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Vietnamese Style Café in Lappeenranta – Imatra Region: a Business Concept Statement and Customers’ Preferences

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Vietnamese Style Café in Lappeenranta – Imatra Region: a Business Concept Statement and Customers’ Preferences Saimaa University of Applied Sciences Business and Culture, Imatra Faculty of Tourism and Hospitality Degree Program in Hotel, Restaurant and Tourism Management Huyen Pham; Khoa Nguyen Vietnamese Style Café in Lappeenranta – Imatra Region: A Business Concept Statement and Customers’ Preferences Thesis 2015 Abstract Huyen Pham; Khoa Nguyen Vietnamese Style Café in Lappeenranta – Imatra Region: A Business Concept Statement and Customers’ Preferences, 94 pages, 4 appendices Saimaa University of Applied Sciences Business and Culture, Imatra Faculty of Tourism and Hospitality Degree Program in Hotel, Restaurant and Tourism Management Thesis 2015 Instructors: Mr.Pekka Mytty, Senior Lecturer, Saimaa University of Applied Sciences The purpose of the thesis was to investigate by studying the theories of business concept statement, different forms of business and legal issues needed for opening a food establishment in Finland as well as creating a practical business concept statement for the real business idea of opening a Vietnamese café in the region Lappeenranta – Imatra of Finland. The aim of the authors was to visualize the business idea of the café for the readers through this thesis work. The information and knowledge used in the thesis were gathered from books, the Internet and the market survey. The thesis started with the basic knowledge relating to Vietnam, Vietnamese coffee, tea and culture. The theoretical section covered the theories of the start-up process in running a business as well as the business concept statement itself. Within the theoretical part, the definition of this statement, its contents and concerns were defined clearly. Empirical work was another important part of this thesis. This part comprised a quantitative market research towards the business idea and a written business concept statement. The study was carried out in both Lappeenranta and Imatra by handing out the questionnaires to the potential customers as well as giving them the samples of possible products sold at the café for testing. The outcome of this study acted as supportive materials for the process of creating the business concept statement. Generally, this thesis is expected to be useful for people who are interested in doing business and are looking for a potential business idea as well as for students considering writing a thesis of related topic. Further study should be implemented for the creation of a business plan from the concept statement made in this thesis work. Key words: Business idea, business concept statement, Vietnamese style café, customers’ preferences 2 Table of Contents 1 Introduction ........................................................................................................ 5 1.1 Aims of the thesis ........................................................................................... 5 1.2 Limitations ...................................................................................................... 5 1.3 Thesis report outline ....................................................................................... 6 2 An introduction to Vietnamese coffee and tea culture ....................................... 6 2.1 Vietnamese coffee and coffee culture ............................................................ 7 2.2 Vietnamese tea and tea drinking culture ........................................................ 9 3 Customer orientation in business planning ...................................................... 11 3.1 Starting a business ....................................................................................... 12 3.1.1 Business idea and business opportunity ................................................... 12 3.1.2 Business concept statement ...................................................................... 13 3.1.3 Legal forms for a business ........................................................................ 14 3.1.4 Agreement of “foodstuffs premises”........................................................... 18 3.2 Customer orientation .................................................................................... 19 3.2.1 Customer behavior .................................................................................... 19 3.2.1.1 Cultural factors ....................................................................................... 19 3.2.1.2 Social factors .......................................................................................... 20 3.2.1.3 Personal factors...................................................................................... 21 3.2.1.4 Psychological characteristics .................................................................. 21 3.2.2 Market segmentation ................................................................................. 23 3.3 Developing a business idea .......................................................................... 27 3.3.1 Competitors’ analysis ................................................................................ 27 3.3.2 Marketing mix ............................................................................................ 29 3.3.3 SWOT analysis .......................................................................................... 33 3.3.4 Five forces framework ............................................................................... 34 3.3.5 Ansoff matrix ............................................................................................. 37 3.3.6 Pricing ....................................................................................................... 40 4 Research method ............................................................................................ 44 4.1 Introduction ................................................................................................... 44 4.2 Quantitative research method ...................................................................... 44 5 Clarification of the business idea for a Vietnamese style café – The first part of business concept statement................................................................................... 45 5.1 About the company ...................................................................................... 45 5.2 Main theme, uniforms for staffs and symbol of the café ............................... 46 3 5.3 Products and services .................................................................................. 48 5.4 Lappeenranta – Imatra as a potential intended market ................................ 50 5.4.1 The region Lappeenranta – Imatra ............................................................ 50 5.4.2 Finnish market ........................................................................................... 51 5.4.3 Russian market ......................................................................................... 53 6 Market research for acknowledgement of potential clients of the café ............ 54 6.1 Survey process ............................................................................................. 54 6.2 Research methods ....................................................................................... 55 6.3 Research results .......................................................................................... 56 6.3.1 Questions concerning basic information .................................................... 56 6.3.2 Questions concerning habits of drinking coffee, tea and going to a café ... 58 6.3.3 Questions concerning customers’ preferences .......................................... 62 6.3.4 Questions for evaluation statement ........................................................... 70 7 Further development of the business concept based on market research ...... 73 7.1 Market analysis ............................................................................................ 74 7.1.1 Market segmentation ................................................................................. 74 7.1.2 Description of typical customer for the café ............................................... 75 7.2 Competitor analysis ...................................................................................... 75 7.2.1 Direct competitors...................................................................................... 76 7.2.2 Indirect competitors ................................................................................... 77 7.2.3 Future competitors..................................................................................... 78 7.3 Marketing Mix ............................................................................................... 78 7.4 SWOT analysis ............................................................................................. 80 7.5 Porter’s five forces application ...................................................................... 82 7.6 Pricing strategy ............................................................................................. 83 7.7 Goals achievement ....................................................................................... 84 8 Conclusion ....................................................................................................... 85 Figures ................................................................................................................... 87 Graphs ................................................................................................................... 88 Tables ...................................................................................................................
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