j'ao meatballs factory

8/7/2019 J'Ao Meatballs Factory

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Exclusive Summary

The Meat Balls are food that lives with Thai people for many years ago because easy

to eat. The products businesses in Chiang Rai are mix flour but JAo Meat Balls are different,

that is 100 percent of pock. Its main functions are still to make customer satisfy the products

and easy to transport, to protect it until on the hand of customers, which reduces the costs of

employ logistic team. In company today is the result of a long development process. It is the

product of continuous research aimed at finding better methods of meat ball is the food that

commonly cooked in Southern China and they are cooked meat balls as their meal. By the

reason that good flavor and easy to eat, Meat Balls are distribute to around Thailand. Our

company is started for consumers in Chiang Rai. The Chiang Rai citizens in that hungry time

eat meat balls are amazing to them and use meat balls as an ingredient in many menus that

make our product has many competitors. We emphasized on customers in Chiang Rai who

running the industry, wholesaler& retailer because there are quite more amount of customers

in these businesses. We want to serve the quality and flavor of products which meet the

customers need because our products on promoting, adding value, and providing product

that better other company. Moreover, the new technology evolution can upgrade the quality

and quality of meat balls for people that like to eat JAo Meat Balls.


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Table of Content

Title Page

Exclusive Summary................................................................................................................. I

Table of Content.................................................................................................................. VI

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

1.1 Background of the Project...................................................................................... 1

1.2 Segmentation........................................................................................................... 2

1.3 Target...................................................................................................................... 2

1.4 Project Objectives................................................................................................... 3

1.5 Benefits of Project....3

1.6 Activities/Time Frame..4

Chapter 2: Industry Profile.....................................................................................................5

2.1 Nature of industry.................................................................................................... 5

2.2 Situation of industry.................................................................................................6

2.3 Product................................................................................................................. 10

2.4 Vision and Mission.................................................................................................10

2.5 Business Strategy...................................................................................................11

2.5.1 Corporate Level...11

2.5.2 Business Level.........................................................................................12

2.5.3 Functional Level Strategies ....................................................................12


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Table of Content

Title Page

Chapter 3: Market Feasibility Study................................................................................... 13

3.1 Market Analysis.....................................................................................................13

3.1.1 General Environment Analysis.............................................................. 13

3.1.2 PEST Analysis........................................................................................ 21

3.2 STP Analysis..40

3.3 Marketing Mix Strategy.....42

3.4 Sales Forecast/Profit Estimation45

3.5 Marketing Expenses...52

3.6 Conclusion..57

Chapter 4: Technical Feasibility Study .............................................................................. 58

4.1. Production and Operations Analysis ....................................................................58

4.1.1 Product Characteristics ...........................................................................58

4.2 Location ................................................................................................................ 61

4.3 Raw materials management processes.................................................................. 62

4.4 Production process................................................................................................ 62

4.5 Facility layout ....................................................................................................... 66

4.6 Machine Tools, Equipment and Office supplies .................................................. 69

4.7 The store design layout..78

4.8 Logistic and suppler management..80

4.8.1 Inflow logistic..80


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Table of Content

Title Page

4.8.2 Outflow logistic81

4.9 Suppliers...82

4.10 Investment Cost....84

4.11 Fixed Assets.86

4.12 Total cost Investment cost....88

4.13 Depreciation.88

4.14 Cost of Investment...95

4.15 Administration Analysis.....112

4.16 Technical Feasibility Conclusion...124

Chapter 5: Financial Analysis ........................................................................................... 125

Chapter 6: Risk Management ........................................................................................... 145

6.1 External Risk management.................................................................................. 146

6.2 Internal Risk Management.................................................................................. 152

6.3 Summary Risk Management............................................................................... 158

Chapter 7: Summary.......................................................................................................... 159

Appendix................................................................................ Error! Bookmark not defined.


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Chapter 1

Background of JAo Meat Balls

The Meat Balls are belonging with Thai people for many 200 years ago. All people

can eat it and the meat balls are also easy to eat. Nowadays, most of people have to hurry and

need more convenience. So, the meat ball is the best answer to serve their lifestyles. The meat

balls can be the most important ingredient to make noodles, you can deep fry, grill, or you

can cook whatever you want, therefore most of people choose meat ball as their meals. In the

present, most of people are interested to pay more attention to their health by using this rule

You Are What You Eat. It refers to concern about eating behavior to avoid the diseases that

come from the foods. So the clean, delicious and non-toxic meat balls are the consumer need.

JAo Meat Balls factory was located on 161 M.12 Muang, Chiang Rai 57100 and

telephone number is 053-333-333. We use Chiang Rai province to be our market because in

Chiang Rai they doesnt has the meat balls that made from a 100% of real meat and the other

brands that doesnt made the meat ball from a 100% and they also sold it as a high price than

our price. From these reasons is the easy way for us to be leader of meat balls manufacturer

in Chiang Rai and the nearby province. For the future we would like to export our products to

the others countries nearby such as Myanmar, Laos because Chiang Rai has located veryclose to these country or on Golden Triangle Area.

Figure1-1; Map Shown Golden Triangle Area

The prominent of JAo Meat Balls are softy, sticky, smell so good because our

meat balls are made from the 100% of meats that has been select from the Farm that has been

certificated by Department of Livestock Development in Chiang Rai, through a standard

process with the cleaning machinery and packed in the vacuum bags for preservation to


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maintain the great flavor and fresh before leaving from the factory to the consumers every

day. We pay attention in each process, and most importantly we dont mix Flour and Borax in

our products. Our slogan is Cleanness and Delicious. Our product is consisting of pork

balls, beef balls and beef tendon balls.

JAo meat ball will distribute to the wholesalers 70% of our product mean the

merchants that come to pick up our product from the factory then they will distribute it again

then we will give them 5 baht per kilograms. For 30%, we will distribute to main market in

Chiang Rai likes BanDu Market, Sri SaiMun Market, Mana market, PraTuLor market.

Segmentation

We can divide into 2 main segments

Wholesaler for 70% Retailer for 30%

Target

We will focus on Wholesaler to be our main target market.


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Project Objectives

I. To analyze the overall economy in Chiang Rai, the current economic level is good ornot and suitable for investment as a business or not. (Macroeconomics Analysis)

II. To analyze the needs of consumers. (Demand Analysis)III. To analyze the alternative of projects, including Technical Feasibility, Managerial

Feasibility, Economics Feasibility, Financial Feasibility, Environment Feasibility,

Safety Feasibility, Culture Feasibility, Social Feasibility, Political Feasibility, and

Market Feasibility.

IV. To analyze the sustainability of the financial system (Financial & FiscalSustainability) and the sustainability of the project. (Institutional Sustainability)

V. To analyze the impact of projects that will happen. (Distribution of Project Effects)

Benefits of Project

I. To know the overall economy of the province of Chiang Rai that it is currentlysuitable for investment business.

II. To know the needs of consumers. (Demand Analysis)III. To know the choice of project. (Analysis of Alternative)IV. To know the sustainability of the financial system (Financial & Fiscal Sustainability)

and the sustainability of the project. (Institutional Sustainability)

V. To know the impact of the project that may happen. (Distribution of Project Effects)


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Activities/Time Frame

Project step November December January February

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1. Think about the topic

2. Research and Development

- Study information from websites and

books.

3. To make introduction report

- background

- project objectives

- benefits

4. To make industry profile report -

nature of industry

- situation of industry

- Vision, mission, business strategy.

5. To make marketing analysis report

- STP, 4P, 5 Cs

- Marketing Activities

- Investment Analysis

- Operations Analysis

6. To make technical analysis report

- Administration Analysis

- Cost structure

7. To make financial analysis report -

profit & loss statement- balance sheet, ROE, IRR, NPV

8. To make risk analysis report

9. To make sum up result feasibility of

business report analysis

- submit draft final report

10. final report

11. Grand opening


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Chapter 2

Industry Profiles

Nature of Industry

The origin of meat ball is the food that commonly

cooked in Southern China and Chinese people around the

world are cooked meat balls as their meal. In the past

meatball made from finely minced pork or beef, starch,

and sometimes tendon to make a meatball bouncy and

added some flavor. Meat balls are common part of

Chinese Cuisines such as noodle soups.

The history of meat ball in Thailand, we assume that

meat balls came to Thailand around SomdetPhraNarai or

SomdetPhraRamathibodi III era. In that time Thailand has

communicated and also trade with China and foreign countries.

Moreover, Chinese people bring the noodle with meat balls for

their meal on-board (ship) by cooked the soup put some meat

balls, vegetables and seasoning source for good taste. But for

Thai citizens in that time the noodle and meat balls are amazing

to them then Thai citizens try to cook the noodle and the meat

balls as the meal, and use meat balls as an ingredient in many

menu of Thai cuisine.

When Field Marshal PlaekPibulsongkram was a Prime Minister has established the

Thai cultural mandates policy that support Thai citizens to consume noodle. Because, he saw

that if Thai citizens consume the noodle and meat balls as a meal, it can help the country to

solve economic problem at that time to have more cash flow in the country. He said that I

would like Thai people to eat noodle because noodle has more benefit to the health. Noodle

has sour taste, salty, and sweet in the same time, it was delicious and can produced in the

country. Suddenly Id like Thai people to eat a bowl noodle per day. In one day Thai people

will eating 80 million bowl of noodles, its equal to 90 million satang or nine hundredthousand baht that is a lot of money can flow to farmer and fisher man and other peoples in


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the country. From this reason it will effect to the demand of the meat balls in Thailand. And

the meat balls are popular food of Thai peoples as the main course or the appetizer before the

main course until today.

Source:http://www.oknation.net/blog/print.php?id=134672/

Situation of Industry

Nowadays, the government would like to improve many food manufacturers to meet

the HACCP (Hazards Analysis Critical Control Points) system standard because Thailand is

one of the biggest food exporters in the world. In the present consumers has more realizeabout quality of the foods and their eat behavior, it cause that every food manufacturer has to

passed GMP (Good Manufacturing Practice) and HACCP (Hazards Analysis Critical

Control Points) to control the quality of product and safety to the consumers.

Environment of the Manufacturing to producing goods;

The manufacturing has to location on the cleanness area. Equipment, machine and tools in the manufacturing havent effect to the food. For

example, clean, durable, not made from the wood and cannot be a rust

The raw material should be clean, high quality, and not easy to rotten. The storage ofthe raw material has been clean and cold. While the delivery the product should be

preservative. And the temperature has to high more than 72 degrees in the boil tank

Water that use in manufacturing have to clean and should add chlorine to kill bacteria.And do not build the rest room near the production line.

The manufacturer has to clean the equipment, machine and tools as the hygieniccondition.

Source:

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The Report of Thai food Manufacturing from Food Intelligent Center

Rate of production of food and beverages in July of 2553, 51.75 percent increase from

July of 2552, 0.50 per cent. The products that are increasing production rates, including the

production of sugar (34.50%), Vegetable and fruit processing (20.90%), pastries (18.36%),

processed meat (13.93%). For groups product that are rate reduction in the production,

including cassava (-37.67%), seafood (-4.07%), dairy products (-3.31%), and sauce, fish

sauce and condiments (-0.87%).

I. The Production Index

Figure 2.1; the Production Index

When the Production Index (value weighted) July of 2553 stood at 135.84 and

increased compared to last year. 5.85 per cent. Product index increased productivity, such as

sugar (34.50%), vegetable and fruit processing (20.90%), pastries (18.36%) and processed

meat (13.93%).For groups have the production index decreased, such as cassava (-37.67%),

seafood (-1.07%), dairy products (-3.31%) and fish sauces and condiments (-0.87%).


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II. The Transport Product Index

Figure 2.2; the Transport Product Index

The transport product index of July of 2553, stood at 149 increased over the same

period of previous year 5.30 percent. The product groups have sale increase such as pastries

(19.70%), dairy products (19.23%), feed (17.07%), and processed meat (17.13%). Product

groups have sales were decrease such as vegetable and fruit processing (-7.56%), sugar

(-1.63%), and seafood (-0.45%).

III. Finished Goods Inventory of Food and Beverage Index

Figure 2.3; Finished Goods Inventory of Food and Beverage Index

Finished Goods Inventory of Food and Beverage Index of July, 2553 stood at 199.31

decreases from the same month of previous year -9.42 percent. The group has reduced

inventory, such as cassava (-64.74%), dairy (-57.11%), sugar (-43.82%), pastries (-32.36%).

For groups have increased inventory, such as animal feeds (13.49%). beer (7.55%) etc.


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IV. Overview of Thai Food Products

Figure 2.4; Overview of Thai Food Products

Overview of Thai Food Products in July 2553 rather good expanded. Important reason

comes from food demand in both domestic and international, include with domestic spending

growth. However, the baht appreciation, the problem continues to affect the production for

export and domestic factors have increased the cost of production.

Source;http://fic.nfi.or.th/upload/state/media/2864.pdf
http://fic.nfi.or.th/upload/state/media/2864.pdfhttp://fic.nfi.or.th/upload/state/media/2864.pdfhttp://fic.nfi.or.th/upload/state/media/2864.pdfhttp://fic.nfi.or.th/upload/state/media/2864.pdf


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Product

JAo Meat Balls are soft, sticky, smell

so good because our meat balls are made from

the 100% of pork and beef through the best

selection process. Our meat ball has a slogan as

Fresh Clean and Good Taste. Our production

lines are;

Pork balls Beef balls Beef tendon ballsOur product is use the fresh meat that dont have bad smell or stately. Producing

through the cleanness machine and high technology machine then we packaging our meat

balls in the vacuum bags for preservation and maintain the great flavor to the consumers

before leaving the factory every day. And the important thing, our product NOT contain

Flour and Borax.

In our product we put some grease as an ingredient because this grease will mix with

the meat ball, it help our meat ball softy, luscious and have more good taste. We use grease

from pigs, cows and olives oil. Using the grease as an ingredient we need to select it as fresh,

clean and no bad smell, it will make the product has more delicious. And we use the grease as

same as in our product line. For example, pork ball use the grease from the pig, beef ball use

the grease from the cow, if we dont use the same type of grease our meat ball will has a

different color as it should be.

Vision

The company would like to supply the demand of consumer by producing a high

quality meat balls, good taste, cleanness, and safety as consumer need and improving all the

time for the Best for become a leader in food manufacturer in the North of Thailand.

Moreover, we target to make the consumer satisfaction and our stakeholder.


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Mission

I. Create a brand name to famous Thai meatballs, expertise and to be healthy bythe standards and high technology equipment used in manufacturing and is a

leader in producing and delivers to another nearby provinces in the northern of

Thailand and every province in Thailand.

II. Developing a product by update the information for producing grade A meatballs.

III. Our factory has to pass the GMP, HACCP, ISO 9000, ISO 14000 standards inthe first year that we run our business.

Business Strategy

Our company has been set a policy about the strategic management to manage the

factory for improving competition and become a leader of meat balls manufacturer in

Thailand. While the globalization trend that will be change rapidly and strong competition, so

our factory have to follow the situation, information, news for create a new strategy to use all

the time under the limit resource and find the chance, escape the problem that will be make us

stuck with it. We separate our strategy into 3 level following;

I. Corporate LevelOur factory have policy in the managing the factory that cover all the divisions in our

factory under the management team, start from the purchasing a raw material along the

production process until finishing. We use the production which know-how control format to

control the important production process - control in recipes or ingredients by make it

different taste and secret recipes from the another meat ball brands in the market and always

developing our product to be the leader in the meat ball market because there are many

competitors in meat ball market.

For the job that use a lot of money to invest, our factory use out-sourcing company to

do for us to reduce cost such as logistic in the first year when the our factory will be run. Our

factory plan to promote the product by make an advertisement and promotion through the 2

distribution level, first level is direct sell by assign the expert to find a part-time employees

including training an employees for reduce the duties of our marketing team. Second level is

assigning the task to trading company because they expert in distribute the food and beveragethen they will be help our company to distribute the product and also under the control of our


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management team. Our factory use expert distributer for the short-term policy, if our factory

can achieve to the target, our factory will be create our logistic team.

II.Business LevelWe have created a competitive advantage by using the differentiation strategy

provide product and service that different from competitors also have more value than the

quality and after sale service. Because in the present, the competition of meat balls Chiang

Rai market is quite good and the new competitors can put their product into this market

easily, then our factory need to do something different the others such as identity taste that

different from others and also have delivery service even though our factory is a new

business, we believe that our standard and our product will make the consumers satisfy and

loyalty.

III. Functional LevelOur factory has set up the strategy to make more efficiency for competing in the

market by organizing the task in the factory to avoid duplicate task between the divisions, to

produce a product to meet the higher demand of consumers.

Sale division: control the selling goods and collect information about theconsumer demand for developing division to develop the products.

Producing division: control about the production line, starting at selectthe raw materials, control the production process, quality control and

wasting control.


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Chapter 3

Market Analysis

I. General Environment Analysis Chiang Rai ProvinceThe Provincial Emblem of Chiang Rai

Emblem of Chiang Rai province.White elephant under the cloud.

a) Location and AreaChiang Rai is a mountainous terrain in the high of north continental highland. There is

a high flat patch in the Mae Suay district, Chiang Khong, and Wiang Pa Pao. Mountain has a

height of about 1500 to 2000 meters above sea level. The plains around the major river basins

in the middle of the area Such as Phan, Muang, Mae Chan, Mae Sai, Chiang Saen and Chiang

Khong, a height of about 410 to 580 meters above sea level. Chiang Rai province has a total

area of 11,678.369 square kilometers or 7,298,981 square yard.

b) Border lineNorth close to Myanmar and Laos

East close to Laos

South close to Phayao and Lampang

West

close to

Myanmar and Chiang Mai


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c) Geography

Figure 3.1; Geography Chiang Rai on Map

Chiang Rai is located north of Thailand between latitude 19 degrees north to 20

degrees 30 minutes north and longitude 99 degrees 15 minutes and 100 degrees 45 minutes

east, and 829 kilometers away from Bangkok.

Boundary border near to Myanmar, a long Mae Chan, Mae Sai, Mae Fah Luang, and

Chiang Saen districts the length 130 kilometers. Separate mountain ranges of 100 kilometers,

the Sai River 10 kilometers, and Ruak River 20 kilometers. Boundary border with Laos, thedistance is 184 kilometers by 90 kilometers along the Mekong River and mountain ranges 97

kilometers.

d) PopulationPopulations in the Chiang Rai province can Divided into many groups such as;

Thai flat

Consists of urban, Thai, Thai Lue, Thai Khern, Shan follows

Urban Population is the largest group in the past referred to as Thai Yuan or Laophungdum.Guys will have a shape than a little in central Thailand. Women's shapes

and skin looks beautiful.They have spoken to a little differ from central Thailand and

have its own specific letters. Native dress, Women wear sarong nearly foot long,

cylinder sleeve shirt, cover sabai, Put up one's hair and put a flower behind one's ear.Popular Men wear trousers, T-shirts, short sleeve dark blue and a loincloth belt.Home


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space under a high lift. Gable roof with wooden cross decorated with a pattern known

as KaLae. Musical instrument include Pia, Salor, flutes, Seung, Nea, drum. Dancing

art folk have Muang dance, Man dance, Ngeaw dance. The importance tradition is

similar of central Thailand.

Thai Lue is a group of people who lived central and the Upper from ChaiBuricommune in Laos up.

Thai Khern, there have country of origin on the river in Shan state, has been call ThaiKhern and came in Chiang Rai, Muang District, Mae Sai and Chiang Saen.

Shan call themselves the Tai, the urban called Ngeaw (), and Myanmar called theShanwhich mean mountain people.Men is tall larger than Thai people, tall and strong.

Women look beautiful, a skin beautiful than Myanmar women, and looks wise. Theyhave spoken to a little differ from urban and central Thailand and have its own

specific letters. Native dress,Women wear sarong nearly foot long, cylinder sleeve

shirt, pierced ears.Men wear Chinese style, wear long pants, ear piercing.Home space

under a high lift and decorated with wood carvings.Musical instrument include Gongs,

drum, cymbals. Dancing art folk have the dance, Bird dance. Important traditions like

Thai people.

Thai Mountaineers

Akha Moo Ser Yao Karen Li Sor Hmong.

Burmese Exile

Refers to the nationality of individuals who migrated from Burma in Thailand prior to

March 9, 2519 to leave the province of residence must request permission from the Ministry

of Interior.


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Immigrants From Lao Tian

Refers to the Lao people that live with relatives in the border of Thailand. Since the

change of government of Laos in the year 2517 is now officially in Thailand are not allowed

to leave the province of residence.

Population in Chiang Rai province, although have a wide range of groups. It does not

affect the amount of the consumption of meat balls in any way because the meat balls are

appropriate food for all kinds of cooking. Its easy to buy, easy food choices by food stores.

Its appropriate for all population groups.

e) EducationBasic education, including school children from the Elementary level secondary

school and high school by the schools were 734 schools under by under the basic education

commission 655 School, under the Administration of the Department of Local 9 schools

commission 70 private schools.

Vocational and higher education as a separate school under the Department of

Teacher Education has a total of 7, under the office of private schools 6, and 3 of higher

education institutions.

Province of Chiang Rai list shows that the educational level and basic education and

vocational and higher education are quite large. The impact on our business, factory meat

balls, because if a school has 2 restaurants noodle shops, and 2 restaurants shopping stores

meat balls. Factory meat balls J AO distribution channel will have an additional 3,000 stores

resulting in increased consumption. And increase distribution channels the meat balls into the

education market more.

f) Basic Infrastructures Transportation

o Car can travel with 3 routes are;1). Route Nakhon Sawan - Lampang - Phayao - Chiang Rai from the Rangsit,

Phaholyothin Rd. (Highway 1) and turn left onto Highway 32 at Wang Noi. Then through

Kamphaeng Phet, NakhonSawan, Chai Nat, Sing Buri, Ayutthaya, Tak, Lampang to then

straight to Phayao to Chiang Rai and onto a total distance of 830 kilometers.


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2). Route NakhonSawan - Phitsanulok - Phrae - Chiang Rai. Take the same route

when going to a province NakhonSawan Make a right turn on Highway 117 (NakhonSawan -

Phitsanulok), then use Highway No. 11 (Phitsanulok - Den Chai) from Phitsanulok through

Uttaradit province to Den Chai district. Turn to the Phrae Province, Highway No. 101 (Phrae

- Nan) to RongKwang district. Turn left on Highway 103 Phaholyothin Road, to meet with

the district bill To Phayao then straight on to Chiang Rai Distance of 804 kilometers.

3). Route NakhonSawan - Lampang - Chiang Mai - Chiang Rai. Take the same route

as the one to Lampang. Then switch to Highway 11 (Lampang - Chiang Mai) over

Lamphunand then to Chiang Mai. Then take Highway No. 118 (Chiang Mai - Chiang Rai) on

DoiSaket to Wiang Pa Pao, Chiang Rai plate distance of 900 kilometers on Highway 11 to

Lampang, Lamphun and meets Highway 1 to travel to Bangkok.

o By BusAre air-conditioned buses and private B.kh.s. of the Chiang Raidaily. Divided into

several routes, including Bangkok - Chiang Rai, Bangkok - Mae Sai, Bangkok - Chiang Sean,

Bangkok - Chiang Khong by a coach from the North Bus Terminal, Kamphaeng Phet 2 Road

also has bus lines Chiang Rai - Tueng - Chiang Kham. The Bus fan and air condition, Car

from Chiang Rai and Chiang Kham car out every 30 minutes beginning at 6:00 pm and the

bus line Chiang Rai - Tueng - Phu Sang - Phu Chi Fa is a car fan car out there 2 day bus trip

from Chiang Rai at 12.30 hrs and 13.30 hrs every day and coach from Phu Chi Fa at 7:30 pm

and 8:30 pm daily.

o By Train

From the railway station have the train or get off at Chiang Mai or Lampang Province.

Then travel to by car or bus to Chiang Rai.


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o By Plane

- Thai Airways International has direct flights from Bangkok to Chiang Rai and a

flight.

- Air Asia has direct flights from Bangkok to Chiang Rai.

- Orient Thai has direct flights from Bangkok to Chiang Rai.

All the routes can see that the trips to Chiang Rai are available through many

channels. Therefore, it is quite comfortable and does not affect business much.


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g) Technology AnalysisToday, technology is changing rapidly.The machines have developed significantly.

Machinery for making meat balls is a machine that is quite rare and high price. Have a

modern machine is an advantage of each plant is extremely. Factory meat balls J AO has put

the cost in machinery and equipment into two plans is a separate piece of machinery. And

equipment with automatic line which will cost a different issue as follows

Initial Cost (Plan 1)

Machine Units Price per piece (Baht) Total (Baht)

Steam machine 1 1,000,000 1,000,000

Grinding rough machine 2 250,000 500,000

Mixing machines. 2 500,000 1,000,000

Shaker 3 120,000 360,000

Deskopen 3 5,000 15,000

Scale 3 8,000 24,000

Packaging machine. VAC 3 60,000 180,000

Freezer material. 1 600,000 600,000

Total 3,679,000

Table 3.1; Initial Cost (Plan 1)


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Initial Cost ( Plan 2)

Machine Units Price per piece Total (Baht)

Steam machine 1 1,000,000 1,000,000

Grinding rough machine 2 250,000 500,000

Mixing machines. 2 500,000 1,000,000

Automatic machine whole line

(Pottery, furniture dry, scales,

packaging machine).2 2,000,000 2,000,000

Freezer material. 1 600,000 600,000

Total 5,100,000

Table 3.2; Initial Cost (Plan 2)

The analysis of this comparison between the two plans. The factory thought that the

production plan by using automation machine is better than many types of equipment must be

purchased separately. Because we have divided many machines it means that we need

workers to control more machines as well. Use the workers to control all the equipment up to

12 people

So, if you choose to use automation .To reduce costs in the workers to control

machines of one map to 12 people.

Figure 3.2; Machine


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PEST analysis

As a tool for analyzing the external environment-related businesses include Political

analysis, Economic analysis, and Social and Environment analysis.

Political Analysis Government's policyo Food Manufacturing License and Food Production License.

Figure 3.3; Food Manufacturing License and Food Production Licenses Logo

Meatball grouped animal products to be Food Manufacturing License and Food

Production License because of the semi-processed foods. This may cause a risk to consumers,

so meatballs must have a label. The quality or standard or control specific plant will need to

request permission ball manufacturing facility for registration and meatballs recipes

Meatballs. Or provide details about each species. The Food and Drug Administration or

Public Health Office.

o GMP or Good Manufacturing Practice

Figure 3.4; GMP or Good Manufacturing Practices Logo

GMP guide lines area good method for the production of a basic environment all

management of the production process. Animal products from our factory whether control of

personal hygiene, control diseases, insects and fish. Structural design of buildings produced.

Including the equipment used in manufacturing, etc., this focuses on prevention rather thancorrective Food Safety Management System.


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investor confidence, resulting in a slowing of investment, based on this month, not the

number of new manufacturing facilities. And the number of new businesses registered

decreased 15.2 per cent of registered capital for new businesses dropped 3.2 percent.

EmploymentEmployment decreased in terms of unemployment rate of the population of Chiang -

Rai. Increased by 18.2 percent of establishments notified dissolution increased. The number

of insured persons in the social security system increased from the same month of previous

year Percentage 3.7 because the number of insured persons under Section 39 (voluntary

sector) increased from the previous month in June 2551 of 1933 people from the Insured

section 33(compulsory) to protect the in tersest of self-insurance.

Economic situation Provincial GDPEconomic structure of the province is considering from Gross Provincial Product (GPP) in

the year 2550 the provincial economic structure. Value of GDP Province (GPP) (price year) was

53,157 million, average income per capita (Per Capital GPP) equal to 44,505 baht per year income

mainly depends on field agriculture up to a percentage, 31.84 equal to 16,925 million baht,

followed. The field of wholesale and retail trade repair of motor vehicles, motorcycles and personal.

And household goods, worth 17.50 percent of 9305 million and the field of education 10.80 per

cent, valued at 5,741 million, respectively.

In 2550, economic growth as a whole (calculated from constant price) increased by

2.91 percent from the year 2549 a little by the field of mining and quarrying. Up 9.38 percent

growth, followed by the field of education and 8.71 per cent growth in the field of health

services and social work 8.24 per cent growth in agricultural fields, respectively, which

accounted for the most value 5.30 per cent growth, which is higher than the growth in overall.

Rate of economic growth during 2547 - 2550 (calculated from constant price) growth

in the overall average percentage 2.78 by the year 2548 the rate of growth percentage, 4.62,

while the years 2549 and 2550 have Rate of growth decreased. For areas with the highest

growth rate in four years, namely mining and quarrying. 9.38 Per cent growth followed by the

field of health services and social work Grew 8.91 percent and the Hotel and Restaurant 8.86

Per cent growth.


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Product province annual price by production sector (B.E.2546 -2550)

(Unit: Million Baht)

Production sector

2546 2547 2548 2549 2550

(2003) (2004) (2005) (2006) (2007)

Agricultural sector 10,666 12,506 15,409 13,353 16,925

Agriculture, hunting and forestry 10,294 12,071 14,768 12,727 16,268

Fishery 371 435 642 627 657

Non-agricultural sector 26,803 29,327 31,624 36,108 36,232

Mining and quarrying 260 302 332 303 313

Manufacturing 1,686 1,948 1,714 1,940 2,123

Electricity, gas and water supply 628 735 749 813 843

Construction 1,935 1,777 1,825 1,884 1,790

Wholesale and retail trade, repair of motor

vehicles, motorcycles and personal and household

goods

7,846 8,394 8,860 9,066 9,305

Hotels and restaurants 988 1,117 1,159 1,355 1,476

Transport, storage and communications 2,133 2,509 2,793 3,188 3,303

Financial intermediation 1,463 1,650 1,799 2,115 2,305

Real estate, renting and business activities 2,452 2,509 2,596 2,688 2,639

Public administration and defense, and defense

and compulsory social insurance2,448 2,771 3,112 3,352 3,613

Education 3,246 3,756 4,416 4,900 5,741

Health and social work 1,321 1,436 1,812 2,036 2,297

Community, social services and other personalservices

301 330 360 368 375

Private households with employed persons 87 93 98 102 109Product province 37,468 41,833 47,033 47,461 53,157

Value product per person(Baht) 31,916 35,474 39,723 39,919 44,505

Population(1000 persons) 1,174 1,179 1,184 1,189 1,194

Table 3.3; Source: Office of the National Economic and Social Development Board


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GDP data of Chiang Rai (GPP) 16branches (at constant prices)

(Unit: Million Baht)

Category

Value

B.E.2544

Value

B.E.

2545

Value

B.E.

2546

Value

B.E.

2547

Value

B.E.

2548

Value

B.E.

2549

Value

B.E.

2550

Agriculture 4,354 4,582 5,310 4,836 4,925 4,740 4,991

1. Agriculture. Hunting and forestry 4,261 446 5,101 4,591 4,546 4,379 4,610

2. Fishing 93 116 209 245 379 362 381

Non agriculture 14,319 15,111 15,192 15,361 16,834 17,486 17,883

3. The field of mining and quarrying 151 198 210 255 318 256 280

4. branch of industry (manufacturing) 659 748 830 885 947 972 1,022

5. Electricity, gas and water supply 535 534 534 579 597 628 666

6. the field of construction 574 883 912 806 788 789 717

7. Branch Wholesale and retail trade, repair of cars.

Motorcycles and personal and household goods

4,406 4,402 4,374 4,471 4,577 4,531 4,592

8. Hotels and Restaurants 529 535 482 533 534 632 672

9. The field of transportation, storage and transportation 1,726 1,838 1,928 2,192 2,356 2,678 2,663

10. Financial intermediation 758 817 809 887 926 1,040 1,108

11. Branch real estate services, renting and business

activities

1,935 2,009 2,068 2,175 2,275 2,382 2,371

12. The field of public administration, defense, and

compulsory social insurance892 1,007 1,011 1,047 1,110 1,113 1,129

13. the field of education 1,303 1,311 1,290 1,364 1,518 1,538 1,672

14. Branch Health, and social work 649 631 537 542 653 692 749

15. Branch provides community, social andpersonal services other

164 161 170 182 194 195 199

16. Employed in private households 37 38 39 42 42 42 44

Total 18,673 19,693 20,502 20,797 21,758 22,227 22,873

Table 3.4; Source: Office of the National Economic and Social Development (NESDB)


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Important sectors of the provinceIndustrial agriculture is a priority followed by is the fishing industry, livestock trade

and border trade and tourism workforce services. But here we give just two sectors, namely

livestock and industry. To know the source material and the amount of resources as the main

raw materials of production, which is required the meat. The industry is to know the types of

industrial facilities and funding as a whole, to analyze and compare with our factory.

The livestock consists of animals, the following typesBeef is popular culture generally. A surveyin2551, Chiang Rai province has 142,225

cattle of the farmers by 16,861species of popular culture and a suitable breeding area is the

American Brahman breed is also qualified to direct meat and growth well follow the

environment include, Charles Robert Lay's, Simment holvarieties, and Limousin evarieties.

Major producers live in the district, and Chan Phan.

Buffalo Thai people threat buffalo as a pet for a long couple of farmers house in

Chiang Rai 2551. Buffaloes are a total of 18,114 farmers by 2713, of a mother buffalo about

70 percent within three years, which can produce a baby buffalo, a source of production is

about 6400. Producers are In Mae Fah Luang, Mae Chan, Muang, Phan, and Mae Suai.

Pig, In year 2551 there were 172,681 pigs and the indigenous pigs contain 17 per cent,

breed pigs 34 percent and finishing pigs fed 49 percent, more resources in the urban district,

Phan, Chan, Wiang Pa Pao, Mae Fah Luang and Mae Suai.


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Show significant quantities of animal years 2549 to 2551

Types of pets

Year 2549 Year 2550 Year 2551

Quantity

(each)

Farmer

(person)

Quantity

(each)

Farmer

(person)

Quantity

(each)

Farmer

(person)

Beef

Milk cow

Buffalo

Pig

Chicken

Chicken eggs

Chicken meat

135,849

3,326

15,722

186,029

2,187,287

458,508

578,605

17,645

159

2,479

16,426

102,175

123

147

160,487

3,523

20,243

256,407

2,223,321

578,396

504,977

18,451

161

2,809

21,516

98,670

152

72

142,225

3,503

18,114

172,681

1,338,265

590,238

497,575

16,861

144

2,713

13,699

35,756

164

135

Table3.5; Source: Livestock Office, Chiang Rai Province

Industrial SectorIn Chiang Rai, there are 783 factories (updated on 31 May 2008) that have been

registered to Ministry of Industry Chiang Rai, Thailand. The Investment is around 8.44

billion baht and the total of labors is around 13,441 persons. The most of labors are working

in Agriculture factory, second is food manufacturer; construction workers and a lot of

workers are working in the rice mill factory. The rice mill factories are most located on

Amphur Muang, Amphur Mae-Chan and Amphur Mae-Sai


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We can divide the783 factories that have been registered to Ministry of Industry

Thailand as;

No. Industry Amount BudgetTotal of Labor

Male Female Total

1 Agriculture 222 3,012,071,041 2,214 1,033 3,2472 Food 99 1,911,404,299 1,274 2,145 3,419

3 Beverage 5 113,400,000 31 13 44

4 Textiles 2 45,650,000 118 142 260

5 Costume 1

1,050,000 2 41 43

6 Leather 3 33,900,000 7 29 36

7 Wood 24 76,699,291 295 100 395

8 Furniture 76 185,383,099 883 83 966

9 Paper 13 119,017,868 176 137 313

10 Chemical 7 209,115,000 81 26 107

11 Petrochemical 7 135,758,000 64 6 70

12 Rubber 1 5,000,000 12 12 2413 Plastic 13 100,700,000 114 60 174

14 Non-metal 99 516,887,279 788 111 89915 Metal Product 26 170,886,000 225 24 249

16 Machine 19 77,718,400 134 1 135

17 Electricity 7 21,958,000 136 500 636

18 Transportation 69 832,518,147 880 130 1,010

19 Others 90 942,290,258 931 633 1,564

Total 783 8,511,406,682 8,365 5,226 13,591

Table 3.6; From: Ministry of Industry Chiang Rai, Thailand


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Social and Environment Analysis Social structure

Social structure of Chiang Rai provinces is like a single big family. Most of people are

Buddhism (1,146,166 persons) or 93.38%, second are Christian (29,404 persons) or 2.396%,

third is Islamic (3,046 persons) or 0.248%, fourth one is Hindu (171 persons) or 0.014% and

the last on is Sikh (10 persons) or 0.001%. From the analysis of social structure it helps us to

known the number in each religion that populations in Chiang Rai are respect to. It will effect

to our factory because our main product is Pork Balls, so the population that respect to the

Islamic cannot consumes our product. Whatever, our factory decides to produce the Beef

Balls and Beef Tendon Balls to this consumer group.

Traditions, Festivals and CultureThe culture of Chiang Rai cant attractive the tourism as it can, if we compare with

other provinces such as Songkran Festival or Loy Kra-thong Festival of Chiang Mai. Because

when Chiang Rai set up the Festival or Fair they have more concern about the income more

than the culture such as GMS trade fair. And another reason is the spread of tourist attractions

such as Wat Roing KhunandPhu Chi Fa, it spend a lot of to travel from each place to another

place. Not enough of transportation in High Seasons.

The most important tradition or festival in Chiang Rai

Wai Sa Phaya Meng rai or Phokhun Mengrai Maharat Festival is held fromJanuary 23 February 1. The Buang Suang worshipping ceremony is to

commemorate Phokhun Mengrai Maharat.

Dok Siao Ban Festival at Phu Chi Fa is held on 1315 February. There are sportscompetitions and cultural performances from hill tribes at Ban Rom Fa Thai in

Amphoe Thoeng.

Songkran Festival and Boat Racing of Mueang Chiang Saen are held on 1318April of each year. In this festival, there is a parade, water bathing ceremony of the

Phrachao Lanthong Buddha image, boat races and folk performances.


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Lychee Fair is held around the middle of May every year. There is a floatcompetition, Lichi beauty contest and booths of many products at the provincial

stadium of Chiang Rai.

Bua-thong Ban Festivalis held in November, affording people the opportunity to seethe sunflower fields, waterfalls and mist at Ban Hua Mae Kham, Amphoe Mae Fa

Luang. There are also hill tribe performances.

Chiang Rai Flower Festival is held during the end of December to January everyyear. There are flower processions, flower gardens, Miss Thinn Thai Ngarm Contest

and also the fair of agricultural products and the variety of flowers. Chiang Saen, Mae

Chan, and Doi Mae Salong are three substantially different places. Chiang Saen's

culture has been influenced by its collection of Buddhist scriptures and temples. It was

once the provincial capital. Mae Chan's name lies in its silver and tribal handicrafts.

Once officially unrecognized by the Thai government, Doi Mae Salong is a Chinese

KMT (Kuomintang) area renowned for its natural beauty and unique Yunnanese

culture. Besides the Chinese 93rd Infantry of the Kuomintang, several other ethnic

minorities have settled down in the region including the Tai Yai, Tai Lue, Tai Khoen

and Tai Yuan.

All of these festivals will generate our sale because in the festival date, the people will

come out to buy more products. From our analysis, it help us to known that during December

to May of each year is the winter seasons, it will be affect our sale.

The Number of populationThe total of Chiang Rai population is equal to 1,227,317 persons, 606,775 of male and

620,542 of female.The most of people live in Amphur Muang, second is Amphur Phan and

the third on is Amphur Mae-Chan.

Amphur Number of Populaion

Muang 226,555

Phan 125,567

Mae-Chan 103,630

Table 3.7; The total of Chiang Rai population

The Density of Populations in Chiang Rai.


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Amphur Person/Square kilometer

Mae-Sai 308,680

Muang 186,300

Wiang Chai 169,912Table 3.8; the Density of Populations in Chiang Rai.

Amphur Phan has been ranking on number 6 and we have select Amphur Phan to be

the one of our target zone because Amphur has many fresh markets and Amphur Phan is on

the way to Chiang Rai.


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The Number of Chiang Rai Populations Divide by Sex in each Amphur

Amphur Male Female Total House

Muang 109,583 116,972 226,555 97,996

Chiang Khong 31,481 31,414 62,895 22,473

Wiang Pa Pao 34,178 34,020 68,198 23,390

Thoeng 41,884 42,102 83,986 28,442

Pa-Daet 13,221 13,170 26,391 8,118

Phan 61,990 63,577 125,567 44,633

Wiang Chai

21,710

22,258

43,968

15,085

Mae-Chan 50,718 52,912 103,630 38,333

Chiang-Saen 25,635 26,365 52,000 20,180

Mae-Sai 42,193 45,781 87,974 40,793

Mae-Suai 42,122 40,867 82,989 26,381

PhayaMengrai 21,155 20,933 42,088 13,100

WiangKaen 16,343 15,650 31,993 9,616

Khun Tan 16,217 16,477 32,694 10,295

Mae Fa Luang 40,214 39,749 79,963 20,971

Mae-Lao 15,086 15,581 30,667 11,090

Wiang Chiang Rung 13,286 13,230 26,516 8,062

Doi Luang 9,759 9,484 19,243 7,388

Total 606,775 620,542 1,227,317 446,346

Table 3.9; the Number of Chiang Rai Populations Divide

From: Chiang Rai Provincial Administration.


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ClimateSummer is held on February-May the average temperature is 27.1 Celsius and the maximum

temperature is 36.6 Celsius on 10Aril 2008.

Rainy is held on MayOctober. In August 2008 its has a heavy rain and the total

falling rain is equal to 1,729.1 millimeter

Winter is held on OctoberFebruary, the average temperature is 13 Celsius and the

lowest temperature is 7.7 Celsius on 2 December 2008.

The climate is also the thing that can generate our sale. For example, in summer the

demand of noodle, deep fried meat balls will decrease and also in rainy because its difficult

to go anywhere because of raining. But in the winter is the best time for us to gain more profit

because in the winter the demand to consume the hot food like a noodles, deep fried meat

balls are boom.

Source;http://www.chiangrai.net/CPOC/2010/cr_page/plan4yrs/plan2553-2556.doc
http://www.chiangrai.net/CPOC/2010/cr_page/plan4yrs/plan2553-2556.dochttp://www.chiangrai.net/CPOC/2010/cr_page/plan4yrs/plan2553-2556.dochttp://www.chiangrai.net/CPOC/2010/cr_page/plan4yrs/plan2553-2556.dochttp://www.chiangrai.net/CPOC/2010/cr_page/plan4yrs/plan2553-2556.doc


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Direct Competitors

Significant direct competitors include Ross - Ocha Meat Ball Ball and Aun-jarern meatballs.

Ross - Ocha Meat Ball,Ross - Ocha Meat Balls Company is located in Chiang Rai. Ross - Ocha Meat Balls

Company the facilities to processing factory with products from pork, which is Meatballs

distribution throughout the province to Chiang Rai. Ross-Ocha Meatballs became the first

competitive market we need to be studied because it is considered a major competitor that has

been popular with consumers is a long time. From the survey their market in chiang Rai and

make conclusions from their own inquiries and noodle shops and seller products about

processed meat and focus on the Meatballs. Consumers tend to buy and consume Ross-Ocha

Meatballs brand is number one right now because the Ross-Ocha Meatballs that tastes

delicious. The strength of the Ross-Ocha Meatballs will focus on affordable, clean taste can

be purchased easily and suitable for application to cooked food, especially popular in Chiang

Rai. So, Ross-Ocha Meatballs is very popular for noodle shops and restaurants, too.

Although, only one to choices to choose a product for consumers. Ross-Ocha Meatballs the

marketing strategy with a focus on distribution customers in Chiang Rai and nearby

provinces. It will penetrate all the way to both merchants and consumers. And benefits from

the production facilities are located in Chiang Rai Province is to reduce the cost of

transportation, to result in high potential, rapid distribution and more widely available in the

market because the product is always fresh and new.

Although, Ross-Ocha Meatballs will be very popular consumption in Chiang Rai but,

the Ross-Ocha Meatballs is being held in the middle class because it is meatballs made of

pork about 85 per cent and have a mixture about flour pork and powder. When consumed in

large quantities to feel greasy, and nauseous. And was not a soft if used to cook fried food

will not delicious. As for the marketing product not have to development. Ross-Ocha

Meatballshave just product only no increase in product variety as an alternative to consumers

and distribution channels will be available at only a single source is not supplied sold to

convenience stores or department stores. There is no comfort for consumers who like buying

food from supermarkets. Because in this business in Chiang Rai meatball were much less will

making Ross-Ocha Meatballshas few competitors and become the dominant business of the

meatball in Chiang Rai now.


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Aun-jarern Meat ballsAun-jarern meatballs Company a place to locate a production facility in the province

Phayao the neighboring provinces of Chiang Rai. The factory which will produce and

distribution of N beef meatballs, N pork meat balls and chicken balls. Aun-jarern meatballs

company have distribution in Phayao, Phrae and Chiang Rai provinces etc.

Aun-jarern meatballs at the meatballs taste is delicious and have more variety for

the consumer food choices. Aun-jarern Meatballs Company has focused on manufacturing

quality and safety on clean and the precision of making. Strategy analysis importance of the

Aun-jarern meatballs used is a reliable brand of products. To create the Brand Awareness, are

available for wholesale and to stores and building Brand from noodle shop to open in

conjunction with the distribution to boost sales, and distribution to reach consumers directly.

The form of the franchise came into used is expanding continuously. There will be quality of

service and the food tastes the same standards in all fields. This is a point of sale, or selling

point that is different with other competitors. Today, the fran of noodle shop aun-jarern

meatballs of has branches all five branches located at Tesco Lotus Phayao, Phan district in

Chiang Rai, Chiang Rai, Mae Sai district, Amata Nakorn district in Chonburi and Phare and

have sold to convenience stores, seven eleven stores and every branch offices in some

provinces Phayao and Chiang Rai. Which are among the marketing of consumers product

with J-AO Meetballs as well as. But the in advantages of Aun-jarern meatballs is the another

people has a little-known growth for the consumer in addition to the specified target group

because the distribution will focus on the consumer's northern provinces, especially with

Phayao. The factories no have delivery but the products for customers in addition to the

franchise only. So, consumers can buy goods from shops or factories to dealers only.In the

future growth is likely to become a competitor with a market share of the J-AO meatballs

because the marketing plan and a target that will develop to products and distribution as well

as more extended franchise widely throughout in Thailand. Aun-jarern Meatballs Company

will make a significant and will share the market of J-AO Meatballs directly.

Indirect Competitors:

Meat Ball is a popular food of the Thai people for a long time. Meat Ball will popular

with consumers as a staple food and snacks. Especially put together to eat noodles and

anything can to provide. The main reasons that people eat most popular balls are taste and

variety to consumers because meat ball will to transformation to meat. The meat ball can to


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able to cook a variety of ways. However, there are several products that can replace the balls

to consumers although not complete any replacements such as sausages, pork, crab and

product from CP Fresh Mart etc. These products could potentially be viewed as both threats

and opportunities in the following markets. Indirect Competitors have a sausage general,

pork, crab and product from CP Fresh Mart because these are commonly eaten foods that

taste good for a soft easy to chew more affordable and treatment of eating not easy to simple.

Sausages, pork, crab and product from CP Fresh Mart making is a popular food at the top of

the food consumed as well. Many sausages with sold in the market have a good standard of

clean and good taste but, to many sausages sold in market have not good standard, too.

However, the consumers will generate much consumed. It can be cooked a variety of menu

and very popular among consumers because consumers access to all groups. Whether

consumed as food or snacks consumed as staple food. It used to cook a stir fry or salad and

other.


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Customer Analysis

Meat Ball is a popular form translation products made from meat such as pork, beef,

chicken and fish. Most the demand of consumers meat ball and is implemented in

conjunction with meat balls to cook meals such as such as meat ball noodle, fried, grilled and

steamed meatball. So, meat ball is a popular all customers group. The market groups of our

will are many people. From the results purchasing behavior processed pork products many

more. Most people of people who eat meat ball all the reasons to eat because eating meat ball

that has a delicious. Our will saw the survey number of research results consumer eat meat

balls from the table below.

Figure3.5: Consumer Eat Meat Balls


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Competitive AnalysisThe Five-Forces model for the competitive of meat ball factory in Chiang Rai.

Figure11: Five-Force model

1. Threaten of new competitors.Advantage - Secret Recipe.

- Higher nutrition than other brands.

- High investment for Hi-Technology machine.

Disadvantage - Easy to entry to the market, if they know how to do it.

- - The meat balls market is wide and depend on ability ofowner.

2. SupplierAdvantage - There are many meat suppliers in Chiang Rai.

Disadvantage - The raw material (Meat) is depending on season if it

infects the pestilence. In that time our cost will be

increase.

New

Competitors

Product

Compete with direct competitors

Threaten of new competitors.

Threaten of substitute products

CustomersSuppliers

Bargaining power Of Supplier Power of Negotiation of Customers


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3. Threaten of substitute productsAdvantage - Substitute products such as sausages, fish balls are

depending on consumers.

Disadvantage - Substitute products such as sausages, fish ballscan be

more colorful, easy to eat and convenience to buy.

4. Power of Negotiation of CustomersAdvantage - Our factory has been set the clear policy of the price

discounting already for retailers and wholesalers.

Disadvantage - When the consumers buy our product large amount,

they will asking some discount or asking for something

free.

5. Compete with direct competitorsAdvantage - Our product is always fresh

- Using Hi-technology machine in producing Meat

Balls- Less of labor cost

- delivery service

Disadvantage - A lot of competitors

- Use a lot of budget to invest

- The consumer loyalty to the old brands


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STP Analysis

STP or SegmentationTargetingPositioning is one step of the process of analyzing

location the forward market. During is the market targeting because the market can be divided

into categories: the consumer market, industrial market, the market for governance, and

international markets. Therefore, the Company is not able to meet the needs of every market

because the limited resources of the company. Therefore, the STP will enable the company to

know that "Who are the customers self, in order to satisfy them correctly and create a

company with are ward.

SegmentationJ'Ao is manufacturer. Divide customers can be divided into two major parts, there are

the wholesale markets and retail markets. Most focus on the wholesale market in the form of

a modern trade is currently in Chiang Rai. The estimates, that the market is valued at

approximately 150 million per year, with 50% market share.

1. Wholesalers J'Ao Meat Balls Factory is divided 70% for the sales of wholesale whichcan be divided into 2 groups.

Traditional Trade or traditional retail stores by 30% from 70%, including Marketgrocery stores and small wholesalers and retailers combined together.

Modern Trade is 40% from 70% of such stores.2. Retailers the sales rate of 30% of sales can be divided into 2 groups.

Traditional Trade, or traditional, retail is 10% from 30%, including market grocerystores and small wholesalers and retailers combined together.

Modern Trade is 20% from 30%, including stores in the Supermarket, Minimartand modern retail outlets in other formats.

Figure12: The customer segmentation


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Target Market

Important market of the factory, which main goal is J'Ao Meat Balls markets wholesalers.

Product Positioning

Current demand and customer behavior has changed dramatically. Customers not only

want the product only, but they also want freshness. Clean and safe treatment plant, which

will determine whether customers decide to shop with us again or not. J'Ao Meat Balls

factory has determined position the Company at prices much higher than its competitors and

the quality is higher than its competitors. In terms of raw materials used to choose a better

quality of fresh competition. Therefore, the market position will be on the following.

Figure13: The market position

Quality

High

Low

Low High

J'Ao MeatballsFactory

Other

com etiter


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Supporting ProductProduct Factory Support J'Ao Meat Balls are beef balls and beef tendon balls. We

choose to sell the beef balls and beef tendon balls because it is an alternative for customers

who like to eat beef balls and beef tendon balls or do not eat pork balls.

Price

Factory J'Ao Meat Balls used cost-plus pricing strategy to set the price by calculating

the average cost, plus a markup, and will not exceed the standard price. Prices may be slightly

higher than its competitors. Because the costs may be higher because of our selection of

quality used in manufacturing.

We use Cost-plus pricing and Psychological pricing to set our tour packages price.

Cost-plus pricing - set the price at the production cost plus a certain profit margin.

Psychological pricing - base the price on factors such as signals of service quality,

popular price points, and what the consumer perceives to be fair.

J'Ao Meat Balls Factory is price of products.

Price of products

Product Size Price for Retailer Price for Wholesaler

(Baht per kilogram) (Baht per kilogram)

Pork Ball

Small 125 120

Medium 125 120

Big 125 120

Beef Ball

Small 115 110

Medium 115 110

Big 115 110

Beef Tendon Ball

Small 105 100

Medium 105 100

Big 105 100

Table 10: Price of products


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Place

Channel of J'Ao Meat Balls for consumers to buy the ball is supermarket, followed by

the fresh-food market. In the future J'Ao Meat Balls Factory is planning to distribute their

products through the wholesaler such as Big C, Lotus and sales in the7-eleven will be direct

sales and sold through dealers as well.

Promotion

J'Ao Meat Balls Factory is trying to encourage the market to achieve the target

customers to buy products, interested in our products, customer behavior and keep in

accordance with the product not to change. J'Ao Meat Balls Factory has had a strategy to

attract customers and consumers continue through various forms so as to consumers in

Chiang Rai province has recognized the products of more J'Ao Meat Balls. The way we do

promotion has continued to attract the interest of consumers like this.

Advertising1.J 'Ao Meat Balls will be provided with signs advertising the various places in the

city and the place where busy people. Have news about products cause awareness creation,

good sense and a product of learning to push the purchase of consumer. It makes for an

effective direct marketing and wholesale.

2. J'Ao Meat Balls will be advertising on the radio.

3. J'Ao Meat Balls will be provided for follow-up booth or festivals such as the

beauty in flowers, annual Pho KhunMengrai, Litchi Festival City of Chiang Rai and other

Sales promotionPublic relations are going to provide for the apron, calendars, and shirts. This is the

only factory to distributors and retailers as a communication channel to another format.

Speaking of buzz is the two-way communication, it must support each other. Aims

to achieve recognition, learning, changing attitudes and decision support. Speaking a word

influences consumer goods, especially expensive items that do not shape.


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Sales Forecast/Profit Estimation

Sales ForecastJAO meat balls factory estimates total sales 3 tons per day or 3,000 kilograms per

day, so on 1 month JAO meat balls factory can sale 90 tons or 90,000 kilograms. And 1 year

the factory cans sale 1,080 tons or 1,080,000 kilograms. The factory set selling rate for pork

balls: beef balls: beef tendon balls are 50:30:20. We can calculate sale forecast in one year as

follow:

1. Pork balls price is 120 baht per kilogram for wholesalers and 125 baht for retailers.

The number of total pork balls sale are 540,000 kilograms per year. We can sale for

wholesalers 70 percentage and retailers 30 percentage of total pork balls sale. Then, we can

sale for wholesalers 378,000 kilograms or 45,360,000 baht and retailers 162,000 kilograms or

20,250,000 baht. Total sale for pork balls per year are 65,610,000 baht.

2. Beef balls price is 110 baht per kilogram for wholesalers and 115 baht for retailers.

The number of total pork balls sale are 324,000 kilograms per year. We can sale for




3. Beef tendon balls price is 100 baht per kilogram for wholesalers and 105 baht for

retailers. The number of total pork balls sale are 216,000 kilograms per year. We can sale for




JAO meat ball factory estimate sale forecast increase 5% for year 1, 2 and 3, and

increase 10% for year 4 and 5 because of first period customers unknown our product and

first period we must paid high cost for both raw materials and machines. If the factory can do

like this plan, the factory will receive capital return.

Table 11: Sale forecast

Sale forecast Year 1 100%






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Sale Forecast

Sale Forecast in Year 1

Products January February March April May June July August September October November DecemberTotal

(Bahts)

Pork Balls 6,105,000 5,505,000 5,720,000 6,205,000 5,700,000 5,207,500 5,050,000 4,950,000 4,900,000 5,020,000 5,142,500 6,105,000 65,610,000

Beef Balls 3,320,000 3,102,000 3,010,500 3,210,500 2,880,000 2,870,000 2,855,000 2,890,000 2,860,000 2,905,000 2,873,000 3,350,000 36,126,000

Beef Tendon

Balls 2,050,000 1,870,000 1,835,000 2,150,000 1,785,000 1,780,000 1,790,500 1,801,000 1,790,000 1,800,500 1,827,000 2,100,000 21,924,000

Total 11,475,000 10,477,000 10,565,500 11,565,500 10,365,000 9,857,500 9,695,500 9,641,000 9,550,000 9,725,500 9,842,500 11,555,000 123,660,000


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Sale Forecast Year 2


(Bahts)

ork Balls 6,410,250 5,780,250 6,006,000 6,515,250 5,985,000 5,467,875 5,302,500 5,197,500 5,145,000 5,271,000 5,399,625 6,410,250 68,890,500

eef Balls 3,486,000 3,257,100 3,161,025 3,371,025 3,024,000 3,013,500 2,997,750 3,034,500 3,003,000 3,050,250 3,016,650 3,517,500 37,932,300

eef Tendon

alls 2,152,500 1,963,500 1,926,750 2,257,500 1,874,250 1,869,000 1,880,025 1,891,050 1,879,500 1,890,525 1,918,350 2,205,000 23,707,950

Total 12,048,750 11,000,850 11,093,775 12,143,775 10,883,250 10,350,375 10,180,275 10,123,050 10,027,500 10,211,775 10,334,625 12,132,750 130,530,750


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(Bahts)

Pork Balls 6,715,500 6,055,500 6,292,000 6,825,500 6,270,000 5,728,250 5,555,000 5,445,000 5,390,000 5,522,000 5,656,750 6,715,500 72,171,000

Beef Balls 3,652,000 3,412,200 3,311,550 3,531,550 3,168,000 3,157,000 3,140,500 3,179,000 3,146,000 3,195,500 3,160,300 3,685,000 39,738,600

Beef Tendon

Balls 2,255,000 2,057,000 2,018,500 2,365,000 1,963,500 1,958,000 1,969,550 1,981,100 1,969,000 1,980,550 2,009,700 2,310,000 24,836,900

Total 12,622,500 11,524,700 11,622,050 12,722,050 11,401,500 10,843,250 10,665,050 10,605,100 10,505,000 10,698,050 10,826,750 12,710,500 136,746,500


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(Bahts)

Pork Balls 7,020,750 6,330,750 6,578,000 7,135,750 6,555,000 5,988,625 5,807,500 5,692,500 5,635,000 5,773,000 5,913,875 7,020,750 75,451,500

Beef Balls 3,818,000 3,567,300 3,462,075 3,692,075 3,312,000 3,300,500 3,283,250 3,323,500 3,289,000 3,340,750 3,303,950 3,852,500 41,544,900

Beef TendonBalls 2,357,500 2,150,500 2,110,250 2,472,500 2,052,750 2,047,000 2,059,075 2,071,150 2,058,500 2,070,575 2,101,050 2,415,000 25,965,850

Total 13,196,250 12,048,550 12,150,325 13,300,325 11,919,750 11,336,125 11,149,825 11,087,150 10,982,500 11,184,325 11,318,875 13,288,250 142,962,250


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(Bahts)

ork Balls 7,326,000 6,606,000 6,864,000 7,446,000 6,840,000 6,249,000 6,060,000 5,940,000 5,880,000 6,024,000 6,171,000 7,326,000 78,732,000

eef Balls 3,984,000 3,722,400 3,612,600 3,852,600 3,456,000 3,444,000 3,426,000 3,468,000 3,432,000 3,486,000 3,447,600 4,020,000 43,351,200

eef Tendonalls 2,460,000 2,244,000 2,202,000 2,580,000 2,142,000 2,136,000 2,148,600 2,161,200 2,148,000 2,160,600 2,192,400 2,520,000 27,094,800

Total 13,770,000 12,572,400 12,678,600 13,878,600 12,438,000 11,829,000 11,634,600 11,569,200 11,460,000 11,670,600 11,811,000 13,866,000 149,178,000


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Marketing Expenses

JAO meat balls factory uses 2% of sale forecast for advertising expenses in year 1

and year 2 because in first period, customers unknown about our brand and our products. So,

we should be use a lot of money for advertising. After that we use 1.5% of sale forecast for

advertising because customers know about our products better than year 1 and year 2. It

includes in cost of goods sold. In Year 3 and year 4 we paid for marketing expense in nine

months from twelve months because customers know our products. And in year 5, for

customer to recognize our brand in their mind we have to expand advertising from nine

months to ten months.

Marketing Expenses Year 1

Month Marketing Expenses (Baht)

1 123,660.00

2 123,660.00

3 123,660.00

4 123,660.00

5 123,660.00

6 123,660.00

7 123,660.00

8 123,660.00

9 123,660.0010 123,660.00

11 123,660.00

12 123,660.00

Total 1,483,920.00Table 18:Marketing Expenses Year 1

Figure21:Marketing Expenses Year 1


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1 130,530.75

2 130,530.75

3 130,530.75

4 130,530.75

5 130,530.75

6 130,530.75

7 130,530.75

8 130,530.75

9 130,530.75

10 130,530.75

11 130,530.75

12 130,530.75

Total 1,566,369.00Table 19: Marketing Expenses Year 2



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1 0.00

2 111,883.50

3 111,883.50

4 111,883.50

5 0.00

6 111,883.50

7 111,883.50

8 111,883.50

9 0.00

10 111,883.50

11 111,883.50

12 111,883.50




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1 0.00

2 121,207.13

3 121,207.13

4 121,207.13

5 121,207.13

6 0.00

7 121,207.13

8 121,207.13

9 121,207.13

10 121,207.13

11 0.00

12 121,207.13




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Conclusion

After, we had launched a meat ball factory. Under the name of JAo Meat Ball, after

that we have always examined the standard of the factory and our product sell the time by

collect data from the market that made consumer satisfied with our product. Encouraged the

market by invent new products to meet the needs of consumers. We think that its the best

way to make us gain more profitable and achieve the goal quickly.


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Chapter 4

Technical Feasibility Study

Production and Operations Analysis

1. Product Characteristics

JAo meat balls factory, which can be divided into three types of product:

1. Pork balls.2. Beef balls.3. Beef Tendon balls.1. Pork balls

Figure26:Pork ballsJAo Meat balls factory have 3 sizes of product to let customer to choose from smaller

size, medium and larger size according to the needs of consumers. We have 3 size of meat ball,

but we still distributed at the same price as 125 baht per kilogram we use the weight to estimate

the price. We use pure pork, a best pork quality. No bad smell. Its cleanness and eatable. Our

production machines and equipment are always clean and use high technology in production

process. Then our meat ball will packaging in a vacuum bag for preserve the flavor of the pork

balls are tasty and fresh to serve to the consumers before leaving the factory every day and

important point we would like to remind you that we didnt use flour and borax.


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2. Beef balls

Figure27: Beef balls

Beef balls JAo factory have 3 sizes to choose from small, medium and large according to

the needs of customers or consumers. The price of beef and the beef balls three sizes of our sales

in the same price is 115 baht per a kilogram of beef, we use pure beef, , a beef good quality. The

color of beef ball is quite dark, but its not too dark. Beef balls are a darker color than pork meat

balls, smooth, and the smell of delicious beef.


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3. Beef tendon balls

Figure28:Beef tendon balls

Beef Ball looks rough, not smooth because the main ingredient is Beef tendon. When

chewing it will crunchy. Most of consumers use to cook the beef tendon balls by baking or

grilled it. Oily and sticky beef tendon balls when its burned with fire meat will taste the

delicious aroma very appetizing. Beef tendon balls then JAo meat ball factory has two sizes to

let the consumer to select such as small and large. Beef tendon balls are not very popular.

Production plan also envisioned beef tendon balls to only 20%, so beef tendon balls is not

required sizes. The price of beef tendon balls and 2 sizes, we have sold in the same price is 105baht per 1 kg.

Small Medium Large

Figure29: size of balls


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The size of the meat balls three dimensions are detailed is small balls 2 cm in diameter,

Medium size 3 cm in diameter and large diameter 4 cm.

The small meat balls are a total of

j'ao meatballs factory

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