Issue on International Business presentationTeam member:Nguyen Ngoc Uyen Chi (CT0277811)Do Manh Ha (CT0280964)IntroductionLlao llao into Ho Chi Minh City which is the capital of Vietnam! Isn’t it awesome? So today we are going to bring Llao llao into Vietnam. Llao Llao is a frozen yogurt company from province of Alicante, Spain which is founded in year 2009 by Pedro Espinosa. The word “Llao llao” is actually pronounced as “yao yao” in Spanish. As I’ve mentioned just now, Llao llao is just founded in year 2009 which is just few years before but after approximately three years there already has more than 100shops all over the world and outlets in 13countries and still expanding. This shows how popular and well-known Llao llao is. So what’s the product of Llao llao selling? It’s actually natural frozen yogurt made from skimmed milk and combined with variety choice of fresh fruits, toppings and sauces. Next, the signature offering of Llao Llao is called “Sanum”, Sanum is essentially a yogurt parfait with fresh fruits of choice, granola or crushed biscuits drizzled with sauce, it’s more on yogurt than those toppings so that you can actually tasted the creamy and smoothly texture of the yogurt. Next , these are the few awards that earned by Llao Llao are One of 12 best business concepts of the year by the Sandwich & Snack Show Academy , Startex award jointly awarded by the Spanish Institute for Foreign Trade and The Best Newcomer award by the Actualidad Económica magazine. So about the target marketing, family, teenagers and upper middle class are our targets. Llao llao yogurt is actually a low fat yogurt so it’s very healthy and suitable for all ages. Next as you all can see in Singapore, this yogurt must be popping up on your feed twice a day shows how popular it is among the teenagers.
Challenges CompetitorsThere are many competitors that llaollao can face in Vietnam. Some popular yogurt shops have the same business as llaollao in Vietnam such as IY, Rainbow and Yogurt space. To be able to compete healthily requires managers to have clear plans. And in particular, it is also the first steps to success in a new market. Government & License Llaollao is a big brand from Spain. They now own large retail stores in 13 countries. If they want to expand their business in Vietnam, they have to get support from the Vietnamese government. But first, they need a license from the government to operate in Vietnam. Llaollao may waste a lot of time waiting for a permit because of complex and time-consuming legal procedures. To be able to keep pace with the completion time, managers must have good plans, for example to demonstrate Llaollaos good side to attract investors, and that will increase trust and Speeding up the licensing process for Llaollao ice cream.2.3 Ingredients They should choose fresh ingredients and choose the best supplier, loyal because there are many bad or contaminated fruits sold in Vietnam. If they do not carefully check the source of the material, it can harm their customers. Managers must optimize the quality control of fruits and goods when imported for production. This will help protect and increase the number of customers.RecommendationSo for the recommendations to overcome the challenges are competitors, government and licenses and ingredients. So firstly for competitors, Llao llao can actually overcome this problem by doing some promotions to beat their competitors on the price sectors , they can also set up their outlet at somewhere that more people are passing by or around the city area as their competitors which are Yogurt Space and Yogurt Rainbow both of their outlets are quite outskirt . So through this method, Llao llao can easily attract the interest from the consumers. Next for the government and licenses, Llao llao can make an agreement with the Vietnam government that they will hire the local Vietnamese as their workers this can bring a lot of job opportunities to the local yet can increase the economics of the nation. Lastly, there are a lot of polluted and spoilt food selling everywhere at Vietnam which It may harm the health of their consumers,  the solution to this is that Llao llao can choose to get their fruits supply from faithful and good reputation farmer in Vietnam and they can also try to plant the fruits themselves so through this it can save a lot of cost and the freshness and quality of the ingredients are guaranteed as well.        4. DistributorshipWholesalers have the right to sell and sell products of a manufacturer or supplier, usually in the designated territory. Distribution law related to the supply chain exists in certain business arrangements. When a manufacturer supplies goods to distributors and distributors to retailers, a supply channel will be created. In some cases, multiple distributors are involved, creating multiple levels, all governed by distribution law, as well as a written distribution agreement.Distributors are considered as independent agents. This means that the distributor has authorized the sale of the product in accordance with the contract, but may not use the trade name as part of the business. The distribution agreement may also specify that the distributor is responsible for selling the proprietary vendors products, meaning that it can not sell similar products from another vendor. Large distributors are often referred to as “wholesalers”. Llaollao is an affordable and versatile business model, suitable for any town and climate. Ice cream is a refreshing drink in summer, so we will distribute it to places like water parks, large supermarkets and densely populated areas of the city. Last but not least, llaollao works by standardized yogurt production and because it makes all its products direct, guaranteeing maximum quality and optimal logistics. Since ice cream is a hot and fast food product on the market today, if we distribute more and more investment in this area, our Llaollao products will grow and collect more profit for the general.
Llao llao is a frozen yogurt company from Alicante, Spain, founded in 2009 by Pedro Espinosa. The brand has gained popularity worldwide, with over 100 shops in 13 countries. Llao llao offers natural frozen yogurt made from skimmed milk, combined with a variety of fresh fruits, toppings, and sauces. Its signature offering, the "Sanum," is a yogurt parfait with fresh fruits, granola or crushed biscuits, and sauce. Llao llao has received recognition for its business concept, including being named one of the 12 best business concepts of the year by the Sandwich & Snack Show Academy.
Llao llao targets families, teenagers, and the upper middle class. The yogurt is low in fat, making it a healthy option suitable for all ages. The brand has gained popularity among teenagers, as evidenced by its frequent appearance on social media feeds in Singapore.
Llao llao faces competition from other yogurt shops in Vietnam, such as IY, Rainbow, and Yogurt Space. To compete effectively, managers need clear plans and strategies. In particular, entering a new market requires obtaining a license from the Vietnamese government. This process can be complex and time-consuming, potentially delaying the expansion of Llao llao’s business in Vietnam. Additionally, ensuring the quality and freshness of ingredients is crucial, as there are concerns about contaminated or spoiled fruits sold in Vietnam.
To overcome these challenges, Llao llao can consider several strategies. Firstly, they can beat competitors on price by offering promotions and setting up outlets in high-traffic areas. Collaborating with the Vietnamese government and hiring local workers can help build trust and expedite the licensing process. To ensure the quality of ingredients, Llao llao can source from reputable farmers or even consider growing fruits themselves, saving costs and guaranteeing freshness.
Distributors play a crucial role in the supply chain. They have the right to sell a manufacturer’s products within a designated territory. Distributors are considered independent agents and may be restricted from selling similar products from other vendors. Llao llao can leverage distributors, particularly wholesalers, to expand its reach. Distributing products to places like water parks, large supermarkets, and densely populated areas can help increase sales and profitability.
Llao llao’s entry into the Vietnamese market presents both opportunities and challenges. By implementing effective strategies to overcome competition, navigate government regulations, ensure ingredient quality, and leverage distributorship, Llao llao can establish a strong presence and succeed in Vietnam’s frozen yogurt market.
Distributors play a crucial role in the supply chain as they act as intermediaries between manufacturers and end consumers. They have the right to sell a manufacturer’s products within a designated territory, which allows them to reach a wider customer base. Distributors are typically considered independent agents and may have exclusive agreements with manufacturers, restricting them from selling similar products from other vendors. This exclusivity helps manufacturers maintain control over their brand image and market presence.
In the case of Llao llao, leveraging distributors, particularly wholesalers, can greatly enhance its reach in the Vietnamese market. By partnering with wholesalers, Llao llao can tap into their established distribution networks and gain access to various channels such as water parks, large supermarkets, and densely populated areas. This can significantly increase the visibility and availability of Llao llao’s frozen yogurt products, leading to higher sales and profitability.
However, entering the Vietnamese market also presents both opportunities and challenges for Llao llao. One of the key opportunities lies in the growing demand for frozen yogurt in Vietnam. As the country’s economy continues to grow, consumer preferences are shifting towards healthier food options, making frozen yogurt an attractive choice. By capitalizing on this trend, Llao llao can establish itself as a leading player in the Vietnamese frozen yogurt market.
Nevertheless, there are challenges that Llao llao needs to address in order to succeed in Vietnam. Competition is one such challenge, as the market is already populated with established local and international frozen yogurt brands. Llao llao must implement effective strategies to differentiate itself from competitors and create a unique value proposition that resonates with Vietnamese consumers.
Additionally, navigating government regulations is crucial for Llao llao’s success in Vietnam. Understanding and complying with local regulations related to food safety, labeling, and import/export can ensure that Llao llao operates within the legal framework and maintains the trust of its customers.
Ensuring ingredient quality is another important factor for Llao llao in Vietnam. Vietnamese consumers are increasingly conscious about the quality and origin of the products they consume. By sourcing high-quality ingredients and ensuring their traceability, Llao llao can build trust and credibility with its target market.
Overall, by effectively addressing competition, navigating government regulations, ensuring ingredient quality, and leveraging distributorship, Llao llao can establish a strong presence and succeed in Vietnam’s frozen yogurt market. With careful planning and execution, Llao llao can tap into the growing demand for frozen yogurt and position itself as a trusted and preferred brand among Vietnamese consumers.