Final report corporate management

Estimated market potential for Alice's target market: Alice is aiming her marketing efforts at the 20% of women's clothes that falls into the specialized market category of petite clothi

HO CHI MINH CITY UNIVERSITY

OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY

FACULTY OF BUSINESS ADMINISTRATION

FINAL REPORT

Major: Corporate Management

Group: 16 Members of the group:

Dinh Thi Ut Nhi — 20DH121560

Nguyễn Minh Thu —- 21DH123367 Nguyễn Thanh Vy - 21DH123030

Course: 2021-2025 Instructor: Dang Hoang Son

Table of contents

Question 1

Question 2

Target Market and Trade Area

3.1 Introduction

3.2 Franchise model

3.3 Why does YAME franchise?

3.4 Key considerations for franchise extension

3.5 YAME's challenges in expanding its franchise

3.6 Important elements in franchising

3.7 Practical recommendations

3.8 Conclusion

References

Question 1

This essay looks at Petite Shop A, a little retailer up against big-box retailers, and provides insights into innovative ways to overcome obstacles and draw clients Despite its modest size, Petite Shop A has distinct advantages in recognizing consumer trends and wants, which allows it to offer a customized and distinctive shopping experience Studies disclose the distinctive tactics employed by Petite Shop A, such as making the most of compact areas, emphasizing high-quality merchandise, and utilizing technology to improve the shopping encounter Due to Petite Shop A's integrated business model, which combines offline and online tactics, digital marketing and in-store interactions must be carefully managed Petite Shop A is a case study that offers insightful information to scholars and businesses alike by examining tactics used by small retail shops to thrive in

a cutthroat industry

The following are the essential components of the Petite Shop A case study:

1 A little retail establishment: Located in a fiercely competitive shopping complex, Petite Shop A is a tiny retail establishment that specializes in women's apparel and accessories

2 Businesses are under intense pressure to compete from large chain stores, which use more marketing resources and provide a wider range of products This competition is growing This poses a significant obstacle for Petite Shop A in terms of drawing clients

3 Target market: Petite Shop A caters to petite ladies who have trouble finding items that suit them, providing individualized attention and making handmade garments for each

customer

4 Unique Selling Proposition: Petite Shop A sets itself apart from its rivals with a well- curated selection of petite women's apparel and a customized shopping experience This company also prioritizes providing exceptional customer service to foster a welcoming shopping environment

5 Marketing and Promotion: The marketing and promotion plan of Petite Shop A is covered in this case study It goes over how to connect and interact with your target audience through email marketing on social media and collaborating with local influencers

6 Opportunities and Challenges: The case study emphasizes the difficulties Petite Shop A encountered, including scarce resources and competitiveness Furthermore, it presents a plethora of chances for firms to leverage their USP and cultivate a devoted clientele

As a whole, the tiny shop A case study offers insightful information about the methods and approaches retail companies can employ to stay competitive in a difficult market It highlights how crucial it is to identify your target market, set yourself out from the competition, and market your company successfully in order to draw in and keep clients Case study:

1 Estimated market potential for Alice's target market:

Alice is aiming her marketing efforts at the 20% of women's clothes that falls into the specialized market category of petite clothing This small women's tailoring (sizes 3 to 9)

is now available in 10% of retailers

Total market size for women's clothing categories per family Spending on women's clothing x total number of families

= $1000 x 29,200

= $ 29,200,000

At now, the tiny section represents 20% of the total

Market potential for Alice's intended target market, which is a small section

= $ 29,200,000 x 20% = $5,840,000

2 Market potential (in percentage) Alice can expect Petite Shop's market share

= Potential market size (in $)/ Total retail sales (in $)

= $5,840,000/ 737,700,000

=0.7916%

3 This analysis may take into account the following non-quantitative analyses:

- Market form, which includes perfect and imperfect competition

2

- The effect of well-planned marketing and advertising on market share

- Demand for products and apparel quality at Alice's tiny shop

Question 2

People these days usually eat healthily and dress nicely, stnce wearing nice clothes is a basic human want Thus, there is a lot of potential for economic development when starting a fashion clothes store There are more and more fashion stores opening up with a wide range of pricing and styles Customers can purchase the most satisfying goods from

a wide range of options Le Hong Phong ward in Quang Negai city will be the site of a fashion store, and this analysis will determine whether or not this is a viable location for a fashion store

Feasibility Analysis

Target Market and Trade Area

According to geography, it is anticipated that the store's business area will be situated in a desirable region of Quang Ngai City's Le Hong Phong district, where the bulk of locals' favorite fashion stores, venues, restaurants, and leisure areas are located This presents both a benefit and a drawback for the store because the 500 meters down this route, which are lined with eateries and fashion stores, will be home to numerous major and small competitors There's comfortable parking, easy vehicle movement, and a clean frontage on the street But what makes the local businesses unique is that, despite their diversity, the products are still not very good for young people, particularly the Gen Z generation of today Thus, the store was founded with the intention of providing young people with more appropriate options and selling clothing with really basic, trendy patterns The store was built not only for young people to purchase clothing, but also for mothers and sisters to purchase items for their spouses and kids, boyfriends, or friends

As a result, there is a lot of potential for building a unisex fashion store large in this domain Additionally, this is a street where people frequently buy and have fun, which presents both a challenge and a strength for the store in the face of competition from other businesses I anticipate that the store will generate roughly 70% more income than the surrounding area The majority of buyers are from Quang Ngai city's surrounding towns and locals

Market potential:

It is projected that Quang Neai's retail clothes business will bring in 12,451,000,000 VND in total income by 2023 with a 3.25 percent rate of inflation Sales in the retail sector in 2024 will be:

12,451,000,000 VND x(1+3.25%)°=14,610,145,289 VND

In Quang Ngai province, there will be 1.2 million people living in 2023; 607,103 of them are men and 624,627 are women We shall utilize both the female and male populations

to compute because it is likely that women will also purchase items for guys

The population of Quang Ngai City 1s 261,417 people

The population in other areas of Quang Ngai province (except Quang Ngai city) is 938,583 people

The total population will shopping centers in other areas is predicted to be 20%

Based on empirical evidence and statistical analysis, the purchase of clothing by local residents will typically consume 5% of their monthly disposable income As a result, in Quang Ngai City, the store's revenue per person in 2024 will be:

20%

14,610,145,289VND x——————————— (261,417+(938,583 x35 %)) =64,953,254 VND

Store will have a market focused mainly on people in Quang Ngai city Thus, we will calculate market potential data based on the population of Quang Ngai city

Store sales and income per capita of Quang Ngai city is 4,953,254 VND

Therefore, the total market potential of Quang Ngai city in 2024 1s:

4,953,254 VND x 261,417= 1,294,864,800 VND

In addition to the regional market, there is also an out-of-region market, which means people from one locality come to shop in another area This is the shopping behavior of young customers from 2018 to the present and people still keep that habit until now

4

According to research and studies on the fashion market, the rate of outside shopping is 15% Therefore, the total market potential of Nui Thanh town in 2023 will be adjusted as follows:

1,294,864,800 x 0.85= 1,100,635,080 VND

Based on population data, inflation, per capita income, and estimated outside shopping rate, 1,100,635,080 VND will be the most accurate figure of total market potential to date

Market share

In Le Hong Phong Ward - Quang Ngai city, there are currently 18 - 20 fashion stores And YAME Store is expected to open with 100 square meters Based on this data, YAME Store's Market Share is expected to be:

100

— ——~ =4,76%

((100x20)+ 100)

Given that YAME is a relatively new store in the neighborhood, it will undoubtedly have both advantages and disadvantages Since it is a new store and does not yet have a reputation, the number of customers will not be fixed because it does not have a loyal client base like other stores The presence of almost twelve fashion boutiques on a single street in today's cutthroat market indicates how fiercely competitive the market is for this product and how difficult it will be to attract potential buyers is quite high and even more challenging As a result, your sales will fall short of their potential The store's location, on Quang Trung Street in the Le Hong Phong ward of Quang Ngai City, will, nevertheless, be its strongest point because it is a hub for local activity The store will benefit from having a restaurant, milk tea shop, and being close to a market and school as these establishments will draw in a lot of potential clients Furthermore, YAME will prioritize a wide range of products with many designs for those aged 18 to 50, catering to regional fashion trends and tastes, and priced between 150,000 and 350,000 VND Locals find VND to be reasonably priced, and it's certainly less expensive than other local retailers Moreover, there is committed, considerate customer care and committed guidance on products that complement the customer's style and price range As a result,

5

the store's location, customer service, and variety of products will work to draw in new

customers

Analyze the business situation in the next 5 years:

Expected income report for 3 years (Million VND)

Sales

1,969,327,50 1,294,864,800 | 1,489,094,520 | 1,712,458,698 | 3 2,264,726,628 COGS

517,945,920 | 595,637,808 | 684,983,479 | 787,731,001 905,890,651 Gross

776,918,880 | 893,456,712 1,027,475,219 | 2 1,358,835,977

Rent

60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 Wages

25,004,800 27,505,280 30,255,808 33,281,389 36,609,528 Benefits

16,500,000 18,150,000 19,965,000 21,961,500 24,157,650 Advertising

129,486,480 148,909,452 171,245,870 | 196,932,750 | 226,472,663 SG&A

194229720 | 223,364,178 | 256,868,805 | 295,399,125 339,708,994 Utility

36,000,000 39,600,000 43,560,000 47,916,000 52,707,600

Insurance

10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Depreciatio

Repair and

maintenance | 129,486,480 148,909,452 171,245,870 | 196,932,750 | 226,472,663

Interest

expense 35,000,000 31,500,000 28,350,000 25,515,000 22,963,500 Other

expense 10,000,000 11,000,000 12,100,000 13,310,000 14,641,000 Total

expense 658,656,128 | 733,829,307 | 820,715,939 | 920,941,790 1,036,380,864

EBT 118,262,752 159,627,405 | 206,759,280 | 260,654,712 | 322,455,113

Income

taxes 23,652,550.40 | 31,925,481 41,351,856 52,130,942 64,491,023

Net income | 94,610,202 127,701,924 165,407,424 | 208,523,769 | 257,964,090

With costs each product varying between 150 and 350 thousand VND, and an

approximate total cost of 520 million VND According to the five-year income report, YAME is headed in the right direction Revenue has been rising gradually over the years, with a significant increase anticipated in 2028 The gross profit during the next five years will rise concurrently While rent will decrease because the first year only requires additional deposits in subsequent years, just monthly rent will be required, total costs are expected to increase, but very slightly This is due to increases in utility, employee, owner, and employee benefit costs, as well as maintenance and repair costs The profit after taxes for 2024 is 94 million, and by 2025 it will rise to 127.7 million It is projected that employee pay will be increased from the previous year if earnings after taxes rises significantly in 2025 Additionally, because the equipment is new, repair expenses may

not vary significantly in the first years, but the estimate will change the following year These computations show that the Quang Ngai shop has a lot of development potential, but it also has to control costs as one would expect In order to spread knowledge, retailers can also offer helpful advice on how to use e-commerce technologies to boost sales rather than just local sales There are numerous other regions that the Quang Ngai City area, notably Quang Trung Street, Le Hong Phong Ward, can spread out to We can expand even further if we search for suppliers who provide better terms, better store maintenance and administration, and staff development and training

Question 3

3.1 Introduction

- Franchising is normally understood as licensee (franchisee) and a licensor (franchisor) enter into a contract, which permits the company owner to use the licensor's name and mode of operation to market goods and services to customers Countries have benefited economically from franchising, which has allowed Vietnamese companies to enter international markets and, conversely, allowed foreign companies to enter the Vietnamese market

-YAME is a Vietnamese fashion brand for young people with a youthful and bright style This brand deals with clothing and accessories that catch up with fashion trends and is a link between young people With the slogan called “ You are my everything”, YAME aims to infuse positive energy into people relationship This fashion brand was established in 2010 , which is kind of early for local fashion brand industry to develop It

is also affirmed that YAME’ reputation and the value brought to the fashion industry at that time This brand still has been enthusiastically supported by a large number of customers so far Currently, YAME owns 16 branches in Ho Chi Minh city, 33 branches

in Southeast — Southwest — Central Highlands provinces and will continue to expand Particularly in Ho Chi Minh city, there are more than 16 branches spread across inner and suburban districts There are also websites and social networking sites that constantly updates new products every day

3.2 Franchise model

With this term, the franchisor only grants the customer the right to utilize its business model, products, and techniques for a predetermined amount of time, or indefinitely, in