INTERNATIONAL UNIVERSITY
STRATEGY FORMULATION AND
IMPLEMENTATION
MIDTERM REPORT
FORMULATE THE STRATEGY FOR YOUR OWN BUSINESS
Lecturer:
Nguyn Kim Thn
Group Members
PHAN NH THNG
BAIU08032
TRN QUANG NGN
BAIU08057
PHM TH HUYN TRM
L TH O
V C DUY
BAIU08045
BI PHNG MAI
BAIU08074
BAUN08001
BAUN08023
STRATEGY FORMULATION AND IMPLEMENTATION
TABLE OF CONTENTS
MIDTERM REPORT..............................................................................................................1
TABLE OF CONTENTS.........................................................................................................2
I.COMPANY VISION, MISSION AND OBJECTIVE........................................................3
1.Vision..................................................................................................................................3
2.Mission................................................................................................................................3
3.The Objective......................................................................................................................3
III.SWOT ANALYSIS.............................................................................................................5
1.The Strengths:.....................................................................................................................5
2.The Weaknesses:.................................................................................................................6
3.The Opportunities:...............................................................................................................6
4.The Threats:.........................................................................................................................6
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
I. COMPANY
OBJECTIVE
VISION,
MISSION
AND
1.Vision
Try to enhance and delight the Vietnamese customer with a
beautiful and ancient French Wine culture to step by step
improve their lifestyle.
2.Mission
We try to establish the most trustworthy and professional
French wine based-business in the competitive market of
alcohol drinks.
3.The Objective
Desire to establish 5 main business offices with wine service
along like Bar and French restaurant in crowded location such
as Le Loi street on district 1, district 3 and new towns Phu My
Hung or Nam Sai Gon.
II. BRIEF ANALYSIS OF THE INDUSTRY AND
COMPETIVE
1.Wine industry and external environment
Some experts judge that In a country synonymous with
downing cheap, freshly brewed beer and shots of homemade
rice alcohol those involved in the wine import industry in
Vietnam are collectively waiting for the local market to make
the shift from a beer, whisky and brandy-orientated society to
one appreciative of quality wines at reasonable prices. The
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
recent economic downturn which has led to uncertainty in the
market, however, may lengthen the wait even further
In reality the wine industry in Viet Nam is not really active
and attractive in the past, because some negative factors like
conservative
thought
for
the
trends
of
purchasing,
the
traditional conflict in tastesHowever, everything is changing
dramatically. Clearly, Vietnamese now are more open-minded
and really open to accept new culture. The improving and
active economy helps them have more power of purchasing as
well as the diversified choices.
Others incentives can be mentioned are that the open policy
of government for foreign import, as the same time we also join
the WTO which causes much dramatic transformation in our
economic system like the reducing tax or more shortcut for
unnecessary certificated papers. These changes push the wine
maker to become more active than ever. In fact, these days
there are many strong flows of foreign wines import to Viet
Nam to serve the local Vietnamese as well as the foreign who
lives, travels or works here. And the popular opening of new
restaurants or hotel can be a potential incentive for the wine
industry to improve.
2.Competitive Environment
To have a comprehensive framework of drink market, we can
divide it into 3 main criteria. Firstly, the beverage market
focuses on gasoline drinks for example Coca-cola, 7up, fruity
drinks, and the second one is the Alcohol market which
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
includes beer and wine in general. The last one is healthy drink
like Milk, Tea
Beverage and healthy drinks are really competitive to wine
market which is still new to customer and too young while the
others have such a long time operation in the market of drinks
Specifically, about wine market we also face with many
competitors from many points of views. First of all we must
mention about homemade rice alcohol so-called Ru or
Wine. Next it is about the Wine from New world
originating from Chile, Argentina or Australia beside the Wine
from Old World deriving from Spain, ItaliaAnd the last
important competitor is hard liquors like OX or whisky.
Some Well-known Wine businesses in Vietnam that we must
care about, are Bacchus Corner providing many kind of wine
from many region from New World to Old World, or The
Warehouse is the pre-eminent Wine Merchant in Vietnam,
offering
comprehensive
portfolio
of
the
worlds
most
renowned Wine Brands.
III.
SWOT ANALYSIS
1.The Strengths:
+ We create an absolute advantage for the company because
of the newly service. We mean that we just focus on a specific
kind of wine Fine French wine, just French and specialize in all
fields about French wine.
+ Our luckiness is that we have the relatives who now live in
France. They will help us much when we come to France to
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
research and choose the region where have the famous
Chteau and well-known grape vintages.
2.The Weaknesses:
+ Just focus on Fine French Wine leads to the limit in product
variation compared to other wine businesses in Viet Nam
+ The depreciating VND to Dollars, as you know these days
Dollar in black market has risen to more than 21000 VND per
one Dollar lead to the price increasing for all products
3.The Opportunities:
+ These days customer have trend to switch to use healthy
drink like French Wine which is proved that fermented grape
support well for human cardiovascular system, or Green tea is
good for your diet and body also.
+The GDP of Vietnam increasing dramatically year to year +
the rise of social generation high income + the open-minded
trends of the youth: love to try new experience.
4.The Threats:
+There are a quite many competitors
+Freak bottles, untrue bottles or error bottles from the black
markets and even in normal market.
+The condition for French Wines preservation is really difficult
and expensive. Then it is hard for customer to keep or maintain
their favorite wine with the right technique.
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
IV.
PROPOSED STRATEGY
1.Type of Company
For the first clear view, I want to clarify that our company will
be the joint stock company at the beginning with the capital
investment by members in our family and our close friend who
also get interested in French Wine. Later for the further
extension we will attract more capital from other investors who
consider the potential of our Wine based business
2.Culture of Company
We come together to establish the company with the same
enthusiastic interest in French wine. And what we aim is all
about French wine.
Some information about French Wine
French Wine is the most ancient wine type with the exclusive
formula of fermenting grape. Each specific brand Chteau of
bottle are produced in specific region with the right type grape
in suitable vintage. And French wine producer in each region
just produce when they are ordered and make with the specific
limit. If they sell this kind of bottle to a buyer, the buyer will be
the only one who possesses this kind of bottle.The condition for
French Wines preservation is really difficult and expensive.
3.
Market segmentation:
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
+New rising generation with stable/high income due to the
increasing in VN GDP business peoples
+The youth who are ready to accept new culture, are potential
users.
+Foreigners who travel/work/live in Vietnam
+Fans: who love and have inspiration in French wine
+People who follow the trends of healthy drinks
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
V.
THE DETAIL STRATEGY
After the part of SWOT analysis and brief view of wine industry,
we now step by step build the strategy for our business
For customer service
1.Extend French wine into many various types
and chteau
Our objective for 5 year later is trying as much as possible to
diversify our Fine French wines brand inventory by contract
directly many famous Wine region like From beautiful Alsace
with a white-wine region, though some red, ros, sparkling and
also sweet wines, step by step to passionate Bordeaux - a large
region on the Atlantic coast, which has a long history of
exporting its wines overseas, with many wonderful Chteau like
Chteau Lafite-Rothschild, Chteau Latour, Chteau MoutonRothschild, Chteau Margaux and Chteau Haut-Brion from the
Mdoc sub-region; Chteau Cheval Blanc and Chteau Ausone
in Saint-milion, and continue with ancient Burgundy or
Bourgogne in eastern France is a region where red and white
wines are equally important, the flying to cheerful Champagne,
situated in eastern France, close to Belgium and Luxembourg,
be the coldest of France's major wine regions and home to its
major sparkling wineand so far.
FINE FRENCH WINE COMPANY
STRATEGY FORMULATION AND IMPLEMENTATION
Relying on the our own strengthen that we have the reliable
contract in France due to the help of our relative choose
wines
rightly
and
variously
with
the
competitive
price
compared to if we make a deal with the consultant company for
collecting wine and research.
As the result we can reduce the weakness about the
expensive import price and waste cost of choosing bottle
Moreover, we are not afraid of freak bottles or out of date
bottle,
because
we
directly
choose
and
research,
then
customer can trust us whenever need a Fine French Wine
bottle.
Extra and intangible value gain: By going directly to choose
each bottle in each regions know more about the French
Wine culture and more understand our product having such
inspiration and real experience to share with employees as well
as customers
2.Wine preservation and delivery
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STRATEGY FORMULATION AND IMPLEMENTATION
As we mention before, one of the most threats for French wine
is the condition for preservation. However with our professional
services we can serve this problem.
For every time consumers purchase, we are willing to preserve
wine for customers and when they need, just make a call then
we will delivery in time for their uses. If they do not finish the
whole bottle, we are still willing to continue preserve the wine
for the customer and still delivery whenever they call next.
Expected outcome: reducing the threats about preservation
+ build up the trustworthy and professional images in
customers mind
3.Wine education and sharing
FINE FRENCH WINE COMPANY
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STRATEGY FORMULATION AND IMPLEMENTATION
This is a kind of extra valuable service after purchase that we
want to introduce to the customer. As you know our business
has to face with many competitors not only in the share market
categories but also in the same market line. So how to delivery
and show to customer what makes our French wine the best?
The answer is education and sharing. If customers do not
know we should to inform them to know.
By providing this service we can teach our valuable clients how
much benefit can French wine bottles bring to you like
supporting well for human cardiovascular system (just as we
state in the part of the opportunities), providing and sharing
any scientific proves, articles, information about French Wine
as well as take advantage from the recent customers trend of
switching to healthy life. In the process of education and
sharing we can improve the customers perception about
French wine what is it, how is it and why it is goodAs the
result the customer will remember our business with the sense
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STRATEGY FORMULATION AND IMPLEMENTATION
of friendship, professional, we not only just sell French Wine,
we also sell knowledge and the friendship sharing between us
and customers. We call it intangible product that we provide
along with French wine
4.For relationship
Our goals are to reducing threats and weakness as much as
possible
to
smooth
the
business
operation
by
making
relationship to get more power, creating B2B relationship to
push sale to make good returns for financial reports.
Bank Relationships try to make good contract with
banking companies to have good relationships when setting
monetary
exchange
rate
stable
exchange
rate
depreciation does not cause much effect on our product prices
Business contracts try to get relationship with big and
potential Hotels (new world, Legend) Bar/club (lust, buffalo)
to places sub-wine store here to introduce our product
indirectly establish more our appearance in the central places
(big hotel and Bars have a good location)
FINE FRENCH WINE COMPANY
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STRATEGY FORMULATION AND IMPLEMENTATION
5.For extending products
We extend our business into more largely but still just
specialized in French Wine
French Wine Accessories: we establish new French products
about wine glasses, corkscrews, and wine racksand others for
storing or serving of wine, decorate the wine bottles as the
result, we can operate the business with diversified products
but still keep the culture which is just specialized in French
wine indirectly support/improve the value of wine bottle
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STRATEGY FORMULATION AND IMPLEMENTATION
Brief review chart the effects of our strategy
6.For customer service
Enhance and delight
Establish images of customer lifestyle
trustworthy and
professional
Attract
customer for
the second
purchase
Intangible
extra
value
along with
wine
product:
the
sharing
interests
Effectively using
the strength
about reliable
relationship in
France
Custom
er
services
Improve the
customers
perspective about
French Wine
Unique and
differential from
other
competitors
Directly
reducing the
threat about
wine
preservation
techniques
7.For relationship plan
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STRATEGY FORMULATION AND IMPLEMENTATION
Enhance and delight
Establish images of customer lifestyle
trustworthy and
professional
Effectively
marketing our
business
Relationship
plan with
bank and
hotel/bar
Indirectly
support
the
mission for
appearing
in central
district
and new
towns
Reaching the main
target
segmentation:
high income
people
Push the sales
Directly
prevent the
attack of bad,
freak, out of
date Wine
Bottles
8.For extending product plans
Enhance and delight
Establish images of customer lifestyle
trustworthy and
professional
Effectively
increasing the
variation of
product while still
keeping the
culture which is
just specialized
in French Wine
Extending
the product
plan beside
wine
Indirectly
support
the
mission for
appearing
in central
district
and new
towns
Reducing the
weakness about
just focusing on
single kind of
product
Push the
sales/profits
Directly
support/
enhance the
value of wine
products
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