectivist lines. But
elements of market forces and private enterprise were introduced from the late 1980s and a stock
exchange opened in 2000. Foreign investment has grown and the US is Vietnam's main trading partner.
In the cities, the consumer market is fuelled by the appetite of a young, middle class for electronic and
luxury goods. After 12 years of negotiations the country joined the World Trade Organization in January
2007. (BBC News)
Vietnam is a densely-populated developing country that has been transitioning from the rigidities
of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to
economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007,
which has promoted more competitive, export-driven industries. Vietnam became an official negotiating
partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output
has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share
increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40%
of GDP. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge
of a labor force that is growing by more than one million people every year. The global recession hurt
Vietnam's export-oriented economy, with GDP in 2009-12 growing less than the 7% per annum average
achieved during the previous decade. In 2012, however, exports increased by more than 12%, year-on-
year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011,
Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in
2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged
$6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth
and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted
policy away from policies aimed at achieving a high rate of economic growth, which had stoked
inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. In early
2012 Vietnam unveiled a broad, "three pillar" economic reform program, proposing the restructuring of
public investment, state-owned enterprises, and the banking sector. Vietnam's economy continues to
face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks
and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some financial
analysts believe it could be as high as 15%. (Index Mundi)

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2.1.2 Ho Chi Minh City overview
Ho Chi Minh City formerly named Saigonis the largest city in Vietnam.
Ho Chi Minh City is located in the southeastern region of Vietnam, 1,760 km (1,090 mi) south
of Hanoi. The average elevation is 19 meters (62 ft.) above sea level. It borders TâyNinh
Province and BìnhDương Province to the north, ĐồngNai Province and BàRịa–VũngTàu Province to the
east, Long An Province to the west and the South China Sea to the south with a coast 15 km (9 mi) long.
The city covers an area of 2,095 km2 (809 sq. mi) (0.63% of the surface of Vietnam), extending up
to Củ Chi District (12 mi (19 km) from the Cambodian border) and down to CầnGiờ on the South China
Sea. The distance from the northernmost point (PhúMỹHưng Commune, Củ Chi District) to the
southernmost one (Long Hòa Commune, CầnGiờ District) is 102 kilometers (63 mi), and from the
easternmost point (Long Bình ward, District Nine) to the westernmost one (BìnhChánh Commune,
BìnhChánh District) is 47 kilometers (29 mi)
The result of the 2009 Census shows that the city's population was 7,162,864 people, about 8.34%
of the total population of Vietnam, making it the highest population-concentrated city in the country. As
of the end of 2012, the total population of the city was 7,750,900 people, an increase of 3.1% from
2011.As an administrative unit, its population is also the largest at the provincial level. The majority of
the population is ethnic Vietnamese at about 93.52%. Ho Chi Minh City's largest minority ethnic groups
are Chinese with 5.78%. Cholon – in District 5 and parts of Districts 6, 10 and 11 – is home to the
largest Chinese community in Vietnam. Other ethnic minorities include Khmer 0.34%, Cham 0.1%. The
inhabitants of Ho Chi Minh City are usually known as "Saigonese" in English, "Saigonnais" in French
and "dânSàiGòn" in Vietnamese. A varying degree of English is spoken especially in the tourism and
commerce sectors where dealing with foreign nationals is a necessity, so English has become a de facto
second language for some Saigonese.
Ho Chi Minh City is the economic center of Vietnam and accounts for a large proportion of the
economy of Vietnam. Although the city takes up just 0.6% of the country's land area, it contains 8.34%
of the population of Vietnam, 20.2% of its GDP, 27.9% of industrial output and 34.9% of the FDI
projects in the country in 2005. In 2007, Ho Chi Minh City's contribution to the annual revenues in the
national budget increased by 30 percent, accounting for about 20.5 percent of total revenues. The
consumption demand of Ho Chi Minh City is higher than other Vietnamese provinces and municipalities
and 1.5 times higher than that of Hanoi. In 2007, the city received over 400 FDI projects worth $3
billion. In 2008, it attracted $8.5 billion in FDI. In 2010, the city's GDP was estimated at $20.902 billion,
or about $2,800 per capita, up 11.8 percent from 2009. By the end of 2012, the city's GDP was estimated
around $28,595 billion or about $3,700 per capita, up 9.2 percent from 2011. Total trade (export and
import) reached $47.7 billion, with export at $21.57 billion and import $26.14 billion. In 2013, GDP of
the city grew 7.6% by Q1, 8.1% by Q2, and 10.3% by the end of Q3. (wikipedia.org)

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2.2Analysis business environmentin Vietnam Market
2.2.1 Political environment
In other to have a political stability, Vietnamese law is accumulating and adding international
law: the antitrust laws, intellectual property rights and the patent invention … Vietnamese law, which is
improving gradually, creates a healthy competition between domestic and foreign companies. Presently,
position of Vietnamese consumers is growing rapidly.
The State’s support policies to promote economic development through fiscal policy and
monetary policy to ensure high growth rates, encouraging investment is essential due to the preferential
policies: taxes, land, consultancy and support services. We know opportunity isscaling up nationwide
production thanks to loans from state banks. And also still have challenges is fierce competition from
other corporations.
2.2.2. Social and demographic environment
Vietnam's population is currently about 86 million people, ranked 13th in the world, with
increasing levels average 947 thousand people per year. Population concentrated in two major cities of
Hanoi and Saigon.
The Vietnamese population structure is in the period of "The golden population structure"in
which population of working age groups are approximately higher two times than the population of
dependent age groups. Its advantages are the young people make up the majority, appropriate vibrant
and dynamic business activities. It also has some difficulties such as causing pressure on employment,
education and high unemployment issues.
Average income figures indicate the average income of Vietnam by the end of 2012,
approximately 1749 in one year. Predicting by 2013 the Vietnam’s average income reached to 1900
USD. Vietnam’s incomes increases leading to consumers have more choice to ensure their level of
satisfaction.
2.2.3 Economic Environments
The economic growth of Vietnam reached a high intraday in 2005-2007, but in 2008-2009 the
growth rate decreased about 2% by the deflationary policies of the state. In 2010, the economy was soon
out of deterioration and gradually recovery and rapidly growth (6.78%). So economic recovery and
growth will make customer’s spending for basic needs much more.
According to Professor Pham Song, chairman of Vietnam Medical Council "Vietnam is one of
the non-alcoholic beverages markets that has the fastest growth rate in the world. The survey figures
showed that an average each Vietnamese person drinks about 3 liters of non-alcoholic beverages per
year. Predicting to 2015, the total amount of drinks in Vietnam will increase nearly 50% compared to
2007 in other to serve the consumers’ beverages needs”. This is an advantage for market development of
Caramel.

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2.2.4 Cultural environments
Vietnamese cultural environment has some characteristics such as: power distance, individualism,
masculinity or femininity, uncertainty avoidance and long term orientation. Vietnam has a longstanding
agricultural culture for thousands of years.Vietnamese people generally are friendly and diligent. People
in the north are considered politically sensitive, hardworking and always seek to avoid risk.The Northern
greatly influenced by Chinese culture, due to over 1000 years under the domination of feudal China.In
addition, Vietnam and China have come together in the socialist path for many decades.According to the
assessment of Professor Hofstede (in1980), Vietnam culture belongs to the kind of high power distance,
follow the trend individualism and the rate of uncertainty avoidance is average.
Table 5: Points for 5-D dimension model of some countries (http://www.geert-hofstede.com/)
Countries
Power
distance
Individualism Femininity
Uncertainty
avoidance
Long term
orientation
Vietnam 70 20 40 30 80
China 80 20 66 30 118
Japan 54 46 95 92 80
Thai 64 20 34 64 56
USA 40 91 62 46 29
Denmark 18 74 16 23 (does not
have)
Recently, Vietnamese have a new trend in eating that is focusing on healthy. Their eating habits
are changing. Besides having a delicious meal, Vietnamese consumers also concerned about food or
drink which can to keep healthy. So Caramel need to make strategies which assure about product quality
and safety - taste of Vietnamese, especially Southerners like sweet and sour drink. Vietnam consumers
have high psychological nationalistic pride. Caramel is taking advantage of the 100 % owned capital
Vietnam Company. Vietnamese youths interesting in explore new things, they like to experience
themselves.

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2.3Beverage market
2.3.1Hot Drinks
Table 6: Hot Drinks Volume Sales – Historical Data & Forecasts, 2010-2017
Hot Drinks Volume Sales – Historical Data & Forecasts, 2010-2017
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Coffee sales
(‘000
tonnes)
39.19 42.36 45.42 49.87 54.21 58.78 63.49 68.18
Tea sales
(‘000
tonnes)
208.40 220.38 233.24 248.69 266.03 284.81 308.73 322.73
(Note: f = BMI forecast. Source: General Statistics Office,Company information, Trade press, BMI)
Figure 6: Hot drinks 2010-2017
(Note: f = BMI forecast. Source: General Statistics Office,Companyinformation, Trade press, BMI)
Vietnam’s sturdy economic growth over the next few years will continue to fuel demand for
higher value food and beverage products, such as coffee. Vietnam’s massive youth population, for
whom visiting cafés and drinking coffee is a growing lifestyle choice, is another major positive. As
this group of young, aspirant consumers enters the workforce, the accordant rise in their level of
incomes will serve to further buoy the demand for higher-value coffee products. The tea sector is also
set to experience strong growth over our five-year forecast period, buoyed by rising incomes and
increasing domestic demand.
0
50
100
150
200
250
300
350
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Hot Drinks 2010-2017
Coffee sales (‘000 tonnes) Tea sales (‘000 tonnes)

26 | P a g e
These dynamics will continue to attract the sights of multinational coffee producers, in turn
imbuing the sector with greater dynamism over our forecast period. As a case in point, Masan
Consumer has acquired a 50.1% stake, valued at around VND1.07trn (US$51mn), in the Vietnamese
coffee producer Vinacafe Bien Hoa Joint-Stock Company. By acquiring a controlling stake in
Vinacafe, Masan clearly wants to put itself in a strong position to leverage on the exciting demand
dynamics in the Vietnamese coffee sector. Reflecting Vinacafe’s strength in the Vietnamese coffee
sector, the coffee producer recorded an impressive 30% CAGR in its headline sales between 2006
and 2010.
Also looking to capitalize on Vietnam’s coffee potential, Nestlé plans to increase its coffee
sourcing from local farmers in Vietnam and has committed to a new coffee factory in the country. The
US$270mn factory will be constructed in the south-east province of Dong Nai and will produce
Nescafé-branded products for the domestic and international markets from 2013.
Meanwhile, Philippine food major Jollibee Foods Corporation in early 2012 announced it
was to acquire a 50% interest in Superfoods Group, which will give it a 49% stake in SF Vung Tau
Joint Stock Company in Vietnam and a 60% share in Blue Sky Holdings in Hong Kong. The
acquisition of a majority interest in the SuperFoods Group could expedite Jollibee’s international
push given the former’s reach across the coffee markets of Macau, Hong Kong and Vietnam.
2.3.2Soft Drinks
Table 7: Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-2017
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Soft drinks
sales
(MNliters)
1,694.54 1,820.11 1,937.14 2,087.21 2,226.31 2,382.92 2,523.34 2,712.36
Carbonated
soft drink
sales
(MNliters)
846.38 905.34 948.96 1,026.30 1,111.06 1,201.26 1,295.74 1,391.62
Soft drink
sales growth,
liters (% chg.
y-o-y)
20.37 7.41 6.43 7.75 6.66 7.03 5.89 7.49
Soft drinks
sales
(VNDmn)
48,430,761 58,936,203 69,720,789 79,057,398 90,567,804 103,254,858 117,311,874 132,630,353
Carbonated
soft drink
sales
(VNDmn)
7,102,612 9,016,364 10,246,674 11,619,255 13,270,648 15,065,525 17,062,862 19,241,779
Soft drink
sales growth,
21.76 21.69 18.30 13.39 14.56 14.01 13.61 13.06

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VND (% chg.
y-o-y)
Soft drinks
sales
(US$mn)
2,531.14 2,853.60 3,314.51 3,800.84 4,403.98 5,078.94 5,836.41 6,631.52
Figure 7: Soft drinks 2010-2017
We are witnessing a rapid emergence of competition in the Vietnamese soft drinks market. The
opportunities provided by a rapid middle-class emergence in Vietnam are firmly within the sights of
domestic drinks producers such as PepsiCo Vietnam, Tan HiepPhat and Coca-Cola Beverages
Vietnam, and the companies’ aggressive initiatives in terms of product innovation, portfolio expansion
and advertising will only instill greater dynamism into the sector.
The maturation of a massive youth population and rising consumer affluence are translating
into a burgeoning appetite for soft drinks. As consumers move up the income ladder over the coming
years, an accelerating premiumisation momentum in the sector means that value sales are expected to
increase more dynamically over our forecast period.
An intensifying influx of sector investments will provide another major impetus to drive
industry growth. In particular, we expect domestic soft drinks manufacturers to ramp up their
initiatives in terms of product innovation, portfolio expansion and marketing. In the regard of
portfolio expansion, local soft drink manufacturers are gradually calibrating their portfolio towards
healthier and functional beverages such as fruit juices and ready-to-drink teas as they look to tap into
a growing health awareness trend in the country.
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Soft Drinks 2010-2017
Soft drinks sales (mn litres) Soft drinks sales (US$mn)

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Reflecting a shift of consumer preferences towards healthier beverages, PepsiCo Vietnam and
Coca-Cola Beverages Vietnam have been losing market shares in recent years due to declining sales
of carbonates, according to anecdotal reports. However, with the health awareness trend remaining
well-entrenched over the coming years, we expect more domestic soft drinks manufacturers such as
PepsiCo Vietnam and Coca-Cola Beverages Vietnam to expand their non-carbonates offerings going
forward. As a case in point, Big C recently introduced its private label fruit juice range Casino Bio to
cater to the burgeoning domestic demand for health and functional beverages.
As competition intensifies in the Vietnamese soft drinks market, domestic producers are also
looking to differentiate themselves through branding and marketing initiatives. Coca-Cola Beverages
Vietnam and Tan HiepPhat have executed some of the biggest advertising campaigns in Vietnam
through various formats such as print advertisements, television and the internet. These initiatives
have not only bolstered consumer awareness of the different soft drinks brands but also encouraged
greater soft drinks consumption in the country.
Moreover, domestic soft drinks manufacturers will continue to engage in product innovation
by offering different bottle formats and sizes in an attempt to cater to the varying consumer tastes and
preferences. For instance, Coca-Cola Beverages Vietnam and PepsiCo Vietnam produce their soft
drinks in varying sizes, and this has facilitated their reach to the end-consumer market. As more
companies hop on the product innovation bandwagon, this will bring about greater dynamism in the
sector and further fuel sales growth.
2.4Vietnam milk-tea market
Bubble Tea was introduced into Vietnam by the end of 2002 and the fastest growing since 2008.
Bubble Tea is a beverage originating from Taiwan with a very strange flavor combinations mild
flavor of tea, with delicious pearl and fatty flavor is a phenomenon for teenager and it has quickly
became a favorite snack in Vietnam
Most of the business model in Taiwan milk tea sold close small glass style brought while in
Vietnam developed a lot of different forms of business such as business chain , sale or sold in place to
bring on or delivery to suit every customers , and includes many ongoing promotions . We can say the
profits from this business model are very large and very large market now, so here is the investment
destination for many business enterprises.
The attractiveness of pearl milk tea is not embedded in the education of clients and students, but
also spread to all workers and employees in many occupations, ages. It is easy to catch the milk tea shop
adjacent to the school gate, watching the dorm walls, in the streets, in markets,
supermarkets,dormitories,condominiums, office buildings...

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2.5Government law for starting a new business
To establish a new business in Vietnam, any individual or organization needs to understand
clearly and comply with strict legal regulations in the state of Socialist Republic of Vietnam.
2.5.1 The steps to complete business registration
The first thing should be noted is “Enterprises of all economic sectors shall be entitled to conduct
any business lines that are not banned by law”(based on Article 7- Chapter 1-Vietnam Enterprise Law)
Secondly, we need to follow these steps to establish enterprises and have business registration:
 Step 1: To make the business registration (according to Article 15 - Chapter 2 -Vietnam
Enterprise Law)
1. Persons decided to establish an enterprise must submit a complete business registration dossier
as provided for by this Law to a competent business registration office and shall be responsible for the
truthfulness and accuracy of information contained in the dossier.
2. The business registration office shall examine the business registration dossier and issue a
business registration certificate within ten working days as from the date of receipt of the dossier; if
refusing to issue a business registration certificate, it shall notify the applicant thereof in writing. The
notification must clearly state the reason for refusal and requirements for amendment or supplement.
3. The business registration office shall examine and be responsible for the validity of the dossier
when issuing a business registration certificate; and shall not be allowed to ask applicants for any
document other than those provided for by this Law.
4. The time limit for issuing business registration certificates associated with specific investment
projects shall comply with the law on investment.
 Step 2: Preparing business registration dossiers of private enterprises (according to Article
16 - Chapter 2 -Vietnam Enterprise Law)
1. Business registration application, made according to a form set by competent business
registration offices.
2. Copy of the people's identity card, passport or other lawful personal certification.
3. Written certification of legal capital issued by a competent agency or organization, for
enterprises conducting business lines which are required by law to have legal capital.
4. Practice certificates of the director and other individuals, for enterprises conducting business
lines which are required by law to have practice certificates as provided for by law.
 Step 3:Submitting dossiers and waiting to get certificate of the business registration.

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2.5.2 Some noteworthy other legislations in Vietnam Enterprise Law
2.6.2.1 Article 21Contents of business registration applications
1. Enterprise name.
2. Address of the enterprise's head office; telephone number, fax, email address (if any).
3. Business lines.
4. Charter capital, for companies, or start-up investment capital of the enterprise owner, for
private enterprises.
5. Capital share owned by every member, for limited liability companies or partnerships; number
of shares owned by every founding shareholder, types and par value of shares, total number of shares of
each type eligible for sale offer, for joint-stock companies.
6. Full name, signature, permanent address, nationality, number of the people's identity card,
passport or other lawful personal certification of the owner, for private enterprises; of owner or his/her
authorized representative, for one-member limited liability companies; of every member or every
member's authorized representative, for limited liability companies with two or more members; of every
founding shareholder or every shareholder's authorized representative, for joint-stock companies; of
every general partner, for partnerships.
2.6.2.2 Article 24 Conditions for the grant of business registration certificates
Enterprises shall be granted business registration certificates if they fully meet following
conditions:
1. Registered business lines are not prohibited;
2. The enterprise name complies with Articles 31, 32, 33 and 34 of this Law;
3. There is a head office that complies with Clause 1, Article 35 of this Law;
4. Business registration dossier is valid as provided for by law;
5. Business registration fee is fully paid as provided for by law.
Business registration fees shall be determined on the basis of the number of registered business
lines; specific fee rates shall be stipulated by the Government.
2.6.Definition ofthe Business Model Canvas
The Business Model Canvas is a strategic management template for developing new or
documenting existing business models. It is a visual chart with elements describing a firm's value
proposition, infrastructure, customers, and finances. It assists firms in aligning their activities by
illustrating potential trade-offs. (http://en.wikipedia.org/)

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Table 8: The Business Model Canvas
2.7. Contents of the Business Model Canvas table
(source: Business Model Generation book)
2.7.1 Value Propositions
a. Definition
This block forms the central spine of the whole model. Business Model Generation summarizes
the role of this block as follows:describe bundles of products or services that create value for a specific
customer segment. It also value delivered to the customer (benefit or cost) and value propositions
assigned to customer segments. To understand value propositions clearly, managers can solve
customers’ problem smoothies and easily to meet customers’ needs to make them satisfied.
b.Attributes
A good customer value proposition will provide convincing reasons why a customer should buy
a product, and also differentiate your product from competitors. Gaining a customer's attention and
approval will help build sales faster and more profitably, as well as work to increase market share.
Understanding customer needs is important because it helps promote the product. A brand is the
perception of a product or service that is designed to stay in the minds of targeted consumers.

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Business Model Generation provides this list of attribute-adjectives:newness, performance,
customization, full service, design, brand or status, price, cost reduction, risk reduction, accessibility and
convenience or reusability.
In conventional push-marketing, almost all of these will lead to a ‘race to the bottom’. By
contrast, in pull-marketing, all of these can lead to strong differentiation and perceived high-value – but
only if linked to the shared-vision of the shared-enterprise. Any value-attribute that doesn’t align with the
values of the shared-enterprise – for example, an emphasis on price or cost-reduction within a luxury-
oriented market – will probably cause more harm than good.
2.7.2 Customer Segments
a. Definition
Customer segment block defines groups of people or organizations that your business aims to
reach and serve. Customer segments have needs that justify a distinct offering. They are reached though
different Distribution Channels and require different types of relationships. They have different levels of
profitability and may be interested in a sub-set of the Value Proposition.
b. Types
Segmenting your customers into groups according to their needs has a number of advantages. We
can sort customer segment in many ways such as mass market (for example, fast-moving consumer-
goods), niche market (for example, anglers, doll’s-house collectors, dental supplies), segmented within a
market (for example, low-end versus high-end fashion), diversified from an organization’s perspective
(for example, Amazon Retail versus Amazon Kindle versus Amazon Web Services)and multi-sided
market (for example, newspaper advertising, web-based search)
2.7.3 Channels
a. Definition
The Channels block is shown in the center-right region of the Business Model Canvas. The book
asserts that this block: describes how a company communicates with and reaches its Customer Segment
to deliver a Value Proposition. It has some functions such as: raising awareness among customers about a
company’s products and services,helping customers evaluates a company’s value proposition, allowing
customers to purchase specific products & services, delivering a value proposition to customers and
providing post-purchase customer support.
b. Types
Direct Indirect
Owner - Sales Force
- Web Sales
- Own Stores
Partner - N/A - Partner Stores
- Wholesaler

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c. Phases
There are some phases we need to note when building this block: awareness, purchase, delivery,
and after sales. For each phrases, manager must proposed the proper strategy.
2.7.4 Customer Relationships
a. Definition
The Customer Relations block is shown towards the upper right on the Canvas. The book states
that this block: describes the types of relationships a company establishes with specific Customer
Segments. A comment about motivations, which the book summarizes as: customer acquisitions,
customer retention and boosting sales (upselling).
b. Types
Moving on, the book summarizes typical roles of relationship-types – I’ve added a descriptor to
indicate the interaction type in each case: personal assistance (human to human), dedicated personal
assistance (human to human), self-service (human to self), automated service (machine to human),
communities and co-creation (partners).The organization may also need ‘hands-off’ relationships with
some of its stakeholders – for example, knowledge-management community-of-interest, brand-related
fan-club, or product discussion forums.
2.7.5 Revenue Streams
a. Definition
The Revenue Streams block is shown on the lower-right of the Business Model Canvas. The book
summarizes this block as follows: the cash a company generates from each Customer Segment and
represents the Customer Segment’s quantification of the Value Proposition. Which, bluntly, is likely to
give a lethally-incomplete description of the ‘value-returns’ flows of a business-model…
b. Types
The book suggests the following means to generate value-streams: sale of assets, usage fee,
subscription fee, leading or renting or leasing, licensing or royalties, brokerage and advertising. All of
which, again, implies the specific subset of transactions that can be mapped or transformed directly into
monetary form, which is often dangerously-incomplete. All of this needs mapping of pre- and post-
’monetization’, with an explanation of each transform – and maintenance of any non-’monetisable’ value!
Beside that we also have 2 other types such as: periodicity (one-time and recurring) and pricing
mechanism (fixed list price, bargaining, auction, market dependent, volume dependent and yield
dependent).

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2.7.6 Key Partners
a. Definition
On Business Model Canvas, the block is shown over on the far left. The book summarizes this
block asdescribes the network of suppliers and partners that make the business model work. And main
motivations are optimization and economy of scale, reduction of risk and uncertainty and acquisition of
particular resources and activities.
b. Types
The book suggests four different types of partnerships:strategic alliances between non-
competitors, competition (strategic alliances between competitors),joint ventures to develop new
businesses and buyer-supplier relationships to assure reliable supplies. We might note also that an
ordinary ‘hands-off’ or contract-only buyer-supplier relationship actually is also a type of partnership –
just not as explicit in its form as a relationship of partners in business. As motivations for partnership-
type relationships, the book suggests: optimization and economy of scale, reduction of risk and
uncertainty (and also enabling of shared-opportunity) and acquisition of particular resources and
activities.
2.7.7 Key Activities
a. Definition
This block is shown in the upper center-left of the Business Model Canvas. It describes the most
important things a company must do to make its business model work.
b. Types
They categorize key activities as production, problem solving and platform or networkwhich is a
very incomplete subset, even for a summary of this type.
2.7.8 Key Resources
a. Definition
The Key Resources block is shown on the center-left of the Business Model Canvas. It describes
the most important assets required to make a business model work. It allows an enterprise to create and
offer a Value Proposition, reach markets, maintain relationships with Customer Segments and earn
revenues.
b. Types
We can categorizes assets as follows: physical (material, facilities, equipment), intellectual (brand,
IP, partnerships, data), human (people and skills) andfinancial (cash, line of credit, loans). Some time we
also can categorize assets as ownership (owned, leased, licensed and acquired from key partners).

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2.7.9 Cost Structure
a. Definition
This block is shown on the lower-left of the Business Model Canvas. It describes all costs
incurred to operate a business model.The book suggests just two business-model cost-structure
types:Cost-driven business models focus on minimizing costs whenever possible, aim for lowest-possible
cost-structure(e.g. budget airline). Value-driven business models are less concerned about cost, focusing
instead on value creation,emphasis on perceived-value such as premium service (e.g. luxury hotel). Such
costs can be calculated relatively easily after defining Key Resources, Key Activities and Key
Partnerships.
b. Types
For cost-structures themselves, the book suggests the following characteristics: fixed-cost, which
will (usually) be same regardless of scale (e.g. manufacturing-plant); variable-cost which linked to
volume, scale, consumables etc.; economies of scale which costs reduce with increasing scale and
economies of scope which re-use in other contexts.

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2.9 The Business Model Canvas of Caramel milk-tea shop
Table 9: Caramel milk-tea shop’s business model
Key partner
- Buyer-supplier
relationships to
assure reliable
supplies: we
build
relationship with
Taiwanese
bubble supplier
and Mongolia
flavors supplier.
We also have
good
relationship with
reliable
domestic
suppliers (milk
company, tea
company and
ice-cream
company)
Key Activities
- Production
- Problem
solving
- Network
- Marketing
Value
propositions
- Brand:
Caramel
- Apply
Taiwanese
services styles
more
professional,
quicker and
friendlier.
-Price is
cheaper than
other milk-tea
shop in the
current market
(less than 30%-
50%).
- Diversity in
flavors and sizes
of bubble.
- New kind milk-
teas from others
countries.
Customer
relationships
- Personal
assistancecustomer
service.
- Our first customers
begin from our old
classmates, school-
mates and
acquaintances.
Customer
segments
- We chose
mass market
but we focus on
the group
people from 12
to 30 years old
(students and
workers)
Key Resources
- Physical
- Intellectual
- Human
- Financial
Channel
- Direct channel
- use Sales force
- Customers come
shop to buy directly
(buy less than 5 cups)
or they can purchase
through telephone
and we will deliver
product to them (if
they buy more than 5
cups)
Cost Structure
- Fixed costs
- Variable costs
Revenue streams
- Periodicity: we chose recurring, every 2
months.
- Form of generation: asset sale milk-tea
products.
-Pricing mechanism: fix list price and yield
management.

37 | P a g e
Chapter 3: Research methodology
The four purposes of this chapter are (1) To describe the research methodology of this
study; (2) To explain the sample selection; (3) To describe the procedure used in designingthe
instrument and collecting the data and (4) To provide an explanation of the statisticalprocedures
used to analyze the data.
3.1 Researchdesign
To identify possible strategies Caramel can adopt, the research will take a quantitative
analysis approach; it will focus on descriptive analysis. The descriptive approach will give
systematic procedures the caramel can focus to increase quality and quantity of customer.
3.2 Sampling
Our participants from specific location (District10, Ho Chi Minh City) will be selected
randomly. To request an opportunity to conduct an interview with the relevant persons, the
researchers will send survey to the random people in park, school, office and supermarket.The
aim of the researcher is they will fillingallquestionnaires or interview these people that are
involved in planning strategic development for the Caramel store.
3.3 Data collection
Data collection will focus on both primary and secondary data. Secondary data is
information obtained from previous researches on a subject. Scholars collect and analyze data in
most researches; therefore, collecting secondary data is simple and does not call for a technical
approach for analysis. In this case, secondary data will mainly come from articles and different
materials written about milk-tea article, beverage survey. Plans that are strategically prepared by
the government and individuals will contribute significantly in completing the study
Primary data is the fresh data collected from the field by a researcher. It contributes
significantly in situation analysis because it shows the status quo. The researcher will use
quantitative methods of data collection to collect primary data: questionnaires and interviews.
The researcher will prepare for interviews or send a questionnaire to the people who’s is target
strategy in providing solutions to the challenges. The researcher will formulate clear research
questions in both the interviews and questionnaires to help the respondent answer the questions
clearly.

38 | P a g e
3.4 Data analysis
Data will be collected in two weeks. The data collected will be analyzed with relevant
data analysis methods and presented in the final stage of strategic planning. Quantitative research
methods will be used for data analysis.
3.5Structure
This study will have different sections including introduction, literature survey,
methodology, results, and interpretation of study results, recommendation and conclusion. Each
of the sections mentioned will be provided with relevant information about creating a strategy to
open a milk-tea store in take-out style properly.

39 | P a g e
Chapter 4: Marketing plan
4.1 Product and product strategy
A product strategy is the ultimate vision of the product, it as a map guide direction for our
shop’s development. As we mentioned above, our target customers are students and official
employers, so our products need to be diversify.
In the first year, we focus on 3 main antlers as bubble milk tea, coffee-milk and tea. We
make sure that the product quality always the best and not change our special flavors.
Vietnamese customers are afraid ofunidentified products so we must ensure with customers, all
bubble export directly from Taiwan. When opening shop, we have total 12 original flavor bubble
tea such as: blueberry, chocolate, green apple, honeydew, taro, passion fruit, raspberry,
strawberry, vanilla, mango, lychee and peach. In Vietnam traditional coffee-milk antlers, we
have some featured products as: 100% ice coffee, ice coffee-milk 50%, ice coffee- 75% milk,
fresh milk and honey milk. About tea antlers we have ginger tea (just use in hot), honey tea,
herbal tea, lychee black tea, yoghurt black or green tea and lemon tea. In this period, we have
some special products which help our shop different from other bubble tea shop are Taiwanese
black tea and bubble tea ice cream. Combine with these drinks we deliver extra foods such as
circular glass bead, tube glass bead and pudding (see the table below).
Every 3 months, we will launch new product to meet diversity demand of customers as
well as bring freshness for our shop.

40 | P a g e
Table 10: The List of Caramel's product
Follow this orientation, in the first 3 months after opening time; we will launch some new
products like brown rice green tea, kumquat green tea, bubble tea with flavor black tea and
papaya. We also add more 2 flavors ice cream as oranges and mango and some extra foods flavor
so customers will have more choice for their mix. Next 3 months, peanut and banana bubble milk
tea and chrysanthemums tea are launched to market with one new circular glass bead flavor. 3
last months in the first year, we add a series of 4 new flavors for bubble milk tea product (red
bean, watermelon, cherry and coffee) and 2 kinds of tea like red apple and black tea latte. Beside
we also continue to supply new favor for glass bead product.
In conclusion, after one year open shop, we total have 20 kinds of original bubble milk
tea, 6 kinds of ice-cream can combine with original milk tea, 3 kinds of coffee-milk, 12 kinds of
tea and more than 10 kinds of extra foods.

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4.2 Product feature and benefit
4.2.1 Bubble milk tea
Milk tea is also known as pearl milk tea, boba milk tea, boba tea, tapioca tea, bobanai
cha, pearl tea, bubble tea, bubble drink,珍珠奶茶, tapioca pearl drink, momi, momi milk tea,
QQ, or any combination above. The oldest known milk tea consisted of a mixture of hot
Taiwanese black tea or green tea, small tapioca pearls, condensed milk, and syrup. Many
variations were created, the most common of which is served cold rather than hot.
Milk tea is generally offered in two distinct ways as a fruit-flavored cream drink and a
sweetened fruit drink. Most fruit-flavored cream drink includes powdered non-dairy creamers to
"cream" the drink, but some shops also offer fresh milk, ice cream, soy milk, or lactic milk as an
alternative. These creamed drinks may or may not include tea as its base liquid. A sweetened
fruit drink usually includes crushed-fruit smoothies with tapioca pearls to add fun. Milk tea
comes in a variety of different flavors, the most popular being the fruity and creamy ones. Some
widely available fruity and creamy flavors include strawberry, green apple, passion fruit, mango,
lemon, watermelon, grape, lychee, peach, pineapple, cantaloupe, honeydew, banana, avocado,
coconut, and kiwi. Other popular non-fruity and creamy flavors include taro, chocolate, coffee,
mocha, black milk tea, thai tea, lavender tea, and rose tea. Some cafes and shops offer non-
creamy drinks by using fruit pulp syrups like passion fruit, honeydew, strawberry, and lychee.
There are now 250 varieties of flavors and choices of a milk tea drink.
4.2.2 Vietnamese traditional coffee
Vietnamese iced coffee is a combination of concentrated coffee brew, condensed (very
sweet) milk(do not use evaporated milk; always condensed milk). To brew Vietnamese iced
coffee as authentically as possible (though with a specialty coffee twist), we need something

42 | P a g e
called a phin (one kind of filter). A phin is the name for the little coffee brewer used for this
brewing style.
A phin is small filter coffee pot. It looks like a hat and sits upon the top of a coffee cup. Inside is a chamber for
coffee and room for hot water. It is very basic and simple, and works.
Coffee is a very popular drink in many countries. Perhaps no one stimulant is used widely
and legally worldwide as coffee. Coffee is sold in many forms, granules, powders or instant bag.
You can purchase at any time and buy as much as you can. Ha Vo - Vietnamese herbalist told
that “Drinking one to two cups of coffee per day can help your body fresh and flexible”.He is
also mentioned in his research that due to stimulate nerves, coffee increased the stress hormones
like adrenaline, cortical so be able to enhance the ability to "fight back or run away" help us
dynamic, flexible and temporary relief of fatigue. Coffee can help relieve boredom and
sleepiness monotonous tasks such as driving, watchman, childcare and sick caregivers.For
diabetes, used to have an official popular research on Annals of Internal Medicine journal that
drink coffee may reduce the risk of diabetes in healthy people, who does not have cancer,
diabetes and cardiovascular. Especially, a recent study by scientists at the University of South
Florida showed that coffee has the ability to significantly improve symptoms of Alzheimer’s
disease, amnesia disease and occur in the elderly.
How to make Vietnamese Iced Coffee-milk by using phin?
Step 1: Preparing tools and materials. All you need are 1 phin, 20 grams ground coffee,
condensed milk, 1 cup and ice.

43 | P a g e
Step 2:Adding materials: Condensed milk and coffee. We put condensed milk into
glass, depending to your taste, you can use ratio 1:1,1:2 or 3:4 for coffee and milk. This is a
120ml brewer and can hold a max of 15g of coffee. We're adding around 14g for our brew.
Step 3: We adding the spreader then add about 20ml of 90C water. After that letting it
sleeps a bit, allowing the coffee to expand. We call this period is pre-infusion time.
Step 4:Adding another 100ml of brewing water after letting the pre-infusion take place
for 20 seconds. Then add the lid to keep the heat in and let the brew take place. The brew may
start off slowly at the start but when the brew is about 2/3 of the way,it is speeding up a bit.
Step 5:When finish we have a cup with rich, concentrated coffee and the layer of
condensed milk. We stir the coffee vigorously to mix the condensed milk layer with the coffee
brew.At this point, most of the condensed milk is mixed in with the brewed coffee, but it is still
hot, so time to add ice.
4.2.3 Tea
According to statistics, tea is the second most popular beverage in the world after water
only. That's true, because a part can drink the tea in the form of heat, cold; other parts are also
many kinds of tea suit individual preferences. In the world we have more than 1,500 varieties of
tea. People drink tea from hundreds of years ago by the great benefits of it.
A. Green tea
Written in Medical New Today, green tea has may form such as available bottled and
sweetened with sugar or an artificial sweetener, in single tea bags, loose-leaf, and in instant-
powder. Green tea supplements are sold in capsule form or liquid extracts.

44 | P a g e
According to the National Cancer Institute, in countries where green tea consumption is
high cancer rates tend to be lower, but it is impossible to know for sure whether it is the green tea
that prevents cancer in these specific populations or other lifestyle factors. We also have a 2006
study published in the Journal of the American Medical Association concluded that green tea
consumption is associated with reduced mortality due to all causes, including cardiovascular
disease. Other studies have found that green tea is helpful in preventing dental cavities, stress,
chronic fatigue, treating skin conditions and improving arthritis by reducing inflammation.Not
only that many studies indicate green tea can fight many diseases, even increased longevity. In
large concentrated tea antioxidants called polyphones, it has the ability to fight cancer,
osteoporosis and cardiovascular disease-related.
B. Lemon tea
Lemon tea is a mixture of tea and lemonade. You can use fresh tea, dried tea or instant
tea bag to make tea. Cooling tea then cut lemon and squeezed it to get juice, per 500ml of tea we
can squeeze 1 lemon. Add a few slices of thinly sliced lemon to decoration. If you like sweet
drink, you can add honey in this mixture.
Combined the benefits of tea and lemon, lemon tea helps drinkers reduce anxiety.
Research has shown that lemonfragrance helps relaxing effect, reducing fatigue, dizziness,
nervousness and suspense. As a sharing on privacy blog clairekcreations.com atFebruary 12,
2013, Claire wrote “I have the juice of half a lemon in my tea (some people just have a slice)
which filled one cube perfectly. I zested all the lemons first so there was absolutely no wastage
and now I have a nice little supply in my freezer ready for baking and cooking”. And she has
received 18 comments agreed with her opinion. In addition, in Tracey Roizman’sarticle
onhealthyeating.sfgate.com, he use the research of Purdue University to talk about drinking
green tea with lemon improves the health benefits of the tea that citrus juice brings out green

45 | P a g e
tea's antioxidants, making them more available for your body to absorb. Catechins, which prefer
the acid environment of the stomach, become degraded in the more alkaline conditions of the
small and large intestine, where nutrient absorption takes place. Lemon juice can increase the
amount of catechins your body extracts from green tea by up to six times. While compounds in
tea can inhibit iron absorption from foods in your diet, drinking your green tea with lemon
reduces that effect.
C. Ginger tea
Ginger tea is a mixture of tea with fresh ginger, some time you can add honey or lemon
as your own taste.Ginger tea is now very popular in the world, especially in cold climates.The
way to make it is simple and you can do it at home. Firstly, peeling the ginger root and slice it
into thin slices. Next, boiling water then add the ginger into saucepan and waiting for 15-20
minutes. After that you can use it. Ginger tea’sflavor characterized by warm and spicy.If you add
honey and lemon, it will have a little sweet of sugar and sour taste of lemon.
According to Dinh Dung pharmacist’s research (Ha Tinh Pharmaceutical Joint Stock
Company),ginger has been used as medicine since more than 5000 years ago because of its
valuable medicinal properties. In Burma, China and India, ginger tea is used to prevent and treat
the normal flu. In Vietnam, ginger is used to prevent colds, nausea and motion sickness and it is
very effective in treating cough. Thank for containing Cineole, ginger can help relieve stress,
migraine treatment, and help to refreshing and having a good sleep.Ginger can help to reduce
Cholesterol, and reduce heart disease and high blood pressure. In reality, scientific has proven
that ginger tea not only increases blood pressure for people with low blood pressure but also help
to prevent and reduce high blood pressure for people withblood pressure. Ginger has affection to
enhances blood flow to the genitals so the Western countries and North America nowadays,
people tend to use ginger instead of Viagra to treat physiologically impotence in male and
female. Take one cup of ginger tea before bedtime is not just to protect the health but also can
add flavor to the private emotional life of each person.

46 | P a g e
D. Herbal tea
Drinking tea is a habit of many Vietnamese, especially herbal tea. Each type of tea has a
distinct aroma gives a different feeling and great taste for customers. There’s nothing nicer on a
cold midwinter’s day than a soothing cup of herbal tea. But besides being a tasty, warming,
caffeine-free pick-me-up, herbal tea has lots of wonderful health benefits. From soothing a
troubled tummy to easing insomnia and calming a troubled mind, herbs have all sorts of healing
powers. Drinking herbal tea can also be a great source of vitamins and minerals.
The research on Thuc Pham Thuoc newspaper online (Vietnam medical newspaper), they
said herbal teas contain antioxidants and they list out all the benefits of herbal tea such as: it can
help reduce the risk of heart attack and stroke, protects your bones, give you a sweet smile,
support protecting the immune system, helping the body hydrated and enhances metabolic
processes.Beside that having a study based on 4,400 women showed that for 6 years, drinking
herbal tea regularly reduces the risk of breast cancer in half.
E. Brown rice green tea
Brown rice tea, known as "Genmaicha" in Japanese, is a special blend of green tea and
roasted brown rice. Brown rice tea contains flavonoids, antioxidants, trace minerals and
vitamins. The health benefits of brown rice tea are comparable to that of green tea. Brown rice
tea has a nutty aroma and flavor, and you can serve it warm or use it to make iced tea. It’s very
good for health because it’s rich in Polyphones and lower risk of cancer.
Roasted brown rice tea purifies the liver, causing the blood is cleaning. Red blood cells
are round and serums are clear. In addition, it also gives you bright ruddy and beautiful
complexion, cleaning the blood, not toxic. Less or no longer aches when it's cold.

47 | P a g e
F. Chrysanthemums tea
Chrysanthemum tea is made from chrysanthemum flowers, belonging to the
Chrysanthemum morifolium or Chrysanthemum indicum species, which is extremely popular in
East Asia, specifically China. Chrysanthemum flowers are usually dried and boiled in hot water
in a teapot, cup or glass, to prepare this tea. Sugar or honey is also added to chrysanthemum tea
and occasionally, wolfberries are included. The tea that is prepared is transparent and can be
bright yellow or pale in color, exuding a floral aroma. In China, after a pot of chrysanthemum tea
is emptied, hot water is again added to the flowers. This produces a tea that is less strong than the
previous one. The process is repeated several times, until the flowers lose their aroma
completely. Traditional Chinese medicine practices still use chrysanthemum tisane for treating
conditions such as sore throat and fever.
Since long time, people consider chrysanthemum as a kind of herbal tea, which can anti-
inflammatory, analgesic and anti-ulcer. Furthermore, compared with other herb teas have heat
effect; chrysanthemums also help brighten the eyes, making mental clarity, lowering blood
pressure. Chrysanthemums can consistent with both children and adults. In particular, efficient
cooling effect of these flowers will be very good for those who regularly have high temperature,
heat due to office work, often sitting at a computer, facing stress due to work pressure, less time
campaigning and conditions not eating enough nutrients.Additionally, based on information in
report of Dan Tri online newspaper, we can summarize the benefits of chrysanthemums tea
including as stomach cramps treatment, migraine treatment, reducing dark circles under eyes,
improving sleep and treating cramps during menstruation.

48 | P a g e
G. Kumquat green tea
Kumquat green tea is a famous beverage. It is not only a beverage, Kumquat green tea
has many health benefits as:Kumquats are low in calories (8 kumquats have little more than 100
calories) and they are full of antioxidants, vitamins, minerals (copper, calcium, potassium, iron,
selenium, zinc, manganese), and lots of fiber. Kumquats have polyphenols in them like green tea
and beta-carotenes important for your immune system, and even great zeaxanthines, and lutein
that are important for eye health. Kumquats contain vitamins A, B’s, C, and E which are
important for keeping way degenerative diseases.
H. Red apple tea
Red apple tea although do not have tea components in raw materials but is still
considered as a good cooling tea is for summer. In addition to red apple tea has many health
benefits such as: anti-allergy, curing low blood pressure and anti-cancer.
Red apple tea in combination with ginger tea will become a suitable tea in cold winter
days. Ginger has moisturizing effect, cold treatment, the sweet ofred apple soothes the throat,
and apple juice is very good for those with sore throat in cold season.

49 | P a g e
4.3 Competition
We use the scale from 1 to 5 to evaluate the strengths and weaknesses of competitors as
table below:
Factor Me Alo Tea Sun
Flower
Api tea
Product 4 3 4 3
Quality 4 3 4 3
Service 4 3 3 2
Selection 3 2 5 2
Price 5 3 2 2
Location 3 3 5 5
Company Reputation 1 2 5 3
Appearance 3 3 5 5
Table 11: Evaluate competitors
As you can see the table, Sunflower is taking advantage about the quality. Alo tea is one
of the first brands that have been sold the milk-tea but they cannot keep their performance when
they began. The quality of Api tea is low too because their target customer are for the one who
want cheap product so the customer cannot expect too much their quality
The service of our competitors is about the same. It is the Sai Gon culture because in the
south of Viet Nam, we always focus on service. We have a statement: “Customer is the god”. So
if any store in Ho Chi Minh City doesn’t treat customer like that. They are going the wrong way.
In Alo tea and Api tea, the customer don’t have too much the selection to choose for
themselves. Contrast to Sunflower, they selection is diversified .Their menu have many kind of
milk-tea favor, juice favor and the coffee favor also. But this is the disadvantage of Sunflower
also because they don’t have their unique flavor to attract more customers.
About the price, the Sunflower is higher than the other competitors. About 20-30% cost
compare with Api Tea and Alo Tea.
The location is very importance for the business, the location of our competitor is very
good. The location of Sunflower is on the street which has many people go on this every day.
The Alo Tea is near the Sunflower and the Api tea is near the school.

A business plan for bubble milk tea

A business plan for bubble milk tea

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