Suppose you are an American donut company that has decided to launch a donut bakery and café in Shanghai, China. The company grosses US$25 million per year from donut and café sales, US$5 million of which is attributed to its bakery-cafés in Australia and New Zealand. Create an executive summary to convince a Chinese venture capitalist to invest in this project.

Question

What will be an ideal response?

Answer 1

A sample executive summary could read: “Doughy Donuts” is destined to be a success in not only Shanghai but all major metropolitan areas of China. Our recent expansion and success in Australia and New Zealand makes entering the Chinese market much easier, since we already have our Asian distribution network established. Shanghai is a bustling international city with a large American population, which will be our primary target consumers at first. In addition, through affordable pricing and opening bakery-cafés in the financial district, we can attract Chinese customers as well as businesspeople of all nationalities that need a quick breakfast. The cafés will also include wireless Internet access as another convenience and benefit for our customers. Our product line will include all of the traditional glazed donut varieties and our bakers have developed a special rice flour donut that will appeal to Chinese consumers, since it is similar to a Chinese fried dough snack. While we expect to only break even in the first year of investment, the ROI should hold steady around 20% for the 3 years following. In addition, our marketing strategy will utilize the already popular “Doughy Donutman,” which has an almost cult-like following because of our viral marketing techniques. Through viral marketing tests already conducted in partnership with major Chinese Internet sites, we have begun to build the brand’s presence in China. As a sweet, delicious breakfast or snack item, we are positive that “Doughy Donuts” will be a success in Shanghai. The rest of this report details projected sales and costs, the marketing program, a detailed analysis of not only the Shanghai market for donuts but the Chinese market as well, and projections for ROI for investors.