Bonito Batik Group 26 Section 2

Preface

Nowadays batik business has not much company in Chiang Mai. Chiang Mai has

many tourist travel like a second city of Thailand. Bonito Batik will provide the high quality of

batik in the different style from Southern to serve to customer in Chiang Mai and traveler.

Then Bonito Batik is thought to establish the batik company in Chiang Mai. This

project made for the interesting investment business this book have content about the

characteristic of business, analysis the situation and plan the strategic, marketing plan, the

production and service plan and financial plan etc. In this project have many the appropriate

detail of batik business provide for the communication to the investors which help to decide

whether this business should be investment.

Bonito Batik Company

17 February 2011

Table of Contents Chapter 1 .............................................................................................................................. 5

Background ........................................................................................................................... 6

Objectives ............................................................................................................................. 8

Benefit of projects................................................................................................................. 8

Chapter 2 .......................................................................................................................... 9

Nature of Industry ........................................................................................................... 10

Papthalung. ................................................................................................................. 11

Situation of Industry ........................................................................................................ 11

Product/Service (in General) ........................................................................................... 14

Vision .............................................................................................................................. 15

Mission Statement .......................................................................................................... 15

Business Strategy ............................................................................................................ 16

Chapter 3 .................................................................................................................... 17

Market Analysis ........................................................................................................... 18

General Environment Analysis ..................................................................................... 18

Political analysis .......................................................................................................... 18

Economic analysis........................................................................................................ 19

Technology analysis ..................................................................................................... 20

Competition analysis ................................................................................................... 21

Competitor Analysis .................................................................................................... 21

Customer Analysis ....................................................................................................... 24

STP Analysis ................................................................................................................. 25

Market segmentation .................................................................................................. 25

Target market .............................................................................................................. 25

Positioning .................................................................................................................. 26

Marketing Mix Strategy ............................................................................................... 27

SWOT analysis ............................................................................................................. 27

Strength ...................................................................................................................... 27

Weakness .................................................................................................................... 27

Opportunity................................................................................................................. 28

Treat ........................................................................................................................... 28

Marketing Mix 4P ........................................................................................................ 28

The details of marketing mix........................................................................................ 29

Marketing Expenses: ................................................................................................... 40

Conclusion ................................................................................................................... 41

Chapter 1

Background

The word batik conjures thoughts of exotic, Oriental textiles, rich in color and

design. Bright batik cloth can be seen on almost any beach in the form of sarongs and

has been utilized to make shirts, ties, scarves and even shoes in the fashion industry.

Interior decoration may use batik tablecloths, curtains, placemats and even picture

frames. This versatile and durable textile is being applied to more areas everyday and

not only that, but the process of making batik is becoming a popular past time with

visitors. The origins of this intricate art form are largely unknown. Evidence of batik

work has been found all over the Middle East, India and Central Asia however, for a

long time it has been most prevalent in Java, Indonesia. When batik was introduced in

Java, it was mostly practiced as a hobby by ‘fine ladies’ and so the ability to make the

exquisite cloth was considered a sign of refinement. Initially batik cloth was used to

make costumes for aristocrats and royalty and sometimes, particular designs would

signify a person’s family, social status or origin. Ancient batik designs generally

showed intricate patterns rather than the elaborate scenes we see today. The method

involved waxing the cloth to make it dye resistant, then dyeing an un-waxed portion

in a chosen colour. The wax was then removed by plunging the fabric into boiling

water, where it would melt and separate from the fibres. The batik was then dried out

completely, before repeating the whole procedure for each colour. Nowadays the

process is much the same but a number of design tools have been invented to ease

production. A pola, allows stencils or patterns to be copied onto the fabric to be used

as a guide for wax application. Mass producers of batik use large copper blocks to

stamp hot wax designs onto the cloth. Alternatively, an artist may ‘chant’ a wax

outline by hand, and for this he will use a ‘cant’, a copper tipped hollow pen that

spills wax smoothly onto the cotton or silk. These two methods of making wax

outlines allow the dye to be painted on, just like painting on canvas. By painting the

dye onto the fabric, the artist is able to grade the colours, creating shades and shadows

necessary for more intricate and detailed designs. The batik will only need to be

boiled once to remove the wax, so the colourfast cloth retains maximum brightness.

The mass production of batik is cost effective and very popular however, hand

painting is still practiced in many parts of the world and there is an enthusiastic

market for this high quality textile. Some of the finest batik is made in Java where

traditionally they used deep indigo blues and browns to represent Hindu gods.

Nowadays Javanese artists are still heavily influenced by the Hindu religion using the

motifs of the garuda bird, lotus flower and the dragon Naga. Islamic influences are

depicted by more geometric and botanical designs. In the 17th Century when the

Dutch colonized Java, they sent samples of batik back to Europe where the technique

was applied to leather, ivory, paper and even metal, and with the introduction of

German dyes, the artists could choose from a new, diverse array of colours. Chinese

influenced batik is distinctive. The motifs include dragons, the phoenix, snakes, lions

and flowers. Chinese artists introduced bright pastel colours and employed the use of

beeswax rather than paraffin wax to improve the quality of the lines. In Africa, batik

was made using a paste consisting of cassava flour, rice and copper sulfate instead of

wax. What a well travelled craft! From its majestic beginnings in Java, the batik art

form spread throughout India, China, Malaysia and Europe and has gradually became

popular in today’s fashion and home decor industries. The largest producers of batik

are Indonesia, and Malaysia, who adorn batik as their national costume, however

Thailand’s industry is growing. In addition many 5-star hotels on the island are

incorporating batik art rooms into their hotel facilities. Many shops now sell batik

items depicting cartoon characters, abstract portraits and various other ethnic designs.

The most popular designs generally reflect our tropical climate with fish, dolphins,

palm trees and flowers being incorporated into lavish scenes which are colorful and

extremely eye-catching and serve as a perfect token of Thailand for your loved ones at

home.

From: http://www.travel-phuket.com

Objectives - For actuate the business to achieve high profits.

- For attract the potential of business in Thailand to Industry Leader.

- For added the high value and back to distribute the part of profits to local areas

that lead to sustainable tourism for create good image and to highest profits.

- For promote Thai’s business of Hospitality and Tourism Industry for to get

high market share.

- For upgrade the business in Thailand to high standard equal to International

level for highest interest investors and to get highest profit for Bonito Batik

business.

Benefit of projects - To have the highest profits from the lowest investment in efficiency and

effective way.

- To acceptably from business organizations cover to the public sector to know

about the benefits of business.

- To enhancing the knowledge in creative and organization apply to do the

project and even running.

Gantt chart

No. Task November December January February

1 Chapter 1 Introduction

2 Chapter 2 Industry Profile

3 Chapter 3 Market Feasibility Study

4 Chapter 4 Technical Feasibility Study

5 Chapter 5 Financial Analysis

6 Chapter 6 Risk Management

7 Chapter 7 Summary

8 Final Submit

Chapter 2

Nature of Industry The carving details of clothes wore by Prajnaparamita, 13th century East Java

statue. The intricate floral pattern similar to traditional Javanese batik.

Wax resist dyeing technique in fabric is an ancient art form. Discoveries show it

already existed in Egypt in the 4th century BCE, where it was used to wrap mummies;

linen was soaked in wax, and scratched using a sharp tool. In Asia, the technique was

practiced in China during theta dynasty (618-907 CE), and in India and Japan during

the Nara period (645-794 CE). In Africa it was originally practiced by the Yoruba

tribe in Nigeria, Soninke and Wolof in Senegal.

In Java, Indonesia, batik predates written records. G. P. Rouffaer argues that the

technique might have been introduced during the 6th or 7th century from India or Sri

Lanka. On the other hand, JLA. Brandes and F.A. Sutjipto (an Indonesian

archeologist) believe Indonesian batik is a native tradition, regions such

as Toraja, Flores, Halmahera, and Papua, which were not directly influenced by

Hinduism and have an old age tradition of batik making.

Rouffaer also reported that the gringsing pattern was already known by the 12th

century in Kediri, East Java. He concluded that such a delicate pattern could only be

created by means of the canting (also spelled tjanting or tjunting; pronounced tool. He

proposed that the canting was invented in Java around that time. The carving details

of clothes wore by Prajnaparamita, the statue of buddhist goddess of transcendental

wisdom from East Java circa 13th century CE. The clothes details shows intricate

floral pattern similar to today traditional Javanese batik. This suggested intricate batik

fabric pattern applied by canting already existed in 13th century Java or even earlier.

Batik was mentioned in the 17th century Malay Annals. The legend goes

when Laksamana Hang Nadim was ordered by Sultan Mahmud to sail to India to get

140 pieces of search cloth (batik) with 40 types of flowers depicted on each. Unable

to find any that fulfilled the requirements explained to him, he made up his own. On

his return unfortunately, his ship sank and he only managed to bring four pieces,

earning displeasure from the Sultan.

In Europe, the technique is described for the first time in the History of Java,

published in London in 1817 by Sir Thomas Stamford Raffles who had been a British

governor for the island. In 1873 the Dutch merchant Van Rijckevorsel gave the pieces

he collected during a trip to Indonesia to the ethnographic museum in Rotterdam.

Today Tropenmuseum houses the biggest collection of Indonesian batik in

the Netherlands. The Dutch were active in developing batik in the colonial era, they

introduced new innovations and prints. And it was indeed starting from the early 19th

century that the art of batik really grew finer and reached its golden period. Exposed

to the Exposition Universelle at Paris in 1900, the Indonesian batik impressed the

public and the artisans. After, the independence of Indonesia and the decline of the

Dutch textile industry, the Dutch batik production was lost. The

Gemeentemuseum, Den Haag contains artifacts from that era.

Due to globalization and industrialization, which introduced automated techniques,

new breeds of batik, known as batik cap and batik print emerged, and the traditional

batik, which incorporates the hand written wax-resist dyeing technique is known now

as batik tulis.

At the same time, according to the Museum of Cultural History of Oslo, Indonesian

immigrants to Malaysia brought the art with them. As late as the 1920s Javanese batik

makers introduced the use of wax and copper blocks on Malaysia's east coast. The

production of hand drawn batik in Malaysia is if recent date and is related to the

Javanese batik tulis. From: Doellah, H.Santosa. (2003). Batik : The Impact of Time and Environment, Solo : Danar Hadi.

In Thailand batik sarongs are also designed as wraps for casual beachwear. In

the southern Thai island of Koh Samui, batik is easily found in the form of resort

uniforms, or decorations at many places, and is also used for the locals' casual wear in

the forms of sarongs or shirts and blouses. It is the most common, or even symbolic

product for those visiting Koh Samui Island. The Batik of Samui mostly shows the

beauty and attractions of the paradise island and its culture, such as the coconut shells,

the beaches, palm trees, the island's tropical flowers, fishing boats, its rich water life

and southern dancer, Papthalung.

Situation of Industry Today Batik is a product of the most popular in the market. Especially the

international market such as U.S.A , German, India, China, Hong Kong. Batik imports

from Thailand to sell in the form of finished products such as clothing, handbag, and

handkerchief. Batik scarves decorated with images cover the walls, tie the table and

linen shirts, etc. ready to be produced widely. The development of batik textiles, now

the department of industrial promotion, was central to the development of batik in

color schemes and techniques have been training over time. The school organized a

teaching or batik cloth different levels, from that institution, to provide education

about batik. Make the patterns and techniques widely this helps to produce good

results to produce batik, the development of a more than ample. Batik" is a unique art

and craft of the South. That has been widely popular for both Thais and foreigners.

Because the eye-catching designs and vibrant colors, beautiful batik is now popular

not allergic to other types of fabric. It is unique. Every step made by hand with

exquisite detail and precision also includes a commitment to work with. Work out so

successfully with good quality. By the concept of a new generation of customers,

combined with the model work more difficult. Hope to make a difference to the

market. Escape with the competition. This is thought to be done by batik, tie dyeing

technique of batik Integrated and dying together. One of the problems of dying fabric,

most suffer is the quality of color that will not always fall color, pH and color on

washing. But the development of batik clothes fall color. The continued use of the

natural color of the dying. Create a unique identity for the product is great.

Market trends

Market Batik progress over other saws. Both products supplies.

House by Measured by sales revenue per year. And the values that consumers have

accepted the product in a fabric bowl acid increased as the dominant organizational

chart.

Operational guidance

Batik is a craft business can utilize the skills that are exquisitely beautiful

color drawing policy implementation and follow patterns on the cloth, so as a concept

to a group of shareholders that the success in business after selling cloth. Bat Rick

both wholesalers and retailers on behalf of Craft Batik by ordering products from

other high quality products and has been recognized as the standard material.

Equipment used. Performance, etc., but it has to sell the brand its own. Packaged into

own brand. The marketing of the shareholders have seen the need to accept that the

consumers are demanding more saw any. Therefore the business as a company limited

Craft Batik and ideas to expand market batik wider. The idea is to have targeted all

levels. Although the product will have outstanding But still having trouble using

workers in the dyeing process. Causing fatigue and staining with a dye workers make

each time is not quality. Base color is not uniform. Enabling operators to switch to an

idea. Dyestuff that is suitable for producing small, inexpensive, much to replace

human labor. Which must be paid the average wage Dyer 3 baht per piece. "

Competitive market can be divided into two fabrics are in direct competition

and indirect competition. In direct competition, it includes manufacturers, batik

indirect and competition, including manufacturers of other types of fabric.

From: http://info.matichon.co.th/rich/rich.php?srctag=07026150552&srcday=&search=no

http://www.tarad.com/batik8/

Product/Service (in General)

Our products: all pieces are handmade out along a bright color because we use dye

cold, no fixed format. Each piece is unique for each call that you buy a shirt, I have the

confidence that unique pattern. Another trick is to design liking, will be more popular

because the design is customized and inexpensive compared to the same type of

clothes imported from Europe, sewing was no blame while Batik products that we do

right now such as

- Fabric curtain.

- Men’s Shirts.

- Pattern Handbag, by handmade painting.

Our product have a quality is the durability of color patterns and forms of

products. If the product has problems, returns accepted. Feature is every piece a

unique fabric. Each of these patterns in the ground is not in hand to produce by

handmade has attracted interest. Style has a pattern to the concept of customer needs

and the product add combined with the cultural patterns in northern and unique color

painting techniques a specific format of Bonito Batik company. And packaging is

designed for the use and with thing like media production in the box. Colors box with

a color line art. Detailed product branding and other elements. For clothes that we

used in the production, customers can select the type of fabric requirements such as

used silk cotton and linen, especially linen are popular with international clients such

as Hong Kong and Japan when it makes sense to wear elegant. The popular Thai

cotton and iron because simple to wear and the main customers are people like works

of art suggest that silk is popular. So our products are unique, unlike competitors. Source: www.thaismefranchise.com/?p=5063

www.muslimthai.com/main/1428/content.php?category=19&id

Vision Bonito Batik provides the product according to customer order. We will

make the different design to different customers.

“We will be leader in batik industry in northern of Thailand”

Mission Statement

1. We emphasize to find the best product and make customer satisfaction.

2. Search the different and outstanding of service to reach the customer in

northern region.

3. Reinforce the good relationship whit the customer.

4. Create the good product toward the famous business.

5. Build the confidence gives with a customer in the sense of the serve that is of

good quality by using the relation of the team administrates for build the

marketing “word of mouth”

6. Deliver serve at of good quality to a customer for occur satisfactions from a

customer and repeated buying

Business Strategy 1. Functional level

In this strategy, our industry uses differentiate. The reason that we use

differentiate strategy because our competitor in Chang Mai make only small industry

that different from our batik. We forecast that “Chang Mai is a center of batik

industry” in soon

2.Corporate level

Our business has several products to offer in different need and want of

customer. Because other business are not have the customer service as we and we

have many choice to support customer’s demand.

3.Operation level

In this strategy, we use all of strategy that includes marketing, finance,

accounting, and management of information system.

Chapter 3

Chapter 3: Market Feasibility Study

Market Analysis

General Environment Analysis

At the primary period of batik product that many companies produced the

most of products at point of decoration, fashion clothing, gift, and market that most

famous and tend to increasing and the products that able to sell more in the market.

Then there are many companies in the market increasing and trying to produce the

products at same design, so it affected to customers buying behavior that there are not

focus on the brand of products, but their most focus on the product prices and

different design of batik companies tried to focus on develop the market strategy and

tried to set the products at low price. Moreover, many new competitors entered to the

market. The economy depression, it did not affect to the demand of products in the

market, so the trend of ceramic is not much decreasing in the market.

Political analysis

Politic is out of control by business. Many competitors have to face with this too.

Politic might positively affect to business investment or negatively affect as obstacle

in business success. So, we always follow political news and apply in our business.

• Government policy is factor that both support and obstruct some kinds of business

success.

• Laws and regulations of government affect directly to success/failure and cost of

some kinds of business such as determine business open-close time and determine

zone of business.

• Price control policy; government determines ceiling price some kinds of necessary

goods. This operation affect to profit rate of small business or new market business

normally has high cost already that can’t compete at ceiling price.

• Open free and restricted import affect to advantages/disadvantages in competition

and determining goods price of involved business.

And marketing decisions are strongly affected by political and legal environment

uncertainty. Especially Thailand, the politic very strongly affect to government

policy.

The standard of design and development for package in SME entrepreneur is

another important policy of government because government by Department of

Industrial Promotion emphasizes the importance of quality and standard as a tool for

develop the district goods industry and wholesaler & retailer. In Chiang Mai province

has supportive industry and wholesaler & retailer form government also, it result to

economy for small business are strongly. That is a good opportunity for batik business

because of in Chiang Mai has a little of batik business, Bonito Batik can get more

market share form this market. Our business provides good quality, adding value, and

improve all the time that attractive the customers both among the countries and other

countries.

Economic analysis

It is out of control from business and others competitors must face as same as

politic.

• National economy condition; average income per person, unemployment

condition, growth/slow down of GDP, inflation, deflation, all of these affect directly

to purchasing power of customers who are target group.

• Currency exchange affect to cost and risk of imported/exported business and

competition in international market

Tax rate that government determine for business and product will affect to

advantages/disadvantages in determining price selling and cost of competition

including import tax and specific business tax.

• Cost of labor and production compare with important competitors, especially

batik product from southern and international competitors.

Social and Environment analysis

Business in different industry, market, region might face with risk. It has different

business feasibility because business operation environment and market environment

that is different.

• Business life cycle; industry or market products/services mostly have cycle short or

long that may be different such as fashion product has short life cycle, fast outdated

and low demand in market faster than other products.

• Consumer behavior in each market including more or less brand loyalty, price

conscious if it’s high, high price competition and low profit rate

Social includes the belief, value, and attitude of person in the social. The

socialist reflected by culture, education, religious, and other social environments of

other social. The social condition is continuously changed because of person in the

social need to control and adapt you with the environment. When the social condition

is changed, the need of person is also changed such as dressing, hobby, even

requirement of goods and service.

Batik is the new product in Chiang Mai because at regularly the Southern

product so we can satisfy Northern people by makes it in Chiang Mai and sale in the

cheaper than bring it up from Southern. And customer can see new design of the

product that we created.

Technology analysis

The advances of technology are making development to invention and

comfortable for life. Technology provides the quality and standard to produce goods

and services customer needs. The production system produce many products the can

be cheaper. Technology is easy to communication and connections between the

world’s population contact information at time together. But our business has not

much of technology because all of products are hand made product. The some of tech

neology are:

- Computer Technology is design product to high quality and fewer errors. It

has a samples and work on reality to lower costs of production.

- Internet Technology is easily to communication with customers that faster

and more complete information. The customer is not order your own which can be

receive and send e-mail directly to company. The Customers feel friendlier that create

to customer royalty.

-Website is the customer easily to view the products and change and improve

the product to available format and can design own products as appropriate. The

company received orders to customer that not only in Chiang Mai but market

expansion has resulted in comprehensive group with more goals.

- Logistic Technology is increase channel of transportation and registration

document number. The checking all the transportation and sent across Thailand. The

easy of transportation and quickly that confidence to the product of lost.

Competition analysis

Competitor Analysis

The Batik market competition can be divided into 2 aspects is direct competition and

indirect competition. In direct competition is Batik manufacturers. Indirect

competition is manufacturers of other types of fabric.

The competition can be analyzed as follows. Analysis of direct

competitors(Batik manufacturers community, including manufacturers neighboring

provinces and provinces as they are produced, Lamphun, Lampang, Chiang Rai,

Narathiwat, Phuket, Chainat, Pathum Thani, Rayong, Pattani, Bamgkok, Satun, Krabi,

Phang Nga, Kanchanaburi, Nakhon Ratchasima and industrial manufacturers.) The

direct competitor in the batik product is not found at the company area that this entire

area batik market share is hold on our hands, if look forward at the whole of Chiang

Mai province that there are many batik companies. Overall are not serious problems

for Bonito batik because the most companies produce and design the batik product at

same style, no more different. And mostly is making by machine then it is a lot of the

same design and outside markets. Besides, the most of companies do the marketing as

wholesale, so the most customers in the local area can not buy the products as single

unit.

1. Potential distribution ways in Batik products produced by different

communities, the most companies produce and design the batik product at same

style, no more different. So the advantage is exactly what the province can

create a selling point to draw customer in to more travel. In general, Batik

products from Phuket to be benefit most from tourism but design of phuket

different Bonito batik because bonito create own design, we add combined with

the cultural patterns in northern and color painting techniques that are different

from phuket. In addition, manufacturers are not used in the community.

However, as industrial production is considered as a group with high potential

for distribution and the ability to cover more markets, because production

capacity and expertise in distribution.

Low

Lamphun batik

Bonito batik

Phuket batik

Cost

High

Industry Bonito Batik

Diagram: Shows the comparison between the cost and sales of the product

Diagram Shows the comparison between the multi product and distribution of the product

2. A variety of Batik products, depending on applications. Which generally has the

advantage of a similar diversity depends on productivity.

3. Uniqueness of each region to produce an advantage in manufacturing such as

the colorful, patterns, look different.

4. To promote the marketing of Batik products in each community. It often

depends on the support of government in each province was to support different

and in the manufacturing sector is promoted; the market also appears to be not

very intense

Analysis of indirect competitors

Indirect competitors of batik products, is variety of styles depending on the

application from of batik. Such as hats made of batik have indirect competitors as a

manufacturer of wicker hat and other types of cloth caps and so on. Therefore, it is

difficult to analyze whether any competitors are indirect competitors, depending on

the substitution of products compatible with the decision of consumers is key.

Lamphun batik Bonito batik

Phuket batik

Distribution

Low

High

Multi Product

Customer Analysis

Thai – Foreigner Tourists come to travel in Chiang Mai is targeting of Bonito Batik

Company that we spent one month gathering information about this target group.

From talking to the customers informally, as well as searching the population base

especially tourists come to Chiang Mai and producing a customer questionnaire.

The customer size base

Example the number of middle age size of Thai and foreigner tourists in 2009 ( age

between 25 – 40 year old ) come to travel in Chiang Mai.

Age Thai Foreigner

Traveler Tourists Total Traveler Tourists Total 25 - 34 97 674 771 57 441 498

[ 27.5 ] [ 33.5 ] [ 32.6 ] [ 36.1 ] [ 29.4 ] [ 30.0 ]

35-44 124 594 718 49 394 443 [ 35.1 ] [ 29.5 ] [ 30.4 ] [ 31.0 ] [ 26.2 ] [ 26.7 ]

Unit : People ( Percent )

Thai tourists : Most of the older working age by 32.6 percent. Aged between 25 to

34 years followed by 30.4 per cent aged between 35 to 44 years.

Foreigner tourists : Most of the older working age by 30.0 percent. Aged between

25 to 34 years followed by 26.7 per cent aged between 35 to 44 years.

So you can see that Tourists in Chiang Mai, Thai and foreigners do not differ in

age, because most are aged between 25 to 44 years.

Source: http://www.tourism.go.th/2010/upload/filecenter/file/stat_File_pdf52/north/cheanmai.pdf

Competitive Analysis

There is no any competitor on the Mahidol – Nhong Hoi road, one of the famous

areas. All batik companies in Chiang Mai that there are many product that focus on

the same design, it mains the most of their products are not different, and the price

that sets at likely the same price, not more different. Besides, the main of their targets

focus on exporting that mostly is making by machine then it is a lot of the same

design and outside markets. So, the point of Bonito batik company that able to get

more advantages and the ability in competitive is likely higher that the most

competitors in the same area. The different designs of the products are newest,

modern, and the products that produced from the own company. Bonito batik has the

strong point in competitive ability than stores around this area. However, Bonito batik

store and gallery is a new store in this area that should be focus more in product,

price, place, and promotion. In additional Bonito batik should be focus on 4Cs

together with 4Ps

STP Analysis

Market segmentation

The batik products in the market have many types that there are Souvenir, gift and

decoration, clothing. Bonito Batik focus on the clothing, gift and decoration products

market segmentation because this type of product demand is more large in the market,

the design that able to create in more, and the products is supported by many group if

customers.

Target market

Bonito Batik focus on the people who is favor on the design of batik products, liked to

buy the batik products for giving people in some special days, ceremonies, and

festivals. Beside they buy the ceramic products for decorating houses, workplaces, or

clothing. Our customers we focus on Thai people and Foreigner tourist are travel in

Chiang Mai.

The products that are made by batik are more famous in using around the world.

Unlimited in separate the buyers or users by gender and age, however the main target

market is focusing on:

Middle age (tourists): The middle age that has the age between 25 - 40 years old that

looking the batik products for use by themselves, New Year gift, special day gift, and

whatever festival, giving people, decorating house and workplace. There are 470,000

middle age of man and 450,000 middle age of woman in Chiang Mai province and

year 2551 there are 5,313,352 tourists, year 2552 there are 4,343,090 tourists and year

2553 is expected 4.5 million tourists come to Chiang Mai. According to Middle age

behavior around the area and travel in Chiang Mai we found that they have more

money to pay and they spend more time for shopping with their family, friends, group

tour and they are looking for some things new, interesting, and different design

products. The most customers will be popular as souvenirs for friends, relation or get

our products to be sold to a foreign country.

Source: http://www.cmcity.go.th/aboutus/economic.php

http://www.thaienergydata.in.th/energynew/energyReview/energy/index_prv_populati

on.php?prv_id=50&year=2550&subtab=12&tab=1&main=main

Positioning

In nowadays, there are many batik products in the market and the products that

likely at the same because the products are easy imitation, so the most of buyers are

not specific in focusing to buy batik product under the brand of products or producing

from where, but their focus on product designs. Bonito batik try to focus positioning

of the products at the different point of products design that according to several

product designs for attracting them interested in Bonito batik, Bonito batik designs

and creates the new style of products at special period that for hard to imitating

product design from competitors.

The different point of products design, we focus to produce the product

according to our own designs, this combined with the culture of the north that there

are three concept designs to our gift, clothing and decoration for tourist group of

customers. We try to study about many companies products and create Bonito batik

own design, we add combined with the cultural patterns in northern and color painting

techniques that are different from other brands that is the main point of our products

that 100% are not same with any batik companies in Chiang Mai province.

At the product prices that we have set at the fairly price, it is not more high or

not more low because we concern about customer value perception. Therefore, we try

to make the point that customer willing to pay and able to buy our product. Moreover,

we try to build the brand value of product in mind of customers.

Marketing Mix Strategy

SWOT analysis

Strength

1. The products those are unique. The production by hand (Hand. Made) by

each product with unique and colorful patterns are not the same.

2. Goods are cheaper than the competition when compared with the

production of a group of other local producers. Due to lower production

costs.

3. The ability of the product. Can be applied to various the application of a

wide array of products.

Weakness

1. Capacity is uncertain because the workers in the production of mainly And

may not be enough demand if you live in a high sales skills in the

production of the year, depending on the experience of manufacturers in

each. The piece has a different standard.

2. The distribution of goods to other areas. Also depend on middlemen to buy

too many are not able to plan and know the real needs of the market.

3. Does not create and promote a brand is generally known.

Opportunity

1. Is both a source of tourism in the province and other provinces to make

similar opportunities to sell and close easily producers

2. The promotion of public policy related and other projects that support the

One Tambon One Product.

3. Tastes of consumers towards the products of batik. That is appropriate to

the source here.

Treat

1. Batik competitions within the market are relatively more competitive.

Community, especially the batik fabrics, and there are many manufacturers

do not include a group of manufacturers in the industry characteristics.

2. The amount of products depending on the season.

3. The trend of slowing down due to economic impact. Allows consumers to

cut costs and unnecessary consumption.

4. Products with similar characteristics and features and like products from

Batik by innovation. The application of fabric products and improve the

range, which may affect the interests of a product from batik.

5. The trouble in the rainy season. That can not produce because production

is mainly dependent on sunlight.

Marketing Mix 4P

Sum of marketing mix Details

Product Batik

Price High quality, high price

Place The company at Chiang mai

Promotion Use both Advertising and do

The details of marketing mix

1. Product

Bonito batik is not the normal store that provides only batik products that

easily looking from general markets like normal clothes, decoration, and gift, but

Bonito batik is a wonderful store and batik gallery. We focus on new design that

combined with the cultural patterns in northern and painting techniques that are

different from other brands batik to batik products. It is likely the batik center that

provides a lot of various designs to batik products such as decoration and gifts.

The entire products designs are various and different from others.

Bonito batik, have a strategy to create value-added products. The separation of

product strategy into 3 areas, which are detailed below

1.1. Quality more robust designs and color patterns of the

products. If the product has problems returns accepted.

1.2. Characteristic (Features) every piece a unique fabric. Each of

these patterns in the ground is not in hand. To produce by hand

(Hand Made) has attracted interest.

1.3. Format (style) has a pattern to the Concept of customer needs.

Bonito Batik logo

2. Price

Promotion.

Bonito Batik Company’s pricing is designed to be competitive to the other

batik companies. The pricing is based on the basis of the company target customers.

Bonito Batik Company’s pricing strategy use of vertical integration in pricing wherein

they own participants at differing channel levels or take part in more than one channel

level operations. This can control costs and influence product pricing. The price we

set at the fairly price that it is not more high or more low because we focus on the

power of our customer buying, and our company product cost. 3.

The following strategy:

3.1. Pricing to the competition (Competition oriented pricing) is a

moderately priced not lower price much when paired with other

products on the market. To take advantage of the difference

between profit and sales promotion.

3.2. The aim of the cost price (Cost oriented pricing) is a set price

that covers production costs. Marketing costs. Discount given to an

intermediary. Other expenses. Including the desired profit.

3.3. Psychological pricing basis by using numbers that end with odd

numbers. To determine the price of all kinds.

Product Style Size Price

(Bath per piece)

Men's Shirts S 36" 250

M 38" 300

L 40" 350

XL 42" 380

Fabric Curtain Flower 2 x 1.5 M 750

Sea (The same size) 780

Lanna 800

Handbag Flower 16" x 12" 650

Sea (The same size) 680

Lanna 700

4. Place

Bonito batik Company focuses to establishing the company at Chiang Mai

province especially on the Mahidol – Nhong Hoi road, one of the famous areas.

The place is the center of Chiang Mai shopping area and a source of Thai and

foreigners’ tourists. That there are many shops around the company and it is the

location of our customer group tourist that covers our entire market distribution

center. We have set the company as the batik art gallery and work place. At this

area that no any competitors have found, so this is the one of the best location that

it is the golden business area. Around the company there are many accessory

shops, shoes store, and restaurants so there is more different in type of business

that it able to lead our company to be the distinctive point and able to let our target

customers are more interested in our company.

Distribution strategy:

4.1. The distribution channel as a communication tool in marketing,

particularly public relations and advertising. Were labeled

advertising, held Display, distribution of brochures and other

incentives.

4.2. Use strategy Selective Distribution for initially focusing on

market trends and distribution channels to meet the target group

most.

4.3. Set up sales teams to sell space in stores target. Focusing on

market access channels that are associated with the target groups

and can be used to create the market trend in the future.

5. Promotion

Promotion is a key element of marketing program and is concerned with

effectively and efficiently communicating the decisions of marketing strategy, to

favorably influence target customers’ perceptions to facilitate exchange between

the marketer and the customer that may satisfy the objective of both customer and

the company.

Stages and promotion strategies employed

When a product is new our objective will be to inform the target customers of its entry. Radio,

magazine, and handbill may be used to push the product through the introduction stage of the

lifecycle. Push and Pull Strategies will be used at this crucial stage.

Growth

As the product becomes accepted and interesting by the target market Bonito batik at this stage

of the lifecycle we work on the strategy of further increasing brand awareness to encourage

loyalty.

Maturity

At this stage with increased competition we take persuasive tactics to encourage the customers to

purchase our product over our rivals.

Any differential advantage will be clearly communicated to the target customer to inform of our

benefit over our competitors.

Decline

As the product reaches the decline stage we will use the strategy of reminding people of the

product to slow the inevitable

Sales Promotion

Bonito batik Company has promoted its products through different sales promotional

strategies such as member card for discount and gift voucher

Sales Forecast/Profit Estimation

Bonito batik Company set to make the sales forecast/profit estimation at 5 years.

- The sell price that compare with the market price.

- The number of product from 8% – 9% of the tourists come to travel in Chiang Mai.

From the statistic of Thai – Foreigner tourists come to travel in Chiang Mai province

2009 provided 4 quarter are

Quarter Period of month Number of customer Percent

Thai Foreigner Total

1 January - March

411,212 271,693

682,905 29%

2 April - June

298,544 197,375

495,919 21%

3 July - September

223,279 226,499

449,778 18%

4 October - December

475,344 291,010

766,354 32%

Total

2,394,956 100% Source: http://www.tourism.go.th/2010/th/statistic/tourism.php?cid=27

Quarter 1 Tourism remained the atmosphere lively. Because in the New Year on the Chinese New Year. The air is cool and many activities during this period. The attraction that most people have taken many hits.

Quarter 2 Atmosphere tourism remained vibrant because of the first quarter due to the holiday season is long, especially Songkran. People have a lot to travel.

Quarter 3 Tourism atmosphere remained relatively quiet because it is the rainy season in addition, no activity in this season.

Quarter 4 Climate tourism remained vibrant over the third quarter due to the winter range is near the end of the year. There are also many more activities such as Loy Krathong Yi Peng, etc.

YEAR 1

TOTAL SALE

PRODUCT SIZE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Men's shirts S" 15,000

14,350

15,300

13,450

14,450

12,700

11,000

9,500

9,800

13,800

15,300

17,200

161,850

M" 19,500

19,000

20,700

20,000

19,500

18,750

16,700

15,800

14,900

16,700

19,800

21,500

222,850

L" 20,500

19,800

21,350

20,700

20,000

19,800

17,800

16,900

15,900

17,600

19,400

22,100

231,850

XL" 18,500

18,000

18,800

17,500

17,000

16,500

14,850

14,000

13,250

15,350

17,550

19,800

201,100

PRODUCT STYLE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Febric Curtain Flower 15,000

15,750

14,250

15,000

16,500

13,500

12,000

10,500

10,500

13,500

15,750

18,000

170,250

Sea 21,840

21,840

21,060

20,280

19,500

17,940

16,380

14,040

13,260

16,380

18,720

21,840

223,080

Lanna 24,000

25,600

24,000

24,800

23,200

24,000

20,000

20,800

20,800

24,000

27,200

28,800

287,200

Handbag Flower 9,750

9,100

9,750

9,100

9,100

8,450

6,500

5,850

7,150

8,450

9,750

11,050

104,000

Sea 9,520

10,200

10,880

10,200

8,160

8,840

6,800

5,440

6,800

8,840

10,880

11,560

108,120

Lanna 12,600

13,300

12,600

11,900

11,200

11,200

8,400

7,000

6,300

8,400

11,200

13,300

127,400

TOTAL 166,210

166,940

168,690

162,930

158,610

151,680

130,430

119,830

118,660

143,020

165,550

185,150

1,837,700

YEAR 2

TOTAL SALE



15,000

16,000

14,500

14,900

13,000

12,500

9,600

9,700

14,200

15,500

17,500

168,000

M" 18,000

17,050

18,500

16,000

17,500

15,750

15,000

14,550

14,300

16,000

18,500

20,000

201,150

L" 21,000

19,500

21,000

19,850

19,000

19,500

18,750

17,000

16,550

17,500

19,000

21,000

229,650

XL" 19,050

18,900

19,050

18,750

17,500

16,900

16,350

16,000

15,850

17,300

18,000

20,050

213,700


Fabric Curtain Flower 16,500

15,000

17,250

17,250

15,750

15,000

14,250

12,750

13,500

16,500

16,500

18,000

188,250

Sea 22,620

22,620

23,400

21,060

21,840

21,060

19,500

17,940

19,500

21,060

22,620

23,400

256,620

Lanna 24,000

26,400

26,400

24,800

24,000

25,600

23,200

24,000

22,400

25,600

28,800

30,400

305,600


10,400

11,050

10,400

10,400

9,750

8,450

9,100

8,450

9,100

10,400

12,350

120,900

Sea 10,880

10,200

10,200

9,520

10,200

10,200

9,520

8,160

8,160

10,200

12,240

14,280

123,760

Lanna 13,300

14,000

13,300

11,900

12,600

11,900

10,500

9,100

9,800

11,200

13,300

15,400

146,300

TOTAL 172,000

169,070

176,150

164,030

163,690

158,660

148,020

138,200

138,210

158,660

174,860

192,380

1,953,930

YEAR 3

TOTAL SALE



15,850

16,500

15,300

14,080

13,650

13,200

10,100

9,800

15,000

16,500

18,650 175,330

M" 18,800

16,050

17,850

16,350

16,900

15,650

14,900

14,000

13,800

14,900

17,000

21,000 197,200

L" 19,700

19,300

20,050

19,000

18,550

19,700

17,050

16,850

16,600

18,000

18,900

21,500 225,200

XL" 18,900

19,350

23,000

21,050

19,000

18,000

17,050

16,500

16,000

18,000

19,050

21,000 226,900


Fabric Curtain Flower

18,750

17,250

15,000

15,750

19,500

16,500

15,000

13,500

14,250

18,000

15,750

20,250 199,500

Sea 21,060

23,400

25,740

19,500

21,060

21,840

22,620

19,500

20,280

22,620

21,060

21,840 260,520

Lanna 28,000

27,200

24,000

26,400

28,800

21,600

20,800

22,400

23,200

24,800

28,000

25,600 300,800


11,050

13,500

9,100

12,350

13,000

11,050

9,750

8,450

9,750

11,700

13,650 135,050

Sea 11,560

12,240

10,880

12,920

10,880

10,880

11,560

12,920

12,240

9,520

12,920

14,960 143,480

Lanna 14,000

14,000

11,900

11,200

9,800

11,200

10,500

9,800

11,900

12,600

13,300

15,400 145,600

TOTAL 179,170

175,690

178,420

166,570

170,920

162,020

153,730

145,320

146,520

163,190

174,180

193,850 2,009,580

YEAR 4

TOTAL SALE



16,700

17,500

16,800

15,800

15,450

14,500

12,000

11,500

15,250

16,900

19,000 188,400

M" 19,000

18,250

18,900

17,500

18,300

16,500

16,350

15,850

14,500

16,750

17,500

20,500 209,900

L" 20,000

19,050

22,000

19,500

19,100

20,200

19,750

18,700

17,500

19,500

21,050

22,000 238,350

XL" 19,500

19,900

20,500

20,300

19,800

19,450

18,800

17,050

16,800

19,000

19,500

23,050 233,650


Fabric Curtain Flower

20,250

18,000

18,000

18,750

18,000

16,500

15,750

15,000

19,500

18,750

16,500

21,750 216,750

Sea 21,840

25,740

24,180

19,500

21,060

21,060

22,620

23,400

18,720

22,620

21,840

25,740 268,320

Lanna 20,000

18,400

16,800

19,200

20,000

22,400

20,800

23,200

23,200

21,600

23,200

27,200 256,000


12,350

11,700

13,000

13,000

12,350

10,800

9,750

10,400

11,050

12,350

16,250 143,800

Sea 12,920

12,920

13,600

14,280

13,600

12,240

11,560

10,200

11,560

10,880

11,560

18,360 153,680

Lanna 15,400

16,800

14,000

13,300

17,500

18,200

16,800

17,500

19,600

18,200

17,500

20,300 205,100

TOTAL 176,710

178,110

177,180

172,130

176,160

174,350

167,730

162,650

163,280

173,600

177,900

214,150 2,113,950

YEAR 5

TOTAL SALE



17,900

18,050

17,500

16,900

16,400

15,900

13,050

12,500

16,100

17,500

20,100 200,400

M" 20,500

19,000

20,100

19,850

19,200

19,500

18,900

18,250

15,000

17,500

18,500

21,500 227,800

L" 21,500

20,500

22,500

21,000

20,900

22,500

20,500

20,000

19,800

20,150

22,350

22,500 254,200

XL" 20,900

21,500

22,350

22,000

21,800

21,450

21,000

20,800

20,000

22,500

23,500

24,500 262,300


Fabric

Curtain Flower 22,500

21,000

19,500

20,250

18,750

18,000

18,750

16,500

15,000

16,500

18,000

22,500 227,250

Sea 22,620

25,740

24,960

18,720

21,840

21,840

23,400

23,400

19,500

22,620

21,060

26,520 272,220

Lanna 20,000

20,800

16,000

19,200

21,600

21,600

23,200

24,800

25,600

24,000

24,000

28,800 269,600


12,350

13,000

13,650

14,300

11,700

12,350

12,350

13,000

12,350

14,950

17,550 160,550

Sea 14,280

14,960

16,320

14,960

13,600

12,920

15,640

16,320

13,600

12,920

13,600

19,040 178,160

Lanna 16,100

16,800

15,400

13,300

16,800

17,500

18,900

19,600

19,600

17,500

17,500

20,300 209,300

TOTAL 189,900

190,550

188,180

180,430

185,690

183,410

188,540

185,070

173,600

182,140

190,960

223,310 2,261,780

Total sale for 5 year

Marketing Expenses:

Advertising

Bonito Batik Company advertises our product through many different ways and

media such as magazine, cutout and handbill. We also uses direct – response

advertising. This is type of advertising that encourages the consumer to respond either

by providing feedback to the advertiser or placing.

Advertising on handbill

The handbill is for special day such New Year cerebration, valentine day, and the

promotion seasons. Handbill was printed by our company

1 sheet of paper = 0.50 bath

1,000 sheets of paper per a time = 1,000 x 0.50 = 500 bath

Hiring worker to distribute handbill a time per one person = 300 bath

2 workers = 300 x 2 = 600 bath

4 time a year = (4 x 500 = 2,000) + (4 x 600 = 2,400 bath) = 4,400 bath

Advertising on “Compass Chiang Mai magazine”

1 time per month = 300 bath

12 months = 300 x 12 = 3,600 bath

4 time a year = 3,600 x 4 = 14,400 bath

Total advertising cost per year = 4,400 + 14,400 = 18,800 bath

0500000

1000000150000020000002500000

Year1 Years2 Year3 Year4 Year5

Tot al sal e

Total sale

Source: www.compasscm.com , Tel. 053 - 814455 – 113 (marketing)

Conclusion

Although Thailand is currently the business for many batik almost every region of

Thailand. But the current response of the batik products has increased, because we export to

overseas sales, such as Asian and European countries. Resulted in orders to many, because

the nature of the product as a handmade, with high resolution and combined with the cultural

patterns in northern and painting techniques that are different from other brands. And also

many types of goods such as scarves curtains pillowcases, shirts, etc, which can be used as

souvenirs and gift. In addition, the government's policy to support OTOP project which

provides a product display and product to product is known, more interesting. Market and

potentially increase can generate revenue for the operator more. Increase the occupation and

income to people in the community or people in the country. Reduce the problems caused by

unemployment, can also use art skills to adapt the work as well. The form of beauty products

and a variety of patterns for customers to buy. The products are different, unique style. This

allows customers to rely on my heart and can be ordered at any trading throughout the year.

Chapter 4

Chapter 4: Technical Feasibility Study

Product Characteristics The product of Bonito Batik are concerned about the design first because we try to make the

point of different from many competitors in market and present a new design of batik into the

market under the brand of Bonito Batik company. Bonito Batik focus on three most popular

shape of design, there are Fabric curtain, Handbag, and shirt concept design. The entire

product designs that we try to fix on the products shapes and follow the modern trend in

nowadays customer favor

Bonito Batik creates these designs for use by themselves, New Year gift, special day gift, and

whatever festival, they would get the high quality product and may be the product that they

make by themselves. Besides, there is a point that different from other is the product add

combined with the cultural patterns in northern and unique color painting techniques a

specific format of Bonito Batik company.

Three concept designs

- Fabric curtain

The design that to let customers feel fresh, good when they are looking at the first time, it

able bring the feeling as the view sea, fish, flower, Lanna, etc.

PRODUCT STYLE SIZE PRICE

(Bath per

piece)

Fabric Curtain Flower 2 x 1.5 m 750

Sea (the same size) 780 Lanna 800

- Shirts

The design that concern about the feeling of customer especially couples, kids shirts, etc.

This design is one of the design that more in sale. At the special point of the product, we

design for the modern and ventilate as well.

PRODUCT SIZE PRICE (Bath per piece)

Men's Shirts S 36" 250

M 38" 300

L 40" 350 XL 42" 380

- Handbag

The design is the main product design of Bonito Batik. It focuses on the favorite

convenience and like arts product together different from the market.

PRODUCT STYLE SIZE PRICE

(Bath per

piece)

Handbag Flower 16" x 12" 650

Sea (The same size) 680 Lanna 700

Product process / Service process Bonito batik company, have own manufactory for producing the product because the

product hand made, have producing by people has skilled of arts and be creative as well.

Product is combination of manufactures and customer design for customer to participate in

the production under the identity of Bonito Batik Company.

The product order process:

The production process come from the own factory for producing the order.

There are 7 steps in the production process for the manufactory.

- Raw material preparation

- Body preparation

- Employee good skill of design preparation

- Shaping

- Special color and cotton 100%

Create and design the products

Fabric curtain design Handbag design Shirt design

Bonito batik design

Make the production order to own factory

Transfer products to Bonito Batik’s store

Deliver products to customers

- Boiled clothes and Drying

- Technique to protect product

The production process of general batik company below:

1.Design patterns on paper with pencil. When completed, then use the Magic Pen black pencil to draw the boundaries clearer pattern.

2. The wax batik written to the liquid and then melted down to paint the frame edge. Using a brush dipped candles, and then be applied on all 4 edges of the frame around Do not get too thick because it makes it easy clothes off Grand. Then, the fabric that is mounted on the frame with solid material or face, such as bottles, coins, keys, press the bottom on the edge of the frame and gently rub each side of the frame and 4 frames.

3. The pattern is prepared to insert a frame under the fabric straining to make a pencil tracing on the canvas with 2 B or above.

4. Use Ting Chan Tien draw water at temperature suitable draw water by leaving candles only 2-3 times in order to adjust the temperature of the Ting Chan, and then try to write on a slip viewed to ensure that the candle has a line size required. The candles should not be too big a line 2 to 3 mm, and then start a real start writing a rectangular frame around the outside edge for four before spread to the wooden frame. To write the copy pattern to drag slowly. Be careful not to break the line because the candles will make time to color will be released together. Beautiful colors will not rot and will need to use water, wax paper, tissue lining around the outside of the pen to write, so that every candle wax drips down on parts.

5. Down to the desired color pattern. Like a painting with a brush in the space. The weights for the light to be level. How to paint a light color first, then medium and dark colors will be highlighted with a beautiful light and shadow. To have a flutter sweet, then use the water cooling portion to the light and then stained dark dithered together cause shadows weigh light - dark and see the depth of beauty and wait until Dry. Close.

6. The fabric paint and dry coating of sodium silicate to the fall have two different color ways of coating by dipping into the liquid tank. The press caught the liquid wet the entire piece. Pat then brought up oral liquid tank to drop back into the tank is brought back again, and another way is to use a brush or roller and then dip solution used to paint on a canvas stretched on a frame around the piece. This method is widely used because each washed well and less damaged parts. Then leave 6 to 8 hours for chemical reactions before being cleared.

7. To wash the fabric so that the mucous coating of sodium silicate in the container off with larger amounts of water can enter the lot. It will come off the excess color and must have water to flow over the years. Or change the water frequently. Until the wash water is clear and slips out of hand, so stop the process of washing. Do not spread out to dry mass. It would put together a color wash and clean each piece of color to come off the stick back.

8. The fabric that is cooked in boiling water mixed with detergent or soap, Sunlight post in about 1 tablespoon per 20 liters of water to remove the line peeling off wax from fabric Using the handle end of fabric and cloth dipped in boiling water over the land. Then slowly lift up and down and dry cloth until the wax off. Dip switch to the other side do the same. Notice that the line out or the candle out. Do not boil the soaked cloth to make up a false sense of waste

9. The fabric onto the drum with water to a full laundry by capturing end dipped as stripping out candles out to clean up and waste candles fall out and be soaked in water for a 1 to 2 hours if it is dark. Check that there should be washed or not. If you fall, change the water in the basin and the new surplus falls out.

10. The fabric onto the drum with water to a full laundry by capturing end dipped as stripping out candles out to clean up and waste candles fall out and be soaked in water for a 1 to 2 hours if it is dark. Check that there should be washed or not. If you fall, change the water in the basin and the new surplus falls out.

Source: http://www.phuketbatik.com/index.php?option=com_content&view=article&id=64:2009-03-27-16-29-24&catid=1:2009-03-10-08-03-53&Itemid=42

The Bonito Batik package order process:

- Create and design packages

- Make the order to package manufactory

- Check and receive packages

- Transfer Bonito Batik design packages to the production manufactory

Packaging Product Company Our companies choose Siva supply Co. to do packaging product for Bonito Batik brand. Siva

supply company is a manufacturer of plastic bags that concentrates on the quality of product,

good printing and the customers' highest benefit by using high technological and modern

efficiency machineries, Including fasting service safety and cleanness standard.

(Fashion Bags)

Contact

SIVA SUPPLY CO.,LTD.

Address: 48/21 Moo 8 Panyalndra Rd.

Bangchan Klongsamwa Bangkok 10510 Thailand

Tel: 066 0-2914-2157, 066 0-2914-2158

Mobile: 081-6389399

Fa : 066 0-2914-1572

Email: [email protected]

: [email protected]

Location The location is important for Bonito Batik Company; it is the place that able to let the

company gains maximum profit. We point to establish the company at the one location in

Chiang Mai province the place is famous and there are many shop, school around this area. It

is near the most famous market Nhong - hoi and hotel in Chiang Mai. According to the

number of population in Chiang Mai there are 1.63 million people that we focus on our main

target is the group of Thai and foreigner there are 674,682 people. At the company area the

Mahidol – Nhong hoi road there is one commercial building that we buy 3 floors our

company office. At the area that there are not any batik companies or any stores that will be

our competitors because there are many accessory shops. With the batik products that the

most of Thai and foreigners are favor and like to walk around the area after school every day,

so this location is the golden place for establish the company, gain the profit and catch the

market.

460/39 Chang Klan road Aumpur Muang Chiang Mai province 50100 Tel. 053-234263,

www.bonitobatik.com

Commercial building

Facility Layout

Logistics Management

Sell Order

Order Sell

Our company concern more about logistics management because this is the one process that

able to let the company reduces cost, increase in sale, and gain profit rapidly. The main

activities of Bonito Batik company management are:

- Order management

We focus on the beginning of the order process that we try to make the right order

information from customers and make the order system available and the company

design the best product and make the order to manufactory for producing the

products.

- Packaging

We try to design Bonito Batik own package and make the order to manufactory that

for make the value of the products, identity of product when customer need and make

the point of different from others.

- Transportation

Communication system

We make the order for producing product and package on three methods, one is on the

internet, one is face to face and one is on phone.

Package

Production

Bonito Batik

Company

Customer

Order design

Own factory to producing product

Facility Management Our Company has many staff and much equipment to serve to all customers and when

customers want to contact to our company is easy because customers have many way to

contact ex. Internet, Telephone, or come to our company.

Cost of Investment

Our company prepared product by the customer's order and deliver services to customers.

The Material is used a great cotton from factory. We will make high-quality products for customer

satisfaction.

Investment Cost

Table set 1,500 Baht

Manager Table 3,500 Baht

Sideboard 3,900 Baht

Manager chair 1,500 Baht

Chair 590 Baht

Folder sideboard 5,100 Baht

Set of sofa 9,890 Baht

Computer table 1,900 Baht

HP Compaq Presario 17,300 Baht

Canon Laser Shot LBP6000

Laser Printer 3,050 Baht

Brother FAX-2820 8,990 Baht

Casio MX-120S 330 Baht

Samsung AS10ULN 10000 BTU 15,900 Baht

Sony KLV-32V200A 54,990 Baht

Camera Canon IXUS 1000HS 13,900 Baht

Operating Cost

Raw material Cost

Cotton 35 Baht / m.

Brush

200 Baht / set

Jun Ting

(a pen use to put boil candle

into cotton)

230 Baht

Wood frame

30 Baht / picec

Dye

4500 – 6000 Baht / kg.

Sodium silicate 20 Baht / kg.

clotheshorse 299 Baht

Wax mix with candle 950 Baht /piece

water bucket

199 Baht

Caldron 299 Baht

Gas stove ( for boil candle) 599 Baht

Bowl 10 Baht / piece

http://classified.sanook.com/item/3922285

Direct Labor Cost Wage rate for our organization we estimate for rate worker of Chiang Mai.

Designer 1 person 10,000 baht /month

Assistant designer 1 person 7,000 baht /month

Employee 10 person (10* 4500) 45,000 baht /month

Delivery boy 2 person (2*4000) 8,000 baht /month

Total cost/month 70,000 baht/month

http://www.ch7.com/news/news_thailand_detail.aspx?c=2&p=4&d=117291

Overhead cost Indirect labor cost

Manager 1 person 30,000 baht/month

Accountant 1 person 10,000 baht /month

Sale and marketing 1 person 10,000 baht /month

Housekeeper 1 person 3,000 baht /month

Total 53,000 baht /month

Management Analysis Administration Cost

The company has classified the cost for the areas other than manufacturing, such as

telephone, electric, water, etc. We will then use the money to pay. And if any equipment

or facilities within its worn or damaged. We would take the money this is the cost to

repair equipment.

Conclusion

The products of Bonito Batik are concerned about the design first because we try to make the

point of different from many competitors in market and present a new design of ceramic into

the market under the brand of Bonito Batik Company. Bonito Batik focus on three styles of

design concept, there are Fabric curtain design, Handbag design, and Shirt concept design.

The entire product designs that we try to fix on the products shapes and follow the modern

trend in nowadays customer favors. Bonito Batik creates these designs for use by themselves,

New Year gift, special day gift, and whatever festival. Besides, there is a point that different

from others is the product add combined with the cultural patterns in northern and unique

color painting techniques a specific format of Bonito Batik company that can make high

profit for company.

Chapter 5

Financial Plan

Initial investment To estimate the financial investment and will invest mainly in equipment, appliances and decor bonito batik company. It is not fixed assets. In addition, tools to use the shop to have the assets used in operations and materials bullying. And raw materials used in the company. The estimated financial investment of the project can be summarized as follows.

Source of fund The company has investment by the 8 executives will invest in the same rate. Each 180,000 Total capital to total 1.44 million to THB

@ All Bonito Batik company Income statement

For the ended month, August 31, 2010 (TH Baht) Sale 960,000 Cost of goods sold 413,900 Depreciation Expenses 7,709 Wages Expenses 210,000 Operating Expenses; Rent expense 15,000 Electricity expense 10,000 Utilities expense 5,000 Water supply expense 1,000 Gas expense 5,000

Other expense 2,000 38,000 Taxable income 290,391 Taxes (34%) (98,732.94) Net Income 191,658.06 Dividend 80,000 Addition to retained earnings 111,658

@ All Bonito Batik company Balance Sheet

For the ended month, August 31, 2010 (TH Baht) Asset Cash 300,000 Inventory 10,000 Fixed Asset

Equipment & Material 150,000 Table & Chair 140,000

Furniture 147,000 Decorate Restaurant 45,000 Accrued rent expense 180,000 Less: Accumulated depreciation (7,709) 654,291 Total asset 964,291 Liability & Equity

Rent Payable 180,000 Total liabilities 180,000 @all Bonito Batik, capital 784,291 Total liability and equity 964,291

@ All Bonito Batik company Statement of cash flow

For the ended month, August 31, 2010 (TH Baht)

Cash flow from operating activities Cash receive from customer 960,000 Cash paid for supplies (413,900) Cash paid for employee (210,000) Cash paid for utilities (38,000) Net cash provided by operating activities 298,100 Cash flow from investing activities Purchase of equipment (482,000) Net cash used by investing activities (482,000) Cash flow from financing activities Investment by owner 300,000 Net cash provided by financing activities 300,000 Net increase in cash 116,100 Cash balance, August 1, 2010 0 Cash balance, August 31, 2010 116,100

Financial Analysis @ All bonito batik company

Income statement For the ended month, August 31, 2010 (TH Baht)

Sale 960,000 Cost of goods sold 413,900 Depreciation Expenses 7,709 Wages Expenses 210,000 Operating Expenses; Rent expense 15,000 Electricity expense 10,000 Utilities expense 5,000 Water supply expense 1,000 Gas expense 5,000

Other expense 2,000 38,000 Taxable income 290,391 Taxes (34%) (98,732.94) Net Income 191,658.06 Dividend 80,000 Addition to retained earnings 111,658.01

From Income Statement, calculate for

Financial ratio

Liquidation Ratio1. Current Ratio current Asset current Liabilities

482000 180000 2.68

2. Quick Ratio current asset - inventory current liabilities482000 - 10000 180000 2.62

3. Cash Ratio cash current liabilities300000 180000 1.67

Asset Ratio1. Inventory turnover cost of goods sold inventory

413900 10000 41.39

2. Day's sale in receivable 365 days inventory turnover365 days 41.39 times 8.82

3. Total asset turnover sale total asset960000 482000 1.99

Profit1. Profit Margin net income sale

290391 300000 0.97

2. ROA net income total asset290391 482000 0.602471

3. ROE net income total equity290391 774291 0.375041

Break Even Point

Cost of goods sold = 413,900 / month Customer number = 320 people/ day Customer=9,600 people/ month So Break Even Point is 43.115 THB/dish

Menu Price Break Even Point

Profit Profit * Customer/month

Steak 7 sauce

If we sold steak 7 sauces in Break Even Point prices, we haven’t profit. So if we sold this price= 99THB. , We have a profit = 55.885 THB. /dish

NPV

Months 0 1 2Initial cost 482,000.00-฿ Revenue 960,000.00฿ 960,000.00฿ Cost 413,900.00-฿ 413,900.00-฿ Net in Flow 546,100.00฿ 546,100.00฿ SalvageNet cash flow 546,100.00฿ 546,100.00฿

NPV

Payback period Month 0 1 2

482,000.00-฿ 400,000.00฿ 500,000.00฿ 1

0.1641.164 Months

Payback period

ARR

Month1 Month2

Revenue 960,000.00฿ 960,000.00฿ Expense -฿ 38,000.00 -฿ 38,000.00

Earning before depreciation ฿ 922,000.00 ฿ 922,000.00Depreciation -฿ 7,709.00 -฿ 7,709.00

Earning before taxes ฿ 914,291.00 ฿ 914,291.00Taxes (34%) ฿ 310,858.94 ฿ 310,858.94

Net income ฿ 603,432.06 ฿ 603,432.06Average income 603,432.06฿ Average book value 241,000.00฿

Average account return 250%

The Average accounting return:AAR

IRR Internal Rate Of Return :IRR

Month Cash Flow 0 (482,000.00) 1 400,000.00 2 500,000.00

IRR 51%

Sensitive Analysis Worst Case

bonito batik company Cost increase 20% @All Bonito Batik company

Statement Pro Forma of Cash Flow For the ended month, August 31, 2010 (TH Baht)

Cash flow operating activities Cash receive from customer ฿ 960,000.00 Cash paid for supplies ฿ 496,680.00 Cash paid for employee ฿ 210,000.00 Cash paid for utilities ฿ 45,600.00 Net cash provided by operating activities ฿ 1,712,280.00 Cash flow from investing activities Purchase of equipment -฿ 482,000.00 Net cash used by investing activities -฿ 482,000.00 Cash flow from financing activities Investment by owner ฿ 300,000.00 Net cash provided by financing activities ฿ 300,000.00 Net increase in cash ฿ 1,530,280.00 Cash balance, August 1, 2010 0.00 Cash balance, August 31, 2010 ฿ 1,530,280.00

NPV


Worst case

Sale decrease 20 %

NPV

Months 0 1 2

Initial cost 482,000.00-฿ Revenue 768,000.00฿ 768,000.00฿ Cost 413,900.00-฿ 413,900.00-฿ Net in Flow 354,100.00฿ 354,100.00฿ SalvageNet cash flow 354,100.00฿ 354,100.00฿

Cash flow from operating activities Cash receive from customer 768,000.00฿ Cash paid for supplies 413,900.00฿ Cash paid for employee 210,000.00฿ Cash paid for utilities 38,000.00฿ Net cash provided by operating activities 1,429,900.00฿ Cash flow from investing activities Purchase of equipment 482,000.00-฿ Net cash used by investing activities 482,000.00-฿ Cash flow from financing activities Investment by owner 300,000.00฿ Net cash provided by financing activities 300,000.00฿ Net increase in cash 1,247,900.00฿ Cash balance, August 1, 2010 0.00 Cash balance, August 31, 2010 1,247,900.00฿

Statement Pro Forma of Cash Flow @All bonito batik company

For the Ended Month, August 31, 2010 (TH Baht)

Best case

Cost decrease 20%

NPV


Cash flow from operating activities Cash receive from customer 960,000.00฿ Cash paid for supplies 331,120.00฿ Cash paid for employee 210,000.00฿ Cash paid for utilities 30,400.00฿ Net cash provided by operating activities 1,531,520.00฿ Cash flow from investing activities Purchase of equipment 482,000.00-฿ Net cash used by investing activities 482,000.00-฿ Cash flow from financing activities Investment by owner 300,000.00฿ Net cash provided by financing activities 300,000.00฿ Net increase in cash 1,349,520.00฿ Cash balance, August 1, 2010 0.00Cash balance, August 31, 2010 1,349,520.00฿

@All bonito batik company Statement Pro Forma of Cash Flow


Best case

Sale increase 20%

NPV

Months 0 1 2Initial cost 482,000.00-฿ Revenue 1,152,000.00฿ 1,152,000.00฿ Cost 413,900.00-฿ 413,900.00-฿ Net in Flow 738,100.00฿ 738,100.00฿ SalvageNet cash flow 738,100.00฿ 738,100.00฿

Cash flow from operating activities Cash receive from customer 1,152,000.00 ฿ Cash paid for supplies 413,900.00฿ Cash paid for employee 210,000.00฿ Cash paid for utilities 38,000.00฿ Net cash provided by operating activities 1,813,900.00฿ Cash flow from investing activities Purchase of equipment 482,000.00- ฿ Net cash used by investing activities 482,000.00-฿ Cash flow from financing activities Investment by owner 300,000.00฿ Net cash provided by financing activities 300,000.00฿ Net increase in cash 1,631,900.00฿ Cash balance, August 1, 2010 0.00 Cash balance, August 31, 2010 1,631,900.00฿

@All bonito batik company Statement Pro Forma of Cash Flow


Conclusion Our company have a success in target and profit increase more last month. And have more customer , @ bonito batik company is popular company in area. ARR on second month is 250 % , IRR is 51 % , Payback period is 1.164 month , ROA is 60 % per year more than ROA of target . Therefore, the result happen make impressed in the business.

Chapter 6

Risk Management

Business Risk Analysis

A business risk is very important to do business which a circumstance or factor that may

have a negative impact on the operation or profitability of a given company. Because of price

of gasoline increase, then each company is increased the outcome. Profit and income are

grown down. Each a business must solve the problem. There is the competition and try to

build the prominent point to the business of oneself, both of in the promotion and building

strategy. The Company has identified the risk which may affect operations such as the sales

and production risk, human resource risk, financial risk, planning and information risk.

Meeting and planning to resolve problems found in each. To be adjusted and used to sell

products to customers next time. And development of the company to be targeted. To reduce

the risk that the company must be meet in areas such as finance, marketing, sales,

competitors, and resources for production. Factors affecting the risk of many-sided. Risk of

human resources. We are a company with a small number of employees in the design.

Marketing risk. We have to compete with rival business. It must find customers and sell

products as possible. In order to expand its market and its products in export. Risk of

financial planning. We need to plan and budget for each production. To think of profits and

cost of production. But our company is meeting and consultation with employees. And

helped solve problems encountered at a time until completion well. Because the cooperation

of employees in the company. Brit made through any possible issue. Most importantly, the

company can keep track of news that would benefit the company in the business. To receive

benefits. We know the world economy, and plan on doing business correctly. And benefit as

much as possible

PEST Risk Analysis

Political

Government is a key leadership role in creating prosperity to occur. Across all

regions of the country and create a quality of life of Thai people have always been and also

has incentives to accelerate the tax support. Developing export tourism industry is affect the

economy, Country’s growth and people have a job with more income and poverty.

The Government recognizes the important business of the Alliance can not help

business development and other important countries of Thailand. In a Public Organization in

major agencies in developing and promoting marketing tourism award in Thailand to

generate income from tourism to the country level. Process of government the service was

launched.

Most of the Thai people exhausted. Local government must take measures and rights,

benefits tax. To support, modifying growth business investment of private sector in Chiang

Mai, Rights and benefits of tax Chiang Mai Municipality will use the tool. Promote the

changes in the ceramic business. In a separate principle, 2 way is to tax and tax breaks that

are in jurisdictions. Operators interested in investing or expanding investment. The financial

cost is lower by the tax exemption or modification to specific types of activities will support

the development of business and tourist streets of Chiang Mai achieve goals.

Economical

Current world economic conditions. Considered in the recovery period. Because every

country around the world are adjusted for a severe economic slump. Reducing interest. To

stimulate the economy is the way other countries experiencing serious adopted a suitable

private sector investments to take this opportunity to remove start investing in businesses.

Thailand in the past. The crisis is reasonable. Which caused problems. Whether the

global economic slowdown. Political problems. And stability of government. Including issues

of investor confidence. Resulted in the country's economy straight down horribly, however,

considered Thailand's economy. I tend to have faster recovery. Because the government to

resolve the issue. And economic policies are driving fast. Whether a policy loan. To add to

the economy. And the importance of driving. Thai budget strong. Which resulted in

investment in many industries.

A major tourist attraction of the two countries underscores the Business Tourism.

Provinces are deemed ready to serve tourists in this category. As a province with many hotels

serve and attractions that are popular in the world. If you are finished will result in economic

growth. Not only in the province. But also to the overall economy of the country, another

important part. That will develop tourism in the project. Visitors come to support this

business, especially in Chiang Mai. Whether to open the airline directly into a 5-6 Chiang

Mai airline or driving Health "hub Medical Health Care," along with a city popular in the

world is to serve the city of Chiang Mai.

Technology

Department of Science Service is research and Experiments in batik technology to be develop

manufacturing processes and Quality of Fabric and products and also broadcast to the

audience. This action of the Department of Science Service helps reinforce basic science and

technology performance of the country strong. The Department of Science Service has set

guidelines for the research and development, industry medium-sized (SME) for sustainable

development and new knowledge to use in developing and industrial. Rural economies and

societies of the country flourish.

Internet

We used to communicate information within and outside agencies to reduce the steps at

work cause convenience correct operation of the organization. Working with the Internet is

part of the organization will be successful in operating high. It can be used to contact

customers directly but on the other hand is the cost higher. If you want a quality system cost

will upward with.

Transportation

Used in moving and transporting goods from factory to customer. The implementation of

computer and technology help to convenient and Speed of the transport. Affect the

transportation is efficient. The company has won the trust and confidence of customers.

When the move, Transportation and good and on schedule.

Infrastructure

Because of the company are components of the electronic system Infrastructure

technology is worth more. Costs in procurement are more maintenance, respectively. But the

part that God will have advantages in advanced manufacturing. Meet customer needs.

Information Technology

IT has been used in the management applied to cause the operation. Effective and making

decisions in operations management are corporate survival.

Social

The company is located within the source business reputation and area where the

government has supported Chambers. There are also other companies located nearby and

neighboring provinces also. Factors include the cultural aspects that are the same culture and

they have good health consciousness, population has growth rate, career attitudes and

emphasis on safety. Trends in social factors affect the demand for a company's products are

high and company can operates as well. Furthermore, companies may change various

management strategies to adapt to these social trends.

The Factors of Business Risk

Risk factors that affect the Batik industry, the current cost of production increased by

economy the price of goods has increased. And batik became increasingly popular. Batik

today is a product of the most popular in the market. Especially the international market such

as U.S. European countries, Australia and Japan. Batik imports from Thailand to sell in the

form of finished products. Because of the economic recovery of the countries. The U.S.

economy clear and consistent recovery. While the recovery of the Euro and the Japanese

started low, the U.S. inflation rate. Lower food prices lower. The inflation of the euro

countries, accelerating slightly, but remains low. As with the price level in Japan increase

slightly but remain negative on oil price increases in recent years. Due to the uncertainties of

the global economy and domestic political problems. Volatility of the baht and capital flows.

As well as other natural disasters. The index of consumer confidence dropped. Investors and

tourists to reduce trade and travel. Production volumes for the Company's products less and

less order. Affect the company. Caused losses in investment as a Business batik. Because the

money is not constant. The loss of profit on goods to be exported. And cost in the production

of batik is higher. Pose a risk to investors.

In Thailand there are many companies that export batik. The network is important

southern Thailand. Phuket. The leading producers and exporters sell Batik most. We have led

the company to invent new patterns that differ from Phuket. The company is located in

northern Thailand. We have patterns of batik pattern of Lanna art. This is different from

Phuket Make it attractive to foreigners more.

Given such risk factors, the Company have focused on market to help our business has a

certain position and can develop our market and has maintained profitability in the long run

with increased efficiency of production cost management.

The risk management from competitive in the business

From the problem of economic slow down and entrepreneur in countries increase more than

consume needs. It may result in batik industry of the market competition more intense so

increase for capacity in competition management department concern to the process of

research and development for decrease production capital. So the company will develop the

products has colors beautiful, new desire format and decrease the capital then concern to

customer requirement. Consist in the company have high produce production then minimum

of production per unit lower. The company has own channel distributions to sell the product

to the contractor. Therefore the company can accept risk management competition in the

price of sell. In addition, export markets, the company have not sold because it seriously

needs in the country before, if the remaining capacity of the company to expand its exports to

increase again.

Risk Factors on Sales and Production

In nowadays, the economy worldly crisis has many lateness and there are many problems

price competition and rapidly changing design and production which are competitive the

worldwide. The order product began to find scarce because the materials are expensive and

hard to find in short supply. In large countries, it is growing each the country will also keep

the cost of goods does not raise the price more and to maintain the liquidity of the product

quality as well. Our company has preceded the policy for decreases the risk of the human

resource to keep as follow:

- The Company has its own product design and development innovative products to always.

- Our company has diversified price to various for easy to customer’s decision.

- Our company will increase the financial position to have tough competition and have more

financial flexibility.

Human Resource Risk

The personnel who have skill in designing goods and industry batik rather have limited. Also

the new personnel development until they are fully capable of producing affordable quality

products and unique with competitive prices in the market will generally take time. In

addition the number the specialist and who have an experience of design in the batik industry

is still limited compared to the export values of the Phuket’s batik.

The company has preceded the policy for decreases the risk of the human resource:

- The Company has an excellent human resource development and trained to educate

and instill a modern morality to the personnel officer.

- Provide the knowledge and expensive to the personnel.

- Commitment to the develop human resources to new personnel.

Financial Risk

To adapt to cope with to the financial risk is pertaining to policy, practice financial,

technique, management and arising in the current is very important to investors, Thailand's

financial markets in the future. The expectations of reward on investment may become one of

the investment decisions but the risk management is a very important, also becomes to the

direction for the development of financial markets in Thailand. By learn to changes in

demand and supply of investment in the financial markets always.

As the Company engages in designing and selling batik products to tourists markets, the new

product of company could be subject to tourist’s decision from product pricing and product

trend to attractive tourists group to buying.

The business is a new business should have knowledge and experience to do the business.

We should avoid high-risk business. If will bring products to market, at least must have

acceptance products evidence from target customer and have must to are the products that

have done market test already. Financial policy, in the growth of the business must have the

stability and trustworthy by consider the growth from the profit of the business. If the

business has the problem and has necessity must build a debt, the first thing to consider is the

ability of repayment.

Risk Factors on Information The result of information technology advancement and growing contacts with customers

through the Internet, the Bonito Batik Company has realized its information network is

probably subject to accessibility by the outsiders who are not related or authorized to the

Company’s information system which may later result in damages and losses to the

Company‘s important database used routinely run the Company’s administration.

So, Bonito Batik Company has pursued policy to reduce risk from information such as

- Focus the tools used to check the information of the company.

- Data backup information system as well as data recovery and data security systems.

Credit risk

The company has credit risk associated with trade receivables by the company has a

policy of credit as a precaution and a variety of customers.

Interest Rate Risk

Risks associated with interest rates due to interest rate changes. That causes damage to

the Company and its subsidiaries in the current period and next period.

The Company expects the impact of interest rate changes will be higher.

The method to the reduce risks are:

- should the careful bonds old long investment

- Investment in bonds guarantee by the government.

Foreign currency Risk

The Company expects the impact of exchange of materials because the company did not

borrow from abroad. But the company to risks from foreign currency exchange rates. So

companies have planned to decrease risk. By exploring new sources of national and

neighbors to find cheaper equipment and raw materials used in production.

Chapter 7

Feasibility Analysis Summary

Introduction Analysis Summary

Present of the batik products are more interesting in markets around the world which most

people in the world like arts product, passion for the art of painting designs on fabric. and

product be handmade. In Thailand there are many batik industries and Booths sales. It is one

of tops batik exporting in the world especially northern of Thailand at Chiang Mai province

has the unique design is different from Phuket province. There are many batik industries, and

it is the famous area. This kind of business is more interested and it is large in market demand

supporting in many local markets and global markets, and the trend of growth is likely

increasing. So it is the main reason that let us choose to invest in this business.

Bonito Batik Company limited is the name of own company and Bonito Batik Design is a

short name that it is easily for memorizing and name is catching the eyes. We focus in

establishing the company at Chiang Mai province especially on the มหิดล - หนองหอย road. We

focus on creating a new design to batik product. It is likely the batik center, we creates a lot

of various designs to batik products and batik industry such as clothing, decoration and gifts.

The company no needs to establish big factory because the cost of investment is likely high

and it is long time for profit return, so we try to make product designs and order to workshops

for hiring them produce products under the brand of Bonito Batik.

Industry Profile Analysis Summary

In Thailand batik sarongs are also designed as wraps for casual beach wear in the southern

Thai island of Koh Samui, batik is easily found in the form of resort uniforms and

decorations at many places, and is also used for the locals' casual wear in the forms of

sarongs or shirts and blouses. Today Batik is a product of the interesting in the market.

Especially the international market such as U.S. European countries, Australia and Japan.

Batik imports from Thailand to sell in the form of finished products such as clothing,

decorate and gift. Batik" is a unique art and craft of the South. That has been widely popular

for both Thais and foreigners. Because the eye-catching designs and vibrant colors, beautiful

batik is now popular not allergic to other types of fabric. Batik is a craft business can utilize

the skills that are exquisitely beautiful color drawing policy implementation and follow

patterns on the cloth, so as a concept to a group of shareholders that the success in business

after selling cloth. And Rick both wholesalers and retailers on behalf of Craft Batik by

ordering products from other high quality products and has been recognized as the high

quality product

Marketing Feasibility Analysis Summary

The Thai economy is currently characterized by a highly competitive market making

batik products must be developed constantly to meet the needs of today's consumers. The

products that tend to invest are clothing, gift and decorations that under the general market.

May be affect to Bonito Batik because the tendency of design is different with others

competitors batik products in the market, Especially Mahidol – Nhong Hoi road, Chiang Mai

because there are many tourists came to this place for buying clothing, gifts and decoration

that with the different of design combined with the cultural patterns in northern and painting

techniques that are different from other brands able to let customers come into the store and

buy many products. Moreover, other products of Bonito Batik are an attractive and

interesting tourist in terms of form and unique product.

The direct competitor in the batik product is not found at the company area that this

entire area batik market share is hold on our hands, if look forward at the whole of Chiang

Mai province that there are many batik companies. Overall are not serious problems for

Bonito batik because the most companies produce and design the batik product at same style,

no more different. And Batik products from Phuket to be benefit most from tourism but

design of phuket different Bonito batik because bonito create own design, we add combined

with the cultural patterns in northern and color painting techniques that are different from

phuket. In addition, manufacturers are not used in the community and mostly is making by

machine then it is a lot of the same design and outside markets. Besides, the most of

companies do the marketing as wholesale, so the most customers in the local area can not buy

the products as single unit.

The Middle age of tourists (age between 25-40 years old) that looking the batik

products for use by themselves, New Year gift, special day gift, and whatever festival, giving

people, decorating house and workplace. There are 470,000 middle age of man and 450,000

middle age of woman in Chiang Mai province and there are 5,313,352 tourists in year 2551,

4,343,090 tourists in year 2552 and year 2553 is expected 4.5 million tourists come to Chiang

Mai. According to Middle age behavior around the area and travel in Chiang Mai we found

that they have more money to pay and they spend more time for shopping with their family,

friends, group tour and they are looking for some things new, interesting, and different design

products. The most customers will be popular as souvenirs for friends, relation or get our

products to be sold to a foreign country.

The different point of products design, we focus to produce the product according to our

own designs, this combined with the culture of the north that there are three concept designs

to our gift, clothing and decoration for tourist group of customers. We try to study about

many companies products and create Bonito batik own design, we add combined with the

cultural patterns in northern and color painting techniques that are different from other brands

that is the main point of our products that 100% are not same with any batik companies in

Chiang Mai province

Technical Feasibility Study Analysis Summary The product of Bonito Batik are concerned about the design first because we try to

make the point of different from many competitors in market and present a new design of

batik into the market under the brand of Bonito Batik company. Bonito Batik focus on three

most popular shape of design, there are Fabric curtain, Handbag, and shirt concept design.

The entire product designs that we try to fix on the products shapes and follow the modern

trend in nowadays customer favor. Bonito Batik creates these designs for use by themselves,

New Year gift, special day gift, and whatever festival, they would get the high quality

product and may be the product that they make by themselves. Besides, there is a point that

different from other is the product add combined with the cultural patterns in northern and

unique color painting techniques a specific format of Bonito Batik company.

We choose Siva supply Co. to produce the Bonito Batik bag. From study about

production and operation of Bonito Batik business, we foresee to build this business because

of we have employees who are skilled in the art and readiness to work in this Business, and

combination of manufactures and customer design for customer to participate in the

production under the identity of Bonito Batik Company, we add combined with the cultural

patterns in northern and unique color painting techniques different from other batik

companies in Chiang Mai province.

From Income Statement, calculate for

Financial ratio

Liquidation Ratio1. Current Ratio current Asset current Liabilities

482000 180000 2.68

2. Quick Ratio current asset - inventory current liabilities482000 - 10000 180000 2.62

3. Cash Ratio cash current liabilities300000 180000 1.67

Asset Ratio1. Inventory turnover cost of goods sold inventory

413900 10000 41.39

2. Day's sale in receivable 365 days inventory turnover365 days 41.39 times 8.82

3. Total asset turnover sale total asset960000 482000 1.99

Profit1. Profit Margin net income sale

290391 300000 0.97

2. ROA net income total asset290391 482000 0.602471

3. ROE net income total equity290391 774291 0.375041

Break Even Point

Cost of goods sold = 413,900 / month Customer number = 320 people/ day Customer=9,600 people/ month So Break Even Point is 43.115 THB/dish

Menu Price Break Even Point

Profit Profit * Customer/month

Batik

If we sold Batik in Break Even Point prices, we haven’t profit. So if we sold this price= 99THB. , We have a profit = 55.885 THB. /dish

NPV


NPV

Payback period

Month 0 1 2

482,000.00-฿ 400,000.00฿ 500,000.00฿ 1

0.1641.164 Months

Payback period

ARR

Month1 Month2

Revenue 960,000.00฿ 960,000.00฿ Expense -฿ 38,000.00 -฿ 38,000.00

Earning before depreciation ฿ 922,000.00 ฿ 922,000.00Depreciation -฿ 7,709.00 -฿ 7,709.00

Earning before taxes ฿ 914,291.00 ฿ 914,291.00Taxes (34%) ฿ 310,858.94 ฿ 310,858.94

Net income ฿ 603,432.06 ฿ 603,432.06Average income 603,432.06฿ Average book value 241,000.00฿

Average account return 250%

The Average accounting return:AAR

IRR

Internal Rate Of Return :IRR

Month Cash Flow 0 (482,000.00) 1 400,000.00 2 500,000.00

IRR 51%

Sensitive Analysis

Worst Case

Cost increase 20%

NPV

Months 0 1 2


Worst case

Sale decrease 20 %

Cash flow from operating activities Cash receive from customer 960,000.00฿ Cash paid for supplies 496,680.00฿

Cash paid for employee 210,000.00฿

Cash paid for utilities 45,600.00฿

Net cash provided by operating activities 1,712,280.00฿

Cash flow from investing activities Purchase of equipment 482,000.00 -฿

Net cash used by investing activities 482,000.00 -฿

Cash flow from financing activities Investment by owner 300,000.00฿

Net cash provided by financing activities 300,000.00฿

Net increase in cash 1,530,280.00฿

Cash balance, August 1, 2010 0.00 Cash balance, August 31, 2010 1,530,280.00฿

@All Bonito Batik company Statement Pro Forma of Cash Flow


NPV

Months 0 1 2


Best case

Cost decrease 20%

Cash flow from operating activities Cash receive from customer 768,000.00฿

Cash paid for supplies 413,900.00฿ Cash paid for employee 210,000.00฿ Cash paid for utilities 38,000.00฿ Net cash provided by operating activities 1,429,900.00฿ Cash flow from investing activities Purchase of equipment 482,000.00 -฿ Net cash used by investing activities 482,000.00 -฿ Cash flow from financing activities Investment by owner 300,000.00฿ Net cash provided by financing activities 300,000.00฿ Net increase in cash 1,247,900.00฿ Cash balance, August 1, 2010 0.00 Cash balance, August 31, 2010 1,247,900.00฿

Statement Pro Forma of Cash Flow @All Bonito Batik company


NPV

Months 0 1 2


Best case

Sale increase 20%

Cash flow from operating activities Cash receive from customer 960,000.00฿ Cash paid for supplies 331,120.00฿ Cash paid for employee 210,000.00฿ Cash paid for utilities 30,400.00฿ Net cash provided by operating activities 1,531,520.00 ฿ Cash flow from investing activities Purchase of equipment 482,000.00 -฿ Net cash used by investing activities 482,000.00 -฿ Cash flow from financing activities Investment by owner 300,000.00฿ Net cash provided by financing activities 300,000.00฿ Net increase in cash 1,349,520.00 ฿ Cash balance, August 1, 2010 0.00Cash balance, August 31, 2010 1,349,520.00 ฿

@All Bonito Batik companyStatement Pro Forma of Cash Flow


NPV

Months 0 1 2

Initial cost 482,000.00-฿ Revenue 1,152,000.00฿ 1,152,000.00฿ Cost 413,900.00-฿ 413,900.00-฿ Net in Flow 738,100.00฿ 738,100.00฿ SalvageNet cash flow 738,100.00฿ 738,100.00฿

Conclusion

Our company have a success in target and profit increase more last month. And have more customer , @ All Bonito Batik company is popular company in area. ARR on second month is 250 % , IRR is 51 % , Payback period is 1.164 month , ROA is 60 % per year more than ROA of target . Therefore, the result happen make impressed in the business.

Cash flow from operating activities Cash receive from customer 1,152,000.00฿ Cash paid for supplies 413,900.00฿ Cash paid for employee 210,000.00฿ Cash paid for utilities 38,000.00฿ Net cash provided by operating activities 1,813,900.00 ฿ Cash flow from investing activities Purchase of equipment 482,000.00 -B Net cash used by investing activities 482,000.00 -฿ Cash flow from financing activities Investment by owner 300,000.00฿ Net cash provided by financing activities 300,000.00฿ Net increase in cash 1,631,900.00 ฿ Cash balance, August 1, 2010 0.00 Cash balance, August 31, 2010 1,631,900.00 ฿

@All Bonito Batik companyStatement Pro Forma of Cash Flow


Risk Management Analysis Summary

The business is always risky. Depending on whether we will find a way to prevent and

solutions how to reduce the risk of doing business. Batik business has many risks, such as the

risk associated resource persons difficult. Risk of market competition. Risk investment

Financial risk etc. Station network risk factors these Companies plan to work. To affect

company. Impact on the company's profits to a minimum. To track news on all fronts. For the

benefit of the company. Reduce errors and reduce the problem to happen to the business.

Risk management will enable business success. And achieve the purpose of the set easily.

Reduce the problem to occur. To prevent damage, its business, and confidence to the

company.

Batik business have the risk of the several aspect, financial, management, the risk from

external environment, risk that the business cannot control, or new entry to competition in the

market. In part financial, if cost of cotton and the business is increase expenses, an

advertisement for encourage the sale, or freight, affect to the profit of the business is down.

Part of administration, should always give knowledge to an officer, for decrease error in

operating. Every problem are happen that can affect to operating of business, thus the

business is supposed to learn all, for prepare solve the problem that happens, and decrease the

risk which relation operating and can happen to every kind business.

Risk factors of the several aspects such as Risk Factors on Sales and Production, Human

Resource Risk, Financial Risk , Risk Factors on Information. Also the company will should

consider the risk that the business risk anything and will need to the figure out a policy to

resolve risks that arise.

Reference http://www.travel-phuket.com

http://info.matichon.co.th/rich/rich.php?srctag=07026150552&srcday=&search=no

http://www.tarad.com/batik8/

www.muslimthai.com/main/1428/content.php?category=19&id

http://www.ch7.com/news/news_thailand_detail.aspx?c=2&p=4&d=117291

http://classified.sanook.com/item/3922285

Appendix

Member Group

Ms. Patcharakon Chaiyong 5131207018

Ms. Alisa Ruanjae 5131207030

Ms. Atchima Boonpan 5131207031

Ms. Potchanee Junok 5131207072

Ms. Utaiwan Joosiri 5131207125

Documents

Bonito Batik Group 26 Section 2