sing a song karaoke
TRANSCRIPT
Project Feasibility Study and Evaluation
( SING-A-SONG KARAOKE )
Present to
Aj. Chaiyawat Thongintr
By
5231205003 Kanistha Suksom
5231205021 Jusmin Boonserm
5231205025 Jiraporn Palee
5231205034 Chyanut Sukhum
5231205040 Chutcah Wan Indee
5231205043 Chitchanok Wongwang
5231205071 Nalinee Rodlamool
5231205125 Wanida Maitreethaweenithi
Seat 18 Section 2
Tourism Management
Mae Fah Luang University
PREFACE
The report is a part of Project Feasibility Study and Evaluation subject (1203302).
This report has purpose to study about the project to do entertainment business in Chiang Rai
province. We choose to research about karaoke room in the front of Mae Fah Luang
University. We have fully information and clearly of this karaoke project because we study in
deep details to show for reader with this business. The report will show about everything in
our project, for example, financial statement, cost, risk management, etc. It can show the
project can run in the long-run or not and show about if the investor doing this project they
will get high profit or loss of profit when the reader will read this report.
We would like to say “Thank you” for their participations to give knowledge and
information for our study, these also allow us to get more knowledge and make us to
understand in deep. Also, it improves us to develop education have more useful and will be
change of development to be create and have new ideas to do business in the future. Again,
we would like to say “Thank you” very much for their helps. Firstly, we thank you for our
advisor Aj. Chaiyawat Thongintr, he try to continue to help and support in this project. He is
always to listen and give advice for us. Second, we will say thank you to following many
websites on the internet, which are support our project to be successful.
Finally, we will thank our members in group that work together. In the first, for
educating with information to support and encouragement to pursue our topic to do project,
we will share information and help to solve problems that occur in report.
EXCLUSIVE SUMMARY
Sing-A-Song Karaoke located in the front of Mae Fah Luang University, Chiang Rai
province. Inside the building, we provide 3 floors to serve customer to use it. In the first floor,
it is a food court and library zone and serves with coffee and bakery in that zone. In the next
second and third floor, we separate the rooms to be 3 sizes include with S, M, and L sizes. We
have 19 karaoke rooms and each room different in theme and decoration. In each room, we
provide many themes to serve customer to choose and use it, for example, boxing room,
concert room, haven room, bedroom, examination room, etc. Every room will different in
theme and decoration because we want to make difference from others. We provide beverage
zone for sell snack, alcohol, and beer for customer. Our vision wants to be a leader of karaoke
entertainment in Chiang Rai province by provides modern, technology, facility, and high
quality to customer. It is like our slogan “Think of entertainment – high quality services,
thinks of Sing-A-Song Karaoke”.
Most of target markets are general customer who likes to sing a song, but we focused
on the students who study in Mae Fah Luang University because our business located there
that makes us concerned it. We will study about the characteristic of Chiang Rai people by
use STEEP strategy to research and analyze the data. Our competitions are not much in
Chiang Rai province because they not have high quality with equipment and they not have
special thing to make different in their business. So, that make us can have more advantage
better other competitors because we have high quality with equipment, good services for
customer, and we good system to booking when the customer will use our services. Before
we want to study to do this project, we will survey to ask students in Mae Fah Luang
University about their opinion for this project. And most of them want to have karaoke in the
front of their university because it can be the place for relax and meeting their friend.
In financial statement, sales forecast will be increase in every year because we have
more customers to use our services. And that make us to get high benefit when to do this
project. It can show for the investor who wants to invest in this project, your money will not
lost because we study in deep detail to offered this project. We will calculate everything about
financial statement to show income since open business to next 5 years. That can make the
investor confident with this project when they want to invest.
Table of Content
A Preface……………………………………………………………………………….…I
Table of Content……………………………………………………………………….....II
Exclusive Summary……………………………………………………………………...III
Chapter 1: Introduction…………………………………………………………………1
1.1 Background and Significant of project……..………………………………...2
1.2 Objective…………………………………………………………………….. 3
1.3 The benefits of project………………….…….………………………………4
1.4 Activities and Time frame……………….……………………………………5
Chapter2: Industry profile……………………………………………………………....6
2.1 Nature of Industry………………………………...……………………………7
2.2 Situation of Industry………………………………...………………………….9
2.3 Product and service (In general)……………………...………………………...9
2.4 Vision………………………………………………………………………….11
2.5 Mission………………………………………………………………………...11
2.6 Strategic planning……………………………………………………………..12
2.6.1 Corporate level…………………………………………………....12
2.6.2 Business level…………………………………………………..…12
2.6.3 Functional level………………………………………………..….12
2.6.4 5’C strategic……………...…………………………………...…..14
2.6.5 Blue Ocean Strategy………………………………………………16
Chapter 3: Market Feasibility Study....................................................................................17
3.1 Market Analysis…………………….…………………………………..……...18
3.1.1 General Analysis…………………………………………..………18
3.1.2 Competition analysis…………………………………….………...21
- Competitor Analysis……………………………………….…………..21
- Customer Analysis…….……………………………………………….22
3.2 STP analysis………………………….………………………………………...23
3.2.1 Segmentation…………………………….………………………...23
3.2.2 Market targeting…………………………………………………...28
3.2.3 Product position…………………………………………….….......29
3.3 Marketing Mix strategy or 4Ps……………………………………………..….27
3.3.1 Product………………………………………………………….....30
3.3.2 Price………………………………………………………………..30
3.3.3 Place…………………………………………………………….…31
3.3.4 Promotion……………………………………………………….…31
3.4 Sales forecast……………………………….…………………………….…….32
3.5 Marketing Expense (Sales Incentive)…….……………………………….……38
Chapter 4: Investment……………………………………………………………40
4.1 Pre- Operation Cost…………………..…………………………………41
4.2 Investment Cost……………………… ..………………………………..41
4.3 Depreciation Cost…………………..….………………………………..44
Chapter 5: Operation
5.1Production and Operations Analysis………………………………………..60
5.1.1 Product Characteristics (in detail)……………………………….....61
5.1.2 Specification and Feathers…………….………………………..….62
5.1.3 Services Process…………………………………………………....72
5.1.4 Location…………………………………………………………....74
5.1.5 Facility Layout……………………………………………………..75
5.1.6 Logistics Management……………………………………………..78
5.1.7 Facility Management……………………………………………….78
Chapter 6: Administration……………………………………………………….79
6.1 Salary…………………………………………………………………….80
6.2 Administrative…………………………………………………………..80
Chapter 7: Financial Analysis……………………………………………………82
7.1 Income Statement……………………………………………………….83
7.2 Statement of Cash flow…………………………………………………86
7.3 Balance Sheet……………………………………………………………91
Chapter 8: Risk Management…………………………………………………….96
8.1 External Risk…………………………………………………………….97
8.1.1 PEST Analysis…………………… .…………………………….97
8.1.2 Five forces model………………………………………………98
8.2 Internal Risk………………………………………………………..……100
Chapter 9: Conclusion…………………………………………………………….105
References…………………………………………………………………………..VII
Chapter1
Introduction
Chapter1
Introduction
Background and Significance of the project
Karaoke entertainment business is the entertainment service serves to everyone who
would likes to sing a song. In Chiang Rai province not has many karaoke that make our see
the opportunity to built karaoke entertainment service to serve everyone. The located we
choose at in front of Mae Fah Luang University because it is closely with our target market.
We focus on the students who study at Mae Fah Luang University and people who want to
love to sing a song. This area is just only having one competitor from survey in this area that
not enough with consumer’s need that make us can see that opportunity. Competitor’s
karaoke have 4 rooms and not have good quality, for example, equipment damaged, old, and
not have to update new songs for customer. So, that make we will think and plan to built
karaoke entertainment to serve them to use this service and encourage them to enjoy with our
service.
This karaoke entertainment service can permit to drink alcohol in the room but
consumer must buy alcohol from us because we not permit consumer to bring food &
beverage from outside into our place. Our point of view want to make consumer feel enjoy
and fun with entertainment. We have high quality service and appropriate for the funny party.
We want to develop the front of Mae Fah Luang University to get high benefit and we think
in next 5 years this university will very famous and have more student to study. Our karaoke
has full facilities because we want to be the one and the best entertainment service in Chiang
rai province. We can adapt our karaoke to be conference room because our VIP room that
bigger and can serve to business man to do businesses and relax karaoke when businesses
finish.
The karaoke has three floors, in the first floor have food center that has food court
around 5 or 6 shops and has library room to encourage student come to read books or talking
with their friends also serve them with bakery and coffee shop in that room. In second floor
and third floor has been karaoke room that has 4 VIP rooms and 15 standard rooms. We
divided three types as 11 S of rooms, 4 M of rooms and 4 L of rooms (VIP rooms). This is the
special thing in our karaoke – we have 19 rooms and each room have different theme on wall,
for example, bed room theme, safari theme, living room theme, jail theme, etc.
Karaoke business not the newest in Chiang Rai but it does not have full karaoke in
Chiang Rai. It not has a big room and not has good facilities serve to customer. So, that is our
opportunity to promote our karaoke to others for join and sing a song with us. We have fewer
competitors in Chiang Rai and we think we are better than them because we have full
facilities and everything has quality. The consumer can touch with new experience and new
karaoke with us when they come to our karaoke. The characteristic of us will different
because we know about the need of our target market and we can make them satisfied with
our service entertainment business in a long period.
Objective
Planning of our project.
1. To understand and know about the method to do the perfection of business project.
2. To analyze a reality business that can be happen in the future as economic analysis,
marketing analysis and etc.
3. To learning about the problem and working as a team.
4. To do research and can be built it in the real area.
5. To build the new experience of singing a long and improve Karaoke to be international.
6. To develop about the new karaoke in Chiang Rai and planning the project. How to know
the problem and also solve the problem that will be occurring during working as well.
Benefits of project
Use the land in front of university to get high benefit and we give money to local
people to get income by employ local people to work with us.
If this project successful, the company will get high profit in long run.
The consumer can touch a new thing from our karaoke service because it is a full
with facility and consumer will can enjoy and fun with us.
We can be the best entertainment in Chiang Rai province.
Can support Mae Fah Luang University to very famous in Thailand (win-win
business between Mae Fah Luang University and our company).
Make income to local community and they have jobs.
Can be the center point of student to meeting their friends.
Activities and Time frame
Gantt chart
Operation method
November2011 December2011 January2011 Febuary2011
W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
1.Disscuss and create
our topic
2.Searching data to
support our group
project
3. Brainstorm and
write structure of
building.
4.Presentation
6.Brainstrom and
write group our
project Chater1-3
Chapter 2 Industry Profile
Chapter 2 Industry Profile
Nature of Industry
Karaoke come from a Japanese word which “kara” means empty and “oke” means
orchestra. Therefore, karaoke means the tape that has only melody without a vocal voice.
Karaoke business was originated from Japan that admires use in music production company
for singer to practice sing a song. In case of company must go to show concert. It is needless
to bring music instruments include singer for complicate and waste. It is the business for
entertainment and relaxes. In 1997 is the year that karaoke began boom and popular in Japan
because Japanese have habit to sing a song. In 1991 has survey found that In Japan there are
70,000 restaurant that installed karaoke and 52 million people love to sing a song.
Karaoke business reached to Thailand in 1977 that began in Thaniya area. It is a
night club place of business. In the past Thaniya is the center of Japanese businesses and
tourists. The first time, most of customers of karaoke in Thailand are night life people that
had a bad view because there had spirits and alcohol beverages with women’s’ service. At
that time, karaoke called Eight Tracks music. It was a cassette player and tape look like
normal tape but bigger than normally tape. This tape not had vocal music. It had only melody
and customer can sing a song by lyrics that written in the paper for look and sing follow it.
From Thaniya road, karaoke business began spread became to new type of
entertainment at night around Bangkok and big city in Thailand. Also Luxury club, restaurant
hotel or café for responded customer need. The government legislated at that time was night
clubs must have musical instruments not more than 2 pieces that made those night clubs
prefer to use keyboard and sequencer instead of full band that uses MIDI (Music Instrument
Digital Interface) system. It was musical instrument that compensate all of brand by got
support from producer of sequencer and keyboard that development technology and quality
of product to the market.
Around 1996, Karaoke Business was popular in middle class restaurants in Bangkok
and provincial. Businessmen who manage Karaoke jukeboxes business and own them, will
bring Karaoke jukeboxes into restaurants and share profits with restaurant owners 30% and
the owner of jukeboxes got profit 70% by owner of jukeboxes responded about repair and
update new song for serve service to customer. Owner of restaurant responded in electricity
bill and safety. When Karaoke is expanded widely and Thai people are more bold expression
in party and social contact that prefer to use karaoke activity for entertainment. It makes bad
view about karaoke decrease. Major Cineplex Company is the influencer which makes people
changes their attitudes about Karaoke definitely. It established first Major Karaoke at
Ratchayothin branch. The Major tried to create Karaoke Business in good image at daytime.
Main customers were a students and families group that makes it is positive. It also has been
supported from music production companies who produce Karaoke CD and Karaoke
equipments are more modern that makes Karaoke Business is fast growing and very popular.
Actually, there are many Major’s competitors; a SF Music City, Big Echo, and Karaoke shop
without women’s service and open in daytime.
In 2002, Thailand began to levy copyright according to WTO condition that levy from
Karaoke Business first. GMM Grammy Public Limited Company is the first company to levy
copyright then RS Promotion Public Limited Company, Copyright Music Limited Company,
and others 15 companies follow levy strictly except TECA Company which manages
international music copyright that effect to entrepreneur confuse. It made entrepreneur of
business karaoke cannot adjust and cannot flight with high capital cause end the business.
Result of that time, karaoke stopped and decelerated until 2003 entrepreneur understood
about copyright and well select to use song all of companies so carry on business.
http://karaokezone.blogspot.com/2008/05/blog-post.html
Sing-a-song karaoke located in front of Mae Fah Lunag University. Owner business is
a person who loves to sing a song and like to hang out so owner business want to share
happiness give amusement in sing a song to everybody. Then establish sing-a- song karaoke
for the place that relax and create entertainment to very gender and very age. There are
students, worker, and elderly.
Name of karaoke shop is “Sing-a-song” from sing a song in English word. The
objective is support people who like to sing a song, ran away from problem, meeting point
and want to relax. Sing-a- song karaoke provide high quality stereo, modern technology, the
best karaoke program. In addition, our karaoke shop also has food and beverage including
alcohol service. Our foods are delicious, clean safety and sanitarian. There are many styles
including Thai food, Western food and bakery shop to responds of customer need that make
customers are most satisfy, happiness, relax and comfortable compare as you sing a song at
your home.
Situation of Industry
Nowadays, karaoke business is booming and very popular in Thai society in all of
gender and ages include teenager, worker, and older. For our business, we have a different
from other competitor because we provide the full service for customer. The location of our
business is in front of Mae Fah Luang University that has only one competitor. That is Blur
restaurant at Fah Thai market. There are two floors. First floor is a food court and second
floor is karaoke room. There are four karaoke rooms that are not enough for people who want
to sing a song. And there are many disadvantages of Blur such as low quality of equipment.
So, it has a different style of our karaoke because our karaoke provide comfortable, faster
service, update, cleaning and service mind.
From that reason, it helps our business gain more incomes rather than other
competitor because we have the differentiation and it has a modern style. So, it can attract
customer to use our service. Moreover, the profit of our karaoke business will increase in
each year.
Product and Service (in general)
Our karaoke entertainment business open on 10.00 am – 02.00 am and located in
front of Mae Fah Luang University. That has three floors; in the first floor have small food
court and coffee shop for customer. The second floor, there are 8 karaoke rooms. We have 4
rooms of size L and 4 rooms of size M. Third floor have 11 rooms of size S. Size S can
contain people for 1-4 person, and M for 5-10 person, and L for 11-20 person. All of rooms
have 19 karaoke rooms. In each room have different theme and mix many styles together that
from owner’s imagination. For example, concert room, movie room, boxing room, princess
room, restaurant room, field room, flower room, under water room and etc. Aims to do that
want to promote our rooms have high value and you can touch with freedom in entertainment
world. Moreover, we serve food services for them and find high audio system equipments
and song copy rights to response them to use it and they have satisfied with our service. The
customer will have fun in good atmosphere and private like they sing a song at home. We
have new songs and update every week such as Thai songs, international songs, Korean
songs, and Chinese songs more than 1,000 songs.
Our service that serves many services, for example, wi-fi service, high quality service,
and food and drink court.
We have food and drink service at the first floor that have many kind of foods
such as Thai food, Italian food, bakery, juice, and coffee shop serve them with
full service in both of entertainment and food.
We not permit to bring alcohol and food that from outside to eat at our
karaoke.
We have high quality and high technology of karaoke system; also have
cleanliness for customer feel comfortable.
Customer can called for booking room before 1hour to attend to use our
services.
We have promotion to attract customer in special day, for example, birthday
party.
The customer can called from up to down for food order, then waiter will
serve to them.
Have high speed internet and Wi-Fi serve them.
Update songs every week.
For member, we have many promotions for them.
If customer have problem with audio system they can call staff every time.
Vision
“Think of entertainment - high quality service, thinks of Sing ka song karaoke,”
We want to be a leader of karaoke entertainment in Chiang Rai by provides modern
technology, good stereo system, and high quality in service. We establish different theme in
karaoke room, many kind of foods, bakery and variety song also Thai and international song
for customer’s need. Otherwise we will be the first choices for customers when they need to
sing a song and meeting point, party and relax.
Mission
Sing ka song karaoke mission is build relaxation and enjoyment to the customer or
people who love to sing a song, run away from problem and hang out by legally which don’t
accept alcohol. We provide fair price to customer. Very side of room also S, M, and L we
serve everybody are equally
We will provide the best entertainment center for the people who love
sing a song and prefer to have meeting in private, good atmosphere with different concept
and staff serve service and product with gentle and polite. Our new staff will train by our
professional staff. We believe that our business wills achieve a goal and be accepted by
everyone.
We have a higher quality service, a good atmosphere, more modern technology, and
more comfortable than competitors. We belief our customer will satisfy, comfortable and
impress in our service. People in Chiang Rai choose our karaoke is the first choice for
entertainment and relax.
Strategic planning
Our karaoke must have a plan to operate in each part for organize our business run by
follow our objective. It helps to fix our karaoke shop to growing by follow the plan in the
future. So, our karaoke shop use the strategy to plan our business successful by analyze both
of factors are internal environment and external environment factor that makes us to ready to
fight with other competitors.
Corporate level strategies
This is the strategy that we use for setting the way of karaoke business and make the
karaoke business follow our vision. We will start our karaoke business by learning everything
in our business and developing it step by step. When our business is stable, we can distribute
our business in each sector in the north of Thailand because it has a little karaoke business
like us. Then, we can access to the new customer and it is the same target market. It can make
our business gain more profit and it can show the growth of our business.
Business level strategies
This part is the strategy that focus on highlight of our business and it use for
competitive in a business for attract customer. We can attract the customer because our
company focus on one target market and respond our customer. We’re observing their
behavior and what they want. Then, we will make them satisfy of our service. Moreover, our
karaoke shop has a different from other that can make them to interest in our karaoke shop.
Our karaoke shop has many of services. In Chiang Rai, Our competitive have a good service
but they don’t have any functions that different. So, our karaoke has the advantage in this part
for attract them. Especially, the area in front of university has only one competitor. It is an
opportunity of our karaoke shop because our karaoke shop has a different style and we will
provide the better service for our customer.
Functional level strategies
This is the way to make our karaoke shop has the advantage of competitive. It is the
factor that helps our business successful by provides the best supplier and makes the
employee operate by follow the corporate and business level strategies follows;
1. Marketing mix strategies
We are using the 4Ps strategies are product, price, place and promotion. We’re
observing behavior of customer when they come to use the karaoke service of the competitor.
It makes us to gain more data to develop our business and it makes us to avoid the bad
situation in the future.
- Product
The most of customer like in the different of product and service. So, our business has
many style of product such as the theme of karaoke room, technology and service.
- Price
The price is the important factor that makes the impact of our customer. So, our karaoke
will set the fair value because our karaoke shop has many choices to provide them.
- Place
We’re select the area in front of Mae Fah Luang University because from the survey, in
Chiang Rai has many karaoke shop and most of shops located in the city of Chiang Rai.
Then, it’s far from the university and it’s not comfortable of our target market. The important
is it has only one competitive in the area that we select. So, this area is the best because we
can access our customer and can attract them to come to our shop.
- Promotion
Promotion is the necessary for our business because it can attract customer often use our
service. So, we will set the promotion that make them want to joy with us such as the
promotion like sing a song 10 hours, you can get the prevent form us.
2. Operations
In the operation of service, the important factor is the human resources of the business. In
our karaoke shop, the staff must care our customer. So, all of staff must have the training
before work. It helps them to have a good character and have the potential to manage, take
care customer including have a good relationship among people. The reason that we must
training is our karaoke shop want to make customer satisfy with our product and service.
3. Financial
Financial is the important factor that can measure our business growth or down. We’re
carefully to manage it because we must focus on risk that will occur in our business. And we
must operate it by make it has the balance in income and expense. So, it’s very important to
set the expense of the karaoke business and we must use the person who is the professional
for this part.
5’C strategic
1. Customer
We focus on the student of Mae Fah Luang University in Chiang Rai. So, if we
setting our company in this area, it’s good because it’s easy to make customer who is our
target market come to use our service. The purpose of our company that setting in front of
Mae Fah Luang University is Mae Fah Luang University has only one karaoke shop and
from the observe many students want to joy. Especially, they want to make some party
but it doesn’t have enough karaoke room and no more function. And our karaoke shop
can attract the customer because our karaoke shop can providing that they want and have
the special for them.
2. Company
We’re using the SWOT analysis for our company to measure that our company
will be going on. By analyze in each part and compare with other. Then, we will adjust it
to gain a maximum profit and least of risk business.
Internal
S
- Only one karaoke shop that have a
different from other in Chiang Rai.
- Only one competitor in front of
Mah Fah Luang University.
- We have many types of karaoke
room.
W
- We’re access only customer who
live around university.
O
- When our business stable, we can
distribute our branch.
- Less competitive of our location.
T
- If the end of semester, we will
decrease in income.
External
3. Competition
In Chiang Rai, it has a general karaoke shop. Our competition doesn’t have any
functions or it has a little to providing the customer. The most karaoke shops in Chiang
Rai are in the city and it has the same of theme. And the route between city and
university is far away from karaoke shop. So, it cannot provide the convenience for
customers who want to joy. Moreover, the location of our company can access the
customer who is the student more than in the city and our karaoke shop has many
functions to providing for them.
4. Collaborators
We have a supplier that supports our business and when we use a modern supply, it
helps our business make an income increase. And we can response the thing that
customer want.
5. Content
For our company use the PEST analysis to analyze the external factor follows;
P: Politic
Nowadays, there are many factors of political that occurred in our country but it does
not affect with our business. The reason is our business has a target market is a people
who love to sing a song. Mostly, our target market doesn’t interest about political; and
they are teenagers. So, they want to make their life funny. Then, our business can gain
the profit all of the times.
E: Economic
Nowadays, the karaoke is very booming because people like to sing a song. And our
location is related with target market. So, the number of people who comes to use our
service will increase. So, it’s the way that helps to upping the profit in our business.
S: Social impact
Our karaoke helps to create a new relationship between other because there are a lot
of people will come to use our service. So, it helps to create the participation among
people. Moreover, it helps to increase income for our business because our business likes
a society for people who love to sing a song.
T: Technology
We are developing in our technology and providing the modern technology for our
customer. In each week, we have to update in every part of business such as a new song.
Blue Ocean Strategy: BOS
Blue Ocean Strategy: BOS
Formulation principles Risk factor each principle attenuates
1.Increase in the number of branches 1.Select the best location
2.Focus on the satisfaction of customer 2.Lay off some employee
3.Take care and follow our customer
behavior
3.Update information
4.To set some strategy to attract customer 4.Increase in promotion and activity
Execution principles Risk factor each principle attenuates
5.Make a unity in the business 5.Always have a meeting
6.Planning for strategy 6. Carefully when set some strategy
Our karaoke shop is using blue ocean strategy to improve our plan in the future. We
have to developing product as a different from other by using a modern technology. We’re
providing the appropriate service for customer and try to make them satisfy with us. Our
target market chooses to use our service because we have a different style shop from other.
Our style doesn’t have in Chiang Rai and the price is not different from other. So, it’s the
interest for using the service.
Chapter 3
Market Analysis
Chapter 3
Market Analysis
General Environment Analysis
The general environment analyses show that a marketing manager must analyze
customer needs and choose the strategy that match with process. A big number that force the
marketing environment in shape to help organize your thinking, it’s useful to classify the
various forces. The direct environment includes customer, the company, and competitors. The
direct market environment or external market environment is broader and includes four major
areas: there are Economic environment, Technological environment, Political and legal
environment, and Cultural and social environment. The marketing environment it can’t
control because it is the external environment that why it’s useful to think of them as
uncontrollable. And the general environment analysis done for describes the factor that effect
to the business and how to select the strategy to match with the business to be stay alive.
Economic environment
Economic circumstance in Chiang Rai, Economic structure divided by GPP in Chiang Rai.
โรงแรม / ภัตตาคาร
2.72% ก่อสร้าง
3.81%อุตสาหกรรม3.98% ค้าปลีก 18.76%
เกษตร 31.83%อื่น ๆ 38.90%
www.klangcri.com/team/team3/data/.../API.../CAPIR_Aug_53.pdf
Chiang Rai province had a population of 1,255,387 people. The economy of Chiang
Rai, the growth rate increased slightly from last year 2010. Fiscal improved in the best way
because of the revenue collection during the fiscal year increase in 2010. Including with the
government is accelerating sending money, especially in the disbursement of government
subsidies and investment. In the part of the target group, the revenue of Mae Fah Luang
University’s student rearrange from low to high.
Technological environment
Now, Technology in Chiang Rai is modern such as 3G or Wifi. Everyone can live with
the social network by connecting with internet, its make a simple life and comfortable.
Technical skills and equipment affect the way companies convert an economy’s resource into
output. Technological change open up new opportunities, but it also poses challenges for
marketer. For karaoke business, the equipment (TV, computer, Microphone, Loudspeaker,
etc) must have been developed for satisfy customer need with convenience, clean, luxury, and
more function that are low costs and effective. So the opportunities of karaoke business are
easier for than in the past
Income
Less than 4000THB
4001-5000 THB
5001-6000THB
More than 6000 THB
Political and legal environment
The conditions in operating of Karaoke under the Act of Parliament,2008. Under
ministerial regulation, the licensing and operation of video, article 13. Said that:
1. Materials or equipment shall be suitable for the eyes.
2. Have a system sound and vibration insulating material as required by law.
3. Silent drug store.
4. No smoking or drug store.
5. Do not have an employee sitting with a customer inside the room.
6. Do not gamble.
Any person who violates, the registrar has the power to suspend the license within 90
days or revoke the license.
www.culture.go.th/moviehtml/datatestweb/datanew/gkmovie.pdf
Cultural and social environment
Nowadays, the karaoke businesses become a part of social’s entertainment. The
singer can control what song they want to sing by themselves. Karaoke are appropriate to a
group of friend, group of business man give rest, or family who want to spend the time
together. Because this is a good way for many people to make relationship that show the
human social should have society. So, this is a good way for everyone to spend a little time of
their life to have happiness because everyone cannot avoid the stress or problem in each day
life. Although, the problem it’s not disappear but it’s always diluted.
Summary of General Environment Analysis
The general environment must be concern in term of external factor because the
situation that cannot control must be able to realize that in present situation what position we
are and how to do for make the business continuing. The opportunities always occur for the
business but how we can analyze and manage the information that we have to be useful. So,
before we invested the business we must observe the behavior and characteristic of the target
group that we want. How to make them interested in our business and how to make loyalty.
Competition analysis
It is the main thing in business planning because it will help us to know about strength
and weakness of our competitors and also help us to change the bad situation to be the good
opportunities for us. We can analyze competition as follow;
Competitor Analysis
In Chiang Rai have less karaoke room because they don’t interesting and not enough
information about this business but now a day many customer they want to fine some place
that can enjoy and relax with friends. Although, in Chiang Rai have karaoke room but some
karaoke room they don’t have the quality machine, don’t have new song, not enough room or
space for provide to customer. So we will have less competitors and all of them can separate
like this.
1. Direct Competitor
There are the competitors that compete with us in the same market or have the same
target market like us and they also have the same product and service like our company. From
the research we know that in Chiang Rai has company that provide product and service like
us follow these;
Ban Karaoke
Ban Karaoke located in the ban du and open 17.00 pm until 02.00 am in every night.
They provide five rooms for the customer. All song always updated but they always have
problems about the electric such as microphones, Televisions, etc. The price is 150 baht /
hour. The target group they focused only the student at Rajabhat University.
Fah Thai Karaoke
Fah Thai Karaoke located in the Fah Thai market and open 17.00 pm until 00.00 am in
every night. They provide 3 rooms for customer. The song not always updated and the
machine is very poor such as in one room they provide 2 microphones but can use it only one
and some room the furniture is broken and can’t use. The price is 120 baht / hour.
2. Indirect Competitor
There are the competitor who compete with us by select the different target market but the
characteristic of their product and service is like our company and from the research we will
know that in Chiang Rai there are many kind of karaoke room services as follow;
Big C
Central
Apia Square
Come Thong Karaoke @ Inn come Hotel
Bowing Karaoke @ Bowing Center
Red rose Karaoke @ Red rose Hotel
Come Thong Karaoke @ Inn come Hotel
Customer Analysis
The whole population of Chiang Rai is 1,227,317*1
only in Amphor Muang is
141,291*1
. Target market that our company chooses is the student at Mae Fah Luang
University, person who love to sing songs and like to arrange party. From the research we
will know that this kind of customer the most of them age around15-25 years old*2
and some
of them are the people who are working and always set party to meet with their coworker.
From this characteristic of our target market we can adapt all of this information to
improve our product and service in order to satisfy and attract the customer from our
competitor.
*1 - http://www.dopa.go.th/xstat/p5157_01.html
*2 - http://dek-d.com/content/all/15633/
STP analysis
Segmentation
From the questionnaire, our group uses the basic of marketing segmentation by
Demographic segmentation is the divided the segmentation by use the normal information
of population such as age, level of education, and income.
Behavioral segmentation is the divided the market segment by attitude of user.
Psychographic segmentation is the divided by lifestyle.
The result of questionnaire is
Education
Freshmen
Sophomore
Junior
Senior
Age
Les than 17
-
-
24 up
Income
Less than 4000THB
4001-5000 THB
5001-6000THB
More than 6000 THB
What kind of your music do you like?
Pop
Ska
Modern
Rock
Hip Hop
Country
Which day that you going to Karaoke?
Monday-Fridat
Saterday-Sunday
Afther exam
Holiday
Special day
Do you agree should be provide alchohol or not?
Agree
Disagree
The market segmentation ‘s benefit are the company know about the need and
satisfaction’s scope of the each segment and know about the opportunities in the market or
the position of product suitable with the target marketing. In addition, the company can use
the market segmentation for the standard of market targeting.
Market targeting
Is the evaluation and choose the target that have two steps are
1. Evaluating the market segment, we will study about three side
segment size and growth
Segment structural attractiveness
Company objective and resources
2. Selecting target
Our business‘s market targeting is students and the people who want to sing a song and
stay around Mae Fah Luang University area like a concentrated marketing. Almost student
are sophomore or second year and junior or third year, they are between18-23 years old and
there are income since 4,000 baht up. And they like to sing a song at karaoke around 78
percent and for the attitude of users are relaxation and entertainment. And almost their
lifestyle is pop, modern and rock includes the students around 68 percent, they want alcohols.
Product position
Low High
Sing-A-Song Karaoke
Low Fah Thai Karaoke
Ban Karaoke
High
Product position is the activity to determine the product and service of our business
for increase the value and fine the important position in customer’s mind in our business.
About Our karaoke, the located in front of Mae Fah Luang university area so there
are many student and people interested to our karaoke. For the policy of our business, we
establish this karaoke for full entertainment and relax, we preserve alcohols to students who
more than 18 years old. In addition, our karaoke has food court, coffee shop and the clean
toilet for every student who uses our service. Sing-A-Song Karaoke; we are high technology,
update new songs all time, diversity theme and service mind for high expectation of
customer.
Pri
ce
Quality
Marketing Mix strategy or 4Ps
Marketing mix is variable of the markets that control the company for response the
target group’s need. There are four P are
1. Product
Our product is karaoke business for the student and the person who want to sing a
song around Mae Fah Luang University. Our karaoke has three floors; the first floor is food
court, coffee shop and bakery that we open for other seller to rent. For the second and third
floor are the karaoke rooms. Our karaoke has nineteen rooms and three size by 4 rooms for
room size L around 11-20 persons per room, four rooms for size M that around 5-10 persons
per one room and last room is size S has eleven rooms for 1-4 persons. For the theme of each
karaoke’s room, they are diversity theme and full entertainment to response most of student’s
need who want new things and they love to take a photo. Sing-A-Song karaoke has nineteen
theme by one theme per one room and the theme’s room are boxing room, concert, under
water, heaven room, ancient time, bed room, bath room, library room, restaurant room,
musical room, movie room, class room, field room, cartoon room, nature room, flower room,
love room, artist room and princess room. Our karaoke is full option to serve consumer
because we provide alcohol for who want to drink or enjoy with their sing a song but we
provide the person who are 18 years old up. In addition, our equipments are high technology,
more efficiency, meet the standard, update new songs all time and always improve our
karaoke.
2. Price
For our karaoke, we set the price from the market price in low price for room size S,
medium price for room size M and high price for size L because these rooms are serve
consumer with convenience, comfortable, full of entertainment and when customer
comes, we will serve them with service mind. The calculation the price comes from
market price1 that suitable for students and when customer comes, we will serve them
with service mind.
http://karaoke.co.th/index.php?option=com_content&view=article&id=16&Itemid=111
3. Place
The karaoke located in front of Mae Fah Luang University in Chiang Rai, near Por Pla
restaurant. Sing-A-Song karaoke location is near the student’s dormitory, nearby road side
and there is car parking so it’s easy to come because student can walk and ride motorcycle to
Sing-A-Song karaoke.
4. Promotion
The Sing Ka Song promotes company in many ways for spread our business to be well-
know through the online media, internet, advertisement or word of mouse. In another way we
promote via the local and poster to tell them what promotion our business have. In the first
time, we have promotion for three hours and one hour for free. After our business constrain,
we prove the promotion to every Tuesday discount for ten percent. For special day such as
birthday we discount for twenty percent. In addition, Sing-A-Song karaoke has promotion
about alcohols by three of Beer Chang is 129 baht and Blend 285 with mixers are 299 baht.
Sales forecast
Target market of Sing A Song Karaoke is Mae Fah Luang University Students and
Chiang Rai people. In 2010,Chiang Rai provice have population around 1,198,218 people.
(http://www.thaiwaysmagazine.com/chiang_rai/chiang_rai_glance.html) We provide this
karaoke for the people who would like to enjoy and have fun with reasonable price. It’s place
for meeting, party and escape from the stress. You also enjoy with delicious food and nice
atmosphere. We forecast the customer will come to use our services as follows:
Room size S M L
Amount of room 11 rooms 4 rooms
4 rooms
Contain customer 1-5 people 6-10 people 11-20 people
Price 250 THB/hr 350 THB/hr
450 THB/hr
Opening times 10.00-02.00 AM 10.00-02.00 AM 10.00-02.00 AM
16 hours a day 16 hours a day 16 hours a day
We also provide the 1st floor for monthly rental services. This area use for food center. It
divides into nine booths. The cost for rental is 7,000 Baht a month.
The total revenue per month is 63,000 Baht
The total revenue per year is 756,000 Baht
We also sell or serve alcohol to customers following:
Blend 285 299 Baht
Blend More 399 Baht
Red Label 999 Baht
Chang beer 45 Baht
Leo beer 50 Baht
Singha beer 70 Baht
Sale Monthly
Sales by Year
Sale Forecast Five Years
Sale Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Karaoke room size S 11,160,000 12487500 13447500 15,367,000 14,077,500
Karaoke room size M 4,851,000 5481000 5876000 7,686,000 7,644,000
Karaoke room size L 4,617,500 17968500 6615500 9,009,000 9,396,000
Liquor 645,780 776552 714081 1075850 1035540
Beer 786,750 1017950 813309 977960 1083250
Booth rental 780000 780000 780000 780000 780000
Mixer 302400 302400 302400 302400 302400
Subtotal Direct Cost of Sales 3201630 3659902 3466340 4212060 4288790
Marketing Expense (Sales Incentive)
Sing A Song Karaoke have to pay for equipment, licenses and promoting as following:
-Karaoke audio systems equipment: consist of Mixer, Power AMP, Power Mixer,
Speaker, Wireless Microphones, Projector, Lighting and LCD TV.
- Music Copyright: The expense of music copyright depend on the record labels.
There are GMM Grammy, RS Music and Sony Music. If record labels are famous, it will be
higher price.
- Karaoke furniture: There are 19 rooms with different concept so we need the
several of furniture to complete our concept that why we choose concept furniture company
(http://www.konceptfurniture.com)
-Advertisement: We create own website and Facebook fanpage that we can update
new information. It is way to contract and get feedback from customer so they can give us a
complaint or compliment via website and facebook. We also promote our karaoke by using
advertisement and brochure.
-Marketing Research: We create marketing research questionnaire for our customers.
We would like to know what customer want and make them satisfactions.
-The internet service: Karaoke offer internet service to customers. We use broadband
high speed internet which is high quality internet that always available for customers. We
need to pay for internet 1,000 Baht/month
- Liquor tax: We have to pay tax on alcohol products 1,100 Baht /year.
-Signboard tax: It is tax for signs. Signs are one of the capital assets of a company.
Therefore, it is a charged tax for all companies that have signs. The signboard tax is very
unique itself, because it has specific taxation methods and rules. There is no uniform charge
based on the sign's size. Taxes are paid yearly and are based on the language used on the sign.
We use only foreign language or foreign language and figure so we need to pay each 500cm2
for 40 Baht. For our signboard tax we pay for 200 Baht/Year.
-Electricity charge
Electricity / day 1,495.3 Baht
Electricity / month 44,859 Baht
Electricity / year 538,308 Baht
-Wage payment
Wage payment/Month =76,000 Baht
-Wage payment/Year =912,000 Baht
-Water charges : We have to pay for water charge 150 Baht/Month.
Chapter 4
Investment
Chapter 4
Investment
Pre-Operating cost
Landscape
1 600,000 Bath
Creative and planning 60,000 Bath
The company establishment permission2 50 Baht
Install telephone3 4,004.5 Baht
Other 20,000 Bath
Total 684,054.5 Bath
http://duckfamily.siam2web.com/1
http://www.dbd.go.th/mainsite/index.php?id=1012
http://www.ttt.co.th/th/index.php?option=com_content&view=article&id=56&Itemid=663
Cost Investment
List Price/Unit No. of Unit Price Percent
Land 7,600,000 49.030%
Building and decoration 3,550,000 22.902%
Air Condition 12,600 19 239,400 1.544%
Table 750 19 14,250 0.092%
Sofa long 264x264x70 cm. 25,600 8 204,800 1.321%
Sofa medium 169x74x65 cm. 3,990 11 43,890 0.283%
Disco light 390 19 7,410 0.048%
Standalone Karaoke-Atom Intel 14,500 19 275,500 1.777%
Mixer 7,990 19 151,810 0.979%
Power Mixer 17,200 19 326,800 2.108%
Power Amp 19,200 19 364,800 2.353%
Speaker 15,800 46 726,800 4.689%
Signal Processor 22,500 19 427,500 2.758%
Wireless Microphone 9,900 23 227,700 1.469%
Projector 19,900 4 79,600 0.514%
Motor Screen 9,500 4 38,000 0.245%
Case CPU 9,000 19 171,000 1.103%
TV LCD 59,990 15 899,850 5.805%
Keyboard 390 19 7,410 0.048%
Mouse optical wireless 390 19 7,410 0.048%
Dining table 510 15 7,650 0.049%
Chair/sofa 2,500 2 5,000 0.032%
sofa(apple style) 1,200 3 3,600 0.023%
List Price/Unit No. of Unit Price Percent
Table(set)black-pink 3,120 6 18,720 0.121%
Rack 1,500 4 6,000 0.039%
Refrigerator(HITACHI) 28,990 1 28,990 0.187%
Refrigerator(TOCHIBA) 5,290 1 5,290 0.034%
counter 4,500 2 9,000 0.058%
office table 7,000 1 7,000 0.045%
Bar chair 1,000 4 4,000 0.026%
telephone 1,500 1 1,500 0.010%
Calculator 12,500 1 12,500 0.081%
white light 32 36 1,152 0.007%
light orange 25 100 2,500 0.016%
Ventilators 970 21 20,370 0.131%
glass hi-ball 160 19 3,040 0.020%
Ice bucket 21 19 399 0.003%
The grip of ice 5 19 95 0.001%
Total 15,500,736 100%
Depreciation cost
Operating Cost
Raw material cost
List Price/Unit No. of Unit/month Price
Alcohols
- Blend 285
-Ben More
-Red Label
2208
3840
5700
5 casket
5 casket
5 casket
11,040
19,200
28,500
Beer
-Chang
-Leo
-Singh
450
480
624
60 casket
60 casket
60 casket
27,000
28,800
37,440
Books
-Magazine
-Newspaper
50
10
4book
90 book
200
900
Ice 40 2 80
Soda 118 60 Lung 7,880
water 120 60 Lung 7,200
Coke 168 60 Lung 10,080
Total 178,320
Machine/Tools/Equipments
Standalone Karaoke-Atom Intel
Brand: IDN
Sound: HD Audio(HightDefination
Audio(Rezltek)
Picture: VGA,DVI, SVDO, AVDEO
Drive: CD, VCD, DVD, USB Port
Price: 14,500B.
Units: 19
Mixer
Brand: YAMAHA
Type: MG82CX
Support:8 Input (4 Mono + 2 Stereo)
Price: 7,990B.
Units: 19
Power Mixer
Brand: YAMAHA
Type: EMX212S
Support:12 Input (8XLR Stereo input)
Price: 17,200B.
Units: 19
Power Amp
Brand: YAMAHA
Type: P2500S
Support: 250 W x 2 (8 Ohms)
Price: 19,200B.
Units: 19
Speaker
Brand: TOA
Type: TOA HX-5B
Support:Compact Line Array Speaker
Price: 15,800B.
Units:46
Signal Processor
Brand:Focusrite
Type:OctoPreMkII Dynamic
Price: 22,500B.
Units: 19
Wireless Microphone
Brand: SHERMAN
Type: MIC-9401
Support:80 Channels
Price: 9,900B.
Units: 23
Projector
Brand: Vertex
Type: Vertex XD-2120
Pixel: 1024x768(XGA)
Picture: 23"-300"
Price: 19,900B.
Units: 4
Motor Screen
Brand:GyGAR
Type: M-120
Picture: 4:3, 72"x96" (120"Diag)
Price: 9,500B.
Units: 4
Case
Brand: DELL
Type: Core 2 Duo
Support:1.60 GHz – 2.93 GHz Price: 9,000
Units: 20
TV LCD
Brand: LG
Support:3D Full HD 1,920x1,080
Sound: 3D surround
Price: 59,990B.
Units: 18
Keyboard
Brand:Atake
Type:Unicon
Support:Windows XP/ME
Price: 390B.
Units: 20
Mouse Optical Wireless
Price: 390
Units: 20
Sofa (Long)
Brand: FORM
Size: 264x264x70 cm.
Price: 25,600
Units: 8
Sofa (Medium)
Brand: JAMES
Size: 169x74x65 cm.
Price: 3,990B.
Units: 11
Air Condition
Brand: Central air
Type: IF-12
BTU: 12,099
Price: 12,600
Units: 22
Table
Color: Black
Size:21x36”
Price: 750B.
Units: 19
Disco Light
Size: 6”
Price: 450B.
Units: 19
Dinning Table
Color: Red-White
Price: 510B.
Units: 15
Chair/Sofa
Color: Pink
Price: 2,500B.
Units: 2
Sofa (apple style)
Color: White-Yellow
Price: 1,200B.
Units: 3
Table (set)
Color: Black-Pink
Price: 3,120B.
Units: 6
Rack
Color: Colorful
Size: 317x423
Price: 1,500B.
Units: 4
Refrigerator
Brand: HITASHI
Size: 590x615x1, 798 mm.
Price: 28,990B.
Units: 1
Refrigerator
Brand: TOSHIBA
Type: GR-B145Z
Price: 5,290B.
Units: 1
Counter
Color: White-Pink
Size: 1x1.5 m.
Price: 4,500B
Units: 2
Table (set)
Price: 7,000B
Units: 1
Bar Chair
Color: Red
Price: 1,000B
Units: 4
Telephone
Brand: AVAYA
Type: 2410
Price: 1,500B.
Units: 1
Calculator
Brand: Casio SE-C300
Type: SE-C300
Price: 12,500B.
Units: 1
Ventilators
Brand: Panasonic
Price: 970
Type: FV-20AUT3
Units: 21
Glasses
Brand: Ocean
Price: 160 per 12
Unit: 19
Ice bucket
Price: 21
Unit: 19
The grip of ice
Brand: Anchore
Price: 21
Unit: 19
Fluorescent
Brand: OSRAM 36 watt
Price: 32
Unit: 36
Chapter 5
Operation
Chapter 5
Operation
Production and Operations Analysis
Product Characteristics (in detail)
Sing-A-Song karaoke has 3 sizes of rooms that include with S, M, and L. size S has
11 rooms, size M has 4 rooms, and size L has 4 rooms. Size S can contain people around 1-4,
M 5-10, and L 11-20 persons. All of rooms we has 19 rooms in our karaoke. In each room
have many themes and many feeling to serve customer to feel fun and happy. We have high
quality of products and services because we use good products. The songs will update every
week that more than 50,000 songs. The equipments are high standard and high technology. In
the first floor, we have food service and have a library rooms to serve customer for eat meals,
drink coffee, and read books.
Customer Station
The customer can use the phone in room to called servicer and ordered food and
beverage deliver into room.
Device for songs
The customer can select the song by use remote control and write the name of song in
computer or find the new update songs in the front of desktop wall.
Audio systems
We provide the high quality audio to the customer included microphone, mixer,
amplifier, and loud speaker that set in each room.
Video systems
We provide the high quality products to serve customers that have LCD and projector.
Reception Station
We have a receptionist to booking rooms, check-in, check-out, and help customer to
use with our services in the front of up stair.
For the services, Sing ka Song serves the best services to the customer as follow;
Have food and drink service that have many kind of foods, for example,
Thai, Italian, and bakery zone to serve customer with full service in both of
entertainment and food
Allow alcohol and food from outside in to the rooms
High quality and high technology of equipments
Customer can call to booking the rooms before 1 hour
Have special promotion and special price for special day
Can ordered the food to deliver in the rooms
Free Wi-Fi
The songs will update every week
Have special promotion to Sing-A-Song’s member
If customer has a problem with audio system, they can call to server or
servicer to help them to solve it
Specification and Feathers
Sing-A-Song karaoke have many style of rooms in each room to make customer to
feel fun and satisfied. We have 19 rooms and we have 19 themes in each room as
follow;
Size S has 11 rooms including with;
Boxing room
We set the rooms to be boxing room that make customer to feel like stay in boxing
ring. We will draw the picture of famous boxer on wall and use light with red and blue color
and have mitt to be furniture in this room.
Concert room
We design this room to be concert stage that has a light like a disco to help customer
feel their performing in concert. We use black color on wall and have small decoration and
draw the audience on the wall.
Under water room
This room use blue color paint on the wall and have a small aquarium to show about
the fish and water animals. That make customer feel to stay in a under water.
Heaven room
A room use white color to paint on wall and have furniture to feel like a heaven. We
draw fairly in both of men and women on the wall. And we will provide a beautiful tree in
this room.
Ancient time room
A room likes a history room that concludes with ancient things and ancient attraction
to serve customer return to past time. The furniture will be use old furniture to decorate.
Bedroom
This room will be bed room and we use white color on wall. We have a bed to stay in
the corner of room and have sofa to sing a song and the customer can bring the picture to put
in this room. Also, they can write to say something to others on the wall that we provided.
Bath room
We provide this room to make customer feel fresh. The decoration will use the item in
the bath room such as shampoo, soap, toothbrush, etc. we have a zone to washing hand and
have a model of bathroom in this room.
Library room
We have many books in the room and have much type of books such as fantasy books,
cartoon books, and etc. We provide a table and a chair to read books and have sofa in the
corner to serve customer bring the books to read. Also, customer can bring the book to reads
and we not allow bringing books to out of room.
Examination room
The room use white color on wall and have white board and clock to be decoration.
And have many tables and chair in the room. Inside, the front of door have name of people to
have the right to test in exam. On the table have pencils, rubbers, and pens to put on it. That
make customer like to stay in exam room.
Musical room
We provide the instrument in the room such as drum, guitar, ukulele, violin to serve
customer to play it. We have a cord of song to encourage customer to fun with musical
instruments.
Movie room
We provide the room to be small theater that has many movies to serve for customer.
The wall use dark red and black color to paint on wall and have picture of famous actors on
wall too.
Size M has 4 rooms contain with;
Classroom
The room like a class room to study. We have a white board and the books put on
table. At the wall we draw the teacher will teaching in the wall and make customer feel they
will studying.
Casino room
We provide the room to be a small casino. We have slot game to serve in this room
and have poker to be decoration. The wall use black color and use yellow light in the room.
Cartoon room
The room draw the character of famous cartoon such as doreamon, pooh, kitty, and
barbi. Also, they have the dolls in the room and not allow bringing it to outside. The room
will colorful and make they are like a young again.
Nature room
This room use green concept to design a room. We have a chair and a table. The table
and chair have tree growing inside and we provide a small tree to grow in this room to make
like a forest in town.
Size L has 4 rooms contain with;
Flower room
In the room have many kind of flower such as roses, Lilly, orchid, and etc. we provide
the room to be a small flower garden and have a ground to picnic.
Love room
A room use red color to paint and draw a heart on the wall. Furniture use red color
and customer can bring to photo to paste on the wall and can write on wall that we provided
for them.
Artist room
The room will have the photo of artist and on the wall we allow the customer can
draw or paint on the wall. So, that encourages the customer to participate with activities in the
room.
Princess room
This room is very luxury because we will use luxury furniture to decorate in this room. It
has a mirror, comfortable sofa, and wardrobe in the room. And we provide the princess cloths
for customer can take a photo.
Services Process
In our business, we have high quality in both of products and services. So, that make
we have good staff to care and solve when the equipments has a problem. We divided into 2
parts as follow;
Front office
This part is communicated directly with customer. When the customer come to use a
service they will have high contact with customer, for example, booking the rooms, ordered
food and drink, check-in and check-out room. The customer can communicate with front
office to help anything.
Back office
This part not communicated directly with customer. They are just to solve when the
equipment has a problem that low contact with customer. For example, the staff or technical
staff they just have a role to fix and solve systems when it had a problem.
Location
Sing ka Song karaoke will locate in the front of Mae Fah Luang University in Chiang
rai province that near Po Pla reataurant. There are 1,600 square metres and the size of
building has 540 square metres that have 3 floors.
Facility Layout
In the first floor, we have 2 zones. First is zone for eating and second is zone for relax
and reading. We have 6 restaurants to serve food to consumer and have area to eating. In
library zone, we provide many books for consumer can bring to read it. In side of library
room, we have bakery shop and coffee shop in that room. The consumer can use high speed
internet in library room and free wifi all of building. Before consumer entrance to sing a
song, they must booking the room before and money at the counter. Then, if the audio or
equipment has a problem they van call technical to see and solve it. And they can call to
ordered food to deliver to the rooms, its free services.
In the second floor have 8 karaoke rooms. We have 4 rooms of size L and 4 rooms of
size M. Size L has flower room, love room, artist room, and princess room. And size M has
classroom, casino room, cartoon room, and nature room. Also, in this floor we sell beverage
and snack to customer. Size L contains people 10-20 persons and size M contains 5-10
persons. Moreover, we provide the area to relax too.
In the last floor, we have 11 rooms all of rooms are size S. It can contain people
around 1-4 persons in each room. In this floor have boxing room, concert room, musical
room, heaven room, under water room, bedroom, library room, examination room, bathroom,
movie room, and ancient time room.
Logistics Management
Our company doesn’t have the logistic because our service can’t move. We are
providing services at the company and make customer come to use our service. So,
our company hasn’t the human resources management in many departments and it’s
the way to make the company avoiding the rampage.
Facility Management
The location of our company is in front of Mae FahLuang University. It makes
the effect about noise pollution to other people that living in that area. So, we’re set
the role for our company by setting the time to open and close to avoid the conflict
with other. However; our company has the soundproof panel for keeping the sound in
each room.
Chapter 6
Administration
Chapter 6
Administration
Direct labor
Our company is provide service to the customer so we will don’t have production
process. So we will don’t have raw material cost and direct labor cost. But we still have
manufacturing overhead and we estimate the manufacturing overhead cost per month as
follow:
1. Salary of employees
Number of
employee
Salary per month Total
Receptionists 1 persons 7,000 per person 7,000
Accountant 1 person 8,000 per person 8,000
Maintenance 2 persons 7,000 per person 14,000
Manager 1 person 15,000 per person 15,000
Staffs 2 persons 7,000 per person 12,000
House Keepers 2 persons 5,000 per person 10,000
Security 1 person 5,000 per person 5,000
2. Repair and Maintenance 5,000
Total 76,000
Administrative
o Electricity / day 1,495.3 Baht
Electricity / month 44,859 Baht
Electricity / year 538,308 Baht
o Copy Right’s Alcohols 1,100 Baht /year
o Water supply 150 Baht/month
o Telephone bill2 300 Baht/month
o Internet1 1,000 Baht/month
o Copy Right’s music 229,200 Baht /year
o Advertisement tax3 200 Baht/year
o Advertising 10,000 Baht/year
Chapter 7
Financial Analysis
Chapter 7
Financial Analysis
Chapter 8
Risk management
Chapter 8
Risk management
External Risk
PEST Analysis
Political
Political factors deal with the degree to which the government influences and controls
businesses. For a karaoke, the most important factors will be about the best karaoke song and
provide nice service. A karaoke will be affected by factors that affect other businesses as well,
such as copyright, tax rates and labor laws. We might have to face is with the changing of the
licensing laws, so we need to learning and following the laws for karaoke.
Economic
Economic factors are extremely important to a karaoke. This is because karaoke are a
thing that not a necessity, people must have the disposable income to spend at a karaoke.
Economic growth is, therefore, extremely important for karaoke. A karaoke will also be
affected by the economic factors that affect most businesses such as the cost of capital and
inflation. Regression of economic also against the karaoke business as the entertaining
market, not always but, gets easily affected by economic decrease so that means customers
will get low income and they have to save their budget to use with other thing that more
useful. Our target is student so they might not able to afford the room fees and service charge
because they still earn money from parents.
Social
The social factors of a market will have a huge impact on a business. The important
social factor is the attitude that people have toward karaoke. Some people might have
negative thought that karaoke is a dangerous places and should never visit.
Technological
The change in technology from technological has affect to the karaoke business, for
the fast updated songs. Otherwise, karaoke singing mobile application prevents individuals to
seek karaoke alone, as we are living in the smart phone era that provides diverse alternatives
in entertaining market approve that competitive force works against the karaoke business.
Furthermore, by looking into the components of competition, low entry barrier, high
bargaining power of buyers with low switching cost and high bargaining power of suppliers
with few karaoke system suppliers, high existing rivalries, and high substitution possibilities
support the reason that competitive forces work against the karaoke business. Regulatory
forces work for the business as it is under free and fair competition.
Five Forces Model
1. Threat of new entry
The threat of new entry is a normal level because in the future our business
may purchase the copyright from the international country. Our karaoke has an
international song to respond our customer. Our karaoke will set the promotion and
develop in our service to be better for make the customer royalty. In Chiang Rai, it
has not karaoke center that including all of service as our karaoke. Therefore, our
company will create a relationship with other copyright company to avoid of risk in
loss of song.
2. Rivalry between exiting competitor
The rivalry between exiting competitor around our karaoke is low level. Our
karaoke has the competitor in direct and indirect. However, it does not affect with our
business because the location of our company is in front of Mae Fah Luang University
that is nearest with our target market. Our karaoke has the identity of style in karaoke
room such as a different theme and a quality of equipments. Our karaoke may set a
new strategy to attract customer and develop our karaoke such as promote our
business and make the opportunity for customer to comment or request many things
on fan-page website. In addition, our karaoke is providing the service that customer
want because we are survey of their need before.
3. Substitute product
The substitute product is low level. Due to it has jukebox karaoke, karaoke
machine. Mostly, it is the substitute product of karaoke but it is not the same with
karaoke shop if they sing a song at home. In addition, our target market is student.
They are not purchasing the karaoke machine or using the jukebox service. The
reason is they want to sing a song with their friends and they want to have the
freedom of sound. Our karaoke is keeping the noise and it does not affect with people
around that area.
4. Bargaining Power of suppliers
The bargaining power of suppliers in our karaoke is high level because we are
purchasing product in a lot of numbers. And it has a lot of shops to providing about
the equipment. And the costs of products are not difference with the general market.
When our business has an opportunity to bargain equipments and it makes the profit
when we can reduce our cost of goods.
5. Bargaining Power of buyers
The bargaining power of buyer is low because our karaoke business has a
price as normal rate. And our business is fixed the cost of each room that customer
does not bargaining. Our karaoke has the advantage because it is only one direct
competitor in front of Mae Fah Luang University. In addition, our business is focus on
student that they want to enjoy and party with their friends. Including, the service in
our karaoke has a quality to provide our customer.
Internal Risk
Risk Description Solution
1. The problem of quarrel and
fight
When customers drink alcohol
and get drunk, they might
quarrel and fight with each
other. It also has effect to other
customers. They might feel
insecure and bored of this
situation.
We have a Security Guard to
take care of and secure all
customers when they come and
use our service.
2. Income uncertainty Usually, there are large number
of customers on holidays and
Friday until Sunday because it
is meeting time for friends, co-
worker and family etc. low
number of customers on
Monday-Thursday. The
weather conditions and rapidly
climate change in rainy season
also has effects to circulation.
We have a plan and money for
prevent loss from income
uncertainty
3. Employment ability We have to train employee
every year to maintain the
quality of service.
Send employee to have a
training course every year.
4.Natural disaster The risks might occur at any
time such as earthquake, flood
and conflagration. This is
unpredictable risk.
Our karaoke will buy the
insurance which assure that we
will not get lose from those
disaster.
5.Compettitor We have competitor at Fahthai
but they have low quality than
our karaoke.
-The way to make our karaoke
differentiation is provide the
various style and high quality
of rooms and service to meet
customers need.
-The price is reasonable.
-Sing A Song karaoke located
in front of Mae Fah Luang
University and our target
market is Mae Fah Luang
University Student.
Sale Decrease
Interest increase
Cost/ Expense
Chapter 9
Conclusion
Conclusion
Sing-A-Song Karaoke located in the front of Mae Fah Luang University, Chiang Rai
province. Inside the building, we provide 3 floors to serve customer to use it. In the first floor,
it is a food court and library zone and serves with coffee and bakery in that zone. In the next
second and third floor, we separate the rooms to be 3 sizes include with S, M, and L sizes. We
have 19 karaoke rooms and each room different in theme and decoration. In each room, we
provide many themes to serve customer to choose and use it, for example, boxing room,
concert room, haven room, bedroom, examination room, etc. Every room will different in
theme and decoration because we want to make difference from others. We provide beverage
zone for sell snack, alcohol, and beer for customer. Our vision wants to be a leader of karaoke
entertainment in Chiang Rai province by provides modern, technology, facility, and high
quality to customer. It is like our slogan “Think of entertainment – high quality services,
thinks of Sing-A-Song Karaoke”.
Most of target markets are general customer who likes to sing a song, but we focused
on the students who study in Mae Fah Luang University because our business located there
that makes us concerned it. We will study about the characteristic of Chiang Rai people by
use STEEP strategy to research and analyze the data. Our competitions are not much in
Chiang Rai province because they not have high quality with equipment and they not have
special thing to make different in their business. So, that make us can have more advantage
better other competitors because we have high quality with equipment, good services for
customer, and we good system to booking when the customer will use our services. Before
we want to study to do this project, we will survey to ask students in Mae Fah Luang
University about their opinion for this project. And most of them want to have karaoke in the
front of their university because it can be the place for relax and meeting their friend.
In financial statement, sales forecast will be increase in every year because we have
more customers to use our services. And that make us to get high benefit when to do this
project. It can show for the investor who wants to invest in this project, your money will not
lost because we study in deep detail to offered this project. We will calculate everything about
financial statement to show income since open business to next 5 years. That can make the
investor confident with this project when they want to invest.
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