Soul of Beauty Co,Ltd

8/7/2019 Soul of Beauty Co,Ltd

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A

Preface

Preface This Project is a part of 1203302 Project Feasibility Study and Evaluation

Course in the second semester of 2010. In this project is studying the feasibility of jewelry

and gem business in Chiang Mai, which is include generally of jewelry and gem business,

management in jewelry and gem business, competition analysis and marketing feasibility, the

technical process in jewelry and gem business, the financial feasibility of jewelry and gem

business, and risk of jewelry and gem business.

This project makes everyone who interested to get knowledge and information about

jewelry and gem business before make decision to investment, including preoperational

process and operation process of jewelry and gem business, for the benefit to investment and

profit of doing this jewelry and gem business.

We expect that our project will provide benefit more and more interested person,

more over, if they are any error in this project or whatever, our ground made an apology at

this opportunity.

Group members

Miss Nattida Bua-ngam

Miss Nartnarin Suksao

Miss Nopphawan Klabdi

Miss Piyaporn Nojit

Miss Ulaikorn Singsook


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Table of Content

Title Page

Preface.................................................................................................................................... A

Content................................................................................................................................... B

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

1.1 Background and Significance of the project..........................................................2

1.2 Project objectives...................................................................................................2

1.3 Benefits of project................................................................................................. 3

1.4 Operations methods...............................................................................................4

1.5 Time frame of study.............................................................................................. 5

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

2.1 Nature of Industry................................................................................................. 7

2.2. Situation of Industry........................................................................................... 10

2.3 Product and Service..............................................................................................20

2.3.1 Hand craft............................................................................................. 20

2.3.2 Fashion.................................................................................................. 24

2.3.3 Order......................................................................................................28

2.4 Vision................................................................................................................... 28

2.5 Mission..................................................................................................................28

2.6 Strategy................................................................................................................ 28

2.6.1 Corporate Level......................................................................................28

2.6.2 Business Strategy....................................................................................29

2.6.3 Functional Strategy................................................................................ 29

Chapter 3 Marketing Feasibility Study.................................................................................. 31

3.1 Marketing Analysis..............................................................................................32

3.1.1 General Environment of Chiang mai....................................................32

3.2. General Environment Analysis............................................................................37

3.2.1 Political Analysis..................................................................................37

3.2.2 Economic Analysis...............................................................................43


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3.3 Competition Analysis........................................................................................49

3.4 Customer Analysis.............................................................................................51

3.5 Competitive Analysis..........................................................................................53

3.6 STP Analysis.......................................................................................................54

3.6.1 Market Segmentation...........................................................................54

3.6.2 Target Analysis....................................................................................55

3.6.3 Position Analysis..................................................................................55

3.7 Marketing Mix Strategy Analysis.......................................................................56

3.7.1 Product strategy...................................................................................56

3.7.2 Price strategy........................................................................................58

3.7.3 Place strategy.......................................................................................62

3.7.4 Promotions strategy.............................................................................62

3.8 Sales Forecast/Profit Estimation........................................................................63

3.9 Marketing Expenses...........................................................................................71

3.10 Conclusion in market feasibility......................................................................73

Chapter 4 Technical Feasibility Study................................................................................75

4.1 Production and Operation Analysis...................................................................76

4.1.1 Product characteristics........................................................................76

4.1.2 Service Process...................................................................................81

4.1.3 Location............................................................................................. 82

4.1.4 Facility Layout................................................................................... 84

4.1.5 Machine/Tools/Equipment..................................................................86

4.1.6 Logistics Management........................................................................97

4.1.7 Machine/Tools/Equipment..................................................................100

4.2 Cost of Investment........................................................................................104

4.2.1 Pre- Operating Cost............................................................................104

4.3 Investment Cost................................................................................................ 108


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4.3.1 Equipments & Tools...........................................................................108

4.3.2 Depreciation.......................................................................................109

4.4 Management Analysis.......................................................................................115

4.4.1 Organization Management.................................................................115

4.4.2 Organization Chart............................................................................ 116

4.4.3 Administration Cost.......................................................................120

4.5 Technical Feasibility Conclusion......................................................................121

Chapter 5 Financial Analysis...............................................................................................123

5.1 Income Statement............................................................................................. 126

5.2 Balance Sheet....................................................................................................131

5.3 Statement of Cash Flow................................................................................... 136

Chapter 6 Risk Management...............................................................................................142

6.1 Risk analysis.................................................................................................... 143

6.1.1 External Forces...................................................................................143

6.1.2 Internal Forces................................................................................... 148

6.2 Conclusion of Risk Management..................................................... .155

Chapter 7 Summary..............................................................................................................156

7.1 Summary of project feasibility study................................................................ 157

Reference............................................................................................................................ 160

Appendix............................................................................................................................ 161


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Chapter 1

Introduction


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Chapter 1 Introduction

1.1 Background and Significant of the Project

The wordjewelry is derived from the wordjewel, which was Anglicized from the Old

French "jouel" circa the 13th century. Further tracing leads back to the Latin word "jocale",

meaning plaything. The first jewelry was worn by the Cro-Magnons, ancestors of Homo

sapiens. Their jewelry included crude necklaces and bracelets made of bone, teeth and stone

stitched to animal sinew. Jewelry was made for practical uses such as pinning of clothes

together. It was used not only for decoration but was also considered as a status symbol.

Jewelry had various functions to serve. Its main purpose, in ancient times, was to ward off

evil. People have paid dowries with jewelry. It was also created to be used as currency for

trading goods, evident from the use of slave beads. It also was a distinguishing mark between

the ruler and the ruled. (www.fashion-era.com/jewellery.htm)

Jewelry making is an old craft that has been in existence since ancient times. Many

centuries men and women both liked to adorn themselves with jewelry items. Thailand in

recent years has extended its range and scope of traditional handicraft products. Thai

handcraft jewelry is saliently because Thailand is famous in handcraft and art. It is special

identity and differentiation and the products which made by handcraft are attract foreigners.

Thai handmade products are now being made to cater for western tastes and to a much higher

western quality. Therefore Soul of Beauty jewelry offer the Thai handcraft jewelry which is

salient, special identity and various designs to customers.

Chiang Mai is center of North, Thailand and has distinguish culture, identity and

traditional. We selected Chiang Mai, Thailand to launch the business because it is important

of tourism industry in Thailand and has much tourist in every year. Moreover, Chiang Mai is

traditions reflect the charm of the region namely diverse dialects, cuisine, handicrafts,


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festivals and architecture. Therefore Soul of Beauty company try to be combine Lanna art

and jewelry together to design the quality of product and has identity, difficult to copy

because our purchase of genuine handicraft products can really make a difference to some

Thai artisans out in the countryside. Our company reminds in detail of product and neatly

design and customer can preorder and design their own jewelry.

So we are interested in study feasibility jewelry business in Chiang Mai, opportunity

to access the market, risk and barrier and etc.

1.2 Project objective

-To study feasibility of jewelry business

- To study market activities.

- To study trend and situation of jewelry market

- To study finance feasibility

- To study risk analysis and sales forecast of jewelry market.

- To study behaviors of customer

- To study new channel of distributions.

- To study the way to success goal of our business.

1.3 Benefit of project

- To gain more knowledge in jewelry market.

- To know customer behavior and demand of jewelry

- To know about business cycle of jewelry business

- To know about customer demand and the way to satisfy them.

- To get a structure that suitable for jewelry market in Chiang Mai.

- To gain profit from business.


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1.4 Operating Methods

Brainstorming to find project and topic

Collect data and information searching

Discuss and conclude the business

To specify business structure and create prominent point for our business

Discuss about background of business

Create project objective, benefits and create project time frame.

Industry profile discussion

Create Product/Service, Situation mission, Vision and Strategy.

Discuss about Market Feasibility.

Create Market Analysis, Marketing Mix, Strategy and Sales Forecast.

Discuss about Technical Feasibility Study and Financial Analysis.

Create Production and Operations Analysis, Pre-Operating Cost, Investment Cost,

Operating Cost and management analysis.

Create Statement, cash flow and balance Sheet

Create Advertising

Review all part of project.

Prepare final report draft


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1.5 Time frame of study

Table 1.1 Time frames, since November 2010 - February 2011

Operation Method November December January February

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1. Brainstorming to find project and topic

2. Collect data and find information.

3.Discuss and conclusion about our

business

4.To specify business structure and create

prominent point for our business

5.Discuss about background of business

6. Create project objective, benefits and

create project time frame.

7. Discuss industry profile.

8. Create Product/Service, Situation,

Mission, Vision and Strategy.

9. Discuss about Marker Feasibility.

10. Create Market Analysis, Marketing

Mix, Strategy and Sales Forecast.

11. Discuss about Technical Feasibility,

Study and Financial Analysis.

12. Create Production and Operations

Analysis, Pre-Operating Cost, Investment

Cost, Operating Cost and managementanalysis.

13. Create Ad.

14. Review all part of project.

15 Prepare draft of final report.


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Chapter 2

Industry Profile


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known treasures of the pharaohs, emeralds, rubies and

sapphires were seldom used, while turquoise, jasper, lapis

lazuli, carnelian and rock crystal played a substantial role.

Since color was all important, diamonds were quite

unknown. The use of gemstones and precious metals during

this time were not limited, but spread lavishly about

wherever ornament was desired. Moreover, jewelry advanced from a simple ornamental or

amulet stance to a more practical one. It became used as a symbol of rank, wealth and social

standing. When taking on this role, they became an investment of marketable value. This

economic aspect of easily liquidating these possessions became an essential part of the

politics of Europe when Francis I instituted the crown jewels as legal entity. For his

successors these jewels were often used during the religious wars to guarantee foreign loans.

The three basic roles that jewelry has played, the ornament, the amulet and the symbol of

wealth, have remained constant to the present time.

Diamonds

Diamonds are perhaps the most sought after and most valued in all kinds of gemstone

jewelry. A diamond is also the hardest known substance and represent of gemstone of Venus.

Although diamonds are extremely expensive, these are

not exactly rare. This is solely due to the fact that there

are many numbers of diamonds being mined throughout

the year. Of course, large diamonds, which are of a very

high quality, are rare. In the ancient days, diamonds were

known to be as a way of protection for the wearer.


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Diamonds also remain to be the focal point in most engagement rings. The wearers of

diamond can be saved from ominous things and evil spirits such as witches, ghosts, black

magic and even the effect of poison also decreases. Diamond gemstone increases the stamina

and makes the marital life happy and permanent. Diamond gemstone also improves health,

checks untimely death also. Diamond gemstone is advantageous in diseases like epilepsy,

impotency, rheumatism, shortage of semen and other sexual diseases.(http://crystal-

cure.com/diamond.html)

Ruby

Ruby is a pink to blood-red colored gemstone its color

varies from deep cochineal to pale rose red, in some cases with

a tinge of purple; the most valued is a pigeon-blood red and

also known as the Lord of the Gems. Be it the beauty or the

uniqueness of this gemstone, it has found quite a few admirers

till date. This gemstone is known to symbolize love and

friendship. Some of the finest and most exotic of all rubies are found in Burma.

(http://crystal-cure.com/ruby.html)

Emerald

This green gemstone is popular because of the intense green shade, which lends a

unique kind of a beauty to all types of gemstone jewelry. The

emerald is the sacred stone of the goddess Venus. It was

thought to preserve love, Lucky for love, give your lover an

emerald to stay faithful. In several cultures the emerald was the

symbol for fertilizing rain. In the Christian faith it is the symbol

of faith and hope. It is considered by many to be the stone of


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prophecy.

For some the emerald acts as a tranquilizer for a troubled

mind. The emerald is said to bring the wearer reason and wisdom.

The strongest time for the powers of the emerald is said to be

spring. One may think the emerald to be a really hard gemstone but

if you own gemstone jewelry set with emeralds, and then does treat

it with care as it may chip easily. Emeralds have been worn since ancient days to cure health

related issues and also as a way to protect one from spells. (http://crystal-

cure.com/emerald.html)

Opals

Opals are available in a variety of options, such as the

common opals, the precious opal etc. The name opal has been

derived from the Latin word Opalus; this symbolizes a change in

color. This is because, opals always sparkle differently in various

angles and this dazzling beauty attracts many to own any

beautiful jewelry that makes use of opals. Although initially, opals were associated with

many stories that kept people away from these gemstones, they later became a symbol of

fidelity and even assurance.

Moreover, opal is said to be many things including the most powerful of healing

stones, the stone of hope, the stone of great achievement and even the "stone of the Gods". It

is said to be the stone of love, but only to faithful lovers. The opal will bring misfortune to an

unfaithful lover.

(http://crystal-cure.com/opal.html)


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Sapphire

A sapphire means blue in Greek. The blue goes from dark blue almost black to pale

blue. The finest blue sapphires are a strong blue. The star sapphire is very valued. The deep

blue shaded gemstone is also found in other shades but the finest of all sapphires are known

to be those with a shade of blue. Sapphire also remains to be

the choice of many in England as an engagement stone. It is

also believed that the Sapphires were deeply respected by

ancient priests. The sapphire was called the "Stone of

Destiny". Sapphires contribute to mental clarity and

perception. They can promote financial rewards. Moreover, sapphire is the symbol of heaven

and joyful devotion to God. Sapphire is associated with Aquarius, Virgo, Libra and

Capricorn. It is the birthstone of September and has been the birthstone of April. Sapphire is

the symbol of Saturn (dark blue) and Venus (light blue). (http://crystal-

cure.com/sapphire.html)

Aquamarine

Aquamarine is a blue-green stone that comes from Colombia and Brazil. It has been

called "Water of the Sea", because of its color. Aquamarine

is quite popular as it is known to compliment all types of

skins and complexions. Aquamarines can be seen in a

beautiful shade of blue or even green. The name, Aquamarine

is derived from the Latin word, which means seawater.

Aquamarine is most powerful as a meditation stone,

as it brings a great peace and serenity. Some people can meditate on an Aquamarine to

receive the wisdom to see truth, but this is a very advanced meditation. It will protect against

gossip. It is also said the aquamarine will pick up spirits. It is an excellent stone to use for


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meditating. The Romans used the aquamarine for diseases of the stomach, and believed it

could cure liver and throat troubles.

(http://crystal-cure.com/aquamarine.html)

Turquoise

Turquoise is an opaque, blue-to-green mineral

that is a hydrous phosphate of copper and aluminum. It

is rare and valuable in finer grades and has been prized

as a gem and ornamental stone for thousands of years

owing to its unique hue. Turquoise is one of the oldest

protection amulets, and was also known as a symbol of

wealth in many ancient cultures.

Turquoise is a stone that has been prized for many years. The

ancient Egyptians used turquoise in jewelry. The name means "Turkish stone" as it came to

Europe by way of Turkey. Turquoise was mined more than 6,000 years ago in Sinai. The best

turquoise comes from Iran, but not much is exported now. Much turquoise comes from

Mexico and the United States today.

This stone is a very personal and meaningful stone to one who wears it. Turquoise

takes on the characteristics of the owner. Turquoise carries

great wisdom of basic truth within it. It is one of the oldest

stones known. This is a stone that a person must learn to

attune to instead of the stone attuning to the person. It is

important that the owner of a Turquoise give it the proper


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attention. If given a turquoise by a loving friend, that stone would protect the wearer from

negative energy and bring good fortune. The turquoise is the symbol of friendship. It also

brings peace to the home. (http://crystal-cure.com/turquoise.html)

Topaz

Topaz occurs in a range of different colors: deep golden

yellow (Imperial Topaz), blue, light to medium brown

(Champagne Topaz), pink, and white, or clear topaz. It can be

found in Brazil, USA, Sri Lanka, Myanmar, former USSR,

Australia, Tasmania, Pakistan, Mexico, Japan and Africa. Topaz

is a soothing, empathetic stone that will direct energy to the

place it is most needed. It heals and energizes. Topaz is a promoter of truth and forgiveness.

Use it to find your own path. (http://crystal-cure.com/topaz.html)

Garnet

Garnets are a related group of minerals. Members of this group include: almandine

(red to violet red); spessartite (yellow, rose, or orange to reddish-brown); pyrope (deep red);

grossular (white, yellow, yellow-green, and brownish-red,

orange or black); andradite (colorless, yellow-green, or brown

to black). The most prized garnet is an emerald green variety

called demantoid and is a member of the andradite group.

Currently, the world's largest supply of garnets is the continent

of Africa. In December 1996, a student in Central Australia

discovered what is thought to be the largest single garnet ever found - measuring nearly one

hundred feet across! Other sources of garnet include India, Soviet Union, Brazil and the

United States. A garnet is known as the stone for a successful business. If your business is


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not as good as it should be, just put 3 or more garnets on your

desk. It is believed that if a garnet is put under a pillow it will

cure depression. Garnets can be used to make a person popular

and have self-esteem when worn as jewelry. It helps protect one

on trips. Garnets bring constancy to friendships. Garnets are also

known for stimulating success in business. (http://crystal-cure.com/garnet.html)

Amethyst

Crystalline quartz in shades of purple, lilac or

mauve is called amethyst, a stone traditionally worn to

guard against darkness and to instill a sober mind. The

word amethyst comes from the Greek meaning "without

drunkenness" and amethyst is believed to protect one from

poison. It is used as a dream stone and to help insomnia.

Put an amethyst under your pillow to bring about pleasant dreams, or rub it across your

forehead to offer relief from a headache.

The amethyst is known as the Bishop's Stone and is still worn by Catholic Bishops.

The amethyst symbolizes piety, humility, sincerity and spiritual wisdom. It is thought the

amethyst is the perfect stone to symbolize The Age of Aquarius. (http://crystal-

cure.com/amethyst.html)


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2.2 Situation of industry

Nowadays, there are many jewelry businesses in Thailand. Those do for export and

sale in the country. Jewelry has many price ranges depend on material, quality and design.

Jewelrys Thailand made from gems, color stones, pearl and zirconium so customer can

choose as needed. Customers buy jewelry for wearing or colleting. Design of jewelry is

important to attract customers want but depend on preference of each individual too. Design

of jewelry for male is different female. Jewelry shop must be having many design of jewelry

if other shops have more design that is attract customers to buying. In this business trusting is

important because most customers are concern about quality. They thing when they pay too

much, they want to get high value. Many companies try hardly to create their own strategies

to compete with each other such as competition in price, quality of service and the special

promotion in discount or premium to motivate the customers and after-sales service.

(Source:http://www.manager.co.th/SMEs/ViewNews.aspx?NewsID=9530000168902,

http://www.gotomanager.com/news/details.aspx?id=49902)

When business about jewelry import material from another country to made Jewelry,

the business isnt pay for VAT because Thailand has exemption of VAT for import jewelry to

driving toward to center of strong Thai gems and jewelry.

(Source: http://news.impaqmsn.com/articles.aspx?id=275187&ch=ec1)

Export value of Thailand is 304,361,845,140.00 baths and Import value is

294,710,817,092.00 baths in 2010 that is higher from 2009 so Jewelry business in Thailand is

grown continuously in future. (Source: http://gemandjewelrydb.git.or.th/gem/home.asp)


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Thailand Export Statistics

HS 71 : Gem & Jewelry

January-October , 2009 to 2010

No. Product2009 2010 Change

(%)Value (Baht) % Value (Baht) %

1 Pearls 266,175,299.00 0.09 394,309,510.00 0.13 48.14

2 Diamonds 22,376,999,413.00 7.43 28,934,451,830.00 9.51 29.30

3

Precious Stones

and Semi-Precious

Stones

12,101,929,012.00 4.02 13,075,337,850.00 4.30 8.04

4

Synthetic or

Reconstructed

Precious and Semi-

Precious Stones

1,727,025,343.00 0.57 2,108,381,177.00 0.69 22.08

5

Dust and Powder of

Natural or

Synthetic Precious

or Semi-Precious

Stones

16,638,033.00 0.01 8,406,159.00 0.00 -49.48

Total 36,488,767,100.00 12.12 44,520,886,526.00 14.63 22.01

6 Silver 1,359,277,070.00 0.45 287,908,917.00 0.09 -78.82

7

Base Metals cladwith Silver, not

further worked than

semi-manufactured

343,571.00 0.00 0.00 0.00 -100.00

8 Gold 185,144,520,369.00 61.50 169,220,676,271.00 55.60 -8.60

9

Base Metals or

Silver, clad with

Gold, not further

worked than semi-

manufactured

5,459,070.00 0.00 4,546,717.00 0.00 -16.71

10 Platinum 56,995,548.00 0.02 79,718,699.00 0.03 39.87

11

Base Metals, silver

or gold , clad with

Platinum

7,587,051.00 0.00 1,154,531.00 0.00 -84.78

12 Waste and Scrap 644,937,651.00 0.21 675,362,350.00 0.22 4.72

Total 187,219,120,330.00 62.18 170,269,367,485.00 55.94 -9.05

13 Articles of Jewelry 70,133,275,185.00 23.30 81,263,993,724.00 26.70 15.87

14

Article of

Goldsmiths' or 359,384,534.00 0.12 313,617,068.00 0.10 -12.73


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Silversmiths'

Wares and Parts

15

Other Articles of

Precious Metal orof Metal clad with

Precious Metal

586,827,109.00 0.19 187,564,542.00 0.06 -68.04

16

Articles of Natural

or Cultured Pearls,

Precious or Semi-

Precious Stones

177,131,923.00 0.06 201,923,813.00 0.07 14.00

17 Imitation Jewelry 6,025,911,013.00 2.00 7,585,843,333.00 2.49 25.89

18 Coin 36,903,884.00 0.01 18,648,649.00 0.01 -49.47

Total 77,319,433,648.00 25.68 89,571,591,129.00 29.43 15.85

Grand Total 301,027,321,078.00 100.00 304,361,845,140.00100.00 1.11

Table 2.1 Thailand Export Statistics

(Source: GIT with collaboration of Thai Customs Department)

Thailand Import Statistics

HS 71 : Gem & Jewelry January-October , 2009 to 2010

No. Product2009 2010 Change

(%)Value (Baht) % Value (Baht) %

1 Pear s 448,138,194.00 0.30 510,696,740.00 0.17 13.96

2 D amon s 23,482,227,532.00 15.52 22,325,126,036.00 7.58 -4.93

3Precious Stones and Semi-

Precious Stones 7,184,400,536.00 4.75 7,819,439,904.00 2.65 8.84

4

Synt et c or Reconstructe

Precious and Semi-Precious

Stones

1,489,279,230.00 0.98 1,820,194,073.00 0.62 22.22

5

Dust and Powder of Natural or

Synthetic Precious or Semi-

Precious Stones100,150,262.00 0.07 181,338,310.00 0.06 81.07

Total 32,704,195,754.00 21.62 32,656,795,063.00 11.08 -0.14

6 S ver 14,365,849,094.00 9.49 19,929,112,206.00 6.76 38.73

7

Base Metals clad with Silver,

not further worked than semi-

manufactured1,214,285.00 0.00 3,867,450.00 0.00 218.50

8 Go 86,200,233,066.00 56.97 223,185,995,299.00 75.73 158.92


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First prize for Vol.1 hot 2009 and 2010

A survey of the latest industry jewelry that silver jewelry is a product sold best during

the economic downturn and the price of gold higher, while this respect, the survey found that

sales of silver is increasing in the last 3 years. Expected in 2011, Silver jewelry would still

sell well because of silver jewelry is lower price of gold and diamonds jewelry. Products with

new format are particularly popular with teenagers. Silver jewelry containing pearl,

zirconium and beads are popular and Vendor jewelry more recently in small time. The

competition between the retail sales increases. (Source: http://www.depthai.go.th Dec, 1,

2010, http://www.ryt9.com/s/expd/1040150)

Chiang Mai is the economic center of the Upper North. Therefore, it has several

advantages of geographic location with an area of contact with neighboring countries. Ease of

moving goods transportation growth of several types of business hotel, restaurant, Jewelry


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and others these reflects the overall availability of commercial development in the future.

Chiang Mai has potential to earn the support of travel abroad to travel to throughout the years

in business, jewelry in Chiang Mai is the competition is quite high because it is a tourist

destination of tourists coming through and has the capacity to purchase high. Allowing

operators have increased rapidly as well.

(Source: http://gotoknow.org/blog/export/111495?class=yuimenuitemlabel)

2.3 Product and Service

There are 3 main product of our company, which are hand craft, fashion and order. In

each type of product we design in various styles such as necklace, bracelet, ring, and earring

2.3.1 Hand craft

Product deign neatly by using handmade under the concept of Lan-na or Thai design

to conserve concept of Lan-na and Thai style

Necklace


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Bracelet


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Earring


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Ring


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Bracelet


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Earring


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Ring


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2.3.3 Order

This type of product is customer can design product by them self. The company

concern on satisfy of customer need the pre-order product our designer will help the customer

design what they want.

2.4 Mission

Our company focuses on customer; we offer honest service, the best in jewelry

selection and takes great inspiration from the indigenous cultures found throughout the north

of Thailand attention to detail and respect for the highest standards in all activities of the

company.

2.5 Vision

Brings the place where dreams come alive throughout our jewelrys designs,

Combined the modern style and soul of indigenous cultures style for the best classic beauty.

You can touch the value we deliver.

2.6 Strategy

2.6.1 Corporate Strategy

Soul of beauty is a new jewelry shop in Kalare Night Bazaar Chaing Mai. Our

company wants to be a well know in jewelry business so we choose best strategy for ultimate

success. In Corporate Level Strategy, we decide to use Concentration Strategy because our

company is a new business we need to maintain existing customers, create new product to

increase sale and expand the market widely to increase a new customer. In the future, if Soul

of beauty have strong customer base, we try to use Backward Strategy that we own design

and produce by our company without Third Party Company.


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2.6.2 Business Strategy

Soul and Beauty is a new brand in the market so we need to create the differentiation

and build brand identity to make the customer remember our brand Soul of Beauty. We

need to improve capability in creativity and up to date design of fashion. From the survey we

found the most jewelry shop in Thailand is small size and number, because there are few

jewelry manufactures in Thailand. Almost jewelrys price in the market is not different, so it

makes us to select Focused Differentiation for our Business Strategy because we have only

one shop in Chiang Mai province, this is specific place and we serve the best quality product

to our customers.

2.6.3 Function Level

Marketing Mix Strategy

Product-Building brand and logo which salient and easy to remember

-Product is a high quality and high standard

-Customer can design jewelry individually

-Product guaranteeing

Prices-We use cost based pricing strategy because we set the prices from the cost.

- Skimming price strategy because our product is a high quality jewelry and emphasis on

luxury.

PlaceWe select Kalare Night Bazaar Chiang Mai location because this place is shopping

bazaar with a unique combination of cultural- performances open and it is a center of Thai

and foreigner Tourists with high purchasing power. Most customers will buy as souvenirs.


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Promotion-Advertising in Tour Guide Magazine

-Brochure

-Bill board

-Customers can clean jewelry free.

--In festival we have promotions such as free gifts warping.

-Couple ring discount

Human Resources StrategiesWe emphasize to salesperson performance because they can influence customer

decision, they need to develop themselves all the time, grooming, appearance, speech, service

mind and etc. for satisfy customer, make customer impressive and increase the sale volume.

There are many reasons that we select this strategy;

1. Training and repeating all staffs to be always ready to work.

2.Motivating salesperson by high commission.

3.Salesperson can speak several languages. Financial Strategy

We have financial strategies to analyze revenue, company expense, and operation by

consider form all financial resource.

1.Provide the financial management to improve circulation in business every month.2.Making shop account.3.Financial must be clear.4.Analyzing financial situation and planning to reduce financial risk


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Chapter 3 Market

Feasibility Study


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Chapter 3 Market Feasibility Study

3.1 General information of Chiang Mai

Figure 3.1 the symbol of Chiang Mai

LocationChiang Mai valley averages 310 metres (1,027 feet) above

sea level, and the province covers 20,107 square kilometres

(12,566,910 rai). The widest point of the province measures 136

kilometres (85 miles), and the longest 320 kilometres (200miles).

To the north, a 227 kilometre (141.88 miles) stretch of

mountains divides Chiang Mai's northern districts of Fang and Mae

Ai from the region around Kengtung in the Shan State of Myanmar (Burma). On the east,

Chiang Mai is bordered by Chiang Rai, Lampang and Lamphun provinces. The Mae Tuen

River, Ream Mountains and Luang Mountains separate Chiang Mai's south from the province

of Tak. Some stretches of Chiang Mai's south also border Lamphun province. To the west,

Chiang Mai is bordered by Mae Hong Son province.

Geography

Chiang Mai province is about 700 km from Bangkok and is situated on the Mae Ping

River basin and is 300 m above sea level. Surrounded by high mountain ranges, it covers an


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area of approximately 20,107 km. The district is covered by many mountains, chiefly

stretching in the south-north direction. The river Ping, one of the major tributaries of the

Chao Phraya River,originates in the Chiang Dao mountains. The highest mountain of

Thailand, the 2,565 meter high Doi Inthanon, is located in the province. Several national

parks are in the district: Doi Inthanon, Doi Suthep-Pui, Mae Ping, Sri Lanna, Huay Nam

Dang, Mae Phang, Chiang Dao.

The mountainous terrain is mainly jungle, parts of which are within national parks

which are still fertile and verdant with plentiful flora and fauna. There are many sites and

locations where tourists prefer to visit to study the lifestyle of the tribal people who live on

high hills.

Population

As of December 2004, Chiang Mai has a population of 1,603,220. (790,107 males and

813,113 females) The average population density is 80 inhabitants per square kilometer and

the total number of households is 551,696.

There are 1,251 villages of highland communities scattered across many districts in

Chiang Mai, making up 70,820 households or 312,447 inhabitants. The majority of them are

from 13 ethnic backgrounds including Karen, Musoe, Hmong, Leesaw, Akha, Yao, Lua,

Chinese, Burmese, Palong, Tai Yai and Tai Lue. The majority of people living in Chiang Mai

are Buddhist (around 91.8%). 1.17% of people are Muslim, 5.6% Christian, and 0.02%

Brahmin, Hindu or Sikh. 1.41% subscribe to other religions and beliefs.


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Education

Some cities seem to have been created to be seats of learning - ideal places both for

teachers and students. Chiang Mai is such a city.

Chiang Mai is home to six universities,

Buddhist and Christian seminaries, technical colleges,

six international schools and one German one, a large

university teaching hospital and several private ones,

some with nursing schools. There are also many private language schools as well as the

AUA, the British Council, Australian and New Zealand centers and the Alliance Franoise.

All this means that there are many opportunities for native English language

teachers, especially if they have a university degree and teaching qualifications. The many

Thai schools are hungry to employ English teachers.

The international schools cater for the children of expatriates living in Thailand and

are increasingly attracting Thai children and those from neighboring countries, whose parents

want them to be educated in English. Universities are offering more and more courses in

English and are anxious to establish exchange programs for overseas students and lecturers.

All this activity results in a stimulating environment - students exchanging ideas at the

food stalls around the university or picnicking beside the lake at the foot of the mountain;

English teachers relaxing after a hard day's work in the quiet bars and restaurants along the

banks of the River Ping.

In the age of cyberspace and satellite dishes, Chiang Mai, only one hour's flight from

Bangkok, is no longer an isolated outpost. It is, in fact, a regional centre of communications,

the gateway to Burma, Laos and southern China.

Chiang Mai is a safe, healthy and stimulating place for students and a low cost,


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convenient and idyllic heaven for teachers.

Six years of primary education are compulsory and free for all Thai children, although

there are certain small expenses for uniforms, books and writing materials. Some children fall

through the net either because their parents can not afford even these expenses, because they

live far from any school or because they do not have Thai citizenship.

There is government and private charity scholarships that help poorer children

complete their secondary education. Many of the schools in Chiang Mai are excellent - four

of the best were founded by Christian missionaries, although there is no religious pressure on

the children. Universities, technical colleges and vocational schools offer a wide range of

subjects for those who wish or are able to go on to further education. Fees are not high but are

still out of the reach of many, but again there are government and private charity

scholarships.

Basic Infrastructures

TransportationBy Car

Take Highway No. 1 (Phahonyothin Road) and turn to Highway No. 32 (Asia Highway)

passing Ayutthaya, Angthong, Nakhon Sawan, then by Highway No. 11, from Tak,

Lampang, Lamphun to Chiang Mai: a distance of 696 kilometres or 9 - 10 hours.

By Rail

Express and rapid trains leave for Chiang Mai from

Hualamphong Station several times daily and the trip takes

about 12 - 15 hours depending on the class. It is

recommended to reserve seats in advance, especially for


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sleepers.

For further information please contact Tel. 0 2220 4334 or call 1690 or visit

www.railway.co.th Chiang Mai Railway Station Tel. 0 5324 2094

By Air

Chiang Mai International Airport is the center for air

travel in the north and is the second largest airport in Thailand

after Bangkok International Airport. It is the main airport in the

Northern Region and the hub for inter provincial flights from

other regions, as well as international flights from other countries in Asia and Europe.

InfrastructureElectricity

Electricity service in Chiang Mai province is provided in 22 districts, 2 sub-districts

and 1,892 villages, comprising 92.61% of all villages. Villages without electricity are located

in jungles, forest conservation areas and national parks. In 2004 there were 496,448

electricity consumers, a 10.98% increase on the preceding year. Total electricity consumption

in the province was 1, 630. 46 million units, a 7.11% increase on the year before. The major

consumer of electricity is offices and factories, using 878.99 million kilowatts per hour,

followed by residential users, government offices and public utilities using 621.24, 100.60

and 29.63 million kilowatts per hour respectively.


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Water

There are 7 waterworks in the province capable of producing 49,546,800 cubic meters

of water per year. In 2004, total water production was around 32,644,289 cubic meters. There

were 76,939 consumers of mains water, an increase of 5,710 consumers over the preceding

year.

Telecommunications

In 2004 there were 251,501 fixed telephone lines in the province; an increase of 9,780

lines over the previous year is total of 211,405 lines. The ratio of telephone lines to

inhabitants is 1:6.

(Source: www.chingmaiinfo.com; www.cmcity.go.th )

3.2. General Environment Analysis

It consists of the actors and forces outside marketing that affect marketing

managements ability to build and opportunities and threats to our business.

3.2.1 Political Analysis

Political situation is directly affect to the jewelry market in Thailand because the

demand of product depend on tourist and power purchasing and two factor will decrease if

political not stability.

Political situation of Thailand in presently is the lack of stability. That factor affects to

demand of product and the purchasing power because the customers have more concerning

about spending and choosing products or services. In domestic market is people worry about

stability that make they reduce unnecessary spending such as unnecessary product, traveling


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that make our value sale and profit decrease. In traveler market is directly affect about

political problem because if political not stability they may change their minds and travel to

other countries they see as more peaceful and safety. So revenue from this target market will

be losing.

Thailand: Tourist Arrivals from 1998 till 2010. Quarterly Data 2007-2010

International arrivals to Thailand from 1998 to 2009 show a significant rise from

1998 onwards. There are significant dips with the SARS epidemic, and after the Tsunami of

end 2004.

From end 2008 political events in Thailand have influenced tourist arrivals. While

total number of arrivals in 2009 was only mildly down on the year before, the tourist industry

surely had expected more revenue. Probably a potential additional number of 1 to 2 million

visitors elected not to come to Thailand.

Both the Office of Tourism Development and the National Economic and Social

Development Board (NSDB) provide arrival statistics, though not always timely or easy to

find. We almost accidentally found the best updated files eventually on the Office of Tourism

Development website (follow the little banner on the left saying: Tourism Statistics, on this

otherwise Thai language website).

Since somewhere in the middle of 2008 a severe worldwide recession dampened the

desire to travel. Thailand furthermore suffered from political instability, starting with the

closure of Suvarnabhumi Airport (26 november 2008, by the Yellow Shirts protesters). A

Red Shirt mob invaded the East Asia Summit in Pattaya on 11 April 2009, leading to a

cancellation of the summit, with world leaders scurried away to safety. This was followed by

violent riots the next day (during Songkhran) and the declaration of a state of emergency by


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Prime Minister Abhisit Vejjajiva. The protesters withdrew and the state of emergency was

lifted on 24 April.

On top of all that, flu cases emerged in March and April of 2009 in Mexico, with the

official first announcement of the new H1N1 flu on 23 April. On 12 May, it was made public

by Health Minister Witthaya Kaewparadai that two Thais who returned from Mexico had

been infected with swine and subsequently recovered. Fortunately while infections became

epidemic, the resulting health risk of H1N1 infection proved to be less serious than expected

by some.

The graph below shows the evolution of international visitors to Thailand between

1998 and 2009. We made the graph but the data come from the Tourism Authority of

Thailand.

Despite the serious disturbances in April 2009, tourism arrivals for the whole year

were only mildly affected, with a significant upturn (+28%) in the last quarter of 2009, when

compared to the last quarter of 2010. The first quarter of 2010 was very promising, but

serious demonstrations by the Red Shirts happened in April and May 2010, with serious

repercussions for arrivals in the second quarter of 2010.


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Interestingly, the tourism sector does not only depend on foreign visitors. The number

of domestic tourists actually dwarfs the number of foreign tourists. But domestic tourists

(mostly Thais) do spend much less per day and their trips are shorter, on average two days

and a half. In 2007 there were reportedly more than 83 million in-country travel trips. This

created 380 billion baht in revenue.

Average daily expenditure was around 1770 baht per person in 2007 (as compared to 4120

baht per person for international tourism).

In 2008, 52.37 % of international tourists were East Asian, with Malaysia and Japan

providing the most visitors. Close to two million Malaysians visited Thailand. We assume

they take short trips over the Thai-Malaysian border, and we think the number of Malaysian

visitors, unduly inflates the total number of international visitors.

Europeans provided close to 4 million visitors in 2008, about 27.22 % of the total. The

number of visitors from the Americas, South Asia and Africa, is much smaller. However,

close to 700,000 Australians visited Thailand, which is actually an enormous number, when

taking the total population of Australia into account. The downturn in the second quarter of

2009 was expected by the prime minister (as reported in April 2009) to cost the country

something like 4 billion U.S. Dollar.

Arrivals from 2007 to 2010 per quarter

The number of tourist arrivals in the first quarter and second quarter of 2009 were 3.64

million and 2.96 million respectively. These figures were lower than during the first 2

quarters of 2007 or 2008. In the third quarter of 2009 we see that the number of visitors is

similar to the number of visitors in both 2007 and 2008, suggesting that the worst was over.

In the 4th quarter of 2009, we saw more arrivals than in 2007 and 2008. See the yellow line

crossing over in the graph below.


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The first quarter of 2010 saw a significant increase of tourist arrivals, especially in January

and February.

Related to the political disturbances during April and May 2010, the second quarter

arrivals of 2010 were low (but not much lower than in the second quarter of 2009, which also

was characterized by riots and demonstrations. However, tourism rebounded strongly during

the third quarter of 2010, with arrivals higher than in any of the preceding years.

The surge in arrivals in the last quarter of 2009 and the first quarter of 2010 shows the

potential of the Thai tourism industry for sustained growth. However arrivals in both the

second quarter of 2009 and the second quarter of 2010 show the influence of political riots

and uncertainty. We figure that Thailand missed out on in between 1 and 2 million potential

extra visitors in both 2009 and 2010.

It is interesting to know that negative factors (the same happened with the various flu

scares) seem to loose influence in just 2 to 3 months each time, with visitors resuming their

interest in Thailand as a tourist destination.


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normal rate of 4.5 percent. This is great opportunity about increasing revenues and our

business growth.

Economic GrowthThai economy in 2011 is forecasted to grow at the normal rate of 4.5 percent per year

(or within the range of 4.05.0 percent per year). The main driver contributed to this growth

is domestic spending, both consumption and investment, which are projected to continue to

grow from 2010. Private consumption is forecasted to grow at 4.2 percent per year (or within

the range of 3.74.7 percent per year) as consumer confidence would pick up following an

ease in political tension. Private investment on the other hand is projected to grow at 5.9

percent per year (or within the range of 4.96.9 percent per year), with improving investor

confidence combined with higher capital utilization especially in export-oriented industry that

has stood high since 2010. Furthermore, the momentum from the persistent global economic

growth would also help supporting the growth of export of goods and services at the

projected rate of 5.4 percent per year (or within the range of 4.95.9 percent per year). This

high rate is however lower than in 2010 due to high base. Import volume of goods and

services is expected to grow at 8.3 percent per year (or within the range of 7.39.3 percent

per year). On the public spending side, public consumption is forecasted to grow at 6.4

percent per year (or within the range of 7.39.3), follows the constant budget disbursement in

2011. Public capital expenditure growth, on the other hand, is projected to slow down to 1.7

percentper year (or within the range of 0.72.7 percent per year) as the role of government in

supporting the economy begins to subside in the time when private sector is fully functioning

in driving the economy forward.


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Figure: 3.4 Forecasted Economic Growth in year 2011

Economic StabilityEconomic Stability On the internal stability, headline inflation in 2011 is

projected to stand at 3.5 percent per year (or within the range of 3.04.0 percent per

year), given oil price is still expected to remain steadily high. Unemployment is

forecasted to stand at the normal rate of 1.2 percent of total labor force (or within the

range of 1.11.3 percent of total labor force). On the external front, in 2011 Thailand

is projected to record a smaller current account surplus of 11.9 billion US Dollars,

equivalent to 3.4 percent of GDP (or within the range of 2.93.9 percent of GDP), as

trade surplus is expected to drop to 9.4 billion US Dollars (or within the range of 8.4

10.4 billion US Dollars). This is due to import growth which is expected to outweigh

export growth. More specifically, import value of goods is expected to grow at 13.2

percent per year (or within the range of 11.714.7 percent per year), while export


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value of goods is forecasted to grow at 12.0 percent per year (or within the range of

11.013.0 percent per year).

Figure: 3.5 Inflation Rate in year 2011

(Source:http://www.fpo.go.th/FPO/index2.php?mod=Content&file=contentview&contentID=CNT00

06204&categoryID=CAT0000028)

Social and Environment Analysis

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

reflected by culture, education, religious, and other social environments of other social. The

social condition is continuously changed because of person in the social need to control and

adapt you with the environment. When the social condition is changed, the need of person is

also changed such as dressing, hobby, even requirement of goods and service.


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Women and jewelry belong together for a long time ago, but not for only beauty or

attract the eyes only. But people believe it has hidden power of each type of gem stone or

jewelry .Especially in ancient time people believe gemstone cloud empower they lives and

rise they fortunes, as well as prevent them from any dangers and sickness. And represent love

for couple and has been used to denote status. All of things cloud add-value for our product

and attach customer so, it is opportunity for our business.

Figure 3.6: Nine star glittering gemstones


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Figure 3.7: The myth of gemstone

Figure 3.8: Birthstone


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3.3Competition Analysis

CompetitorFor the jewelry business, it has some competition. The competitors in the market try

to create their own identities for their brands and trust for customer. By emphasize the quality

of products and services and design of product. And tries hardly to create and design of

product. They are all having many interesting and attractive design and concern identity of

product to promote their brands. Most of our competitors have good locations and many of

them are the stores which were opened for a long time. So, they are well known for market

and customers want because of their have more experiences.

Five Force Model for Jewellery Industry

POTENTIALNEW ENTRY

INDUSTRY COMPETITORS

RIVARY AMONG EXISTINGFIRMS

BUYERSSUPPLIER

SUBSTITUTES

Figure 3.9: five force model

- Rivalry among existing competitors: Strong Slow market growth Sales highly fragmented among locally owned jewelry stores, retail jewelry store

chains.


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Jewelry product has demand always since the part to present. Jewelry product not only accessory but collectible.

- Bargaining Power of Suppliers High In jewelry industry the suppliers in domestic not much and more of supply produce

for export.

The suppliers in other country have more barriers to check grade of gemstone. Few Alternatives of cutting & polishing. In jewelry industry skilled labor is lack because they much have more experience in

this job.

Bargaining power of supply is enhanced because Thais gemstone is famous and havemore demand form domestic market and international market

- Bargaining Power of Buyers Medium

Divided in two types 1. Domestic buyers & 2. Foreign buyers Consumers can choose from many jewelry retailers if they are not satisfied Bargaining power of buyers is more because jewelry is high price product, so they

spend a lot of time and want satisfy service for make decision.

- Threat of Substitutes: Low Jewelry is value-product and less some product can be substitutes. Status and standard of living increase so demand is increasing at high rate.

- Barriers to entry Medium

High capital investment


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Skilled manpower is essential Existing jewelry retailers well know into international areas of business.

3.4Customer AnalysisMinistry of Tourism and Sports,Thailand

Accommodation Establishments at Tourist Attraction (Hotels,Guesthouses,Resorts) in Thailand 2010

(January - March)

Accommodation

Establishments

Guest Arrivals at Accommodation

at Tourist Attraction in

Thailand

Thai Foreigners Total

2010 2009

(%)

2010 2009

(%)

2010 2009

(%)

Total 1,558,2

24

1,586,6

67

-

1.79

545,9

03

425,6

15

+

28.26

2,104,1

27

2,012,2

82

+

4.56

Kampaengphet30,118 50,544

-40.41

867 2,040 -57.50

30,985 52,584 -41.08

Chiangrai184,433 163,283

+12.95

56,098

44,029

+27.41

240,531

207,312

+16.02

Chiangmai290,026 411,212

-29.47

368,094

271,693

+35.48

658,120

682,905

-3.63

Tak131,880 190,227

-30.67

5,043 5,654 -10.81

136,923

195,881

-30.10

Ministry of Tourism and Sports,Thailand


(April-June)Accommodation

Establishments



Thailand


2010 2009

(%)

2010 2009

(%)

2010 2009

(%)

Total 1,299,6

55

1,366,1

90

-

4.87

254,2

43

311,3

76

-

18.35

1,553,8

98

1,677,5

66

-

7.37

Kampaengphet 29,909 23,109 +29.42

1,035 1,468 -29.48

30,944 24,577 +25.91

Chiangrai 134,755

142,289

-5.29

19,893

27,218

-26.91

154,648

169,507

-8.77

Chiangmai 283,200

298,544

-5.14

193,029

197,374

-2.20

476,229

495,918

-3.97

Tak 77,154 123,657

-37.61

1,937 5,677 -65.89

79,091 129,334

-38.85


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(July-September)

AccommodationEstablishments



Thailand


2010 2009

(%)

2010 2009

(%

)

2010 2009

(%

)

Total 1,685,5

99

1,247,6

57

+

35.10

349,0

24

355,1

56

-

1.73

2,034,6

23

1,602,8

13

+

26.9

4

Kamphaengphet 30,220 19,037 +58.74

710 401 +77.0

6

30,930 19,438 +59.1

2

Chiangrai 167,683

170,823

-1.84

33,459

35,410

-5.51

201,142

206,233

-2.47

Chiangmai 620,885

223,279

+178.0

8

244,717

226,499

+8.04

865,602

449,778

+92.4

5

Tak 84,441 95,310 -11.40

2,719 4,692 -42.0

5

87,160 100,002

-12.8

4


Accommodation Establishments at Tourist Attraction (Hotels,Guesthouses,Resorts) in Thailand 2010(October-December)

Accommodation

Establishments


at Tourist

Attraction in

Thailand


2010 2009

(%

)

2010 2009

(%)

2010 2009

(%

)

Total 1,736,062 1,685,905 +

2.98

479,9

85

462,9

67

+

3.68

2,216,0

47

2,148,8

72

+

3.13

Kampaengphet 30,620 27,818 +

10.07

1,702 1,230 +

38.37

32,322 29,048 +

11.27

Chiangrai 278,005 175,776 +58.1

6

50,048

40,943

+22.24

328,053

216,719

+51.3

7

Chiangmai 440,888 475,344 -7.25

324,899

291,010

+11.65

765,787

766,354

-0.07

Tak 140,814 127,306 +10.6

1

6,949 3,132 +121.8

7

147,763

130,438

+13.2

8

Table 3.1 Ministry of Tourism and Sports, Thailand

Source:http://tourism.go.th/2010/th/statistic/tourism.php


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The consumers separate to typically two types:

- Domestic customerSomeone will be shopping; they are not in need of anything, will see the item and

have to have it, were looking for an "accessory" that would match an outfit and happens

to come across the piece of jewelry and buy it. They will made decision under condition

thatthey satisfy and feel they receive the benefit from product and service. We are

divided into two groups. There are Local citizen and Thai tourism. Chiang Mai tourist is

299,591 and Thai tourist is 252,120.

- Foreign customerCustomer, who wants to buy gifts or souvenir and sometime them only sightseeing

buys interest about product, a purchase occurs when the buyer is looking for a gift for

someone, sees the art and design of product piece, and then purchases it. In this case the

plan is to make a purchase, it is just not known what or where that purchase will be made.

Consumers can choose from many jewelry retailers if they are not satisfied with certain of

product or service. So, price differs and service is important e.g. information of product,

certification, lower prices for high quality jewelry, customer service, guarantee etc.

because refund, return or change the product could not be easy. So the trust and

creditworthiness is more concerning. Foreign Tourist is 1,316,355.

3.5Competitive Analysis

The jewelry industry, or even broader the art industry, is quite large and diverse.

There are countless different artisans making so many different pieces of work. There are

artists from every state that manufacture products. Some sell to large department stores, some

to galleries, some sell them only via a website, others will travel with the products and sell


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what they are carrying. Many entrepreneurs interested to open jewelry shop that gives full

service in Chiang Mai. After that the jewelry business becomes the business which is popular.

Then the affects of jewelry business is high competition about price of products and various

kind of dosing and creativity. Therefore the entrepreneurs of each store should be tries hardly

to create their own identities for their brands and doing the best for attracting customers

attentions to becomes successful business in finally.

3.6STP Analysis3.6.1 Market Segmentation

The market segmentation of Soul of Beauty divide customers segment into 3 groups

The first group is primary customer segment which can generating the most revenues for Soul

of Beauty include Thai tourist, and foreign tourist which can generate secondary revenues

and The last group is Chiang Mai local citizen. Chiang Mai local citizen divided into 5

groups of segment by age which age between 25-34 years old, 35-44 years old, 45-54 years

old, 55-64 years old and more than 65 years old. Because we can satisfy customer needs and

want and offer our product in different design, price, size and etc follow the customer

segment behavior. Then, it can penetrate markets in each target market. Statistics from

Tourism in Chiang Mai during the years 2007-2010, Soul of Beauty can be divided into

market segmentation by a pie chart to understand easily.


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3.6.3 Position Analysis

"Soul of Beauty" is a creative work art of jewelry and still maintain the quality and

value unique branded Soul of Beauty jewelry has created a new jewelry design up to date

fashionable and still keep quality, identity and valuable under the brand Soul of Beauty Our

image of product occurred in the mind of target group of customers is personal feeling.

Target groups is customer have perception and perceive of our identity, from Soul of Beauty

in a Thai contemporary because of this identity, we can continue to provide products that

relate to it. And include the skills of our employees or expertise that can provide advice or

consultation with clients for buying jewelry orders from their own design. We are also

concerned meet the needs of customers first. So our business is recognized and customers can

remember. The last, customers can tell to another by using word of mouth. It can gain more

customers.

3.7 Marketing Mix Strategy Analysis

3.7.1 Product strategy

BrandingBranding strategy, we set the brand in English language and symbol is SB. It

represents Soul of Beauty Brand. This word means the core of beauty that radiate from

diamond. The customer can remember easily and impressive when see our logo Soul of

Beauty.

Figure 3.11 Logo of Soul of Beauty


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ProductSoul of beauty has several products and categorize in 3 big groups that offer to

customer selection that different life style and preferred.

1. Modern style, we selected jewelry is a high quality materials form high skill

technician. A design of products is trend to modern style which up to date fashionable. This

category always change design depend on fashion trendy.

2. Hand craft style, this product category is high identity because we integrate the

Lanna style and jewelry together in design the product. Moreover Handicraft jewelry is

designed by Lanna artist in Vua-Lai Street that is salient Lanna art.

3. Made to order, the customer can design and create jewelry by themselves.

PackagingAlthough jewelry box is not show to customers on shop window, but we are

emphasizing on packaging because we think jewelry is valuable must be suitable with elegant

packaging. We choose luxury and modern package.

We have 4 types

4.Glass box5.Leather box6.Velvet box7.Wood box

ServicesWe are attention to every detail of services for both during sale and after sale services.

We select high skill salesperson and they can speak several languages to service foreign

tourists. We have clean jewelry service to customers, whether they buy from anywhere. We

are pleased to advice and fain for customers in any time. Our shop have credit card service,

this service is high security to offer confidence to our customers.


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3.7.2 Price strategy

We designed the price to be competitive to other jewelry shop. We use cost based

pricing strategy. The pricing is based on the cost of product, depend on the refinement of

hand craft, to each product has different components, the weight of product and type of

jewelry. Our product we set the price starts in the hundreds bath. In currency trading we use

the Thai Bath because easy to exchange for Thai customers. Because of our products is a

fashion jewelry and emphasis on luxury, we set the Skimming price strategy to show value of

the product. We set the price to promote our products, we use Special-event pricing for high

season and festivals such as New Year festival, Valentine festival and Birth day.

Detail of the products

Model silver

/gram

size main gems weight/

karat

color decorate price

Bath

Ring

R1341 99.99%/14.1 58 star gem 12.44 black swiss gems 10400

R1223 99.99%/9.30 52 ruby 2.39 pink square shape 4900

R1221 99.99%/9.30 52 ruby 2.39 white square shape 2900

R1453 92.50%/5.30 7-8 garnet 1.20 red white zesad 4500

R1567 99.99%/4.70 52 emerald 3.40 green swiss gems 6100

R1345 99.99%/6.60 53 ruby

amethyst

4.31 red

green

swiss gems 6500

R1315 99.99%/9.50 52 casedony 2.36 purple swiss gems 3900

R1464 99.99%/5.40 52 ruby 2.30 red sappier 4900

R1245 99.99%/6.70 53 quartz 3.2 green swiss gems 7500

R1334 99.99%/5.40 52 Shitrin 2.83 orange - 4900

R2315 99.99%/4.30 52 codolite 2.97 purple - 4500


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Model silver

/gram


karat


Bath

R2316 99.99%/4.30 52 prenite 7.03 green - 3500

R2331 92.25%/ 53 nine-gems 1.20 nine

colors

- 6900

R2332 99.99%/4.95 53 london

topaz

10.69 blue swiss gems 4900

R2533 95.00%/7.69 53 zircon 0.9 white square shape 4500

R2534 95.00%/3.65 53 zircon 5.6 white - 4700

R1783 95.00%/5.66 53 black star 3.2 black swiss gems 4500

R1704 92.25%/4.25 53 emerald 7.6 green swiss gems 11250

R1572 92.25%/4.50 53 spechatie 2.5 orange swiss gems 5200

R1890 92.25%/4.25 52 topaz 3.6 blue CZndimond 2500

R1439 90.00%/9.8 53 CZ 4 white - 3000

R1237 90.00%/6.5 53 garnet 3.2 red swiss gems 5460

R1907 99.99%/4.90 52 amities 3.5 purple swiss gems 9400

R1569 99.99%/5.0 52 amities 3 blue swiss gems 4900

R1267 99.99%/5.60 52 quartz 5.6 green swiss gems 10800

R1097 99.99%/5.60 52 casedony 4 gray - 3800

R1094 99.99%/4.70 51 ruby 1.5 pink myanmar 3400

R1790 99.99%/5.60 53 topaz 0.87 white swiss gems 5900

R1556 99.99%/5.00 53 topaz 1.2 white swiss gems 6500




R1390 92.50%/4.50 52 ruby 2 pink myanmar 3400

Earring

E2343 95.00%/11 - fancy 14 fancy 7600


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Model silver

/gram


karat


Bath

E2112 95.00%/12 - sapphire 5.18 orange circle 5600

E2123 95.00%/11 - sapphire 4 orange circle 4500

Bracelet

B4543 95.00%/27 - fancy 19 fancy circle 11200

B4332 95.00%/34 - sapphire 21.30 orange circle 14000

B4556 95.00%/29 - shitrin 7.8 yellow circle 13000

B4565 95.00%/27 - fancy 18 yellow circle 9400

B4563 92.50%/40.1 - ruby 10.85 pink circle 19000

B4336 92.50%/40.1 - jade 23.35 green circle 14000

B4786 92.50%/40.0 - amities 10.85 purple synthesis 3600

B4778 92.50%/48.4 - jade 2.95 yellow circle 1300

B4906 92.50%/30.0 - fancy 13.5 fancy circle 12200


B4314 99.99%/34.4 - rubellite 10.85 purple circle 19000

B4326 99.99%/28.7 - topaz 10.0 blue synthesis 3500

B4366 99.99%/40.2 - jade 15.40 green circle 13900




Brooch

BH656 99.99%/3.80 - fancy 9.30 fancy flower 4600

BH675 90.00%/7.50 - garnet 6.00 red white goal 11490

BH687 99.99%/4.20 - casedony 3 purple swiss gems 4200

BH690 99.99%/8.00 - amities 25.53 purple swiss gems 10200

BH642 90.00%/5.90 - silver - - Wua-Lai art 3600


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Model silver

/gram


karat


Bath

BH691 99.99%/5.00 - prenite 13.42 green - 2900

BH665 99.99%/3.50 - garnet 5.0 purple - 4500

BH683 90.00%/6.00 - shitrin 15.95 yellow - 9456

BH644 99.99%/4.50 - ruby 4.7 pink - 7400

BH621 99.99%/4.50 - jade 3.5 green swiss gems 6300

BH689 99.99%/4.60 - ruby 3.5 pink gold sand 5800

BH694 99.99%/4.50 - garnet 9.1 black swiss gems 6200

BH677 99.99%/4.50 - sapphire 5.0 black swiss gems 2300

BH678 99.99%/5.20 - fancy 4.3 fancy swiss gems 5300

BH679 99.99%/4.30 - casedony 4.00 white swiss gems 4600

BH645 99.99%/4.70 - garnet 3.7 purple swiss gems 5000

BH670 99.99%/7.60 - jade 31.9 green swiss gems 11100

BH611 99.99%/6.90 - ruby 6.0 pink swiss gems 6500

BH613 99.99%/5.70 - fancy 7.30 pink swiss gems 4800


BH641 99.99%/4.70 - casedony 3.9 white swiss gems 4400

BH615 99.99%/5.90 - garnet 2 white - 1900

BH661 95.00%/5.40 - ruby 1.5 pink - 2900

BH622 99.99%/5.90 - fancy 7.30 fancy - 4800

BH634 99.99%/5.70 - fancy 12 fancy - 7600

BH684 99.99%/6.30 - fancy 7.00 fancy - 7600

BH673 99.99%/7.20 - casedony 4.3 white 4200

BH663 99.99%/3.50 - ruby 2.1 pink myanmar 2600




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3.8 Sales Forecast/Profit Estimation

Figure 3.12 Total of Tourism in Chiang Mai statistic

(Source: http://tourism.go.th/2010/th/statistic/tourism.php)

According to the total number of tourism in chiang mai statistic between in 2006 to

2010 we assume the number of tourism in chiang mai in 2010 .There are 4,194,752 tourism

to forecast sales of our shop as following

Number of tourism in 2010 = 4,194,752 tourism

Number of tourism/month = 4,194,752/12 ~ 349,563 tourism

There are 15 main competitors = 349,563/15 ~ 23,304 tourism

Soul of Beauty divided the customer segment into three types which are Chiang mai

citizen,Thai tourism and foreign tourism.

The primary customer segment which can generate the most revenues for Soul of

Beauty is Thai tourism.

Total of Thai tourism = 58.76%* 4,194,752 = 2,464,836 tourism

0

1000000

2000000

3000000

4000000

5000000

6000000

Y2006 Y2007 Y2008 Y2009 Y2010

TotalNumberofTourisminChianmaibetween2006to2010

NumberofTourisminChianmai/years


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-Female = 51.9%*2,464,836 = 1,279,249 peoples

-Male = 48.1%*2,464,836 = 1,185,586 peoples

-Number of Thai tourism that buy Jewelry is 10% of Thai tourism, Female is 9 % of Thai

Female tourism and Male is 1% of Thai Male tourism.

-Number of Thai Female tourism who buy jewelry = 1,279,249 *9% = 115,132 peoples

-Number of Thai male tourism who buy jewelry = 1,185,586 *1% = 11,855 peoples

So Tourism who buys jewelry is 115,132+11,855/12 = 10,582 / months

The secondary customer segment which cans generate the most revenues for Soul of

Beauty is foreign tourism.

Total of Foreign tourism = 41.42%* 4,194,752 = 1,729,915 tourism

-Female = 35.2%*1,729,915 = 562,222 peoples

-Male = 64.8%*1,729,915 = 1,167,693 peoples

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

-Number of Foreign tourism that buy Jewelry is 10% of foreign tourism, Female is 9 % of

foreign Female tourism and Male is 1% of foreign Male tourism.

-Number of foreign Female tourism who buy jewelry = 562,222 *9% = 50,600peoples

-Number of foreign male tourism who buy jewelry =1,167,693 *1% = 11,676 peoples


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So Tourism who buys jewelry is 50,600+11,676/12 = 5,170 / months

There are 15 main competitor in Chiang mai = 10,582+5,170/15 = 1,050 / months

Jewelry shop in Chiang mai was sold 1,050 for each shop

Soul of Beauty can get about 30% of segment for first year

We assume that percentage of customer increase 10 % of total sale for 1-4 year and

15% in year 5

Year Total SalesY 1 1,631,425

Y 2 1,879,825 (increase 15% from sale of Y1)

Y 3 2,817,250(increase 20% from sale of Y2)

Y 4 3,383,500 (increase 20% from sale of Y3)

Y 5 3,891,325(increase 15% from sale of Y

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