1. Students : Ngo Van Tam
Phạm Thuỳ Dương
Tutorial : 2_BA 06
Tutor : Ms.
Subject : Entrepreneurship

2. 1. General information
2. Describe products & services
3. Rationale
4. Mission
5. Start-up expense
6. Macro economic
7. Micro economic
8. Competitive Strategy
9. Action plan

3.  Name: “LachCach-LachCach”
 Description : Hotpot Conveyor Restaurant
 Location : Pham Ngoc Thach street
- Dong Da district – Ha Noi
 Contact:
Phone: 0983090710
Fax:
Web: http://laulach-cach.com

4. 2. DESCRIBE PRODUCTS &
SERVICES
 Next few years:
 Cored products: hot pot conveyor
dishes.
 Additional: Wines, Beer, Soft Drinks.
 In long-term: expanded-conveyor
dishes: Sushi, fried dishes, others.

5. 3. RATIONALE
 New delivery meals ways in
Vietnam: try and explore.
 “Conveyor restaurant”:
Potential trend in restaurant
industry.
 6.5 mil ppl in HN(2009): high
demand, easy to adapt with new
things

6. 4. MISSION OF STAMENT
“LachCach - LachCach” offers fine meals of hotpot
conveyor taste, excellent services and great atmosphere.
Our goal is to provide our customers with an entire
dinning experience that exceeds their expectations on
every visit. young and old, male and female in Hanoi and
Vietnam market.We provide the great work environment
and value the people who work for us. LC-LC wants to
be the restaurant of the first choice of the mature and
adult crowd, couples and singles, etc.

7. 5. STARTUP-EXPENSE
(In thousand VND)

8. 6.1. INDUSTRY ECONOMIC
FEATURES
 Marketing innovation:
 restaurants invest more to advertise their
images
 Changing lifestyles
 higher income + busier  customers eating
out more frequently
 Growing buyers’ preferences for
differentiated products & professionalism
in services
 customers demand higher

9. 6.2. DEMOGRAPHICS
 Hanoi Population: 6,448,837 people
 Population density: high but not equally distributed
 Average density: 1,979/km2
 Dong Da ward: highest density, 35,341/ km²
 Average income per capital:
2,600,000 vnd/month
favorable condition for
service businesses

10. 6.3. S.T.E.P FACTORS
 Politics:
 Starting a business: takes 50days (2 days longer than
in the world)
 Obtaining a business license: easy
 Types of taxes:
• A license tax
• Value- added tax (VAT)
• Personal Income tax ( since 2009)

11. 6.3. S.T.E.P FACTORS (CONT.)
 Economy:
 Steady economic development 2009
boosted cosumer foodservice.
 Howerver
• In first two months 2010, CPI increased
3.15%
• Mar 2010, SBV pass through Agreed
Interest rate policy => higher i/r = 18%
• Prices of petrol, electricity& water:
increases
=> business incurs higher costs

12. 6.3. S.T.E.P FACTORS (CONT.)
 Social Culture:
 Dual working parents
• higher income
• busier
eating out more often
 Technology
 Advanced management softwares
 Eg: eBizRes, OC Pro, POS software.

13. 6.4. FIVE FORCES ANALYSIS
 Rivalry:
 Competition is fierce
 4 conveyor hotpot restaurants in Hanoi
• namely Kichi Kichi, F1, Genki and Hoa Binh Osaka
• financially intensively invested
• have already advantaged as the first movers to the market
 Substitutes:
 Substitutes: individual hotpot, buffet hotpots
 Prices : relatively competitive too.
 Customers’ perceived level of product differentiation: medium
 threat is high

14. 6.4. FIVE FORCES ANALYSIS
(CONT.)
 New Entrants:
 low
 entry-barrier: high (require large fund, expertise& management
 Bargaining power of customers
 high
 substitutes are widely available
 buyers’ switching cost: low
 customers: price sensitive
 Bargaining power of suppliers
 medium
 degree of differentiation of inputs: high
 many suppliers: VISSAN, Dong Phuong Food Com, King Ngu, VIKOTRA.

15. 7.1. KEY SUCCESS FACTORS
 high quality service
 enjoyable atmosphere
 with reasonable price
 at a convenient location

16. 7.2. S.W.O.T ANALYSIS
Helpful Harmful
to achieving the objective to achieving the objective
Strengths: Weaknesses:
attributes of the environment
 catch market trend-> excited to  New brand
Internal origin
customers  Lack experiences
 prices: 10% lower than competitor
 Financial sources: limited
 restaurant exterior: stylish & elegant
 items: variable ( over 30 items)
 Professional staff
Opportunities: Threats:
 located in the crowdest ward in  Higher inflation, higher prices of petrol,
attributes of the environment
Hanoi (Dong Da ward) water, electricity  families cut down
External origin
spending
 A new road nearby ( Xa Dan)  Diseases& food scandals: mad cow disease,
=> sources of customers: huge foot and mouth disease, H1N1, food
poisoning,etc.
 Operating costs: increase as the business is at
early stage of development

17. 7.3. COMPETITIVE
ADVANTAGE ASSESSMENT
KichiKichi HoaBinh Osaka LachCachLachCach
Location Convenient Convenient Convenient
Parking area Yes Yes Yes
Decoration Nice Scenic Stylish, elegant
Nice & friendly but in peak time, they usually omit Unprofessional: talkative, curious, Nice, polite, responsive, friendly,
Staff quality customers
irresponsive creative, well- organized
Unorganized, in peak time, they work in a mess
Food Normal Delicious Very delicious
Expensive
Reasonable
Lunch: 190,000 VND
Price 11
100,000 VND
Dinner: 210,000 VND
Yes. Customers served w/ free fruit &
Waiting place No No
drinks when waiting
Official website No Yes Yes
Marketing strategy Yes Yes, but not much Yes
Others Poor conditioners: some customers are hot Good F
Internet & Wifi No No Free Wifi

18. KICHIKICHI & HOA BINH
OSAKA

19. 8. COMPETITIVE STRATEGY
Best cost provider
 Conveyor is implemented to cut costs.
 replace number of waiters/waitress
lower HR expenses including salary, compensation and
management
lower prices
price offered 100,000 VND/person, free drinks
In holidays and weekends, discounted.

20. 8. COMPETITIVE STRATEGY
(CONT.)
Best cost provider
 High quality service
 Staffs are well educated, friendly, responsive
 Customers will be provided with a clear instruction how to
have meals
 Those who have to wait also can seat at comfortable chairs
and are served with free drinks and food
 Free WIFI
 Use management softwares to control revenue, expense,
inventory, customer information and our HR
=> utilizing the capacity.

21. 9. ACTION PLAN
 Sep 2010:
 Form the business group
 Raise funds: apply papers to banks
 Nov 2010: Submit business start up registration
 Jan 2011: Find location
 Mar 2011 ( beg):Recruit process
 Mar 2011 ( end): marketing campaign
 Aprl 2011:
 Sign lease contract
 Decoration & build equipment
 Train staff
 Recruit process
 30th Aprl 2011: Opening ceremony