Coffee Cafe' at Doi Mae Salong

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PROJECT

COFFEE CAFE AT DOI MAE SA LONG

BY

KRISSANA ANUTARAKUL

5031205124 TOURISM

PRESENT

Aj.Chaiyawat Thongintr

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Preface

Coffee is a kind of drinks that can help to get refresh and relax. So it is very popular and

famous for everyone. For example Thai tradition coffee that sale every place in

Thailand you can access to buy coffee is very easy. Present, coffee shop is becoming

popular for consumers want identity of taste, smell, colors and ingredient. Manufacturer

has adjusted the various formulas to prefer customers. And use good quality materials

and focus on clean production process.

Project Feasibility Study and Evaluation is expected that the studying on this

project feasibility study will help any people who wanted to start coffee shop business

and add skill process, Strategy protect and decrease the risk factors lose of investments,

competitor until successful coffee business.

Ruay Rin Krin Sheewa Coffee shop

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Executive Summary

I choose to do this business that of coffee shop because coffee is the drinks that serve

for everyone. That people like it, but they wants to drink in relax place If you want to

drink coffee, you choose to drink in coffee shop you can relax and several of identity of

taste, smell, colors and ingredient and our shop have other drink and bakery serve for

you too. The Ruay Rin Krin Sheewa presents a identity of taste, create quality product

in menu, because I use the best coffee seed and tea leaf from local area (doi mae salong)

Doi mae salong has a best climate and good landscape. Has a lot coffee seed and tea

leaf throughout the year. This coffee is good quality material that can be readily. And

products support from the local community. Also, Doi mae salong is attractions. The

visitors are almost in winter season. The located of Ruay Rin Krin Sheewa is set at heart

of doi mae salong near 7-11 everyone can find our cafe, those areas many guest house,

hotel and convenience stores when tourists come to Doi mae salong they need to relax

from tired of drive a car long distance to Doi mae salong. Concept of café is

contemporary style. My business prefers serviceis Wi-Fi high speed internet is available

anytime. Everyone can enjoy and unimpressive my business.

Project Objective

To study the feasibility of the coffee café market.

To study the possibility of coffee café finance.

Benefits of Project

Determine the feasibility of the market, financing, and technical structure of the

agricultural storage.

To guide line the case study of whom that interest investment.

Knowing the situation and the trends of coffee café, understanding behavior of

customer, and be able to select and identify the right customer.

To be able to calculate profits and expenses, and find the way to get maximize profit.

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Table of contents

Contents

Chapter 1 ....................................................................................................................................... 6

Chapter 2 ..................................................................................................................................... 11

Chapter 3 ..................................................................................................................................... 27

Chapter 4 ..................................................................................................................................... 48

Chapter 5 ..................................................................................................................................... 58

Chapter7 ...................................................................................................................................... 80

Referent! ...................................................................................................................................... 85

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Chapter 1 Introduction

RUAY RIN KRIN SHEEWA

RICH IN TASTE CLASSIC IN STYLE

CAFÉ AT DOI MAE SALONG

Background and significance of the project

First I want to tell you about my location Doi mae salong. Doi Mae Salong Mountain is

located in Chiang Rai province, the northernmost province of Thailand. At an elevation

close to 1,800 meters, it is one of the highest peaks in the province and commands some

breathtaking and far-reaching panoramic views. When the mist comes, the views change

dramatically, especially at sunrise or sunset. The air is crisp, cool and refreshing all year

round.

Doi Mae Salong mountain is unlike any other area found within Thailand . The

mountain is unique not only for its beautiful alpine-like landscape and climate, but also

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for its short, but intriguing history that has led to a distinctive and mixed population to

settle there. The origins of the Mae Salong community go back to 1949. During that

year, after Mao Zedong's communist party victory in China the defeated KMT army

escaped to Taiwan, except for the 93rd Division.

They instead fled to Myanmar (Burma). From there they later on were expelled and

were granted asylum in Thailand. The Thai government thought it would be a good idea

to have a well trained, well armed and organized unit at the Myanmar border to stop the

smuggling of opium into Thai territory. The Chinese division settled in Mae Salong,

directly at the Myanmar border and built a village right onto a mountain ridge. As a

result, most of the villagers today are ethnic Chinese and direct descendents of the

KMT.

Similar to Doi Tung mountain, Doi Mae Salong mountain benefits from ideal conditions

to grow High Mountain Oolong teas. The teas are cultivated at elevations ranging from

1,200 to 1,400 meters (3,960 feet to 4,620 feet). The Combination of climate and soil

conditions at Doi Mae Salong mountainsides are ideal for growing great quality High

Mountain Oolongs. The sharp differences in day and night temperatures allow the tea

plants to grow more slowly, thus developing more aroma and sweetness while the

abundant clouds and mist surrounding the mountain allow the tea leaves to absorb more

moisture.

How to get there ?

Doi Mae Salong is located on Route 1089, 40 kilometres from Mae Chan. It is possible

to get to the mountain by bus from Chiang Rai to Ban Basang (fare 15 Baht) where you

can pick up a Songtaew to the mountain top (50 Baht).

Café at doi mae salong is the rest place from tried when you drive long distance

to doi mae salong drink is release weary from heart to chill out. Café also provide

beverage and dessert to give you enjoy your rest time with delicious dessert. Now a day

process of coffee shop is running on small business and planning for provide best

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service with best land scrape. So I plan to study the process of small business about

level of management, service, supplier, target segment, operation cost and function of

internal and external. Café just small businesses and use less budget to launch. Café not

clear level of command because everyone can be every level.

Doi mae salong is the best place to grow tea in Thailand and views of doi mae

salong is beautiful mountain switch. The benefit of café will open on doi mae salong is

the cost of tea and coffee is low it make you reduce the cost. Travel to doi mae salong is

easy. Make much more tourist. Doi mae salong stay far from Chiang rai around 80 Km.

Project Objectives

1. to study the project compliable and know the market of business by knows the

competitor advantage and analyze them to compete.

2. to study business launching from investment to start the business.

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Benefits of project

In order to study in Project feasibility subject, the subject is to know how to

perform the business and forecast the way to establish business whatever to want by

knowing of study 3Cs dimension to analyze risk of the business. So I’m going to study

the business. Now a day, many people pay more attention to coffee shop, customer pay

attention to find chic coffee to relax or deal business. I understand customer and what

demand while study competitor, find out the way to make profit from customer and try

to do anything that customers are satisfied. I take the feedback to improve our service or

make a new product. We choose right strategies to adapt with the situation. I can

manage risk and take advantage on competitors. So I can keep money and decrease cost

after close business because we calculate income and cost to perform business in next

day. If I can branch our company and our coffee can make satisfaction for customer, I

will increase several products for customers.

Activity for project feasibility study

1. Planning strategic competitive.

2. Planning strategic market.

3. Selection the best alternative of strategy.

4. Distribution of tasks to each department.

5. Setting specific time for conducting Business.

6. Conclusion before conducting business.

7. Solving the appeared problems.

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8. Analyzing appeared events or problems during conducting business.

9. Find solution to solve the problem.

10. Planning to improve and develop the strategies.

11. Planning to expand the branch of the company.

Time frame of RUAY RIN KRIN SHEEWA cafe

Week Designations

1 Discussion for choose the business and planning.

2 Planning and survey the market.

3 Find segment, choose target market and set budget.

4 Survey to collect information to design and decorate café.

5 invest to buy material and equipment, set up the electronic and

equipment and advertising to promote café.

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Chapter 2 Industry Profile

Nature of Industry

History of coffee

World coffee history

The picture show about coffee producers around the word.

Coffee began from local plant of Abyssinia and Arabia discovered in century 6th

around 575 BC. Someone told that the coffee found in Kaffa city in Ethiopia then they

called that plant a Kaffa and turn into coffee till now. In fact the true history of coffee

was discover in Abyssinia around Arabia or Middle East Arab many people not interest

about coffee since it go through century 9th one goat of Arabian name Kaldi pet their

goats then one goat eat a red fruit and it act impetuously. Kaldi told this story to Islam

monk and the monk took the red fruit and peeled it off, roasted and boiled in a hot water

to drunk. The monk found that the black water make him impetuously and told this to

another one. The Arabian knew this story and drunk coffee more and more soon coffee

went to Italy, Netherlands, German and France. The Arabian called the coffee plant

Kawah or Kaweh it’s mean strength or vigor.The Turkey called Kaveh then the name of

coffee called differently around the world like Koffee and coffee in England till now. In

Thailand called Gobee Kaewfee and Gafaar till now. Coffee originated in tropical

Africa, from where it has since been introduced to most tropical countries throughout

the world. Coffee was introduced to Southeast Asia and the West Indies in the 17th and

18th centuries. The real start of the Thai coffee industry is relatively young. According

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to governmental statistics, the total coffee plantation area in 1960 was only about

19,000 rai(approximately 7,600 acres), producing a mere 750 tons of coffee. In the same

year, Thailand had to import almost 6,000 tons of coffee. To improve the trade balance,

the Thai government started a successful campaign promoting Robusta coffee growth in

Southern Thailand This campaign was further cemented when opium crop replacement

became an official Thai Government program in the 1970s. Supported by the Royal

Family, the UN and many other governmental and non-governmental organizations, the

hill tribe farmers in the Golden Triangle and along the borders of Burma and Laos

started to grow Arabica coffee. In 1976, Thailand officially became a coffee exporting

nation, selling 850 tons of Robusta coffee in the world market. Helped by strong world

market prices in the 1980s, exports thrived in the following years and culminated in

1991-2 at almost 60,000 tons. The collapse of the "International Coffee Agreement" in

July 1989 and the following slump in world coffee prices has since hurt the coffee

farmers hard. Facing the threat of an oversupply situation, the Thai government made a

turnaround

and, under a 5-year-plan (1992-1997), began to encourage the coffee farmers to switch

to other crops in an effort to reduce the total coffee planting area from a level of almost

500,000 rai (approximately 200,000 acres). Thailand is a coffee nation, ranked third

(after Indonesia and Vietnam) in Southeast Asia in annual raw coffee production. While

there are many species of coffee trees in the world, only Arabica and Robusta have

major economic significance, both of which are grown in Thailand.

At present, Thailand produces approximately:

• 50,000 - 80,000 tons of Robusta coffee, of which 40% (ca. 30,000 tons)

are processed locally and about 60% (ca. 50,000 tons) is exported.

• A few thousand tons of Arabica coffee, which are almost entirely processed locally.

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Thai Robusta

Robusta is grown on plantations in Southern Thailand, mainly in the following

provinces: Surat Thani, Chumporn, Ranong, Nakorn Si Thammarat, Phang-Nga and

Krabi. Robusta coffee grows in lower altitudes. For the growers, Robusta has many

advantages: the

trees are easier to cultivate, more disease-resistant, can tolerate larger temperature and

moisture extremes, produce more beans and their fruits mature considerably quicker

than their Arabica counterparts. At the same time, however, Robusta is generally

regarded as lesser quality beans and accordingly yield lower prices. Thai Robusta is of

good quality and internationally well established. Major export markets are the United

States, Europe, Japan and Singapore. In the local market, Robusta is mainly used for all

kinds of canned coffee drinks as well as soluble (instant) coffee. Proper processing and

new roasting technologies, however, allow gourmet and bean coffee roasters to also

create good quality blends with Thai Robusta.

Thai Arabica

Arabica is grown on plantations in Northern Thailand, mainly in the following

provinces: Chiang Mai, Chiang Rai, Lampang, Mae Hong Son and Tak. Arabica trees

thrive at higher altitudes, which in Thailand is between 800 to 1,500 meters. In These

altitude, the beans mature at a slower pace, producing generally a richer, denser, more

flavorful bean. Arabica in Thailand is still in a kind of experimental stage, which helps

explain its low yearly harvest. Most Thai Arabica coffee is grown by small holders,

such as hill tribe families and villages, as well as in research stations (Wawee, Chang

Khian, etc.) and development programs. The few hundred tons of beans that are

annually picked are brought almost entirely by local traders and roasting factories for

producing roast and ground coffee.

Situation Analysis

Coffee shop businesses expand continually since 2002

coffee branddivide Coffee shop’ s market share in Thailand and Thai brand “Ban Rai

Coffee” also expand quickly in the same time that make many people pay attention and

invest to coffee business. Investors trust this business can refund more bene

stable. But 2-3 years ago, many coffee shops go bankrupt cause from recession

economic since 2008-2009. Analyst

because coffee shop are effected from

consumers and segment. The medium coffee shops

they are easy to reach with consumer, can keep standard

business can grow up continually in the future because more

coffee bean.

Doi Chaang Coffee

Story of Doi Chaang Coffee is set in a small village located within the Northern

Thailand region of the Golden Triangle.

families of the Doi Chang Village uniting

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Coffee shop businesses expand continually since 2002-2003after Starbuck


expand quickly in the same time that make many people pay attention and

business. Investors trust this business can refund more bene

many coffee shops go bankrupt cause from recession

2009. Analyst consider coffee shop business are grow and worse

because coffee shop are effected from economy. By the way it has increasing in

s and segment. The medium coffee shops are most growing segment because

they are easy to reach with consumer, can keep standard and coffee taste. Coffee shop

business can grow up continually in the future because more increasing in net order

Doi chaang coffee logo

tory of Doi Chaang Coffee is set in a small village located within the Northern

Thailand region of the Golden Triangle. It all began a few years ago when the hill tribe

families of the Doi Chang Village uniting together to create their own coffee

r Starbuck


expand quickly in the same time that make many people pay attention and

business. Investors trust this business can refund more benefit and

many coffee shops go bankrupt cause from recession

consider coffee shop business are grow and worse

economy. By the way it has increasing in

are most growing segment because

and coffee taste. Coffee shop

increasing in net order

tory of Doi Chaang Coffee is set in a small village located within the Northern

when the hill tribe

together to create their own coffee

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company. After 20 years of cultivating and processing coffee, the farmers grew

frustrated selling their high quality beans for minimal prices to coffee dealers who

would blend them with other inferior coffee beans. Through their own initiative, our

families decide it was time to directly offer the unique taste of their own premium,

single-origin, organic Arabica coffee.

The villagers soon establish themselves as independent successful coffee producers

building their own processing plants, drying facilities and storage warehouses. The

coffee is cultivated in small family gardens with everyone committed to maintaining

sustainable agriculture and having minimal impact on the natural habitat. All aspects of

production are carefully monitored to ensure consistent and optimal taste in every cup

of Doi Chaang coffee.

Committed to offering Doi Chaang Coffee as an exclusive single-origin, certified

organic Arabica, the growers approached a small Canadian group of coffee enthusiasts

to bring Doi Chaang Coffee into the international market.

In recognition of the equal value of their contributions, the growers and the Canadian

group established an equal partnership for the international distribution of Doi Chaang

Coffee. The growers continue to focus on cultivation, processing and domestic sales

while the Canadian group provides financing, marketing, roasting and distribution for

the international market.

Today, the Doi Chang Village and the surrounding area is home to 8,000 people within

eight hundred families, all living and primarily working together to cultivate and

produce a premium organic, single-origin Arabica coffee.

In Doi mae salong have many coffee shops but have only one direct competitor

“Sweet mae salong” (survey April 16, 2010) it make advantage to my business because

less of competitor. They provide coffee, bakery and any beverage to customer but price

is quite expensive.

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Latte art

Example of latte art.

Latte art is a style of pouring steamed milk into a shot of espresso that creates a pattern

or design on the surface of the resulting latte. It can also be created or embellished by

simply “drawing” in the top layer of foam. Latte art is particularly difficult to create

consistently, due to the demanding conditions required of both the espresso shot and

milk. This, in turn, is limited by the experience of the barista and quality of the espresso

machine. The pour itself, then, becomes the last challenge for the latte artist.

Ancient Latte

The origins of latte art are shrouded in mystery, but historians have unearthed clues

That prove the art form is thousands of years old. Assyrian reliefs from nearly 1000 BC

show the great King Ashurnasirpal II partaking of this activity, perhaps as a leisure

interest inbetween conquering the lands of the ancient Near East, murdering his enemies

and stealingideas from the Sumerians. By all accounts, however, Ashurnasirpal's

attempts at the "godlyart" were quite dismal - a fact undoubtedly vexing to the ruler, and

perhaps the source of the furiously warlike tendencies his civilization is today

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remembered for. The Egyptians soon learned of this wondrous way of life, but not soon

enough to save their ailing culture. After wandering in a haze through the periods

historians now call the Old, Middle and New Kingdoms, the Latte Period, when the

Egyptians discovered and explored the terrific power of the Art, proved to be only a last

gasp before the Persians conquered the kingdom. But what a mighty gasp it was!

Hieroglyphics record the great introduction of latte art into Egypt and the hope it

seemed to bring. What use had the Egyptians for denial any longer, with this new savior

now in their apparently capable hands? Alas, it was the very power of the latte itself that

proved the undoing of this great civilization. The hands and minds that built the

pyramids were yet too weak to control the possibilities of latte art, and they perished at

the hands of anti-lattate barbarians. For centuries the secret of latte art was believed to

have been buried with the Egyptians.

Medieval Latte

Fortunately, the latte had only given the Greek and Roman civilizations a pass. Latte

again surfaced during the middle Ages with the institution of church monasteries. One

of the most important duties of the monks during this period was the preservation of

knowledge through the copying of texts. Many a monk ruined his carefully-inked

illumination by falling asleep in the middle of the writing process. A call came from all

corners of Europe to find a way to ward off sleep to maximize the amount of work that

could be done, and the small monastery of Cluny, after years of searching and

experimenting, formulated a curious mixture of ground coffee beans and milk that could

keep one alert. Latte had been rediscovered – but latte art, the one true manifestation of

latte, had not. It would not be until the Renaissance that the art of the latte would once

again grace the world.

Renaissance Latte

During the Renaissance latte art was reintroduced and reached its height. Great baristas

such as Leonardo da Vinci, Bob Dole, Dante Alighieri and Niccolo Machiavelli created

latte works of staggering beauty and meaning; no original works now exist due to the

ephemeral nature of the medium, but the influence of the latte can be seen in many

surviving works in other formats. Michelangelo’s The Creation of Adam, painted on the

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ceiling of the Notre Dame, shows the primeval father of mankind reaching out with his

finger to touch a latte, anthropomorphized in the picture as an old bearded man.

Unfortunately, the popularity of latte art during the Renaissance led to a glut of amateur

latte artists, who created works that were insubstantial shades next to the cups of the

masters. At the close of the Renaissance latte art had lost its sacredness and become

mainstreams. The dream was dying.

Modern Latte

Today, insidious new forces have crept into latte art. Self-proclaimed artists arrogantly

crow about their “extreme pours” and “physics-influenced mixes,” and the unassuming

public allows such heresies to be crammed down their jobs because they know nothing

of the past glories of the latte. Artists, once rare, now number in the thousands and tens

of thousands, plying their distorted craft like parlor magicians delighting children with

simple sleight-offhand. It will be difficult, if not impossible, for the art of the latte to

regain its magnificence at this point.

Product/Service (in General)

I have main product is coffee such as Mocha, Late, Cappuccino, Espresso and

Americano and also have soft drink and bakery such as Cocoa, Ice tea , Italian soda,

shot cake

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Coffee Products

Espresso

Only black Coffee.

Latte

Black coffee with fresh milk.

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Americano

black coffee with hot water.

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Cappuccino

Black coffee with milk foam and Cinnamon

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Mocha

Espresso with hot Chocolate

Soft Drink

- Hot & Cool Cocoa

- Kiwi Soda, Apple Soda, Blueberry Soda and Strawberry Soda

- Ice Tea, Milk Tea, and Ice lemon tea

- Orange juice, Tamarind juice

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Bakery

-Chocolate cake, Black-forest-cake, Green Tea cake

- Cookie

- Brownie

Service

The important of service is “Service Mind” because customers always want to take care.

It can make customer to be loyalty and give word of mouth to other people which by the

way to promote of our coffee shop. I want to make feel rest to customer like a customer

still at favorite place and close up with customer then we provide another service such

as wifi.

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Vision of our organization

Vision of our organization is bringing local coffee specifically of Doi mae salong to

produce coffee for traveler customer and sell product acceptable price. We have hi-

technology coffee processing for make best quality to customer. In about sell coffee, we

have several style and taste of coffee that customer can choose by themselves. In social

responsible, we plants coffee by employ people in local place, it make opportunity in

work and income and develop to product of community and we have save and develop

environment plan in business.

Mission

We try to develop taste of coffee and present several kind of coffee for customer. In

about marketing, we target main group people such as traveler and local people because

most people in this group are drink coffee by we sell coffee acceptable price but high

quality and good taste.

We try to make loyalty and word of mouth in customer group and try to increase market

share of café business at doi mae salong 1 year.

Strategy

Corporate Level

Our coffee shop is the middle business the use the use medium budgets to launch and

the target is the traveler then our product and good service are acceptable price but good

taste and design café.

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1. Vision

-Our vision is to become the number 1 of cafe in doi mae salong with the

Design cafe.

2. Policy

- Rest, Refreshing, Feel kind lives local, we’ll be the center all of these kinds for

traveler.

3. Objectives

- We are going to be the cafe that traveler can come with the exhaustion but the

freshness back with invaluable happiness.

4. Process project teams

-The most employees is the local and expert in coffee because they know what customer

want.

5. Individual job performance

- We’ll train them to be the best server to service the customers but we’ll not change

their mine.

Business Level

Target group is traveler

1. Competitive advantages

- Planning for provide good service with lower price

- Close to the customers

- Style of coffee shop

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2. Cost leadership

- Close to the coffee suppler because location of café has coffee bean and tea grow it

make cost is low

- use medium budgets to launch

3. Quick-responses

- Take the feedback to improve our service or make a new product.

- The most employees is person have most service mind that we can ask them to try of

our new product to make the customer satisfaction.

Functional Level

1. Marketing

- Can support every targets group

2. Financial

- Keep money and decrease cost after close business because we calculate

income and cost to perform business in next day.

3. Human resource management

- The most employees must become from the local because they are the best who

can know what the local people want and expert in coffee because they know what

customer want.

- They should have great looking

- Our employees must know ever position and process in our shop by on the job training

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Chapter 3 Market Feasibility Study

Market Analysis

General Environment Analysis

- Political Analysis

Politic is out of control by business. Many competitors have to face with this too.

Politic might positively affect to business investment or negatively affect as obstacle in

business success. So, we always follow political news and apply in our business.

• Government policy is factor that both support and obstruct some kinds of business

success.

• Laws and regulations of government affect directly to success/failure and cost of

some kinds of business such as determine business open-close time and determine

zone of business.

• Price control policy; government determines ceiling price some kinds of necessary

goods. This operation affect to profit rate of small business or new market business

normally has high cost already that can’t compete at ceiling price.

• Open free and restricted import affect to advantages/disadvantages in competition and

determining goods price of involved business.

- Economy Analysis

It is out of control from business and others competitors must face as same as politic.

• National economy condition; average income per person, unemployment condition,

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growth/slow down of GDP, inflation, deflation, all of these affect directly to

purchasing power of customers who are target group.

• Currency exchange affect to cost and risk of imported/exported business and

competition in international market.

• Tax rate that government determine for business and product will affect to

advantages/disadvantages in determining price selling and cost of competition

including import tax and specific business tax.

• Cost of labor and production compare with important competitors, especially

international competitors.

- Social and environment Analysis

Business in different industry, market, region might face with risk. It has different

business feasibility because business operation environment and market environment

that is different.

• Business life cycle; industry or market products/services mostly have cycle short or

long that may be different such as fashion product has short life cycle, fast outdated

and low demand in market faster than other products.

• Consumer behavior in each market including more or less brand loyalty, price

conscious if it’s high, high price competition and low profit rate.

- Technology Analysis

Technology has changed rapidly today that is called the digital age. Marketing is the

same. Result of technology change make marketing change too. E-Commerce has

grown continuously and force marketing must adapt following trade system. So, E-

Marketing happens. It helps to operate marketing activity by using electronic equipment

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such as computer. E-Marketing is the two way communication activity that marketers

can connect with customers around the world and all time. E-mail and website (www)

are main equipment and important in E-Marketing.

Competition Analysis (3C Analysis)

Competitor Analysis

We define the competitors who provide service as same as us. Then, we divide

competitors into two groups; the direct competitor and indirect competitor. But in this

case we show you direct competitor only. Sweet mae salong is direct competitor the

shop provide service same our business.

Sweet mae salong.

Sweet mae salong invest a high coffee machine. They build the shop to be the

choice of customer when they come apart Doi mae salong. Sweet mae salong part the

shop into outside and inside, outside perform a good atmosphere and good landscape

but inside present a comfortable for customer.

Biggest thing that push Phuvaree interesting are the good location of view and

homemade bakery but all thing it make high cost for the shop that take Sweet mae

salong a good feedback.

The good performance of sweet mae salong is they do the shop and serve a good thing

for customer to ensure that customer will like taste of coffee

Customer Analysis

We focus on needs, wants, and demands of customers first. After we know their

demands, we make sure that we understand their behavior by survey and study. We

have to understand the customer and we analysis into this; Walk in, traveler, and local

people

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Our brand will be first choice in the customers’ information search. We sure that our

brand must be in all stages of customers’ buying decision process, especially final

choice or decision.

Competitive Analysis

Our competitors are coffee shop that set up around Doi mae salong such as

Sweet mae salong and local coffee shop. Each coffee shop is present taste of coffee and

contemporary style coffee shop but not more loyalty customer. We research and

collecting information about customer needs and want, we found customer want to

drink fresh high quality coffee and low cost so our business will focus in coffee that

produce, we bring high quality coffee from local places so we will get lower price and

can this main point to strengths. About weakness, first we must try to promote product

and make loyalty customer then same with competitors and increasing to leader of

business. From research, we found Sweet mae salong is only one coffee shop in doi mae

sa long and decorate shop contemporary style mixed variety style together customer can

use several corner in shop to photographing but price of coffee and bakery quite very

high. Local coffee is low cost business and can’t pull more customers I mean traveler is

main target but they not important about decorate shop and poor location it difficult to

find. Everything information we will use to improve and developing our coffee business

then we set plan and strategy about sell coffee, pull customers, promotion. When we can

success business, we will develop next mission and try to leader coffee business in doi

mae salong.

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STP Analysis

Like I said about the Strategy that I targeted on traveler, so most of customer

would be people who free and have relax from tired of long distant to doi mae salong or

small meeting of special opportunity of local people even date. The segmentation we

divide in to 2 segments for service suitable in each:

Mean target will be traveler, why? Because traveler have 85% of customer but I

want to make local people to target too. Ruay rin krin sheewa provide a free time for

them so they can spend the time in the shop and they have to spend a money too

because beverage not free.

Travel love in good decorate, good view and good location I mean easy to fnd

and have parking lot and quite low price, once of strategy that set the price lower for

this kind because I point that low price will attract people more. But we didn’t say that

low price with less quality.

85%

15%

Segmentation

Traveler 85%

Local people 15%

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Marketing Mix Strategy

Product – We are provider, we make shop for coffee drinking so we don’t set only our

product that we set to sell with beverage such as bakery in the shop. Other then we sell

the shop atmosphere, we make a shop for relax and informally.

Price - due to strategy that we set a price lower than usual to motivate customer and

challenge competitor to earn market segment. We going to survey competitor product

price because a lot of coffee shop in coffee market and they earn a lot of segment.

Place – The shop build in middle café because we launch in a middle business but big

power to move a business. We plan to start around the doi mae salong in chiang rai that

we study and expand the branch to many mountain in the north region. First sign, we

have to let people know our name. Second sign (logo), we will expand the branch if the

first targets will archive.

Promotion – Technology is big society in our life if the customer knows us name and

tell to other and other tell to another that would be great to continue the next plan is

promote in the internet. We create a blog site in the web and let’s everyone know about

us from history to income and we will post update of us every time we up to date.

33

Sales Forecast/Profit Estimation

Sales Forecast

From the chart we estimate that first time we start and not much sales because

only traveler and other one who want to try a new one to use. Then people will know

from a word of mouth because we good in service, coffee is good taste and service

mind on employees. However we can make more sales and more customers in the

second year and next year. In every year, we have the high sales on October to

February of the next year because it is high season of doi mae salong in Chiang Rai

province. We have the new customers who travel in Chiang Rai to get in our shop. So

high season of Chiang Rai can help increase sales of our shop. But on March until

September. we have fewer sales because it’s low season of doi mae salong.

Sales forecast of year 1

0 50,000

January

February

March

April

May

June

July

August

September

October

November

December

Year 1

Sale Forecast

Month Sales

1 190,200

2 142,800

3 130,200

4 84,000

5 62,000

6 54,000

7 52,200

8 80,600

9 51,000

10 139,500

11 171,600

12 226,300

Total 1,384,400

34

190,200

142,800

130,200

84,000

62,000

54,000

52,200

80,600

51,000

139,500

171,600

000 100,000 150,000 200,000

Sale Forecast

200

226,300

000 250,000


0 50,000

January

February

March

April

May

June

July

August

September

October

November

December

Year 2

Sale Forecast

Month Sales

1 209,220

2 157,080

3 143,220

4 92,400

5 68,200

6 59,400

7 57,420

8 88,660

9 56,100

10 153,450

11 188,760

12 248,930

Total 1,522,840

35

209,220

157,080

143,220

92,400

68,200

59,400

57,420

88,660

56,100

153,450

188,760

000 100,000 150,000 200,000 250,000

Sale Forecast

248,930

000 300,000


0 50,000

January

February

March

April

May

June

July

August

September

October

November

December

Year 3

Sale Forecast

Month Sales

1 230,142

2 172,788

3 157,542

4 101,640

5 75,020

6 65,340

7 63,162

8 97,526

9 61,710

10 168,795

11 207,636

12 273,823

Total 1,675,124

36

230,142

172,788

157,542

101,640

75,020

65,340

63,162

97,526

61,710

168,795

207,636

000 100,000 150,000 200,000 250,000

Sale Forecast

142

273,823

000 300,000

37

Profit Estimation

From the chart sale forecast we estimate March - September has less profit

because low season of doi mae salong and this time we try to promote our shop to

customer. Since October onwards we have increase profit because high season and

many people begin get in to our shop and customer help to promote by word of mouth

to other people or their friends. But we have less profit in October because spend to

marketing expense for increase advertisement. However, we have the highest profit on

November-February for every year. So we have payback period about 2-3 years.

Profit Estimation of year1

76,080

57,12052,080

33,600

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Year 1

Profit Estimation

Month Profit

1 76,080

2 57,120

3 52,080

4 33,600

5 24,800

6 21,600

7 20,880

8 32,240

9 20,400

10 45,800

11 68,640

12 90,520

Total 543,760

38


600

24,80021,60020,880

32,240

20,400

45,800

68,640

90,520

Profit Estimation

Profit Estimation

Profit Estimation


83,688

62,83257,288

36,960

0

20,000

40,000

60,000

80,000

100,000

120,000

Year 2

Profit Estimation

Month Profit

1 83,688

2 62,832

3 57,288

4 36,960

5 27,280

6 23,760

7 22,968

8 35,464

9 22,440

10 50,380

11 75,504

12 99,572

Total 598,136

39

960

27,28023,76022,968

35,464

22,440

50,380

75,504

99,572

Profit Estimation

Profit Estimation

Profit Estimation


92,057

69,11563,017

40,656

0

20,000

40,000

60,000

80,000

100,000

120,000

Year 3

Profit Estimation

Month Profit

1 92,057

2 69,115

3 63,017

4 40,656

5 30,008

6 26,136

7 25,265

8 39,010

9 24,684

10 55,418

11 83,054

12 109,529

Total 657,949

40

656

30,00826,13625,265

39,010

24,684

55,418

83,054

109,529

Profit Estimation

Profit Estimation

Profit Estimation

41

Marketing Expenses

Ruay rin krin sheewa cafe has marketing expense for make people

know about our company by make poster and temporary billboard near the

shop and road site on the way to café. The high season of doi mae salong in

Chaing Rai province around October to February of next year, so we plan

to make the new billboard in October of every year. It can attract and

interesting for tourist who travel in Doi maesalong. By the way, it will the

good way promote such word of mouth. Cause we spend marketing

expense about this because the high season of doi mae salong make more

sale and more profit for our company. Which important thing for attract the

customer to come in our shop.

Marketing Expenses of year1

0

5,000

10,000

Year 1

Marketing Expenses

Month Expenses

1 -

2 -

3 -

4 -

5 -

6 -

7 -

8 -

9 -

10 10,000

11 -

12 -

Total 10,000

42


Marketing Expenses

Marketing Expenses


0

5,000

10,000

Year 2

Marketing Expenses

Month Expenses

1 -

2 -

3 -

4 -

5 -

6 -

7 -

8 -

9 -

10 10,000

11 -

12 -

Total 10,000

43


Marketing Expenses

Marketing Expenses


0

5,000

10,000

Year 2

Marketing Expenses

Month Expenses

1 -

2 -

3 -

4 -

5 -

6 -

7 -

8 -

9 -

10 10,000

11 -

12 -

Total 10,000

44


Marketing Expenses

Marketing Expenses

45

Conclusion

Cafe is middle business that we make shop to provide a hot and cool drinking

and bakery that make up style Elf art. This is the new style for customers that love to

enjoy with everything new. Traveler is the main one to sell because it easy to attract

with similar motivation of them, art, technology and independent style. If the estimate is

right coffee will go through the high competitor market like Starbuck and Back Canyon

because this is the world competition and if we can touch that line in mean we can be a

famous coffee shop but then we have to past a border of province. We have main price

of product such as price of coffee about 60 baht, soft drink 30 baht, bakery 55 But those

have cost of product in each month. These table shows about cost of product in each of

3 years.

First Year

Cost of

product Jan Feb March April May June July Aug Sep Oct Nov Dec

Coffee

36฿/Cup

39,060

30,240 27,900 16,200 11,160 10,800 11,160 13,650

10,800 27,900 33,480 44,640

Bakery

33฿/Piece

36,000

25,200 22,320 18,000 14,880 10,800 9,000 20,460 9,000 27,900 36,000 46,500

Soft drink

18฿/Cup

39,060

30,240 27,900 16,200 11,160 10,800 11,160 13,650 10,800 27,900 33,480 44,460

Marketing - - - - - - - - - 10,000 - -

Total Cost /

Month(฿)

114,120

85,680

78,120 50,400 37,200 32,400

31,320 47,760 30,600 93,700 102,960 135,780

46

Second Year

Cost of


Coffee

36฿/Cup

42,966 33,264 30,690 17,820 12,276 11,880

12,276 15,015 11,880 30,690 36,828 49,104

Bakery

33฿/Piece 39,600 27,720 24,552 16,368 16,368

11,880 9,900 22,506 9,900 30,690 39,600 51,150

Soft drink

18฿/Cup

42,966 33,264 30,690 17,820 12,276

11,880 12,276 15,015 11,880 30,690 36,828 49,104

Marketing - - - - - - - - - 10,000 - -

Total Cost /

Month

125,532 94,248 85,932 52,008 40,920 35,640 34,452 52,536 33,660 102,070 113,256 149,358

47

From the interview during with owner of sweet mae salong. The information states that

Segment, all of number and cost.

Third Year

Cost of


Coffee

36฿/Cup

47,263 36,590 33,759 19,602 13,504 13,068 13,503

16,517 13,068 33,759 40,511 54,014

Bakery

33฿/Piece

43,650

30,492 27,007 18,005 18,005

13,068 10,890 24,757 10,890 33,759 43,560 56,265

Soft drink

18฿/Cup

47,263 36,590

33,759

19,602

13,504

13,068

13,503

16,517

13,068

33,759 40,511

54,014

Marketing - - - - - - - - - 10,000 - -

Total Cost

/ Month

138,176 103,672 94,525 57,209 45,013 39,204 37,896 57,791 37,026 111,277 124,582

164,293

48

Chapter 4 Technical Feasibility Study

Production and Operations Analysis

Product Characteristics (in Detail)

Coffee Products

Espresso Only black Coffee from Doi mae salong seed serve both of ice and hot.

Latte Black coffee with fresh milk most of customers like to drink with ice.

Americano Pure black coffee with hot water but you can mix with milk or sugar by

yourself serve in hot.

Cappuccino Black coffee with milk foam and Cinnamon sometime draw foam a

picture for enjoy art drinking in hot (ice can’t make up a foam).

Mocha Espresso with hot chocolate serve in warm ready to drink mostly they

drink in ice but hot is the best.

Soft Drink

Cocoa Cocoa powder of Hershey brews with sweet milk of carnation.

Soda Kiwi, Apple, Blueberry and Strawberry strong juice dilute with soda and

mix with ice.

Tea Ice, Milk and honey lemon.

49

Juice Orange, Tamarind also seasonal fruit.

Bakery

Choc Cake Chocolate cake dip with hot choc topping.

Black-forest-cake Dark shot cake from 2shipphons cake and plus with cream

between layer and dip with choc cream.

Green Tea cake Vanilla siphon cake and paint with green tea cream and wipe

cream.

Brownie Hot chocolate cake paint with coco sauce.

Cookie small, flat-baked treat.

Specification, Feathers, Dimension, Life Time, etc.

We use machine to make coffee cup by cup but control by human so mistake won’t

avoid, by the way once a day the machine will break down sometime employee will

know how to make a coffee manually.

Production/Services Process

The important of service is “Service Mind” because customers always want to

take care. It can make customer to be loyalty and give word of mouth to other people

which by the way to promote of our coffee shop. Then we provide another service such

as internet café, reading zone, music zone and meeting zone.

Location

50

Target is main decision to choice location. We choice the place nears the 7-11 at

doi mae salong 8 Million to build the shop.

Facility Layout

We depart the shop into 2 zones indoor and outdoor, indoor have 5 tables and 4

seats per table and decoration with contemporary style, outdoor have 3 tables and have

counter 8 seats in the small garden.

Machine/Tools/ Equipments

Equipment

Table

Sofa

Chair

Counter

Chandelier

Book shelf

CD-Player

Glass

Plate

Shelf

51

Electronic Fan

TV SONY 42”

Tools

Coffee machine

Fruit blender

Coffee grinder

Logistics Management

We take an order from bakery shop such as cake and pie by deliver from the

shop, but for coffee seed we order from local area and they sent monthly.

Facility Management

In the shop, we depart toilet out of shop to take care customer. And we also set

electricity for customers who want to use laptop and internet, because we provide WIFI

network for customer.

Cost of Investment

Pre-Operating Cost

Investment Cost

Land

4,320,000 bath for 4 Rai

52

Buildings

Environment structure 85,000 Baht

Structure 200,000 Baht

Built in 130,000 Baht

Total 415,000 Baht

Equipments

Writing pad 1 dozen 350 Baht

Account book 1 dozen 540 Baht

Pen 1 pack (20) 60 Baht

Total 950 Baht

Table

Mirage90 5,000 Baht

Stena 24,000 Baht

Design Table 5,000 Baht

Total 34,000 Baht

Sofa

Venus 22,000 Baht

Anna 6,900 Baht

Persia 18,500 Baht

Total 47,400 Baht

53

Design Chair 10,000 Baht

Counter 140,000 Baht

Chandelier 70,000 Baht

Book shelf 3,000 Baht

CD-Player 2,000 Baht

Glass 3,000 Baht

Plate 1,500 Baht

Shelf 4,000 Baht

Electronic Fan 2,000 Baht

TV SONY 42” 30,000 Baht

Total 347,850 Baht

Tools

Coffee grinder 25,000 Baht

Coffee machine 250,000 Baht

Fruit blender 10,000 Baht

Total 285,000 Baht

54

Etc

Frame & picture 8,000 Baht

Miscellaneous 200,000 Baht

Total 208,000 Baht

Depreciation

Equipment

� Table 10 years 283 Baht /Month

� Sofa 10 years 395 Baht /Month

� Design Chair 15 years 55 Baht /Month

� Counter 30 years 389 Baht /Month

� Chandelier 20 years 292 Baht /Month

� Book shelf 10 years 25 Baht /Month

� CD-Player 5 years 33 Baht /Month

� Shelf 10 years 33 Baht /Month

� TV LG 42” 20 years 125 Baht /Month

Total Depreciation Equipment 1630 Baht /Month

Tools

Coffee grinder 20 years 104 Baht /Month

Coffee machine 30 years 695 Baht/Month

Fruit blender 20 years 42 Baht /Month

Total Depreciation Tools 841 Baht /Month

55

Operating Cost

Inventory

Cake (Chocolate Cake ,Black-forest-cake, Green Tea cake) 300 Baht/ pound

Cookie 20 Baht/ piece

Brownie 10 Baht/piece

Raw material Cost

Coffee Bean

Strong 600 Baht/Kg.

Medium 550 Baht/Kg.

Smooth 600 Baht/Kg.

Cocoa powder (Hershey’s) 125 Baht/ 200g.

Green tea powder (Coffman) 450 Baht/500 g.

Tea Powder (Coffman) 150 Baht/500 g.

Sugar 30 Baht/Kg.

Cream 45 Baht/450 g.

Carnation Milk 60 Baht /405g.

Italian Soda

Syrup (Davinci syrup) 330 Baht/750 ml.

Soda (Chang Soda) 5 Baht/ 325 ml.

56

Direct Labor Cost

Salary

Coffee maker and cooker 8,000 Baht/Month/ Person

Waiter ( 2 person) 5,400 Baht/Month/ Person

Management Analysis

Administration Cost

Electricity 300 Baht / Month

Wi-fi 650 Bath / Month

Water 50 Bath/Month

Conclusion

Our products don’t have only favorable coffee drink, but include popular soft

drink and bakery like cake and Cookie. We produce coffee cup by machine under

control of professional to get the best quality. In production and service process, we

focus on “Service Mind” to very well take care our customers and they pay back loyalty

and positive word of mouth. We also provide supplementary services like internet zone

and reading zone, too.

57

Location, we choose the best appropriate place to locate our shop near the 7-11

and road for easy to customers access and transport materials. The characteristic of our

shop, we set indoor that decorate in contemporary style and outdoor with small garden.

All equipments in our shop, we use as same as with other but more concern

about quality. We order coffee bean from suppliers in local area and they send every

month for refreshment.

In facility management, we provide internet zone with WIFI network to facilitate

customer who want to do business or entertainment.

Last is about the cost of invest business such building, land, inventory and

equipment. Our technical analysis is considering and analyzing machine, equipment,

raw material, and people. According to all components, they have relationship between

each other to create the common core that calls “Management” and we also analyze and

consider in other factors such as control quantity, quality, and production throughout

raw material and budget planning.

58

Chapter 5 Financial Analysis Income Statement

59

Income statement 1st Year

Jan Feb Mar Apr May

Revenues 190,200 142,800 130,200 84,000 62,000

Cost of Revenues 114,120 85,680 78,120 50,400 37,200

Gross profit 76,080 57,120 52,080 33,600 24,800

Expense

Selling expense 0 0 0 0 0

Administrative 19,800 19,800 19,800 19,800 19,800

Net income 56,280 37,320 32,280 13,800 5,000

Income statement 1st Year (cont.)

June July Aug Sep Oct Nov Dec

54,000 52,200 80,600 51,000 139,500 171,600 226,300

32,400 31,320 47,760 30,600 83,700 102,960 135,780

21,600 20,880 32,840 20,400 55,800 68,640 90,520

0 0 0 0 10,000 0 0

19,800 19,800 19,800 19,800 19,800 19,800 19,800

1,800 1,080 13,040 600 26,000 48,840 70,720

60

Income statement 2nd Year

Jan Feb Mar Apr May

Revenues 209,220 157,080 143,220 92,400 68,200

Cost of Revenues 125,532 94,248 85,932 52,008 40,920

Gross profit 83,688 62,832 57,288 40,392 27,280

Expense


Administrative 19,800 19,800 19,800 19,800 19,800

Net income 63,888 43,032 37,488 20,592 7,480

Income statement 2nd Year (cont.)


59,400 57,420 88,660 56,100 153,450 188,760 248,930

35,640 34,452 52,536 33,660 92,070 113,256 149,358

23,760 22,968 36,124 22,440 61,380 75,504 99,572

0 0 0 0 10,000 0 0

19,800 19,800 19,800 19,800 19,800 19,800 19,800

3,960 3,168 16,324 2,640 31,580 55,704 79,772

61

Income statement 3rd Year

Jan Feb Mar Apr May

Revenues 230,142 172,788 157,542 101,640 75,020

Cost of Revenues 138,176 103,672 94,525 57,209 45,013

Gross profit 91,966 69,116 63,017 44,431 30,007

Expense


Administrative 19,800 19,800 19,800 19,800 19,800

Net income 72,166 49,316 43,217 24,631 10,207

Income statement 3rd Year (cont.)


65,340 63,162 97,526 61,710 168,795 207,636 273,823

39,204 37,896 57,791 37,026 101,277 124,582 164,293

26,136 25,266 39,735 24,684 67,518 83,054 109,530

0 0 0 0 10,000 0 0

19,800 19,800 19,800 19,800 19,800 19,800 19,800

6,336 5,466 19,935 4,884 37,718 63,254 89,730

62

Cash Flow

1st year

Jan Feb March April May June

Cash Be. Balance

2,000,000

1,148,761

1,150,516

1,159,385

1,165,558

1,182,565

Cash flow from operating

net income(loss) 7,560

9,030

13,740

8,640

17,070

11,790

Depreciation 2,404

4,808

7,212

9,616

12,020

14,424

pre-operating cost

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

change in inventory

- 15,000

- 1,000

1,000

-

-

- 1,000

change in account

payable

13,500

1,000

- 1,000

-

-

1,000

Total cash flow from operating

- 3,619

1,755

8,869

6,173

17,007

14,131

Cash flow from investing

Building - 415,000

-

-

-

-

-

Equipments - 246,850

-

-

-

-

-

Tools - 205,000

-

-

-

-

-

Total cash flow from investing

- 866,850

-

-

-

-

-

cash flow from finacing

-

-

-

-

-

-

Change in cash

- 870,469

1,755

8,869

6,173

17,007

14,131

Net cash flow 1,129,531

1,150,516

1,159,385

1,165,558

1,182,565

1,196,696

63

1st year (Cont.)

July Aug Sep Oct Nov Dec

Cash Be. Balance

1,196,696

1,222,471

1,254,460

1,284,323

1,313,150

1,349,651



24,840

20,310

16,870

22,140

29,820

Depreciation 16,828

19,232

21,636

24,040

26,444

28,848

pre-operating cost

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

change in inventory

-

-

1,000

-

-

- 1,500

change in account payable

-

-

- 1,000

-

-

1,500


25,775

31,989

29,863

28,827

36,501

46,585


Building -

-

-

-

-

-

Equipments -

-

-

-

-

-

Tools -

-

-

-

-

-


-

-

-

-

-

-


-

-

-

-

-

-

Change in cash

25,775

31,989

29,863

28,827

36,501

46,585

Net cash flow

1,222,471

1,254,460

1,284,323

1,313,150

1,349,651

1,396,236

64

2nd year


Cash Be. Balance

1,396,236

1,443,481

1,487,730

1,532,703

1,578,610

1,623,861



25,080

23,400

21,930

18,870

19,770

Depreciation 28,848

31,252

33,656

36,060

38,464

40,868

pre-operating cost

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

change in inventory

- 2,500

4,000

-

-

-

-

change in account

payable

2,500

- 4,000

-

-

-

-


47,245

44,249

44,973

45,907

45,251

48,555


Building -

-

-

-

-

-

Equipments -

-

-

-

-

-

Tools -

-

-

-

-

-


-

-

-

-

-

-


-

-

-

-

-

-

Change in cash

47,245

44,249

44,973

45,907

45,251

48,555


1,487,730

1,532,703

1,578,610

1,623,861

1,672,416

65

2nd year(Cont.)


Cash Be. Balance

1,672,416

1,727,025

1,781,558

1,838,195

1,893,496

1,961,211



20,940

20,640

16,900

26,910

33,930

Depreciation 43,272

45,676

48,080

50,484

52,888

55,292

pre-operating cost

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

change in inventory

-

-

- 1,500

500

2,000

- 7,500

change in account payable

-

-

1,500

- 500

- 2,000

7,500


54,609

54,533

56,637

55,301

67,715

77,139


Building -

-

-

-

-

-

Equipments -

-

-

-

-

-

Tools -

-

-

-

-

-


-

-

-

-

-

-


-

-

-

-

-

-

Change in cash

54,609

54,533

56,637

55,301

67,715

77,139

Net cash flow

1,727,025

1,781,558

1,838,195

1,893,496

1,961,211

2,038,350

66

3rd year


Cash Be. Balance

2,038,350

2,113,089

2,182,222

2,255,559

2,328,660

2,404,015



23,520

25,320

22,680

22,530

20,850

Depreciation 55,292

57,696

60,100

62,504

64,908

67,312

pre-operating cost

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

change in inventory

6,500

- 1,500

-

-

3,500

-

change in account

payable

- 6,500

1,500

-

-

- 3,500

-


74,739

69,133

73,337

73,101

75,355

76,079


Building -

-

-

-

-

-

Equipments -

-

-

-

-

-

Tools -

-

-

-

-

-


-

-

-

-

-

-


-

-

-

-

-

-

Change in cash

74,739

69,133

73,337

73,101

75,355

76,079


2,182,222

2,255,559

2,328,660

2,404,015

2,480,094

67

3rd year (Cont.)


Cash Be. Balance

2,480,094

2,561,427

2,642,704

2,727,495

2,814,970

2,912,399


net income(loss)

23,700

21,240

22,350

22,630

30,180

23,590

Depreciation 69,716

72,120

74,524

76,928

79,332

81,736

pre-operating cost

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

- 12,083

change in inventory

-

-

-

-

- 2,000

- 4,000

change in

account payable

-

-

-

-

2,000

4,000


81,333

81,277

84,791

87,475

97,429

93,243


Building -

-

-

-

-

-

Equipments -

-

-

-

-

-

Tools -

-

-

-

-

-


-

-

-

-

-

-


-

-

-

-

-

-

Change in cash

81,333

81,277

84,791

87,475

97,429

93,243


2,642,704

2,727,495

2,814,970

2,912,399

3,005,642

68

Balance Sheet

1st year Jan Feb March April May June

Asset

cash

1,129,531

1,150,516

1,159,385

1,165,558

1,182,565

1,196,696

Equipment

Table

34,000

34,000

34,000

34,000

34,000

34,000

Sofa

47,400

47,400

47,400

47,400

47,400

47,400

Chair

10,000

10,000

10,000

10,000

10,000

10,000

Counter

14,000

14,000

14,000

14,000

14,000

14,000

Chandelier

70,000

70,000

70,000

70,000

70,000

70,000

Book shelf

3,000

3,000

3,000

3,000

3,000

3,000

CD-Player

2,000

2,000

2,000

2,000

2,000

2,000

Glass

3,000

3,000

3,000

3,000

3,000

3,000

Plate

1,500

1,500

1,500

1,500

1,500

1,500

Shelf

4,000

4,000

4,000

4,000

4,000

4,000

Electronic Fan

2,000

2,000

2,000

2,000

2,000

2,000

TV SONY 42”

30,000

30,000

30,000

30,000

30,000

30,000

office equipment

950

950

950

950

950

950

Tools

Coffee machine

250,000

250,000

250,000

250,000

250,000

250,000

Fruit blender

10,000

10,000

10,000

10,000

10,000

10,000

Coffee grinder

25,000

25,000

25,000

25,000

25,000

25,000

Accumulated depreciation

- 2,404

- 4,808

- 7,212

- 9,616

- 12,020

- 14,424

Pre-operating cost

Insurance(Fire)

25,000

25,000

25,000

25,000

25,000

25,000

Land Rental

120,000

120,000

120,000

120,000

120,000

120,000

69

Inventory

coffee product

2,000

3,000

2,000

2,000

2,000

3,000

soft drink product

1,500

1,500

1,500

1,500

1,500

1,500

bekery product

10,000

10,000

10,000

10,000

10,000

10,000

Building

415,000

415,000

415,000

415,000

415,000

415,000

Totol asset

2,207,477

2,227,058

2,232,523

2,236,292

2,250,895

2,263,622

Liabilities

A/P

13,500

14,500

13,500

13,500

13,500

14,500

Equity

owner capital

2,193,977

2,212,558

2,219,023

2,222,792

2,237,395

2,249,122

Total L&E

2,207,477

2,227,058

2,232,523

2,236,292

2,250,895

2,263,622

70

1st year (cont.) July Aug Sep Oct Nov Dec

Asset

cash

1,222,471

1,254,460

1,284,323

1,313,150

1,349,651

1,396,236

Equipment

Table

34,000

34,000

34,000

34,000

34,000

34,000

Sofa

47,400

47,400

47,400

47,400

47,400

47,400

Chair

10,000

10,000

10,000

10,000

10,000

10,000

Counter

14,000

14,000

14,000

14,000

14,000

14,000

Chandelier

70,000

70,000

70,000

70,000

70,000

70,000

Book shelf

3,000

3,000

3,000

3,000

3,000

3,000

CD-Player

2,000

2,000

2,000

2,000

2,000

2,000

Glass

3,000

3,000

3,000

3,000

3,000

3,000

Plate

1,500

1,500

1,500

1,500

1,500

1,500

Shelf

4,000

4,000

4,000

4,000

4,000

4,000

Electronic Fan

2,000

2,000

2,000

2,000

2,000

2,000

TV SONY 42”

30,000

30,000

30,000

30,000

30,000

30,000

office equipment

950

950

950

950

950

950

Tools

Coffee machine

250,000

250,000

250,000

250,000

250,000

25,000

Fruit blender

10,000

10,000

10,000

10,000

10,000

10,000

Coffee grinder

25,000

25,000

25,000

25,000

25,000

25,000


- 16,828

- 19,232

- 21,636

- 24,040

- 26,444

- 28,848

Pre-operating cost

Insurance(Fire)

25,000

25,000

25,000

25,000

25,000

25,000

Land Rental

120,000

120,000

120,000

120,000

120,000

120,000

71

Inventory

coffee product

3,000

3,000

2,000

2,000

2,000

3,500

soft drink product

1,500

1,500

1,500

1,500

1,500

1,500

bekery product

10,000

10,000

10,000

10,000

10,000

10,000

Building

415,000

415,000

415,000

415,000

415,000

415,000

Totol asset

2,286,993

2,316,578

2,343,037

2,369,460

2,403,557

2,224,238

Liabilities

A/P

14,500

14,500

13,500

13,500

13,500

15,000

Equity

owner capital

2,272,493

2,302,078

2,329,537

2,355,960

2,390,057

2,209,238

Total L&E

2,286,993

2,316,578

2,343,037

2,369,460

2,403,557

2,224,238

72

2nd year Jan Feb March April May June

Asset

cash

1,443,481

1,487,730

1,532,703

1,578,610

1,623,861

1,672,416

Equipment

Table

34,000

34,000

34,000

34,000

34,000

34,000

Sofa

47,400

47,400

47,400

47,400

47,400

47,400

Chair

10,000

10,000

10,000

10,000

10,000

10,000

Counter

14,000

14,000

14,000

14,000

14,000

14,000

Chandelier

70,000

70,000

70,000

70,000

70,000

70,000

Book shelf

3,000

3,000

3,000

3,000

3,000

3,000

CD-Player

2,000

2,000

2,000

2,000

2,000

2,000

Glass

3,000

3,000

3,000

3,000

3,000

3,000

Plate

1,500

1,500

1,500

1,500

1,500

1,500

Shelf

4,000

4,000

4,000

4,000

4,000

4,000

Electronic Fan

2,000

2,000

2,000

2,000

2,000

2,000

TV SONY 42”

30,000

30,000

30,000

30,000

30,000

30,000

office equipment

950

950

950

950

950

950

Tools

Coffee machine

250,000

250,000

250,000

250,000

250,000

250,000

Fruit blender

10,000

10,000

10,000

10,000

10,000

10,000

Coffee grinder

25,000

25,000

25,000

25,000

25,000

25,000


- 28,848

- 31,252

- 33,656

- 36,060

- 38,464

- 40,868

Pre-operating cost

Insurance(Fire)

25,000

25,000

25,000

25,000

25,000

25,000

Land Rental

120,000

120,000

120,000

120,000

120,000

120,000

73

Inventory

coffee product

3,000

2,000

2,000

2,000

2,000

3,500

soft drink product

1,500

1,500

1,500

1,500

1,500

1,500

bekery product

13,000

10,000

10,000

10,000

10,000

10,000

Building

415,000

415,000

415,000

415,000

415,000

415,000

Totol asset

2,498,983

2,536,828

2,579,397

2,622,900

2,665,747

2,713,398

Liabilities

A/P

17,500

13,500

13,500

13,500

13,500

15,000

Equity

owner capital

2,481,483

2,523,328

2,565,897

2,609,400

2,652,247

2,698,398

Total L&E

2,498,983

2,536,828

2,579,397

2,622,900

2,665,747

2,713,398

74

2nd year (cont.) July Aug Sep Oct Nov Dec

Asset

cash

1,672,416

1,727,025

1,781,558

1,838,195

1,893,496

1,961,211

Equipment

Table

34,000

34,000

34,000

34,000

34,000

34,000

Sofa

47,400

47,400

47,400

47,400

47,400

47,400

Chair

10,000

10,000

10,000

10,000

10,000

10,000

Counter

14,000

14,000

14,000

14,000

14,000

14,000

Chandelier

70,000

70,000

70,000

70,000

70,000

70,000

Book shelf

3,000

3,000

3,000

3,000

3,000

3,000

CD-Player

2,000

2,000

2,000

2,000

2,000

2,000

Glass

3,000

3,000

3,000

3,000

3,000

3,000

Plate

1,500

1,500

1,500

1,500

1,500

1,500

Shelf

4,000

4,000

4,000

4,000

4,000

4,000

Electronic Fan

2,000

2,000

2,000

2,000

2,000

2,000

TV SONY 42”

30,000

30,000

30,000

30,000

30,000

30,000

office equipment

950

950

950

950

950

950

Tools

Coffee machine

250,000

250,000

250,000

250,000

250,000

250,000

Fruit blender

10,000

10,000

10,000

10,000

10,000

10,000

Coffee grinder

25,000

25,000

25,000

25,000

25,000

25,000


- 43,272

- 45,676

- 48,080

- 50,484

- 52,888

- 55,292

Pre-operating cost

Insurance(Fire)

25,000

25,000

25,000

25,000

25,000

25,000

75

Land Rental 120,000 120,000 120,000 120,000 120,000 120,000

Inventory

coffee product

2,000

2,000

1,500

3,000

3,000

3,500

soft drink product

1,500

1,500

1,500

1,500

1,500

1,500

bekery product

10,000

10,000

12,000

10,000

8,000

15,000

Building

415,000

415,000

415,000

415,000

415,000

415,000

Totol asset

2,709,494

2,761,699

2,815,328

2,869,061

2,919,958

2,992,769

Liabilities

A/P

13,500

13,500

15,000

14,500

12,500

20,000

Equity

owner capital

2,695,994

2,748,199

2,800,328

2,854,561

2,907,458

2,972,769

Total L&E

2,709,494

2,761,699

2,815,328

2,869,061

2,919,958

2,992,769

76

3rd year Jan Feb March April May June

Asset

cash

2,113,089

2,182,222

2,255,559

2,328,660

2,404,015

2,480,094

Equipment

Table

34,000

34,000

34,000

34,000

34,000

34,000

Sofa

47,400

47,400

47,400

47,400

47,400

47,400

Chair

10,000

10,000

10,000

10,000

10,000

10,000

Counter

14,000

14,000

14,000

14,000

14,000

14,000

Chandelier

70,000

70,000

70,000

70,000

70,000

70,000

Book shelf

3,000

3,000

3,000

3,000

3,000

3,000

CD-Player

2,000

2,000

2,000

2,000

2,000

2,000

Glass

3,000

3,000

3,000

3,000

3,000

3,000

Plate

1,500

1,500

1,500

1,500

1,500

1,500

Shelf

4,000

4,000

4,000

4,000

4,000

4,000

Electronic Fan

2,000

2,000

2,000

2,000

2,000

2,000

TV SONY 42”

30,000

30,000

30,000

30,000

30,000

30,000

office equipment

950

950

950

950

950

950

Tools

Coffee machine

250,000

250,000

250,000

250,000

250,000

250,000

Fruit blender

10,000

10,000

10,000

10,000

10,000

10,000

Coffee grinder

25,000

25,000

25,000

25,000

25,000

25,000


- 55,292

- 57,696

- 60,100

- 62,504

- 64,908

- 67,312

Pre-operating cost

Insurance(Fire)

25,000

25,000

25,000

25,000

25,000

25,000

Land Rental

120,000

120,000

120,000

120,000

120,000

120,000

Inventory

coffee product

2,000

3,500

3,500

3,500

2,000

2,000

77

soft drink product 1,500 1,500 1,500 1,500 1,500 1,500

bekery product

10,000

10,000

10,000

10,000

8,000

8,000

Building

415,000

415,000

415,000

415,000

415,000

415,000

Totol asset

3,138,147

3,206,376

3,277,309

3,348,006

3,417,457

3,491,132

Liabilities

A/P

13,500

15,000

15,000

15,000

11,500

11,500

Equity

owner capital

3,124,647

3,191,376

3,262,309

3,333,006

3,405,957

3,479,632

Total L&E

3,138,147

3,206,376

3,277,309

3,348,006

3,417,457

3,491,132

78

3rd year (cont.) July Aug Sep Oct Nov Dec

Asset

cash

2,561,427

2,642,704

2,727,495

2,814,970

2,912,399

3,005,642

Equipment

Table

34,000

34,000

34,000

34,000

34,000

34,000

Sofa

47,400

47,400

47,400

47,400

47,400

47,400

Chair

10,000

10,000

10,000

10,000

10,000

10,000

Counter

14,000

14,000

14,000

14,000

14,000

14,000

Chandelier

70,000

70,000

70,000

70,000

70,000

70,000

Book shelf

3,000

3,000

3,000

3,000

3,000

3,000

CD-Player

2,000

2,000

2,000

2,000

2,000

2,000

Glass

3,000

3,000

3,000

3,000

3,000

3,000

Plate

1,500

1,500

1,500

1,500

1,500

1,500

Shelf

4,000

4,000

4,000

4,000

4,000

4,000

Electronic Fan

2,000

2,000

2,000

2,000

2,000

2,000

TV SONY 42”

30,000

30,000

30,000

30,000

30,000

30,000

office equipment

950

950

950

950

950

950

Tools

Coffee machine

250,000

250,000

250,000

250,000

250,000

250,000

Fruit blender

10,000

10,000

10,000

10,000

10,000

10,000

Coffee grinder

25,000

25,000

25,000

25,000

25,000

25,000


- 64,908

- 62,504

- 60,100

- 57,696

- 55,292

- 52,888

Pre-operating cost

Insurance(Fire)

25,000

25,000

25,000

25,000

25,000

25,000

Land Rental

120,000

120,000

120,000

120,000

120,000

120,000

79

Inventory

coffee product

2,000

2,000

2,000

1,500

3,500

3,500

soft drink product

1,500

1,500

1,500

1,500

1,500

1,500

bekery product

8,000

8,000

8,000

8,000

8,000

12,000

Building

415,000

415,000

415,000

415,000

415,000

415,000

Totol asset

3,574,869

3,658,550

3,745,745

3,835,124

3,936,957

4,036,604

Liabilities

A/P

11,500

11,500

11,500

11,000

13,000

17,000

Equity

owner capital

3,563,369

3,647,050

3,734,245

3,824,124

3,923,957

4,019,604

Total L&E

3,574,869

3,658,550

3,745,745

3,835,124

3,936,957

4,036,604

80

Chapter7 Summary

As we are determined the possibility of possible business performs, so we are going to

know the feasibility of business so far.

Coffee shop is the meeting and relaxing restaurant of every age from teenage to

older because time of relax is time of drink such sleeping time. Coffee shop also provide

dessert to eat with beverage to give you enjoy your free time with smooth taste of

dessert.

Process of coffee shop is running on middle business and planning for provide

good service with low price. Even coffee shop just middle businesses and use less

budget to launch. Coffee shops not clear level of command because everyone can be

every level. So we confirm that no one study this business seriously before and if we

know this business clearly every one can build this kind of carrier.

When we set up coffee business, we must thinking and planning about objective

that clear, reliable and make high profit to business. We must understand customer and

what demand while study competitor, find out the way to make profit from customer

and try to do anything that customers are satisfied. We take the feedback to improve our

service or make a new product. We choose right strategies to adapt with the situation.

We can manage risk and take advantage on competitors. Timeframe, tell about period of

time in processing business.

81

In set up business, we must tell about company, product and process of product so

in about coffee shop business. In about history of coffee, Coffee began from local plant

of Abyssinia and Arabia discovered in century 6th around 575 BC. The Arabian called

the coffee plant Kawah or Kaweh it’s mean strength or vigor. In Thailand called Gobee

Kaewfee and Gafaar till now. Coffee originated in tropical Africa, from where it has

since been introduced to most tropical countries throughout the world. Coffee was

introduced to Southeast Asia and the West Indies in the 17th and 18th centuries. The

real start of the Thai coffee industry is relatively young. The Thai government started a

successful campaign promoting Robusta coffee growth in Southern Thailand. In 1976,

Thailand officially became a coffee exporting nation. Thailand is a coffee nation, ranked

third (after Indonesia and Vietnam) in Southeast Asia in annual raw coffee production.

While there are many species of coffee trees in the world, only Arabica and Robusta

have major economic significance, both of which are grown in Thailand.

Beyond from detail of coffee, in about business we must know situation analysis,

detail competitive in near around our business, type of coffee to serve to customer

[Latte, Espresso, Americano, Cappuccino, Mocha and soft drink]. When we set

objective, know about of our business. We will set vision and mission. Vision of our

business is bringing local’s coffee specifically to produce coffee for tourists customer

and sell product acceptable price. We have hi-technology coffee processing. So we have

several style and taste of coffee that customer can choose by themselves. In social

responsible, we plants coffee by employ people in local place, it make opportunity in

work and income and develop to product of community and we have save and develop

environment plan in business.

About mission, we try to develop taste of coffee and present several kind of

coffee for customer and we try to make loyalty and word of mouth in customer group

and try to increase branch of business around province in 2 years. In about strategy, we

know about business level such as corporate level [vision, policy, objective, process

project teams and individual job performance.]. We try to make loyalty and word of

mouth in customer group and try to increase branch of business in 2 years. Business

82

level [competitive advantages, cost leadership, quick response] and Functional level

[marketing, Financial, Human resource management.

In about market analysis we must know about political analysis. Politic is out of

control by business. Competitors have to face with this too. Politic might positively

affect to business investment or negatively affect as obstacle in business success. So, we

always follow political news and apply in our business. Economy analysis, it is out of

control from business and others competitors must face as same as politic. Social and

environment analysis, business in different industry, market, and region might face with

risk. It has different business feasibility because business operation environment and

market environment that is different [business life cycle, consumer behavior].

Technology analysis, changed rapidly today that is called the digital age. Marketing is

the same. Result of technology change make marketing change too. E-Commerce has

grown continuously and force marketing must adapt following trade system. So, E-

Marketing happens. It helps to operate marketing activity by using electronic

equipment. Competition analysis [3c analysis] such as competitor analysis, we define

the competitors who provide service as same as us.

For local coffee shop or weak group that we think they will become a high performance

competition will be.

Our competitors are coffee shop that set up around doi mae salong have only one

“Sweet mae salong” Each coffee shop is present taste of coffee and modern style coffee

shop but price quite high. We research and collecting information about customer needs

and want, we found customer want to drink fresh high quality coffee and low cost so

our business will focus in coffee that produce, we bring high quality coffee from local

places so we will get low price and can this main point to strengths. About weakness,

first we must try to promote product and make loyalty customer then same with

competitors and increasing to leader of business. Customer can use several corner in

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shop to photographing but will not famous about coffee and bakery. Everything

information we will use to improve and developing our coffee business then we set plan

and strategy about sell coffee, pull customers, promotion. When we can success

business, we will develop next mission and try to leader coffee business in province.

In about STP analysis, like we said about the Strategy that I targeted on traveler,

so most of customer would be a fill time to relax or small meeting even date. The

segmentation we divide in to 2 segments for service suitable in each: traveler [large

segmentation], local people. Marketing mix strategy we focus on 4P.

Product – We are provider, we make shop for coffee drinking so we set only our

product that we set to sell with beverage such as bakery in the shop.

Price - due to strategy that we set a price few lower than usual to motivate customer and

challenge competitor to earn market segment.

Place – The shop build in small café because we launch in a medium business but big

power to move a business.

Promotion – Technology is big society in our life if the customer knows us name and

tell to other and other tell to another that would be great to continue the next plan is

promote in the internet.

Finally we must know and understanding about risk in management of business.

The analyzing of business risk factors, we will use our business as a set. Then look environment

around business and business itself that what is the important point. If this point is very

important and adverse impact occur to this point, our business may get some problem. It is

called critical point. The business risk analysis starts from

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(1) Determine risk such as marketing factor, we look from 4 dimensions. Political,

Politic is out of control by business. Many competitors have to face with this too. Politic

might positively affect to business investment or negatively affect as obstacle in

business success. So, we always follow political news and apply in our business. HR

factor, we look from Labor protection act 1998. Economic factor, today recession

economic affect directly to our business, so there are many coffee business have to fail and

close their business. We also use this analysis below to make decision. Customer

behavior factor, many customers have low brand loyalty but high price conscious, so they

always look for brand that offer low price first. We’re determining the customer behavior to

know them buying activity. Satisfy them in the right way can improve our benefit and

low risk consider.

(2)Evaluate risk, When we determine the critical point and risk already, must well

evaluate again that how risk is violent. We set list of risk and order following violence level that

what risk adversely affect to our business. Customers’ behavior factor [customer is god and

most important], Marketing factor [know rival help to gain competitive advantage], Economic

factor [study and evaluate economic condition], HR factor [prepare knowledge and training].

(3)Set the solution and risk protection, Customers’ behavior factor, we offer acceptable

price product but remain high quality to attract customers. We also create service mind to make

our customers feel good and satisfaction. Marketing factor, we study our competitors and must

know them everything. Economic factor affects directly to purchasing power of customers

and can make our business decline. HR factor, employees must come from the local

because they can know best what the local people want. Then, we give training and

knowledge program to our employees to have high performance to give well service.

(4)Evaluate solution and risk protection, We check and evaluate the solution that can be

effective in handle risk. Prepare for the risk that will occur in the future and prepare effective

solution too and finally financial risk, we will use the financial risk to control our financial to be

useful and reach our company goal.

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Referent! http://www.finethaiteas.com/doi-mae-salong.html

www.czechmatediary.com/tag/food/

www.chokdeedimsum.com/th/menu.php

www.boncafe.co.th/recipes/drinks...iwi.html

www.vosgeschocolate.com/product/...re_cocoa

www.health.com/health/gallery/0,...,00.html

http://blog.jeremey.com/jeremeys_weblog...ano.html

www.zunigainteriors.blogspot.com/200...ive.html

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www.sainampingcoffee.com/Espress...fee.html

http://uncyclopedia.wikia.com/wiki/Latte_art

http://en.wikipedia.org/wiki/Latte_art

www2.warwick.ac.uk/fac/arts/lang...g/latte/

http://www.surveymonkey.com/s/NCFR3GB

http://www.doichaangcoffee.com/

www.beyondthebean.com/news/ciao-milano

Documents

Coffee Cafe' at Doi Mae Salong