I.

Introduction

II.

Profile of Business
II.1.

History & VMGOs

BoA Donut are established in 2010. The two first stores located in Ho Chi Minh and
Hanoi under the name DOCO. After that, it come to Danang and change the name into BoA.
The store in Danang was located in Nguyen Chi Thanh. In 2013, it moved to Bach Dang St. At
present, there are two stores located in Danang, at Bach Dang and Nui Thanh St. The owner
names Bui Van Minh. Until now, main customers of BoA include teenagers, those who love
sweet stuffs and look to have western style meal and coffee.
By the time of establishment, BoA has become the first and leading premium donuts and
coffee brand of Vietnam. In 2020, BoA wants to expand their brand and products in Asian,
compete in the international donut industry.
To maintain their position in confectionary industry of Vietnam, BoA create more than 36
variety of donut and many kind of beverages. They also confirm that all the material will be
export to ensure the product quality and update constantly the new products to diversify their
core competences.
Differentiation
Competitors
II.2.

SWOT

Strengths
Convenience fast food choice

Weaknesses
Weak competition with other substitutes

Friendly service staff

such as panna cotta, tiramisu, cupcake,

High quality with 36 types of doughnuts

Freshly baked
Interest promotion (buy 3 get 1, etc.)
Easy to find location.
Long experienced (from 2010)
Opportunities
Western culture import

choux, etc.
Constant rift with the land-owners.
Donuts are too sweet
Low market adaption.
Threats
Augmentation of obesity and diabetes as well as

Online, mobile business and marketing by the other diseases related to the sugar.

social media

People are tending to healthier ways of eating.

Selling through others company or Donut Competition from many local cafes and Bakeries.
distribution party

Not a daily consumption.

Increase its presence in neighbor countries Increase of petrol cost and depreciate the local
like Cambodia, Lao, Philipine, etc.
II.3.

currency.

III.

Competitor analysis
In Danang city, Molly is the typical coffee shop which is competing with BoA. It is

chosen to compare the KPIs in following table.

Molly Ham Nghi BoA- Bach Dang St
St
Marketing and Sales
Daily number of shipping time (Per day)
Daily number of customers (Per day)
Daily number of new customers (Per week)
Satisfaction rate on Facebook
Monthly revenue (VND)
Human resources
Number of training (times/year)
Number of individual mistake (times/ week)
Number of employee leave (per month)
Number of employee working
Number of employee late

5-7
80 - 130
7-12
3.6/5
50 Mil

5-10
15
10-20
4.1/5
23 millions

15-18
5
2
11

9 - 11
3
2
8
2times/month/perso

1 time/ week/person

Finance
Cost pay for raw material (Per Month)
21 Mil
3,5 millions
Cost pay for office Charges (Per Month)
3 mil
1 millions
Cost pay for Advertising (Per Month)
1,5 mil
1 millions
Cost pay for Logictics (Per month)
2,5mil
1 millions
Salary for employees per employee (VND)
1,7- 2 million
1,5 millions/person
Operation
Customer complants (times/week)
7
4
Number of product returns (product/week)
4
10
Number of on-time deliveries (per day)
None
25
Percentage of wasting food and beverage
8%
10%
Response times for ordering(Per 1 time)
2-3 min
3-5 mins
Table 3.1: Comparison of KPIs between Molly Coffee and BoA Coffee & Donuts. (Authors
observation, 2015)
1. Marketing and Sales
As per shown in previous table, firstly, Molly has lower shipping times per day than BoA
because of the characteristics of products. While Molly focus essentially on drink and food as
spaghetti, sandwich, tiramisu, etc. the characteristic of BoAs main product Donut is

convenience and customer then want to take it away. However, with the donuts price quite high,
shipping can cause the financial problem because of shipping cost.
Secondly, in daily number of customers, Mollys customer number is obvious higher than
BoAs. The reason is that Mollys product, especially drinks and cake, are cheaper. These are
more supported by the low and average income people in Danang more than BoA where the
products price is quite high. It can be understood that BoA is located in Bach Dang St. It will
cost a lot of money of BoA to rent. Moreover, the raw materials for baking is export to ensure the
Donut quality. Thus, it results in higher revenue of Molly than BoA with 50 and 23 million VND
per month respectively.
In spite of this, BoA has 10-20 new customers per week, higher than Molly with 7-12
people per week thanks to its location where tourists always pass. In addition, BoA attract new
customers include the foreign people by its western style food Donuts.
Rate on Facebook are quite ambiguous but it still identify how satisfied of Customers are.
Donut get higher rate than Molly. Customers often appreciate the view from BoA (they can see
the Han riverside) and airy atmosphere. Additionally, 60% people surveyed said that the drinks
taste of BoA is better than Molly. (face to face survey, 2015)
2. Human resources
Molly at Ham Nghi St belongs to the coffee shop chain of Group directed by three
people: 1 Vietnamese and 2 Japaneses. In fact, Molly always attract special importance in
training. Molly recruit employees at least three times per month. Then, they often open the
training course in weekend not only for new but also old staffs, not including the training course
in working time. For BoA, because of smaller scale, training courses is simpler. It is essentially
for new staffs.
It can be seen that number mistakes in Molly are higher. In Molly, customers have to
queue up in front of cashier to order. Mistakes can be made in case of the fact that a lot of
customers are waiting for just only one cashier. Moreover, if any problem, customer have to
come to cashier and order again. For BoA, each waiter/waitress will take responsible for each
area in shop. They have to hold clearly what their customers order and serve exactly and
immediately. It is more effective because one staff serve a few customers.

However, the number of customer in Molly is also higher. Based on observation, there are
5-6 staffs will work for barista and cooking in Molly. The rest will be cleaner and vehicle
keepers. In BoA, there are two bakers, one cashier and 5 waiters.
3. Finance
4.

IV.

Blue ocean strategy application

1. Strategy Canvas

Industry Strategy Canvas

BoA
Molly
Highland

Scoring

Current Value Curve of BoA

10
8
6
Scoring

4
2
0

Factors of Competition

2. ERRC Framework

Industry Strategy Canvas suggestion

10
8
6
Scoring

BoA

Molly

Highland

2
0

Factors of Competition

Value Innovation Curve of BoA

10
8
6
Scoring

4
2
0

Factors of Competition
3. Value-Innovation
4. Market space

I.

Ansoff Matrix

APPENDICE