Issue on International Business Management

Issue on International Business presentation

Team member:

Nguyen Ngoc Uyen Chi (CT0277811)

Do Manh Ha (CT0280964)

1. Introduction

Llao 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.

1.  Challenges

1. Competitors

There 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.

1. 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 Llaollao's 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.

1. Recommendation

So 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. Distributorship
Wholesalers 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 vendor's 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.