SolchocoFashion and Passion in Chocolate

Company OverviewCompany History and FounderBusiness Report 2009Mission and Vision

Brian (22) is son of chocolate maker in Viet Nam and Atif (24) business man

After graduate from SolBridge in 1997 -> came back Viet Nam and start they Business

Continues family business -> Vavian Chocolate in Ho Chi Minh city

Have been taking by creating the finest Truffles, Pralines and chocolate novelties

After 5 years, 11 stores in Viet Nam

Company History

With unique combination of traditional European style products with Moroccan flair and expertise

2003, Change name into Solchoco and open market to China and Morocco

2007, 23 stores in Viet Nam, 8 store in Morocco and 21 stores in China

Today Solchoco innovative range of premium chocolate gifts:

5 star hotels Major international airlines Major sporting events Corporate hospitality venues.

Company History

“SOLCHOCO WILL MEET AND EXCEED THE EXPECTATIONS OF CUSTOMERS IN PRODUCT QUALITY, PRODUCT INNOVATION AND SERVICE.”

Continue to invest in brand and image

building.

Will successfully develop consumer perception with a branded range of affordable premium luxury chocolate.

Our Mission

To be RENOWNED WORLDWIDE as a PREMIUM

QUALITY CHOCOLATIER.

Brand of chocolates represented in all distribution channels that offer premium chocolates loose, seasonal or boxed.

Positioned itself as the provider of affordable premium luxury chocolate

Continue invest in current market and Develop new market: Korea (2010)

Over 25 stores in Vietnam, China, Morocco

Experient And Successful Track Record

Stability – good relationship with supplier

◦ R&D team

◦ Exclusive worldwide marketing right

Why you should do business with Us? Category creator and

trendsetter

40% growth rate in 2007

Record breaking retention

Global Vision

Incredible distributor income

One of the best business opportunities for the next ten yearsEntrepreneur Magazine Jan, 2007

WHY CHOCOLATE?

75 Billion Dollar Industry (2008)

Recession Proof

During great depression, our sale grew over 31.4%

Affordable and Consumable

High demand and Mass appeal◦ 90% crave it◦ 50% eat everyday◦ Occupies most expensive real estate in retail

Why this business?

“..Great new, Research suggest that chocolate is good for you … (Dark Chocolate contains flavonoids..)”

“Dark Chocolate has been found to moderate blood pressure, and other ingredients elevate mood”

“Eating dark chocolate appears to bring down blood pressure…”

“Chocolate can protect against tooth decay, research have found”

“… eating dark chocolate appear to improve the function of important cells lining the wall of blood vessels for at least three hours …”

Why should you EAT it?

By EVANNA market research Agency in 2009. Information collect from Seoul and Daejeon over 1000 people

Korean Market Analysis

Under 1866%

18-2919%

30-394%

40-497%

50-591%

Over 603%

Customer Age Structure

Everyday Once/Week

Once/month

Once/Year

Very rarely

Can't eat0%

5%

10%

15%

20%

25%

30%

35%

40%

45%43%

32%

11%

0%4%

1%

How often people eat chocolate ?

Milk Chocolate

White Chocolate

Dark Chocolate

Caramel Chocolate

Nuts Chocolate

0% 10% 20% 30% 40% 50% 60%

17%

11%

48%

14%

10%

Favorite Chocolate

6%

44%

5%3%

28%

15%

SugarFatCaffeineMilkCaloriesAddictive flavor

Chocolate shouldn’t have?

Young generation (teen and young adult): active, want to express themselves, comfort with internet technology

Products: Handmade chocolate, Chocolate with low fat and calories, service

Promotion: Social Network promotion with supper stars: naver, youtube, …

Targeted Market X Generation: more educated, mobile and

wealthy segments

Products: Luxury gift package

Promotion: Focus on quality of product and products which offer luxury like: limited chocolate

New Line Products 2010

For Korean Market

Sugarless

All natural ingredients: contains a proprietary herbal formula

Made from finest finest ingredients that are mostly organic and contains no sugar

No Artificial Sweaters

Anti oxidant.

Certificate from Labs in Seoul University

Healthy Chocolate with SolChoco

Organic Cocoa Liquor: made from cocoa in Indo and no contain unwanted gases -> maintaining its anti oxidant and nutritional value at maximum.

Organic cocoa butter: We not processed and deodorized -> full nutrient value

Xylitol: prevent tooth decay bacteria decrease blood sugar level. made in the USA from organically grown trees.

Organic Lecithin: essential element of our food.  It is known to help control cholesterol levels.

INGREDIENTS

Bio flavonoid: A strong anti oxidant

Herbal Igredients:

Momordica Charantia (Bitter Melon in China) regulate blood sugar level

Noni Fruit (Indian fruit Mulberry) high in nutrients and a strong anti oxidant.

Ellagic Acid and Green Tea Extract

Thinks about it

10 746 ORAC = 13 200 W 10 746 ORAC = 5 000 W

Method of measuring antioxidant capacities in biological samples

Low fat chocolates, with sugarless and anti oxidant

Royal Chocolates

60% Korean eat fruit everyday. Fruit Chocolate it is tastier and helthier

Fruit Chocolate

Season gifts and Luxury Gift, Limited Gift

Gift Basket

Biscuits, Coffee, Cake

Financial PlansFinancial Statement

Income Statement

Cash low projection

INCOME STATEMENT MONTHLY IN EACH YEAR

2010 2011 2012 2013

Sale 38 000 63 300 74 300 81 300

Variable Cost

29 880 49 778 52 038 54 916

Administrative expenses

5423.25 6 123 8 102 11 602

EBIT 2 696.75 7 398.7 10 614.3 14 782

Interest (8.5%) 225 0 0 0

EAI 2 467.5 7 398.7 10 614.3 14 782

TAX (23%) 567.5 1701.7 2441.3 3400

Net profit 1 900 5697 8 173 11 382

Profit margin

5% 9% 11% 14%

Operating expenses amount to $29 880 per month

will generate $720,000 in sales in its second year of operations.

The gross profit is expected to remain at approximately 40%, yielding $80,000 to cover administrative expenses.

Fixed cost limited to $4. 600/months for:◦ Store in downtown ($3 000)◦ Electricity and telephone fee (840$)

Cash Low Statement

Control inventory levels very carefully

Try to ensure that we have the right amount of inventory to fill customer orders ->we minimize product spoilage

Do not anticipate problems in the collection of accounts receivable.

Inventory Controlling

Marketing Plans

BE SEXY WITH SOLCHOCO

Membership card and volume discount available (10%)

Prices are comparable to the competition

BUT, our chocolate not compete in price, we focus on quality of products and customer satisfaction

Pricing Stragety

Sale and distribution•Store in downtown Daejeon

•Pick-up and deliver service (only for gift package)

•Website

www.solchoco.com

Local newspaper advertising ($3,000)

Community bulletin boards (free)

Direct sales

Direct mail ($1,600)

Store front signage (included in leasehold improvements)

Frequent user program (see sales discounts in financial statements)

Advertising and Promotion

Advertising with super star in Korea