INTERNATIONAL UNIVERSITY

STRATEGY FORMULATION AND IMPLEMENTATION

FORMULATE THE STRATEGY FOR YOUR OWN BUSINESS

 Lecturer:
Nguyễn Kiểm Thân

 Group Members
PHAN ĐÌNH THẮNG BAIU08032
TRẦN QUANG NGÂN BAIU08057
PHẠM THỊ HUYỀN TRÂM BAIU08074
LÊ THỊ ĐÀO BAUN08001
VŨ ĐỨC DUY BAIU08045
BÙI PHƯƠNG MAI BAUN08023
 STRATEGY FORMULATION AND IMPLEMENTATION

TABLE OF CONTENTS
..................................................................................... 0
I. COMPANY VISION, MISSION AND OBJECTIVE ............................... 2
1. Vision........................................................................................................... 2
2. Mission ........................................................................................................ 2
3. The Objective .............................................................................................. 2
II. BRIEF ANALYSIS OF THE INDUSTRY AND COMPETIVE ....................... 2
1. Wine industry and external environment .................................................. 2
2. Competitive Environment........................................................................... 3
III. SWOT ANALYSIS ....................................................................................... 4
1. The Strengths: ............................................................................................ 4
2. The Weaknesses: ........................................................................................ 4
3. The Opportunities: ..................................................................................... 5
4. The Threats:................................................................................................ 5
IV. PROPOSED STRATEGY ............................................................................... 5
1. Type of Company......................................................................................... 5
2. Culture of Company .................................................................................... 6
3. Market segmentation: ................................................................................ 6
V. THE DETAIL STRATEGY ............................................................................. 7
For customer service..................................................................................... 7
1. Extend French wine into many various types and château ...................... 7
2. Wine preservation and delivery ................................................................. 8
3. Wine education and sharing ...................................................................... 9
4. For relationship ........................................................................................ 10
5. For extending products............................................................................. 11
6. For customer service ................................................................................. 12
7. For relationship plan ................................................................................ 12
8. For extending product plans .................................................................... 13

FINE FRENCH WINE COMPANY 1

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I. COMPANY VISION, MISSION AND OBJECTIVE

1. Vision
Try to enhance and delight the Vietnamese customer with a beautiful
and ancient French Wine culture to step by step improve their lifestyle.

2. Mission
We try to establish the most trustworthy and professional French wine
based-business in the competitive market of alcohol drinks.

3. The Objective
Desire to establish 5 main business offices with wine service along like
Bar and French restaurant in crowded location such as Le Loi street on
district 1, district 3 and new towns Phu My Hung or Nam Sai Gon.

II. BRIEF ANALYSIS OF THE INDUSTRY AND

COMPETIVE

1. Wine industry and external environment

Some experts judge that “In a country synonymous with downing cheap,
freshly brewed beer and shots of homemade rice alcohol those involved in the
wine import industry in Vietnam are collectively waiting for the local market to
make the shift from a beer, whisky and brandy-orientated society to one
appreciative of quality wines at reasonable prices. The recent economic
downturn which has led to uncertainty in the market, however, may lengthen
the wait even further”

FINE FRENCH WINE COMPANY 2

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In reality the wine industry in Viet Nam is not really active and attractive in
the past, because some negative factors like conservative thought for the
trends of purchasing, the traditional conflict in tastes…However, everything is
changing dramatically. Clearly, Vietnamese now are more open-minded and
really open to accept new culture. The improving and active economy helps
them have more power of purchasing as well as the diversified choices.

Others incentives can be mentioned are that the open policy of government
for foreign import, as the same time we also join the WTO which causes much
dramatic transformation in our economic system like the reducing tax or more
shortcut for unnecessary certificated papers. These changes push the wine
maker to become more active than ever. In fact, these days there are many
strong flows of foreign wines import to Viet Nam to serve the local Vietnamese
as well as the foreign who lives, travels or works here. And the popular
opening of new restaurants or hotel can be a potential incentive for the wine
industry to improve.

2. Competitive Environment

To have a comprehensive framework of drink market, we can divide it into 3

main criteria. Firstly, the beverage market focuses on gasoline drinks for
example Coca-cola, 7up, fruity drinks, and the second one is the Alcohol
market which includes beer and wine in general. The last one is healthy drink
like Milk, Tea……
Beverage and healthy drinks are really competitive to wine market which is still
new to customer and too young while the others have such a long time
operation in the market of drinks

FINE FRENCH WINE COMPANY 3

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Specifically, about wine market we also face with many competitors from
many points of views. First of all we must mention about homemade rice
alcohol so-called “Rượu Đế or Đế Wine”. Next it is about the Wine from “New
world” originating from Chile, Argentina or Australia beside the Wine from
“Old World” deriving from Spain, Italia…And the last important competitor is
hard liquors like OX or whisky.
Some Well-known Wine businesses in Vietnam that we must care about, are
Bacchus Corner providing many kind of wine from many region from New
World to Old World, or The Warehouse is the pre-eminent Wine Merchant in
Vietnam, offering a comprehensive portfolio of the worlds most renowned
Wine Brands.

III. SWOT ANALYSIS

1. The Strengths:
+ We create an absolute advantage for the company because of the newly
service. We mean that we just focus on a specific kind of wine – Fine French
wine, just French and specialize in all fields about French wine.
+ Our luckiness is that we have the relatives who now live in France. They will
help us much when we come to France to research and choose the region
where have the famous Château and well-known grape vintages.

2. The Weaknesses:
+ Just focus on Fine French Wine leads to the limit in product variation
compared to other wine businesses in Viet Nam

FINE FRENCH WINE COMPANY 4

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+ The depreciating VND to Dollars, as you know these days Dollar in black
market has risen to more than 21000 VND per one Dollar  lead to the price
increasing for all products

3. The Opportunities:
+ These days customer have trend to switch to use healthy drink like French
Wine which is proved that fermented grape support well for human
cardiovascular system, or Green tea is good for your diet and body also.
+The GDP of Vietnam increasing dramatically year to year + the rise of social
generation high income + the open-minded trends of the youth: love to try
new experience.

4. The Threats:
+There are a quite many competitors
+Freak bottles, untrue bottles or error bottles from the black markets and even
in normal market.
+The condition for French Wine’s preservation is really difficult and expensive.
Then it is hard for customer to keep or maintain their favorite wine with the
right technique.

IV. PROPOSED STRATEGY

1. Type of Company

For the first clear view, I want to clarify that our company will be the joint
stock company at the beginning with the capital investment by members in our

FINE FRENCH WINE COMPANY 5

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family and our close friend who also get interested in French Wine. Later for
the further extension we will attract more capital from other investors who
consider the potential of our Wine based business

2. Culture of Company

We come together to establish the company with the same enthusiastic

interest in French wine. And what we aim is all about French wine.

Some information about French Wine

French Wine is the most ancient wine type with the exclusive formula of
fermenting grape. Each specific brand – Château of bottle are produced in
specific region with the right type grape in suitable vintage. And French wine
producer in each region just produce when they are ordered and make with
the specific limit. If they sell this kind of bottle to a buyer, the buyer will be the
only one who possesses this kind of bottle.The condition for French Wine’s
preservation is really difficult and expensive.

3. Market segmentation:

+New rising generation with stable/high income due to the increasing in VN

GDP  business peoples

+The youth who are ready to accept new culture, are potential users.

+Foreigners who travel/work/live in Vietnam

+Fans: who love and have inspiration in French wine

+People who follow the trends of healthy drinks

FINE FRENCH WINE COMPANY 6

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V. THE DETAIL STRATEGY

After the part of SWOT analysis and brief view of wine industry, we now step
by step build the strategy for our business

For customer service

1. Extend French wine into many various types and château

Our objective for 5 year later is trying as much as possible to diversify our Fine
French wine’s brand inventory by contract directly many famous Wine region
like From beautiful Alsace with a white-wine region, though some red, rosé,
sparkling and also sweet wines, step by step to passionate Bordeaux - a large
region on the Atlantic coast, which has a long history of exporting its wines
overseas, with many wonderful Château like Château Lafite-Rothschild,
Château Latour, Château Mouton-Rothschild, Château Margaux and Château
Haut-Brion from the Médoc sub-region; Château Cheval Blanc and Château
Ausone in Saint-Émilion, and continue with ancient Burgundy or Bourgogne in
eastern France is a region where red and white wines are equally important,
the flying to cheerful Champagne, situated in eastern France, close to Belgium
and Luxembourg, be the coldest of France's major wine regions and home to
its major sparkling wine…and so far.

FINE FRENCH WINE COMPANY 7

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Relying on the our own strengthen that we have the reliable contract in France
due to the help of our relative  choose wines rightly and variously with the
competitive price compared to if we make a deal with the consultant company
for collecting wine and research.

 As the result we can reduce the weakness about the expensive import price
and waste cost of choosing bottle  Moreover, we are not afraid of freak
bottles or out of date bottle, because we directly choose and research, then
customer can trust us whenever need a Fine French Wine bottle.

 Extra and intangible value gain: By going directly to choose each bottle in
each regions  know more about the French Wine culture and more
understand our product  having such inspiration and real experience to
share with employees as well as customers

2. Wine preservation and delivery

As we mention before, one of the most threats for French wine is the condition
for preservation. However with our professional services we can serve this
problem.

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For every time consumer’s purchase, we are willing to preserve wine for
customers and when they need, just make a call then we will delivery in time
for their uses. If they do not finish the whole bottle, we are still willing to
continue preserve the wine for the customer and still delivery whenever they
call next.

 Expected outcome: reducing the threats about preservation + build up the

trustworthy and professional images in customer’s mind

3. Wine education and sharing

This is a kind of extra valuable service after purchase that we want to introduce
to the customer. As you know our business has to face with many competitors
not only in the share market categories but also in the same market line. So
how to delivery and show to customer what makes our French wine the best?

 The answer is education and sharing. If customers do not know  we

should to inform them to know.

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By providing this service we can teach our valuable clients how much benefit
can French wine bottles bring to you like supporting well for human
cardiovascular system (just as we state in the part of the opportunities),
providing and sharing any scientific proves, articles, information about French
Wine…as well as take advantage from the recent customer’s trend of switching
to healthy life. In the process of education and sharing we can improve the
customer’s perception about French wine – what is it, how is it and why it is
good…As the result the customer will remember our business with the sense of
friendship, professional, we not only just sell French Wine, we also sell
knowledge and the friendship sharing between us and customers. We call it
intangible product that we provide along with French wine

4. For relationship

Our goals are to reducing threats and weakness as much as possible to smooth
the business operation by making relationship to get more power, creating B2B
relationship to push sale to make good returns for financial reports.

 Bank Relationships  try to make good contract with banking companies

to have good relationships when setting monetary exchange rate  stable
exchange rate  depreciation does not cause much effect on our product
prices

 Business contracts  try to get relationship with big and potential Hotels
(new world, Legend…) Bar/club (lust, buffalo)  to places sub-wine store here
to introduce our product  indirectly establish more our appearance in the
central places (big hotel and Bars have a good location)

FINE FRENCH WINE COMPANY 10

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5. For extending products

We extend our business into more largely but still just specialized in French
Wine

French Wine Accessories: we establish new French products about wine

glasses, corkscrews, and wine racks…and others for storing or serving of wine,
decorate the wine bottles  as the result, we can operate the business with
diversified products but still keep the culture which is just specialized in French
wine  indirectly support/improve the value of wine bottle

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Brief review chart the effects of our strategy

6. For customer service

Effectively using the

Enhance and delight customer strength about
Establish images of lifestyle reliable relationship
trustworthy and
in France
professional

Attract
customer for
the second
Customer Unique and
purchase services differential from
other competitors

Intangible
extra value
along with
wine Improve the customer’s Directly reducing
product: the perspective about the threat about
sharing French Wine wine preservation
interests… techniques

7. For relationship plan

Effectively
Enhance and delight customer marketing our
Establish images of lifestyle business
trustworthy and
professional

Relationship plan
with bank and Push the sales
hotel/bar

Indirectly
support the
mission for
appearing in
central
Directly prevent
district and
the attack of bad,
new towns
Reaching the main freak, out of date
target segmentation: Wine Bottles
high income people

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8. For extending product plans

Effectively
Enhance and delight customer increasing the
Establish images of lifestyle variation of product
trustworthy and
while still keeping
professional
the culture which is
just specialized in
French Wine

Extending the
product plan Push the
beside wine sales/profits

Indirectly
support the
mission for
appearing in
central
Reducing the Directly support/
district and
weakness about just enhance the
new towns
focusing on single value of wine
kind of product products

FINE FRENCH WINE COMPANY 13