Business Plan for Coffee Enterprise in Vietnam

Running head: BUSINESS PLAN FOR COFFEE ENTEPRRISE IN VIETNAM
Business Plan for Coffee Enterprise in Vietnam
Name of the Student
Name of the University
Author Note

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Table of Contents
Introduction......................................................................................................................................2
1. Marketing Strategies for Café Marco using the 8 P’s..............................................................2
2. Financial Feasibility.................................................................................................................5
Appendix........................................................................................................................................13
3. Operational Plan.....................................................................................................................18
2. Attainment of Financial Capital..........................................................................................19
5. Action Plan.............................................................................................................................20
References......................................................................................................................................22

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Introduction
The love for coffee is universal, with people of all ages and from all walks of life
showing love and fondness for this beverage in any and every way. The country of Vietnam in
Southeast Asia is no exception, with plenty of coffee lovers existing in this part of the world.
Vietnam is a country where coffee is consumed by working professionals and non-working
professionals alike, and there are several cafes and bistros in the cities and towns of Vietnam
where people are seen to go and spend their time, chatting for long hours over a delicious cup of
steaming hot brew (Fforde 2019). Opening a coffee shop in Vietnam is therefore a lucrative
prospective, given the love for coffee that prevails among every segment of the Vietnamese
population. A new coffee shop in a premier city in Vietnam will attract the attention and the
interest of coffee lovers, both young and old, and the business will be certain do well if it
implements the right strategies required for this purpose (Ahn et al. 2019). This assignment
prepares a business plan that may be followed for launching a coffee business – Café Marco in
Ho Chi Minh City in Vietnam. The business plan outlines the marketing strategies that will be
deployed including market positioning techniques, the target audience for the new business,
financial feasibility, operational plan and an action plan that will be put in place to ensure that
the business takes off in the new location in the desired manner.
1. Marketing Strategies for Café Marco using the 8 P’s
Product – The product that is going to be marketed as part of the launch of the business Café
Marco are new and exciting forms of coffee that includes different varieties of Southeast Asian
coffee derived from the beans that are grown in the coffee plantations in Vietnam and in

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Indonesia in addition to coffee from Brazil and coffee from the East African countries such as
Kenya. In addition to piping hot coffee, the business will also serve cold coffee with ice cream
and a number of delicious savories in the form of buns, sandwiches, coleslaws, burgers, pastries
and tarts that will be sure to cater to the taste buds of customers of every age.
Place – The place where the new café is going to be launched is in Ho Chi Minh City in
Vietnam. This is a city that is home to quite a large and diverse population and the coffee
business is sure to be able to locate its target audience when it sets up operations in a place as
cosmopolitan and as metropolitan as Ho Chi Minh City. Based on its initial success in Ho-Chi
Minh City, the management of Café Marco will later take a decision as to whether or not it
should expand operations to another city in the country (Hong 2016).
Price – In order to ensure that the new coffee and related products that are sold as part of the
Café Marco enterprise are a huge hit among the target audience, every effort will be made by the
business owners to keep the price of the new coffee as competitive and as reasonable as possible.
To begin with, a cup of coffee, be it Brazilian coffee or Indonesian coffee will not cost more than
$ 5. On the basis of how good the sales figures are in the initial stages of operation, a decision
will be taken by the management as to whether the price of the coffee should be increased or
kept as it is (Grogan 2018).
Promotion – Promotion for the new coffee enterprise in Vietnam, Café Marco is something that
is going to be carried out extensively via the use of social media. Social media platforms such as
Facebook, Twitter and Instagram will be used for creating awareness and popularity of the new
enterprise. Social media is widely used by people of every age group and by engaging in the
active use of social media for the promotion of Café Owner, the business owners will be certain
to reach out to several coffee lovers among the wide sections of the Vietnamese population in a

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
very limited period of time. Additionally, leaflets and pamphlets that contain details about the
new business and the products on offer will be circulated at shopping malls and departmental
stores in Ho Chi Minh City (Grogan 2018).
People – The target audience for the new business Café Marco will comprise of people who are
in the age group of eighteen to sixty years. People who belong to this age group are known to
drink a lot of coffee in order to be able to study better or work better. People who belong to this
age group also have the income that is needed in order to be able to afford a coffee drink, and as
such has the purchasing power or capacity needed to buy the coffee that will be offered on sale
by Café Marco (Lee et al. 2019).
Process – The process that is going to be followed for the adequate marketing of Café Marco
and its products is going to be a relatively streamlined one. A website will be developed for the
new business and promotional strategies shall be conducted online and in stores and shopping
malls so that people are well aware of the new enterprise that is about to be launched in Ho Chi
Minh City and why they should endorse it. Every care will be taken on the part of the business
owners to package the coffee and savories in an aesthetically pleasing and environment friendly
so that customers take pleasure in consuming what Café Marco has to offer (Ahn et al. 2019).
Positioning – In order to make the new business stand out in the market, Café Marco will ensure
that the takeaway bags and containers that are provided for customers who order coffee and
savories on the go, are made of recycled paper, and as such as conducive for environmental
wellbeing. Café Marco will also be the first of its kind by being the only coffee shop in Ho Chi
Minh City that plays rock music and western classical music alternatively, for the entertainment
of its guests (Hong 2016).

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Physical Evidence – A logo will be developed for the new business Café Marco, will be
imprinted on the tables that are used at the venue where the coffee shop runs its operations and
which will also be printed on the bags and the containers that are used by customers who order
coffee and savories on the go. The logo will serve as evidence of the fact that the food is being
consumed at or has been brought from Café Marco and not from any other coffee shop or bistro
in Ho Chi Minh City (Fforde 2019).
2. Financial Feasibility
Assumptions
It can be seen from the given table that the follow assumptions regarding the business
will be required to be made:
1. Year-one revenue expectancy
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Number of units sold annually 20,000 25,000 15,000 20,000
Average sales price per unit $50.00 $75.00 $100.00 $80.00
Annual revenue per product $1,000,000 $1,875,000 $1,500,000 $1,600,000
Total year 1 revenue $5,975,000
2. Year 1 cost of goods sold
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Expected gross margin per product 10.00% 20.00% 30.00% 40.00%
Annual cost of goods sold per product $100,000 $375,000 $450,000 $640,000
Total year 1 cost of goods sold $1,565,000
3. Annual maintenance, repair, and
overhaul
Factor (%) on capital
equipment 19%
4. Number of years for straight-line
depreciation 5
5. Annual tax rate 30%