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THE INTERNATIONAL UNIVERSITY

VNU-HCM

SCHOOL OF BUSINESS

ENTREPRENEUSHIP FOR SMALL & MEDIUM ENTERPRISES

GROUP REPORT

Group members:

Student Number Surname Given Name

1. BABAIU11017 Phạm Thị Thu Hương

2. BABAIU11023 Đặng Đỗ Châu Giang

3. BABAIU11026 Ngô Võ Gia Linh

4. BABAIU11289 Thái Hoàng Quốc

5. BABAIU11035 Phan Minh Mẫn

6. BABAIU11299 Hồ Thị Thanh Hà

Student Name Responsibility in Assignment Participation % *

1. Phạm Thị Thu Hương Be leader, contributing business idea

100%

2. Đặng Đỗ Châu Giang Contributing business idea

100%

3. Ngô Võ Gia Linh Doing survey, finding competitive advantage

100%

4. Thái Hoàng Quốc Finding risks and recommendation

100%

5. Phan Minh Mẫn Market researching

100%

6. Hồ Thị Thanh Hà Finding current and potential competitors

100%

Signatures:

(1) ___________________________ (4) ________________________

(2) ___________________________ (5)_________________________

(3) ___________________________ (6) ________________________

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The Content ----------------

Foreword ………………………………………………………………………… 3

1. Introduction ……………………………………………………………... 4 1.1 Product ……………………………………………………………….. 4 1.2 Unique Features …………………………………………………….. 5 1.3 Value Proposition …………………………………………………… 5

2. Market segmentation and positioning ……………………………... 6

2.1 Research Methodology …………………………………………….. 6 2.2 Research Finding …………………………………………………… 6 2.3 Target Customers ……………………………………………………7 2.4 Industry’s future growth …………………………………………….. 8

3. Competition ……………………………………………………………... 8

3.1 Current and Potential Competitor …………………………………. 9 3.2 Competitive advantage …………………………………………….. 11 3.3 SWOT analysis ……………………………………………………… 12

4. Risk ……………………………………………………………………….. 12

4.1 Competitor risk ………………………………………………………. 12 4.2 Financial risk ………………………………………………………… 13 4.3 Legal risk …………………………………………………………….. 13 4.4 Customer risk ………………………………………………………... 13

5. Business Model Canvas ……………………………………………... 14

References …………………………………………………………………….. 15

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Foreword Business Plan creates the greatest value for people as it sketches out a picture which evaluates all aspects of the business including a description and analysis of future prospects of the new business. Business planning is an important step that any cautious entrepreneur should proceed thought the scale of the business is large, medium or small. Understanding clearly the structures as well as the patterns of business plan, entrepreneurs can start-up their own business successfully as a result. During the Entrepreneurship for Small and Medium enterprises course, we essentially be forced to run our new business on paper before we get in over the head, which is based on the knowledge and theories of starting and managing a successful new business venture, and the experiences in how to gain the competitive advantage. Therefore, the purpose of a venture assessment report is to explain in writing what our group business idea is, show everything we need to know about our business, why it is needed in the marketplace and how it will succeed in the industry. The report will clearly describe our business idea that would be implicated to our new venture through several information about the industry, the competition as well as the market research. More specifically, the report will cover six main parts related to six aspects we should determine before building the business plan. Firstly, we would like to introduce our product and its unique features. Secondly, we will focus on the market segmentation and positioning, which illustrates our target customer and the industry. After that, our competition, competitive advantage and some risk which we have to face when building up own business will be mentioned in succession.

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1. Introduction 1.1 Product

We are going to develop a business idea by staring up a plan on printed T-shirts. In Vietnam market, T-shirt is one of the products that is always in fashion and famous in the world. Everybody likes to wear it from children to teenagers, from adults to senior citizens. In many researches recently, people usually consider T-shirt is the best choices when choosing clothes because it is very simple, convenient, comfortable and very trendy. In addition, printed T-shirt is becoming a popular trend amongst all age and groups such as companies, politicians, schools, event organizations or even individuals as it helps them to lay bare the image, spread the meaning. Moreover, printing is a work of creativity so it can be very interesting. In the world of creativity, there is no idea limitation that the producers can make on the T-shirt from different color and different design, we can make unique T-shirts for the customers. Furthermore, thanks to the development of technology especially the Internet give us the best chance to reach the customers easily so that I believe that the business idea of selling printed T-shirt is an easy plan and help us generate more profit and we are able to control it in our hands in the future. In our product categories, we divided into two main forms that are:

1. The T-shirts that are designed by our store 2. The T-shirts that are designed depend on customers’ demand

Through two channels which is traditional store (offline stores) and online store, we believe that we can deliver the products to our customers efficiently.

At the first time, we believe that setting our offline store in Thu Duc district, especially in Vietnam Nation University’s village will give us some advantages. Firstly, basing on research our competitors, they have store branches around Ho Chi Minh City, Southern provinces, except Thu Duc district. Secondly, that location provides us the huge potential customers who are students, school clubs and organizations. It will be convenient for them to choose and order the suitable shirts.

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1.2 Unique features

Compare to our competitors outside, we set some unique features which makes our printed T-shirts different from them. We are applying high technology to the process by using printer sublimation technology on printing. This makes slogans or patterns on our printed T-shirts keep high quality and high resolution with durability of 1000 washed times. People who come with us will have more choices on the design compare to our competitors which have just limited and fixed designs. The customers may choose ideas from our extensive library with existing images. Moreover, with the key word “Your idea, our design”, we support our customers freely to share their idea and we will help them print image on shirt on request. We provide customers not only high quality but also reasonable prices and preferential treatment. For example, customers in Ho Chi Minh City will give free shipping or customer can have discount on special occasions, and through some strategies such as “The more, the merrier”.

1.3 Value proposition

Our mission is bringing the value to the customers which is include four main points: customization, cost reduction, risk reduction, and convenience. The first one is customization. Based on group, age, characteristics as well as hobbies and customers’ ideas, our unique designs can meet and fulfill the customers’ needs and help them show their personality .Second value is the cost reduction. It is challenge when we set low price to find profit; however, by buying basic T-shirt with a large amount from wholesale traders, we became patron and receive a huge discount on T-shirts we buy. That’s reasons why we can control the cost and set the reasonable price for majority of orders from groups or organizations. The last but not least, we will bring the convenience and risk reduction to our customer through some ways. Customers can directly go to our store to see the printed T-shirts and also can go online and order model through the Internet, which will save customers’ time, transportation cost. In addition, we will try to ship the products on time with the best quality and correct printed patterns which means reduce the risks for customers as much as possible. In order to bring the best value to customers, we also attach special importance to key activities such as designing ideas, investing on high quality printer, inks and technology. Moreover, to transfer and adapt to these key activities, the key resources are playing an important role. In this part, our key resources include designers who have high enthusiasm and creative mind in the modern bias rather than hiring professional designer,

S.O.S

Let Show Our Styles Now

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Age

14-18 18-25 over 25

5%20%

75%

shipping agency, printer, computer and employee who have ability to understand what customer’s needs.

2. Market segmentation and positioning

2.1 Research Methodology To determine our target customer, we focus on two main sources of data for that research. The first one is using questionnaires. In our questionnaires, there are 15 multiple questions and 1 paragraph question that focus on customer thinking about their daily clothes, their fashion bias, ability to pay for clothes … Thanks to combine our 20 directed surveys and 110 online surveys, we have a large sample with 130 questionnaires. We use that method because it is easy for us to collect data, making statistics, save money and save time. The secondary source is Internet. About the date collection, we try to send surveys to people who are from 14 to 25 years old. The areas where we find data are University village in Thu Duc district, supermarkets, and parks in Ho Chi Minh City.

2.2 Research Findings Vietnam is a country with a young population with a population of 90 million people, the population growth rate and a potential fast. Through preliminary survey, the average age of Vietnam's population is very young. Therefore, the market is very young and has a lot of potential growth opportunities. The youth that we study here is the young people aged 14 to 25.

Young people are the objects with low income, owns little money because they are mostly beginner school or work. Greatest psychological characteristics of young people that want to express themselves and assert their position. Not only in Vietnam but also in Asia today, the outfit will express

Gender

female male

47% 53%

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Make Your Owned Design

Yes No

20%

80%

their style so much. So the fashion garments will be things that young people towards to express their style. Basing on our survey, about 80% people want to make their owned design on their clothes, especially their really love wearing the shirts which from group and organization orders .For example, the young express their admiration to their idol, so they come together to establish a fan club. After that, they will go to buy their own T-shirts with show solidarity and collective power "personal stamp", help their group that is not mix in any other group. Therefore, our company sell large volume with the lower price, it means that our profit is grown by the volume growth.

2.3 Target Customers

Our target customers are individuals, couples who from 15 to 25 ages. In addition, we focus on sell our products to groups and organizations, especially Social Organizations which provide us a numerous of customers.

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2.4 Industry’s future growth Our future business belong to fashion industry. With rapidly increasing economic, people become richer so that they have high demand about art, aesthetic so that the business has large potential customers. Furthermore, the young are easily affected by Vietnam’s famous singer, actors or Korea’s singers. Therefore, the most famous fashion trend invite the famous people to contribute to develop their trend. The advertising plays an important role in transmitting information to the customers so that they catch the hottest new and find out which trend is suitable and modern. For example, celebrating fashion show room which is luxury, beauty like "Show window" (decorated storefront windows) lead customers to recognize and pay attention that is one ways to attract the customers. Vietnam has many advantages for the fashion industry to thrive, which is the development of the textile industry, a team of talented designers and the explosion of rural communication, the domestic market is not yet large enterprises invested properly. Campaign influx of foreign brands to create market risk of losing at home( foreign fashion taste presence in Vietnam, accounting for over 60% of market, domestic brands accounted for approximately 40% of the remaining market). Basing on developing of economic in Vietnam, employment’s rate will decline so that the young will spend more money in shopping.

Source: vnexpress According to increasing the income of fashion industrial, fashion industry’s revenue more than 10000 billion VND at the end of year 2013 and predicted to increase until 15000 billion VND at the end of 2015.

3. Competition 5.1 Current and Potential Competitor

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Current competitors

In the modern life, fashion is changing faster and faster that leads more and more competitors in this industry. Here we would like to mention three competitors: Bamboo, Couple TX, and Lime Oranges.

Bamboo fashion, couple TX as well as Lime oranges are the famous brands and kept certain position in Viet Nam market. With than five years established, they become experienced and strong competitors in fashion. They do not stop improving not only natural materials, combining the creative, unique and youthful designs. Focusing the target customer from 18-25 and the lovers, group of friend, they always create the vivid color, funny images, modern styles. However, the price in each different company is compared more expensive. According to Five forces competition of Michael Porter, in rivalry among existing competitors and bargaining power of suppliers, each company also has available and suitable suppliers, however, Lime orange may be the strongest competitor. The first,

Competitive factors

BAMBOO COUPLE TX LIME ORANGE

Product design

the vivid color, funny images, youthful and unique styles

natural materials,combining the creative, unique and youthful designs

jeans, hoodie, especially art-toy T-shirt with a youthful modern and artistic styles

Location Joined into Viet Nam market since 2007

Joined into Viet Nam market since 2009

Joined into Viet Nam market since 2009

Target customer

the young, fashion lovers

teenager, especially couples

17-22 years old

Service

Provide products through traditional store, online

Provide products through traditional store, online

Provide products through traditional store, online

Price 225,000 – 500,000 160,000 – 300,000 150,000 – 400,000

Advertising and promotional policies

Discount Fan pages

Discount Website, Facebook

Discount Website, Facebook

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almost products are designed follow art-toy in Korea that the trend is attracted the most teenagers. The second, it can be seen clearly that Lime Orange has established manufactory T-shirt with 3500 some area in 2010, in Ho chi Minh city that may be an advantage in supplying. However, in bargaining power of buyers, it is concerned carefully through promote programs, member cards or keeping contacts customers by all company and to against the threats of substitute products or services, they always try to create the new products such as hoodie, jean, cap and keep with the latest trends. Standing by threats of new entrants, to prevent stealing creativity, couple TX is trademarked by the National Office of Intellectual Property of Vietnam.

First glancing, Lime orange is attracted more than 70,000 people liked. Following five forces, besides t-shirts, it also provides new trend such as hoodie with promote programs. While couple TX and Bamboo are improving quality and catching customers day by day.

Potential competitors

Besides the current competitors, there are also some potential competitors. Although they are a small shop without brand as well as modern technology, they still attract a number of customer such as dongphuc4u, or dongphucbonmua. In general, target customer is students from 12-18 years old, combining funny, colorful images. Depending on

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psychology of the teenagers, they just focus on the low price with big quantity without the quality of materials. Now, they just have only one store in Ho Chi Minh City, but they still famous in term of selling uniform like printed shirt to many clubs, organizations. In generally, the level of competition in this industry is high and difficult, the product in industry is quite the same and easy to copy. It is not only meeting the needs of increasingly diversity choice, high quality and suitable price, but also company has to confirmed reputation and belief on trade to customer.

3.2 Competitive advantage

Competitive advantage is what distinguishes us from the competition in the minds of your customers, therefore, we need to have a clear competitive advantage and communicate it to our customers. The first one is the unique design from customer. We will offer our customer a modern software which help them easily to express their idea accurately. These exclusive designs by the client to express ideas to style itself is an important point that our company towards. Therefore, a website supporting self-help customers design their own t-shirt printing. Moreover, we also suggest some designs suitable for today's youth style (funny, slogan). Customer designs from which samples can be sent directly to the company website to order. This saves travel costs of employees and customers as well.

Secondly, we will set the competitive price which can be lower than the competitors but still keep the high quality. We focus on our strategy which is “the more you order, the

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cheaper price you get.” That is a little bit difficult to set the exact price for each customer but it is different from our competitor who never decline their price.

3.3 SWOT analysis

STRENGTHS

Diversity of patterns

On time and direct delivery strictly

Low price - fulfill the customer’s demand

Young and creative designers

WEAKNESSES

Majority of unskilled labors

No brand name / reputation

Erratic fluctuations in prices from shirt suppliers

Investing in technology and machine

OPPORTUNITIES

Potential market with young people and organizations (numerous of customers)

Fashion trending aims to express personal style

Groups or teams activities become more popular in Vietnam

THREATS

Markets are overly saturated with the same products and services can be detrimental to a new business

The models can be copied

Quality of printing, the pattern doesn’t fit in customer’s order

4. Risks

Entrepreneurs face many challenges when starting a new business. A depressed economy, uncertain market conditions and financial struggles all pose a legitimate threat to the successful launch of a new company. Business owners must be able to determine the types of risks that are most likely to affect their new venture and proactively create risk management strategies that will enable the company to succeed despite having those risks. Our business can face many risks when running business such as: competitor risk, financial risk, legal risk and customer risk.

4.1 Competitor risk First of all, our business can meet Competitor risk: The first and most obvious risk is the risk of failure. Our product may not be different enough from other products on the market (or competitor) to make people want to purchase it. For example, our company just sale printing t-shirts, other company sale t-shirts, shoes, pain…). Our services may be priced incorrectly or not in high enough demand. There are famous fashionable shops such as: Lime Orange, Bamboo… also sale printing T-shirt. Our business is a new business. Hence, customers don’t have any idea about our brand name, our product’s quality, price … This is the biggest risk we’ll face when starting a new business. It’ll take a long time to compete with the other company. Current market conditions and trends pose a risk to new businesses. If industry trends are moving away from your product or service or if customers are have already locked up by competitors (customers used to buy printing T-

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shirt in the bigger store and the tradition brand name store), it will be difficult to gain customer momentum. The solution is that we can deal with these above risk by marketing online strategy, making market research to catch customer demand. We can also introduce our product to our relationships such as family, university, friends …. Lower price is one of the efficient compete factors when dealing with competitor. We need designer team to create new models of printing T-shirt, which can diversify our products. Hence, our specific products can approach customer demand easier.

4.2 Financial risk The next risk we will face when we open our business is financial risk: A lack of investment funds will causes huge damage to new businesses. New business owners often fail to plan financial projections or create working budgets. Sufficient capital is necessary to pay for the owner’s living expenses until the business turns a profit. Our businesses need inventory, equipment, office supplies and marketing materials to run effectively which costs a huge cash of our investment. Maybe our business can handle these costs when run business. Our business will suffer physical damage. Machine guarantee cost per period is high. If our machines were broken, we must spend money on fixing machine. Inventory cost when there aren’t enough orders. Agreement with the supplier is necessary. If the market demand is high, the supplier will gain the cost of source of supply. Hence, we’ll spend more investment on buying supply for our company. Investing in that first employee is often one of the biggest decisions any small business will take. We must set the financial commitment of a regular monthly wage to pay. Staff fraud and dishonesty can be an unfortunate consequence and again Hence, we must plan financial projections or create working budgets in a clearly way. It is necessary for us to determine if our product or service is strong enough to support the financial obligations of the business. Agreement with supplier must include the cost of source of supplier in long-term, which we can always control the price of our supply. We will also need to have procedures in place to prevent it from happening and deal with it. 4.3 Legal risk We will be challenged by Legal risk: A small business owner will want to face is legal proceedings. We could be sued for any number of reasons: failing in a duty of care to a client; A service or product we provide not performing as a client expects; A member of staff suffering an injury at work, delivery T-shirt to customer late … On the online website: What about that picture on your website? Do you have the relevant copyright? And where did you get the idea for your business? Someone could claim that you are infringing their intellectual property. To deal with this risk, we must focus on the quality of our service, our work environment of company, and the legal registers. As we mention before, we must have designer team to create all own models of T-shirt; and pictures, content on our website. We must focus on create good relationship with employees, customers.

4.4 Customer risk

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Selling product online can has some problem such as: customer has order the T-shirt but we deliver our products to wrong address; shipment services don’t deliver product on time to customer, our product can be clashed or broken down in delivery period. Customer has order the T-shirt, so we spend time and money on printing T-shirt as the order. Then, they don’t accept these products because of some reasons: quality of printing, quality of t-shirt, the picture doesn’t fit with their order… Finally, they don’t want to receive product. Hence, we must take back our failing product. This is external failure cost. Customer demand is not always enough for our company to running effectively. The solution for this problem is we must ask customer to give real address, contact information, phone number after they send their order. Then, we ask them to pay a deposit (about 50% of T-shirt price) before we print our T-shirt. The designer team must always give the new models in every period to increase customer demand.

5. Business Model Canvas In the end of our report, we use Business Model Canvas in order to make a create picture of our business idea in 9 components. It offers an interactive way to look at our current business model and improve your results. It is a way to keep moving forward with an iterative business plan. Customer Segment (CS) includes individuals, couples who from 15 to 25 ages and groups and organizations, especially Social Organizations which provide us a numerous of customers. Value Propositions (VP) includes customization, cost reduction, convenience, and risk reduction. Key activities (KA) are Design ideas, investing in printers, inks, update the fashion trending and technologies. Key resources (KR) includes human Resources such as designer, the shipping and machinery are printer, computer. Channels (CH) are Web sales, direct store, and shipping. Key partners (KP) are shirt suppliers, social organizations. Revenue streams (RS) is the number of selling printed T-shirts. Cost Structure (CS) includes Monthly fee for online website, renting store, inventory, and sale costs such as suppliers, shipping.

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References http://www.limeorange.vn/product/detail/lo45100-01-839.html http://www.coupletx.com/ http://www.doko.vn/luan-van/thuc-trang-kinh-doanh-cac-san-pham-may-mac-thoi-trang-124783 http://www.businessmodelgeneration.com/canvas http://bambofashion.com/sanpham.php