BUSINESS MODEL INNOVATION

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MADUFA – Herbal Tea Protecting enviroment Preseving health

MADUFA – Herbal Tea is a project focuses on growing medicinal herbs under the forest canopy, and turning them into health support products using traditional methods that are simple and easy to use in the form of herbal tea. Currently, the project has implemented a 06-hectare planting area of medicinal herbs in the mountainous district of Tan Lac, Hoa Binh province – Northwest of Vietnam under the forest canopy, which directly contributed to keeping the greeness of the local ecosystem, and has developed 05 medicinal products.
Hence, Madufa Herbal Tea is a for-the-people project contributing to both Environmental Conservation and Regional Health Protection conceived from a health-related story of project founder Mrs.Duong Thi Thang
Long time ago My father-in-law passed away from stomach cancer, and my mother, due to taking blood pressure medication and diabetes, often suffered from gastric reflux symptoms that affected her quality of life. Therefore, I researched traditional medicine methods to find ways to limit the harmful effects of gastric reflux disease.
Fortunately, 10 years ago, I happened to learn about Khoi Nhung, which used to be very popular in the Northern provinces but had almost disappeared as a result of excessive exploited of the plant for its rare specialities. I researched and aspired to restoring the natural habitat of Khoi Nhung tree and other medicinal tree while at the same time make use of its ability to treat stomach and intestinal diseases.

In 2022, the project was officially launch with 1.2 thousand purple velvet cay la khoi trees planted in Phong Phu Commune, Tan Lac District, Hoa Binh
After 2 years, the purple velvet cay la khoi has grown their leaves, the locals collect them and our cooperative processes them into tea. Currently, the product has been introduced at domestic and foreign fairs and is well received by customers with purchase rate reaching 70%.
A2
The reflux-relief la khoi tea is a formula inherited from traditional folk medicine and further enhanced via researches by Mrs.Thang to suit the medicinal properties of the ingredients at the present time with 06 different types of medicinal herbs. In which, the main ingredient is the purple velvet cay la khoi grown naturally under the forest canopy, selected from several other native varieties. The product is processed into tea without using chemicals and preservatives, ensuring its safetiness upon usage, with no side effects. La khoi tea has 3 main uses: Neutralizes acidic gastric juice, inhibits HP bacteria from growing and heals ulcers in the esophageal area, thus helping customers reduce symptoms and discomfort such as belching, heartburn, bloating, abdominal distention, epigastric burning pain after only 3 days of using the product.
How to use the product is very simple, following the traditional style commonly used by Asians. Take a conveniently packed tea bag, pour boiling water, wait a bit for the scent to infuse and you can use it immediately.
B1
Understanding the discomfort, inconvenience and pain of people with gastric reflux symptoms, Madufa – Herbal Tea focuses on this customer segment with solutions to help them reduce and gradually eliminate the unpleasant symptoms affecting quality of life. Unlike other competitors, Madufa herbal tea use absolutely no preservatives and chemicals in its production. As a result, our tea has no side effects and is safe for almost any users. Not only that, preserving and developing the habitat under the forest canopy helps create jobs for hundreds of people in mountainous ethnic minority areas, including many women and the elderly, green the mountains and hills, and prevent deforestation. contributing to combating climate change through diversifying terrestrial organisms, preventing erosion and retaining moisture and nutrients in the soil. The process of processing raw materials, classifying and producing tea also helps another dozen of people have stable jobs. Madufa also built a distribution system and collaborators of up to thousands of people, mainly women – skillful and is aware of the health problem around them. To do that, Madufa herbal tea is supported by the government of Hoa Binh province, specifically the People’s Committee of Tan Lac district and other agencies such as the Cooperative Alliance of Hoa Binh province, especially ethnic minorities participating in actively growing medicinal plants – plants with high economic value but do not take much effort to care for like upland rice or fruit trees like oranges and grapefruits. Madufa has also committed to purchasing medicinal herbs beforehand in the form of contracts for farmers so that they can work with no unnecessary worries. With the humanity of growing medicinal plants to help people stay healthy, many organizations are interested in helping. Such as consulting units, medicinal institutes, and plant research institutes ready to help develop the growing process of medicinal plants, or provide scientific research on remedies and medicinal plants.
Because of the valuable properties of precious medicinal plants, La Khoi Tea in particular and other medicinal products of the project are widely communicated among the community of people with disease symptoms. Madufa is planning to build sales tools such as Website, company profile, product Brochure and landing pages to introduce products, attend fairs and advertise on e-commerce platforms to help more people know about Madufa.

Understanding the discomfort, inconvenience and pain of people with gastric reflux symptoms, Madufa – Herbal Tea focuses on this customer segment with solutions to help them reduce and gradually eliminate the unpleasant symptoms affecting quality of life. Unlike other competitors, Madufa herbal tea use absolutely no preservatives and chemicals in its production. As a result, our tea has no side effects and is safe for almost any users. Not only that, preserving and developing the habitat under the forest canopy helps create jobs for hundreds of people in mountainous ethnic minority areas, including many women and the elderly, green the mountains and hills, and prevent deforestation. contributing to combating climate change through diversifying terrestrial organisms, preventing erosion and retaining moisture and nutrients in the soil. The process of processing raw materials, classifying and producing tea also helps another dozen of people have stable jobs. Madufa also built a distribution system and collaborators of up to thousands of people, mainly women – skillful and is aware of the health problem around them. To do that, Madufa herbal tea is supported by the government of Hoa Binh province, specifically the People’s Committee of Tan Lac district and other agencies such as the Cooperative Alliance of Hoa Binh province, especially ethnic minorities participating in actively growing medicinal plants – plants with high economic value but do not take much effort to care for like upland rice or fruit trees like oranges and grapefruits. Madufa has also committed to purchasing medicinal herbs beforehand in the form of contracts for farmers so that they can work with no unnecessary worries. With the humanity of growing medicinal plants to help people stay healthy, many organizations are interested in helping. Such as consulting units, medicinal institutes, and plant research institutes ready to help develop the growing process of medicinal plants, or provide scientific research on remedies and medicinal plants.
Because of the valuable properties of precious medicinal plants, La Khoi Tea in particular and other medicinal products of the project are widely communicated among the community of people with disease symptoms. Madufa is planning to build sales tools such as Website, company profile, product Brochure and landing pages to introduce products, attend fairs and advertise on e-commerce platforms to help more people know about Madufa.

With a comprehensive business model from growing raw materials to selling processed products to customers, Madufa is completely proactive in organizing production and business, thus minimizing raw material costs while still ensuring quality control. Strict quality, best medicinal properties, From the most reasonable cost structure, Madufa has room for marketing and sales costs

The circular business model makes Madufa earn revenue from many sources: From processed products, revenue from raw medicinal herbs and revenue from tourism services to experience agricultural experiences combined with healing.

B2
According to medical documents, the cause of 80% of gastric indigestion is caused by nervous tension (stress), so the drugs on the market today mainly focus on solving the tip of the iceberg, that is, neutralizing acidic gastric juice. . But Madufa La Khoi tea, with the Tanin and Glucoside components of the plant, help stabilize stress and at the same time help cure the disease from the root, allowing customers to eat well and sleep well. With the costs of going to the hospital, doing tests, and then buying medication adding up to no less than 1 million VND, comparing to 06 boxes of tea costing only 900 thousands VND, our customer claimed to have less adverse symptoms and, in general a better life-style.
B3
According to medical documents, the cause of 80% of gastric indigestion is caused by nervous tension (stress), so the drugs on the market today mainly focus on solving the tip of the iceberg, that is, neutralizing acidic gastric juice. . But Madufa La Khoi tea, with the Tanin and Glucoside components of the plant, help stabilize stress and at the same time help cure the disease from the root, allowing customers to eat well and sleep well. With the costs of going to the hospital, doing tests, and then buying medication adding up to no less than 1 million VND, comparing to 06 boxes of tea costing only 900 thousands VND, our customer claimed to have less adverse symptoms and, in general a better life-style.
As of May 2024, the project has successfully planted on an area of 6 hectares, creating stable jobs for 10 medicinal plant growers and about 50 part-time growers.
With a sales campaign aiming for up to 1 million people, the number of collaborators needed is 100k people.
Targeted at housewives of underpaid households, the campainge include guiding them on how to market the product, how to reach to and support people with gastric reflux. And through such sharing activity, these women will receive commissions from sold products, helping them earn better income and become economically independent.
B4

Madufa has been growing medicinal plants since 2022. By early 2024, Madufa had produced 02 tea products and sold them on the market, which were well received by customers and created positive starting revenue. Madufa developed and preserved medicinal herb growing areas, creating jobs for more than 50 farmers in Tan Lac District growing medicinal herbs, and after only two years, products made from medicinal herbs were commercialized and helped many people balance their health. Revenue as of June 14, 2024 reached 300 million, accounting for 58% of the 2024 planned revenue, corresponding to 800 boxes of tea delivered to consumers. Madufa is currently the unit with the largest and highest La Phong tree conservation area in Vietnam with an area of 3 hectares in Phong Phu commune, Tan Lac district, Hoa Binh province. The project also signed a contract to expand the growing area and commitment to purchasing with 20 farmers her
B5
Thanks to the effectiveness of traditional medicinal plants as well as the absolute advantage of the formula combining modern analysis and traditional medicine, Madufa benefits from reasonable selling prices and cost mechanisms. Madufa has started earning income from the first year of sales and has actually achieved 60% of the plan. According to the financial analysis, Madufa will profit from the 3rd year of sales, NPV: 16,875 520, has a return rate of 14.85% and payback period of 04 years and 3 months.

B6
The process of organizing and operating Madufa from planting to sales Adhering to the principles of environmental protection, not using chemicals in growing medicinal herbs, not using preservatives in transportation and processing to get the best products to serve customers, helping thousands of customers have good health. All members of Madufa aim for equal treatment in income, no one is poor, equal and equal treatment is the culture at Madufa.

C1
In January 2024, MADUFA participated in a startup project supported by the Government. According to this project, the amount of money funded for MADUFA to train personnel to develop growing areas and invest in product testing and market development, building a sales toolkit is 400 million Vietnam Dong.
In March 2024, Tan Lac District People’s Committee also sponsored MADUFA for an OCOP certification exam consulting package worth hundreds of millions of dong.
Most recently, in June 2024, the Startup Incubation Innovation Center – Nguyen Tat Thanh University also supported the Mentoring package project worth 60 million VND
Donors realize that MADUFA not only creates value for the community but also has a high profit margin and the ability to grow.

There is a lot of support from the OCCOP startup, support and mentoring program; from Government to private enterprises. All of that prouved the value and reputation of our project

C2
Madufa is a business model that not only generates profits but also creates good social and environmental impacts towards the United Nations’ sustainable development goals. However, to maintain and develop, the prerequisite is economic efficiency. Good products serve customers at reasonable prices. Although it has a unique and effective formula, Madufa will constantly experiment to get the best price and product quality as well as constantly improving designs.

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