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VVIETNAM NATIONAL UNIVERSITY

University of Economics & Business

<b>FINAL EXAM ENTREPRENEURSHIP</b>

<b>Freshtee - Detox Drink With Natural Ingredients</b>

<b>Lecturer: Dr. Cao Tú Oanh </b>

<b>MsC. Lê Nguyễn Hồng PhươngStudent: Vũ Thị Thanh DuyênStudent ID:21050164</b>

<b>Course Code: BSA3031-E*</b>

Ha Noi - 2023

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2.1.1. Who is the customer?...6

2.1.2. What value does the business deliver to the customers?...6

2.1.3. How does the business operate?...7

2.1.4. How does the business make money?...7

<b>2.2. Market evaluation...7</b>

2.2.1. Macro analysis: PESTEL Model...7

2.2.2. Industry (micro) analysis...15

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2.7.2. Cash flow...42 2.7.3. Break even analysis...44

<b>2.8. Capital and venture fund mobilization...44</b>

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<b>LIST OF FIGURES</b>

<b>2.2</b> E-commerce share of total retail sales in Vietnam from 2015 to 2022 <b>9</b>

<b>2.3</b> ^{Products and services purchased to improve health and wellness in}

<b>2.4</b> ^{Penetration rate of leading social media apps among internet users}

in Vietnam as of 3rd quarter of 2023, by generation <b>¹²</b>

<b>2.5</b> ^{E-commerce market value in Vietnam from 2014 to 2022 with a}

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<b>2.4</b> Cost of raw materials used in the first 3 months 40,41

<b>2.5</b> Operating Budgets in first three months 41,42

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<b>I. EXECUTIVE SUMMARY </b>

<b>1.1. Introduction</b>

The Detox drink is becoming an increasingly popular idea due to increasing awareness of the importance of maintaining a healthy lifestyle, ensuring health and improving body shape, especially for women who want to give themselves a beautiful, balanced and healthy body. Recognizing the importance and potential needs of the market, we began to research, learn and come up with the idea of a Detox drinking water business. Our business promises to not only meet the increasing needs of the health and beauty market but also demonstrate a commitment to natural, healthy, sustainable and safe product quality

<b>● Business name: Freshtee</b>

Freshtee means fresh and new. The business always aims to provide customers with fresh, nutritious products made from fresh, clean ingredients of the highest quality to ensure consumer health safety.

<b>● Address: Number 25, Lane 89 Pham Van Dong, Cau Giay District, Hanoi.● Slogan: “Renew from within, regain vitality with Freshtee.”</b>

<b>● Business philosophy: Freshtee business philosophy is not just a statement, but a</b>

guide for all decisions and actions of the business. It is not only the foundation of the brand but also a principle for building solid relationships with customers and

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<b>1.2. Products</b>

The business “Freshtee” aims to bring to market a series of detox drink products with a diverse combination of natural ingredients to meet the needs, tastes and preferences of customers. The company’s detox products are divided into many categories such as:

● Melon Detox

Ingredients: Melon, pineapple, mango

Benefits: Supports fat burning, rejuvenates the skin, and boosts energy. ● Smoothie Detox:

Ingredients: Spinach, apple, orange, pineapple, chia seeds and banana

Benefits: Provides fiber, vitamins, and minerals, cleanses the intestines, and supports weight loss.

● Orange and Ginger Detox Water:

Ingredients: Fresh orange juice, ginger, and a little honey if needed.

Benefits: Ginger can stimulate digestion, reduce cravings, promote overall health, and give a radiant complexion.

● Cashews Detox:

Ingredients: Cashews, filtered water, dates, copra

Benefits: Easy to drink, reduces hunger, cools the body, and provides minerals from coconut water.

● Carrot and Turmeric Detox Juice:

Ingredients: Fresh carrot juice, fresh turmeric, filtered water, and a little honey if needed.

Benefits: Carrots provide vitamin A, while turmeric has antibacterial and anti-inflammatory properties.

● Infused Water with Strawberries, Watermelon, and Mint: Ingredients: Strawberries, watermelon, mint, and filtered water.

Benefits: Supports weight loss, provides pollution-fighting compounds, and refreshes the body.

● Apple and Pomegranate Detox Juice:

Ingredients: Fresh apple, pomegranate seeds, filtered water.

Benefits: Provides antioxidants, fiber, and vitamins, promoting heart health.

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● Banana and Chia Seeds Detox Smoothie: Ingredients: Banana, chia seeds, filtered water.

Benefits: Provides energy, fiber, and omega-3 fatty acids from chia seeds. ● Celery, Spinach, Honey Detox:

Ingredients:Celery, apple, romaine, cucumber, spinach, kale, ginger, lemon Benefits: Beautifies the skin, detoxifies the body, cools the liver, supports acne reduction, and contributes to weight loss.

● Pennywort, Spinach, Basil Detox:

Benefits: Improves skin pigmentation, supports skin beauty, enhances sleep.

<b>Figure 1.2: Freshtee’s Product</b>

Source: Authors We provide detox water products with 100% natural ingredients. The product has a 3-day schedule, 6 bottles a day provide the body with the necessary nutrients for 1 day. Products are produced every day and delivered to customers every morning according to the schedule. The company's detox products not only support the weight loss process but also help eliminate toxins in the body, helping to purify and balance the body after absorbing harmful substances.

These are Freshtee products designed to support weight loss and rejuvenate the body by eliminating toxins. However, maintaining a balanced and healthy diet, along with regular physical activity, is crucial to achieving desired results and maintaining overall well-being. All Detox products from the company are ensured to be safe and

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compliant with food safety regulations They have been tested and registered according to the standards of food safety authorities and the Ministry of Health to ensure they are safe and meet nutritional and health standards.

The origin of Detox ingredients: The company aims to use Detox ingredients that are 100% natural, sourced mainly from fruits, vegetables, and herbs. Detox beverages ensure the provision of necessary energy and nutrients, effectively supporting the body's rejuvenation process, improving health, and promoting a healthy lifestyle. Choosing products sourced from nature not only improves consumers' health but also contributes to environmental sustainability.

However, we need to note that customers with symptoms of blood pressure and stomach problems should consider before using Detox water and avoid highly acidic water. For customers who want to apply the Detox menu, we need to combine it with a reasonable diet, balancing eating with exercise to bring about the health and body shape that we desire.

<b>1.3. Value, Vision and Missions</b>

● Freshtee Vision:

Our vision is to build a world where people are inspired and supported to live healthier lives through the use of natural detox drinks. We are committed to creating high quality, safe and effective products that help people feel energized and bring balance to their lives. We not only focus on providing detox products but also want to spread the message of a healthier lifestyle and being more aware of health care. We aim to inspire, educate and support the community in promoting an active, healthy lifestyle.

● Freshtee’s Mission:

We are committed to bringing everyone a healthy experience and ensuring good health through high-quality detox products, made from pure natural ingredients. Our mission is not not only providing detox drinks, but also being a companion in every consumer's health care journey. We believe that health is the most valuable, the golden key and everyone deserves a good life. Live healthy and full of energy. Understanding the value of nature and fresh vitality, we constantly strive to bring customers exquisite and unique detox experiences, helping them renew their bodies, increase energy, and lead a healthier, happier life.

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The business aims to develop and exist sustainably in the market to provide products with safe quality and bring the best experiences to consumers. Businesses will absorb and improve product quality every day so that consumers can trust and choose products, contributing to increasing the business's reputation in the market.

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<b>II. BUSINESS PLAN </b>

● Geography: Our customer we aim is mainly in Ha Noi.

● Lifestyle: People interested in healthy lifestyle, health care and using natural products. Busy people want to purify their bodies and lose weight but don't have time to detox water.

2.1.2. What value does the business deliver to the customers?

<b>● Supplement vitamins and minerals: These detox drinks often contain vitamins,</b>

minerals, and antioxidants from the added fruits and vegetables, that are beneficial for the body. For example, citrus fruits like lemons and oranges add vitamin C, while cucumber and mint might offer refreshing properties.

<b>● Body purification and lose weight: After a three-day detox treatment, the body</b>

will metabolize, purify cells and the metabolic process will take place strongly. Fat is burned to provide energy for the body and weight can vary between 1 - 2 kg.

<b>● Convenience: Detox water can be a convenient choice for busy people who want</b>

to supplement essential vitamins and minerals more effectively while being very fresh, delicious and scientific. Nature Vibe products are often pre-packaged in glass bottles and delivered by appointment to help ensure hygiene and convenience for customers.

<b>● Build a healthy lifestyle: Detoxing with fruit and vegetable juice not only helps</b>

you get the necessary nutrients for your body, but also builds and starts a healthy lifestyle, staying away from processed foods that are harmful to the body.

<b>● Trust: Our company invests heavily in product research and development, is</b>

committed to using healthy ingredients, and at the same time ensures the quality

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and effectiveness of detox drink products. As a result, customers can feel more confident when making a purchase.

2.1.3. How does the business operate?

The operation process of Freshtee is presented step by step as follows:

<b>Figure 2.1: The operation process</b>

Source: Authors

<b>Market research: Conduct market research to understand the demand for detox</b>

drinks, popular products and competitors in the market.

<b>Product development: Develop a range of products that are in demand and cater to</b>

different customer needs.

<b>Manufacturing Process: Source high-quality ingredients and manufacture the</b>

products. This may include hand-crafting or using machines and other equipment.

<b>Quality control: Ensure that all products meet high-quality standards and make</b>

necessary adjustments to improve the quality of products.

<b>Marketing and Sales: Develop and implement marketing strategies to promote the</b>

products. This may include traditional marketing, advertising, social media marketing, etc. Sell the products through many different online channels, such as websites, social media,...

<b>Customer service: Provide excellent customer service to ensure customer</b>

satisfaction and loyalty. This may include responding to customer inquiries, handling complaints, and offering after-sales support.

<b>Business management: Manage the finances, and other business operations to</b>

ensure smooth functioning of the company.

2.1.4. How does the business make money?

The main business model of the business is B2C (business to customer), the Freshtee's revenue source will come from selling detox drink products to customers through many different channels, such as websites, social media,...

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<b>2.2. Market evaluation</b>

2.2.1. Macro analysis: PESTEL Model

● Stability and Continuity

Vietnam's stable one-party government provides a foundation for long-term business planning, fostering an investor-friendly climate. This stability potentially boosts demand for premium detox products like ours.

● Health and Wellness Focus

Government initiatives like the National Strategy on Nutrition 2021-2030 promote healthy lifestyles, aligning seamlessly with our brand's message. This supportive climate fosters a conducive environment for our detox drinks to empower individuals to embrace well-being.

● Trade Agreements

Furthermore, Vietnam's extensive network of free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), opens doors to lucrative export markets, allowing us to share the Freshtee experience with a global audience.

● Rising Disposable Income

Vietnam's economic growth is fostering a rising middle class, a key target audience for our brand. This demographic is increasingly health-conscious, willing to invest in natural, high-quality products. According to The Ministry of Finance, more than half of the Vietnamese population will enter the global middle class by 2035, creating more disposable income and fueling consumption. Vietnam's GDP per capita increased 3.6 times, reaching almost US$3,700 in 2022, indicating a higher living standard and purchasing power for Vietnamese consumers.

● Growing Online Retail

The rise of online shopping platforms like Shopee and Lazada presents both opportunities and challenges. We need to establish a strong online presence through targeted marketing campaigns while maintaining consistent brand messaging across channels. In 2022, e-commerce sales accounted for 7% of the total retail sales in Vietnam, and this share is expected to grow further in the coming years. The e-commerce

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market value in Vietnam was forecast to reach 60 billion U.S. dollars by 2030, ranking second only after Indonesia in Southeast Asia.

<b>Figure 2.2: E-commerce share of total retail sales in Vietnam from 2015 to 2022</b>

Source: Statista, 2023 ● Evolving Regulatory Landscape

The Vietnamese government is actively regulating the food and beverage industry, particularly in areas related to labeling and safety standards. We must adhere to these regulations to protect consumer trust and maintain our competitive edge. The Food Safety Law 2010 and its guiding decrees provide the legal framework for food and beverage registration, import, and inspection in Vietnam. The government is also moving to implement mandatory nutritional labeling regulations and align with international standards.

● Health Awareness

Vietnamese consumers are increasingly health-conscious, driven by factors like rising disposable income and growing social media influence. In fact, Nielsen data in 2020 showed that 49% of Vietnamese consumers prioritize health, the highest globally. According to Statista, as of January 2023, around 57% of respondents purchased vitamin supplements to enhance their health and wellness.

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<b>Figure 2.3: Products and services purchased to improve health and wellness inVietnam as of January 2023</b>

Source: Statista, 2023 Another survey showed that eating a healthy diet was the leading kind of action to improve physical conditions among Vietnamese respondents, as stated by 60% of them. These findings indicate a high level of attention to the link between food and beverage consumption and health. Due to this factor, consumers are increasingly turning to maintaining a healthy lifestyle to help maintain physical fitness while reducing the risk of obesity and overweight diseases. Therefore, the detox drinks market in Viet Nam is extremely potential and growing. Our detox drinks perfectly cater to this trend, offering natural solutions for cleansing and revitalization.

● Natural and Organic Preferences

A palpable shift towards natural and organic products exists, aligning perfectly with our commitment to purity. This presents a competitive advantage as consumers seek healthier alternatives, driven by concerns about food safety and artificial ingredients. Vietnam’s consumption of health and wellness products has significantly increased in recent years as its consumers become more affluent and health conscious. Although organic food and beverages remain a niche segment of the overall health and wellness market, U.S. exports of organic agricultural products to Vietnam doubled in 2020 despite

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an economic downturn due to the COVID-19 pandemic. A growing middle-class, higher disposable incomes, and increased concerns about health, combined with a limited domestic supply, are key factors that make Vietnam a potential growth market for imported organic food and beverage products.

● Busy Lifestyles

With hectic urban schedules, people are looking for convenient and healthy solutions. Our ready-to-drink detox beverages cater to this need, offering a quick and refreshing escape from the daily grind, aligning with changing consumer preferences. Vietnam’s urbanization rate was at 38% in 2021, and it is expected to reach at least 45% by 2025 and over 50% in 2030 (VNExpress International, 2022). Urbanization has created concentrated labor markets and economic activities that fostered prosperity, but also increased stress and pollution for the urban dwellers. Our detox drinks can help them cope with these challenges, by providing a natural and organic way to detoxify and rejuvenate their bodies and minds.

● Social Media Influence

Social media platforms like Facebook, Instagram, and TikTok are powerful tools for shaping consumer trends and preferences. We can harness their influence to build brand awareness, engage with our target audience, and promote our detox drinks through targeted content and influencer collaborations. According to Datareportal, as of January 2023, Vietnam was home to 70.00 million social media users, equating to 71.0% of the total population. The most popular social media platforms in Vietnam were Facebook, YouTube, and Zalo. These platforms offer various features and formats to showcase our products and interact with our potential customers, such as live streams, stories, reels, and videos.

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<b>Figure 2.4: Penetration rate of leading social media apps among internet users inVietnam as of 3rd quarter of 2023, by generation</b>

Source: Statista, 2023 ● E-commerce Boom

Furthermore, the booming e-commerce industry, driven by factors like mobile internet penetration and increasing consumer trust, provides a direct-to-consumer sales channel, bypassing traditional distribution hurdles and allowing us to reach a wider customer base. This also enables us to offer competitive prices and flexible delivery options. In 2022, Vietnam's e-commerce market value based on B2C revenue amounted to approximately 16.4 billion U.S. dollars, accounting for approximately 7.5% of the total retail sales of goods and services in the country that year. It was forecasted that the revenue of this segment would exceed 20 billion U.S. dollars by 2023. The number of online shoppers in the country has been growing steadily in recent years, reaching over 57.6 million people in 2022.

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<b>Figure 2.5: E-commerce market value in Vietnam from 2014 to 2022 with a forecastfor 2023(in billion U.S. dollars)</b>

Source: Statista, 2023 ● Delivery Convenience

Online food delivery services like GrabFood and GoFood are becoming increasingly popular, also providing convenient access to our detox drinks. Partnering with these platforms can expand our reach and enhance user experience in busy urban areas, catering to changing consumer behavior. The online food delivery market size in Vietnam was estimated at 727.9 million U.S. dollars in 2022, and it was projected to reach 1.81 billion U.S. dollars by 2028, exhibiting a growth rate (CAGR) of 15.61% during 2023-2028. According to a survey conducted in Vietnam in 2022, ShopeeFood was the leading food delivery app in use in the country, followed by GrabFood, as used by 58 and 48 percent of the respondents respectively. In that year, these two delivery apps also hold the largest market share of the food delivery segment in the country.

● Sustainability Concerns

Vietnamese consumers are becoming more environmentally conscious, valuing businesses that prioritize sustainability. We need to emphasize the use of natural ingredients, eco-friendly packaging, and sustainable sourcing practices like local farmers’

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markets to resonate with this growing sentiment. According to a survey by PwC, more than 90 percent of respondents are willing to pay more for products with verified origin and products using sustainable materials. Another survey showed that 86% of Vietnamese consumers were willing to pay more for products and services that came from companies committed to positive social and environmental impact. These findings indicate a high level of awareness and demand for sustainability among Vietnamese consumers.

● Waste Management Regulations

Stricter regulations on plastic waste, such as the Law on Environmental Protection 2020, are pushing businesses towards sustainable alternatives. This presents an opportunity to innovate with biodegradable packaging solutions like bamboo straws and glass bottles that align with environmental concerns. The Law on Environmental Protection 2020 stipulates a roadmap for controlling the manufacture and import of single-use plastic products and poorly degradable plastic packaging materials, and prohibits the use of microplastics in certain products by 2030. Businesses that manufacture or import these products must also implement the recycling and treatment obligation under the Extended Producer Responsibility scheme. These regulations create incentives for businesses to adopt more eco-friendly practices and products.

● Climate Change Impact

Extreme weather events and rising sea levels pose potential threats to agricultural production, impacting the availability and cost of natural ingredients. We need to be mindful of these challenges and explore alternative sourcing options to maintain sustainable practices. Vietnam is one of the most vulnerable countries in the world to climate change, with projected temperature increases of 1.3°C to 4.2°C by the end of the century, depending on the global emissions scenario. Climate change impacts, such as droughts, floods, salinity intrusion, and pests, could reduce crop yields and quality, especially for rice, maize, and fruits. These impacts could also affect the livelihoods and food security of millions of farmers and consumers in Vietnam. Therefore, we need to diversify our sources of natural ingredients and support climate-resilient agriculture.

● Regulatory Framework

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Vietnam's Food Safety Law 2010 and subsequent regulations establish stringent guidelines for food and beverage production, including labeling requirements, ingredient safety standards, and traceability protocols. We must comply with these regulations to ensure the safety and quality of our detox drinks, as well as maintain consumer trust and avoid regulatory penalties.

● Intellectual Property Protection

Protecting our brand identity and intellectual property is crucial in the competitive marketplace. We should register our trademarks and patents to safeguard our brand name, recipes, and packaging designs from unauthorized use.

● Food Labeling Requirements

Clear and accurate labeling is essential to inform consumers about the contents of our detox drinks. We must comply with labeling regulations, including listing ingredients, nutritional information, and any potential allergens.

● Advertising Regulations

Advertising for food and beverage products in Vietnam is subject to regulations that prohibit misleading claims and unsubstantiated health benefits. We must carefully craft our marketing messages to adhere to these regulations and maintain consumer trust.

2.2.2. Industry (micro) analysis

<b>Industry Demand</b>

Vietnam's beverage industry is undergoing a fascinating shift. While traditional soft drinks face a decline, the demand for healthy alternatives is soaring. This presents a fertile ground for Freshtee, positioned at the intersection of wellness and natural ingredients.

<b>Factors fueling demand:</b>

● Rising health consciousness

Vietnamese consumers are increasingly prioritizing health, with Nielsen data showing health as the top concern for 49% of Vietnamese consumers in the first quarter of 2020, the highest level globally. This translates into a growing appetite for products perceived as “healthy”, including detox drinks. According to a survey conducted in Vietnam, as of January 2021, around 57% of respondents purchased environmentally friendly products to enhance their health and wellness. Detox drinks can appeal to this segment, as they offer natural solutions for cleansing and revitalization.

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● Urbanization and busy lifestyles

Vietnam's fast-paced urban life creates a need for convenient and health-boosting solutions. Detox drinks fit the bill, offering quick detox fixes and energy boosts. Vietnam's urbanization rate was at 38% in 2021, and it is expected to reach at least 45% by 2025 and over 50% in 2030. Urbanization has created concentrated labor markets and economic activities that fostered prosperity, but also increased stress and pollution for the urban dwellers. Detox drinks can help them cope with these challenges, by providing a natural and organic way to detoxify and rejuvenate their bodies and minds.

● Growing disposable income

Increased spending power allows consumers to invest in preventive healthcare and wellness products, including premium detox drinks. In 2022, the average monthly income per capita in Vietnam reached approximately 4.7 million VNĐ, indicating a slight increase from the previous year. 2020 and 2021 were particularly difficult years for the country’s population when per capita income decreased due to the negative impacts of the COVID-19 epidemic. However, Vietnam has been one of the fastest-growing economies in the world, with an average annual GDP growth rate of 6.8% from 2016 to 2019. This growth enhances the purchasing power and living standards of Vietnamese consumers, who may be more willing and able to afford premium detox products like ours.

● Social media influence

Fitness and health influencers heavily promote detox trends, driving awareness and demand for detox products like Freshtee. According to Affable, there are over 1,000 fitness influencers on Instagram in Vietnam, who have a combined reach of over 20 million followers. These influencers often share their detox routines, tips, and product recommendations with their audience, creating a buzz around the detox category. Some of the leading fitness influencers in Vietnam are Quang Dang, Hana Giang Anh, and Tracy Le, who have endorsed brands such as Samsung, YSL, Pond’s, California Yoga and Fitness, Rebook and others. By collaborating with these influencers, we can leverage their influence and credibility to build brand awareness, engagement, and loyalty for our detox drinks.

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While the detox drink market presents a promising opportunity, Freshtee faces an array of competitors.

● Direct Competitors: - Pre-packaged detox drinks:

These are ready-made drinks that contain various ingredients such as fruits, vegetables, herbs, and enzymes that claim to detoxify the body. Some of the popular brands in this category are Kihohimitsu, Enzymes, and others.

- Detox tea products

These are tea-based drinks that contain herbs, spices, and other natural substances that are supposed to have detoxifying and slimming effects. Some examples of detox tea products are Detox Tea Market, Fruit & Vegetable Ingredients Market, and Vegetable Powders Market.

● Indirect Competitors:

- Nutritional supplement products

These are products that provide essential nutrients, vitamins, minerals, or other beneficial substances that may enhance health and wellness. Some of the products that compete with detox drinks in this category are Vitamins & Minerals, Health Supplement Market, and Nutritional Supplements Market.

- Other natural beverage products

These are products that are made from natural ingredients such as fruits, vegetables, herbs, or flowers, but do not necessarily have detoxifying or weight loss claims. Some of the products that may appeal to the same consumers as detox drinks are Non-Alcoholic Drinks, Beverages Market, and non-alcoholic beverages retail sales.

- Other beverage products outside the market

These are products that are not natural or healthy, but may satisfy the taste or thirst of consumers. Some of the products that may divert consumers from detox drinks are milk tea, sodas, coffee, and alcoholic drinks.

- Yoga and fitness centers

These are places that offer physical activities and exercises that may improve health, fitness, and well-being. Some consumers may prefer to work out at these centers rather than consume detox drinks, as they may perceive them as safer, more effective, or

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more enjoyable. Some examples of yoga and fitness centers in Vietnam are Zenith Yoga, Tâm Đan Fitness & Yoga, and Sports and fitness in Vietnam Report.

<b>Freshtee's Differentiation:</b>

● Natural ingredients

Our products are made entirely from natural ingredients, free from preservatives, safe, and nutritionally rich. We use fresh fruits, vegetables, herbs, and spices that are sourced from local farmers and organic suppliers. We do not add any artificial flavors, colors, sweeteners, or chemicals to our products, ensuring the highest quality and purity.

● Quick and noticeable results

Our products offer multiple benefits for your health and wellness, such as supporting weight loss, body cleansing, digestion, and better sleep. You can see and feel the difference in just a few days of using our products, as they help you flush out toxins, boost your metabolism, and enhance your energy levels. Our products are also delicious and refreshing, making them a pleasure to consume.

● Structured programs suitable for different target groups

We offer various programs that are tailored to suit different needs and goals of our customers, such as detox, slimming, beauty, or wellness. Each program consists of a set of products that are designed to work together to achieve the desired results. We also provide daily delivery of new products according to the schedule for user convenience, so you do not have to worry about preparing or storing them.

● Minimized side effects

Unlike other detox products in the market, our products minimize the side effects that may occur during the detox process, such as headaches, nausea, or fatigue. This is because our products are balanced and gentle, providing adequate hydration, nutrition, and fiber to your body. Our products also contain natural ingredients that help soothe and calm your system, such as ginger, mint, and chamomile.

<b>2.3. Business form</b>

2.3.1. Choice of business form

We chose the type of business as a joint stock company - one of the most popular business models today.

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● The company has legal personality, from the date of issuance of the business registration certificate, is responsible for all debts and property obligations of the company within the scope of the value of the company's assets.

● The charter capital is divided into equal parts called shares. The joint-stock company must have common shares and may issue preferential shares of various types such as preferred dividend shares, redeemable preferred shares, voting preferred shares, and other preferred shares as provided in the company's charter. Shares are freely transferable, except for voting preferred shares, which are not transferable. In the first 3 years from the date of business registration of the company, common shares of the founding shareholders may only be transferred to outsiders if approved by the general meeting of shareholders.

● Shareholders may be organizations or individuals with a minimum of 3 and no maximum number.

● The company has the right to issue securities of all kinds to raise capital from the public.

Although the choice of this type of business has brought great benefits to the newly established business but also faced some challenges:

● The limited liability regime means that the level of risk for shareholders is low. Shareholders are only responsible for the debts and other property obligations of the company within the scope of the capital they have contributed to the company. ● The ability to raise capital is very high and flexible through the offering of various types of shares, issuing shares to the public. Currently, this is the only type of business that can issue shares to raise capital.

● The ability of the joint stock company to operate is very wide, in most fields and industries.

● The simple procedures for transferring shares, plus no limit on the number of shareholders, are factors that attract many individuals or organizations to easily participate in contributing capital to joint stock companies. Therefore, the range of subjects who can buy shares and participate as shareholders of joint stock companies is very wide.

● The right to list and trade shares on the stock exchange.

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● The company's organizational structure is complex, so the management and operation of a joint stock company is also more difficult due to the very large number of shareholders. Many shareholders may not know each other and there may be a division into groups of shareholders within the company with conflicting interests.

● For a joint stock company, it will be more difficult to make a decision, whether it is about business management or business, because it must go through the Board of Directors, the General Assembly of Shareholders, etc. Therefore, it is very easy to miss out on business opportunities for the business.

● The ability to keep business and financial secrets is limited because the company must disclose and report to shareholders at regular meetings.

● In addition, when shareholders transfer shares, they are obligated to file a personal income tax return and pay personal income tax at a rate of 0.1% on the price of each transfer of shares.

2.3.2. Ownership

<b>Charter capital: 280.000.000 VNĐ</b>

<b>Capital contribution ratio of members: 40.000.000 VNĐ</b>

The company's capital is 280 million VNĐ, which is divided equally among the seven founders. Each founder has invested 40 million VNĐ, which is about 15% of the total capital.

<b>2.4. Human resource plan </b>

2.4.1. Organization structure

Below is a functional organizational chart, each department will be supervised and managed by a corresponding position as mentioned in the previous section.

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<b>Figure 2.6: Organizational structure</b>

Source: Authors ● Company President: Have the function of leading, guide, supervise activities, create conditions for the Board of Directors and Board of Directors to operate as effectively as possible.

● General Director: Helps manage the entire organization's activities, ensuring all activities are operated in a shared, efficient manner and achieve the set goals. ● Director: Direct, supervise and operate departments or divisions of the enterprise

to ensure operations achieve business goals.

● Head of administrative department: Receive and process internal work within the enterprise.

● Head of finance and accounting department: Collect, analyze, and process data and information to establish main reporting accounts, including cash flow reports, balance sheets, and business performance reports.

● Head of research and development department: Enterprise management of sales department, building business strategies to achieve business goals.

● Head of sales and marketing department: Manage and direct the marketing department.

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