Beauty surprise box Sec.1 Seat 12

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Preface

This project gets to information planning and methods by Project feasibility course from hypo-

thetical situation that “I’m a millionaire. I leave far away from Thailand. I have a lot of money. It's

much more than you can imagine. What should be the best business investment project for the

team?”This project will explain analytical methods and techniques useful in this project and capital

budgeting of beauty surprise box project. Also, the content has been included to illustrate methods, risk,

finance, techniques and strategies. This project discusses strategic, qualitative, and organizational con-

siderations which impinge on capital budgeting for decisions of investment. It also describes and eva-

luates the business practices in the area. We hope this project can guide people who interest. If there is a

mistake in some point, we have to apologize for that through this preface.

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Table of Content

Preface …………………………………………………………………………………. I

Table of Content ……………………………………………………………………….. II

Executive Summary …………………………………………………………………… IV

Chapter 1: Introduction

1.1 Background and Significance of the Project ………………...……… 1

1.2 Project Objectives …………………………………………....……… 8

1.3 Benefits of Project ………………………………………..………….. 8

1.4 Time Frame of Activities …………………………………………….. 9

Chapter 2: Industry Profile

2.1 Nature of Industry …………………………………………...………… 11

2.2 Situation of Industry ……………………………………..……………. 16

2.3 Products/Service (in General) ………………………………….…... 20

2.4 Vision of Organization ………………………………………………… 21

2.5 Mission ………………………………………………………..………. 21

2.6 Strategy ………………………………………………………………… 21

2.6.1 Corporate Level

2.6.2 Business Level

2.6.3 Functional Level

Industry Summary ………………………………………………………. 24

Chapter 3: Market Feasibility Study

3.1 Market Analysis ……………………………………………………… 25

3.1.1 PEST Analysis ……………………………………………… 25

Political

Economic

Social and Environment

Technology

3.1.2 Competition Analysis (3C Analysis) ………………………… 29

Competitor Analysis

Customer Analysis

Company Analysis

3.2 STP Analysis ……………………………………………………..….. 32

3.2.1 Market Segmentation

3.2.2 Target Market

3.2.3 Market Positioning

3.3 Marketing Mix Strategy ………………………….…………………. 34

3.3.1 4P

3.4 SWOT Analysis ………………………………..…………………….. 35

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3.5 Sales Forecast ……………………………………………………. 36

3.6 Marketing Expense ……………………………..………………. 41

Sale forecast Explanation …………………………………………… 41

Chapter 4: Investment Analysis

4.1 Pre operating cost ……………………………………….………. 42

4.2 Investment Cost …………………………………….…………… 43

4.3 Investment depreciation ………………………………………….. 48

Chapter 5: Operations Analysis

5.1Production and Operations Analysis ……………………………….. 53

5.1.1 Product Characteristic

5.1.2 Service Process

5.1.3 Process and Packaging

5.1.4 Materials

5.1.5 Direct Labor

5.1.6 Logistic Management

5.1.7 Facility Management

Chapter 6: Management Analysis

6.1 Administration Analysis ……………………………………………… 64

6.1.1 Organization Management

6.1.2 Administration Cost

Chapter 7: Financial Analysis

7.1 Profit/Loss Statement ……………………………………………… 67

7.2 Cash Flow Statement ………………………………………………. 72

7.3 Balance Sheet ………………………………………………………. 77

Chapter 8: Risk Management

8.1 External Risk Assessment ……………………………..….………. 82

8.2 Internal Risk Assessment …………………………….…………….. 83

8.3 Financial risk ………………………………………………………. 84

Chapter 9: Summary

9.1 Strategic Management ………………………………………..…… 90

9.2 Financial Management …………………………………..……….. 90

9.3 Risk Management ……………………………………..…………. 90

9.4 Other Related Terms ………………………………..……………. 91

References

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Executive Summary

Beauty surprise box business provides an analysis and evaluation of the current and prospective

profitability, liquidity, marketing and financial stability of the company. Methods of analysis include

trend as well as ratios. It also describes and evaluates the business practices in the area.

Our business is selling cosmetic product and service to distribute happiness of modern girl in this

era just like cosmetic product. It‘s challenging to change the perception of girl to concern our product

however we can like changing cosmetic product to be beauty box which bring any cosmetic product in

the beauty box. To difference from other cosmetic product, we use new design for easy portable clean

view. To response modern lifestyle of population in this country we have delivery service to safe cus-

tomer times. Promotion of our business will be the gift of cosmetic; Marketing informs advertise will be

on internet and radio. We choose Bangkok for center because, Bangkok is the capital. Transportation is

very easy, and easy for sent product to customer. Bangkok has many ways for transport and accepts the

product such as Bangkok Mass Transit System Public Company (BTS), and Mass Rapid Transit Author-

ity of Thailand (MRTA).Moreover, companies that cooperate have a building in Bangkok and near.

The location of center builds in Bang kepi, Ladprao. This location has a wide for stock of prod-

uct. My company want to area for stock of product, because we cooperation to many company. Bangkok

has many facilities and it‘s central of industry and tread. Our target customer is women mostly universi-

ty students, workingwoman whose age aren't exceeding 35 years. Currently in the market have many

product about cosmetic which customers can‘t select the product which suit on them. We choose this

group of people because we find this group has more demands on cosmetic rather than other group of

people. Also, they‘re interested to use new products and ready to pay if the products are appropriate for

them.

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A review of our competitors shows that we will be competing against four other establishments

in Thailand. Our business focus on different target markets, pricing structure and marketing approaches.

In planning for our launch, we have put together a financial plan based on forecasts for the five first

years.

Management for 5 year from all elements we trust Beauty Box Company will catch consumer

mind and survive in hard competition market. Now our business is ready to compete with other competi-

tor with good quality and fast serving we trust we can beat competitor and get sharing in the cosmetic

market. Our business open to all investor to invest with us results of data analyzed show that all infor-

mation are we surely we can get 2.3% of market share in 5 year investor will receive dividend for 15%

after pass years one

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Chapter 1

Introduction

1.1 Background and Significance of the Project

History of cosmetic: Cosmetics have been used for as long as there have been people to use

them. Face painting is mentioned in the Old Testament (Ezekiel 23:40) and eye shadow was used in

Egyptian burials dating back to 10,000 BC (Llewellyn) The word "casemate" was first used to describe

Roman slaves whose function was to bathe men and women in perfume. (Keville, Green) Since the

Egyptians, each subsequent civilization invented unique words that referred to cosmetics and fragrance

as one science, but the science eroded after Rome. Anthropologists speculate that primitive perfumery

began with the burning of gums and resins for incense. Richly scented plants were fused into animal and

vegetable oils for ceremonial anointing and for pleasure. From 7,000 to 4,000 BC, the fatty oils of olive

and sesame were combined with fragrant plants to create the original Neolithic ointments. When the

Egyptians were learning to write and make bricks in 3,000 BC, they were also importing large quantities

of myrrh. The earliest recorded items of Egyptian commerce included spices, gums and other fragrant

plants that were reserved mainly for religious use. (Keville, Green)

Egypt

As early as 10,000 BCE, men and women used scented oils and ointments to clean and soften

their skin and mask body odor. Dyes and paints were used to color the skin, body and hair. They rouged

their lips and cheeks, stained their nails with henna, and lined their eyes and eyebrows heavily with

kohl. Kohl was a dark-colored powder made of crushed antimony, burnt almonds, and lead, oxidized

copper, ochre, ash, malachite, chrysocolla (a blue-green copper ore) or any combination thereof. (Co-

hen) It was applied with a small stick. The upper and lower eyelids were painted in a line that extended

to the sides of the face for an almond effect. In addition to reducing sun glare, it was believed that kohl

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eyeliner could restore poor eyesight and reduce eye infection. (ED 370) Kohl was kept in a small, flat-

bottomed pot with a wide, tiny rim and a flat, disk-shaped lid. (Carnegie Museum)

Cosmetics were an inherent part of Egyptian hygiene and health. Oils and creams were used for

protection against the hot Egyptian sun and dry winds. Myrrh, thyme, marjoram, chamomile, lavender,

lily, peppermint, rosemary, cedar, rose, aloe, olive oil, sesame oil and almond oil provided the basic in-

gredients of most perfumes that were used in religious ritual and embalming the dead (Cohen) For lips,

cheeks and nails, a clay called red ochre was ground and mixed with water. Henna was used to dye fin-

gernails yellow or orange. Makeup was stored in special jars that were kept in special makeup boxes.

Women would carry their makeup boxes to parties and keep them under their chairs. Although men also

wore makeup, they did not carry their makeup kits with them.

Greece

In Greece, precious oils, perfumes, cosmetic powders, eye shadows, skin glosses, paints, beauty

unguents, and hair dyes were in universal use. Export and sale of these items formed an important part

of trade around the Mediterranean. During the 8th and 7th centuries BC, Corinthian, Rhodian and East

Greek traders dominated markets in perfume flasks and cosmetic containers. The containers included

aryballoi, alabastra, pyxides and other small specialized shapes. Cosmetic unguents were imported into

Greece in containers carved from the Red Sea Tridacna shell. In the 6th and 5th centuries, Attic products

stole the market with toilet oil dispensed in lekythoi flasks. A bulk storage container for scented oils and

perfumes was called a pelike. Pelikes were initially designed to withstand the constant handling and ri-

gors of sea transportation while protecting the contents and maximizing cargo space. As commerce ex-

panded and packaging design became more influential, manufacturers improved packaging to attract

consumers. During the Classical period, pelike packaging in terracotta aryballoi and alabastra retailed at

a premium. Simultaneously, cored-glass vessels began to appear in shapes adapted from terracotta con-

tainers.

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The history and evolution of cosmetics have many country and a many thousand years in past to

now.

History of beauty box: During recently years you‘ve seen many kinds of new cosmetics from

many companies. Of course, it rises up to satisfy the need of women who love to make up and take care

of their skin. But how do you know that the products which issue in the market are fit to your skin if you

do not buy and test it. If that is true, how much will you spend on something that we do not know the

result? And if you do not satisfy/get allergy with them how should you do with that?

From those questions made the creation of one business names ‗Beauty Subscription Services‘ or

beauty box in general. The BSS will collect many kinds of cosmetic put in the medium box and send to

subscriber every month. All the cosmetics that they put in the box will be in the sample size, sometimes

they‘ll put the real size to test too. It becomes popular among women because the business is already

spread to many countries in the world. Also, in USA the BSS is popular in men because they have BSS

for men only, like His Black Box, Male Box and His kit.

The process to receive this beauty box is same as subscribe monthly magazine, you can choose

whether a month, 3 months, 6 months or a year. It costs from around $10 (or 3xx Bath). The process to

be a member, they‘ll ask you about your skin type, skin color, hair type and kinds of cosmetic that you

usually use. The answer will collect in beauty profile to get the product which similar to your skin. After

that the company will send you a box every month, and in the box will contain with 3-5 pieces of sam-

ple cosmetics.

Information of sample/trial/tester cosmetics: "Tester" or trial, it‘s usually contained in a small

enough packages which can be used for1 week. In this trial, it includes products that can be sold as well.

These small product canpersuade consumers to buy the real size products, the quality are the same as the

full size; the buyers will feel that they have a chance to try the product quality before you have to pay

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the full price. Also, this provides an opportunity for the buyer who likes to try new product before pur-

chasing.

The trial of the skincare products on the counter brands make constitutes a stimulus to buy prod-

ucts that clients have never bought to use. Most often they‘ll come back to buy a full size after try a

short trial. This does not look crowded, but it‘s like friends invited to give the impression that make the

client come back next time. Also try to make the promotion which makes customers order products

more and more to achieve the sampling. This approach can reduce the size of the sampling to be smaller

sample size than you‘ve given it. This approach has resulted in the purchase of another, when client try

to use, it may be a buying opportunity compare with not about to buy it and not get anything.

Tester cosmetic is the original of product. There is no difference in fragrance, strength, or quality

between a tester and one that comes in its original, they‘re the same. All the testers are sold full and un-

used. Testers have not been tested. Many people prefer to purchase a tester, because they feel it to be a

waste of money to spend so much extra, simple for the exact same fragrance. With the increasing popu-

larity of tester these pieces are now commonly sold in the open market. Occasionally, the phrase ―Not

for Sale‖ (or NFS) may appear on testers or miniatures. Thais because the product was originally prod-

uct was originally produced for promotional purposes.

Online/e- business: Business Online is a convenient, quick and cost effective way to manage

your business banking. Your customer number and password will give you access to Business Online.

Electronic commerce, commonly known as e-commerce or E-commerce, consists of the buying and sell-

ing of products or services over electronic systems such as the Internet and other computer networks.

The amount of trade conducted electronically has grown dramatically since the wide introduction of the

Internet. A wide variety of commerce is conducted in this way, including things such as electronic funds

transfer, supply chain management, e-marketing, online marketing, online transaction processing, elec-

tronic data interchange (EDI), automated inventory management systems, and automated data collection

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systems. Modern electronic commerce typically uses the World Wide Web at least some point in the

transaction's lifecycle, although it can encompass a wide range of technologies such as e-mail as well

Here are just a few advantages of going online: Powerful, fast and efficient marketing and com-

munication tool and medium minimal startup time & investment search engine optimized websites pay

themselves off very quickly as long as they provide customers with valuable products or services

The most environmentally friendly way to run a business, Telecommuting reduces the number of

cars and car miles. You can test your sales strategies and offerings without wasting precious paper. Put

your invoices, newsletters and catalogs online and save numerous trees very inexpensive way to reach

new markets and interact with them office & transportation cost savings unlimited possibilities for au-

tomation of your business. You can automate your order and payment processes, inventory manage-

ment, your customer support tasks and more freedom to live and work where you like. You can be trav-

eling while running your online business and run multiple businesses simultaneously.

Our business is selling cosmetic product and service to distribute happiness of modern girl in this

era just like cosmetic product such as lipstick, flour powder, eyebrow and the main market of our prod-

uct is female in this country. Normally the nature of female wants to be good looking by the cosmetic.

It‘s challenging to change the perception of girl to concern our product however we can like changing

cosmetic product to be beauty box which bring any cosmetic product in the beauty box. To difference from

other cosmetic product, we use new design for easy portable clean view. To response modern lifestyle of pop-

ulation in this country we have delivery service to safe customer times. Promotion of our business will

be the gift of cosmetic; Advertise will be on internet and radio. From all elements we trust Beauty Box Company

will catch consumer mind and survive in hard competition market. Now our business is ready to compete with oth-

er competitor with good quality and fast serving we trust we can beat competitor and get sharing in the cosmet-

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ic market. Our business open to all investor to invest with us we surely we can get 2.3% of market share in 5 year in-

vestor will receive dividend for 15% after pass years one.

Do you know about cosmetics business in Thailand? Here is more information; the chemical in-

dustry for cosmetics is likely to grow due to improvements of scientific. As recently, Thailand becomes

a production base of cosmetic and health products, and there‘s also exported products which make from

raw vegetables and herbs for the botanical industry, health products, and supplements. It has a market

value more than 115,000 million Baht

Moreover, the number of growth market on cosmetics and chemical plant in Thailand in 2010

grew at 25% and it can be estimated in 2011 that it‘ll increase 30%. For the exported market in 2010

increase to 36%, and can be predicted that the year 2011 it‘ll grow more than 35-40%.

Also, even the exported value of cosmetics industry has fell to 27.4 percent compared with the

previous quarter, but it‘s risen 18.57 percent compared to the same period on last year.

The trend of cosmetics business became brighter in 2011.The expectation on exported grew to

25%. Healthcare and the elderly people would be the next trend to gain the market share; it pushed ‗Ag-

ing market‘ growth, and also the organic cosmetics became popular.

In 2011, the exported market on cosmetics would grow more than 25%, while the domestic cos-

metics market overview continued growth. Meanwhile, the overall economic in the country would be

expanded, and the U.S. and European economic would recovery. The growth of cosmetic products in the

past 3 years has been attractive for us, by the average 10 -15 percent per year which seems to be in-

creased. Also, net sales of the importers and distributors are growing together as well. This shows the

market potential of the products which are popular in Thailand. The total of imported cosmetics value

around 3,000 million Baht per year, 70 percent of cosmetics are from Europe, America and the rest 30

percent are from Japan.

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The main factor of this situation is the demand for cosmetic in women is increasing, because

they still want things to make them beauty. Also, cosmetics can help them to be fresh and happy, al-

though the economy still decline.

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1.2 Project Objectives

Understand about the beauty box business

Understand how to manage the model

Understand about working and time

Understand about today‘s consumer

Understand about advantage and comparing with competitor

Understand about investor process and focus on profit point

1.3 Benefits of Project

Deliver luxurious makeup and personal care samples from both well-known brands and

drugstore brands.

Products are picked by our beauty experts based on buyer‘s beauty profile.

All samples are picked based on your beauty profile and your needs.

All shipping and handling fees are included in the subscription.

Buyer can test new product samples before they decided to buy the full-sized products.

Buyer can discover new things with excitement.

If you sign up for 6 or 12 months, you will get free boxes.

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1.4 Time Frame of Activities

Gantt chart and Time Frame of the study

Activities November December January February

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

1.Choice Topic

2.Searching Information

Internet

3.Topic Submission

Fix problem

Search information

4.Introduction Submission

Background

Significant

Benefit

5.Study the business pro-

file

Companies image

Logo and Brand

6.Study Analyze market

feasibility

STP Analysis

4Ps

Competitor Advantages

7.Study technical Feasi-

bility

Determine the necessary

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resource

8.Study and analyze the

financial of our business

Financial Annual report

Determine cost

9.Study and manage the

risk of our business

Risk analysis and Other

Control risk analysis

10.Project Advertising

Determine story

broad

Prepare story broad

11.Writing and analyze

the report

Evaluation

Restate

12.Checking Final Draft

13.Conclusion the feasi-

bility of business and sug-

gestion

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Chapter 2

Industry Profile

2.1 Nature of Industry

The demands of beauty product have increase in few years. Observation about the brand of beau-

ty product has announced in the many way of communication, even if the way of e-commerce in the

market no popular, because the consumer concern about the product. Also we have to present the way of

girl who want to be the owner of beauty box. Moreover we have selected the internet to be the main way

to contact the target of our product. Because the number of user has increase in few years, it has the big

opportunity to create the huge market share. The population have use internet in 2000 is 2,300,000. But

in 2012 the number of user increases to 20,100,000. It has to show the way to create the consumer in

this market.

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Ecommerce in Thailand

This year (2011) Thailand e-commerce is growing very fast with the behavior of Thai users

changing rapidly. Statistics from NECTEC show that the percentage of Thai users shopping online has

risen from 47.8% in 2010 to 57.2% in 2011 which is already a 9.4% increase from the previous year.

These statistics confirm that Thai users are becoming more familiar with online-shopping and many

companies are starting to use online business strategies to attract more customers.

The factors driving the increase in Thailand e-commerce

1. Online payment system development

In the past, Thailand e-commerce companies just had credit cards to support online payments

however credit cards in Thailand have not in the past been that popular. Now more payment systems are

developing and users have many choices to make an online payment such as using credit cards, debit

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cards or online payment service companies. All of the Thai banks give priority to online payments, and

have developed systems that can accept debit cards or allow internet banking to make an online pay-

ment. The money will directly be deducted from user accounts after products have been purchased. On-

line Payment Service Companies are another choice for users that don‘t have credit cards. There are cur-

rently 3 companies in Thailand providing these services including Pays buy, PayPal and TARADpay.

Moreover, Thailand also has MPay and True Money services to support users that would like to make a

payment via mobile. Users are obviously finding it more convenient to shop and make payments online.

2. Ease of creation of e-commerce websites

A lot of companies in Thailand provide instant e-commerce websites where you can create a new

online shop within 24 hours. It‘s easy to create by just following the instructions. This in turn has

enabled the number of online shops to increase substantially each year. Additionally, last year big shop-

ping malls in Thailand including Central, The Mall, Big C, and Lotus began to start online shopping

campaigns to increase sales volumes which have provided users with more choices to select products

they want.

3. E-commerce shops always have promotions

E-commerce shops have a lot of competitors so most online shops try to attract customers by of-

fering lower product prices or conducting special promotions. This is another reason that the number

online shoppers in Thailand is increasing.

4. Group buying Trends

In Thailand Group buying trends on social e-commerce is also increasing. The price of products

will decrease when buyers join together to buy the product with the greater the number of buyers, the

lower the price. Therefore most buyers will spread the news about such promotions via social networks

like Facebook. Such a strategy can attract more users to buy products on the internet.

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Supplier of products and brands

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Sample cosmetics

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2.2 Situation of Industry

Situation in nowadays the company have increase of order and contact of cosmetic brand. Be-

cause to expend or internet user. It have affect to big chance to make the brand loyalty. This‘d good

news for the company because this business has many competitors in every moment. Also our company

has reputation and brand royalty. So every competitor has included so brand have policy to change the

way to distribute the product.

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Market Overview

The overall growth rate of the cosmetic products market in Thailand in 2006 is expected to be at

12 percent, 3 percent more than the year before. The increasing growth is considered to be significant

considering the continuing economic slowdown and the prolonged unstable political situation in Thail-

and. High quality, international branded cosmetic products are expected to do better and may have a

growth rate between 15-20 percent due mainly to good brand image, brand loyalty and perception of

good quality. Products from the United States are highly regarded and lead the imported market. Com-

petition from France, Japan, the United Kingdom and Germany is getting stronger. Perfume from France

remains the market leader in Thailand followed by perfume from the US. Hair care and make up prod-

ucts maintained a single digit growth, while skin care and perfume showed better growth at 17 and

15percent respectively. The product lines that are considered a problem-solving cosmetic have good

growth potential. They include products such as anti-wrinkle cream, anti-aging facial cream, and whi-

tening facial and body lotion. More cosmetic products especially designed for men are becoming popu-

lar. Thailand remains a strong manufacturer and exporter of shampoos and other hair care products, col-

or cosmetic and skin care products. Direct sales are the preferred distribution channel and account for 60

percent of the total market.

The cosmetic products in Thailand are available at all levels, ranging from very high-end inter-

national well-known brands to very low-end, low quality locally produced brands. Thailand is a major

producer of cosmetic products, local production mainly concentrates on low to medium quality color

cosmetics (make up products, especially lipsticks and nail polishes), skin care products (body lotion and

soap, both bar and liquid) and hair care products (mainly shampoo and conditioners). Leading interna-

tional companies that have production facilities in Thailand include Uniliver, Procter & Gamble, Col-

gate-Palmolive, and Johnson & Johnson.

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Over 60 percent of the imported cosmetic products are high-end facial and skin cream, most-

ly anti-wrinkle, anti-aging, and body and skin care products. The products from the U.S. dominate this

subsector with approximately 32 percent share. Leading international brands include: Estee Lauder, Cli-

nique, Shisheido, ChristianDior and Lancome, Olay, Eucerin, La Roche-Posay.

Competition among the cosmetic suppliers and distributors is always fierce and strong. The pre-

vailing economic slowdown makes the competition more severe, especially among medium to low qual-

ity body care, skin care and hair care products. The suppliers of these products always introduce new

strategies not only to retain their existing customers but also to capture greater share and enlarge their

customer base. All leading cosmetic companies invest heavily in promotional campaigns to keep their

market share and to stimulate the market. High-end international brand cosmetic products use women‘s

magazines as their major advertising means to reach their potential buyers. Premiums and point-of-sale

promotional campaigns are also used regularly to stimulate sales. Counter sales at major department

stores are their main sales channel. The counter sales account for approximately 30 percent of the total

cosmetic sales in Thailand. For low to medium quality cosmetic products, TV is the main venue used for

advertising campaigns. Sampling and giveaway are the two leading promotional strategies utilized to

introduce new products and to stimulate the sales of existing products. Uniliver and Procter & Gamble

are the leading advertising spenders in Thailand. Direct selling, discount stores, drug stores and conven-

ience stores are the major channels of distribution for medium and low quality cosmetic products.

The use of herbal supplement ingredient as a product selling point is increasing especially among

the locally produced cosmetic products. It is an effective means to differentiate and adds value to

the products. Among the many herbal supplements, green tea is the leading herbal recognized and

used in various products. The inclusion of a whitening agent in the facial and body care products is

widely accepted by the Thai buyers too. Most Thai have light brown complexion so cosmetic products

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with a whitening agent are very popular in this market. A whitening agent is popularly used as a market-

ing tool to promote the products. The emergence of spa treatment and its increasing popularity among

locals and foreigners creates new demands for OEM contract manufacturing of cosmetics specially de-

signed for spa consumption.

The overall growth potential for the cosmetic products during the next three years (2006-2008) is

optimistically expected to grow between 15-20 percent. With a total potential customers base of 18 mil-

lion (women between the age of 15 to 50 years old), most of them salary workers, Thailand‘s market for

cosmetic products has a very strong group of potential buyers. Political stability after the general elec-

tion due by or before the end of this year should bring back the consumers‘ confidence. Consumer

spending is expected to grow positively after a new government is formed.

2.3 Product/Service (in General)

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We provide 4 types of monthly box for customers to choose whether they like.

1. 1 box for 1 month [cost 395 Baht]: This is for people who are new in this product and want to try

our product before deciding whether continuing or stopping.

2. 3 boxes for 3 months [cost 1,185 Baht]: This is for new members and people who want to try

more than a month but do not want to try for longer than that.

3. 7 boxes for 7 months but cost only 6 months [cost 2,370 Baht]: This is for members who are

well known the box and enjoy continuing receive the boxes. We‘ll also provide the special mag-

azine for members who join in this type.

4. 14 boxes for 14 months but cost only 12 months [cost 4,740 Baht]: This is for members who be-

come loyalty with the box and enjoy continuing receive the boxes. We‘ll also provide the special

magazine and special cosmetics for members who join in this type.

*The products that we put in the boxes will be the sampling or trail from many cosmetic brands that

we‘re already selected and see the quality /how much people use. The members will not know that in

each month what they will get from the boxes, so they‘ll be surprise and counting to get the next box for

the next time.

2.4 Vision of Organization

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Being the leader in beauty box business and being the main company that many cosmetic brands

want to join the business with.

2.5 Mission

To create new promotion to persuade customers to subscribe the box and keep the old members

to be with the company, find more and more cosmetics which customers will interest, increase the cus-

tomers by letting people from close countries to try the product and let them to register to get more spe-

cial things.

2.6 Strategy

2.6.1 Corporate Level

Our organization choose to manage

business by use ―Intensive Strategies‖ that con-

cern about "aggregation" or expansion under

which growth is achieved by expanding the

scale of operations. That our organization de-

cides to use ―Product development‖ that we im-

prove present product by collect more of cos-

metic brand that will be the new release (Sam-

ple) and put into one box and set the price for

the member. For example 1 box for 1 month

[cost 395 Baht]: This is for people who are new

in this product and want to try our product be-

fore deciding whether continuing or stopping.

2.6.2 Business level strategy

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Business level strategy has an objective

to improve the Strategic business unit (SBU) to

get the competitive advantage under the law and

ethic of business or it‘s will be the strategy that

the organization use for gain the advantage over

the competitor. From the Michael Porter‘ Ge-

neric Strategies that compose with low cost lea-

dership, differentiation, and focus strategy. Our

company (beauty box business) select the ―Dif-

ferentiation strategy‖ to use in our business be-

cause our company wants to make different

from the competitor by use box that collect

more of cosmetic brand (Sample) into one box

that responds the need of customer because no-

wadays every brand of cosmetic launches more

product to the market that make customer needs

to buy it but it doesn‘t simply to know what

brand is suitable for them. So our company has

an idea to bring the new release (Sample)of

many brand put together in one box that make

customer can test it before make a decision to

choose the brand that suitable for them.

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2.6.3 Functional level strategy

Marketing Department

Define Marketing mix (4P)

Find the distribution channel

Make a high market share

Do the STP

Do the SWOT analysis

General Management Department

Make appropriate schedule (work and time)

Develop team work

Improve management system internal organization

Manage organization‘s structure and responsibility

Human Resource Management Department

Recruit employee has a specific skill that relate work

Employee‘s working hour

Define qualification of each employee

Financial/Accounting Department

Evaluate fund investment and cash flow

Capital Structure

Calculate every cost that relate to the business

Make income statement and balance sheet every month

Evaluate Budget & Tax

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Industry Summary

According to the increasing of demand in cosmetic products in women, the industry try to select

the strategy which can satisfy the demand of them by chosen ―Intensive Strategies‖ that concern about

"aggregation" or expansion under which growth is achieved by expanding the scale of operations. Our

organization decides to use ―Product development‖ because we want to improve the presentation of

product by collect many kinds of cosmetic brand that will be the new release (Sample) and put into one

box and set the medium price for customer to subscribe. For example 1 box for 1 month [cost 395 Baht]:

This is for people who are new in this product and want to try our product before deciding whether con-

tinuing or stopping.

By this reason, the industry can distribute products to target customer directly. Also, when the

subscribers or members who have registered for the product and satisfy with the product, they‘ll tell to

their friends and everyone that they know to apply for the product as we call it ―word of mouth‖ strate-

gy.

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Chapter 3

Market Feasibility Study

3.1 Market Analysis

3.1.1 PEST Analysis

General Environment Analysis (Beauty surprise box)

Political

The political is the main factor of many businesses because

political is the factor that shows the stability of the country that can

make confidence for the foreigner to invest in our country.

Thailand politics is something not many know a lot about,

but in recent years there has been a lot of political news stemming

from Thailand. Thailand is a lot like the United Kingdom in its

current state of politics, but with a lot more stability issues that the

United Kingdom doesn‘t see. The reasons behind this are intri-

guing, but to understand them you first need know more of Thail-

and‘s government as a whole.

The country of Thailand is currently known as a constitutional monarchy, a type of government

that only a few countries still hold onto today. This type of government is unique because unlike a pure

monarchy, the monarchs are typically strictly just political figures with very little power, or power that

is limited by a constitution. The main decision-making comes from elected officials that are within a

parliament, much like the United States Congress.

In recent years, Thailand has had an interesting political climate; between the coup d‘etat, which

occurred in September 19, 2006, and the change of government-types after the fact, Thailand has been

an ever-changing environment for the past twenty years. The coup was, remarkably, bloodless. It oc-

curred about a month before the nation-wide general elections. This mini-revolution was led by the Thai

Royal Military and shut down the elections, invalidated the Constitution, and suppressed and censored

the media. The army also arrested several Cabinet members of the Thai parliament. Thaksin Shinawatra,

the prime minister of Thailand, was ousted from power while he attended a United Nations meeting in

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New York. His time as prime minster is credited to the reason for the coup, since it allegedly created a

―rift‖ in society. Thaksin was accused under several categories of corruption, including ―abuse of power,

vote-buying, ethics violations, human rights violations, and interference in the political check system.

(The Nation) However, the actual reason for the coup is still unknown. Many analysts still speculate as

to why the coup actually occurred. Some say it was due to an on-going strife between the King and

Thaksin. (BBC News) Giles Ungpakorn, an academic of Chulalongkorn University, credits the conflict

to class conflicts between the elite and the urban poor. (Roberts & Symonds)

A ―new‖ government was formed immediately after the coup. General elections were promised

within a year, and Thaksin was allowed to return to the country. Thaksin currently remains in a self-

imposed exile however for fear that he will be arrested along with his family if he does return. In recent

years many of his supporters have been seen to be wearing red shirts in support of his return to power as

well as to Thailand. In contrast the yellow shirts are supporters of the monarchy.

Following the election promise Marshall Law was declared, and censorship of media outlets be-

came an important part of keeping people ―in-check‖—–no defamation against the military was allowed

on any airwaves, or social media. The self-declared ―temporary‖ military regime banned any form of

political assembly or protest by Thai citizens, and any group of people that exceeded five in number

were required to hold a permit to travel throughout the country.

Elections did indeed happen one year after the coup. However, not before the military regime es-

tablished the Permanent Constitution for the Kingdom of Thailand in August of 2007. The Constitu-

tional Tribunal, which drafted the new Constitution, outlawed the Thai Rak Thai party, the largest polit-

ical party in Thailand, from participating in politics for five years. Attempting to bypass this ban, the

TRT dissolved and regrouped under the name, People‘s Power Party. While the military regime at-

tempted to subdue the PPP, the party won the popular vote of the people in December of 2007, gaining a

majority in the House. This ―win‖ was not taken lightly by the military regime: various members of the

PPP were given ―red cards‖ and accused of corruption. Rumors of dissolving the PPP spread, and by

2008, the PPP had merged with five smaller political parties, leaving the Democratic Party as the sole

opposition in elections.

Abhist Vejjajiva was elected Prime Minister of Thailand in 2008. Abhist based his political plat-

form on rights for the people, especially the rural and working poor of Thailand. However, his actions

did not align with his platform. He was accused of immense amounts of corruption and censorship of the

media. As political protests increased due to his regime, so did accusations of human rights violations

and torture. People around the country became more skeptical of Abhists‘ actions and his motives. His

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―crackdown‖ of the protests by the National United Front of Democracy Against Dictatorship in 2009

resulted in several deaths and hundreds of injuries. This of course heightened the scrutiny that Abhist

was already facing.

In July of 2011, Thailand once again held a general election. This time, Abhist Vejjajiva would

run against Yingluck Shinawatra, former Prime Minister Thaksin Shinawatra‘s sister. Yingluck was

running in affiliation with the Pheu Thai Party(PTP), while Abhist ran with the Democratic Party. The

Pheu Thai Party won the election by a landslide. Naturally, accusations of corruption were present, and

a reelection and recount was ordered in several Thai provinces. Still, Pheu Thai kept its win, and Yin-

gluck Shinawatra was named Prime Minister of Thailand.

Currently the political climate in Thailand has calmed in comparison to recent years, this howev-

er isn‘t a guarantee that things won‘t change in a blink of an eye. The Thai people have shown that they

won‘t put up with the corruption of government officials, as has the Thai military. This is possibly one

of the reasons the Thai government is undergone so many changes in the past few years, as well as attri-

buting to the stability issues the government has faced in recent years. One thing is for certain however;

the Thai people take politics very serious and will put their vote and voice where it counts when needed.

Although the political has more effect to many business but it has not many effect to our business, be-

cause Thai regulation not be strict in the e-commerce and our business are sold only in Thailand that not

take an effect too much from the foreigner.

Economic

The Thai National Economic and Social Development Board (NESDB) forecasts 2012 to pro-

duce economic growth of 3.5 - 4%. Thailand's export rate in 2010 grew by over 28 % and the second

quarter of 2011 continued to show strong expansion, attributed mainly to exports of USD 21.1 billion.

This was 16.8 % higher than last year. Thailand's average FDI figure for the last five years was US$ 668

million accounting for approximately 2% of GDP. And the FDI target is projected to rise to US$ 2.5 bil-

lion in 2015, resulting in a FDI/GDP ratio of approximately 4%.

This will pave the way for an economic growth rate of 8-10%. Re-

cently, the Thai Board of Investment announced that for the first

seven months of 2011, investment value was almost 300,000 mil-

lion baht. For 2011 a 10% growth rate is projected for the country's

automotive production where 2010 saw production of 1.7 million

units. Thailand's electronics industry is also on a roll.

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From the investment and economic outlook above, SUBCON Thailand 2012 – ASEAN'S leading

Industrial Subcontracting exhibition comes at the perfect time. 2012 is expected to be the largest ever

Industrial subcontracting exhibition in ASEAN. It is projected to feature over 300 top quality subcon-

tractors from many different industries and countries who will have the unique opportunity to grow their

business and establish new market directions at this special event.

Social and Environment

Thailand social almost depend on the economic and political situations that has more fluctuation

in every years.

Technology

Technology is the important role in our business because we sell our product through the website

(e-commerce). So the development of technology has an effect to our business that has a many factor for

example Face book, we can use Face book to advertising and review our product, and SEO system that

help our business through the search engine website by take our website to the top rank.

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3.1.2 Competition Analysis (3C Analysis)

Competitor analysis

We have only few competitors in Thailand which is not over 10 companies and has more free-

dom‘s owner in Thailand. We offer a mix of both high-end and drugstore brand products but our product

samples are more suitable for Thai women. Although our competitors offer more brands than us, we

provide specific products which are suitable for each of our customer. For example, if one customer fill

out in the form that she has oily skin then we will choose products which is good for oily skin to send

her. By doing so she will get the right product and it is not a waste of money.

Our direct competitors – QoQo Box and Vanity Trove

QoQo Box offer sample premium beauty products and products include everything from make up

to skin care to hair care products and more. This is QoQo Box‘s strength because they provide hair care

products and even expensive products. For example, they provide large sized samples that really allow

customer to compare the new products with their existing ones.

QoQo Box monthly subscription price is 495 baht which is a little expensive than our Beauty

Surprise Box. In addition, each QoQo Box includes 3-5 beauty samples but in our box we provide 5-6

beauty samples. So our Beauty Surprise Box gives more products at reasonable price.

QoQo Box Beauty Surprise Box

Price/month – 495 baht Price/month – 395 baht

3-5 sample products 5-6 sample products

QoQo Box

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VanityTrove give out the most effective time-tested favorites and top-quality trending beauty

products in the industry into a specially put together box. VanityTrove provide skincare treats, fra-

grances, makeup samples even bath & body and hair care products. VanityTrove have many beauty

brands available starting from A-Z.

VanityTrove monthly subscription price is 595 baht which is quite expensive compare to our

reasonable price. In addition, we provide more Asian beauty brands which are more suitable with Thai

women.

VanityTrove Beauty Surprise Box

Price/month – 595 baht Price/month – 395 baht

VANITYTROVE

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Customer analysis

Who are our customers?

between 19 to 30 years of age

both female and male

university students and office ladies

Where customer can contact?

Our official website

Facebook

Twitter

Youtube

Mobile phone

Why customers want to subscribe

our beauty surprise box?

To try new product samples before the ac-

tual products launch in the market

To give a Gift to their moms, sisters, girl

friends and colleagues

Our target customers are people who interested in beauty trend and who like to try new products.

Our target groups of customers are between 19 to 30 years of age. Main customers will be university

students and office ladies. Our customers can be both male and female. We provide the products suitable

for this group of customers.

Company analysis

We strive to create a special beauty experience that enhances all the elements for you. Our Beau-

ty Surprise Box brings a fabulous monthly selection of between five to six cosmetic samples straight to

your door. By working with the best brands and focusing on the latest beauty trends we ensure each

month‘s box is a real treat. Make sure you fill out your beauty profile and enjoy a personally crated box

of cosmetics, lifestyle goods and luxury products. Make cosmetics discovery a social exercise – share

your experience on YouTube, Twitter, and Face book. What make our Beauty Box different from other

companies is we advertise our Beauty Box not only via internet website but also via Television. For

customers who don‘t have time to use internet, we give a service for them to call via mobile phone and

order our Beauty Box.

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3.2 STP Analysis

3.2.2 Market Segmentation

Demographic

Our company segmenting customer by demographic that has a main factor are age and gender. From

the below picture we can see that the female and a range of age between 12-35 years are the mostly used

the internet. So our company will choose the female for our target but for the range of age our company

will choose the age range between 18-35 years for our segmentation because the female range of age

that interest the cosmetic and has a sufficient purchase power are mostly between 18-35 years.

User of internet in Thailand, The range of survey during 2012-02-01 to 2013-01-10

1. Gender

From the questionnaire 82300 copy

Male 49.28%

Female 50.72%

2. Age

From the questionnaire 82300 copy

Under 12 yrs. 4.17%

12 - 17 yrs. 27.53%

18 - 23 yrs. 23.93%

24 - 35 yrs. 24.64%

36 - 55 yrs. 16.83%

Above 55 yrs. 2.90%

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3.2.2 Target Market

Our target is the female 18-35 ages. We select this segment because in behavior of female like the

beauty item or tool to make her better. Moreover we have separate the age to 3 groups. First of all is 18-

21. This group is last teenage. In term of teenage they have interest the beauty and they want to test the

cosmetic. Second group have period 22-27 ages. This groups the working women. She has the power to

buy the product because she has the salary to consume our product. And finally this group section of

age consumer is 28-35. In this group is the most powerful to consume but they have more condition be-

cause their experience. That is the target of our company.

3.2.3 Market Positioning

We want to be the leader of fastest in this business ex. Fast distribute, fast response , because we

have work hard to study about problem with the cosmetic. Moreover I think our business have identity

of business. It‘s change the concept of gift. That is the mystery of the box. The consumer will push for-

ward about the item in the beauty box. By in nowadays the e-commerce businesses have increase of

growth rate. That is the big chance to become the first company to get the big market share. Moreover

the internet or cyber network is the factor to drive the company to successful in future. And we have the

way to distribute the product to the consumer faster than competition. And the target of our company

will select the product because our products have the quality.

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3.3 Marketing Mix Strategy

3.3.1 4P

Product

Our product is a beauty surprise box which sends to members every month if they subscribe to be a

member of the website. Our product is a medium box that contains small pieces of cosmetic sampling,

and sometime we‘ll put the full size of product to let members to try too. The small sampling that we put

in the box will be the counter brand/ drug store/ and any regular brand in Thailand. It‘ll be a good way

for consumer who like to try new things but do not want to get full size of it.

Price

Price: beauty box set price is medium of revenue. The customer can buy product by credit card for

convenience

Place

Our places are web site online, at www.beautysurprisebox.com and on our webpage on Face

book. We have office for compile product and pace product to customer at Bangkok; Because Bangkok

is the center easily to connect the company. The other factor for why that online, it‘s very popular and

convenient. The customer can order 24 hour and save time

Promotion

As our product is selling online and get product only once a month so we‘ll do online advertise-

ment and let bloggers to review our product. If we do this kind of advertising we have to send some

sample box to bloggers and let them try before they do a review to other people who follow them, this

strategy is a good and easy for the industry because we just take a benefit from power of ‗word of

mouth‘ to express the product directly to customers whom mostly are women. For attract more custom-

ers if they want to try the product, we‘d offer some promotion like for the new trial we have one month

trying box and if they satisfy with our product and want to continue being a member, we‘ll offer 3/6/12

months with a special price and more gifts for members who subscribe for 6 and 12 months such as pa-

lette of eyes shadows and beauty magazines.

http://www.beautysurprisebox.com/

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3.4 SWOT Analysis

Strengths:

Differently of product and brand for cosmetic

Cosmetic come from Asian and Western brand

Difference quality

Not have the shop. We sell only online

Weakness:

Our product similar to some competitor

Same level of product

Varity of each person

Opportunities:

More competition

Transportation for sent the product

Threats:

Each people have different likely

Different of country

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3.6 Marketing Expense (Sales incentive)

SEO

Promote website to top rank search of search engine like Google.com

Cost: 32,500 baht/ 6month to top rank search engine 1-3

Total estimation: 32,500 x 4 times (promote first 2 years of operating) = 130,000 baht

Sale forecast Explanation

Due to our company has opened in the first year 2012 and we did collection on sale to 5 years

advance, it‘s made the company know that the income will come during high season like New Year, Va-

lentines‘ day, Christmas and any celebration day in each month. So, during that period we‘ll do online

advertisement through every channel like Facebook, twitter, instragram, and on our website as much as

we can. For other season we‘d also do the advertisement through beauty website community like Jeban,

Vanilla, and Pantip to attract women or men who find the new way to get a sample box of cosmetic.

Moreover, we can see from the table that the lowing sell in some months may from low season, but

there‘d be another thing which can interrupt our selling, it is competitors. Our company has about 4 di-

rect competitors in Thailand, and they did the similar ways as us so the selling unit in each year will be

low and not constant until we are in the 5 years above.

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Chapter 4

Investment Analysis

4.1 Pre operating cost

A. Company’s billboard

The company decides to use plastic inkjet logo to put on the wall inside the company (the company will

have glass wall cover in the front). The logo will be the same as the picture above and make it bigger by

expand it out into 1*1.5 meters. Then, we‘ll put it inside of the company and the logo will show up to

people who walk on the street. The cost of this billboard will be ฿160 for 1*1 meter, so it will cost ฿240

and some fees will be ฿100.

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4.2 Investment Cost

Building

Our company is broad areas in Bangkok province Bang Ka Pi. Cause the big areas for keep the

product and near the post office for fast to send the product.

Lad Prao zone, 42,000 Bath / Month. SoiRamkhamhaeng 81

http://www.thaihometown.com/buildings/ 6361

http://www.thaihometown.com/buildings/6361

http://www.thaihometown.com/buildings/6361

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Layout

Office

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Warehouse

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Investment cost (only one branch)

Item Picture Unit

Price

per

unit

Total

price

Use-

ful

life

per

year

Annual

deprecia-

tion

Month

depreci-

ation

Telephone home-

panasonickx-ts500

10 480 4800 5 960 80

computer

10 12000 120,000 5 2,400 200

box

1000 5 5,000 - - -

Cover papers

1000 3.12 3,120 - - -

desk

10 4000 40,000 5 8,000 667

chair

10 200 2,000 5 400 33

calculator

10 150 1,500 5 300 25

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printer

3 24,000 72,000 5 14,400 1,200

Fire extinguishers

3 3,800 11,400 5 2,280 190

Others 5 200 1,000 - - -

Total 28,740 2,395

Mix for a branch is:

Total price = 266,070

Annual Depreciation Per year = 28,740

Month Depreciation = 2,395

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4.3 Investment depreciation

Year 1 (12months) Total price Useful life

per year

Annual de-

preciation

Month de-

preciation

Total Price after

depreciation

Cost Type

Telephone homepanaso-

nickx-ts500

(*10)

48,000 5 9,600 800 38,400

Computer (*10) 1,200,000 5 240,000 20,000 960,000

Desk (*10) 400,000 5 80,000 6,667 320,000

Chair (*10) 20,000 5 4,000 333 16,000

Calculator (*10) 15,000 5 3,000 250 12,000

Printer (*3) 216,000 5 43,200 3,600 172,800

Fire extinguishers (*3) 34,200 5 6,840 570 27,360

Others(*5) 5,000 5 - - -

Total 1,938,200 386,640 32,220 1,546,560

*, ** Estimate for a year products and there is no depreciation

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Year 2 Total price Useful life

per year

Annual de-

preciation

Month de-

preciation

Total Price after

depreciation

Cost Type


nickx-ts500

(*10)

38,400 5 7,680 640 30,720

Computer (*10) 960,000 5 192,000 16,000 768,000

Desk (*10) 320,000 5 64,000 5,333 256,000

Chair (*10) 16,000 5 3,200 267 12,800

Calculator (*10) 12,000 5 2,400 200 9,600

Printer (*3) 172,800 5 34,560 2,880 138,240


Others 5,000 5 - - -

Total 1,551,560 309,312 25,776 1,237,248

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per year

Annual de-

preciation

Month de-

preciation

Total Price after

depreciation

Cost Type


nickx-ts500

(*10)

30,720 5 6,144 512 24,576

Computer (*10) 768,000 5 153,600

12,800

614,400

Desk (*10) 256,000 5 51,200 4,267 204,800

Chair (*10) 12,800 5 2,560 213 10,240

Calculator (*10) 9,600 5 1,920 160 7,680

Printer (*3) 138,240 5 27,648 2,304 110,592


Others 5,000 5 - - -

Total 1,242,248 247,450 20,621 989,798

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per year

Annual de-

preciation

Month de-

preciation

Total Price after

depreciation

Cost Type

Telephone homepana-

sonickx-ts500

(*10)

24,576

5 4,915 410 19,661

Computer (*10) 614,400 5 122,880 10,240 491,520

Desk (*10) 204,800 5 40,960 3,413 163,840

Chair (*10) 10,240 5 2,048 171 8,192

Calculator (*10) 7,680 5 1,536 128 6,144

Printer (*3) 110,592 5 22,118 1,843 88,474


Others 5,000 5 - - -

Total 994,798 197,959 16,497 791,839

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per year

Annual de-

preciation

Month de-

preciation

Total Price after

depreciation

Cost Type


nickx-ts500

(*10)

19,661 5 3,932 328 15,729

Computer (*10) 491,520 5 98,304 8,192 393,216

Desk (*10) 163,840 5 32,768 2,731 131,072

Chair (*10) 8,192 5 1,638 136 6,554

Calculator (*10) 6,144 5 1,229 102 4,915

Printer (*3) 88,474 5 17,695 1,474 70,779


Others 5,000 5 - - -

Total 796,839 158,368 13,196 633,471

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Chapter 5

Operations Analysis

5.1 Product Characteristic

Our beauty surprise box gives the most effective time-tested favorites and top-quality trending

beauty products in the industry into a specially put together every month, sent directly to you.We bring

to you only the best, solving your beauty dilemmas one trove at a time. Beauty Surprise Box made beau-

ty discovery easy. It is more than just about a product. It is about the experience and the surprise.

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5.1.1 Product Characteristics in detail

Type of cosmetics

I. Face cosmetics

Cleanser (Sample product from the company)

Etude baking powder cleansing foam moist 30ml.

Astringent preparations and skin fresheners (Sample product from the company)

Skin food watery berry blending cream

Lancôme White expert spot cream

Make up (Sample product from the company)

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Etude house Precious BB cream

Bisous Bisous collagen pack powder

II. Body cosmetics

Cleansing (Sample product from the company)

Skin food paprika body washes 50g.

Astringent preparations and skin fresheners (Sample product from the company)

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Oriental Princess body lotion

5.1.2 Service Process

(1) Subscribe to our website.

(2) Register as a member.

(3) Choose the package. ( 1month, 6 months or 12 months package)

(4) Deliver to customer via EMS.

(5) Door-to-Door system.

(6) Feedback from customers.

5.1.3 Process and Packaging

Once the customer have subscribed to our package, we will carefully select and gather the prod-

uct samples into a box. Then we will deliver to our customer at the end of the month. We will add a

piece of greeting postcard in the box too. We carefully pack and design the box with pretty decoration.

5.1.4 Materials

As we don‘t produce our own products, we use the products from our selected suppliers. For ex-

ample, the products from Lancome, BisousBisous, Neutrogena, Skin food, Etude etc. One Beauty Sur-

prise Box might contain skincare samples, BB cream, mascara, mask sheet, eye shadow, lip gloss and etc. Products will be different depend on the season and trend.

5.1.5 Direct Labor

Beauty Expert 2 Position

Job Qualification

Experience in Fields Of Dermatology And Skin Care at least 3 years

Male/Female, age above 25 years

Master/Doctor Degree graduate

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Job Detail

Dermatology And Skin Care of Beauty Surprise Box

Salary: 15,000 Baht per month

……………………………………………………………………………….

Packaging Staff 3 position

Job Qualification

Experience in decoration at least 1 year

Not limited degree

Male/Female, age above 25 years

Job Detail

Packaging staff of Beauty Surprise Box

Salary: 8,000 Baht per Month

……………………………………………………………………………….

Delivery person 2 position

Job Qualification

Males aged 23-30 years

Education grade 9 up

Must have driving license

Have responsibility

Must have transportation (Car or Bike)

Job Detail

Sent product to EMS

Salary: 8,000 Baht per Month

……………………………………………………………………………….

Marketing Manager 1 position

Job Qualification

Bachelor‘s degree to Master.

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Male/Female, age not over 35 years

Experience in marketing management at least five years

Salary: 16,000฿ / Month

……………………………………………………………………………….

Programmer 1 position

Job Qualification

Bachelor‘s degree to Master

Male/Female age not over 25 years

Experience: a minimum of two to four years of work-related skill, knowledge, or expe-

rience is needed for these occupations

Salary: 18,000฿/month

……………………………………………………………………………….

Accountant 1 position

Job qualification



Experience: a minimum of two to four years of work-related skill, knowledge, or expe-

rience is needed for these occupations


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Total Salary

Detail Unit Salary Baht/month

Beauty Expert 2 15,000 30,000

Packaging staff 3 8,000 24,000

Delivery person

Marketing manager

Programmer

Accountant

2

1

1

1

8,000

16,000

18,000

17,000

16,000

16,000

18,000

17,000

Total 121,000

Utilities Expense:

Utilities

Baht/month

Electricity 4,929.8

-Internet expense ( include VAT) 631.50

-Telephone expense 150

-Maintenance costs 1,00

Electricity ,internet ,and telephone expense/month 5811.30

Water 5,00

Total Utilities 6,311.3

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Total Administration Cost

Administration Cost

Baht/month

Electricity 4,929.8

Internet and telephone expense/month

-Internet expense (include VAT) 631.50

-Telephone expense 150

-Maintenance costs 1,00

Electricity ,internet ,and telephone expense/month 5811.30

Water 5,00

Total salary 70,000

Total Administration cost 76,311.3

Total operations cost

Operations Baht/month

Salary 121,000

Overhead cost

-Water 5,00

-Electricity 4,929.8

-Internet and telephone 781.50

-Fuel(variable) 21,000

Total 148,211.3

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5.1.6 Logistic Management

Merchandise

We will stock all merchandise 1 month before auction will be started and every beginning of the

month we will receive the merchandise from our suppliers.

Postal Service

We will deliver the product at the end of the month to our customers.

Website Server

We will check our website in every beginning of the month.

5.1.7 Facility Management

We will place our stocks in dry place, which is inside our company‘s warehouse. We will keep

the product away from direct sunlight. As soon as we get the products from our suppliers, we will store

them right away.

Merchandise Cost

Price

(Baht)

Monthly

Unit Re-

quirement

Total

Cost

(Baht)

Box 5 83 unit per

month

415

Cover Paper 3.12 83 unit per

month

259

Total Cost per month 674

Total Annual Cost 8,088

Total Estimation Cost 40,440

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Carrying Cost

Carrying Cost included rental fee, 42,000 baht and electricity cost, 4,929.8 baht.

Ordering Cost

Ordering Cost included telephone expense for ordering the products fuel expenses to transport

the products from our suppliers.

Telephone expense

Monthly Telephone expense= 150 Baht

Total Estimation Cost = 150 baht x 60 months

= 9,000 baht

Fuel expense

Monthly Fuel expense= 21,000 baht

Total Estimation Cost = 21,000 baht x 60 months

=1,260,000 baht

Hosting cost

Server

Cost: 5,400 baht for 1 year

Total estimation cost: 5,400 x 5years = 27,000 baht (5 years)

Ref: http://www.netdesignhost.com/

Fail over system

Cost: 300,000 baht for 1 year and 540,000baht for 2 year

Total estimation cost: 540,000 + 540,000 + 300,000 = 1,380,000 baht (5 years)

Ref: http://www.chaiyohosting.com/load-balance/

http://www.netdesignhost.com/

http://www.chaiyohosting.com/load-balance/

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Postal Expense

Monthly Postal Expenses= 200 baht x 83 boxes

= 16,600 baht

Monthly Fuel Expenses= 21,000 baht

Total Monthly Postal Expense = 16,600+21,000

= 37,600 baht

Utilities Expenses

We estimated utilities as a contingent expense per month at 6,311.3 baht.

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Chapter 6

Management Analysis

6.1 Administration Analysis

6.1.1 Organization Management

Organizational structure

The main tasks are as follows.

1) The executive manager responsible for finance, accounting and preparation transport product

and we have shop map when customer interest use full product.

2) The programmer is responsible for website and managing about management system on the

website. Customer can contract, register and comment on website

Logo

Beauty surprise box logo to advertising and show our company images to customer. We use logo

into box product when customer see and they can remember our on "Beauty surprise box" is leader of

sampling cosmetic box for beauty and healthy.

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6.1.2 Administration Cost

Salary

1. Marketing Manager 1person 16,000฿ / Month

2. Programmer 1 person 18,000฿ /month

3. Accountant 1 person 17,000฿/month

Total salary per month 51,000฿/month

Infrastructure

Electricity expenses (A)

Fixed Electricity Expenses 228.17 baht

Variable Electricity Expenses 2,000 units x 2.4649 baht 4929.8 baht

Monthly Electricity Expenses 4929.8 baht

Fuel Expenses

Monthly Fuel Expenses = (40kmx35baht/lt. of Diesel) = 21,000 baht (A) อตัราค่าไฟฟ้าการไฟฟ้านครหลวง(n.d.) http://www.eppo.go.th/power/pw-Rate-MEA.html#2

Telephone expenses (B)

Contact for Consumer 100 minutes x 1.50 baht 150 baht

Monthly Telephone Expenses 150 baht

Rent expenses

Lad Prao zone, 42,000 Bath / Month. SoiRamkhamhaeng 81

(B) อัตราค่าโทรศัพท์ http://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-

netcall&Itemid=125&lang=th

Office staff

Marketing Manager 1 position

Job Qualification


Male/Female, age not over 35 years

http://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=th


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Experience in marketing management at least five years

Salary: 16,000฿ / Month

Programmer 1 position

Job Qualification



Experience: a minimum of two to four years of work-related skill, knowledge, or experience is

needed for these occupations

Salary: 18,000฿ /month

Accountant 1 position

Job qualification



Experience: a minimum of two to four years of work-related skill, knowledge, or experience is

needed for these occupations


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Chapter 7

Financial Analysis

7.1 Profit/Loss Statement

Profit and Loss Statement for the first year of business operating

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Profit and Loss Statement for the second year of business operating

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Profit and Loss Statement for the third year of business operating

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Profit and Loss Statement for the fourth year of business operating

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Profit and Loss Statement for the five year of business operating

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7.2 Cash Flow Statement

Cash Flow Statement for the first year of business operating

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Cash Flow Statement for the second year of business operating

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Cash Flow Statement for the third year of business operating

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Cash Flow Statement for the fourth year of business operating

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Cash Flow Statement for the five year of business operating

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7.3 Balance Sheet

Balance Sheet for the first year of business operating

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Balance Sheet for the second year of business operating

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Balance Sheet for the third year of business operating

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Balance Sheet for the fourth year of business operating

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Balance Sheet for the five year of business operating

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Chapter 8

Risk Management

8.1 External Risk Assessment

External risk is the risk that we can‘t control and predict but some situation we can predict and

protect it when it happens. External risk has been anything that will effect to our business. For our busi-

ness major of external risk has 3 things.

Economic

Competitors

Our business is the business that trade through the online channel that has a many competitor and

our company is the new comer for this business (beauty box). So our situation for this business is disad-

vantage because we are new comer that not well-known as other brand and has a low market share.

Our Solution for this problem is doing the market communication that we will advertise our

product and our website through the Facebook and use the SEO to promote our website to the top rank

of search engine that make our products are well-known equal or superior than the competitor.

High expenses (Customer)

Our products are the luxury product that is not a necessary like as a food, clothes, medicine. So

the decision of customers to buy our products is low when compare with other kinds of products. More-

over the problem of customer about the expense for their daily life has increasing but the revenues are

still the same or increase but not enough to spend for luxury product.

So our company has understand and aware of this problem because cosmetic are necessary to in-

crease a self confidence. So our company will create a promotion that will help the customer to save

(reduce) their payment for our product.

Technology

Hacker & Cracker

Hacker & Cracker are the problem that will cause our business fluctuation especially cracker

(black hat).

For this problem our company will hire the person that is the specialist in this area to protect our

website from hacker & cracker.

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8.2 Internal risk assessment

Internal risk is the risks that happen in the organization but it different from the external risk that

we can control it (almost).

Technical

Server down

The problem of sever down is happen from the user that log in to the website in the large amount

at the same time that will make the server error and down in suddenly.

The solution in this problem is often to use the System Backup and try to test recover the infor-

mation because when the situation of server down happening, we can solve the problem in immediately.

In another way is to use ―fail over system‖. Fail over system is the system that can solve the problem of

server down by storage the information to the other server (backup server) when the primary server is

down. [A]

[A] http://www.chaiyohosting.com/load-balance/

Picture from http://www.chaiyohosting.com/load-balance/

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8.3 Financial risk

We consider using following by the scenario as following

Income Statement sale decrease 5% , 10%, 15%

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Income Statement Cost/expense increase by 5%, 10%, 15%

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Cash Flow Statement sale decrease by 5%, 10%, 15%

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Cash Flow Statement cost/expense increase by 5%, 10%, 15%

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Chapter 9

Summary

9.1 Strategic management

Differentiation

Our company uses the difference kinds of product and different brand of cosmetics which makes

customers feel exited to try the new product. Also, we‘ll bring the cosmetic both from Asian and West-

ern brand which has difference quality for our member to try. Moreover the customer will get surprise

gift when they apply for long member like free 2 more boxes or a cosmetic bag.

Cost leadership

According from the market price our product may similar to some competitor which has the

same price with us, but our company has more difference kinds of product which they can‘t get the same

so our price will be suitable with the quality of the products and cheaper than others brands who has the

same level of products.

9.2 Financial Management

Liquidity

To smooth all business activities, we maintain the cash on hand at least the minimum amount of

350,000 baht on hand to ensure that we have ability to pay the expenses and retain the smoothing of all

business activities.

Profitability

Our Beauty Box is an online website system which has high profit margin compare to other on-

line shopping sites. We generate our high profit by offer 83 Beauty Surprise Box per month.

9.3 Risk Management

Technological Change

As our business operates over the internet, we are coping with the advancement of technology.

Since the technology is dynamic which change along the time, we need to upgrade all of the server

equipment to ensure that our equipments and other related tools are up to date.

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Demand Change

To make the revenue more stable, we need to capture the customer preferences by understanding

consumer desire and catch up with the trends to satisfy customer needs.

Security

Since the security leakage is goes beyond with the advancement of technology, we need to se-

cure the website and database to ensure that unnecessary information is not disclosed and no authority

person cannot accessing this information also. This issue can eliminate by hire a specialist on software

security.

Inventories Management

As our merchandise is one of the key for attracting customer, we need to ensure that the mer-

chandise is enough for the demand. We will negotiate with the supplier to order the merchandise and

stock up all merchandise to be ready to ship.

9.4 Other Related Terms

Promotional Plan

We offer different promotional plans throughout the year. Promotions may depend on seasons

and trend. For example, extra free gifts and sample products for 6 months and 12 months membership

during Holiday season like Christmas. For 6 months subscription members, we give an extra 1 Box free

together with a Fashion Magazine. For 12 months subscription members, we give 2 extra Boxes, 3 Fa-

shion Magazines and a set of cosmetics or skincare set.

System Reliability

To stabilize all server operates, we place the server at the specialize outsourcing company which

have a high bandwidth and administrator that 24 hour a day monitoring our server traffic to ensure that

our server and the website operation still 99.99% uptime and always in controllable.

Website Friendliness

The storefront of our website is very user friendly. Customer can understand easily what the sys-

tem is and how to use it. Customers only need to subscribe and enjoy the Beauty Surprise Box.

Customer Service

To satisfy the various customer preferences and needs, we response their feedback as fast as we

can to make sure that all customers will be satisfied and happy shopping with us.

References

Chapter I

http://www.chicsociety.com/qoqo-box/

Qoqo Box >> http://www.qoqobox.com/en/

Pambox>> http://www.pambox.com/

Beauty Hunter>> http://www.beautyhunter.co.th/

VamotyTrove>> http://www.vanitytrove.com/th

http://www.kiehls.com

http://www.lancome-usa.com/

http://www.makeupforever.com

http://www.neutrogena.com/

http://www.lorealparis.com

http://www.maccosmetics.co.th/

http://www.thebodyshop.com

http://www.thefaceshop.com/

http://www.etudehouse.com/eng/brand/brand.jsp#wrap

http://www.theskinfoodus.com/skinfood/brand.asp

http://www.bisousbisousthailand.com/eng/about.php

http://www.siamturakij.com/home/news/print_news.php?news_id=413353186

http://www.ryt9.com/s/oie/1476124

http://www.bangkokbiznews.com/2011/01/01/news_32191737.php?news_id=32191737

http://www.brecosmeticlab.com/newslet/54/06_jun/prem_cos_growth.html

http://www.cyonic-nemeton.com/Cosmetics.html.

http://incquity.com/articles/marketing-boost/tester)

http://www.chicsociety.com/qoqo-box/

http://www.qoqobox.com/en/

http://www.pambox.com/

http://www.beautyhunter.co.th/

http://www.vanitytrove.com/th

http://www.kiehls.com/

http://www.lancome-usa.com/

http://www.makeupforever.com/

http://www.neutrogena.com/

http://www.lorealparis.com/

http://www.maccosmetics.co.th/

http://www.thebodyshop.com/

http://www.thefaceshop.com/

http://www.etudehouse.com/eng/brand/brand.jsp#wrap

http://www.theskinfoodus.com/skinfood/brand.asp

http://www.bisousbisousthailand.com/eng/about.php

http://www.siamturakij.com/home/news/print_news.php?news_id=413353186

http://www.ryt9.com/s/oie/1476124

http://www.bangkokbiznews.com/2011/01/01/news_32191737.php?news_id=32191737

http://www.brecosmeticlab.com/newslet/54/06_jun/prem_cos_growth.html

http://www.cyonic-nemeton.com/Cosmetics.html

http://incquity.com/articles/marketing-boost/tester

http://reviews.ebay.com/What-is-a-tester?ugid=10000000001542810

http://203.155.220.230/info/NowBMA/frame.asp

Chapter II

http://internet.nectec.or.th/webstats/home.iir

http://www.searchblog.asia/thailand-e-commerce-trends-in-2011

http://pambox.com/

http://www.docstoc.com/docs/72916121/Thailand-Cosmetic-Products-Market http://kirarista.com/2012/07/03/pambox-june/

Chapter III

http://www.qoqobox.com/

http://www.vanitytrove.com

www.beautysurprisebox.com

http://maytermthailand.wordpress.com/2012/05/01/politics-in-thailand/

http://poll.truehits.net/reports/report_year2012.php

Chapter VI

http://www.eppo.go.th/power/pw-Rate-MEA.html#2


http://reviews.ebay.com/What-is-a-tester?ugid=10000000001542810

http://203.155.220.230/info/NowBMA/frame.asp

http://pambox.com/

http://www.docstoc.com/docs/72916121/Thailand-Cosmetic-Products-Market

http://www.qoqobox.com/

http://www.vanitytrove.com/

http://www.beautysurprisebox.com/

http://maytermthailand.wordpress.com/2012/05/01/politics-in-thailand/

http://poll.truehits.net/reports/report_year2012.php


Beauty Surprise Box

Present

Aj.ChaiyawatThongintr

Made by

Mr. Arkorn Patthanasuchai 5231203192

Miss Naruporn Saechua 5231203054

Miss Easternly Van Sui Mawi 5231203142

Miss Nan Non Htwe Long 5231203157

Miss Nang Naunt Mat Kham Kyauk 5231203161

Miss Isaraporn Phatthanawongphairot 5231203512

Project Feasibility Study and Evaluation 2012

School of Management

Mae FahLuang University

Beauty surprise box Sec.1 Seat 12

Documents

optioncomk2amp

cash flow

human rights

maintenance

catch consumer

response modern

viewitemamp

safe customer