“THROUGH THE STORM”
THE BUSINESS STRATEGY OF
LEMON TEA SHOP
THINK DIFFERENT
DO EXCELLENT
[ LEMON TEA SHOP – THE BUSINESS STRATEGY]
LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
Table of Contents
1. INTRODUCTION ..................................................................................................................................... 3
1.1 Overview .......................................................................................................................................... 3
1.2 Mind map of business strategy........................................................................................................ 3
2. BUSINESS STRATEGY ............................................................................................................................. 4
2.1 Ansoff’s model of product development ......................................................................................... 4
2.2 Detailed business strategy ............................................................................................................... 4
2.2.1 Phase 1: “Peace in the eye of the storm” ................................................................................. 4
2.2.2 Phase 2: “Silent movement” ..................................................................................................... 5
2.2.3 Phase 3: “Storming” .................................................................................................................. 7
3. CONCLUSION ......................................................................................................................................... 9
VIETNAM YOUTH TO BUSINESS FORUM 2013
ONLINE COMPETITION
[ LEMON TEA SHOP – THE BUSINESS STRATEGY]
LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
1. INTRODUCTION
1.1 Overview
Start – up is always attractive to almost young and ambitious people who want to define themselves a
niche in market whereby become successful businessmen in foreseeable future. They often observe
customer needs and then catch that market signal for translating it into practice. In fact, present
young generation has a great flair for market trend, in particular “lemon tea – air blade” – emerging
phenomenon from the end of the year 2012, which is considered as worth start – up opportunity. I
also integrate into this trend through inaugurating a lemon tea shop with assured certified materials
bringing my successful passion together. However, bad publicity and rumors spreading widely about
hygiene of lemon tea force me to have to think strategically to get rigid of turn-around situation and
for vital competition.
1.2 Mind map of business strategy
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LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
2. BUSINESS STRATEGY
2.1 Ansoff’s model of product development
First of all, my current business is self – evaluated in terms of application of Ansoff’s model to
evaluation to indicate how to develop my products. The result shows that product development is
necessary to improve my current business situation as competitors are eating up shares of others in
context of severe competition.
2.2 Detailed business strategy We continue the business normally. At the same time, we will propose the new business plan which
will change our situation and restore customer belief.
2.2.1 Phase 1: “Peace in the eye of the storm”
There is increasingly trend that people refuse using lemon tea contained chemicals and uncertified
materials. This is appropriate point of time to support for this by using social networking to spread
more information about impact of these chemical comsumption on people health. Specifically, the
application of viral social network is illustrated below:
The consequences of using social networking will bring both advantages and associated risksfor my
business. However, the risks are tolerated within my control and I am willing to enjoy risks to take
higher returns.
[ LEMON TEA SHOP – THE BUSINESS STRATEGY]
LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
We are willing to enjoy risks to take higher returns.
2.2.2 Phase 2: “Silent movement”
The critical analysis: conducted on range of areas including product assessment, market research of
the customer needs and customer targeting and finally competitors benchmarking.
Customer Targeting:
A
D
V
A
N
T
A
G
E
S
R
I
S
K
S
S
70%
30%
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LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
The majority targeted customer is students/pupils accounting for 65%. They are
willing to spend money to buy product as long as the prices are reasonable and they
are entitled quality beverage.
This is most important customer category to be significantly developed in future.
The other category includes groups of friends, young people and couples. They often
go to lemon tea shop about average 2 times per week especially on the weekend.
We estimate these category accounts for 35%.
Product Assessment:
Selling price: we current offer 8,000 VND.
The price is then adjusted for 10,000 VND.
Production costs: based on the current situation, production costs are 3,000 VND.
The production costs is adjusted for 4,000 VND after researching and introducing
new exclusive “special” lemon tea.
Quality: After researching and introducing, we will register with department of health
of Ho Chi Minh City about the guarantee on out product.
Design of package: We are using plastic cups for our products.
The paper cup will replace the current plastic cup with design of environment
friendly.
The paper cup can be recycled for next times
Competitors Benchmarking:
Similar selling price: about 8,000 VND – 16,000 VND
Our adjusted offer is reasonable (10,000 VND)
The component of menu list are all similar causing boring on customers
The new menu list with exclusive “special” lemon teas refreshing customer’s
tastes.
The services of lemon tea shop are rather acceptable as a whole. However, they have
not yet reflected the professionalism in serving customers.
Our waiter force will be trained to be friendlier with specific performance indicator
each month and they will be provided uniform.
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LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
Intensive researching of “special” product of lemon tea and redesign of the menu list:
2.2.3 Phase 3: “Storming”
Short term strategy – 6 months
o Product Orientation
Product Communication Competition strategy
+ Using social network, websites, word of mouths
about new products of lemon tea
+ Copy of “Hygiene License” on food safety and
processed materials
+ Offering trial free use of new products
+ Competing on existing products
while attracting customer to new
products.
+ Enhancement of service quality to
maintain customer satisfaction.
+ Issue scoring cards:
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LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
o Focus on developing market share from current customers
Sale revenue is increased by focusing on other (35%) firstly in six months. The revenue is expected
to increase at level of 10%, the production costs is at 5%.
Long term strategy – 5 years
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LEMON TEA SHOP – THE BUSINESS STRATEGY | CONFIDENTIAL
The summary of sale revenue from combination of long term strategy and short term
strategy:
3. CONCLUSION
We are confident to go throughout the storm and build our brand stronger through combination both
short term and long term strategies to introduce new version of lemon tea which is more environment
friendly and increase our profitability in the foreseeable future. We are willing to take associated risks
in order to earn higher return and take all necessary actions to ensure that the risks are within our
control. With our slogan “Think different – Do excellent” we believe that our business strategy will
bring successful as soon as it is implemented in practice.