MINISTRY OF FINANCE

UNIVERSITY OF FINANCE AND MARKETING

BUSINESS REPORT

ASIAN ENTREPRENEURSHIP
AND INNOVATION

Ly Minh Chau
Class: IP_17DKQ
I. Introduction
1. Business idea

Maslow theorized that human are motivated by hierarchy set of needs and people attempted
to satisfy the lower level of needs before attempting to satisfy the higher level one. Along
with food, shelter, … sleeping is also one of every human’s basic needs that needs to be
fully satisfied. It is vital that getting enough sleep is of great importance to the good health
and well-being thorough your life. Sleeping is one the very basic needs of mankind. Human
is not a machine, so they need time to recharge their battery after dealing with large amount
of work and study. There is an emerging problem that people nowadays are in lack of
sleeping, especially the nap. Taking nap is very important many perspectives. It plays a
role as intermediary between your productivity in the morning and in the evening. In the
morning, you have spent much effort to concentrate on your work and study to perform at
highest level, so they do consume much energy. At this point, sleeping enough would do
you a favor to assist you in carrying on your work or study in the evening to the best of
your ability. What an alert that the deficiency of sleep could lead to manifold negative
consequences. According to a 2016 study, “Why sleep matters—the economic costs of
insufficient sleep," by research organization The RAND Corporation, insufficient sleep
among workers costs the U.S. economy up to $411 billion and 1.23 million workdays per
year. (The study was based on survey results from 62,000 people in five countries.) Many
adults simply aren't getting enough sleep. In the work world, that can translate into staff
struggling to concentrate, crankiness and lowered productivity, and could contribute to
longer term consequences, including chronic diseases.

I think that it is also of great significance to get a grasp of what is happening out there to
be able to see the big picture and cover all aspects of the problem to come up with the
business idea that do not only possess uniqueness but it also solves the existing problem.
Only by incorporating these two concepts, then the business idea is no longer an idea but

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it bears strong potential to survive in the highly competitive market among their
competitors.

The problem that initially draw my attention is that the students in universities at my ages
are greatly in lack of nap. There are many reasons behind. As more and more students enter
universities every year, it is not a piece of cake for the school to provide enough places for
taking a nap or just simply self-studying for all of their students due to the limited
infrastructure. So as the library, it is place that attract multitude of students pouring into
after the morning. As an alternative, the coffee-shop is another choice in which they can
take a short break or self-studying. However, they have to face the reality that their budget
is quite low in comparison to the very high price of the store. As a result, it suddenly
dawned on me that why my business idea is not created to tackle the problem of students
at my ages. Because of the aforementioned reasons, I have developed an idea that I will
run my business by offering the service that assist the students in finding places for taking
a nap and self-studying/studying in group. This idea will involve finding and managing
places so that students could have a suitable and comfortable space to ensure the quality of
their sleep. In order to run the business, source of finance is always a great concern. In my
case, I would operate the business through charging the consumer at the rate of sixteen
thousand Vietnam dong per hour of using the service. When using the service, people are
allowed to use the beverage buffets (coffee, tea, water, …) that already prepared or they
can make themselves at home by preparing on their own. I believe this business idea is
quite new in the current market and thus can offer me windows of opportunities. I hope
that my business idea to some extent could help to solve the problem that most students
face.

The process of using NAPPY service

- Booking through social network platforms (Facebook, Instagram, Twitter, …)

- Check-in to receive the card for entering the room and the glass
- Enjoy beverage buffets
- Experience your own spaces in your own box

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- Check-out and pay the money

2. Name of the venture

The business name is somewhat a really tough decision. It is crucial to name your business
in such a good manner that it can gives identity to the business and creates value for
customer. If the business name is unique and interesting, it would be easier for customer to
keep being reminded of the venture. After taking everything into consideration, I decided
to name my business is “NAPPY”. The name is formed as the combination of the two
words: NAP and HAPPY. I want my business to offer my customers the nap with
happiness. I want my target customer to enjoy the moment and have a relaxing time while
using my service. I want the customer to remember my business as a service that pursue
customer happiness while performing the service.

3. Mission and vision

*Mission

NAPPY is always operated with the mission to give students a helping hand in ensuring
that they could possibly take a nap through providing appropriate and comfortable
facilities. NAPPY will join a hand in raising students’ awareness of taking nap for their
own sake. Taking nap is doing their own favor not anybody’s. Beside ensuring the quality
of the sleep, NAPPY also want to please customers with happiness. The accomplishment
of the mission is reflected through:

- Gradually talking students into the habits of taking a nap.

- Helps students to provide appropriate facility to meet their demand but at the acceptable
budget.

- Gradually gain customer’s trust and build strong customer relations.

*Vision

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NAPPY believes that taking a nap is an indispensable part of your schedules on a daily
basis. It can virtually change your life in a brighter way. With the help of NAPPY, there
would be no need for wandering around the lobby any longer. There would not exist the
concerns of finding a more spacious place to take a rest. Also, you do not have to compete
for chairs or tables in the very crowded library of self-studying area. NAPPY desires to
bring about changes that can virtually alter people’s life by giving them a better chance to
immerse themselves in “real” nap. As this type of service is quite new on the Vietnam
market, NAPPY is proud of being the first pioneer to be in charge of ensuring people’s
wellness. NAPPY possess full potentials to take a place in the market in the near future.

4. Why this product/service will be needed

As mentioned above, the use of NAPPY service has a lot of potential for future
development thanks to its outstanding advantages that has been enlightened:

- The first service provider of this kind in Vietnam market.

- Appropriateness for students with low budget but still satisfy their needs.

- Gaining widespread people’s consciousness to the importance of taking nap.

This service is created to satisfy the increasingly demand of finding places for taking a nap
of just a simply a space for studying of students after their lunch time. However, the reality
is that: as more and more students enter universities each year, there are less and less
spacious places for them to doze off to recharge their battery before continuing with their
evening class. Moreover, it is unavoidable that students have to stay up late to deal with
huge amount of projects or assignments assigned by their teachers. As a result, there should
be a time for them to take a rest for the whole body to function well without encountering
any problem.

If it were not NAPPY, what other substitutes would be? They have to struggle in such
narrow space in contrast to the large amount of students to have a place or spend a large

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amount of money in luxurious coffee shop. These choices seem to be quite unreasonable
under the perspective of students. Once utilizing the service of NAPPY, students do not
have to spend time finding a place for themselves. All they need to do is to book themselves
a space for their purpose via the social network platforms. This helps to reduce the waiting
time since things are conducted under the reign of state-of-the-art technology. From a
broader perspective, a humanely approach in which the service will be needed is the
generalization. The generalization of NAPPY will attract public’s attention and will talk
more people out of underestimating the importance of taking a nap.

For these reasons, the application and viability of NAPPY in the future is enormous and
consistent with the latest social trends.

II. Analysis
1. Target market

Regarding the target market, NAPPY aims to target the segment of students in universities.
This target market is formed for those students who have the demand for finding places for
taking a nap. However, they have to have enough budgets to pay the fee of using the
service. What is more, these people have to be active on social network because things are
made through the utilization of technology. The question is that why this segment is chosen
by NAPPY? It is vital to see that every year, millions of students choose to study in
universities. Not to mention the humanity reasons, why something not be done to fully
utilize such the huge amount of this resources. On the one hand of the target market,
NAPPY will provide basic service and facilities with the low budgets customers of the
segment but still insisting quality assurance. On the other hand, the target market will also
be broken into smaller piece to be better at satisfying customers’ needs. The facility will
be upgraded for those students that have higher requirements when using NAPPY service.

2. Long-term and short-term marketing goals

* Short-term goals

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The short-term marketing goals are divided into many steps. As these steps are initial
footprint of NAPPY in the market, so it will require large financial investments

- The first phase is free trail. As a new product/ service, customers will not have the basic
knowledge of what kind of service that NAPPY attempts to introduce to the market.
Consequently, it would be a mandatory step to bring the service closer to the customer.
Initially, to gain customers, NAPPY has to give them opportunities to experience how
NAPPY offers their service to the customers. NAPPY can launch marketing campaign via
social network platforms. They can offer the free trial for the first 100 customers registering
for the service and try to emphasize to the customers that “You are one of the luckiest
person that have the very first chance to experience the service. What is more, it is free for
you- the very first guests”. It will definitely the very effective marketing strategy as the
majority likes the feeling of being the first of doing something. Moreover, experiencing
without being payed is never an old-wives’ tale.

- The next marketing goal should be focused on gaining more and more customers. People
are curious about something new on the market, but it would be neglected soon if there are
not anything special. Likewise, the short-term goals of NAPPY are also gaining more
customers by offering the discount or promotion. As at the very young age and financial
dependence, the target market of NAPPY has the high intention of using service at very
low cost, so these programs would definitely attract more and more students.

- Another short-term goal should be gaining people’s awareness of the business. It is

important to be noticeable in the market, not to be invisible. This can be done through
excessive strategies: posting reviews, online focus group, influencers, fanpage, …to get
wide recognition.

- It is quite easy to launch an idea, but whether NAPPY is applicable to the users. In parallel
with providing the service, NAPPY must listen to customer’s feedback to satisfy their
needs and gradually complete what are lacking. This is an important goal to have a broader
picture of the business to prepare for long-term marketing goals.

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*Long-term goals

- The brand identification must be built in order to the survive in the industry. After
completing all short-term strategies to identify all of the aspects of the business, it is high
time that NAPPY should look back on and find a way to distinct NAPPY’s service from
other competitors. Moreover, brand identification also create value for customers. This
should be the main goal that should pay more attention.

- Analyze the SWOT of NAPPY. The importance of understanding the strong points of
NAPPY to evolve and the weak points to eliminate is essential to the future development
of NAPPY

- What the business has spent to achieve short-term goals should be gained in long-term
goals. As a business, NAPPY has to have return on investment to carry on the business.
Without making profit, it would not be easy for the new business like NAPPY to survive
long enough. Initially, NAPPY will accept the loss, but these losses must be the platform
to gain the profit in the long run.

3. Packaging along with a catchy slogan

NAPPY’s slogan: BE NAPPY-ER, BE HAPPIER

The slogan means that when customers become a member of the NAPPY, the customer
will definitely be happy with the use of the service.

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4. Industry analysis

4.1 General analysis

* Service feasibility

NAPPY is a business that provides service to customers. Unlike the existing business in
the market, NAPPY service is quite new. However, it does make sense and reasonable to
come to reality. NAPPY is created to serve the demand of students who are in lack of places
for taking a nap or self-studying. The business idea is not spontaneous, it is based on the
current problems that most students in universities face. That being said, the business is
created to satisfy unfulfilled needs of customers, so the business is viable.

There would be a strong demand for NAPPY service. As a part of the student community,
I myself recognize the overloaded systems of universities are unable to provide enough
facilities for all students to take a nap. Thanks to the introduction of NAPPY, the problems
will gradually be solved.

*Industry/target market feasibility

The target market of NAPPY as mentioned above is the students in universities. This
segment constitutes a large amount of people. From the mission statement, it is already
indicated NAPPY’s job is to provide the services for students. The price charging for using
the service is very low, so it is appropriate for the target market.

4.2 Details analysis

* The industry trends

The business of NAPPY takes advantage of the social trends that more and more students
tend to seek for a places outside for self-studying or group-studying. This trend increases
significantly because students bear in mind that if they stay at home, they are more easily
to stick in their bed and doing nothing rather than staying on the bed or playing games.
Instead, when studying in such places outside their home, they are motivated to carry their
study by their surroundings whereas people pay much attention to their work or their study.
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Having recognized this trend, my business would definitely win some place in the industry.
Besides, what my business is different from others is that I incorporate the vast two needs
of students: finding places of having a nap and going on studying.

* The Five Forces Model

NAPPY is considered as one of the pioneers in giving services that fulfill the demand of
students for finding places for taking a nap. This kind of service is quite new to the Vietnam
market, so it would not exaggerate to claim that there are both opportunities and threats
waiting ahead.

- Threats of substitutes

It is generally accepted that industries are more attractive when the threat of substitutes is
low. That means customers are not prone to try other products or services. In my case, my
business is quite new for the market of Vietnam as a whole. Not to mention the fact that I
just aim to target the students market only. This service is quite unfamiliar with the market
so it has great potential to enter the market and win some position in the marketplace. As
a result, the fear of being beaten by other substitutes is not a very noticeable concern. By
offering the unique service at the meantime, I am proud that my service would emerge as
a lucrative market at the time being. What draws my attention is that: if I can do this, why
others people cannot do the same thing or they even add something that are better than
NAPPY? The important thing is that NAPPY has recognized the target market of the
business. NAPPY’s segments are students. What the students expect when using the
service of NAPPY? They want to have a comfortable and relaxing space for taking a nap.
They all fed up with the crowded library. What is more, are they affordable with high price
equipped with such innovative facility or technology? The obvious answer would be not.
The majority of students would prefer taking the low price. To decrease the likelihood that
customers will choose either of these possible alternatives, what NAPPY could do and
should do is to differentiate from the competitors and create value for students. What value
did NAPPY try to create: “HAPPINESS”. Since pricing strategy is a tough question, it

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would be a strength if NAPPY tries to focus on creating value for their customers- students.
This seems to be the possible aspect that NAPPY could do to avoid the chance of being
substituted by powerful competitors. More value added for customers, the less likelihood
of being eliminated. Recently, in Vietnam market, there is a coffee shop named “Chidori”.
Chidori is the combination of selling beverages and providing place for taking rest. Their
purpose is also to provide a place for customers to feel that they are relaxed. Is it the
NAPPY’s substitutes? Will customers switch to Chidori if NAPPY is unpleasant for
customers? Once again, it is about creating value for customers.

- Threats of new entrants

The threats of new entrants have never been easy to face. This kind of service might have
high threats of new entrants because the initial investments in the business is not so high
in comparison to other business. However, what makes the business of NAPPY to stay in
the market is the cost advantage. Initially, NAPPY had to trade off. NAPPY accepted to
suffer the heavy cost of running marketing campaigns at the very beginning to gain
customers. Consequently, for a new entrant to beat the current position of NAPPY, the
problem now is about capital requirement. Whether or not these new entrants are powerful
enough, financial advantages and receptive to trade-offs. Once the already existed business
had invested such money for marketing, the followers must definitely put more money to
spread out their business at such higher level to beat the already existed one. That bring
said, capital requirements might be an obstacle to prevent the threats of new entrants. If a
“strong” and “visionary” investor recognizes the potential of this service, it does make
sense that they can easily jump in the industry and expand the market size or target market
by pouring more money into the business. The threats of new entrants might be something
that NAPPY must take into account seriously. As more people realize the importance of
their nap, the marketers are also intelligent enough to know what customers want and
satisfy these unfulfilled needs correspondingly. Vietnam is now an open economy in which
information is publicly shared, so the economy-related activity is sooner or later will be
revealed.

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- Rivalry among existing firms

NAPPY takes pride in being the unique business idea in the Vienam market at the moment.
Needless to say, the competitiveness among firms seems to be non-existent yet. The
uniqueness of NAPPY has opened many opportunities to reach to future development. In
Vietnam market, because of the nature of the culture, coffee shop is everywhere to be
found. It is quite easy for these firms to catch up with the latest trends and apply in their
business. If that is about to happen, everything is now in competitive market, not NAPPY
alone

 NAPPY has emerged as such a lucrative business. To fully utilize the benefits of being
unique, there are something that must be achieved to avoid being letting behind. For a
business to function well, uniqueness is definitely a strong key point. However, when the
uniqueness barrier is gradually erased, it would be more rationale to focus on
differentiating the business or creating new value for customer. What NAPPY always try
to do is ensuring the happiness of the service users. Moreover, the market or the customer
needs change day by day, so it is crucial to update the latest trends happening out there.
Observing the orbit of the industry is the key point to the success of the business in general
and NAPPY in particular.

* Interviews

- Mrs. Mai Thi Dung- a store manager of Chidori said that what the business bears a strong
resemblance to other businesses- satisfying customer’s needs. Chidori did investigate the
increasingly demand of finding places for taking a rest of customers and apply in the
business. Thanks to the interesting business model, Chidori has attracted a large number of
customers. She also pointed out that creating value for customers is what Chidori try to do.
She believed that Chidori will continue operating at a promising level.

- Mr. Dinh Van Phu – a part-time employee of The Coffe House at Phan Dang Luu branch
showed me that The Coffe House attracts a huge amount of students coming for studying
on a daily basis. Especially in the lunch time, more students in nearby universities poured

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into the The Coffe House and the store is often overloaded. These students looked very
tired and some of them even took a short nap. He was wondering whether The Coffee
House could incorporate the model of giving place for taking a nap in the business. He
thought that new thing could possibly bring good sign to the business.

5. Macro analysis

In this report, the PEST tool is used to analyze how macro environments affect the
operation of NAPPY. It examines the influence of political, economic, social and
technological factors of a business.

* Political factors

The political stability is a strength for development of all kind of business in Vietnam in
general and NAPPY in particular. This is virtually an important factor when considering
whether or not to invest in a business. Thanks to the political stability, everything is under
the regulation of the law, which helps to create an advantageous environment for the
development of NAPPY.

*Economic factors

The Vietnam economy has shown positive transformations in recent years despite the
disadvantageous complexity of the international economy. The extreme poverty rate is
estimated to have declined to below 3 percent. Following 6.8 percent growth in 2017,
preliminary data indicate that GDP growth accelerated to 7.1 percent in 2018, underpinned
by a broad-based pickup in economic activity. The economic growth rate has exceeded the
predetermined target and inflation was under well control. Based on the current situation,
it is promising that it will offer more opportunities for NAPPY to approach to more target
customers- students as they do not have to struggle managing money. The economy factors
might be a good sign for further evolution of the business.

*Social factors

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The tendency of getting enough sleep after lunch time has rocketed here and there. More
and more people has raised awareness of the importance of taking a nap. The social
influences of this issue has offered a wide range of opportunities for NAPPY. By taking
advantage of the social trends, NAPPY is able to update the latest customers’ needs and
fulfill these needs consistently. Catching up with social factors has long been an important
and vital element to the viability of NAPPY.

*Technological factors

The evolution of 4.0 industry revolution has brought such an advancing aspect to approach
the market for all business. Thanks to the advancing technology, it is a little bit easier for
NAPPY to offer the service to the customers. The use of technology will help to shorten
the gap between NAPPY and customers. It is noticeable to see that students in Vietnam
market is very active on social network platform, so NAPPY have to update the latest
technology to keep track with the target customers. Moreover, the trend now is to apply
technology in doing business to increase efficiency and effectiveness. By applying
technology, the flow of providing service of NAPPY would be ensured smoothly.

 The understanding of macro factors would assist NAPPY in taking advantage of the
current strengths to orient the business in the right way.

III. Conclusion
The business of NAPPY is quite new to the market. There are various opportunities and
threats that NAPPY has to face. The point is that whether NAPPY is conscious of acquiring
the opportunities to develop and recognizing the threats to avoid. This business report of
NAPPY when implemented has to consider the reality of the market, because the reality is
not always the “ideal state”. What NAPPY could do to distinct themselves is to try to
differentiate the service by creating new value for their target customers- students.
However, whatever NAPPY do must be aligned with their missions to ensure the
consistency of the business.

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