Mba ricebusinesspresentation

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AQUA AQUA RICE RICE TM TM Since 4000 BC Since 4000 BC

description

a short presentation on a possible business startup to export rice to US. This is a fiction plan by a MBA student group in Vietnam.

Transcript of Mba ricebusinesspresentation

Page 1: Mba ricebusinesspresentation

AQUAAQUARICERICETTMM

Since 4000 Since 4000 BCBC

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Chairman: Ngo Trong Thanh - CEO: Nguyen Toan Thang - COO: Nguyen Khac HoanCMO: Luu Van Hai - CFO: Nguyen Ngoc Tu

Eagle.,Inc

AQUAAQUARICRICEE

TMTM

Since 4000 BCSince 4000 BC

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Obesity in USObesity in US

Obesity Costs U.S. About $147 Billion AnnuallyObesity Costs U.S. About $147 Billion Annually

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Diabetes in Diabetes in USUS

Total:Total: 23.6 23.6 million children and adults in million children and adults in the United States—7.8% of the population—the United States—7.8% of the population—have diabetes.have diabetes.

New Cases:New Cases: 1.6 1.6 million new cases of million new cases of diabetes are diagnosed in people aged 20 diabetes are diagnosed in people aged 20 years and older each yearyears and older each year..

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Rice Fits Today'sRice Fits Today'sHealthful Eating Healthful Eating ProfileProfile

RICE IS HEART HEALTHYRICE IS HEART HEALTHY - The FDA - The FDA says that diets rich in whole grain foods says that diets rich in whole grain foods such as brown rice may help reduce the such as brown rice may help reduce the risk of heart disease and certain cancers.risk of heart disease and certain cancers.

Eat Brown Rice to Manage Diabetes

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Rice in Rice in VietnamVietnam

In 2009, In 2009, Vietnam Vietnam surpassed surpassed

Thailand as Thailand as the rice the rice number number

1 exporter1 exporter

In 1999, Thailand, Vietnam, and India In 1999, Thailand, Vietnam, and India held on to the world's top three rice held on to the world's top three rice export market share.export market share.

In 2007, Vietnam In 2007, Vietnam held the position held the position No 2No 2

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SegmentationSegmentationMarket SummaryMarket Summary

Age2 – 19 years old

20 and older

Women

Men

Rice Forms

Rough (Paddy) Rice

Brown Rice

Regular Milled White Rice

Parboiled Rice

Precooked Rice

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Segmentation Segmentation (continue)(continue)

Market SummaryMarket Summary

Regions

Northeast 131gr/day

South 79gr/day

Midwest 60gr/day

West 146gr/day

Racial/Ethnic Group

White, non-Hispanic 76%/55gr

Black, non-Hispanic 11%/118gr

Mexican-American 4%/124gr

Other Hispanic 4.8%/303gr

Other 3.9%/633gr

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Targeting Targeting

Nationally

Black, non-HispanicMexican-American

Other HispanicOther

White, non-Hispanic

All Ages

Vitamin E, Thiamin, Riboflavin, Niacin, Vitamin B6, Folacin, Potassium, Magnesium, Iron and over dozen other nutrients

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Market needs, trends and Market needs, trends and growthgrowth

0

500

1000

1500

2000

2500

3000

3500

4000

4500

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

Series1

U.S. rice U.S. rice consumption is on consumption is on the upswingthe upswing

U.S. rice U.S. rice consumption is consumption is about 4 million about 4 million tones per yeartones per year

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SOWT analysisSOWT analysisS: S: - Quality Management Quality Management

AbilityAbility- Production CapacityProduction Capacity- Competitive PriceCompetitive Price- Marketing TechnologyMarketing Technology

O: O: - Diabetes & ObesityDiabetes & Obesity- Large PopulationLarge Population- Food Culture/CrisisFood Culture/Crisis- Rice farming is a high-Rice farming is a high-

cost, high-yielding, cost, high-yielding, large-scale in U.Slarge-scale in U.S

W:W:- Market UnderstandingMarket Understanding- Chemical Use in Chemical Use in

AgricultureAgriculture- Inventory management Inventory management

& Technology& Technology

T:T:- Local rice agriculture Local rice agriculture

expansionexpansion- ProtectionismProtectionism- Import Taxes Import Taxes

regulationsregulations

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CompetitionCompetition

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Medium Grain Rice Medium Grain Rice Short Grain Rice Short Grain Rice Brown Rice Brown Rice

CompetitionCompetition Organic Rice Organic Rice Sushi Rice Sushi Rice Sweet Rice Sweet Rice

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Arkansas Rice Mills, LLC Arkansas Rice Mills, LLC P.O. box 2398 P.O. box 2398 Jonesboro, AR 72402 Jonesboro, AR 72402

CompetitionCompetition

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CompetitionCompetitionOur main competitors Our main competitors (continue)(continue)

American Rice, Inc. 10700 North Freeway, Suite 800

Houston, TX 77037 US

Associated Rice Marketing Cooperative P.O. Box 1180 Durham, CA 95938 US

Beaumont Rice Mills, Inc.

P.O. Box 3111 Beaumont, TX 77704-3111

US

Bertrand Rice

10105 Seward Ln.

Elton, LA 70532

US

Connell Rice & Sugar Company 200 Connell Dr. Berkeley Heights, NJ 07922 US

Cormier Rice Milling Co., Inc. P.O. Box 152 DeWitt, AR 72042-0152 US

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Product & PackagingProduct & Packaging

0,5Kg 1Kg 2Kg 5Kg 10Kg Tones

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PositioninPositioningg

Highest quality and safest quality rice for the shake of our customers’ healthy life

Good relationships with American importers, retailers, and Vietnamese rice growers, brokers and wholesalers.

Superior product offering because of our purchase from growers who rely on the regulated use of chemicals and pesticides (less than two percent of the time) and of the high conservation technology

AQUAAQUARICERICETMTM

Since 4000 BCSince 4000 BC

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Brand Idea & DriverBrand Idea & Driver

Water = Aquatic + Rice = AquariceWater = Aquatic + Rice = Aquarice

- Origin country of product: number 1 rice producer and exporterOrigin country of product: number 1 rice producer and exporter

- 4000 year “aquarice” culture practice4000 year “aquarice” culture practice

- Rice and Water PuppetsRice and Water Puppets

- Healthy function of product: good good & cheap cheap “nothing is Healthy function of product: good good & cheap cheap “nothing is as harmless as riceas harmless as rice

- Low calories brown rice rich in mineral and vitaminsLow calories brown rice rich in mineral and vitamins

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PricingPricing

Market-Penetration Pricing: lowest price Market-Penetration Pricing: lowest price in the marketin the market

Value-Based Pricing: good quality rice + Value-Based Pricing: good quality rice + exceptional assistance service (use exceptional assistance service (use guide, cultural feature)guide, cultural feature)

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Distribution Distribution ChannelsChannels

Local MerchantsRice Growers

Eagle Warehouses

Importers

Retailers

Wholesalers

Restaurants

Customers

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PromotionPromotionss Free ticket at Asian Free ticket at Asian

RestaurantRestaurant

Rice cooker offered for Rice cooker offered for high quantity dealhigh quantity deal

Free tour to VietnamFree tour to Vietnam

Rice use free guidance Rice use free guidance through gastronomic through gastronomic festival & contestsfestival & contests

Quantitative discountsQuantitative discounts

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Communication Communication mixmix

Message: Quality rice with high nutritious, cultural and historical features at very low price

Events: seminars, food festival and contest, combined with Vietnamese cultural and trade event in U.S along the year.

Partnership with Vietnamese student in U.S

Free samples

Advertising 50% online (Internet) 10% at Pharmaceutical shops (for brown rice only) 20% at Asian stores 20% at others retailers (Walmart, Sam Club etc)

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Sales ForecastSales Forecast

Sales forecast (tones) 2010 2011 2012 Brown Rice (tones) 5,00 1,000 1,500 White Rice (tones) 1,000 2,000 3,000

Sales forecast (USD) Brown Rice (USD) 450,000 900,000 1,350,000 White Rice (USD) 700,000 1,400,000 2,100,000 Total 1,350,000 2,300,000

3,450,000

Contribution Margin 418,500 759,000 1,138,500 Contribution Margin/Sales 31.00% 33.00% 33.00%

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Marketing Expense Marketing Expense BudgetBudget

Marketing Expense Budget 2010 2011 2012 Printed sales materials $20,000 $0 $0 Business development $4,550 $6,000 $8,000 Advertisements $50,000 $150,000 $250,000 Website $15,000 $12,000 $12,000 Others

Total Expenses 89,550 168,000 263,000

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Contingency Planning

Difficulties and Risks Problems developing brand awareness.

Difficulty obtaining the highest quality input.

Issues involving importation of the rice into the US

Worst Case Risks Include Determining that the business cannot support itself on an ongoing basis.

Having to liquidate equipment or intellectual property to cover liabilities.

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THANK YOU THANK YOU

& &

CAM ON CAM ON NHIEU!NHIEU!