SUBJECT

DATE AUTHORS26/06/2013 MURIEL WOJDYNIAK, FREDERIC BREMENT, ALVARO DE LA TORRE, ADRIEN PHO

Honored Wine Glass – 尊爵 ©

PRESENTING TEAM:

.FREDERIC BREMENT

.ADRIEN PHO

.ALVARO DE LA TORRE

.MURIEL WOJDYNIAK

Table of content• The concept

• Objectives and Strategy

• The business (organizational chart)

• Logistic and partners

• Marketing and Communication actions

• Financial point of vu

• Legal

• Risks and Worst case scenario

• Conclusion

Introduction

• Shanghai, China

• Wine bar and retailer

• Spanish & French wines,

• Staff

• Paid-in capital of EUR 50,000

• Funding request of EUR 100,000

• 4 years

• 5,5%

• Overdraft of EUR 10,000

• 7%

Become a trusted reference as an European wine bar and retailer in Shanghai

Vision

People

Portfolio

Partners

Planet

Profit

Productivity

ObjectivesGlobal:

• Be known as a new wine shop concept,

• To surprise them,

• Discover a new culture,

3rd year objectives

• Reach 35,800 bottles

• turnover +34,25%

• Increase the loyalty of our customers,

• Develop our website : special members section

• Increase our wine and liquor portfolio,

• Open our second shop in Shanghai,

Objectives5th year objectives

• Reach 57,730 bottles sold,• Turnover by 115%, • Reference in Spanish wines,• Develop and create links with suppliers, • Increase our local partners, • Create a private club,• Open a 3rd shop in Shanghai,• Prepare the opening of a 4th shop

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Competitive advantage • Knowledgeable staff in wine

• Build trust with the customers,

• Be able to say no,

• Advice customers in their purchase according to

• Their taste,

• The atmosphere they want to create,

• Quality of the wine

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Our Strategy

• Adrien Pho as the CEO

• Hire Chinese people experts on wine,

• Expand the concept as soon as possible,

• Price policy: middle range class target,

• Keep our original concept,

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The business organizational structure

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Frédéric BREMENTMarketing

And sales director

Alvaro de la TORREPurchasing

And logistic director

Muriel WOJDYNIAK Human Resources

director 

Salepeson 1 Saleperson 2 Bartender 3

Adrien PHOCEO

Financial manager

Bartender C

Bartender C

Saleperson A

Saleperson A

The employeesWine consultants

• Give friendly and efficient advices,

• Assisting the wine tasting events,

• Reach the weekly objectives

• Fixed wage + commission

• Knowledge about:

• European wine,

• Chinese culture,

• Selling skills

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The employees

Bartender• Must know each one of our wines, • Advice the consumer perfectly, impress him • Support to the sales,

• Knowledge:• European wines,• Adapting/selling skills.

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LOGISTICS

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Spanish Suppliers• Marques de Riscal

• Marques de Riscal Red Reserva

• Baron de Chirel Reserva

• Marques de Caceres

• Marques de Cáceres Blanco Semidulce

• Marques de Cáceres Rosado

• Bodegas Berceo Gurpegui

• Pintoresco

• Berceo Crianza Seleccion

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Wines from Spain

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French Suppliers

• Bordeaux Wines

• Augey (White)

• Baron du Pin

• Bourgogne Wines

• Hautes de cotes de Beaune .

• Aligoté (white)

• Pernod Ricard

• Ricard

• Chivas

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Wines from France

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JF Hillebrand

• Help us in each section of the logistic.

• Our importer to Shanghai Port.

• One of the most important companies .

• Facilities.

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Incoterms

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DAP (Delivered at Place)• This will be the contract that we will make

with the importer company.

• The importer will be responsible for making a safe delivery of our containers in our destination.

• Include all transportation expenses, but not the duty.

• Less risky, more cost.

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Bonded Warehouse in Shanghai.• Manufacturing operations without payment

of duty.

• Managed by the state.

• We will have to pay the taxes, just when we will take out boxes.

• Integral part of the supply chain.

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Market Conditions• Tariff on Spanish wines is 14%.

• Wine in bulk, carries a tariff of 20%.

• The VAT is 17%.

• Consumption tax rises another 10%.

• CIF value is applied to a tax of 56% for bulk wine, and 48.2% for wine bottling.

• Labels

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Transport• Main port: From Barcelona and Bordeaux

port to Shanghai Port.

• Also Valencia and Bordeaux, could be another option

• Dominant support in global trade.

• The cost will be less.

• Huge capacity

• Delivery time.

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The cost

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MARKETING

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Marketing• Geographic Segmentation

• 1.34 billion > Chinese population

• 19 million > consuming wine

• 14.3 million > imported wine

• 248 million > purchasing power

• Shanghai population : 23.71 million (2012)

• Most mature market : 80% of the wine brands belong to the imported wine

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Marketing• Psychographic segmentation

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On-trade80%

Off-trade20%

Volume share in 2009

On-trade65%

Off-trade35%

Volume share in 2015

Marketing• Behavioral segmentation

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Marketing• Targeting

• Low-middle class and the up-middle class

• Men and women

• 30 to 45 years old

• Employees

• household income will be between CNY 25,000 and CNY 100,000.

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Marketing Action plan• Social network campaign

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Marketing Action planCreation of a website

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Marketing Action plan

33

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Marketing Action plan

Flyers distribution

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MarketingAction plan• Loyalty program

• How does this program work?

• When can you use your points earned?

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Yuan spent Points earned Yuan won

20 1

200 10

1200 60 20

MarketingAction planCreation of a brochure

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FINANCE

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Main assumption

• Market share: 3%

• 1 EUR = 7.95 CNY

• Yearly sales increase: 115%

Low Mid High

55% 25% 20%

115 140 250

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Forecasts

Y1 Y2 Y3 Y4 Y50

10,000

20,000

30,000

40,000

50,000

60,000

70,000

26,73029,901

35,886

50,508

57,730

Bottles sales in number of bottle

Low end number of bottlesMid end number of bottlesHigh end number of bottlesTotal number of bottles

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Forecasts

Y1 Y2 Y3 Y4 Y50

100,000

200,000

300,000

400,000

500,000

600,000

249,228279,391

334,598

470,934

538,272

Shop Sales in EUR

Low end salesMid end salesHigh end salesTotal sales

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Forecasts

Y1 Y2 Y3 Y4 Y50

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

311,535349,239

418,247

588,667

672,840

Bar Sales in EUR

Low end barMid end barHigh end barTotal bar

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Cash flow

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

CF; 346,766

CF

Cash

Flo

w in

EU

R

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Risks

• New quotas

• Bad harvest in Spain and France

• Cognac

• Credit crunch

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Conclusion

• Expand up our own bar/shop in Shanghai

• Become an important company in the wine sector.

• Create more stores.

• Important suppliers.

• Increase sales.

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THANK YOU

46

CONTACT@ZUNJUE.CN

Extra Slides

To answer your questions

FINANCE

Worst case scenario

• Portfolio expansion

• Third tier cities

• Sell

HUMAN RESOURCES

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Recruitment• chinaHR.com 

• Acquired by Monster.com

• 51Jobs

• Reach 4 million people each week

• Zhaopin

• 1994: headhaunting website transformed.

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Trainings• Wine training

• Special contract with Marquès de Riscal

• One week training in Spain

• Exchange: minimum of bottles sold in a year

• Chinese culture

• Adrien Pho

• 3 days in Shanghai

• Balanced thanks to our staff

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Contracts• Permanent contracts

• 8h/days,

• Trial period: 6 months,

• Bartender: fixed wage: 500€

• Wine consultants:

• Fixed low wage + a commission (1CNY/bottle)

• 350€ + commission =

• Share the sales of the month, Team spirit

• Legal holidays: 16 days/year (for the first 10 years),

• Trainings: for the co-founders:

• Wine: Marquès de Riscala

• Chinese: Adrien Pho53

MARKETING

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Marketing costCost In Euro In Yuan (CNY)

Staff hire per hour 1,82 14

Survey (4 persons, 4 hours) 28 222,6

Flyers 500 unit pack 18,6 147,87

Flyers distribution (4 persons, 4 hours, 4 packs)

102 810,9

Caterer per person 10 79,5

Wine trade fair (all include) 5800 46110

Professional Brochure x1000 180 1431

Website creation and maintenance (first month free)

26 206,7

Loyalty card x1000 213,85 1645

Loyalty software hardware + support per month

15,34 118

Insurance 200 1590

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Loyalty programm• Which company will make us those loyalty cards?• It will be a company called Loyalty Pro who has a subsidiary in China.

They are offering software and hardware solutions for a loyalty program.

• The package includes:• 1000 cards (design, production)• Docking station (computer – tablet – power supply – metal stand –

system)• Loyalty Pro portal for web registration• Data base creation, storage, security and maintenance• License for the software• Warranty which cover the equipment• Customer relationship management tools• Cost:• It will cost 1,645 CNT for the production of card and the equipment

installation, and then it will cost 118 CNY a month for the license and any maintenance and support needed.

• It represents respectively 213,85 Euros and 15,34 Euros.

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SEO

Search engine optimization

• Visibility of a website

• Higher ranked on the search engine

• Use keywords

• Focus the content on an area of expertise

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InsuranceThe General liability

•  It is covering product liability and personal injury protecting us (the co-founders) if a customer hurt himself inside the shop for example.

Liquor liability insurance

• To cover us against customer complaints and injuries caused by alcohol.

 

Product liability insurance

•  Protect us in the case of product counterfeit and defect on a product.

 

Business property

• Knowing that the bar business can be more “risky” with lots of fragile items and glasses, alcohol, we will need some special policies according to the core of our business.Moreover, it will cover our shop from natural disaster.

Workers’ Compensation

•  This will cover all our employees if they hurt and get damage inside their working area.

 

Crime Insurance

• The probability that this kind of event happen is low, but it is always important to be cover if people break into the shops to steal you.

 

 The price for this kind of professional insurance in the bar and catering industry is about 1,590 CNY a year representing 200 Euros.

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LegalLegal Form of Enterprise.

• We have chosen to set our business under a WOFE (Wholly Owned Foreign Enterprise) business form in Shanghai for several reasons:

• Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;

• Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to customers in RMB and receive revenues in RMB;

• Capability to convert RMB profits to US dollars for remittance to the parent company outside China;

• Protection of intellectual know-how and technology.

• Due to the WOFE form, the business has a life expectancy of 30 years maximum that can be renewed.

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