Project Feasibility Study and Evaluation-OKey Coffee-Aj.chaiyawat Thongintr

1

BE@CH

1203302

PROJECT FEASIBILITY STUDY

AND EVALUATION

OKEY COFFEE

By

MISS ORACHORN PHOLPHASUK

ID 4931205207

TOURISM MANAGEMENT

SCHOOL OF MANAGEMENT

THIRD SEMESTER, 2009

MAE FAH LUANG UNIVERSITY

Preface

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

Course in the third semester of 2009. In this project is studying the feasibility of

premium coffee store business at Karon Beach in Phuket, which is include generally of

premium coffee store business, management in premium coffee store business,

competition analysis and marketing feasibility, the technical process in premium coffee

store business and the financial feasibility of premium coffee business.

This project makes everyone who interested to get knowledge and information

about premium coffee store business before make decision to investment, including

preoperational process and operation process of premium coffee store business, for the

benefit to investment and profit of doing this premium coffee business.

I expect that my project will provide benefit more and more interested person,

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

at this opportunity.

Miss Orachorn Pholphasuk

A

Content

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

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

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

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

1.2 Project objectives ...............................................................................................11

1.3 Benefits of project..............................................................................................12

1.4 Operations methods ...........................................................................................12

1.5 Time frame of study...........................................................................................13

Chapter 2 Industry Profile............................................................................................15

2.1 Nature of Industry ..............................................................................................16

2.2. Situation of Industry .........................................................................................24

2.3 Product and Service ...........................................................................................59

2.3.1 Product ........................................................................................................59

2.3.2 Service.........................................................................................................62

2.4 Vision.................................................................................................................62

2.5 Mission...............................................................................................................63

2.6 Strategy ..............................................................................................................63

2.6.1 Corporate Level ......................................................................................... 63

2.6.2 Business Strategy ........................................................................................64

2.6.3 Functional Strategy .....................................................................................65

Chapter 3 Marketing Feasibility Study ......................................................................68

3.1 Marketing Analysis..............................................................................................69

3.1.1 General Environment Analysis ....................................................................69

3.1.2 Competition Analysis (3C Analysis) .........................................................110

B

3.2 STP Analysis...................................................................................................147

3.2.1 Market Segmentation ................................................................................147

3.2.2 Target Analysis ..........................................................................................148

3.2.3 Position Analysis .......................................................................................149

3.3 Marketing Mix Strategy....................................................................................150

3.3.1 Product strategy ........................................................................................150

3.3.2 Price Strategy ............................................................................................153

3.3.3 Place Strategy............................................................................................154

3.3.4 Promotion Strategy ...................................................................................155

3.4 Sales Forecast/Profit Estimation ......................................................................157

3.5 Marketing Expenses (Sale Incentive) ..............................................................168

3.6 Conclusion in market feasibility ......................................................................171

Chapter 4 Technical Feasibility Study.......................................................................172

4.1 Production and Operation Analysis ..................................................................173

4.1.1 Product characteristics .............................................................................173

4.1.2 Service Process ........................................................................................229

4.1.3 Location ...................................................................................................230

4.1.4 Facility Layout .........................................................................................235

4.1.5 Machine/Tools/Equipment.......................................................................241

4.1.6 Logistics Management .............................................................................275

4.1.7 Facility Management ...............................................................................277

4.2 Cost of Investment ...........................................................................................282

4.2.1 Pre- Operating Cost..................................................................................282

4.3 Investment Cost ...............................................................................................284

4.3.1 Equipments & Tools ...............................................................................284

4.3.2 Depreciation.............................................................................................289

4.4 Operating Cost.................................................................................................295

4.5 Organization Expenses………........................................................................306

C

Chapter 5 Financial Analysis .....................................................................................313

5.1 Income Statement.............................................................................................314

5.2 Balance Sheet...................................................................................................317

5.3 Statement of Cash Flow ..................................................................................320

Chapter 7 Summary ...................................................................................................323

7.1 Summary of project feasibility study................................................................324

Appendix......................................................................................................................325

D

Chapter 1

Introduction

1

This chapter explains about overall of project. There are background and

significant, objective, benefit, activity and timework of our company. You can know

that why we do this project from this chapter.

1.1 BACKGROUND AND SINIFICANCE OF THE PROJECT

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.

Nowadays coffee consumption market is more expand that we can observe the

coffee products in the market which are coffee bean, ground coffee, instant coffee and

instant coffee canned and there are many coffee drink manufactures in Thailand which

are famous brand names, regular shops and instant coffee that sell in convenience shop

or store regular shop and etc. Prices of fresh coffee are higher than instant coffee that

sell with the feature of cans, bottles and plastics bag because the costs are expensive; it

is 10 to more hundred baht and they are better tastes. Thai Coffee Consumption Trend

in year 2009 was increased because it is good taste and high quality so the premium

coffee shop is spread in Thailand widely because Thai people change their behavior. In

each main regions of Thailand which are North, Central, Northern East and South, there

are many coffee shops that provide for public so the customers have many choices for

them. The famous coffee shops in Thailand are Starbucks, Black Canyon, Blue

Mountain, Suzuki, Gloria fasdf Jean's Coffees, Au Bon Pain, Cffee World, Doitung,

Wawee, Doi Chang and etcs. There are 2 type of market segmentation that foreign

brand name is 60% and Thai brand name is 40%. The main consumers of premium are

business man, tourists, officers and student that they have power to buy because they

almost of them are middle class and they want to consume the taste and quality of

coffee. They do not concern much with higher price.

(Source: http://www.coffeeresearch.org, 2010)

2

Phuket

Phuket (pronounced Pookhet) is Thailand’s largest island. It’s a province in

itself and a major tourist destination. Phuket offers something for every visitor: verdant

hillsides, luxurious golf courses, unique beaches, azure seas, world-class scuba diving

and water sports, surprisingly cheap shopping, outstanding dining and a vibrant

nightlife. As Phuket is Thailand’s richest province, the infrastructure is surprisingly

good when compared to neighbouring provinces and countries.

Lying off the northwest Andaman coast 700km south of Bangkok and 150

kilometres from the Malaysian border, Phuket is roughly the same size as Singapore.

Many have remarked on the similarity Phuket has, when viewed on a map, to a pearl

drop. For this reason, amongst others, the island has been dubbed "The Pearl of the

South." It’s connected to the province of Phang Nga by two northern bridges. Most

tourists arrive by air, but there are excellent road connections to Bangkok and

surrounding provinces to Phuket that are well worth visiting.

(Source: http://www.thephuket.com, 18 Apr 2010)

Getting to Phuket

There are 4 major transportations as your choices - traveling from Bangkok to

Phuket by bus, car, train and air.

By bus

Intercity and public bus is one of the cheapest ways to take you to Phuket. Buses

leave daily and directly to Phuket from Bangkok’s Southern Terminal Station. Both air-

conditioned and non air-conditioned buses are provided, and of course the price is

different. The overnight buses are the most popular choice since they are comfortable.

The approximate duration is 12-14 hours. For more information, call 0-2435-1199, 0-

2435-1200, 0-2434-7192, 0-2434-5557-8 or visit www.transport.co.th. There are also

buses leaving from Khaosarn Road, operated by some travel operators, and of course

3

the price will be different, probably higher. Suggest you to find out when you are

hanging around there.

By car

Going to Phuket by car is probably the most fun trip when this allows you to

stop at several beautiful places all the way along the trip and catch nice photos. Just

drive along Petchkasem Road (Highway No. 4), you will pass through Nakhon Pathom,

Ratchburi, Prachuab Kiri Khan, Chumporn, Ranong, Phang-nga, and cross Sarasin

Bridge and here there is… downtown Phuket. The total distance is 862 kms,

approximately 12 hours, but still several destinations to explore and enjoy. However, if

you are afraid of losing the way, a map is also recommended.

By train

Taking a train is also another cheapest way, but keep it in mind that there is in

fact no direct train commuting down to Phuket. Take the train at main Hua Lamphong

Train Station and get off at Surat Thani to take bus to Phuket. The overnight train is far

more comfortable than overnight buses. But pre-booking is advised several days in

advance. Check the train schedule with the State Railway of Thailand (Hua Lamphong

Train Station) at 1690, 0-2223-7010, 0-220-4444, 0-222-4334 and 0-2621-8701.

By air

Taking a flight down to Phuket is definitely the most convenient way when it

only takes approximately one hour (unless the flight is delayed). There are several

domestic flights operating daily and directly from Bangkok to Phuket at Phuket

International Airport – both regular price (bit high) and low cost, also depending on

seasons (low or high). We recommend you to compare the price between airlines for the

best deal. Check out the list below with contact details:

1. Thai Airways 0-2628- 2000, www.thaiairways.com

4

2. Bangkok Airways 0-2265-5678, 0-2265-5555, www.bangkokair.com

3. Phuket Air 0-2679-8999, www.phuketairlines.com

4. Thai Air Asia 0-2515-9999, www.airasia.com

5. One-Two-Go by Orient Thai, call 1126, www.onetwo-go.com

6. Nok Air, call 1318, www.nokair.com

Phuket also offer direct flights to international destinations such as Kuala Lumpur,

Hong Kong, Penang, Singapore, Sydney, etc.

(Source: http://www.phuket-guide.com, 20 Apr 2010)

Figure 1.1: Map of Phuket

5

(Source: http://www.phuket.com, 19 Apr 2010)

Karon Beach

It is the second largest of Phukets principal tourist beaches. Large resort

complexes line the road back of the beach, but the strand itself, long and broad, has no

development. Restaurants, bars, tour companies and other non-hotel businesses are at

the north end, near the traffic circle, and at the south, on the little road connecting the

back road with the beach road. The narrow road between Kata and Karon has a number

of small businesses as well as the Dino Park Mini Golf facility. Karon is the most up-

scale of Phukets beaches. Regular daytime bus service to and from Phuket Town.

Head north from Kata along the beach road and, two hundred metres on the left

is the start of Karon Beach. This is a long three to four kilometre strand with

undoubtedly the finest sand on Phuket. It positively squeaks beneath your feet on the

walk from the road down to the water. Karon beach offers little in the way of shade

except a few palms and rented parasols, so precaution against sunburn should be taken

before spending extended time on it. There’s also quite a steep underwater cant

dropping off into the ocean, so weaker swimmers are advised to either stay out of the

water or head south to safer Kata Beach. The beach itself is a marvelous place for an

invigorating morning or evening walk, and, with hundreds of small shops and eateries

dotting the road between Karon and Kata, the beach road is also a well-frequented

walking route. At the southern end of the beach you can snorkel around the rocks and

gradually make your way around the headland. Further north, past the village of Karon,

there is more good snorkeling. Karon Beach is the place to go if you desire an

uninterrupted view of the ocean. It’s as though the world comes to an end and drops off

into the azure waters of the Andaman. Then maybe it’s because, after years of

development, there are still no fishing boats to obscure the view of the horizon.

6

Thing to Do

Different flavour from Kata. For a start, it’s more spread out. There’s a Buddhist

temple overlooking the road leading down to the beach, several up market hotels only a

few hundred metres from the sea, and a town centre that is friendly by day and

downright cheeky by night. The beach road itself, following the curving banana-shaped

coast is dotted with shops, eateries and a good selection of tailors. Karon is expanding,

but with caution. Building projects are kept well away from the beach and the byword is

‘discretion’. Like Kata, there are many dive shops to choose from if you wish to explore

the extraordinarily beautiful underwater world of the Andaman sea. By night, Karon’s

bars compete for the visitor’s attention in various ways: Loud music, atmospheric beach

bars, haute cuisine, expat haunts, they’re all there to draw you in if you feel like it.

Some visitors opt for the stroll along the beach road to Kata and back. It’s certainly a

fascinating vignette of Thai life. Like Kata, Karon nightlife lasts as long as you do.

Getting There

Karon are, roughly speaking, forty-five kilometres away from the airport,

depending on the route your driver chooses. This trip will take an hour and costs 500

baht by taxi. If you wish to take a taxi to Phuket Town, then clamber aboard a local bus

at the fresh market. ( A Song Taeuw, so called because of the "two bench" arrangement

used to seat passengers) The fare from Phuket will be 20 baht. Hiring a car from the

airport is also possible and, once arrived, you may want to rent a motorcycle in Karon

itself. There are many beautiful viewpoints above Karon that are only accessible to

either the extremely fit or to people who have their own locomotion.

(Source: KataKaron Hotel’s Business Association,19 Apr 2010)

7

Figure 1.2: Map of Karon Beach

(Source: http://www.phuket.com, 19 Apr 2010)

8

1217303 1190032

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

1100000

1200000

1300000

2008 2009

Table 1.1: Total Population of Phuket

Total of Population Male Female

335,913 159,526 176,387

The total population of Phuket is 335,913 people in year 2009 which the male

are 159,526 people and female are 176,387 people.

(Source: Department of Provincial Administration, 2009)

Figure 1.3: Number of Foreign Tourists between Year 2008 – 2009 in Phuket

(Source: Phuket Provincial Governor's Office, 14 Marh 2010)

9

Australia

19.52%, 146,962

Korea

14.78%, 111,255

Sweden

14.43%, 108,582Malaysia

8.09%, 60,867

England

8.06%, 60,690

China

7.63%, 57,454

Germany

7.62%, 57,338

Russia

6.79%, 57,338

Singapore

6 .61%, 49,770

Finland

6.47%, 48,699

Figure 1.4: Top Ten Country of Foreign Tourists in Phuket 2009

10

(Source: Phuket Provincial Governor's Office, 14 Marh 2010)

Why this project should launch in the area that calls “Pearl of Andaman Sea” or

Phuket province because it is the very popular and famous place for tourist destination

in Thailand which there are Thai and foreign tourists who come to visits this provice

and the statistic graph show that the foreigners are more than Thai. From the pie chart, it

show that the most tourists who come to visit Phuket are from other country which are

Australia, Korea, Sweden, Malaysia, England and China and there are only few

domestic travelers. The information of Phuket Provincial Governor's Office show the

main income of population in Phuket is hotel and restaurant at 38.92 percents, Logistic

and Transportation is 14.12 percents and Retailer is 10.54 percents so the one good

point for this project is the tourists destination because there are high purchasing powers

in the market and we can sell in the high price because the land value is very expensive.

Our product is in the niche market because the premium coffee store businesses are in

Karon beach because there are low competitors which are very few direct competitors

and there are few non direct competitors such as sevens, regular shops and restaurants.

In addition although the political situation of Thailand is not stability which are Red

Shirts and Yellow Shirts but it is not effect to our business because Phuket Island has

international direct flights to this island and Somboon Jirayus, president of Phuket

Tourist Association, said on Sunday February 2010. Despite warnings by three major

tourist-providing countries warning their nationals from traveling to Thailand due to the

risk of civil unrest, tourism businesses in the southern resort of Phuket is booming with

no hotel room cancellations. From these reasons, allowing I interested to study the

possibility of Coffee store business in Phuket.

1.2 PROJECT OBJECTIVE

1. To study the situation of coffee store business

2. To analyze market in the business and financial risk feasibility

3. To learn the technical and management process in coffee store business

4. To Summary of the feasibility of coffee store business

11

1.3 BENEFITS OF PROJECT

1. The situation of coffee store business

2. The market in the business and financial risk feasibility

3. The technical and management process in coffee store business

4. The feasibility of coffee store business

1.4 OPERATIONS METHOD

• To study the generally of coffee store business in Phuket

• To study management in coffee store business as follows:

- Background of coffee store business

- Product and service in coffee store business

- Vision and mission statement of coffee store business

- Strategy of the company

• To study competition analysis and marketing feasibility as follows:

- General internal and external environment

- Marketing mix strategy of coffee store business

- Demand of consumer in coffee store business

- Sale forecast and profit estimation of coffee store business

• To study the technical process in coffee store as follows:

- Location

- Operations and management analysis

- Investment and Operation cost of coffee store business

• To study the financial feasibility of coffee store business as follows:

- Company’s investment cost, operation expense, and other expenses

- Profit and loss statement, cash flow, and balance sheet in 5 years of

coffee store business

• To study and analysis risk of coffee store business in Phuket

• To Summary the feasibility of coffee store business in Phuket

12

1.5 TIME FRAME OF STUDY

Table: 1.2 Time frames, since 08 April 2010 – 12 May 2010

Operations

Methods

April

08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

1. To study the

general

information of

coffee store

business in

Phuket.

2. To study

management

in coffee store

business.

3. To study

competition

analysis and

marketing

feasibility.

4. To study the

technical

process

for coffee

store business.

13

Operation

Methods

May

25 26 27 28 29 30 01 02 03 04 05 06 07 08 09 10 11 12

5. To study

the

financial

feasibility

of coffee

store

business.

6. To study

and

analysis

risk of

coffee store

business in

Phuket.

7. To

Summary

the

feasibility

of coffee

store

business in

Phuket.

14

15

Chapter 2

Industry Profile

16

This chapter explains about the history and industry’s situation of all coffee

business in both Thailand and foreign market. As well as the detail of coffee business

brand name which fatuous and general product of coffee business in Thailand. We show

vision, mission, and strategy of company in this chapter.

2.1 NATURE OF INDUSTRY

Did you know coffee is the most consumed beverage in the world? How did

coffee get this ranking? What country first figured out coffee was safe for consumption?

When was the first drink of coffee prepared? Where did the first coffee shop come in

being? There are many questions about the starting point of drinking coffee. It has been

so long ago no one really knows all the facts. But, one thing is for sure, coffee is the

most consumed beverage on the planet.

The Beginning of Coffee

It looks as if the first trace came out of Abyssinia and was also sporadically in

the vicinity of the Red Sea around seven hundred AD. Along with these people, other

Africans of the same period also have a history of using the coffee berry pulp for more

than one occasion like rituals and even for health.

Coffee began to get more attention when the Arabs began cultivating it in their

peninsulas around eleven hundred AD. It is speculated that trade ships brought the

coffee their way. The Arabs started making a drink that became quite popular called

gahwa--- meaning to prevent sleep. Roasting and boiling the bean was how they made

this drink. It became so popular among the Arabs that they made it their signature

Arabian wine and it was used a lot during rituals.

After the coffee bean was found to be a great wine and a medicine, someone

discovered in Arabia that you could also make a different dark, delicious drink out of

the beans, this happened somewhere around twelve hundred AD. After that it didn't take

long and everyone in Arabia was drinking coffee. Everywhere these people traveled the

17

coffee went with them. It made its way around to India, North Africa, the eastern

Mediterranean, and was then cultivated to a great extent in Yemen around fourteen

hundred AD. Other countries would have gladly welcomed these beans if only the

Arabs had let them. The Arabs killed the seed-germ making sure no one else could grow

the coffee if taken elsewhere. Heavily guarding their plants, Yemen is where the main

source of coffee stayed for several hundred years. Even with their efforts, the beans

were eventually smuggled out by pilgrims and travelers.

Coffee Shops Appear

Around 1475 the first coffee shop opens in Constantinople called Kiv Han two

years after coffee was introduced to Turkey, in 1554 two coffee houses open there.

People came pouring in to socialize, listen to music, play games and of course drink

coffee. Some often called these places in Turkey the "school of the wise", because you

could learn so much by just visiting the coffee house and listening to conversations. In

the sixteen hundreds coffee enters Europe through the port of Venice. The Turkish

warriors also brought the drink to Balkans, Spain, and North Africa. Not too much later

the first coffee house opens in Italy.

There were plenty of people also trying to ban coffee. Such as Khair Beg a

governor of Mecca who was executed and Grand Vizir of the Ottoman Empire who

successfully closed down many coffee houses in Turkey. Thankfully not everyone

thought this way.

Coffee Tips Arrive

In the early sixteen hundreds coffee is presented to the New World by man

named John Smith. Later in that century, the first coffee house opens in England. Coffee

houses or "penny universities" charged a penny for admission and for a cup of coffee.

The word "TIPS" (for service) has it's origin from an English coffee house.

18

Early in the 17th century, Edward Lloyd's coffee house opens in England. The

Dutch became the first to commercially transport coffee. The first Parisian caf頯pens in

1713 and King Louis XIV is presented with a lovely coffee tree. Sugar is first used as

an addition to coffee in his court.

The America's Have Coffee

Coffee plants were introduced in the Americas for development. By close to the

end of the seventeen hundreds, 1,920 million plants are grown on the island.

Evidently the eighteen hundreds were spent trying to find better methods to make

coffee.

The Coffee "Brew" in the 20th Century

New methods to help brewing coffee start popping up everywhere. The first

commercial espresso machine is developed in Italy. Melitta Bentz makes a filter using

blotting paper. Dr. Ernest Lily manufactures the first automatic espresso machine. The

Nestle Company invents Nescafe instant coffee. Achilles Gaggia perfects the espresso

machine. Hills Bros. begins packing roasted coffee in vacuum tins eventually ending

local roasting shops and coffee mills. A Japanese-American chemist named Satori Kato

from Chicago invents the first soluble "instant" coffee.

German coffee importer Ludwig Roselius turns some ruined coffee beans over

to researchers, who perfected the process of removing caffeine from the beans without

destroying the flavor. He sells it under the name Sanka. Sanka is introduced in the

United States in 1923.

George Constant Washington an English chemist living in Guatemala, is

interested in a powdery condensation forming on the spout of his silver coffee flask.

After checking into it, he creates the first mass-produced instant coffee which is his

brand name called Red E Coffee.

19

Prohibition goes into effect in United States. Coffee sales suddenly increase.

Brazil asked Nestle to help find a solution to their coffee surpluses so the Nestle

Company comes up with freeze-dried coffee. Nestle also made Nescafe and introduced

it to Switzerland.

Other Interesting Coffee Tidbits

Today the US imports 70 percent of the world's coffee crop. During W.W.II,

American soldiers were issued instant Maxwell House coffee in their ration kits. In

Italy, Achilles Gaggia perfects his espresso machine. The name Cappuccino comes from

the resemblance of its color to the robes of the monks of the Capuchin order. One week

before Woodstock, the Manson family murders coffee heiress Abigail Folger as she

visits with her friend Sharon Tate in the home of filmmaker Roman Polanski.

Starbuck's Hits the Coffee World

Starbucks opens its first store in Seattle's Pike Place public market in 1971. This

creates madness over fresh-roasted whole bean coffee. Coffee finally becomes the

world's most popular beverage. More than 450 billion cups are sold each year by 1995.

Coffee Is a Global Commodity

The importance of coffee in the world economy cannot be overstated. It is one of

the most valuable primary products in world trade, in many years second in value only

to oil as a source of foreign exchange to developing countries. Its cultivation,

processing, trading, transportation and marketing provide employment for millions of

people worldwide. Coffee is crucial to the economies and politics of many developing

countries; for many of the world's Least Developed Countries, exports of coffee account

for a substantial part of their foreign exchange earnings in some cases over 80%. Coffee

20

is a traded commodity on major futures and commodity exchanges, most importantly in

London and New York.

(Source: International Coffee Organization, 2010)

Coffee Today

For North Americans, the world's largest consumers, Seattle is the new spiritual

home of coffee. The wettest major city in the USA gave birth in the 1970s to a café or

'Latte' culture which swept the USA and has dramatically improved the general quality

of the coffee Americans drink. Today, any public place in the USA will have one or

more coffee carts, serving a variety of coffees, drinks and snacks. This new found

'coffee culture' has started to spread to the rest of the world. To those countries with

great coffee traditions of their own, such as Italy, Germany, and Scandinavia, added

new converts to the pleasures of good coffee. Today it is possible to find good coffee in

every major city of the world, from London to Sydney to Tokyo; tomorrow the world

will drink more and more importantly, better coffee.

The Current Coffee Trends

Now in the 21st century we have many different styles, grinds, and flavors of

coffee. We have really come a long way even with our coffee making machines. There's

no sign of coffee consumption decreasing. Researchers are even finding many health

benefits to drinking coffee. Drink and enjoy!

(Source: International Coffee Organization, 2010)

The market for coffee chain retailers is growing every year. Despite the

economic downtown in recent year, coffee shop business has been a bright spot. While

hundreds of business in many categories are facing poor sales negatives balance sheet

and even bankruptcy, coffee chain continue to show strong growth.

21

The coffee culture had been buried deeply in many people life, where coffee is a

part of their life. Many of them need cups of coffee every morning to kick of their day.

But nowadays coffee does not only served in the morning but all day until midnight

where coffee needed as a boost of energy. People tend to walk in to the coffee shops for

all kind of cause nowadays. Coffee shops provide comfortable and cozy environment

and ambiance for the customers to sit back relax while sipping the hot coffee. Coffee

shops are now popular for whether businessmen to socialize, friends to meet up, serving

internet or event dating. Many of them prefer to consume on coffee and lighter meal

such as sandwich at a reasonable price as compare with heavy meal and more expensive

restaurant or alcoholic drinks in pub. Therefore there is huge potential market to be

penetrated.

The recent growth of the coffee shop industry has been phenomenal. Coffee is

now the largest food imported into the USA. More and more eager customers are

flocking to coffee shops, standing in line and paying premium prices. There really is

gold in those beans if we understand the business. However, there is some "insider

strategies" we'll need to implement if we want to cash in on this phenomenal growth

business opportunity. If we like the idea of earning significant money while meeting

people and being surrounded by great aromas and good coffee, this industry might be

our ticket. Although the specialty coffee business looks easy, appearances can be

deceiving. There are a few things first time operators MUST know (that their

competitors are in no hurry to share with them). This information can be the difference

between a "for lease" sign or a "we're hiring and expanding" sign in our coffee shops

window 9 months from now.

(Source: http://www. Coffeeshopprofits.com- Monday, 19 Apr 2010 )

Coffee in Thailand

Coffee has actually been grown and cultivated in Thailand for hundreds of years,

but the industry began to change in the 1960s. The reason for this is that Thailand was

reported to import eight times more coffee than it was actually exporting. Thailand

produces both Robusta and Arabica coffee beans, but 99% of the beans that are

22

produced in Thailand are Robusta. Another popular coffee trend in Thailand is bottled

coffee, which values at more than 4% of recent instant coffee sales in Thailand.

As far as the Thai coffee culture goes, it has been slowly growing since 2006.

Within many Thai coffee shops, you will be able to find iced Thai coffee, normally

served in a paper cup. This is also something that you can find sold by vendors on the

street, and it normally will be strongly brewed with sweet condensed milk. This is a

beverage easy to take with you on the go, and if you visit Thailand, it is a staple of the

culture.

Figure 2.1: Where coffee produce in Thailand

At present, Thailand produces

approximately:

(Source: The Nation, 7 Jan, 2010)

One interesting thing to keep in mind about coffee on the rise in Thailand is that

Asian cultures are normally associated with tea drinking over the centuries. Since coffee

is becoming popular internationally, there are also many new coffee shops popping up,

including Starbucks, all over the globe. This is something directly affecting Asian

cultures, especially with the global brand of Starbucks at hand. Many Asians prefer

coffee from these commercial chains versus local vendors, especially since they are a

newer commodity.

Many people feel that the rise of the coffee culture in Thailand came from

23

coffee habits being brought back from travels to Europe or America. This also brought

new job opportunities to these countries with coffee cultivation and coffee franchises

opening.

(Source: http://www.articledashboard.com, 20 Apr 2010)

A few years ago Thailand saw an explosion in coffee consumption; as a result

world-class coffee is available almost on every corner in Thailand’s larger cities and

chief tourist destinations. Obviously, the world’s big players are now here, but a number

of local coffee shop chains have also emerged. Coffee is a significant cash crop for both

producing- and consuming-countries. Thailand is the third largest producer in Asia

(after Vietnam and Indonesia). Major production is Robusta coffee, of which are

produced annually in the South. Sixty percent of the Robusta coffee is exported and the

rest is mostly used in domestic production of instant (soluble) coffee. Arabica coffee is

produced in the cooler highland areas of the Northern part. It is totally used in roasted

and ground coffee for domestic market. Thailand is a coffee nation, ranked fourth (after

Vietnam, Indonesia and India) in Asia in annual raw coffee production.

(Source: http://www.discoverythailand.com, 20 Apr 2010)

Most of the coffee that you will find in Thailand is brewed, and the only

"instant" coffee is normally sold cold in cans. Thai coffee is something delicious that

you can easily make within your own home, and it is signified by the addition of sweet

cream and spices. Again, it is normally served iced, and it can be mixed with ground

cardamom, sweet condensed milk, and even sugar. Try this dark and sweet coffee that is

traditional to Thailand, and see for yourself if you like it!

There are 3 types of coffee products in Thailand Market:

1. Instant Coffee is produced for an easy way to make coffee cup at home that it is

the most consumption because it is very convenience and save.

2. Instant Coffee Canned is Business which produced in can or bottle features. It

is the most convenience and the customers concern in prices more quality.

24

3. Beans & Ground / Filter & Sachet business is very popular nowadays. The

consumer is the middle class and high class which there are 20% of population

of Thailand. Almost of consumers are people who have knowledge about quality

and taste of coffees.

For premium coffee consumers, the fresh coffee is very popular because they

concern in quality, taste of ground coffee and convenience and comfortable outlet.

One of the most popular ways to enjoy coffee in Thailand is cold or iced. Another

popular signature of coffee in Thailand is that it is made with chicory, cardamom, or

even condensed milk. Coffee is brewed in Thailand in a tall pot with a coffee sock or

coffee filter. You can also use the same method with a teapot, Turkish coffee maker, or

French Press. The bottom line is that the coffee should result in a rich and flavorful

brew that mixes well with sweet condensed milk.

2.2. SITUATION OF INDUSTRY

Industry Size

The coffee industry includes 20,000 stores with combined revenue of $11

billion. Approximately 20 million people work in the coffee industry worldwide. The

coffee industry is very concentrated at the top and fragmented at the bottom with the top

50 companies taking up to 70% of the sales. Starbucks lead the way with over 16,680

stores worldwide; and Caribou Coffee a distant second, with nearly 500 corporate

owned stores and over 100 franchised outlets.

Competition

The general coffee industry is well developed and very competitive. A coffee

store operator will face competition not only from other coffee shops but also gas

stations, quick service and fast food restaurants, convenience stores, donut shops and

gourmet food stores. Franchises in the coffee shop industry allow the franchisee to take

25

advantage of a recognized name, a tried and tested system and benefit from the

efficiencies of the franchisor.

World Consumptions and Sales

It may come as a surprise to many to learn that the most popular beverage

around the world is coffee. Every year coffee drinkers around the world drink and

access in excess 400,000,000,000 cups. Coffee sales statistics provide vital information

for the world economy. When it comes down to all the coffee that is harvested around

the world, only 20% of the harvested beans are classed as being high quality or

premium. There is no shortage of coffee growers as coffee consumption statistics

show throughout the world as more than 45 countries commercially grow the crop. It

certainly is a source of providing employment for many individuals throughout the

world for example in Brazil over 5 million people work within the coffee industry and

the majority of them are working at cultivating and harvesting of over 3 billion coffee

plants.

Out of all the various ways of being able to consume caffeine in the United

States alone 75% of the caffeine consumed comes from coffee. As far back as 1763,

Venice showed their appreciation of coffee by having over 200 coffee shops according

to coffee sales statistics. Coffee consumption statistics show there is no shortage in

Italy of places to find a good coffee brew as they currently have over 200,000 coffee

bars and more opening every day. Everyone knows that champagne is the ultimate

beverage to France but equal to this is espresso to Italy. Italy considers coffee and

espresso one and the same. According to the USDA by the end of December 2008 the

forecast was for 2008 and nine that there would probably be about 138.4 million bags of

world coffee production. This may seem like a lot but it's down by 2.2 million bags

compared to June 2008’s projection of 140.6 million bags For the last quarter of 2008

coffee sales statistics show the exports of coffee bags was down compared to the third

quarter was a 1.36 decrease but compared with a year ago for the same quarter the

26

exports were up by 4.9% US imports the last quarter of 2008 there was a decrease in

imports by 6% for the United States and for pricing the average price per pound of

roasting ground coffee went down by 10% by $.10 Naturally, coffee statistics vary

greatly from country to country some being more avid consumers than others. It doesn’t

matter which country sells the most or the least it’s important to the economy to know

where the world market stands regarding this commodity when it provides such a source

of livelihood and employment in every coffee growing country.

(Source: http://www.coffeebeansroasting.com, Tuesday, 08 September 2009)

Fingure2.2: World Coffee Consumption Statistic in year 2008

Coffee is consumed the most in the US. And Japan is ranked in 3rd place in

coffee consumption. Finland has the highest consumption rate per person followed by

Norlway and North American countries.In terms of individual coffee consumption,

Japan is ranked in 10th place.

(Source: http://www.cfc21.com, 2008)

27

Figure 2.3: World Coffee Consumption in year 2009

(Source: http://www.whatsforenglish.com, 2009)

American Coffee Consumption

Even in the recent economic climates, the coffee industry has proved to be very

resilient. This is seen in the National Coffee Association of U.S.A.’s 2009 National

Coffee Drinking Trends market-research survey. While many business are noting a

downturn in consumers, daily consumption of coffee beverages among consumers

remained consistent in 2009 with 54% of the overall American adult population

partaking. This information tells us that even through difficult economic times; people

of all ages are still consuming coffee.

28

Data from the Coffee Research Organization and the National Small Business

Development Support Center Clearinghouse show that coffee is the most popular

beverage in the world, with more than 400 billion cups consumed per day. Americans

alone, consume 400 million cups of coffee per day making the United States the leading

consumer of coffee in the world. That is translated into four and a half thousand cups of

coffee per second. Below is a graph for the consumption of coffee in America for the

years 2006, 2007 and 2008:

Figre 2.4: Coffee Consumption in America

Age ‘06 ‘07 ‘08

18 – 24 31% 37% 26%

25 – 39 47% 44% 47%

40 – 59 59% 61% 61%

60 + 73% 74% 71%

29

Asian Consumption

According to DataMonitor, coffee

consumption in Asia is predicted to

increase 31.59 % in the decade from

2003-2013, an average of 2.78% per

year, outstripping tea, which rose 24.20%

over the same time period or 2.19% a

year. Of course, tea is still the preferred

beverage with total consumption more

than three times that of coffee

(US$14,361.1 million for tea versus

US$4,637.2 million for coffee) in 2008

Coffee consumption has not yet attained its saturation level. In the 70's, not even

50% of households consumed coffee, imbibing tea as their main beverage. Now, 60% of

the Japanese households consume coffee; 40% consume tea. The potential for growth is

still there. Japan has become a major consumer of coffee and it seems this is one healthy

market for growth. While canned coffee first appeared on the shelves, originated by

Ueshima Coffee Corp.; almost every country worldwide is introducing iced and canned

coffees in the hopes that they may also enjoy Japan's success. I think that we are all well

aware that for the American culture, coffee drinking is key. Many of the coffee drinking

history and authenticity that we know today actually came from Europe, and just

recently, Asia is actually catching on to all of the trends. Right now currently,

Indonesia, China, and the Philippines are actually some of the biggest coffee drinkers in

all of Asia. In China, for example, roughly 1/3 of all adults are drinking coffee in corner

coffeehouses like Starbucks. The motivation behind the Asian coffee culture movement

is similar to that of the US in that most individuals are looking to spend time drinking

coffee as a social interaction with their groups of friends.

It has been seen in the past that most Asian countries lean toward tea drinking

versus coffee drinking, but Starbucks seems to be on the rise overseas and is drawing in

more and more Asians who are turning toward the love of coffee. When you compare

30

tastes and flavor profiles, Asians are actually drinking a lighter roast than their Western

counterparts and liking a sweeter taste. Cappuccinos are seen being ordered at least a

third of the time in Hong Kong, with a Mocha being the runner up in second place. As a

third option, most coffee drinkers in Asia are drinking regular coffee. It seems that most

Asian coffee drinkers are actually partial to corporate chains like Starbucks than the

other local coffee houses that have sprung up. Two of the most popular brands in the

Philippines to date are Starbucks and Seattle's Best, and some of this is speculated in the

fact that many Asians see celebrities in the media drinking from Starbucks. I'm sure

Starbucks is saying thank you!

One of the main reasons that Asian coffee culture has sprung up so quickly is

because many Asians were actually bringing back these ideas from visits to Europe and

America. It is obvious that America and Europe both have extremely strong coffee

cultures, and Asia is coming in a close second in having more and more coffee drinkers.

Currently, there are still many Asians who are making instant coffee, though there are

even more coffee houses and cafés that are beginning to open their doors for business

all over the region. I am happy to note that the love and taste that we all have for coffee

is something that is catching on worldwide as a notable fact and point of reference.

Coffee drinking is more than just using the caffeine to stay awake, but it is something

that is specific to each cultural taste and flavor profile, and it is amazing to learn how it

develops within each country. I give props to Asia for taking the time to implement

coffee styles and habits into their own countries, rivaling that of the American way.

Coffee drinking is something that can be celebrated and shared due to the fact it has a

rich and antiquated history that we can all learn from and share worldwide.

(Source: http://www.e-importz.com, 2010)

Production and Industry

Coffee is one of the world's more important primary commodities. The coffee

producing belt includes approximately 70 countries worldwide and employs

approximately 20 million people. Information from the United States Department of

Agriculture shows us that the world coffee production in 2008/2009 is forecast at a

31

record 138.4 million bags or 132.276 pounds.

The Brazil Coffee House, for example, imports only select naturally processed

green coffee exclusively from growers in the Cerrado and South Minas region of Brazil.

The Brazil Coffee House franchises the option of owning and operating one of these

unique plantation style coffee stores.

ASEAN Coffee Production

Association of South East Asian Nations (ASEAN) countries produce – and

avidly consume – an astonishing variety of coffees. Between them Vietnam, Indonesia,

Thailand and the Philippines produce about 18% of the world’s coffee, accounting for

about 22% of global coffee exports. Malaysia, Laos and Myanmar produce some highly

acclaimed arabica beans favored by experts and connoisseurs, while Singapore has

become a coffee exporting hub and, thanks to its wide ethnic diversity, hosts pretty

much every coffee culture and bean type you can think of in its many teeming, fragrant

coffee shops.

Coffee was originally introduced to much of the region by European colonizers.

The French brought it to Vietnam, Laos and Cambodia, the Dutch to Indonesia, the

Spanish to the Philippines and the British to Malaysia and Myanmar. In all these

instances, it appears that early colonizers originally planted coffee plants for personal

use, a hobby that quickly grew into a major international trade rivaling that of tea in its

day. A parallel domestic trade flourished alongside the success of the regional coffee

plantations as more and more local cultures adopted the fragrant beans into their own

lives as it became available.

Vietnam and Indonesia (12.6% and 4.59% of global production respectively) are

the two largest coffee producers in ASEAN, followed by Thailand and the Philippines

(0.65% and 0.55%). Malaysia, Cambodia, Laos and Myanmar also produce unique

32

coffees, some of which are exported.

(Source: http://www.teacoffeeasia.com, 2010)

Popularity of Fair-Trade and Organic

Current buzz words in the coffee industry are ‘organic’, ‘shade grown’,

‘sustainable and fair-trade certified’. More and more Americans care about the

conditions of the people who produce the products that they buy and the dangers to the

environment. According to the Organic Trade association, the organic coffee market is

now a billion dollar industry.

To accommodate this trend, more coffee franchises have licensing agreements

with Transfair to offer Fair Trade Certified coffee. Kelly’s Coffee and Fudge Factory

Franchises offer a range of organic and fair-trade coffees and specialty espresso based

drinks. Seattle's Best Coffee offers a premium assortment of Fair Trade Certified and

certified organic coffees. They support Fair Trade, organic and responsible practices.

Dazbog Coffee Franchising LLC also offers a line Certified Organic Dazbog Coffee.

Dazbog Coffee Franchising LLC is ranked at 256 in the top 500 franchises for 2008 in

the USA by entrepreneur magazine. That is up from a ranking of 349 for the year

before.

“Twenty years ago I never would have thought the industry would get this big”

says Rick Kowalski, vice president of operations for “It’s a Grind Coffee House” (IAG

Coffee Franchise, LLC). “The direction we’re going in now is [toward] more organic

coffees as well as coffees where we develop a direct relationship with the growers. We

get involved with their ability to improve their quality of life. We’re helping them

develop clean water sources. That obviously helps everybody and the environment

included” IAG Coffee Franchise, LLC was recently ranked in the top 500 franchises in

the USA by Entrepreneur magazine for 2008. They offer franchises for the low initial

investment fee of $25,000 - $36,000.

Starbucks, the world’s biggest chain of coffee stores, is one of the largest buyers

of Fair Trade Certified coffee. In 2009, they plan to double their purchases of Fair

Trade Certified coffee to 40 million pounds, making the company the largest purchaser

33

of Fair Trade Certified coffee in the world. All of the espresso-based coffee used in its

European stores is Fair trade certified.

Key terms for Fair-trade and Organic Coffee Market

• Organic coffee is grown without pesticides, herbicides or chemical fertilizers.

For coffee to be sold as certified organic in the United States, it must be

produced in accordance with U.S. standards for organic production and certified

by an agency accredited by the U.S.

• Sustainability addresses the environment as well as social and economic

responsibilities.

• Shade grown coffee is grown on certain plantations where bushes can be

integrated into the rainforest. This preserves bio-diversity as the coffee is not

grown in rows in cleared plots.

• Fair-trade certified coffee means that small scale farmers are getting a fair price

for their produce and are not being under cut by bigger corporations.

Starbucks and Seattle’s Best Coffee, Franchise:

Starbucks does not offer franchises. In North America, the majority of stores are

Company-operated. As an exception, Starbucks may enter into licensing arrangements

with companies who provide access to real estate which would otherwise be unavailable

such as airport locations, national grocery chains, college and university campuses and

hospitals. Seattle's Best Coffee is a subsidiary of Starbucks and offers franchises to

operate a Seattle’s Best Coffee Café and/or Kiosk. The estimated initial investment for a

single unit franchise is between $164,500 and $317,000. As of May 2008 Seattle’s Best

Coffee has more than 540 cafes in the U.S. and 86 Seattle’s Best Coffee Express

34

espresso bars. In addition, Seattle’s Best Coffee is available across the U.S. in

supermarkets and at more than 3,900 foodservice locations, such as college campuses,

restaurants, hotels and cruise lines.

(Source: Franchise Direct is a member of the IFA, 2010)

Coffee Business in Thailand

During the economic depression and fragile political stability of 2009, all

businesses suffered setbacks and many jobs were lost, even the coffee business. The

business growth was quite small when compared to the past 5 years. This could clearly

be seen from the smaller number of orders from hotels, restaurants, and food courts,

plus the regular customers were more conscious about their spending and most of them

started to reduce their coffee consumption. The businesses had to adjust their marketing

strategies to handle the situation and attract more customers. The strategies like

membership and promotions make the customers feel that their cup of coffee are more

valuable, thus, more enjoyable. After all, what they might need is a cup of excellent

coffee as the reward during the hard time. Even though there are some setbacks in Thai

coffee business, it is one of the businesses that are moving forward. It helps people taste

more variety of coffee and makes people realize about what they choose to drink. The

western style coffee like Espresso, Latte, Cappuccino, and coffee art is gaining its

popularity in Thailand, and cafés are being a part of city life as new café pops up every

day. These cafés become the third home, other than the offi ce and condo, for city

people, and push the coffee business this far, so it is interesting to see where this high

potential business will go on.

35

Figure 2.5: The challenges for Thai coffee business in 2010

Expected Demand for Thai Coffee graph

0

10000

20000

30000

40000

50000

60000

47/48 48/49 49/50 50/51 51/52

To

ns

Year

Source: Office of Agricultural Economics and Entrepeneurs

Produce

coffee in demand

From the graph, we can see that there is an increase in demand from the

consumers. On the other hand, the businesses do not have the long term development to

produce enough coffee, so Thailand has to import coffee from oversea to match coffee

demand.

A factor that may cause this lack in supply may be from the high coffee produce

that flooded the market and caused the drop in coffee price a couple of years ago. This

price drop infl uenced the farmers to turn to other plants, and the government policy to

reduced coffee plantation in southern Thailand to produce more profi table plantssuch as

palm and rubber tree.

Importing high volume of coffee from oversea slows the development of Thai

coffee and makes Thai coffee more expensive. However, we still have to import the

oversea coffee because we have to consider the domestic demands as the main factor.

Mr. Weera Somboonwejchakarn, the president of VPP Progressive Ltd., and the

owner of Café D’Oro said, “There is a small limitation in Thai coffee production that

36

makes the world market not interested in it. We used to export 5% of total world coffee

10 years ago, but the produce in southern Thailand dropped, so we have to import

because the domestic supply doesn’t suffi ce the demand. And I don’t think there is

enough motivation for Thai coffee to compete in the world market.”

Rather than the production problem, Thai coffee also faces with the challenge in

the development of manufacturing processes. The quality of the coffee itself is good but

it lacks the production control system for planting the coffee trees, keeping the product

quality standard (GAT), pushing organic farming, to adding value to the product.

Therefore, it is important to make farmers realize that produce standard is more

important than the sale made.

AFTA

ASEAN Free Trade Area (AFTA) is aimed to attract foreign investment and

increase the potential of ASEAN products in world market by eliminating the taxes

between members. This can reduce the development gap and increases trades between

countries. However, the produces that are sensitive to tax reduction will be

exempted until 2010, and then the tax will be set to 0-5%.

Thai government is expected to reduce the coffee import tax to 5% and this will

widely affect Thai coffee market. A business can choose to introduce cheap, low quality

coffee to the market, or it can improve its product to premium grade by importing

quality raw ingredients to blend in and increase its price. Mr. Autsawin Kairasmi, CEO

of Banrie Coffee, said “The free trade will open up many opportunities for businesses.

They can choose to keep the same price and increase the value in other aspects such as

improving the services and decorate the café to create more relaxing atmosphere. In

addition, they can introduce new cheaper products like light, medium, and fancy

coffee”.

“The competition in coffee market is quite high. We need to develop and adjust

our products all the time to satisfy the customers as much as we can, including product

variety, and control the cost without losing the quality while maintaining the same

price”, Ms. Parichart Greenwood, marketing manager of GFA Cooperation (Thailand)

that own Coffee World Restaurant and Café franchise, also share the similar opinion.

37

“In the coffee wise developed countries, they will focus on the qualityof coffee and

import many different coffee beans to blend. They can create the best coffee by using the

best ingredients without having to worry about import tax. In contrast, we still have

import tax to worry about. The cost of importing green beans would decrease if the free

trade area is in place, and we can improve our coffee in an acceptable price to give the

customers the best” Mr. Witoon Sila-On, managing director of Bluecup coffee, added.

However, it would be diffi cult for the business to compete in the price war,

because AFTA will bring in more competition while Thai labour and coffee cost are

still high when comparing to the neighbours. The AFTA will bring in cheaper coffee

with the same quality, and would push Thai coffee to evolve from community grade to

premium grade coffee.

Mr. Meechai Amornpattanakul, chairman of Thai Barista Association and K2

executive said, "The farmers will be directly affected if they don’t improve the produce

quality. This improvement can be carried out easier if the farmers change their point of

view and discipline, because Thailand already have better public utility structure and

supporting institutes such as the Department of Agriculture and The Doi Tung Royal

Project".

AFTA also infl uence foreign coffee chain to invest because the raw ingredient

import cost is lower. The advantages in quality and international brand awareness will

be an excellent factor to attract foreign and domestic customers. This is another factor to

stress out the importance in improving the quality of Thai coffee to get the consumer’s

trust.

On the other hand, the consumers have to adapt themselves to the changes as

well. The consumers must take interest in where the coffee bean comes from, not just

worry about the caffeine level, because AFTA will allow low quality foreign coffee to

come in. These coffees may be kept wrongly and may contain OTA (Ochratoxin A)

which can cause cancer if consume.

38

Government policy, help and aid

The government should introduce clear policy to protect the consumers, and this

policy must focus on the safety of the consumers from OTA. For example, set the

limitation of defected coffee beans and contamination percentage in the imported

coffee. An agency should be introduced to inspect the low quality coffee from other

countries. This type of agency will set up the standards for businesses to comply with

and push our development to match with the world standard.

Moreover, the government should support and set up coffee farmer association

to keep the coffee standard, induce cooperation between farmers, and build up the

negotiation power directly to the farmers. “If the government has the fund to set up the

local coffee farmer association and help with the logistic, the farmers will be more effi

cient and create better produces. For example, the government can help with the

produce transportation and fuel cost in the northern mountainous areas where a lot of

coffee is grown. These areas are hard to access and have high transportation cost

which the farmers can’t afford, and sometimes the traders push the price down too far.

But with the government help, the farmers can transport their produces to the roasting

facility and increase their income”

Mr. Prawit Jitnarapong, Beantrepreneur and Black Canyon CEO suggested. Ms.

Sumolpin Chotikapookana, marketing and communication director of Starbucks Coffee

(Thailand) also said, “It is vital to see the importance in the farmers and the coffee

farmer community in order to get enough quality produces to suffi ce the consumer’s

demand. Starbucks has the project to support the northern Thai Arabica coffee farmers

under the name Muan Jaii Blend. We buy the produce at the higher than market price,

and some income from Muan Jaii coffee will go back to the farmers” Rather than rolling

out the policy to protect the consumers and supporting the manufacturing structure.

“The government units like Doi Kum and Doi Tung Royal Projects should represent

Thai coffee in a competition to get the foreign interest in our coffee, because

Thai coffees in world stage are, currently, private brands only”, Mr.

Autsawin added. Even though we can’t compete in the world market in the sense of

product quantity because there is not much suitable terrain for coffee plantation, but it is

39

still important to develop Thai coffee brand. We can push our coffee beans to compete

in the quality coffee market, especially the Arabica coffee beans grown in the northern

part of Thailand.

Mr. Meechai also emphasized that "This is the point that must be changed. The

government must not focus on the quantity of the produce, but focus on the profi t that

will go to the farmers instead. Farmers can produce large quantity of coffee beans and

still make a loss, but farmers can produce fewer coffee beans and make a profi t if they

focus on the quality. When we think about quality, we won’t take quantity into much

consideration, and the price will increase together with the quality"

The government should not consider coffee to be just a normal agricultural

produce because coffee has special characteristics. It blendsin with people lifestyle and

we can use the origin of the coffee to promote marketing like wine, which the origin and

the manufacturedyear are the factors that consumers pay special attention to. This is

becausethe coffee that grows in different area and time will offer its own unique

characteristics, unlike fruits where we can only say whichcountry it is from. Hence,

Thai coffee will have its own uniqueness to offer to the market and develop the lasting

coffee industry here if the government is ready to support.

In conclusion, the government needs to have a clear policy to lead the coffee

business, and every department such as the Ministry of Agriculture, Ministry of

Commerce, and Ministry of Industry must work together. The cooperation would ensure

the effi ciency of all processes to develop Thai coffee and the private businesses won’t

have to compete in the market by themselves like they are nowadays.

Thai Coffee Market Direction in 2010

Despite all the setbacks and challenges, most of the entrepreneur believes that

this year the coffee business will grow more than last year. There are some indications

that the worst of the economic crisis had passed. Some companies in the auto industry

and property industry are bouncing back and paid out bonuses at the end of last year,

40

so the food industry is expected to catch on to the recovery as well. “I believe

that all the opportunities for coffee business to grow are still open. Thailand has good

produce and manufacturing processes, plus our café management is as good as the

foreign coffee chains. The investment from the foreign chains would not scare us. If we

have strong principle, we can keep our customers and lead Thai coffee businesses to

grow”, Mr. Weeradej stated. Ms. Parichart commented that, “The competition this year

is expected to rise with the expansion in some segments of the market like the instant

coffee and coffee for health conscious consumers. This causes premium coffeebusiness

to concentrate more in marketing, and fi nd new strategies to effectively reach our

target customers and increase the market share”.

This growth expectation infl uence the coffee chains to plan their expansion and

started the location war, especially in the petrol station where the cost is lower than

shopping mall and the café can open for 24 hours. The petrol stations in focus are the

ones on main roads to reach large number of customers. “The shopping malls are

slowing down their expansion so Black Canyon turns to petrol stations, and now has

more than 40 petrol station cafes. These cafés attract customers who don’t like

shopping malls to come and try new coffee, which is the strategy to give the target

market the easier way to get to our coffee”, Mr. Prawit added. Beside the plan to open

new cafés, many coffee chains plan to expand their target customers to attract the 18-25

years old customers. Previously, the only target customers are the working adults, but

now the business sees the potential in the young adults as their lifestyles involve coffee

every day. For instance, they may want a morning coffeebefore class, or a cup of coffee

at night to keep them up and study longer. Coffee chain like Bluecup changes its logo

and packages to look more contemporary, while Café D’Oro changes the café

decorations and setup trips and photo activities to get the new target customers

involvement as the strategy for attracting the new customers. The overall of Thai coffee

market in this year seems to develop especially in the premium segment, despite the

large instant coffee segment value which is double the premium market value, but

doesn’t gain much growth. The growth in premium segment would be the result of the

consumer behavior that tends quality coffee and western style coffee, plus factors that

will push Thai coffee to be premium product.

41

Mr. Witoon said “Most of the cafés use roasted ground coffee beans as they are,

obviously, better than instant coffee, so it is a growing market. It is up to Thai people

how much they are willing to spend on a cup of coffee. There are many grades of coffee

to choose from and the consumers are starting to improve their knowledge about coffee

and separate the taste”

Important Adjustment in Thai Coffee

There will be many factors that affect Thai coffee market in 2010 so we need to

adjust to these changes, “We can focus on the superior freshness over imported coffee

because imported coffee needs around 45 days to be shipped here and have the “best

before” age of 2 years. In contrast, Thai coffee is transported straight from northern

Thailand, measure the m oistness, and roast. The whole process takes about 25 days at

Banrie Coffee, so the difference in freshness is a lot and fresher coffee means more

aroma and better taste” , Mr. Autsawin explained.

In addition to the freshness advantage, Thai cafés can adjust to consumer’s taste

and trend quicker than the foreign coffee chains which need to refer to the policy from

oversea headquarter. For example, we can observe the changes in consumer behavior or

we can decorate the café to suit the target customers. If we use these advantages

together with market strategies, it would not be diffi cult for Thai market to compete in

the world stage. Mr. Meechai commented that, “Thai coffee has the potential to present

itself as quality coffee to the world. We only need to add marketing and create the

brand, because Thailand is well-known for its services. We can compete in the world

with our smiles and fresh ingredients, or sell Thai culture together with the coffee”

Ms. Sumolpin expressed Starbucks’ view as, “Thai coffee market is very competitive

and it is important for the customers to have faith in our brand. The customers now are

more careful and smarter at getting the most for their money. Although we have the

advantage on brand awareness, but if we don’t provide good product and service for

your money, then we fail to respond to your need”

42

These are some anticipations from important figures in Thai coffee business, and

only time can tell if the business can go in the expected direction. Nevertheless, Thai

coffee had been growing all these years and the Coffee T&I team thinks that there are

many opportunities for Thai coffee to develop and Thai cafés to grow. We can see this

in big cities where the existing cafés expanded and new cafés are opening. This is a

clear sign telling us that Thai coffee market is moving forward and will not stop

growing.

(Source: Coffee tea & I, Bimonthly Magazine Vol. 14 January – February 2010)

Latte Art

Latte art by definition is “milk art.” When it was first introduced, the idea

behind it was to create the ultimate experience for the consumer. Rich espresso, sweet

milk, finished off with a rosette or heart. The design intrigued the consumer while the

taste kept them coming back day after day. But today many baristas and cafes are only

getting half the picture.

If you look around the industry today, you’ll notice a disturbing trend: latte art is

being cheapened by good latte art. In fact, the baristas try to improve themselves and try

new things because customers love seeing the growth in their favorite barista and

watching the transformation. Instead, latte art is being cheapened by baristas putting a

heart on a drink that has an over extracted shot, or milk that is too hot.

43

Figure 2.6: Latte Art

(Source: Barista Magazine Online; October – November 2009 - 06 Issue,

http://www.baristamagazine.com)

44

Figure 2.7: Thai Coffee Consumption Comparing with

Japan and America

A CUP/ CAPITA/ YEAR

It shows that Thai people drink coffee more than 10 years ago that they

consumed only 50 cups per capita for a year.

(Source: www.kasikornresearch.com, 2009)

Behavioral Consumer

From the research found that Thai coffee consumption is increased for each

year, considering from the sale increasing of instant coffee canned. There are 3 mains

for consumption:

1. Working and Read a book (45%)

2. Good Taste (23%)

3. Thirsty (15%)

0

10

20

30

40

50

60

70

80

90

100

Thailand Japan America

45

So the quality, price and taste is important for consumer.

There are four types of coffee shops in Thailand:

The first, coffee shop is foreign franchises such as Starbucks Coffee which is

the biggest foreign franchise in Thailand, Suzuki Coffee, Gloria fasdf Jean’s Coffee and

Au Bon Pain Coffee.

Starbucks Coffee Thailand is a wholly owned subsidiary of Starbucks

Corporation and it is very high consumption in Thailand. Starbucks Coffee Thailand

was founded with the idea of bringing the Starbucks Experience to Thai consumers.

Since the opening of the first store on July 17, 1998 at Central Chidlom, the company

has expanded throughout the country (Pattaya, Chiang Mai, Samui, Phuket, Huahin,

Nongkhai, Korat, Krabi, Rayong, and KonKaen).

Figure 2.8: Starbucks Logo and Store

(Source: www.starbucks.co.th, 2010)

46

Starbucks is huge in Thailand with constant rate of expansion As of April 2010,

Starbucks has 133 stores in Thailand. STARBUCKS is a worldwide phenomenon.

While traveling in Thailand, In particular- Bangkok, the capitals of Thailand

respectively, are top heavy with Starbucks cafés. It seemed that everywhere – in fancy

shopping centers and on the ground floor of large high-rise office buildings - there are a

Starbucks.

According to a 2007 census, Thailand had 132 Starbuck cafes, with Bangkok

having the lion’s share at 72. While Black Canyon is major competitor to Starbucks in

Thailand; In Thailand, the service was very friendly but most of the Starbuck employees

had limited facility with English. They offered free WIFI and the customers can get

discount rate for 10 baht when they bring their own Starbuck glasses to buy coffee at

the stores.

The clientele at a typical Starbucks café was a mix of local business executives

and white-collar workers, the young University crowd with deep pockets along with

tourists and expats. For Thais, having a Cappuccino, an Iced Caramel Macchiato or any

one those fancy designer coffee drinks represents a real splurge as the prices are almost

the same as in the United States. Please consider that the standard of living and the

average salary is considerably higher in the USA, and the cost of one large cappuccino

($3.00 -3.40USD) will buy you a decent dinner at a local restaurant in Bangkok.

Apparently, having coffee at Starbucks confers a measure of status with the locals. Yes,

Starbucks is huge in Thailand - such is the way of the World.

(Source: http://www.calypsoislandtours.com, 2010)

Starbuck Main Products and Services

At local Starbucks, they serve an incredible variety of handcrafted coffee &

espresso beverages. Some use time-honored recipes. Some are new creations straight

from their kitchens. All are delicious. This is just a taste of what’s in store for

customers.

47

Espresso

This is the very essence of coffee, in its most concentrated form. Starbucks®

espresso is rich and wonderfully caramel-like.

Caffè Americano

Despite the name, this is actually a European way to enjoy coffee: espresso with

hot water.

Caffè Latte

The traditional classic – steamed milk and espresso, lightly topped with foam. Try

it with a syrup of your choice (like vanilla, caramel or almond) for a special treat.

Cappuccino

Honoring a tradition that goes back generations, our skilled baristas carefully

pour hand-foamed milk over espresso.

Caffè Mocha

Delicious Starbucks® mocha chocolate, espresso, steamed milk and whipped

cream. No cold or sad day can resist its power.

Caramel Macchiato

A Starbucks original. Foamed milk marked with espresso and vanilla, then

topped with a distinctive caramel pattern. Sweet, buttery and intense.

Brewed Coffee

Every day, we serve one of our exquisite whole bean selections as fresh, hot

coffee. Signature blends, exotic country varieties, and decaf too.

Starbucks Card

A Starbucks store in your wallet! The Starbucks Card offers you the

convenience of treating yourself – or someone else – to your favorite Starbucks

beverages, food or merchandise, with one quick and easy payment method. It's the

perfect gift for holidays, birthdays, or just to say thanks. Starbucks Card is welcome in

so many places. Definitely all Starbucks coffee branches in Thailand. And the card is

48

also welcome in Starbucks Hong Kong, UK, Australia, Greece, Hawaii and more than

5,500 stores in North America and Canada.

(Source: www.starbucks.co.th, 2010)

Price of Starbucks compared to Thai coffee shops

The price of a Starbucks coffee, hot latte, or an iced drink in Bangkok is

comparable to Starbucks in the US. Now, think about that. The average salary in

Thailand is around 240 baht a day (or $7 a day). And a Starbucks latte is $3.40, half a

day's salary for a cup of coffee. Needless to say, the only people who frequent Starbucks

in Bangkok are the hi-so (high society types), western, Japanese, Korean tourists, or

middle-class or hi-so college students, who buy one coffee and sit there all day.

The Thai coffee shops, on the other hand, unless they're chain coffee shops like

Coffee World and True Coffee are much cheaper than Starbucks and the coffee tastes

the same, or usually better. In a very nice, independent Thai coffee shop, you can get a

hot latte for 55 baht (or $1.60), more than half the price of a latte at Starbucks in

Bangkok. Iced coffee drinks are between 35 and 55 baht ($1 to $1.60) depending on the

coffee shop and, in my opinion, are just as delicious as Starbucks iced drinks. Many of

the Thai coffee shops now do iced-blended type drinks too at a fraction of the price of

the $3.50-$4 Starbucks frappuccinos.

(Source: http://www.associatedcontent.com, 2010)

49

Figure 2.9: Au Bon Pain Logo and Store

(Source:http://www.aubonpainthailand.com, 2010)

Figure 2.10: Suzuki Logo and Store

(Source: http://www.suzukicoffee.com, 2010)

50

Figure 2.11: Gloria Jean’s Coffees Logo and Store

(Source: http://www.gloriajeanscoffees.co.th, 2010)

The Second, foreign investors who built new brand coffee shop in Thailand are

Coffee world, Coffee Beans and etc. Coffee World is famous in this type of industry

and it is the third rank of favorite coffee shop that Thai customers want to drink coffee

in their store nowadays it has 60 stores in Thailand; in 1997 British investor was

launched Coffee World to offer consumer in Thailand which the first branch at ABAC

University. The target market is the students who have high income to the products,

then it expanded to Silom Road to serve the businessmen and officers and expanding to

Central, BigC and Lotus. Coffee World operates a variety of outlets, ranging from large

outlets of up to 160sqm to small kiosks of 25sqm.The outlets are designed to give the

look and feel of luxurious and comfortable living rooms. Coffee World constantly

innovates by frequently introducing new food and beverage creations. They use both

Thai Coffee and import coffee and the prices are between 45 – 65 Baht.

51

Products and Services

Coffee World is a premium specialty coffee house that offers a comprehensive

range of hot and iced coffees with fresh complementary foods such as waffles,

sandwiches and our signature cakes, muffins and cookies. The company places a lot of

emphasis on picking and roasting the finest Arabica beans to create rich brews prepared

by our highly trained baristas (professional coffee makers). To prepare its iced and ice-

blended coffees we favor the use of fresh ingredients, instead of using pre-mixes. The

internet WIFI is provided.

Figure 2.12: Coffee World Logo and Store

(Source: http://www.coffeeworld.com, 2010)

(Source:http://coffeeworld.com, 2010)

52

Figure 2.13: The Coffee Bean Logo and Srote

(Source:http://coffeebean.com, 2010 )

The Third, coffee shops own by Thai entrepreneurs or Thai brand name and

they also expand to the franchise such as Black Canyon Coffee, 94 Coffee, The Coffee

Maker, Wawee Coffee, Doitung Coffee, Doi Chang Coffee and Etc. There are small

entrepreneurs to big entrepreneurs.

The most successful in this type is Black Can You Coffee that is the largest and

most well known operator of franchised coffee houses in Thailand. The management

and every employee have as their goal to continually develop and improve the Black

Canyon Coffee brand. Their target markets are officer and family because they try to be

distinctive from competitors by serving foods.

Black Canyon now has more than 190 branches all around Thailand. Black

Canyon also operates kiosks under the "Black Canyon X'press" name in several stations

of Bangkok's elevated commuter train system (BTS Skytrain). Each year, Black Canyon

serves more than one million cups of coffee to Thais and foreigners visiting Thailand,

who appreciate the flavor and aroma of real coffee, and keep coming back for more.

53

Products and Services

Black Canyon's excellent reputation is based on serving coffees of the highest

quality, with the best aroma and taste, made from 100% fresh coffee beans imported

from around the world, as well as those grown in Thailand under Royal patronage.

Black Canyon coffee houses also serve an extensive food menu. The menu combines

Western dishes such as soups, salads, pasta and French fries with Eastern favorites like

fried rice and noodles; and Thai specialties tom yum, som-tam, etc. A unique feature of

the menu are the "fusion" dishes which combine East and West, examples of which are

spaghetti with green curry sauce, fusilli noodles in tom yum soup, spaghetti with red

panang shrimp sauce, etc. The internet WiFi is provided.

Figure 2.14: Black Canyon Logo and Store

(Source: http://blackcanyoncoffee.com, 2010)

54

Figure 2.15: 94 Coffee Logo and Store

(Source: www.94coffee.com,2010)

Finger 2.16: The Coffee Maker Logo and Store

(Source: http://www.thecoffeemaker.co.th, 2010)

55

The forth that the coffee shop was launched by Thai entrepreneurs and they

cooperate with gas station in Thailand which they have contracts between coffee store

entrepreneurs and gas stations company such as Baan Rai Coffee and Café Amezon

which have contracts with PTT or Public Company Limited; The Group's principal

activity is the operation of petroleum business and it is big and well known company in

Thailand. Ban Rai coffee store contracted with PTT for many years and there are 70

branches with gas station; many people feel familiar when they visit PTT gas station but

now their businesses are terminated coffee store’s contract with PTT and political

problem with economics crisis so they close all coffee stores. Nowadays PTT opens

Café Amazon Premium which launch by PTT that they sell franchise for pump station

dealers and other people who want to do the coffee stores business.

Figure 2.17: Amazon Coffee Logo and Store

56

(Source: http://www.oknation.net, 2010)

Coffee Business in Phuke

Nowadays there are many coffee entrepreneurs in Phuket Provice because it is

the famous tourist destination of Thailand which there are famous foreign brand names,

famous Thai brand name, local famous brand names and regular shops suck as

Starbucks, Black Canyon, Boncafe, Tiny, Kopi De Phuket, China Inn Café and

Restaurant, Glastnost and Phuket 346. They provide many kinds of coffee and cake; it

depends on menus which each shop are created that there are also different style of

decoration.

The most famous local coffee shop is Kopi De Phuket because it is original

Phuket Coffee Style. Kopi de Phuket, which opened in 2001, is halfway between" The

Books" and the Tourism Authority of Thailand office on Phuket Rd. It is in fact the

second Kopi; the first is a tiny coffee shop in the On On Hotel on Phang Nga Rd that

has been open since 1999. The new Kopi remains at heart a coffee house, a place for

people to chat and indulge in traditional Phuket-style drinks such as the black-as-hell

kopi O brewed to a generations-old and, naturally, secret recipe from beans grown in

Northern Thailand. Kopi de Phuket also offers a range of juices and smoothies but the

real selling point for me is the food because there are vaiety of food for customers

which are own created, including traditional Phuketain style and etcs. The atmosphere at

Kopi de Phuket is relaxed, the range of refreshments is intriguing, it's cheap and it offers

an insight into a culture that seemed, until the shop opened, to have all but vanished.

Best of all, Kopi de Phuket is not Starbucks, nor part of any other coffee shop franchise

business. What better compliment could there be?

57

Figure 2.18: Kopi De Phuket Store

(Source: http://kopiphuket.com, 2010)

Actually there are many coffee stores in Phuket but they are in downtown or

other place of Phuket but OKey Coffee will open at Karon Beach that the beach has low

competiotors of premium coffee store so this business is very interesting.

(Source: Survey by asking local people and restaurant in Karon beach by

Mr.Pattarapong; researcher, 17 Apr 2010)

Phuket International Hospitality Show 2009

September 24-26, 2009; Royal Phuket Marina International Ehxibition &

Conference Center Phuket, Thailan

58

The Phuket International Hospitality Show is the first International Exhibition of

Food & Drink, Hotel, Bakery, Restaurant & Food service Equipment, Supplies &

Services for the hospitality industry in Phuket and nearby provinces of Krabi (Ko Phi

Phi and Ko Lanta), Phang Nga (Ko Yao) and Surat Thani (Ko Samui), and may attract

trade from Bangkok. The show was held on September 24-26, 2009 at the Royal Phuket

Marina International Exhibition & Conference Center in the heart of Phuket, Asia’s

leading tourist destination. A three-day series of lectures and seminars were on the

agenda as well targeting relevant hotel and restaurant topics. Even the fi rst time of

international hospitality show that was held in Phuket but the professional show

organizer made its success. The show was arranged to help the people in the hospitality

industries to realize what the coming trends and comprehend what the new challenges

that they need to prepare themselves to be in the forefront of the business. All of the

exhibitors and visitors said that they will defi nitely plan to participate next year.

Figure 2.19: Phuket International Hospitality Show 2009

59

(Source: Coffee tea & I, Bimonthly Magazine Vol. 13 November – December 2009)

2.3 Product and Service

There are main 3 types of products that almost of coffee stores are provided.

Beverages:

Hot Drinks

Figure 2.20: Hot Drink

There are 5 international main coffees brewing:

- Espresso concentrated coffee beverage brewed by forcing hot water under

pressure through finely ground coffee.

- Cappuecino is an Italian coffee drink prepared with espresso, hot milk, and

steamed-milk foam.

- Ristretto is a very "short" shot of espresso coffee.

60

- Mocca is a variant of a caffè latte. Like a latte, it is typically one third espresso

and two thirds steamed milk, but a portion of chocolate is added.

- Caffee Latte is a coffee drink made with espresso and steamed milk.

Cold Drinks

Figure 2.21: Cold Drinks

Coffee - Based Soft drinks & Smoothies

61

(Source: http://www.boncafe.co.th, 2010)

Cake & Cookies:

Almost of coffee store provide cake and cookies for their customers.

Figure 2.22: Cake & Cookies:

(Source: http://cake2thailand.com, 2010)

62

Food:

Some of coffee store provide foods which are international and national foods.

Figure 2.23: Food

(Source: http://my-recipes-taste-good.com, 2010)

Service:

Most of premium coffee stores provide Wi-Fi to customers to play internets.

2.4 Vision

To be, and be recognized as, the best premium coffee shop to enjoy and relax

near the beach and expanding a new branch at other beach in Phuket within 3 years, as

well as serve variety of good quality coffee cups and service mind.

.

63

2.5 Mission

OKey Coffee provides the best place to enjoy and relax on holiday or free time

for our customer that the customers can impress with variety of premium coffee cup and

other products near the beach in comfortable environment which we will serve with

service mind. We try to provide the happy time to our customers with good quality of

products because we select only good quality of raw materials and we also treat

employees’ welfare seriously, provide training and reward them to satisfying for good

performance because we seek for customer satisfaction and loyalty of our products

which can advertise with “Word of Mouth”, enough to keep the company financially

healthy for the short term. We believe in sustainability of coffee brewing industry and

adopt fair trade policy as a key to drive our business forward so we can expand a new

OKey Coffee branch to serve customers at other beach in Phuket.

2.6 Strategies

They are 3 levels of strategies in organization:

2.6.1 Corporate Strategy

2.6.2 Business Strategy

2.6.3 Functional Strategy

2.6.1 Corporate Strategy

Premium Coffee Store is the business that it needs to develop products and

maintenance standard of services continuously so the premium coffee store business

should have good management systems which are human resource management, sale

and service systems, stock system and efficiency marketing otherwise it can affect to

high cost of production. Most of successful entrepreneur of this business use the

Information Technology System to control in each departments.

“OKey Coffee” is the new business that will launch at Karon beach in Phuket,

64

it is also new entry in the market so we need to plan the good strategies for our business.

According to vision of our company is “To be, and be recognized as, the best premium

coffee shop to enjoy and relax near the beach and expanding a new branch at other

beach in Phuket within 5 years, as well as serve variety of good quality coffee cups and

service mind”, our business need to growth by increasing sales and profits, especially

focus to create growth within the organization so we adopt growth strategy for our

business which is horizontal concentric growth strategy by internal development

because we need to expand our business to the new market in Phuket with in 3 years.

2.6.2 Business Strategy

Figure 2.24: Porter’s Five Geneic Strategies

According to OKey Coffee is launched near the beach and it is in tourist

destination. We adopt differentiation focus because we target on tourists because there

65

are many tourists there, especially foreign tourists. There are few competitors in Karon

because it has few premium coffee stores so it is good opportunity for our business.

OKey Coffee aim to open the best premium coffee store near the beach in Phuket and

we want to expand a new branch into the new market within 3 years so we need to focus

on our products and service, especially our place is very important because it is our

unique and it can attractive our target group. We focus only the place that near the

beach which the customers can impress our products with beautiful view of blue beach,

fresh atmosphere and good decoration. We also provide the different of products or

variety of menus for our customers that they are different from competitors and

providing the high quality of services which we concern with service mind so our

customers satisfy and brand loyalty with our products and services; customer

satisfaction can create word of mouth so we can keep forward for new market.

2.6.3 Functional Strategy

The functional level strategy will give the detail of the strategy for each function

of OKey Coffee that represent in the function of marketing, production and service,

organization, management information system, and financial and accounting.

Marketing strategy

OKey Coffee marketing strategy will be focused at getting new customers,

retaining the existing customers, getting customers to spend more and come back more

often. Establishing a loyal customer base is of a paramount importance since such

customer core will not only generate most of the sales but also will provide favorable

referrals.

Products and Services Strategy

- Create branding, logo and slogan to increase brand image, and making customer

to remember easily

66

- Focused on products and services that are variety and high quality or proving

best value of products and services. The clean and save is also important.

- Create unique packages for attractive the customers

- Create new menus for monthly, high season or peak season

- Free Wi - Fi

Price strategy

- Estimated cost and selling price of competitor

- Estimated production cost of raw material plus operation cost and setting

reasonable price with products and services

Place strategy

- Locating on convenient place which near the beach and crowded of people so it

can be more attractive customer than competitor.

Promotion strategy

- Advertising product and service though of media such as brochure,

Company web site and public relation such as donating box

- To changing new one of products that there are accidents by customer wrongs

such as coffee cups are split or broken. It will lead the business to good standard

and it can be “Word of Mouth” which is the good promotion.

- Wearing staff uniform of OKey Coffee

- Discount some menu of beverage in low season

67

Financial strategy

- Loan money from investor in Dubai 100% and paying high interest rate follow

The Thai Civil and Commercial Law, this is the cost of turnover for business

- Recruit expert financial personal for financial statements to systematic, clear,

and accurate in every month and improving the accounting system and finance

in standard form

- Financial evaluate systematic and controlling within organization

- Discipline with financial, savings and non credits

Human resource strategy

- Focus on training employees for high quality of service, such as there is training

teamwork, customer service skill, persuasion talking, action and manners, and

good personality service to customer, training about ethic and etc.

- Training employees to remember the customers and their menus

- Divide work, and assign appropriate position to employee

- Tracking task and evaluate performance of employee

- Motivation employees by rewards or bonuses

- Providing Social Welfare for employees

68

Chapter 3

Marketing

Feasibility Study

69

3.1 MARKETING ANALYSIS

3.1.1 General Environment Analysis

Figure 3.1: Environment Factors

(Sources: http://www.marketingteacher.com and http:// www.tutor2u.net, 4 Oct 2007)

Political Factors

To operate business in Thailand need to following Thai Policies which is

Department of Business Development Ministry of Commerce that Company Limited

Registration According to the Civil and Commercial Code, Company Limited is that

kind of company which is formed with a capital divided into equal shares, the liability

of the shareholders being limited to the amount unpaid on the shares respectively held

by them. There are details of Company Limited Registration According to the Civil and

Commercial Code in appendix part.

(Source: Department of Business Development Ministry of Commerce Thailand;

http://www.dbd.go.th, 26 Apr 2010)

70

Revenue Department of Thailand which Corporate Income Tax (CIT) is a direct

tax levied on a juristic company or partnership carrying on business in Thailand or not

carrying on business in Thailand but deriving certain types of income from Thailand.

There is Corporate Income Tax (CIT) in appendix part.

(Source: Revenue Department of Thailand; http://www.rd.co.th, 26 Apr 2010)

In addition, there are other governmental organizations which we need to contact

for the business that the details are in appendix part.

Thailand's Central Committee on Minimum Wages approved increases in the

minimum daily wage of between THB 1 and THB 8 to ease the effects of inflation for

workers in 71 provinces. On the upper end of the scale, Ayudhya received an increase

of THB 8, making its new minimum wage THB 181, while on the other end, Nan,

Payao, Prae, Pitsanulok, Utharadit, Pichit and Loey were given a THB 1 increase in

their daily rates. Meanwhile, minimum daily wages in Mae Hong Son, Sukhothai,

Chiang Rai, Petchboon and Uthaithani remain the same. Bangkok was given a THB 3

increase, bringing the capital's minimum daily wage to THB 206, and another 62 other

provinces received adjustments between THB 2 and THB 7. There are details of Labor

Cost in appendix part.

Table 3.1: Minimum Wage Rate 2010

MINIMUM WAGE 2010

Announced minimum wage rate since 1 January 2010

Minimum Wage Rate

The enforcement of the new minimum wage rate made in January 1, 2010. The wage-

rates detailed as follows;

Bath Area

206 Bangkok and Samutprakarn

205 Nakornpratom ,Nonthaburi, Pratumthani and Samutsakorn

71

204 Phuket

184 Chonburi and Saraburi

181 Pranakornsriayuthaya

180 Chachengsao

178 Rayong

173 Nakornratchasima , Pang-nga and Ranong

171 Chiangmai

170 Krabi , Prachinburi and Lopburi

169 Kanchanaburi

168 Petchaburi

167 Chantaburi and Ratchaburi

165 Singhaburi and Angthong

164 Prachaubkirikhan

163 Loei , Samutsongcram and Srakaew

162 Trang

161 songkla

160 Chumporn , Trad ,Nakornnayok ,Naratiwat, Yala ,Lumpoon , Uthaithani and

Ubonratchatani

159 Nakornsrithammarat, Pattani ,Pattalung ,Satoon ,Suratthani, Nongkhai and

Udonthani

158 Kampaengpetch ,Chainat ,Nakornsawan ,Petchaboon and Suphanburi

157 Kalasin ,Khonkean, Chaingrai , Burirum ,Yasothon ,Roi-ed and Sakonnakorn

156 Chaiyaphum, Lumpang and Nongbualumpoo

155 Nakornpanom, Mugdahan and Amnatchareon

154 Mahasaracram

72

153 Tak , Phitsanulok, Maehongsorn, Sukaothai , surin and Uttraradit

152 Nan and Srisaket

151 Payao, Pichit and Phrae

(Source: Ministry of Labor; http://eng.mol.go.th, 26 Apr 2010)

Politic crisis not affecting investment in upper southern region

Wanida Maikijmou, Director, Regional Investment and Economic Center 6

(Surat Thani) for the Thailand Board of Investment (BOI), reported the overview of

investment in the upper southern region of Thailand in the first quarter of 2010. She

said that the BOI had supported investment privileges for projects twice the size of last

year. It’s indicated that the investment in the upper southern region was expanding

continuously in the recovery since the world economic recession and political crisis in

Thailand.

From January – March 2010, BOI had supported investments for 18 projects

worth 6,000 million baht. The investment this year was 2-3 times higher than last year

when there were only 8 investment projects worth 2,000 million baht that had been

supported by BOI in first quarter of 2009. Wanida said that most of the projects this

year were about agricultural products like palm or rubber trees and the tourism

industry. She also predicted that the investment in the second quarter of this year would

continuously expand since there were over 20 projects asking for investment support

from BOI, with each of these projects worth 600 – 700 million baht. But the political

problems in Bangkok might slow down the investors to establish their projects in

Thailand. Yet BOI is confident that the investment rate of this year would be higher

than last year. It’s estimated that there would be 60 projects approved for investment

support, worth 20,000 million baht.

(Source: http://www.phuketindex.com, 9 Apr, 2010 at 13:52)

73

BOI says Phuket needs more investment,

Wanida Maikitmao, the Director of Regional Investment and Economic Center 6

at Thailand’s Board of Investment (BOI), said that the investment perspective of Phuket

during the past 2-3 years is quite good since many big projects related to tourism have

been started on the island. Wanida mentioned that BOI has mainly supported new

projects that help tourism such as hydrofoil boats between Phuket and Phi Phi, a Water

Park on Mai Khao Beach, etc. She further commented that in 2010, there might be other

projects in Phuket therefore BOI plans to soon set up its office on the island to facilitate

investors in investment information and contacts.

(Source: http://www.phuketindex.com, 3 Mar, 2010 at 13:50)

Phuket plans industry development

On March 11th, 2010, Apichai Amornpisut, Head of Phuket Industry Office

(PIO), presided over a meeting on Phuket Industry Development Strategy Review.

Other officers from related government offices joined the meeting such as Prajiad

Aksorndharmakul, Head of Phuket Development Strategy Office in Phuket Provincial

Office, Ornanong Suwannakarn, the President of Phuket Industry Association, and

representatives from private sectors in Phuket.

Apichai said that PIO has set up the strategy to develop industrial sections in

Phuket following the policy issued by the Ministry of Industry for 2008 – 2011. To

make the plan fix the island’s circumstances, PIO needed to brainstorm with the

entrepreneurs in Phuket to find the most effective framework, action, and budget plan

for this.

To develop industrial sections in Phuket, PIO will support and enhance the

seafood products and souvenir entrepreneurs in manufacturing capacity and encourage

them to use more technology to reduce production costs and be friendly for the

environment at the same time. Written on 12 Mar, 2010 at 11:25

74

Figure 3.2: Phuket hosts seminar on Free Trade Area and

Business Opportunities in South of Thailand

Poonsri concluded that the last seminar about this had indicated that 0% tax

agreements made between ASEAN members including Thailand, Malaysia, Indonesia,

Philippines, Brunei and Singapore, would be advantageous for trading between

Thailand and ASEAN countries. It’s estimated that there could be approximately 25%

growth in business in this region.

In addition, there was a commitment that the member countries must let ASEAN

investors hold 70% of stock in hospitality business by 2015 and adjust the laws

hindering investors to do business in such countries, especially by letting foreigners

hold 51% of shares in all hospitality businesses.

Therefore DTN has been holding seminars around Thailand to make people

understand and adjust their way of doing business, following the world economic

situation and listen to their opinions before integrating it into Thailand’s economic

strategy.

75

(Source: http://www.phuketindex.com, 25 Mar 2010 at 14:00)

AFTA

ASEAN Free Trade Area (AFTA) is aimed to attract foreign investment and

increase the potential of ASEAN products in world market by eliminating the taxes

between members. This can reduce the development gap and increases trades between

countries. However, the produces that are sensitive to tax reduction will be exempted

until 2010, and then the tax will be set to 0-5%.

Thai government is expected to reduce the coffee import tax to 5% and this will

widely affect Thai coffee market. A business can choose to introduce cheap, low quality

coffee to the market, or it can improve its product to premium grade by importing

quality raw ingredients to blend in and increase its price. Mr. Autsawin Kairasmi, CEO

of Banrie Coffee, said “The free trade will open up many opportunities for businesses.

They can choose to keep the same price and increase the value in other aspects such as

improving the services and decorate the café to create more relaxing atmosphere. In

addition, they can introduce new cheaper products like light, medium, and fancy

coffee”.

“The competition in coffee market is quite high. We need to develop and adjust

our products all the time to satisfy the customers as much as we can, including product

variety, and control the cost without losing the quality while maintaining the same

price”, Ms. Parichart Greenwood, marketing manager of GFA Cooperation (Thailand)

that own Coffee World Restaurant and Café franchise, also share the similar opinion.

“In the coffee wise developed countries, they will focus on the qualityof coffee and

import many different coffee beans to blend. They can create the best coffee by using the

best ingredients without having to worry about import tax. In contrast, we still have

import tax to worry about. The cost of importing green beans would decrease if the free

trade area is in place, and we can improve our coffee in an acceptable price to give the

customers the best” Mr. Witoon Sila-On, managing director of Bluecup coffee, added.

However, it would be difficult for the business to compete in the price war, because

AFTA will bring in more competition while Thai labour and coffee cost are still high

when comparing to the neighbours. The AFTA will bring in cheaper coffee with the

76

same quality, and would push Thai coffee to evolve from community grade to premium

grade coffee.

Mr. Meechai Amornpattanakul, chairman of Thai Barista Association and K2

executive said, "The farmers will be directly affected if they don’t improve the produce

quality. This improvement can be carried out easier if the farmers change their point of

view and discipline, because Thailand already have better public utility structure and

supporting institutes such as the Department of Agriculture and The Doi Tung Royal

Project".

AFTA also influence foreign coffee chain to invest because the raw ingredient

import cost is lower. The advantages in quality and international brand awareness will

be an excellent factor to attract foreign and domestic customers. This is another factor to

stress out the importance in improving the quality of Thai coffee to get the consumer’s

trust.

On the other hand, the consumers have to adapt themselves to the changes as

well. The consumers must take interest in where the coffee bean comes from, not just

worry about the caffeine level, because AFTA will allow low quality foreign coffee to

come in. These coffees may be kept wrongly and may contain OTA (Ochratoxin A)

which can cause cancer if consume.

Government policy, help and aid

The government should introduce clear policy to protect the consumers, and this

policy must focus on the safety of the consumers from OTA. For example, set the

limitation of defected coffee beans and contamination percentage in the imported

coffee. An agency should be introduced to inspect the low quality coffee from other

countries. This type of agency will set up the standards for businesses to comply with

and push our development to match with the world standard.

Moreover, the government should support and set up coffee farmer association

to keep the coffee standard, induce cooperation between farmers, and build up the

negotiation power directly to the farmers. “If the government has the fund to set up the

local coffee farmer association and help with the logistic, the farmers will be more effi

77

cient and create better produces. For example, the government can help with the

produce transportation and fuel cost in the northern mountainous areas where a lot of

coffee is grown. These areas are hard to access and have high transportation cost

which the farmers can’t afford, and sometimes the traders push the price down too far.

But with the government help, the farmers can transport their produces to the roasting

facility and increase their income”

Mr. Prawit Jitnarapong, Beantrepreneur and Black Canyon CEO suggested. Ms.

Sumolpin Chotikapookana, marketing and communication director of Starbucks Coffee

(Thailand) also said, “It is vital to see the importance in the farmers and the coffee

farmer community in order to get enough quality produces to suffi ce the consumer’s

demand. Starbucks has the project to support the northern Thai Arabica coffee farmers

under the name Muan Jaii Blend. We buy the produce at the higher than market price,

and some income from Muan Jaii coffee will go back to the farmers” Rather than rolling

out the policy to protect the consumers and supporting the manufacturing structure.

“The government units like Doi Kum and Doi Tung Royal Projects should represent

Thai coffee in a competition to get the foreign interest in our coffee, because

Thai coffees in world stage are, currently, private brands only”, Mr.

Autsawin added. Even though we can’t compete in the world market in the sense of

product quantity because there is not much suitable terrain for coffee plantation, but it is

still important to develop Thai coffee brand. We can push our coffee beans to compete

in the quality coffee market, especially the Arabica coffee beans grown in the northern

part of Thailand.

Mr. Meechai also emphasized that "This is the point that must be changed. The

government must not focus on the quantity of the produce, but focus on the profi t that

will go to the farmers instead. Farmers can produce large quantity of coffee beans and

still make a loss, but farmers can produce fewer coffee beans and make a profi t if they

focus on the quality. When we think about quality, we won’t take quantity into much

consideration, and the price will increase together with the quality"

The government should not consider coffee to be just a normal agricultural

produce because coffee has special characteristics. It blendsin with people lifestyle and

we can use the origin of the coffee to promote marketing like wine, which the origin and

the manufacturedyear are the factors that consumers pay special attention to. This is

78

becausethe coffee that grows in different area and time will offer its own unique

characteristics, unlike fruits where we can only say whichcountry it is from. Hence,

Thai coffee will have its own uniqueness to offer to the market and develop the lasting

coffee industry here if the government is ready to support.

In conclusion, the government needs to have a clear policy to lead the coffee

business, and every department such as the Ministry of Agriculture, Ministry of

Commerce, and Ministry of Industry must work together. The cooperation would ensure

the effi ciency of all processes to develop Thai coffee and the private businesses won’t

have to compete in the market by themselves like they are nowadays.

(Source: Coffee tea & I, Bimonthly Magazine Vol. 14 January – February 2010)

Economy Factors

Thailand’s Economic Projection for 2010

The Ministry of Finance made an upward revision on Thailand’s Economic

Projections for 2010 to 4.5 percent per year, from the previous forecast of 3.5

percent per year, The Ministry of Finance of Thailand announced that the Thai

Economy in 2010 is expected to expand at 4.5 percent, or within a range of 4.0 to

5.0 percent per year, an improvement from the December 2009 forecast of 3.5

percent.

Mr. Satit Rungkasiri, the Director-General of the Fiscal Policy Office

(FPO), gave details on Thailand’s economic projections as of March 2010 that the

upward revision on Thailand’s Economic Projections for 2010 is due to improvements

in export and private consumption sectors. Particularly, the faster-than expected

economic recoveries of major trading partners, especially those in Asian region, has and

will continue to contribute to the high growth in Thai exports of goods and services.

Moreover, domestic spending in 2010 has a tendency to further expand from the low

base last year. Thus the Thai economy is considered more balanced as its expansion is

now driven by both internal and external drivers.

79

Mr. Ekniti Nitithanprapas, the Director of Macroeconomic Policy Bureau

and the Spokesperson of the Ministry of Finance, added that export volume of

goods and services in 2010 is forecasted to grow at 9.7 percent per year, from the

contraction of -12.7 percent per year in 2009, as the economy of Thailand’s major

trading partners continue to recover. Meanwhile, private spending in 2010, especially

private consumption, is expected to show an improving trend, due to higher farm

income following higher agricultural price and better employment situation. Private

consumption is projected to expand at 4.3 percent per year, while private investment is

expected to grow from the low base last year at 8.2 percent per year. For internal

economic stability, headline inflation is projected to rise to 4.0 percent per year (or

within the range of 3.5 - 4.5 percent per year) given higher oil prices and higher prices

of goods as services that use oil as inputs. The conjecture of the cessation of

Government’s measures to alleviate cost of living during the third quarter of the year

would also contribute to higher inflation. For external stability, Thailand is projected to

record a smaller current account surplus in 2010 at 2.4 percent of GDP (or within the

range of 1.9 – 2.9 percent of GDP), as the revival in domestic demand and low base last

year are expected to lead to faster expansion of import value.

The Director-General of FPO concluded that these economic projections

have already taken into account the potential impact from the suspension of investment

projects in Map Ta Phut Industrial Estate area and the ongoing political situation. If the

government could quickly resolve these problems and accelerate the disbursement under

the “Stronger Thailand 2012” program to achieve at least 80 percent of approval budget

framework, the Thai economy would likely to grow at the high case of projection range

at 5.0 percent per year in 2010.

Table 3.2: Major Assumptions and Economic Projections of 2009 and 2010

(As of March 2010)

2009 2010f

(As of

Dec 09)

2010f

(As of Mar 10)

Average Range

Major Assumptions

80

Exogenous Variables

1) Average Economic Growth Rate of

Major Trading Partners (percent y-o-y)

-1.2 3.0 3.7 3.2 - 4.2

2) Dubai Crude Oil Price (U.S. dollar

per Barrel)

61.4 80.0 80.0 75.0 - 85.0

3) Export price in U.S. dollar (percent

y-o-y)

0.3 7.0 8.6 8.0 – 9.0

4) Import price in U.S. dollar (percent

y-o-y)

-2.5 6.8 8.0 7.5 – 8.5

Policy Variables

5) Exchange Rate (Baht per U.S.

dollar)

34.3 33.0 32.5 31.5 – 33.5

6) Repurchase Rate (Policy Rate) at

year-end (percent y-o-y)

1.25 1.50 1.50 1.25 – 1.75

7) Fiscal-Year Pubic Expenditure

(Trillion Baht)

2.47 2.55 2.59 2.55 – 2.63

Projections

1) Economic Growth Rate (percent y-

o-y)

-2.3 3.5 4.5 4.0 – 5.0

2) Real Consumption Growth

(percent y-o-y)

- Real Private Consumption

- Real Public Consumption

-0.1

-1.1

5.8

3.4

3.3

3.9

4.3

4.3

4.2

3.8 – 4.8

3.8 – 4.8

3.7 – 4.7

3) Real Investment Growth (percent y-

o-y)

- Real Private Investment

- Real Public Investment

-9.0

-12.8

2.7

7.8

8.0

7.4

7.8

8.2

6.8

6.8 – 8.8

7.7 – 8.7

6.3 – 7.3

4) Export Volume of Goods and

Services (percent y-o-y)

-12.7 8.0 9.7 9.2 – 10.2

5) Import Volume of Goods and

Services (percent y-o-y)

-21.8 17.4 18.9 18.4 – 19.4

6) Trade Balance (billion U.S. dollar)

- Export Value of Goods in U.S. dollar

(percent y-o-y)

- Import Value of Goods in U.S. dollar

(percent y-o-y)

19.4

-13.4

-24.9

7.8

15.5

27.7

4.8

18.0

31.9

3.8 – 5.8

17.0 – 19.0

30.9 – 32.9

7) Current Account (billion U.S. 20.3 9.6 7.2 6.2 – 8.2

81

dollar)

- Percentage of GDP

7.7

3.3

2.4

1.9 – 2.9

8) Headline Inflation (percent y-o-y)

Core Inflation (percent y-o-y)

-0.9

0.3

3.4

1.5

4.0

1.5

3.5 – 4.5

1.0 – 2.0

9) Unemployment Rate (percentage of

total labor force)

1.5 1.3 1.3 1.0 – 1.5

f = forecast by Fiscal Policy Office, Ministry of Finance, Thailand

Attachment: Thailand’s Economic Projections for 2010

1. Economic Growth

The Thai economy in 2010 is forecasted to grow at 4.5 percent per year (or

within the range of 4.0 – 5.0 percent per year), an improvement from December 2009

projection of 3.5 percent per year. The main positive factors attributing to this growth is

from the stellar recovery of major trading partners’ economy, especially those in Asia

which has a better growth potential than others. This leads to the rebound of growth of

export volume of goods and services being projected at 9.7 percent per year (or within

the range of 9.2 – 10.2). Domestic spending, in addition, accelerates especially private

consumption which is expected to grow at 4.3 percent per year (or within the range of

3.8 – 4.8 percent per year). The positive factors of this recovery are higher farm income

following global agricultural price, better household income from overall economic

recovery, and a drop in unemployment rate to its normal level. Private investment in

2010 is expected to speed up from the low base with low policy interest rate. This

would support private investment to grow further at the rate of 8.2 percent per year (or

within the range of 7.7 – 8.7 percent per year). Furthermore, public spending plays an

important role in supporting the Thai economy to unceasingly grow. To be more

specific, public capital expenditure under the “Stronger Thailand 2012” project would

help public investment grow at the increasing rate of 6.8 percent per year (or within the

range of 6.3 – 7.3 percent per year). Public consumption, on the other hand, is expected

to grow at 4.2 percent per year (or within the range of 3.7 – 4.7 percent per year).

Import volume of goods and services is expected to expedite its growth rate to 18.9

82

percent per year (or within the range of 18.4 – 19.4 percent per year) with the recovery

of domestic spending and more manufacturing of export goods.

2. Economic Stability

Internal economic stability is expected to improve, with headline inflation in

2010 rises to 4.0 percent per year (or within the range of 3.5 – 4.5 percent per year).

This is due to global oil and agriculture prices which are expected to rise following

global economic recovery. Unemployment rate is expected to revert to the normal rate

of 1.3 percent of total labor force (or within the range of 1.0 – 1.5 percent of total labor

force). As for external stability, current account in 2010 is projected to record a smaller

surplus of 7.2 billion US Dollar, or approximately 2.4 percent of GDP (or within the

range of 1.9 – 2.9 percent of GDP) due mainly to the higher growth of import value

relative to export value. Import value is forecasted to grow at 31.9 percent per year (or

within the range of 30.9 – 32.9 percent per year) from the fast domestic spending and

import price in the global market, while export value is projected to expand at 18.0

percent per year (or within the range of 17.0 – 19.0 percent per year, due to major

trading partners’ economic recovery and higher export price.

In conclusion, the Thai economy in 2010 has a tendency for better balanced

recovery, with the positive factors coming from better domestic spending and

better export performance in tandem with faster-than-expected recovery of

trading partners’ economy. Nevertheless, major risk factor that comes into play is

from the suspension of investment projects in Map Ta Phut Industrial Estate area

and the ongoing political peril which could slow down the recovery of private

spending than expected. Public sector needs to accelerate the budget disbursement

and “Stronger Thailand 2012” project to reach their respective goals while private

sector is not yet fully recovered.

(Source: The Ministry of Finance; http://www.mof.go.th, 29 March 2010)

83

Investment Situation in Phuket

At the practical seminar “Investment Promotion for Economic Stimulation” held

by the Ecnomic Investment Center Region 6, Acharin Pattanapanchai, the center’s

deputy secretary general acting for the investment advicer of the center, said that

Phuket’s economic is relied to tourism industry and businesses that support tourism

activities included hotels, hospitals, boat rental, cruises, property, software, and etc. In

2008, Phuket got income from this industry about 87,314 million baht and it bas been

estimates to be increased to 95,000 in the next year. Apart from these, the project called

Phuket ICT R&D Innovation Paradise would attract more investors from world leading

ICT companies to invest here, this would help to generate 40,000 million baht of

income on the island within 2011.

Acharin also concluded that there were 122 investment projects approved in

Phuket. The investment value was 49,575 million baht. Consequently, 20,158 locals

have been hired by those projects. Now , there are 55 of the projects which are under the

process. Most of the project are medium and small project with investment fund under

200 million baht, 72 projects are the investments that help to promote tourism industry

like cruises, ferries, water par and etc. While around 20 project are related with

electronics, software, and agriculture. The rest of them are abalone farms, glove factory,

cold storages and food suppliers. From the total 122 projects, 54 projects are owned by

Thais, 52 projects are the joint venture between Thais and foreigners, and 16 project are

foreigners’ projects.

However, Acharin commented that even the investment situation in Phuket

seems to be good but there are factors that can disturb investment in 2010 on the island

such as economic situation, politics, basic infrastructure and workforce.

(Source: http://www.phuketindex.com. 19 Feb, 2010 at 11:05)

84

Economic Executive Summary at January 2010 of Phuket

Economic Structure of Phuket

Tourism is the main economic structure of Phuket that it considers Gross

Provincial Product (GPP) of Phuket in 2007. The main productions of Phuket are hotels

and restaurants; 38.92 percents, Logistic and Transportation; 14.12 percents,

Wholesalers and Retailers; 10.54 percents, Constructions; 5.15 percents and others;

31.27 percents.

Figure 3.3: Gross Provincial Product (GPP) at January 2010 of Phuket

Gross Provincial Product of Phuket

Hotel and

Restaurant

38.92%

Logistic and

Transportatio

n 14.12%

Wholesaler

and Retailer

10.54%

Construction,

5.15%

Others

31.27 %

Economic perspective of Phuket on January 2010 was slow-down when

compare with last year in the same period. Although tourismindustry indicates growth,

including private consumption and private investment, considering other economic

indicating is slow-down such as government expenditures, industry and etc. In addition

other industry is contraction because there are two factors that hold back economy to

expand:

85

Positive Factors: this factor effect the economic growth of Phuket which is

travel festival because it is the high season, including at beginning period of this month

is New Year Festival so there are more Thai and foreign tourists who visit to celebrate

festival in Phuket. It affect to increase tourist and consumption growth.

Negative Factors: this factor is the threats for economic growth which is the

uncertainty of political and although global economic trend to recovery, we need to

follow up continuously. Oil prices change to increase continuously, result to the

confidence of investors and consumers.

Forecasting to Phuket economic performance in next month will be better

because it is the travel festival, including there is the good news of global economic

situation that it adjusts to be better. In addition there are more governmental

investments and increasing of inflation rate with laying value added taxes so they affect

to economic perspective is better.

Demand Economy (Production): Slow Down

Service and Tourism: growth that it considers to tourist number who travel

through Phuket International Airport and its growth is 33.36 percents. Both domestic

and international flights are increased and the tourists who entry to port of entry is also

grown to 48.17 percents because they are travel festival and New Year Festival.

Agriculture: contraction that it considers to the contraction of rubber quantity

at 51.68 percents, when compare with last year in the same period. Because of it has

more rain at this period so the rubber planters can rubber tap decreasingly and the

rubber price is growth at 98.87 continuously, resulting from decreasing of rubber

quantity and including rubber speculation at agricultural future exchange.

Fishery: contraction that it considers to aquatic animal quantity and the

contract value of aquatic animal between 21.24 and 16.75, when compare with last year

at the same period respectively. Because of non local fishing boats are gradual go back

so the number of fishing boat is decreased.

Industry: slow down that it considers to electrical used quantity in factory

which is growth at 12.75 percents, when compare with last year in the same period

86

respectively. But considering from number of factory and register cost, it will be slow

down at 0.92 percents respectively.

Supply Economy (Expense): Growth

Private Consumption: growth that it considers from laying value added taxes

increasingly, when compare with last year in the same period at 14.87 percents. In

addition quantity of electrical used from household is adjusted to be better at 12.92

percents and including car and motorcycle registrations adjust to be better respectively.

Investment: growth, considering from cost added of entrepreneurs cost and

value of new cost. Number of entrepreneurs who come to register growth at 45.72,

38.36 and 24.24, when compare with last year in the same period respectively and

entrepreneur cost of close down is also contraction.

Government Expenditure: contraction, expenditure amount of government

fund contract at 44.93, when compare with last year in the same time. Government

Expenditure of investments are contract, although expenditures are growth, there are

few growth when comparing with other.

Financial Economy: Slow Down

Circulating fund situation in Phuket consider from quantity of revolving credit

and deposit in province which are:

1. Credit: slow down, total credit amount of commercial bank in Phuket at the

31 of January 2010 is slow down to 4.11 percents, when compare with last

year at the same period and the MLR credit interest rate is 5.85 – 6.25

2. Deposit: contract, quantity of revolving deposit of commercial bank at

January in Phuket is contract to 2.4, when compare with last year at the same

period and the interest rate of deposit is 0.5 percents.

Economic Stability: Slow Down

87

Inflation: slow down, considering from index price of consumer in Phuket is

slow down to 2.6 percents, when compare with last year in the same period but

comparing with last month that it show growth because it was affected from foods and

beverages, including high improvement of others which are not foods and beverages.

Index price of supplier in this month show that is growth to 11.5 percents, including

comparing with last month is also growth.

Employment: growth, considering from number of employment is increase and

beneficiary of Social Security is growth to 5.84 percents and 3.45 percents from last

year at the same period, including layoff number is also contract to 13.52 percents.

During the economic depression and fragile political stability of 2009, all businesses

suffered setbacks and many jobs were lost, even the coffee business. The business

growth was quite small when compared to the past 5 years. This could clearly be seen

from the smaller number of orders from hotels, restaurants, and food courts, plus the

regular customers were more conscious about their spending and most of them started to

reduce their coffee consumption. The businesses had to adjust their marketing strategies

to handle the situation and attract more customers. The strategies like membership and

promotions make the customers feel that their cup of coffee are more valuable, thus,

more enjoyable. After all, what they might need is a cup of excellent coffee as the

reward during the hard time. Even though there are some setbacks in Thai coffee

business, it is one of the businesses that are moving forward. It helps people taste

more variety of coffee and makes people realize about what they choose to drink. The

western style coffee like Espresso, Latte, Cappuccino, and coffee art is gaining its

popularity in Thailand, and cafés are being a part of city life as new café pops up every

day. These cafés become the third home, other than the offi ce and condo, for city

people, and push the coffee business this far, so it is interesting to see where this high

potential business will go on.

A factor that may cause this lack in supply may be from the high coffee produce

that flooded the market and caused the drop in coffee price a couple of years ago. This

price drop infl uenced the farmers to turn to other plants, and the government policy to

88

reduced coffee plantation in southern Thailand to produce more profi table plantssuch as

palm and rubber tree.

Importing high volume of coffee from oversea slows the development of Thai

coffee and makes Thai coffee more expensive. However, we still have to import the

oversea coffee because we have to consider the domestic demands as the main factor.

Mr. Weera Somboonwejchakarn, the president of VPP Progressive Ltd., and the

owner of Café D’Oro said, “There is a small limitation in Thai coffee production that

makes the world market not interested in it. We used to export 5% of total world coffee

10 years ago, but the produce in southern Thailand dropped, so we have to import

because the domestic supply doesn’t suffi ce the demand. And I don’t think there is

enough motivation for Thai coffee to compete in the world market.”

Rather than the production problem, Thai coffee also faces with the challenge in

the development of manufacturing processes. The quality of the coffee itself is good but

it lacks the production control system for planting the coffee trees, keeping the product

quality standard (GAT), pushing organic farming, to adding value to the product.

Therefore, it is important to make farmers realize that produce standard is more

important than the sale made.

Thai Coffee Market Direction in 2010

Despite all the setbacks and challenges, most of the entrepreneur believes that

this year the coffee business will grow more than last year. There are some indications

that the worst of the economic crisis had passed. Some companies in the auto industry

and property industry are bouncing back and paid out bonuses at the end of last year,

so the food industry is expected to catch on to the recovery as well. “I believe

that all the opportunities for coffee business to grow are still open. Thailand has good

produce and manufacturing processes, plus our café management is as good as the

foreign coffee chains. The investment from the foreign chains would not scare us. If we

have strong principle, we can keep our customers and lead Thai coffee businesses to

grow”, Mr. Weeradej stated. Ms. Parichart commented that, “The competition this year

is expected to rise with the expansion in some segments of the market like the instant

89

coffee and coffee for health conscious consumers. This causes premium coffee business

to concentrate more in marketing, and find new strategies to effectively reach our target

customers and increase the market share”.

This growth expectation influence the coffee chains to plan their expansion and

started the location war, especially in the petrol station where the cost is lower than

shopping mall and the café can open for 24 hours. The petrol stations in focus are the

ones on main roads to reach large number of customers. “The shopping malls are

slowing down their expansion so Black Canyon turns to petrol stations, and now has

more than 40 petrol station cafes. These cafés attract customers who don’t like

shopping malls to come and try new coffee, which is the strategy to give the target

market the easier way to get to our coffee”, Mr. Prawit added. Beside the plan to open

new cafés, many coffee chains plan to expand their target customers to attract the 18-25

years old customers. Previously, the only target customers are the working adults, but

now the business sees the potential in the young adults as their lifestyles involve coffee

every day. For instance, they may want a morning coffee before class, or a cup of coffee

at night to keep them up and study longer. Coffee chain like Bluecup changes its logo

and packages to look more contemporary, while Café D’Oro changes the café

decorations and setup trips and photo activities to get the new target customers

involvement as the strategy for attracting the new customers. The overall of Thai coffee

market in this year seems to develop especially in the premium segment, despite the

large instant coffee segment value which is double the premium market value, but

doesn’t gain much growth. The growth in premium segment would be the result of the

consumer behavior that tends quality coffee and western style coffee, plus factors that

will push Thai coffee to be premium product.

Mr. Witoon said “Most of the cafés use roasted ground coffee beans as they are,

obviously, better than instant coffee, so it is a growing market. It is up to Thai people

how much they are willing to spend on a cup of coffee. There are many grades of coffee

to choose from and the consumers are starting to improve their knowledge about coffee

and separate the taste”

90

Important Adjustment in Thai Coffee

There will be many factors that affect Thai coffee market in 2010 so we need to

adjust to these changes, “We can focus on the superior freshness over imported coffee

because imported coffee needs around 45 days to be shipped here and have the “best

before” age of 2 years. In contrast, Thai coffee is transported straight from northern

Thailand, measure the m oistness, and roast. The whole process takes about 25 days at

Banrie Coffee, so the difference in freshness is a lot and fresher coffee means more

aroma and better taste” , Mr. Autsawin explained.

In addition to the freshness advantage, Thai cafés can adjust to consumer’s taste

and trend quicker than the foreign coffee chains which need to refer to the policy from

oversea headquarter. For example, we can observe the changes in consumer behavior or

we can decorate the café to suit the target customers. If we use these advantages

together with market strategies, it would not be diffi cult for Thai market to compete in

the world stage. Mr. Meechai commented that, “Thai coffee has the potential to present

itself as quality coffee to the world. We only need to add marketing and create the

brand, because Thailand is well-known for its services. We can compete in the world

with our smiles and fresh ingredients, or sell Thai culture together with the coffee”

Ms. Sumolpin expressed Starbucks’ view as, “Thai coffee market is very competitive

and it is important for the customers to have faith in our brand. The customers now are

more careful and smarter at getting the most for their money. Although we have the

advantage on brand awareness, but if we don’t provide good product and service for

your money, then we fail to respond to your need”

These are some anticipations from important figures in Thai coffee business, and

only time can tell if the business can go in the expected direction. Nevertheless, Thai

coffee had been growing all these years and the Coffee T&I team thinks that there are

many opportunities for Thai coffee to develop and Thai cafés to grow. We can see this

in big cities where the existing cafés expanded and new cafés are opening. This is a

clear sign telling us that Thai coffee market is moving forward and will not stop

growing.

(Source: Coffee tea & I, Bimonthly Magazine Vol. 14 January – February 2010)

91

Socio-cultural and Environment Factors

Climate

Roughly on the same latitude as Central America, Phuket’s climate is a lot easier

going than say, Costa Rica’s. The average temperature is 28 degrees Celsius and varies

from 22 degrees to 35 degrees depending on the time of year. One thing you can depend

on, however, is that it’s always humid on this island. From November to April the skies

are generally clear and a fresh northeasterly breeze sweeps through the region, making

yachting, scuba diving and a host of other water sports instantly accessible. From May

until October Phuket is a lot wetter, due to westerly monsoons, but it doesn’t rain all

day every day. For this reason, Phuket’s rainy season can sometimes be a misnomer.

There is a mini-summer in June/July when the island is perhaps at its most idyllic with

quiet beaches and glorious weather for three or more weeks.

Geography

A central mountain range forms the backbone of the island. The highest point is

529 metres. Much of the rest of the island is given over to rubber and pineapple

plantations. The West Coast is studded with truly beautiful beaches from where you can

witness spectacular sunsets whereas prawn farms, mangrove forests and yachting

facilities dominate the East side of the island. If there is one word that has been used to

describe Phuket it is "Verdant". The island positively bursts with green plants, crops,

trees and shrubbery. There is the Khao Phra Taew National Park in the northwest of the

island where wild animals live in their natural habitat and Phuket is no more than two

hours away from some of the most unspoiled jungle in Asia: at Khao Sok National Park.

32 smaller islands - almost all easily accessible by boat - surround Phuket, affording a

rich choice of day trips and scuba/snorkeling sites.

92

History

Since early times Phuket has been a melting pot of races and ethnic beliefs. The

early populations were made up of hunters and gatherers. When trade routes opened and

people began to travel more freely the island hosted a multitude of nationalities. Sub

continental Indians, Arabs, Malay and Mokken sea nomads all arrived to make their

cultural mark but with the advent of tin mining in the 18th century the demography of

the island changed radically. Hokkien Chinese migrants from Penang, seeking

employment in the tin industry, arrived in large numbers and subsequently intermarried

with locals, adding a persuasive Chinese hue to the multi ethnic mix on the island. At

this point Phuket Town became the island’s capital and centre of administration,

superseding Thalang. With the recent decline of the tin industry many mines were

abandoned, leaving ugly scars and craters on the landscape. Happily, many of these

eyesores have been converted and assimilated into golf courses and hotel grounds. The

result is quite spectacular and a triumph for local environmentalists. In the early

eighties, tourism replaced tin mining and rubber as the island’s major industry.

For historians, the best place to see architectural evidence of Phuket’s 18th and 19th

century melting pot and financial boom is Phuket Town itself, with its Sino-Portugese

style buildings. Whole streets of this mode of architecture exist downtown and exotic

rubber and tin-financed mansions are to be found ensconced in the rapidly growing

suburbs of this sprawling provincial capital. Phuket Town may not be the prettiest sight

but it’s certainly the place to check out the recent history of this island.

Religion

Because of the proximity of Phuket to Malaysia, there is a greater percentage of

Muslims on the island than in central or northern Thailand. 35% of Phuket’s population

is Muslim, compared to about 5% nationwide. Buddhism, however, is the main religion

on Phuket although there are a higher number of mosques than Buddhist wats or

temples on the island: Some 38 to 37, respectively. Visitors are encouraged to dress

politely when viewing holy places in Thailand. Despite the heat, arms and - whenever

possible - legs should be covered. Shoes must be removed when entering temples.

93

Culture

Thais are proud of their rich culture, and rightly so. It’s a mixture of easy going

Buddhism with strong roots in familial obligations yet is never imposing to the outsider.

This is one of the reasons why Thailand is so attractive to foreigners. Thais, you’ll soon

notice, are easy going people. One of the central beliefs in Thai culture is the

importance in having fun: Sanuk. No wonder then that Thailand has long been called

"The Land of Smiles." Tellingly, one of the worst comments one could possibly make

about a work mate, a boss or anyone for that matter in Thailand is: "He’s such a serious

person." A smile, therefore, goes a long way in this country.

Thais have different taboos from the west. For example: Visitors should not

touch Thai people’s heads, it being the highest part of the body. Contrariwise the feet,

being the lowest part, are not to be raised above, or pointed at objects or people. Open

anger and extreme emotion is also frowned upon. A favourite Thai expression in times

of stress is: "Jai yen, jai yen." Meaning: "Keep a cool head/heart - don’t lose face by

losing your temper." Elders should always be treated with extreme respect. The wai – a

closed palm greeting should be used when greeting elder people or anyone in a position

of authority. Simply close palms, prayer-like and place them, fingers-upward, under

your chin. A slight bow at the same time will do wonders. Do not wai people of a lower

social bracket than yourself. It will only confuse and muddle things. If a waitress, a

hotel clerk or a child wais to you, simply smile and nod back. Despite the complexity of

correct social behaviour in Thailand the visitor is readily forgiven for his/her gaffes. It’s

all part of that famous Thai hopitality.

(Source: Kata Karon Hotel Association, http://www.katakaron.com, 27 Apr 2010)

94

1217303 1190032

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

1100000

1200000

1300000

2008 2009

Figure 3.4: Amount of Foreign Tourists 2008 – 2009 in Phuket

The number of tourists is the important factors for our business because our

main target group is foreign tourists. In year 2008 the total number of foreign tourists is

1,217,503 and there are 1,190,032 tourists in 2009, we will see the number of tourists is

decreased to 2.26%. While there are 8,389 flights to Phuket in 2008 and there are 8,219

flights in 2009 which the flight in year 2009 is decreased to 2.03%. They do not affect

our business much because the trend of tourism in 2010 is in high level because there

are too many foreign tourists come to visit phuket and the number of reservation for

accommodations are 79.82%.

(Source: Phuket Provincial Governor's Office, 14 Marh 2010)

Phuket Festivals & Events

The number of reservation for accommodations are high because there are many

festivals and event in Phuket for each years which is very interesting.

Phuket is one of the most popular tourist destinations in Thailand. It is also the

largest island in the country. Various festivals and events in Phuket are organized

throughout the year. Some festivals are so popular that they have become tourist

95

attractions in Phuket. The Phuket festivals highlight the multi religious and multi

cultural society of the island. The list below will give you a fair idea about the number

and nature of Phuket festivals and events.

Chinese New Year traditions

Celebrate New Year's Day of Chinese New, the New Year Chinese which is match on

the 1st of China's first month or the 2nd, 3rd on Lunar, rituals have all 3 days.

• The first day is 29th of Month 12 of Chinese; there are food preparation and

offering it for the next day. Make a spirit offering Pay respect to god.

• Day two is 30th of months 12 of China, there is God offering 2 period, the

morning pay homage to the god, and fatherhood on afternoon. Then will be dining

together in families and giving hongbao to children.

• The third day is the 1st day of 1st month 1 of the Chinese. People will dress a

new set for a fortune to pay homage at their shrine. Today is considered a day trip,

may visit other local relatives. It is no working, no say anything obscene or no any

admonishment or rebuke each other.

Thank God tradition

To welcome and thanks God that help and protect the human. It begins after

midnight on the 8th 0f March 8 of Chinese, or the starting time on the 9th of the 1st

months. The important thing are 2 sugarcane, both sweet and meat food.

Chinese tradition festival

A month, Chinese belief that Hell are considered to permit the wraith come out

to get the fathers of each family's the annual merit which be paying homage on the 15th

of March 7th, The Chinese will has a “PaiPou” or decorated offering wraith and spirit

96

with a dessert, and carved fruits as a animals, also with “Hung Guu” or dessert turtle red

powder made from glutinous rice, with soy shake or made from wheat flour without

nucleus, symbol to long live.

• The offering locations as following.

• At Kathu Shrine on the lunar 17th of Month 6th of Chinese.

• At Talaad Yai Area on the lunar 13th of Month 7th of Chinese

• At Talaad Nuea Shrine on the lunar 16th of Month 7th of Chinese

• At local vegetable market on the lunar 17th-18th of Month 7th of Chinese

• At Baan AoKea (Takua-Pa Rd) on the lunar 21st of Month 7th of Chinese

• At ChaoPo TorKong Shrine (Baan Bang Neow) on the lunar 19th-30th of Month

7th of Chinese.

The Po-Tor

The Phuket Chinese Festival will have the ceremony on China's months 7th or

on Thai's months 9 by offering the fathers and Holy Spirit with a sacrifice made with

flour waffle is a large like a small / big red paint. The Chinese believe that turtle is so

old stand by begging turtles to renew themselves and thus holds great merit.

Moon sacrifice tradition

It pays respect to god with the Waiprajan dessert called “Tong Chew Pear” and

also with snazzy dessert on the Lunar 15th of Months 8th of Chinese.

Vegetarian traditions

Set ourselve on precept, pay the hearts clean, no meat consumption for 9 days

which starting on the Lunar 1st of the Months 9, every night of March 9 or aroung

September to October. It is the tradition that Chinese residents in Phuket to take a long

97

time since photochemical protest in 2368 B.E. There will be many such rituals

ceremony, invite God to fire walking, exorcise, and warriors farewell etc. This festival

is one of the most event which has been featured in Faith and sequin both Thai and

foreigners.

Leeway Traditions

By group of fishermen at Rawai Beach & Baan Sapam, there will be a Leeway

on Lunar 13th of month 6th. For the fishermen at Koh Sirae start on Lunar 14th of

month 6th, and fishermen at LeamKa (northern Phuket) will start on Lunar 15th of

month 6th. For the Lunar Month of 11th there will ne the tradition like Loy Krating Day

in Thai's tradition as ceremony exorcise with building boats from wood ,barber, nails, a

wood doll, put bad things into the boat and then to float to bring the sad misfortune that

troubles away with the sea. And then dance around the ship which song is known

“Rong-ngeng”.

Thai customs festival (months 10th)

A Thai belief that hell is let wraith and that spirit come out to get the fathers of

each family's the annual merit which be paying homage, review the merits and measures

for the many kind of dessert : Laa, Tien, Tontai, Tom ect. Time match on back lunar 8th

of Month 10th and also again on back lunar 15th of Month 10th.

The Ceremony Thao Thep Kasatri and Thao Sri Sunthorn.

It is the annual set on 13th March to celebrate of two heroine, there will be any

activities to remember the bravery of this two heroine that have protected Thalang City

from Enemy at that time.

98

The ShengMeng Traditions (Shen tradition of April)

It is a major grouping of relatives to worship the fatherhood, it is annual on 5th

of April, but the paying respect will start on date before 5th of April for 10 days, and

again after 5th of April for 10 days.

Customs release turtles

To make merit and invite Monk to prayer, then release turtles into the sea at

NaiYang Beach Natural Park. It is anual on 13th of April (SongKran Day).

Seafood Festival

In May every year, there will be the Seafood Festival to promote The Phuket

SeaFood to another, persuade the tourist to visit Phuket in rainy season. There will be a

lot of activities, the parade contest, The SeaFood Shops, the each Local Food

demonstrate, and the cultural shows from each different local.

Laguna Phuket Triathlon

It is on October of eavery Day.

Walking turtles Festival.

It observs the turtle to spawn on the beach at dawn. It is between October to

February on Turtles spawn season, there will be big turtle whic is difficult to find now.

99

Phuket Tourism Festival to open the season

It is annual on 1st of November at Patong Beach to welcome tourist. It also

show the harmony between the travel agency and governor and citizen. There are many

activities such as giving food offerings to a Buddhist monk on morning, Water sports,

beauty contest from tourist etc.

Phuket King's Cup Regatta

5st December of every year, there will be the Royal Cup sailing competition

which it has started since 2530 B.E, to Honor of His Majesty, the King's 60 year

anniversary, the continue till now as every year. There are many inter sailboat to join

competition the King's Cup.

(Source: Phuket Provincial Governor's Office, 28 Apr 2010)

Phuket Tourism

This is very important factors that influence our business forward because the

main target group of our business is tourists. A tropical paradise, Phuket has a bit of

everything that promises to make a holiday to this beautiful province memorable for the

whole life. Phuket tourism is not just about beaches, though of course the beaches of

Phuket rank highest in the tourist attractions of Phuket. A trip to Phuket can reveal

several other attractive spots of the province to the tourists. These include dense tropical

forests which provide a safe haven to several species of flora and fauna. Among the

wild animals, you might have an occasional glimpse of rare species of reptiles. If you

have a passion for wild life then get ready to explore the forests of Phuket and

rediscover nature in her splendid form. Phuket has much to offer, from mangrove

forests to brilliant sunset as you visit Laem Phromthep, the island's southernmost point.

Like the rest of Thailand, Phuket also is famous for preserving her rich historical

and cultural heritage. While on a trip to Phuket make sure you do not miss out on the

100

various historical and cultural attractions of Phuket. If you have interest in history or

archaeology, visit Phuket to experience the brilliance of old Sino-Portuguese

architecture. Discover the many facets of Phuket tourism with a trip to this island. The

mixed cultural charm would surely inject the feel of pleasure into your mind.

Low – High season is affected our business because the number of tourists

depend on high and low seasons. There are 3 seasons for travel in Phuket which are:

Low Season is 01 May to 31 October in each year which there are few of

tourists .

High Season is 1 November to 15 December and 16 January to 30 April in each

year which there are many of tourists so products and services are very expensive more

low season.

Peak Season or Peak Period is 16 December to 15 January in each year which

there are the most tourists in Phuket because they come to celebrate the Christmas

festival, Light up Phuket and New Year festival so almost of accommodation, restaurant

and flight reservation will be full. So during peak periods there are the most tourist

amount in Phuket.

(Source: http://www.asiarooms.com, 27 Apr 2010)

Phuket's Record High Sets Pace for Global Upturn

A RECORD number of passengers passed through Phuket airport in January,

providing the first real evidence that the boom on the holiday island is back.

Phuket, demonstrating its remarkable ability to recover from both natural and man-

made disasters, is now a pacesetter for renewal in the global tourism industry.

The total of 749,518 arrivals and departures in January is an increase of a

remarkable 33.23 percent on the figure for the same month in 2009. Not only that, it's

101

well above the 635,060 for January 2008, when Phuket hummed along in the middle of

a then-record high season.

At peak times lately, with multiple flights arriving or departing, Phuket airport

has seemed to be bursting at the seams, with queues of passengers sometimes extending

back 50 metres from the main terminal entrance scanner. A massive increase in the

number of flights appears the prime force driving the resurgence of the island as a

holiday destination for international and domestic travellers alike. January's total of

4524 flights represented a 30.49 percent increase on the same period in the previous

year. That figure also even soars well above the 4155 flights recorded in January 2008,

before the economic dip set in. Biggest increase of all came among international

passengers, up by 40.60 percent on January 2009.

While Thailand suffered heavy losses to tourist numbers early last year after the

December 2008 occupation and blockade at Suvarnabhumi airport, Phuket's numbers

dropped, but not to disastrous levels. Comparisons with the record January of 2008

establish that the 2010 bounce is genuine, not just a statistical aberration based on a low

January 2009 figure. The turnaround is backed by reports from Phuket resort managers,

who have been pleasantly surprised at the speed and the strength of Phuket's recovery.

Ashleigh Brayshaw, Director of Marketing Communications at Sheraton Grande

Laguna, said: ''It has been a great start to the year. The meetings segment is also very

strong.'' She said figures were healthy across all the brands at the large Laguna Phuket

destination resort, usually a bellwether for the island's top-end market. The surge back

to prominence, similar in many ways to the island's quick recovery after the 2004

tsunami, seems to be a product of several factors: Substantial discounting and special

packages at resorts has made the island top value again for tourists. Direct flights to

Phuket are up, to the point where the airport no longer has space for additional

overnight airline parking. Charter flights have increased rapidly, with the Tourism

Authority of Thailand scoring successes on road trip presentations, especially in China.

Budget airlines, led by AirAsia creating an island hub and Jetstar out of Australia, have

seized on Phuket's geographical advantage and rapidly opened new region-wide routes.

Pundits still say it will be early 2011 before Asia's tourism market fully recovers

from the worldwide economic downturn, yet Phuket suddenly appears to be the tourism

industry's upturn pathfinder. Even if people are still paying less to get to Phuket and

102

spending on average about 20 percent less when they get here, all indications are that

Phuket is literally off to a flying start to 2010. In the full year 2009, Phuket

international arrivals and departures were down by 4.91 percent, with the domestic side

compensating a little by increasing 5.04 percent. Goods being flown in also reflect the

massive 2010 rebound, increasing year on year for January by 52.83 percent, with

international cargo flights more than doubling. Thailand's quirky politics, though,

remain unpredictable. Yet it appears travellers are prepared to take the country's

increasingly settled appearance since the Asean red-shirt resort invasion of April 2009

at face value, as a sign that it's time to return. The figures for the period from October

2009 to January 2010 also reflect a pronounced return to normal, with the number of

arrivals and departures rising to 2,436,570 in that period, up by 27.48 percent on the

previous comparable period. January's surge in international traffic has been

exceptional, but in the October-January period, domestic travel to Phuket has also

strongly improved by 35.15 percent.

Resort managers predict that February will be just as potent, with the Chinese

New Year-Valentine's Day peak around February 14 likely to bring figures to rival the

2009 Christmas-New Year. Phuket Bike Week in April, running into the Thai New Year

at Songkran, is also expected to close out a high season in which Phuket tourism

impressively turned around its fortunes.

(Source: Phuket Wan By Alan Morison, http://phuketwan.com, Saturday, February 6,

2010)

Natural Disaster

Tsunami is the natural environment factor because it hit Southeast Asia on

December 26, 2004. It was the deadliest disaster in modern history killing over 240,000

people. A tsunami is a series of ocean waves. They are one of the biggest disasters in

the world. Phuket also was affected from Tsunami in 2004. Our business can be

affected from Tsunami because it is located near the beach.

103

Technology Factors

Nowadays technology has become one of the most important tools in

manufacturing organizations. Controlling the activities and information flow will lead

manufacturing organizations to operate efficiently and better manage their resources.

Coffee industry needs new technology for process of production and coffee store

also need the technology for support the business such as coffee brewing machine,

computer, Wi-Fi and etcs.

Technology Equipments

Coffee Brewing Machine: La Marzocco’s GB/5 AV- 3 Group

Figure 3.5: Coffee Brewing Machine

La Marzocco’s is the most famous and the best quality of coffee brewing machine

brand in Italy. Most of barista around the world select this brand because the World

Barista Championship (WBC) use machine of this brand in competition and Starbuck

coffee and Gloria Jean’s also use machine of this brand to serve the high quality coffee

cup. Setting the bar higher, Featuring PID temperature controls, solid-state relays, pre-

heating system and adjustable steam flow. The GB/5 takes temperature stability to a

new level, electronically monitoring all machine functions. Saturated brewing groups

and dual boiler-technology inside. Ideal for the most classic & elegant cafés.

La Marzocco's dual boiler technology ensures good steam power whilst

maintaining optimal brewing temperatures, Espresso coffee machines have two main

104

functions: brewing of espresso and steam production. A large draw on power to produce

steam can jeopardise the thermal stability in single-boiler machines. This can mean over

or under-extracted coffee. La Marzocco has a dedicated boiler for each of these

functions: therefore it uses two boilers, completely separate one from the other, so that

they can both be working at the same time without interfering with each other. The

coffee boiler contains a large quantity of water at an optimal temperature, kept

constantly under control by a precision thermostat which ensures a maximum

temperature variation between one coffee and the next of less than ± 1° C, while other

manufacturers' machines with a single boiler rely on less suitable pressure gauges to

regulate even the most important parameter, the temperature.

Finally, among the La Marzocco machines, those with the PID system ensure a

temperature variation between one coffee and the next of even less than ± 0.5° C, an

out-and-out record in the field. La Marzocco's steam boiler is also by far more efficient

given that it does not contain heat exchangers. The steam pressure can, in fact, be

adjusted at whatever level required, without detracting from the coffee brewing

temperature, thus enabling the perfect preparation of milk-based drinks.

(Source: La Marzocco S.r.l.; http://www.lamarzocco.com, 2010)

105

Coffee Grinder

Figure 3.6: Compak K6 Grinder Professional Barista (WBC)

Compak K6 Grinder, attractive coffee grinder for heavy duty use. Grinds and

dispenses approx 7g of espresso coffee per dispense. The grinder built for the

professional barista who demands a perfect grind with performance and agility.

Excellent feature,production capacity and price ratio. Has a continuos micrometrical

regulation system and an aluminium dispenser with a buit-in coffee press. In addition it

was used by WBC for Thailand Barista Champion Competition in 2008.

(Source: http://www.compak.es, 03 May 2010)

106

Blender

Figure 3.7: Blendtec Smoother Blender

The Legendary Performer, for years the Smoother has set the standard in

blending frozen drinks. The Smoother is still the choice of many of the world's leading

beverage retailers. No blending chore is too tough for the Smoother. The Smoother was

designed with you in mind. There is no need to purchase a different machine if you

change the layout of your counter. The Smoother combines power with intelligence and

beauty. In addition Starbuck also use this brand so it is very popular in Thailand.

(Source: ALLIED METALS (THAILAND) CO., LTD. http://www.alliedmetals.com, 03

May 2010)

Point - OF – Sales System (POS)

If you're a veteran retailer, you know the problem: Your inventory doesn't match

your tallies. Sales are going unrecorded. Your staff is spending far too much time

chasing mistakes instead of tending to customers. Something is seriously wrong, and

107

you're just not sure what the problem is. These and other snafus suggest that it's time

that your business did away with its cash registers and stepped up to a point-of-sale

(POS) system. A POS system is a computer software and hardware network that records

sales as they're occurring; it solves a variety of operational and record-keeping

headaches.

In a coffee shop, like any business establishment, it's important to keep records

of all transactions so we need to find the POS system for our coffee shop. POS Systems

need to keep track of our inventory and ingredients, analyze profit and loss margins,

determine our top-selling items, and record employee hours and wages. With this

Coffee Point of Sale System we can easily sell and redeem gift cards and implement

loyalty plans to attract new customers and to turn existing customers into regulars.

Figure 3.8: HP ap5000 All-in-One POS System

The POS all-in-one system is designed as a touch-enabled point-of-sale one that

minimizes the workspace and enhances promotional activities. The company has also

revealed that its TouchSmart hardware is powering Escalate Retail's Interactive Store

Kiosk. “Addressing customer preferences, HP has expanded its retail store portfolio

with an all-in-one solution that provides increased flexibility and results for a variety of

business market segments,” Ray Carlin, vice president, Retail Store Solutions Global

Business Unit, HP, said. “As the retail market recovers from economic hard times, HP

has developed a broad retail product portfolio to best meet changing customer needs.”

The HP ap5000 enables retailers to create a comprehensive POS hardware solution

108

through a self-contained combination of products. The system itself combines the

processing power of its CPU with a touch-enabled display and a magnetic stripe reader.

The screen itself can be either a two-line customer display or a 10.4-inch LCD.

Functionality is not the only asset of this system, however. The HP ap5000 only needs

one power outlet and little desk space, making it excellent for customer-facing areas

through a reduced cable clutter and overall sleek design.

(Source: http://welcome.hp.com, 03 May 2010)

Figure 3.9: Coffee Shop POS Systems and Coffee Shop Software

(Source: http://posnation.com, 03 May 2010)

109

Wi-Fi Hotspot

Figure 3.10: Wi-Fi Service

(Source Triple T Internet Company Limited: http://support.3bb.co.th or

http://www.3bb.co.th, 03 May 2010)

Internet Service

Figure 3.11: HP Pavilion P6383L

• Intel® Core™ 2 Quad processor Q9300

• 2.5 GHz, 6MB L2 Cache, 1333MHz FSB,

EM64T, Execute Disable Bit, EIST"

• Intel® G41 Express Chipset, 750 GB 3G SATA

hard drive at 7200RPM,

110

• DVD±RW/±R Super multiDrive with Lightscribe Technology, Double Layer

(8.5GB)

• 16X DVD±RW/±R Drive, 4GB RAM DDR3 up to 4GB with 1066MHz FSB

RAM"

• Integrated Intel High Definition Audio, 5.1 Surround Sound Ready

• nVidia GeForce GT220 PCI-Express Graphics card 1GB dedicated allocated by

windows 7 up to 2303MB with HDMI and DVI capabilities

• Integrated 10/100 Base-T Ethernet, 15 in 1 media reader

• 6 USB 2.0 Port (2 Front 4 Rear)

• 1 PCI Express(x16 ) ,2 PCI Express(x1) and 1 PCI

• HP Deluxe Multimedia keyboard, Optical Scrolling Mouse

• FreeDOS, PC Doctor program preloaded

• 1-year limited on-site warranty

• HP Pavilion 20" LCD with speaker

(Source: www.pantipcity.com, 03 May 2010)

3.1.2 Competition Analysis (3C Analysis)

Competitor Analysis

Because of OKey Coffee is located at Karon Beach and targeting the tourists

who are visited there so the competitor analysis is analyzing the coffee entrepreneurs

which are both direct and indirect competitors in Karon Beach. For the premium coffee

store business, it has very low competition. There is only one which is the direct

competitors in the market. Almost of coffee products can find in Seven-Elevens,

Minimarts and restaurants which are instant coffee; plastic packages and instant canned

coffee; can and bottle package so it does not fresh good quality of coffee and there are

not variety of products for the customers who visit the beach.

111

Direct Competitors in Karon Beach

Figure 3.12: Andaman Coffee Co. Logo

Company Name: Andaman Coffee Company Limited

Branch: 3 Branches in Phuket

Address Branch 3: 210/4 Karon Road, Karon, Muang, Phuket 83100 / Tel: (+66 76)

286-512

Email Address: http://www.andamancoffee.com

112

Products & Services

Figure 3.13: Products and Service of Andaman Coffee Co.

Hot Beverage Iced Beverage

Blended Tea & Juice

113

114

Ice-cream

115

Bakery & Beverage

116

Sandwich & Waffle

117

Internet

(Source: Andaman Coffee Co. Branch 3, 210/4 Karon Road, Karon, Muang, Phuket

83100, 03 May 2010)

Andaman Coffee Co. is the strong competitor in the market because there are 3

branches in Phuket which the branch one and two are located on Kata beach; the beach

next to Karon beach and the branch three is located on Karon which is our competitor so

they can attract the customers to buy their products because this brand name is well

know in the this area. They serve their products and service to customers who have

more purchasing power. They seek out the Arabica coffee beans that the products of

Andaman Coffee Co. are good quality. There are main menu of coffee such as Espresso,

cappuccino, latte and etc and they also have their own menu but there are not much.

They are agreeable from customer even though it is not a big brand, it does not have a

big fame all over our country, but it is well known for tourists there. According to

Karon beach, it may have less choice for the customers because there is only one

premium coffee store there. Andaman coffee store that is similar to Starbucks, but does

not quite have the same touch. It also provides internet café and printing to customers.

They always provide a comprehensive service to the customer satisfactions. The

118

products are not much variety. The package of this store is present with their logo on the

packages such as coffee plastic glass and toothpick set.

Prices

The Andaman Coffee products and service are all set in western prices, so it's

not cheap because the premium coffee market in Karon Beach is dominated by them

and almost of their customers are foreigners. The prices also were increased by added

land value because it is in front of the beach so the customers pay higher prices due to

the lack of competition. Especially internet café price are not attractive the customers

that they charge only high price without concern with the customers who play for long

times.

The price ranks of products and service:

• Hot Beverage is between 55 – 75 baths

• Iced Beverage is between 60 – 95 baths (Only soda is 40 baths)

• Blended is between 95 – 120 baths

• Tea is between 50 – 95 baths

• Ice cream: 1 scope = 60/ 2 scopes = 110/ 3 scopes = 165/

4 scopes = 220/ 5 scopes = 275

** The customer can get discount when order more scopes

• Bakery is between 55 – 105 baths

• Sandwich and Waffle are between 95 -120 baths

• Internet is 120 baths for 1 hour/ Printing is 25 baths for 1 sheet

119

Place

Figure 3.14: Andaman Coffee Co. Plece

120

(Source: Andaman Coffee Co. Branch 3, 210/4 Karon Road, Karon, Muang, Phuket

83100, 03 May 2010)

The Andaman Coffee Co. is dominated niche market at Karon beach. It open

10.00 AM – 9.30 PM and this store is smaller than branch one and two but this store is

located in front of the beach which is the tourism place so the customers can see and

convenience but it is not located in the crowded place because the crowded place of

Karon beach is in Karon Traffic Circle. It is opposite our shop that it is on the way to

Kata beach but our shop is on the way to Patong beach and it is in Karon Traffic Circle

area, but it is not so far from our store. The inside decoration is colorful modern style

with green and orange tone color. They provide sofas and international magazines and

there is out door atmosphere as well.

Promotions (updated promotions)

Free Wi –Fi

Buying one of product, free Wi – Fi for 15 minutes

Ice cream

Customers can get discount when order ice cream more 1 scope

121

Andaman Point Card

Figure 3.15: Andaman Promotion

Andaman Point Card provides the

customers to collect the points by buying complete

to twenty cups can get one Andaman shirt free.

(Source: Andaman Coffee Co. Branch 3, 210/4 Karon Road, Karon, Muang, Phuket

83100, 03 May 2010)

Actually the premium coffee store always provide free Wi – Fi and some of

them limit times to use because protecting the customers who use for long time that the

store may waste of electric costs and there are not have seats for new customers so the

business can not get lot of profits. The Andaman coffee provides only 15 minutes that it

is very few times so it looks not attractive the customers who want to play for free Wi –

Fi but the point card promotion is very interesting because it can show the royalty of

their customers for products and it is the good way to motivate customers to buy. In

addition they do advertising via an internet such as their own website (It is not update

anymore) and face book.

Staff Uniform

The staffs of Andaman Coffee Co. wear the uniforms which have company logo

on their grey shirts with black long pants. When customers come, the staffs always say

122

greeting and they always say “Thank you” when customers leave the store. This

promotion can make the customers feel impressive and satisfy with their service.

Indirect Competitors in Karon Beach

Convenience Store or Minimart, Supermarket

Figure 3.16: Convenience Store or Minimart

(Source: http://www.phuket.com, and CP ALL PUBLIC COMPANY LIMITED

http://www.cpall.co.th 2010)

The convenience store and minimart in Karon beach are indirect competitors of

our company because they also provide coffee and other beverages. Their products are

general which there are in the market. The quality of product is different from premium

coffee because they are not fresh so the taste of premium coffee is better. Coffee

products are not premium coffee but they are instant coffee that they are instant coffee;

the customers need to brew before drinking and instant coffee canned; the coffee

already brewed. It is the convenience way for customers because they can be easy to

find this kind of coffee in the market. The prices are cheaper than premium coffee. They

are big company and famous brand names which have advertising via television, news

123

papers and magazines such as Nescafe of Nestle and Birdy. In addition they also

provide variety of beverages that the customers have many choices for them.

Restaurant

Figure 3.17: Restaurant at Karon beach

(Source: http://www.phuket.com, 2010)

There are many restaurants in Karon beach that provide coffee for their

customers but their products are not premium coffee because they are instant coffee.

They also provide other beverages such as energy drink, orange juice, coconut and etc

which there are variety of choice for customers. The prices are expensive that are the

same our product because it is in restaurant but there are less choice for customers and

lower quality.

124

General Shop or Small Shop beside the Road

Figure 3.18: General Shop or Small Shop beside the Road

(Source: http://www.phuket.com, 2010)

This is also indirect competitors of our company because they provide beverage

that they are alternative for customers. They also sell coffee that brewing the instant

coffee or it is original Thai style. The products are normal so the prices are cheaper. The

customer can be convenience to see because there are many shops beside the road.

Almost of them do not have any attractive promotion because it is low cost and easy to

sell. The customers do not concern on quality much.

Customer Analysis

Because of Phuket is the most popular tourist destination of Thailand so our

customer that we focus on tourist group. Mr.Praterng Sorn-Kham (Director of Phuket

International Airport) tell that, in travel season of Phuket has passengers come to

Phuket both domestic and international are more than 100,000 people per month and the

ratio from international and domestic is 3:1.

(Source: Phuket e news, http://phuketenews.blogspot.com, 08.35 PM on 26 Jan 2010)

125

306,783

1,190,032

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Thai Foreigner

Tourist in Phuket 2009

Amount of Tourist

Figure 3.19: Tourist Arrivals Phuket 2009

(Source: Office of Tourism Development, http://www.tourism.go.th, 02 Nov 2009 )

From graph, we can see that the amounts of foreign tourist arrivals to Phuket are

more than Thai tourists. There are foreign tourists more a million per year while there

are Thai tourists less than half million.

126

38%

62%

0 10 20 30 40 50 60 70

Female

Male

57%43% 25 - 34

Other

Thai Tourist

Gender

Figure 3.20: Gender of Thai Tourists Arrival Phuket 2009

The research tells that there are 62 percents of Thai tourists are women and 38

percents are men.

Age

Figure 3.21: Age of Thai Tourist Arrivals Phuket 2009

127

28%

72%

Less Than

or Equal

49,999 bahtOther

Most ages are between 25 -34 years old (43%) and others are 57 percents.

Revenue

Figure 3.22: Revenues of Thai Tourist Arrivals Phuket 2009

The revenues are less than or equal to 49,999 baht (72%) and others are 28

percents.

128

0 1 2 3 4 5 6 7 8 9 10

Taste

Atmosphere

Quick Service

Variety of Products

Reasonable Price

Comfortable and Meeting

Brand Reliability

Convenience

Bakery and Food

Promotion

Factors to Choose the Coffee Shop

Figure 3.23: Factors to Choose the Coffee Shop for Thai People

The factors that influence Thai tourists to choose the coffee shop are taste of

coffee, atmosphere at the shop, quick service, variety of products, reasonable price of

product, the comfortable and suitable for meeting, brand reliability, convenience to buy

such as they are near office or on the way to home, taste of bakery and food and

attractive promotion. They are the reasons why Thai tourists choose coffee to their

drink.

129

3%

1%

4%

12%

17% 63%

Europe

Asia

Australia

North America

Other

South Africa

Foreign Tourist

Number Tourists of Each Continent

Figure 3.24: Tourists of Each Continents in Phuket 2009

From graph the most number of tourists who come to travel at Phuket in year

2009 is European countries which there are 764,980 tourists (63%). Second there are

198,967 tourists (17%) that is very different from Europe. Third there are 147,915

tourists (12%) from Australia. Fourth there are 41,823 tourists (4%) from North

America Fifth there are only 5,561 tourists (1%) from South Africa and there are 30,786

tourists (3%) from other.

(Source:Office Of Tourism Development, http://www.tourism.go.th, 02 November 2009)

130

Top Ten Country

Figure 3.25: Top Ten Coutry of Foreign Tourists Year 2009 in Phuket

From the most number of tourists who come to travel in Phuket in year 2009

separate by country which are Australia, Sweden, UK, Germany, Russia, Finland,

Denmark, France, Japan and USA. In addition it is high season on October last year

found that there are tourists increase to 20 percents.

From the most number of tourists who come to travel in Phuket in year 2009

separate by country which are Australia, Sweden, UK, Germany, Russia, Finland,

Denmark, France, Japan and USA. In addition it is high season on October last year

found that there are tourists increase to 20 percents.

(Source: Phuket Provincial Governor's Office, 14 Marh 2010)

Australia

19.52%, 146,962

Korea

14.78%, 111,255

Sweden

14.43%, 108,582Malaysia

8.09%, 60,867

England

8.06%, 60,690

China

7.63%, 57,454

Germany

7.62%, 57,338

Russia

6.79%, 57,338

Singapore

6 .61%, 49,770

Finland

6.47%, 48,699

131

60%

40%

0 10 20 30 40 50 60 70

Female

Male

20%

80%

25 - 54

Other

Gender

Figure 3.26: Gender of Foreign Tourist Arrivals in Phuket 2009

On the other hand almost of foreign tourists in Phuket are men (60%) and there

are 40 percents of women.

Age

Figure 3.27: Age of Foreign Tourist Arrivals in Phuket 2009

132

37.5%

62.5%

50,000 baht

up

Other

Most age between 25 – 54 years old (80%) and others are 20 percents.

Revenue

Figure 3.28: Revenues of Foreign Tourist Arrivals in Phuket 2009

The revenues are 50,000 baht up (62.5%) and there are 37 percents of others.

133

57.41%63.08%

67.74%69.84%

88.24%

0

10

20

30

40

50

60

70

80

90

100

North

America

Europe Other China,

Taiwan and

Hong Kong

Japan

Tourists Who Ever Drunk Coffee in Thailand

Figure 3.29: Tourists Who Ever Drunk Coffee in Thailand

There are 72.21 percents of foreign tourists who ever have drunk coffee in

Thailand. The tourists from North America are the first (88.24%), second are from

Europe (69.84%), and third are China, Taiwan and Hong Kong (63.08). The less

number is from Japan (57.41%) and there are 67.74 percents of other countries.

134

46.3%

43.6%

40

41

42

43

44

45

46

47

48

Yes No

The Important of Coffee

Figure 3.30: Tourists who Realize Important of Coffee

There are 43.6 percents who like to drink coffee but they do not realize on

important of coffee. In the other hand there are 46.3 who realize on important of coffee

because they need to drink for health in daily life.

135

52.6%

18.2%25.6%

10

20

30

40

50

60

70

80

90

100

Do not

Realize

Arabica Other

Type of Coffee Bean

Figure 3.31: Tourists who Realize Type of Coffee Bean

There are 56.2 percents of foreign tourists who do not realize on type of coffee

bean but there are 18.2 percents that like Arabica Bean that there is the highest amount

when comparing with other coffee beans which there are 25.6 percents.

136

55.8%

18.4%25.8%

10

20

30

40

50

60

70

80

90

100

Premium Coffee or

Fresh Coffee

Instant Coffee or

Instant Coffee

Canned

Both

Favorite Coffee Drinks

Figure 3.32: Favorite Type Coffee Drinks

Almost of foreigners prefer to drink premium coffee or fresh coffee (55.8%)

rather than drink Instant coffee or instant coffee canned that there are only 18.4

percents. There are 25.8 percents of foreigners who like both types of coffee.

137

47.9

14.4

24.1

Iced Coffee

Black Coffee

Put Milk and

Sugar

Taste

Figure 3.33: The Favorite Taste of Foreign Tourist

The first favorite taste for coffee drinking of foreign tourist is putting milk and

sugar (47.9) and second there are 24.1 percents for black coffee. Third there are 14.4

which is iced coffee.

138

41.6

33.7

24.7

0

5

10

15

20

25

30

35

40

45

Coffee Cup Coffee Mug Instant Coffee

Cup

55 - 120

Baht

25 -35 Baht

10 -20 Baht

Price

Figure 3.34: Price and Packing Satisfaction of Foreigners for Coffee in Thailand

Almost of foreigners choose the coffee that brewing cup by cup which prices are

between 55 – 120 baht for a cup (41.6%) and second is coffee mug which price 25 – 35

baht for a cup (33.7). Third is instant coffee cup which price are between 10 – 20 baht

for a cup (24.7)

Popular Place

Figure 3.35: The Popular Place for Foreign Tourist

0 0.5 1 1.5 2 2.5 3 3.5

Third

Second

First Coffee Shop or

Coffee Outlet

Restaurant or

Coffee Shop at

HotelGeneral

Restaurant

139

0 1 2 3 4

Third

Second

FirstRestaurant or

Coffee Shop at

HotelCoffee Shop or

Coffee Outlet

General Shop

The first popular place for foreigners is coffee shop or coffee outlet and second

is restaurant or coffee shop at hotel. Third is general restaurant.

Most Satisfaction Place

Figure 3.36: The Most Satisfaction Place for Foreign Tourist

The most satisfaction place for foreigner is restaurant or coffee shop at hotel.

Second is coffee outlet or coffee store and third is the general shop that sells variety of

beverages.

140

0 1 2 3 4 5

Forth

Third

Second

First

Price

Atmosphere in the

Shop and

Convenience to buyService

Variety of Product

55.7

33.5

10.8

0

10

20

30

40

50

60

Classic Modern Other

Decoration

Figure 3.37: The Favorite Decoration

The most favorite decoration of the foreign tourists is classic style, secondary

style is modern and third is other styles which in a few.

The Most Forth Influence Factors of Foreigner Satisfaction

Figure 3.38: The Most Forth Influence Factors of Foreigner Satisfaction

for Coffee Business in Thailand

141

0 1 2 3 4

Second

First

Giving Own

Coffee

Information

Giving Own

Coffee Equipment

Information

The foreigner satisfaction for coffee business in Thailand is middle level which

there is average 3.43 scores from 5. The most influence factors of foreigner satisfaction

is price and second it is atmosphere in the shop and convenience to buy the product.

Third it is service which the entrepreneurs provide to them. Forth it is variety of

products.

The Less Two Influence Factors of Foreigner Satisfaction

Figure 3.39: The Less Two Influence Factors of Foreigner Satisfaction

The less two influence factors of foreigner satisfaction which the first is giving

own coffee information of the entrepreneur and second is giving own coffee equipment

information.

142

Nationality Satisfaction

Figure 3.40: Nationality Satisfactions for Coffee Business in Thailand

0 0.5 1 1.5 2 2.5 3 3.5

Third

Secondr

FirstNorth America

Eropean Country,

China, Taiwan and

Hong KongOther

When we divide into nationality satisfaction of foreigners for coffee business in

Thailand, the information show that North America is the most satisfaction and next

they are Europe country, China, Taiwan and Hong Kong and other country are low.

Foreigner Satisfaction Who Work in thailand

Figure 3.41: The Most Foreigners Satisfaction Who Work in Thailand

0 0.5 1 1.5 2 2.5

Second

First

Eastern Country

Western Country

143

The most foreigner satisfactions who work in Thailand, the information show

that the Eastern country is more satisfied than Western country.

Company Analysis

OKey coffee provides good variety of coffee and other products and services

which can make the customer to enjoy and be happy when they visit our outlet. Our

company prides to serve premium Arabica from Doi Chaang Coffee that is world class

coffee and the best coffee in the world because it is accepted from international country

such as Italy, Canada, China and etc. Doi Chaang Coffee is a single-origin, premium

Arabica. It is certified organic, forest canopy grown, hand picked, fresh water

processed, sun dried, hand sorted and freshly roasted to ensure the highest possible

quality for each cup of Doi Chaang Coffee. Naturally low in caffeine, it has a complex

and flavourful profile which is enhanced and released through detailed cultivating,

processing and roasting methods. For this reason we can sure that our every cup of

coffees are high quality. In addition we use world class machine from Italy which is the

best coffee machine provider and we also use other equipments which are high

technology for our store. We make sure that the prices of our products and service are

reasonable for the customers so the customers will be satisfaction with our products and

services because we have studied this very well. We also find the best place to complete

our high quality of products and services and it can be competitive with our

competitors. We have the good promotions that can be attractive our customers to

purchase our products services so we believe that our company will be beyond our

competitors.

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within

the company, and describes the opportunities and threats facing OKey Coffee.

144

Strengths

- Strong financial resource

- Variety of products and services

- High quality of raw materials and equipments

- Fast service because use high technology when there are many customers

- Have unique menus

- Good quality management system because use the high technology to support

our management system

- Convenience, good atmosphere, clean place and attractive decoration

- Quantity and quality are reasonable with products and services or value of

money

- Impressive service of our staff

Weaknesses

- New brand

- Brewing cup by cup is slow; 3 minutes : 1 cup so lose of sale opportunity

- The maintenance of machine is waste of time for production.

Opportunities

- Most of foreigners drink fresh coffee and premium coffee is also popular now.

- There are good quality raw material resources in Thailand.

- OKey coffee is located on tourist destination so high and peak seasons can gain lot

revenues.

- There are only one direct competitor so it is low competitions and we can be easy to

entry in the niche market

145

Threats

- Premium coffee is consumed in specific group, time and occasion

- There are other beverages that can drink to replace coffee qualification

- There are many instant coffees and instant coffee canned to sell in general market.

- Coffee has culture for drinking that need to take time for study and development for

accepting so the market expanding can not be fast.

Five Forces Analysis

Threat of new entrants: High

Premium coffee store business is easy to copy so it is easy to entry to the

business for new competitors. The reasons are:

- Low costs which depend on the size and location of business

- There are raw materials of business in country such as Arabica Bean from

Northern of Thailand or Robusta Bean from South of Thailand

- For general of business, it no needs to use high technology so it is low cost of

machine investment.

- It is easy to get premium coffee information such as brewing method, roasted

coffee beans and raw material resource.

Rivalry Among Existing Firms: High

Because of nowadays the premium coffee business is very popular and the

market is more expand so it can attract the new competitor entry into the business that

both Thai entrepreneurs and foreign entrepreneurs get into for the market share of this

business. The target markets of premium coffee are middle class up by divided in to:

-Business zone, Department Store and Tourist Destination and the big dominant

market share of premium coffee in Thailand are:

• Foreign Chain such as Starbucks, Au Bon Pain, Gloria Jeans and UCC

146

• Thai Chain such as Coffee World, Black Canyon

• There are many independent coffee stores in all regions of Thailand and including

Phuket which is the tourist destination and the target is tourists who are visited there.

• There will be very high competition of premium coffee business in 2010 because

there are increase expanding in market of each entrepreneurs by concern developing

new market and they also develop new product together.

• Starbucks and Coffee World will be more expanding their chain.

• Black Canyon will increase distribution channel to gas station service and airport and

including Phuket.

• There is no Switching cost so there are high competitions because the consumers do

not pay for changing brand name of products and services

Bargaining power of buyers : Low

Because of it is the retailer business which provides premium product to

consumers directly and there is a positioned price so the consumer can not bargain the

price but if the consumer think that it is not reasonable price, they may not buy the

products.

Bargaining power of suppliers: Medium

The important raw materials of OKey coffee are divided:

- Coffee bean, it is the agricultural product which the lowest price are

positioned by government so Bargaining Power of OKey coffee for suppliers is low. In

addition nowadays the price of Arabica coffee bean in country is low and although the

premium coffee market trend to growth increasingly in the future but the quantity

production of premium coffee is enough for marketing plan of OKey coffee.

There are many of suppliers in Thailand and the cultivating of coffee bean in

Thailand is good quality and accepting from international country so no need to import.

• Packaging

147

The plastic glass is industry productions which there are many suppliers in

Thailand so the Bargaining Power of Suppliers are low because our company can order

from other suppliers which providing lower prices.

Threat of substitutes: High

There are many products that can take place premium coffee which maybe

instant coffee and energy drink that they are easy or convenience to buy in the market.

3.2 STP Analysis

STP is the marketing’s tools for accessing to the customer in common using,

that including of Segment market, Target market, and Positioning.

3.2.1 Market Segmentation

OKey Coffee will focus its marketing activities on reaching foreign and Thai

tourists who come to visit the Karon. Our market research shows that these are the

customer groups that are most likely to buy premium coffee products that most of them

are foreigners. Since premium coffee consumption is universal across different income

categories and behavior to drink coffee in Thailand. The chart below outlines the total

market potential (in number of customers) of OKey Coffee drinkers in Karon beach.

148

10%

10%

80%

Foreign Tourist

Thai Tourist

Local People

Figure 3.42: Market Analysis

3.2.2 Target Analysis

OKey coffee divide target group into 3 groups which are foreign tourist, Thai

tourist and local people. OKey Coffee cater to people who want to get their daily cup of

great-tasting coffee and food or variety of products in a relaxing atmosphere. Such

customers vary in age, although our location on Karon beach and it is in front of the

beach means that most of our clientele will be travelers who visit there and local people.

For us, this will provide a unique possibility for building a loyal client base.

Main customer of OKey coffee is foreign tourists who stay at Karon beach that

most of them are male and they ever drunk coffee in Thailand and the satisfaction of

them are in middle level so this mean most foreigner like coffee in Thailand. There are

80 percents which are very high number and they have high revenue which are more

50,000 baht per month so the potential is high purchasing power to pay for products and

services with medium to high price that they can pay at prices between 50 – 120 baht.

Most of them like to drink premium coffee at the coffee outlet or coffee shop which

have good atmosphere, good service and variety of products. Most of them like

decoration in classic style.

Secondary customers are Thai tourists who visit on Karon beach. Most

of them are female. The revenues are less than or eaqual to 49,999 per month. They also

149

concern on taste of coffee ,atmosphere and variety of service and premium coffee are

popular in Thailand now so Thai people are more consume premium coffee and local

people which are officers and people who work on the beach so OKey coffee can get

income from local people in low season.

3.2.3 Position Analysis

Figure 3.43: Positioning of OKey Coffee

OKey coffee position on variety of products and services with reasonable price

according to customer wants and needs. OKey coffee’s products and services are high

quality to serve the customers in classic decoration store at convenience place for

complete in the customers relax time. Our store can serve the products to meet the wants

and needs of customers with their friends and family. The position of our products and

services are beyond our competitor like Andaman Coffee because they are not variety of

NOT

Variety of Products and Services

NOT Reasonable Price

Convenience Classic

☻Andaman Coffee

☺OKey Coffee

150

products and services and the prices are expensive. OKey coffee also locates at

convenient place which the Andaman coffee is not.

3.3 Marketing Mix Strategy

The Marketing Mix model (also known as the 4 P’s). There is Product, Price,

Place (distribution) and Promotion. These four P's are the parameters that the marketing

manager can control, subject to the internal and external constraints of the marketing

environment. The goal is to make decisions that center the four P's on the customers in

the target market in order to create perceived value and generate a positive response.

OKey Coffee marketing strategy will be focused at getting new customers,

retaining the existing customers, getting customers to spend more and come back more

often. Establishing a loyal customer base is of a paramount importance since such

customer core will not only generate most of the sales but also will provide favorable

referrals.

3.3.1 Product Strategy

Branding Strategy; we use the word “OKey” which means OKey Coffee store as

our brand which they are OKey in products, OKey in price and OKey in place. The

word OKey is easy to remember so the customer will imagine to OKey coffee when

they want to drink good taste of coffee with reasonable price at convenient place.

151

Figure 3.44: Logo of OKey Coffee

Logo

It is simple but it is unique itself and easy to remember. It can present about our

finest coffee store and feeling to everyone who drinks our coffee and other products.

When customers see this logo, they can smile and feel well. The objective below the

brand OKey is a fantastic smile which would make our customers feel happy. It also

expresses the uniqueness of Thailand as it’s known as the land of smile.

Slogan; “OKey Coffee Wake Up and Smell the Variety”

Our slogan, this phrase would make the customers remember our brand more

easily because it is just only a short word and also has a good meaning. Every time that

our customers see or hear the slogan, they would feel happy because they know that

they will not be lonely anymore.

• Products and services strategy

OKey Coffee is provided the variety of products and services to meet the

customer needs with the good training of our staffs to make the customer satisfaction.

OKey coffee concern on clean and save because it can create the customer reliability.

There are more choices for the customers than competitor such as secondhand books,

152

foods that the competitors do not provide to the customers. In addition there will be new

products or special product in high or peak season for increase in prices and sales. We

need to think that the products should be balance in sale because if some of products

hold back other, we should not sell because we will lose some of income.

Our packaging is also classic as our shop because OKey coffee is the new

business so the packaging should be attract the customers

Product

Core Products

- Coffee; Iced Beverage, Hot Beverage, Blend Beverage

- Tea

- Juice

- Smoothie

- Non Iced Beverage

- Food

Supporting Products

- Coffee Bean - Bakery

- Ice Cream

- Secondhand books

Why we provide supporting products according of customers want and needs

such as bakery and foods are main supporting products for coffee shop nowadays.

Service

- Internet

- Free Wi Fi that do not limited time use for customer who bring computer

by giving password

153

3.3.2 Price Strategy

OKey coffee estimated production cost of raw material plus operation cost and

added land value then setting reasonable price for our target group. We will set in

different prices that they depend on costs. Our price will set more threefold from cost on

core products and some of supporting products. Some supporting products set in the

general price.

OKey coffee store sets reasonable prices to meet the customer needs and wants

which the prices are medium. We will set the price on products that the competitor does

not have quite high prices such as foods and own menu of our company.

We will set the price are quite cheaper than competitors on some menu which

Setting different prices of product that they are low cost raw material which competitors

sell in high prices but we are sell low price such as Andaman Coffee sell Thai Tea 95

baht but we sell in 75 baht because it is very low cost.

The price of the same menu with competitor that we do not set in expensive than

them and we will set same price on some menus. To increase price on popular menus in

high and peak season but they are not over competitor. To discount some menus of

beverage in low season or Green season for attract more customer.

154

3.3.3 Place Strategy

Figure 3.45: Karon Traffic Circle

OKey coffee store is located at the beach Karon Traffic Circle which is the main

road or commerce zone in the beach and there are crowded of tourists who walk on or

shopping there from day time to night time because there are supermarkets, mini marts

and restaurants. The area is made up entirely of photo labs, pharmacies, banks and

155

tailors and more tailors and more bars than Las Vegas, although with more modest

prices.

In addition there are guest house and hotels around there. Especially OKey

coffee is opposite Phuket Karon Corner Inn Hotel which this hotel do not have break

fast for their guest so they can come to visit our shop because we provide foods and

beverages. Our shop is in front of the beach which is on the convenient building

because there are shopping place in the first floor so the customers are easy to get our

shop at the second floor. There are in door and out door atmosphere for customer. There

are comfortable warm lighting, coffee bar, sofa, private space and international selection

of variety magazine, you can enjoy out door atmosphere as well which customer can see

the beach from our store. From these reasons OKey coffee can be more attractive

customer than competitor.

To changing new one of products that there are accidents by customer wrongs

such as coffee cups are split or broken. It will lead the business to good standard and it

can be “Word of Mouth” which is the good promotion.

3.3.4 Promotion Strategy

Advertising Strategy

OKey Coffee no need to advertise much because it is located at the good

location and Phuket is tourist destination, especially Karon has only one premium

coffee competitors so we can easy to sell. The best advertisement is building shop

standard to customer perception and accepting our shop because it can lead to “Word of

Mouth” of customer that this method is very effective for coffee store business.

Advertising product and service though various of media, such as:

- Brochure that we will put our brochure on front at hotel and guest house

in Karon beach.

- Company web site that our customer can leave their comment there.

- Blackboard in front of shop

156

- Face books that is the good channel to introduce our business on global

and we can exchange idea with customers and people who are interested in coffee and

Free.

These can present image, brand name and logo of company quickly and clearly

so customers are easy and understand about products and services. We will do public

relation such as donating box because this can promote good image of company.

Figure 3.46: Website of OKey Coffee

157

Figure 3.47: Face Book of OKey Coffee

Staff Uniform

This strategy the same of competitors that the staffs need to wear OKey Coffee

uniforms because when customers come, the staffs always say greeting and they always

say “Thank you” when customers leave the store. This promotion can make the

customers feel impressive and satisfy with their service.

3.4 Sales Forecast/Profit Estimation

Our company located at Karon beach in Phuket. As we know there are three

seasons in Phuket which are:

Low Season is 01 May to 31 October in each year which there are less tourists.

From research of our competitor and entrepreneurs there, we can estimate sale of our

company in this period:

158

Table 3.3: Standard Average Sale Forecast in Low Season

Products

and

Service

Time Average Units Average Prices

Beverage Sale/ cups Day 50 75

Food Sale/ plates Day 25 120

Coffee Bean Sale/

bags

Week 3 150

Bakery/ prices Days 25 75

Ice Cream/ scope Days 15 50

Secondhand Book/

books

Days 10 180

Internet Service/

hours

Days 6*3 100

This period our sale may not less than high season and peak period or our sale

will be stable.

We will launch OKey Coffee business on January, 2011 which is in high season

and peak period because there are many tourists or many demands so we can easy to sell

our products more low season. We may not get the profits on first month because we are

ne entry into the market so the customer may not know our products so they do not

much purchasing our products. Although we have to use a lot of money for investment

such as building rental, equipment, raw material, salaries, tools, interior decoration cost

etc. but we think that we can make profit later when our product enter market for year

two or three which are 2012 and 2013.

159

High Season is 1 November to 15 December and 16 January to 30 April in each

year which there are many of tourists so products and services are very expensive more

low season.

Table 3.4: Standard Average Sale Forecast in High Season

Products

and

Service

Time Average Units Average Prices

Beverage Sale/ cups Day 100 75

Food Sale/ plates Day 45 120

Coffee Bean Sale/

bags

Week 6 150

Bakery/ prices Days 45 75

Ice Cream/ scope Days 30 50

Secondhand Book/

books

Days 20 180

Internet Service/

hours

Days 8*3 100

Peak Season or Peak Period is 16 December to 15 January in each year which

there are the most tourists in Phuket

160

Table 3.5: Standard Average Sale Forecast at Peak Period

Products

and

Service

Time Average Units Average Prices

Beverage Sale/ cups Day 125 75

Food Sale/ plates Day 50 120

Coffee Bean Sale/

bags

Week 10 150

Bakery/ prices Days 55 75

Ice Cream/ scope Days 45 50

Secondhand Book/

books

Days 25 180

Internet Service/

hours

Days 10*3 100

*** We assume the sale forecast on very low volume in the period when

compare with total sale of competitors and real situation because our project can be safe

that when we are operated our project and it can show the feasibility so the project will

be survive.

161

Table 3.6: Sale Forecast of Year 2011 (YEAR 1)

Year 2011

Sale Volume

Products and Service Per Month Price Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 75 775 780 785 785 790 785 790 795 795 800 1,085 1,550 10,515

Food 150 620 625 630 630 620 625 610 620 625 630 775 930 7,940

Coffee Bean 150 5 7 7 7 5 5 4 6 7 6 9 10 78

Bakery 75 465 470 475 480 460 465 470 470 475 485 495 620 5,830

Ice Cream 50 620 630 800 1050 450 460 465 460 465 475 600 900 7,375

Secondhand Book 180 155 155 157 160 140 140 155 150 160 160 175 180 1,887

Internet Service 100 186 130 140 150 124 128 125 129 135 140 145 170 1,640

Year 2011

Total Sale

Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Percent

Beverage 58,125 58,500 58,875 58,875 59,250 58,875 59,250 59,625 59,625 60,000 81,375 116,250 788,625 24 %

Food 93,000 93,750 94,500 94,500 93,000 93,750 91,500 93,000 93,750 94,500 116,250 139,500 1,191,000 36.7 %

Coffee Bean 750 1,050 1,050 1,050 750 750 600 900 1,050 900 1,350 1,500 11,700 0.3 %

Bakery 34,875 35,250 35,625 36,000 34,500 34,875 35,250 35,250 35,625 36,375 37,125 46,500 437,250 13 %

Ice Cream 31,000 31,500 40,000 52,500 22,500 23,000 23,250 23,000 23,250 23,750 30,000 45,000 368,750 11 %

Secondhand Book 27,900 27,900 28,260 28,800 25,200 25,200 27,900 27,000 28,800 28,800 31,500 32,400 339,660 10 %

Internet Service 12,400 13,000 14,000 15,000 12,400 12,800 12,500 12,900 13,500 14,000 14,500 17,000 164,000 5 %

Total 258,050 260,950 272,310 286,725 247600 249,250 250,250 251,675 255,600 258,325 312,100 398,150 3,300,985 100 %

162

Figure 3.48: Sale Forecast of Year 2011 (YEAR 1)

Price (Baht)

Month

163

Figure 3.49: Percent of Sale Forecast Year 2011 (YEAR 1)

Baverage

Food

Coffee Bean

Bakery

Ice Cream

Secondhand Book

Intenet

164

Table 3.7: Sale Forecast of Year 2012 (YEAR 2)

Year 2012

Sale Volume

Products and Service Per Month Price Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 75 2,480 2,010 2,100 2,200 800 790 750 765 795 800 1,800 2,850 18,140

Food 150 1,200 1,000 900 1,000 700 600 590 700 780 800 1,000 1,550 10,820

Coffee Bean 150 12 9 8 10 5 5 4 5 6 8 12 18 102

Bakery 75 775 700 720 750 500 520 485 470 475 600 750 800 7,545

Ice Cream 50 950 850 800 1,100 450 400 465 460 465 500 900 950 8,290

Secondhand Book 180 250 220 190 200 150 155 165 150 175 180 250 300 2,385

Internet Service 100 500 460 450 480 200 250 300 320 300 400 500 580 4,740

Year 2012

Total Sale

Products and Service Per

Month

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Percent

Beverage 186,000 150,750 157,500 165,000 60,000 59,250 56,250 57,375 59,625 60,000 135,000 213,750 1,360,500 28 %

Food 180,000 150,000 135,000 150,000 105,000 90,000 88,500 105,000 117,000 120,000 150,000 232,500 1,623,000 33 %

Coffee Bean 1,800 1,350 1,200 1,500 750 750 600 750 900 1,200 1,800 2,700 15,300 0.4 %

Bakery 58,125 52,500 54,000 56,250 37,500 39,000 36,375 35,250 35,625 45,000 56,250 60,000 565,875 12 %

Ice Cream 47,500 42,500 40,000 55,000 22,500 20,000 23,250 23,000 23,250 25,000 45,000 47,500 414,500 8 %

Secondhand Book 45,000 39,600 34,200 36,000 27,000 27,900 29,700 27,000 31,500 32,400 45,000 54,000 429,300 8.6 %

Internet Service 50,000 46,000 45,000 48,000 20,000 25,000 30,000 32,000 30,000 40,000 50,000 58,000 474,000 10 %

Total 568,425 482,700 466,900 511,750 272,750 261,900 264,675 280,375 297,900 323,600 483,050 668,450 4,882,475 100 %

165

33%

12%

8%

10%28%

8.9%

0.4%

Beverage

Food

Coffee Bean

Bakery

Ice Cream

Secondhand Book

Internet

Figure 3.50: Sale Forecast of Year 2012 (YEAR 2)

Price (Baht)

Month

Figure 3.51: Percent of Sale Forecast Year 2012 (YEAR 2)

167

Table 3.8: Sale Forecast of Year 2013 (YEAR 3)

Year 2013

Sale Volume

Products and Service Per Month Price Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 75 3,100 2,800 2,900 3,000 1,000 800 750 770 800 800 2,500 3,100 22,320

Food 150 1,500 1,250 1,000 1,300 750 680 590 680 800 830 1,300 1,550 12,230

Coffee Bean 150 24 18 12 15 6 7 8 9 11 12 20 28 170

Bakery 75 1,000 900 850 900 500 590 550 470 500 600 1,000 1,100 8,960

Ice Cream 50 1,200 1,100 1,000 1,150 500 450 465 460 465 500 1,000 1,250 9,540

Secondhand Book 180 300 250 200 230 150 155 165 150 175 180 280 330 2,565

Internet Service - 3 cases 100 930 850 800 900 300 250 300 320 300 400 600 900 6,850

Year 2013

Total Sale

Products and Service Per

Month

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Percent

Beverage 232,500 210,000 217,500 225,000 75,000 60,000 56,250 57,750 60,000 60,000 187,500 232,500 1,674,000 28.5 %

Food 225,000 187,500 150,000 195,000 112,500 102,000 88,500 102,000 120,000 124,500 195,000 232,500 1,834,500 31%

Coffee Bean 3,600 2,700 1,800 2,250 900 1,050 1,200 1,350 1,650 1,800 3,000 4,200 25,500 0.5%

Bakery 75,000 67,500 63,750 67,500 37,500 44,250 41,250 35,250 37,500 45,000 75,000 82,500 672,000 11.8%

Ice Cream 60,000 55000 50000 57500 25000 22500 23250 23000 23250 25000 50000 62500 477,000 11.2%

Secondhand Book 54,000 45,000 36000 41400 27000 27900 29700 27000 31500 32400 50400 59400 461,700 7.8%

Internet Service 93,000 85,000 80,000 90,000 30,000 25,000 30,000 32,000 30,000 40,000 60,000 90,000 685,000 12.2%

Total 743,100 652,700 599,050 678,650 307,900 282,700 270,150 278,350 303,900 382,700 620,900 763,600 5,883,700 100 %

168

12.2%7.8%

8.2%

11.8%

0.5% 31%

28.5%Beverage

Food

Coffee Bean

Bakery

Ice Cream

Secondhand Book

Internet

Figure 3.52: Sale Forecast Year 2013 (YEAR 3)

Price (Baht)

Month

Figure 3.53: Percent of Sale Forecast Year 2013 (YEAR 3)

169

Conclusion Marketing Expenses 2011 - 2013

5,883,700

4,882,475

3,300,985

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Year 1 Year 2 Year 2

Ba

ht

Figure 3.54: Conclusion Sale Forecast 2011 – 2013 (3 Year)

Total Sales Forecast of 3 Years = 14,067,160 Baht

3.5 Marketing Expenses (Sale Incentive)

OKey Coffee has expense as follow:

- Web Site : Phuket Windown

Price - 3,500 Baht/First year

- Next year 2,500 Baht

- Brochure : At Phuket Sticker

Price - 500 Units/ 3.50 Baht Per Unit

170

Table 3.9: Market Expenses of Year 2011 (YEAR 1)

Market Expense Year 1

(Baht)

Market Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Web Site 3,500 3,500

Brochure 1,750 1,750 1,750 5,250

Total Market Expense 5,250 1,750 1,750 8,750

Table 3.10: Market Expenses of Year 2012 (YEAR 2)

Market Expense Year 2

(Baht)

Market Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Web Site 2,500 2,500

Brochure 1,750 1,750 3,500

Total Market Expense 2,500 1,750 1,750 6,000

171

Conclusion Marketing Expenses 2011 - 2013

6,0006,000

8,750

0

2,000

4,000

6,000

8,000

10,000

Year 1 Year 2 Year 2 Year 3

Ba

ht

Table 3.11: Market Expenses of Year 2013 (YEAR 3)

Market Expense Year 3

(Baht)

Market Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Web Site 2,500 2,500

Brochure 1,750 1,750 3,500

Total Market Expense 2,500 1,750 1,750 6,000

Figure 3.55: Conclusion Market Expenses 2011 - 2013 ( 3 Year)

172

3.6 Conclusion in market feasibility

According to market analysis OKey Coffee Company emphasizes and gives

precedence to external factor to run the Company for eliminate the problems that will

happen in the future such as political/legal, economic, socio-cultural, demographic, and

technological. We analyze about the competition in the market and we also analysis the

competitors of our company that make us to know the competitive in the market and

know the demand of customers what they wants and needs. These make our company

know how we should do on step that we know how to make strengths beyond

competitors, what are weaknesses, opportunities and treats of our company. So OKey

Coffee thinks to create marketing mix strategy (4 P’s) to make different from our

competitors that our company know what we should provide to meet the needs of our

target groups.

The market forecast is an important thing that we should the feasibility to sell

product or service in that market because this can point us to know that this business

should launch or not. From sale forecast in 2011 – 2013 of our company we found that

our products can sell at high volumes on high season and very high on peak period

because there are many tourist visit there which are Christmas and New Year and the sale

are less and stable volumes on low season. Although on low season our sale will be less

but from the environment analysis of Phuket, we found that there are many festival in

each year so there are tourist visit there continuously.

We forecast our sale will be increase continuously and it will be stable after

because the customer will know our products more and because of our promotion strategy

they will impress with our products and service so our business will keep walking with

word of month of our customers and OKey Coffee will growth step by step.

173

Chapter 4

Technical

Feasibility Study

174

4.1 Production and Operation Analysis

This Chapter explains about the technical analysis that including product

characteristic, Location and building, the product and service process thought the

management analysis as well as the overall about cost.

4.1.1 Product characteristics

Doi Chaang Coffee

Figure 4.1: Doi Chang Premium Coffee

Doi Chaang Coffee is a single-origin, premium Arabica. It is certified organic,

forest canopy grown, hand picked, fresh water processed, sun dried, hand sorted and

freshly roasted to ensure the highest possible quality for each cup of Doi Chaang

Coffee. Naturally low in caffeine, it has a complex and flavourful profile which is

enhanced and released through detailed cultivating, processing and roasting methods.

175

Price: 5 kg / 4500 Baht

Cultivation

Doi Chaang Coffee is naturally cultivated and processed in the remote Doi

Chang Village of Northern Thailand. Rich fertile soil, high elevations and ample

rainfall make Doi Chang Village one of the premium coffee growing regions of the

world. We naturally cultivate a variety of Arabica plants under a canopy of sun-filtered

plum, peach, pear and macadamia nut trees in altitudes between 1200 and 1600 metres

above sea level. The fallen leaves from our various fruit and nut trees create nutritious

mulch for our coffee plants, providing a subtle fruit and nutty taste to our coffee. The

shade and high altitudes slow the growth of our coffee cherries, creating a more

complex, dense and intensely flavoured bean.

Harvesting

Our cherry flowers begin to bloom in February and the cherry fruit is ready for

harvesting from November to March. Selectively hand picking only our ripe cherries

ensures minimal damage to our plants and that only our best cherries are processed.

Fully Wet-Method Processing

This labour intensive traditional processing method washes and flushes the bean

from its fruit. Although time consuming, the wet-method helps maintain the inherent

qualities of our beans.

176

Extraction

First, we pre-wash our cherries in a tank of fresh spring water where all our ripe

cherries will sink to the bottom and any unripe cherries will float to the top and be

removed. Second, we remove the skin and pulp by putting our cherries through a

pulping machine. Third, our beans are fermented in water for 48 hours to remove the

mucilage layer and allow a series of chemical reactions to occur which enhance our

coffee's aromatic and flavour qualities. Finally, we thoroughly hand wash our beans

with fresh flowing spring water to remove all traces of the mucilage and prepare the

beans for drying. All the mucilage and fermented byproducts will be recycled as

fertilizer for the coffee plants.

Drying

We evenly spread our parchment-covered beans on patios to naturally sun dry

over the next seven to eight days. During this time we continuously hand rake and re-

spread our beans to ensure they fully dry. In the evenings we pile up and cover the

beans to protect them from moisture. Once our beans are dried to an 11% moisture level

they are warehoused until we need them for roasting.

Hulling & Sorting

This final stage of processing is done just prior to roasting. Our coffee beans are

removed from the final parchment layer with the use of a hulling machine. The coffee

beans are initially sorted and graded by shaking the beans through different sized sieves

and then hand selected to ensure only the finest grade beans are roasted.

There are variety of products in OKey Coffee store which are:

177

Hot Beverage: Coffee/ Non Coffee

Table 4.1: Hot Beverage: Coffee/ Non Coffee

Menu/ Price Description

OKey Espresso Shot

Price: 50 Baht

Only black Coffee from Doi

Chang coffee bean

OKey Espresso macchiato

Price: 60 Baht

An espresso macchiato is a normal

amount of regular espresso, served in a

small glass or cup, with a tablespoon of

hot foamed milk added to it. Macchiato in

Italian means ‘marked’ or ’stained’,

through which it gave this drink its name.

OKey Americano

Price: 60 Baht

A shot of espresso mixed with hot

water to create a long black coffee

OKey Cappuccino

Price: 75 Baht

A luxurious mixed of espresso

steam milk and frothed milk, finished

with sprinkle of real chocolate or

cinnamon

178

OKey Cappuccino chiaro

Price: 75 Baht

Cappuccino chiaro contains a

smaller proportion of coffee and a

larger share of milk than in ordinary

cappuccino.

OKey Macchiato

Price: 75 Baht

Something different, A shot of

espresso make with a little frothed milk

OKey Latte Macchiato

Price: 75 Baht

Latte macchiato is made (as the name

suggests) of milk with a dash of coffee.

Actually it is more milk than coffee. A

well-made latte macchiato is made up of

several layers that are not mixed up.

OKey Mocha

Price: 75 Baht

A wonderful fusion of espresso,

steamed milk and chocolate

OKey Latte

Price: 75 Baht

A delicious mixture of espresso and

steamed milk crowed with a smooth

longer of froth milk

179

OKey Hot Chocolate

Price: 65 Baht

The hot chocolates, this

sophisticated European version includes

bittersweet chocolate, espresso, and a strip

of orange rind, making a perfect after-

dinner drink. Be sure to remove from heat

when a string of tiny bubbles forms around

the edge of the pan, because boiling might

cause the milk to curdle.

OKey Hot Chocolate

Caremel

Price: 75 Baht

Salted caramel is a wonderfully

complex flavor. When combined with hot

chocolate, it provides plenty of stimulation

for your taste buds. All of this is wrapped

in a velvety blanket of milk and heavy

cream that is perfect for relaxing away an

evening.

OKey Hot Milk

Price: 50 Baht

Wonderful pure milk with

sprinkle of real chocolate or cinnamon

180

Iced Beverage: Iced and Blended Coffee/ Non Coffee

Iced coffee is a cold version of a hot favorite. Purists make it with cold-drip

coffee, by pouring hot coffee over ice. Sometimes, espresso drinks prepared with cold

milk and then iced will also be called "iced coffees." Iced coffee may be flavored,

sweetened and/or topped. Blended menus are also provided. A favorite summer drink,

frappé is a cool refresher on a hot day for coffee lovers. It's easy to make using instant

coffee (decaf or full octane), and while it can be whipped, the traditional version is

shaken ... never stirred.

Table 4.2: Iced Beverage: Iced and Blended Coffee/ Non Coffee

Menu Price

Iced - Coffee

85 Baht

OKey Black Coffee

95 Baht

OKey Iced-Espresso

80 Baht

181

OKey Iced-Cappuccino

80 Baht

OKey Iced-Mocha

80 Baht

OKey Iced- Cafe Latte

80 Baht

OKey Earl Grey Iced-Coffee

95 Baht

OKey Frappe Esprsso

95 Baht

OKey Frappe Capucino

90 Baht

182

OKey Frappe Mocha

105 Baht

OKey Frappe

105 Baht

OKey Vanilalla

95 Baht

OKey Mocha

90 Baht

OKey Tiramisu

105 Baht

183

OKey Iced

Chocolate

95 Baht

OKey Rum Raisin

105 Baht

Tea: Hot/ Ice

True teas (like green or black teas) are caffeine-containing infusions from the

leaves of a particular type of camellia plant, but our coffeehouse include "herbal teas,"

which come from other plants and are usually caffeine free. Herbal teas (also called

"tisanes" or "herbal infusions") are things like mint, chamomile, rooibos and ginger.

We provide in to cup and pot which are:

About the Brand

Since 1706, Twinings has been at the forefront of the tea trade. Customers in

more than 100 countries enjoy Twinings products, and not just the popular traditional

favorites: Twinings now includes products such as fruit and herbal infusions, aromatic

teas, and iced teas. These fresh flavors reflect a worldwide trend toward a healthier and

more varied lifestyle. The new flavors are as successful as the traditional ones, because

Twinings prepares them using skills acquired through three centuries of experience.

After quenching thirsts for so many generations, no one knows better than Twinings

184

how to deliver a drink that's in perfect condition. Although British-based, and still

operating in England, Twinings also has plants in North Carolina and Calcutta, India.

Success in the competitive worldwide tea market was confirmed in 1972 (and again in

1977) when Twinings became the first tea company to win a Queen's Award for Export.

• Earl Grey

Earl Grey tea was named after Charles Grey, the second earl in his line. He was

Prime Minister to King William IV in the early 19th century. The legend is that the Earl

was given the recipe by a Chinese mandarin with whom he was friends, and whose life

he had saved. Earl Grey is a blend of Indian and Ceylon teas. The tea gets its unusual

flavor from oil of BERGAMOT. Bergamot is a small acidic orange. The latest research

indicates that the Bergamot orange is a cross between the sweet or pear lemon (Citrus

Limetta) and the Seville or sour orange (Citrus Aurantium). The sour orange is native to

southern Vietnam, hence the Chinese connection. This tea has a light refreshing taste,

and can be served hot with or without milk or sugar. It can be used to make iced tea.

• English Breakfast

Twinings English Breakfast Tea was originally blended to complement the

traditional, hearty English breakfast, from which its name derives. Their refreshing and

invigorating flavor makes English breakfast one of the most popular black teas to drink

at any time or occasion - not just for breakfast. English breakfast can be enjoyed with or

without milk, sweetened or unsweetened - the choice is yours. English breakfast tea is a

rich and satisfying robust tea, traditionally blended with Kenyan and Assam black teas.

• Peppermint

For hundreds of years people have enjoyed herbal infusions. Peppermint tea

has been a favorite because of its distinctively refreshing aroma and taste.

185

Peppermint tea is naturally caffeine free and may be served anytime of the day.

Twinings Herb Teas are enjoyed for their light and delicate taste as well as their

relaxing and reviving properties. Twinings teas are blended in England.

• Earl Grey Lavender

Fair Trade certified. Choice Organic Earl Grey with Lavender owes its

flavorful foundation to the selected organic teas from India & Ceylon. These are

blended with Bergamot, A Mediterranean citrus, and then enhanced with the lightest

touch of lavender blossoms. the quintessential afternoon tea. Choice Organic Teas

are certified as organically grown by an independent third party. Every aspect of the

cultivation, handling and packaging is carefully inspected to insure the integrity of

this product from the gardens of origin to your cup. Choice Organic Teas come from

garden tended by traditional methods, without the use of chemicals. Conscious

practice of top soil management and weed control create a balanced environment to

alleviate any agricultural problems. Through diligent care of the environment, our

growers produce exceptional teas and herbs. Fair Trade guarantees fair wages for

workers, improving their opportunities for better healthcare, hosing and education.

By choosing Fair Trade tea, you are directly contributing to the livelihood of tea

growing communities. This Fair Trade tea is independently certified by TransFair

USA. USDA organic. Certified organic by QAI, Inc. The tea bags in this package

are made with unbleached natural fibers. A special environmentally-safe, high

barrier envelope protects the freshness and flavor of the tea.

• Darjeeling

For centuries people have enjoyed tea as an invigorating and refreshing

beverage. Today the natural, healthful properties of tea are being rediscovered.

Black tea and green tea naturally contain flavonoid antioxidants, which may help

protect the body from the damage caused by harmful free radicals. Twinings

186

Darjeeling tea is from the Darjeeling region of India, in the foothills of the

Himalayas. Darjeeling tea has a distinct, but delicate flavor, and is often referred to

as the Champagne of Teas. Darjeeling is great in the afternoon or as an elegant

accompaniment with lunch. Twinings tea is blended in England.

• Formosa Oolong

This auction is for a Vintage Twinings Formosa Oolong Tea from London

England. This is in good condition and comes from a smoke and pet free home.

Please check out my other vintage auctions along with another Twinings

(Blackcurrant ~NEW~) Tea and store items up on ebay this week. Thanks for

looking!

• Herbal Lemon

Twinings Lemon Twist herbal tea. Let me tell you that we're really missing

out because even the herbal tea blends are better than they are here.

Faithful readers also know that herbal tea has been a struggle over here. They're

usually some sweet, rosehip hibiscus mess with no character but that's not the case

with Twinings Lemon Twist. This tea has just the right mix of these ingredients:

18.7% lemon grass, and 18.7% lemon peel along with other herbs to give it the

glorious glow necessary to really be by appointment to her majesty Queen Elizabeth

II as the packaging says. If you find it, buy it.

**Price: Cup 50 Baht / Pot 65

There are two styles of Thai iced tea: with or without milk. Tea with milk is

called cha yen. Tea without milk is called cha dum yen.

• Thai Iced Tea with Milk/ Price = 85

187

• Thai Iced Tea without Milk/ Price = 80

Fruit Juices and Smoothies

Juice

Popular types include orange, apple, pineapple, grape, carrot and grapefruit.

They may be in single-serving bottles or poured from a larger container.

- Orange

- Pine apple

- Apple

- Carrot

- Coconut

**Price: 60 Baht/ Orange 75 Baht

Smoothie

Smoothies are usually a mixture of some kind of dairy (such as ice cream, milk

or yogurt) or a milk alternative (like soymilk) with fruit (either fresh or as a fruit

concentrate). Common fruit flavors include banana, strawberry, mango, peach and

mixed berry. Smoothies are occasionally topped with whipped cream or flavored syrup.

Sometimes, coffeehouses will replace fruit with coffee or espresso and add extra

flavors, like candy bars or flavored syrups.

- Orange

- Strawberry

- Pineapple

- Kiwi

- Banana

188

**Price: 110 Baht

Food

Table 4.3: Thai Food

Menu/ Price Description

Pad Thai

Price: 130 Baht

A dish of stir-fried rice noodles with eggs,

fish sauce, tamarind juice, red chilli pepper, plus

any combination of bean sprouts, shrimp, chicken,

or tofu, garnished with crushed peanuts, coriander

and lime, the juice of which can be added along

with Thai condiments. Pad Thai is one of

Thailand's national dishes.

Tom yam gung lemon grass soup with

prawns

(With Rice)

Price: 200 Baht

Tom yam kung, or spicy shrimp soup, is the

number one of the top ten Thai dishes loved by

foreigners, according to a recent investigation. And

in fact, it is one of the most favourite dishes for

Thai people as well. It is simply because it is so

delicious for its unique sour and spicy taste that

you will certainly need it more and more if you try

it just once.

Green Chicken Curry (With Rice)

Price: 160 Baht

Green Chicken Curry it a favored dish

from Central Thailand, and visitors to Thailand

love it because it not too spicy and easy on the

palet. A good meal for an evening dinner, here it is

cooked with chicken legs but you can use chicken

breast instead if preferred. I recommend corn fed

chicken, it has much more flavour and a softer

texture.

189

Fried Rice with pork/sea food

Price: 130/ 150 Baht

Simple local Thai food "Thai Fried

Rice with Prawns or Pork" or "Khao Pad

Goong" because quick and easy meal for

all to enjoy. Beautiful thing about fried

rice is that you can substitute prawns with

virtually anything in your pantry;

vegetables, beef, chicken or even plain.

Stuffed Omelet (With Rice)

Price: 135 Baht

One of delicious dishes in Thailand that isn't

spicy is "stuffed omelet" or "khai yat sai" in Thai.

It is a little tricky making the egg envelope. It

works best with a big wok and a gas flame. In the

ingredients pictured below, you can see carrots,

onion, minced pork, tomato, coconut milk, 4 eggs

and peas in the middle.

Seafood/ Pork in Gravy

Price: 150/ 135 Baht

Stir-fried noodle Seafood with Gravy

Sauce

Stir-fried noodle in Gravy Suce of

your Choice Pork, Chicken, Beef, Seafood

with Vegetable

Stir-fried pork with holy basil(With

Rice)

Price: 135 Baht

One of the most famous Thai dishes

around the world is this one, stir-fried pork

fried with chili and holy basil. You don’t have

to use minced pork, as variations include

chicken or beef. In Thai it is called moo pat

ga-prao. The last part refers to the basil. It is

quite simple to cook and the result is very

delicious.

Massaman Curry (With Rice)

Price: 150 Baht

Massaman is the Thai word for "Muslim",

which is the community to heartily thank for this

concoction of coconut milk, potatoes, roasted

peanuts, bay leaves, sugar, cinnamon, and tamarind

sauce. The meat of choice is often beef or chicken,

but because it's been embraced by the Buddhists,

pork can also be found.

190

Table 4.4: International Foods

Menu/ Price Description

American Breakfast

Price: 180 Baht

Generally includes most or all of the

following: two eggs (fried or poached), sliced

bacon or sausages, sliced bread or toast with

jam/jelly/butter, pan cakes with syrup,

cornflakes or other cereal, coffee/tea,

orange/grapefruit juice

English Breakfast

Price: 190 Baht

Two eggs the way you like, bacon,

sausage, hash brows and baked beans with

grilled tomato and mush room toast, coffee or

tea and juice

American Club Sandwich: The original

triple-decker sandwich

Price: 140 Baht

A layered sandwich that's an all-

American summertime special.

191

Tuna Sandwich

Price: 140 Baht

his grilled tuna sandwich is made

with rye bread, celery, onion, and

mayonnaise.

Spaghetti Chicken Sauce

Price: 150 Baht

Spaghetti sauce recipe with Italian

sausage and basil and tomato sauce and

paste. A spaghetti sauce recipe and links to

several others.

Spaghetti Meat Sauce

Price: 160 Baht

Our recipe for homemade meat sauce

for spaghetti, all of the flavor, a fraction of the

calories. Made in the slow cooker for

convenience and a pantry's worth of spices for

a low-fat and low-calorie healthy supper.

Spaghetti cream sauce

Price: 160 Baht

This easy spaghetti gets complex

flavor from a combination of mushrooms

(try a mix of cremini, shiitake, black

trumpet, portobello, and chanterelle),

cream, and a secret ingredient—tawny

port.

192

Coffee Bean

Ego coffee 250 gram Doi Chaang Coffee is a grade B Arabica. It is certified

organic, forest canopy grown, hand picked, fresh water processed, sun dried, hand

sorted and freshly roasted to ensure the highest possible quality for each cup of Doi

Chaang Coffee. Naturally low in caffeine, it has a complex and flavourful profile which

is enhanced and released through detailed cultivating, processing and roasting methods.

Price: 90 Baht per unit

Figure 4.2: Doi Chang Ego Coffee

Price of Our Shop: 150 Baht

193

Premium Italian Gelato Ice Cream

Pluto Ice Cream

The Pluto Ice Cream Company Ltd. was established in 2001 at Phi Phi Island.

From the beginning we used Carpigiani's machines: Labotronic 28/42 and Pastomaster

60 because we were aiming at a high quality product. It was obvious in our opinion that

all ingredients must be of the highest quality. We used Italian ingredients from the most

important Italian brands and - under the supervision of master Italian ice-cream experts

- we arranged recipes to enable our ice-creams to become acknowledged as the best

quality ones produced in Thailand.

In 2003 we bought more Carpigiani's machines (Labo 40/60 and Pastomaster 30)

and we began to obtain wholesale customers. In 2004 we came to the conclusion that

our main business should be the wholesale market and moved our production lab to

Phuket City, in the meantime we improved our sale outlets in Phi Phi reaching a total of

4 shops. Our decision of moving the machinery to Phuket proved a great idea because at

the end of 2004 the Tsunami totally destroyed the shops in Phi Phi.

2005 was dedicated to reconsidering our production: we produced dessert in

mono-portions (tartufo, cassata, semifreddo) and increased the number of ice-cream and

sorbet flavours.

In 2006 tourism returned to Phuket and this was the factor which enabled us to

obtain the best quality Hotels and Restaurants in Phuket as our customers.

At the same time we were award Health certification (OYO) as a results of

further improvements made in our laboratory. This prestigious certification also applies

to all our ice cream products

During this period we imported a special refrigerated truck for delivering our

product to customers. The truck received hygienic and sanitary certification as requested

by our “Starwood” and “Small Luxury Hotels” customers. At the end of 2006 we

improved our production power by purchasing some more machines: Carpigiani's

Labotronic 60/90 and 22007 was the “consolidation and expansion year” for the group

of our customers: we increased the territory, achieving more than 20 new Hotels in

194

Khao Lak and Krabi.

Starting from January 2008, we started a relationship of collaboration with a

company specializing in the distribution of food products. We have thus reached the

market in Bangkok, Pattaya and Koh Samui, increasing markedly our production. This

led us to take into account expansion of space dedicated to the laboratory. We thus have

bought the land, drawn up the project and started the work of building the new factory.

At the beginning of January 2010 the production moved to the new factory.

With the new complex we plan to further extend the type of our products, by

introducing new tastes (for example typically Italian variations) and new articles

(semifreddo mono-portions and ice cream cakes), to recruit new specialized personnel

and to improve the services offered to our customers.

Italian Gelato

Ice-cream is a delicious and nourishing food but to obtain the best result

advanced technological equipment is necessary, able to produce an ice-cream perfect for

the palate, but most important of all, hygienically safe. Pluto Ice Cream is extremely

experienced in this area guaranteeing results by using machines and equipment

produced by undisputed world leader in this sector: Carpigiani SPA in Bologna.

The process begins whit the pasteurization of individual fresh product (milk,

eggs, cream) which establishes the mixture that must then become ice-cream. In every

type of food bacteria are presents in a natural form. These multiply very quickly in a

temperature of between 15-20 °C and 50-60 °C. Below or above this temperature,

however, the bacterial proliferation is considerably slowed down. The aim of

pasteurization is to abolish the presence of bacteria in ice-cream.

During this phase the mixture is brought to a temperature of between 65 and 85

°C (depending on the ingredients the ice-cream is composed of) and then rapidly cooled

to a temperature of approximately 4 °C.

Parallel to the pasteurization of the ingredients, when the mixture is at a

195

temperature of between about 60 and 75 °C, the phase of homogenization is undertaken,

during this stage the fatty substances in the ice-cream are diminished and amalgamated

so that the product becomes more creamy. This operative cycle is completed within a

couple of hours at the maximum, after which the maturation phase begins whit the

mixture must be stirred rapidly continuously (whipped or whisked) and kept to the

temperature of about 4 °C.

The maturation facilities and increased absorption of the solid components

present in the mixture to obtain a thicker final composition and the ability to permit air

to enter more easily during the whipping or whisking phase. Maturation lasts for about

4-6 hours.

Whipping or whisking is the phase of the production process of ice-cream in

which it passes from a liquid stage into that of a solid paste. This transformation in

achieved thanks to the contemporary action of three elements:

• shaking

• cooling

• admitting air into the mixture.

During the whipping/whisking activity the mixture is rapidly brought to a

temperature from roughly 4 °C to about -15 °C. Fast reduction of temperature avoids the

solidification of water which would result in the formation of crystals of an undesired

large dimension: the ice-cream turns out "smoother" and less lumpy.

It is during this phase that the mixture solidifies forming a solid paste which kept in

continuous movement, englobing air and increasing volume developing into artisan

gelato.

The main difference between artisan gelato and industrial ice-cream is the way

in which air becomes incorporated in the mixture. In artisan gelato air is englobed in a

natural way during the stirring phase, thanks to the movement of the mixture during the

freezing stage.

On the other hand, in industrial ice-cream, air is insufflated in large quantities

into the mixture through a pump. This process of production allows the ice-cram to

double its volume (this is the reason that industrial ice-cream is sold according to

196

volume and not weight!) with the same procedure soft ice-cream, or American ice-

cream, appears softer and more voluminous regarding artisan gelato, even if its

organoleptic characteristics result of an inferior quality.

Varieties

Figure 4.3: Variety of Pluto Ice cream

SORBETTO

The sorbetto is a preparation composed of water, sugar, fruit juice and/or pulp

and infusions, to which milk or liqueur may be added by request.

197

GELATO

The base of fruit or cream is used with different ingredients added depending on

the two versions. The fruit version is made with milk and cream, sugar and fresh fruit;

the cream version however is prepared with milk, cream, egg yolk and sugar. Specific

ingredients are then added (chocolate, vanilla, pistachio, hazelnuts, etc.) that grant their

own characteristic taste to the gelato.

SEMIFREDDO

Presented in different forms (round, dome-shaped, mini-portions, tiny pieces,

etc.) requiring a process different from that of gelato.

The composition of semifreddo requires ingredients of a soft consistency, such

as whipped cream and Italian meringue, fruit purée, which are combines in layers to the

creamy foundation (egg, sugar, and other specific ingredients). This is normally laid

onto a base of sponge cake soaked with sugar syrup.

TARTUFO

A base of different gelato flavours placed in concentric layers in a half mould.

The combinations may be different:

* Creamy, in which the outer layer consists of chocolate gelato, pistachio or nuts

and the core is made of chocolate cream. Another variety exists with the addition

of crisp biscuit to the outer layer;

* Fruity in which the outer layer consists of lemon gelato, lemoncello or

strawberry and the core is a base of lemon cream or strawberry cream.

198

CASSATA SICILIANA

In a semispherical form. A covering of "semi-freddo" consisting of ricotta and a

mixture of candied fruit is presented on a base of chocolate gelato.

TIRAMISÙ

A layer of Savoiardo biscuit soaked with Illy coffee, covered with mascarpone

cream, topped with cocoa powder are the components of this splendid well-known

Italian dessert.

SOYA GELATO

This product is manufactured substituting milk and cream from animal origin

with soya milk. This gelato, produced in various flavours, is particularly directed

towards those who:

* Are intolerant of dairy products or cannot digest milky products;

* Sufferer from diabetes;

* Are vegetarian and animal rights activists, who choose only plant products.

There are many advantages to Soya Gelato: the low quantity of calories

compared to traditional gelato, the added fat is of vegetable origin therefore rich in

unsaturated fatty acids and absolutely absent of cholesterol and the sugar content is of a

low percentage and doesn't include lactose.

From January 2010 we will be taking advantage of our new premises by further

expanding our range of our products, introducing new flavors (eg more typically Italian

variations) and new items (Semifreddo single portion cakes and ice cream). We are also

increasing our staff numbers to offer these new services to our clients.

199

Figure 4.4: Transportation of Pluto Ice Cream

Price: 600 – 800 depend on taste

Our shop select premium Italian Gelato Ice Cream because it is the international

tastes which is appropriate with our main customer. We will choose the taste that the

customers like but in the beginning we will choose general taste and next we will add

more tastes.

Price: 1 Scoop/ 60 Baht

2 Scoop/ 105 Baht

3 Scoop/ 155 Baht

4 Scoop/ 205 Baht

5 Scoop/ 250 Baht

**Topping 10 Baht

Whipping 10 Baht

(Source: http://www.icecreamthailand.com, 2010)

200

Bakery

Figure 4.5: Kanda Bakery Shop

FAVOURITE CAKE 6 Tastes (40 Baht per Piece)

1. Brownie Banoffee

2. Choc Special

3. Mocha Almond Praline

4. Black Forest

5. White Choc Mousse Cake

6. Dark Choc Mousse Cake

CHEESE CAKE

1. Berry Cheese Cake

2. Strawberry Cheese Cake

3. London Cheese Cake

4. German Cheese Cake

5. Brownie Cheese Cake

201

CHOCOLATE CAKE

1. Soft Choc

2. Choc Special

3. Crazy Oreo

4. Black Forest

5. Black Vanilla Cake

6. White Choc Mousse Cake

7. Dark Choc Mousse Cake

8. Oreo Mousse Cake

FRESH FRUIT CAKE

1. Brownie Banoffee

2. Orange Cake

3. Lemon Cake

4. Orange Mousse Cake

5. Blueberry Cream Cake

6. Strawberry Cream Cake

COFFEE CAKE

1. Mocha Cino Cream Cake

2. Cafe Latte Cake

3. Mocha Almond Praline

4. Cappuccino Mousse Cake

TEA CAKE

1. Milk Tea Cake

2. Green Tea White Chocolate Mousse

202

3. Chiffon Green Tea

VANILLA FRESH CAKE

1. Vanilla Almond Butter Cake

2. Vanilla Fresh Butter Cream Cake

Manu Roll (20 per piece)

1. Orange Roll

2. Lemon Roll

3. Mocha Roll

4. Blueberry Roll

5. Strawberry Roll

6. Chocolate Roll

Cookie

1. Brownie Almond 2.5*2.5" = 28 Baht per piece

2. The $250 Cookie Recipe = 450/kg

3. Chocolate Chip piper Cookies = 400/kg

4. Double Chocolate Chipper Cookies = 400/kg

5. Cornflakes Cookies = 350/kg

6. Banana Nut Cookies = 350/kg

7. Peanut butter cookie = 350/kg

8. Ladyfinder = 450/kg

9. Graham Crackers = 380/kg

Manu Puff & PIE

1. Spinach croissant 100g/ 1 piece/ pack = 20 Baht

203

2. Danish Bacon 44g/ 1 piece/ pack = 20 Baht

3. Chicken Pie 70g/ 1 piece/ pack = 15 Baht

4. Red Pork Pie 64g...1 piece/ pack = 15 Baht

5. Coconut Tart/ 100g...1 ����/ pack = 20 Baht

Price of Our Shop: Cake 90 Baht per pieces

Roll 65 Baht per piece

Spinach croissant 65 Baht per piece

Danish Bacon 65 Baht per piece

Chicken Pie 65 Baht per piece

Coconut Tart 70 Baht per piece

Used Book or Secondhand Book

We will cooperate with Apple Book in Karon Beach which is the biggest

secondhand book in Karon beach and it is also wholesaler. We will buy the book from

this shop and sell in the same price. First time we will order 300 units which is:

Price: 45 Baht per units order 100 units

75 Baht per units order 100 units

140 Baht per units order 100 units

Price of Our shop: 45 Baht per units/ Sell 150 Baht

75 Baht per units/ Sell 180 Baht

140 Baht per unit/ Sell 250 Baht

204

Life Time

Most coffee machines are simple devices that include a reservoir for water, a

heating element for heating the water and keeping the water warm, tubing for carrying

the water from the reservoir to the drip maker, which flows into the coffee pot and a

warming plate. You simply fill the reservoir with water, the water then heats and flows

through its tubing and coffee of your choice into the pot after you switch it on.

Depending on your needs of accessories, everything else is extra options, such as milk

frothers and wands for whipping.

What to Look for in a Coffee Machine?

Depending on the type of gourmet coffee you prefer, the amount of time, you

plan in making coffee and your budget will determine your decision of which type of

coffee machine is best for your personal, business, dorm room, entertainment or RV and

camping needs. While considering the type of coffee machine you plan to purchase, you

should also consider any accessories or gadgets you might find useful when making a

nice steaming cup of coffee or a cold cup of coffee. Coffee machines also come in a

wide variety of styles and colors to match your decor and lifestyle.

• Espresso machine

• Cappuccino machine

• Coffee pods

• Roasting machines

• Grinders

You will want a coffee machine that offers easy cleaning to lengthen the lifetime

of your coffee machine no matter which type of coffee machine you select. Make sure

you follow all the instructions of the manufacturer.

Espresso and Cappuccino machines are available as manual makers, semi-

automatic or automatic espresso makers, which are less expensive and easy to use. They

205

are either, steam, piston, pump or air pressure driven. They are available for stove or

counter top, which range from automatic to semi and super-automatic.

Coffee pods are those single serving that are self contained and placed inside a

coffee machine or a coffee pod machine designed especially for the use of coffee pods,

using a pressurized brewing system, are quite popular. You can make your own coffee

pods or purchase them.

Roasting machines and coffee grinders are wonderful for creating your very own

special blends to enjoy by yourself or with your friends and loved ones, at home, office,

camping or anywhere else you want to relax. They come with various means of

functioning so you can make a great cup of coffee any time you get ready.

Problems with Coffee Machines

Some of the most common problems that might cause a coffee maker to quit

working are, a bad on and off switch or power cord, clogging within the tubing,

especially with calcium. The power cord and switch are replaceable, or simply replace

the coffee machine with a new one, and running some clear vinegar through the coffee

machine helps to cut down on calcium build-ups. However, at times the temperature

sensors or heating element may give out, when this happens it is best just to replace

your coffee machine. Perhaps at that time even consider a few extra options with your

new coffee machine.

(Source: http://www.coffeemachines101.com, 2010)

206

Coffee Recipe

OKey Espresso

A concentrated drink produced by forcing hot water through finely ground

coffee with an espresso machine for a brewed quantity of approximately 1 oz. A perfect

espresso is deliciously smooth, with full body, intense aroma and a velvety crema.The

classic espresso recipe: a single shot of espresso, approximately 1-1/2 ounces. Best

served in a pre-heated espresso cup.

OKey Espresso Macchiato

A single shot of espresso topped with 1-2 tablespoons of foamed milk right in

the espresso cup.

OKey Americano

Espresso diluted with hot water to drip coffee strength.

OKey Cappucino

Traditionally prepared with 1/3 espresso, 1/3 steamed milk and 1/3 foam in a

small cup typically 4-6 ounces in capacity. Cappuccino can be garnished with a light

sprinkle of ground chocolate, cocoa powder, cinnamon, nutmeg or vanilla powder. For

flavored cappuccino, simply add some quality coffee syrup such as Monin to taste.

OKey Cappucino Chiaro

The traditional cappuccino consists of an espresso, on which the barista pours

the hot foamed milk, resulting in a 2 cm (¾ inch) thick milk foam on top. Variations of

the mixtures are usually called cappuccino chiaro (light cappuccino, also known as a

wet cappuccino) with more milk than normal

207

OKey Macchiato

Ingredients

• 4 shots espresso (or 1 1/3 cups regular coffee)

• 1 cup heavy cream

• 1 cup chocolate liqueur

• Whipped cream, recipe follows

• Cocoa powder, for sprinkling

Directions

Pour each shot of espresso into a mug. To each mug, add 1/4 cup of the heavy cream

and 1/4 cup of the chocolate liqueur. Top each mug with a dollop of whipped cream and

a sprinkling of cocoa powder.

Whipped Cream:

1/2 pint heavy cream, chilled

1/2 teaspoon vanilla extract

1 tablespoons powdered sugar

Using an electric mixer, whip the cream in a large bowl until soft peaks form.

Add the vanilla and the sugar and continue to beat until it reaches the consistency of

whipped cream.

OKey Latte Macchiate

Latte macchiato is a coffee-based beverage, which literally means marked milk.

This refers to the method of preparation, wherein the steamed "pure" white milk gets

"stained" by the addition of espresso. It differs significantly from cafè latte in that only

½ (or less) of an espresso shot is being used.

208

The macchia is the little 'spot' of crèma being left on top of the milk to clearly

distinguish that is a latte macchiato and not a cafè latte, where the espresso traditionally

has been added before the milk, hence having no "mark".

• "Latte macchiato" can be correctly used to describe the Starbucks drink branded

as a "caramel macchiato". This drink is made by combining vanilla flavored

syrup with steamed milk and then pouring the espresso on top of the milk, then

topping it all off with caramel sauce.

• Other flavors are made using a similar method with a different flavored sauce

topping. The sauce then melts from the heat of the espresso directly under it and

seeps down into the drink.

OKey Mocha

Mix 1/3 part espresso to 2/3 part steamed milk, after dissolving cocoa or

chocolate syrup with the milk to taste.

OKey Latte

A double-shot of espresso mixed with approximately 5 ounces of steamed milk,

typically little or no foam is added to the top. Served in a large bowl type or glass cup 9-

12 ounces in capacity. For flavored latte, simply add some quality coffee syrup such as

Monin to taste.

OKey Hot Chocolate

Ingredient

1 box (about 14-qt.) powdered milk

1 1 lb. box powdered sugar

1 2-lb. box Nestle's Quik

1 7 or 8 oz. jar Coffee Mate

209

Mothod

In a large airtight container, mix ingredients together well until even colored and

no streaks remain. Cover tightly in a snap top container and keep away from humidity.

Store a plastic 1/4 or 1/3 measuring cup in the container for convenient measuring. To

prepare, measure out 1/4 or 1/3 cup of the mix and stir into 1 cup boiling water. Makes

many servings and keeps indefinitely. Variation: For extra rich hot chocolate, add 1/4

cup ground chocolate powder or unsweetened cocoa.

OKey hot Chocolate Caramel

INGREDIENTS

• 1/2 cup whole milk

• 1/4 cup heavy cream

• 5 ounces good-quality milk chocolate, coarsely chopped

• 3 tablespoons Caramel Sauce

INSTRUCTIONS

1. Combine milk and cream in a small saucepan over medium heat and cook until

simmering, about 4 minutes.

2. Add chocolate and whisk until completely melted, about 2 minutes. Whisk in

caramel sauce until incorporated. Serve immediately.

OKey Hot Milk

Ingredients

• 1 cup milk

• 1 teaspoon vanilla extract

• 2 tablespoons white sugar

210

• 1/4 teaspoon ground nutmeg

Directions

1. In a large mug, stir together the milk, vanilla and sugar. Heat in the microwave

on full power for 1 minute and 30 seconds. Stir in nutmeg, and serve hot.

OKey Iced Coffee

Ingredients

• 2 teaspoons instant coffee granules

• 1 teaspoon sugar

• 3 tablespoons warm water

• 6 fluid ounces cold milk

Directions

1. In sealable jar, combine instant coffee, sugar and warm water. Cover the jar and

shake until it is foamy. Pour into a glass full of ice. Fill the glass with milk.

Adjust to taste if necessary.

OKey Black Coffee Ice

Ingredients: 1 cup strong coffee or espresso ice cubes sugar or sweetener of

choice (optional) large piece of fresh lemon peel

Instructions: Use a vegetable peeler to remove a large strip of rind from a fresh

lemon. (You can use the insides of the lemon for something else). Rub the yellow side

of the peel around the rim of the glass. Stir the coffee and sweetener (if using) together

in the glass until the sweetener dissolves. Fill the glass with ice cubes. Twist the lemon

peel over the glass, releasing the lemon's essential oils into the coffee. Stir and enjoy!

211

OKey Iced Espresso

Mix a single espresso shot (cooled) with 2-3 teaspoons cocoa, 1/2 t vanilla

extract and 1-cup cold milk. Pour over ice in a tall glass and top with whipped cream.

OKey Iced Cappuccino

Ingredients

• 3 ounces espresso

• 6 to 8 ice cubes

• 3 to 4 ounces whole milk

• 3 to 4 ounces milk froth, steamed and foamed

Directions

Using an espresso bean grinder, grind some espresso beans to make 1 tablespoon of

ground coffee. Using a commercial espresso machine, put the 1 tablespoon of ground

coffee into the portafilter (the cupped handle) and tamp the grounds lightly. Insert the

portafilter into the machine and place your glass or cup underneath. Set the machine for

a double shot and turn it on to extract the espresso, which should be a thick golden

brown crema. Add 6 to 8 ice cubes to a mixing glass and pour the espresso over the

cubes. Stir to bring the temperature down. Using a spoon or strainer, strain the cooled

espresso into a serving glass, leaving the ice behind (if desired, ice can be included or

added later). Add the cold milk to the cooled espresso in the serving glass. Using the

steam wand of the espresso machine, steam the whole milk so that a tight, small-bubble,

microfoam is created. Using a spoon, add only the tight microfoam (about 3 to 4 ounces

or an amount equal to the other parts) to the milk and espresso. Serve without any

garnishes so as not to mask the delightful flavors. Serve immediately.

212

OKey Mocha

Ingredients

• 1 tablespoon chocolate syrup

• 1 cup double espresso or very strong coffee, hot

• 1/4 cup half and half

• 4 ice cubes

Directions

Stir chocolate syrup into hot coffee until melted. Transfer to a blender, add half and

half and ice cubes, and blend at high speed for 2 to 3 minutes. Serve immediately in a

tall, cold glass.

OKry Iced Caffe Latte

Ingredients

• 4 shots espresso (about 1 1/2 ounces each)

Directions

1/4 cup Cinnamon Simple Syrup, recipe follows

• 1 1/3 cups whole milk

• Crushed ice, for serving

• Special equipment: 4 small mason jars

Combine the espresso, flavored simple syrup, and milk in a small pitcher. Fill each

of the mason jars with crushed ice. Pour the latte mixture over the ice and serve

immediately.

213

OKey Frappe Cappuccino

• 18 to 22 ice cubes, crushed

• 7 ounces double-strength coffee, chilled

• 2 tablespoons granulated sugar

• 2 tablespoons flavored syrup of choice

• Whipped cream for garnish

Instructions

1. Combine ice, coffee, and sugar in a blender, blending until well-blended and

smooth.

2. Add syrup and blend.

3. Pour into large glass.

4. Add whipped cream for garnish.

OKey Frappe Mocha

Ingredient

4 cupschilled coffee

4 tbspinstant chocolate milk

1 1/2 cups milk

1/2 cup whipped cream

4 scoops vanilla ice cream

Pour chilled coffee, milk, and instant chocolate milk powder into a blender. Mix

together. Add whipped cream and ice cream, and blend together at 'frappe' setting. Pour

into a coffee mug. Garnish with whipped cream, nutmeg, cinnamon, or chocolate

shavings.

214

OKey Vanilla

1 (14 oz) can pure, unsweetened coconut milk or real milk

1/2 cup very strong brewed decaf coffee or decaf espresso

5 drops liquid stevia extract (more or less to taste)*

2 drops pure vanilla extract**

2 drops pure almond extract

optional - 1 organic free range egg yolk

1 cup crushed ice cubes

Place everything in a blender, blend well, pour into a tall glass, over more ice

cubes if you like, and serve with a straw.

*Omit the stevia if you prefer your drink unsweetened.

** The easiest way to measure out small liquid quantities is to use eye droppers type

dispensers. I keep my old bottles of tinctures with their eye droppers for using in other

applications, such as a recipe like this! You can purchase eye dropper dispensers at

many natural food stores or herb stores (if they don't carry them in stock, ask if they can

order a few for you - they're great to have around).

OKey Tiramisu

The tiramisu is a rich, tantalizing, and oh so luscious drink. Several liquers

combine effortlessly with vanilla ice cream to form a positively distinguished libation. I

came upon this recipe through a good friend who tends bar at a local restaurant, she was

kind enough to pass it along, and now I'm passing it along to you. Enjoy!

1 oz. Amaretto Liquer

1 oz. Kahlua Liquer

1 oz. Godiva White Chocolate Liquer

6 oz. Milk

3 to 4 Scoops of Vanilla Ice Cream

5 Ice Cubes

215

Combine all ingredients in a blender and blend until desired. Top with whipped

cream and white chocolate shavings :)

OKey Iced Chocolate

Ingredients

• 2 tablespoons cocoa

• 2 teaspoons cornflour

• 1/4 cup sugar

• 2 cups milk

Directions

1. 1 In a saucepan combine first 3 ingredients with a small bit of the milk, to form

a lump free paste.

2. 2 Add rest of the milk and bring to boil,.

3. 3 Remove and let cool.

4. 4 Refrigerate until chilled.

5. 5 Serve in a large glass with ice cream and whipped cream sprinkled with grated

chocolate.

6. 6 Can easily be double, tripled, etc.

Old Thai Tea - Cha Yen

Thai Tea is a real favorite in Thailand. When you buy Thai Tea on the street,

you normally get it in a small plastic bag with a straw. Since it's very easy to make it

just like you find in Thailand, you can avoid paying $3.50 to Starbucks.

1-2tablespoons Thai tea

1 tablespoon sweet condensed milk

1 tablespoon sugar

216

1 teaspoon milk

1 cup hot water

Add sugar and sweet condensed milk to a glass or cup. Put one tablespoon of

Thai tea to a tea sock. Place the tea sock directly above the glass. Pour hot water into the

tea sock. Set the tea sock aside. Stir until the sugar and sweet condensed milk are

dissolved. Add ice and top the tea with milk.

Cha Dum Yen - Cha Dum Yen

1-2tablespoons Thai tea

2 tablespoons sugar

1 cup hot water

Add sugar to a glass or cup. Put one tablespoon of Thai tea to a tea sock. Place

the tea sock directly above the glass. Pour hot water into the tea sock. Set the tea sock

aside. Stir until all the sugar is dissolved. Add ice.

Food Recipe

Prawn Pad Thai

Ingredients

• 200 g rice noodles

• 2 tablespoons canola oil

• 2 eggs, lightly beaten

• 1 tablespoon chopped ginger

• 2 large red chilies, chopped

• 25 medium green raw prawns, peeled,leaving just tail

• 1/4 cup lemon juice or lime juice

• 2 tablespoons fish sauce

• 1 tablespoon sugar

217

• 40 g bean sprouts

• 2 green onions, sliced

• 2 tablespoons chopped peanuts

Directions

- Place the rice stick noodles in a bowl and cover with boiling water.

- Allow to soak till soft.

- Drain and rinse with cold water.

- Heat 1 tablepsoon of the oil in a wok over high heat.

- Add the eggs, swirl, stir gently and cook until just set.

- Remove from the wok and set aside.

- Add the remaining oil, ginger and chilli to the wok and cook for 1

minute.

- Add the prawns and cook for 3 minutes or till they start to turn pinkish.

- Add the noodles, lemon juice, fish sauce and sugar and cook for another

3 minutes.

- Toss through the cooked egg, beansprouts and green onions/scallions.

- Serve IMMEDIATELY, sprinkled with the peanuts.

- You can add more peanuts if you like it crunchier.

218

Tom yam gung lemon grass soup with prawns

Ingredients

- 1/2 kilogram of medium-size prawn

- 1/2 kilogram of straw mushroom

- 20 pieces of slice young galangal

- 4 leaves of torn kaffir lime

- 9 pieces of cut lemongrass (3 cm per one piece)

- 5 grams of pound chili bird

- 1/2 cup of roughly chopped coriander

- 4 cup of chicken rib soup

- 1 teaspoon of salt

- 5 tablespoons of fish sauce

- 5 tablespoons of lime juice

Direction

1. Wash and clean prawns by remove its shell except shell at tail for

beautification.

2. Clean straw mushroom and cut it to 4 pieces of half up to its size.

3. Boil chicken rib soup then put lemongrass, galangal and prawn. Wait until

prawns are cooked about 4 minutes then put straw mushroom, kaffir lime leaves

and fish sauce. Put it down from the stove.

4. Seasoning with lemon juice and pound chili bird.

5. Decorated with chopped coriander and serve with warm rice.

Green Curry Chicken

219

Ingredients :

1 tablespoon Cooking oil

1 Chopped onion

2 tablespoons Green curry paste (ready made)

1 1/2 cups Coconut milk

1/2 cups Water

500 g Chicken thigh fillets, cut into bite-sized pieces

100 g Green beans, cut into short pieces

6 Kaffir lime leaves

1 tablespoon Fish sauce

1 tablespoon Lime juice

1 teaspoon Finely grated lime rind

2 teaspoons Soft brown sugar

1/4 cup Fresh coriander leaves

Direction :

• Heat the oil in a wok or heavy-based pan.

• Add the onion and curry paste to the wok and cook for 1 minute, stirring

constantly.

• Add the coconut milk and water to the wok and bring to the boil.

• Add the chicken pieces, beans and lime leaves to the wok, stirring to combine.

Reduce the heat and simmer for 15 to 20 minutes or until the chicken is tender.

• Add the fish sauce, lime juice, lime rind and sugar to the wok, stir to combine.

• Sprinkle with fresh coriander leaves just before serving.

• Serve with steamed rich

220

Pork Fried Rice

Ingredients

• 1 (6 ounce) boneless pork loin chop, cut into 1/2 inch pieces

• 1/4 cup finely chopped carrot

• 1/4 cup chopped fresh broccoli

• 1/4 cup frozen peas

• 1 green onion, chopped

• 1 tablespoon butter

• 1 egg, beaten

• 1 cup cold, cooked long-grain rice

• 4 1/2 teaspoons reduced-sodium soy sauce

• 1/8 teaspoon garlic powder

• 1/8 teaspoon ground ginger

Directions

In a large skillet, saute the pork, carrot, broccoli, peas and onion in butter until

pork is no longer pink. Remove from skillet and set aside. In same skillet, cook and stir

egg over medium heat until completely set. Stir in the rice, soy sauce, garlic powder,

ginger and pork mixture; heat through.

Prawn Fried Rice

Ingredients

- 2 Cup (Basmati) Rice

- 1 Tsp (grated0 Ginger

- 8 Oz (about 30 nos.) Prawn

- 1 Medium Carrot

- 8 French Bean

- 2 Green Chili

221

- 1 Small Onion

- To taste Salt

- A pinch Ajinomoto

- 4 Cups Water

- 4 Tbsp Cooking Oil

- 1 Tsp Soya Sauce

Direction

1. Use uncooked frozen shrimp without tail and head. Chop French beans. Peel

and cut carrot into 1.5 inch long thin strips. Chop onion and green chili finely.

2. Wash and soak rice in four cups of water for one hour.

3. Cook rice till almost done but not fully.

4. Heat oil and fry onion, grated ginger and green chili lightly. Add carrot and

beans and cook for three minutes.

5. Add shrimp and cook for two minutes, add cooked rice and salt. Fry for

fifteen minutes with stirring. Add Soya sauce and ajinomoto. Mix well. Serve hot.

Stuffed Omelet

Ingredients

- 2 eggs

- 4-5 tbsp. diced mushrooms, green peppers or cooked vegetables

- 1 onion finely chopped

- dash of grated cheese

- dash of pepper

- salt to taste

Direction

- Preheat frying pan on medium heat for 2 to 2 1/2 minutes.

- With the fingers, sprinkle a few drops of water on the pan. When the -

222

dance in little beads, pan is properly preheated.

- Break egg into a bowl and whip briskly with a fork.

- Add other ingredients, stir quickly and pour into preheated pan. Till the

pan, if necessary, to distribute the omelets evenly.

- Then heat to low and cook about 1-1/2 minutes or until the bottom of

omelets is firm and lightly browned.

- With wooden or plastic spatula, turn omelets over and cook 1 to 1 1/2

minutes

- Slip omelets out of pan into plate.

Thai Stir Fried with Holy Basil

Ingredients

• 1 lb boneless chicken thighs, coarsely chopped, or cut into small bite-size pieces

• 4-6 cloves garlic, finely chopped

• 2-3 shallots, thinly sliced (or substitute with 1/2 cup sliced onion)

• 2-3 tbsp peanut oil for stir-frying

• 2 tsp black soy sauce (the semi-sweet kind, siew dohm)

• 1-2 tbsp Thai fish sauce (nam bplah), to taste (Golden Boy brand is

recommended)

• 1 cup fresh Thai holy basil (bai gka-prow), or substitute with: 1/4 cup dried

holy basil, soaked to soften plus 1/2 to 1 cup fresh Thai sweet basil (bai horapa)

• 2 small kaffir lime leaves (bai ma-gkrood), very finely slivered (optional)

• 5-10 Thai chillies (prik kee noo), chopped and pounded with a mortar and

pestle; or 2-3 fresh jalapeno or fresno peppers, cut into large slivers

• Dash of ground white pepper

Preparation

Prepare the ingredients as indicated. Leave the fresh basil leaves whole; the flowers

may also be used. The dried holy basil will soften when soaked in tap water for 10-15

223

minutes. Pull off and discard the hard stems. Drain. Heat a wok until the surface is

smoking hot. Swirl in the oil to coat the wok surface. Wait a few seconds for the oil to

heat, then stir in the garlic, followed a few seconds later with shallots. Stir another few

seconds before adding the chicken. Stir-fry a minute or two, or until most of the chicken

has started to change color on the outside and is no longer pink. Toss in the chillies,

slivered kaffir lime leaves and reconstituted dried holy basil (if using). Sprinkle black

soy sauce over the mixture and stir-fry another 15-20 seconds. Then add fresh basil

leaves and fish sauce to taste. Stir and mix well. Stir-fry another half a minute, or until

the basil is wilted and the chicken is cooked through. Sprinkle with white pepper. Stir

and transfer to a serving dish, or spoon directly over individual plates of plain steamed

rice.

Massaman Curry

Ingredients (serves 4)

• 2 tablespoons vegetable oil

• 650g gravy beef or chuck steak, trimmed

• 1 cup coconut cream

• 2 tablespoons massaman curry paste (see related recipe)

• 1 cup coconut milk

• 1 cup chicken stock

• 1/2 cup unsalted roasted peanuts

• 2 medium potatoes, peeled, cut into 3cm pieces

• 1 cinnamon stick

• 2 bay leaves

• 5 cardamom pods, lightly crushed (see note)

• 2 tablespoons brown sugar

• 1 tablespoon tamarind concentrate (see note)

• 1 tablespoon fish sauce

• steamed jasmine rice, to serve

224

Method

1. Heat oil in a large saucepan over medium-high heat until hot. Add beef. Cook,

stirring constantly, until evenly browned. Transfer to a plate. Add 2 tablespoons

coconut cream to pan. Cook over medium heat for 20 seconds or until hot. Add

curry paste. Cook for 1 minute or until aromatic.

2. Return beef and juices to pan. Add coconut milk, stock, peanuts, potatoes,

cinnamon stick, bay leaves, cardamom pods, sugar, tamarind concentrate, fish

sauce and remaining coconut cream. Stir to combine.

3. Reduce heat to low. Cover and simmer, stirring occasionally, for 1 1/2 to 2 hours

or until beef is tender. Serve with rice.

American Braakfast

Ingredients

1 ½ lb ground pork

¾ tsp salt

½ tsp freshly ground pepper

1 tsp dried sage

1 tsp dried marjoram

Direction

1) In a large bowl, combine the pork, salt, pepper, sage and marjoram and mix well with

a fork. Knead the sausage into a large ball. (Taste for seasoning by pinching off an

olive-size piece of sausage and placing it in a small nonstick skillet. Cook the small

piece over medium heat, turning often, until it's no longer pink in the center, 3 to 5

minutes. Taste, then add additional salt, pepper or herbs to the sausage mixture as

desired.)

225

2) Cover the bowl with plastic wrap and chill the uncooked sausage mixture for 1 hour.

Using your hands, form the meat into 24 uniform balls, then flatten each into a patty.

3) Place 8 of the patties in a large nonstick skillet and cook over medium heat until

browned and cooked through, about 5 minutes per side. Drain on paper towels, repeat

with the remaining patties and serve.

Step 1: You will need

• 2 sausages

• 100 g mushrooms

• 2 Rashers bacon

• 2 eggs

• 150 g baked beans

• vegetable oil

• ketchup or brown sauce

• 1 knife

• 1 chopping board

• 1 wooden stirring spoon

• 1 spatula

• 1 small saucepan

• 2 frying pans

• Serves:

• 1

• Preparation Time:

• 5 minutes

• Cooking Time:

• 15 minutes

1. Step 2: Sausages

We start with our sausages. Quality is crucial here - go for ones with a high

percentage of pork and natural ingredients.

Place them in a frying pan with preheated vegetable oil.

They'll take the longest to cook of all our ingredients, around 12 minutes, with

regular turning required. They make a lovely, reassuring sizzle as they fry.

226

2. Step 3: Mushrooms

Wash and slice the mushrooms. Add them to some preheated vegetable oil in a

separate frying pan, then stir and toss them on a gentle heat for about 5 minutes.

After that, consign them to a warm plate until the rest of the fry-up is finished,

which won't be long now. Because things are really starting to hot up.

3. Step 4: Bacon

Bacon next; when the sausages have been frying for 8 minutes, add the rashers

to the same pan and turn them every minute or two.

4. Step 5: Baked beans

As soon as your bacon's under way, the baked beans go on the stove. They

require a gentle heat and plenty of stirring.

Now it's a total juggling act!

5. Step 6: Eggs

While you keep an eye on all that sizzling and bubbling, replenish the other

frying pan with oil and put it on a medium heat in readiness for the eggs.

Keep turning the bacon and stirring the beans; then crack one egg... and two,

into the empty frying pan. Transfer it to the hottest plate on the stove if

necessary - keep stirring those beans! And we're nearly done.

The final touch is to get your spatula and splash hot oil over the eggs until the

yolks go opaque. This is a sure sign that they're cooked properly.

And when they're done, the whole meal is done.

227

6. Step 7: Serve

Add it all to the plate with the mushrooms on and get ready for the Full English

experience.

Try a little tomato ketchup or brown sauce for the finishing touch to the perfect

fried breakfast.

American Club Sandwich

Ingredients

• Bread, toasted -- 3 slices

• Mayonnaise -- 3 tablespoons

• Chicken breast, cooked and thinly sliced -- 1/4 pound

• Tomato -- 3 to 4 slices

• Cooked bacon -- 3 to 4 pieces

• Lettuce -- 1 leaf

Method

1. Spread the mayonnaise on one side of each of the slices of bread.

2. Spread the sliced chicken on one of the slices of bread. Top with another slice of

bread.

3. Lay the tomatoes over the second slice of bread. Top with the bacon slices and

the lettuce. Place the last slice of bread on top of that.

4. About 1-inch in from each of the sides of the sandwich, insert a long toothpick.

Carefully slice the sandwich on the diagonal into 4 triangles and serve with a

side of potato chips.

228

Tuna Sandwich

Ingredients:

• 6 to 7 ounces white tuna, drained

• 1 rib celery, finely chopped

• 1 hard-cooked egg, peeled and chopped

• 3 tablespoons mayonnaise

• 1 tablespoon finely chopped dill pickle

• salt and pepper, to taste

• 1 to 2 tablespoons grated or finely chopped onion, optional

Spaghetti Chicken Saurce

Ingredients

• 1 (16 ounce) package uncooked angel hair pasta

• 3 tablespoons olive oil

• 4 skinless, boneless chicken breast halves - cut into strips

• 2 tablespoons chopped garlic

• 2 tablespoons dried basil

• 2 tablespoons Cajun-style blackened seasoning

• salt and pepper to taste

• 10 roma (plum) tomatoes, diced

• 2/3 cup crumbled feta cheese

Directions

1. Bring a large pot of lightly salted water to a boil. Add pasta and cook for 5 to 8

minutes or until al dente. Drain.

2. Heat olive oil in a large skillet over medium heat. Add chicken pieces, and cook,

stirring until browned on the outside. Stir in the garlic, basil, Cajun seasoning,

salt, and pepper, then mix in the tomatoes. Cook until tomatoes are semi soft,

229

and chicken is cooked through. Toss with pasta, and serve with crumbled feta

cheese on top.

Spaghetti Meat Saurces

Ingredients

3 tablespoons olive oil

1 pound beef ground

1 pound pork ground

1 each onion chopped

1/2 each green bell pepper chopped

3 cloves garlic minced

5 cups tomatoes, canned crushed

1/4 cup tomato paste

1 tablespoon chili powder

2 teaspoons basil leaves - ground

1/2 teaspoon cloves ground

3 each bay leaves

2 cups chicken broth

1/2 teaspoon salt

1/4 teaspoon cayenne pepper

Directions

Heat olive oil in a large skillet over medium-high heat. Add beef, pork, onion,

green pepper, and garlic and sauté until browned, about 10 minutes. With a slotted

spoon to drain off the fat, place the sautéed ingredients in a 4 quart saucepan. Add the

remaining ingredients and mix well. Slowly bring to a boil, reduce heat, cover, and

simmer for 2 hours.

230

Spaghetti Cream Saurce

Ingredients:

• 1 28 oz. can store-bought spaghetti sauce (or homemade)

• 1/2 cup heavy cream

• 1/4 cup grated Parmigiano-Reggiano cheese

• 2 Tbsp. chiffonade of fresh basil (thin little strips)

Preparation:

1. Pour spaghetti sauce into a heavy saucepan. Heat over medium heat until just

starting to bubble around the edges.

2. Add cream. Reduce heat to medium-low and let simmer 15 minutes.

3. Stir in cheese.

4. To make a chiffonade, roll stack a few fresh basil leaves on top of each other.

Roll up tightly like a cigar. Slice from the short end to make strips. Sprinkle on

top of pasta for garnish.

4.1.2 Service Process

When the customer entry to our shop, the staff will say greeting with good

welcome, then customer can order the favorite menus which we provide to them. We

sure that our staffs can provide high quality of good service when the customer entry to

our store because we have to train our staff well and we are focus on the service mind

that we want the customer impress with everything of our shop because it can cause

word of mount to gain our customer and they will come back to visit our shop again and

again.

There are Internet Café which are 3 computer cases and Free Wi – Fi for our

customers that they can enjoy with their searching. The internet café fee:

Price: 1 hour = 100 baht

231

4.1.3 Location

OKey Coffee is located on Karon Beach, Patak Road, T. Karon, Muang District

and it is also in front of the beach and near Karon Circle Traffic which it is the main

road of the beach. There are many tourists there. Our coffee store is on right hand side

of Karon Circle traffic which are the orange building on corner. It is on the way to

Patong beach and it is very easy to see.

Figure 4.6: Map of Karon Beach

232

(Source: http://mapsphuket.com, 2010)

Figure 4.6: Karon Circle Traffic and Environment

This is building of our shop.

233

(Source: Photo on 06 May 2010 )

Figure 4.7: The Building of OKey Coffee

234

235

Figure 4.8: Environment around Building

(Source: Photo on 06 May 2010)

OKey coffee rent the Green Room of building which front width 10 M, long 5

M. It is on the second floor of the building. The price is 20,000 Baht per month which

this price set by the Karon Municipality of Phuket because this building is own by

government.

236

4.1.4 Facility Layout

OKey Coffee devide into inside and outside store.

Pattern outside the Store

Figure 4.9: Pattern Out side the Store or Environment

We provide out side atmosphere to impress the view of the beach for our

customer that there are 8 chairs like mini bar a long shop 10 M, sitting in front of the

beach so the customer will enjoy to drink our coffee with good surrounding. There are

237

black broad that write about our introducing menus or special information of our store

for customers.

Pattern inside the Store

Figure 4.10: Door

Figure 4.11: Counter Bar Area Zone

238

This is our counter bar zone that there are coffee equipment, ice cream freezer,

bakery display cabinet and chair to provide the customers.

Figure 4.12: Secondhand Book Zone

239

Figure 4.13: Sofa and Magazine Corner

Figure 4.14: Internet Café Zone

240

Figure 4.15: Decoration of Store

241

Figure 4.16: Toilet Room

It is next to sofa corner.

Figure 4.17: Kitchen Room

242

It is be hind the counter zone counter.

4.1.5 Machine/Tools/Equipment

Decoration Tool and Equipment

Figure 4.5: Decoration Tool and Equipment

Decoration Tool and Equipment Description

Telephone

PRICE: 990 Baht

PANASONIC KX-TSC11MX.Single

phone call. Displays the name and number to

call.Button Navigatar. Add ease of use.Screen

LCD 2 line 16 the main story.50 number

memory with 2 colors.1 year warranty.

Air ConditionerHITACHI RAS-

S24CE

PRICE: 39,990 Baht

(Source: http://

www.phuketbranches.com)

• Air Wall Type

• Size 23700 BTU

• Disinfection of bacteria with light & UV

• Nano Titanium filter discs eliminate bacteria

and odor quickly

• Speed Cool cooling system, accelerate faster

• Silent Cool system noise reduction

• 4-way air distribution system

• Panel cooling large increases in thermal efficiency

• Label low fiber 5

• Warranty 1 year if manufacturing defects

Plug

PRICE: 250 Baht

• Size 3 M

243

Television

PRICE: 15,990 Baht

- Size 32

Book Self

PRICE: 3,000 Baht

Cabinet

PRICE: 1,600 Baht

- Size 1.20 m

Table Set

PRICE: 7,999 Baht

- Table 1 unit 105 x 74 cm

- Chair 4 units 50.5 cm x 45.5 cm x 86.5 cm

- Brown color

Bar chair

PRICE: 3,200 Baht

- Oak wood

- Height: 77 cm

- Size: 55x44xH109 cm

244

Computer: HP Pavilion P6383L

Price: 21,840 Baht

(Source: www.pantipcity.com, 03 May

2010)

- Intel® Core™ 2 Quad processor Q9300 -

2.5 GHz, 6MB L2 Cache, 1333MHz FSB, EM64T,

Execute Disable Bit, EIST"

• DVD±RW/±R Super multiDrive with

Lightscribe Technology, Double Layer (8.5GB)

• 16X DVD±RW/±R Drive, 4GB RAM DDR3

up to 4GB with 1066MHz FSB RAM"

• Integrated Intel High Definition Audio, 5.1

Surround Sound Ready

• nVidia GeForce GT220 PCI-Express Graphics

card 1GB dedicated allocated by windows 7 up

to 2303MB with HDMI and DVI

capabilities

• Integrated 10/100 Base-T Ethernet, 15 in 1

media reader

• 6 USB 2.0 Port (2 Front 4 Rear)

• 1 PCI Express(x16 ) ,2 PCI Express(x1) and 1

PCI

• HP Deluxe Multimedia keyboard, Optical

Scrolling Mouse

• FreeDOS, PC Doctor program

preloaded

• 1-year limited on-site warranty

• HP Pavilion 20" LCD with speaker

Sofa:

BOLONA

PRICE: 22,900 Baht

- Brow Coulor

- Size 315*210*145 cm

245

Computer Table

Price 2,250 baht

• Size 80x60x75 cm

Computer Chair

Price 1,750 baht

Logitech Webcam C500 1.3MP

Video/5MP Photo (Interpolated)

USB 2.0 Webcam w/Built-in

Microphone & Laptop LCD Clip-

On

Features/Specifications:

• Logitech Webcam C500 1.3MP USB 2.0

Webcam

• General Features:

• Color: Black

• Hi-Speed USB 2.0 certified

• 1.3 megapixel sensor

• Photo resolution: 8 megapixel (interpolated)

• Video recording at 1280 x 1024

• Built-in Microphone with Logitech RightSound

technology

• Logitech Video Effects

• Up to 30 frames per second

• Broad IM compatibility (Skype, Windows Live

Messenger, Yahoo! Messenger, AIM, and

246

Price 999 baht

more)

• Snapshot button for capturing photos

• Universal clip fits notebooks, LCD or CRT

monitors

• 6-foot cable length

• Compatible with Microsoft Windows XP (SP2

or higher), Windows Vista, or Windows 7 (32

& 64-bit)

• Warranty 3 months

Router Wireless

Price 1,350 baht

- D-Link Wireless Router 54Mbps 4 Ports UTP 10/100

Mbps DSL-2640T

• Standards: IEEE 802.3/3u, IEEE 802.11b/g

• Data Rate: Up to 54Mbps

• Security: Up to 256-bit WEP, WPA

• Ports: 1x 10/100M WAN, 4x 10/100M LAN

• Features: Combined Wireless Router and

ADSL Modem Solution, Network Security with

Integrated Firewall Features, Up to 150x Faster

Than Dial-Up Modems

• Warranty: 3 Years

Black Board

Price 1,000 baht

247

Coffee Machine/ Tool/ Equipment

Table 4.6: Coffee Machine/ Tool/ Equipment of OKey Coffee Store

Coffee Machine/ Tool/Equipment Description

Coffee Brewing Machine: La

Marzocco’s GB/5 AV- 3 Group

PRICE: 460,000 Baht

- 3 groups

- Height (x)cm/in. 47.5/19

- Width (z) cm/in. 47.5/19 95/371/2

- Depth (y) cm/in. 62.2/241/2

- Weight kg/lbs 74/163

- Voltage VAC 200 Single/Three Phase

220 Single/Three Phase 380 Three Phase

- High Wattage elements 6100

- Steam Boiler capacity liters 11

- Coffee boiler capacity liters 5

• Dual-boiler technology and saturated brewing

groups available:

• Stainless steel boilers & brewing groups

• PID temperature control (proportional integral

derivative)

• Brew water pre-heating system

• Multifunction keypads and digital display (pls

see left picture)

• Customized steam valve with adjustable

steam flow

• Omni-directional stainless steel steam wands

• Hot water economizer

• Solid stainless steel housing and base

• High wattage heating elements

• Available automatic (AV), semi- automatic

(EE) and mechanical paddle (MP) (for latter

option see specific brochure) Options

248

(Source: http://www.boncafe.co.th)

• High base (for larger cups sizes x=

+2,5cm./1in.)

• High legs (x= +7,5cm./3in.)

• Cup warmer

• Auto steam

• PortaflonTM kit with coated portafilters

and steam wands

• Barista lights

Coffee Grinder: Compak K6 Grinder

Professional Barista (WBC)

PRICE: 29,000 Baht

(Source: http://www.hillkoff.com)

The grinder built for the professional

barista who demands a perfect grind with

performance and agility.

- Motor power (w): 320

- RPM: 1250

- ø Grinding disc (mm): 64

- Production (lb/h): 23-27

- Hopper capacity (lb/kg): 3.75/1.7

- Height x width x depth (in/mm):

- 25x8.3x14.4/635x210x365

- Special doser for competition.

Tamper: CAFELAT TAMPER –

Royal Red

So-called because of the "crown" on the

top, the Royal is our premium tamper featuring a

combination of different materials. The lower

portion of the handle may be rubber or wood,

whilst the top portion is always satin brushed

aluminium.

249

PRICE: 1,550 Baht

(Source: http://www.hillkoff.com)

Material : Rubber and Stainless Steel

Height incl. base : 90mm

Colour options : Red

Product Weight : 350g with a 58mm base

Packaging : 1 complete tamper per box

Blender: Blendtec Smoother

PRICE: 50,000 Baht

The Legendary Performer

For years the Smoother has set the standard in

blending frozen drinks. The Smoother is still the choice of

many of the world's leading beverage retailers. No

blending chore is too tough for the Smoother. The

Smoother was designed with you in mind. There is no

need to purchase a different machine if you change the

layout of your counter. The Smoother combines power

with intelligence and beauty.

More Power The Blendtec Smoother Blender ™

delivers 50 percent more power than other commercial

blenders. Hard ice cream, big ice cubes, frozen

fruit...bring 'em on! More power means less blending time

and faster delivery to your customer.

Versatility

The Blendtec Smoother ™ was designed with you in

mind. No need to purchase a different machine if you

change the layout of your counter. Put the Blendtec

Smoother ™ anywhere it's versatile.

Attractive, Functional Design

The Blendtec Smoother ™ is a designer's ideal: low

profile, functional, and space-saving. The jar is half the

weight of other jars, stackable, and can be personalized

with your company logo. The lid was designed to require

little effort--easy on and easy off.

Features

A heavy-duty 13, 15, 18, or 20 AMP motors. The most

250

(Source:

http://www.espressofriend.com)

powerful motors available.

GE Lexan® Jars.

Liqid Crystal Display (LCD) reports cycle counts and

helpful diagnostics.

Acrylic sound enclosure offers bright, clear, 360°

visibility.

Footprint Dimensions

Above-counter placement: 9"w X 9"d X 17"h

In-counter placement: 9"w X 9"d X 11" h

Shipping size and weight:

Box dimensions:30"x14"x13.5"

Weight: 30 lbs.

Knockbox: CAFELAT KNOCKBOX

PRICE: 1,500 Baht

(Source: http://www.hillkoff.com)

Material : Stainless Steel and rubber

Height incl. base : 16cm Diameter

Colour options : Black

Product Weight : 1200g

Packaging : 1 complete knockbox and 1

extra rubber bar per box.

*** Includes: 1 extra knock bar for future

replacement

251

Measuring Cup: Anchor

PRICE: 999 Baht

(Source: http://www.hillkoff.com)

3 Piece Set:

• Anchor Hocking Clear Glass

• 3 Piece Open-Handle Measuring Cup Set

• 8 oz., 16 oz., and 32 oz. Measuring Cups

• Red Decoration

• Gift Boxed

Pitcher: TIAMO PITCHER

PRICE: 999 Baht

(Source: http://www.hillkoff.com)

- Capacity : 700 cc

- Material : Stainless Steel and Milk Frothing

Tamper Hanger

PRICE: 300 Baht

(Source: http://www.hillkoff.com)

• Material : Plastic and Rubber

• Colour options : Black

• Product Weight : 60g

• Packaging : Retail gift packaging with

EAN 13 barcode

252

Tamping Mat Corner

PRICE: 550 Baht

(Source: http://www.hillkoff.com)

Material : Rubber

Height incl. base : 26cm (W) at the back 22xm

(W) at the front and 21cm (D)

Colour options : Black

Product Weight : 570g

Packaging : 1 mat per box

Cream Whipper or Whipped Cream

Maker: Whip It

PRICE: 2,600 Baht

(Source: http://www.hillkoff.com)

- Cream Whipper, whip – it

- Size: 1 litter for

- Material : High quality Aluminum

Cooking and Frothing Thermometers

PRICE: 950 Baht

(Source: http://www.hillkoff.com)

- Frothing thermometers 24 V

- 10 minutes frothing

253

Whip Cream Nozzle

PRICE: 950 Baht

(Source: http://www.hillkoff.com)

- Club shape

Espresso Machine Group Head

Cleaning Brush

PRICE: 350 Baht

(Source: http://www.hillkoff.com)

- Size: 7.25 quot

- Material : Stan less

Grinder Cleaning Brush

PRICE: 220 Baht

(Source: http://www.hillkoff.com)

Cafiza Espresso Machine Cleaner

Powder

254

PRICE: 690 Baht

(Source: http://www.hillkoff.com)

Checker

Size: 20 onz

Material: Stand less

PRICE: 1,250 Baht

(Source: http://www.hillkoff.com)

- Size: 20 Oz

- Material: Stan less

Beverage Mix Picher

Size: 20 onz

Material: Stand less

PRICE: 225 Baht

(Source: http://www.hillkoff.com)

Size: 10 Oz

Material: Stand less

Beverage Mix Picher

Size: 20 onz

Material: Stand less

PRICE: 300 Baht

(Source: http://www.hillkoff.com)

Size: 16 Oz

Material: Stand less

255

Beverage Mix Picher

Size: 20 onz

Material: Stand less

PRICE: 390 Baht

(Source: http://www.hillkoff.com)

Size: 32 Oz

Material: Stand less

Milk Jigger

Size: 20 onz

Material: Stand less

PRICE: 90 Baht

(Source: http://www.hillkoff.com)

- Size: Small

- Size: Medium

- Size: Large

Cocoa Mill

Size: 20 onz

PRICE: 145 Baht

(Source: http://www.hillkoff.com)

- Size: 296 ML (10 Oz)

- Height: 10 cm

- Material: Stan less

Sugar Sprinkle

Size: 20 onz

Material: Stand less

PRICE: 290 Baht

(Source: http://www.hillkoff.com)

Material: Stand less

256

Sprinkle

Size: 20 onz

Material: Stand less

PRICE: 35 Baht

(Source: http://www.hillkoff.com)

- Cacao, cinnamon Sprinkle

Topping Bottle

Size: 20 onz

Material: Stand less

PRICE: 30 Baht

(Source: http://www.hillkoff.com)

Size: 700 ML

Material: Plastic – Grade A

Topping Bottle

Size: 20 onz

Material: Stand less

PRICE: 70 Baht

(Source: http://www.hillkoff.com)

Size: 1 – 2 Oz

Coffee Bean Spoon

Size: 20 onz

Material: Stand less

PRICE: 50 Baht

(Source: http://www.hillkoff.com)

Size: 7 g

257

Coffee Powder Spoon

Size: 20 onz

Material: Stand less

PRICE: 100 Baht

(Source: http://www.hillkoff.com)

Milk Frothing Spoon

Size: 20 onz

Material: Stand less

PRICE: 49 Baht

(Source: http://www.hillkoff.com)

Size: 8 g

Tea Spoon

Size: 20 onz

Material: Stand less

PRICE: 25 Baht

(Source: http://www.hillkoff.com)

Coffee Spoon

PRICE: 720 Baht

- Width: 2.5

- Length: 11.6

- 12 units (pack)

258

Syrup Pump

Size: 20 onz

Material: Stand less

PRICE: 150 Baht

(Source: http://www.hillkoff.com)

- For standard bottle 750 ML

Coffee Filter Paper Box

Size: 20 onz

Mat: Stand less

PRICE: 80 Baht

(Source: http://www.hillkoff.com)

Straw Box

Size: 20 onz

Mat: Stand less

PRICE: 850 Baht

(Source: http://www.hillkoff.com)

- Size: Standard

- Material: Wood

Espresso Coffee Cup

PRICE: 35 Baht

(Source: http://www.sairungdesign.com)

- Height: 56 mm / 18 mm

- Width: 5 mm/ 110 mm

- Water Goblet 2.5 Oz (70 ml)

259

Coffee Cup

Size: 20 onz

Mat: Stand less

PRICE: 50 Baht

(Source: http://www.sairungdesign.com)

- Height: 7.8 cm

- Width: 8.5 cm / 15 cm

- Water Goblet 248 ml

Iced Beverage

Size: 20 onz

Mat: Stand les

PRICE: 30 Baht

(Source: http://www.sairungdesign.com)

- Height: 15 cm

- Width: 7.55 cm

- Water Goblet 14 Oz (405 ml)

Smoothie Glass

Or Fruit Juice

Size: 20 onz

PRICE: 115 Baht

(Source: http://www.sairungdesign.com)

- Height: 16.6 cm

- Width: 6.4 cm

- Water Goblet 15 Oz (425 ml)

Ice Cooler

PRICE: 15,000 Baht

(Source:http://www.mr-stainless.net)

Material: Stand Less

260

Computer: HP ap5000 All-in-One

POS System

PRICE: 6,599 Baht

261

262

263

264

265

Printer

Price: 7,095 Baht

Epson's TM-U220: TM-U220A, TM-

U220B, TM-U220D printers are compact,

reliable and fast, and offer all the easy-to-use

features important to the retail, restaurant and

hospitality industries. All three printer models in

the Epson TM-U220: TM-U220A, TM-U220B,

TM-U220D series are optimized for high-speed

throughput so customer receipts and kitchen orders

print faster than ever. For maximum efficiency, the

TM-U220 A (with journal take-up and auto-cutter),

TM-U220 B (with auto-cutter only) and TM-U220

D (no options) all offer drop-in paper loading and

two-color, black and red printing to highlight

special offers and print more visible logos, and an

adjustable paper width feature that allows you to

use 58, 70 or 76 mm paper rolls for more flexibility

and greater cost savings.

Coffee Shop POS Systems and Coffee Shop Software

0

266

Price: 120,000 Baht

(Source: http://posnation.com, 2010)

Ice Cream Machine/ Tool/ Equipment

Figure 4.7: Ice Cream Machine/ Tool/ Equipment

Ice Cream Machine/ Tool/Equipment Description

Ice-Cream Dipper

PRICE: 42,000 Baht

(Source:

http://www.biggelato.plazathai.com)

- Ice-cream Freezer Ic 08;

- Size: 80 x 75 x 90 cm. 8 trays for stock,

- 20 Celsius for its temperature

Ice-Cream Dipper

Size: 20 onz

PRICE: 300 Baht

(Source:

http://www.biggelato.plazathai.com)

- Size: 20/ 70 g/ 4 Oz

267

Spoon

Size: 20 onz

PRICE: 173 Baht

(Source:

http://www.biggelato.plazathai.com)

- Stand less Steel

Spoon

Size: 20 onz

PRICE: 48 Baht

(Source:

http://www.biggelato.plazathai.com)

- RW482 Plastic Tray [Brown] 29 x 42.3 x 2.5

cm.

Sunday Glass

Size: 20 onz

PRICE: 678 Baht

per Deozen

(Source:

http://www.biggelato.plazathai.com)

268

Kitchen

Table 4.8: Kitchen Machine/ Tool/ Equipment

Machine/ Tool/Equipment Description

Kitchen sink cabinet

Price 5,800 baht

• Tea color

• Size 1.50 m

Big Glass

Size: 20 onz

PRICE: 58 Baht

(Source:

http://www.biggelato.plazathai.com)

- 4 inches

269

Refrigerator Toshiba GR-MG41KD

Price 17,190 baht

• 12.4 queue

• Hybrid Guard System consists of the system

• UV Fresh Guard with LED lighting adding to the

fresh

food and clean more

• Cool Air Wrap distributed cooling thoroughly

• Hybrid Plasma System eliminates odor and

bacteria

• Beautiful art glass panel doors

• Rack glass (Tempered Glass Shelf)

• Design a single Press-handed grip beautiful

capture

Insolated container of hot water

(SANYO EHM981X)

Price 680 baht

• Containing 2.5 liters

• Can pour water levels

• Easy to use

Microwave SHARP R-247

Price 2,818 baht

• 22 liter

• working with microwave

• Electronic control with a DIGI-ANA that

• Button light shows scheduling a LIGHT-

UP DIAL-time visibility

• Set the cooking time from 15 seconds to

30 minutes and choose a heat level 5

270

PANASONIC SR-MM18N

Price 2,990 baht

• 825-watt 10-cup rice cooker with

advanced fuzzy-logic technology

• Settings include regular rice, quick rice,

rice porridge, slow cook, and steam

• 2 preset timers; 12-hour "keep warm";

non-stick coated inner pan for quick clean up

• Measuring cup, rice-scoop holder, deluxe

steaming basket, and instructions included

• Measures 9-2/7 by 13-8/9 by 11 inches

Pot: Zebra

Price 935 baht

- Width 30 cm

- Contain 9.2 liter

- Material: Stand less steel

Mortar: Zebra

Price 420 baht

- Size: Medium (7)

- Width: 7 inch

- Deep 3 inch

Knife: Zebra “Chef”

Price 116 baht

- Long: 8 inch

- Stand less steel sus 420j2

Spoon - Fork: Zebra “Chef”

- Thick: 2 mm

- 6 pairs

- Stand less Steel

271

Price 218 baht

Soup Spoon: Zebra

Price 68 baht

- Thick: 2 mm

- Stand less steel

Dessert Fork: Zebra

Price 288 baht

- Thick: 1 mm

- Long: 13.5 cm

- Stand less Steel

Pan: Zebra

Price 725 baht

- Width: 35 cm

- Size: 35x 57 x 11 cm

- Stand less steel

Ladle: Zebra

Price 41 baht

- Long: 30 cm

- Stand less steel

272

Spade: Zebra

Price 110 baht

Dish: Zebra

Price 78 baht

- Width: 10 inch (26 cm)

Bowl: Zebra

Price 100 baht

- Width: 7 inch (17 cm)

Gas Stove:

OTTO

Price 1,718 baht

273

Water Glass: Ocean Glass

PRICE: 210 Baht

Per Dozen

(Source: http://www.biggelato.plazathai.com)

- Size width 71 mm x heigh 82 mm

- Contain 8/ ¼ oz (235 ml)

Napkin

PRICE: 200 Baht

(Source:

http://www.hillkoff.com)

Size: Width: 22 inch, Length: 42 inch

Dessert Dish

PRICE: 45 Baht

274

Toilet

Table 4.9: Toilet Machine/ Tool/ Equipment

Coffee Machine/ Tool/Equipment Description

Toilet door: Diamond Door

Price: 3,500 Baht

• Size 80x200 x 3.1 cm

• Strong wood Grade A

Injection line 007 CR

Price: 175 Baht

• Made from ABS plastic

• Head press made from brass material

• German stainless

• Guarantee for 1 year

275

Basin NASCO MILANO

Price:

2,500 Baht

- Teak wood

- Height 90 cm

Mirror

Price: 1,500 Baht

• Used mirror/ more 65 years old

- Length: 22 inch

- Width: 12 inch

Flush toilet NASCO MODANA

Price 1,549 baht

• Two piece toilet

• Water saver 6 liter

276

4.1.6 Logistics Management

Figure 4.18: Major Logistics Functions

(Source: http://www.atkinson.yorku.ca, 2010)

Logistics is the management of the flow of goods, information and other

resources, including energy and people, between the point of origin and the point of

consumption in order to meet the requirements of consumers. Logistics involves the

integration of information, transportation, inventory, warehousing, material-handling,

and packaging, and occasionally security. Logistics is a channel of the supply chain

which adds the value of time and place utility. Today the complexity of production

logistics can be modeled, analyzed, visualized and optimized by plant simulation

software.

Logistics management is that part of the supply chain which plans, implements

and controls the efficient, effective forward and reverse flow and storage of goods,

277

services and related information between the point of origin and the point of

consumption in order to meet customer & legal requirements. A professional working in

the field of logistics management is called a logistician.

Our products transportation

Actually the Doi Chang Coffee Company is in Chiang Rai which is in the north

of Thailand but nowadays There are the distributors in northern part and central part that

are in Bangkok and they sell in the same price and after I contact to the company about

the logistic, they tell to order from Bangkok because the distance is nearer than Chiang

Rai and it can save cost so our company will order from Bangkok

Coffee bean and Ego coffee bean, we order from Doi Chang Coffee Original

Company Limited, Branch 2 39/545 Moo 13, Ladprao Wanghin Raod, Ladprao

Bangkok 10230.

The logistic cost is free because we order more than 10 Kilograms so we do not

pay for any fees. This is the way of logistic of our company:

Figure 4.8: Logistic management of Our Company

Ice cream, we order from Pluto, premium Italian gelato ice cream that it is at

34/58 Sakdidet Road, Moo 1, T. Vichit, A. Muang, Phuket 83000.

278

Figure 4.9: Ice Cream Logistic management of Our Company

Bakery that we order from Kanda bakery which is located on 31/33, it is

opposite UOB bank, Ruchadapisek Road, T. Taladyai, Muang Phuket 83000

Figure 4.10: Bakery Logistic management of Our Company

4.1.7 Facility Management

Cost of utilities

We focus on customer first because good service should to think a demand of

customer “What they want?” So, we provide technology service that importance to

customer and décor our shop for attractive customer too. OKey Coffee provides the

internet cafe and free high-speed wireless (Wi - Fi). For make more service efficiency to

customer and brand royalty to our product.

The significance of our shop is we reallocate in cost of telephone and internet

we divide to pay at TOT Public Company Limited.

279

Figure 4.11: Internet Service and Wi-Fi Hot Spot

Service Rate/ Month

Telephone Setting 3,700 Baht + Vat 259

Baht = 3,959 Baht

Including:

- Lightening Protection System and All

System Setting

-

Telephone 1000 Baht (Base Average)

- Cell phone call and Domestic call = 2

Baht per minute

Internet 4 Mbps/1 Mbps

- Free System Setting

690 Baht

(Source: http://www.tot.co.th, 06 May 2010)

280

Electricity bill: Pay at Provincial Electricity Authority (ePayment). The cost of

electricity used is normal cost. For maintain public benefit and revenue of our shop, to

make convenience for customer and good service to them.

Figure 4.12: METROPLITAN ELECTRICITY AUTHORITY

281

(Source: http://www.mea.or.th/internet, 10 May 2010)

282

Water supply: We pay at Provincial Waterworks Authority.

Figure 4.13: Water Work Authority

(Source: www.pwa.co.th, 10 May 2010)

Advertisement’s Tax

- A board which contain all of Thai language; 3 baht/500cm2

- A board which contain both Thai and English, images or any signs; 20 baht /

500 cm2

- For these boards; 40 baht / 500 cm2

• A board with no Thai language

• A board with a few Thai language, and place under or lower than other

language

- For any boards that paid already, you must pay more than the normal cost, if you

fix a board which make a rate of tax paying change; following [1],[2] and [3].

- The lowest cost of any board is 200 baht.

283

4.2 Cost of Investment

4.2.1 Pre- Operating Cost

Rental Rate

- The rental rate is 20,000 Baht per month and prepaid rental free is 1 year

that there are 240,000 Baht

Billboard of Company

Figure 4.14: Example of Company’s Billboard

The logo cost design of OKey Coffee is 2, 500 Baht. The logo of our company

is classic style that it is unique with coffee bean and name of our company which it

makes our customer to remember easily and it is the image of real Arabica of OKay

Coffee. The billboard cost of our company is 5,000 Baht.

Billboard tax

Billboard of OKey Coffee Company is wreath feature and it makes by English

font and pays the fee for set company billboard. We need to pay billboard tax in

Thailand. The size of billboard equal:

284

Width 120 Centimeters and height 80 Centimeters

120 x 80 = (7,200 / 500) x 40

= 768 Baht per year

We need to pay billboard at Karon Municipality, No. 1 Kata Road, T. Karon, Muang

Phuket 83100. Telephone no. 667-633-0189

Document for registration paying tax

- Copy of Household Registration and personal Identification Card

- VAT Registration

- Certificate

- License to set billboard

Company Limited Registration

- Capital investment 2,100,000 baht

- Fee and Document for register 11,050 baht

- Total 11,050 baht

*** The condition of company limited registration is in appendix part.

Commercial Registration Fee

New commercial registration of 50 Baht

(Ministry of Commerce, http://www2.moc.go.th, 2010)

285

Company Registration (License)

Restaurant /Food shop

- Restaurant license 1,000 Baht per year

***Pay at Kaoron Municipality

4.3.1 Investment Cost

Table 4.10: Investment Cost

No

Description Product

Price/Unit

(Baht)

Total

(Baht)

1 Prepaid Rental Fee (1 Year) 12 240,000 240,000

2 Design/ Decoration/ Painting/

Counter/ Equipment Setting

Service and Others

- 380,000 380,000

3 Telephone Setting 1 3,959 3,959

4 Electric System Setting 1 50,000 50,000

5 Water System Setting 1 15,000 15,000

6 Setting security cameras 1 2,000 2,000

7 Logo Design 1 2,500 2,500

8 Billboard 1 5,000 5,000

9 Bill Board Tax 1 768 768

10 Company Limited

Registration

1 11,050 11,050

11 Commercial Registration Fee 1 50 50

12 Company Registration

(License)

1 1,1050 11,050

Total 721,377

286

Furniture and Equipment of Store

1 Telephone 1 990 990

2 Air Conditioner 1 39,990 39,990

3 Television 1 15,990 15,990

4 Book Self 2 3,000 6,000

5 Cabinet 1 1,600 1,600

6 Table Set 5 7,999 39,995

7 Bar chair 8 3,200 25,600

8 Sofa 1 22,900 22,990

9 Computer 3 21,840 65,520

10 Computer Table 3 2,250 6,750

11 Computer Chair 3 1,750 5,250

12 Webcam 3 999 2,997

13 Router Wireless 1 1,350 1,350

14 Black Board 1 1,000 1,000

Total 236,022

Coffee Equipments and Tools

1 Coffee Brewing Machine 1 460,000 460,000

2 Coffee Grinder 1 29,000 29,000

3 Tamper 2 1,550 3,100

4 Blender 1 50,000 50,000

5 Knock box 1 1,500 1,500

6 Measuring Cup 2 999 1,998

7 Pitcher 2 999 1,998

8 Tamper Hanger 2 300 600

9 Tamping Mat Corner 1 550 550

10 Cream Whipper 2 2,600 5,200

287

11 Cooking and Frothing

Thermometers

1 950 950

12 Whip Cream Nozzle 2 950 1,900

13 Espresso Machine Group

Head Cleaning Brush

1 350 350

14 Grinder Cleaning Brush 1 220 220

15 Counter Clean Brush 1 690 690

16 Checker 2 1,250 2,500

17 Beverage Mix Picher (10 oz) 2 225 450

18 Beverage Mix Picher (16 oz) 2 300 600

19 Beverage Mix Picher (32 oz) 1 390 390

20 Milk Jigger 1 90 90

21 Cocoa Sprinkle 1 145 145

22 Sugar Sprinkle 3 290 870

23 Sprinkle 10 35 350

24 Topping Bottle 6 30 180

25 Jigger 1 70 70

26 Coffee Bean Spoon 2 50 50

27 Coffee Powder Spoon 2 100 200

28 Milk Frothing Spoon 3 49 147

29 Tea Spoon 25 25 750

Coffee Spoon 3 720/ Dozen 2,160

30 Syrup Pump 10 150 1,500

31 Coffee Filter Paper Box 1 80 80

32 Straw Box 1 850 850

33 Espresso Coffee Cup 30 35 1,050

34 Coffee Cup 40 50 2,000

35 Iced Beverage Glass 20 30 600

36 Smoothie or Fruit Juice Glass 20 115 2,300

37 Ice Cooler 1 15,000 15,000

38 Computer: POS System 1 6,599 6,599

288

39 Printer

1 7,095

7,095

40 Coffee Shop POS Systems and

Coffee Shop Software

1 120,000 120,000

41 Other Coffee Equipments

- - 25,000

Total 749,082

Ice Cream Tool/ Equipment

1 Ice-Cream Freezer 1 42,000 42,000

2 Ice-Cream Dipper 1 300 300

3 Spoon 25 173 4,325

4 Tray 6 48 288

5 Sunday Glass 2 678/ Dozen 1,356

6 Big Glass 6 58 342

Total 48,611

Kitchen Tools/ Equipments

1 Kitchen sink cabinet 1 5,800 5,800

2 Refrigerator 1 17,190 17,190

3 Insolated container of hot

water

1 680

680

4 Microwave 1 2,818 2,818

5 Rice Cooker 1 2,990 2,990

6 Pot 1 935 935

289

7 Mortar 1 420 420

8 Knife 2 116 232

9 Spoon/ Fork 4 218/6 pair 872

10 Soup Spoon 25 68 1,700

11 Dessert Fork 3 288/ Dozen 864

12 Pan 1 725 725

13 Ladle 1 41 41

14 Dessert Dish 35 45 1,575

15 Spade 1 110 110

16 Dish 30 78 2,340

17 Bowl 30 100 3,000

18 Gas Stove 1 1,718 1,718

19 Water Glass 4 210/ Dozen 840

20 Napkin 3 200 600

21 Other Kitchen Equipments - - 15,000

60,450

Toilet Tool and Equipment

1 Toilet door 1 3,500 3,500

2 Injection line 1 175 175

3 Basin 1 2,500 2,500

4 Mirror 1 1,500 1,500

5 Flush toilet 1 1,549 1,549

6 Other Equipments - - 5,000

Total 14,224

Total of Machine/ Tool/ Equipment 1,108,389

Total Fixed Assets 1,829,766

Net Working Capital 270,234

Total Investment Cost 2,100,000

290

4.3.2 Depreciation

Table 4.11: Total Depreciation Year 2011

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Design/ Decoration/

Painting/ Counter/

Equipment Setting

Service and Others

380,000 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 38,000

Billboard 5,000 83 83 83 83 83 83 83 83 83 83 83 83 1,000

Computer 65,520 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 21,840

Other Store

Tools and

Equipments

212,573 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 42,515

Coffee Brewing

Machine

460,000 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 92,000

Coffee Grinder 29,000 483 483 483 483 483 483 483 483 483 483 483 483 5,800

Blender 50,000 833 833 833 833 833 833 833 833 833 833 833 833 10,000

POS System 133,694 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 26,739

Other Coffee

Equipments

and Tools

76,388 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 15,278

Ice Cream 48,611 810 810 810 810 810 810 810 810 810 810 810 810 9,722

291

Tools and

Equipments

Kitchen Tools

and

Equipments

60,450 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 12,090

Toilet Tools

and

Equipments

14,224 237 237 237 237 237 237 237 237 237 237 237 237 2,845

Total 1,535,460 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 277,829

Table 4.12: Total Depreciation Year 2012

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Design/ Decoration/

Painting/ Counter/

Equipment Setting

Service and Others

380,000 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 38,000

Billboard 5,000 83 83 83 83 83 83 83 83 83 83 83 83 1,000

Computer 65,520 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 21,840

Other Store

Tools and

Equipments

212,573 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 42,515

292

Coffee Brewing

Machine

460,000 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 92,000

Coffee Grinder 29,000 483 483 483 483 483 483 483 483 483 483 483 483 5,800

Blender 50,000 833 833 833 833 833 833 833 833 833 833 833 833 10,000

POS System 133,694 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 26,739

Other Coffee

Equipments

and Tools

76,388 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 15,278

Ice Cream

Tools and

Equipments

48,611 810 810 810 810 810 810 810 810 810 810 810 810 9,722

Kitchen Tools

and

Equipments

60,450 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 12,090

Toilet Tools

and

Equipments

14,224 237 237 237 237 237 237 237 237 237 237 237 237 2,845

Total 1,535,460 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 277,829

293

Table 4.13: Total Depreciation Year 2013

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Design/ Decoration/

Painting/ Counter/

Equipment Setting

Service and Others

380,000 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 38,000

Billboard 5,000 83 83 83 83 83 83 83 83 83 83 83 83 1,000

Computer 65,520 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 21,840

Other Store

Tools and

Equipments

212,573 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 3,543 42,515

Coffee Brewing

Machine

460,000 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 92,000

Coffee Grinder 29,000 483 483 483 483 483 483 483 483 483 483 483 483 5,800

Blender 50,000 833 833 833 833 833 833 833 833 833 833 833 833 10,000

POS System 133,694 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 26,739

Other Coffee

Equipments

and Tools

76,388 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 15,278

Ice Cream

Tools and

Equipments

48,611 810 810 810 810 810 810 810 810 810 810 810 810 9,722

294

Kitchen Tools

and

Equipments

60,450 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 12,090

Toilet Tools

and

Equipments

14,224 237 237 237 237 237 237 237 237 237 237 237 237 2,845

Total 1,535,460 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 277,829

295

Table 4.14: Total Depreciation

Investment Amount Depreciation Annual Depreciation Monthly

Depreciation

Design/ Decoration/ Painting/ Counter/

Equipment Setting Service and Others

380,000 10 Years 38,000 3,167

Billboard 5,000 5 Years 1,000 83

Computer 65,520 3 Years 21,840 1,820

Other Store Tools and Equipments 212,573 5 Years 42,515 3,543

Coffee Brewing Machine 460,000 5 Years 92,000 7,667

Coffee Grinder 29,000 5 Years 5,800 483

Blender 50,000 5 Years 10,000 833

POS System 133,694 5 Years 26,739 2,228

Other Coffee Equipments and Tools 76,388 5 Years 15,278 1,273

Ice Cream Tools and Equipments 48,611 5 Years 9,722 810

Kitchen Tools and Equipments 60,450 5 Years 12,090 1,008

Toilet Tools and Equipments 14,224 5 Years 2,845 237

Total 1,535,460 - 277,829 23,152

296

4.4 Operating Cost

4.4.1 Direct Material Cost

Table 4.15: Beverage Raw Material

No Raw Material Price Per Unit Picture

1

Doi Chang Arabica Coffee

4,500/ 5 kg

2 Davinci Syrup

- Vanilla

- Hazel Nuts

- Butter Scotch Caramel

- Blue Culacao

- Caramel

- Macadamia Nut

- French Vanilla

- Cinnamon

- Toast Hazelnut

- Peppermint

- Rum

- English Toffee

- White Chocolate

330/ 750 ml

297

3 Natural Brown Sugar 100 %

39/ 500 g

4 Sweetened Condensed Milk

29/ 505 g

5 Tasteless Condensed Milk

25/ 405 g

6 Instant Whipping Cream

230/ 500 g

7

Black Thai Tea

45/ 450 g

8 Davinci Sauce Caramel

Davinci

Sauce Chocolate

Davinci Sauce White

Chocolate

660/2.6 kg

660/2.6 kg

660/2.6 kg

9

Frappe Powder

140/ 550 g

10

Premium Cocoa 180/ 500 g

298

12

Fresh Milk from Farm (Buy 5

kilos up per time)

28/ 1 kg

13

Cinnamon Powder 65/ 1 kg

14 Fructose

40/ 1.5 kg

15 Tea

• Earl Grey

• English Breakfast

• Peppermint

• Earl Grey Lavender

• Darjeeling

• Formosa Oolong

• Herbal Lemon

155/ 1 box 25

bags

16 Orange

20 - 25 baht / kg

299

17 Banana (Buy from

secondhand book)

30/ 1 hand of

banana

18

Strawberry 145/ kg

19

Coconut

10/ 1 unit

20

Pine Apple

10/ 1 unit

21

Kiwi 18/ 1 unit

22 Carrot

30/ kg

23 Apple

95/ 10 units

300

24 Ice 2/kg

Table 4.16: Package and Other Equipment

Iced and Blended Coffee Straw

Size: 20 onz

Mat: Stand less

PRICE: 22 Baht

(Source: http://www.hillkoff.com)

- Size: Medium/ 250 pieces

Hot Coffee Straw

Size: 20 onz

Mat: Stand less

PRICE: 20 Baht

(Source: http://www.hillkoff.com)

- 100 pieces

301

Fruit Juice or Smoothie Straw

Size: 20 onz

Mat: Stand less

PRICE: 30 Baht

(Source: http://www.hillkoff.com)

- Size: Large/ 250 pieces

Iced Cover

Size: 20 onz

Mat: Stand less

PRICE: 40 Baht

(Source: http://www.hillkoff.com)

- Size: 16 Oz/ 50 pieces

Hot Cover

Size: 20 onz

PRICE: 55 Baht

(Source: http://www.hillkoff.com)

- Size: 8 Oz/ 50 pieces/ Black

Hot Paper Cup

Size: 20 onz

PRICE: 60 Baht

(Source: http://www.hillkoff.com)

- Size: 8 Oz / 50 pieces

302

Iced Cup

Size: 20 onz

Mat: Stand less

PRICE: 85 Baht

(Source: http://www.hillkoff.com)

Size: 16 Oz / 50 pieces

Coffee Filter Paper

Size: 20 onz

Mat: Stand less

PRICE: 85 Baht

(Source: http://www.hillkoff.com)

- 100 pieces

Cafiza Espresso Machine Cleaner

Powder

PRICE: 750 Baht

(Source: http://www.hillkoff.com)

Cafiza™ Espresso Machine Cleaner

Powder for cleaning group heads and filters on

you espresso machine.

- Concentrated formula eliminates residue in

group heads, valves, and lines.

- Integral to the daily back-flush regimen.

- Foam and solubility balanced for optimal

rinsing.

- NSF certified for metal compatibility and

safety.

- Available online in 20 oz. containers.

- Size: 566 g.

Dishwashing Liquid

PRICE: 27 Baht

303

For our research by interview coffee entrepreneurs, we can conclusion operating

cost that divides into type of products:

Table 4.16: Average Operating Cost

Products

and

Service

Costs

(Base Average)

Sale Price

(Base Average)

Profit

(Base Average)

Beverage Sale/ cups 35% 75 65 %

Food Sale/ plates 40% 150 60%

Coffee Bean Sale/

bags

60% 150 40%

Bakery/ prices 50% 75 50%

Ice Cream/ scope 50% 50 50%

Secondhand Book/

books

50% 180 50%

Internet Service/

hours

20% 100 80%

We can calculate the operating cost of product of each month from:

Sale forecast per day x cost of product x 30 = Product operating cost of each

month

Pen: Laser

PRICE: 4.25 Baht

304

Table 4.17: Average Operating Expenses of Year 2011

Year 2011

Sale Volume

Products and Service Per Month Cost Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 26.25 775 780 785 785 790 785 790 795 795 800 1,085 1,550 10,515

Food 60 620 625 630 630 620 625 610 620 625 630 775 930 7,940

Coffee Bean 90 5 7 7 7 5 5 4 6 7 6 9 10 78

Bakery 90 465 470 475 480 460 465 470 470 475 485 495 620 5,830

Ice Cream 25 620 630 800 1050 450 460 465 460 465 475 600 900 7,375

Secondhand Book 90 155 155 157 160 140 140 155 150 160 160 175 180 1,887

Internet Service 25 186 130 140 150 124 128 125 129 135 140 145 170 1,640

Year 2011

Operating Cost

Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 20,345 20,475 20,606 20,606 20,737 20,606 20,737 20,868 20,868 21,000 28481 40,687 276,016

Food 37,200 37,500 37,800 37,800 37,200 37,500 36,600 37,200 37,500 37,800 46,500 55,800 476,400

Coffee Bean 450 630 630 630 450 450 360 540 630 540 810 900 7,020

Bakery 41,850 42,300 42,750 43,200 41,400 41,850 42,300 42,300 42,750 43650 44,550 55,800 524,700

Ice Cream 15,500 15,750 20,000 26,250 11,250 11,500 11,625 11,500 11,625 11,875 15,000 22,500 184,375

Secondhand Book 13,950 13,950 14,130 14,400 12,600 12,600 13,950 13,500 14,400 14,400 15,750 16,200 169,830

Internet Service 4,650 3,250 3,500 3,750 3,100 3,200 3,125 3,225 3,375 3,500 3,625 4,250 42,550

Total 133,945 133,855 139,416 146,636 126,737 127,706 128,697 129,133 131,148 132,765 154,716 196,137 1,680,891

305

Table 4.18: Average Operating Expenses of Year 2012

Year 2012

Sale Volume

Products and Service Per Month Cost Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 26.25 2,480 2,010 2,100 2,200 800 790 750 765 795 800 1,800 2,850 18,140

Food 60 1,200 1,000 900 1,000 700 600 590 700 780 800 1,000 1,550 10,820

Coffee Bean 90 12 9 8 10 5 5 4 5 6 8 12 18 102

Bakery 90 775 700 720 750 500 520 485 470 475 600 750 800 7,545

Ice Cream 25 950 850 800 1,100 450 400 465 460 465 500 900 950 8,290

Secondhand Book 90 250 220 190 200 150 155 165 150 175 180 250 300 2,385

Internet Service 25 500 460 450 480 200 250 300 320 300 400 500 580 4,740

Year 2012

Total Operation Cost

Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 65,100 52,763 55,125 57,750 21,000 20,738 19,688 20,081 20,869 21,000 47,250 74,813 476,177

Food 72,000 60,000 54,000 60,000 42,000 36,000 35,400 42,000 46,800 48,000 60,000 93,000 649,200

Coffee Bean 1,080 810 720 900 450 450 360 450 540 720 1,080 1,620 9,180

Bakery 69,750 63,000 64,800 67,500 45,000 46,800 43,650 42,300 42,750 54,000 67,500 72,000 679,050

Ice Cream 23,750 21,250 20,000 27,500 11,250 10,000 11,625 11,500 11,625 12,500 22,500 23,750 207,250

Secondhand Book 22,500 19,800 17,100 18,000 13,500 13,950 14,850 13,500 15,750 16,200 22,500 27,000 214,650

Internet Service 12,500 11,500 11,250 12,000 5,000 6,250 7,500 8,000 7,500 10,000 12,500 14,500 118,500

Total 266,680 229,123 222,995 243,650 138,200 134,188 133,073 137,831 145,834 162,420 233,330 306,683 2,354,007

306

Table 4.19: Average Operating Expenses of Year 2013

Year 2013

Sale Volume

Products and Service Per Month Cost Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 26.25 3,100 2,800 2,900 3,000 1,000 800 750 770 800 800 2,500 3,100 22,320

Food 60 1,500 1,250 1,000 1,300 750 680 590 680 800 830 1,300 1,550 12,230

Coffee Bean 90 24 18 12 15 6 7 8 9 11 12 20 28 170

Bakery 90 1,000 900 850 900 500 590 550 470 500 600 1,000 1,100 8,960

Ice Cream 25 1,200 1,100 1,000 1,150 500 450 465 460 465 500 1,000 1,250 9,540

Secondhand Book 90 300 250 200 230 150 155 165 150 175 180 280 330 2,565

Internet Service - 3 cases 25 930 850 800 900 300 250 300 320 300 400 600 900 6,850

Year 2013

Operating Cost

Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beverage 81,375 73,500 76,125 78,750 26,250 21,000 19,688 20,212 21,000 21,000 65,625 81,375 585,900

Food 90,000 75,000 60,000 78,000 45,000 40,800 35,400 40,800 48,000 49,800 78,000 93,000 733,800

Coffee Bean 2,160 1,620 1,080 1,350 540 630 720 810 990 1,080 1,800 2,520 15,300

Bakery 90,000 81,000 76,500 81,000 45,000 53,100 49,500 42,300 45,000 54,000 90,000 99,000 806,400

Ice Cream 30,000 27,500 25,000 28,750 12,500 11,250 11,625 11,500 11,625 12,500 25,000 31,250 238,500

Secondhand Book 27,000 22,500 18,000 20,700 13,500 13,950 14,850 13,500 15,750 16,200 25,200 29,700 230,850

Internet Service 23,250 21,250 20,000 22,500 7,500 6,250 7,500 8,000 7,500 10,000 15,000 22,500 171,250

Total 343,785 302,370 276,705 311,050 150,290 146,980 139,283 137,122 149,865 164,580 300,625 359,345 2,782,000

307

4.5 Organization Expenses (Cost)

Staff Recruiting

Customer service is paramount to the success of the OKey Coffee Store.

Therefore, tremendous care must be given to hiring the right persons. Furthermore,

OKey Coffee must also be sufficiently staffed, in order to ensure that all customers who

walk into a OKey Coffee Store are provided with the same amount of service. All staff

manning OKey Coffee Store must also be given the appropriate training so that they

would know how to service the customers, from greeting them at the door to serving

food and drinks at their table. The following are the different positions that must be

filled in our store:

Management Staff:

- Manager

- Cashier

Kitchen Staff:

- Chef

Customer Service Staff:

- Barista

- Service Staff (Waiter and Waitress)

Operating Hours

Operating hours are typically 09:00 am to 10:00 pm.

308

4.6 Organization expense (Cost)

4.6.1 Employee Salary

Table 4.20: Employee Salary

Position No. of Position

(Person)

Wage Rate

(Baht Per Month)

Manager 1 14,000

Chef 1 9,000

Barista 1 9,000

Service Staff (Waiter and

Waitress)

2 7,000

Housekeeper 1 6,500

Total Payment 6 52,500

*** Minimum Wage of Phuket is rate 204 Baht per day

4.6.2 Bonus

Table 4.21: Employee Bonus

Position No. of Position

(Person)

Bonus

(Baht Per Year)

Manager 1 2,000

Chef 1 1,300

Barista 1 1,300

Service Staff (Waiter and

Waitress)

2 1000

Housekeeper 1 1000

Total Payment 7 7,600

309

4.6.3 Electricity supply/ Month

Estimate use of electricity 3,000 unit * 2.4649 = 7,394.7 baht

Service expense = 228.17 baht

Total electricity expense / month = 7,622.87 baht

4.6.4 Water Supply/ Month

- 600 Baht per Month

4.6.5 Drinking Water

- 2,000 Baht per Month

4.6.6 Telephone

- 500 Baht per Month

4.6.7 Internet

- 690 Baht per Month

310

4.4.8 Staff Shirt

- The shirt prices is 220 per a pieces and our staff will get 3 shirt for each

one so there are 6 staff of our store we need to make 18 shirt. We will give to them

every 2 years.

- Total of shirt staff is 3,960 Baht per 2 year

311

Table 4.22 Organization Expense 2011

Year 2011

Organization Expense

Organization

Expense

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Salary 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 630,000

Bonus 7,600 7,600

Electric Supply 6,000 6,300 6,300 6,300 6,500 6,500 6,500 6,500 6,500 6,500 7,000 7,000 77,900

Water Supply 400 480 480 480 480 480 480 480 480 480 530 550 5,800

Drinking Water 1,500 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,800 1,800 19,500

Telephone 500 400 400 400 400 400 400 400 400 400 450 600 5,150

Internet 690 690 690 690 690 690 690 690 690 690 690 690 8,280

Staff Shirt 3,960 3,960

Total 65,550 61,970 61,970 61,970 62,170 62,170 62,170 62,170 62,170 62,170 62,970 70,740 758,190

312

Table 4.23 Organization Expense 2012

Year 2012

Organization Expense

Organization

Expense

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Salary 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 630,000

Bonus 7,600 7,600

Electric Supply 7,200 7,200 7,200 7,200 6,800 6,800 6,800 6,800 6,600 6,700 7,500 8,000 84,800

Water Supply 520 520 520 520 500 500 500 500 500 500 570 650 6,300

Drinking Water 1,900 1,800 1,800 1,800 1,700 1,700 1,700 1,700 1,700 1,700 2,000 2,200 21,700

Telephone 500 400 400 400 400 400 400 400 400 400 550 600 5,250

Internet 690 690 690 690 690 690 690 690 690 690 690 690 8,280

Staff Shirt

Total 63,310 63,110 63,110 63,110 62,590 62,590 62,590 62,590 62,390 62,490 63,810 72,240 763,930

313

Table 4.24 Organization Expense 2013

Year 2013

Organization Expense

Organization

Expense

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Salary 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 630,000

Bonus 7,600 7,600

Electric Supply 9,300 8,500 8,500 8,500 7,500 7,500 7,500 7,500 7,500 7,500 8,900 9,700 98,400

Water Supply 700 600 600 600 550 500 550 550 550 550 680 750 7,180

Drinking Water 2,300 2,000 2,000 2,000 1,700 1,700 1,700 1,700 1,700 1,800 2,200 2,500 23,300

Telephone 600 550 550 550 500 500 500 500 500 500 550 700 6,500

Internet 690 690 690 690 690 690 690 690 690 690 690 690 8,280

Staff Shirt 3,960 3,960

Total 70,050 64,840 64,840 64,840 63,440 63,390 63,440 63,440 63,440 63,540 65,520 74,440 785,220