fin202 group assignment group 4

Product:- Custom sneakers- Sneakers cleaning liquid- Specialised brush set for cleaning sneakers comb and brush- Wet wipes to clean sneakers- Waterproof nano spray- Sneaker deodorant spr

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LECTURER: TRAN NGOC KHANH VYSUBJECT: FIN202

CLASS: MKT1605 - GROUP 4

Tran Trieu Vi | Hoang Ngoc Ha | Vo Thi Uyen NghiHoang Trung Kien | Le Trung Tin | Nguyen Nha Quynh

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I Introduction: 4

II Product plan, marketing plan, management plan, operating plan 5

3.2.6 Net Present Value, Internal rate of return, Payback Period, Discounted

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I Introduction:

1.1 Business name and slogan- Name: Shoenique

- Slogan: Use Shoenique, Be Unique

1.2 Form of Business OrganisationPartnership

1.3 Location

Headquarter: 2 D1, Ward 25, Binh Thanh District, Ho Chi Minh City

1.4 Main servicesProviding sneaker customizing

1.5 Mission and vision

- Mission: The mission of Shoenique is to provide consumers around Vietnam withreasonable, stylish, unique sneaker customization for every kind of sneakers.- Vision: Shoenique’s vision is to become a leading brand in Vietnam for sneakercustomization by achieving our goals.

1.6 Founding members- Tran Trieu Vi

- Vo Thi Uyen Nghi- Hoang Ngoc Ha- Nguyen Nha Quynh- Hoang Trung Kien- Le Trung Tin

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II Product plan, marketing plan, managementplan, operating plan

2.1 Product/ Service Plan:

2.1.1 Product:

- Custom sneakers- Sneakers cleaning liquid

- Specialised brush set for cleaning sneakers (comb and brush)- Wet wipes to clean sneakers

- Waterproof nano spray- Sneaker deodorant spray

- Combo sneaker cleaning (including shoe cleaning liquid, brush set dedicatedto cleaning sneakers)

+ For Self Design, users will enter their shoe brand, the website willprovide a 3D model of the shoe form, users will be provided with aselection of 24 colours, they can draw on this model or use evocativetextures ideas on the web to complete their manuscript.

+ In case the customer's shoe models are not on the website, thecustomer can call the hotline number on the web, chat directly with the

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support staff on the website and fanpage on Facebook to receivesupport and advice Customers will then be asked to submit pictures oftheir shoes If it is a custom shoe model, the customer can send theshoe to the store, we will use a 3D form scanning device and then thecustomer can go through the custom options on the website.+ Extended options: Customers can contact consultants through the

website for design support.

2 After completing the custom draft on the website, the custom staff will draw onthe shoes based on the submitted draft.

3 Additional services:

- Shoe cleaning service: mould removal, body staining; remove yellow stains,water-resistant nano spray; glue release glue; Dry cleaning, deodorising.- 6 months warranty policy after customising the shoes in case the shoes are

defective due to the store.

- Support and customer care services via website, fanpage and hotline withinthe store's operating hours.

2.1.3 Price:

Shoes cleaning liquid (100ml) 100.000/bottleShoes cleaning kit (Brush and Cloth) 150.000/packetWet wipes for cleaning shoes 30.000/packetCleaning combo kit (shoes cleaning liquid & shoes

Sneaker custom services 300.000 ~ 1.200.000

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Waterproof nano spray 50,000

Shoe cleaning combo (Washing, drying,deodorizing, water-resistant nano spray)

2.2 Marketing Plan:

2.2.1 Target customer group:

- Demographics:+ Age: 15-30

+ Gender: No distinction

+ Income level: The consumer's income is unrestricted because the businessoffers a variety of prices to suit each customer and each brand of shoe.- Psychographic:

+ Personality: Shoenique is aimed at customers who want to express theirindividuality These people will use shoes as a language to tell everyone thatthey are different.

+ Value: Helping customers own unique shoes with personal style.- Geographic: 5km radius from the shop's address.

2.2.2 Advertising:

2.2.2.1 Traditional Advertising:

- Advertising a bespoke shoe shop through store decor is a reasonablysuccessful type of advertising when it comes to doing business Maintain thestore's aesthetic to entice customers to shop, and create a dynamicenvironment with unique clothing.

- Through signs and slogans: Promote the brand by creating eye-catching storesignage, in addition to combining classic advertising methods such as printingflyers and catalogues and distributing them in congested areas or officezones.

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- Word of mouth marketing is a cost-free method of product promotion thatyields unexpected outcomes Take advantage of relationships such as familyand friends, or ask satisfied customers to submit reviews, comments, andrecommendations about your products and services.

2.2.2.2 Digital Advertising:a Social media advertising:

- Top social networks as a good foundation for custom shoe business:+ Facebook: Online marketing tools are developing and supporting users

with many utilities Advertising on Facebook through the form ofpay-per-click advertising, display advertising, article advertising, quickly helps you attract customers Conduct Facebook ads to optimisecosts and bring efficiency.

+ Zalo, Instagram, : In addition to facebook, post product images onother social networking sites such as Zalo Page, Instagram, to attractmore customers' attention With these channels, use well-groomed andprofessionally invested product images to create attraction andimpression.

+ Forums: Register to advertise in the form of articles or product imageson forums with many potential customers Or posting information,articles about shops and products.

+ Tiktok: Set up a Tik Tok channel to make content about new customproducts, advertise on KOL's links.

- Using celeb, KOL is suitable for the dynamic, unique and personalityimage of the brand such as: Quang Dang, Chau Bui, Fabo Nguyen, to support in terms of image and communication for the product as wellas trademark.

b Advertising on searching tools (Google, Coc Coc, Opera, Youtube,…): Search Ads, Display Ads,

c Website advertising: Suggest custom shoe models, promotions onthe Website homepage.

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2.3 Management Plan:Ownership Structure:

Shoenique is a partnership corporation, with the ownerships, profits and liabilitydistributed based on the capital the individual decided to invest :

The business has 6 owners, and each has the ownership percentages vary from16% to 20%

Employees will include+ Accountant: 1 person+ Custom employee: 2 people

+ Customer Service EmployeesEmployees: 2 people+ Shoes Cleaning Employees: 2 people

2.4 Operating Plan:

The business will start to operate from 8am - 18pm for a whole week.

and will work with two models online and offline, with the following working process:Offline:

- Customers' orders will be taken at the registration table.

- Each orders will be written down as a receipt for each customers in order forthe employees not mistaken the customers order

- We will give comfort to customers by providing air conditioners and seats forclients to wait while their order is being processed in order to improve thequality of our company' customer services.

- After that, employees begin to customise the sneakers, and depending on thetypes of sneakers and designs provided by the clients, each order will take 1to 2 hours to execute.

- Customers will have their orders on the website, providing their personalinformation like name, age, gender, phone number, address, gmail address.- Orders will be received and recorded on a database system that will

disseminate them, as well as the date and time of the order, in order toprovide consumers with information that will be useful for future warranty.

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- Employees begin to customise the sneakers

- After finishing the customise process, the sneakers will be packaged anddelivered to the address that the customers have provided.

2.4.2 Business property:

The property will have an area of 45m, situated at 2 D1, Ward 25, Binh ThanhDistrict, Ho Chi Minh City, a location in the centre of HCM, with a monthly rent of 10million, and the reason we choose this location involves many factors:

+ The stores can attract more customers, raise the potential to grow of our store+ Our services can easily reach our customers due to the convenience of our

+ Plant Decorations

System that create comfortability for customers:+ Sofas

+ Air ConditionersEquipment:

+ Shoe washing machine+ Vacuum cleaner+ 3D Printer

+ Shoe drawing machine+ Dryer

+ Pressure washerMaterials:

+ Paint+ Bleach

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+ Shoe protective coating+ Cardboard box+ Silk shoe bag+ Paper shoe bag

+ Cardboard paper (used to print card visits, warranty cards, …)

of the order

+ After the customization stage is done, employees begin to apply protectivecoating to the sneakers

+ The sneakers will be packaging in Shoenique box and bag

+ The order will be deliver to the address that the customers provide in theirorder

The time frame of the production stage will vary, depending on the models ofsneakers, the design and the number of sneakers the services receive in a day,usually the time will take 2 hours max, with the help of 2 customised machines, for 1day, we can customise from 12 of sneakers.

2.4.4 Delivery services:

After completing the custom process, we support home delivery service forcustomers The price for the transportation is 8000 VND / 1 km In addition, orderswithin 5km will be free shipping.

2.4.5 Warranty

Customers will be warranted for 3 months from the date of service purchase.

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The following cases will be warranted:- Colour on shoes is fading

- The shoes are discoloured without impact

III Financial plan 3.1 Capital Expenditures

3.1.1 Customization equipment expenses

Shoe washing machine 8,000,000 3 24,000,000

Sterilisation and dryingcabinet for Shoes SK -1013

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3.1.3 Depreciation and salvage value

Shoe washing 24,000,000 5 4,800,000 3,840,000

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Sterilisationand dryingcabinet forShoes SK -1013

Equity (own capital) with a cost of capital (rE) of 15%, accounting for 40% ofinvestment capital.

Loans at TPbank (Tien Phong Bank) with loan interest rate (rD) of 11% per year,accounting for 60% of investment capita

Capital Structure

Particulars Amount

Percentage ofTotal

Ordinary annuity principal payments, interest according to thedecreasing balance.

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3.2.1 Debt repayment schedule

In order to ensure that there is enough funding to carry out and maintain operations,the project investor needs to borrow an additional VND 900,000,000 from the bank,with an interest rate of 11%/year, a 5-year loan term, and a payment method Theprincipal is equal, the interest is according to the decreasing balance.

Debt repayment schedule

Total repayment 239,400,000 219,600,000 199,800,000Principal repayment 180,000,000 180,000,000 180,000,000Interest payments 59,400,000 39,600,000 19,800,000

3.2.2 Revenues:

- In the Binh Thanh district of Ho Chi Minh City, there are many high schools,colleges, universities, and companies, so the number of students and workingpeople aged 15–30 has a great demand for cleaning services and shoe care.At this age, young people always want to express themselves, their style andpersonality The shoe custom service will help you satisfy those desires Thiswill be the main customer, the potential customer with abundant demand for

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the project "Shoenique'' Lovers put their ego into the shoes they are wearingthrough their styled images that express their personalities and favorite colorspainted on their shoes I love polishing I polish all the stains on your oldshoes, or simply love to explore and experience new services.- Analysis of input needs and assurance solutions:

+ The number of sanitary shoes in the first year of operation is 7,560 pairs/year,equivalent to 630 pairs/month The number of sanitary shoes increases in thefollowing years of operation.

+ The number of custom shoes in the first year of operation is 168 pairs/year,equivalent to 14 pairs/month The number of sanitary shoes will increase inthe following years of operation.

- The project revenues and expenses in the time given are forecasted based onthe number of target customers that were analysed above Revenue andexpenses each year are based on how many products or services are sold, aswell as how much they cost and how much they cost.

- In addition, we also trade in additional services and by-products, revenueestimates for these by-products and services are as follows:

Shoe protective nano coating

Shoes Deodorise (150 ml) 150,000 bottle 350 52,500,000Services

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Remove yellow stains 120,000 a pair 1200 144,000,000Remove mold, body stains 100,000 a pair 1000 100,000,000Waterproof nano spray 50,000 a pair 1800 90,000,000Revenue from canvas sports

(Washing, drying, deodorizing,

water-resistant nano spray) 120,000 a pair 700 84,000,000

Cleaning combo (shoescleaning liquid & shoes

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Shoe cleaning combo(Washing, drying, deodorizing,

(Washing, drying, deodorising,

YEAR 4

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Product/Service Price Unit Quantity RevenuesProducts

Shoes cleaning liquid (150ml) 100,000 bottle 1470 147,000,000Shoes cleaning kit 150,000 packet 286 42,900,000Wet wipes for cleaning shoes

Cleaning combo (shoes 220,000 combo 1368 300,960,000

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cleaning liquid & shoescleaning kit)

3.2.4 Operating Expenses

Operating Expenses: (Year 1)

List Cost-per-unit Quantity Total CostFixed Cost

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Bleach (bottle) 50,000 366 18,300,000

Wet wipes for cleaning shoes 24,000 366 8,784,000Shoe Protective Nano Coating 180,000 483 86,940,000Shoe Cleaning Liquid: 70,000 483 33,810,000

Shoe Protective Nano Coating 180,000 1080 194,400,000

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Customer Service Employees 5,500,000 2 132000000

Shoe Protective Nano Coating 180,000 1296 233,280

Wet Wipes for cleaning shoes 24,000 3647 87,528

Utilities

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Wifi 300,000 12 3,600,000Electricity & Water 3,607,060 12 43,284,720

Shoe Protective Nano Coating 180,000 1260 226,800

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Shoes Cleaning Kit 100,000 286 28,600

Wet wipes for cleaning shoes 24,000 473 11,352,000Shoe Protective Nano Coating 180,000 692 124,500,000

Inventory

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Shoe Cleaning Liquid 70,000 1330 93,100,000Shoe Protective Nano Coating 180,000 1140 205,200,000

Estimating Net Working Capital Investment

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Inventory 21,824,148 22,974,898 23,122,616Account

Payable 19,458,267 20,484,269 20,615,973Working

Capital 249,710,877 294,635,484 185,583,460Change in

NWC 135,190,682 159,444,802 26,138,658 (185,583,460)

3.2.5 Business Growth Rate:

The value in the business growth rate calculator is the revenue at the beginning andat the end of the accounting cycle.

Estimating business growth rate

Ending Value 1,160,080,000 1,845,920,000 2,201,780,000Beginning

Businessgrowth rate

3.2.6 Free Cash Flow

Estimating Free Cash Flow