Imaobong Essien

Dosan Brewery Dosan Brewery Business Plan Business Plan CONFIDENTIAL 5/7/2021 VANCOUVER, BC, CANADA CONFIDENTIALITY AGREEMENT The undersigned reader acknowledges that the information provided by Dosan Brewery in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Dosan Brewery. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Dosan Brewery. Upon request, this document is to be immediately returned to Dosan Brewery. Signature Dosan Brewery. Name (typed or printed) 7th July 2021 1|Page Table of Contents Confidentiality Agreement............................................................................................................................ 1 1 Executive Summary ............................................................................................................................... 5 1.1 Business Overview ........................................................................................................................ 5 1.2 Our Vision and Mission Statement ............................................................................................... 6 1.3 Management Summary ................................................................................................................ 6 1.4 1.3 Business Targets done............................................................................................................. 7 1.4.1 1.3.1 Non-Financial Targets .................................................................................................. 7 1.4.2 1.3.2 Financial Targets .......................................................................................................... 7 1.5 2 1.4 Keys to Success ....................................................................................................................... 8 Company Overview ............................................................................................................................. 10 2.1 Registered Name And Corporate Structure ................................................................................ 10 2.2 The Financing .............................................................................................................................. 10 Company Location And Resources.......................................................................................................... 10 3 2.3 Our Core Values .......................................................................................................................... 11 2.4 Our Corporate Social Responsibility in Action ............................................................................ 12 2.5 Business Model Canvas ............................................................................................................... 12 Products .............................................................................................................................................. 14 3.1 4 Product Description and Pricing ................................................................................................. 14 Market Analysis ................................................................................................................................... 15 4.1 Market Trends ............................................................................................................................. 15 2|Page 5 6 4.2 Customer overview ..................................................................................................................... 17 4.3 Vancouver Demographics ........................................................................................................... 19 Business Strategies.............................................................................................................................. 22 5.1 Sales Strategy .............................................................................................................................. 22 5.2 Marketing Strategy and Implementation ................................................................................... 22 5.3 Risks and Risks Mitigation Strategy ............................................................................................ 27 5.4 Operational Strategy ................................................................................................................... 28 5.4.1 SWOT ANALYSIS ..................................................................................................................... 29 5.4.2 Strengths ............................................................................................................................. 29 5.4.3 Weaknesses......................................................................................................................... 29 5.4.4 Opportunities ...................................................................................................................... 30 5.4.5 Threats ................................................................................................................................ 30 Competitive Analysis ........................................................................................................................... 31 6.1 7 The Porter’s Five Forces .............................................................................................................. 31 6.1.1 The threat of New Entry...................................................................................................... 31 6.1.2 Competitive Rivalry ............................................................................................................. 31 6.1.3 Buyer Power ........................................................................................................................ 32 6.1.4 Supplier Power .................................................................................................................... 32 6.1.5 Threat of Substitution ......................................................................................................... 32 Personnel Plan .................................................................................................................................... 32 7.1 Company Staff ............................................................................................................................. 32 3|Page 7.2 Average Salary............................................................................................................................. 32 4|Page 1 1.1 EXECUTIVE SUMMARY BUSINESS OVERVIEW Makgeolli, once known far back in the 10th century as "farmer drink", the slightly sweet and sour beverage, with 6 to 8% of alcohol volume is the traditional beverage of Korean origin. Over the years, the drink has seen improved recipes, and its nutritional value has triggered improved sales significantly. Makgeolli's surge in popularity at home and overseas is attributed to its acclaimed positive health effects, as well as the trend to promote Korean food and drink globally. People have described Makgeolli as a vitamin and fiber-filled healthy drink, and its consumption is considered as a drink of nutritional supplements. A further look at Makgeolli shows that it contains 80% of water and about 6 to 8% of alcohol. It also contains high levels of lactic acid and lactobacillus bacteria as found in yogurts, as well as dietary fiber aiding digestion while improving the immune system and slows down aging processes. Makgeolli inhibits the growth of cancer cells with its lactic acid content and has anti-complementary effects. However, the functional effects all depend on the type of yeast and the raw material used in preparing the Makgeolli. Makgeolli production in 2009 increased from 260,640 kiloliters to 412,269 kiloliters in 2010. Its production in South Korea spiked at 48% in 2009 and 58% in 2010. The export of Makgeolli hit $52.8 million in 2020, stemming from Japan which absorbed 92% of total exports in 2020, a 211% rise from 2019. Makgeolli producing companies have already debuted the US market debut, and raw materials such as rice, nuruk, fermenting micro-organisms being shipped from Seoul. 5|Page Dosan Brewery is a business that is on a mission to promote the traditional Korean Makgeolli rice wine culture, thus ensuring the production and distribution of the beverage for Korean, Japanese, and other Asian communities in Canada and its environs, as well as globally. The business plans the establishment of a genuine link or trade between itself with consumers through wholesale and retail sales with the sole purpose of creating an enabling environment for benefit in favor of all target markets along with partners and distributors. The Makgeolli being a traditional beverage is sometimes perceived as boring by the consumers. We want to produce a variety of unique flavors for the wine, making it trendy for consumers of all age range to indulge in. The business plans to do these while ensuring a safe environment for the community where we plan to operate from. 1.2 OUR VISION AND MISSION STATEMENT With a mission statement of “Producing a world-class Korean traditional Makgeolli & Sparkling Makgeolli”, Dosan Brewery is a business that is committed to providing premium rice wine for use in the food and wine industry. Also providing our clients with premium products at affordable and competitive prices for our clients far and near. Our mission is to ensure that the Korean and Japanese population and numerous Korean restaurants in the country would buy and consume our wines with convenience. We plan to achieve this by leveraging modern brewing technologies with consideration of the positive impact on the community’s health. We want through our business to not only help people make healthy wine choices but to make our products available at affordable prices thus promoting a better lifestyle for our consumers. 1.3 MANAGEMENT SUMMARY Jeong Hyun Lee is an entrepreneur and is the CEO and founder of Dosan Brewery, saddled with the responsibility of making executive, business management, and administrative decisions as regards the operations and functionality of the company. He will drive the company to achieve its goals and objectives armed with his highly creative, forward-thinking, and strong, hands-on team lead, highly efficient, and results-oriented skills. Jeong Hyun Lee has been brewing Makgeolli for over 10 years and decided to build a company out of it. 6|Page With exceptional knowledge in the industry due to his specialized training in brewing rice wine, he possesses production skills, interpersonal skills combined with a proven ability to drive profitability, manage, deliver sales, and successfully achieve sales growth. This is attributed to years of training and research into the world of the rice wine production industry making him passionate about providing quality wine products for delivery and be the best at it in the industry. He has the responsibility to oversee and decide what goes on in the business, which is in line with the stated goals and objectives, putting his passion, skills, and experience to help Dosan Brewery achieve its best standard and become the first-choice brand of wine for consumers. 1.4 1.3 BUSINESS TARGETS 1.4.1 1.3.1 Non-Financial Targets • To provide a solid foundation for the growth of our business. • To ensure the improved and healthy products for a positive impact on communities within our area of coverage or operation. • To be the best and fastest-growing Korean traditional Makgeolli & Sparkling Makgeolli rice wine brewing company in our industry irrespective of the competition. • To render only the optimum quality of Makgeolli products for our customers as well as impeccable commerce service to our customers always. • To run a profitable and sustainable business with an increasing number of consumers every month. • To increase revenue by limiting expenses. • To achieve the above goals by employing staff and consultants of premium capacity for the business, who will align with the vision and mission of the company and help build an organization we will be proud of. • 1.4.2 • To ensure the availability of our products for all our buyers. 1.3.2 Financial Targets To maintain steady growth in the monthly sales of $20,000 bottles of makgeolli per month within the first 6 months of operation. 7|Page • To generate from $250,000 to $300,000 after the first year of operation from our customers at approximately $11.99 per 940ml bottle. • To achieve a modest initial gross profit margin, increasing that per year until reaching our final target maintaining a solid growth rate per year. 1.5 1.4 KEYS TO SUCCESS We are confident and poised to make this business successful by creating a reliable and steady supply of Korean traditional Makgeolli & Sparkling Makgeolli rice wine, using premium brewing techniques with a focus on our community customers, restaurants, stores, food companies, as well as our buyers from overseas. We aim to record huge success within the first year of operation. To achieve success in our business, we will work with the following keys for our business. Production of Premium Produce We have resolved to produce premium Korean traditional Makgeolli & Sparkling Makgeolli rice wine for purchase and consumption by our customers. The makgeolli wine has been known for generations as a traditional wine, we want to change this concept and believe by brewing our brand of rice wines with innovation and creativity. With this, we are confident of building and sustaining brand loyalty among our customers as we are confident of the exotic and variant flavors, coupled with the premium quality of our products. Brand loyalty when attained from our customers and consumers would in turn command higher sales for our business. Marketing and Promotion done The success of our business is centered on rigorous and targeted marketing and promotion by offering fair pricing for our products against our competition in the industry. This will be achieved through a concentrated effort on marketing using all media (printed and electronic). This, we are confident will increase the popularity of our services and the rate at which our potential customers begin to patronize us. 8|Page Attract Local Support With years of experience and research on the workings and demands of the industry, and opportunities offered by the industry as well, the company is confident of being ahead of the competition in the market because of the quality of service that we plan to offer. We plan to engage and obtain the support of our community by making sales directly to them. This would attract and sustain local support for our business and will help us to do our job right and efficiently. Secure Sales Contracts with Local Markets Our target clients are customers from the community, restaurants, food stores, and wine and liquor companies. We aim at securing sales contracts for our products with local grocers or vendors, restaurants, and major or large markets that require our products regularly and in large quantities to be sold on our behalf. The advantages of this arrangement would include less transportation of our products while making supplies to our customers and protect us from uncertainties that are peculiar with the industry. Proactive to Issues We will always anticipate issues that may likely arise and be proactive in solving those issues as anticipated. These include risks, faults, and limitations that would be anticipated and handled even before they emerge or are reported to us. Active Social Media Presence Our business will establish our presence on social media platforms to draw the attention of people to our wine production and sales services. We will also ensure to establish a form of interaction using these mediums to ensure the establishment and sustenance of relationships with our customers. With this, we are sure of good successes in the first year in business and years to come. 9|Page 2 COMPANY OVERVIEW 2.1 REGISTERED NAME AND CORPORATE STRUCTURE The Makgeolli rice wine business, Dosan Brewery is not yet registered but shall be incorporated under the corporate laws of Canada as incorporation. For this business plan, the business would be treated as a start-up. 2.2 THE FINANCING The company shall have its financing for the operation of the brewery and the sale of the wine produce onsite from personal sources to the amount of $30,000. This funding will cover a part of the start-up expenses. Another major source of financing would be a bank loan from the Canada Small Business Financing Program (CSBFP) – Sharon’s Credit Union, where we are seeking $200,000. This will cover all the startup expenses and will maintain the forward operations of the business. The business plans to expand its operation from a locally based service to a company with international coverage as we plan to reinvest 90% proceeds within the first year to the business. The funding obtained from the sale of our products will be crucial in the expansion process and increase coverage. COMPANY LOCATION AND RESOURCES Dosan Brewery is a startup company that would be in Vancouver, Canada. Being a wine production business, our operations are based predominantly on our brewery site. From our site, we would produce traditional Korean Makgeolli and Sparkling Makgeolli rice wine and make these available to our customers through direct sales. Considering the tax, government policies, and economic viability of businesses in Canada, our location provides a favorable condition for our business. In essence, our environment will facilitate smooth business operations and will further quicken our expansion to export our products to other countries. 10 | P a g e 2.3 OUR CORE VALUES Our vision, culture, and identity in the industry all stem from our core values. These values hold our beliefs and philosophy for transacting business, furthermore, they help us make the best decisions for the growth and sustenance of our company. Encourage Innovation Integral to our vision to become a leading business in rice wine brewery, we embrace innovation as a tool to achieve that. With the willingness to make things better each day, we respect and value the knowledge, skills, ideas, and capabilities while encouraging creativity and the development of new ideas. Integrity Integrity is the foundation for business success, and this forms the bedrock of our values where we are poised to be transparent in our dealings with all our customers while treating them fairly. We build trust by communicating often in honest, open, and responsible ways. We believe that we are successful if our customers are satisfied with our products. Commitment to Sustainability Meeting our customer’s satisfaction and exceeding their expectations is our commitment. We intend for our customers to derive satisfaction from our brand of rice wines through our business, and this we execute through innovation and drive for excellence. We earn the right to do business with our customers by creating value and delivering results. We continually strive to do more to create a stable and environmentally sustainable business. We shall also endeavor to reduce negative imprints on the environment where we operate. Customer/Consumers’ Satisfaction We are customer or consumer centric. This means that our customers are the essence of our business. The continual strive to exceed customers' expectations is our drive by offering high-quality products along with exceptional customer service. We expect customer feedback and listen or treat carefully with courtesy. 11 | P a g e Ethical Behavior We believe in conducting business with good ethics, making it clear that being a transparent, sincere, honest, and decent human being takes precedence over everything else. 2.4 OUR CORPORATE SOCIAL RESPONSIBILITY IN ACTION We understand that our business decisions and the methods by which we produce our products affect not only our organization, but also the communities, and environment that support our lives and business operation. With this great knowledge and a resolve to ensure that our efforts meet the needs of the present, and do not deprive future generations of their ability to meet their own needs, our Corporate Social Responsibility strategy demands that we responsibly run our business and ensure its long-term sustainability. We believe that the communities in which we operate should benefit from our presence. 2.5 Key Partners ▪ Advertisers ▪ Service partners BUSINESS MODEL CANVAS Key Activities ▪ ▪ Brewing and Value Proposition sale of ▪ Provision of best- Makgeolli. in-class Availability and distribution of traditional products Makgeolli to our target customer segments. Korean Customer Relationship Segments ▪ Company’s location & Sparkling Makgeolli Customer Steady supply for ▪ Restaurants ▪ Department Facebook, for Instagram, etc. products. Key Resources Wholesale stores increasing demand ▪ Vendors networks: YouTube Individual buyers Social wine. ▪ in Vancouver. ▪ rice ▪ ▪ Wine/Liquor companies Channels 12 | P a g e ▪ ▪ Human resources: Innovative methods Jeong Hyun Lee - Director Google ▪ Social increasing sales, and ▪ for ▪ Network product Platforms delivery Computer/Technological experience. ▪ resources: Organic Word of mouth Computer ▪ Internet Email Marketing Telephone Email Cost Structure ▪ Marketing, Revenue Streams Advertising, and ($1000/month) ▪ Salary ($ 5000/month) ▪ Rent/lease Expenses ($4000) ▪ Business Insurance ($650) ▪ Tax Rate (12%) ▪ License and Permit ($60) ▪ Lease of Delivery Van ($400/month) Promotion ▪ Money invested by the director. ▪ Money realized from the bank loan. ▪ Money reinvested from sales within the first year of operation. 13 | P a g e 3 PRODUCTS Dosan Brewery leverages Makgeolli brewing methods in the production of traditional rice wines for consumption by the demography of people who are of Korean or other Asian descent who demand for this beverage. We are particular about the consequences of our operations on the environment, hence our decision to adopt an environmentally friendly approach to our wine production. 3.1 PRODUCT DESCRIPTION AND PRICING Dosan Brewery's first line of products will be the Korean traditional Makgeolli & Sparkling Makgeolli wine, made with the Maepssal or Haepssal rice. The wholesale price for our wine production will be $6 for a bottle for our wholesale buyers, while it will be sold at $11.99 for our regular buyers. However, these prices are dependent on the price of rice. 14 | P a g e 4 4.1 MARKET ANALYSIS MARKET TRENDS Korea’s CPI: Common rice wine (Makgeolli) from May 1, 2017, to April 1, 2018. With the growing popularity of Makgeolli among the Asian community globally (especially young people), new generation companies are spicing up this traditional Korean beverage to appeal to customers. From 2012 to 2016, the size of Korea's Makgeolli market was about 300 billion won (about $265 million) and grew to 450 billion won last year, according to Korea Agro-Fisheries & Food Trade Corp. (aT). In 2018, the sales of Makgeolli based on the age group of people in their 20s was 3.5%, this statistic rose to 6.3% in 2020 according to CU. Makgeolli sales to people in their 30s increased from 5.4% in 2018 to 9.3% in 2020 as well. The total value of Makgeolli sales is on a steady rise from 2017 to 2019 at 853.6 billion won ($762 million), according to data provided by Euromonitor International Korea. For the Kooksoondang Makgeolli company, exports of Makgeolli in January and February of 2021 stood at $1.46 million, up 56.9 percent from the previous year. This was due to the increase in Makgeolli demand because of Covid-19 vaccinations and purchases by locals overseas, as the beverage is known to have health benefits on consumption. 15 | P a g e Exports of Makgeolli to Southeast Asian countries, except for Vietnam (due to its exceeding rapid growth) had a 201.6% increase. While exports to Vietnam was 120.8%, and export to China was 74.6%. The United States had a 73% increase in export in 2021. This export of the Makgeolli beverage saw a huge increase despite the struggles faced by the Kooksoondang Makgeolli company because of the Covid-19 pandemic. The company attributed this increase in export to the development of new products (flavors), and the government support which helped the sales of the products online. The Makgeolli has been known for generations as a traditional drink that is usually brewed at home in the kitchen. However, with younger drinkers emerging as important customers, Makgeolli manufacturers are giving the drink a facelift by lowering the alcohol content, as well as integrating the products with trendy twists to appeal to the younger consumer market. The Jangsoo Makgeolli brand, made by Seoul Takju, Korea's largest Makgeolli manufacturer, changed the traditional green-colored bottle to a transparent one. They added the 'shipjangsaeng' term which refers to the ten symbols of longevity on their Makgeolli label. This served as a fun abbreviation for the longevity of ten days, emphasizing Makgeolli’s short shelf-life of 10 days. Because of the drink’s ten-day life span, other brands are making their drinks easily accessible to customers by ensuring doorstep delivery of the product. Baesangmyun Brewery initiated the same-day delivery service in the Seoul and Gyeonggi areas. They also support subscription services for its customers and delivers Makgeolli to them every month. Kooksoondang, Korea’s third largest Makgeolli maker, reported an increased record of exports in the first two months of 2020. 16 | P a g e 4.2 CUSTOMER OVERVIEW Unofficially, Korean communities in Vancouver are designated as Koreatown, due to the abundant population of business districts developing into a Korean community. With 53,770, 49,880 of those living in Vancouver and the surrounding area, Vancouver, British Columbia is the second largest Korean community in Canada. This Korean community in Vancouver is located between Nicola and Denman Street and is known for the numerous Korean restaurants as well as other businesses. From the South Korean Ministry of Foreign Affairs and Trade 2007 figures, it showed that persons of Korean descent as Canadian citizens were 86,084, with 72,077 permanent residents, and 20,738 people on student visas, while it had 19,271 people as temporary residents. Meanwhile, the Canada 2001 Census recorded 101,715 Canadians of Korean descent. Chart representing percentage in the population of ethnicity in Vancouver. 17 | P a g e A simple Google search for Korean restaurants in Vancouver, BC showed 3,330,000 results. The restaurants usually offer dine-in, takeaway, and sometimes delivery. This is indicative of a robust market for our Dosan Brewery Makgeolli rice wine as it is the Korean culture to have their meals along with a Makgeolli drink. 18 | P a g e 4.3 VANCOUVER DEMOGRAPHICS 19 | P a g e As of 2016, Vancouver had a population of 631,486 according to the Canadian census. The city witnessed a 0.91% growth rate from 2011 where its population stood at 603,502. In 2020, the city had a population of 2,737.7 and is the third-most populous city in Canada according to Statista.com. With an average age of 41.6 and a median age of 39.9, Vancouver is the most densely populated city in Canada and has more than 5,249 people per square kilometer. This makes the city the 4th most densely populated city in North America. 20 | P a g e The city has an average income of $50,317, and $32,964 as median Income. Often called a city of neighborhoods, Vancouver has distinct ethnic mixes, each with its peculiar neighborhood. The English, Irish and Scottish origins are the largest ethnic group in Vancouver, while the Germans are the second-largest European group. The Chinese ethnic group follows closely as the next largest visible ethnic group. Some of the widely known ethnic neighborhoods in Vancouver are Chinatown, Little Italy, Greektown, and Punjabi Market. Immigration into Vancouver brought a transformation in the city in the 1980s. Many people immigrated from Hong Kong during the anticipation of sovereignty transfer to China period, thereby making Vancouver one of the highest concentrations of ethnic Chinese people in North America. Other major Asian groups in Vancouver are South Asians (primarily Punjabi). They have large groups of 5.7% Indo-Canadian, 5.0% Filipino, 1.7% Japanese, 1.5% Korean + Vietnamese + Indonesian + Cambodian. Worthy of mention is a sizable 11,000 population of aboriginal people in Vancouver, and a large gay community in the West End neighborhood. The official spoken languages in the city border around English with 87.2% of speakers, 7.2% of people who speak English and French, 5.6% of the population who speak neither English nor French, and 0.1% of the population who speak only French. 21 | P a g e 5 BUSINESS STRATEGIES 5.1 SALES STRATEGY Dosan Brewery, the sales process for our Makgeolli wine products would be through wholesale marketing mainly. Shipments will be delivered by contract carriers in special vessels and will be continued as demanded by our wholesale marketers. We would leverage the use of e-commerce marketplaces like Amazon, eBay, and Walmart to sell our products, which would allow for further distribution of our products. Having determined that the demand for traditional Korean Makgeolli and sparling Makgeolli wine by persons residing in Vancouver and its surrounding area is large. This includes the Korean and Chinese communities, as well as other persons who like to indulge in drinking the Makgeolli, this makes our business outstanding. We would establish our product portfolio and use this in all our marketing campaigns as indicated in our marking strategies section. Since our business is on-site structured, we, based on our marketing plan would drive excitement about the business by building creating an engagement and anticipation for the release of our products on our social media handles, as well as email subscription for our newsletters. Here we would gather a list of email contacts for use in further email marketing, inviting them to follow our business on our social media accounts. This strategy would generate traffic to our business’ social media account, and as well generate leads for orders and purchases to be made. 5.2 MARKETING STRATEGY AND IMPLEMENTATION OFFLINE ONLINE • Involvement of broadcast media • Online Presence • Word of Mouth Marketing/Referral • Content • Print Media Creation on social media platforms • Social Media Marketing 22 | P a g e • Email Marketing ACTION: Involvement of broadcast media TIMEFRAME: This should be done monthly. CHANNELS WHAT IS INVOLVED • Tv stations/network • • Podcasts • Radio stations EXPECTED RESULTS Implement marketing • communication to the target • audience. Create brand awareness. Build momentum for the business launch. • Create anticipation for the • Establish a customer base business’s launch by a press release. ACTION: Online Presence TIMEFRAME: This should be updated every day. CHANNELS WHAT IS INVOLVED • Social Media Accounts • • Listings Creating engagement profiles • on Social Media platforms – and EXPECTED RESULTS Build a stronger brand. • Increase credibility. etc. • Brand visibility Build an email list. • Increase communication and Facebook, Instagram, YouTube, Directories • interaction. • Increase prospective sales leads. • Increase sales revenue. 23 | P a g e • Faster awareness for users of the brand. ACTION: Content Creation on social media platforms TIMEFRAME: This should be done at least twice a week CHANNELS WHAT IS INVOLVED • Social Media Accounts • • Listings EXPECTED RESULTS Create promotional articles for • the site’s visitors to encourage and Increase brand awareness. • Improved brand loyalty. • Better ranking of the site. visits to shop our products. Directories • • Creative use of keywords and tags that match with what our • Better visibility through organic prospective searches on search engines. customers are searching for. • Increased app downloads. Regular update of contents • Better customer satisfaction. ACTION: Email Marketing TIMEFRAME: This should begin after the first month of marketing plan execution. CHANNELS • Company’s WHAT IS INVOLVED • Emailing platform. EXPECTED RESULTS Obtain database and emails of • online social media subscribers. • Better participation. • Improved engagement. • Boost support. • Loyal supporter base. latest • Reinforced credibility. Develop intriguing content and progress updates. • Keep subscribed followers up to date with the 24 | P a g e happenings and promote social sharing events. • Integrating buttons into emails • Maintain correspondence periodic with newsletters to email contacts. ACTION: Social Media Marketing TIMEFRAME: This should be done weekly and be reviewed continuously. CHANNELS WHAT IS INVOLVED • Google page. • Social Media Accounts. • Other Web pages as suggested by Google. • Setting up a Google Ads • Creating Ads (Video, Image, • EXPECTED RESULTS • Build strong brand awareness. or text). • Increased engagement. Run Ads on social media • Improved visibility of the platforms. brand. ACTION: Print Media TIMEFRAME: This should be done before the launch of the business and subject to review at least twice a year. CHANNELS WHAT IS INVOLVED EXPECTED RESULTS 25 | P a g e • Brochures • Flyers • • Printing of materials with the company's name, logo, Newspapers business authority and credibility. contact information, and • Establish • Increase brand awareness. • Improved description. • Distribution and placement brand popularity. of materials at strategic • points like malls, gyms, and • Business visibility. other public places. • Build Trust. Advert placement on local, daily, or weekly newspapers. ACTION: Paid promotion TIMEFRAME: This should be done monthly CHANNELS WHAT IS INVOLVED • Google AdMob • • Influencer Marketing EXPECTED RESULTS Promote the business through • paid campaigns with Google. • Engage social • Increase marketing reach. Improved brand exposure. media influencers to promote the business and attract customers. 26 | P a g e 5.3 RISKS AND RISKS MITIGATION STRATEGY With a risk management approach, we will proactively and constantly examine potential challenges and manage them thoroughly. TYPE OF RISK RISK MITIGATING STRATEGY DAILY OPERATIONS Risks from daily operations include • Being always aware to check but are not limited to faulty equipment as well as all equipment, machinery in use. hazards from machinery, packaging problems, • injuries due to slips and falls on wet Having proper small business insurance coverage. floors, hot surfaces, or steam during brewing processes, inflammable chemicals. COMPETITION There are existing Makgeolli wine- • producing businesses to reckon with. There is the likelihood of not for sale. • reaching our goals (declining sales Adopt new, effective revenue and margin) due to competition. Always have products in stock fresh, and marketing strategies. • Conduct regular competitor analysis. • Engage credible partners and distributors. • Produce exciting and exotic rice wines that would stand out from the competition. FINANCIAL Insufficient funding to operate at an expected level and maintain • Practice proper and strategic cash flow management 27 | P a g e solid business operations. Loss of • profit, poor cash flow, low sales Create a budget that factors in overhead costs and reduces expenses. • Adopt an ideal pricing strategy. CUSTOMER FEEDBACK AND There will be instances where there DISPUTES • are disputes on orders or negative feedback (this can only be anticipated). Have top-notch customer service. • Listen closely to what the customers say to improve on our services. 5.4 OPERATIONAL STRATEGY Our operational strategies are the methods that we will use to reach their objectives. These strategies would help our company examine and implement effective and efficient systems for our business using resources (personnel and financial) and the work processes as well as help us create effective management for the business. Our strategies are Customer-driven strategies to meet the needs and desires of our target market, as well as developing our core competencies. These core competencies of our business are the features that make us unique in the industry. We consider these our strengths and resources within the company. Also, as part of our operational strategy would be product and service development. It is the strategy behind the uniqueness of our products and sales services. 28 | P a g e 5.4.1 SWOT ANALYSIS The SWOT analysis evaluates the Strengths, Weaknesses, Opportunities, and Threats of our business. We aim at aligning our strategies with the realities of our business environment to: • Grow and sustain our business on our strengths. • Welcome new opportunities and take advantage of those opportunities. • End or abolish our weaknesses. • Counter threats. We understand that the business environment is dynamic, and SWOT analysis is a dynamic tool as well. It must be systematically analyzed if our business experiences growth problems, or if our business is failing to meet our goals and objectives. This would help us to decide how the balance of strengths, weaknesses, opportunities, and threats may be adjusted. 5.4.2 • Strengths Excellent knowledge and experience in Makgeolli brewing: We are deeply experienced and knowledgeable in the industry with unique and fresh innovations and are poised to provide all categories of customers with the best Makgeolli rice wines for consumption. • Extensive advertising and marketing: We will undertake extensive advertising and marketing, promoting both our business and our brand within our local community of operation. Hence, an aggressive and focused marketing campaign with clear goals and strategies is one of our priorities. • Fresh name in the market: Being a new name in the industry gives us the edge in attracting and sustaining new customers as they all anticipate better services as compared with the old names in the market. 5.4.3 • Weaknesses Newness in the market: This has been addressed as described in the marketing section of this plan. 29 | P a g e 5.4.4 Opportunities • Establish new partnerships and maintain the same. • Strive to develop our brand with innovative flavors to stand out from what is obtained from existing brands. • Explore new target markets and form partnerships. • Build a global influence and engage in seasonal business trends as applicable in the industry. 5.4.5 • Threats Competitors emerging: We will always have to compete with others; therefore, we plan to monitor closely all new trends on the market and industry and then scale up accordingly to new changes and trends. • Evolution of businesses: As consumer shopping behavior continues to evolve, especially after the Covid-19 pandemic, it is hard to predict how shopping trends will evolve as it is evident in the growth of e-commerce in recent times. • Referrals: We will encourage referral programs by incentivizing all categories of our customers to spread the word to other prospective customers to increase our customer base as well as increased sales. • Reviews: Include reviews from actual buyers of our product on the product page of our social media platforms. 30 | P a g e 6 COMPETITIVE ANALYSIS Based on the creation of our corporate strategy, defining our core processes, along with the market analysis for our business, we evaluate our operational costs, the quality of our products and product sales/delivery, regarding variety, volume, and customization with the target of consistency in meeting the needs of our consumers. 6.1 THE PORTER’S FIVE FORCES The Porters’ Five Forces tool would help us to understand the competition in the Makgeolli wine industry. It will also help to identify the profitability of our strategies. These forces will also adjust our strategies as well by taking advantage of our strong points for increased profitability. 6.1.1 The threat of New Entry Makgeolli wine consumers in different communities are already acquainted with the existing Makgeolli brands, and they have brand loyalty for these. We understand that these existing companies have interesting features that make customers loyal to them. However, we do intend to get our users acquainted with our simple and ingenious brand as well as the partnership opportunity that is being offered by our business to wholesalers and retailers. We will leverage targeted advertisements that are aimed at getting all our target customers to know the benefits of allowing us to serve them. 6.1.2 Competitive Rivalry Our business has been modeled from an existing industry of Makgeolli wine production and supply. We have identified some companies that serve as direct competitors to our business. Some of these companies have been in the industry for many years and are way ahead. However, we have chosen some strategies which will be used in our favor to ensure our relevance in the industry and to stay ahead in the competition. Our targeted partnership with wholesalers, restaurants, etc., will give us an edge over our competition. 31 | P a g e 6.1.3 Buyer Power Our prices are reasonably structured to be within the confines of fair prices chargeable in the industry. We aim for the affordability of our products for all our target customers. 6.1.4 Supplier Power For our company, we do require suppliers of rice to be brewed, nuruk (starter culture), dry yeast, and sugar for making our wine. Furthermore, we will require consultants for accounting and legal services who would all be contracted. 6.1.5 Threat of Substitution The threat of substitution cannot be overlooked in analyzing the possible success or failure of our business. The fact that people have embraced and still consume, and the demand for Makgeolli wine is high is a clear indication that the threat of substitution can be ruled out in this business. Hence, we are not moved or deterred by the fear of substitution. 7 7.1 PERSONNEL PLAN COMPANY STAFF As a startup business, we shall begin our business operations with one personnel, which is the director, Mr. Jeong Hyun Lee. 7.2 AVERAGE SALARY The average monthly salary that has been budgeted for the business is $5,000. This is the total amount of money expected to be spent monthly on salaries as a compensation package. 32 | P a g e