Project feasibilty Study and Evaluation (Kaset Popeang)

Member I

Project Feasibility Study of Kaset Popeang Company

Member

Mr. Niphat Namkiatsakul ID: 4931203044

Email: [email protected] Tel: 087-3038858

Mr. Ittipon Sitahirun ID: 4931203134


Mr. Phongphat Ajchariyavaranon ID: 4931203165


Mr. Ritnatee Pinitpaisarn ID: 4931203196


Mr. Thumrongthum Kumpilo ID: 4831205225


Preface II


Preface

This project is established for study feasibility of agricultural industry. This

project analyzes data from the real situation for investor who would like to invest

agricultural industry in this area. First of all, this project is evaluating industry profile,

market feasibility, technical feasibility, financial analysis and risk management for

investor will get maximum profit, ensure to investor and understand problem will occur

in the future. However, this project describes many factors that impute the foundation

for a successful project, actions to take during project initiation.

The objective of this project was to provide the project feasibility of agriculture

business, study the market and trends of agriculture industry, and calculate financial

factors of this business. In addition, the benefit of this project is for knowing feasibility

of this project and financial for proceeding this business. Also, the situation and the

trends of agriculture industry is needed and understanding behavior of agriculturists.

Furthermore, we would like to thank our advisor Mr. Chaiyawat Thongintr for

his continuous support. During the project he led the term professionally and helps us

achieve our aim in the right way. Moreover, his encouragement helped us cope

whenever we encountered problem during our project work. Therefore, we are very

thankful to him. Finally, we would like to thank the companies and stores that give the

information for this project is reliable.

Table of Content III


Table of Content

Member ................................................................................................................................................ I

Preface ................................................................................................................................................. II

Table of Content ................................................................................................................................ III

List of Figures ...................................................................................................................................... V

List of Tables ..................................................................................................................................... VI

Exclusive Summary .......................................................................................................................... VII

Chapter 1: Introduction ....................................................................................................................... 1

1.1 Background .............................................................................................................................. 2 1.2 Project Objectives ..................................................................................................................... 3 1.3 The data collecting method ....................................................................................................... 4 1.4 Benefits .................................................................................................................................... 4 1.5 Action plan ............................................................................................................................... 5

Chapter 2: Industry Profile .................................................................................................................. 6

2.1 Nature of Industry ..................................................................................................................... 7 2.2 Situation of Industry ................................................................................................................. 8 2.3 Product&Service ..................................................................................................................... 11 2.4 Vision ..................................................................................................................................... 12 2.5 Mission................................................................................................................................... 12 2.6 Strategy .................................................................................................................................. 13

2.6.1 Corporate Level ............................................................................................................. 13 2.6.2 Business Level ............................................................................................................... 13 2.6.3 Function Level ............................................................................................................... 14

Chapter 3: Market Feasibility Study ................................................................................................. 18

3.1 Market Analysis...................................................................................................................... 19 3.1.1 General Environment Analysis ....................................................................................... 19

Social .................................................................................................................................................... 19 Political ................................................................................................................................................. 20

3.1.2 Competition Analysis ..................................................................................................... 21 Customer Analysis................................................................................................................................. 21 Competitor Analysis .............................................................................................................................. 22

3.2 STP Analysis .......................................................................................................................... 32 3.2.1 Segmentation ................................................................................................................. 32 3.2.2 Targeting ....................................................................................................................... 33 3.2.3 Positioning .................................................................................................................... 35

3.3 Marketing Mix Strategy .......................................................................................................... 36 3.3.1 Products & Services....................................................................................................... 36 3.3.2 Place ............................................................................................................................. 37 3.3.3 Price ............................................................................................................................. 38 3.3.4 Promotion ..................................................................................................................... 41

3.4 Sales Forecast ......................................................................................................................... 42 Whole market value of agricultural products ........................................................................................... 45

3.5 Marketing Expenses ................................................................................................................ 55 3.6 Conclusion ............................................................................................................................. 59

Chapter 4: Technical Feasibility Study .............................................................................................. 60

4.1 Production and Operation Analysis ......................................................................................... 61 4.1.1 Product Characteristics ................................................................................................. 61 4.1.2 Product Process ............................................................................................................ 67 4.1.3 Services Process ............................................................................................................ 70

Table of Content IV


4.1.4 Location ........................................................................................................................ 77 4.1.5 Store Layout .................................................................................................................. 78 4.1.6 Machine, Tool and Equipments ...................................................................................... 79 4.1.7 Retail Management and Inventory .................................................................................. 88 4.1.8 Logistics Management ................................................................................................... 89 4.1.9 Organization Management ............................................................................................. 90

4.2 Cost of Investment .................................................................................................................. 95 4.3 Investment Cost ...................................................................................................................... 96 4.4 Management Analysis ........................................................................................................... 101

4.4.1 Electricity .................................................................................................................... 101 4.4.2 Water Supply ............................................................................................................... 103 4.4.3 Drinking Water ............................................................................................................ 105 4.4.4 Telephone .................................................................................................................... 106 4.4.5 Insurance .................................................................................................................... 106

4.5 Conclusion ........................................................................................................................... 107

Chapter 5: Financial Analysis .......................................................................................................... 108

5.1 Income Statement ................................................................................................................. 109 5.2 Cash Flow ............................................................................................................................ 109 5.3 Balance Sheet ....................................................................................................................... 109 5.4 Project Analysis .................................................................................................................... 125 5.5 Conclusion ........................................................................................................................... 127

Chapter 6: Risk Management .......................................................................................................... 128

6.1 Risk Management ................................................................................................................. 129 6.2 Financial Risk Analysis......................................................................................................... 134 6.3 Conclusion ........................................................................................................................... 135

Chapter 7: Summary ........................................................................................................................ 137

Summary ....................................................................................................................................... 138

Bibliography ..................................................................................................................................... 140

Appendix A: Survey Data ................................................................................................................. 144

List of Figures V


List of Figures

Figure 1: Business Structure of Chiang Rai by GPP, 2007 ............................................. 2

Figure 2: Price of Rice ................................................................................................ 10

Figure 3: Price of Corn ................................................................................................ 11

Figure 4: Process of employment and improving service quality ................................. 15

Figure 5: Market share of fertilizer, chemical and seed of competitors. ....................... 30

Figure 6: Market share of of agriculture equipment of competitors. ............................. 31

Figure 7: Segmentation of Keset Popeang ................................................................... 32

Figure 8: Targeting of Keset Popeang ......................................................................... 33

Figure 9: Positioning of Kaset Popeang ....................................................................... 35

Figure 10: Agricultural Area of Mae Chan, Chiang Sean and MaeSai ......................... 43

Figure 11: Number of Agricultural Family in Mae Chan, Mae Sai and Chiang Saen.... 44

Figure 12: Expected Market Share Of Keset Popeang ................................................. 44

Figure 13: Trend of sale of Agricultural product&part................................................. 45

Figure 14: Trend of sale of Fertilizer & Chemical Product .......................................... 45

Figure 15: Process of supplier to customer .................................................................. 67

Figure 16 : Example of expert service process ............................................................. 71

Figure 17: Service processing ..................................................................................... 71

Figure 18: Call center service process ......................................................................... 73

Figure 19: After sale service process ........................................................................... 75

Figure 20: Setting up of equipment service process ..................................................... 75

Figure 21: Repair&Maintain Service process .............................................................. 76

Figure 22 : Example of Delivery process ..................................................................... 77

Figure 23 : Shop Location ........................................................................................... 77

Figure 24: Example of location of our company .......................................................... 78

Figure 25: Example of store layout .............................................................................. 78

Figure 26: Logo of Kaset Popeang Company .............................................................. 90

Figure 27: Organization Chart ..................................................................................... 93

Figure 28: Five year – Depreciation ............................................................................ 98

Figure 29: Risk Management Model ......................................................................... 129

List of Tables VI


List of Tables

Table 1: Cultivation Period ........................................................................................... 8

Table 2: Price Comparison of Seed Products ............................................................... 26

Table 3: Price Comparison of Equipment products ...................................................... 26

Table 4: Price Comparison of Fertilizer products......................................................... 27

Table 5: Price Comparison of Chemicals Product ........................................................ 28

Table 6: Fertilizer Products ......................................................................................... 39

Table 7: Chemical Products ........................................................................................ 39

Table 8: Seed products ................................................................................................ 40

Table 9: Agricultural Products .................................................................................... 40

Table 10: Show the Market volume of each product .................................................... 46

Table 11: Five Years - Sale Forecast ........................................................................... 47

Table 12: Five Years - Cash Receive ........................................................................... 52

Table 13: Five Years - Marketing Expenses ................................................................ 56

Table 14: Electricity Expense .................................................................................... 103

Table 15: Water Expense .......................................................................................... 105

Exclusive Summary VII


Exclusive Summary

Kaset Popeang Shop Project is to study the feasibility for opening an

agricultural supply shop. Agriculture industry is chosen because it is one of the largest

industries in Chiang Rai, with wide range of market, most areas in Chaing Rai are used

for agriculture. Therefore, there is a high demand for agriculture supply in Chiang Rai.

In the market of agriculture, it have growth up a good rate every years, from the data

Chiang Rai have agriculture as the main business (31.03%).

The shop sells agricultural equipments and supplies, including, seed, fertilizer,

insecticides and equipment of agriculture in which each shop always sell many brands

of product for customers to choose and make a decision easily.

Kaset Popeang’s market position is to differentiate from other shops by

providing a higher level of service to customers and the variety of products. The

company’s vision is to create the best relationships with customer by providing best

services and products, and to be the one stop agricultural shop on the northern part of

Thailand. We will have a training course to train our employee before providing service

to customer and use differentiate service to attract customer. We will have club to be a

center of agricultural knowledge which customers could come to share the knowledge

for improving efficiently their farm. Agricultural products will be the good quality of

product in which we deal directly to supplier. We will provide a variety of agricultural

products that we also provide after sale service to respond market need. We will have an

annual festival for customer in which this festival is collecting donation in order to buy

some agricultural products to give needy farmer. We are willing to taking care customer

as the same as they are family.

For environment analysis, in social dimension, most people in Chiang Rai are

agriculturists, so there are many customers to the shop. In technology dimension, as

agricultural technology is continuously developing, the shop has to consider new

technology in agricultural industry, to be the first-mover in this business. In economic

dimension, the demand of agricultural product is not very stable because it depends on

many uncontrollable factors, such as the climate and government policy. However, from

the recent years, from the climate change, the demand for rice and sticky rice is

Exclusive Summary VIII


increasing. In political dimension, at the present, government is strongly supporting

agriculture; this directly benefits the shop as agriculturists are the customers.

Analyzing the competitors, we have studied the agricultural supply shop in the

area, there are six main competitors, and other small shops. Udompan and Lor

Rungruang are two big shops that have been running for a long time with big customer

base; we consider these two shops to have a high market share. The five other shops,

including Kittipan, Tiyajakon, Junjaruan and Thai Damrong, are medium size shops

which provide not many kinds of supply. The other small shops, including, Tae Song

Guang, Tai Hong Seng, and Permpon, are considered having low market share.

According to interviewing of entrepreneur, the main competition in agricultural

shop is price and service. Price is factor that customers are going to concern first before

make a decision buying so agricultural shop around Mae Chan, they try to make lower

price to compete with competitor. In addition, agricultural shops try to catch a customer

by competition on providing information of product, help them to solve their problems,

give them with good quality of product and price that appropriate with them. It is good

to make a relationship with customer.

The market customers are divided to two segments, customer who are

agriculturists and use the products, and customers who buy the product to sell to others.

Our target is the agriculturists who use the product.

The marketing mix strategy of the company, for products and services, the shop

provide variety of agricultural equipments and supplies, such as insecticide sprayer,

lawn mower, feed pump, and so on. As for the services, the company provides high

service level including, call center service, delivery service, repairing and maintaining

service, and expert advisory service. For place, the location of the shop is in Mae Chan

that can cover the customers from many line of agriculturist such as Mae Chan, Mae

Sai, Chiang Saen, Nang Lae and hill tribe. Our company is the passing line to go into

town center or fresh market so, it is the opportunity that there are many our target pass

our company.For price, because our company is base on quality of service, so our

products are set up price on reasonable price but it is to be similar or a little bit more

than competitors. The price is standard for every customer but its divide by volume of

Exclusive Summary IX


order and fluctuate cost of product each seasoning too. For promotion, our

communication mixes are dividing into 4 parts: Advertising, Sales Promotion, Event

and Experiences, and Public relations.

Chapter 1: Introduction 1


Chapter 1: Introduction

Chapter 1:

Introduction

IN THIS CHAPTER, THE

REPORT WILL ADDRESS THE

FOLLOWING POINTS:

1. Background

2. Project objectives

3. The data collecting

method

4. Benefits

5. Action plan



Chapter 1: Introduction

Kaset Popeang Shop project is based on current agriculture industry in Thailand and

Chiang Rai. This part contains the concept of the project, its objectives and benefits, the data

collecting methods and action plan of the project.

1.1 Background

Thailand is an agricultural country; agriculturist has always been Thailand’s number

one occupation, it is the most important occupation for Thai people. Thailand also takes the

role of food supplier for the world. At the present, the global demand for rice is

approximately 417.7 ton. Thailand is the country that exports most rice in the world, with the

export rate of 36%. Agricultural business is the business that supplies the basic needs of

agriculturists, and most of the area in Chiangrai is used for agriculture, so this business has a

high growth rate in the future.

Figure 1: Business Structure of Chiang Rai by GPP, 2007

Note: Own Graphic

32%

19%

6%4%

3%

36%Agriculture

Whole sales & Retails

Industries

Construction

Hotels, Restaurants

Others



According to office of commercial affairs Chiangrai, Thailand, Chiang Rai has

1,255,387 populations, GPP for the year 2006 is 50,093 million baht, increased from the last

year by 9.38%, and revenue per person is 38,332 baht per year. Main business is agriculture

(31.83%), followed by whole sellers and retailers (18.76%), industries (6.52%), construction

(3.81%), hotel and restaurant (2.72%), respectively.

Our business is an agricultural shop, with products such as chemical fertilizer and

agricultural equipments, such as insecticide sprayer, lawn mower, feed pump, and so on. The

name of the shop is Kaset Popeang Shop. The shop will take the products directly from

vendors for fertilizer and other agricultural equipments, then provide to the customers and

also sell to group of small shop retailers.

The shop is located in Mae Chan, because Mae Chan is the passing route to Chiang

Saen, Mae Sai, and Nang Lae. Our target market is agriculturists in the area of Mae Chan,

Chiang Saen, Mae Sai, and Nang Lae.

According to the field study, there are still few businesses, in Mae Chan district for

agricultural supplies, and there is still no shop in which provides all types of agricultural

supplies and equipment, it is a good opportunity to do this business.

This project will study the feasibility on agricultural business, the study target groups

are agriculturists, such as farmers, orchardist and agricultural product sellers. The project will

analyze direct and indirect competitors and study the trend of the market after collecting the

data, and plan the process and make strategy, such as providing different service for

customers because this kind of products usually has no difference. From the study, the

authors have found that most agricultural products need to have a good relationship with the

customers, so it is necessary to study the customer relationship management (CRM), this will

make it easier to get access to the customers. The time for conducting this project is about 3

months.

1.2 Project Objectives

- To provide the project feasibility of agriculture business

- To study the market and the trends of agriculture industry

- To calculate financial factors of this business



1.3 The data collecting method

The authors will use data collecting method which depends on type of data as a

below.

Primary data

o Survey – the authors are going to search and focus the used behavior of

customer. In addition, geographic and demographic also is surveyed.

o Interview – the authors will interview directly to farmer or orchardist

Secondary data

o Internet

o Book

o Information from agriculturists department

1.4 Benefits

- Knowing feasibility of this project – the researchers study and analyze with real

situation. This will reduce the risks of this business; the risks are informed to be

able to avoid the problems, which can happen from IE matrix study. The problems

can be predicted from old information that is collected and analyzed.

- Knowing the situation and the trends of agriculture industry, understanding

behavior of agriculturists, and be able to select and identify the right customer

target clearly.

- Knowing the financial for proceeding this business, be able to calculate profits

and expenses, and find the way to get maximize profits.



1.5 Action plan

Chapter 2: Industry Profile 6


Chapter 2: Industry Profile

Chapter 2:

Industry Profile



FOLLOWING POINTS:

1. Nature of industry

2. Situation of Industry

3. Product & Service

4. Vision’s company

5. Mission’s company

6. Strategy’s company



Chapter 2: Industry Profile

This chapter contains detailed information of agriculture industry and its current

situation. Another part is information of the business, including its product and service,

vision, mission, and the strategy of the company.

2.1 Nature of Industry

Agriculture is the occupation in which is most extensive throughout the world, by

42% of global labor is agricultural. However, the quantity of agricultural products still has

not reached 5% of Gross World Product (GWP).

Thailand has been developing, however, the main occupation for Thailand is still

agriculture, and the main revenue of the country comes from exporting agricultural products.

In the past, agriculture required a lot of man labor, and it depended on the nature to decide the

period of doing agricultural activity. In the present time, agriculture is highly developed, to

increase the product quantity and to reduce the cultivation time.

From the information collected from Chiang Rai Provincial Agricultural Extension

Office, we can observe that in Mae chan district, the area is massively used for agriculture,

approximately 98,000 rai (156,800 km2) in total. Cultivation requires some equipments and

chemicals, such as fertilizer, insecticide, stimulator, lawn mower, lift pump and water pipe,

chemical sprayer, and other agricultural equipments. This makes agricultural shops grow

continuously. The business is interesting and it also includes of livestock industry.

According to Department of Agricultural Extension, the season of growing rice has two

periods in which is in-season rice and off-season rice. It means that In-season rice starts on

April until August, farmers are going to prepare the field to grow then they will buy

insecticide, fertilizer, and agricultural equipments.



Table 1: Cultivation Period

Note: Agricultural department

Off-season rice starts on October until May in which farmers are spending more

money than in-season because it is not season that there is enough water for growing.

Farmers need to buy agricultural equipments for help them such as water pump, fertilizer and

so on. The season of growing corn is starting on May until November that farmers also buy

insecticide, fertilizer, agricultural equipments before this season.

In order to open an agricultural shop, it requires high investment. Agricultural

equipments are rather high price, and the equipments are manifold, making it difficult for a

shop to provide all equipment available for customers. It will also require large area for doing

the business and store the inventory. The business operators are required to have wide

knowledge for agricultural equipments, for they can explain how to use the equipments and

know when to stock which inventory at the period, and know which brands and which models

are popular or has best sale. The target market of the shop will include customers for

agriculture, livestock, and fishery. This market is large and there are still few shops to supply

the need. In addition, the return or profit is rather high.

2.2 Situation of Industry

At the present, the global demand for rice is approximately 417.7 ton. Thailand is the

country that exports most rice in the world, with the export rate of 36%, followed by Vietnam

with 20%, India 18%, USA 14%, and Pakistan 12%, respectively. The world has high

demand for rice, due to natural disaster in which has made rice become inadequate in many

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

Cultivate

Harvest

Able to cultivate

The best period for cultivation

Calendar Calendar/Next year

In-season rice field 150

120

60 - 90

120

Type Harvest(Day)

Double-crop field

Vegetable Ex. Cabbage,lettuce

etc..

Corn

Note



countries, and needed for import. This makes the price of rice become higher, and many

people are more interested in agriculture.

Chiang Rai has 1,255,387 populations, GPP for the year 2006 is 50,093 million baht,

increased from the last year by 9.38%, and revenue per person is 38,332 baht per year. Main

business is agriculture (31.03%), followed by whole seller and retailer (18.76%), industry

(3.98%), construction (3.81%), hotel and restaurant (2.72%), respectively. The province’s

trading system depends on international trading. The most important trading partner for

Chiang Rai is China, followed by Myanmar and Laos. Main export products are; agricultural

products, dried longan, grocery, gasoline, tire, construction materials, cars, food and

beverage, and medicine, respectively. Main import products are; agricultural products,

vegetables, apples, pears, fried onions, lumber, grocery, blanket, vehicles and equipments,

machines and equipments, lignite, respectively.

From the information above, we can see that Chiang Rai of main occupation is

agriculturist, which is 31.03% of the population, and it tends to grow more, by the increase of

price on agricultural products. Chiang Rai of economy is in good direction, even effected

with adverse factors such as the increased price on gasoline or the instability of Dollar, due to

sub-prime problem. This will be the growth in the main economic dimension of the province,

including agricultural dimension by the increased in production, and the growing rate of

agricultural product involving alternative energy production. However, in April 2009 there is

a decrease in growth rate, comparing with the same period of the last year. Considered from

the accumulate production of rice, which is decreased by 10%. It is the effect from a decrease

in off-season rice from bad climate, plus the decrease in demand for rice. This made the price

of rice decreased, and agriculturists turn to other cultivars, such as cassava, pineapple, soil

bean, corn, sweet corn, etc. In additional, the production of corn in this month has decreased

by 54.4%, as a result of decreasing in corn price, making agriculturists reduce the area for

growing corn. In contrast, the perspective of other industries in April 2009 has only a slice

increase, when comparing with the same period last year, considering from industry

dimension, the amount of factories has increased by 0.8%, the licensing and the amount of

labor has increased by 0.3% and 2.5%, respectively. However, for hospitality and tourism

industry, the growth rate has decreased. Hotel industry has decreased by 20%, amount of

passengers in airports has decreased by 20.7%, due to the instability of the situation in the

country.



According to Office of agricultural Economics says that trend of agricultural product

is increasing 5% to 6% in 2553. As figure 2 and 3, the price of agricultural has been

increasing from 2550 to 2552. It is a good signal that Agriculturist trends to crop rice and

corn than the last year. Moreover, government launches policy that support agricultural

outcome by guarantee the price and the economics of world start to be better also. Those of

factor will affect to Growth rate of our company that the total sale may be increasing 5% of

each year.

Figure 2: Price of Rice

Note: Office of Agricultural Economics

2548 2549 2550 2551 2552

Rice 5% 6,607.00 6,533.00 6,587.00 9,848.00 9,257.00

Rice 100% 7,685.00 8,032.00 8,875.00 12,536.0 13,819.0

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

Price/Bah

t

Rice 5%

Rice 100%



Figure 3: Price of Corn

Note: Office of Agricultural Economics

2.3 Product&Service

Agricultural shop is sell a product about seed, fertilizer, insecticides and equipment of

agriculture in which each shop always sell many brand of product for customer to choose and

make a decision easily. Agriculture products are described into 4 types of product;

Seed

Normally, seed is always forming in can and pack which are many brands of company

and several kinds of plant. Customer in each area can grow difference plant because different

kinds of soil so seed are one of agricultural product that is a need of market in every area.

Fertilizer

Fertilizer has many formulas for the plant in which has difference of N P K. Plants

need difference formulas of fertilization. It depends on what agriculturist want plant to be.

Actually, agriculturist always uses fertilizer before growing and during plant growing.

Fertilizer is important to improve agricultural product for agriculturist.

2548 2549 2550 2551

Corn 4.8 5.36 6.84 7.1

0

1

2

3

4

5

6

7

8

Price/Bah

t

Corn



Insecticides

Insecticides are one of agricultural product to protect the agricultural product. It has

many kinds of product depend on types of insect so company which produce the insecticides

need to improve the formulas for high efficiency of protect their insect.

Agriculture equipment

This thing is one component of agriculture because it is the help one to reduce time

and money to do agriculture and nowadays agricultural always use it. Because of this product

is machine that need to take care and always fixed it so the spare part of machine is important

for shop to serve the customer.

2.4 Vision

Creation the best relationships with customer by provide the best services and

products, also the one stop agricultural shop on the northern part of Thailand.

2.5 Mission

We will have a training course to train our employee before providing service to

customer and use differentiate service to attract customer. We will have club to be a center of

agricultural knowledge which customers could come to share the knowledge for improving

efficiently their farm. Agricultural products will be the good quality of product in which we

deal directly to supplier. We will provide a variety of agricultural products that we also

provide after sale service to respond market need. We will have an annual festival for

customer in which this festival is collecting donation in order to buy some agricultural

products to give needy farmer. We will have willingness to take care customer as the same as

they are family.



2.6 Strategy

Strategy of the company divides to corporate level, business level, and function level.

2.6.1 Corporate Level

In corporate level, we decide to use two strategies that will help our company to be as

the vision of company by use Concentric Diversification Strategy and Market Penetration

Strategy. Both of strategy has specific unique that we think it could push the company to be

success in market. There are two reason that why we use those strategy to compete with

competitors. The first reason, we use Concentric Strategy to make our company differentiate

with competitors in term of service and product. The second reason, we are a new shop on

the market and any competitors have their own customer already so Market Penetration is the

answer to get customer know us by using communications mix and gain market share from

competitors.

The concentric diversification strategy that our company uses, that means the firm

could leverage its technical know-how to gain some advantage, another meaning is the firm

launch new products that is related with the same as firm ever did. So our company chooses

this strategy because we need to provide variety agricultural products to customer that each

product will response need of customer. We plan to have consulting service to serve and

suggest information in order to farm who has problem about their agriculture by expert. It

means that our company has agricultural shop and consulting service.

Market penetration occurs when a company enters a market with current products and

the same market with competitor, the communications mix is used to gain market share from

competitors. We are using Advertising via Television, Local Radio and word of mouth to get

attraction of customer. Actually, most of agriculturists have watched a television and listened

a local radio, which should be our target market and word of mouth usually is used when our

company would like customer trust in company. However, word of mouth is not costly for

new company but it is very effective to attract customers.

2.6.2 Business Level

In business level, we use differentiate strategy to create new service for getting more

profit. As this business, if we would like to create difference products, it is quite hard. A lot



of shop is the same product lines which obtain from any supplier. So we think the way to

make competitive advantage to compete with competitor, it is using differentiate strategy. We

will concern more on service that information is collected. However, our company got an

opportunity that the existing agricultural shop does not have enough services to fulfill

customer need. The service that we are talking, it is consulting service for agriculturist which

we are going to help agriculturists in order to increase agricultural products. For example, if

agriculturist could harvest vegetable 20 kilogram per farm, we are going to help increasing

quantity of vegetable up to 30 kilogram per farm by sending experts on fieldwork.

2.6.3 Function Level

Functional level strategy compose of human resource management, logistic

management, inventory management, and marketing management. These strategies are

supporting the strategy in business level.

Human Resource Management

The report says that this Human resource management has responsible for hiring the

best employees and training employees in order to provide a good service. Human resource

functional will concern about employment process. First of all, when applicants is coming to

apply the job. They have to do the questionnaires which is related with their service

perspective. The questionnaires can evaluate applicants which they have a good view about

service or not, it will affect to provide a service to customer when applicants are employed.

In addition, after applicants pass for the questionnaires test. The next step is checking

profile or background of applicants that if applicants are going to be our employee, they need

to have all the job qualification that company want to be. However, employees still need to

get the training session to improving service quality and it is the way that prepares employees

before going to provide service with customers. All employees are trained to improve a

knowledge about agriculture include process of cultivate any plant, which fertilizer is

appropriate with plant, how to eliminate insect and so on.

Moreover, according to Donald Kirkpatrick who is Professor Emeritus of the

University of Wisconsin in North America and a past president of the American Society for



Training and Development (ASTD). He published a book “Evaluating training programs”

which this book says that there are four levels of Kirkpatrick's evaluation model essentially

measure:

Reaction - what they thought and felt about the training

Learning - the resulting increase in knowledge or capability

Behavior - extent of behavior and capability improvement and implementation

Results - the effects on the business or environment resulting from the

trainee's performance

It is tool which company is using to evaluate the employees after training session. As

you can see from the figure below, this is a whole process that Human Resource functional

concern about employee and customer who will got a good service from our company.

Figure 4: Process of employment and improving service quality

Note: Own graphic

Logistic Management

Logistic Management has responsibility for customer service which company will

transport an agricultural product to customer’s house and repair operations that there is repair

Conducting the questionaires to evaluate service perspective of

applicant

Checking profile and beckground of

applicant which fit with job qualification

in each positioning

Training session

Evaluate employees after training session

Provide a good service quality to

cusotmer



service to customer by repairer. This functional has to manage the distribution product to

customer which is very important thing. All agricultural products are sent to customer’s

house excluding on hill or another country by using pick-up which has a good driver who

know the map of Chiang Rai.

When customers get a problem about product that it might break, customer can take it

to our company and the breaked product will be fixed by our repairer.

In addition, purchasing products also are responsibility of logistic management and

control process of transportation from supplier to warehouse. Our company is using

outsourcing transportation company to help us for example, Nim See Seng Company that is

the one of big transportation company on northern part of Thailand.

Inventory Management

This functional is controlling inventory in warehouse that mean there will be products

to provide the customer all the time and can manage inventory that has less damage as much

as possible. It would help to reduce cost also. Inventory manager has to collaborate with

logistic manage by sending the number of inventory in warehouse and advising to logistic

manage when the inventory need to refulfill.

Moreover, the arrangement of inventory is also main point that has to concern. the

warehouse are separated space following kind of product which some product needs more

space to put it or some product need shelves to arrange it. The FIFO process is request

because the agricultural product has expiration date which products come to warehouse first,

those products will sell first also.

Marketing Management

Marketing functional has responsibility to do marketing effort, which attract to

customer via communication mix. As our company concern about the variety of products and

service quality, that is our advantage to compete with existing competitors and is barrier to

new entre competitors.

http://dict.longdo.com/search/break

http://dict.longdo.com/search/collaborate%20with



Communication mixes that we use to promote our company which has Advertising,

Sales promotion, Event and Experiences, and Public relations. Those communication mixes

are supporting positioning of our company. Advertising is first step to send message to

contact the customers, our company are using leaflet for first three month. The leaflets are

distributed at fresh market of Mae Chan and in front of Department of Agricultural Extension

where located at Muang, Chiand Rai. After that, Chiang Sean and Mae Sai market are the

next place to distribute leaflet. Moreover, posters will stick on around our company and

around market of Mae Chan, Mae Sai, and Chiang Sean. Those places are crowded.

Agriculturists usually come to market in the morning to buy some food and tack it to home.

However, our company is using local radio also to promote us. The local radio is still

favorite for local people. as you can see that some business launch the advertisement via

radio, the benefit of using radio is; It is can spread to promote our company larger than

leaflets or poster. It is not expansive when compare with efficient. Another reason,

agriculturists usually listen radio during working.

The sales promotion is a tool that our company uses for increasing sale. The special

price and delivery service is offered to customer. There will be special price for customers

who buy large size of our product. Moreover, our company has a free delivery service if

customers buy products more than 3,000 baht and the destination is not far from our company

or it is not more than 10 kilometers.

The event & experiences and Public relation is way to make strong bran, which is

using training course for employee, expert advice service and join Chiang Rai fair. Our

company will train employee before provide service directly to customers, our employee

need to have knowledge about agricultural such as which fertilizer is appropriate with that

plant, how to use agricultural equipment and so on. If customer has a problem about

agricultural, they could come to our company which expert will help customer to solve the

problems. In fact, Chiang Rai has a big fair every year that many people go those fair. So it is

opportunity to promote and make customer’s perception. For example, Phor Khun festival.

As our company concern on a quality service. So the special service is provided to

customers, there are call center service, repair & maintain service and after sale service. Our

company would like to take care our customer as they are our family.

Chapter 3: Market Feasibility Study 18


Chapter 3: Market Feasibility Study

Chapter 3:

Market Feasibility Study



FOLLOWING POINTS:

1. Situation of Industry

2. Product & Service

3. Vision’s company

4. Mission’s company

5. Strategy’s company



Chapter 3: Market Feasibility Study

Study on agricultural related environment, competitor and customer, to see the

feasibility of the project. Then set the market target and position for the company and set

strategy using STP analysis and marketing mix strategy.

3.1 Market Analysis

According to Kasikorn Research, trend of this business half of end year 2009 economic

world recovered, so agricultural products and food can export good rate include demand from

foreign countries is increase than at begin of the year, and in the market of agriculture have

growth up a good rate every years from the data Chiang Rai that have agricultural is the main

business (31.03%).

3.1.1 General Environment Analysis

Social

According to department of agricultural extension, Chiang Rai has 1,255,387

populations, GPP for the year 2006 is 50,093 million baht, increased from the last year by

9.38%, and revenue per person is 38,332 baht per year. Main business is agriculture (31.03%)

and this year trend unemployed rate higher more than 1,000,000 persons then they will return

to agriculture. The effect from general environment for agriculture is the main factor that

affects agricultural shops, because the main target customers are agriculturists. However, the

perspective of agriculture in April 2009 has a decrease in growth rate cause from climate

change, comparing with the same period of the last year, but end of the year the price of

agriculture products increase 60-70% per ton from 10,000 baht per ton up to 14,500-15,000

baht per ton, and then many people return to do agriculture. This is one of the factors that

directly affect agricultural shops, increase sales from end of the year.



Technology

For agriculture, technology is essential to cultivation. The technology has been

continuously developing, to decrease the time for processing, and increase convenience for

users. For examples; in the past, harvesting rice required many people to help for the work

and it took a long time, but in the present there are tractors, no need for many people and it is

much faster. So, agricultural shops have to consider new technology in agricultural industry,

to be the first-mover in this business.

Economic

According to Kasikorn Research, in 2010, previous year’s product price is the

motivation for agriculturists to increase the production or change to other products such as

rubber tree or corn. The price of agricultural products is in a good rate, especially the price of

rice and sticky rice, which has increased from last year, due to the increased demand in

export, and competitor countries has been encountering inadequate production problem. rice

and sticky rice quantity in the world decrease from climate change while demand rice and

sticky rice will increase. Philippines is fourth major of export rice reverse to import rice

because the country got impact from nature disaster while quantity of rice and sticky rice will

increase that it opportunity of Thailand can export rice and sticky rice more than last year. In

contrast Thailand have to concern about climate change and policy of government then

Chiang Rai is considered an area with optimal climate for cultivation, with sufficient rain and

good soil; it can increase the agricultural production. However, this depends on the climate

for each year.

Political

At the present, government is strongly supporting agriculture. For examples, the

government provides policy to guarantee higher price for rice, get provincial agricultural

extension offices to make strategy for protection system to agriculturists’ risks by managing

to reduce the risks for agriculturists from disasters. Moreover, there are issues on adjusting

product prices and other projects that provincial agricultural extension offices will provide.

We can see that the government is continuously supporting agriculture. Economic breakdown

is one of the problems that affect agriculturists and shops. The gasoline issue has intensive



effects in the present economic, affecting both agriculturists and business owners. If the

gasoline price is higher, the cost of production will be higher, while the price of agricultural

products is still the same. This will make agriculturists reduce their buying from the shops.

As for the shops, the effect of unstable gasoline price makes the price of equipments change,

making it difficult for the shop to stock the inventory, resulting in lacking of inventory in

stock and insufficient products to satisfy customers. Moreover, this business has to rely on

suppliers. Sometimes if suppliers cannot supply in sufficient amount for the market demand

or send the products late, it will cause the shops to lose their customers.

3.1.2 Competition Analysis

Customer Analysis

Agriculturalist of Mae Chan, Mae Sai, Chiang Saen, has many type of cultivation. For

agriculturalists who cultivate rice, the area of this group is about 232,250 rai. For

agriculturalists who cultivate corn, the area for this group is about 104,846 rai. The area of

agriculturalists who cultivate vegetables, the area of this group is about 4,859 rai. Therefore,

total of agricultural area is about 337,096 rai. From the information show that agriculturalists

in this group has many group of cultivate and each group has a big area for cultivation so

agriculture product need to support their agriculturalists. Customer will cover the area of Mae

Chan, Mae Sai and Chiang Saen so all of this area is the top of cultivation in Chiang Rai.

Some of customer is a small group and buy the product to use only.

Another group is the retailer that buys the product for sell and stock some of product

for gain more profit. Behavior of their customer always buy the product with the shop that

reasonable price, good service and fully of agriculture product so the shop in Mae Chan does

not concern all of these. (From Bureau of Trade and Economic Chiang Rai, 2008)

Behavior of customers who is using agricultural products, Average of using is one

sack per two rai. Moreover, Chemical product is used 1000 cc. to five rai. A one bottle of

chemical product is using for five rai in which a one bottle equals 1000 cc. in addition, Seeds

can grow the whole year, farmers usually grow vegetable plant with main agricultural then

the seeds can sale the whole year. Actually, a one can of seed is 500 gram that a one rai needs

2,000 gram of seed so agriculturist has to buy one can of seed for a one rai. Moreover,

Equipments are used during growing rice & corn that means farmer usually buy Agricultural



equipment such as Sprayer, Farm Pump or Farm Pump and so on. In addition, one

agricultural equipment is bought per one family. However, the life of this product is usually

two years.

Competitor Analysis

As the survey said that around the area of Mae Chan district has many agricultural

shops and each shop has their own customer.

Lor Rungruang

Location

For the shop which has an experience of agricultural shop name is “Lor

Rungruang”. The shop is located at the back of Gasa Temple, near municipality

office. It is a big shop, open area, has big warehouse which beside the shop. The front

of the shop shows seeds and some equipments. The back of the shop shows chemicals

and insecticide. There are 3 salespersons, who are Myanmar people. The owners are 2

siblings, brother and sister, controlling and cashiering in the shop. This shop has been

running for more than 30 years.

Products detail

This is a fertilizer and insecticides retailer of Mae Chan district so the prices

are lower than other shop. The shop can sell a lot of fertilizers and insecticide.

Besides that, the shop sells some equipments of agricultural and parts of machine but

very few goods available. This shop has a good quality of product and their customer

better known this shop very well but this shop does not has a good service. Therefore,

customers of this shop are agriculturists from Mae Sai, Chiang Saen and nearly area

of Mae Chan.



Kittipun

Location

This is another shop that has a lot of experience of Mae Chan. This shop has

three branches, two shops is located in front of Mae Chan, opposite to each other.

Another shop is located at the back of the market. The shops are quite small, dark and

dim, and messy. The shop takes advantage of the location, most of their customers are

hill tribe people. The owner is controlling two shops and the owner’s wife is

controlling one shop. There are four employees, who are hill tribe people. This shop

has been running for 15 years.

Products detail

This shop is sell fertilizer, seed, agricultural product, pesticide and other

agricultural chemical product but quality of product of this is not good and employees

of this shop is a people who does not has knowledge of agricultural. This shop sets

high price for the products, but give a lot of discount to everyone. Owner has a

knowledge about agricultural only so customers always take some advice from him

and he cannot sell the product easily. Almost customers are from agriculturist who

lives in the hill and their customer had not knowledge about agricultural.

Jun Jarern

Location

This shop is located near bus stop, where many people pass. It is a small shop,

a family business. There is only one employee, and two owners, husband and wife.

This shop has been running for less than 10 years.

Products detail

The shop sells some agricultural product, seed, and some kind of agricultural

chemical. Their inventory is small and their sales are few. Their customers are not

regular customers. They can sell their product to customers who live in Mae Chan

district and small group of agriculturist because this shop is set up in the center of



Mae Chan and nearly the bus stop. This shop is small shop so they cannot compete

with other shop that bigger than them.

Tiyajakon

Location

It is a big shop, wide and deep, high ceiling, with big inventory, but high price.

It has four employees. The shop displays the goods in good order and neat. This shop

has been running for more than 20 years. It is located opposite a bus stop, opposite

Jun Jarern shop. The shop is managed by the owner’s son.

Products detail

For the agriculture instruments shop, Mae Chan district has “Tiyajakon” that is

for agriculture instruments in Mae Chan. They sell product about all kind of machine,

agricultural machine and parts of machine. Therefore, customers of this shop are from

many area of Mae Chan and nearly area because this is one shop that sells agriculture

instruments in Mae Chan. Service of this shop is not enough for customer because

employees are not knowledge and less number of employees too.

Udompan

Location

This shop is a very big shop, clean, has many customers. It has big shop sign

to attract passing customers. It has two branches in Mae Chan, one shop is on the

main road in Mae Chan, it has around five employees, another shop is near Tiyajakon,

it has three employees. It has big inventory, arrange the displays in good order. This

shop has been running for more than 30 years.

Products detail

Udompan is another shop in Mae Chan that sells agricultural instruments. This

shop has run for a long time and has experience in this industry. They sell agricultural

machines, equipment, and parts, but they do not sell fertilizer and chemicals.



Udompan has two branches in Mae Chan district. This shop is quite popular in Mae

Chan. They have connections with government office and many customers from

around Mae Chan. They provide selling on account.

Thai Damrong

Location

It is a big shop, high ceiling, providing many goods. The goods are crowded in

the shop. This shop has two employees. It is located outside Mae Chan area. It has

been running for 20 years. There are two owners controlling the shop. This shop sells

only equipments, no fertilizers and seeds or chemicals. Their main customers are

people in the area.

Products detail

“Thai Damrong” is one shop of machine and agricultural instrument. They sell

products like “Tiyajakon” but this shop is near Chiang San district. So, customer will

be difference group of area and this shop is harder to compete with other shop in Mae

Chan. Main group of customer are from Chiang San and Mae Chan.

Other shops

Location

Furthermore, there are other small shops in Mae Chan area, including, Tae

Song Guang, Tai Hong Seng, and Permpon, these small shops are considered having

low market share. Therefore, Mae Chan district has not agriculture instrument and

agricultural shop together completely.



Price Comparison

The price is difference on each competitors, as we can see on Table 2, it is a price

comparison of each product.

Table 2: Price Comparison of Seed Products

Description Kaset

Popeang

Price

Kittipun

Price

Jun

Jarern

Price

Tiyajakon

Price

Udompan

Price

Thai

Damrong

Price

Lor

Rungruang

Price

Spinach Seed 500 g

220 215 225 - - - 210

Pea Seed 500 g

220 220 230 - - - 215

Chinese Cabbage Seed 500 g

70 70 75 - - - 70

Chinese Cabbage

Seed 100 g

30 35 35 - - - 28

Corn Seed 500 g

70 75 80 - - - 70

Parsley Seed 500 g

85 90 95 - - - 85

Drynaria Bonii Seed 100 g

72 75 75 - - - 70

Table 3: Price Comparison of Equipment products

Description Kaset

Popeang

Price

Kittipun

Price

Jun

Jarern

Price

Tiyajakon

Price

Udompan

Price

Thai

Damrong

Price

Lor

Rungruang

Price

Sprayer Yamano

795 830 850 820 770 780 800

Sprayer Yamano EM-16

(Fertilizer)

3,100 - - 3,100 3,000 3,150 3,300

Sprayer Yamano EM-

18 (Insecticide)

4,150 - - 4,200 3,900 4,000 -



Farm Pump 1,500 - - 1,500 1,400 1,500 -

Brush Cutter

Blade 14"

140 - - 130 140 130 -

Grass

Trimmer Metal Blade 14"

160 - - 170 150 150 -

Conveyor No. 200

200 - - - 200 200 -

Conveyor

No. 300

300 - - - 300 300 -

Tapered

Roller No. 6205

50 - - 60 50 50 -

Tapered

Roller No. 6206

50 - - 60 50 50 -

Tapered Roller No. 6305

50 - - 60 50 50 -

Brush Cutter Gear

850 - - - 900 880 -

Brush Cutter

Clutch

450 - - - 440 450 -

Brush Cutter

Robin 411

8,900 - - 8,900 8,800 9,000 -

Brush Cutter China 411

3,800 - - 4,000 3,700 3,700 -

Fabric Pump No. 6"

160 - - - - 165 -

Water Pump Honda 3"

8,500 - - 8,600 8,500 8,700 -

Water Pump Honda 2"

7,500 - - - 7,400 7,500 -

Water Pump

China 3"

4,500 - - 4,700 4,300 4,600 -

Table 4: Price Comparison of Fertilizer products

Description Kaset

Popeang

Price

Kittipun

Price

Jun

Jarern

Price

Tiyajakon

Price

Udompan

Price

Thai

Damrong

Price

Lor

Rungruang

Price

Urea

Fertilizer 46-0-0 (Kra Tai)

720 725 740 - - - 710

http://www.rujirashop.com/product.detail_137833_en_711976




Urea Fertilizer

15-15-15 (Kra Tai)

890 880 - - - - 880

Urea Fertilizer 20-0-0

(Kra Tai)

415 415 430 - - - 415

Urea Fertilizer

15-20-0 (Kra Tai)

700 695 700 - - - 690

Table 5: Price Comparison of Chemicals Product

Description Kaset

Popeang

Price

Kittipun

Price

Jun

Jarern

Price

Tiyajakon

Price

Udompan

Price

Thai

Damrong

Price

Lor

Rungruang

Price

Gramoxzone 1 Lites

145 140 - - - - 140

Gramoxzone

5 Lites

620 620 - - - - 600

Paraquat

1Lites

130 - 140 - - - 130

Paraquat 5Lites

520 520 - - - - 530

Glyphosate 1 Lites

140 135 - - - - 130

Glyphosate 5 Lites

500 495 520 - - - 490

Cypermetrin

35 100 cc.

90 90 - - - - 85

Limer 10 100

cc.

200 - 200 - - - 190

Abamectin 500 cc.

150 155 - - - - 160

Abamectin

100 cc.

55 50 60 - - - 50

Ragen 100

g.

45 50 45 - - - 45

Zinto 500g. 190 190 185 - - - 180

Zerus 250

cc.

380 390 390 - - - 400

Capremium 100 g.

60 60 60 - - - 50

Dermic 500cc.

100 - - - - - 90



Buternin 55 100cc.

260 - - - - - 250

Nam dum 750cc.

25 25 25 - - - 25

Nam kwaw 750cc.

25 25 25 - - - 25

Varansia 10 1kg.

170 170 - - - - 165

Varansia 10

100cc.

35 40 50 - - - 50

Fronk 10

1kg.

170 - 190 - - - 170

Fronk 10 500g.

110 110 110 - - - 110

Fronk 10 100cc.

35 30 - - - - 30

Abalucus 1Lites

350 - 370 - - - 370

Rumartin

1Lites

350 360 360 - - - 350

Redblue

Omotoaid 1Lites

300 300 310 - - - 300

Master

comfirm-L 1Lites

950 - 970 - - - 940

Pakdeng 35 1Lites

350 350 360 - - - 350

Pakdeng 35

500cc.

220 - - - - - 220

Cypermetrin 10 100cc.

35 35 - - - - 35

Cypermetrin 25 100cc.

45 40 40 - - - 35

Almic 15 kg. 315 - 330 - - - 310

Microbe Bio EX-M

99 95 100 - - - 90

Dope-D 350 350 355 - - - 340

Natural Natrients

(Colourful)

220 215 225 - - - 220



Competition Analysis

Figure 5: Market share of fertilizer, chemical and seed of competitors.

Note: Own graphic

From the Figure 5: there are showed about market share of each competitor from total

market share of fertilizer, chemical and seed in Mae Chan, Mae Sai, Chiang Saen area about

314,015,520 Baht. From the record data, this report will know that there are 2 times of

cultivate per year in Mae Chan, Mae Sai, Chiang Saen area. All of these area, there are

337,096 rai for cultivate and use fertilizer about 1/2 suck per rai, chemical about 1/5 bottle

(1,000 cc. /bottle) per rai. The percentage of market share of competitors, this report got from

interviewed compare with recorded data.

30%

15%25%

10%

20%Lor Rungruang

Kittipan

Tae Songguan

Junjaruan

Other



Figure 6: Market share of of agriculture equipment of competitors.

Note: Own graphic

From Figure 6: there are showed about market share of each competitor from total

market share of agriculture product in Mae Chan, Mae Sai, Chiang Saen area about

131,241,600 Baht. Then, this report will analysis data and separate by interviewed compare

with number of expected used each agriculture equipment of consumers.

So, from whole market share about 445,257,120 Baht. Our company will analyzes

both market share and separate by information that our company gets from interviewed and

recorded data. This report will tell that there are only four main competitors who high market

shares but there are many problems about lack of product because all of main competitors do

not have variety of products. Therefore, our company can use this channel to enter to this

market shares.

According to interviewing of entrepreneur, the main competition in agricultural shop

is price and service. Price is factor that customers are going to concern first before make a

decision buying so agricultural shop around Mae Chan, they try to make lower price to

compete with competitor. The compete situation of agriculture shop, the shop must adopt to

customer want who has income decreases and use the product usefully for keep the income

level stable. Therefore, agricultural shops may change the policy to response to customer

satisfy. Nowadays competitors are not a convenience agriculture shop that compose of; give

an advice to agriculturist, friendly service, low price and good quality within one shop. In

30%

5%10%20%

15%

20% Udompan

Lor rungruang

Kittipan

Tiyajakon

Thai Damrong

Other



addition, agricultural shops try to catch a customer by competition on providing information

of product, help them to solve their problems, give them with good quality of product and

price that appropriate with them. It is good to make a relationship with customer.

3.2 STP Analysis

3.2.1 Segmentation

Figure 7: Segmentation of Keset Popeang

Note: own Graphic

This project set the segmentation from customers who come to buy the product and

variety of product. The first segmentation is customers who come to buy product, there are

two kind of customer: Firstly, Agriculturist who buy for use by themselves about this

segment is about 31.83% of all economic structure in Chiang Rai or about 15,943 million

Baht since 2550. There are growing rate about 9 to 11% each year and it trends to continue

increasing every year because there are many factor to affect them such as increasing of

agriculture product price. Moreover, government help agriculturist to guarantee agriculture

product price and increasing of number of knowledge agriculturist who join seminar of

cooperative or student who congratulate form agriculture major. Secondly, retailer who want



to buy product with large size for negotiate to reduce price for sell in the other area about

18.76% of all economic structure in Chiang Rai or about 9,396 million Baht since 2550

include all retailer. There are different buying behavior between agriculturist and retailer.

Next segmentation is about variety of product. Most of all customers need to buy product at

all-in-one company because they no need to spend time to find out products that they want

and increase cost of fuel because nowadays there is fluctuate of fuel price. In addition,

agriculturists need to use every product for agriculture therefore, all-in-one company is the

answer to serve their need all cultivate season. (from interview of Mr. Jarun Lougetragoon,

Chiang-Rai Economic Situation, 2007 - Somapa information technology company,

Conclusion of Chiang-Rai Economic Condition, 2009 – Ministry of Commerce Chiang-Rai.)

3.2.2 Targeting

Figure 8: Targeting of Keset Popeang

Note: Own Graphic

The red area is the target of the company. The target of our company is Agriculturist

because there are growing rate of agriculturist is about 9 to 11% each since 2547 to 2550.

Moreover, It trends to continue increasing every year in which there are many factor to effect



them such as increasing of agriculture product price, government help agriculturist to

guarantee agriculture product price and increasing of number of knowledge agriculturist who

join seminar of cooperative or student who congratulate form agriculture major.

As the figure 5, This company is market specialization because our products are more

variety and when the customers come to our company they will buy something that they want

but it’s depend on cultivates times and kind of plants. So, this company no need to do

marketing for all market, our company need to promote only one market is about our

company has more variety of product and good quality of service to attract the customers.

This project set up target of agriculturists into two segments.

The major target is farmers who grow rice in Mae Chan, Chiang Saen, and Mae Sai

area. This target is too large because rice is the most products that export to foreign which is

increasing every year about 7% to 10% or about 10,700 to 11,000 million Baht include all

export but major export are agriculture product., and farmer in Mae Chan is about 624

household and there is area for agriculture about 3,503 unit of area. The minor target is the

general agriculturist who plant rubber tree, corn, and so on. Where is in Mae Chan, Chiang

Saen, and Mae Sai area and hill tribe.

All of our targets need to use many our product, so they will comes to our company to

find all of product that they want separate by cultivate season, most of farmer and general

agriculturist like to buy agriculture equipment and chemical fertilizer to prepare for plant

early. Our company can stock our product before cultivate season to sufficiency our target

sales because this segment like to buy with all-in-one shop to save cost of fuel. Moreover, our

products are more variety with reasonable price and our company is passing way to the town

center and market that easy to see our company and suitable for visit our company. But there

is some trouble that most of farmers like to buy agriculture equipment from their cooperative.

This problem is not too hard solution because there is a little agriculture cooperative that not

enough to serve customer and their product is less variety, so this company has many

opportunities to access to our targets. (from interview of Mr. Jarun Lougetragoon, Conclusion

of Chiang-Rai Economic Condition, 2009 – Ministry of Commerce Chiang-Rai.)



3.2.3 Positioning

Figure 9: Positioning of Kaset Popeang

Note: Own Graphic

The Kaset Popeang Agriculture Company is position on best service and variety of

products. The opportunity that is the key to success of our company is variety of products

because many customers like to get in the agriculture shop that has anything that they want.

They are more difference than competitors that much of competitors are sale only some

brands and something that they are familiar, so most of our competitors are sold with a little

variety products. On the other side, the company has main competitors who are big retailers

and sale more variety product but each of them like to sale in their product such as chemical

fertilizer only or agricultural equipments only. Therefore, the company has opportunity at this

point to positioning to get maximize benefit. Moreover, the next key position is the best

services, it has more influence to effect to our sales. If the company has good quality of

service to our customer, they will become to regular customers too. Even though, The Kaset

Popeang Agriculture Company provided many service to increase satisfaction to our

customers such as the Agricultural expert to give information to our customers and advice



how to solve their problem or general problem, trained employees to serve customers, deliver

products, call center service for serve customer for ordering or consulting, and so on.

3.3 Marketing Mix Strategy

3.3.1 Products & Services

The Kaset Popeang Agriculture Company provided the convenient agriculture shop.

The products of our company are for agriculturist and local people who like to plant

vegetable to eat by themselves. Therefore, our products are more variety products and brands

to serve all of our customers as much as possible. For example: chemical fertilizer and

agricultural equipments, such as insecticide sprayer, lawn mower, feed pump, and so on.

Our company supplier is directly from vendors for fertilizer and other agricultural

equipments. Because most of agriculture shop in Chiang Rai has similar agent that come

from similar located and our chemical fertilizer and agricultural equipments is come from the

international so, the quality of our product is similar with our competitors, but our company

has warrantee that our product are high quality and no fake goods from supplier certificates.

On the part of service, the company base on quality of service that it has many

services to serve our customer to be satisfaction.

Firstly, the company has call center service to serve the customers who call to our

company for check or order our product.

Secondly, the company delivered our products free in 10 kilometers for customers

who buy more than 3,000 Baht. If it more than 10 kilometers, the company will charges

follow the distance.

Thirdly, the company will train our employee with training course by the expert

person.

Fourthly, the company has general advice service in our company to help our

customer who has some trouble about cultivate by the expert person.

Next, the company has advance advice service that the company sent the trained

employees to advice and beware the customers’ farm to increase their cultivate product.



Sixthly, the company has repair & maintain department to serve customers who want

to repair or maintain the product that damaged.

Finally, the company advice how to use some equipment and the company set up

equipment at appointment place of customers.

All of our service is doing with the good relationship, informally and good advices by

trained employees or expert person for get along well with our company conceptual that “we

are specialist that beside your farm”.

3.3.2 Place

Kaset Popeang Agriculture Company is located in Mae Chan that can cover the

customers from many line of agriculturist such as Mae Chan, Mae Sai, Chiang Saen, Nang

Lae and hill tribe. Our company is the passing line to go into town center or fresh market so,

it is the opportunity that there are many our target pass our company. If our company has

more variety of products, much of customers will come to buy in our company like an all-in-

one shop because they will not to find another shop that is making their fuel cost. Moreover,

our company will distribute our product by sent directly to our customers when they ordered

too. In the future, the company may expand the branch around Mae Chan to easy access to

get more customers and get more market shares.



Moreover, First year, Kaset Popeang Agriculture Company have only company in

front of area because the company is newly opened in Mae Chan and the company will stock

our products in suitable volume in our company that sufficient demand of customers at the

first period. In the second year, the company will build the warehouse on the back of area to

stock our product for support increasing demand of customer.

3.3.3 Price

Because our company is base on quality of service so, our products are set up price on

reasonable price but it is to be similar or a little bit more than competitors because Chiang

Rai has many agency to be suppliers that’s make the cost of our products is similar the

competitors. Our price is like a standard for every customer but its divide by volume of order

and fluctuate cost of product each seasoning too. Normally, our target price is base on

supplier multiplies by 20% up to 30% (not include any cost) but no more than competitors to

much to get more profit because our products are more variety and our services are the best.

Our Price is base on our product follow:



Table 6: Fertilizer Products

Fertilizer Cost Price

Urea Fertilizer 46-0-0 (Hor Woer) 680 720

Urea Fertilizer 46-0-0 (Kra Tai) 680 720

Urea Fertilizer 46-0-0 (Mar Bin) 660 700







Table 7: Chemical Products

Chemicals Cost Price

Gramoxzone 1 Lites 140 145

Gramoxzone 5 Lites 575 620

Paraquat 1Lites 126 130

Paraquat 5Lites 470 520

Glyphosate 1 Lites 136 140

Glyphosate 5 Lites 460 500

Cypermetrin 35 100 cc. 82 90

Limer 10 100 cc. 185 200

Abamectin 500 cc. 145 150

Abamectin 100 cc. 50 55

Ragen 100 g. 43 45

Zinto 500g. 180 190

Zerus 250 cc. 361 380

Capremium 100 g. 55 60

Dermic 500cc. 90 100

Buternin 55 100cc. 255 260

Nam dum 750cc. 20 25

Nam kwaw 750cc. 20 25

Varansia 10 1kg. 163 170

Varansia 10 100cc. 31 35

Fronk 10 1kg. 163 170

Fronk 10 500g. 105 110

Fronk 10 100cc. 33 35

Abalucus 1Lites 338 350

Rumartin 1Lites 339 350

Redblue Omotoaid 1Lites 490 300

Master comfirm-L 1Lites 890 950

Pakdeng 35 1Lites 336 350



Pakdeng 35 500cc. 209 220

Cypermetrin 10 100cc. 31 35

Cypermetrin 25 100cc. 40 45

Almic 15 kg. 300 315

Vit 75 250cc. 269 280

Microbe Bio EX-M 85 99

Dope-D 335 350

Natural Natrients (Colourful) 205 220

High Humic 335 350

Table 8: Seed products

Seed Cost Price

Spinach Seed 500 g 198 220

Cow-pea Seed 500 g 198 220

Pea Seed 500 g 198 220

Chinese Cabbage Seed 500 g 63 70

Chinese Cabbage Seed 100 g 27 30

Corn Seed 500 g 63 70

Pumpkin Seed 500 g 135 150

Parsley Seed 500 g 77 85

Flowering White Seed 500 g 77 85

Drynaria Bonii Seed 500 g 65 72

Drynaria Bonii Seed 100 g 29 32

Table 9: Agricultural Products

Agricultural equipment Cost Price

Sprayer 67 95

Sprayer Yamano 557 795

Sprayer Osatu (Stra 16 Green) 1,610 2,300

Sprayer Yamano EM-16 (Fertilizer) 2,170 3,100

Sprayer Yamano EM-18 (Insecticide) 2,905 4,150

Farm Pump 1,050 1,500

Brush Cutter Blade 12" 84 120

Brush Cutter Blade 14" 98 140

Brush Cutter Blade (Germany) 154 220

Brush Cutter Blade (China) 105 150

Grass Trimmer Metal Blade 12" 98 140

Grass Trimmer Metal Blade 14" 115 160

Conveyor No. 82 74 82



http://dict.longdo.com/search/pumpkin

http://www.bossgoo.com/product-Tool-Parts/Grass-Trimmer-Metal-Blade-3T-40T-80T--196392.html









Tapered Roller No. 6205 40 50



Brush Cutter Gear 595 850

Brush Cutter Clutch 315 450

Brush Cutter Robin 411 6,230 8,900

Brush Cutter China 411 2,660 3,800

Fabric Pump No. 3" 145 160




Water Pump Honda 3" 7,650 8,500

Water Pump Honda 2" 6,750 7,500

Water Pump China 3" 3,150 4,500

Hoe (Cho Ra Ker) 220 245

Hoe (Sap Pa Rod) 135 150

3.3.4 Promotion

Our communication mixes are dividing into 4 parts: Advertising, Sales Promotion,

Event and Experiences, and Public relations.

First of all, that is advertising, the company is promoting our company by leaflet and

poster around Mae Chan, Chiang Saen, and Mae Sai area. And the company allows

advertising on local radio too. The company thinks that is the suitable way to easy access our

customers.

The second is sales promotion, our company provide the reasonable price by set up

special price to customers before cultivate season and customers who buy with large size in

normally season because it help us to sell too much scale of sales. Another promotion is gift

to the customers of each festival like happy New Year for build relationship with our

customer to be the regular customers in the future. Moreover, the company has free deliver

service in 10 kilometers for the customers who order our product more than 3,000 Baht.




Next are event & experiences, the company has the training course for our employees

by expert person to serve the customer. In our company, there are trained employees and the

expert person. Trained employees will advice our product and help our customers to find

products. All of employees must past the training course to know all of information of

product and instruction, so the customer can trust our service that our employees are advising.

The characteristics of employees must be clean, reliable, friendly, communication and

politeness. In addition, the expert person wills advice the customers when they have any

problem about cultivate. Then, the company has the event that the company will go to the

customers’ farm to check their farm and advice how to increase cultivate product by trained

employees when the customers want to get this help, but the customers need to make an

appointment first.

The last promotion is Public relations. Our company will establish event with Chiang

Rai big fair such as Phor khun festival to promote our company to increase customer

perception. At that Fair, the company is not sales to much because objective of our fair is

customers’ perception of our company and the company has to help agriculturist by have the

agriculture expert to advice our customers too.

3.4 Sales Forecast

Our company forecast that the sale volume depend with the agricultural area and

agricultural family, fertilizer, seed and chemical products are using the agricultural area and

the sale volume of agricultural equipments analysis from number of agricultural family.

Therefore, there is 232,250 rai for growing rice, 104,846 rai for growing corn and 4,859 rai



for growing vegetables including Chiang Sean, Mae Chan, and Mae Sai. The total is 337,096

rai

Figure 10: Agricultural Area of Mae Chan, Chiang Sean and MaeSai

Note: Department of Agricultural Extension

Moreover, according to office of commercial affairs Chiang Rai (2008), Chiang Rai

has approximate 516,935 agriculturists in Chiang Rai. There are 42,459 agriculturists in Mae

Chan, 15,085 agriculturists in Chiang Saen and 25,784 agriculturists in Mae Sai. It means the

total number of agriculturists who are our targeting 83,328 people. Hence, number of

agricultural family is 20,832 in which average of family has four people.

Corn, 104,846 rai

Rice, 232,250 rai

Other Vegetable, 4,859 rai

Corn

Rice

Other Vegetable



Figure 11: Number of Agricultural Family in Mae Chan, Mae Sai and Chiang Saen

Note: office of commercial affairs Chiang Rai

As the chapter of competition analysis says that our competitor could be divided into

two groups, the first group is huge competitor who has high market share, and another group

is small competitor who has low market share. Our company analysis that the positioning of

company is medium, therefore our market share is medium also in which is 18% of total

market share.

Figure 12: Expected Market Share Of Keset Popeang

Note: Own graphic

10,615 Agricultural

Family3,771

Agricultural Family

6,446 Agricultural

FamilyMae Chan

Mae Sai

Chiang Saen

82%

18% Market share of competitors

Market share of Kaset Popeang



Whole market value of agricultural products

As the chapter of competition analysis says that the whole market value of fertilizer,

seed, Chemical product, and agricultural product is 445,257,120 baht in Mae Chan, Mae Sai,

and Chiang Saen. It is divided into two markers in which there are fertilizers, chemical

products and seed that has value 314,015,520 baht, another group is agricultural equipments

that has value 131,241,600 baht. The among of market value is high and interesting in order

to investment.

Figure 13: Trend of sale of Agricultural product&part

Note: Own Graphic

Figure 14: Trend of sale of Fertilizer & Chemical Product

Note: Own Graphic



According to interview entrepreneurs, the recorded data shows that trend of fertilizer

& chemical product and agricultural equipment & part is difference. As the figure 13,

agricultural product & part could usually well sale on the first and the end of year. It is

September until February, those months are the period of pre cultivation. Moreover, trend of

fertilizer & chemical product is opposite with the last one. It could usually well sale on

February until June and September until November as the figure 14. On the other hand, our

company forecast that the total sale of the first year is not quite well because there are

existing competitors and actually our company is using communication mixed to attract the

customer in order to buy our products.

Hence, if both trends of sale are combined together, our company could get profit for

the whole year.

As the report said that in chapter of situation of industry, price of agricultural outcome

has been increasing every year such as rice and corn. It is reasons in which if price of

agricultural outcome is quite good, the agriculturist trend to crop that more plant. In addition,

agriculturists need to buy fertilizer, seed or equipment in order to prepare next seasoning of

crop. Our expected of growth rate is 3% to 8%, that related with situation in each year.

According to information above, our market share compares with competitor in which

is 18%, therefore, our company get 30,339 sacks per round and there are two seasoning for

crop. It is 60,678 sacks per years in all market volume of fertilizers. In addition, the volume

of chemical product is 24,620 units that are sold in the first year. Chiang rai has 4,859 rai for

vegetable in which is not including rice or corn. Therefore, the market volume of seed is

3,499 units

Table 10: Show the Market volume of each product

Description Market volume of product

Fertilizer 60,678 sacks

Chemical product 24,620 units

Seed 3,499 units

Agricultural

equipment

1,875 – 5,625 units (depend on type of

product)

Note: Own graphic



Table 11: Five Years - Sale Forecast

First Year

Units Sale Units Sale Units Sale Units Sale Units Sale Units Sale

Fertilizer 660 720 971 699,011 1,456 1,048,516 2,427 1,747,526 3,398 2,446,537 3,398 2,446,537 3,883 2,796,042

Seed 120 150 140 20,994 140 20,994 140 20,994 140 20,994 280 41,988 280 41,988

Chemical Product 440 500 394 394 591 295,440 985 492,400 1,379 689,360 1,379 689,360 1,576 787,840

Sprayer 2,170 3,100 45 139,500 60 186,000 75 232,500 60 186,000 105 325,500 90 279,000

Conveyor 170 200 90 18,000 120 24,000 150 30,000 120 24,000 210 42,000 180 36,000

Brush Cutter 2,660 3,800 45 171,000 60 228,000 75 285,000 60 228,000 105 399,000 90 342,000

Fabric Pump 130 160 90 14,400 120 19,200 150 24,000 120 19,200 210 33,600 180 28,800

Water Pump 3,150 4,500 45 202,500 60 270,000 75 337,500 60 270,000 105 472,500 90 405,000

Agricultural Part 115 160 135 21,600 180 28,800 225 36,000 180 28,800 315 50,400 270 43,200

1,955 1,287,398 2,787 2,120,950 4,302 3,205,920 5,517 3,912,891 6,107 4,500,885 6,639 4,759,870

Feb Mar JunApr May

DescriptionCost Price

Total

Jan

Units Sale Units Sale Units Sale Units Sale Units Sale Units Sale Units Sale

2,427 1,747,526 3,398 2,446,537 5,825 4,194,063 7,281 5,242,579 7,281 5,242,579 6,796 4,893,074 48,542 34,950,528

280 41,988 280 41,988 280 41,988 280 41,988 280 41,988 280 41,988 2,799 419,880

985 492,400 1,379 689,360 2,364 1,181,760 2,954 1,477,200 2,954 1,477,200 2,757 1,378,720 19,696 9,651,434

105 325,500 120 372,000 150 465,000 195 604,500 240 744,000 255 790,500 1,500 4,650,000

210 42,000 240 48,000 300 60,000 390 78,000 480 96,000 510 102,000 3,000 600,000

105 399,000 120 456,000 150 570,000 195 741,000 240 912,000 255 969,000 1,500 5,700,000

210 33,600 240 38,400 300 48,000 390 62,400 480 76,800 510 81,600 3,000 480,000

105 472,500 120 540,000 150 675,000 195 877,500 240 1,080,000 255 1,147,500 1,500 6,750,000

315 50,400 360 57,600 450 72,000 585 93,600 720 115,200 765 122,400 4,500 720,000

4,742 3,604,914 6,257 4,689,885 9,969 7,307,811 12,466 9,218,767 12,916 9,785,767 12,383 9,526,782 86,038 63,921,842

Dec TotalJul Aug Oct NovSep



Second Year


Fertilizer 660 720 2,427 1,747,526 1,820 1,310,645 5,461 3,931,934 6,675 4,805,698 7,281 5,242,579 6,068 4,368,816

Seed 120 150 350 52,485 350 52,485 350 52,485 350 52,485 175 26,243 175 26,243

Chemical Product 440 500 985 492,400 739 369,300 2,216 1,107,900 2,708 1,354,100 2,954 1,477,200 2,462 1,231,000

Sprayer 2,170 3,100 263 813,750 150 465,000 94 290,625 75 232,500 75 232,500 75 232,500

Conveyor 170 200 525 105,000 300 60,000 188 37,500 150 30,000 150 30,000 150 30,000

Brush Cutter 2,660 3,800 263 997,500 150 570,000 94 356,250 75 285,000 75 285,000 75 285,000

Fabric Pump 130 160 525 84,000 300 48,000 188 30,000 150 24,000 150 24,000 150 24,000

Water Pump 3,150 4,500 263 1,181,250 150 675,000 94 421,875 75 337,500 75 337,500 75 337,500


6,387 5,599,911 4,409 3,622,430 8,964 6,273,569 10,483 7,157,283 11,161 7,691,022 9,455 6,571,059

Jan Feb Mar Apr May Jun


Total


3,641 2,621,290 3,034 2,184,408 6,068 4,368,816 7,281 5,242,579 7,281 5,242,579 3,641 2,621,290 60,678 43,688,160

175 26,243 175 26,243 350 52,485 350 52,485 350 52,485 350 52,485 3,499 524,850

1,477 738,600 1,231 615,500 2,462 1,231,000 2,954 1,477,200 2,954 1,477,200 1,477 738,600 24,620 12,310,000

94 290,625 131 406,875 169 523,125 206 639,375 263 813,750 281 871,875 1,875 5,812,500

188 37,500 263 52,500 338 67,500 413 82,500 525 105,000 563 112,500 3,750 750,000

94 356,250 131 498,750 169 641,250 206 783,750 263 997,500 281 1,068,750 1,875 7,125,000

188 30,000 263 42,000 338 54,000 413 66,000 525 84,000 563 90,000 3,750 600,000

94 421,875 131 590,625 169 759,375 206 928,125 263 1,181,250 281 1,265,625 1,875 8,437,500

281 45,000 394 63,000 506 81,000 619 99,000 788 126,000 844 135,000 5,625 900,000

6,230 4,567,382 5,752 4,479,901 10,567 7,778,551 12,648 9,371,014 13,211 10,079,764 8,280 6,956,125 107,547 80,148,010

TotalOct Nov DecJul Aug Sep



Third Year


Fertilizer 660 720 2,548 1,834,903 1,911 1,376,177 5,734 4,128,531 7,008 5,045,982 7,645 5,504,708 6,371 4,587,257

Seed 120 150 367 55,109 367 55,109 367 55,109 367 55,109 184 27,555 184 27,555

Chemical Product 440 500 1,034 517,020 776 387,765 2,327 1,163,295 2,844 1,421,805 3,102 1,551,060 2,585 1,292,550

Sprayer 2,170 3,100 276 854,438 158 488,250 98 305,156 79 244,125 79 244,125 79 244,125

Conveyor 170 200 551 110,250 315 63,000 197 39,375 158 31,500 158 31,500 158 31,500

Brush Cutter 2,660 3,800 276 1,047,375 158 598,500 98 374,063 79 299,250 79 299,250 79 299,250

Fabric Pump 130 160 551 88,200 315 50,400 197 31,500 158 25,200 158 25,200 158 25,200

Water Pump 3,150 4,500 276 1,240,313 158 708,750 98 442,969 79 354,375 79 354,375 79 354,375


6,706 5,879,907 4,629 3,803,551 9,412 6,587,248 11,007 7,515,147 11,719 8,075,573 9,927 6,899,611Total

JunJan Feb Mar Apr May



3,823 2,752,354 3,186 2,293,628 6,371 4,587,257 7,645 5,504,708 7,645 5,504,708 3,823 2,752,354 63,712 45,872,568

184 27,555 184 27,555 367 55,109 367 55,109 367 55,109 367 55,109 3,674 551,093

1,551 775,530 1,293 646,275 2,585 1,292,550 3,102 1,551,060 3,102 1,551,060 1,551 775,530 25,851 12,925,500

98 305,156 138 427,219 177 549,281 217 671,344 276 854,438 295 915,469 1,969 6,103,125

197 39,375 276 55,125 354 70,875 433 86,625 551 110,250 591 118,125 3,938 787,500

98 374,063 138 523,688 177 673,313 217 822,938 276 1,047,375 295 1,122,188 1,969 7,481,250

197 31,500 276 44,100 354 56,700 433 69,300 551 88,200 591 94,500 3,938 630,000

98 442,969 138 620,156 177 797,344 217 974,531 276 1,240,313 295 1,328,906 1,969 8,859,375

295 47,250 413 66,150 532 85,050 650 103,950 827 132,300 886 141,750 5,906 945,000

6,542 4,795,751 6,040 4,703,896 11,096 8,167,479 13,281 9,839,565 13,871 10,583,752 8,694 7,303,931 112,924 84,155,411

Dec TotalJul Aug Oct NovSep



Fourth Year


Fertilizer 660 720 2,646 1,904,804 1,984 1,428,603 5,953 4,285,808 7,275 5,238,210 7,937 5,714,411 6,614 4,762,009

Seed 120 150 381 57,209 381 57,209 381 57,209 381 57,209 191 28,604 191 28,604


Sprayer 2,170 3,100 286 886,988 164 506,850 102 316,781 82 253,425 82 253,425 102 316,781

Conveyor 170 200 572 114,450 327 65,400 204 40,875 164 32,700 164 32,700 204 40,875

Brush Cutter 2,660 3,800 286 1,087,275 164 621,300 102 388,313 82 310,650 82 310,650 102 388,313

Fabric Pump 130 160 572 91,560 327 52,320 204 32,700 164 26,160 164 26,160 204 32,700

Water Pump 3,150 4,500 286 1,287,563 164 735,750 102 459,844 82 367,875 82 367,875 102 459,844


6,962 6,103,903 4,806 3,948,448 9,771 6,838,191 11,426 7,801,438 12,165 8,383,214 10,510 7,419,966



Total


3,968 2,857,206 3,307 2,381,005 6,614 4,762,009 7,937 5,714,411 7,937 5,714,411 3,968 2,857,206 66,139 47,620,094

191 28,604 191 28,604 381 57,209 381 57,209 381 57,209 381 57,209 3,814 572,087

1,610 805,074 1,342 670,895 2,684 1,341,790 3,220 1,610,148 3,220 1,610,148 1,610 805,074 26,836 13,417,900

143 443,494 184 570,206 225 696,919 286 886,988 307 950,344 307 950,344 2,269 7,032,544

286 57,225 368 73,575 450 89,925 572 114,450 613 122,625 613 122,625 4,537 907,425

143 543,638 184 698,963 225 854,288 286 1,087,275 307 1,164,938 307 1,164,938 2,269 8,620,538

286 45,780 368 58,860 450 71,940 572 91,560 613 98,100 613 98,100 4,537 725,940

143 643,781 184 827,719 225 1,011,656 286 1,287,563 307 1,379,531 307 1,379,531 2,269 10,208,531

429 68,670 552 88,290 674 107,910 858 137,340 920 147,150 920 147,150 6,806 1,088,910

7,200 5,493,471 6,679 5,398,117 11,927 8,993,646 14,400 10,986,943 14,604 11,244,455 9,026 7,582,176 119,474 90,193,968

TotalOct Nov DecJul Aug Sep



Fifth Year


Fertilizer 660 720 2,767 1,992,180 2,075 1,494,135 6,226 4,482,405 7,609 5,478,495 8,301 5,976,540 6,917 4,980,450

Seed 120 150 399 59,833 399 59,833 399 59,833 399 59,833 199 29,916 199 29,916


Sprayer 2,170 3,100 299 927,675 171 530,100 107 331,313 86 265,050 86 265,050 86 265,050

Conveyor 170 200 599 119,700 342 68,400 214 42,750 171 34,200 171 34,200 171 34,200

Brush Cutter 2,660 3,800 299 1,137,150 171 649,800 107 406,125 86 324,900 86 324,900 86 324,900

Fabric Pump 130 160 599 95,760 342 54,720 214 34,200 171 27,360 171 27,360 171 27,360

Water Pump 3,150 4,500 299 1,346,625 171 769,500 107 480,938 86 384,750 86 384,750 86 384,750


7,281 6,383,899 5,026 4,129,570 10,219 7,151,869 11,950 8,159,302 12,723 8,767,765 10,778 7,491,007


Total



4,150 2,988,270 3,459 2,490,225 6,917 4,980,450 8,301 5,976,540 8,301 5,976,540 4,150 2,988,270 69,173 49,804,502

199 29,916 199 29,916 399 59,833 399 59,833 399 59,833 399 59,833 3,989 598,329

1,684 842,004 1,403 701,670 2,807 1,403,340 3,368 1,684,008 3,368 1,684,008 1,684 842,004 28,067 14,033,400

107 331,313 150 463,838 192 596,363 235 728,888 299 927,675 321 993,938 2,138 6,626,250

214 42,750 299 59,850 385 76,950 470 94,050 599 119,700 641 128,250 4,275 855,000

107 406,125 150 568,575 192 731,025 235 893,475 299 1,137,150 321 1,218,375 2,138 8,122,500

214 34,200 299 47,880 385 61,560 470 75,240 599 95,760 641 102,600 4,275 684,000

107 480,938 150 673,313 192 865,688 235 1,058,063 299 1,346,625 321 1,442,813 2,138 9,618,750

321 51,300 449 71,820 577 92,340 705 112,860 898 143,640 962 153,900 6,413 1,026,000

7,103 5,206,816 6,558 5,107,087 12,047 8,867,548 14,419 10,682,956 15,060 11,490,931 9,440 7,929,982 122,604 91,368,731

Oct Nov Dec TotalJul Aug Sep



Profit Estimation

There is no account receivable, the cash receive is equal total sale in each year.

Table 12: Five Years - Cash Receive

First Year

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

Fertilizer 699,011 1,048,516 1,747,526 2,446,537 2,446,537 2,796,042 1,747,526 2,446,537 4,194,063 5,242,579 5,242,579 4,893,074 34,950,528

Seed 20,994 20,994 20,994 20,994 41,988 41,988 41,988 41,988 41,988 41,988 41,988 41,988 419,880

Chemical Product 394 295,440 492,400 689,360 689,360 787,840 492,400 689,360 1,181,760 1,477,200 1,477,200 1,378,720 9,651,434

Sprayer 139,500 186,000 232,500 186,000 325,500 279,000 325,500 372,000 465,000 604,500 744,000 790,500 4,650,000

Conveyor 18,000 24,000 30,000 24,000 42,000 36,000 42,000 48,000 60,000 78,000 96,000 102,000 600,000

Brush Cutter 171,000 228,000 285,000 228,000 399,000 342,000 399,000 456,000 570,000 741,000 912,000 969,000 5,700,000

Fabric Pump 14,400 19,200 24,000 19,200 33,600 28,800 33,600 38,400 48,000 62,400 76,800 81,600 480,000

Water Pump 202,500 270,000 337,500 270,000 472,500 405,000 472,500 540,000 675,000 877,500 1,080,000 1,147,500 6,750,000

Agricultural Part 21,600 28,800 36,000 28,800 50,400 43,200 50,400 57,600 72,000 93,600 115,200 122,400 720,000

Total 1,287,398 2,120,950 3,205,920 3,912,891 4,500,885 4,759,870 3,604,914 4,689,885 7,307,811 9,218,767 9,785,767 9,526,782 63,921,842



Second Year

Third Year


Fertilizer 1,747,526 1,310,645 3,931,934 4,805,698 5,242,579 4,368,816 2,621,290 2,184,408 4,368,816 5,242,579 5,242,579 2,621,290 43,688,160

Seed 52,485 52,485 52,485 52,485 26,243 26,243 26,243 26,243 52,485 52,485 52,485 52,485 524,850

Chemical Product 492,400 369,300 1,107,900 1,354,100 1,477,200 1,231,000 738,600 615,500 1,231,000 1,477,200 1,477,200 738,600 12,310,000

Sprayer 813,750 465,000 290,625 232,500 232,500 232,500 290,625 406,875 523,125 639,375 813,750 871,875 5,812,500

Conveyor 105,000 60,000 37,500 30,000 30,000 30,000 37,500 52,500 67,500 82,500 105,000 112,500 750,000

Brush Cutter 997,500 570,000 356,250 285,000 285,000 285,000 356,250 498,750 641,250 783,750 997,500 1,068,750 7,125,000

Fabric Pump 84,000 48,000 30,000 24,000 24,000 24,000 30,000 42,000 54,000 66,000 84,000 90,000 600,000

Water Pump 1,181,250 675,000 421,875 337,500 337,500 337,500 421,875 590,625 759,375 928,125 1,181,250 1,265,625 8,437,500


Total 5,599,911 3,622,430 6,273,569 7,157,283 7,691,022 6,571,059 4,567,382 4,479,901 7,778,551 9,371,014 10,079,764 6,956,125 80,148,010


Fertilizer 1,834,903 1,376,177 4,128,531 5,045,982 5,504,708 4,587,257 2,752,354 2,293,628 4,587,257 5,504,708 5,504,708 2,752,354 45,872,568

Seed 55,109 55,109 55,109 55,109 27,555 27,555 27,555 27,555 55,109 55,109 55,109 55,109 551,093


Sprayer 854,438 488,250 305,156 244,125 244,125 244,125 305,156 427,219 549,281 671,344 854,438 915,469 6,103,125

Conveyor 110,250 63,000 39,375 31,500 31,500 31,500 39,375 55,125 70,875 86,625 110,250 118,125 787,500

Brush Cutter 1,047,375 598,500 374,063 299,250 299,250 299,250 374,063 523,688 673,313 822,938 1,047,375 1,122,188 7,481,250

Fabric Pump 88,200 50,400 31,500 25,200 25,200 25,200 31,500 44,100 56,700 69,300 88,200 94,500 630,000

Water Pump 1,240,313 708,750 442,969 354,375 354,375 354,375 442,969 620,156 797,344 974,531 1,240,313 1,328,906 8,859,375


Total 5,879,907 3,803,551 6,587,248 7,515,147 8,075,573 6,899,611 4,795,751 4,703,896 8,167,479 9,839,565 10,583,752 7,303,931 84,155,411



Fourth Year

Fifth Year


Fertilizer 1,904,804 1,428,603 4,285,808 5,238,210 5,714,411 4,762,009 2,857,206 2,381,005 4,762,009 5,714,411 5,714,411 2,857,206 47,620,094

Seed 57,209 57,209 57,209 57,209 28,604 28,604 28,604 28,604 57,209 57,209 57,209 57,209 572,087


Sprayer 886,988 506,850 316,781 253,425 253,425 316,781 443,494 570,206 696,919 886,988 950,344 950,344 7,032,544

Conveyor 114,450 65,400 40,875 32,700 32,700 40,875 57,225 73,575 89,925 114,450 122,625 122,625 907,425

Brush Cutter 1,087,275 621,300 388,313 310,650 310,650 388,313 543,638 698,963 854,288 1,087,275 1,164,938 1,164,938 8,620,538

Fabric Pump 91,560 52,320 32,700 26,160 26,160 32,700 45,780 58,860 71,940 91,560 98,100 98,100 725,940

Water Pump 1,287,563 735,750 459,844 367,875 367,875 459,844 643,781 827,719 1,011,656 1,287,563 1,379,531 1,379,531 10,208,531

Agricultural Part 137,340 78,480 49,050 39,240 39,240 49,050 68,670 88,290 107,910 137,340 147,150 147,150 1,088,910

Total 6,103,903 3,948,448 6,838,191 7,801,438 8,383,214 7,419,966 5,493,471 5,398,117 8,993,646 10,986,943 11,244,455 7,582,176 90,193,968


Fertilizer 1,992,180 1,494,135 4,482,405 5,478,495 5,976,540 4,980,450 2,988,270 2,490,225 4,980,450 5,976,540 5,976,540 2,988,270 49,804,502

Seed 59,833 59,833 59,833 59,833 29,916 29,916 29,916 29,916 59,833 59,833 59,833 59,833 598,329


Sprayer 927,675 530,100 331,313 265,050 265,050 265,050 331,313 463,838 596,363 728,888 927,675 993,938 6,626,250

Conveyor 119,700 68,400 42,750 34,200 34,200 34,200 42,750 59,850 76,950 94,050 119,700 128,250 855,000

Brush Cutter 1,137,150 649,800 406,125 324,900 324,900 324,900 406,125 568,575 731,025 893,475 1,137,150 1,218,375 8,122,500

Fabric Pump 95,760 54,720 34,200 27,360 27,360 27,360 34,200 47,880 61,560 75,240 95,760 102,600 684,000

Water Pump 1,346,625 769,500 480,938 384,750 384,750 384,750 480,938 673,313 865,688 1,058,063 1,346,625 1,442,813 9,618,750

Agricultural Part 143,640 82,080 51,300 41,040 41,040 41,040 51,300 71,820 92,340 112,860 143,640 153,900 1,026,000

Total 6,383,899 4,129,570 7,151,869 8,159,302 8,767,765 7,491,007 5,206,816 5,107,087 8,867,548 10,682,956 11,490,931 7,929,982 91,368,731



3.5 Marketing Expenses

Market expenses are the cost that our company use for promoted our company. Each

cost is separate by each season too.

First is leaflets and posters, our company use poster for promoted around Mae Chan,

Chiang Saen, and Mae Sai area. Our company distributed leaflet and poster for 3 month of

each year: December, January and February because these months is the season that the

agriculture harvested and prepare for new cultivated. Therefore, agriculturist will need

products for agriculture in this season. The cost of launching radio is 3,500 baht for a radio

station

Second, our company will allows advertising on local radio that is 99.00 and 101.75

all year. For the first half year, our company allows two local radio stations in the afternoon

because our company wants to attract to our customer to know our company, and our

company launch advertising in the afternoon because in the morning, the agriculturist use the

time for doing the farm. After a half of year, our company will reduce the radio station to

only one station because the customers know much about our company.

Third, our company send gift to the customers at the important festival like Happy

New Year and Songkran Day. For Happy New Year Festival, our company will give the

calendar for Happy New Year customers and Songkran Day, our company will gift to the

customer such as bags or shirts to build good relationship with customers.

The last, our company will establish the event with Chiang Rai big fair such as Phor

khun festival on January because it is the important festival in Chiang Rai and there are many

agriculturists who go to Phor khun festival. Actually, the cost is 10,000 baht for rent.



Table 13: Five Years - Marketing Expenses

First Year

Second Year


Radio 7,000 7,000 7,000 7,000 7,000 7,000 3,500 3,500 3,500 3,500 3,500 3,500 63,000

Leaflet & Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Sales Promotion 0 0 0 5,000 0 0 0 0 0 0 0 5,000 10,000

Trasportation 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000

Event 10,000 5,000 0 0 0 0 0 0 0 0 0 5,000 20,000

Training session 0 0 0 0 0 3,000 0 0 0 0 0 3,000 6,000

Repairing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total 32,000 27,000 20,000 25,000 20,000 23,000 16,500 16,500 16,500 16,500 16,500 31,500 261,000


Radio 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000

Leaflet & Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Sales Promotion 0 0 0 5,000 0 0 0 0 0 0 0 5,000 10,000

Trasportation 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000

Event 10,000 5,000 0 0 0 0 0 0 0 0 0 5,000 20,000


Repairing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total 28,500 23,500 16,500 21,500 16,500 19,500 16,500 16,500 16,500 16,500 16,500 31,500 240,000



Third Year

Fourth Year


Radio 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000

Leaflet & Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Sales Promotion 0 0 0 5,000 0 0 0 0 0 0 5,000 10,000

Trasportation 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000

Event 10,000 5,000 0 0 0 0 0 0 0 0 0 5,000 20,000


Repairing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total 28,500 23,500 16,500 21,500 16,500 19,500 16,500 16,500 16,500 16,500 16,500 31,500 240,000


Radio 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000

Leaflet & Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Sales Promotion 0 0 0 5,000 0 0 0 0 0 0 0 5,000 10,000

Trasportation 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000


Repairing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total 18,500 18,500 16,500 21,500 16,500 19,500 16,500 16,500 16,500 16,500 16,500 26,500 220,000



Fifth Year


Radio 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000

Leaflet & Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Sales Promotion 0 0 0 5,000 0 0 0 0 0 0 0 5,000 10,000

Trasportation 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000


Repairing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total 18,500 18,500 16,500 21,500 16,500 19,500 16,500 16,500 16,500 16,500 16,500 26,500 220,000



3.6 Conclusion

At the present, agriculture is becoming more popular and easier for people to do; there are

many technologies that help agriculturist to farm easier and faster. So it does not require

many people to do farming. In addition, government tries to guaranty price of crops in order

to help agriculturist. That is good signal in which is for our shop also. In contrast, agricultural

products are still necessary of the world, every people have to eat vegetables and crops.

Therefore, Seed, Equipments of agriculture and whatever of agriculture stuffs could still sell

in market.

As information from interviewing of entrepreneurs, the company gets many segment

of customer but the company chooses two segments in which are appropriate with our shop.

Our position is on best service and provides variety of products to customer. In 4’Ps, our shop

will catch customer by using communication mixed. Our price is reasonable price that offered

to every customer. Our company will sell general agricultural products as the same with

competitors. However, in term of product & service, which have difference service for

providing customer that is helping customer increase crops. The location of our shop is on

intersection road where target customers are around Mae Chan, Mae Sai, and Chiang Saen.

In sale forecast, our company forecast the revenue and expense from number of

agriculturist in targeting market and area of cultivate. Our sale is related with seasoning of

crop, when the agriculturists are during cultivating, the number of sale’s fertilizer is high. On

the other hand, the number of sale’s agricultural equipment could sell before cultivating. The

growth rates of our company analysis that comparing with trend of agricultural outcome’s

price. If the price of agricultural outcome is increasing, the number of sale on agricultural

product will increase also. Moreover, as our company is new entry, the customers do not

know us as well. Therefore, marketing communication mixed is used in order to attract

customers that make them to know and recognize our company such as radio, sale promotion,

event and gift.

We forecast sale estimate in five years, the accumulate sale is approximate

20,000,000 baht in five years. We think first two years our product could not sale as much as

our expected, but after two years, our sale has been increasing higher. We would not give

credit to customers because the risk is high to sell by credit.

Chapter 4: Technical Feasibility Study 60


Chapter 4: Technical Feasibility Study

Chapter 4:

Technical Feasibility Study



FOLLOWING POINTS:

1. Production&Service

Analysis

2. Retail Management

3. Logistics Management

4. Organization

Management

5. Cost of Investment

6. Management Analysis



Chapter 4: Technical Feasibility Study

4.1 Production and Operation Analysis

4.1.1 Product Characteristics

Fertilizer

"N" stands for Nitrogen.

Nitrogen is the first number. Nitrogen promotes plant growth above the ground. With plenty

of nitrogen a plant will grow quickly and have rich green foliage.

"P" stands for Phosphorus.

Phosphorus is the second number. Phosphorus is beneficial for healthy growth. It helps a

plant grow strong roots, it helps with flower production, and it helps make plants stronger to

resist diseases.

"K" stands for Potassium.

Potassium is the third number. Potassium is necessary for growing strong plants. It helps

makes them stronger to resist disease, it helps to make them less susceptible to damage from

the cold, and it helps protect them from excessive moisture loss during dry spells.

Formula 15-15-15

This formula is standard of fertilizer which agriculturist can use for every type

of cultivation. Brand of fertilizer are compose of; Kratai and Hua wua.

Formula 46-0-0

This formula is pure nitrogen, will help a plant grow quickly and have rich

green foliage. Brand of fertilizer are compose of; Kratai, Hua wua and Mar bin.

Formula 21-0-0

This formula is pure nitrogen but not very strong and use for medium level

plant. Brand of fertilizer are compose of; Kratai and Hua wua.



Formula 16-20-0

This formula is use for helps a plant grow strong roots, it helps with flower

production. Brand of fertilizer are compose of; Kratai and Hua wua.

Formula 13-13-21

This formula is use to help grow strong root, trunk and leaves for good weight

and strong plant. Almost this formula is used with 20-0-0 or 21-0-0. Brand of

fertilizer are compose of; Kratai and Hua wua.



Insecticide

Insecticide is a pesticide used against insects and effectiveness of insecticides is

depending on chemical formula. Some formula can use for some kind of insect. Moreover,

this group is composing of disease of plants so insecticide will be dividing into 2 groups. One

is group that divided by kind of insect. For example;

Abamectin 500 cc. Cypermetrin 35 100 cc

Simer 10 100 cc. Imida 100

Weed killer

There are two types; Root absorb and Leaves absorb

Root absorb

This type destroys weed by direct absorb to the root and destroy the root. The

weed will die from the root. Type of root absorb are consist of; Gramoxone and

paraquat.



Leaves absorb

This type starts destroying leaves of the weed and then will go to the root.

Type of root absorb is Glyphosate.

Seed

Seed was packed by can and wrapper which has time, date of production and expire

date of seed. There are much kind of plants and quality of seed.



Agriculture equipment and parts

Agriculture equipments are consisting of; Brush cutter; the brush blade was

exclusively designed for its shear cutting action. It has a much faster cutting ability than

conventional, bar type, rotary blades. The brush cutter blade will effectively cut all growth,

up to 2 inches in diameter, flush to the ground, leaving no unsightly or dangerous stumpage.

Gasoline engine; is single-cylinder two-stroke air-cooled small-size and light-

weighted gasoline engine, its construction is sample, operation and maintenance are easy.

Gasoline engine are used as power for back pack brush cutter, water-pump, mini-cultivator

etc.

Sprayer; is likely a gasoline engine but this product use the power from humanity

power to spray chemical product.



Water pump; is the pump in the cooling system of an automobile that cause the water

to circulate. In agricultural, agriculturist always use water pump from source of water to

cultivation area.

Parts are for fixing machines and equipments such as;



4.1.2 Product Process

The agriculture equipments, fertilizers, seed, and insecticides in Chiang Rai have

many brands and the company cannot produce by our selves, so our products come from

suppliers. About services, our company give information to our customer about their problem

and the company will advice how to solve it or how to use equipment by advice all of our

customers with good condition to keep relationship

For the production process: there are many processes from suppliers to our customers

following:

Figure 15: Process of supplier to customer

Our company will find all suppliers who can sell product and deliver to our company

from the internet and suppliers’ agent from Bangkok who is the license agent to buy

product for agricultural. Sometimes, our company no needs to find agencies of

suppliers because some of suppliers have sale man who comes to our company to be

an agency.

Our company collect the name of all suppliers, information of each product include

promotion and cost that the company can get from purchase order of each agents.



Our company compares each suppliers of each product to find the best one for

ordering.

Our company selects the best suppliers to ordering product to our shop depend on

each cultivate seasoning too.

After our company ordered, the company receive product at appointment date to keep

the product and key the number and information of product in the computer for easy

for check total of stock in the company’s warehouse. Our company will pay to the

suppliers when at sight the product.

Our company shows product or sample of product in front of our shop. The company

will make attractive for customers come to buy in our company.

The company will do the promotion of each cultivate seasoning by the marketing

department.

Our company will sell our product to the customer with promotion of each cultivate

seasoning both buy at front of our company and order by call.

If the customers buy more than 3,000 Baht, our company will free deliver in 10

kilometers. If it more than 10 kilometers, our company will charge fuel cost following

the distance.

Supplier details

Agricultural equipment and parts

SNP treading.Co.,Ltd.

99/3 Bangmuang-bangkulut Road, Bangmuang, Bangyai District, Nonthabree

11140, Thailand

Flying Star Co., Ltd.

402 Rama 3 Road, Bangklolaem, Bangkok 10120, Thailand

Bangkok Eak Siam

222-222/1 Taksin soi 1, Bangyeerear, Thonburi, Bangkok 10600, Thailand



Insecticide

Syngenta crop protection.Co.,Ltd

287 Libertysquare Building ground 18, Selom Road, Bangruk District, Bangkok

10500, Thailand

Gloden wait supply

65/41, Bangchun, Klongsarmwa, Bangkok 10140, Thailand

TJC chemical Co., Ltd.

518/5 Maneeya center Building, Plernjit Road, Lumpinee, Pathumwan, Bangkok

10700, Thailand

Fertilizer

Thai central chemical.Co.,Ltd

180-184, Krungsriwatthana building, Ratchawong Road, Jakawad,

Sumpunthawong District, Bangkok, 10100, Thailand

Chia Tai Co.,Ltd.

299-301, Songsawad Road, Sumphunthawong District, Bangkok 10100, Thailand

ICP fertilizer.Co., Ltd

Songsermprakunphai 42 Building, Suriwong Road, Sepraya, Bangruk, Bangkok

10500, Thailand



Seed

Chia Tai Co.,Ltd.

No. 299-301, Songsawad Road, Sumphunthawong District, Bangkok 10100,

Thailand

Pernkasetakorn Co.,Ltd.

200, Nongkway, Harngdong district, Chiang Mai 50230, Thailand

East West Seed International Ltd.

50/1 Moo 2, Sainoi-Bang Bua Thong Rd., Amphur Sainoi, Nonthaburi 11150

Thailand

4.1.3 Services Process

All of our service is doing with the good relationship, informally and good advices by

trained employees or expert person for get along well with our company conceptual that “We

are specialist that beside your farm”. Because our company base on good quality of service,

so our company has many service to serve our customer to be satisfaction while the customer

come to our company or when they need to get help. There are three kinds of service

processes: General Services, Call center services and after sale services.



Figure 16 : Example of expert service process

For general services processes, it is the process that the customers come to our

company for buy or get some help follow:

Figure 17: Service processing



1. The company will train all employees with training course by the expert person to

make our employee to be follow characteristics of employees: clean, reliable, friendly,

communication and politeness. In addition, our employees get more knowledge about

agriculture and information of product that could advice to the customer in order to

get highest customers satisfaction.

2. When there are customers come to our company, our employees will welcome the

customers with smile and good relationship and ask for get some help from the

customer. The customers who come to our company, they have many objects follow:

If the customers come to buy our product, The company will serve the customers

following:

Firstly, our employees will give some help for our customers by find the

products that they want, give the information of our product, and advice how to

use our product. After the customers finished ordering our product, the company

will check the order and products that customers want with our customers

together. Then, the company will make a payment immediately because our

company not have credit for the customer. If the customers buy our product more

than 3,000 Baht, the company will free deliver in 10 kilometers.

If the customers come to our company for taking some advice or they have some

trouble. The company will serve the customers follow:

The First, Our employees will ask the trouble from the customer. If our

employees can answers the customers’ trouble, they will answer clearly and

politeness. If it is not, this report will go to the next step. Finally, our company

will help the customers who has advance cultivate trouble by the expert person.

If the customers need to get full help from our company, the company will serve

the customers follow:

Firstly, the company will make an appointment with the customer to find

the suitable time to help our customers and make a contract with customers. Then,

the company will sent the trained employees to advice and beware the customers’

farm to increase their cultivate product. Next, the company will calculate the

customers’ area, advice that how much we use chemical fertilizer and agricultural



equipments, such as insecticide sprayer, lawn mower, feed pump, and so on. After

that, the company will order to the customers follow our advice that they need.

The last, the company will make the payment to the customer when the product

was delivered to the customers.

For Call center services processes, the company has call center service to serve the

customers who call to our company for check our product, order our product, and need some

help. This service process follows:

Figure 18: Call center service process

1. The company will establish the call center service and our company will use the

trained employees to be call center too. In addition, the company will make the

advertising to promote that our company has call center to serve and help the

customers.

2. When the company receives the call from the customer, our service process will

separate by the customers follow:



The customers who want to check the price, our employees will get update

information to our customers by the employees can check the price and stock from

the computer.

The customers who want to order the product, the process of this service is follow:

Firstly, our employees will receive the customers’ order and then, our

employees will check the price and stock from the computer and tell the

customers. If the customer need to order our product, our employees will repeat

the customers’ order and ask for give the customers’ address for deliver. The

company will sent the order’s products to the customers free in 10 kilometers if

the customers buy over 3,000 Baht. If there are more than 10 kilometers or the

customers buy less than 3,000 Baht, our company will charge fuel cost follow the

distance.

The customer who want to get some advice, the company process to serve the

customers follow:

Firstly, our employees will get the trouble from the customer. If our

employees can answers the customers’ trouble, they will answer clearly and

politeness. If it is not, our company will help the customers who has advance

cultivate trouble by the expert person.

The customers who want to get full help from our company, the company process

to serve the customers follow:

The First, the company will make an appointment with the customer to

find the suitable time to help our customers and make a contract with customers.

Next, the company will sent the trained employees to advice and beware the

customers’ farm to increase their cultivate product. The company will calculate

the customers’ area, advice that how much we use chemical fertilizer and

agricultural equipments, such as insecticide sprayer, lawn mower, feed pump, and

so on. Then, the company will order to the customers follow our advice that they

need and the company will make the payment to the customer when the product

was delivered to the customers.



For After sale services processes: there are three types of service process follow:

1. Deliver service is the after sale services that increase the convenient to attract the

customers to order our product by the company will buy cars for use to deliver our

product follow this process:

Figure 19: After sale service process

The customers buy our product in front of our company or ordered by call to our

company

The company asks the address of appointment place from our customers

The company delivered our products free in 10 kilometers for customers who buy

more than 3,000 Baht, if customer. If it more than 10 kilometers or buy less than

3,000 Baht, the company will charges follow the distance. For the customers who

order by call, the company will make the payment when the products arrive to the

customers.

2. Setting up of equipment service is the service that the company will go to set up

equipment at appointment place of customer. The process of this service is follow:

Figure 20: Setting up of equipment service process



The customers buy our product in front of our company or ordered by call to our

company

The company asks the address of appointment place from our customers

The company will send the trained employees to set up the equipment at

appointment place of the customers and take some advice that how to use some

the equipments.

3. Repair & Maintain service is the service that the company establishes for serve the

customers who have some problem about their equipment when it is damaged. The

process of repair & maintain service follow:

Figure 21: Repair&Maintain Service process

When there are customers who come to our company to get some help about their

equipment, our employees will check the damaged and estimate the price that the

customer will pay for repair or maintain.

If the customers satisfy in the price, our employees will repair or maintain the

customers’ equipment.

The company will make the appointment to get back customers’ product.

The customer can receive the product at the appointment date and make payment

at that time.



Figure 22 : Example of Delivery process

4.1.4 Location

Kaset Popeang Shop is located in the center of Mae Chan district, 150 meters

to the south of Mae Chan District Government Office and Government saving house.

The shop is located 500 meters west from Phaholyothin Road. See Figure 21 and

Figure 22 for site location.

Figure 23 : Shop Location



Figure 24: Example of location of our company

4.1.5 Store Layout

Figure 25: Example of store layout



According to figure 21, Keset popeang shop is divided into two parts that the first part

is store and the second part is Warehouse. We arrange a store that is located in front of the

area and the warehouse is located in the back of area. It is near together so it is easy to

manage agricultural products. We concern about the cleaning and light of store and

warehouse.

Store Area

Store Area is 40% of all area, customers can see store in two sides that agricultural product

also show to customer easily. This area is using for sell the agricultural products.

Warehouse area

This area is for stock the agricultural inventory. So it would be open area and easy for flow of

air. Warehouse is bigger than store area because some agricultural product need more space

to keep it for example fertilizer and sprayer parts of agricultural.

4.1.6 Machine, Tool and Equipments

Acer Aspire M5641-Q12G6419MG/C011 (SB10C011)

Intel Core 2 Quad Q6700 2.66 GHz

500 GB 7200 RPM SATA II B/F 32 MB. [Synnex/WPG]

NVIDIA GeForce 9500GS 512 MB

LCD Acer LCD 19 inch X193WAbd 5ms,10000:1,DVI

1x1 2048 MB DDR ll 800

DVD 16x SuperMulti

Warranty 3 years

http://rarkar.com/th/product/13000225-Acer-Aspire-M5641-Q12G6419MG-C011-SB10C011



Printer

Telephone handset plus. Use the built-in telephone handset for added convenience

plus the 10 one-touch and 100 automatic dial locations make it easy to place your fax

or phone calls.

Automatic document feeder. Unattended fax, copy or scan up to 20 pages at a time.

Fast color printing. Speeds up to 25ppm black and 20ppm color.‡

Print rich, vibrant borderless photos with resolutions up to 6000 x 1200 dpi and a

minimum droplet size of 1.5 picoliters shows the fine details of your photographs.

High speed fax modem. Send and receive faxes using the 33.6Kbps fax/modem.

4-cartridge ink system. Only replace the color that needs to be replaced.

Drill

Impact drill 72513A(Black&Decker KR-70)

Drill Capacity: 13mm

Rated Voltage: 220~240V/110V



Rated Frequency: 50Hz/60Hz

Rated Input Power: 650W

No Load Speed: 0-2800r/min

Case Qty.: 10 Pcs

G.W./N.W.: 17/16KG

Screwdriver Kit

Contents: 1pc RH2 Short Shaft Ratchet Screwdriver

50pcs 25mm Sand Blasted Bits

12pcs Sockets

1pc Bits Holder.

Glass cabinet

72"H x 25"W x 14"D.

Easy assembly.

aluminum, glass and MDF



Lamp

36 watt

Industrial Luminaires

Suitable for 19 mm conduit suspension

2nos. 6.5 mm dia.

holes for direct mounting.

36watts

Tree

Common Name: Areca Palm



Chair

Hanger Electrical fan Imarflex

Special Features:

Plastic: ABS

Motor: 66 x 14mm

Two round pin plug

Four switching and one lamp/or a timer for an hour

Shakes for 90°

Voltage 220V

Rated frequency: 50 to 60Hz



Water cooler

Height: 38.75"

Width: 13"

Depth: 13"

Weight: 33 lbs.

Electrical: 115 V/60 Hz

Elegant rounded design complements any style of home or office decor, softens

features and reduces damage.

All coolers are sealed and sanitized at the factory and arrive ready for installation.

Easy clean 1-piece, UV resistant HDPE cabinet

110 & 220 V models available to support global requirements.

2-year warranty standard. 5-years on selected refrigeration components.

Auto temp adjust on hot tank eliminates need to set the hot temperature in high

altitudes.

High-quality, high output Panasonic, Sanyo or Samsung compressors for reliable,

efficient performance



Wall clock

A long-running best seller

Large 18-inch diameter

Durable metal case with copper finish

Radio-controlled movement

Automatic Daylight Savings adjustment

Temperature display

Designed for indoor or outdoor use

Requires 1 AA battery (not included)

Refrigerator

W x D x H : 685 x 685 x 1818 mm

Weight : 99 KGS.

Include Step Down Tranformer

220 VAC to 100VAC

Install and Repair by Toshiba Thailand Service Center Only



Extinguisher

UL rated 4-A, 60-B:C

Wall mounting hardware included

Rechargeable

Flush toilet

27-5/8" L x 14-3/16" W x 31-1/2" H

Dual Flush flushing technology

0.8 or 1.6 gallon water consumption options

Compact elongated bowl

Includes a two-button actuator that provides easy-to-use flushing options

WaterSense labeled toilets use at least 20% less water than standard 1.6-gallon toilets

Strict 12" rough-in (1/8" wall gap)



Faucet

Material: Brass body, zinc-alloy handle

Faucet Total Height: 24 cm Spout Height 22 cm Spout Length 17 cm

Package Dimension: 40*20*7cm

Shipping Weight: 1 kg

Washbasin

Colour: Ivory & White

Water Absorption<0.5

High Temperature 1260 Degree Centigrade

Water-Saving

Excellent Flushing Function & High Quality

Dimension: 470X380X200mm

Volume: 0.047CBM

Gross Weight: 6KG



Micro Rack

Size 50 X 100 X 250 cm.

Shelf Micro Rack

Size 1x2.90x6m

4.1.7 Retail Management and Inventory

Our store have to design of an environment through visual communication, lighting,

colors, music, and scent that stimulate customers’ perceptual and emotion response and

ultimately affect their purchase behavior.



- Color of store: we using cool color that makes customers to be calm, we would like

to design color in which is suitable for products and the hot weather. We will use a

color like’s cream.

- Lighting: in the store have light from sunlight in morning and afternoon because we

designed our store is open air that sunlight can through in the store and sometime the

sunlight that not enough we will turn on light bulb, in the evening we using the light

from light bulb.

- Convenience: this factor is most important to customers then we have concern about

parking for customers and arrangement the product in the store that have to easy to

find and nice and tidy. In other hand, we have transport service to customers that

service is free for created convenience to customers.

- Cleanness: we have housekeeper who always clean our store and we arrange the store

the easy to clean that for customers will impress with our store.

- Decoration: In the decoration, we will emphasize suitable of place and nice and tidy

for attractive to customers. In the front and around store and is decorated by

flowerpots.

4.1.8 Logistics Management

Our products are wide range and we cannot produce all of it, so there are agencies to

be our supply. The first period that we established our shop, we receive all products

information, cost, and credit from agency of suppler. After that, we will compare product

information, suitable cost, and long time credit, and then we choose the best suppliers of each

product to order. The first period of ordering, we order in the suitable number of demand of

our shop, and then they will send their product at our warehouse follow appointment date.

When we can calculate length of demand time, we will buy with future contract to reduce

risk, cost, and we can stock our product at the suitable number of each period too.

Our stock prepare for sale all time that the customers want. More of customers come

to buy our product with unsteady number of products, so we should to stock and maintain

some product to serve our customers.

Our customers divide into 2 groups: the customers who buying under 3,000 Baht and

the customers who buying over 3,000 Baht. Almost the customers who buying under 3,000

Baht, they come to buy our product and take it back by themselves. So, our role is only

http://dict.longdo.com/search/cleanness



selling our product. The customers who buying over 3,000 Baht, we have special option to

send our product at appointment place free in 10 kilometers area. If it more than 10

kilometers, our company will charge fuel cost following the distance.

4.1.9 Organization Management

Logo

Figure 26: Logo of Kaset Popeang Company

This advertisement is wide 6 Meters and height 1 Meters. It is set up under the roof in

front of our company. There are name of our company, telephone contract, and logo of our

company. Our logo composes of our company’s abbreviation (PP) with young plant that

shows the strength base to successful and grows sustainable. For background, our company

chooses red color and white front because it is easy to memorable and clearly.

Employee

Employee is important part of company, they are main point to force our company in

order to achieve a goal.

Transportation manager

Male

Age between 20 – 40 years

Secondary school degree

Having a driver license



Healthy and strong personality

Experienced in transport products

Know very well in Chiang Rai map

High Responsibility

Customer assistant

Male or female

Age more than 20 years


Well experienced in sale

Good communication in Thai and English

Good personality and talkative

Accountant

Male or female


Bachelor’s degree in accounting

Experienced in accounting 3 – 5 years before

Know very well in law that related with tax

Good coordinator with other department

Good computer skills such as Microsoft word, excel and so on



Housekeeper

Female



Having an industrious and a discipline

Top manager

Male or female


Bachelor’s Degree in business administration or related fields

Experienced in management before

High Creativity and Responsibility

Good personality and Good communication in Thai and English

Well command

Repairer

Male

Age between 20 – 40 years


Healthy and strong personality

Experienced in Repairing

High Responsibility

http://dict.longdo.com/search/industrious



Agriculture expert

Male or female


Bachelor’s Degree in related fields

Experienced in consulting about agricultural before

High Responsibility

Good personality and Good communication in Thai and English

Figure 27: Organization Chart

Organization management

Our company needs to have a good organization management for response customer

want and take care customer to get higher satisfaction. Our company starts to improve from

the operation level in which is closely the customer and attract customer satisfaction. For the

next step is divisional level and corporate level will be improve by use feedback from

customer?

Top manager

Accountant


Customer assistant

HousekeeperAgriculture

expertRepairer



Customer assistant

This position is important for our company and influences to customer

because this position is the first one who meet customer and they try to concern

about customer want, good service and good information for customer decision.

Then, they will receive feedback from customer and report that feedback to our

company for improves our performance. Our company will train this position

before they do the real work for higher performance of service.

Housekeeper

Housekeeper need to take our shop to be clean. Clean is important thing

that customer will trust in our company so housekeeper has to take care about

clean of our shop for example; front shop, in the shop, shelf, rest room, product

and etc. Housekeeper need to do these for good atmosphere of shop. Sometimes,

housekeeper has some service to customer and friendly with customer for increase

satisfaction of customer.

Agriculture expert

The person who have more experience about how to solve the cultivate

problem. Therefore, this position will be a consultant of customers who have

problem about cultivate or increase outcome to increase the customers’

satisfaction. The Agriculture expert wills advice how to solve cultivate problem or

increase outcome by start from analysis the cultivate problem, advice products

that customers need, and the agriculture expert will following the result of each

problem solving. This position will get the feedback from customer to improve the

performance of our company.


This position has a duty about delivering product to customer by contact

with sell department because transportation manager need to know the product

that had delivered, place of customer and manage time for delivering. Although,

this position will be take care the product and friendly service for every customer.

The transportation manager will recruit from people around Mae Chan Area

except illegal immigrant. About transportation of supply, our company uses



outsource company (Nim Se Seng) to send the product from suppliers to our

company.

Repairer

Repairer has a duty about repair the machine that broken and check

performance of machine to be completely for support customers with the best

service. Repairer is concern the service that fast and good quality and friendly.

Accountant

Accountant will concern the quantitative data such as total sales and total

costs from every department to analyze and record data for evaluate the situation

of company. Then, the accountant will report this information to top manager for

develop the strategy of our company and apply it with real situation.

Top Manager

Top manager is the most important person in our company because top

manager concern about strategy and management overall company. Information of

every department will send to top manager for analyze and decision to develop the

strategy into the real situation to make maximize profit in our company. Top

manager will manage every department for drive in same company’s vision.

4.2 Cost of Investment

Pre-operation cost Amount

Land 12,000,000

Building (650 square metre) 2,925,000

Inventory (835.8 square metre) 2,089,500

Office Equipment 1,805,401

Total 18,819,901



4.3 Investment Cost

Office Equipment Quatity

Price Amount Depreciation

Annual Dep.

Monthly Dep.

Computer 1 43,900 43,900 3 14,633 1,219

Drill 1 4,500 4,500 3 1,500 125

Ventilator 1 3,100 3,100 3 1,033 86

Screwdriver Kit 1 2,200 2,200 3 733 61

miscellaneous ( Pen,

Note bill, Folder, liquid

paper, robber, calculators, rubber stamp

and so on)

1 2,500 2,500 3 833 69

Glass cabinet

153*40*132 CM

10 4,900 49,000 5 9,800 817

Light dual Commet 36W 32 350 11,200 5 2,240 187

Industrial Luminaires 14 300 4,200 5 840 70

Tree 8 200 1,600 5 320 27

1 Counter 80*60 1 700 700 5 140 12

2 Counter 100*80 1 1,200 1,200 5 240 20

3 Counter 90 60*60 1 800 800 5 160 13

Chair BSI-2 1 2,480 2,480 5 496 41

Hanger Electrical fan

Imarflex

3 750 2,250 5 450 38

Water cooler Sanyo

SWC-591N

1 4,900 4,900 5 980 82

Brother Printer All in one and Telephone- MFC-

3360C

1 3,900 3,900 5 780 65

Wall Clock 1 450 450 5 90 8

Refrigerator Toshiba GR-

B151Z

1 5,890 5,890 5 1,178 98

Broom 4 20 80 5 16 1

Swab 2 79 158 5 32 3

Litter bin 3 59 177 5 35 3

Medicine cupboard 1 450 450 5 90 8

Car pick up 2 467,000 934,000 5 186,800 15,567

Extinguisher 2 690 1,380 5 276 23

Micro Rack & Shelf 139 8,500 1,181,50

0

5 236,300 19,692

Rest room Quatity Price Amount Depreciation Annual

Dep.

Monthly

Dep.

flush toilet 2 1,690 3,380 5 676 56

Faucet 2 200 400 5 80 7

Mirror 1 399 399 5 80 7

Washbasin 1 900 900 5 180 15

Tile 60*60 CM. 11 419 4,609 5 922 77

Rinse Spray Hose 2 99 198 5 40 3



Employee Person Salary Total Salary

Transportation 1 5,500 5,500

customer assistant 2 6,500 13,000

accountant 1 8,000 8,000

housekeeper 1 5,500 5,500

Expert 1 8,000 8,000

Manager 1 10,000 10,000

Repairer 1 6,500 6,500

Total 8 50,000 56,500



Figure 28: Five year – Depreciation

First Year

Second Year

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

Building 2,925,000 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 146,250

Inventory 2,089,500 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 104,475

Pickup car 467,000 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 93,400

Computer 43,900 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 14,633

Office equipment 1,294,501 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 260,540

Total 6,819,901 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 619,299


Building 2,778,750 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 146,250

Inventory 1,985,025 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 104,475

Pickup car 373,600 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 93,400

Computer 29,267 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 14,633

Office equipment 1,033,961 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 260,540

Total 6,200,602 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 619,299



Third Year

Fourth Year


Building 2,632,500 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 146,250

Inventory 1,880,550 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 104,475

Pickup car 280,200 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 93,400

Computer 14,633 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 1,219 14,633

Office equipment 773,421 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 21,712 260,540

Total 5,581,304 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 619,299


Building 2,486,250 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 146,250

Inventory 1,776,075 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 104,475

Pickup car 186,800 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 93,400


Total 4,962,005 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 600,565



Fifth Year


Building 2,340,000 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 12,188 146,250

Inventory 1,671,600 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 8,706 104,475

Pickup car 93,400 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 7,783 93,400


Total 4,361,440 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 600,565



4.4 Management Analysis

4.4.1 Electricity

The shop calculates the electricity on the rate of The Provincial Electricity Authority,

base on real situation, calculating from the number of equipments, electrical appliances,

lights in every room and the front area, and in inventory room, for safety and convenience for

the staffs and customers. The expense for installing electric lines is included in the building

contract, so the shop will not include the expense in this part. The shop takes electric power

as necessary resource for every part of the business process.

Small General Service

Applicability

This schedule of tariff is applicable to a business enterprise, business enterprise cum

residence, industrial and state enterprise or the alike, including its compound, with a

maximum 15-minute integrated demand of less than 30 kilowatt through a single Watt-hour

meter.

Monthly Tariff

Normal tariff

Energy Charge:

12 - 24 kV. Baht 2.4649 per kWh

Service charge: Baht 228.17 per month

Below 12 kV.

First 150 kWh (1st – 150

th) Baht 1.8047 per kWh

Next 250 kWh (151st

– 400th

) Baht 2.7781 per kWh

Over 400 kWh (up from 401st) Baht 2.9780 per kWh

Service charge: Baht 40.90 per month



Time of use tariff (TOU tariff)

Energy Charge

(Baht/kWh)

Service Charge

(Baht/Month)

1* 2*

2.2.1 12 - 24 kV. 3.6246 1.1914 228.17

2.2.2 Below 12 kV. 4.3093 1.2246 57.95

1. On Peak : Monday – Friday from 09.00 AM to 10.00 PM.

2. Off Peak : Monday – Friday from 10.00 PM to 09.00 AM.

: Saturday – Sunday and normal public holiday (excluding substitution holiday)

from 00.00 AM to 12.00 PM.

Notes:

1. In any monthly billing period of the customer under this Schedule, the customer with

a maximum 15-minute integrated demand up from 30 kW will be classified under

Schedule 3, 4 or 5, as the case may be. He will be reclassified under Schedule 2

whenever the said demand is lower than 30 kW for twelve (12) consecutive months.

2. The customer under No. 2.1 may choose to be under tariff No. 2.2 and must pay for a

TOU meter or service charges for a TOU meter in addition to the normal service

charge. He may also switch to tariff No. 2.1 following a minimum use of twelve (12)

months.

3. The customer who intends to apply for tariff No. 2.2 shall notify the Metropolitan

Electricity Authority (MEA) in advance, then MEA will arrange installation of a TOU

meter as from January 2002 onwards.

4. Customers shall pay a monthly service charge although there is no electricity

consumption during that month.



Conditions Relating to Electricity Tariffs

1. The electricity tariffs herein do not include Value Added Tax (VAT).

2. Electricity charges billed for each month comprising the electricity base charge

according to the tariffs herein; and an energy adjustment charge (Ft), which is the

uncontrollable cost of the Power Sector. Such as the cost of fuels used in electricity

generation that differ from the planned value, impact from rate of exchange and

inflation rate. The energy adjustment charge will also be shown in the electricity bill.

The electricity expense for the first month is approximately 2,500 Baht. Our company

forecast that the Electricity expense is increasing every middle of year.

Table 14: Electricity Expense

4.4.2 Water Supply

Water supply is mostly used for washing equipments. The shop choose to use the city

hydrant water, because it is qualified to use for washing the equipments and machines, and it

is safe to use for washing body. The calculated amount for water supply used in the business

is approximately 0.5 units per day, 15 units per month, for 14.20 Baht per unit, which is 213

baht per month for water supply.

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

0% 0% 0% 2% 3% 5% 5% 2% 0% 0% 4%

Eletricity bill 2,500฿ 2,500฿ 2,500฿ 2,500฿ 2,550฿ 2,575฿ 2,625฿ 2,625฿ 2,550฿ 2,500฿ 2,500฿ 2,600฿

Expense per month 2,500฿ 2,500฿ 2,500฿ 2,500฿ 2,550฿ 2,575฿ 2,625฿ 2,625฿ 2,550฿ 2,500฿ 2,500฿ 2,600฿ 30,525฿


4% 0% 3% 3% 4% 6% 6% 6% 2% 0% 1% 5%

Eletricity bill 2,600฿ 2,510฿ 2,575฿ 2,575฿ 2,600฿ 2,650฿ 2,650฿ 2,650฿ 2,550฿ 2,500฿ 2,525฿ 2,625฿



5% 2% 3% 3% 4% 6% 7% 7% 4% 2% 2% 5%

Eletricity bill 2,625฿ 2,550฿ 2,575฿ 2,575฿ 2,650฿ 2,725฿ 2,800฿ 2,800฿ 2,650฿ 2,550฿ 2,550฿ 2,725฿



4% 1% 4% 4% 5% 6% 7% 7% 5% 2% 2% 6%

Eletricity bill 2,600฿ 2,525฿ 2,600฿ 2,600฿ 2,625฿ 2,650฿ 2,675฿ 2,675฿ 2,625฿ 2,550฿ 2,550฿ 2,650฿



3% 1% 5% 5% 5% 7% 6% 6% 3% 1% 1% 5%

Eletricity bill 2,575฿ 2,525฿ 2,625฿ 2,625฿ 2,625฿ 2,675฿ 2,650฿ 2,650฿ 2,575฿ 2,525฿ 2,525฿ 2,625฿




Water rates by user types

Regulation (14th issue) B.E. 2551

Water rates by user No. 1

Lavel of water used

Cum./month

User Types

Official and Small Business

Baht/Cum. Satang/litre

Low Level Rate 100 Baht

0 – 10 11.45 1.145

11 – 20 14.20 1.420

21 – 30 15.45 1.545

31 – 50 16.45 1.645

51 – 80 16.85 1.685

81 - 100 16.95 1.695

101 - 300 17.05 1.705

301 - 1,000 17.15 1.715

1,001 - 2,000 17.25 1.725

2001 - 3,000 17.35 1.735

>3,000 17.45 1.745

Notes:

1. Rising in water supply fee per unit begins from February B.E.2551.

2. The users of type 1 water, if exceed usage of 100 m3 per month, the water fee will be

calculated as the type 2 water fee.



Calculating water supply expense

Water supply 15 x 14.20 = 213 Baht / per month

= 2,556 Baht / per year

Table 15: Water Expense

4.4.3 Drinking Water

The shop chooses to order drinking water from the nearest supplier from the shop,

which the production must be qualified with GMP standard, to ensure the cleanness of the

water the shop will provide to customers and employees. The consumption of water is

calculated to 400 liters per month, a 20 liter bottle is 15 Baht per bottle, which will be 20

bottles per month, according to the number of employees and the forecasting number of

customers.

Calculating drinking water expense

Drinking water 20 X 15 = 300 Baht/per month

= 3,600 Baht/per year


0% 0% 0% 2% 3% 5% 5% 2% 0% 0% 4%

Water bill 213฿ 213฿ 213฿ 213฿ 217฿ 219฿ 224฿ 224฿ 217฿ 213฿ 213฿ 222฿

Expense per month 213฿ 213฿ 213฿ 213฿ 217฿ 219฿ 224฿ 224฿ 217฿ 213฿ 213฿ 222฿ 2,601฿


4% 0% 3% 3% 4% 6% 6% 6% 2% 0% 1% 5%

Water bill 222฿ 214฿ 219฿ 219฿ 222฿ 226฿ 226฿ 226฿ 217฿ 213฿ 215฿ 224฿



5% 2% 3% 3% 4% 6% 7% 7% 4% 2% 2% 5%

Water bill 224฿ 217฿ 219฿ 219฿ 226฿ 232฿ 239฿ 239฿ 226฿ 217฿ 217฿ 232฿



4% 1% 4% 4% 5% 6% 7% 7% 5% 2% 2% 6%

Water bill 222฿ 215฿ 222฿ 222฿ 224฿ 226฿ 228฿ 228฿ 224฿ 217฿ 217฿ 226฿



3% 1% 5% 5% 5% 7% 6% 6% 3% 1% 1% 5%

Water bill 219฿ 215฿ 224฿ 224฿ 224฿ 228฿ 226฿ 226฿ 219฿ 215฿ 215฿ 224฿




4.4.4 Telephone

The company has installed one telephone in the shop to use for the business, such as

ordering products and contacting customers. The amount of telephone usage is estimated to

be 200 times per month, with telephone fee for 3 Baht per one call.

Calculating telephone expense

Telephone usage 200 x 3 = 600 Baht/per month

= 7,200 Baht/per year

4.4.5 Insurance

Unexpected incident such as fire, car accident, burglary, or other disasters can happen

to the shop. In order to prevent the loss from those incidents, the company buys an insurance

to cover everything that might damage the shop or the people, includes the followings;

- Fire and other natural disasters

- Damage on electrical appliances

- Damage on trees

- Expenses on moving property from disaster

- Expenses on engineering from damage

- Expenses on fire extinguish

- Damage and loss from burglary

- Damage on outsiders

- Damage on glass

- Damage or loss on cash

- Damage on insiders

- Damage on advertising signs

- Damage on vehicle

- Hospital expenses

- Damaged on crashed property

Insurance expense of the shop, including the shop and a company car, is 7,865 Baht per

year. (The Southeast Life Insurance Co., Ltd. 2010)



4.5 Conclusion

The products of the company are fertilizer, insecticide, seed, equipments and parts.

Fertilizer can be classified by the formula of the nutrient; each formula is used for different

purposes in agriculture. Insecticide is classified by type of insect it is used for, weed killer is

classified by the way it destroys weed. Seeds are sold in can; there are many kinds of seed.

Equipments in the shop consist of brush cutter, gasoline engine, sprayer, and water pump.

The shop also sells parts used for fixing machines.

The agriculture equipments, fertilizers, seed, and insecticides in Chiang Rai have

many brands and the company cannot produce by our selves, so our products come from

suppliers. About services, There are three kinds of service processes: General Services, Call

center services and after sale services. Our company give information to our customer about

their problem and the company will advice how to solve it or how to use equipment by advice

all of our customers with good condition to keep relationship.

Keset popeang shop is divided into two parts that the first part is store and the second

part is Warehouse. We arrange a store that is located in front of the area and the warehouse is

located in the back of area. It is near together so it is easy to manage agricultural products.

Our store have to design of an environment through visual communication, lighting, colors,

music, and scent that stimulate customers’ perceptual and emotion response and ultimately

affect their purchase behavior.

Our products are wide range and we cannot produce all of it, so there are agencies to

be our supply. When we can calculate length of demand time, we will buy with future

contract to reduce risk, cost, and we can stock our product at the suitable number of each

period too. Our stock prepare for sale all time that the customers want, so we should to stock

and maintain some product to serve our customers.

Employee is important part of company; they are main point to force our company in

order to achieve a goal. The positions for employees consist of top managers, customer

assistants, housekeepers, agriculture experts, transportation manager, repairers and

accountant. The company sets standard and select people with sufficient skills and quality to

become employees, to execute the expected performance for the company.

Chapter 5: Financial Analysis 108


Chapter 5: Financial Analysis

Chapter 5:

Financial Analysis



FOLLOWING POINTS:

1. Income Statement

2. Cash Flow

3. Balance Sheet

4. Project Analysis



Chapter 5: Financial Analysis

This chapter is going to detail about financial analysis, we analyze three statements

that are very important for make decision. In each statement, it uses monthly based in five

years.

5.1 Income Statement

Profit/Loss Statement or Income Statement show revenue that company will gain

from sale forecast, this statement also have cost and expense in which company pays in each

year. The first year, net profits of company gain from sale the products about 4,324,845 baht.

The second year, net profits of company gain from sale the products about 6,732,466 baht

this year the profits increase about 20 % because the customers know the company from

promote in the first year. The third year, net profits of company gain from sale the products

about 7,354,810 baht because the customers impress the company in service. The fourth year,

net profits of company gain from sale the products about 8,488,598 baht, the fifth year, the

company still have profits stable from the last year because the company enter the market

completely.

5.2 Cash Flow

Cash flow statement shows that company will have how many cash in hand in which

use for operate our company. In the first year, the profits of the shop is increasing from May,

due to the increase in sales, as the result, the company begins to gain more cash in hand to

circulate for the shop’s activities. In January, the company has 732,687 Baht cash in hand. At

the end of the year, cash in hand of the company increases to 5,432,714 Baht. However, the

first month of the year, our company has to pay for fixed assets and company needs to

repayment to debt principle.

5.3 Balance Sheet

Balance Sheet shows the total assets, liability, and equity that company have, it is

important for manager and investor. In the first year, proportion of asset and liability&equity,

most of liability is from long-term debt. Our company does not have much on equity. In

contrast, the ending of fifth year, our company gets higher proportion on equity and also

current asset that increase together.



Kaset Popeang Company

Income Statement

First year (Monthly based)

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

Revenue

Gross sales 1,287,398 2,120,950 3,205,920 3,912,891 4,500,885 4,759,870 3,604,914 4,689,885 7,307,811 9,218,767 9,785,767 9,526,782

Net sales 1,287,398 2,120,950 3,205,920 3,912,891 4,500,885 4,759,870 3,604,914 4,689,885 7,307,811 9,218,767 9,785,767 9,526,782

Cost of Goods Sold

Beginning inventory 123,250 177,342 272,138 340,159 382,001 409,318 300,593 395,389 625,685 787,960 828,122

Goods purchased 1,355,755 1,827,514 2,816,177 3,469,612 3,861,853 4,120,495 2,897,201 4,048,682 6,487,143 8,041,874 8,321,387 7,980,740

Total Goods Available For Sale 1,355,755 1,950,764 2,993,520 3,741,750 4,202,012 4,502,496 3,306,519 4,349,275 6,882,532 8,667,559 9,109,346 8,808,862

Ending inventory 123,250 177,342 272,138 340,159 382,001 409,318 300,593 395,389 625,685 787,960 828,122 800,806

Cost of Goods Sold 1,232,505 1,773,422 2,721,381 3,401,591 3,820,011 4,093,178 3,005,927 3,953,886 6,256,847 7,879,599 8,281,224 8,008,057

Gross Profit (Loss) 54,894 347,528 484,539 511,300 680,874 666,692 598,988 735,999 1,050,964 1,339,168 1,504,543 1,518,725

Expenses

Selling Expense 65,300 60,300 53,300 58,300 53,300 56,300 49,800 49,800 49,800 49,800 49,800 64,800

Depreciation 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608

Administration Expense 26,813 26,813 26,813 26,813 26,867 26,894 26,949 26,949 26,867 26,813 26,813 34,787

Other Expense 0 0 2,400 0 0 1,800 0 0 1,200 0 0 1,300

Total Operating Expenses 143,721 138,721 134,121 136,721 131,775 136,603 128,357 128,357 129,475 128,221 128,221 152,495

Operating Income (Loss) (88,827) 208,807 350,418 374,579 549,098 530,089 470,631 607,642 921,489 1,210,947 1,376,322 1,366,230

(Less interest expense) (200,000) (199,131) (198,252) (197,366) (196,470) (195,565) (194,651) (193,728) (192,796) (191,855) (190,904) (189,944)

Income Before Taxes (288,827) 9,676 152,165 177,213 352,629 334,524 275,980 413,914 728,692 1,019,092 1,185,418 1,176,287

(Less income tax expense) 0 1,451 22,825 26,582 52,894 50,179 41,397 62,087 109,304 254,773 296,355 294,072

Net Income (288,827) 8,225 129,341 150,631 299,734 284,346 234,583 351,827 619,388 764,319 889,064 882,215

Beginning of Retain Earning (288,827) (280,603) (151,262) (631) 299,103 583,449 818,032 1,169,858 1,789,247 2,553,566 3,442,629




Income Statement

Second year (Monthly based)


Revenue

Gross sales 5,599,911 3,622,430 6,273,569 7,157,283 7,691,022 6,571,059 4,567,382 4,479,901 7,778,551 9,371,014 10,079,764 6,956,125

Net sales 5,599,911 3,622,430 6,273,569 7,157,283 7,691,022 6,571,059 4,567,382 4,479,901 7,778,551 9,371,014 10,079,764 6,956,125

Cost of Goods Sold

Beginning inventory 800,806 442,001 290,715 545,793 630,819 679,600 577,840 391,053 373,641 663,611 798,840 849,043

Goods purchased 4,061,207 2,755,860 5,713,011 6,393,220 6,844,783 5,676,636 3,723,743 3,719,003 6,926,079 8,123,632 8,540,637 5,316,414




Gross Profit (Loss) 1,179,900 715,283 815,637 849,089 895,019 792,662 656,853 743,486 1,142,441 1,382,611 1,589,330 1,351,164

Expenses

Selling Expense 61,800 56,800 49,800 54,800 49,800 52,800 49,800 49,800 49,800 49,800 49,800 64,800

Depreciation 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608


Other Expense 0 0 0 0 0 0 0 0 0 0 0 5,590


Operating Income (Loss) 1,039,570 580,051 687,335 715,786 766,689 661,278 528,469 615,102 1,014,166 1,254,390 1,461,082 1,194,352


Income Before Taxes 850,596 392,057 500,330 529,781 581,694 477,301 345,522 433,196 833,310 1,074,595 1,282,358 1,016,710

(Less income tax expense) 127,589 58,809 75,050 79,467 87,254 71,595 51,828 64,979 124,996 268,649 320,589 254,177

Net Income 723,007 333,249 425,281 450,314 494,440 405,706 293,694 368,216 708,313 805,946 961,768 762,532

Beginning of Retain Earning 4,324,845 5,047,851 5,381,100 5,806,381 6,256,695 6,751,135 7,156,841 7,450,535 7,818,751 8,527,064 9,333,010 10,294,778




Income Statement

Third year (Monthly based)


Revenue

Gross sales 5,879,907 3,803,551 6,587,248 7,515,147 8,075,573 6,899,611 4,795,751 4,703,896 8,167,479 9,839,565 10,583,752 7,303,931

Net sales 5,879,907 3,803,551 6,587,248 7,515,147 8,075,573 6,899,611 4,795,751 4,703,896 8,167,479 9,839,565 10,583,752 7,303,931

Cost of Goods Sold


Goods purchased 4,544,617 2,893,653 5,998,661 6,712,881 7,187,023 5,960,468 3,909,930 3,904,953 7,272,383 8,529,814 8,967,669 5,582,234





Expenses

Selling Expense 61,800 56,800 49,800 54,800 49,800 52,800 49,800 49,800 49,800 49,800 49,800 64,800

Depreciation 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608


Other Expense 0 0 0 0 0 0 0 0 0 0 0 5,590




Income Before Taxes 921,989 440,327 553,787 585,037 639,320 529,912 391,391 483,528 903,777 1,157,260 1,375,522 1,098,022


Net Income 783,691 374,278 470,719 497,281 543,422 450,425 332,682 410,999 768,211 867,945 1,031,641 823,516





Income Statement

Fourth year (Monthly based)


Revenue

Gross sales 6,103,903 3,948,448 6,838,191 7,801,438 8,383,214 7,419,966 5,493,471 5,398,117 8,993,646 10,986,943 11,244,455 7,582,176

Net sales 6,103,903 3,948,448 6,838,191 7,801,438 8,383,214 7,419,966 5,493,471 5,398,117 8,993,646 10,986,943 11,244,455 7,582,176

Cost of Goods Sold


Goods purchased 4,711,073 3,003,887 6,227,181 6,968,610 7,460,814 6,388,179 4,441,930 4,418,522 7,914,236 9,420,214 9,455,218 5,776,651





Expenses

Selling Expense 51,800 51,800 49,800 54,800 49,800 52,800 49,800 49,800 49,800 49,800 49,800 59,800

Depreciation 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047


Other Expense 0 0 0 0 0 0 0 0 0 0 0 5,590




Income Before Taxes 994,774 489,667 602,228 634,959 691,278 653,083 584,439 680,191 1,116,440 1,454,761 1,531,229 1,174,331


Net Income 845,558 416,217 511,894 539,715 587,586 555,121 496,774 578,162 837,330 1,091,071 1,148,422 880,748





Income Statement

Fifth year (Monthly based)


Revenue

Gross sales 6,383,899 4,129,570 7,151,869 8,159,302 8,767,765 7,491,007 5,206,816 5,107,087 8,867,548 10,682,956 11,490,931 7,929,982

Net sales 6,383,899 4,129,570 7,151,869 8,159,302 8,767,765 7,491,007 5,206,816 5,107,087 8,867,548 10,682,956 11,490,931 7,929,982

Cost of Goods Sold


Goods purchased 4,931,754 3,141,680 6,512,832 7,288,271 7,803,053 6,471,366 4,245,067 4,239,663 7,895,730 9,260,941 9,736,326 6,060,712




Gross Profit (Loss) 1,345,086 815,423 929,827 967,961 1,020,322 903,634 748,812 847,574 1,302,383 1,576,177 1,811,836 1,540,326

Expenses

Selling Expense 51,800 51,800 49,800 54,800 49,800 52,800 49,800 49,800 49,800 49,800 49,800 59,800

Depreciation 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047 50,047


Other Expense 0 0 0 0 0 0 0 0 0 0 0 5,590




Income Before Taxes 1,069,572 541,366 659,076 693,641 752,446 634,162 483,840 584,091 1,040,484 1,315,850 1,553,042 1,259,517


Net Income 802,179 460,161 560,215 589,595 639,579 539,038 411,264 496,477 780,363 986,887 1,164,782 944,638





Cash Flow



Operating Cash Flow

Net Income After Tax (288,827) 8,225 129,341 150,631 299,734 284,346 234,583 351,827 619,388 764,319 889,064 882,215

Depreciation and amortization expense 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608 51,608

Change in Inventory (123,250) (54,092) (94,796) (68,021) (41,842) (27,317) 108,725 (94,796) (230,296) (162,275) (40,163) 27,317

Change in Accrued Tax Expenses 0 1,451 22,825 26,582 52,894 50,179 41,397 62,087 109,304 254,773 296,355 294,072

Total Operating Cash Flow (360,470) 7,193 108,978 160,801 362,395 358,816 436,313 370,726 550,004 908,425 1,196,864 1,255,212

Investing Cash Flow

Purchase in Fixed Assets (18,819,901) 0 0 0 0 0 0 0 0 0 0 0

Total Investing Cash Flow (18,819,901) 0 0 0 0 0 0 0 0 0 0 0

Financing Cash Flow

Proceed from Long-Term Borrowings 20,000,000

Repayment of debt principle (86,942) (87,811) (88,689) (89,576) (90,472) (91,377) (92,291) (93,213) (94,146) (95,087) (96,038) (96,998)

Total Financing Cash Flow 19,913,058 (87,811) (88,689) (89,576) (90,472) (91,377) (92,291) (93,213) (94,146) (95,087) (96,038) (96,998)

Net Increase (Decrease) in Cash 732,687 (80,619) 20,288 71,224 271,923 267,439 344,022 277,512 455,859 813,338 1,100,826 1,158,213

Cash at beginning of period 732,687 652,069 672,357 743,581 1,015,504 1,282,943 1,626,965 1,904,478 2,360,336 3,173,674 4,274,500

Cash at end of period 732,687 652,069 672,357 743,581 1,015,504 1,282,943 1,626,965 1,904,478 2,360,336 3,173,674 4,274,500 5,432,714




Cash Flow



Operating Cash Flow

Net Income After Tax 723,007 333,249 425,281 450,314 494,440 405,706 293,694 368,216 708,313 805,946 961,768 762,532


Change in Inventory 358,805 151,287 (255,079) (85,026) (48,781) 101,761 186,787 17,412 (289,970) (135,229) (50,203) 288,547

Change in Accrued Tax Expenses 127,589 58,809 (1,136,869) 79,467 87,254 71,595 51,828 64,979 124,996 268,649 320,589 254,177

Total Operating Cash Flow 1,261,009 594,952 (915,058) 496,363 584,521 630,670 583,917 502,215 594,948 990,974 1,283,763 1,356,865

Investing Cash Flow

Purchase in Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0

Total Investing Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0

Financing Cash Flow

Proceed from Long-Term Borrowings 0 0 0 0 0 0 0 0 0 0 0 0


Total Financing Cash Flow (97,968) (98,948) (99,937) (100,937) (101,946) (102,966) (103,995) (105,035) (106,086) (107,146) (108,218) (109,300)

Net Increase (Decrease) in Cash 1,163,041 496,004 (1,014,996) 395,426 482,575 527,704 479,922 397,180 488,863 883,827 1,175,545 1,247,565

Cash at beginning of period 5,432,714 6,595,755 7,091,759 6,076,763 6,472,189 6,954,764 7,482,469 7,962,390 8,359,570 8,848,433 9,732,260 10,907,805

Cash at end of period 6,595,755 7,091,759 6,076,763 6,472,189 6,954,764 7,482,469 7,962,390 8,359,570 8,848,433 9,732,260 10,907,805 12,155,370




Cash Flow



Operating Cash Flow

Net Income After Tax 783,691 374,278 470,719 497,281 543,422 450,425 332,682 410,999 768,211 867,945 1,031,641 823,516




Total Operating Cash Flow 1,069,992 650,786 (1,247,421) 547,368 639,708 688,368 639,125 553,419 650,918 1,066,877 1,374,417 1,452,604

Investing Cash Flow



Financing Cash Flow




Net Increase (Decrease) in Cash 959,599 539,289 (1,360,033) 433,629 524,832 572,344 521,941 435,062 531,378 946,142 1,252,474 1,329,442






Cash Flow



Operating Cash Flow

Net Income After Tax 845,558 416,217 511,894 539,715 587,586 555,121 496,774 578,162 837,330 1,091,071 1,148,422 880,748





Investing Cash Flow



Financing Cash Flow




Net Increase (Decrease) in Cash 1,027,167 578,979 (1,477,715) 464,165 558,709 665,070 687,797 615,849 715,719 1,203,120 1,425,628 1,418,353






Cash Flow



Operating Cash Flow

Net Income After Tax 802,179 460,161 560,215 589,595 639,579 539,038 411,264 496,477 780,363 986,887 1,164,782 944,638





Investing Cash Flow



Financing Cash Flow




Net Increase (Decrease) in Cash 1,086,509 622,308 (1,843,437) 502,341 601,021 652,896 598,031 503,706 608,181 1,058,433 1,391,023 1,482,125






Balance Sheet



ASSET

Curent Assets

Cash 732,687 652,069 672,357 743,581 1,015,504 1,282,943 1,626,965 1,904,478 2,360,336 3,173,674 4,274,500 5,432,714

Account Receivable 0 0 0 0 0 0 0 0 0 0 0 0

Inventory 123,250 177,342 272,138 340,159 382,001 409,318 300,593 395,389 625,685 787,960 828,122 800,806

Total Current Assets 855,938 829,411 944,495 1,083,740 1,397,505 1,692,261 1,927,558 2,299,866 2,986,021 3,961,634 5,102,623 6,233,519

Non Current Assets

Property and Equipment

Land & Building 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500

Machinery and Equipment 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401 1,805,401

Total Property and Equipment 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901 18,819,901

Less: Accumulated Depreciation 51,608 103,216 154,825 206,433 258,041 309,649 361,257 412,866 464,474 516,082 567,690 619,299

Total Non Current Assets 18,768,293 18,716,685 18,665,076 18,613,468 18,561,860 18,510,252 18,458,644 18,407,035 18,355,427 18,303,819 18,252,211 18,200,602

Total Assets 19,624,231 19,546,096 19,609,571 19,697,208 19,959,365 20,202,512 20,386,201 20,706,901 21,341,448 22,265,453 23,354,833 24,434,122

LIABILITY AND EQUITY

LIABILITY

Current Liability

Accounts Payable 0 0 0 0 0 0 0 0 0 0 0 0

Taxes Payable 0 1,451 24,276 50,858 103,753 153,931 195,328 257,415 366,719 621,492 917,847 1,211,918

Total Current Liabilities 0 1,451 24,276 50,858 103,753 153,931 195,328 257,415 366,719 621,492 917,847 1,211,918

Non Current Liability

Long-Term Liability

Long-Term Debt 19,913,058 19,825,247 19,736,557 19,646,981 19,556,509 19,465,132 19,372,842 19,279,628 19,185,482 19,090,395 18,994,357 18,897,359

Total Long-Term Liability 19,913,058 19,825,247 19,736,557 19,646,981 19,556,509 19,465,132 19,372,842 19,279,628 19,185,482 19,090,395 18,994,357 18,897,359

Total Liabilities 19,913,058 19,826,698 19,760,834 19,697,839 19,660,261 19,619,063 19,568,170 19,537,043 19,552,201 19,711,887 19,912,204 20,109,277

EQUITY

Retaines Earnings (288,827) (280,603) (151,262) (631) 299,103 583,449 818,032 1,169,858 1,789,247 2,553,566 3,442,629 4,324,845

Total Equity (288,827) (280,603) (151,262) (631) 299,103 583,449 818,032 1,169,858 1,789,247 2,553,566 3,442,629 4,324,845

Total Liabilities & Equity 19,624,231 19,546,096 19,609,571 19,697,208 19,959,365 20,202,512 20,386,201 20,706,901 21,341,448 22,265,453 23,354,833 24,434,122




Balance Sheet



ASSET

Curent Assets

Cash 6,595,755 7,091,759 6,076,763 6,472,189 6,954,764 7,482,469 7,962,390 8,359,570 8,848,433 9,732,260 10,907,805 12,155,370


Inventory 442,001 290,715 545,793 630,819 679,600 577,840 391,053 373,641 663,611 798,840 849,043 560,496

Total Current Assets 7,037,756 7,382,473 6,622,556 7,103,009 7,634,364 8,060,308 8,353,443 8,733,212 9,512,044 10,531,100 11,756,848 12,715,866

Non Current Assets


Land & Building 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500



Less: Accumulated Depreciation 670,907 722,515 774,123 825,731 877,340 928,948 980,556 1,032,164 1,083,772 1,135,381 1,186,989 1,238,597


Total Assets 25,186,750 25,479,859 24,668,334 25,097,178 25,576,926 25,951,262 26,192,788 26,520,949 27,248,172 28,215,621 29,389,761 30,297,170


LIABILITY

Current Liability


Taxes Payable 1,339,508 1,398,316 261,448 340,915 428,169 499,764 551,592 616,572 741,568 1,010,217 1,330,806 1,584,984

Total Current Liabilities 1,339,508 1,398,316 261,448 340,915 428,169 499,764 551,592 616,572 741,568 1,010,217 1,330,806 1,584,984


Long-Term Liability

Long-Term Debt 18,799,391 18,700,443 18,600,505 18,499,569 18,397,622 18,294,657 18,190,661 18,085,626 17,979,540 17,872,394 17,764,176 17,654,876



EQUITY

Retaines Earnings 5,047,851 5,381,100 5,806,381 6,256,695 6,751,135 7,156,841 7,450,535 7,818,751 8,527,064 9,333,010 10,294,778 11,057,311

Total Equity 5,047,851 5,381,100 5,806,381 6,256,695 6,751,135 7,156,841 7,450,535 7,818,751 8,527,064 9,333,010 10,294,778 11,057,311





Balance Sheet



ASSET

Curent Assets

Cash 13,114,969 13,654,259 12,294,225 12,727,855 13,252,687 13,825,031 14,346,972 14,782,034 15,313,412 16,259,554 17,512,028 18,841,470


Inventory 464,101 305,250 573,083 662,360 713,580 606,732 410,606 392,323 696,792 838,782 891,496 588,521


Non Current Assets


Land & Building 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500



Less: Accumulated Depreciation 1,290,205 1,341,813 1,393,422 1,445,030 1,496,638 1,548,246 1,599,855 1,651,463 1,703,071 1,754,679 1,806,287 1,857,896


Total Assets 31,108,766 31,437,596 30,293,788 30,765,086 31,289,530 31,703,418 31,977,624 32,342,796 33,127,034 34,163,558 35,417,137 36,391,997


LIABILITY

Current Liability


Taxes Payable 1,723,282 1,789,331 287,415 375,171 471,069 550,556 609,264 681,794 817,360 1,106,675 1,450,556 1,725,061

Total Current Liabilities 1,723,282 1,789,331 287,415 375,171 471,069 550,556 609,264 681,794 817,360 1,106,675 1,450,556 1,725,061


Long-Term Liability

Long-Term Debt 17,544,483 17,432,986 17,320,374 17,206,635 17,091,760 16,975,736 16,858,551 16,740,195 16,620,655 16,499,919 16,377,977 16,254,814



EQUITY


Total Equity 11,841,001 12,215,280 12,685,998 13,183,280 13,726,702 14,177,126 14,509,809 14,920,808 15,689,019 16,556,964 17,588,605 18,412,121





Balance Sheet



ASSET

Curent Assets

Cash 19,868,637 20,447,617 18,969,901 19,434,066 19,992,775 20,657,845 21,345,642 21,961,492 22,677,211 23,880,331 25,305,959 26,724,312


Inventory 481,781 316,879 594,915 687,593 740,764 648,086 462,729 443,750 759,817 925,457 943,698 610,941


Non Current Assets


Land & Building 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500





Total Assets 37,262,377 37,626,407 36,376,680 36,883,476 37,445,309 37,967,653 38,420,046 38,966,870 39,948,609 41,267,323 42,661,144 43,696,693


LIABILITY

Current Liability


Taxes Payable 1,874,277 1,947,727 313,000 408,244 511,936 609,898 697,564 799,593 1,078,703 1,442,393 1,825,201 2,118,783

Total Current Liabilities 1,874,277 1,947,727 313,000 408,244 511,936 609,898 697,564 799,593 1,078,703 1,442,393 1,825,201 2,118,783


Long-Term Liability

Long-Term Debt 16,130,421 16,004,783 15,877,889 15,749,726 15,620,281 15,489,542 15,357,496 15,224,129 15,089,428 14,953,381 14,815,973 14,677,190



EQUITY


Total Equity 19,257,679 19,673,896 20,185,791 20,725,506 21,313,092 21,868,213 22,364,986 22,943,148 23,780,478 24,871,549 26,019,971 26,900,719





Balance Sheet



ASSET

Curent Assets

Cash 27,810,820 28,433,128 26,589,691 27,092,032 27,693,053 28,345,950 28,943,981 29,447,687 30,055,868 31,114,302 32,505,324 33,987,449


Inventory 503,881 331,415 622,204 719,134 774,744 658,737 445,800 425,951 756,517 910,678 967,909 638,966


Non Current Assets


Land & Building 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500 17,014,500





Total Assets 44,626,095 45,025,889 43,423,195 43,972,418 44,579,002 45,065,845 45,400,892 45,834,701 46,723,401 47,885,949 49,284,156 50,387,290


LIABILITY

Current Liability


Taxes Payable 2,386,176 2,467,381 447,459 551,506 664,372 759,497 832,073 919,686 1,179,807 1,508,770 1,897,030 2,211,909

Total Current Liabilities 2,386,176 2,467,381 447,459 551,506 664,372 759,497 832,073 919,686 1,179,807 1,508,770 1,897,030 2,211,909


Long-Term Liability

Long-Term Debt 14,537,020 14,395,449 14,252,461 14,108,044 13,962,183 13,814,862 13,666,069 13,515,788 13,364,004 13,210,702 13,055,867 12,899,484



EQUITY


Total Equity 27,702,898 28,163,059 28,723,274 29,312,869 29,952,447 30,491,485 30,902,750 31,399,227 32,179,590 33,166,477 34,331,258 35,275,896




5.4 Project Analysis

Payback Period

As we can see above, payback period of Kaset Popeang is 2.83 years. It means that

Kaset Popeang will get money back from investment, which use two years and ten months. It

is good signal on comparing with the cost of investment that company invests.

IRR

As the ratio shows above, internal rate of return is 20% that means how high interest

rates would have to go in order to "wipe out" the value of this investment. This case, our

company could bear in order to raise interest rate up to 20%.

Payback Period = Cost of Project

Average Annual Income

= 20,000,000

7,055,179

= 2.83 Year

IRR = 20%



NPV

This project has positive net present value that means our company will likely gain

money or create benefit. Therefore, this project is accepted.

Return on asset

The rate on assets of our company is 20%, this indicate means what earnings are

generated from invested capital. Hence, our company could generate profit 20% from

invested capital in which use less investment.

Investment Cost & Net Income

Invesment -20,000,000

1st 5,432,714

2nd 6,722,657

3rd 6,686,100

4th 7,882,841

5th 7,263,137

NPV = 4,099,919

Return on Assets = Net Profit

Average on Assets

= 7,055,179

34,446,137

= 20%



5.5 Conclusion

In this chapter, the three financial statements use monthly based. First of all, the

Income statement show that the revenue and cost. The cost of goods sold of our company is

quite high, it is approximately 85% of total sales. Our operation cost is not high in which is

2% of total sales. In addition, the net profit after interest and tax could calculate 6% from

total sales. Therefore, our company gains profit around 4,522,746 baht at the first year and

then the net profit has increased every year.

The Cash flow statement shows the cash in hand that company has in order to operate,

cash at beginning of period is 1,914,187 baht. This cash is deducted from operating,

investing, and financing already. Moreover, our company has 5,662,891 baht at the ending of

first year. The cash in hand has been increasing every year until the fifth year, and then our

company has 7,146,017 baht.

The Balance sheet statement also descripts proportion of money that company has,

our company has long-term debt 20,000,000 baht and most of them are invested to non-

current assets.

Project Analysis shows the data that when is payback period of our company, the net

present value, and Internal rate of return. The first is payback period in which is 2.83, it

means the company will cover the cost of investment around three years and four months.

The net present value is 4,099,919 baht. Moreover, the internal rate of return is 20%. It is

higher than discount rate and its ROA is 20% which means company is earning more money

on less investment. Therefore, this project is interesting for investor for doing this business.

Chapter 6: Risk Management 128


Chapter 6: Risk Management

Chapter 6:

Risk Management



FOLLOWING POINTS:

1. Risk Management



6.1 Risk Management

Agricultural is the main occupancy for Thailand, but it is one of the businesses that

can be affected by many factors. Selling agricultural equipments and supplies therefore has a

good rate of demand, but as agriculture can be unstable sometimes, the demand for

agricultural equipments and supplies will be changed in some situations. For examples,

drought, flood, or a decrease in agricultural products will discourage agriculturists to make

cultivation, and will directly decrease the demand for equipments and supplies.

Therefore, in order to counter with uncertain situations that might affect to the

company, it is necessary to have risk management. This process can reduce the loss of profits

for the company. Followings are risk management plans for Kaset Popeang Shop;

There are nine risks consist of; risk from bad climate, risk from competitors, risk from

the substitute products, risk from price decrease on agricultural products, risk from new

technology, risk from employee error, risk from theft, risk from fire and risk from supplier

Figure 29: Risk Management Model

Risk Management Actions Impact I II III

Significant

3 Fire

Price decrease

on agriculture

products

Competitors

IV V VI

Moderate

2

Substitute

products,

Theft Bad climate Supplier

VII VIII IX

Minor

1

New

technology,

Employee

error

Low

1

Medium

2

High

3

Likelihood



According to Treasury Board of Canada Secretariat in this model, one can assess

where a particular risk falls in terms of likelihood and impact and establish the organizational

strategy and response to manage the risk.

1:1 is risk that our company can accept.

1:2 is risk that our company can accept but our company should to monitor risks.

2:1 is risk that our company may be worth accepting with monitoring.

1:3 is risk that our company requires to considerable management.

2:2 is risk that our company should to management effort worthwhile.

3:1 is risk that our company should to manage and monitor risks.

2:3 is risk that our company must manage and monitor risks.

3:2 is risk that our company requires management effort.

3:3 is risk that our company extremely management essential.

In developing methods to provide guidance on risk management, the different levels

of readiness and experience in a department, as well as variations in available resources need

to be recognized. Therefore, methods need to be flexible and simple using clear language to

ensure open channels of communication.

Risk from competitors

It is possible that new competitors will enter the market in the same area, or the

current competitor will provide new promotions or expand their business, these situations

will effect to the market share of the shop

In order to remain the shop’s market share in these situations, the shop will emphasis

more on promotions and advertisements, to attract customers away from other competitors.

The shop will also remain and promote the good service and the fully equipped concept, to

strengthen the differentiation from other competitors. These actions will help to keep the

shop’s market share from being taken by competitors.



Risk from supplier

In retail business have risk from suppliers such as lack of products and low quality of

products or send goods with wrong order. The risk has more effect with store like lack of

inventory, lost credit of our company, and income decrease.

Therefore, the way to prevent this risk is find and contact more suppliers for distributed risk.

If one of supplier cannot support goods to our company, the company will contact with

another supplier.

Risk from price decrease on agricultural product

The price of agricultural products can be unstable, due to the country’s economy, and

the government’s policies. Agriculturists will change the kind of their cultivation due to the

change in the price, quit growing products with low price and turn to products with higher

price.

Therefore, the shop will decrease the inventory for those products which the price is

decreased, and increase the inventory for products with increased price. In order to do this,

the shop’s manager will have to follow the news of the agriculture industry closely.

Risk from bad climate

In agriculture industry, climate plays a critical role of how the cultivation will become

in the year. If there is few rain falls, and not enough water for cultivation, it will be difficult

for agriculturists to cultivate. In contrast, with excessive rain falls and too much water will

also be a problem for cultivating.

The plan to counter bad climate situation is to adjust the shop’s inventory and

stocking. In a year with drought problem, the shop will stock more to water system

equipments, such as water pump and water pipe, because water system will be more

necessary to the drought season. Other equipments and supplies will be reduced from the

shop’s inventory, as the number of cultivation and demand are lower with drought, and to

spare the space for the water system equipments. As for excessive water period, many

agriculturists will have to change their cultivation to plants which will survive in excessive



water, such as sugar cane. The shop will stock more equipments and supplies for those kinds

of plants, and will reduce the inventory for plants which cannot be cultivated in excessive

water period.

Risk from fire

This risk has opportunity from careless of company and deteriorates of equipments or

electrical equipment. If this risk happens, it has more effect to lose asset and life.

However, our company will prevent fire risk by purchase fire insurance for decrease

lose of asset and increase confident. Moreover, our company will check electrical equipment

every 3 years, train employees carefully and not allow employees to smoke.

Risk from the substitute products

In the agricultural products have substitute products like fertilizer, it’s making from

natural and consumers can make by themselves. The substitutes have effect to decrease

quantity of sale. In addition natural fertilizer not effect to nature and it help to save the

ground.

However, the nature fertilizer still to making for long time to using, and trend to use

nature fertilizer is very low when comparing with fertilizer. Moreover if trend of nature

fertilizer is high, our store will increase promotion and advertising beside the expert

suggestion how to use fertilizer for suitable with cultivate area and the advantage then it can

help to increase quantity of sale and decrease the effect from the substitute products.

Risk from theft

Even though Chiang Rai is not an area with high level of theft problem, if burglary

happens it will cause damage to the inventory and to the profits of the company.

Therefore to prevent the damage that might happen, the shop buys an insurance which

cover the damage of burglary. With the insurance, the shop can be sure to prevent any loss



from theft, along with other accidents that might happen, including fire, hurricane, flood, and

all other disasters.

Risk from employee error

As for all businesses that focus on service concept, employees are a critical factor that

can affect a business greatly. If a salesperson ignores the customers, or if an advisory expert

is impolite to the customers, it will cause negative effects on the image of the company

greatly.

Therefore, in order to prevent these risks, the shop will select people with a good

service mind nature, and will train them continuously to give good service to customers. The

manager will monitor the employees’ performance closely to prevent the error.

Risk from new technology

Agricultural technology can be developed over time, newly developed equipments

and chemicals might replace the older ones. If the shop stock in the inventory many items

which are being replaced by new ones, old items might become out of date and become more

difficult to be sold.

The shop will have to follow the information and news on agricultural technology

development, to always be aware whenever there is new technology item developed.

However, there will be some agriculturists who will prefer to use equipments which they are

familiar with, so the shop will have to organize the inventory for all equipments in

appropriate proportion.



6.2 Financial Risk Analysis

As the table above, if cost of product has increased to 1%, 2%, and 3%, net income

does not decrease as much. On the another case, if Sale has decreased to 5%, 10%, and 15%,

the payback period does not change as much and the last case is increasing of interest will

affect to our company by getting increasing of payback period. However, our company has a

plan to bear those risk such as if cost of product increased, our company also will increase on

price of product following cost. Then, if sale decreased, our company will reduce the

inventory in order to decrease expense and increase cash flow of company. Next, if interest

increased, the new promotion will be added for increasing sale.

Finally, financial risk management is analyzed in order to suppose the situation that

might be occur in the future and how do company effect with that risk. Actually, the data is

quite from the real situation.

Increasing

Cost 1%

Increasing

Cost 2%

Increasing

Cost 3%

Payback Period 2.83 2.97 3.21 3.49

IRR 20% 15% 12% 8%

Normal Case

Worst Case

Decreasing

Sale 5%

Decreasing

Sale 10%

Decreasing

Sale 15%

Payback Period 2.83 2.94 3.14 3.35

IRR 20% 16% 13% 10%

Normal Case

Worst Case

Increasing

Interest to

15%

Increasing

Interest to

18%

Increasing

Interest to

21%

Payback Period 2.83 2.93 3.12 3.48

IRR 20% 17% 15% 13%

Normal Case

Worst Case



6.3 Conclusion

There are many factors that can affect agricultural industry. However, there are

solutions to prevent or solve those situations. There are nine risks consist of; risk from bad

climate, risk from competitors, risk from the substitute products, risk from the substitute

products, risk from price decrease on agricultural products, risk from new technology, risk

from employee error, risk from theft, and risk from supplier.

In situation of bad climate, is a risk in the level that our company should give

management effort; the shop can adjust the inventory according to the cultivation pattern of

the given climate. If the climate is dry the shop will increase inventory for water supply. In

contrast, if there is too much water, the shop will increase supply for cultivating plants in

watery climate.

Situation given there is higher competition in the market, is risk that our company

needs extremely management essential. The shop will emphasis more on promotions and

advertisements and remains and promotes the good service and the variety of goods concept,

to differentiate from other competitors.

In case suppliers become unreliable, as lack of products and low quality of products

or send goods with wrong order, is risk that our company must manage and monitor risks.

The shop will prevent this risk is find and contact more suppliers to decrease the risk.

In case of fire and other natural disasters, is risk that our company should to manage

and monitor risks. Our company will prevent fire risk by purchase fire insurance for decrease

lose of asset and check electrical equipment every 3 years, train employees carefully and not

allow employees to smoke.

Risk of substitute products, is risk that our company may be worth accepting with

monitoring. Our store will increase promotion and advertising, and also emphasis the expert

suggestions and advantages of the shop’s goods over substitute products.

Threats from theft and burglary, is risk that our company may be worth accepting

with monitoring. The shop buys insurance which covers theft and burglary. Even though this

happens, the shop will be paid to cover the amount of the loss.



Employee error is risk that our company can accept. The shop will select people

carefully, and will train them continuously. The manager will monitor the employees’

performance closely.

New technology and innovations, is risk that our company can accept. The shop will

follow the information and trends on agricultural technology development. Then the shop can

adjust the inventory for all equipments in appropriate proportion.

The financial risk management tell that if there is some occurring situation in the

future in which is not good case, how do our company bear this risk and what effect do

company get from those risk.

Chapter 7: Summary 137


Chapter 7: Summary

Chapter 7:

Summary



FOLLOWING POINTS:

1. Summary of The Project



Summary

From this project feasibility, we have found that the growth rate of agricultural

business is growing with an increasing rate. This project is practical as the number and

information have shown opportunities in this business. The market of agricultural industry is

large, with large demand; the current existing competitors’ supply is still not enough to

satisfy all demand of the market. Moreover, agriculture is considered a business with high

competitive strength, as agricultural products are necessary to both domestic and international

market. According from the field study in Mae Chan, with the research and information that

have been gathered and studied, supported by the current market situation, economic and

social condition of Chiang Rai, it is an agricultural province which most citizen are living as

agriculturists. These make agricultural industry still have high growth rate in this area, and

tend to have a better agricultural trend in the future.

In sale forecast, our company forecast the revenue and expense from number of

agriculturist in targeting market and area of cultivate. Our sale is related with seasoning of

crop. Moreover, as our company is new entry, the customers do not know us as well.

Therefore, marketing communication mixed is used in order to attract customers that make

them to know and recognize our company such as radio, sale promotion, event and gift.

We forecast sale estimate in five years, the accumulate sale is approximate

20,000,000 baht in five years. We think first two years our product could not sale as much as

our expected, but after two years, our sale has been increasing higher. We would not give

credit to customers because the risk is high to sell by credit.

The products of the company are fertilizer, insecticide, seed, equipments and parts.

The agriculture equipments, fertilizers, seed, and insecticides in Chiang Rai have many

brands and the company cannot produce by our selves, so our products come from suppliers.

About services, There are three kinds of service processes: General Services, Call center

services and after sale services. Our company give information to our customer about their

problem and the company will advice how to solve it or how to use equipment by advice all

of our customers with good condition to keep relationship.

Employee is important part of company; they are main point to force our company in

order to achieve a goal. The positions for employees consist of top managers, customer

assistants, housekeepers, agriculture experts, transportation manager, repairers and



accountant. The company sets standard and select people with sufficient skills and quality to

become employees, to execute the expected performance for the company.

There are many factors that can affect agricultural industry. There are nine risks

consist of; risk from bad climate, risk from competitors, risk from the substitute products, risk

from the substitute products, risk from price decrease on agricultural products, risk from new

technology, risk from employee error, risk from theft, and risk from supplier. However, there

are solutions to prevent or solve those situations, as stated in risk management chapter.

According to the number being referred from this project study, we can see that the

number in agricultural industry business is high, because of the landscape factors along with

the climate that is supporting agricultural activities. Furthermore, the current economic and

social situations have driven people to become agriculturists more, as the demand for

agricultural products and the price have been increasing from recent years. From the studied

and analyzed information in this project, it is perceivable that this business can generate a

high return, with a continuously growing rate. It is a business in which can be the answer for

investor

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Appendix A: Survey Data 144


Appendix A: Survey Data

Appendix A: Survey Data



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1. ขอมลทวไปของรานคาเกษตร

1.1 ดาเนนการทางธรกจมาแลวกป เรมตนธรกจอยางไรและ เพราะอะไร

20 ป เรมตนธรกจเกษตรดวยตวเองดวยเรมทาจากธรกจขนาดเลกแลวคอยขยายกจการดวย

เรมตนธรกจดวยไมมความรเกยวกบธรกจดวยศกษาขอมลผานทางลกคาทมาซอสนคาและได

เลงเหนวาธรกจนสามารถเตบโตไดในอนาคตเพอรอบรบตลาดโดยการขยายธรกจใหมขนาดท

ใหญขนเพอรองรบตลาดทมการขยายตวเพมขน สาเหตทเลอกทาธรกจนเพราะธรกจนสามารถ

เกบสนคาไดเปนระยะเวลานานและมกาไรตอหนวยคอนขางสง ดวยสนคาบางตวมการหมน

คอนขางไว แตธรกจนใหตนทนในการดาเนนธรกจสง และเปนปจจยใหคแขงรายใหมเขาส

ตลาดคอนขางลาบาก



1.2 ขายสนคากประเภทและมอะไรบาง ยหออะไร (อตราสวนคราวๆ ) สนคาแตละอยาง อนไหน

ขายด อนไหนขายไมด

สนคาทขายดจะเปนพวก เครองพนยา, เครองพนปย Z-767 ยหอ Trico, เครองตดหญา,

เครองสบน า, ทอสงน า, ปมน า, ทอพญานาค, และ อปกรณรวมถงอะไหล สนคาทระหวางชวง

ทาการเกษตรจะเปนพวก เครองสบน า , ทอสงน า, ทอพญานาค, สวนชวงหลงเกบเกยวจะเปน

สนคา เครองตดหญา, เครองพนยา สวนสนคาพวกอะไหลสามรถขายไดเรอยๆตลอดทงป

1.3 รบสนคามาจากทไหน อยางไร

ในทางดานการเกษตรมผจดหาสงของใหกท

ทางรานไดซอสนคาจากบรษทกรงเทพโดยตดตอผานเซลแมนของแตละภาค

เพราะจะซอสนคาไดในราคาทถกกวาการซอสนคาจากทเชยงราย

1.4 คแขงของทานเปนอยางไร

อะไรททาใหเราชนะคแขง หรอคแขงไหนนากลว เพราะอะไร

จดแขงของทางรานคอ มสนคาครบตามทลกคาตองการ และราคาทเหมาะสมกบ

สนคา สถานทงายตอการมองเหนและสะดวกโดยมทจอดรถทกวางและงายตอการจอด

คแขงทนากลวคอ รานทมกาลงซอสนคามากทาใหสามารถขายสนคาไดในราคาทถก

กวา ความครบครนของสนคากเปนสงจาเปนในการดาเนนธรกจ

คแขงรบสนคามาจากทไหน

บรษทกรงเทพโดยผานเซลแมนและรานคาจากเชยงรย



1.5 ลกคาทมาใชบรการรานทานปจจบนเปนอยางไร แลวในอนาคตทานคดวาจะมการเปลยนแปลง

ไปอยางไร

กลมลกคา เชยงแสน แมสาย กลมคาหลกคอกลมชาวนา โดยอนาคตคาดวาอาจจะม

กลมลกคาทเพมขน เพราะปจจยทางดานราคาสนคาการเกษตร เชน ขาว มราคาทสงทา

ใหประชากรหนมาทานา มากขน ทาใหสนคาการเกษตรสามารถเตบโตไดในอนาคต

1.6 ดานตลาดเกยวกบขายสนคาเกษตรเปนอยางไรในปจจบน และจะเปนอยางไรในอนาคต

ในปนสนคาเกษตรพวกอปกรณมยอดขายเพมขนกวาปทผานมา และอนาคตถา

ราคาสนคาเกษตรมราคาทสง อปกรณทางเกษตรนาจะมยอดขายทเพมขนตามความ

ตองการของตลาด สนคาเกษตรโดยรวมแลวจะมราคาไมคอยเปลยนแปลงสกเทาไร จะม

บางตวทมการเปลยนแปลงมาก

2. ลกษณะและพฤตกรรมของเกษตรกรทใชบรการรานคาเกษตร

2.1 กลมลกคาทมาใชบรการเปนใครบาง และประกอบอาชพอะไร

ชาวไร ชาวสวน และอาจจะมกลมเพาะปลกพชภายในครอบครว

หากเปนเกษตรกร เกษตรกรเพาะปลกพชชนดไหน

ขาว ยางพารา ขาวโพด

เกษตรกรเปนคนพนทไหนและเพาะปลกอยทใด

สวนมากจะอยเชยงแสนหรอและมแมสายบางสวน โดยรวมแลวมการทานาเ ปน

สวนใหญและทาสวนยางพารา

2.2 ลกษณะพฤตกรรมการซอสนคาในแตละชวงการเพาะปลกเปนอยางไร (มากนอยแคไหน)

ซออะไรบางแลวเปนชวงเวลาการเพาะปลกชวงไหน

ชวงเกบเกยวจะซอสนคาประเภท กระสอบ ผาเตน ผาฟาง สายพาน น ามนเครอง



ซอไปทาอะไร

กระสอบซอไปเพอใสขาวทเกยวเสรจแลวและพรอมทจะสงไปโรงสขาว ผาเตน

ซอไปเพอตากขาวใหแหง สวนสายพานจะเปนพวกรถเกยวขาว

2.3 เกษตรกรรจกรานทานไดอยางไร เพราะอะไร (ขาประจา/ขาจร)

ปากตอปากเพราะลกคาจะบอกกนปากตอปาก หรอเหนไดจากทางผานรานคา เพราะร าน

เรามลกษณะทงายตอการมองเหน

มลกคารายใหม ๆ มาบางไหม และทาไมถงมาใชบรการ

จะมลกคาใหมๆมาเรอยเพราะกลมลกคามการบอกปากตอปากและมสนคาทครบ

กวารานอนๆ และราคาเหมาะสม รวมถงมการใหคาแนะนาลกคาเกยวกบการใชสนคา

และมบรการตดตงรวมถงการซอมสนคา

3. กลยทธการตลาดของรานเกษตรกร

3.1 ดานสนคาและบรการ

มสนคาบรการทครบครน และมปรมาณตามทลกคาตองการ เชนถาลกคาตองการสนคา

ปรมาณเยอะทางรานจะมสนคาทมปรมาณทเพยงพอตอความตองการของลกคา สวนทางดาน

บรการเราเนนความเปนมตรกบลกคาโดยลกคาสามารถมาปรกษาวธการใชสนคาอยางถกตอง

ทางรานจะคอยแนะนาสนคาทเหมาะสมกบการใชงาน และมบรการสงสนคาและตดตงสนคา

ถงบานรวมถงการซอมสนคาดวย

3.2 ดานราคา

สงจาเปนตอการดาเนนธรกจนเพราะสวนใหญกลมลกคาจะไมมความยดยนทาง ดงนนทาง

รานจงเนนกลยทธดานราคาดวยเนนราคาสนคาตองตากวาหรอเทาคแขงในตลาด



3.3 ดานสถานท

ตองสะดวกตอการมาซอสนคา โดยมสถานทจอดรถสะดวกและอยใกลชมชนเพอลกคาจะ

ไดงายตอการเดนทางรวมถงการสงสนคา

3.4 ดานการสงเสรมการขาย

มการแจกของสมมนาคณตางๆ ตามเทศกาล เชนปใหม เพอสรางความประทบใจและดงดด

ลกคารายใหมา

4. ปยจยทเปนผลกระทบตอรานคารวมไปถงลกคา และแนวทางการแกไขปรบปรง

4.1 อะไรทเปนปญหาสาหรบการขายสนคาเกยวกบเกษตรของทานบาง

ปญหาทเกดจากการขายสนคาเกษตรจะมพวกสนคามปญหาหรอชารดตองเปลยนสนคาตว

ใหมทาใหเกดคาใชจายในเรองคาขนสง สนคาบางชนคางสตอกนาน ทาใหเปนของเสย และ

สนคาชารดไมสามารถสงคนไดเพราะเซลแมนมาครงเดยวแลวกหายไป

4.2 ทางรานมแนวทางอยางไรในการแกไขปญหาเหลานน

ถาสนคาตวไหนมปญหาเลกๆนอยทางรานกจะแกไขเบองตนเพอลดตนทนในเรองการ

ขนสงเพมขน ตองดวาเซลแมนคนนมารานบอยแคไหนและมความไววางใจไดมากนอยแค

ไหน

4.3 อยากใหรฐบาล หรอหนวยงานอนๆ ชวยเหลออยางไร

อยากใหรฐบาลเขามาชวยประกนราคาสนคาเกษตร เพอใ หเกษตรกรยงสามารถทา

การเกษตรไดตอไปดวยไมขาดทนจากการทาการเกษตร ถาเกษตรกรอยไดรานคากอยไดแตถา

เกษตรกรอยไมได รานคากไมสามรถอยไดเชนกน







ชอผถกสมภาษณ นาย จรญ เลาตระกล เวลาสมภาษณ 10:00 ถง 10:30

สถานทสมภาษณ ราน จนทรเจรญ หมายเลขโทรศพทตดตอ




ทามาประมาณ 15 ป เปนธรกจทสบตอมาจาก พอและแม รวมประมาณ 40 กวาป



1.2 ขายสนคากประเภทและมอะไรบาง ยหออะไร (อตราสวนคราว ๆ) สนคาแตละอยาง อนไหนขายด

อนไหนขายไมด

ขายถงเพาะชา เมลดพนธ เครองพนยา เครองมอการเกษตรทวไป ซงในสวนของเมลดพนธนน

ขายไดทกฤด แตจะขายไดดในชวงฤดหนาว สวนเครองพนยา จะขายไดประมานตนฤดฝน กอนท

ชาวนาจะทานา โดยจะผสมยาฆาหญากอนจะทาการเพาะปลก



สวนใหญจะรบจาก เซลล ทมาจากกรงเทพ มาขาย ซง ทางบรษทของ Agent บางราย

จะผลตเอง และบางราย จะมการนาเขามาจากจน

กลยทธของผจดหาสงของใหเปนอยางไร

ทางเซลล จะมโปรโมชน เรองการซอของในปรมาณมากๆ แลวจะมของแถมมาให เชน

ซอ1 โหล แถม 2 ใบ และทางเซลล ยงมบรการเรองเครดต ประมาณ 45 วน


คแขงทานคอใคร และคแขงมลกษณะอยางไร

มประมาณ 5 ราน ทขายคลายๆกน แตทครบวงจร หลกๆแลวจะม 3 ราน คอ ล.รงเรอง

รานกตตภณฑ และรานเพมผล โดยราน ล .รงเรอง จะขายลกคาทวไป ทางเชยงแสน ไป

จนถงแมสาย รานกตตภณฑ ลกคาสวนมากจะเปนชาวเขา และรานเพมผล จะขายทวไปและ

ชาวเขา

รายไดเมอเปรยบเทยบกบคแขง

ปละประมาณ 3 -10 ลานบาท ในชวงทสงทสด ไมรวมตนทนตางๆและภาษ




เปนรานคาปลก ทใกล กบตลาดและ ตนสายรถสองแถว คแขงทนากลว คอรานคา

ใหญๆ ทมสนคาครบวงจร เพราะสนคาจะมราคาถกและมสนคาใหเลอกมาก


รบมาจาก agent ตางบรษทกน และรานใหญๆจะซอในปรมาณมากทาใหสามารถซอ

ไดในราคาถก และบางagent มการกาหนดเรองขนาดของราน เชนตองเปนรานทใหญทสด

ในจงหวด จงจะไดขายสนคาชนน

ลกคาทมาหาเรา ตางจากคแขงอยางไร

สวนมากจะเปนลกคาทกาลงจะขนรถแลวแวะมาซอกอนกลบบาน หรอเปนลกคาราย

ยอยในแมจนทปลกผกสวนครวทวไป

คดวาจะมคแขงใหมๆ เปดเพมหรอไมในบรเวณแมจน

ในปจจบนมการเปดรานคาการเกษตรเยอะมาก แตสวนมาก จะเปนกลมคนทเรยนจบ

ทางดานการเกษตรแลวมาเปดเปนรานปลกยอย

1.5 ลกคาทมาใชบรการรานทานปจจบนเปนอยางไร แลวในอนาคตทานคดวาจะมการเปลยนแปลงไป

อยางไร

ในอนาคต จะมลกคาประจามากขน โดยสวนมากจะเปนลกคาปลกรายยอย และจะขายปลกไป

เรอยๆอยางเดยว เพราะการขายสงจะใชตนทนมาก

1.6 ดานตลาดขายสนคาเกยวกบเกษตรเปนอยางไร และจะเปนอยางไรในอนาคต

สนคาเกษตรมการขายดมากขน แตยงมปญหาเนองมากจากรานคาทเพมมากขนเรอย ๆ






เปนเกษตรกรทวไปและชาวบานทปลกพชผกสวนครว แตในชวงน ชาวนาทปลกขาว

จะไมคอยม เนองจากชาวนาจะไปรบเมลดพนธขาวจาก ธกส . และ สวนมากชาวนาจะอย

ธกส. และสหกรณในการซอสนคามากกวาเนองจากเปนของกลมชาวนา


เปนเกษตรกรทเพาะปลกในบรเวณแมจน สวนมากจะปลกขาวเปนหลก


ซอบอยไหม

ถาเปนในชวงฤดการเกบเกยว สนคาทวไปท กประเภท ชวงนจะเงยบ แตหากเขาชวง

มกราคม เปนตนไป จะสามารถขายไดทกประเภท


ชวงทขายไดตลอดเลยคอชวงมกราคมเปนตนไป จนถง เมษายน เนองจากการทองเทยว

และเกษตรกร ไดขายสนคาตลอด แตในชวงสงหาคม – ตลาคม จะขายสนคาไมคอยได

เนองจากชาวนาจะไมคอยมเงนเนองจากเปนชวงทานาใหม ชาวบานจาเปนตองใช เงนไป

ลงทนทานา


ลกคาทวไปจะซอไปใชปลกพชผกสวนครวตามบานเรอนกนเอง และจะมเกษตรกรเขา

มาซออะไหล และอปกรณ การเกษตร


ลกคาทมาใชบรการมาซอบรการแลวกป

เปนลกคา ประจากมบาง และเปนมาหลายปดวย มเขามาซอตลอดทกๆเดอน




ลกคาใหมๆทเปนลกคาขาจรยงมวนเขามาในรานเรอยๆตลอด เนองจากทาเลรานอยใกล

ตลาดและทารถ

มลกคารายเกา ๆ หายไปบางไหม

มลกคาปลกรายยอยทเปนขาประจาอยบาง ซงสวนมากจะมาซอสลบวนกนไปเรอยๆกบ

ลกคาขาจร



สนคาสวนมากจะเปนเมลดพนธพช อ ปกรณการเกษตรเชนถงพนยา และอะไหลซงเปนตวทา

กาไร แตนานๆจะขายไดครงหนง เพราะชาวนาไมคอยเปลยนบอยซกเทาไร


รานจะใชราคาเทาๆกบตลาดทวไป


ทางรานม ทาเลทตงทดกวาเนองจากอยใกลกบ ทารถ และตลาด มคนพลกพลาน

3.4 ดานพนกงาน

มพนกงาน 3 คนเปนคนในครอบครว และมการจางพนกงานเพม 1 คน หากแตเปนรานคา

ใหญๆหรอรานขายปย จะมคนงานประมาน 7 คนขนไปเนองจากจาเปนตองใชแรงงานขนปยเปน

จานวนมาก

4. ปจจยทเปนผลกระทบตอรานคารวมไปถงลกคา และแนวทางการแกไขปรบปรง

4.1 อะไรบางทเปนปญหาสาหรบการขายสนคาเกยวกบเกษตรของทานบาง

ปญหาสวนใหญจะมาจากสหกรณเนองจากกลมชาวนาและเกษตรกร ชอบเขาไปในรานสหกรณ

มากกวา เนองจากมการใหบรการ ความร และเขาไปดแลชาวนาในดานการเพาะปลกและมสนคาสหกรณ

ทขายในราคาถกอกดวย นอกจากนนยงมมตลาดนดมากขน และมบรเวณทเรยกวาคลองถม ซงทาใหลกคา

เบยงเบนไปยงแหลงนนมากกวา



ทางดานเศรษฐกจ จะไมกระทบมากเทาไรเนองจากเปนรานเลกๆ แตหากเปนรานใหญๆ จะไดรบ

ผลกระทบมากกวา


อยากใหรฐบาลสงเสรมทางดานการเกษตรใหมากกวาน อยางนอยมวทยากรมาใหความรกบ

เกษตรกรมากขน เพราะปจจบนเชยงรายมาปลกยางพารากนเยอะมาก และเกษตรกรยงไมเพยงพอตอการ

ดแลเกษตรกร และอยากใหรฐบาลมการ นาพนธทดๆเขามาซงจะชวยให เกษตรกรมการขายทไดราคามาก

ขน และ ควรทจะมการรบประกนราคาดวย







ชอผถกสมภาษณ เวลาสมภาษณ ถง

สถานทสมภาษณ ราน ล. รงเรอง หมายเลขโทรศพทตดตอ

ค าถามแบงออกเปน 4 ตอน ดงน


1.1 ด าเนนการทางธรกจมาแลวกป เรมตนธรกจอยางไรและ เพราะอะไร

รานดาเนนการมาแลวกวา สามสบป โดยธรกจนไดรบชวงตอจากคณพอ ททามาอยกอนแลว

และเหตผลทมาทาธรกจขายอปกรณการเกษตรนนเพราะ เมอกอนทาธรกจเกยวกบการรบซอ

ผลผลตพชไร พชสวนจากเกษตรกร เปนธรกจงายๆ หลงจากนนเหนชองทางวาสามารถทจะ

เปดรานขายอปกรณเกษตร เนองมากจากเหนวาเกษตรกรทมาขายผลผลตกบเรานนมจานวน

พอสมควร จงตดสนใจเปดรานขายการเกษตรขนมา



มสนคาทขายหลกๆ อย สามอยาง ไดแก ปย ยาฆาแมลง และเมลดพนธ สนคาเหลานจะขายด

ในชวงหลงมกราคมเปนตนไป จนกระทงเดอนเมษายน ชงชวงเวลาดงกลาวถงเปนชวง High

season ของการขายสนคาการเกษตรของทางราน หลงเดอนเมษายนจนกระทงเดอนธนวาคมก



เปนชวงปกตขายสนคาไดเรอยๆ แตไมถอวาดหนก โดยเฉพาะชวงกอนการปลกพชอกครง

หรอชวงการเตรยมดนเพาะปลกนน จะขายสนคาไดนอยกวาปกตมาก



ทางรานไดรบสนคาโดยตรงจาก Supplier โดยไมผาน Middleman ซงทาใหทางราน

ไดรบราคาสนคาถกกวาคแขง ในดานปรมาณการสงสนคาทมากและไดราคาตา

กลยทธของผจดหาสงของใหเปนอยางไร

ทาง Supplier นนไดมการชวยทางรานในการใหราคาสทธกบทางราน แทนการซอ

ครบโปรโมชนแลวแถมสนคาให


คแขงทานคอใคร และคแขงมลกษณะอยางไร

บรเวณแมจนกจะมรานเลกๆตามบรเวณตลาด ซงรานเหลานนกม Segment ทแตกตาง

กบรานเราไป

รายไดเมอเปรยบเทยบกบคแขง

รายไดเฉลยหากเปนชวงปกตจะตกเฉลยวนละประมาณ 50,000 บาทตอวน

หากเปนชวงทมการสงซอสง ๆ รายไดจะตกเฉลยวนละประมาณ 100,000 บาทตอวน

โดยคดเปนสดสวนตนทนกบกาไร 90:10

อะไรทท าใหเราชนะคแขง หรอคแขงไหนนากลว เพราะอะไร

ทางรานมการเจาะกลมตลาดทแตกตางจากคแขงโดยเนนกลมลกคาระดบกลาง และท

รานจะมการคดคณภาพของสนคาเพอใหลกคาไดรบสนคาทดไปใช รวมถงราคาทถก

จากการทตารองกบ Supplier ขอราคาสทธสนคาแทนของแถม และทรานกเปนรานท



เปดมานานแลวเปนทรจกคนเคยของเกษตรกรอยางด ทางรานถอเปนรานเดยวทเปน

รานขนาดใหญเมอเทยบกบคแขง


ลกคาทมาหาเรา ตางจากคแขงอยางไร

ลกคาสวยใหญจะเปนลกคาขาประจาทคยเคยกบทางรานเปนอยางด เปนลกคาทเนน

คณภาพของสนคาและราคาทเหมาะสม

คดวาจะมคแขงรายใหม ๆ เปดเพมหรอไมในบรเวณแมจน

มรานเปดใหมอยเรอย ๆ เพราะคดวาธรกจการเกษตรไปไดด แตสวนใหญจะเปนรานท

อยตามหมบานตาง ๆ เปนรานทมขนาดเลก



ลกคาปจจบนทเคยมาซอสนคากบทางรานกยงคงซอสนคากบทางรานอยเพราะ ราคาทยตธรรม

สนคาทมคณภาพ การบรการทด รวมถงความคนเคยกบลกคาทมมาอยกอนแลว กลมลกคาเดม

ไมคอยมการเปลยนแปลง แตจะมกลมลกคาหนาใหม ๆ ทมเพมขนเนองมาจากการทมคนกนมา

ทาการเกษตรมากขน หรอไมวาจะเปนกลมลกคาตางชาต ทมาซอสนคาการเกษตรไปใชเองท

บาน เชน กลมลกคาชาวตางชาตทมาลงทนทาการปลกยางพารา และกลมลกคาชาวตางชาต

ทปลผกสวนครวกนเองทบาน


ตลาดการขายสนคาเกษตรมแนวโนมลดลงทกป จากททางรานเหนมาสองถงสามปน จากกลม

เกษตรกรทปลกพชชนดเดยวหรอนอยไมไดสนใจจานวนผลผลตทางการเกษตรเทาไรหนก

โดยทหนไปไมใสปยแทน และขอสาคยชญทสดคอชาวบานไมมรายได โดนทอาจจะรบ



ผลกระทบมาจากเศรฐกจทตกตาอยในปบจบนนนเอง เลยทาทาพฤตกรรมการใชปยลดลง เชน

จากเดมทเคยมาซอปยเปนกระสอบกหนไปซอเปนกโลกรมแทน หรอซอปยในปรมาณทพอใช

กอน ไมซอเพอไวเหมอนแตกอน และตลาดในอนาคตเกยวกบการขายสนคาเกษตรนนจะตอง

รจกปรบตวใหเขากบสถาณการณใหได เดยวนทางรานพยายามทจะปรบตวเพอรบความเสยงท

จะเกดขนในอนาคตโดนเปลยนจากการขายสนคาทเนนปรมาณมาก ๆ เปนการขายสนคาให ได

เรอย ๆ ทกวนใหมตวเลขการขายสมาเสมอ โดนปจจบนรานขายเกษตรจะตองมการปรบปรง

รานอยสม าเสมอ และสามารถทจะใหขอมลแกเกษตรกรได



กลมลกคาหลกของทางรานเปนกลมลกคาททาการปลกผกและมกลมลกคาครวเรอนทมาซอ

เมลดพนธ ปย ไปปลกพชผกสวนครวทบาน และกลมชาวนาเปนกลมลกคาทมาซอปยเปนสวน

ใหญ และมกลมลกคาทเปนรานเกษตรเลกๆตามหมบานรบของไปขายตออกท


เปนกลมปลกพชผกสวนครว และชาวนาทวไป


ลกคาหลกจะเปนกลมเกษตรกรทอาศพอยทแมจนเปนหลก แมสาย และเชยงแสน

หากวดเปนสดสวนแลว 75% เปนกลมลกคาทองท และอก 25% เปนกลมลกคาตาง

อาเภอ


ซอบอยไหม



แบงกลมลกคาทมาซอสนคาเปนเกษตรกรทมพนทเพาะปลกขนาดเลก กลาง และ ใหญ

โดยท เกษตรกรทมพนทเพาะปลกขนาดเลก จะมาซอทกวนแตซอปรมาณนอย หรอไม

กแวะเพราะเปนทางผานไปตลาดอยแลว เกษตรกรทมพนทเพาะปลกขนาดกลางจะมา

ซอสนคาทก ๆ 10 วน และเกษตรกรทมพนทเพาะปลกขนาดใหญกเฉลย 10 วนครง แต

สวนใหญจะขนอยพฤตกรรมของลกคาอกทถาหากวาถาปยยงมใชอยกจะไมออกมาซอ

จนกวาจะหมด หรอถาหากแวะผานมากจะซอไปไวกอนบาง


ซอไปท าอะไร

2.3 เกษตรกรรจกรานทานไดอยางไร เพราะอะไร (ขาประจ า/ขาจร)

ลกคาสวนใหญจะเปนขาประจาทมาใชบรการอยางตอเนองมขาจรบางเลกนอย

ลกคาทมาใชบรการมาซอบรการแลวกป

มลกคารายใหม ๆ มาบางไหม และท าไมถงมาใชบรการ

ลกคารายใหม กมเพมขนเรอย ๆ โดยเปนกลมลกคาทวไป โดยมลกษณะแวะจอดซอ

เพยงของเลกนอย โดยลกคาใหม ๆ จะเปนกลมทขบรถผานเพอทจะไปแมสายอกท

มลกคารายเกา ๆ หายไปบางไหม



บรการดวยความเตมใจและใชความ friendly รวมถงใหขอมลแกลกคา เปนการดกดดใหลกคา

มาใชบรการหรอซอสนคาเราอก




ราคาทถก


ทางรานมทจอดลดสะดวกสบายงายตอการซอของ ทาเลดโดยทมถนนเปนทางผานไปแมสาย

กบตลาดแมจน


มการแจกของสมนาคณบางตามเทศกาลตาง ๆ เชน ปใหมแจกปฏทนกบลกคา

3.5 ดานพนกงาน

มพนกงานอยทรานหกคนเปน พนกงานแรงงานสวนใหญ

3.6 ดานภาพลกษณ

ทางรานพยายามเปลยนภาพลกษณจากการเปนรานขายสง ใหเปนรานขายปลก โดยเปดหนา

รานรบลกคาทวไปดวย


4.1 อะไรทเปนปญหาส าหรบการขายสนคาเกยวกบเกษตรของทานบาง

4.1.1 ทรานยงขายสนคาเกษตรไมครบ ทาใหบางครงลกคาจะตองไปซอสนคาทอน ทาให

บางครงเกดการเปลยนรานซอได (Switching brand)

4.1.2 ปญหาการปลอยเชอแลวไมสามารถเรยกเกบคนได

4.1.3 กยงมปญหาเกยวกบดานเศรฐกจททาใหราคาผลผลตของเกษตรกรตกตา สงผลให

เกษตรกรซอสนคาเกษตรนอยลงไปทก ๆ ป เพราะเกษตรกรจะตองรบภาระตนทนของ

การปลกเพมขนแตทางกลบกนขายผลผลตไดราคาตาลง



4.1.4 ราคาสนคาการเกษตรไมแนนอน เชน ราคาปยปทแลวราคาเปลยนแปลงไปสงมาก

เพราะอนเดยมความตองการใชปยเพมมากขน จนทาใหสนคาขาดในบานเรา สงผลให

ราคาปยสงขน


4.2.1 ปญหาการปลอยเชอแลวไมสามารถเรยกเกบคนได ทางรานไดแกไขตรงจดนโดยการ

ปรบกลยทธตงแตเมอสามปกอน โดยเนนรบเงนสดหนารานมากขน และบอกกบลกคา

ตรง ๆ วาไมปลอยเชอพรอมทงบอกเหตผลกบลกคาตรง ๆ โดยกลมลกคาเองกยอมรบ

ไดกบตรงน


4.3.1 อยากใหภาครฐคอยชวยเหลอเกษตรกรทางดานราคาของผลผลตตาง ๆ เพราะตรงสวน

นมความเกยวของโดยตรงกบทางราน เชน การประกนราคาสนคาเกษตร







ชอผถกสมภาษณ คณ อดมดมศกด จระกาลนกล เวลาสมภาษณ 13.30 ถง 15.00

สถานทสมภาษณ ราน กตพนธ หมายเลขโทรศพทตดตอ




ดาเนนธรกจมาแลวกวา 18 ปเหตอนเนองมาจากวา เด มประกอบอาชพคาขาย

เสอผา แตเนองจากตามยคสมยไมทน เทรนดในการแตงตวกเปลยนไป จงทาใหเสอผารน

เกาไมสามารถจาหนายได และเปลยนอาชพมาเปนการจาหนายปย และยาฆาแมลงแทน

เพราะเกบไดนาน ไมตองตามยคสมย





ขายปย ยาฆาแมลง ฮอรโมนพช อปกรณเกษตร เครองพนยาเมลดพนธ อนทขายด

คอ ปยยเรยสตร46-0-0 สตร15-15-15 สตร 16-20-0 เครองพนยานอกนนกพอขายได



รบสนคาจากตวแทนจาหนายในจงหวดเชยงราย



สงทเอาชะคแขงไดกคอการบรการและราคาทถกใจลกคา เพราะเจาของรานม

ความรดานการทาเกษตร จงสามารถใหคาปรกษาแกเกษตรกรได รวมไปถงสามารถ

ตอรองราคาได ลกคาจงชอบทจะมาปรกษาปญหา บอยๆ คแขงทนากลวกจะมราน ล .

รงเรองเพยงรานเดยวเพราะเปนรานทใหญและมประสบการณมากพอสมควร


คแขงเปนตวแทนจาหนายสนคาแหลงใหญในอ.แมจน และรบสนคามาจาก

ตวแทนจาหนายในกรงเทพฯ



กลมลกคาสวนมากจะมาจากบนดอยหรอชาวเขาเปนสวนใหญ มพฤตกรรมการ

ซอทด ค อมการมาซอสมาเสมอและบางครงมการซอในปรมาณทมาก อนาคตอาจมการ



เปลยนแปลงลกคา เพราะมการแขงขนกนทางดานธรกจมาก อกทงลกคารายตางๆจะ

พจารณาการซอสนคาเพมมากขน


ปจจบนมสนคาทางการเกษตรมาก แตคณภาพของสนคาแตละยหอกแตกตางกน

โดยเฉพาะสนคาปลอมทเดยวนนยมนามาขายกนมากทาใหสนคาเดมทมอยถกตดราคา

และในอนาคตคาดวาจะมคนนยมทาธรกจรานคาเกษตรเพมมากขนเพราะมลกคาอยใน

หลายพนทและสนคาเกษตรสามารถเกบไดนานไมเสยหายงาย



สวนมากจะเปนชาวเขาประมาณ 80 % และเกษตรกรในพนทอก20%


ขาว ขาวโพด


เกษตรกรสวนมากมาจากบนเขา อ .แมจน บรเวณบานเทดไท อ .แมสลองม ,กว

ไสตร, อ.แมอาย ,อ.ฝาง



ปยจะขายดในชวงเดอนมนาคม ถง มถนายน รวมไปถงฮอรโมนเรงพชตางๆ และ

เครองพนยาจะขายดในชวงเดอน พฤจกายน ถง กมพาพนธ




ซอไปเตรยมปลกพชแปลงใหม เตรยมดน


เกษตรกรทเปนลกคาสวนมากจะรจกเพราะรานอยใกลทสด เปนรานแรกทพบ สวนลกคาม

ทงขาประจาและขาจร แตขาจรจะเยอะกวา


จะมลกคาใหมๆมาเรอยเพราะกลมลกคามการบอกปากตอปากและมสนคาทครบ

กวารานอนๆ และราคาเหมาะสม รวมถงมการใหคาแนะนาลกคาเกยวกบการใชสนคา



มสนคาบรการทครบครน และมปรมาณตามทลกคาตองการ เชนถาลกคาตองการสนคา

ปรมาณเยอะทางรานจะมสนคาทมปรมาณทเพยงพอตอความตองการของลกคา สวนทางดาน

บรการเราเนนความเปนมตรกบลกคาโดยลกคาสามารถมาปรกษาวธการใชสนคาอยางถกตอง

ทางรานจะคอยแนะนาสนคาทเหมาะสมกบการใชงาน และสามารถใหคาปรกษากบเกษตรกร

ไดเปนอยางด

ดานราคา สงจาเปนตอการดาเนนธรกจนเพราะสวนใหญกลมลกคาจะศกษาราคาจาก

หลายๆราน ดงนนทางรานจงเนนกลยทธดานราคาดวยเนนราคาสนคาตองตากวาหรอเทาคแขง

ในตลาด




มหนารานอยสองทและมโกดงเกบสนคาตางหากอกทหนง ซงทาใหลกคาสะดวกตอการ

ขนยาย


มการลดราคาใหลกคาเปนหลก และอาจมการแจกของสมนาคณใหในชวงเทศการสาคญ ๆ


4.1 อะไรทเปนปญหาสาหรบการขายสนคาเกยวกบเกษตรของทานบาง

ราคาผลผลตทางการเกษตร เพราะถาเกษตรกรขายผลผลตไดในราค าทไมด กจะไมม

เงนทนมาซอสนคาทางการเกษตร หรอซอในจานวนทลดลงกวาเดม


พยายามใหราคาทลกคาพงพอใจ แตไมกระทบตอทางรานมากนก


อยากใหรฐบาลเขามาชวยประกนราคาสนคาเกษตร เพอใหเกษตรกรยงสามารถทา

การเกษตรไดตอไปดวยไมขาดทนจากการทาการเกษตร ถาเกษตรกรอยไดรานคากอยไดแตถา

เกษตรกรอยไมได รานคากไมสามรถอยไดเชนกน

Project feasibilty Study and Evaluation (Kaset Popeang)

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Transcript of Project feasibilty Study and Evaluation (Kaset Popeang)