Group Assignment

1. Topic: MIRACLE TREE CANDY

Course: ETR401

Group members: 6

Name of group member Code

1. Lê Thu Thảo –
CS130075

2. Nguyễn Thùy Dương :

Cs130052

3. Dương Thủy Tiên

CS130041

4. Huỳnh Lê: CS130010

5. Phạm Thị Thanh

Nguyên: 130328
6. Huỳnh Thúy Vi:
130080
7. Nguyễn Mộc Thảo:
130108
 OUTLINES:
I. Introduction:
II. Model Canvas for Miracle tree:
III. Suggestion & Conclusion:
IV. Reference

I. INTRODUCTION:
1. Why you choose this topic?

Diabetes is one of the three highest causes of death in the world, it takes the
second place after cardiovascular disease and cancer. Currently, people with
diabetes in Vietnam have increased, the use of medicinal sugar (sugar substitute)
in daily activities is very necessary. However, the use of medicine also has many
harmful side effects for the patient. So, we have come up with a solution to not
use sugar in food. Miracle fruit is one of the fruits that can produce sweetness
without the use of sugar. This makes it easier for people with diabetes.

2. Brief introduction about Miracle tree:

Miracle tree has very effective in detoxifying alcohol poisoning, treating diabetes,
high blood pressure, and changing the taste of foods.
The composition of the miraculous fruit obtained is very little sugar and miraculin.
When we are eating, it causes the sour, bitter taste of fruits or foods to become
sweet. Miraculin action deflects the orientation of the receptors on the tongue
spines, making the tongue adaptable and sweetening only for a certain period of
time, usually within hours.

Moreover, miraculous fruit has no effect on healing or replacing medicine. It is

just a product tohelp patients reduce the need to use sugar during diet to treat
illnesses.
Specifically, if we eat miracle fruit before eating oranges, tangerines, lemons, etc.
no matter how sour, it will as sweet as sugar. Not only that, it can solve alcohol
not harm the stomach if before drinking alcohol, the drinker eats this miracle
fruit.

In addition, the miracle fruit has many benefits that we may not be aware of.

First, it is can help you lose weight. Miraculin in the miracle fruit will help who on
a diet that will not want to eat sweets. It make the diet process more effective.
Moreover, we can make use of it to modify the taste of the food. For example,
when you eat a cake, you can make a cake with absolutely no sugar. Instead, you
should eat a miracle fruit, it will help you feel the cake has a sweet taste.

Second, it can help people who have diabetes disease. As we know, people with
diabetes will often be unable to consume a lot of sugary foods. Instead, they will
use sugar subsitutues. However, using many sugar subsitutues also causes many
harms to health. The sugar subsitutues still have a certain amount of sugar in it.
Miraculous fruit can help with this well. Specifically, when people with diabetes
drink coffee, they will often drink coffee with medicinal sugar to reduce the bitter
taste. We can completely remove sugar from coffee by eating a miracle fruit
before drinking coffee. This will make the coffee sweeter.

Last, it is about people who have radiation treatment. The radiation treatment
can afect the tougue receptors due to which easily lose the ability to taste. Cancer
treaters often have very poor health because they cannot eat well because they
always have a metallic taste. Miracle fruit has the capacity to cover up this effect
to get rid of any kind of uncomfortable taste.

3. Production process:
Miraculous fruit is collected at Minh Tan orchard in Vinh Long town. Fruit is ripe
red, pests-free, crushed, selected big, beautiful fruit, the sample is picked right
from the tree, the size is relatively uniform. The fruit is cleaned and washed with
clean water several times to remove soil, sand, etc.
Cover with absorbent paper, put in a plastic box, and quickly transferred to the
cold storage laboratory 1 - 4 ° C. Miraculous fruit is separated from the pulp and
 put in a large ceramic cup, and dried in the oven at 40 ° C overnight, usually 12
hours. Then take the sample to grind in a ceramic mortar, sieve with a size of 1 - 2
mm, with a dry, fine, red, cold-preserved powder used in experiments.
Next, put the powder into the tablet press. The machine will automatically stamp
powder members with a diameter of 5mm in a circle.
Finally, we will pack the finished product manually. Use zip bags of different sizes
depending on customers' needs and packaging with the logo on it.
II. MODEL CANVAS
We apply model canvas to analyze the possibilities of the company
1. Customer segmentation:

In Vietnam, the proportion of diabetic patients is increasing rapidly with the

number of people infected doubling in the past 10 years. In 2017, the number
of people with diabetes in Vietnam was 3.54 million people (accounting for
5.5% of the population). The group of pre-diabetes patients was 4.79 million
people (accounting for 7.4% of the population). Thus, one out of every 7.5
people has either prediabetes or diabetes.

Most people with diabetes know that there is currently no cure for this
disease. The main treating methods for this disease is to control blood sugar
well by using drugs, supplements which help lower and stabilize blood sugar
combinates with diet and physical exercise. Understanding this issue, our
productswill focus mainly on this group as our target customer.

In addition, we are also targeting the office worker because this is the group
with the highest proportion of alcohol users ( accounting for 70%) compared
to others. It can be said that, besides improving diseases related to blood
sugar and obesity, AS Candy also assist customers in reducing the strong taste
of alcohol, especially for the one who cannot drink this beverage but are
forced to drink it at events or meetings.

2. Value proposition:
“ A nature value input – A true healthcare outcome” is our Value Proposition.
We are aiming to bring a value chain from nature to human health. Currently,
 many countries around the world are tending to use natural drugs. These
drugs are consistent with the physiological laws of the human body with very
little harmful effects. Therefore, we are giving priority to developing a chain of
health care projects that are being formed such as afforestation combined
with development of clean medicinal plants. Also, extracting and preparing
medicinal herbs using advanced technology to supply the pharmaceutical
sector in order to support the health of consumers.
3. Distribution Chanel:

- Manufacturer: A private enterprise AS, whose role is to provide goods, is

responsible for coordinating channel activities effectively.

- Distributor:

 Tier I agents: Pharmaceutical companies, major drug distributors, etc.

 Are individuals and families with large capital and convenient business
locations.

 Relationship with business

Role:

 Is the exclusive distribution representative of the company's products in

the assigned market area.

 Manage secondary system and retail in the area in charge.

 Collect information about customers, competitors in the region in daily

reports, promote the company's brand, ensure a minimum inventory.

- Level II agent: Smaller business

Characteristics.

 Small scale, low financial capacity, not high storage and transportation
capacity.
  Responsible for a smaller market sector, accounting for a larger number
of the company's distribution channels.

 Being in contact, close to the market, it will be a good market

management agent

Role:

 Agents level II will be under the management of the company and

agents level I upline

- Retail stores: Traditional pharmacies

Characteristics:

 Is the last level in the company's product distribution system before it

reaches consumers.

 Being a member that is least bound to the company and also the most
difficult to manage with small scale, distributed

 Selling a wide range of products, including competitors' products.

Role:

 Being the person directly serving to detect the needs of customers, find
and sell the goods they want.

 Is the person who has the most influence on the selection of goods
through the products they introduce or advise customers of the
company or competitors (because the drug is a specific product:
Customers have very little information about the product in general and
the expertise in particular, so the retail shops are the ones who have
the most influence on product selection through the product they
introduce).

- Sales staff:
 Characteristics:

 The human resources have been carefully selected and trained: are
knowledgeable, enthusiastic, loyal to the business, knowledgeable
about the products and the market under their charge.

 Direct relationship with business, receive a salary from enterprise AS.

Role:

 Being a distribution factor in the channel, a tool to manage the channel

effectively.

 THE MEDIA

Communication is one of the strategies of AS company, used to help marketing

and marketing activities, reach new customers by introducing and promoting
through a variety of media. AS businesses can optimize strategies by focusing on
advertising in hospitals, clinics, private medical facilities, ... through press
channels, manuals, leaflets, distributing to patients or doctors, pharmacists, .. or
build a Youtube Video channel.

Product display - One of the more effective campaigns is showcasing products. If

you do not understand or know anything about the product, the patient will not
dare to buy or use it. Therefore, pharmaceutical enterprises and product
manufacturers need to display their products to customers, create good
relationships with pharmaceutical sales locations to be able to display their
products there.

Market promotion - We can promote the market in the industry through a

variety of ways such as providing free health information, health tools, or giving
consumers a sense of interest in the community. free health check-ups, free
medical advice, or incentives for the elderly and people with a background of
diabetes.

Take care of the retail system

- Expand OTC channel (direct sales through pharmacies)

Currently, according to a survey of Vietnam Report evaluating the

strategies of many Vietnamese pharmaceutical companies, the
responding business will develop and expand the OTC channel, showing
that businesses are gradually paying attention to the retail market
outside the market. school more. This retail market has about 50,000
pharmacies, accounting for 95% of the market share. The use of
communication through this channel will always promote the rapid
development of business. Many product manufacturers have achieved
great success through selling through this channel: Traphaco, Hau Giang
pharmacy, ...

- Product distribution cooperation with GPP pharmacy chain

This is one of the ways of communication, although only accounting for a

very small market share, people still keep the habit of buying medicine at
traditional stores. The GPP pharmacy construction is a new trend of the
future. This is the best way for businesses that cannot afford to build
their own pharmacy chains.

- Build a team of pharmacists connecting pharmacists

Doctors and pharmacists decide whether drugs are sold or not, while the
links in the distribution channel only act as intermediaries to bring
products to consumers. Therefore, product manufacturers should have a
team of pharmacists to facilitate the provision of new knowledge about
drugs.

- Charity program organization

When we share and care about each other, both the giver and the
receiver have the most precious gifts of life. Charitable actions
contribute to making the personality of each individual and organization
more complete. Great acts will forever remain in good memories of
 friends, family, and society. Sharing always brings joy, happiness, health,
and even life to people.

- Interested in the end consumer

App consumers: can look up information about features, origin, compare

prices, ... of products, find information that is registered to participate in
seminars, guide how to use the product regulations.

E-commerce website: Provide complete information about products,

prices of products correlated with the market, can directly request
complaints or advice about the product, a dedicated support team,
problem-solving.

 COMMUNICATION GOAL OF THE COMPANY

- Revenue and profit

- Market and market share

- Branding and brand positioning

- Maintain business development

- Differentiate the brand

- Profit optimization

- Maintain and improve customer relationships

4. Customer relationship:
CRM system application
The CRM system allows distribution across the country, can connect
information with the center in both online and offline situations. Centralized
information will help the company to provide timely processing and accurate
planning. The collection and management of sales information of agents to
be able to respond promptly, bringing satisfaction to customers at a higher
 level. Meanwhile, a CRM software system is mainly distributed information
manually between companies and agents. This process has helped
employees improve their capacity, professionalism and ability to best
capture market information by using information shared throughout the
system.
Customer care online through Website
This is a tool that cannot be ignored if you want to take care of customers
effectively online. Website allows customers to see product information and
services of the brand or business but also serves as a tool to assist customers
in the most effective way. At the same time, the website is created as a place
for customers to record questions and other problems to improve service
efficiency.
Customer care through email
Through email brand or business can provide related information about
products, gratitude, gifts, promotions to their customers. This operation will
be more optimal when the business has a technology team, with many
different emails to ensure that all inquiries will be answered as quickly as
possible by the person in charge.
Telephone consultation
Language communication plays an important role in everyday life, and is very
meaningful for business activities. There is no text, any article can convince
customers with direct guidance advice through talking by phone. This is one
of the forms of customer care applied by many large-scale businesses, but
small and medium brands can also apply this method through free calls via
Messenger apps or Zalo, Viber. Creating a direct support number will add
more confidence to the trustworthiness of the brand or the business.
Customer care online through discussion forums
Another effective form of online customer care is forum discussion. Creating
a group discussion forum of clients with similar needs under consultant
involvement is an activity that also creates business. It allows any customer
to replace the answering staff to help other customers' questions ask, so the
exchange of information takes place more smoothly.

5. Revenue Stream:
 1. Sale candy
This is the main source of revenue.
2. Advertise fee
In addition to the functions required on the website, we will open the
advertising function for some other businesses to advertise their products
here. However, we only allow the promotion of products related to our
products such as medical devices, diabetes medicines, supplements,...
3. Commission fee
This fee will be based on the number of products sold at the dealer. For
example, when a dealer sells 10 boxes of candy, it pays the company 10%
of the profits they make.
6. Key resources:
1. Media
Since the company is newly established, there is no reputation, so media is
the most important key resources. It generates revenue and profits that
will keep the company running. In addition, it also creates brand value to
assert position in customers, making them remember the company first
when they are in need.
2. Talented employees
The employees are the ones who keep the company running smoothly,
keep it from problems or keep damage to a minimum. Moreover, they also
contribute to the creation of new products, preventing the company from
being encapsulated in one or two key products.
3. Manufacturing
If the employees are the creators of new products, the manufacturing will
ensure that those quality products reach consumers in the most effective
way. Keeping product quality evenly and without error will help customers
to trust the company more

7. Other key activities:

 Inbound Logistics:
- Transport service providers, storage.
After purchasing ingredients directly from the farms. The company
transports and stores them before handling them to create products. Most
are shipped back to the warehouse. In the production plant to facilitate
processing and production. The product is then stored here and awaited to
be shipped to the stores. In terms of transportation, it is done from 3rd party
companies (3PLs) through the company's own dedicated vehicle fleet.
- Machinery supply and repair service providers: Equipment manufacturer
- Pharmaceutical Filling Machine - supply of production equipment
- Pharmaceutical Filling Machine is the birthplace of proprietary
manufacturing machines around the world. Therefore, Thermoplan AG
becomes a partner company of the company specializing in providing
equipment and repairing its proprietary equipment for AS.
 Outbound logistics processs:
- The sales department receives an order from the customer.
- The sales department checks the inventory to make sure they can fulfill the
order.
- Then send customers' orders to the warehouse to pick up and pack.
- Orders are shipped and a warehouse employee updates inventory levels.
- Businesses invoice customers and eventually collect cash for orders
 Support activities
 Support activities such as support the enterprise's competitive activities and
are classified into four categories, including:
Procurement: Related to the procurement of inputs such as raw materials,
supplies and other products for consumption such as property, machinery,
office equipment, and factories.
Human Resources Management: includes activities related to recruitment,
hiring, training, development and salary and bonus issues of employees in
enterprises. These activities affect an enterprise's competitive advantage
through its decisive role on the skills, motivation of workers and recruitment
and training costs.
Technological Development: to improve products and processes in the
business. This is an activity that plays an important role in competitive
advantage.
Infrastructure: includes many activities such as general management,
planning, finance, accounting, legal and quality management ...

8. Key parnership:
Material: Synsepalum dulcificum fruits are collected at Minh Tan orchard (05
medicinal gardens, Da Da, Tan Phu Trung, Cu Chi), red ripe fruit, pest-free,
crushed, choose big, beautiful fruit, the sample is picked right from the tree.
put in a plastic container to preserve 1-4 degrees Celsius.

9. Cost structure
Authorized capital: 3 billion VND
1. Company establishment expense table
According to the provisions of the Law on Enterprises 2014
Costs Cost Estimate
Enterprise registration fee 50,000 VND
Enterprise registration content 100,000 VND
announcement fee
Cost of enterprise seal engraving 250,000 – 350,000 VND
Fees for buying digital signatures 1,900,000 – 2,990,000 VND
Open an account and maintain a 1,000,000 VND
bank account
 Expenses for designing and printing 2,000,000 VND
company signs
Company establishment service ~ 699,000 VND
fees
Tax return for the first time 1,599,000 VND
Total 8,800,000 VND
 Company initial cost: total starting capital for the company. Starting capital
includes: Initial cost and Fixed cost for the first 6 months.
 Total starting capital = Starting cost + Fixed cost for 6 months

2. Starting cost: 400,000,000 VND

Categories Cost Estimate

Office Rental (2-month 60,000,000
deposit)
Bank Interest (Loan) ~42,000,000 (/5 billion VND)
Equipment 150,000,000
Product development / ~100,000,000
Research (R&D)
Total ~352,000,000 VND

3. Fixed cost for 6 months (Backup Money): 50,000,000 VND/month -

300,000,000 VND/ 6 months
Aside from one-time set up costs, you'll also need to have enough money
to cover six months' fixed costs. In the event that sales and money aren't
coming back as early as expected, you'll need to have enough money to
keep going.
Here are some common fixed costs for a company:
 Fixed costs
Office rental & electricity and water
Equipment warranty
Rent warehouse
Advertising & promotion
Employee salary
Tổng: ~300,000,000 VND

4. Direct raw material cost includes:

Categories Cost Estimate

Purchase price of raw materials 80,000,000
Cost of storage 20,000,000
Cost of ordering 5 - 10,000,000
Loss due to shortage of raw materials 16,000,000 (20%/total)
stored.
Total 121,000,000

5. Marketing expense:

Categories Cost Estimate

Costs for Marketing campaigns 10,000,000
Cost of customer research and survey 15,000,000
Other Marketing expense 25,000,000
Total 50,000,000

 Costs for Marketing campaigns (direct, mail / product and print): flyers, sales
letters, postcards, special offers, coupons, brochures or product catalogs.
 Cost of customer research and survey: survey potential customers to provide
specific products, helping to reach customers more effectively, less costly.
  Other Marketing expense: brand development costs; cost of marketing
consulting services; costs of giving gifts or samples to customers; expenses for
organizing events, public relations.

Physical resources are arguably the most costly. Including: production capital,
factories, machinery, equipment, raw materials, etc. Therefore, the analysis and
proper assessment of physical resources is an important basis for business
managers. Industry understands the limitations and risks of physical resources.
To solve potential problems such as making the most of existing cash and physical
capital sources, selecting and mobilizing external capital sources when there is a
real need, choose the right target. to increase the size of physical resources,
reserve a necessary ratio to ensure costs.

In addition, one of the core issues posed is that businesses must control their
production and business costs. This is the decisive factor, not only affecting
whether or not to cut costs, but it also plays a role in determining the success or
failure of the business. To control daily expenses, it is important to identify the
types of costs, the factors that affect them. Since then, saving costs, spending
will be more efficient and ultimately increasing the operating profit of the
business, accordingly.

III. SUGGESTION & CONCLUSION:

Not only the candy product, but we continue to exploit other innovative ideas based
on SCAMPER model, which is a quite effective thinking tool in searching for new
business ideas.
- Substitute: In addition to producing candies from miracle fruit, we can produce
lyophilized powder in granular or pellet form, using freeze-drying method.
Freezing is a method of deep evaporation of water vapor found in active
ingredients and medicinal ingredients. Lyophilized powder products help increase
solubility, increase the stability of the active ingredient. How to use lyophilized
powder: take about 1g of lyophilized powder, place it in your mouth and gently
stir around your tongue for at least one minute before swallowing.
 - Adapt: Miracle fruit not only has a support and healing function, but also can be
used as decorative ornamental plants. We can both plant it as an ornamental
plant and grow fresh fruit to use. How to use fresh fruit: put one in your mouth
and bite the pulp, remove the seeds. Chew thoroughly so that the fruit touches
the entire tongue for about two minutes before swallowing.
- Modify: Design candies in many different shapes and sizes. Products are
diversified, and it attracts the curiosity of many different types of customers.
- Put to Other Uses: Miracle fruit can also be used to squeeze juice or make a
smoothie with the flesh of the fruit, serving in the beverage field.

IV. REFERENCE
Luu Bich Ngoc, Nguyen Thi Thieng. (2018). Tiêu dùng rượu bia Việt Nam -Một số kết
quả Điều tra quốc gia. Retrieved from https://www.iard.org/getattachment/0d62ac14-
4046-44ea-a472-f0ca7dd2d686/ipss_consumptionofalcoholbeveragesinvietnam.pdf
Thực trạng bệnh tiểu đường hiện nay tại Việt Nam. (2021). Retrieved from
https://kienthuctieuduong.vn/kttd_faq/thuc-trang-benh-tieu-duong-hien-nay-dang-
duoc-canh-bao-nhu-the-nao/

(2015). Một nghiên cứu khoa học thú vị về trái thần kỳ. Retrived from:
http://khcncaobang.gov.vn/index.php?language=vi&nv=news&op=Tien-bo-KHCN-
moi/Mot-nghien-cuu-khoa-hoc-thu-vi-ve-trai-than-ky-873
Business model canvas – mô hình kinh doanh Canvas (P1)

https://ieit.vn/business-model-canvas-mo-hinh-kinh-doanh-canvas-p1/