越南靈芝蘑菇的商業計畫 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 越南靈芝蘑菇的商業計畫 n. al. er. io. Business Plan for Ling Zhi Mushroom in Vietnam. Ch. engchi. i n U. v. Student: Ta Thai Hung Advisor: Dr. Simon Koh. 中華民國107年6月 June 2018. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(2) 越南靈芝蘑菇的商業計畫 Business Plan for Ling Zhi Mushroom in Vietnam. 研究生：戴宏泰. Student: Ta Thai Hung. 指導教授：高端訓. 政治大國立政治大學. 學. ‧ 國. 立. Advisor: Dr. Simon Koh. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國107年6月 June 2018. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(3) Acknowledgements After 10 years working on IT field, including 4 years in Taiwan, I decided to attend NCCU IMBA program in 2015. It had been the completely different knowledge, thinking, acting and skill than those in my technical field. At first, I felt behind and uncomfortable, as my mind needs to have a switch, in the day time, it is the switch to technical world, in the evening time or weekend, the switch to the business world. I wondered how different these two worlds are. Over two and half years learning here, I have gradually recognized that to be. 治政 success in my future career, combination of business and大 IT brings the huge advantage for 立 me. I am really grateful for all that program has brought to me: knowledge, friendship, skill... ‧ 國. 學. My warmest thanks go to Dr. Simon Koh, my thesis advisor, for his inspiring. ‧. guidance and encouragement throughout my researching and initiating this venture. His prompt guidance and support really help me to complete the enormous amount of reading,. y. Nat. er. io. sit. researching and writing this thesis. Thank you all of my classmates and together we have finished this very exciting program, Jia You. Special thanks for the kind and diligent support. n. al. Ch. i n U. v. from the IMBA office, especially Lichi. Special thanks to my wife, Mrs. Tran Thi Binh has. engchi. supported me on completing this business plan.. Finally, I would like to extend my heart-felt thanks to my family. My parent, wife’ support and blessing and, especially, my lovely angel daughter, you are the source of my energy for me to be able to stand here today.. i. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(4) Abstract Business Plan for Ling Zhi Mushroom in Vietnam By Ta Thai Hung Over past five years, I have been talking to many people, observing, reading and going to real site about Ling Zhi mushroom. I was astounded by how just simply drinking Ling Zhi daily. 政治大. after some months could help to improve people’s health, not in term of physic, but also their. 立. spirit; even some of symptom of chronic diseases such as: back pain, high blood pressure,. ‧ 國. 學. fatigue… gone. I also realized that not many people are drinking Ling Zhi although lot of them know its benefits. I wondered why and overtime I had the answer: no authentic and trustworthy. ‧. brand yet in the market, so consumers are lost in the sea of un-branded or low profile brand;. sit. y. Nat. even consumer wants to buy, it is not easy to find a near-by store. Going further, I identify that. n. al. opportunity for the new venture in this market.. Ch. engchi. er. io. the potential market size is really big, but current penetration is very low, leave a tremendous. i n U. v. So I decided to create this venture, the business that satisfy customer’s needs for Ling Zhi mushroom. I would like to build a well-known, trustworthy and authentic brand with good quality, but at the same time offer the affordable price and accessibility for mass consumers. My purpose does not stop here, for higher aim, that Ling Zhi mushroom brings more impact to society by fostering a healthier community, reducing the cost of medical care, and at the same time, helping people in remote area having decent job that they can afford their spouse, children a better living environment and education. Keywords: Ling Zhi, Ganoderma lucidum, business plan, mushroom. ii. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(5) TABLE OF CONTENTS 1. Executive Summary .............................................................................................................. 1 2. Thesis’s Objectives ............................................................................................................... 2 3. Market Overview and Competitor Analysis ...................................................................... 3 3.1. Ling Zhi Market Overview in Vietnam ........................................................................... 3. 政治大 3.2. Competitor analysis ......................................................................................................... 4 立. ‧ 國. 學. 4. Customer, Market and Product Analysis ........................................................................... 6. ‧. 4.1. Consumer Behavior Analysis .......................................................................................... 6. y. Nat. er. io. sit. 4.2. Targeted Consumers. ....................................................................................................... 7 4.3. Market Potential Analysis ................................................................................................ 9. n. al. Ch. engchi. i n U. v. 4.4. Product Analysis ............................................................................................................ 11 4.4.1.. Introduction of Ling Zhi ................................................................................... 11. 4.4.2.. The Health Benefit of Ling Zhi ........................................................................ 14. 4.4.3.. Advantage of Cultivating Ling Zhi in Vietnam ................................................ 17. 5. SWOT Analysis ................................................................................................................... 19 6. Business Strategy and Financial Plan ............................................................................... 21. iii. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(6) 6.1. Choosing The Strategy. .................................................................................................. 21 6.2. Product Strategy. ............................................................................................................ 24 6.3. Cost-Benefit Analysis and Financial Projection. ........................................................... 26 7. Branding and Marketing ................................................................................................... 36 7.1. Vision and Mission ........................................................................................................ 36. 政治大. 7.2. Brand Logo, Slogan and Statement. .............................................................................. 37. 立. ‧ 國. 學. 7.3. Brand Association and Launching Marketing. .............................................................. 38 8. Future Development ........................................................................................................... 40. ‧. n. al. er. io. sit. y. Nat. Reference ................................................................................................................................. 41. Ch. engchi. i n U. v. iv. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(7) List of Figures and Tables Figure 1: Ling Zhi best practice intake ....................................................................................... 6 Figure 2: Market penetration .................................................................................................... 11 Figure 3: Wild Ling Zhi ............................................................................................................ 13. 政治大. Figure 4: Cultivated Ling Zhi in Vietnam ................................................................................ 13. 立. Figure 5: Strategy adapted from Michael Porter’s model ........................................................ 22. ‧ 國. 學. Figure 6: Strategy adapted from Wright and Porter’s model.................................................... 23. ‧. Figure 7: Sliced Ling Zhi ......................................................................................................... 24. y. Nat. er. io. sit. Figure 8: Original Ling Zhi Cap ............................................................................................... 25 Figure 9: Flow chart of Ling Zhi production ............................................................................ 26. n. al. Ch. engchi. i n U. v. Figure 10: Example of house to cultivate Ling Zhi .................................................................. 27 Figure 11: Example of inside of the house ............................................................................... 27 Figure 12: Variable Cost Analysis ............................................................................................ 30 Figure 13: Fixed Cost Analysis ................................................................................................ 31 Figure 14: Revenue Insight ...................................................................................................... 33 Figure 15: Projected revenue and profit ................................................................................... 34 Figure 16: Logo of HiLAND Ling Zhi ..................................................................................... 37. v. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(8) Figure 17: Five associations of the brand ................................................................................. 38. Table 1: Percent of population by age group, 2014 and forecast of 2020 .................................. 8 Table 2: Brief of Market Analysis ............................................................................................ 10 Table 3: Overall variable cost analysis ..................................................................................... 28. 政治大. Table 4: Detail variable cost per harvested kg .......................................................................... 29. 立. Table 5: Fixed cost analysis ...................................................................................................... 31. ‧ 國. 學. Table 6: Financial projection for first year ............................................................................... 32. ‧. Table 7: Financial projection for next 5 years .......................................................................... 34. sit. y. Nat. Table 8: Brand identity and pricing comparison ...................................................................... 35. n. al. er. io. Table 9: Launching Event ......................................................................................................... 39. Ch. engchi. i n U. v. vi. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(9) 1. Executive Summary Over past five years, I have been talking to many people, observing, reading and going to real site about Ling Zhi mushroom. I was astounded by how just simply drinking Ling Zhi daily after some months could help to improve people’s health, not in term of physic, but also their spirit; even some of symptom of chronic diseases such as: back pain, high blood pressure, fatigue… gone. Not to mention others, my father is the real case, he has been drinking Ling Zhi daily since three years ago, his regular health check has more green items than red items like. 治政 before. I also realized that not many people are drinking 大Ling Zhi although lot of them know 立 its benefits. I wonder why and overtime I had the answer: no authentic and trustworthy brand ‧ 國. 學. yet in the market, so consumers are lost in the sea of un-branded or low profile brand; even. ‧. consumer wants to buy, it is not easy to find a near-by store. Going further, I identify that the potential market size is really big, but current penetration is very low, leave a tremendous. y. Nat. n. er. io. al. sit. opportunity for new venture in this market.. v. So I decided to create this venture, the business that satisfy customer’s needs for Ling Zhi. Ch. engchi. i n U. mushroom. I would like to build a trustworthy and authentic brand with good quality, but at the same time offer the affordable price and accessibility for mass consumers. My purpose does not stop here, for higher aim, that Ling Zhi mushroom can bring more impact to society by fostering a healthier community, reducing the cost of medical care, and at the same time, helping people in remote area having the decent job that they can afford their spouse, children a better living environment and education.. 1. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(10) 2. Thesis’s Objectives Following is the list of objectives that this thesis is aimed to achieve: -. To create a sounding business plan that would be implemented to bring more awareness about the benefit of Ling Zhi to people’s health, utilizing the abundant output of agricultural products such as sawdust, rice husk, wheat bran, firewood… to produce the qualified Ling Zhi at affordable price with easy accessibility to consumers.. -. To apply IMBA program’s knowledge, especially brand knowledge into real case.. ‧. ‧ 國. 學. -. 治政 To create a local Ling Zhi brand that bring confidence 大 of Vietnamese Ling Zhi quality 立 to mass consumers.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 2. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(11) 3. Market Overview and Competitor Analysis This section would present the current market status of Ling Zhi in Vietnam, what are the pain points of customers and will be followed by the list of current major players in this market.. 3.1. Ling Zhi Market Overview in Vietnam According to the statistic (Nguoi Lao Dong, 2017), Vietnam market consumption in 2017 will be 625 tons of dried (raw Ling Zhi is dried under sunlight or drying machine) Ling Zhi. The. 政治大. domestic production in 2017 was estimated to produce 40% of the market’s need, which is. 立. around 250 tons. The rest, 60% or 375 tons is imported from China, Korea and Japan. Importing. ‧ 國. 學. from China accounts for largest portion and its quality is still in concern. The price of dried Ling Zhi ranges from 600 thousand to 2 million VND per kg, the mean of. ‧. the price is about 1 million VND (44 USD) per kg. Taking the above production, we can see. sit. y. Nat. the potential of current market size is about 625 billion VND (~28 million USD).. n. al. er. io. Dr. Truong Thi Dep had collected 42 samples of Ling Zhi in the market to analyze, the result. v. had shown that there are 2 samples from China having no medicinal attributes (Ling Zhi had. Ch. engchi. i n U. been extracted to make processed Ling Zhi such as Ling Zhi tea, capsules, condensed sauce or powders…) (Nguoi Lao Dong, 2017). Since the temperate climate is suitable to cultivate Ling Zhi, the south of Vietnam is the preferable option to grow Ling Zhi. The most suitable place is Tay Nguyen (high land area that near border of Vietnam, Cambodia and Laos) with temperature range from 20 to 30-degree Celsius, especially and the raw material can be found easily there. Cu Chi, one of the village next to the West of Ho Chi Minh city, is now increasingly the places for Ling Zhi producers as its advantage of the location. The benefit of Ling Zhi is widely known among Vietnamese, especially middle-age and senior. 3. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(12) citizens. There are several reasons that they are reluctant to use: 1. They don’t know what brand they should trust: as no producer can dominate the market, so the point of sales and marketing are not enough to make them well-known in the whole market. People who are drinking Ling Zhi are buying from neighbor or very closed relationship producer. 2. The product is not available at convenient purchase point: some of them have been trying to sell online on e-commerce website or on their own website, but the volume is. 政治大. very small as the trust and brand not yet known. The consumers tend to buy known. 立. brand in internet rather than unknown brand. Some of producers have cooperated with. ‧ 國. 學. pharma chain stores to put at their shelf, but consumers have no habit to purchase Ling Zhi from pharma stores (they tend to buy Western medicine there).. ‧. 3. The price is perceived as too high: as no strong local brand exists, people perceive. Nat. sit. y. Ling Zhi from Korea as the premium and good quality product with almost double to. n. al. er. io. triple times more expensive than local cultivated product. So expensiveness and the. i n U. v. fear of cheaper local product with lower quality have been rooted into common consumers.. Ch. engchi. 4. Ling Zhi is still perceived as the product for rich people: The same causes from previous section, that as price is high, it is only for rich people to use rather.. 3.2. Competitor analysis According to latest statistic (Ha Nam, 2017), there are about 10 companies and 40 farms growing Ling Zhi in scale nearby Ho Chi Minh city. Beside these companies, there are thousands of household and individuals growing mushroom in their garden with or without any brand in Tay Nguyen and other areas.. 4. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(13) There are several famous producers including following -. Linh Chi Vina, the biggest local producer, accounting for 10% of the local production, which is around 25 tons per year (this 10% is the portion of this company in total domestic production. If comparing with total current market size, this company accounts for 4%) (Nguoi Lao Dong, 2017). Although at this scale, this company has been focusing on export rather than domestic market, as it has no official distributors or retailers, consumers can only buy through calling to call center and ask for product,. 政治大. or go directly to the its head office to buy. -. 立. Linh Chi Nong Lam, this brand is based on the Nong Lam University (doing both. ‧ 國. 學. research and cultivation on not only Ling Zhi, but also plenty other mushroom related products), the most famous university about agricultural product cultivation and. ‧. development. It currently has 9 showrooms in Ho Chi Minh and some other cities, also. Nat. sit. y. its products are sold on Medicare stores (pharma chain store) with 74 locations in. n. al. 30% higher than the closest competitor. -. Ch. engchi. er. io. Vietnam (Linh Chi Nong Lam, 2018). Its products are sold at premium price, usually. i n U. v. Vinamilk, the largest dairy producers in Vietnam, had introduced the first Ling Zhi tea in 2012, with brand name Lincha. However, the product had not launched and distributed successfully as Vinamilk had discontinued to produce this product.. -. Besides that, there are other brands such as: Linh Chi Viet, Greenherbs, Vietmushroom…in the market.. Currently there is no player seizing more than 5% of the market. The fragmentation and low profile producers has been the obstacles to bring confidence of quality and health awareness to broad consumers. Marketing is the weakest point of these players, there are lack of professional design for their websites, their packaging, branding and marketing activities… 5. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(14) 4. Customer, Market and Product Analysis The analyzing customer segments of the market and potential of the market will be addressed in this section. Next the introduction and health benefit of Ling Zhi are followed and then the analysis of why cultivating Ling Zhi in Vietnam is ideal and advantageous.. 4.1. Consumer Behavior Analysis According to traditional usage by word of mouth and usage instruction from some of available. 政治大. Ling Zhi in the market. The best daily intake would be as following diagram:. 立. y. Nat. n. er. io. sit. Boiling in 15 minutes. al. ‧. ‧ 國. Put 10 gram Ling Zhi in 700 ml water. 學. • 10 gram Ling Zhi can be used in 2 days, next day just need to boil again • Do not clean Ling Zhi by water. C h Drink around e nmlgbefore chi 300 breakfast at least 15 min.. iv n • Drinking Ling Zhi U in warm would reduce the bitter taste significantly. Someone uses thermal bottle to drink the rest during the day or before bed time 1 hour Figure 1: Ling Zhi best practice intake (Source: consolidate from various sources by the author) There are many forms of condensed Ling Zhi sold in the market including: Ling Zhi tea bag, condensed Ling Zhi capsule…But the habit to directly brew Ling Zhi from dried Ling Zhi is. 6. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(15) still very common and is prevailing up to now. If using daily, a consumer could use around 1.5 kg per year. From my personal observation, almost consumer who has been using Ling Zhi at least 3 months has very positive feeling about their health improvement and very sure to continue to use Ling Zhi. So the loyalty on this product is very high, and the stability of demand from loyal consumers is one of advantage for any brand in this industry. Nowadays, people usually buy Ling Zhi as the gift to their relatives or friends in special. 政治大. occasion. There was TV series (ANTV, 2017) (about very low quality Ling Zhi imported from. 立. China were faked to be Korea’s Ling Zhi widely in the market) that drag down the consumer’s. ‧ 國. 學. confidence significantly. Trusted and well-known brand is what consumers looking for.. ‧. 4.2. Targeted Consumers.. y. Nat. The traditional and prevailing premise about the usage of Ling Zhi is that it is suitable for. er. io. sit. middle-age and senior rather than the young. So it is most appropriate to first analyze the market segment by demographic. Since demand and buying habit at certain age will be different,. al. n. v i n product start C h like Ling Zhi. We engchi U. especially for a traditional. with the powerful and easy. segmentation by age group. Following table is the official statistic and forecast from Bureau of Statistic about age groups of Vietnam up to 2020.. 7. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(16) Table 1: Percent of population by age group, 2014 and forecast of 2020 Age group. 2010. 2011. 2012. 2013. 0-4 5-9 9-14 15-19 20-24 25-29 30-34 35-39 40-44. 8,4 8,0 8,4 9,7 8,6 8,7 7,9 7,6 7,1. 8,0 7,9 8,2 9,2 8,5 8,5 7,9 7,6 7,3. 8,1 8,0 7,8 8,6 8,4 8,7 7,9 7,6 7,3. 8,5 8,2 7,6 8,0 8,1 8,5 8,1 7,5 7,4. 45-49. 6,7. 50-54. 5,8. 立6,8. 55-59. 政治大 6,8 6,6 6,3. 4,0. 4,2. 4,5. 4,8. 60-64. 2,6. 2,9. 3,1. 65+. 6,8. 7,0. Total. 100,0. 100,0. 8,3 7,8 7,4 7,9 9,7 9,2 8,5 7,4 7,0. 8,3 7,8 7,4 7,0 7,4 9,2 8,7 8,0 7,0. 6,4. 6,6. 5,7. 6,0. 4,6. 5,3. 3,3. 3,0. 4,2. 7,1. 7,2. 7,1. 7,1. 100,0. 100,0. 100,0. 100,0. ‧. ‧ 國. 6,2. 2020. 學. 6,2. 2014. Nat. sit. y. (Source: GSO, Populationchangeandfamilyplanningsurvey1/4period2004-2008,2010-2013. al. n. 39-45). er. io. and Statistic bureau and UNFPA report on forecasting Vietnamese population to 2049, page. Ch. engchi. i n U. v. In considering buying potential, there are several consumer groups that satisfy the criteria such as: age from 20-30, 30-40 and above 40. As the prevailing tradition and long history of Ling Zhi’s usage and from my personal observation and intuition, most people who are above 40 years old have more health awareness, more time, life style and money to buy and use Ling Zhi product. Although we can offer Ling Zhi to younger consumer class and no scientific evidence that Ling Zhi is not good for the young (current perception is that Ling Zhi is good for senior people and not so good for the young), we find very small number of buyer at this young age. Also to introduce our product to this young age segment, we need long-term planning, more 8. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(17) effort and risk is higher. The best group to start and focus from beginning is about above 40 years old. Our company will concentrate best effort to promote and sell Ling Zhi to this group. Our subsequent branding, marketing, packaging, promoting… activities will be directed to suit this consumer group.. 4.3. Market Potential Analysis From table 1, the age group above 40 years old would account for 36.2% of the total Vietnamese. 政治大. population. With population of around 90 million in 2014 and forecast as 95 million in 2020,. 立. the size of consumers above 40 years old would be around 34 million in 2020.. ‧ 國. 學. The usage of Ling Zhi would be around 250 grams for every 2 months (this calculation comes from section 4.2 based on the recommended dosage). This is also the average of some of. ‧. planners to sell to consumers in our inquiry (Mrs. Danh Hong Dinh, the director of farming. Nat. sit. y. association of Krong-Ana town, Daklak province, Vietnam). So one year, average usage of a. al. n. USD) per year.. er. io. consumer would be 1.5 kg dried Ling Zhi, which cost around 1.5 million VND in average (~70. Ch. engchi. i n U. v. Considering the income of targeted customer, middle and upper classes could be the most potential to purchase the product, so our potential customers in this segment would be middle and upper class. According to Boston Consulting Group (Amcham Vietnam, 2016), the total number of middle class would be 33 million in 2020 (monthly income from 15 million VND (~700 USD) per month or more). The middle class should exclude age group under 20. we exclude 30 million people under working age out. So we have 33 million predicted middle class people in 65 million people above 20 years old. In general, the more senior, the more asset and income people have, in this calculation, I would discount this factor and assume age group from 20-39 and >40 would have equal middle-class or upper-class amount. With this assumption, we 9. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(18) come out with around 15 million middle class and upper-class in our targeted consumers. So our final number to calculate the potential market would be 15 million consumers having financial capability to purchase Ling Zhi. Combining with above number of consumers, we can come out with the potential market size would be 22.5 thousand tons, which value 22.5 thousand billion VND (~1 billion USD). Input from current market size at around 25 million USD, so the current market only account for 2.5 percent of the potential market.. 政治大. 立Table 2: Brief of Market Analysis. ‧ 國. 學. Potential consumers GDP growth rate. >=7% (2018 estimated) 1.5. ‧. Average usage of each consumer per year (kg). 15,000,000. Average price per kg (USD),. 44. Nat. 22,500. sit. y. Potential market size in tons. 1,000. io. Current Market Size in tons/USD(million). n. al. er. Market size in USD (million). i n C Current market penetration h epercentage i U n g c h(%). v. Current domestic production in tons/percentage (%). 625/25 250/40 2.8. (Source: Combined from the source in previous section by the author, exchange rate: 1 USD to 22,727 VND). 10. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(19) 立. 政治大. Figure 2: Market penetration. ‧ 國. 學. (Source: Combined numbers and prepared by the author). ‧. There is no official industry analysis and forecast for this niche market in Vietnam, the market. sit. y. Nat. is not mature and is very segmented. So I take the growth rate number out of market analysis,. io. er. instead our target is to conquer the unrealized potential market. Our ambition in first 5 years is. al. to have the biggest production among players and build the strong brand to create the solid. n. v i n C hthe 5% of the market foundation to exponentially conquer e n g c h i U in next more 5 years. So in first 5. years, our production would surpass our biggest competitor which is producing 30 tons per year (Linh Chi Vina). Our detail plan will be represented in numbers and calculation in subsequent sections.. 4.4. Product Analysis 4.4.1. Introduction of Ling Zhi Ling Zhi (靈芝) called in East Asia is the medicinal fungus which was originated from China for more than 2,000 years ago. It had been assigned to scientific name as Ganoderma lucidum,. 11. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(20) a species originally described from Europe (Cao, Wu & Dai, 2012). Or it is called “Reishi” as the Japanese interpretation and “linh chi” in Vietnamese. “Ling Zhi” would be used as the name of this mushroom throughout this thesis. Ling Zhi (or ‘Chih’) was considered the most important mushroom by the ancient Taoists, the founders of Traditional Chinese Medicine (TCM). In Chinese the word ‘Ling‘ is composed of the characters for ‘rain’, ‘shaman’ and ‘praying for’, which, when used together, can mean ‘spiritual potency’ or ‘a stirring of the soul‘ . ‘Zhi or Chih’ means ‘tree fungus’ and ‘substances. 政治大. to concoct elixirs of immortality’ (Reishi Essence LLC, 2006).. 立. There are many varieties of Ling Zhi, but the ones used for medicinal purposes are Black, Red. ‧ 國. 學. and Deer Antler Red Ling Zhi. Red one is most popular nowadays and has sufficient pharmaceutical components at low producing cost and affordable price. So this initiative will. ‧. focus on this red Ling Zhi.. Nat. sit. y. Many people, especially in Asia, are under the perception that because wild Ling Zhi is rare and. n. al. er. io. very expensive it must be of better quality than the cultivated version, therapeutically speaking.. i n U. v. A common mistake this is, mixing up price and value. The opposite is true, however. Wild Ling. Ch. engchi. Zhi is easily damaged and contaminated by insects, molds, environmental pollution and the overall amount of bioactive is very inconsistent, resulting in an unreliable quality. It rarely reaches full maturity in perfect condition. Cultivated Ling Zhi on the other hand is usually based on strains selected for their therapeutic potency and it can be grown under well controlled circumstances. This results in a more uniform and reliable product. The first recorded attempts at cultivation were made in 1937, but mass production was not possible until 1971, when the Japanese developed a cultivation method using pots with sawdust. Cultivation techniques have developed further since then (Reishi Essence LLC, 2006). Following is the example of wild Ling Zhi and cultivated Ling Zhi: 12. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(21) 立. 政治大 Figure 3: Wild Ling Zhi. ‧. ‧ 國. 學. (Source: https://www.lingzhiessence.com/what-is-Ling Zhi). n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 4: Cultivated Ling Zhi in Vietnam (Source: picture taken by the author on-site). 13. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(22) 4.4.2. The Health Benefit of Ling Zhi Here is a list of the benefits that Ling Zhi have as a daily dietary supplemented or in helping to treat certain medical conditions according to common documents without scientific research (Reishi Essence LLC, 2006). 1. Fights Allergies and Asthma Ling Zhi mushrooms consist of good amount of triterpenes, a type of ganoderic acid. 政治大 Because of this reason Ling Zhi mushroom is an asthma natural remedy. Triterpenes 立 that is tied to a reduction in allergies and histamine reactions related with asthma.. ‧ 國. 學. have the capacity of lowering allergic reactions because of the way they affect the immune system, strengthen the digestive organs, protect the gut lining, lower. ‧. inflammation, inhibit a histamine release, improve oxygen utilization and improve. sit. y. Nat. liver functions.. n. al. er. io. 2. Anti-inflammatory. i n U. v. Ling Zhi have anti-inflammatory properties and are therefore used occasionally for. Ch. engchi. patients who have Alzheimer’s and heart disease. This is based on the idea that inflammation plays a part in each of these conditions. The pain that accompanies other inflammatory conditions like neuralgia and arthritis may also be decreased by ganoderma supplements. 3. Lowers cholesterol Ganoderma lucidum mushroom improves the flow of blood to the heart and reduce the amount of oxygen the heart consumes. It can help to lower cholesterol and some of the ingredients may help combat high blood pressure.. 14. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(23) 4. Helps Balance Hormones and Fight Diabetes Research suggests that several antioxidants and anti-inflammatory compounds found in Ling Zhi mushrooms change the way that nerves transmit messages to the brain, improving various functions within the endocrine and central nervous systems and balancing hormones naturally. Ling Zhi mushroom supplementation is used to lower symptoms of diabetes, fatigue and hormonal imbalances, while improving fertility and reproductive health. 立. 政治大. 5. Ling Zhi Improves Anxiety and Depression. ‧ 國. 學. Breast cancer patients reported reduced anxiety and depression, as well as increased quality of life when they received Ling Zhi along with their cancer treatment. The. Nat. sit. y. ‧. group not receiving Ling Zhi did not report these effects.. io. er. 6. Ling Zhi Benefits the Heart. An extract of its protein has been shown to potently lower blood pressure with effects. al. n. v i n C hreduced damage toUthe cells that line blood vessels. In lasting up to 8 hours. It also engchi. people with diabetes, Ganoderma lucidum can help reduce both cholesterol and insulin resistance. 7. Ling Zhi Helps Prevent Cancer It has significant benefits for multiple types of cancer including prostate and breast cancer. It does this via various mechanisms: inflammation reduction, and inhibition of cell and tumor growth. Ganoderma lucidum is useful for both prevention and possible treatment. Ling Zhi suppressed cell adhesion and cell migration of highly invasive breast and prostate cancer cells, which means it, can be potent at reducing tumor 15. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(24) growth. This is a similar approach to the current medical trend of immunotherapy, which is to stimulate the immune system to combat cancer cells. In addition, it is an alternative way to aid the treatment of leukemia. Ling Zhi has been found to significantly decrease fatigue, anxiety, and depression and improve the subjective well-being of breast cancer survivors and patients. Treatment with Ling Zhi for 13 weeks showed reduced tumor growth and weight by roughly 50% and potent inhibition of things like mTOR which promote cancer.. 政治大. Preclinical studies have shown that Ganoderma lucidum has potent anti-tumor activity. 立. and strengthens the immune system in advanced-stage cancer. ‧ 國. 學. According to Dr. Benzie and Dr. Wachtel-Galor in her public book (Benzie and Wachtel-Galor, 2011, chapter 9). There are numerous scientific trial and application on human using Ling Zhi.. Nat. y. ‧. Following is the list that has evidence based on research.. er. io. sit. On Cancer treatment:. “These results provide some evidence that the antitumor effects of G. lucidum are mediated via. al. n. v i n effects on the immune system. However, C h it must be notedUthat all studies were conducted by the engchi same research group and that other direct antitumor effects of G. lucidum have not yet been studied on humans in vivo” (Benzie and Wachtel-Galor, 2011, chapter 9). On others treatments:. “With its growing popularity, many studies on G. lucidum composition, cultivation, and reputed effects are being carried out, and there are data that support its positive health benefits, including anticancer effects; blood glucose regulation; Diabetes Mellitus; Immunomodulation; antioxidant, antibacterial, and antiviral effects; and protection against liver and gastric injury.” (Benzie and Wachtel-Galor, 2011, chapter 9).. 16. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(25) Also from my witnesses on real people surrounding me over several years, I can see real health benefit to the middle-age and senior people. One of obvious evidence is my father case, he has been used this Ling Zhi as his daily water intake (cook Ling Zhi in 10 mins in water pot, it can be drunk as tea) for 3 consecutive years. Before that general health check showed that he had many problems with his high blood pressure, diabetes, weak immune system… Recently, when he went to health check again, almost all symptoms had been gone, his report is green and especially, he has been seldom catch cold or pain in his throat since as he usually got these. 政治大. sicknesses before. I have personally asked several people drinking Ling Zhi, all of them told. 立. me that there are very positive effects like my father case to their health and spirit when using. ‧. ‧ 國. 學. Ling Zhi, and they will definitely continue to use and recommend it to their relatives and friends.. 4.4.3. Advantage of Cultivating Ling Zhi in Vietnam. Nat. sit. y. According to official statistic in 2017 (General Statistic, 2017), there is around 15 million. n. al. er. io. hectares of planted area in Vietnam. There is 41 percent of employment of total employment in. i n U. v. Vietnam working in agriculture (World bank, 2017). Agriculture GDP makes up 15% of GDP. Ch. engchi. in 2017 (General Statistic, 2017). 2017’s rice production was estimated to reach 42.84 million tons. Although the weight of agriculture on total GDP is decreasing over year, but agriculture is still the biggest employment and will continue this lead in next dozen years. For these agricultural products, its output can be reused in many purposes such as: burn to make fertilizers, input for breeding… especially, they are the raw material for cultivating Ling Zhi. Korea and China are among biggest Ling Zhi producers in the world, and they are importing raw materials from Vietnam to cultivate Ling Zhi and other types of mushroom. Important raw material to cultivating Ling Zhi including: sawdust, disposable wood, corncob, cotton wool from textile industry, bagasse, rice bran… Every year, there is around 40 million 17. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(26) tons of these material available in Vietnam, most of them are burned or composted to fertilizers. If we can utilize these materials to cultivating Ling Zhi, the total output will not only double but be more valuable: we can harvest Ling Zhi, at the same time, Ling Zhi cultivating process will metabolize these material into fertilizers. By doing this, we can reduce tons of greenhouse gas from burning these materials, creating many jobs and income for people in remote areas at the time of seasonal break. Also we add value to the economy as benefiting residential health will save spending on medical care. In the economic term, cultivating Ling Zhi in Vietnam will. 政治大. reduce significantly the cost as labor cost is cheap, raw material is abundant at near distance. 立. with lower cost.. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 18. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(27) 5. SWOT Analysis Strengths: -. Branding and technology capability: Our team has the combination of branding and technical field: two members are well-educated and have experience on marketing, branding, communications, and a member having over 10 years on researching, fostering the cultivation of Ling Zhi.. -. Language advantage: our management team is fluent in both English and Mandarin. 治政 which can help us to expand and penetrate to many 大foreign markets. 立 Channel accessibility: IT integration (capability) is available to distribute product via 學. ‧ 國. -. supermarket channel.. Cost advantage: Location of production is at remote area where the material and. ‧. -. resource cost are lower and climate is suitable to cultivate Ling Zhi.. io. sit. y. Nat. Weaknesses:. A new brand without any consumers’ awareness.. -. Don’t have an existing network of loyal consumers.. -. Don’t have experience on delivering via supermarket channel.. -. Transportation cost as far distance from cultivation location to central city (Ho Chi. n. al. Ch. engchi. er. -. i n U. v. Minh City, 350 km). -. Product appeal: imported from Korea is more appeal than local product in term of: size, reputation, product image. (we don’t compete directly with this segment).. Opportunities: -. Market potential: current market penetration is around 2.8% only). -. Consumer’s desire: The need of taking care of health is always there and consumers. 19. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(28) always want a trusted and well-known brand from the fear of using low quality imported product. -. Leading players: There are around 10 current local brands, but no leading brand in this industry.. -. There are several countries selling Ling Zhi at high price, so expanding the market is feasible for long-term.. -. Vietnamese consumers tend to buy local product if this product can be an ideal. 政治大. alternative (similar quality and price) for imported product. -. 立. Growing process: Pure and natural growing environment that can produce better. ‧ 國. 學. product (our growing LingZhi place is located in the highlands of Vietnam, with the height of around 500 meters above sea level which offer a perfect growing factors. ‧. such as: climate, raw material, air and water quality…). y. sit. n. al. er. io. -. Nat. Threats:. i n U. v. Industry barrier is not high, as investment to have a product does not need big capital. Ch. engchi. and the technique to cultivate Ling Zhi can be learnt in short-time. -. Ling Zhi’s benefits and product image perception is low, there would need lot of effort, time and money to disseminate the right info and product perception.. -. Supermarket has more negotiating power, hence can influence our pricing strategy and profit.. -. Depending on few big players increase the risk of losing significant channel if any of them stop cooperating with us.. -. Potential players in agriculture industry can jump on and compete with us from their sufficient financial and marketing resource. 20. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(29) 6. Business Strategy and Financial Plan This section will start with business strategy including pricing strategy would be chosen to define the basic framework to the next section, the branding section., type of product to be introduced to the market, and the channel of distributing the product. Then it would be followed by the detail cost analysis, including fix, variable cost and financial projection.. 6.1. Choosing The Strategy.. 政治大 three generic competitive 立 strategies including: cost leadership, differentiation and focus. The classical typology of competitive strategy from Michael Porter (Porter, 1980), there are. ‧ 國. 學. However, in 1985, he revised these strategies to keep pace with the current world as the strategy can be a combination or singular strategy, so the company can pursue a more focused. ‧. (differentiation-focus, cost-focus) or broader (differentiation, overall cost leadership) market. sit. y. Nat. approach. Porter did not mention about the combination between differentiation and cost. n. al. er. io. leadership. Below figure shows the possible competitive strategies from Porter’s theory.. Ch. engchi. i n U. v. 21. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(30) 立. 政治大. ‧. ‧ 國. 學. Figure 5: Strategy adapted from Michael Porter’s model. Nat. sit. y. (Source: https://www.mindtools.com/media/Diagrams/GenericStrategies.jpg). n. al. er. io. While the business world is going up two directions at the same time, innovation and quality. i n U. v. control drive differentiation in any product out there and also reduce the cost of making product. Ch. engchi. significantly. Few companies sustain its business by focusing on either differentiation or cost. So in 1992, Wright, Pringle and Kroll (Wright et al,1992) advocated the hybrid competitive strategy as the combination of differentiation and cost leadership. It reflects the move of business world up to date that nowadays most of companies pursue at the same time two goals: offering unique product while trying to lower the cost and price to attract more consumers. Below figure shows the possible competitive strategies adapted from Wright and Porter’s theory:. 22. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(31) 立. 政治大. ‧ 國. 學. Figure 6: Strategy adapted from Wright and Porter’s model (Source: http://mbs.edu.mt/hybrid-competitive-strategies/). ‧. Our purpose to create this venture is to offer the healthy and qualified Ling Zhi to as many. Nat. sit. y. consumers as possible. We differentiate us from others by cultivating Ling Zhi in the place. n. al. er. io. where climate and material are most suitable. To reach out many consumers, our price would. i n U. v. be competitive, hence we always look for a way to minimize the cost. From this idea, we decide. Ch. engchi. to purse the hybrid competitive strategy as it fits to our plan and purpose (red rectangular line in figure 4). At the beginning, we focus on a most potential consumer group, at age 40+, but we don’t limit us on this segment, as our brand gains the momentum, we would like to expand our segments to younger group. With this intention, the focus is not part of our overall strategy. Since Ling Zhi falls into two categories: medicine and supplementary. In our business, we would like to promote Ling Zhi as the supplementary and preventative product for consumer’s health rather than medicine. It is also suitable to intrinsic Ling Zhi’s benefit like others medicine from nature that the long-term usage is required and prevention is always better than cure. As our strategy of distribution is through super market channel, the most challenging task is to 23. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(32) persuade super market to accept our product to be shown on their shelves. One of the way is that if we can have the famous and prestigious partner accompanying us to go to negotiate with supermarket, then it would be more chance to win the deal. So one of the step after setting up this venture is to find a right partner, besides current partners who supporting us on technique and marketing.. 6.2. Product Strategy.. 政治大 type of package and its weight. Basically, we offer Ling Zhi under two kind of products: sliced 立 The design of each of product’s package has not conducted yet, however, we have decided the. Ling Zhi and original Ling Zhi cap. They are illustrated on below examples:. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 7: Sliced Ling Zhi (Source: Pictured by the author). 24. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(33) 立. 政治大. Figure 8: Original Ling Zhi Cap. ‧ 國. 學. (Source: Pictured by the author). ‧. Ling Zhi in its original form, the cap, is not easy to be cracked to small pieces. As the more. sit. y. Nat. surface Ling Zhi is exposed to hot water, the more efficiency on extraction. The sliced Ling Zhi. io. er. package is aimed for consumers that have known our brand already, and don’t want to manually. al. crack the Ling Zhi cap into small pieces, instead they just need to take out each slice and brew.. n. v i n C hZhi cap) will be aimed The second package (original Ling e n g c h i U for consumers who first decide to. buy or buying it as the gift to others. It is very common nowadays that lot of young people buy Ling Zhi as the gift to their parents, grand parent, elder relative… We will offer 10% discount on sliced Ling Zhi as the cost to make the package is lower and slices can be made from non-rounded Ling Zhi cap (although the cap shape could be different, but the quality is consistent, hence buying sliced Ling Zhi does not mean buying the lower quality product).. 25. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(34) 6.3. Cost-Benefit Analysis and Financial Projection. To do the cost-benefit analysis, first let’s explore the process to cultivate Ling Zhi from the material preparation to spawn, then to the harvest process. Following is the simple illustration of cultivating Ling Zhi procedure, for each of the step, the picture is attached to give more sense of understanding.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 9: Flow chart of Ling Zhi production (Source: Combined from instruction of Mrs. Danh and pictures taken by the author). Ling Zhi should be incubated and cultivated in-house where we can control the humidity, light and wind. So based on the flow chart, we have 2 cycles of growing Ling Zhi each year for each house. Following is example of house and inside:. 26. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(35) 立. 政治大. ‧ 國. 學. Figure 10: Example of house to cultivate Ling Zhi. (Source: https://news.zing.vn/trong-nam-linh-chi-thu-tien-ty-giua-thanh-pho-post442923.html). ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 11: Example of inside of the house (Source: https://news.zing.vn/trong-nam-linh-chi-thu-tien-ty-giua-thanh-pho-post442923.html). 27. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(36) Below table is the cost detail including fixed and variable cost. Since growing Ling Zhi is characterized on batch, the house should be utilized under full of capacity (the common practice is to build a house at around 100 to 150 m2) for the maximum efficiency. To provide the stable and constant supply chain from material preparation to the output, we separate into many sequent batches. Each house will be filled in 12 batches, 10 days per batch in the order, so that we will harvest the Ling Zhi each 10 days’ period. Table 3: Overall variable cost analysis. 政治大. Total bags can be growth (per year, per house) 45,000. 立. 45,000x1.4 = 63,000. 學. ‧ 國. Total material weight (kg) Dried Ling Zhi and material ratio. 4.5%. Dried Ling Zhi harvested (kg). 2,835. ‧. (Source: Combined by the author). n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 28. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(37) Table 4: Detail variable cost per harvested kg Amount Poly bag (kg). Unit price (VND). Total (VND). 63. 60,000. 3,780,000. Plastic ring (kg). 125. 58,000. 7,250,000. Wheat bran (kg). 11,655. 8,500. 99,067,500. Sawdust (kg). 50,400. 1,500. 75,600,000. Calcium carbonate (kg). 630. 5,000. 3,150,000. Saccarose (kg). 315. 25,000. 7,875,000. 25,000. 41,650,000. Seed (bottle), each bottle can spawn to around 27 bags. 200. 9,000,000. Packaging. 14,175. 2,000. 28,350,000. 74,000,000. ‧ 國. 45,000. Labor cost for material preparation and maintenance (work day). 2,835. io. n. al. er. Variable cost per harvested kg. 349,722,500. sit. Harvest amount (kg). 200,000. y. 370. Nat. Total cost. 學. Labor cost for bagging (bag). ‧. 立. 政 1,666治大. i n U. v. 123,359. (Source: Combined by the author by current market cost). Ch. engchi. 29. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(38) Poly bag (kg) 100,000,000 Labor cost for material preparation and… 80,000,000. Plastic ring (kg). 60,000,000 Packaging. 40,000,000. Wheat bran (kg). 20,000,000 0 Labor cost for bagging (bag). Sawdust (kg). 政治大. Seed (bottle), each bottle can spawn to around 27 bags. 立. Calcium carbonate (kg). Saccarose (kg). ‧ 國. 學 Figure 12: Variable Cost Analysis. ‧. (Source: Combined by the author based on current market cost). n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 30. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(39) Table 5: Fixed cost analysis Depreciation period Annual (year) Depreciation. Annual Capital spending(VND) expenditure. Fixed cost House. 230,000,000. 5. 46,000,000. Steaming and drying machine. 150,000,000. 5. 30,000,000. Land (renting). 20,000,000. Electricity and Water. 10,000,000. Delivery and Transportation. 20,000,000. 政治大. 立 120,000,000. Administrative cost. 200,000,000 496,000,000. ‧. (Source: Combined by the author by projected cost). io. sit. y. Nat 46,000,000. n. al. er. Total. ‧ 國. Marketing. 50,000,000. 學. Miscellaneous spending. Ch. iv n U 20,000,000 30,000,000. engchi. 200,000,000. 10,000,000 20,000,000. 50,000,000. 120,000,000. Housing. Steaming and Drying machine. Land (renting). Electricity and Water. Delivery and Transportation. Miscellaneous spending. Administrative cost. Marketing. Figure 13: Fixed Cost Analysis (Source: Combined by the author based on current market cost) 31. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(40) To offer easy accessibility for consumers, we select our distribution channel via supermarket. There is no competitor in market is doing via this channel. We anticipate some of difficulties when dealing with this channel: first it is hard to get the approval to put our brand on supermarket’s shelf, second we need a solid backend and IT system to integrate to the distribution system of the market, third the margin for supermarket could be higher if our product does not appeal and boost the sale… However, we can sustain and expand extremely. 政治大 to negotiate with supermarket at margin of 20% on selling price. Following is our projected 立. fast if this model is successful as we can exploit the existing massive distribution. We suppose. ‧ 國. 學. financial plan for first year, suppose first year we utilize one house: Table 6: Financial projection for first year 2,835.00. ‧. Produced amount Consumer price. 1,000,000.00. io. sit. y. Nat. n. al. er. Margin for supermarket Variable cost. Gross margin. Ch. engchi. Gross profit. i n U. v. 0.20 0.13 0.67. 1,899,450,000.00. SG&A and Depreciation. 496,000,000.00. Net Profit. 1,403,450,000.00. (Source: Combined by the author by projected price, revenue and cost). 32. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(41) Inside revenue analysis. 20%. 49.5% 13.00%. 17.50%. Supermarket Margin. 政治大 Variable cost. Fixed cost. Net profit. 立 Figure 14: Revenue Insight. ‧ 國. 學. (Source: Combined by the author). Suppose our growth rate is double each year. Our variable cost will increase double each year.. ‧. The fixed cost will increase slightly more than increase in revenue, as we need to recruit more. sit. y. Nat. people, more complexity in management, delivery system and wider distribution area. So I. io. al. er. suppose the increase speed would be 2.1 each year. Based on these numbers, following is our. n. projected financial plan for 5 years.. Ch. engchi. i n U. v. 33. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(42) Table 7: Financial projection for next 5 years 2019F. 2020F. 2021F. 2022F. 2023F. Production (KG). 2,835. 5,670. 11,340. 22,680. 45,360. Revenue (millions VND). 2,835. 5,670. 11,340. 22,680. 45,360. Net sale (millions VND). 2,268. 4,536. 9,072. 18,144. 36,288. Gross profit (millions VND). 1,899. 3,799. 7,598. 15,196. 30,391. 4,593. 9,646. Fixed cost (millions VND). 496. Net profit (millions. 立1,403. VND). 治 2,187 政 1,042 大 2,757. 5,410. 10,602. 20,745. 120,934. 237,300. 465,006. 909,866. Profit margin (%). 50. 49. 48. 47. 46. ‧ 國. 61,555. 學. Net profit (USD). (Source: Combined by the author by projected price, revenue and cost). ‧ y. Nat. n. al. er. io. 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0. sit. Revenue and Profit projection for 5 years. 2019F. Ch. engchi. 2020F. 2021F. Revenue (millions VND). i n U. v. 2022F. 2023F. Net profit (millions VND). Figure 15: Projected revenue and profit (Source: Combined by the author by projected price, revenue and cost) The marketing and administrative cost will also increase by 2.1 times each year. That is for ease of projection, in reality, we would be flexible to take portion of its budget to invest in R&D and. 34. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(43) apply new technology to reduce CO2, such we can setup a solar energy system on rooftop of the house to reduce the heat down to house and also generate electricity for water pumper and drying machine. Following is the comparison between our price and some major competitors’ price and production: Table 8: Brand identity and pricing comparison HiLAND. 立. Brand identity. Lâm. ‧. ‧ 國. 學 1,200,000. Supermarket. Special websites and Pharmaceutical. 1,500,0000. sit. y. Ch. export. engchi. er. al. n Cultivation location. Linh Chi Nông. 1,000,000 VND. io. Sale Channel. 政治大. Nat. Price per KG. Linh Chi Vina. i n U. v. Stores. High land – DacLak (350 Cu Chi - Ho Chi Minh Thu Duc - Ho Chi km far away from Ho city. Minh city. Chi Minh City) Production per year. 2.8 tons in 1st year. 30 tons. ~3 tons. (Source: Combined by the author from various sources). 35. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(44) 7. Branding and Marketing This section brings about the brand, defining our purpose and vision to create this venture, to brand idea and statement that make this brand different with others.. 7.1. Vision and Mission From previous analysis, the market potential of Ling Zhi is not realized yet, and there is miss perception about Ling Zhi. Hence this venture is created with the vision to foster the healthy daily intake for people. I imagine in the future, Ling Zhi would be used so commonly as tea. 治政 right now in Vietnam, Taiwan... Actually, in several perspectives, 大 Ling Zhi likes tea, such as: 立 Ling Zhi that is cultivated in suitable environment and technique is much better than wild Ling ‧ 國. 學. Zhi as the harvest time must be very precise; if passing away the right harvest time, Ling Zhi. ‧. becomes wood; The same with tea leaves, the most expensive tea is growth in the mountain with the right harvest time; the way to brew tea is similar to Ling Zhi, as dipping it into the hot. y. Nat. er. io. warm, so does Ling Zhi…. sit. water for a while; tea is bitter, so is Ling Zhi; tea to be used at best when it is hot or at least. n. a. iv. Vision: To foster the habit ofl healthy n to people C daily Ling Zhi intake. hengchi U. To realize the vision as offer daily intake Ling Zhi to people, we need some of strategic actions. First is to create a quality product, it is the most important element of creating a brand. With LingZhi, we identify that qualified Ling Zhi should be cultivated in most suitable environment with the best practice scientific technique. Second is to offer the affordable price so that even low income people could purchase. We have several solutions to offer the affordable price while still have decent profit to sustain our business including: reducing the cost by using technology, finding the right place to have available cheap raw materials, labor and suitable growing. 36. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(45) environment…; using the best and massive distribution channel to get revenue that can offset the margin, we will discuss about the distribution channel in next section. So our mission:. Mission: To offer Ling Zhi with authenticity and quality at affordable price.. 7.2. Brand Logo, Slogan and Statement. Following is our logo for our official brand name: HiLAND LingZhi. The logo has the background color at reddish brown which is the color of dried Ling Zhi. The mountain. 政治大. represents the place we cultivate Ling Zhi, it is at the high land surrounded by the mountain. 立. which create the ideal climate for Ling Zhi growing up. Inside the last letter D, the image of. ‧. ‧ 國. 學. fresh Ling Zhi with the color at the time that is ideal for the harvest (fresh dark orange color).. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 16: Logo of HiLAND Ling Zhi (Source: Designed by the founder’s team). Slogan: The Gift of Nature As we focus on the benefit on people’s health when using Ling Zhi. The process and raw materials involve in the spawn and growth of Ling Zhi come from flora, plus the fresh environment with the least intervention from human. So our Slogan represents our idea and process which we cultivate Ling Zhi. And the most important, it transforms to become. 37. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(46) something a gift, to says that we care our consumer’s health. Following is the brand’s statement that we would like to incorporate to our label, to our advertising and communications:. Brand statement: “HiLAND Ling Zhi, the gift of nature, is cultivated in the high land area surrounded by green mountain. This terrain brings the best ideal climate for Ling Zhi, plus plentiful raw material in place and technology applied in spawning and growing. We offer HiLAND Ling Zhi with our utmost commitment to its authenticity and quality.”. 立. 政治大. 7.3. Brand Association and Launching Marketing.. ‧ 國. 學. We would like to communicate our five association of our brand as following, it would be consistent in anything we say, act and do to public.. ‧. n. engchi. User: HiLAND looks like a senior, elegant and healthy lady with her love toward the cap of Ling Zhi. er. io. Ch. sit. y. Nat. al. Experience: The feeling of healthier, happier and confidential on the brand.. i n U. v. Organization: Trustworthiness, high commitment on environment and technology.. Identity: Shape of Ling Zhi cap with reddish brown color in the green mountain.. Product: authenticity and good quality with simple and professional packaging. Figure 17: Five associations of the brand (Source: model from Simon Koh, 多品牌成就王品, 2012) 38. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(47) It’s time to launch the product, here is our launching event to introduce our new brand to the market. It will be conducted after negotiating with supermarket chain to put our product in the shelf, finishing all integration with supermarket distribution and billing system, account receivable and account payable policy… Table 9: Launching Event Avenue. 政治大. Agriculture Exhibition, Ho Chi Minh City. 學. Approach. 立. Beginning of 2019. ‧ 國. Time. Hire the agency to plan the launching. Rent the best location and. sit. y. al. er. 1. Invite Journalists and Scientists. io. Activities. 200,000,00 VND (~9,500 USD). Nat. Budget. ‧. biggest booth.. v. n. 2. Opening speech and welcome performance. Ch. engchi. i n U. 3. Teaching how to brew Ling Zhi and invite guests to drink 4. Corner decorated with pictures of cultivation place, techniques, health benefits. 5. Branded packages available to gift important guests and guests who fill our survey. (Source: Written by the author). 39. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(48) 8. Future Development 1. We commit to increase the fixed cost to the same growth rate of revenue. Beside to increase the marketing budget to build a strong brand and recruit talent, we reserve the rest to focus on R&D and learning new spawn and new kind of mushroom that is suitable to cultivate in our place. 2. Slowly build our shopping website in collaboration with delivery partner, also look for partner with common e-commerce websites such as: tiki, lazada, shopee… We will be. 學. ‧ 國. 3.. 治政 consistent on pricing, unique price to various channel. 大立 Expand our product portfolio to include various kind of mushrooms if there is. potential market such as: piziza mushroom, oyster mushroom, Volvariella volvacea …. ‧. 4. At beginning, we set our labeling in English, Vietnamese and Chinese. From second year, we will bring our product to join international agriculture exhibition to expand. y. Nat. io. sit. our market reach.. n. al. er. 5. Apply technology to save cost and increase the efficiency such as: put solar cells on. Ch. i n U. v. rooftop to generate electricity for drying machine and water pumper, at the same time. engchi. reduce the heat to the house; using IoT to constantly measure the growing environment and automatically run the facility to maintain the ideal environment without human intervention, this can save lot of labor cost, and especially, limit the presence of human which can infect the environment.. 40. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

(49) Reference Yun Cao, Sheng-Hua Wu, Yu-Cheng Dai (2012). "Species clarification of the prize medicinal Ganoderma mushroom "Lingzhi"". Fungal Diversity. doi:10.1007/s13225-012-0178-5. Reishi Essence LLC (2006). What is Ling https://www.lingzhiessence.com/what-is-Ling Zhi.. Zhi.. Retrieved. from:. Iris F. F. Benzie and Sissi Wachtel-Galor (2011). Herbal Medicine: Biomolecular and Clinical Aspects. 2nd edition. Boca Raton (FL): CRC Press/Taylor & Francis. Retrieved from: https://www.ncbi.nlm.nih.gov/books/NBK92757/.. 政治大. 立. ‧. ‧ 國. 學. Nguoi Lao Dong (2017). Hoa mắt với thị trường nấm linh chi. Retrieved from: http://giadinh.net.vn/thi-truong/hoa-mat-voi-thi-truong-nam-linh-chi20170901112724401.htm.. y. Nat. Doanh Nhan Saigon (2018). Tầng lớp trung lưu: Nấc thang mới của nền kinh tế Việt Nam. Retrieved from: https://doanhnhansaigon.vn/goc-nha-quan-tri/tang-lop-. al. er. io. sit. trung-luu-nac-thang-moi-cua-nen-kinh-te-viet-nam-1085046.html.. v. n. Amcham Vietnam (2016). Vietnam’s middle class set to double by 2020: BCG. Retrieved from: http://www.amchamvietnam.com/vietnams-middle-class-set-todouble-by-2020-bcg/.. Ch. engchi. i n U. Ha Nam (2017). Đề xuất đưa nấm Linh chi vào danh mục sản phẩm quốc gia. Retrieved from http://kinhtevadubao.vn/chi-tiet/222-9126-de-xuat-dua-nam-linh-chi-vaodanh-muc-san-pham-quoc-gia.html. Linh. Chi. Nong. Lam. (2018).. Danh. sách. đại. lý.. Retrieved. from:. http://linhchinonglam.com/tin-tuc/107/danh-sach-chuoi-cua-hang-medicare.html. General Statistic (2018). Statistical data from General Statistics Office of Vietnam. Retrieved from: http://www.gso.gov.vn. World Bank (2017). Employment in Agriculture. Retrieved from:. 41. DOI:10.6814/THE.NCCU.IMBA.024.2018.F08.

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