Executive summary

This report introduces FrostGuard Logistics Solutions as a groundbreaking entry into

Vietnam's cold chain logistics sector, aiming to redefine the preservation and transportation
of temperature-sensitive goods. With a focus on pharmaceuticals, fresh produce, and
processed foods, our end-to-end service integrates cutting-edge technology, strategic
planning, and a commitment to maintaining product integrity throughout the supply chain.
FrostGuard Logistics Solutions, with its commitment to excellence, advanced technology,
and strategic partnerships, positions itself as a leader in Vietnam's dynamic cold chain
logistics landscape. By addressing market needs, adhering to industry trends, and offering
unmatched services, FrostGuard is poised to become the preferred choice for those seeking
reliable, efficient, and innovative cold chain logistics solutions.

Table of Contents

Executive summary..................................................................................................................1

Introduction..............................................................................................................................1
Key highlight......................................................................................................................................2
Product/Service Description.............................................................................................................2
Trends and Industry Analysis..........................................................................................................4
Competitive Landscape.....................................................................................................................4

Marketing and Sales................................................................................................................5

Market Opportunities.......................................................................................................................5
MKT strategy.....................................................................................................................................5
Target customer.................................................................................................................................6

Targeted Segments...................................................................................................................7

Financials..................................................................................................................................7

Reference list............................................................................................................................9

Introduction
Vietnam is currently witnessing a substantial expansion of the cold chain logistics industry,
and this business plan effectively outlines a persuasive opportunity within this sector. The
cold chain sector in Vietnam has seen significant involvement and growth from both
domestic and international businesses. It is projected that by 2026, the whole planned
capacity of cold storage in Vietnam would exceed 1.7 million pallets. This will be achieved
by the completion of 23 projects between 2023 and 2026 (VIR 2023). Given the escalating
market demand for temperature-sensitive commodities such as pharmaceuticals, fresh
produce, and processed foods, the efficient operation of a cold chain logistics service could
potentially be instrumental in safeguarding the quality and integrity of these products across
the entire supply chain.
Key highlight
With the intention of satisfying the growing need for dependable, temperature-controlled
transportation and storage solutions, the proposed enterprise intends to establish a robust cold
chain logistics network in Vietnam by capitalizing on strategic alliances and cutting-edge
technologies. The prioritization of upholding product integrity is in accordance with the
changing demands of sectors reliant on cold chain logistics, thereby making a positive impact
on both economic development and public health (Xie et al. 2022).
Product/Service Description
Our FrostGuard Logistics Solutions specializes cold chain logistics service, which will
include a streamlined distribution network, cutting-edge cold storage facilities, and real-time
monitoring for refrigerated transportation, we will be able to provide comprehensive
solutions to our customers. The primary objective is to preserve pharmaceuticals, fresh
produce, and processed foods in an ideal environment, which will result in the products
having a longer shelf life and will ensure that they are safe to consume.
A detailed breakdown of the components and features of FrostGuard Logistics Solutions is as
below:
Streamlined Distribution Network
 Description: FrostGuard Logistics Solutions distribution network is
strategically planned and optimized for efficiency. It encompasses a well-
organized system that ensures timely and secure transportation of temperature-
sensitive goods from the point of origin to the final destination.
 Key Features
  Routing Optimization: Utilization of advanced algorithms to
determine the most efficient routes, minimizing transit time and
maintaining optimal temperature conditions (Taabi 2023).
 Real-time Tracking: Integration of GPS and IoT technologies for
real-time tracking and monitoring of shipments, allowing stakeholders
to monitor the location and temperature of goods throughout the entire
journey.
Cutting-Edge Cold Storage Facilities
 Description: Our state-of-the-art cold storage facilities play a pivotal role in
maintaining the integrity of temperature-sensitive products during
warehousing. These facilities are equipped with advanced technologies to
ensure precise temperature control and security.
 Key Features
 Temperature Zoning: Segregation of storage spaces into different
temperature zones, catering to the specific requirements of
pharmaceuticals, fresh produce, and processed foods.
 Automated Temperature Monitoring: Continuous monitoring and
control of storage temperatures through automated systems,
minimizing the risk of temperature fluctuations.
Real-Time Monitoring for Refrigerated Transportation
 Description: Real-time monitoring is a cornerstone of our service, providing
continuous visibility into the conditions of refrigerated transportation. This
feature is crucial for maintaining the quality and safety of temperature-
sensitive goods during transit (Tsang et al. 2018).
 Key Features
 Sensor Integration: Installation of temperature and humidity sensors
in transportation vehicles to capture real-time data.
 Alert Systems: Automated alerts and notifications triggered by
deviations from preset temperature ranges, allowing for immediate
corrective actions.
Preservation of Pharmaceuticals, Fresh Produce, and Processed Foods
  Description: The ultimate goal of our service is to ensure the preservation of
pharmaceuticals, fresh produce, and processed foods in an environment that
extends their shelf life and guarantees their safety for consumption.
 Key Features
 Cold Chain Integrity: Strict adherence to cold chain principles, from
production to delivery, to prevent spoilage and maintain the efficacy of
pharmaceuticals (Yang et al. 2022).
 Customized Solutions: Tailoring storage and transportation
conditions to the specific requirements of different products, ensuring
their quality is upheld throughout the supply chain.
Trends and Industry Analysis
Several factors contribute to the positive trajectory of the cold chain logistics industry in
Vietnam. An increase in international trade and a growing demand for high-quality perishable
goods are both contributing factors that are driving the cold chain logistics industry in
Vietnam to experience a positive trajectory (Nguyen 2022). FrostGuard Logistics Solutions
intends to provide comprehensive solutions, which our current competitors do not offer.
According to the trends in the industry, there is a demand for more advanced services, which
presents an ideal opportunity for our company to enter the market.
Competitive Landscape
While there are existing competitors in the cold chain logistics sector, our business seeks to
provide comprehensive solutions that go beyond the current industry standards. The focus on
cutting-edge technology, strategic alliances, and tailored services positions us as a unique
player in the market. Notably, our competitors may lack the same level of sophistication in
their service offerings, providing us with a competitive advantage (Ken Research, 2023).
Competitor CLK COLD SCE AND GEA VIỆT NAM SEALAND A
profiles STORAGE CO., SERVICES MAERSK
LTD COMPANY COMPANY

Description  A well-  A key  A player with a

of established  Specializes in competitor strong presence
competitors player in the providing with a in both the
Vietnamese end-to-end specialization pharmaceutical
cold chain cold chain in and food
logistics sector. solutions, pharmaceutical sectors.
 Known for a including cold chain  Differentiates
comprehensive temperature- logistics. through a
network of controlled  Known for diverse range
cold storage transportation compliance of value-added
facilities and and with services,
transportation warehousing. international including
services.  Notable for its standards in packaging and
 Recognized for focus on transporting labeling.
its strong client technology- and storing  Recognized for
base in the driven pharmaceutical its strategic
pharmaceutical monitoring products. alliances with
and food systems for  Has a track key players in
industries real-time record of the logistics
(CLK COLD visibility. successful and supply
STORAGE  Has a history collaborations chain industry.
n.d.) of serving with major
major food pharmaceutical
retailers and companies.
distributors in
the region.

Marketing and Sales

Market Opportunities
The primary target customers for our cold chain logistics services include food
manufacturers, distributors, retailers, and pharmaceutical companies. By tailoring our
services to meet the unique requirements of each sector, we aim to position ourselves as the
premier cold chain logistics collaborator in Vietnam. Initially, we will emphasize the
pharmaceutical and food sectors due to their stringent temperature regulation needs and
willingness to invest in premium logistics services (Vietnam Briefing, 2023).
MKT strategy
The success of our cold chain logistics venture in Vietnam relies heavily on a well-crafted
marketing and sales strategy. In order to implement marketing strategy, we will be
participating in industry-specific events, establishing a strong online presence, and running
targeted digital campaigns. Increasing the visibility of the brand and developing a strong
customer base will be accomplished through the cultivation of strategic alliances with key
players in the pharmaceutical, food production, and distribution industries.
Industry-Specific Events Participation
 Engaging in industry-specific events such as logistics and trade fairs to
increase visibility (Brenner 2022).
 Participation provides networking opportunities and showcases our advanced
cold chain solutions to potential clients.
Online Presence Building
 Establishing a robust online presence through a user-friendly website and
active presence on social media platforms.
 Utilizing digital marketing tools to reach a broader audience and communicate
our unique value propositions effectively.
Digital Campaigns
 Running targeted digital campaigns focusing on the efficiency, reliability, and
technological advancements of our cold chain logistics services (Corchia
2019).
 Leveraging online advertising to reach specific segments and create brand
awareness.
Strategic Alliances
 Cultivating strategic alliances with key players in the pharmaceutical, food
production, and distribution industries (Larson 2011).
 Collaborations enhance credibility, expand the client base, and open new
avenues for business growth.
Target customer
Our primary customer base includes:
Pharmaceutical Companies:
  Pharmaceutical companies requiring precise and compliant cold chain logistics
for the transportation and storage of temperature-sensitive drugs and vaccines.
 Strategic Objective: To position ourselves as the preferred cold chain logistics
collaborator in the pharmaceutical sector by ensuring regulatory compliance
and adherence to international standards.
Food Manufacturers, Distributors, and Retailers:
 Food industry stakeholders seeking reliable cold chain solutions to maintain
the quality and safety of perishable goods.
 Strategic Objective: To become a trusted partner in the food industry by
offering end-to-end cold chain services, including advanced storage and
transportation solutions.

Targeted Segments
Pharmaceutical Segment: The pharmaceutical segment demands the highest level of
precision and compliance due to the sensitivity of medical products (VIR 2023). By
targeting this segment, we position ourselves to offer specialized services, including
temperature-controlled storage and transportation, tailored to meet stringent
regulatory requirements.
Food Sector – Fresh Produce and Processed Foods: The growing demand for high-
quality perishable goods in international trade and domestic markets presents an ideal
opportunity (Ken Research 2023). Focusing on the food sector allows us to tap into a
market with promising growth trends and offer comprehensive solutions that current
competitors may not provide.

Financials

Initial capital expenditures encompass various components such as infrastructure

development, technology integration, marketing endeavors, and operational expenses.
To mitigate the uncertainties linked to initial capital investments and guarantee long-
term expansion, it is advisable to adopt a phased expansion strategy.
Profit analysis
The profitability analysis demonstrates an upward trend, and it is expected that the
business will achieve profitability within the initial two years of operation. Strategic
alliances, scalability, and ongoing improvements in operational efficiency are all
necessary to achieve long-term profitability and sustainability.
Revenue Projections
Year Revenue from Cold Chain Revenue from Value-Added Total Revenue
Services (USD) Services (USD) (USD)
Year 1,500,000 200,000 1,700,000
1
Year 3,000,000 400,000 3,400,000
2
Year 5,000,000 600,000 5,600,000
3
Year 8,000,000 800,000 8,800,000
4
Year 12,000,000 1,000,000 13,000,000
5
Revenue Breakdown
 Revenue from Cold Chain Services includes fees for temperature-controlled
transportation and warehousing.
 Revenue from Value-Added Services includes income from packaging, labeling, and
other supplementary services.
Cost Breakdown
Initial Capital Expenditures
Category Investment (USD)
Infrastructure Development 2,500,000
Technology Integration 1,000,000
Marketing Endeavors 500,000
Operational Expenses 1,200,000
Total Initial Investment 5,200,000
Operational Expenses (Annual)
Category Year 1 Year 2 Year 3 Year 4 Year 5
(USD) (USD) (USD) (USD) (USD)
Personnel Costs 800,000 1,200,000 1,500,000 1,800,000 2,000,000
Technology 150,000 200,000 250,000 300,000 350,000
Maintenance
 Marketing and 100,000 150,000 200,000 250,000 300,000
Advertising
Rent and Utilities 300,000 400,000 500,000 600,000 700,000
Miscellaneous 50,000 75,000 100,000 125,000 150,000
Total Operational 1,400,000 2,025,000 2,550,000 3,075,000 3,500,000
Expenses
Profit Analysis
Year Total Revenue (USD) Total Operational Expenses (USD) Net Profit (USD)
Year 1 1,700,000 1,400,000 300,000
Year 2 3,400,000 2,025,000 1,375,000
Year 3 5,600,000 2,550,000 3,050,000
Year 4 8,800,000 3,075,000 5,725,000
Year 5 13,000,000 3,500,000 9,500,000

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