ThanuluxBrand ICON

By Doan Quynh Trang ID: 483 9038

VisionThanulux will be the leader of

fashion industry in Thailand and The region

MissionTo satisfy customer with excellent

qualities and highly impressive service

To satisfy shareholders with a strong intention to increase wealth for the shareholders

To satisfy employees with learning opportunities ,personal development professional stability and well remuneration

ObjectivesUpstream JV to Thai Shikibo Co.,

Ltd., Thai Staflex Co., Ltd., Thai Gunse Co., Ltd., SSDC (Tigertex) Co., Ltd. and Thai Nakamura Label Co., Ltd., among others.

Outsource supply JV include S. Apparel Co., Ltd., Thai Monster Co., Ltd., Thai Takaya Co., Ltd., Total Way Image Co., Ltd.

There are a number of downstream joint ventures as well to achieve the status of an integrated industry.

Expansion of production base with factories in different regions for development, with decentralized structure1989 Establishment of a leather

goods factory in Saha Group Industrial Park, Sriracha, Chonburi. The site also serves as offices for Thanulux joint ventures.

1993 Establishment of a leather goods factory and a garment factory in Saha Group Industrial Park, Lamphun and Prachinburi. Investment promotion was awarded by the Board of Investment.

Move to the global stageISO 9001:1994 by BVQI in 1999. To cover branches and affiliates in

2000. ISO 9001:2000 in 2002. The shirt production department

and relevant units of the company were SA 8000 certified by SGS (Thailand) Co., Ltd. on the 21st of January 2002.

Objectives for ICONTo gain 30% market share in five

years from now

StrengthsStrong production lines, TQM is recognizedProvide production to many Worldly well known

brands Guy Laroche, La femme, Cadeau, BSC, Elle

Manufacturers’ brands is locally well known such as ICON, La femme, Mix self

Product quality is good among local brands and all Chinese imported products

Experience in providing source for international brands

Show good social responsibilityR&D is advancing with new materials such as

tanac air flow and cottazilk wrinkle free expressStrong business network with strategic partnersListed in SET means easy to get financial

supportCan have competitive pricing strategy if needed International Geographical coverage in

productions IS: ERP, Data warehouse, OLAP, are ready

WeaknessesManufacturing brands are not

well known among international brands even the quality is equal

Manufacturing brands market share is minimal

Marketing strategy Push through distribution channel

OpportunitiesAccess to international market

through support of international brands normally in the ASEAN regions

FTAs with JapanWTO help access to new marketYellow T-shirt has constant market

and huge consumption in ThailandEverlasting need of yellow T-shirtWhat consumers want are not

many available (international brands)

Demand is huge

ThreatsAppreciation of Thai baht Less confidence in consumers’

spendingPolitical unrestProduction cost rise due to

energy priceHigh labor cost comparing to

China, Pakistan, Vietnam

Competition among rivalries Harsh competition is normal in FMCG International brands more attractive to the rich Local brands are more attractive to low level

incomeThreat of new entrance is high

Unknown producers, unknown brands of yellow T-shirt

Barrier is low except the Royal LOGO registered.Substitute products are not many

Blue T-shirt, Yellow shirt, Yellow tieBargaining power of suppliers is low

Low, Thanulux has strong power over suppliers as it consumes huge amount of textile, cotton, silk

Bargaining power of consumers is not high People all pay respect to the king They have to wear Yellow, but this year would be

Pink Consumers are huge T-shirts should be replaced once a year or two.

DemographicsThais and working foreigners Age 22-55 pink T-shirt is targetUnisexMarried, unmarried, single,

divorced, widowIncome – 20,000bt/monthEducation – Diploma or higherWhite collar workers

PsychographicsActivities

Attends most royal eventsEnjoy farming, tourist

InterestsPhotographingRoyal souvenir collecting

OpinionsRespect royal familyBuddhism is ideal

Values and lifestylesHigh resource

Thinkers, experiencersLow resource

Believers

TraitsWatch TV on Thai news once or

twice a weekOwn cameraSocial reponsiveness

66Mil populationAim at 10% of populationSales expectation 2%Sales outside Bkk 100,000

UnitsBkk 10 Mil

Aim at 2 Mil out of 10 MilSales expectation at 10%Sales within Bkk 200,ooo Units

Quality consciousness customersBetter than local productsHigh profile producers with ISO

Durability productsColor

Best cost over quality and image. Good price at high qualityRelatively lower price than

international brand with same quality

Higher price than local products

New ICON maintain all designColor changed to PinkDurability colorHigh quality material

Same Design

New ColorPrice at

Bt1000Increased

Bt50Below JNDNot lose the

recent buyers

Same Design

New ColorPrice at

Bt1150Drop Bt300Over JNDAttract

more high end users

Same Design

New ColorPrice at

Bt1050Same priceAttract

young people

Bangkok and main cities in ThailandBangkok mega polis where a lot of office

buildings governmental offices are located

UniversitiesOld BangkokUse corporate distribution channels

It’s range is large, strongAggressive sale

Supermarket/ SupermallTesco Lotus, 3 product lines availableCarrefour, 2 product lines availableRobinson, 3 available

RetailerRetailers outlet around BKKAim at squares, East BKK, Grand PalaceOffice buildingsGovernmental Offices

TV – Mass consumersHigh cost and less effective than other toolsUsed in relation with PR rather than

CommercialsPR and Publicity – show social

responsivenessSponsorship or producers of TV program

about royal family, Sponsorship of TV news Fashion shows – event happen before

national holidaysRadio - Suburban areas and other cities

Time is applicable to be commensurate with audience

Catalogues and BrochuresMade available in Retails

Magazines – young workersOn fashion Magazines

Internet Update the website for the pink T-shirt

`Feb Mar Apr May Jun Jul

PR, PublicityRadioCatalogueMagazineInternet

1 month

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Sales promotion

Expected unit sales: 300,000Average price: 1000 Baht/ unitAverage VC per unit: 150 BahtSales and Administration V/C 200

BahtAverage Price =1,050.7Additional fixed cost 750,000 BahtPR production cost 10,500,000 BahtPR release cost 50,000,000 BtMagazine Production Cost 1,500,000

BtMagazine Ad 15,000,000Catalogue Cost 2,000,000 BtInternet cost: 1,000 Baht

High end Low end Young Total sales March 2628 3942 3154 10,275,480 April 3416 5125 4100 13,358,124 May 4441 6662 5330 17,365,561 June 4885 8661 6928 21,553,726 July 5374 10826 8314 25,735,673 August 5911 12125 9146 28,525,755 September 6503 13337 10060 31,378,330 October 6828 14004 10563 32,947,246 November 6691 13724 10352 32,288,302 December 6357 13038 9834 30,673,886 January 6039 12386 9343 29,140,192 February 5737 11767 8875 27,683,183 Total 64809 125596 95998 300,925,458

As expected scenario

As unexpected scenario

Total sales 300,000,000 Less variable cost Production Variable cost 42,960,607 Sales Variable cost 57,280,800 Total Variable costs 100,241,407 Contribution margin 199,758,593 Less additional Fixed cost Production fixed cost 750,000 Advertising cost 79,001,000 Total Additional Fixed cost 79,751,000 Contribution margin to Thanulux 120,007,593

Total sales 150,000,000 Less variable cost Production Variable cost 21,480,304 Sales Variable cost 28,640,400 Total Variable costs 50,120,704 Contribution margin 99,879,297 Less additional Fixed cost Production fixed cost 750,000 Advertising cost 79,001,000 Total Additional Fixed cost 79,751,000 Contribution margin to Thanulux 20,128,297

750,000

1,071

1,125,300

Cost

Sales

Contributio

n

margin

$

Units

B/E in Unit=750,0001,050.7 - 350

B/E in $= 1,050.7 x 1,071= 1,125,300

=1,071

79,751,000

113,817

119,587,522Cost

Sales

Contributio

n

margin

$

Units

B/E in Unit=79,751,0001,050.7 - 350

B/E in $= 1,050.7 x 113,817= 119,587,522

=113,817

Pr and Publicity Radio Catalogue Magazine Internet Sales Admin Sales promotion Production V/C Total Feb 2,100,000 350,000 5,000,000 1,000 1,532,551 1,458,600 10,442,151 Mar 350,000 1,992,285 1,896,150 4,238,435 Apr 2,100,000 350,000 5,000,000 2,589,923 2,464,950 12,504,873 May 320,000 3,226,805 3,071,100 6,617,905 Jun 10,000,000 320,000 2,500,000 3,863,529 3,677,100 20,360,629 Jul 310,000 4,284,019 4,077,300 8,671,319 Aug 10,000,000 2,500,000 4,712,390 7,853,983 4,485,000 29,551,372 Sep 4,948,009 8,246,682 4,709,250 17,903,941 Oct 4,849,033 8,081,722 4,615,050 17,545,805 Nov 4,606,637 7,677,728 4,384,350 16,668,714 Dec 4,376,376 7,293,959 4,165,200 15,835,535 Jan 4,157,462 6,929,104 3,956,850 15,043,416 Total 24,200,000 - 2,000,000 15,000,000 1,000 45,139,018 46,083,177 42,960,900 175,384,094

Total Cost Sales 10,442,151 10,275,480 4,238,435 13,358,124 12,504,873 17,365,561 6,617,905 21,553,726 20,360,629 25,735,673 8,671,319 28,525,755 29,551,372 31,378,330 17,903,941 32,947,246 17,545,805 32,288,302 16,668,714 30,673,886 15,835,535 29,140,192 15,043,416 27,683,183 175,384,094 300,925,458