GAC012 Assessment Event 2: Project-Written Report Business Plan: Student’s Name: Kim Seungwan Student ID #: GAC Teacher: Mr. Choi Due Date: 4 July 2012 Word Count: GAC012 AE#2 Table of Contents Executive Summary ...................................................................................................................................... 2 1.0 Introduction ........................................................................................................................................ 2 1.1 The objectives of the research ........................................................................................................ 2 1.2 The context ..................................................................................................................................... 3 1.2.1 Prime function ......................................................................................................................... 3 1.2.2 Key competitors ...................................................................................................................... 3 1.2.3 Legal structure ........................................................................................................................ 3 1.2.4 Choice of Business .................................................................................................................. 3 1.3 Background knowledge .................................................................................................................. 3 1.3.1 The importance of SWOT ....................................................................................................... 3 1.3.2 The importance of the business plan model ............................................................................ 4 1.4 2.0 Thesis Statement............................................................................................................................. 4 Method ............................................................................................................................................... 4 2.1 Data collection ................................................................................................................................ 4 2.2 Research objectives from data collection ....................................................................................... 5 3.0 Findings.............................................................................................................................................. 5 3.1 Key success factors......................................................................................................................... 5 3.2 SWOT analysis of the business and an alternative. ........................................................................ 6 3.3 Summarization................................................................................................................................ 7 4.1 Interpretation .................................................................................................................................. 7 4.2 Assess the effectiveness of the research ......................................................................................... 8 5.1 Identification and Justification ....................................................................................................... 9 5.2 Competitive edge ............................................................................................................................ 9 Reference List ............................................................................................................................................... 9 Appendices.................................................................................................................................................. 10 Appendices.................................................................................................................................................. 11 page 1 GAC012 AE#2 Executive Summary Purpose: One of the biggest healthy food restaurant in the world. Thesis statement: Workers don’t have enough time to care their body and their task doesn’t even give them the chance to consume meals on time. We are accustomed to street food as flour based food which is injurious to health. If I undertake a health beverage store with an innovative concept, it will be a guaranteed success for the business. In this reason, there are lots of factors I can expect for success such as the method of my business such as the most effective way of advertising, method of attracting customers, concept and location which affect store’s sales Method: In terms of research, I used internet site to receive information about other companies’ concept, plan and how to grow and interview for knowing material difference between plan and reality. Findings: During the information about SWOT, I could make a plan more detail and analyze my new business to take the key factors. Through SWOT, I can know good location, concept and target. Key conclusions: I choose Plan B which is located near the Gangnam station and corporation. This plan has lots of efficient factors as working with partner and it can appeal to a wider customer base. Recommendations: Truthfully, I considered many kinds of factors in location, working form and concepts which are important things in new business. During this work, I realized that I must be prepared for a certain difficulty in starting my new business. 1.0 Introduction 1.1 The objectives of the research Open a successful juice bar either near Gangnam station or University Street by selling a variety of healthy beverages and snacks. My company, there are many lucrative opportunities in this emerging field. Our main target is girls or women ages from 10 to 30 and attracting them to be our regular customer. Our short -term goal is drawing more than 20 regular customers per week and long-term goal is that my company will rack up $100 million slowly from week to week it will be built an audience within 10 years. page 2 GAC012 AE#2 1.2 The context 1.2.1 Prime function My store is a healthy beverage enterprise which focuses on providing low-calorie and nutritious drinks. Moreover, it is a health food retailer that satisfies your healthy lifestyle using vegetables. Our store’s special promo is that customer chooses their beverage’s ingredients. 1.2.2 Key competitors 1. Smoothie king, which was established in 1973, is one of the biggest healthy food retailer that produces a refreshing and energizing fruit drink. 2. Jamba juice is also natural energy drink which contained fruits such as pomegranate. 3. Mango Six, which concept is premium dessert café, its good concept menu has Hawaiian Kona coffee and Mango juice. They focus on freshness of ingredients. Moreover, their company signed an exclusive contract with Greenwell Farms which is located in Hawaii. 1.2.3 Legal structure A partnership would be most ideal. In terms of flexibility, I really want to work without interference and complexity. Therefore, if I meet someone who is on the same wavelength with me, I can work with them. As always, two heads make lots of problems and create a conflict because we speak different language. In terms of cost fee such as rental fee and share revenues, it must be agreed upon signing a contract. However, I have to work with partner because I don’t have enough money to work alone. 1.2.4 Choice of Business I am always looking for healthy options in Seoul, but there are not many. In modern society, interest in healthy food is rising along with the expansion of the well-being t and food industry focus more on healthy foods. Also, many people are pressed for time so they don’t have the time to consume essential nutrients which contained vegetables. Therefore, my business plan, which is healthy beverage food would be a good business to create and offer healthy food and beverages to those who are looking for healthy options as opposed to street food that are unhealthy and hard to digest. My store feature is that customer can choose ingredients of the beverage. It means that if customer wants to make a new menu, they can get varies various ingredients to suit his or her taste. We focus not only making relentless efforts to provide services that cater to our customer’s demand, but also respect their preference. 1.3 Background knowledge 1.3.1 The importance of SWOT SWOT stands for Strength, Weakness, Opportunities and Threats which are the most important to plan my own business. It represents objective view that can compare between location’s strength and page 3 GAC012 AE#2 weakness. We collect data, information and figures and then make a chart. Through this SWOT chart, we can make a rough guess as largest customer age, investment cost and threat. 1.3.2 The importance of the business plan model It can be used to deploy and reduce the time. Business plan is the backbone of a company policy which proposed the direction of the company as their guide book. Second, I can analyze my business plan and compare it with data of my competitors. In terms of concept and menu, I have more information than the other competitors. More information and plan will become corporation’s power. 1.4 Thesis Statement In modern society, Korea has achieved a high level of economic growth and Korean’s quality of life has improved dramatically since the growth of economy. Until now, Korean continues to put efforts to improve their quality of life and start to take more interest in their health. However, they don’t have enough time to take care of their body and their task doesn’t even give them the chance to consume meals on time. We are accustomed to street food as flour based food which is injurious to health. If I undertake health beverage store with a innovative concept, it will be a guaranteed success for the business. In this reason, there are lots of factors I can expect for success such as the method of my business such as the most effective way of advertising, method of attracting customers, concept and location which affect store’s sales. First of all, if I will advertise products in the drama like Mango six, the effectiveness for sales volume is expected. Second, in terms of concept, most girls prefer to drink low calories beverage than high calorie food. Lastly, in terms of location, Café or restaurant business are usually located in densely populated areas as near the companies and station. 2.0 Method 2.1 Data collection Research http://www.jambahawaii.com/ www.mangosix.co.kr/ http://www.smoothieking.com/ Interview 1. Dongwoon An ( General Manager), Mango Six Seoul, SeongdongGu Hangdangdong 17, Hanyang University Dongmoon Hawkwan Frist floor H.P : 010 – 9173 - 8213 page 4 GAC012 AE#2 E-mail : zddalgiz@naver.com - 2. Jiwoo Kim Bubble Tok Seoul, SeongdonGu Hangdangdong 16-53, H.P : 010 – 7732 – 9822 E-mail : essai78@hanmail.net 2.2 Research objectives from data collection Research http://www.smoothieking.com : I receive information as definition of healthy drink. It provided information about how many franchises in our country and what is the purpose of that franchise. www.mangosix.co.kr : Provided information in terms of what the feature of Mango Six is and what main concept they are. http://www.jambahawaii.co.kr : Provided information about what purpose they are. Interview Dongwoon An: Mango Six – I received help from Dongwoon An, who is one of the Mango six’s general manager. First of all, in terms of menu, best selling item is blue lemonade and mango coconut juice which have clear color and fresh ingredients. Secondly, Mango Six’s best selling menus are blue lemonade and mango coconut juice. Briefly, I receive information about is the Mango six’s concept. - Jiwoon Kim Bubble Tok- According to Bubble Tok manager, business’s key factor is fresh item. In fact, Bubble is not famous beverages in Korea. She is the founder of bubble and she successfully make her store. It is always crowded that it is almost burst at the seams. 3.0 Findings 3.1 Key success factors First of all, the menu is extensive because of its freshness of ingredients. Freshness and quality of ingredients is the key success factors because it can guarantee their customers. Second, company should have concepts, which is very clear. Moreover, for example, page 5 GAC012 AE#2 Mango six’s concepts are taking focus to healthy, fresh fruits (Hawaiian coconut farms). Lastly, according to Kang Hoon, who is the previous owner of Café Bene and Mango six’s founder, showed the effects of advertising for Mango six. Second, benchmarking to Bubble Tok, has a specific idea, which is called bubble. It’s a kind of jelly that is included in the beverage and its feature is that it has a range of flavors and textures to choose from. 3.2 SWOT analysis of the business and an alternative. Focus on location (near the Women’s University), concept (Event), Working without colleague Strength Weakness More money from lots of customer ( doesn’t have to divide profit, near the station) Spread through word of mouth. Main target is girls. It has different kinds of events daily. In summer, people tend to drink cool beverage. Competitor’s products are sold very expensively. Uncommon kind of business ( a few competitor) Tax rate is lower than Gangnam Hard to start up ( Too heavy a burden) The cost makes it difficult for owner to afford the monthly rent ( Pay alone) Hard work. Lack of experience. The ingredients cost much Opportunities Threats There are many competitors. Suffer from a shortage of man power Ingredient’s costs are variable according to the amount and crop Nowadays, the price of vegetable and fruit is increasing. Focus on location (near the Corporation – worker population center, Gangnam station), concept (Helathy), Customer choosing system and Working with colleague. Plan B Strength Weakness Location where many people. Easy to start up ( An equal split all Price of land ( more twice than the other places) page 6 GAC012 AE#2 3.3 costs with partner) Divided profits It has different kinds of Low awareness than corporation flavordepending on the vegetables The ingredients cost much and fruits It can be made within few minutes. Opportunities Threats Most worker’s tend to buy beverage (dissert) after launch. Appeal to a wider customer base. Location where many people meeting in the store. A lot of opportunity to get sponsorship. Can be delayed to receive ingredients (traffic jam) High cost delivery fee. Ingredient’s costs are variable according to the amount and crop Nowadays, the price of vegetable and fruit is increased too much Summarization Question Why do you choose this company? What is the advantage or feature of your own store? What is the best selling product? Why do you think they are best selling? What is the effect of best selling menu? What ages are their main customer base What is the advantage of location? 4.1 Mango Six 1. Trust CEO 2. Mango’s effectiveness as an antioxidant Using all ingredients 100% fresh fruits ( evidence : Hawaiian coconut farms) Blue lemonade and mango coconut juice. 1. Effect of advertisement – elegance of a gentleman 2. Mango is veryspecial fruit in Korea Beta-carotene and low calorie(mango – 68 calorie per 100g), Anti-aging Located in Hanyang University – Students After lectures, they always have many student customers. Bubble Tok Bubble Tok has lots of potential in Korea’s market Bubble which is kinds of jelly and using ecofriendly cup. Original milk tea It is very original and originalityl is important ( If customer, who don’t know about Bubble Tok, always order orginal beverage) Includes all milk. 20s After lectures, they always have many student customers. Interpretation On average, almost beverage menus are from 5000W to 7000W while production cost is just 2000W to 3000W. Due to economic crisis customers don’t want to buy too expensive beverages. Customers are more sensitive to price than the other factors. They already know that many beverage stores make undue profits on and it is minus point for company’s image. In this aspect, my store will run on its page 7 GAC012 AE#2 volume sales at a low unit margin of profit. Second, Places, which located in Gangnam station or Women University, are the most expensive place. The area’s high land prices make it prohibitively expensive to make a plan and also give a big risk. It means that places are the fattest of the land. These areas have a large floating population and the demand side is almost equal with the supply side in these places. If my store will become famous through word-of-mouth, my business can gain healthy food commercial supremacy. Lastly, there’s one thing I’v noticed about very successful business. The main success key factor is concept. For example, according to Mango-Six’s establishment briefing, Kang Hoon, who is the previous owner of Café-Bene’s and Mango-Six’s founder, said that most people are very sensitive about trend and we need to target this aspect. If new business sets the new trend, this factor is guaranteed to bring a success. 4.2 Assess the effectiveness of the research In terms of healthy beverage, it started in the early 1973s (Smoothie king), Many workers were tied down to work. Therefore, they didn’t have enough time to consume essential nutrients and vegetables. Finally, some of them were anxious for their health. Considering the people’s psychology, Kooner established Smoothie king in 1973. Smoothie king causes that the whole country seems to be in the grip of well-being fever and few forms of food have had as much influence on healthy beverages. Still nowadays, people enjoy drinking Smoothie king. In addition, another healthy beverage companies were established such as Jamba juice and Mango six. In this aspect, they are showing that “the Well-being Wave” is not a flash in the pan. In modern society, many people are concerned with their health and many corporations focus on developing health concept. Direct to the point, this business has a bright enormous potential for development. Therefore, I’m sure that my business will be in different places because the people guess that the most important thing is their health. Honestly, I didn’t know about the meaning of health beverage before until I started to plan my business. However, through this working, I know information for cost and location. Realistically, I have been brought over budget than I expected. There are lots of factors that are the new business cost difference depending on location and quality of ingredients. For instance, in terms of investment costs, store, which is near the Gangnam station and standard, is 270,000,000 won per 15 Pyeong while the outskirts of Seoul is just half of the former. On the average, premium is 17,000,000 Won and deposit is 20,000,000 Won. However, every owner is anxious for their store’s rental cost because monthly rent cost is as much as 5,500,000 Won. Like this, internet interview makes me plan realistically. page 8 GAC012 AE#2 5.1 Identification and Justification First of all, I am very concerned with many for interior design and rental fee. The task of paying a tremendous cost is too onerous to bear. Stakes are so high that I can’t invest on this business singlehandedly. Second, in terms of experience, I don’t have experience to be involved in management. I need a partner who is well experienced in healthy food restaurant management. 5.2 Competitive edge First, I have lots of information to make a new business item. A new business item of my own company will be beginning to crystallize. My plan is to use what I gathered information from researching the other competitors to improve a better healthy beverage as taste and freshness. Second, my business plan already has a lots of key success factors. Economical success is mediated by geographical factors. Moreover, Seoul is one of the complex structures of city in the world and restaurant business is affected by its location. Reference List Jimin Kim. "A carbonated drinks is down and functionality drinks is up" MooDeung Illbo 2011: N.P. 2012 July 11 No Info. "Afford health drink market expansion" YTN 2010: N.P. 2012 July 13 Hongsik Sin. "America, Enable functional beverage market" CHEBIGEN 2008: N.P. 2012 July 14 page 9 GAC012 AE#2 Jooyeon Oh. "Before the vacation, If you are faced with diet..." Asia Econmic 2012: N.P. 2012 July 14 Soohen Kim. "Berry Product, Good for Diet and Skin" Hankyerye 2012: N.P 2012 July 15 Appendices 이건 a 랑 b 로 나눠서 A – 1: Mango six Korean : 다른 프랜차이즈 점이 아닌 왜 망고 식스를 선택 했는지? 망고식스를 프랜차이즈로 만든 강훈이란 사람 때문입니다. 까페베네를 가장 많은 지점으로 만들었고, 망고식스란 브랜들 자체를 값어치 있게 만들 수 있는 사람임을 알았기 떄문입니다. 두번째로, 망고라는 과일의 효능, 항산화 효과 같은 효능이 있는 과일인 것이 마음에 들었기 떄문입니다. 건강한 음료라는 측면에서 웰빙이라는 점이 아주 맞는 식품인 것 같습니다. 망고 식스 만의 특별한 점은? 망고식스는 디저트 까페입니다. 식사후 간단한 음료나 빵, 케잌 등을 곁들입니다. 주스 종류가 더 많고, 커피 종류는 더 적습니다. 학생들도 많이 먹는 추세로 가고 있고, 모든 원료를 100% 신선한 과일로 사용합니다. 망고식스에서 가장 잘팔리는 메뉴? 2 가지가 있는데, 블루레몬과 망고와 코코넛을 섞어서 만든 망고 코코넛 주스가 있습니다. 이유는? 첫번 째는 신사의 품격이라는 드라마에 bpl 을 하는데, 걔중에서도 블루레몬에이드와 블루 코코넛이 드라마에 나오기 떄문입니다. 그로 인해 망고 코코넛이 3 배 정도의 매출이 늘어났습니다. 다 드라마 덕분입니다. 큰 이유가 있어서가 아닙니다. 잘팔리는 메뉴의 요소나 효능이 무엇인지? page 10 GAC012 AE#2 너무나 많아서 다 기억은 못하지만, 베타 카로틴이 가장 중요한 요소입니다. 망고 식스의 교육하는 책에 따르면, 망고의 재배역사를 비롯하여 많은 정보가 있습니다. 칼로리가 100g 당 68 칼로리 밖에 안되기 때문에, 다이어트에도 좋습니다. 과즙도 풍부하고 전해질이 많이 때문에, 흡수가 빨라 운동 후에도 좋고, 피부 미용에도 좋습니다. 하지만 수입을 하기 때문에, 비행기 스케줄에 의해 재료가 없을 때도 있습니다. English: Why do you choose Mango six? Why not the other franchise? First of all, the reason is that Kang Hoon made Café Bene’s successful. I already knew that he is a person who can make Mango six investment worth it. Secondly, I like mango’s effect as antioxidative activity. Healthy beverage, is the most perfect meaning of well- being. What is the feature of Mango Six? Mango Six is a dessert café. After consuming meals, customer can drink some beverages, eat bread and cakes. Mango six has more different kinds of juice than coffee. Students prefer to eat a lot and hundred percent raw materials are used as fresh fruit. What is the Mango six’s best selling menu? There are two beverages, blue lemonade and mango coconut juice, which mixed mango and coconut. Why do you think they are the best selling products? First of all, two products are advertised (BPL) by the drama, elegance of a gentleman. In the drama, actors always order blue lemonade and coconut juice. Through this advertisement, the sales of mango coconut juice triple times more than before. For no reason. What is the effectiveness of the best selling item? There are lots of factors that I can’t remember. However, beta-carotene is the most important factor. According to Mango six’s educational book, there is much information with cultivation history of mango. An average mango has about 68 calorie per 100g, therefore, it is good for diet. It is also containing an abundant juice and electrolyte. That’s the reason why it rehydrates the body faster than the other kinds of fruit. Aside from these, it is good for skin care. However, it has insufficient supply because of airplane’s schedule. Appendices 이건 a 랑 b 로 나눠서 A – 1: Mango six Korean : 다른 프랜차이즈 점이 아닌 왜 망고 식스를 선택 했는지? page 11 GAC012 AE#2 망고식스를 프랜차이즈로 만든 강훈이란 사람 때문입니다. 까페베네를 가장 많은 지점으로 만들었고, 망고식스란 브랜들 자체를 값어치 있게 만들 수 있는 사람임을 알았기 떄문입니다. 두번째로, 망고라는 과일의 효능, 항산화 효과 같은 효능이 있는 과일인 것이 마음에 들었기 떄문입니다. 건강한 음료라는 측면에서 웰빙이라는 점이 아주 맞는 식품인 것 같습니다. 망고 식스 만의 특별한 점은? 망고식스는 디저트 까페입니다. 식사후 간단한 음료나 빵, 케잌 등을 곁들입니다. 주스 종류가 더 많고, 커피 종류는 더 적습니다. 학생들도 많이 먹는 추세로 가고 있고, 모든 원료를 100% 신선한 과일로 사용합니다. 망고식스에서 가장 잘팔리는 메뉴? 2 가지가 있는데, 블루레몬과 망고와 코코넛을 섞어서 만든 망고 코코넛 주스가 있습니다. 이유는? 첫번 째는 신사의 품격이라는 드라마에 bpl 을 하는데, 걔중에서도 블루레몬에이드와 블루 코코넛이 드라마에 나오기 떄문입니다. 그로 인해 망고 코코넛이 3 배 정도의 매출이 늘어났습니다. 다 드라마 덕분입니다. 큰 이유가 있어서가 아닙니다. 잘팔리는 메뉴의 요소나 효능이 무엇인지? 너무나 많아서 다 기억은 못하지만, 베타 카로틴이 가장 중요한 요소입니다. 망고 식스의 교육하는 책에 따르면, 망고의 재배역사를 비롯하여 많은 정보가 있습니다. 칼로리가 100g 당 68 칼로리 밖에 안되기 때문에, 다이어트에도 좋습니다. 과즙도 풍부하고 전해질이 많이 때문에, 흡수가 빨라 운동 후에도 좋고, 피부 미용에도 좋습니다. 하지만 수입을 하기 때문에, 비행기 스케줄에 의해 재료가 없을 때도 있습니다. English: Why do you choose Mango six? Why not the other franchise? First of all, it’s the reason because of Kang Hoon who made Café Bene’s success. I already knew that he is a person who can make Mango six will be money’s worth. Secondly, I like mango’s effectiveness as antioxidative activity. In terms of meaning, healthy beverage, it is the most perfect fit the meaning of well-bing. page 12 GAC012 AE#2 What is the feature of Mango Six? Mango Six is a dissert café. After consuming meals, customer can drink some beverages, bread and cakes. Mango six is also more kinds of juice more than coffee. Trend of students going to eat a lot and 100% of all raw materials are used as fresh fruit. What is the Mango six’s best selling menu? There are two beverages, blue lemonade and mango coconut juice, which mixed mango and coconut. Why do you think they are the best selling products? First of all, two products are advertised (BPL) by the drama, elegance of a gentleman. In the drama, actors always order blue lemonade and coconut juice. By advertised drama, the sales of mango coconut juice are three times more than before. There are no big reasons. What is the effectiveness of the best selling item? There are lots of factors that I can’t remember. However, beta-carotene is the most important factor. According to Mango six’s educational book, there is much information with cultivation history of mango. An average mango has about 68 calorie per 100g, therefore, it is good for diet. It is also containing an abundant juice and electrolyte. That’s the reason why it rehydrates the body faster than the other kinds of fruit. Aside from these, it is good for skin care. However, it is often insufficient in supply because of airplane’s schedule. A-2 1. Korean : 다른 프랜차이즈 점이 아닌 왜 버블톡을 선택 했는지? 지금은 커피 전문점이 포화 상태이고, 다른 버블티 매장들은 맛이 없습니다. 미국에서 처음 버블티를 접하고, 맛있어서 한국 매장들도 방문을 했었는데, 너무 맛이 없어서 실망을 했습니다. 그 점에서 맛에 승부를 걸 수 있겠다고 생각했습니다. 두번 쨰로, 버블티 매장은 한국에서의 시장 발전 가능성이 무궁무진 합니다. 메뉴적인 면이나, 시장 개척도로 봤을 때, 버블티가 더 메리트가 있다고 생각했습니다. 버블 톡 만의 장점이나 특별한 점은? 다른 버블티 매장들은 신메뉴 개발을 안하는데 비해, 저희 매장은 대만 회사와 합작하여 신메뉴를 계획하고 있습니다. 딱히 특별한 점 이라기 보다는, 타 버블티 매장보다 맛있다고 자부 할 수 있습니다. 버블도 타피오카라는 펄 자체를 다른 매장은 블랙펄만 넣는데 비해, page 13 GAC012 AE#2 저희 매장은 스무디용 펄도 넣습니다. 또한, 카사바 칩이라는 과자 또한 본 매장에서만 판매합니다. 마지막으로, 인체에 해롭지 않은 친환경 컵을 사용합니다. 버블톡에서 가장 잘팔리는 메뉴? 오리지널 밀크티가 가장 잘팔립니다. 이유는? 가장 기본적인 메뉴이고, 처음 오신 분들께서 주문을 많이 하십니다. 오리지널이 맛있어야 다른 메뉴들 또한 맛있다고 평가를 하실 거라 생각합니다. 기본이 중요하다고 생각합니다. 주로 오는 고객층 연령대는? 20 대 – 대학교 근처이기 때문입니다. 학교 근처에 위치한 이점이 있는지? 개강 후에, 학생들이 자주 먹습니다. 학교 근처다 보니, 학생들의 입소문등의 요인이 있습니다. page 14