Southern Taiwan University of Science and TechnologyEntrepreneurship & Innovation, GMBA

Team CS:Emil MA1N0211Anja MA1N0206Lubica MA1N0212Michal MA1N0218

Table of Concept

Executive Summary

Company Description

Industry Analysis

Market Analysis

Marketing Plan

Management Team and Company Structure

Operations Plan

Product Design and

Development Plan

Financial Projections

1. Executive summary Dolce Natural is an

organic ice cream which is going to fill the market gap by a flavor-rich ice cream.

It is not just an average ice cream such as may be found in grocery stores. It is an a traditional dessert with a “taste of Italy” that a customer enjoys in a likeable environment of a small, family-style patisserie.

2. Company Description Company Dolce Natural is going to start

its business in Tainan, Taiwan Location is planned to be in the area of

university campuses (This ensures a high number of flows of people walking around every day.)

The company targets not only but mostly young consumers as these usually like sweets but are already educated enough to be aware of the importance of a right “BIO decision” when buying food

2. 1 Company History Dolce BIO Ice Cream is a new venture Does not have a real market experience

in ice cream industry in Taiwan BUT: Certainly does have a potential to expand

because of it advantages in: Detailed product and marketing strategy Uniqueness in the market Creative, young, highly educated

managers’ team

2.2 Mission Statement To always make customers smile

By serving the finest they’ve ever triedKeeping customers happy and satisfiedin environment organically designed1% Dolce BIO 4 Trees

2.3 Products and services

2.3 Products and Services 1/2 Dolce Natural Ice Cream will sell creamy,

flavor – rich and all-natural ice cream to every kind of customer with special focus on young people

The ice cream will be sold through small-size attractively looking dessert restaurants

In the front side of the restaurant will be a couple of tables and chairs surrounded by the ‘green environment’ of the restaurants made by fruit trees and plants growing in big flowerpots

2.3 Products and Services 1/2 The patisseries are also going

to offer a drink menu created by a home made, fruity, all-natural drinks (lemonade, milkshakes, coconut milk, water from coconuts, mineral water)

The patisseries are going to be launched by part-time workers - students who are interested in environmentally friendly business and marketing

2.4 Current status The company is currently in a status of

obtaining financial sources for it’s beginning stage

The business plan is feasible: various business analysis were executed

Industry AnalysisIndustry size:Large if we look at an ice cream as a sweet product or smaller if we look at it from perspective of an ice cream product. Growth rate of an industry is fast. There are enough customers to satisfy most firm’s production capacity.Industry is attractive as it is:

fragmented growing not crowded

Porter’s Five Forces Model - Threat of SubstitutesWe could say that all sweet end products can be a substitute for an ice cream if o person is thinking to purchase an ice cream to satisfy his/her desire for sweet product. If we think of an ice cream as a product desired as cold refreshment in a hot weather, substitutes could be other shops selling ice cream, popsicle, shaved ice, cold drink or tea. (Cold Stone, Ciao Bella Gelato, Haagen Dazs, 7 Eleven, Preso Tea, Coca Cola…)

Porter’s Five Forces Model - Threat of SubstitutesHowever, the venture will be producing premium quality ice cream product. There are currently few competitors. In general, threat of substitutes is high, but

can be less depending on a point of view.

Porter’s Five Forces Model - Threat of new entrants Barriers to entry are low. New competitors

can easily enter the industry to copy what the industry incumbents are doing. There are low capital requirements; there are not substantial economies of scale, there are no government and legal barriers. Knowhow and recipe for preparing an ice cream is not a large barrier due to information technology.

Threat of new entrants is high.

Porter’s Five Forces Model - Rivalry among existing firms There is a moderate rivalry in the industry.

Differentiation of a product: Ice cream from 7 eleven is cheap and easy to prepare but has lower quality and only one taste. On other hand, our product will be more expensive, focusing on quality ingredients and therefore top quality product with many flavours, but also more time consuming to prepare.

Rivalry among existing firms is moderate.

Porter’s Five Forces Model - Bargaining Power of Suppliers The venture will need suppliers from various

local and organically grown sources. (fruit, milk) bargaining power of supplier is moderate. There are enough suppliers to provide a critical product to the venture as well as to a large number of other buyers.

The profitability of the venture will therefore not be suppressed by bargaining power of suppliers.

Porter’s Five Forces Model - Bargaining Power of Buyers Bargaining Power of Buyers is low from a

perspective of a venture as a buyer as well as venture’s customers as buyers. In addition, there are only few locations in the city where a customer can purchase premium quality handmade ice cream.

Key Success Factors Location Competitive price Freshness Organic ingredients Advertisement Promotions

Industry trendsCurrently there is a trend in establishing ventures selling sweet food products in Tainan, especially ice-cream shops. Our proposed products will be made entirely using organic ingredients as a part of our competitive advantage. There is a growing trend adopted from western countries to produce and consume food product made of organic, non-chemical ingredients (no pesticides, no GMO production, no additives o colorants and no preservatives). Ingredients sourced from local production, produced from sustainable resources by a labour that is treated fairly. In addition the product will be low in fat and sugar.

Market AnalysisBuyer behaviour analysis:There are customers willing to purchase premium products like sweet products, need refreshment in hot days, like products with taste of Europe, like foreign management and service

Competitor analysis Our research revealed there are several ice

cream shops in Tainan city. Our main competitors regarding to quality of ice cream would include only 4 shops. Here we do not include ice cream from machine and shaved ice as the quality is lower.

Competitor analysisDirect Competition: There is already few handmade ice cream shops created in the city. Because they have shops only in few locations in Tainan city, there is plenty of place and customers for the proposed venture. In addition there was large growth of machine made ice creams available from convenient stores however; our venture is focusing on high quality, organic handmade ice cream therefore machine made and shaved ice is comparatively lower grade ice product. There is not a clear market leader. Competitors in an industry are about the same size.

Market segmentation and target market selection Geography location: First shop will be located in Tainan city as this is the area that a venture team knows very well. Location will be carefully chosen in an area of high number of potential customers. Preferably located close to large school or other location with a lot of pedestrians and location that is easily accessible. Demographics: Our target market include: both genders, all age categories (preferably 8-40), people with average income. Our target market are customers willing to pay a premium for an organic handmade ice cream.

5. Marketing plan

Strengths• Bio organic ice cream and

juices• Healthy products with rich flavor• Unmatured market• Product of Italy• Inexpensive price• Good location

Weakness• Not recognized brand• Target market is a population with lower income

• Higher fixed cost• Complex staff training• Other competitors in the area

Opportunitiess• Lower price then competitor’s• Matured market of key

ingredients• Warm weather for almost

whole year, wide range of flavors

Threats• Potential difficulties to find perfect

location• Seasonality-cold weather for 2 months• Lower market demand during the

vacations• Seasonality of ingredients• Challenge to produce inexpensive ice

cream with expensive ingredients

SWOT

5. Marketing plan - 4P, Target Market

Price• 40 to 100 NTD

per one full scoop of a luscious ice cream, juices from 40-50 NTD

Place• Near University

Campus of STUT and Cheng Kung

Product• Ice cream which

contains fresh organic fruit and pieces of a quality chocolate or nuts, fresh fruit juice

Promotion• University

Campus, Facebook, Twitter, Flyers

Target customers are students and people who live around the universities (children and scholars who will stimulate their parents to taste our product)

Social Media (Facebook, Twitter) Collect Email Addresses to introduce offer Membership cards with loyalty program and

special offer for members Flyers Launch a Blog (eventually)

5. Marketing plan Acquire New Visitors (Cheap & Easy)

Dolce Natural Ice Cream tends to create positive boom in the market with it’s presence

Appearance of the shop would be different then our competitor's to attract the costumers and to make them to recognize our brand as different and unique

Each Sweet shop will have big colorful advertisement with the same colors as the menu, staff shirts and the ice-creams, in front of the stores will be big plastic ice-cream to attract customers to take a picture with it

Each Sweet shop will contain sofas and comfortable big colorful pillow seats and a small ‘living room style’ table. All interior parts will be made from organic materials to contribute to the ‘green’ and natural atmosphere of the Dolce Natural.

5. Marketing plan Overall marketing strategy

6. Management Team and Company Structure

Lubica Belhadjova – president and founder of the company

Michal Kriziak- Staff, Production, Distribution, Logistics,

Emil Mazan- Customer relationship management, Sales and Marketing

Anja Išek – Finance, HR, Interior designer

Management Team and Company Structure

Anja Išek• 4 years of experience in finance by working for

successful entrepreneurs and for the international telecommunication company T- mobile Croatia

• Familiar with the Taiwanese financial laws and regulations

• MBA degree, Bachelor in Business Economy in Finance

• Familiarity with finance from her little age (parents own a bookkeeping firm)

• Familiar with the latest trends in interior design industry

Management Team and Company Structure

Emil Mazan:More then 7 years of experience in customer relationship management, direct marketing and telesales by working for T-mobile Croatia.Proven record of sales, team management and customer retentionFamiliar with ” Taiwanese way of thinking”Dedicated to improve service and customer satisfactionDedicated to increase sales and to create diverse model of marketing mixMBA degree, Master of Public Policy and management

Management Team and Company Structure

Lubica Belhadjova:

Cross-cultural roots as well as university education Special interest in business strategy, green marketing and environmental protectionBachelor in Business Economics and PoliticsMBA degree

Management Team and Company Structure

Michal Kriziak: He has a 5 years experience in a hospitality industry. His education background is in economics and applied geographic information systems. He is currently studying GMBA in Taiwan.

Management Team and Company Structure

Lubica Belhadjova – president and

founder of the firm

Michal Kriziak - Staff, Production,

Distribution, Logistics,

Emil Mazan - Customer

relationship management, Sales

and Marketing

Anja Išek – Finance, HR, Interior designer

Management Team and Company StructureAdvisers:

Owners of similar sweet shops in Croatia and Slovakia:- Have more then 2 decades of experience in the business- Run their business over generations with the family- Secret recipes and knowledge- Responsible for staff training and education- Advising the company with the selection of machines

Owners of Taiwanese sweet shops or ice-cream shops- More then 10 years in the business- Advise how to adopt the product itself- Advise which flavor we have to offer- Advise where and when to buy the ingredients

Operations PlanGeneral operations plan 1’st phase: LOCATION

- find acceptable location near the campus or the university

- it has to be area very many students are passing, eating or just spending their day

- we believe that summer vacation would be the best time to find location, when students are going home and some businesses are closing as well

- Facility has to have 50-70 m2 with the backroom of 30-40m2 for the production of the ice-cream and juices

- Preferably it has to have outdoor space for terrace and parking space for the scooters and bicycles

Operations PlanGeneral operations plan 2’st phase: SELECT ION AND PURCHASE OF A

MACHINERY

According to recopies of Italy sweet shop owners from Europe and advises for flavor variation of Taiwanese owner we have to define flavors of the products in order the set the menu- Our advisors form Europe will advise us which type of machines,

fridges and other equipment we have to buy and how to use them properly and efficient

- We would try to compare it with Taiwanese choice and selection of a machinery and try to notice and understand the differences

Operations PlanGeneral operations plan 3’st phase: S TA F F R E C R U I T I N G , E D U C AT I O N A N D

T R A I N I N G

As we would intensively search for the location, we would also search for the young, cool workers willing to learn and to earn an extra money They have be students Able to speak English Have to be different then the others Have some prior experience by working in tea shop or restaurant

They will be motivated by higher salaries and benefits of the work During their vacations they will be educated and trained how to make and

produce fine rich flavor and bio ingredient ice-cream Process is easy, the key are ingredients and recipe

Each member of management will be guided through training as well

Operations Plan

Interior would be designed with carefully selected furniture which has to be green, healthy preferably produced with recycled material

Special focus would be on the colors (staff shirts, menus, interior have to be the same color)

We would try to include some plants or herbs which is not possible to see in Taiwanese coffee, tea or ice-cream shops

Sweet shop has to have recognizable ”quote” logo statue in front to attract customers

To finalize the operations plan we would carefully fulfill every term, rule or regulation to get the permit to work and do business legally and ethically.

Product Design and Development Plan

• From the beginning of the school year our sweet shop has to produce positive shock on the market, has to be recognized as different and new, also it has force people to talk about us and to recognize our value added

• We expect that positive grow in the beginning would rise much more then just exceed break even point

• It would be important to exceed break even point during the winter, at the time of coldest weather in Taiwan

• At that time we are planning the change the products, introduce flavors of the winter fruit in Taiwan to retain the customers

Development status and tasks

Product Design and Development Plan

• During the spring, after 6 months, we would evaluate our offer and change the flavors if needed

• We would also evaluate business model, business itself and financials

• Still we hope that our idea as the business is feasible and that changes in the business would not be necessary

• Our primary objective and the goal is to establish brand name and recognition of local community to maintain our business above break even point during the summer, period when students are going home

Development status and tasks

Product Design and Development Plan

Challenges and risks• Introduce the products• Convince people that we are different• Establish the brand • Maintain business successfull during

the winter• Retain the customers• Achieve recognition of local comunity• Keep business model feasible

Financial Projections To finance the initial investment to support the business each

member of management team will invest equal sum of money

Owners' InvestmentLubica Blehadova $ 10.000 Michael Kriziak 10.000 Anja Išek 10.000 Emil Mazan 10.000 Total Investment $ 40.000

Sources of Capital

Capital Equipment ListFurniture $ 10.000 Equipment 7.500 Machinery 12.500 Other 1.000 Total Capital Equipment $ 31.000

Startup Expenses

Location and Admin Expenses

Rent & Related Costs $ 2.000

Prepaid insurance 500

Pre-opening salaries 2.000

Other -

Total Location and Admin Expenses $ 4.500

Opening Inventory

ice $ 100

fruits 1.000

chocolate and nuts 500

additional flavors 100

other 100

Total Inventory $ 1.800

Advertising and Promotional Expenses

Advertising $ -

Printing 50

Shop Add 200

Total Advertising/Promotional Expenses

$ 250 Other Expenses

Permits $ 2.000

Total Other Expenses $ 2.000

Working Capital $ 450

Financial Projections

Sources of CapitalOwners' and other investments $ 40.000 Bank loans - Other loans - Total Source of Funds $ 40.000

Startup ExpensesCapital equipment 31.000 Location/administration expenses 4.500 Opening inventory 1.800 Advertising/promotional expenses 250 Other expenses 2.000 Working capital 450 Total Startup Expenses $ 40.000

Summary Statement

Financial ProjectionsBreakeven Analysis

Cost Description Fixed Costs ($) Variable Costs (%)Variable CostsCost of Goods Sold $

7.000 20,0%

Inventory $ 1.000 3,0%

Raw Materials $ 1.000 3,0%

Direct Labor (Includes Payroll Taxes) $ 500 8,0%

Fixed CostsSalaries (includes payroll taxes) $

4.000 Supplies $

1.000 Repairs & maintenance $

100 Advertising $

50 Car, delivery and travel $

50 Accounting and legal $

50 Rent $

500 Telephone $

50 Utilities $

200 Insurance $

50 Depreciation $

80 Other (specify) $

10 Total Fixed Costs $ 15.640 Total Variable Costs   34%Breakeven Sales level = 23697

Projected INCOME STATEMENTRevenue: 378000 % of Revenue

Ice cream $258.000 68%Fresh Juices $120.000 32%

A Gross Revenue $378.000 100%

Cost of Goods Sold:Beginning Inventory $20.800

+Ingredients $60.000 16%+Containers $2.000 1%+Cones, Napkins, Spoons $1.200 0%-Less Ending Inventory ($500)

B Total Cost of Goods Sold   $83.500 22%C Gross Profit (A - B) $294.500 78%

Operating Expenses:Salaries/Wages $42.000Payroll Taxes $6.000Utilities (Electric, Heat, Hot Water, Water) $2.400Telephone $600Bookkeeping and Accounting Services $600Advertising $600Fuel $600Maintenance $600Office Supplies $150Liability Insurance $600Workers Compensation Insurance $600License from the State $2.000Depreciation $960   

D Total Operating Expenses   $57.710 15%

E Operating Income $236.790 63%

F Other Income / Expenses:Interest Expense $0

Net Income $236.790 63%

Thank you for your attention!