Aubry’s Koi Fish Farm

1. Aubry’s Koi Fish Farm By Michael Aubry

2. Business Overview • Aubry’s Koi Fish Farm is a high quality reseller and purveyor of premium Koi and other exotic fish. • Aubry’s currently operates out of Orange County, California and is looking to expand into China and Vietnam • With a unique business model that incorporates a strong business acumen, the owners of Aubry’ Koi Fish Farm believe that China and Vietnam will present a viable business opportunity

3. Objectives • With expansion outside of the United States, Aubry’s Koi Fish Farm believes that it will need to solidify its’ strategic decision making by doing the following: • Increase sales from $35,000,000 to $70,000,000 within the first year of operations • Develop 15 sustainable relationships with possible distributors in each of the host countries • Increase profit margins by 15% over the next two years using various cost reductions and premium pricing models

4. Mission Statement • “Aubry’s Koi Fish Farm will be the premier provider of koi fish in the Chinese and Vietnamese regions. Aubry’s Koi Fish Farm will do this by continuing to provide service and quality that contributes to the community and adheres to the highest standards of excellence”.

5. Products Aubry’s Koi Fish Farm will be exporting the following types of Koi: -Kohaku -Taisho Sanke (known as Sanke) -Showa -Utsurimono -Asagi -Shusui -Koromo -Kawarimono -Hikarimono -Hikari - Utsurimono -Hikarimoyo - Mono -Tancho -Kinginrin

6. Services • Aubry’s Koi Fish Farm currently provides the following services: • Breeding • Distribution • Koi Health Care • Consumer Education

7. Guidelines for Success • For the Customer: - Individualized service for individual needs - Accurate orders that are delivered and timely and efficient manner - Creating an experience that customers will reflect upon, as they yearn for high quality, cleanliness, and service that they will surely remember

8. Guidelines for Success • For the Community and Environment: - Using products that are environmentally sensitive - Convenience, portability, and ease of product availability - Superior standards of product selection, refinement, and distribution - A high quality product, that is inexpensive, and highly attainable

9. Guidelines for Success • For the Associates: - Understanding and embracing diversity within the organization - Ensuring opportunities for upward mobility - Furthering employee growth by offering continuous training. - Creating a positive environment, where the employees can gain the trust of management, and receive continuous feedback from customers

10. Why Shanghai? • Significant growth – according to the United States Department of Agriculture the GDP increased over 19.4% in 2004 • The citizens of Shanghai have a disposable income that is higher than 90% of all other Chinese citizens • The average income has increased from 2,000 rmb ($265) in 1990 to 17,000 rmb ($2,260) in 2004 • They are brand conscious consumers – seeking a mixture of equitably priced, high quality products.

11. Chinese Culture • According to Geert Hofstede the Chinese have been found to exhibit the following characteristics: • High Long-Term Orientation • Low Individualism • High Power Distance • High Context

12. Why Ho Chi Minh City? • Economic Growth - “TNS market researchers found that annual per capita gross domestic product in Ho Chi Minh City households was about $2,400, three times the official nationwide figure of $720 for this year”. • FDI and Job Growth – Foreign Direct Investment has nearly doubled in the last four years – it is believed that this will add thousands of jobs to the local region • Privatization – This will lead to domestic migration that will increase the consumer population

13. Vietnamese Culture • According to Geert Hofstede the Vietnamese have been found to exhibit the following characteristics: • High Power Distance • High Collectivism • Moderate Uncertainty Avoidance • High Context

14. Domestic Competition • Quality Koi – www.qualitykoi.com - this competitor is comparable to Aubry’s Koi Fish Farm. Their main focus is to “breed high quality American koi”. - Their target market consists of wholesalers and retailers. Wholesalers account for more than 90% of their sales. - Their current strategy involves a low high cost high quality approach - They will ship their products anywhere in the world – they currently have an “airport to airport policy”

15. Domestic Competition • Price’s Fish Farm, Inc. - http://www.pricesfishfarm.com/ - They believe in a “fair business deal” approach – this consists of a philosophy that emphasizes the health of the fish, and educating the consumer. - They are also an international provider, guaranteeing live delivery of the fish.

16. International Competition • Shanghai Wanjin Beauty Fish Farm – http://www.fancy-goldfish.com/ - This is currently the largest fish farm in Eastern China –with over 1.8 million square feet of dedicated aquaculture – they currently export their products to international regions including Europe and the United States • Kodama Koi Farm – http://www.kodamakoifarm.com/ - Another high quality Koi provider. They have been exporting Koi to the United States since 2001. They also offer worldwide service and delivery

17. Competitors Strategies • The strategies of the competition are quite similar – they are all using the following tactics to bolster their business opportunities: • Exporting • Breeding • Customization • Creating a unique environment

18. Differentiated Strategies • Aubry’s Koi Fish Farm will enter the Chinese and Vietnamese markets using each of the following strategies: • Exporting • Licensing • Joint Ventures • Franchising • Distributor Partnership • Aubry’s will not explore foreign direct investment until initial strategic operations have proved to be profitable • Diversification will equal success

19. Product Delivery Procedures • Aubry’s Koi Fish Farms will form a distributor partnership with UPS – this will give Aubry’s a significant competitive advantage. Further benefits include: • Reduction in transportation costs • Reduced brokerage fees • “Streamlined and accelerated supply chain” • Improved delivery times – this will improve customer satisfaction • Future growth and expansion opportunities

20. Core Competencies • Products • Customized Koi at No Additional Cost • Distribution • Customer Service • Location • Price • Website

21. Growth • As demand and growth increase it is important for the organization develop a bi-annual needs assessment so that management can determine whether or not the current strategic outline is feasible

22. Marketing Strategy • Product - Differentiated • Price - Aubry’s will follow a low price high quality strategy that will attract the attention of local consumers - Aubry’s will offer bulk and early payment discounts

23. Marketing Strategy • Promotion - Local Radio - Billboards - Local Newspapers - Community Outreach • Place - Aubry’s will be the only known Koi provider in Ho Chi Minh City and Shanghai

24. Sales Strategy • Educate the customer • Enhance the visual appeal of the product • Promote Special Occasions • Public Relations • Coupons • Membership at Civic Organizations • Health Perception

25. Start-Up Requirements

26. Financial Expectations

27. Conclusions and Recommendations • Exporting koi to Shanghai and Ho Chi Minh City is a viable business opportunity • To be successful Aubry’s Koi Fish Farm must penetrate the market before any major competitor, so that it can increase brand recognition, customer loyalty, and its’ consumer base.

28. Questions?