一對一寵物陪伴服務之商業企畫書 - 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 Master’s Thesis. 學. ‧ 國. 立. 政治大. ‧. Nat. er. io. sit. y. 一對一寵物陪伴服務之商業企畫書 n. One by One Animal Accompany Service Business Plan a. iv l C n hengchi U. Student: Chao, Hsu-Hsin Advisor: Professor Carol Lin, PHD. 中華民國一〇七年六月 June 2018. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(2) 一對一寵物陪伴服務之商業企畫書 One by One Animal Accompany Service Business Plan. 研究生：趙煦昕. Student: Chao, Hsu-Hsin. 指導教授：林月雲. 立. Advisor: Carol Lin. 政治大國立政治大學. ‧ 國. 碩士論文. 學. 商學院國際經營管理英語碩士學位學程. ‧ y. sit. Nat. A Thesis. Submitted to International MBA Program. er. io. n. Chengchi University aNational iv l Cfulfillment of the Requirements in partial n hengchi U for the degree of Master in Business Administration. 中華民國一〇七年六月 June 2018. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(3) Abstract One by One Animal Accompany Service Business Plan By Chao, Hsu-Hsin The modern society has provided many conveniences in our lives, but many of these new advancements creates a bigger hole emotionally. Many of us may not admit it, but loneliness or lack of caring among people has taken a hefty toll in our lives, so many of us stare at electronics. 治政 longer than we actually interact with our love ones. My 大business plan is to provide a 1 on 1 立 setting between lonely people and abandoned animals in a cozy and relaxing environment and ‧ 國. 學. have the option to have some light food and drinks. I see lots of potential and moreover, we. ‧. provide a second chance for the animals and a simple way for emotionally challenged individuals to start reaching out again.. y. Nat. er. io. sit. The abandoned pet crisis recently in Taiwan, although not direct outcome, but a collateral damage. My service also helps relieve the overflowing capacity issue of animal shelters, it. n. al. Ch. i n U. v. brings the awareness of both caring for new psychological issues the modernized and. engchi. material-centered society brings and animals whom lost a family. We will be located in Yangmei district in Taoyuan city because of an early entry on a rapidly growing young population. We will assist regional public animal shelters in training and provide emotionally stable animals as our “caring staff” to serve customers to create an environment easy for them to relax. Our one by one animal accompanying service will be the first in Taiwan. That gives us the first-mover advantage and the total return period will be 3.25 years. Keywords: One by one, Animal, Accompany, Loneliness, Abandon, Dogs, Cats i. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(4) TABLE OF CONTENTS. Background ............................................................................................................. 1. 1.2. Pet Industry Overview ............................................................................................ 2. 1.3. Market Overview .................................................................................................... 4. 立. 政治大. Executive Summary.......................................................................................................... 8. 學. The company .......................................................................................................... 8. 2.2. The Objectives ........................................................................................................ 8. 2.3. Mission Statement .................................................................................................. 8. 2.4. Business Model ...................................................................................................... 9. 2.5. The proposal ......................................................................................................... 10. ‧. 2.1. io. sit. y. Nat. al. n. 3. 1.1. er. 2. Introduction ...................................................................................................................... 1. ‧ 國. 1. Ch. engchi. i n U. v. Company overview ......................................................................................................... 11 3.1. Products, Value and Customers ............................................................................ 11. 3.1.1. Products and Services ............................................................................... 11. 3.1.2. Value......................................................................................................... 14. 3.1.3. Customers ................................................................................................. 15. 3.2 3.2.1. Manpower allocation ............................................................................................ 16 Job description .......................................................................................... 16 ii. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(5) Organization chart .................................................................................... 17. 3.2.3. Salary structure ......................................................................................... 17. 3.3. Entry and Grow Strategy ...................................................................................... 18. 3.4. Location ................................................................................................................ 19. 3.5. Sourcing ................................................................................................................ 20. 3.6. Price strategy ........................................................................................................ 20. 3.7. Promotion and advertising Strategy ..................................................................... 21. 立. 政治大. Industry ........................................................................................................................... 23. ‧ 國. 學. Pets in Taoyuan city ............................................................................................. 23. 4.2. Accommodation and Catering in Taoyuan city .................................................... 24. 4.3. Industry structure .................................................................................................. 25. ‧. 4.1. io. sit. y. Nat. 4.3.1. New entrants ............................................................................................. 26. 4.3.2. Bargaining power of suppliers and buyers ............................................... 26. 4.3.3. Competitive Rivalry ................................................................................. 27. 4.3.4. Substitutes................................................................................................. 28. n. al. er. 4. 3.2.2. 5. Ch. engchi. i n U. v. Market ............................................................................................................................. 30 5.1. Target Market ....................................................................................................... 30. 5.1.1. Segment .................................................................................................... 31. 5.1.2. Size ........................................................................................................... 31. 5.2. Demand Forecast .................................................................................................. 33 iii. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(6) Forecast Assumptions ............................................................................... 38. 5.2.2. 4P's of the business plan ........................................................................... 39. Potential Risk .................................................................................................................. 40 6.1. Unacceptable Risk ................................................................................................ 40. 6.2. Risk of varying quality ......................................................................................... 40. 6.3. The risk that the product cannot be stored ............................................................ 41. 6.4. Operation Plan ................................................................................................................ 43. y. sit. Apply for business license ........................................................................ 44 Tax Registration ....................................................................................... 44. io. 7.1.3. Apply for a health permit.......................................................................... 44. Nat. 7.1.2. ‧. 7.1.1. Legal Environment ............................................................................................... 44. er. 7.1. 學. 7. 治政 The risk of income lose due to the illness or大 injury of store owner ..................... 42 立 ‧ 國. 6. 5.2.1. al. n. v i n Financial Projection ....................................................................................................... 45 Ch engchi U. 8. 8.1. Variable Costs ...................................................................................................... 45. 8.2. Fixed Costs ........................................................................................................... 47. 8.3. Initial Investment .................................................................................................. 48. 8.4. Break Even Analysis ............................................................................................ 50. 8.5. Income Statement ................................................................................................. 52. 8.6. Cash Flow and Net Present Value Analysis ......................................................... 53 iv. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(7) 8.6.1. Cash Flow ................................................................................................. 53. 8.6.2. Net Present Value Analysis ...................................................................... 55. 8.7. Payback Period of Investment .............................................................................. 56. 9. Conclusions ..................................................................................................................... 58. 10. References........................................................................................................................ 60. 政治大. 立List of Figures and Tables. ‧ 國. 學. National dog and cat statistics .................................................................................. 3. Figure 2. Number of people, dogs and cats in Taoyuan city ................................................. 24. Figure 3. Households in Yangmei ......................................................................................... 32. Figure 4. Household structure in Yangmei ............................................................................ 32. Figure 5. Number of household near proposed location........................................................ 33. Figure 6. New building project near proposed location ........................................................ 34. Figure 7. Population and number of increasing in Yangmei ................................................. 36. Figure 8. Population density in Yangmei .............................................................................. 36. Figure 9. Population increase profile in Yangmei ................................................................. 37. ‧. Figure 1. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 10 Population growth rate in Yangmei ....................................................................... 37 Figure 11 Store layout ............................................................................................................ 43. Table 1. National dog and cat statistics.................................................................................... 2. Table 2. Number of dogs and cats in Taoyuan ......................................................................... 5 v. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(8) Table 3. Number of animals in Taoyuan shelter ...................................................................... 5. Table 4. Number of animals in Taoyuan shelter in 2018 ......................................................... 6. Table 5. Reasons of abandonment ........................................................................................... 6. Table 6. Salary structure ........................................................................................................ 18. Table 7. Price Calculation ...................................................................................................... 20. Table 8. Number of people, dogs and cats in Taoyuan city ................................................... 23. Table 9. Number of units and production .............................................................................. 25. 政治大. Table 10 Comparison with competitors.................................................................................. 28. 立. Table 11 New building projects .............................................................................................. 35. ‧ 國. 學. Table 12 Cost of normality menu ........................................................................................... 46 Table 13 Cost of exotic menu ................................................................................................. 46. ‧. Table 14 Direct costs .............................................................................................................. 47. y. Nat. sit. Table 15 Overhead costs......................................................................................................... 47. n. al. er. io. Table 16 Initial investment ..................................................................................................... 49. i n U. v. Table 17 Fixed cost without amortization & depreciation ..................................................... 50. Ch. engchi. Table 18 Net present value and discount rate ......................................................................... 55 Table 19 Cash flow of each year ............................................................................................ 56 Table 20 Payback balance of One by one animal ................................................................... 56. vi. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(9) Introduction 1.1. Background I always volunteer at animal shelters. I feel sad for those animals and I want to do more than just volunteering. I really hope more loving people may adopt those lovable animals, but I also can understand the difficulties of keeping a pet. The complexity of living standard in Taiwan makes it difficult to have a pet. As an animal lover and animal helper, there are always three questions in my mind. Is there anyone who may adopt animals? Is there a place we can play with. 治政 animals? Is there a place we can pet and hold the animals? 大立 I used to have pets while I was a child. I know how life is better to have a fluffy family member. ‧ 國. 學. Much research also indicates interact with dogs and cats can increase oxytocin (the. ‧. neurohormone that elicits feelings of happiness), decrease anxiety, depression and loneliness. It even benefits to those with mental health conditions. To interact with pets can also reduce blood. y. Nat. er. io. sit. pressure and heart rate and, improving learning ability. I also understand how difficult it is for most people to keep a pet, especially in today’s Taiwan job market that they need to spend most. n. al. of their personal time at work.. Ch. engchi. i n U. v. An idea grew in my head. What if I link the needs together? I can open a store which adopts shelter animals and provide services for those people who wants to have a pet but not allowed to have one. I heard a lot of people say they love animals and they really want to have one, but they don't have time or they don't have enough space to do so. There are more and more new building projects in Yangmei, and more and more people are moving in. There is no public place, providing leisure and fun yet. Thus, we believe this innovative service should be successful.. 1. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(10) 1.2. Pet Industry Overview The changes of Taiwan in demographic structure, lifestyle, interpersonal alienation, declining birth rate, aging, having a household pet is keeping trend as the number of household pets are continuing to grow. According to the statistics of Animal Protection Information of Executive Yuan (please refer to Table 1), there were 2.5 million dogs and cats in Taiwan in 2017. The meaning of having a pet is different now, in the past, they were given a role, like a watchdog or catching a mouse. Today, people keep pets as family members. The needs in food, cloth,. 政治大. medical and other related needs are growing year over year. The estimate market is NTD 50. 立 Table 1. 學. ‧ 國. billion.. National dog and cat statistics 2013. 2015. 2017. Dog. 1,271,920. 1,533,813. 1,741,602. 1,714,238. 1,777,252. Cat. 281,600. 372,951. 578,993. Total. 1,553,520. Ch. 2,320,595. n. 1,906,764. engchi. Source: Reproduced from Animal https://animal.coa.gov.tw/html/index_06.html. Protection. y. sit. 567,939. 733,207. 2,282,177. 2,510,459. er. io. al. ‧. 2011. Nat. 2009. i n U. v. Information. of. Executive. Yuan. 2. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(11) Figure 1. National dog and cat statistics. Source: Reproduced from Animal Protection Information of Executive Yuan https://animal.coa.gov.tw/html/index_06.html. At present, whether globally or within Taiwan, the biggest consumption is what pet owner spends on their pets in the pet market. The pet industry value is related to the number of pets. Pet food has the biggest market share in the global pet market. The global pet food market value reached US$9.7 billion in 2017, followed by pet supplies and services.. 治政 increasing. Considering Maslow's Hierarchy of Needs, 大 the increasing pet number means love 立 and belongingness needs of people are still not met. However, even when the market is growing, Despite pet industry being vulnerable to the influence of the economy, the number of pets is still. ‧ 國. 學. the pet owner ratio of households in Taiwan is only 29%. There are still 71% of households not. ‧. having a pet. (We assume one family has one pet. There were 2,510,459 dogs and cats in Taiwan in 2017 and 8,649,000 households in Taiwan in 2017.) In China, there is even an APP. y. Nat. er. io. sit. provides pets owners' daily life to those people who can't have a pet to watch and virtually pretend they are pet owners as well. According to a statistic of Eolembrain in 2009, among. n. al. Ch. i n U. v. 9,712 respondents, there were over 50% of respondents had a pet, and 74% of respondents who. engchi. didn't have a pet wanted to have one. We can expect that it will be another business opportunity to satisfy those people who don't have a pet. Now, there is no dedicated one to one animal accompanying service in Taiwan. Most similar competitors are coffee shops that provide animal accompanying service as an added value. In Japan, there are stores providing animal accompanying service, but it's not one to one. The price of animal accompanying service in Japan is about 1,500 Japanese yen per hour. Considering the exchange rate and the iPhone pricing index (It cost Taiwanese 1 month’s salary to buy an 3. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(12) iPhone, but only cost Japanese 19 working days.), the price is about NTD 270.. 1.3. Market Overview In the 1970s, people kept a dog as a guard dog in Taiwan. In the 1990s, the concept of "animal companions" had risen and people started to accept that pets are family members. People today are not as close as they were in the farming era. They often left lonely as society progresses toward a modernized smaller family size. Combining with the influence of low birth rate, the. 政治大 According to the statistic of Animal Protection Information, except new Taipei City and 立 atmosphere of keeping pets has gradually expanded.. Kaohsiung City, Taoyuan city had the largest number of dogs and cats in 2017. Observing a. ‧ 國. 學. national survey of the number of dogs and cats in two years, we notice that the number of cats. sit. y. Nat. 2.. ‧. and dogs in Taoyuan city also showed an upward trend from 2013 to 2017, please refer to Table. io. er. However, according to the statistic of Animal Protection Information, the number of shelter's animal was decreased from 2013 to 2018 (please refer to Table 3 and 4), and the animal adopted. al. n. v i n rate was over 80%. Especially in shelter's animal number decreased rapidly CFebruary h e n g2017, h c i U. after the implementation of the new law of zero-euthanasia. But, after the calculation, the. number of cats and dogs newly added to the shelter each year was still increasing. It was almost overcome the number of adopted in 2016 and 2017. The new intake rate even shows an upward trend. We understand through the staffs of shelter most of animals are abandoned by their owner and not homeless. The number dogs and cats in Taoyuan city shelter increased by 8,565 (6,277+2,288) between 2016 and 2017. It would be 4282 if 50% of them were abandoned. Compared with the increment of pets in Taoyuan city is 1,006 (221,741-200,735), the number of abandoned animals was 4 times higher. 4. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(13) Table 2 City. Number of dogs and cats in Taoyuan. Year. Dogs. Cats. Total. 2013. 152,873. 41,873. 194,746. 2015. 176,672. 44,063. 220,735. 2017. 174,894. 46,847. 221,741. Taoyuan city. 政治大. Source: Reproduced from Animal Protection https://animal.coa.gov.tw/html/index_06.html. 立. of. Executive. Yuan. Number of animals in Taoyuan shelter. ‧. ‧ 國. 學. Table 3. No. of. Adopted Remained Newly added. y. Year. io. al. n. 2013. 2014. 10,058. Ch. sit. animals. 5,435. er. Nat. City. Information. v ni. 4,623. e n g 6,648 c h i U1,947. 8,595. 3,972. Taoyuan 2015. 7,745. 6,648. 1,097. 5,798. 2016. 7,374. 6,421. 953. 6,277. 2017. 3,241. 2,874. 367. 2,288. city. Source :Reproduced from Animal Protection https://animal.coa.gov.tw/html/index_06_2.aspx. Information. of. Executive. Yuan. 5. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(14) Table 4. Number of animals in Taoyuan shelter in 2018. Month. No. of. City. Adopted Remained Newly added of 2018 animals 1. 214. 177. 37. -. Taoyuan. 2. 97. 91. 6. 60. city. 3. 6 181 治政大23 197 174. 181. 187. 4 立. Information. of. Executive. Yuan. ‧. ‧ 國. 學. Source: Reproduced from Animal Protection https://animal.coa.gov.tw/html/index_06_2.aspx. 191. According to the statistic from various shelters, the most reasons of abandonment are. sit. y. Nat. as follow:. io. n. al. Reasons of abandonment. er. Table 5. Reasons of abandonment. Ch. People. engchi. i n U. v. Pets. Financial situations. Noise. Moving out. Sickness. Pregnant situation. Behavior problem. Sickness Family opposition 6. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(15) Couple breakup Source: Reproduced from Taiwan Animal News http://www.tanews.org.tw/info/9912. We see the needs of pet owners and abandoned animals. Changes in the overall society have increased the number of people who need pets to accompany their emotional needs, but the number of abandoned animals has also increased. That gives us the idea of exclusive animal accompany service. We can provide a home for abandoned animals and share the responsibility. 治政 The population of Taoyuan city is 791,614. One third of 大 residents keep a pet and average 2,141 立 pets are abandoned each year. It is estimated that there is a 1% ratio of abandoned pets. Yangmei of keeping a pet for our customers.. ‧ 國. 學. population is 7% of Taoyuan city and it is estimated that Yangmei has 150 abandoned pets a. ‧. year. It is conservatively estimated that the abandoned pet has only one owner, plus 39,750 potential customers who don't have a pet, thus come to a total of 39,900 people. If each of them. y. Nat. er. io. sit. comes to our store once per year, it would be 151 customers per day, this indicates we have a potential market for our first store.. n. al. Ch. engchi. i n U. v. 7. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(16) 2. Executive Summary 2.1. The company Our business will be a place which provides one to one animal accompanying service, help comforts customer's emotions and make those stray animal's second chance more meaningful. Our service helps society in a win-win situation with both the issue of emotionally challenged individuals and overflowing the capacity of animal shelters. We also bring awareness to care for our society.. 立. 2.2. The Objectives. ‧ 國. 學. . 政治大. Create a brand-new service to provide 1 to 1 environment for people who wants to. ‧. have a pet but they can't. Share the cost and responsibilities of having a pet.. . Provide the alternatives of helping animals.. . Reduce the number of stray animals.. . Give stray animals a home.. . Provide awareness of animal caring.. . Provide the best animal accompanying service to our customers.. . To be the first one to one accompanying service in Taiwan.. n. Ch. sit er. io. al. y. Nat. . engchi. i n U. v. 2.3. Mission Statement Enhance the value of stray animals' second chance. Comfort city peoples’ emotion difficulties. Love animals and fully enhance animal rights.. 8. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(17) 2.4. Business Model One by one animal accompany service provide one to one animal accompanying service. Every customer will have an exclusive space with an animal to play with. Our “caring staffs” will be adopted from a shelter and trained to attract customer's affection. 1. Our revenue will be from two sources: . Animal accompanying service. . Food and drinks. 立. 政治大. 2. We will focus on the following strategies. ‧ 國. 學. . The first is differentiation strategy. Many similar business models in Taiwan are pet coffee shop. They mostly provide food and drinks. They have store, pets hanging. ‧. around in the store, but don't provide any animal accompanying service. Customers. y. Nat. sit. can interact with these animals only if they are lucky to have the chance. We will. n. al. er. io. provide one to one animal accompanying service to ensure every customer can have. i n U. the environment to be with our “caring staff”. . Ch. engchi. v. Low pricing strategy in food and drinks: The concept of our service is new and innovative in Taiwan and this helps us to set new pricing strategy. My plan is to earn the majority of revenue in animal accompanying service, and we set the price of food and drinks low to provide customers an easy to consume in our store.. 3. We will focus on the following customers . Single individuals. . Couple with no child. . Couple with one child 9. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(18) 4. The competitive advantages will support our store . Differentiated product. . First-mover advantage. 2.5. The proposal There are more and more new build buildings and increasing young population along the rapid development of Yang-Mei City in recent years. The housing environment with big , complex. 政治大. apartments are not suitable for keeping a pet. The rapid-speed of life style and national slow. 立. birth rate causes this unique emotionally loneliness demographic. There are more and more. ‧ 國. 學. restaurants and coin laundry shops open daily, but no-one is taking care of those lonely hearts. We see their needs, but we don't see many competitions. The region only has one brand name. ‧. coffee shop (Starbucks) and 3 small family-owned coffee shops. There are no other places for. y. Nat. sit. people to relax in peace. We are going to adopt pets from local animal shelters and dedicate our. n. al. er. io. expertise in training animals, preparing food and beverage. We will provide the feeling of loved and welcomed. We will make them feel like home.. Ch. engchi. i n U. v. This business plan will describe the opening of One by one animal accompany service in Yangmei of Taoyuan City, which will provide high quality of animal accompanying service to help our customers relieve from the stress of a long day’s work and help solving the overflow issue of animal shelters.. 10. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(19) 3. Company overview 3.1. Products, Value and Customers 3.1.1.. Products and Services . One by one animal accompanying service. Our major products will be one to one animal accompanying service. Homely feeling, warm welcome by dogs, the tension relieved by cats, and our store manager will listen to all kinds of. 政治大 dogs come to you and give you 立a warm welcome. You will feel loved and welcomed. Our store. talking from the customers. Imaging when you walk in our place after a long day of work, our. ‧ 國. 學. manager treats you like you are a member of this family. When you sit down, there may be a small, cute, fluffy cat lying beside you, welcoming you to pet him/her. You can play with those. ‧. cute buddies before you go home. You also can have some light meal to eat and have someone. n. al. er. io. sit. y. Nat. to talk and listen to if you want. This place is opened just like a home.. Ch. engchi. i n U. v. Our innovative and humanity service will be our competitive advantage. There isn’t any one to one animal accompanying service in Taiwan and there is only one major coffee chain store, Starbucks, providing standard service near proposed location. They provide only physical products like food, drinks, and a place to sit. Nowadays, customers can easily get any physical product through online shopping. Services to fulfill insufficient of people's emotional life will 11. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(20) be the only need to motivate people to walk into a store in the future. . food and drinks. Our physical product will be food and drinks. Because there are several convenience stores and many small restaurants nearby (i.e. personal hot pot, pan-fried dumpling, Chinese noodles, fried chicken, buffet...the list goes on and on). We'll provide light food like jam toast or butter bun. We'll also provide exotic food like Korean food or Japanese food or Western-style food.. 政治大. Those exotic food menus will change periodically to keep a feeling of freshness and depend on. 立. seasonal ingredients.. ‧ 國. 學. Our normality menu:. sit. y. Nat. Hot/Cold tea $20. ‧. Hot/Cold coffee $20. al. n. Coffee Milk $40. io. Milk Tea $40. er. Soda with fruit $40. Ch. engchi. i n U. v. Bun with butter and red bean paste $40 Jam toast $20 Toast bar $10. 12. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(21) Source: Google image. We may provide the following as our exotic menu: This is a sample not a final version of our menu. Our exotic menu will change periodically. 政治大. based on seasonal ingredients.. 立. Bibimbap (Korean mixed rice with vegetable and meat) $100. ‧ 國. 學. Jjambbong (Korean sea food noodles) $130 Kimchi soup $100. ‧. Fried rice $50. y. Nat. sit. Tsukemen (Dipping noodles) $60. n. al. er. io. Ochazuke (Hot tea is poured over cooked white rice topped with a few simple ingredients) $40. Ch. Onigiri (Japanese rice ball) $30 Japanese packed lunch $80. engchi. i n U. v. Teishoku (Japanese Combo meal) $100 Curry rice with fried pork chop. $100. Baguette with cheese & fried chicken finger $80. 13. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(22) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Source: Google image. 3.1.2. . Value Products & Features. Our products satisfy the two most basic psychological needs of human beings: food and the 14. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(23) need of loving and belonging. Our major product is "exclusive" pet accompanying, we provide a comfortable environment and exclusive pets accompanying service. The customer can play with our animal staffs one to one like playing with their own pet to relieve the pressure of a long day’s work. They also can have food to eat if they need. . Benefits. 治政 First, our caring staffs will be adopted from animal 大shelters, as they were stray animals 立 before. It’s a win-win situation that our customers make those animals' life meaningful ‧ 國. 學. whiling being comforted by them.. ‧. Second, we share the responsibilities of keeping pets, time, and various financial costs. sit. y. Nat. required to keep pets. (ex. Time cost like walking, taking care and cleaning the caring staff.. n. al. er. io. Financial cost like food, medication, toy, supplies and grooming. Other unforeseen. v. responsibilities of caring staffs issues.) Basically, keeping a pet would spend 3,000 NTD. Ch. engchi. i n U. per month, but the medical incidents could go from 500 to 100,000.. 3.1.3.. Customers. Considering that there tourism near proposed location is at minimal and no large shopping malls nearby, it's difficult to reach potential customers from other communities. We mainly focus on customers living near our proposed community. We expect our reputation built by word of mouth will bring more and more customers far and near. All animal lovers in the community are our primary customers.. 15. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(24) 3.2. Manpower allocation 3.2.1.. Job description. Our store will start with minimal personnel, there will be one human store manager and 5 animal staffs. 1.. Store manager. The store manager is responsible for overall operations. The position requires to enhance customer satisfaction, achieve sales and profitability goals and making sure our caring staffs are. 政治大. being handled with care. Background or experience in financial planning and animal training is. 立. preferred for this position. Great communication and interpersonal skills is also looked upon.. ‧ 國. 學. Store manager's responsibilities are as follows:. . Meeting the sales goals. . To ensure customer's satisfaction by excellent service. . In charge of store administration. . Maintaining store condition. . Staff training – Caring for our animal staffs. . Dealing with customers complains. . Preparing and serving food and drinks. ‧. Developing strategies to increase customers and expand profit.. n. Ch. engchi. er. io. al. sit. y. Nat. 2.. . i n U. v. Animal staffs. Our service quality depends on the animal staff. They will be working in multiple environments such as in a glass room or open area to interact with our customers to relief from their stress. The goal is to increase our business development by providing a memorable experience. The animal staffs will be evaluated to have bright personality and always be friendly toward 16. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(25) people.. 3.2.2.. . Releasing customers' stress. . Creating memorable experience. Organization chart. This chart is simply because this is the very beginning of the business. The store manager takes the maximum responsibility and manages 5 animal staffs.. 立. 政治大. ‧. ‧ 國. 學. n. al. er. io. sit. y. Nat. 3.2.3.. Salary structure. Ch. engchi. i n U. v. The business owner will take the role of store manager in the very beginning. She needs to work near 16 hours per day, 5 days a week. She needs to spend 8 hours at the store and make good use of time to purchase food supplies and animal supplementary either via the online store during work if time allows or after work. Based on the minimal wage requirement of Taiwan, the minimal wage is NTD 22,000 per month. We multiply the basic salary by 1.5 times to get NTD 33,000. According to the labor law, company less than 5 people aren’t required for mandatory enrollment in labor and health insurance, but still required to participate in employment insurance and pension. 17. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(26) Our animal staffs are not applicable of Taiwan Labor Law, therefore no insurance fee or pension required. Their wage will be food cost 3,000 NTD per month per head.. Table 6. Salary structure. Wages and Welfare Benefits. Calculation of Annual Cost of Staff. Monthly Number of. 立. ‧ 國. Salary. Annual. Employment. Pension per. month (NTD). (NTD). (NTD) (NTD). 3,000. Ch. engchi. 0. 0. sit. y. al. 1,998. 396,000. er. 233. n. Animal 5. Cost. ‧. 33,000. Manager. Pension. (NTD). io. 1. Total. Insurance. Nat. Store. Annual. Salary. month (NTD). Annual. Employment. Insurance per. Employee. (NTD). Annual. 學. Position. 政治大. i n U. 2,797. 23,976 422,773. v. 36,000. 0. 0. 36,000. Staff. 3.3. Entry and Grow Strategy . 1-6 month. Beginning with this stage, we start establishing our store. We will introduce to the public this new service and promote the benefit they can get from our service. The target market will be 18. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(27) animal loving neighbors who live in the community. The manager will set up a Q&A table in front of the store to answer questions from passerby. We will send flyers to passerby to enhance their awareness. We target to customers who are single, a couple with no child, or with one child. The majority of our customers is employed and will visit our store during 7pm to 10pm. We will provide a 5% discount to customer willing to share our store via social media like Facebook, “Like” our Fan Page, and share our info by adding our official Line account. We like to start our social media program with customers and interact with them as a start of our loyalty. 政治大. program to provide better dedicated service for members.. 立. 7-12month. 學. ‧ 國. . After 6 months of operation, we expect we have successfully raised the awareness of consumers within the community. At this stage, we will focus on how to retain repeating customers and. ‧. attract new ones. We need to review and do an assessment of our business from the first six. y. Nat. sit. months. Are our customers satisfied with our service? Do we run the business effectively? We. n. al. er. io. need to periodically analysis customer feedbacks and make adjustment accordingly in a. i n U. v. moderate fashion to avoid misalignment from our mission statement. . After one year. Ch. engchi. After the one-year mark, we believe that we have successfully satisfied our customers and earned loyalty from them. We expect there will be any new building project finished in our community and we will target on these new residents. We plan to introduce ourselves by delivering flyers into their mailbox.. 3.4. Location The store will be located on Meishi Road, about a 3 minutes driving distance from Yangmei 19. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(28) Interchange, 19 minutes walking distance from Puxin train station. The nearest bus stop is within 10 minutes walking distance. There are 2 parking garages 1 minute driving distance away. It will be 6 minutes of walking from the parking garages to the store. We are surrounded by several building projects and most of them are within 10 minutes walking distance.. 3.5. Sourcing We will adopt animals from regional animal shelters to be our animal staffs. We will adopt and. 政治大 Costco Online and food vendors’ websites. 立. train animals before the grand opening. For food and drinks supplies, we will purchase them at. ‧ 國. 學. 3.6. Price strategy. ‧. Our pricing is based on a calculation of the cost of keeping a pet. We will set 270NTD as our. Nat. n. al. Price Calculation. er. io. Table 7. Item. Ch. Food, cat litter, toy. sit. y. animal accompanying fee.. i n U. v. NTD per month. engchi. 3,000. Medication amortization. 833. Pet hotel fee. 167. The time cost of taking care a pet. 2,750. Total amount per month of having a pet. 6,750. 20. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(29) Total amount per day. 225. 20% of administration fee. 45. Our fee of animal accompanying. 270. 3.7. Promotion and advertising Strategy 1.. Shelter volunteer 5% discount. 政治大. We encourage people to love animals. We will be volunteering for animal shelters and. 立. encourage our customers to help shelters by starting with volunteering. This is one way our. ‧ 國. 學. business gives back to the society. We will also partner with animal shelters to promote our store to volunteers regionally and nationally. We will provide 5% discount coupons to. ‧. volunteers. This is also part of our promotion strategy for volunteers to spread our store. y. Nat. er. io. al. Registering our store address on Google Maps and upload our store 360-degree panoramic. v i n photos. This approach helpsC customers U will easily find us even they don't h e n gtocseehus.i They n. 2.. sit. information and bring traffic to our store.. know us. 3.. 5% discount for new added Line friends with our official Line account. This approach helps us keeping connection with our customers. Using social media, we can easily spread information about our store to customers. 4.. 5% discount for Facebook check-in and follow Fan Page This approach helps us keeping connection with our customers. Using social media, 21. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(30) we can easily spread information about our store to new and old customers. We can also easily track promotion shared via Facebook 5.. Distributing flyers to our target customers who live in the neighborhood. This approach raises awareness of our store to nearby residents.. 6.. Giant model in front of our store to attract attention.. 7.. Cooperating with the nearby schools for life education. 立. 政治大. We will partner with nearby schools and take our animal staffs to schools to share the story of. ‧ 國. 學. them to help students raise the awareness of the meaning of life, respect and cherish the value of. ‧. io. sit. y. Nat. n. al. er. life.. Ch. engchi. i n U. v. 22. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(31) 4. Industry 4.1. Pets in Taoyuan city According to statistics of Department household Registration, the population of the whole Taoyuan city in 2017 was 2,188,017 (please refer to Table 8) and according to statistics of Animal Protection Information, there were 221,741 cats and dogs in 2017 in Taoyuan city. After the calculation, 30% of people had a dog or cat. It meant 70% of Taoyuan city residents didn't have a dog or cat. Two-third of residents don't have a dog or cat. The population of. 治政 Yangmei area is 8% of the whole Taoyuan city population. 大We estimate Two-third of Yangmei 立 residents are our potential customers. ‧ 國. 學 Number of people, dogs and cats in Taoyuan city. ‧. 2015. 2,044,023. 2,105,780. 2017. y. Nat. 2013. io. n. al. No. of dogs in Taoyuan. No. of cats in Taoyuan. 2,188,017. er. No. of people in Taoyuan. sit. Table 8. Ch. 152,873. engchi 41,873. 176,672. v. 174,894. 44,063. 46,847. i n U. Source: Reproduced from Animal Protection Information of Executive https://animal.coa.gov.tw/html/index_06.html and Department of Household Registration https://www.ris.gov.tw/346;jsessionid=06716B5B05398546A5393CC1DFF7F996. Yuan. 23. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(32) Number of people, dogs and cats in Taoyuan. Figure 2. 政治大. Number of people, dogs and cats in Taoyuan city. Source: Reproduced from Animal Protection Information of Executive https://animal.coa.gov.tw/html/index_06.html and Department of Household Registration https://www.ris.gov.tw/346;jsessionid=06716B5B05398546A5393CC1DFF7F996. 立. Yuan. ‧ 國. 學. 4.2. Accommodation and Catering in Taoyuan city. ‧. Shops similar to our store are currently operating as pet cafes. We use statistics of catering as our estimate basis. According to the newest statistics report of industry, Commerce and Service. y. Nat. er. io. sit. Census in 2011, there were 8,922 units in accommodation and catering category, including 547 units of Yangmei area (please refer to Table 9). It was a 32.46% increase from the last census in. n. al. Ch. i n U. v. 2006, because of the growing population. Total production was 35,727 million and gross. engchi. production was 18,398 million. After calculating, we estimate that Yangmei area generated 6.13% of total production. The number of Yangmei is a total production was 2,190 million and the gross production was 1,128 million. We inference the total production of each unit was 333,638 NTD per month. We can expect the number is growing base on the continuing growing population.. 24. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(33) Table 9 2011. Number of units and production Taoyuan city. Yangmei. 8,922. 547. Total production. 35,727,000,000. 2,190,000,000. Gross production. 18,398,000,000. 1,128,000,000. Units. Source: Reproduced from Industry, Commerce and Service http://win.dgbas.gov.tw/dgbas04/bc2/ics100F/NY03/%E6%A1%83%E5%9C%92%E7. 4.3. Industry structure. 立. 政治大. Census,2011. I use five force of Porter to analyze our store, which is below:. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 25. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(34) 4.3.1.. New entrants. One to one animal accompanying service will be the newest innovation in Taiwan. Currently there is one competitor provide similar service, but not exactly the same. This business in Yangmei is still fresh in the market. We expect it will increase in the following years. However, this innovative service may need us to spend a lot of time and effort to educate consumers what benefit we will bring to them and why they need our service. Once consumers accept our service, the new entrants may join this market quickly.. 政治大. These are no high tech or high capital barrier in our business. It means our business model is. 立. easily copied. Our strategy is to create the difference through service. We provide warm and. ‧ 國. 學. friendly service to create a comfortable and relaxing environment. We want to earn their trust and make good reputation to retain their business and to attract more customers.. ‧ sit. y. Nat. n. al. er. Bargaining power of suppliers and buyers. io. 4.3.2.. i n U. v. They are many animal shelters with overflowing capacity problem. How to reduce the number. Ch. engchi. of stray animals and how to find potential adopters are always the primary issue to an animal shelter. For us, this provides us worry-free on the supply of animal staffs, although our goal is to bring awareness and help stray animals. Our primary concern is about how to provide best service to grow our market share to open more stores and adopt more animals. Our suppliers in food & drinks will be a wholesaler like Costco. They have very high bargaining power, because they provide the lowest price in the market. The price of the products we need do not change frequently as much very low impact. Our dedicated service will be the only one in Yangmei, but our major product is not deemed 26. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(35) essential at first and there are still one similar competitor (pet coffee shop) in Yangmei. The bargaining power of buyer is middle to high. The number of customers may be affected by external factors like income, economics and other situations. Our strategy is to make the connection about the need for love and loving between animals and customers. We will provide cute current situation pictures or videos of our animals to our customers. We'll tell stories to customers about our animals to help customer understand our animals well and get along with each other well.. 立. Competitive Rivalry. 學. ‧ 國. 4.3.3.. 政治大. We don't have any competitor in this "exclusive" animal accompanying service yet. But, in the food category, all the restaurants near our store will be our competitors. We compare ourselves. ‧. with two restaurants near the proposed location (please refer to table 10) and we learn three. y. Nat. sit. facts. First, we are not well-known by the consumers and it will cause difficulty to attract. n. al. er. io. customers. Second, our major product is not deemed essential yet and our customer may not. i n U. v. come frequently in the beginning, and secondary products is not our main focus; we may not. Ch. engchi. have great demand for our secondary product. Third, we treat different customer in a different way. Our service is not standardized to create operational procedure when dedicating time with our customers. Niche &Strategy Our niche will be that the concept of our business is brand new and focus on animal cuteness. Even when the price is slightly higher, the new product facilitates the establishment of animal cuteness and the new image to make the different segment with the small restaurants near our 27. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(36) shop. It helps in creating the image of essential as well. Our none standardization service could be our strength. Even though It's not easy to pass down, but it means that our business is difficult to be copied as well. Table 10 Comparison with competitors Factor. Starbucks. New type of service. Meet the vanity. 270. Price. 立. Good. Quality. Image. 4.3.4.. Chance to create new image. More expensive. Professional and standardization. Medium. lovely. Secondary product are simple. 政治大. ‧ 國. Change menu Selection to keep limited freshness Good and Warm and with Difficult to Good Medium standardization all our heart pass down Chance to Not easy to Not well-know Well-know Not well-know create a new attract new image customers Most close with Close with our Far from our Surrounding by Waiting for customers customers customers new buildings new immigrant Lack in style to Warm and friendly Clean and High class Fancy attract style comfortable customers Word of mouth Word of mouth Word of mouth Word of mouth Word of mouth credibility is is slow high Be able to Not easy to High class No image create the approach target Coffee shop coffee shop image we want customers Many. Many. y. al. n. Advertising. 130. Few. io. Appearance. Not essential. sit. Location. New market. 130. Nat. Company Reputation. Weakness. ‧. Service. Strength. 學. Selection. Nekomori Cafe Meet tourists' needs. er. Products. Our store. Ch. engchi. i n U. v. Substitutes. Any store which provides food and drinks will be substituted for our meal product. There are only 5 types of store mentioned below provide food and drinks near proposed location. However, what we provide are very different from those stores and some of our items are much cheaper than others. We don't position ourselves as a restaurant and don't want people to come 28. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(37) in just to eat. Our target customers are animal lovers not hungry people. We provide service other restaurants can’ provide. We see ourselves as those restaurant's substitutes, but we don't really see them being our substitutes.. Pet coffee shop: Nekomori cafe Brand shop: Starbucks Coffee, Madoz hot pot. Tea Shop: Coco, comebuy. Street Food: Any street vender.. 立. 政治大. Small restaurant: Any family owned restaurant is in this categories.. ‧ 國. 學. Convenience Store: 7-11, Family, Ok.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 29. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(38) 5. Market 5.1. Target Market Our store will use differentiation strategy. focus on a segment of market and offering a brand-new service.. SWOT Analysis. mover. advantage Location. near. Lack of fame to attract customers. Nat. . io. New service. . The. Ch. population. e n g c hi Yangmei. district is growing l. We may be considered as a. Threats. n. al. . h.  target. customers Opportunities. Unknown service. ‧. . . y. first. sit. of. 學. Benefit. ‧ 國. . 立. 政治Weakness 大. . er. Strengths. i n U. v. Easy to be copied The. concept. of. animal. protection may be low f. l. b. ff. d b. h. 30. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(39) 5.1.1.. Segment. We will focus on single people or a couple with no child or one child who lives in Yangmei district and near our proposed location.. We expect target customers to have more disposable income and have more free time. They may easily feel loneliness and the need to be accompanied. Meanwhile, people who stay single or maintain a small family may be because they want more freedom. In addition, the target. 政治大. customers may also want freedom and don't want to be bound, they value the quality of life.. 立. ‧ 國. 學. We expect our service will be suitable for them. We match their accompanying needs and help them maintain a high quality life. Our location near their community greatly enhance the. ‧. convenience of their life.. y. sit. n. al. er. io. Size. Nat. 5.1.2.. Ch. engchi. i n U. v. We expect people who are single or family with no child or one child may need accompanying service the most. According to Yangmei household registration office, the number of households in Yangmei is increasing (please refer to figure 3). By March 2018, there were 58,386 households. Considering the family structure of Yangmei area in 2017, the highest proportion was one-person family. Second was 2-3 person family. Over 66% of family are small size family. The proportion of families over 4 people was under 40% (please refer to figure 4). We believe most residents need our service and the one of the densest areas of the small size family is near the proposed location (please refer to figure 5). 31. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(40) 政治大. 立Figure 3. Households in Yangmei. ‧ 國. 學. Source: Reproduced from Household Registration office of Yangmei District, Taoyuan http://www.yangmei-hro.tycg.gov.tw/home.jsp?id=13&parentpath=0,12. ‧. n. er. io. sit. y. Nat. al. Ch. Figure 4. engchi. i n U. v. Household structure in Yangmei. Source: Reproduced from Household Registration office of Yangmei District, Taoyuan http://www.yangmei-hro.tycg.gov.tw/home.jsp?id=13&parentpath=0,12 32. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(41) 立. 政治大. ‧. ‧ 國. 學 y. Nat. Number of household near proposed location. sit. Figure 5. n. al. er. io. Source: Reproduced from Household Registration office of Yangmei District, Taoyuan http://www.yangmei-hro.tycg.gov.tw/home.jsp?id=13&parentpath=0,12. 5.2. Demand Forecast. Ch. engchi. i n U. v. Taoyuan city had been promoted to a full special municipal city in 2014. There are more and more building projects in Yangmei area since 2016 (please refer to figure 6 and table 11). Population is increasing (please refer to figure 7-9) and the most populated area is near the spot which we are going to open the store (please refer to figure 10). Small families (1-3 people) are the biggest group in this migrant population. There are still many building projects under construction in the area. We can expect the market is continuing to grow. However, there is only one brand name coffee shop, Starbucks, to provide a relaxing 33. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(42) environment. Most of the shops here are small restaurants or convenient stores meeting basic living needs of local residents.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Figure 6. Ch. engchi. i n U. v. New building project near proposed location. Source: Reproduced from Apple Daily (2016, Sep 3) 楊梅埔心生活圈交通便捷大樓每坪17萬起http://home.appledaily.com.tw/article/index/20160903/37368804/news/%E6%A5%8A%E6%A 2%85%E5%9F%94%E5%BF%83%E7%94%9F%E6%B4%BB%E5%9C%88%E4%BA%A4%E9%80%9A%E 4%BE%BF%E6%8D%B7%E5%A4%A7%E6%A8%93%E6%AF%8F%E5%9D%AA17%E8%90%AC%E8%B 5%B7. 34. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(43) Table 11 New building projects Project. Walking distance. Date of completion. No. House Hold. A. 11 mints. Jun-18. 53. B. 3 mints. Dec-16. 217. C. 3 mints. Dec-16. 43. D. 3 mints. E. 6 mints. Apr-17. 145. Dec-16. 149. 15 mints. Dec-16. G. 7 mints. 2012. 5 mints. 2013. 320. 5 mints. n. al. 2015. Ch. engchi. y. 40. sit. io. I. 168. er. H. Nat. F. ‧. 學. ‧ 國. 立. 政治大. i n U. 132. v. 35. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(44) 政治大 Population and number of increasing in Yangmei 立. Figure 7. ‧. ‧ 國. 學. Source: Reproduced from Household Registration office of Yangmei District, Taoyuan http://www.yangmei-hro.tycg.gov.tw/home.jsp?id=13&parentpath=0,12. n. er. io. sit. y. Nat. al. Ch. Figure 8. engchi. i n U. v. Population density in Yangmei. Source: Reproduced from Household Registration office of Yangmei District, Taoyuan http://www.yangmei-hro.tycg.gov.tw/home.jsp?id=13&parentpath=0,12. 36. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(45) Figure 9. 政治大. Population increase profile in Yangmei. Source: Reproduced from Household Registration office of Yangmei District, Taoyuan http://www.yangmei-hro.tycg.gov.tw/home.jsp?id=13&parentpath=0,12. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 10 Population growth rate in Yangmei Source: Reproduced from Household Registration office of Yangmei District, Taoyuan http://www.yangmei-hro.tycg.gov.tw/home.jsp?id=13&parentpath=0,12. 37. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(46) Today, the population of Yangmei area has grown by 10% to compare to 2011. And, it is still growing. According to the statistics of the household registration office of Yangmei district, the population of the subdivisions of Yangmei district around the proposed location is about 14,000. According to our previous estimate, two-third of the population doesn't keep dogs or cats. Our potential customers should be 9,333. Because there is not much change in the proposed location area, we still use the 547 accommodation and catering units to estimate. We estimate the number of customers per day should be 17 people. We expect the number would grow, because. 政治大. of the living style of people nowadays. Having a pet would change a person's life a lot. If you. 立. have a dog, you need to walk the dog twice a day, and this job lasts at least 10 years. Not. ‧ 國. 學. mention having a vacation, you need to find a qualified pet hotel and pay a significant amount of money to check-in your pet. You can't go home late, because you need to feed and care for. ‧. your pet. It's a commitment that a lot of people choose not to fulfill. It would be attractive for. y. Nat. n. al. er. io. sit. them if we provide the service that they can have a pet without the commitment.. Ch. 5.2.1. Forecast Assumptions . engchi. i n U. v. We expect we will have 17 customers per day 85 customers per week in the first year, 19 customers per day 95 customers per week in the second year, and 23 customers per day 115 customers per week after two years.. . Our opening hour will be as below to suit customers' need. Tuesday-Friday 16:00~24:00. Saturday 13:00~21:00. . Our busiest period will be: Tuesday-Friday 19:00-24:00. Saturday 13:00~19:00 38. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(47) . Friday and Saturday will be our busiest day.. . For the continuing growing population in Yangmei, we may need to expand in the future.. 4P's of the business plan . Product: Problem solving proposition, new, innovate, unique experience and service in Yangmei. . Place: Located in Yangmei and surrounding by new building project.. . Pricing: Cost sharing based price. Fresh service in high price, but low price in. 學. . 治政 Promotion: Intensive marketing through大 flyers, face to face communication. 立 Variety of discount promotion. ‧. ‧ 國. food and drinks. io. sit. y. Nat. n. al. er. 5.2.2.. Ch. engchi. i n U. v. 39. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(48) 6. Potential Risk We provide one by one animal accompanying service, consumers pay for benefits like relaxation, happiness, convenience and so on. We meet or exceed customers' expectation through service delivery. But, there are characteristics of our product may cause us risks as below:. 6.1. Unacceptable Risk Our product is invisible. It's not easy to demonstrate to customers and accepted by consumers.. 治政 Customers may not be able to estimate how much benefit 大they may get from our service. For 立 example, customers may not have any experience in keeping a pet. They may intuitively think ‧ 國. 學. that the price is only spent on playing with the animals and ignore the added value we provide. ‧. such as comfortable environment, good service, the elimination of trouble in keeping a pet, and contribution in reducing the number of stray animals. The most important is that invisible. y. Nat. er. io. sit. products can't be protected by patent. It can easily be copied by competitors. We manage to reduce this risk through strengthening the management of the physical. n. al. Ch. i n U. v. environment. Lack in keeping a clean and tidy store environmental will reduce the image and. engchi. lower our position in brand image. For example, dirty table, trash all over places, bad smell in the store and terrible meal will reduce our value. We need to keep our store environment neat and tidy, we need to have proper uniform which suits our image, we need to provide well trained animal staffs and detailed customer education.. 6.2. Risk of varying quality Our invisible product needs to be delivered by our staff. It makes the relationship between customers and staffs deeper and closer. The service quality will become part of our product. For 40. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(49) example, Chanel cosmetics have good reputation in quality. If the salesperson provided really bad service, customers will leave and shop elsewhere. Likewise, if our animal staffs are not friendly, our service cannot retain its value. If our store manager is not thoughtful and can't solve the needs of customers or solve disputes between customers, the customer may not come back again. Therefore, the stability and improvement of service quality will constantly be reviewed. We can prevent this risk through animal staffs selecting and training. We need to adopt animals. 政治大. with a friendly personality and trainability. Those animals will be the first line of staff interact. 立. with customers directly. We need to give them enough training and support to help them adapt. ‧ 國. 學. to their job. We also need better customer management and services. We need to give our best in customer management and take care the needs of individual customers, resolve issues for. ‧. customers when they are unhappy about our service.. n. er. io. al. sit. y. Nat. 6.3. The risk that the product cannot be stored. i n U. v. Because our product is invisible and can't be produced in advance and put into inventory as. Ch. engchi. physical products, when customers appear at the same time, we may not be able to serve everyone. Therefore, we enhance our capacity in popular hours and provide incentive in unpopular hours to disperse customers. For example, we expect our customers come after 7 pm on weekdays. From 7pm to 12am will be our popular hours on weekdays. We set a limit of one hour per person to ensure that every customer can be able to enjoy our services and we don't set any limit in unpopular hours to conduct customer to those unpopular hours.. 41. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(50) 6.4. The risk of income lose due to the illness or injury of store owner It may happen income lose because of the illness or injury of the store owner, because there is only one person managing this store. The store owner should also reserve money to meet emergency situations.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 42. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(51) 7. Operation Plan Our store will be 326 Square feet (10 ping). To ensure every customer can be well served and to ensure we can maintain the store environment and service quality, we will configure 5 glass room to ensure our customer can be fully matched by our animal staff and to avoid customers disturb each other. The store will full of green plant and the atmosphere will be easy and relax. There will be a bar with 10 chairs, our customer can have some drink and foods in this area and interact with our store staff. We will arrange 3 cats and 2 dogs in the store.. 立. 政治大. ‧ 國. y. Ch. sit. glass. n. al. glass. engchi. er. io. glass. glass. ‧. Nat. door. 學. glass. bar. i n U. v. t il t. Figure 11 Store layout In the bar, there will be 3 small ovens, 1 automatic coffee machine, 1 blender, 1 microwave, 1 gas stove, 1 extractor hood, 1 refrigerator and 1 small freezer. We pick 3 cats and 2 dogs in a shelter to be our animal staffs. We choose friendly and vivid dogs and cats, and the shape is smaller. After adoption, they are expected to be vaccinated first to prevent infectious disease and strengthen their immune systems, and then conduct behavior correction to eliminate bad habits. After the training, the dog staffs will need to have potty 43. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(52) training for a period of three months. We open 4 p.m. to 12 a.m. from Tuesday to Friday and 13 p.m. to 9 p.m. on Saturday. 60 minutes exclusive accompanying service for each customer on popular hours. All customers need to disinfect with alcohol before interacting with our animal staffs and then choose toys they want to interact with the pet. If they need something to eat or drink, they can order and consume it at the bar. All our foods and drinks are made in advance if possible. We will keep our products in a freezer. 政治大. to extend the shelf life and reduce the cost and speed up the serving timeframe. We will. 立. purchase our materials at Costco and on the food company's website.. ‧ 國. 學. 7.1. Legal Environment. ‧ y. Nat. er. io. sit. 7.1.1. Apply for a health permit. Apply at department of public health. Go to the hospital to do a health check. Receive training. n. al. Ch. i n U. v. of food sanitation and safety. Confirm store's food sanitation and safety are qualified.. 7.1.2. Apply for business license. engchi. After confirming that the landlord’s building license match our business, we can go to government to apply business license with health permit, building license, and ID.. 7.1.3. Tax Registration Go to tax bureau with 2 copies of business license and ID to do tax registration.. 44. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(53) 8. Financial Projection Animal accompanying service is a new service, we estimate conservatively that we have 17 customers per day and we work 22 days per month. We charge every customer $270 per hour and assume that they don't order any food and drinks. In 2020, our store will have opened 1 year, and we expect the number of our customers will grow organically by 10% same as the percentage of Yangmei 5 years population growth rate. The number of customers per day in 2020 is expected to be 19. In 2021, the new built buildings will have completed at least for 3. 治政 years. We expect the houses will be all sold out and people 大will all move in. If people who live 立 near our store within 10 minutes walking distance all come visit our store one time per year, we ‧ 國. 學. may have 1046 customers per year. That means we will have 23 customers per day. By 2024,. ‧. We expect we will make a return on all the initial investment. BEP will be 72,000 every month. It means we need to have 12 customers per day at least.. n. al. er. io. sit. y. Nat 8.1. Variable Costs. Ch. i n U. v. The total variable costs will depend on the volume of customers who order our food and drinks.. engchi. We are not planning to set the price high to earn more profit from food and drinks. Our food and drinks are considered as a service for our customers. We sale food and drinks along with animal accompanying service, not sold separately.. 45. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(54) Table 12 Cost of normality menu Our normality menu Hot/Cold coffee Hot/Cold tea Soda with fruit Milk Tea Coffee Milk Bun with butter and red bean paste Jam toast Toast bar. Cost (NTD) 5 5 17 17 17 18 7 4. 政治大 Our exotic menu 立. Table 13 Cost of exotic menu. 100. ‧. ‧ 國. (NTD). 80. 學. Bibimbap (Korean mixed rice with vegetable and meat) Jjambbong (Korean sea food noodles). Cost. Kimchi soup. 80. n. Ch. engchi U. y. sit. io. al. 40. er. Nat. Fried rice Tsukemen (Dipping noodles) Ochazuke (hot tea is poured over cooked white rice topped with a few simple ingredients) Onigiri (Japanese rice ball). v ni. 45 30 20. Japanese packed lunch Teishoku (Japanese Combo meal). 50. Curry rice with fried pork chop. 90. Baguette with cheese & fried chicken finger. 60. 80. 46. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(55) 8.2. Fixed Costs Fixed cost has been determined by rent, utilities, salary (both animal staff and human staff) , amortization and depreciation. Table 14 Direct costs Direct cost Description. (NTD). Month. 政治 3,000大. Animal staff salary (each one). 立. 833. 5 staffs/year. 36,000. 180,000. 10,000. 50,000. 學. 3,833. 46000. 230,000. ‧. Nat. n. al. Description. sit. io. Overhead cost. y. Table 15 Overhead costs. (NTD). er. Total. ‧ 國. Animal staff's medication amortization. Year. i n First two years Ch engchi U. v. After two years. Month. Year. Month. Year. Rent. 20,000. 240,000. 20,000. 240,000. Utilities. 13,000. 156,000. 13,000. 156,000. Salary. 33,000. 396,000. 33,000. 396,000. 3,000. 36,000. 0. 0. Promotion. 47. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(56) Sub total. 69,000. 828,000. 66,000. 792,000. Amortization & Depreciation. 19,913. 238,960. 19,913. 238,960. Grand total. 88,913. 1,066,960. 85,913. 1,030,960. . Animal salary includes the cost of food 1,700, cat litter 1,000 and toy300.. . Animal staff's medication amortization include sterilization operation, wafer, vaccine. 政治大. and any possible medical expense. According to some pet owners' experience, we. 立. assume each animal staff may have one serious illness in a lifetime. It may cost. ‧ 國. 學. 100,000 and the lifespan for a cat or dog is about ten years. Salary is based on the following calculation: According to the labor law, the. ‧. . minimum wage is 22,000. We need this person work 16 hours per day, 22,000. y. Nat. io. sit. multiplied by 1.5 is 33,000. We will raise salary in the future after the return of initial. n. al. er. investment and start earning profits. We know the maximum working hours per day is. Ch. i n U. v. 12 hours, according to the labor law. However, the store owner is not limited to this. It. engchi. will be the owner fulfilling this position. . Promotion includes the cost of flyers.. 8.3. Initial Investment We are planning to invest 1.5 million NTD to start this business. It will be approximately 1.2 million for decoration, advertisement, equipment and license costs, and the rest as a reserve. The money will be all be sponsored by the store owner. Details are as follows：. 48. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(57) Table 16 Initial investment Initial Investment. Segment. (NTD). Item. Decoration. Acquisition. Glass room. 300,000. Central air conditioning and heating system. 120,000. 政治大 Company 立mark design. 400,000. Bar. 30,000 40,000. 學. ‧ 國. Advertisement. Flyer design. 10,000. Small oven *3. ‧. 3,000. Nat. Coffee machine. io. sit. y. 60,000. n. er. Blender. al. Microwave Equipment. 820,000. Ch. engchi. i n U. 10,000. v. 2,000. Gas stove. 5,000. Extractor hood. 25,000. Refrigerator. 10,000. Freezer. 7,000. Shelves. 10,000. 332,000. 49. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(58) contingencies. 200,000. Health permit. 1,500 2,800. License Business License. 1,300 Total. 1,194,800. 政治大 Due to our product is invisible, and our physical product will sale along with invisible product. 立 8.4. Break Even Analysis. ‧ 國. 學. It's not necessary for a customer to buy physical product. There won't be any variable expenses and our contribution margin will be 1. That means when our revenue is equal fixed cost, we. ‧. break even. That means the break-even point for the first two years will be 1,008,000 and will. sit. y. Nat. be 972,000 after two years. That means we will need to serve 3,930 customers each year for the. io. al. er. first two years, and 3,600 customers every year after two years. On average, we need 15. n. customers per day for the first two years, and 14 customers per day after two years to meet the breakeven point.. Ch. engchi. i n U. v. Table 17 Fixed cost without amortization & depreciation. 50. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(59) First two years. After two years. Year. Year. Animal staff salary. 180,000. 180,000. Rent. 240,000. 240,000. Utilities. 156,000. 156,000. Description. Salary. 立. 0. 學. Total. 396,000. 36,000. ‧ 國. Promotion. 政治396,000大 1,008,000. 972,000. ‧. Nat. io. Break even sales after first two years =972,000. n. al. Ch. engchi. er. sit. y. Break even sales for first two years = 1,008,000. i n U. v. Break even units for first two years = 1,008,000/(270*(1-5%))=3,930 Break even units after first two years = 972,000/270=3,600. Break even No. of customers for first two years=3,930/12/22=15 Break even No. of customers after two years=3,600/12/22=14. 51. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(60) 8.5. Income Statement ONE BY ONE ANIMAL ACCOMPANY INCOME STATEMENT PROJECTION ENDED DECEMBER 31 OF EACH YEAR. 2019. POTENTIAL SALES. 立. 2022. 2023. ‧. Animal staff salary. 180,000 180,000 180,000 180,000 180,000 50,000. 50,000. 50,000. 50,000. n. er. io. al. 50,000. sit. y. Nat. Animal staff's medication amortization Total direct cost. 2021. 1,148,928 1,263,821 1,615,356 1,615,356 1,615,356 政治大. ‧ 國. Direct cost. 2020. 學. Operating Costs. (NTD). Ch. i n U. v. 230,000 230,000 230,000 230,000 230,000. engchi. Overhead Cost Rent. 240,000 240,000 240,000 240,000 240,000. Utilities. 156,000 156,000 156,000 156,000 156,000. Salary. 396,000 396,000 396,000 396,000 396,000. Promotion. 36,000. 36,000. 0. 52. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(61) Amortization & Depreciation. 238,960 238,960 238,960 238,960 238,960. Total overhead cost. 1,066,960 1,066,960 1,030,960 1,030,960 1,030,960. TOTAL OPERATING COST. 1,296,960 1,296,960 1,260,960 1,260,960 1,260,960. INCOME BEFORE TAXES. -148,032 -33,139. INCOME TAXES(5%). 立. NET INCOME. 57,446 63,191 政治大. 80,768. -205,478 -96,330. 80,768. 80,768. 273,628 273,628 273,628. ‧ 國. 學 ‧. 8.6. Cash Flow and Net Present Value Analysis Cash Flow. n. al. er. io. ONE BY ONE ANIMAL ACCOMPANY. sit. y. Nat. 8.6.1.. 354,396 354,396 354,396. i n U. v. CASH FLOW STATEMENT PROJECTION. Ch. engchi. ENDED DECEMBER 31 OF EACH YEAR. 2019. 2020. 2021. (NTD). 2022. 2023. Revenue. 1,148,928 1,263,821 1,615,356 1,615,356 1,615,356. Total cash Receipts. 1,148,928 1,263,821 1,615,356 1,615,356 1,615,356. Owner Investment. 1,500,000. 53. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.

(62) Total cash available. 2,648,928 1,263,821 1,615,356 1,615,356 1,615,356. Cost of Administrative Cash disbursement Animal staff salary. 180,000. 180,000. 180,000. 180,000. 180,000. Rent. 240,000. 240,000. 240,000. 240,000. 240,000. Utilities. 156,000. 治 156,000 政 156,000 大. 156,000. 156,000. 396,000. 396,000. 396,000. 396,000. 36,000. 36,000. 0. Promotion. 學. 立 396,000. ‧ 國. Salary. 972,000. 972,000. 972,000. y. Nat. 1,008,000 1,008,000. n. al. er. io. sit. Operating expenses. Ch. engchi. Decoration. 820,000. Advertisement. 40,000. Equipment. 332,000. License. 0. ‧. Total cash disbursement. Other application on cash. 0. i n U. v. 2,800. Total other application. 1,194,800. 0. Total cash disbursement. 2,202,800 1,008,000. 0. 0. 0. 972,000. 972,000. 972,000. 54. DOI:10.6814/THE.NCCU.IMBA.025.2018.F08.