TABLE OF CONTENT
I. INTRODUCTION .....................................................................................................................2 II. EXCECUTIVE SUMMARY .................................................................................................3 III. OVERVIEW OF THE FRANCHISOR .............................................................................4 1.
Company Profile ................................................................................................................ 4
2.
Cinnabon is a Potential Franchise Business Perspective in Vietnam and
Particularly in Ho Chi Minh City .......................................................................................... 5 IV. SITUATION ANALYSIS......................................................................................................6 1.
Macro Environment.......................................................................................................... 6
2.
Micro Environment........................................................................................................... 8
V. MARKETING PROGRAM .................................................................................................10 1.
Franchisee’s Mission and Vision................................................................................... 10
2.
Marketing Goals .............................................................................................................. 10
VI. SEGMENTING, TARGETING AND POSITIONING .................................................11 1.
Segmenting ....................................................................................................................... 11
2.
Brand Strategy ................................................................................................................. 12
3.
Brand Awareness ............................................................................................................ 13
VII. SWOT ANALYSIS.............................................................................................................15 VIII. MARKETING MIX..........................................................................................................17 IX. HUMAN RESOURCE PLANS ..........................................................................................20 X. FINANCIAL PROJECTION ...............................................................................................23 XI. IMPLEMENTATION & CONTROL...............................................................................24 1.
Project Implementation.................................................................................................. 24
2.
Control .............................................................................................................................. 25
XII. REFERENCES ...................................................................................................................26
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I.
INTRODUCTION Vietnam’s food and beverage industry is becoming more developed and westernized. In
other words, Vietnamese people have grown much interest in enjoying food and drink from Western countries. Therefore, these products are expected to grow faster in the market potential point, especially convenience and processed foods and dairy products. Additionally, there are two key factors that influence Vietnamese customers’ current tendency in food and beverage. Firstly, Vietnam has a young population who are ready for the reception of new things, especially in food and beverage field, leading to the increased demand for the products which are newcomers into Vietnam market. Secondly, joining the World Trade Organization (WTO) in 2007 makes Vietnam market become more transparent in franchising. There have been more and more foreign brands coming to Vietnam under the entry mode of franchising, and hence, it easily fulfills the Vietnamese consumers’ curiosity. The Vietnam beverage market is growing rapidly and becoming more diverse with the emerging foreign drinks. According to New Zealand Trade and Enterprise’s Publish of Food & Beverage in Vietnam, they noted that sales of beverage products are expected to continue increasing in the following years. In Vietnam, food and drink specialist is one of the key players in the Vietnam food and beverage retail formats. Specialist retailers such as bakeries hold around 29.4 percent of market share (New Zealand Trade and Enterprise, 2011). Western fast service restaurants and chain bakeries have emerged and proliferated in Vietnam since 1997. The rise of modern chain has developed a new image of Vietnam’s retail environment and the rental market, and they are seen to continue to rise in the market. According to Agrofood Research Report, the bakery market enjoyed a compound annual growth rate of 7.6% over the period of 2010 to 2013 and will continue to grow. It is said that the trend was due to the new style of bakery outlet expanding throughout Vietnam, particularly in big cities like Ho Chi Minh City since 2010 and became more popular as a place for people to gather together and have fun. In 2013, the consumption of cakes and pastries accounted for 23.2% of total bakery market revenue (coming after bread consumption).
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II.
EXCECUTIVE SUMMARY Due to the trend of new bakery style which is not only a traditional bakery selling baked
goods but a place for people to gather as well, Vietnam has a lot of potential for us to open a bakery serving fresh baked goods and high quality ingredients. In comparing to this new style bakeries which have been in Vietnam like Kido’s Bakery, Tous Le Jour, Paris Baguette, Bread Talk, etc., we believe that Cinnabon with its special cinnamon flavor will blow a wind of change through Vietnamese bakery market. The objective of this report is to provide a general view and the process of franchising an international brand like Cinnabon into Vietnam. Our group has conducted researches about Cinnabon to get the best knowledge about our brand as well as Vietnam business environment, then we came up with target segmentation, marketing mix for Cinnabon in our market. Entering to Vietnam, Cinnabon needs suitable strategies to adapt market environment and meet the expectation of Vietnamese customer during its franchising term. Hence, we made recommendation in Marketing, Human Resource, Financial Projection and pointed out some implementations and controls for this project.
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III.
OVERVIEW OF THE FRANCHISOR 1. Company Profile
Name: Cinnabon® Inc. Year of Establishment: 1985 in Seattle, America Franchise System: 30 years - since August, 1986, at Philadelphia Corporate Address: 5620 Glenridge Dr. N.E. Atlanta, GA 30342 Parent Company: FOCUS Brands Inc. 5#Facts about Cinnabon
Producing baked products with low fat margarine inside and nonfat cream-cheese icing on top
Producing freshly baked goods with high quality ingredients
Having a multitude range of cakes, pastries, etc. with cinnamon flavor
Actively joining in many charity programs like Daisy Foundation, Operation Gratitude, etc.
Using the ingredient Makara cinnamon from Indonesia
Performance over the Last 2 Years 2015 has been a successful year of Cinnabon with many achievements. Cinnabon has opened about 100 new bakeries. Since the growth was incredible, Cinnabon were listed in the Entrepreneur's Top Fastest Growing Franchises and ranked #54 in top 100 Global Franchises. Furthermore, its menu was varied by adding two new drinks which are Frosted CinnaSweeties, featuring pieces of Oreo cookies and Frosted CinnaSweeties with sprinkles. Cinnabon is a wellknown brand for doing several charities such as providing free Cinnabon cinnamon during Nurses Week. In 2016, the image has been completely changed, both Cinnabon’s logo has been redesigned with the new shape and the store front also has been redesigned. Here are some of more recent awards:
Ranked #1 in category in Entrepreneur magazine’s Franchise 500 ® (2014-2016)
Ranked in CNN Travel “Golden Chains: 20 Best Franchises for Travelers” (2014)
Ranked in Nation’s Restaurant News “Top 4 Restaurant Digital Marketing Tactics” (2012)
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2. Cinnabon is a Potential Franchise Business Perspective in Vietnam and Particularly in Ho Chi Minh City Entering into Vietnam market, Cinnabon will be an exclusive bakery that serves fresh baked goods with special cinnamon flavor and high quality ingredients. Cinnabon has experienced in franchising for over 30 years and has joined several charities. Therefore, coming to Vietnam, it does not have to spend much time on building brand image. Being as a developing country with stable political system, Vietnam especially Ho Chi Minh City is an ideal location for opening the first Cinnabon store. 51.7% of citizen who are living here are under 30 years old (Kehoachviet, 2016) and have higher income level than the national one. They are young, dynamic and prefer to buy foreign product. Moreover, Vietnamese people are familiar with nearly 70 kinds of herb (Vietnam Food Facts, October 2016) which are used as an important spice of their meal. Therefore, Cinnabon believes that its special cinnamon flavor will be welcomed in Vietnamese market. In short, Cinnabon is a potential brand to enter into Vietnam market. Cinnabon has expanded the franchise system with more than 1,200 bakeries in over 56 countries and assured to support all of them based on respect and trust before, during and even after grand opening. Being one of Cinnabon’s partners, you will receive many training programs such as Bakery Manager Training Program, Grand Opening Support, supporting from The Franchise Business Consultant and the CinnabonŽ Training Department, etc. Cinnabon also offers marketing support which includes regional advertising by using different media such as television, the Internet, magazines, and brochures, etc. at franchisees’ location. If there are any problems happening during operating, feel free to contact the head office to receive the support. In conclusion, Vietnam market is a best choice for Cinnabon to expand the franchise system.
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IV.
SITUATION ANALYSIS 1.
Macro Environment
Political – Law Factors The administration and stability of political situation in Vietnam affects positively. The government has made considerable efforts to build up regulations allowing franchises to be established in Vietnam. Decree No. 35 and Circular No. 09 in 2006 put the ground for franchising to develop in Vietnam. This decree provides key concepts for franchising, requirements of franchise agreements and state administration of franchises. Other relevant regulations to franchising can also be found in the Law on Intellectual Property. In addition, franchises have to report and pay several of taxes such as employment tax, income tax and so on. The other primary factor is about the origin of the raw materials. Business must strictly follow the purchasing process of the raw materials. Lastly, every company in food and beverage industry has to attach a certificate of Food Hygiene and Safety in order to run business in this field. Economic Factors Fast food market in Vietnam has received big investment so the market creates lots of potential development for this field. According to US Commercial Vietnam in 2014, there were more than 90 international franchising systems operating in Vietnam and consumer awareness of American food and beverage franchise brands was quite strong. However, in Vietnam, the rents of retail premises are one among the highest in the world. The rent premium accounts for 25 – 30% of the total revenue that makes franchisees have difficulties in maintaining profitability. Moreover, registration with Government of Vietnamese authorities for new food is also high costly and burdensome (GAIN Report, 2015). Baked goods are expected to register a compound annual growth rate of 6% in constant terms over the forecast period to reach VND 22.8 trillion in 2019. According to Euromonitor, per capita expenditure on food and non-alcoholic beverages is expected to grow at 7% per annum from 2012 to 2016, reaching US$276 by 2016. The last point is Vietnam has young population with increasing disposable income so that the opportunity growth market for fast food has increased (Deloitte, 2013).
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Social – Cultural Factors
Vietnamese prefer using products from international brands because they believe imported products have better quality and present their higher position in society compared to the domestic brands. 89% of Vietnamese said that they prioritized their spending on two categories: foods and entertainment service (vneconomynews.com, 2011). In addition, eating out is a common practice and regular part of social life, especially in large cities such as Ho Chi Minh City, Hanoi, Da Nang, etc. The young love gathering at café or restaurants to have breakfast, lunch or dinner. According to Euromonitor (2015), before hanging out with family or friends, people preferred to use mobile apps or social media to check whether the café or restaurant is good or not. Moreover, urban Vietnamese consumers have a fast-paced lifestyle so they prefer dining out to eating at home and have higher request for home delivery services. Finally, the top Vietnamese concern is health. They take care of the safety in their food consuming and related issues more than before. (Market Researcher Kantar Worldpanel Vietnam).
Technological Factors
Technology has developed rapidly in recent years and Vietnam ranks #89 in the Technology Index. Furthermore, the most important and rising trend is the mobile technology development. Smart phones are being used in every context and environment. Search is the second most popular activity on mobile with 56% searching, along with 59% of people accessing social media (Appota Inc, September 2015). When seeing hot topics, people get used to leaving comment, tagging each other on Facebook page. Therefore business can enjoy the benefits of the smartphone wave and social network. Additionally, the Internet is important to everyone. Customers prefer stores that allow them to surf web with strong Wi-Fi capability.
Demographic Factors
Vietnam is one of the youngest demographic profiles in Asia with the median age is 30 years. Besides that, Vietnam is the third largest population in Southeast Asia; approximately 70% of 95 million people (July 2016 est.) are from 15 to 50 years old, belonging to the working age group. This type of demographic declares a wonderful opportunity in the consumer market such as higher demand for fast food, greater consideration on quality of products, and wider alliance and variety of choice for branded products. Page 7|
2.
Micro Environment
Consumer Analysis
With the purpose to bring the unique delicious dessert to Vietnamese customers, Cinnabon’s potential customers are mainly with middle income level who are willing to pay about $2.5 for a pastry. All customers who have sweet favor and would like to have a place to gather with friends or family are the target market of Cinnabon. Coming to Vietnam, we focus intensively on official clerks, university students and kids to achieve our sales objectives.
Competitor Analysis
The bakery market in Vietnam is toughly competitive with not only domestic but also international brands. Vietnamese customers are acquainted with the traditional bakeries such as Kinh Do Co., Duc Phat Co. which only makes and sells bread and cakes for taking away. In 2013, Kinh Do gained 13.4% market share and became the leading bakery brand in Vietnam (Euromonitor International, VPBS research, page 40). Since 2010, the number of international bakery outlets into Vietnam has increased remarkably especially under bakery & café model which serves coffee and tea to customers who wish to consume the baked goods on the premises. As a result, the Vietnam bakery market enjoyed a CAGR (compound annual growth rate) of 7.6% over the period of 2010 to 2013, reaching VND 10.4 trillion by the end of 2013. TOUR les JOURS (2007), Paris Baguette (2012), Auntie Anne’s Vietnam (2013) are the examples of this new style of bakery in Vietnam. Besides that, there are a number of Vietnamese bakery-café stores such as Fly Cupcake (2012), SATRA Bakery & Cafe (2014), Churros Box (2015), etc. (The year written in the brackets points out when the first store of the above brands has opened in Vietnam.) With the baked products from European style, TOUR les JOURS and Paris Baguette has created the special experience for their customers with the highest quality ingredients and premium service. Besides that, Saigon Trading Group especially SATRA Food & Beverage, which has been expert in Vietnamese breads and cakes, renovated its traditional business into Bakery & Café store in 2014 and diversified its menu into Western baked goods. Next, Fly Cupcake serves customers with a colorful menu having more than 50 types of cupcakes. Moreover, for Vietnamese customers who love American cuisine, Auntie Anne’s is a familiar brand with the special baked good called Pretzel which brings to them a new delicious type of bread. Lastly, Churros Box was a newcomer into Vietnam bakery market in 2015 but has
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attracted many customers because of its special product - churros cake in cinnamon flavor which is usually along with ice-cream cone. In summary, Churros Box seems to be the toughest competitor to Cinnabon Vietnam because it nearly serves the same type of product but in different packaging. In addition, other bakery & cafÊ stores are more familiar to Vietnamese customers so that it makes Cinnabon more difficult in gaining the brand recognition. Nevertheless, we believe that Cinnabon will stand out among all the above brands with the special flavor – cinnamon and high quality of service.
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V.
MARKETING PROGRAM 1. Franchisee’s Mission and Vision
Mission
At Cinnabon, we do not only provide products and services but also we care about people. We believe to bring the real value of the fresh baked goods - the warm - to every Guests through several charities we have joined.
Vision
To be the global player in the snack industry and the leading bakery and coffee shop brand in Vietnam market
2. Marketing Goals In the first year entering into Vietnam market, Cinnabon Vietnam hopes to achieve $150,000 in revenue. We can easily draw Vietnamese customers’ attention because of having more than 1,200 bakeries in over 56 countries, and then, persuade them to try our products by using many different marketing campaigns. Moreover, the first Cinnabon bakery will be located on the most prestigious street in Ho Chi Minh City - Nguyen Hue Boulevard where most office clerks and young people usually gather. Therefore, we believe that the franchisee unit in Vietnam can effortlessly meet sales target. For the second year, Cinnabon Vietnam’s revenue will increase by 20% than the first year because of higher brand recognition from Vietnamese consumers. This will confirm our ability to gain more market share in Vietnam bakery market. Then, we expect to have an increase in revenue by 32% per year for the last three years and in customer loyalty by 10%.
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VI.
SEGMENTING, TARGETING AND POSITIONING 1. Segmenting
HOME TARGET SEGMENTATION
NEW TARGET SEGMENTATION
Place
Malls, military bases, universities, rapid stations, casinos, amusement parks and other high-traffic locations
City area or busy streets especially where is near school, universities, and office buildings
Income
Low – middle income
Middle income
Age
6 – 65+ Fan of sweet treats Hedonist
6 – 65+ Fan of sweet treats Hedonist
No limit
Office clerks, university students, kids
Lifestyle Job
Home Target Segmentation Cinnabon can easily be found in US from military bases to crowded places such as malls, amusement parks, stations, casinos, universities. With the affordable price from $2 - $20, Cinnabon is an ideal choice for fan of sweet treats or people with busy lifestyle but want to find a break-time meal to charge more energy before coming back to work harder. Cinnabon was born “for moms with kids and shopping bags in town, travelers with suitcases galore, students who need a study break or anyone who wants to splurge a little - Cinnabon is your escape, your mini vacation, your frosting in life” (Cinnabon website). New Target Segmentation Coming to Vietnam, Cinnabon promises to be a wise choice for people who love sweet and desire to experience a new foreign pastry with the suitable price setting at $1.5 - $22. Cinnabon Vietnam will be opened on busy streets especially which is near schools, universities, office buildings where busy people like university students, office clerks can easily find a relaxing moment. Cinnabon Vietnam is where hedonistic people come and light up their afternoon with the specialty-blended beverage and a little pastry.
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2. Brand Strategy Social Media Nowadays, social media plays a more important role in marketing especially the way how consumers discover, research and share information about their favorite brands and products. As a result, Cinnabon Vietnam will use some social media channels such as Facebook, Instagram, YouTube as a place to introduce products, share experience and bring the brand closer to customers. Celebrity Endorsement Celebrity endorsement is not a new idea but it is always an effective one to promote the brand image. A brand using brand ambassador has better brand awareness than one without using. Therefore, Cinnabon Vietnam will utilize the advantages of this effect in order to draw the Vietnamese customers’ attention. Partnership Becoming sponsor for events and partnering with some mobile apps like Galaxy Gift, Meete, etc. are the main strategy for Cinnabon Vietnam not only to build good relationships with other businesses but also help us to attract more potential customers. WOW service Nowadays, in order to make customers remember the brand name of a bakery and come back for the next times, a delicious cake is not enough but it needs to come along with good customer service. Therefore, Cinnabon Vietnam always tries to bring the high quality products with the WOW services to every customers to enhance the brand image in Vietnam bakery market.
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3. Brand Awareness Developing Facebook and Instagram Page of Cinnabon Vietnam With the advantage of more than 35 million Facebook users in Vietnam, Facebook has become the most effective tool in advertising to bring Cinnabon closer to the customers. We will introduce our cakes, pastries, daily interesting stories and images happening in the Cinnabon bakery as well as run online campaigns and inform offline events on the Facebook and Instagram page. Moreover, these online social media are also the key communication method between us and Vietnamese consumers. Producing and Developing a Baking YouTube Channel Since Vietnamese people are in the Top 10 YouTube viewing countries in the world so that most marketing agencies use YouTube as the main media in building brand awareness. We will develop a baking channel and make video clips to help Vietnamese people have an overview of Western-styled bread and pastry, as well as how to make some easy-to-make Cinnabon pastry. The baking channel helps us to promote the brand image and create the closeness between us and Vietnamese customers. Building Brand Ambassador of Cinnabon Vietnam There are a number of advantages when using celebrity endorsement such as: increasing consumer purchases, building brand equity, positioning a brand and attracting new users, etc. Therefore, cooperating with celebrities is our first priority choice in advertising in order to build brand awareness and boost the sales. Cinnabon Vietnam will choose the one who is being loved from young to old generation and has a positive image in food experience. For instance, Quang Vinh is a singer who has an Instagram account with a lot of beautiful images about food and how he experiences them, or Bich Phuong is also a singer who has a YouTube channel about how to cook some interesting homemade food. Sponsoring Public Events When sponsoring public events, a brand can easily increase the sales volume, enhance the reputation or brand image as well as increase brand awareness (Amoako, Dartey-Baah, Dzogbenuk and Kwesie Junior, 2002). Therefore, Cinnabon Vietnam is about to sponsor some events like The Voice Kids, Master Chef Vietnam, Master Chef Junior Vietnam, etc. As a results, we can easily attract new customers as well as build the brand awareness. P a g e 13 |
Joining Forces with another Business A great ways to approach to new customers is to partner with businesses which have the same target customers but not directly competing. Taking the advantage of a high mobile connection country with the majority of 55 percent Vietnamese people using smartphone, Cinnabon Vietnam will build relationship with some mobile apps such as Meete – a mobile app to find Food and Drink deals and discount of in Vietnam, Galaxy Gift – a mobile app only for Samsung Galaxy users to get deals and discounts from more 800 brands in the field of food, beverage, and beauty, etc. In addition, cooperating with online shopping websites such as Tiki, Lazada, Zalora to give vouchers discount for customers to buy baked products such as cookbook, baking tools and equipment, etc. is also a good way to build the brand awareness. Providing the WOW Service No matter how much reputation social media and advertising can bring to Cinnabon, the most important reputation that makes Cinnabon stand stable in customers’ choice is the quality in products and customer service. In Vietnam, we have an idiom ”Ăn bát cơm dẻo nhớ nẻo đường đi” which means once you have satisfied customer with good products, they always find the way to you next time. Therefore, Cinnabon Vietnam will always give Vietnamese customers the most delicious food with the most comfortable service.
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VII.
SWOT ANALYSIS SWOT Analysis is a useful framework for analyzing organization’s strengths and
weaknesses, opportunities and threats that we face. Based on this analysis, Cinnabon Vietnam can focus on strengths, realize weaknesses, minimize threats, and take advantage of opportunities that are available to us. Strengths Cinnabon is the market leader with its world famous signature cinnamon roll. We have international brand recognition with over 1,200 franchised bakeries in more than 56 countries and in 2016, Cinnabon ranked among Franchise Defect’s Top 100 Global Franchises. Furthermore, the product is high quality and unique. We serve freshness, aromatic and ovenhot cinnamon rolls as well as various baked goods and special beverages. Our price is for the middle income level with the quick service which is no more than 15 minutes for an order. In addition, the packaging and bakery design are stylish and delightful. Two main colors are light blue and brown which build and highlight the brand image. Lastly, Cinnabon Vietnam will strategically locate in high traffic venues such as Nguyen Hue Boulevard where there are many foreign pedestrians and office clerks. Weaknesses The first weakness may prevent Cinnabon from achieving its goals is that the chain of local supplier is narrow. Some identical products cannot be bought in Vietnam such as cinnamon, plastic cups with logo and so on. Besides that, production process is lack of adaptability. All receipts are traditional therefore it is required to be accurate and standardized that leads us to not to be able to fulfill Vietnamese customer’s needs. Additionally, the amount of high fat and high calories in baked goods are not good for health conscious people. Opportunities Vietnam is one of emerging economics that could provide growth opportunities for Cinnabon in international expansion. Besides, Vietnam has a large and young population as well as food and beverage industry is becoming more developed and westernized. As a result, our sales target can be achieved effortlessly.
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Furthermore, Cinnabon has a significant opportunity in health caring issues from Vietnamese recently. Hence, we would tend to low-calorie items and introduce more healthy options on the menu. Moreover, we can tie up with entertainment industry like cinema and make distribution agreements with hotel to build Cinnabon’s image in Vietnamese customers’ minds. Threats Vietnam is a coffee-based culture and a highly competitive coffee producer in international market. Besides, there are many big Vietnamese bakery brands such as Duc Phat, Kinh Do, and ABC, etc. that are familiar with the Vietnamese consumers. Thus, Cinnabon will face an intensive competition from local bakeries, coffee shops and other international players. Moreover, people are moving to healthier ways of eating and the trend towards fitness and healthy lifestyle so that they tend to reduce the demand of sweet food. As a result, our sales may experience a decrease. Additionally, the wider difference in income inequality and the growing unemployment rate can affect Vietnamese customer’s purchasing power. Lastly, the cost of raw materials may make the product’s price higher when operating in Vietnam.
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VIII.
MARKETING MIX Product Cinnabon serves people with the wonderfully irresistible fresh-baked dough, one-of-a-
kind cinnamon smell and taste of the luscious flavor from cassia tree in Indonesia tropical forest. Brought to Vietnam, the product range is limited down to three different categories: Baked Goods, Cup Cakes and Specialty Beverages but still diversified with many tasty products:
Baked Goods: Classic Rolls, Caramel Pecanbons, MiniBon, CinnaPacks, and Cinnabon Stix.
Cup Cakes: Chocolate Passion, Vanilla Bliss and Red Velvet.
Speciality Beverages: MochaLatta Chills, Chillattas and Cinnabon’s line of frozen blended beverages.
Not only the dough foundation makes Cinnabon’s perfect baked treats, the waves of frosting are also Cinnabon’s supreme characteristic. It adds another depth of flavor with the smooth topping of cream cheese on final layer. Besides, Cinnabon’s range of beverage is also expanded to complement the flavors of its baked goods and cupcakes. Price Coming to Vietnam market, the price of Cinnabon’s products is at the medium position, which is reduced by utilizing Vietnam’s low labor cost and down from the range of $2.83 $22.99 to $1.83 - $21.99. Cinnabon utilizes a discounting method with the menu of: 6 rolls of Cinnabon Class are $16.45, while 4 rolls of that are $11.99. Usually, the consumers see that the upsize-choice is worth the money, therefore, most of them decide to purchase the larger roll. The other form of discounting used by Cinnabon is the sale of retail packs which allows customer to purchase four or six rolls for a smaller per unit cost. Place Cinnabon used to place its stores in areas where there is high pedestrian traffic such as malls, airports, and grocery stores. However, the company has started to have the bakeries at freestanding locations recently and they were reported with a very high sales.
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Since Cinnabon utilizes the grocery stores with prepackaged products, the customers have been complaining the brand about the inaccessibility of the product and store locations. At this point, in Vietnam, Cinnabon bakery appears as a freestanding store on Nguyen Hue Street, where there is a high traffic of pedestrian including Vietnamese and foreigners. Promotion Cinnabon has been partnering with several charities to keep true to the values of the brand. Cinnabon proudly supports Operation Gratitude and the DAISY Foundation. Together with the DAISY Foundation, since 2010, Cinnabon Guests, Franchisees and employees have all supported Operation Gratitude where the bakeries help raise money and send care packages to active duty and veteran service members and their families. Moreover, many Cinnabon outlets participate in local event sponsoring such as football games. To build up the brand in Vietnam, product sampling is very important so as to raise the brand awareness. To add more value into the promotion strategy, product brochures should be carried out in the Cinnabon store to help customers know more about the store as well as the brand. Moreover, with the display of posters and electronic commercials on high traffic streets, we can get more attention from the customers. In addition, Cinnabon can provide vouchers via some Vietnamese websites to attract the customers to try the perfect new taste of Cinnabon’s baked treats and increase the sales in the period. People We has been building a family-like working place for the staffs so that they can have great time working at the stores and do the jobs more effectively and efficiently. We provide the professional training for every staff in overall procedures and also make them sincerely response to customers. As located on Nguyen Hue Boulevard where there are many foreign pedestrians, hiring employees affluent in English is a must. Process Cinnabon makes the operating process in each store professional. When a customer comes to make an order, he/she will complete the payment at the cashier and get the baked treats immediately or no more than 10 minutes. At the same time, the cashier gives the beverage order (if available) to the barista standing nearby for an in-one-minute making of drink. Finally,
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customer moves to the barista to get the drink and together with other Cinnabon servings, he/she can be pleased to enjoy them. Cinnabon promises to the customers that the product order is no more than 10 minutes from the oven. Inside the Cinnabon kitchen, all of the process is in open view and displayed behind glass so that the customers can see through the making of their order and admire the smell of sugary sweet cinnamon with the freshly baked hot rolls. Delivery service and online ordering service should be enhanced to gain more sales and customer satisfaction. ď ś Physical Evidence To make the perfection of every store practical, we emphasize the interior design with woody theme color which is fit the like of young people. They are also equipped with seethrough kitchens and provide customers a great place to enjoy the products and hang out with friends and family.
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IX.
HUMAN RESOURCE PLANS
Store manager - Full-time position Store manager is responsible for the whole activities of the bakery including checking the operation of each department and staffs to ensure the bakery’s sales target, the quality of raw materials as well as the products of the bakery. He/she also manages and improves the quality of service, employees, hygiene at the bakery and other problems related to the store. Furthermore, store manager plays the roles as an HR manager in recruiting for vacant positions and training for new employees.
Baker - Full-time position Baker performs a variety of baking duties and assist with the preparation of breads, rolls, muffins, cookies, pies, cakes, doughnuts, biscuits, and other pastries. P a g e 20 |
Cahier - Part-time position Cashier collects payments by accepting cash, checking, or charging payments from customers and then make change if needed. A cashier needs to have a good communication skill not only to interact with customers to understand their demands and help them order the pastry which is suitable with their tastes, provide pricing information but also to solve the problems happening during the selling-buying process with bill and order. After that, cashier takes the responsibility of putting pastry on dishes if customers eat at store or into boxes if take away.
Barista - Part-time position Barista makes required beverages on the bill and then serves them to customers.
Accountant - Full-time position The staff accountant position will be responsible for certain monthly processing activities, operations and sales reports, assistance with budget, financial forecasting, and support for internal and external audit procedures. Moreover, accountant works as an HR & administration staff who will calculate the salary for employees in the bakery.
Sale and Marketing - Full-time position This position is in charge of planning and managing the sales campaigns as well as marketing strategies for whole bakery and evaluating the success in order to identify prospective customers. In particular, the sales and marketing position will develop pricing strategies and balance bakery’s objectives and customer satisfaction. He/she also needs to complete expense reports, sales report, or other paperwork, etc.
Cleaner - Full-time position Cleaner keeps the environment clean for the bakery. A cleaner takes responsibility in cleaning up and re-arranging the table and chair after customers leave. In addition, the toilet of the store must be maintained in the clean and dry condition.
Security - Full-time position Security is responsible in maintaining safe and securing environment for customers and employees. Security must be the first warm welcome to customers by helping them with parking, ensuring the safety for customers’ transportations during their time in Cinnabon.
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BENEFITS WHEN WORKING AT CINNABON VIETNAM
General benefits
-
A professional bakery working environment
-
Work allowance
-
Regular training and development
Personal benefits
Being as a full-time employee, one will receive: -
Negotiable salary and bonus according to job performance
-
Social Insurance, Health Insurance and other benefits according to the provisions of the Labour Law and the Company
Being as a part-time employee, one will receive: -
15,000 VND/hour + lunch support (for morning shift) or dinner support (for evening shift) + work allowance
-
University students are preferred to be recruited in part-time positions. Cinnabon is a chance for students to experience real working environment, improve personal skills especially communication skill and learn more interesting knowledge about bakery field.
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X.
FINANCIAL PROJECTION
Please see the attached file: FinancialProjectionCinnabon.xlsx
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XI.
IMPLEMENTATION & CONTROL
1. Project Implementation The table below lists the activities that Cinnabon Vietnam needs to do in their first 15 months:
Task No. 1
Task
% Complete
1
Month To Be Completed 1
Duration (In Months) 0
Month Started
Task Milestone Precedence
Project Initiation Do the marketing research about F&B in VN Do the legal research about franchising in VN
100%
1
3
2
100%
1
3
2
1.3
Identify the procedure for franchising Cinnabon
100%
1
3
2
1.4
Prepare & discuss the requirements document
0%
3
5
2
1.1; 1.2; 1.3
1.5
Submit the request for franchising Cinnabon
0%
5
5
0
1.4
1.6
Wait for the approval from Cinnabon
0%
5
7
2
1.5
1.1 1.2
x
Project Start-up: Signing the contract Plan Sales & Marketing campaigns Construct, set up and decorate the bakery
0%
7
7
0
All Task 1
x
70%
7
13
6
2
x
0%
7
13
6
2
2.3
Recruit employees
0%
7
13
6
2
2.4
Prepare necessary equipment
0%
7
13
6
2
2.5
Run marketing campaigns
0%
13
15
2
2.1
x
2.6
Provide training to employees
0%
13
15
2
2.3
x
Grand Opening
0%
15
15
0
All Task 2
x
2 2.1 2.2
3
P a g e 24 |
After grand opening, Cinnabon Vietnam needs to do some major tasks in each fiscal year: -
Maintain the human resource capacity Run marketing campaigns in order to build brand image and awareness Do reports quarterly, semiannually and annually (i.e.: income statement, cash flow statement, etc.) Adjust the plan for sales and marketing campaigns if necessary Sponsor some charity event like our philosophy
Besides these important tasks, Cinnabon Vietnam needs to do the evaluation the success of the whole business in order to expire the franchising contract or not in the fifth fiscal year (Franchising contract lasts in 5 years).
2. Control At first, Cinnabon Vietnam may face difficulties with the procedures for franchising (i.e.: legal or financial statement, etc.). Therefore, they can seek assistance from legal advisors to solve this problem. Then, when the contract is signed, the bakery will begin to be constructed based on the original store but the decoration and the design may be change a little bit to fit with Vietnamese culture. However, if there are any problems happened, we will provide assistance from our business consultant and we do have a relationship with the third party vendor that covers all aspects of opening your Bakery franchise as we promised. After grand opening, Cinnabon Vietnam may not achieve the sales volume as which they expected before since they are a newcomer in Vietnam bakery market. In this situation, they need to analyse again the consumer behaviour towards their store particularly in terms of price, product, design of the bakery, etc. Then, Cinnabon Vietnam should adjust their original plans in order to suit with Vietnamese customer like adding some baked products, beverages but still keep the Cinnabon’s culture. Moreover, if the customer satisfaction is not good, they should analyse what the reasons are. It may come from the taste of the baked products and beverages which are not delicious enough or the way staffs serve customers. To solve these problems, Cinnabon Vietnam can consult the business advisor in order to have the special training about baking and serving.
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XII.
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