Meesub market (draft)

7/29/2019 Meesub market (draft)

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Content

Introduction

-Background and Significance of the Project

-Project Objective(s)

- Benefits of Project Identify the benefits of this study

-Activities/Time Frame Gantt chart and Time frame of the study

Industry Profile

-Nature of Industry

-Situation of Industry

-Product/Service

Market Feasibility Study

- Market Analysis

-General Environment Analysis Political, Economy, Social and Environment, and

Technology

- Competition Analysis (3C Analysis)

-STP Analysis-Marketing Mix Strategy

-Sales Forecast/Profit Estimation

-Marketing Expenses (Sales Incentive)

-Conclusion

Investment Cost

-Cost of Investment-Pre

-Operating Cost-Investment Cost

Land

Buildings

Equipments

Tools


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Etc-Location

-Facility Layout

-Machine/Tools/ Equipments

-Depreciation

-Conclusion

Production and Operations Analysis

-Product Characteristics (in Detail)

-Specification, Feathers, Dimension, Life Time, etc.

-Production/Services Process- Operating Cost

Raw material Cost

Direct Labor Cost

Overhead (If Any)

-Logistics Management

-Facility Management

Administration analysis

- Management Analysis

Facility Cost (Electricity, Telephone, Fax, etc.)

Salary

-Conclusion

Financial Analysis

- Financial Assumption for Business.

Profit/ Loss Statement

Cash Flow

Balance Sheet

Risk Management-Identifying a list of potential risks.


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-A risk management plan included statement of how you plan to reduce risk.

- The steps that you will take to mitigate the risks.

-A risk management plan included statement of how you plan to reduce risk.

- The steps that you will take to mitigate the risks.

Summary


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Chapter 1

Introduction

Background and significant of the project

Chiang Rai province is located in the northernmost of Thailand. Surrounding provinces

are Phayao, Lampang and Chiang Mai. The north border of Chiang Rai is next to Shan

State ofMyanmar which has the highway cut through Myanmar in Mae Sai border that would

have the forth Thai-Laos Friendship Bridge at Chiang Khong in the future. In the northeast

border is next to the Mekong River and in the east is next to Luang Prabang Hill of Thai-Laos

border. Chiang Rai is a scenery town which is a big province in Thailand that has a large area

ranked as the 12th

of the country.

In the past, human society fosters itself by sufficiency economy system that every

household can produce and consume productivities within their family. In order to do that, they

use materials from natural resources in their local area even weave their own clothes. Then, the

society has become bigger and the productivities they produced are greater than their needs so,

that surplus has brought to exchange with other productivities the household cannot be

produce. At that time there is no certainly place where people can exchange their productivities

therefore they exchange their products at the source. After that, the society has been growing

and become a big city that has an influence on trading; the demand of products has been

increasing while trade has been expanding. Thus, there need to be a place where people can

exchange those products that is called Market. Fresh market is a distribution of products in

category of food and other consumer goods which are necessary for daily life.

From the definition of Public Health Act, B.E. 2535 (1992) in section 4, Market place

means a place ordinarily arranged for merchants to assemble to offer for sale goods consisting

of animal, meat, vegetable, fruit, fresh or already prepared or cooked food, or perishable

foodstuff, with or without other kinds of goods for sale, and includes an area arranged for

merchants to assemble to offer said goods for sale regularly or from time to time or on

appointed dates.

In the next three years (2015), Thailand will participate in the AEC completely. The

country will have an opportunity in order to import and export with 0% tariff. Thailand will be

the country of the tourist destination and the airline center of Asean. Chiang Rai province is the
http://en.wikipedia.org/wiki/Phayao_Provincehttp://en.wikipedia.org/wiki/Lampang_Provincehttp://en.wikipedia.org/wiki/Chiang_Mai_Provincehttp://en.wikipedia.org/wiki/Shan_Statehttp://en.wikipedia.org/wiki/Shan_Statehttp://en.wikipedia.org/wiki/Myanmarhttp://en.wikipedia.org/wiki/Myanmarhttp://en.wikipedia.org/wiki/Shan_Statehttp://en.wikipedia.org/wiki/Shan_Statehttp://en.wikipedia.org/wiki/Chiang_Mai_Provincehttp://en.wikipedia.org/wiki/Lampang_Provincehttp://en.wikipedia.org/wiki/Phayao_Province


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one of the province which has an effect from ACE. Because of Chiang Rai is the tourist

destination which has many beautiful and interesting places for traveler. Furthermore the

border of Chiang Rai is close to Loas and Myanmar. Chiang Rai also has an important port

which is called Chiang San Port. Becoming one of the countries which participate in AEC will

extend in a trend of the economics of Chiang Rai. This will cause to increase in purchasing

power of Chiang Rai people. So, to do a fresh market business might be a good alternative in

business because the life style and basic of life of people need food. This is the reason why we

choose the fresh market business.

Project Objectives

To bring out the business knowledge in order to create a business plan. To study the process of doing business including with all business activities. To be the alternative market for consumer in Chiang Rai province. To increase jobs and revenue for people in the province. To study the feasibility and opportunity of the fresh market in Chiang Rai.

Benefits of the project

1. Benefit for group members

To use the knowledge and gain more experience of the business. An opportunity to survey in a real situation for coordinating with different kind

of divisions which it helps to operate the business project.

To reinforce a skill of thinking that is step by step method.2. Benefit for customer To reinforce the local people to have a better quality of life.

To improve a standard of local people consumption.

To expand the economy. A lifestyle of people will change and go along with a behavior of goodwill.

3. Benefit for entrepreneur

For the entrepreneur who is interested in Fresh market investment, this projectcan be a guide planning of Fresh market.


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Chapter 2

Industry profile

Nature of industry

Market was founded in Thailand since Sukhothai period as the stone inscription said

Whoever wants to trade in elephants, so trades. Whoever wants to trade in horses, so trades.

Whoever wants to trade in silver and gold, so trades. It shows that trade is also occurs for a

long time started from an exchange of things like goods or other stuff. After that, there is a

regulation of determining something as a medium of exchange which are; cowrie shell, coin

and money in the present time.

Market in the former time is the economy source of Thai people because market is

known as the place where anything can be found. When you lack of something, you can find it

in the market. The market that has obvious evidence is the market in Ayutthaya period which is

the period that the foreign came to trade in Thailand. So, Thai people have a relationship with

trade for a long time.

The market is the place where people in the community come to contract with each

other in order to trade and exchange information so that it is a center of communication by land

and water. In every communities of the country, people who have involve in the market are

people who bring products into the market to sell and people who come to buy products such

as the end-users and retailers. People who related to the market are an entrepreneur or the

markets owner, trader, shipper, labor and the consumer who come to buy the product. At this

point, the market is an important business sector which can create more jobs and generate

income in economy system of the country.

Nowadays, there are changes in economy and society that encourage the expansion of

trade lead to many types of market such as clothes market, fresh market, flower market etc.

According to the fresh market, it is the place where people trade the raw materials used in

cooking, both fresh food and dry food and including instant food. In Thailand, fresh market can

be found in the area of communities around the country. The growth and the recession of fresh

market depend on the change in economy factors and social factors of each community such as

the change in transportation system from transport by water to by land, expanding of

community, crowded traffic system, high price of land, occurrence of a big and modern retail;


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department store, discount store and supermarket, and including the change of customer

behavior from preparing a meal at home to eating in the restaurant or consuming instant meal.

However, fresh market should be acquainted to people in that community and should be

convenience to travel to. The size of fresh market also depends on the size of that community

where the market located or depends on number of product placed in the market. Moreover, the

type of market is depends on environment and habitation of that community. For example, if

the community has communicated by water, the market would be known as floating market. If

the community has communicated by land, the market would be known as land market. In this

case, fresh market is the place of culture that shows the livelihood of people in that society.

(Source: http://www.stou.ac.th/study/sumrit/1-55/page3-1-55.html)

Situation of industry

According to the rapid growth hog the cities, people way of life has been change. An

increasing number of the supermarket and superstore affect to the change of customer behavior

including; increasingly focused on the convenience, more concern about health, wellness, and

safety food and consuming more ready to eat and prepared foods.

(Source:http://csi.mckinsey.com/knowledge_by_region/asia/rest_of_asia/thailands_modern_grocery_at_a_crossroads)
http://www.stou.ac.th/study/sumrit/1-55/page3-1-55.htmlhttp://www.stou.ac.th/study/sumrit/1-55/page3-1-55.html


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From this figure, it can be seen that the trend of the growth number of retail market or

supermarket in Thailand is gradually increasing. This situation influence to the fresh market

and many grocery shop significantly. In case of the increasing number of customer go to the

market. Although, there are increasing numbers of supermarket, most of Thai people still go to

the fresh market because of there are some local product that the supermarket did not have.

And the price of the product in supermarket is more expensive than in the fresh market which

conforms to customer behavior that more economizing and searching for value.

According to a preliminary survey, most of the popular fresh market has variety choices

of food such as vegetable, fruit, meat, dried food and etc. Moreover, most of them have a very

competitive pricing strategy which has a huge effect on consumer decision. However, there aresome weaknesses for those markets that they had over look. For example; bad water irrigation,

poor air ventilation system, unplanned zoning and improper parking space. It can be seen that

there still has a gap for some improvement and we will focus on turn their weakness into our

strength which provides a standard of structure by having a public utility system along with

clear divided zones and always keep a clear place because nowadays, most people in Chiang

Rai are more concern about the hygienic condition and the trend of goodwill has been changing

by time which means the lifestyle of consumption adjust to higher level. And this is the reason

why we are interested to invest on a fresh market.

From the discussion with the officer of Chiang Rai Municipal government, there are 12

important fresh market which under the control of the municipal. It can divide in to two

categories:

Private market

Sri-sai-moon Market Fah Sawad Market Nim Si Seng Market Den-Hah Market Ma-Na Market Baan Mai Market Pah Kong Market Huay Pah Gang Market Chock Chareun Market


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Municipal Market

Tet Sa Barn neung Market Tet Sa Barn Song Market (Sirikorn)

Almost of those markets that we indicated have different advantages and disadvantages.

Such as in some of those market has wide variety of products with a limited area. Due to the

crowded it causes problems about parking and traffic jam. In some market has a huge location

and a parking space but only a few people use their service. Because of the life style of Chiang

Rai people and their behavior, most of them have an easy life style and economical. They like

to expense their money with many alternative products.

So, doing a business in Chiang Rai especially in a fresh market business, we have to

know the customer behavior of Chiang Rai people. In order to construct a fresh market which

match with their life style and behavior.


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Product and service

Product

In the fresh market most of the product is fresh meat, sea food, vegetable, fruit and

prepared foods. Some of the products which cannot find in the supermarket such as local

vegetable and local food are founded in our fresh market.

Market with infrastructure

Market with non-infrastructure


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Service

Almost the fresh market in Thailand has an improper and unclear zone. Most of the

zone is depend on the relationship between sellers. For example, although they sell different

type of products but they have a close relationship and stay in the same zone. This causes the

disorganized and messy to the market. Moreover, most of the markets are lack of cleanness and

maintenance. For example in the fresh meat zone, there are some problems about dirty ground

and fishy smell. This cause people did not want to go to this zone of market. In some fresh

market located in the community with crowded people can cause the traffic jam.

Parking Public toilet


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Garbage pail Weighing scale

(Source:http://www.nwmc.go.th/market_1.html) (Source:http://www.teeteawthai.com/)


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Chapter 3

Market Feasibility Study

Market Analysis

General environment analysis

Political

According to ministerial regulations about market hygiene B.E. 2551 (2008) in section

1 that types of fresh market can be classified into 2 categories;

Category 1 : The market with infrastructure and operate regularly or at least once a week

which meets the requirements of Ministry of Public Health.

Category 2 : The market with non-infrastructure and operate regularly or at least once a week

which meets the requirements of Ministry of Public Health.

Fresh market of municipal government that plan to build or develop in the future must

be a market with permanent infrastructure classified as market in category 1. The market have

to be clean and sanitary, proper number of stall which is suit to local area condition and eating

culture and living of each region. The market has to be safe and easily access. Moreover, it has

to be a place that has no effect to environment and society nearby such as bad smell, polluted

water and trash.

However, there are three requirements under Healthy Market from Department of

Health B.E. 2551 (2008):

Environmental health requirement

The marketplace should be well-ventilated, floors in all market areas should be sloped

to drain and Infrastructure should be well-maintained in good and hygienic condition. Pathway

in the marketplace should be at least 2 meters width. Food and stuff should be placed for sale at

least 60 centimeters above the floor. All goods and equipment using in marketplace should be

placed properly and should be zoned. Each stall should have the number and the name of the

owner and they should be easily seen. Trash containers should be separated from garbage,

adequate in number, insanitary condition, and regularly cleaned. Toilet for male and female

should be separated, well-ventilated and free from bad odors. Wastewater treatment should


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meet the standard (for marketplace with area at least 2500 m or above). Pest control should be

conducted at least twice a year. Routine cleaning shall be done after each use every day and

sanitary cleaning should be conducted at least once a month. Person who sells merchandise

should perform good hygienic practices and dress with good personal hygiene during all

working periods.

Food safety requirement

All food sold in the market must free from 5 chemical contaminants; Borax, Formalin,

Salicylic acid, Sodium hydrosulfite, Beta agonist.

Consumer protection requirement

Person in charge for contamination screening test should be provided in designated area. It

should provide an information boards and weighing scale for consumers.

Chiang Rai government agencies can be divided in to 3 agencies.

1. The Regional Administration2. The Central Administration3. The Local Administration

Include: 1 City Municipal

26 Local Municipal

1 Provincial Administration

116 Locality Administration

The Mee Sub Fresh market is located and under the control of Chiang Rai City

municipal.

To be a standard fresh market must follow by the ministry of Public Health which is

mentioned about the structure of the market, location, store management, waste disposal

system and also health and environment standard. This point we have to concern on population

and the need of consumer.


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Economy

The economic circumstance of Chiang Rai at this time tends to expanded continuously

follow by the government policy which encourage people to spend their money such as;

increase minimum wage, raise the salary of government officer and reduce the corporate

income tax to raise the demand and the purchasing power. The investment of private sector in

Chiang Rai has been expanded to 17.1% due to the expanding and introducing of new project

of real estate business to support the economic expansion in Chiang Rai.

Moreover, there is an ASEAN Economic Community in 2015 which is an association

of ASEAN country to create their own market and production base. There is a freedom

movement of product, service, investment, capital and high skill labor. Besides, Chiang Rai isan important fortress area where is a stronghold in tourism and transportation due to the fact

that it has a boundary connected to many countries. From these economic factors, it shows that

establishing a fresh market is required by consumers.

(Source:http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Mana

gement_2_55.pdf)

Social

According to the increasing number of employment in Chiang Rai, people have more

income and more quality of life. It can increase in the purchasing power of people to buy the

product which match with their need. People in the Northern of Thailand has the characteristic

of living as a big family, living near their neighborhood, mutually depend on each other, has

simple lifestyle and still preserve the local culture and traditional custom. Although society

nowadays is developing to be urban society; an increasing of housing development,

development of technology and economy, but these change cannot cause an effect to the way

of live of people that much. Due to people in Chiang Rai has a simple lifestyle, they does not

live as a big family like in the past anymore. Nowadays, people are more concern on health not

only the older person but also working persons and teenagers. They also pay attention to the

healthy functional food in order to be good in health whether it is more expensive. People in

Chiang Rai living as a single family and still prepare the meal in their household. So, the fresh

market still is an alternative of Chiang Rai people to use the service in purchasing raw material

for cooking or other consumption goods. As mentioned above, it shows that fresh market

business still is required to meet the customers needs. To respond to the needs of customers,
http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Management_2_55.pdfhttp://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Management_2_55.pdfhttp://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Management_2_55.pdfhttp://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Management_2_55.pdf


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the entrepreneur has to focus on customer behavior and merchants or seller who rent the stall

and use the fresh market service, in order to survey the needs of customers in many factors. So

that, they can specify the form and characteristic of fresh market follow by the regulation and

customers needs.

The trend of employment (persons)

The trend of population in Chiang Rai

(Source:http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Mana

gement_2_55.pdf)

2550 2551 2552 2553 2554 2555

1180000

1185000

1190000

1195000

1200000

1205000

1210000

1215000

1220000

population

2 55 0 2 55 1 2 55 2 2 55 3 2 55 4 2 55 5

660000

670000

680000

690000

700000

710000

720000

730000

740000

Column 3
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Environment

In term of environment, Chiang Rai city has traffic jam in community areas. However,

the location of our fresh market has clear and nice weather and not crowded community since it

located on the bypass that close to government sectors, school, university and the airport that

suitable to build the market. Moreover, we found the building instruction of row houses has

been increasing even on the opposite and beside our Fresh Market which means this area will

become the crowd community in the future and also found the developed housing with 200

houses in the area around our Fresh Market.

Government Sectors

Tesaban 6 School


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Technology

At this time, technology and communication are growing that make the marketing

easily reach to the real customer more than ever. Since there are variety of alternatives in

receiving the information such as radio, television, newspaper, billboard and including internet,

therefore, our group has studied advertising method to introduce The Mee Sub market and

persuade sellers and buyers to know and come to the fresh market. The advertising can be

conducted through many types of technology which is suit to the geographic features and target

market behavior.

Row housing

Developed housing


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Competition Analysis

Ban-Du Market

Category Details

Location Bandu District, Muang, Chiang Rai

Surrounding 7/11, Banks, University

Amount of stall 500 stalls

- Meat 10 Sellers- Fish 6 Sellers- Others

Stall Payment - 2 Baht in the Moring since 4 a.m. 10 a.m.- 5 Baht in the afternoon since 1 p.m. 8 p.m.

General information Ban-Du is an economic area with the market is near the community

area and Chiangrai Rajabhat University. It is crowded in the

evening. Fresh products can be found in the morning and cooked

food can be found in the evening. The market planned to expand theflooring but cannot be done.

Pros- Convenience to stop by

Cons - There always has a traffic jam in the front of the marketespecially in the morning and evening which causes

accidents many times.

- It is not organized- There is bad smell of the garbage since it is no proper

storage.
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Pah Kor Market

Category Details

Location Phahon Yothin Rd., Rop Wiang District, Muang, Chiang Rai

Surrounding - 7/11 in both side of the road- Food area in the evening


- Meat 3 Sellers- Fish 2 Sellers- Vegetables, fruits, cooked food etc.

Stall Payment 10 Baht/stall

General informationPah Kor Market is a small market which is close to the community.

The market is open since 5 a.m. 10 p.m. and crowded in the

evening. Mostly sold cooked food. The area has a good commercial

interaction.

Pros- There are varieties of food for people who looking for

cooked food to be take home.

Cons - Traffic jam in the evening- No parking lot- Not clean- No waste disposal system


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Tet Sa Barn Neung Market

Category Details

Location Tet Sa Barn Neung, Thanalai Rd., Rop Wiang District, Muang,

Chiang Rai

Surrounding It is a trading center area of Chiang Rai; there are trading all the

time. It is near to Chiang Rai Clock Tower.


Stall Payment 50 Baht/stall

General information Because Tet Sa Barn Neung Market is the biggest market in Chiang

Rai, so there is a trade interaction all the time. There are Market

inside and Market outside.

Market inside;

- Open since 4 a.m. 6 p.m.- Product sold are; clothes, food, snack and grocery.- Some area also trade at night.

Market outside;

- Open since 2 a.m 8 a.m. in the morning.- Fresh products can be found in the morning e.g. vegetables.- Open 4 p.m. 3 p.m. in the evening.- Cooked food, vegetables, meat etc. can be found in the

evening.

Pros- There is a trade interaction all the time.- Good economic area

Cons - There is bad smell of the garbage.- It is quiet dirty and it is the source of pest such as mice.- The management is not so good such as drains, waste

disposal system etc.

- Unsystematic stalls which are trade on the road, it may causedangers to both sellers and customers.

- Traffic jam and Lack of parking lot.


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Huay Pah Gang Market

Category Details

Location Mae Sai Mae Fah Luang Rd., Rop Wiang District, Muang, Chiang

Rai

Surrounding 7/11 on the left and Lotus Express on the right


- Meat 2 Sellers- Fish 1 Sellers- Vegetables, cooked food, etc.

Stall Payment 300 Baht/Month

General information Huay Pah Gang Market is close to the community but not so

crowded since it is a small market. It is open since 5 a.m. 8 a.m. in

the morning and 3 p.m. 6 p.m. in the evening.

Pros- It is quiet clean.- Not crowded.

Cons - No toilet- No waste disposal system- Difficulty in traffic


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Baan Mai Market

Category Details

Location Baan Mai Crossroads, Rop Wiang District, Muang, Chiang Rai

Surrounding - Many stores aside- Lotus Express in the opposite- Close to Baan Mai community and St.Mary School

(Primary) Chiang Rai



Stall Payment Daily : 10 Baht/stall

Monthly : 300 Baht/stall

General information

Baan Mai Market mostly sell vegetables, fresh products, cookedfood in the morning.

Pros- Segment the parking lot between motorcycles and cars.- Convenience to stop by- Tidy and orderly- Good waste management

Cons- No toilet-

No cement parking lot


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Den-Hah Market

Category Details

Location Den Hah Crossroads, Rop Wiang District, Muang, Chiang Rai

Surrounding 7/11, Lotus Express



Stall Payment Collect both in the morning and in the evening 10 Baht/stall

General information Den-Hah Market mostly sells vegetables and cooked food. The

market is located under the building which is very stuffy.

Pros- Close to the community- Crowded people in that area- Good economic area

Cons - There is a traffic jam in the evening.- No parking lot- No toilet- Stuffy- Quiet dirty


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Nim Si Seng Market

Category Details

Location Next to the main road, Rop Wiang District, Muang, Chiang Rai

Surrounding Green Wing in the front and 7/11 on the left.



Stall Payment 20 Baht/day/stall

General informationNim Si Seng Market is a small market located in community area.

The customers who come to the market are local people in the

community. It is open since 5 a.m. 6 p.m. Cooked food can be

found both in the morning and in the evening.

Pros- Quiet clean- Developing market

Cons - Bad smell of garbage- Bad waste management- No safety parking lot- Dirty aside the market- No fences to prevent animals


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Sri-Sai-Moon Market

Category Details

Location 20 M.1 Rop Wiang District, Muang, Chiang Rai

Surrounding 7/11 on the left, Lotus Express on the right, and Glasses store in the

opposite.


- Meat 3 Sellers- Fish 2 Sellers- Fruit 4 Sellers- Vegetables, cooked food, etc.

Stall Payment Daily : 10 Baht/stall

Monthly : 300 Baht/stall

General information Sri-Sai-Moon Market is located in the community with crowded

people stop by so it is good trading area. Mostly there are make to

order restaurants and dormitory close to the market. It is open since6 a.m. 8 a.m. crowded people in the morning and in the evening.

Pros- It is located in the entrance way of the city which is close to

community and a lot of trading nearby.

- The market is not influence to the community since it is novillage there. Most people just come and go.

Cons - No parking lot- Dangers and Difficulty of traffic in the front of the market- Not clean- No fences to prevent animals- No segment of garbage and waste- The toilet only have 2 rooms

(Source: From our survey)


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According to the primary survey the table shows the strength and weakness of

competitors who open the Fresh Market companies in Mueng district Chiang Rai. We found

that, the most of Fresh Market weakness on the parking lot allocate of garbage, bad ventilate

air and zones dividing. However, they still have a strong strength such as place close to the

highway and in the center of community where is suitable for local people to drive or ride their

own vehicle from their place to the Fresh Market. The last but not least, we also found the

convenient store around the Fresh Market which is comfortable for customer of come at one

place and can get what they need to buy. Moreover, we are wonder why the customer still to go

the same market with the high weakness or they dont have other alternative of Fresh Market,

this is the reason why we are interested to do the Fresh Market with turning their weakness to

our strong strength which provides allocate of garbage with a good of ventilate air and having a

clear zone of products along with sink placed in the meat and seafood zone to customer for

washing their hands after buying the raw meat, parking lot is the important thing for customer

to have a convenient parking so they wont feel rush moving their vehicle. But the most

importantly is the variety product with a quality check and a fair price for customer which

based on Ministry of health standard in our Fresh Market to meet with customer needs.

Customer Analysis

The characteristic of the customers who come to the fresh market in Chiang Rai mostly

are; female, age 30 and above, working people including housewife who likes to expend and

purchase instant food and raw materials to prepare the meal in her household. Most of the

customers are price concerns and quality is significant in order to make decision too. Variety of

goods is also relevant.

Competitive Analysis

There are three competitive have found in the Fresh Market in Chiang Rai. First of all,

stall price rate of each Fresh Market is different because its depend on demand of retailer if the

Fresh Market has a cheap price of stall so, most of the retailer would like to get stall for their

product sales which means the demand of customer follow the retailer for buying products.

Second of all, the Fresh Market this got the award from Ministry of health to warranty itself of

a clean Fresh Market for customer to purchase, so this factor can increase the amount of

customer. Third of all, demands of customers are depending on the variety products in the

Fresh Market. If the Fresh Market have variety products sale, demand of customer will be

increased because variable market attracts customer to purchase at that market.


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STP Analysis

Segmentation

The segmentation of the users of Fresh Market can be classify in 3 categories by

segmentation from demographic including occupation, age and lifestyle;

1. A group of people age 15-22 years old or a group of student. The characteristics of thisgroup are; prefer convenience, emphasize on consuming instant food and mostly come

to fresh market in the evening to late night.

2. A group of people age 23-34 years old; mostly are working people or salary man suchas private sector employees, employees work in the government service etc. This group

of people has a hurry-up lifestyle that has no time to prepare the meal so, they tend to

consume instant food and come to fresh market in the morning since 6 A.M. to 8 A.M.

and in the evening since 4 P.M. To 10 P.M.

3. A group of people age 35-60 years old and above; female who is a housewife. Thisgroup of people tends to purchase raw materials to prepare the meal in the household.

Mostly, they come to fresh market in the morning since 4 A.M. To 10 A.M. and in the

evening since 3 P.M. To 6 P.M.

The segmentation of the users who are seller in the fresh market can be classified into 2

categories;

1. A group of sellers who want to rent the stall(s) in temporary.2. A group of sellers who want to rent the stall(s) in permanent.

Target Market

According to the segmentation of the fresh market, can be assumed that the target

market of the fresh market Mee Sub is a group of people age 35-60 years old and above;

female who is a housewife, because the behavior of this group of people that always comes to

the fresh market. And from the segmentation of the users who are seller can be assumed that

the target market is A group of sellers who want to rent the stall(s) in permanent.

Product positioning

1. Mee Sub Market would be one of the Very Good Level Healthy Market out of 228markets in Thailand.

According to the information from Thai Health Promotion Foundation (2012) shows

that there are 1,533 of fresh markets all over Thailand. Those markets which meet the

benchmark standard of Healthy Market are 1,302 markets that is 85 percent and can be classifyinto 2 levels; Good Level 1,074 markets and Very Good Level 228 markets.


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To be a Very Good Level (5 Stars), the market should be developed to be a Healthy

Market that meet three requirements under Healthy Market from Department of Health B.E.

2551 (2008):

1) The market has to meet the first 17 sections of Environmental health requirementsand other 18 sections or above which is not less than 35 sections in total.

2) The market has to meet the Food safety requirement.3) The market has to meet the Consumer protection requirement.

These are 40 sections of Environmental health requirement for Healthy Market;

1. Marketplace shall be well-ventilated.2. Stalls, pathways, and outside garbage storage areas or enclosures shall be kept clean.3. Floors in all market areas and proximity shall be sloped to drain.4. All drains in marketplace shall be opened. Although drains around the market shall be

kept covered with metal screens and easily cleaned.

5. Toilets shall be well-ventilated, to be free of obnoxious odors.6. Septic tanks are in sanitary condition.7. Routine cleaning shall be done after each use every day.8. Tap water shall be provided adequately.9. Toilets for male and female shall be separated.

10.

All goods and equipment using in marketplace should be placed properly. Do notobstruct the pathways.

11. Food and stuff should be placed for sale at least 60 centimeters above the floor.12. Sanitary cleaning should be conducted at least once a month.13. Public trash receptacles should be adequate in number, in sanitary condition, and

regularly cleaned.

14. Trash screening and grease trapping should be conducted before discharging to publicsewage system or environment.

15. Infrastructure should be strong and durable. Floors should be constructed of smoothdurable material and easily cleaned.

16. Post control shall be regularly conducted.17. Person in charge should take action in cleanliness and safety in marketplace.18. Light at the stalls should be at least 200 Lux.19. Stalls should be constructed of smooth durable and easily cleanable material, and at

least a height of 60 centimeters.

20. Each stall should have the number and the name of the owner and they should be easilyseen.

21. A trash receptacle should be present at each stall with sanitary condition and regularlycleaned.

22. Trash containers should be adequate in number, insanitary condition, and regularlycleaned.


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23. Water storage containers should be adequate in number for daily use.24. Toilets for male and female and sinks with soap should be clean, adequate in number,

and conveniently located.

25.

There should be a person in charge of cleaning toilet at least twice a day.26. Waste receptacles in the toilets should be durable and leak-proof material and kept incovered.

27. Pest control should be conducted at least twice a year.28. The number of pet and pest should not excess standard level.29. Goods should be zoned.30. Fire extinguisher should be adequate in number, placed in proper location, and easily

accessible.

31. Infrastructure should be well-maintained in good and hygienic condition.32. Traffic around the market should be properly provided.33. Person who sells merchandise or assistant should properly dress with good personal

hygiene.

34. Person who sells merchandise or assistant should perform good hygienic practicesduring all working periods.

35. There should be a designated place for comments from public.36. Pathway in the marketplace should be at least 2 meters width.37. Trash should be separated from garbage.38. A group or association of markets owners, persons who sell merchandise or assistants,

or consumers should be required.

39. Environmental or sanitary training course should be provided for persons who sellmerchandise or assistants.

40. Wastewater treatment should meet the standard. (for marketplace with area at least2500 m or above)

Food safety requirement

All food sold in the market must free from 5 chemical contaminants; Borax, Formalin,

Salicylic acid, Sodium hydrosulfite, Beta agonist.

Consumer protection requirement

Person in charge for contamination screening test should be provided in designated area.

The market also has information boards and weighing scale for consumers.

2. Mee Sub Market would be known as safe and clean fresh market where the productsfound are clean, safe, fresh, and free from any toxic residues and contaminant substances.

Mee Sub Market concerns about safety of consumers to reduce illness rate and death rate of

people in the area. Especially food is to be concern since food is an important factor peopleconsume every day which can be create and destroy a good health at all time. So, our market


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needs to collaborate with Ministry of Agricultural and Cooperatives, Department of Health and

community to provide safe and clean food for consumers.

2.1 Product Certification

In order to achieve this positioning, the sellers require Product Certification for agricultural

products and food from the Ministry of Agricultural and Cooperatives. Due to the institutes in

the Ministry of Agricultural and Cooperatives use the certification of agricultural products and

food as the same mark called Q Mark which represent the quality of agricultural products and

food as safe and high quality products. Moreover, it also communicate to consumers within the

country and trading partners from other country to trust in production system and agricultural

products and food which is meet the standard and to be accepted in other countries.

This Product Certification covers taking random samples, testing products, and inspecting

the product whether the product characteristics of quality and safety follow the agriculturalproducts and food standard or not. The safety standard concerns about toxic residues and

contaminant. Moreover, there is an assessment of operation system of the producers if they can

maintain their quality and safety of products or not.

The Q Mark symbol

The National Bureau of Agricultural Commodity and Food Standards (ACFS) suggest

that the size of Q Mark should not smaller than 15 mm. in order to be clearly visible and

readable by the naked eye.

The color of Q Mark

Color Code

Green C100,Y100BL60


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Figure 1 : An example of the appearance of Q Mark Type A.

Figure 2 : An example of the appearance of Q Mark Type B


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1. Certification Body (CB)

- Prepare condition of certificate- Identify type of certificate- Identify standard used

The process of issuing Q Mark

The assurance of operating system or to assure agricultural products and food can be

summarized as the steps shown in the chart below;

The chart of process of issuing Q Mark for agricultural products and food

Means the process of issuing Q Mark

Means the process of linking information as a central database

2. National Bureau of

Agricultural Commodity and

Food Standards (ACFS)

Consider

3. Give the code (Code No.3)

and Certification Body (CB)

4. Certification Body (CB)

issues the certificate

Submit

Incorrect or

incomplete

document

Document is correct and complete

Inform certificateinformation as the

central database


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2.1 Provide screening test for food safety

Under Food safety requirement of Healthy Market, the food sold in the market must

free from 5 chemical contaminants; Borax, Formalin, Salicylic acid, Sodium hydrosulfite, Beta

agonist. However, Mee Sub Market will collaborate with Ministry of Public Health to make

random inspection of 7 contamination substances including; Red meat catalyst, Borax,

Formalin, Salicylic acid, Sodium hydrosulfite, Beta agonist and repeated use of frying oil.

Besides, our market also has more inspections on drinking water quality, ice, microbial

pathogens and other contaminants such as Aflatoxin, Acetic Acid, synthetic coloring agent and

preservative agent. All these should be inspected every month.

Mr.Pachara KaewKla (2012), the coordinator of the strengthening mechanisms of food

safety project from Foundation for Consumers said Most of vegetables in general markets and

street stall found the residual of pesticide exceed the maximum rate for 38.1%. This is similar

to the result of the Department of Agriculture inspection which has a random check on

vegetables with the Q Mark. Moreover, the vegetables sold in supermarkets are also found

the residual of pesticide exceed the maximum rate for 43% while these vegetables sold in

higher price compared to vegetables sold in fresh markets for 2x-10x.

In this case, our market is realize for these safety to protect the benefits for consumers

and all these protections is aimed to meet customer satisfactions of our target market who

concern about healthy products.

3. The analysis of target market characteristic is the target that are housewives, female,age 35-60 years old and above who is healthy concern.

4. To specify the product position of the fresh market, using price and quality as thedetermination.


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Marketing Strategy

Integrated Marketing Communication

The important thing that should be focused on of the Fresh market business is tocommunicate the marketing activities to consumer to understand and accepted. Marketing

activities of Mee Sub Market are;

1. Public Relations and AdvertisingOur market will provide public relations and advertising on the new opening fresh market

in order to communicate and invite sellers and people who interested to sell their products in

the market. We offer some promotions to create the awareness and to persuade those sellers to

come and use our service. The tools we use in advertising are;

1. Advertising on local radio FM. 95.75 MHz 3,000 baht per month for the retailer who

want to rent stall at the Fresh Market 3 months between 01/05/2013 31/07/2013.

2. Local newspaper 500 baht/month (buy 1 month free for 1 month ads) for grand new

open fresh market 1 month between 15/07/2013 15/08/2013.

3. Three Radio cars advertising for 6 days between 29/07/2013 04/08/2013.

Total time for each car in 1 day = 9 hours

Driving time: 06:30am 09:00am/ 11:30am 13:30pm/ 15:30pm 18:00pm

- First car, will drive all the way from Maesai to Chiang Rrai

- Second car, will drive around down town Chiang Rai on the west side

- Third car, will drive around the city in Chiang Rai on the east side

2. PromotionFor buyers who come to buy the products in our market, we will provide an advertisement to

inform them about the strength of Mee Sub market that focus on facilities such as large area of

parking lot, cleaned toilet, proper layout of goods category for convenience of buyers. Also,

there are security officers who responsible to the safety of the market. These are the ways todraw attention from people to come to our market.

1. Advertising of free stall to retailer for the first 3 months sales board on roadside between

01/08/2013 31/10/2013.

2. Discount 50% price of stall on the agreement for the header who can find the retailer to sell

at the Fresh Market.


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3. Grand Opening

- Invite the under-secretary of a health ministry to open the Fresh Market on

01/08/2013 and test or measure the toxic value in the vegetables and fruits, which show how

safe and healthy of the products in our Fresh Market.

- Walking for Health activity, the distance start from our Fresh Market and will

end up at our Fresh Market within 2 km distance.

Grand slam: receive gold 0.50baht as a prize

Honorable mention 1: receive 5,000 baht

Honorable mention 2: receive 3,000 baht

Activity of students performance for Tesaban6

Price (Market with infrastructure)

Description Stalls Rent per month Total

Food court 20 2,00040,000

Prepared food 20 1,00020,000

Processed food 16 1,00016,000

Fresh food 64 2,000128,000

Fresh vegetable 30 600 18,000

Fruits 30 1,00030,000

Miscellaneous goods 20 2,00040,000


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Price (Market with non-infrastructure)

There are free areas for 100 stalls

Place

The Mee Sub Market

Location background

The fresh market will be located on the bypass of Chiang Rai province. This fresh

market will be located in the community which closed to the airport, the city hall, the school

and the Payao University (branch in Chiang Rai). We have contact with the land owner for

asking to buy the land. This land including with 25 acres 32 square meters. There are some

criteria in choosing the location;

Social and cultural factor

The location is close to the community.

The fresh market is consistent with characteristics of population around the area

together with participation that is not go against routine, religion and social

value of people in that community.

Environmental factor

The convenience entrance for the customer and the user.

The area is not crowed and can be continuously extended.

The area is open and ventilated.

The area is unaffected by pollution from noise, toxic fumes, sewage and odor.

Technical factor

1. It is convenience for transporting goods.2. It is convenience in case of labor and staff.3. It is easy to access and it will not have a traffic problem.

Trend of the community

Description Stalls Rent per day Total per day

Shop stall 100 50 5,000


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There is the growth trend of the community. There is an increasing number of the population.

(Source: http://www.sumc.in.th/images/document/20070607155210bifhc.pdf)

Sale Forecast


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Show calculation of each number from

Rent year 1-5

On cash (Baht)

*90% Cash receive is a forecast from asking accountant about number of account receivable in Bandu

market.

DescriptionStalls

(A)

Rent per

month

(B)

Promotion for

Header

(C)

Total rent

(AxB)-C = D

90% Cash

receive*

(Dx90%)

Food court 20 2,000 1,000 39,000 35,100

Prepared food 20 1,000 500 19,500 17,550

Processed food 16 1,000 500 15,500 13,950Fresh food 64 2,000 1,000 127,000 114,300

Fresh vegetable 30 600 300 17,700 15,930

Fruits 30 1,000 500 29,500 26,550

Miscellaneous

goods

20 2,000 1,000 39,000 35,100


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Show calculation of rent year 1-5

On credit (Baht)

*10% Account receivable is a forecast from asking accountant about number of account receivable in

Bandu market.

Show calculation of rent of shop stall (Baht)

Stall for year 1

Nov13, Dec13, Jan14, Feb14 5,000 Baht per day

Forecast 60% of total* (5,000 x 60)/100 Baht per day

Total of rent 3,000 Baht per day

Or total of rent (x30) 90,000 Baht per month

*60% are a forecast for opening new fresh market.

DescriptionStalls

(A)

Rent per

month (B)

Promotion for

Header

(C)

Total rent

(AxB)-C = D

10% Account

receivable*

(D x10%)

Food court 20 2,000 1,000 39,000 3,900

Prepared food 20 1,000 500 19,500 1,950

Processed food 16 1,000 500 15,500 1,550

Fresh food 64 2,000 1,000 127,000 12,700

Fresh vegetable 30 600 300 17,700 1,770

Fruits 30 1,000 500 29,500 2,950

Miscellaneousgoods 20 2,000 1,000 39,000 3,900

Number of Stalls

(A)Rent per day (B)

Total baht per day

(AxB) = D100 50 5,000


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Mar14,Apr14,May14,Jun14,Jul14 5,000 Baht per day


Total of rent 2,500 Baht per dayOr total of rent (x30) 75,000 Baht per month

*50% are a forecast of season example Mar57, Apr57 are a period of end of semester in the

school and our market is located near Tesaban6 School, and May57, Jun57, Jul57 are the rainy

season in Thailand.

Stall for year 2

Aug14, Sep14 5,000 Baht per day




*50% are a forecast of season example Aug57, Sep57 are the rainy season in Thailand.

Oct14-Dec14, Jan15-May15 5,000 Baht per day




*65% are a forecast for growth our market, and fresh market is a slow-growth or constant

business.

Jun15, Jul15 5,000 Baht per day





business, however Jun58, Jul58 are a period of end of semester in the school by according to

Chiangrai Montessori School about ASEANand our market is located near Tesaban6 School

and it is the rainy season in Thailand.

http://www.thaischool.in.th/57010002/newseducation/19004/
http://www.thaischool.in.th/57010002/newseducation/19004/http://www.thaischool.in.th/57010002/newseducation/19004/


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Stall for year 3

Aug15,Sep15 5,000 Baht per day





Oct15-Dec15, Jan16-May16 5,000 Baht per day

Forecast 70% of total* (5,000 x 70)/100 Baht per dayTotal of rent 3,500 Baht per day



business.







Chiang RaiMontessori School about ASEANand our market is located near Tesaban6 School

and It is the rainy season in Thailand.



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Stall for year 4






Oct59-Dec59,Jan60-May60 5,000 Baht per day

Forecast 75% of total* (5,000 x 75)/100 Baht per dayTotal of rent 3,750 Baht per day



business.

Jun17,Jul17 5,000 Baht per day






Chiangrai Montessori School aboutASEANand our market is located near Tesaban6 School

and it are the rainy season in Thailand.


Stall for year 5







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Oct17-Dec17,Jan18-May18 5,000 Baht per day


Total of rent 4,000 Baht per dayOr total of rent (x30) 120,000 Baht per month


business.







Chiangrai Montessori School about ASEANand our market is located near Tesaban6 School

and they are the rainy season in Thailand.


Year Sale (Baht)

1 3,319,800

2 4,541,400

3 4,631,400

4 4,811,400

5 4,721,400

Table: conclusion of Sale in 5 years
http://www.thaischool.in.th/57010002/newseducation/19004/http://www.thaischool.in.th/57010002/newseducation/19004/


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Marketing Expense

This is no marketing expense in year 2, year 3, year 4, and year 5 because we wont have any marketingactivities

Conclusion

From the market analysis in term of Environment, Social, Economic, Technology and

Political Analysis founded that Mee Sub Market has an opportunity to grow and success in this

business. Mee Sub Market has the competitive advantage on the location. It located in a wide

open area with a parking space. Mee Sub market positioning on the cleanness, the

conveniently, the variety of product with the quality price. The target market of the product is

woman who has 35-60 years old. Mee Sub Market use IMC strategy to communicate with

seller and consumer. It also provide the benefit which suitable for sellers. Moreover, from the

information, we forecast that the income received from sale is continuous increasing.


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Chapter 4

Investment Cost

Cost of Investment

Pre-operating CostPre-operation

No. Documents Copy Qty Cost/Baht

Step 1: Contact City Municipal (Department of Public

Works and Town & Country Planning)

Documentation of construction permits(Form .1)

1.1 Identity Card 1 0.251.2 House registration 2 0.50

1.3 Land title deed (title deed, 3., 1 2.00

actual size paper(front-back)

1.4

License for Architecture (fellow

architecture 1 277,705.05

or second level)

1.5 License for Professional Practice or 1 277,705.05

Controlled Engineer Lincence (

Diploma,

Identity Card, Licence)

1.6 List of Engineering calculations 1 158,688.86

1.7

License for Civil Engineer or

Architect 1 277,705.05

1.8

Blueprint or Construction

drawings 3 15.00

1.9 Layout plan 3 15.00

1.10 Form .1 fee 1 2,963.00

Step 2: Airport office

2.1Construction permit for hover craftarea -

*Identity Card 1 0.25

*House Card 1 0.25

Step 3: Provincial Electricity Authority &

Provincial Waterworks

Authority

3.1

Installation for temporary

electricity 26,000.00

*Cost of insurance = 6,000.00*Installation of 15 M 3 Fed rate:


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6.4343

20,000 baht

(6,000+20,000)

3.2

Installation for temporary water

supply 12,190.00

*Cost of insurance = 4,700.00

*Installation fee = 7,490.00

(4,700+7,490)

Step 4: Land -

4.1 Land (5)

4.2

To construction the Fresh

market

Step 5: District Office

5.1 Office registration number

*Form 0.1 construction permit 1 0.25

*Identity Card 1 0.25

*Own house registration 1 0.25

*Land title deed(front-back) 1 1.00

*Layout area map 1 5.00

*Photo of Layout area(color) 2 10.00

Step 6: Provincial Electricity Authority &

Provincial Waterworks Authority

and

TOT (office telephone &

internet)

6.1

Installation for permanent

electricity

*Cost of insurance = (6,000.00) -6,000.00

*Metre 1 4,621.50

*Transformer 50 KVA 1 250,000.00

*MDB (80M) 1 50,000.00*Expand high voltage system 100

SQM = 500,000.00

100,000 baht (500 SQM*100,000)

*Expand high voltage system into

the 250,000.00

building

6.2

Installation for permanent water

supply

*Cost of insurance = (4,700.00) - 4,700.00

*Installation fee 1,070.006.3 Installation for the telephone and 374.50


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internet

line

Step 7: District Public Health Office7.1 Public Health permit 1 20.00

Step 8: Opening the Fresh Market -

Step 9: Tax registration

9.1 House and building tax -

(contact after 1 year opening)

9.2 Signboard Tax -

(contract within 15 days after

opening)TOTAL 2,078,393.01


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Calculation

1.4 License for Architecture (fellow architecture

or second level)The rate of percentage is from Act of Architecture legislation 2542

Budget X 1.75% = Price

15,868,860 x 1.75% = 277,705.05 baht

1.5 License for Professional Practice or

Controlled Engineer License

The rate of percentage is from Act of Architecture legislation 2542


15,868,860 x 1.75% = 277,705.05 baht

1.7 License for Civil Engineer or Architect

The rate of percentage is from Act of Architecture legislation 2542


15,868,860 x 1.75% = 158,688.86 baht

1.8

Blueprint or Construction

drawings

Budget X 1% =

Price

15,868,8860 x 1% = 277,705.05 baht

1.10 Form .1 fee

Building area = 1,664 SQM

Parking lot = 462 SQM

Toilet area = 144 SQM

Signboard = 18

SQM

Paper fee = 20

baht

* Building higher that 2 stories but not exceed than 12 SQM pay

Area 1,664 SQM x 0.50 baht = 832 baht

* Parking lot

Area 462 SQM x 0.50 baht = 231 baht

* Culvert of building which includes toilet

Area 1,664 SQM + 144 SQM = 1,808 SQM x 1.00 = 1,808 baht

*Sign board 18 SQM x 4 baht = 72 baht

From .1 fee832+231+1,808+72+20 = 2,963 baht


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Investment cost1. Land

We plan to buy 25 million for land. The land size is equal 9,456 square meters.Although the land is quite expansive and has to spend a lot of money to invest it, this

land is near a main road. Moreover, around the zone is beginning commercial building

and is constructing road. So, investing for the land can provide a lot of benefits for

investors in the future.

Cost of Land is 25 million baht.

2. BuildingBuilding

Order Option building Quantity Unit Price/Unit Total

1 Concrete work for office and

toilet

- Floor

146 Square Meter 2,450 357,700

Order Core building Quantity Unit Price/Unit Total

1 Concrete work

- Floor- Pillar- Stall

1,980 Square Meter 2,450 4,851,000

2 Roof work 1,980 Square Meter 1,980 3,920,400

3 Color work 1,980 Square Meter 50 99,000

4

5

Miscellaneous

Name board (200cm*900cm)

1,980

-

Square Meter

-

500

25,000

990,000

25,000

Total 9,885,400


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- Pillar- Wall

2 Roof work 48 Square Meter 1,980 194,040

3 Color work 146 Square Meter 50 7,300

4 PVC door 0.60x1.80 m. 50 Set 1,530 76,500

5 Office glass 5 Square Foot 80 400

6 Concrete work for parking lot 260 Square Meter 2,450 646,800

7 Electricity work 9,240 Square Meter 500 4,620,00

0

8 Water supply 10 Spot 1,000 10,000

Order Option building Quantity Unit Price/Unit Total

9 Wastewater treatment work

- Wastewater treatmenttank 1800 liter

- Grease trap tank- Grease trap & waste trap

well

- Reinforced ConcreteDrain

- Total wage

2

2

1

178

-

Set

Set

Set

Meter

-

22,920

3,925

3,000

144

13,398

45,840

7,850

3,000

25,632

13,398

Total 6,008,460

Total 15,893,860


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Location

Location

Mee Sub Market is located on the bypass of Chiang Rai province. It located in the

community which closes to the airport, the school, the university and the local government

office.


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Equipment


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Meat,Pork

Chicken,

Fish,

SeaFood


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Processedfood,

Vegetable,

Fruit

Miscellaneous

goods


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Foodcourt


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We plan to use these equipments to run our business. These equipments will be used in our

office, market building and other area in our market.

1. Office equipmentNo. Picture Equipment Brand/Detail Price/Piece

(Baht)

Amount Total

1 Monitor with

Keyboard

and Mouse

HP Omini 120-

1228L PC Intel

Pentium G870

(3.1 GHz 3 MB

L2 Cache)

15,265 1 15,265

2 CPU HP Desktop PC

Pavillion HPE

h8-1223l IntelCore i3 3-2120

15,990 1 15,990

3 Printer Brother printer

Color Inkjet

MFC-J430W

3,870 1 3,870

4 Telephone CK 2255 360 1 360

5 Air-Condition MITSUBISHIMS-MU-

SGH09VC No.5

8699-BTU

Econo Air

16,190 1 16,190

6 Office Desk TWC-1202/C 1,990 2 3,980

7 Office Chair-

850 2 1,700

8 Chair - 440 4 1,760


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9 File cabinetCenture CB-72

5,700 1 5,700

10 File Horse H-403

F/C

(6 Piece/Pack)

325 1 325

11 Stapler House HD-10 38 1 38

12 Security

camera

AVTECH

Set of 4 cameras

19,900 2 39,800

13 Paper punching Elephant DP-

480

61 1 61

14 Calculator CASIO

14digitals DJ-

240D

725 1 725

15 SocketData Power

WL45

290 3 870

16 Broom - 30 1 30

17 Dustpan - 25 5 125

18 LAN CAT 5 200 1 200


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19 Bin - 38 2 76

20 Chair - 650 2 1,300

21 Bicycle Bridgestonelococo

4,500 1 4,500

22 Radio

communication

IC-UV-95

DUAL BAND

VHF/245 MHz

1,600 2 3,200

23 Refrigerator Hitachi/ R-49 S

4.9 cubic

5,350 1 5,350

24 Voice

evacuation

panel

TOA/FS-7000EV

17,240 1 17,240

25 MicrophoneTOA/

PM-660

2,010 1 2,010

26

Electrical fan COSMO/

12" COSMOKAWA

390 1 390

27

Electrical fan HATARI/

HT-S18M2

1,098 1 1,098

28 MonitorAcer Monitor

18.5"

G195HQVBb

2,790 1 2,790

29

TV Toshiba Regza

LCD TV 24"

5,990 1 5,990

Total (Baht) 150,933
http://shoppingonline.bigc.co.th/it-electronics/home-entertainment/visual/toshiba-lcd-tv-24-24hv10t.htmlhttp://shoppingonline.bigc.co.th/it-electronics/home-entertainment/visual/toshiba-lcd-tv-24-24hv10t.htmlhttp://shoppingonline.bigc.co.th/it-electronics/home-entertainment/visual/toshiba-lcd-tv-24-24hv10t.htmlhttp://shoppingonline.bigc.co.th/it-electronics/home-entertainment/visual/toshiba-lcd-tv-24-24hv10t.html


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Note: Computer 31,255 Baht

Office equipment 119,678 Baht

-

Office supplyOffice stationary 5,000 Baht

Total cost of office equipment and supply (excluding cost of computer) is 124,678 Baht.

2. In the market buildingNo. Picture Equipment Brand/Detail Price/Piece

(Baht)

Amount Total

1 Scale Chicken

Balloon

60 kgs.

1,390 2 2,780

2 Fire

extinguisher

GLORIO

15 pounds

880 2 1,760

3 Broom - 30 10 300

4 Table - 790 24 18,960

5 Chair - 1,900/Dozen 8 15,200

6 SpeakerTOA/

TH-650

1,940 4 7,760

7 Driver unitTOA/

TU-651

960 4 3,840


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8 Matching

Transformer TOA/

TM-60T

1,590 4 6,360

Total (Baht) 56,960

3. Toilet- Equipment in toilet

No. Picture Equipment Brand/Detail Price/Piece

(Baht)

Amount Total

1 Urinal KARAT 1,958 5 9,790

2 Lavatory KARAT 931 6 5,586

3 Toilet KARAT 1,573 13 20,449

4 Toilet KARAT 3,370 3 10,110

5

Rinsing

spray

Hang 145 3 435

6 Bin - 18 15 270

7 Mirror 100 cm*200

cm

1,900 2 3,800


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8 Mirror Coolya 125 1 125

9 Bowl - 15 13 195

Total (Baht) 50,760

- Toilet supply (e.g. toilet brush, cleaning liquid etc.) 5,000 BahtTotal cost of toilet equipment and supply 55,760 Baht

4. Other equipmentsNo. Picture Equipment Brand/Detail Price/Piece

(Baht)

Amount Total

1 Container

for garbage

- 60,000 2 120,000

2 Bin OTTO- 120

liters

1,550 6 9,300

3 Road sign - 3,000 4 12,000

4 Brahma7 size

12,999 1 12,999

5 Pedestal-

17,000 1 17,000

Total (Baht) 171,299

Source: http://www.majestic-home.com
http://www.majestic-home.com/http://www.majestic-home.com/


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http://www.crhouseware.com

http://www.priceza.com

http://www.furniturehall.com

http://www.officemate.co.th

http://www.spksound.co.th

http://rungsubfurniture.tarad.com

http://enchchok.tarad.com

http://shoppingonline.bigc.co.th

Table: Total cost of investment

From the table show that total cost of investment is43,387,205.01 Baht.

Investment Amount

(Baht)

Depreciation Annual

depreciation

Monthly

depreciation

Pre-operating 2,078,393.01 - - -

Land 25,000,000 - - -

Building 15,893,860 20 years 794,693 66,224.42

Office

equipments/supply

119,678 5 Years 23,935.60 1,994.63

Computer 31,255 3 years 10,418.28 868.19

Equipment in

market building

56,960 5 years 11,392.00 949.33

Toiletequipments/supply

50,760 5 Years 10,152.00 846.00

Other equipments 171,299 5 Years 34,259.80 2,854.98

Total 43,402,205.01 884,850.68 73,737.55
http://www.crhouseware.com/bin-small.htmhttp://www.priceza.com/http://www.furniturehall.com/http://www.officemate.co.th/http://www.spksound.co.th/http://rungsubfurniture.tarad.com/http://shoppingonline.bigc.co.th/http://shoppingonline.bigc.co.th/http://rungsubfurniture.tarad.com/http://www.spksound.co.th/http://www.officemate.co.th/http://www.furniturehall.com/http://www.priceza.com/http://www.crhouseware.com/bin-small.htm


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Conclusion

We will invest in establishing a fresh market: (name market), at (Location). We decide

to buy the land due to benefits that will gain in the future. Then constructing building is started

by focusing on convenience of seller and buyer, fineness and cleanness of the building.


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Although we have to spend a lot of money for this investment, this will provide benefits

in long term.

Chapter5

Technical analysis

Production and Operation management

Product Characteristic

Nowadays in Chiang Rai, there are a continuous increasing number of populations that

cause an increasing demand in various fields. According to the demand in food which is one of

the most important factors in human life, the fresh market becomes an alternative for consumerin order to purchase and consume products.

Mee Sub Market Planned and created follow by the need of consumer and the market

concern on the behavior of consumer in Chiang Rai. The market located in the wide open space

and convenience to come. There has a wide parking space to avoid the traffic jam problem.

Due to the preliminary research founded that most of the market located in a crowed

community with no parking space. This point causes the traffic jam problem. Mee Sub Market

provides the parking space with the entrance and exist channel. It will benefits to consumers

who come to the market to move the car easily. Moreover, there is the special parking area for

sellers who would like to transport their goods. Characteristic of Mee Sub Market are created

to be wide open and ventilated. All stalls are organized into 4 zones categorized by the type of

the product including Fresh food, Dried food, Food center and miscellaneous. The product sell

must be fresh as the ministry of health defined and for good hygiene of consumers.

Furthermore, Mee Sub Market provides the area in front of the market for hawker seller who

wants to sell products apart from all products in the market. Mee Sub Market created the

dinning seat area with an entertainment media for consumer and seller to take rest and consume

the product. The market also provides the toilet which located in the back of the market nearby

the parking area. There will have a housekeeping to clean up all the time for a good hygiene of

users.

In conclusion, Mee Sub Market concern most on the benefit consumer will receive. The

market created follow by the information from the research of the behavior of consumer, the

life style and the characteristic of all fresh market in Mueng, Chiang Rai to create the best fresh

market which match with the need of consumer.

Specification, Feather, Dimension, Life time, Etc.

Zones Products

1. Fresh Food- Fresh Meat - Seafood


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- Fresh Vegetable

- Fresh Fruits

- Pork

- Chicken

- Beef

- Local vegetable- Seasonal vegetable

- Seasonal fruits

2. Dried Food

- Processed food

- prepared food

- Dessert

- processed vegetable

- Shrimp paste

- cayenne pepper

- fermented food

- Thai food- Local Food

- Thai Dessert

- Local dessert

3. Restaurant - Make to order

- Noodle

- Curry on top

4. Miscellaneous - Appliance

- House tool

- etc.

Product and Service Process

Service Process

Announcement of new fresh market

Mee Sub Market start to promote and announce to the public that new fresh market is now

open. This will encourage people to know and interest to come to visit the market. Moreover

this announcement will ask for those sellers who want to make a preservation of stall to sellproducts with many promotion and benefit provided

Orientation and Agreement

For those sellers who won the booth auction will ask to make an agreement with the market.

Then they need to participate in the Mee Sub Market orientation to understand the policies and

all conditions of selling the product in order to stay together with happiness both the market

and the seller.


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Administration Analysis

1. Employee salaryAccountant consulting and manager 2 person 30,000.00 Baht.

Securities 2 person (2 x 9,000) 18,000.00 Baht

Made 2 person 18,000.00 Baht

Total salary expense per month 66,000.00 Baht

2. Electricity expenses 71,005.20 Baht3. Water expenses 48,625.89 Baht4. Internet and telephone expenses 1,165.23 Baht5. Garbage fees 1 container = 1,200 baht per time 4,800.00 Baht

1 month = 2 times

(2 containers x2times x1, 200 baht)

Total expense per month 125,596.32 Baht

6. Tax paymentSign board Tax (200 cm. x 900 cm. x 20 baht)/500 square cm. 7,200.00 Baht

House and building Tax 9,984.00 Baht

Permit of fresh Market establishment 2,000.00 Baht

Total expense per year 19,184.00 Baht

*Social Security of employee each person 15,000 x 5% = 700 use rate 4:1 = 140 per month

*Social Security of made each person 9,000 x 5% = 450 use rate 4:1 = 90 per month

*The sign board tax = (width x length x rate of board)/ 500 square centimeter

House and building tax = width x length x tax rate x 12.5%

Permit of fresh Market establishment that payment 2,000 in every year

Electricity expense calculated by electrical engineer

Electricity rate: 3.50 bath per unit

Assume used 144 light bulbs = 1.3 units /12 hours/day/stall

The Fresh Market used 350 light bulbs(350/144) x1.3 = 3.16units per stall

3.16 x 200 stalls = 632 units per day

632 x 30 days = 18,960 units

18,960 x 3.50 = 66,360 baht

66,360 x 7% vat = 71,005.20 baht per month


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Water expense

Catalogue Stall Room Liter Total liter Cube meter

Seafood 24 - 250 6,000 6

Meat 40 - 600 24,000 24Vegetable 30 - 200 6,000 6

Fruit 30 - 20 6,000 6

Restaurant 20 - 350 7,000 7

Readymade 16 - 300 4,800 4.8

Other 20 - 10 200 0.2

Food 20 - 100 2,000 2

Temporary stall 50 - 10 500 0.5

Office - 1 100 100 0.1

Toilet (Lady) - 10 500 10,000 5

Toilet(Man) - 5 350 3,500 1.75TOTAL 51.35

Calculation for water supply per month

Water supply rate for business: 29.50 baht per unit

51.35 x 30 days = 1,540.5 units per month

1,540.50 x 29.50 = 45,444.75 baht

45,444.75 x 7%VAT = 48,625.89 baht per month

Internet and telephone expense: registration package pay per month

Call package 499 baht per month from 6 am - 6 pm

499 x 7% vat = 533.93 bahtInternet package 10mb = 590 per month

590 x 7% vat = 631.30 baht

Total expense: 1,165.23 baht per month

Rate of soild wast expense (Act. ())

1 Cube meter 250 bath

16x250 = 4,000 Baht per two month

Cleaning Fresh Market 1,500 Baht per time

2x15,000 = 30,000 baht per month

Per set Equipment test Total

300 1,500 1,800

Formalin 5,760 - 5,760

Contaminant Assay 4,800 - 4,800

Total 12,360


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Conclusion: Facilities


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Conclusion: Facilities management discipline that supports and improves core

company processes and increases return on investment by result-oriented use of resources,

services, and activities, vital to the success of any organization. There are several advantages

stacked in the favor of facilities management, including, cost advantage, economies of scale,

and efficient management of facilities and assets.


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Chapter 7

Risk Management

Risk is the probability or chance of mistake, damage, and thread of unexpected circumstance tobe occurring in the future. It can lead to unsuccessful operation that is not achieving the objectives of

the business. Risk can be both positive and negative effects to business, and can be classified into 2

factors which are; External and Internal Factors. Mee Sub Market identifies the risk as following;

External Riskis risk that occurs out of the company control.

1. EconomicEconomy and external risk have significant impact on business. In the other word, when the country

faces economic problem, it affects to expenditure of the population. Many business and many company

may be shut down or bankrupt. It also has an effect on Small business and new company who start to

run their business.

Mee Sub Market is a new opening market. If the economic condition of the country, especially in

Chiang Rai, is not stable or facing problems, it would be a risk affects to the fresh market. To adapt and

protect itself from the changing in economic, the market have to aware of changing all the time by

gather all information about economic issue including with political issue to get itself prepared and get

ready to adapt in the circumstance.

2. EnvironmentThe risk from natural disasters and environment may occur such as earthquake, flooding and

collapse of electricity system. These events can happen all the time so, Mee Sub Market has a policy to

buy the insurance in order to deal with these problems.

3. CompetitorThe risk that may occur is competition of strategy of the rivals or competitors that aimed to attract

customers including the stall renting which cost cheaper than our market. This would be the risk of

losing sellers attention to competitors.

Internal Riskis risk that occurs from business operation mistake.

1. Financial RiskThe Financial risk of Mee Sub market is the over cost with the limited budget. The risk also

includes the increasing number of expenditure. If Mee Sub market suffers with this problem in financial

risk, it will effects to the increasing time to get a return and pay back to the investor.

This case Mee Sub market will reduce the result of financial risk by doing a financial plan and

forecasting the financial situation for the future.

2. Strategic Risk


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The strategic which is not according to the visions of the market and not go along with the current

situation can cause the market unable to compete with competitors. Therefore, this becomes the risk that

affects to the market to lose its income and be adverse to the competitors.

The way to manage this risk is Mee Sub Market has to change the strategic plan to be moreattractive than the competitors. Moreover, the market has to provide the meeting to discuss with the

members of the market to provide them some information of the market policy together with emphasis

on the real visions of the mark