iberry Final Report

Welcome to….

By… Ajchara Burarak

http://www.iberryhomemade.com/main01.htm

Agenda• Market Situation• Target Consumers• Competitor• iberry Assessment & Forecasting• Objective & Goal• Strategic Plan• Action Plan• Monitoring• Profit & Loss Projection• Opening Discussion

Market Situation


Market Segment (by Brand)

PremiumPremium

SwensensBaskin-RobbinsHaagen-DazsBonitoEte’Ben&Jerry’sBuds

RegularRegular

Wall’sNestleCremoMagnolia EconomyEconomy

Pai-TongMahachai


Market Trend

8,0009,500 10,000

2004 2005 2006

18.75%

Growth

5.26%


2.11%7.89%

90.00%

Swensens iberry Others

iberry earn 23 MB. in 2005, generated 2.11% of Premium segment or 0.24% of Total Market.

(7,633) 81%

(777) 8%(1,090) 11%

Economy Regular Premium

Target ConsumersGender : Female / Male Age : 19 - 40Occupation : Student / EmployeeSES : A, B & CLife Style : Metro Life

Who ?Who else ?

Why ?

What ?

When ?Where ?

How ?

Direct Competitor

Market Share : 0.5% (of Premium Segment)

Strength : Under CP Group management; possess its own raw material (Dairy Product) that will reflect to quality and cost control.

Key to Success : Product differentiation (Flavor) / Capture in the potential segment as “Home Made” / Possessed raw material supplier.

iberry Assessment

iberry entry to market in 2000

NewPresentPre

sen

tN

ew

ProductM

ark

et

iberry Positioning

Market Growth rate 10% (Premium Segment), iberry market share 2%

iberry Sales Trend and 2006 Projection

19.7523.00

28.00

2004 2005 2006

16.46%

Growth

21.74%

2.33% 7.67%90.00%

Swensens iberry Others

SWOT Analysis

StrengthStrength

- Product Quality & Differentiation- Varieties of Flavor- Decoration (Mood & Style)

WeaknessWeakness

- Lack of PR and Sales Promotion- Space Limitation - Lesser of ROS (~1%), because of over selling & administrative expenses

SWOT Analysis

OpportunitiesOpportunities

- Expand distribution into department store. (Shop / Kiosk)- Service line extension; Delivery service.- Potential in Business Section; such as Restaurant, Hotel.- Herbal Flavor, especially for Health conscious consumer.- Go abroad to explore new market; focus strategy on Herbal segment.

ThreatThreat

- High competition market.- Strong rival such as Swensens (Inter-Brand with sources of Capital) - Unprofessional management (Family Style).- Product depends on seasonal fruits (Discontinuously).- Product is easy to imitate.

iberry Sales Trend and 3-Year Projection

19.7523.00

28.00

33.0038.00

2004 2005 2006 2007 2008

Forecasting CriteriaForecasting Criteria

- Market Growth (Premium Segment)- iberry Trend- New Store Opening - Rivals- Market Situation (Inflation Rate)

21.74%

17.85%

15.15%

ObjectiveObjectiveObjectiveObjective

Continue to strengthen iberry’sContinue to strengthen iberry’s ‘superior Homemade ice-creamsuperior Homemade ice-cream’

propositionproposition via integrated brand activationvia integrated brand activation

Objective & Target Objective & Target Objective & Target Objective & Target

Key Results Current Target

Area Indicator Performance 2006 20072007 2008

Revenue Million Baht 23 28 3333 38

ROS % 1.38 4.58 4.80 4.80 4.62

Market Share % 2.02 2.33 2.462.46 2.60

Brand Awareness % 51.05 60 7070 80

Product Segment Categories 3 3 33 3

Channel–Shop Branch 10 11 1212 14

Channel–Kiosk Branch 0 3 66 9

Channel–Wholesale Million Baht 4.6 5.6 6.66.6 7.6

Customer Satisfaction

% 65.3 70 8080 90

Strategic PlanStrategic PlanStrategic PlanStrategic Plan

Increase Sales Coverage Cost Reduction

Brand Positioning Brand Awareness

4P’s 3P’s

Strategic PlanStrategic PlanIncrease Sales CoverageIncrease Sales Coverage

Strategic PlanStrategic PlanIncrease Sales CoverageIncrease Sales Coverage

2002 2003 2004 2005 2006 2007 2008

New store opening attached in Department Store

“Kiosk” shop type strategy.

Seeking Strategic Partners.

Strategic PlanStrategic PlanCost ReductionCost Reduction


OH6%

Factoryrentle

9%

Labor7%

Depreciation0%

Material 78%

Cost Structure of ManufacturingCost Structure of Manufacturing

Cost structure of Sales & AdminCost structure of Sales & Admin

Other expense9%

Outsource Service

15%

Rental4%

Depreciation8%

Advertisement & Promotion

0%

Salary20%

Offi ce Utilities44%



Economy of scale Bargaining power

Reduction on Outsource service Supply chain management



35%

40%

45%

50%

55%

60%

1 2 3 4 5Year

Strategic Strategic OutcomeOutcomeStrategic Strategic OutcomeOutcome

Gross MarginGross Margin//RevRev

Cost/RevCost/Rev

Selling&Admin/RevSelling&Admin/Rev

FocusedFocusedCost LeadershipCost Leadership

StrategyStrategy

FocusedFocusedDifferentiationDifferentiation

StrategyStrategy

Cost LeadershipCost LeadershipStrategyStrategy

DifferentiationDifferentiationStrategyStrategy

Mass Market

Group of Customer

Low Price

Unique /Distinctive

Product

Strategic PlanStrategic PlanBrand PositioningBrand Positioning


Differentiation1. Uniqueness of Flavor2. Superior Product Quality3. Outstanding service with the

intimacy4. Decoration & Interior Design



Known Unknown

51.05% 48.95%

Strategic Plan Strategic Plan Brand AwarenessBrand Awareness


Do you knowDo you know iberry ?iberry ?

Where did you get iberry’s information?Where did you get iberry’s information?

Friend (46%)Friend (46%)Magazine (20%)Magazine (20%)

Unexpected (34%)Unexpected (34%)

Increase Advertisement and Promotional Budget

Expand visibility via “Kiosk” shop type

Sales Person communication Communicate brand via premium

materials Social responsibility strategy Tie-in women magazine



Strategic Plan Strategic Plan 4P’s and 3P’s 4P’s and 3P’s Strategic Plan Strategic Plan 4P’s and 3P’s 4P’s and 3P’s

Product StrategyProduct StrategyProduct StrategyProduct Strategy

Product Positioning: Product Positioning: PremiumPremium

Highest Quality Highest Quality Ice-creamIce-cream

iberry

iberry

iberry

iberry

iberry

iberry

Adding ToppingAdding Topping

StrawberrStrawberryy

StrawberrStrawberryy

BananBananaa

BananBananaa

Fresh Fresh sherrysherry

Fresh Fresh sherrysherry


Valve AddedValve Added

Fruit Ice-creamFruit Ice-cream

iberry

iberry

iberry

iberry

iberry

iberry


Slice Slice almondalmond

Slice Slice almondalmond

General Ice-creamGeneral Ice-cream

Whip Whip creamcream

Whip Whip creamcream

iberry

iberry

iberry

iberry

iberry

iberry

Price StrategyPrice StrategyPrice StrategyPrice Strategy

1 Scoop: 40 Baht

1 tub : 600 Baht

Retail Retail PricePrice


WholesaleWholesales Prices Price


Plus 10 Baht Plus 10 Baht

per Toppingper Topping

Place StrategyPlace StrategyPlace StrategyPlace Strategy

Retail MarketRetail Market Wholesales Wholesales MarketMarket

BranchBranch

KioskKioskDepartment

Department StoreStore

Retail MarketRetail Market

KioskKioskTourist Tourist

AttractionAttraction

Strategic Strategic AllianceAllianceRestaurant,

Restaurant,

HotelHotel

Expand Channel DistributionExpand Channel Distribution

Place StrategyPlace StrategyPlace StrategyPlace Strategy

Central Lardprao

Office TowerCP Tower Department storeDepartment store

Central World

Expand Channel DistributionExpand Channel Distribution

Khao-Sarn Road

Tourist AttractionTourist Attraction

5 Star Hotels, Restaurant

WholesaleWholesale

Promotion StrategyPromotion Strategy


Trial @ BTS StationTrial @ BTS Station

Saladang

Asok

Victory monument

iberryiberry

iberry

iberryiberry

iberryiberryiberry cardiberry card

iberry T-Shirts

Premium giftPremium gift

iberry Umbrellas

iberry Mugs



5 pt.

15 pt.20 pt.

iberryiberry

iberry

iberryiberry

iberryiberryiberry Member Card CRM Management

Customer LoyaltyCustomer Loyalty

Woman Magazine

AdvertisingAdvertising



iberryiberry

iberry

iberryiberry

iberryiberry



2 Scoops: 70 Baht2 Scoops: 70 Baht

Volume DiscountVolume Discount

3 Scoops: 100 Baht3 Scoops: 100 Baht

Buy 17 Get 1 Free (by tub)





20 B. Discount

10 B. Discount

PeoplePeople

Physical EvidencePhysical Evidence

ProcessProcess

• Employee Development Employee Development (Products/Service)(Products/Service)

•CSI AwardsCSI Awards

Emotional Styles shopEmotional Styles shop

Standardized QualityStandardized Quality

iberryiberry

iberry

iberryiberry

iberryiberryNoNo ProjectProject In-chargeIn-charge BudgetBudgetYear 2006Year 2006

11 22 33 44 55 66 77 88 99

11 ProductProduct

Value Added : ToppingSales/MKT ,

30,000

1.1 Fruit Ice cream PC , PD

- Strawberry, banana, fresh sherry

1.2 General Ice cream

- Whipcream, slice almond

22 Place-ConveniencePlace-Convenience

2.1 Retail ShopSales/MKT ,

1,500,000

- Central world place PC

2.2 KioskSales/MKT ,

1,500,000

- Khao-sarn road PC

- CP Tower

- Central Ladprao

2.3 Wholesale Sales/MKT

- 5 Star Hotels (Banyan tree/conrad/plaza attinee/ jw marriott/oriental)

- Restaurant (Fuji restuarant)

1010 12121111

Action PlanAction PlanAction PlanAction Plan

iberryiberry

iberry

iberryiberry

iberryiberryAction PlanAction PlanAction PlanAction Plan

NoNo ProjectProject In-chargeIn-charge BudgetBudgetYear 2006Year 2006

11 22 33 44 55 66 77 88 99

33 Promotion-CommunicationPromotion-Communication

3.1 Trial Ice cream Sales/MKT 10,200

- BTS 3 station

- Targeted department store

- Tourist attraction

3.2 iberry cardSales/MKT,IT

164,000

3.3 Premium gift Sales/MKT 72,000

3.4 volume discount Sales/MKT

3.5 Magazine ad : Clec Mag. Sales/MKT 45,000

44 PeoplePeople

4.1 TrainingAD/

HR,Sales/MKT

4.2 Recruitment AD/HR

4.3 CS award Sales/MKT 30,000

TotalTotal3,351,20

0

1010 12121111

BBaallaanncce e SSccoorreeccaarrdd

BBaallaanncce e SSccoorreeccaarrdd

KPIKPI IndicatorIndicator20062006

PlanPlan ActualActual

FinancialFinancial

Revenue Million Baht 28

Sales Growth % 22

Net Profit/Share Baht/Share 132.5

ROS % 4.58

ROI % 44.2

Sales Volume/Branch Million Baht 1.84

Sales Volume/Kiosk Million Baht 0.61

Sales Volume/Wholesale Million Baht 5.6

CustomerCustomer

Market Share % > 2.33

Customer Satisfaction % > 70

Brand Awareness % > 60

Internal OperationInternal Operation

Promotion Cost/Revenue % < 1

Investment Cost/Revenue % < 11

Value Added Cost/Revenue s < 0.11

Branch No. of Branch 11

Kiosk No. of Kiosk 3

Learning & GrowthLearning & Growth

CS Award Exp./Revenue % < 0.1

Turnover Rate % 0

CRM Exp./Revenue % < 0.6

MonitoringMonitoringMonitoringMonitoring

Income StatementIncome StatementIncome StatementIncome Statement

Sales Baht % of Sales

- Shop 23,137,665 80%

- Wholesales 5,784,416 20%

Total Sales amount 28,922,081 100%

Minus: Cost of goods sold 13,013,578 45%

Gross profit 15,908,503 55%

Minus: Operation cost 13,765,008 48%

Advertising & Sales Promotion 250,000 0.86%

Total Admin & Sales 14,015,008 48%

Gross profit after operation cost 1,893,495 7%

Minus: Corporate income tax (30%) 568,049 2%

Net Profit Margin 1,325,447 5%

iBERRY HOMEMADE COMPANY LIMITED

FOR YEAR 2006

PROFIT & LOSS PROJECTION

Cash Flow Statement

Cash Flow Statement

Cash Flow Statement

Cash Flow Statement2004 2005 2006 2007 2008

No. of Branch 8 10 11 12 14

No of Kiosk 3 6 9

Net profit 188 328 1,325 1,638 1,815

Cash flow from Operation

- Depreciation 1,379 1,801 2,181 2,561 2,941

- Payment for Manufacturing expense (9,301) (10,816) (13,185) (15,089) (16,893)

- Payment for selling and admin expense (8,346) (10,355) (11,763) (14,219) (16,892)

- Cash received from customer 18,355 23,010 27,792 32,792 37,792

- Change in other and liabilities (1,298) (300) (250) (100) (100)

788 3,341 4,775 5,944 6,847

Cashflow from investment

Loan from director 850 (760) (90)

Purchase fixed asset (1,271) (3,000) (3,000) (3,000) (4,500)

(421) (3,760) (3,090) (3,000) (4,500)

Cashflow from Financing

Paid dividened (1,000) (1,500) (1,800)

Net Cash flow 367 (420) 685 1,444 547

Cash beginning 553 920 500 1,185 2,629

Cash ending 920 500 1,185 2,629 3,176

14

1211

8

10

9

3

6

0

2

4

6

8

10

12

14

16

2004 2005 2006 2007 2008

iberry Shopiberry Shop

iberry Dividend and Ending Cash

iberry Dividend and Ending Cash

1,8001,500

1,000

3,176

2,629

1,185

500920

0

500

1000

1500

2000

2500

3000

3500

2004 2005 2006 2007 2008

No. of branch

No. of kiosk

Paid dividend

Ending cash

Opening Opening Discussion Discussion

Opening Opening Discussion Discussion

iberry Final Report

Business

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