Project Feasibilty Study and Evaluation - Aj. Chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010

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Preface
Herbs are the plant that had relating with human since long time ago. Former
times the herbs used to important and very popular, people cook them as foods, used
them when they sick, included for their healthy. Each herb is different of properties
and uniqueness‘ e.g. Ginger is help to gassy in the stomach. Therefore formerly
people have to concern about them thus became to be the part of benefit for their daily
life.
In fact, herbs are creation and mean to human, especially the health as the new
generation are impersonal to herbs before they became worthless. However our
healthy project is doing the beverages which made from herbs. We use the herbs that
are easy to find in the local to be ingredient as our beverages because the nutrition of
them is valuable for the health. The other hands we want the people are attentive to
herbs or else provide them to concern about the benefit of herbs.
Nowadays, daily life of human is fully with chemicals that cause is the easy
way to get of the various sicknesses; therefore, people are toward to take care of their
health, more concern of their life and are attentions to growing life with the nature
including foods and medical. Our company know about the secret benefits of herbs
and ready to provide them to people who love healthy in the form of beverages under
the band ―Secret of Samunpai‖
The group of Secret of Samunpai

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Content
Page
Executive summary A
Chapter 1 Introduction 1
- Background and Significance of the project 1
- Project objectives 5
- Benefit of project 5
- Activities/time frame of the study 5
Chapter 2 Industry Profile 6

- Nature of industry 6
- Situation of industry 10
- Product 11
- Vision and mission 14
- Strategy 14
Chapter 3 Market Feasibility Study 15

- Market Analysis 15
o General environment analysis 15
o Competition analysis 18
- STP Analysis 20
- Marketing mix strategy 22
- Sales Forecast/ Profit Estimate 23
- Marketing Expenses 27
Chapter 4 Technical Feasibility Study 28

- Production and Operations Analysis 28
- Specification 28
- Product Process 29
- Location 31
- Facility Layout 32
- Machine/ Tools/ Equipment 32
- Logistics Management 33
- Facility Management 33
- Investment cost 34
 Investment cost 34
 Operating cost 34
 Labor Cost 37
 Infrastructure Cost 38
 Depreciation Cost 38
 Interest loans 38
 Operation cost 39
 Initial fixed investment cost 39
 Working Capital Estimate 39
 Total Initial Investment 40
 Annual Production Cost Estimate 40
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 Annual and Administration Cost 40

 Unit Production Cost Estimate 41
Chapter 5 Financial Analysis 42

- Pro forma Profit and loss statement 42
- Pro forma Cash flow 42
- Cash Budget 43
- Pro forma balance sheet 43
Chapter 6 Risk Management 44

- Internal factor 44
- External Factor 44
 General Environment 44
 Political 44
 Economics 44
 Social 47
 Technology 48
 Five Forces Model 49
Chapter 7 Summary 50
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Executive Summary
Secret of Samunpai Company is established since 2010, our company has an

idea to make the beverage from herbs for the health under the brand ―Secret of
Samunpai‖ Our beverage‘s tastes are outstanding and different from others herbs
beverage that you had tasted; we proud to use ingredient from natural be part of our
secret recipes. There are 4 of flavors: Agave (Aloe Vera), Pomegranate, Tiger herbal,
and Tamarind. From each of flavours are differ in the nutrition facts that provide the
good health for everybody. The company choose place for this project in Chiangrai
because there is a scenery town in Thailand and there is one of the most successful
special economic zones in development economy of frontier the south of China-
Indochina plan.
From research marketing in present believe in market of herbs beverage have

different product also tests, high quality of product (consistency), packaging and
quantity. It effect to customer in every market such as youth, worker, sportsman and
aged. There are many projects to support about herbal for healthy that are a part. The
different of product can divide allowing (Department of research the industrial
finance corporation of Thailand.
Whereas we opened new company and it is small company so still don't know
for a customer in Chiang Rai. Then we look for customer group by emphasize at
Night Bazaar which there is the variety of a customer such as people in a Chiang Rai
province, people from the provincial, and foreigner. Our goods can drinkable for
every people and the price is cheapness. Our business chooses to use the
Concentration on a Single Business strategy. Therefore people are care about the
beauty and healthy. There are many properties of herbal in the past we know herbal
use for cure, but now people care for healthy more. So the customer has a right to do
or choose. All over cosmetic have many chemical blends in product if use it to long
time it must have effect for customer. However there are an herbal that are popular in
present. Most people interest and use the product from herbal that have more impact
with people.
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Chapter 1: Introduction
Project Title: Secret of Samunpai
Background and significance of the Project

This project is chosen to be our project because beverages which are from
herbs are popular in many groups of people such as people want to be healthy and
trendy. Nowadays many people especially adult and old people interested in take care
of health in bio-organic consumption way and herbs for protect many diseases that
make the beverage from herbs also more popular by have a study identify that the
beverage from herbs have more food nutrition and have many important vitamins. We
point out to detox beverage which is from herbs. Therefore we have an idea to
produce the beverage from Thai herbs for the people especially adult and old people
who interested and take care of health. The beverage from herbs such as beverage
from Aloe Vera, Ginger are Thai agriculturist wisdom that have in longer time and
now those wisdom are taken to develop for produce in marketing way for bring it to
be famous beverage of consumer. General beverages made from several of herbs in
some taste of beverage from herbs may be not quiet good so we will produce
beverage from herbs which have a good taste and have more nutrition. We will
response from bionics food consumers and general consumers in the new recently
who prefer taking healthy food for their better health.
Now government side public health policy supports behavior health
development emphasize give the hygiene and enlarge public health work reach family
level encourage healthiness care of people has good health. The nation is facing a
problem the economy dulls health care of oneself not give sick will help economize
expenses both of oneself and the nation because we must import medicine from the
foreign countries. The Union of Thai traditional Medicine Society has campaign for
people use fruit and vegetable local of Thailand to cook or use herbs for protect and
cure. There are a lot of researches that study herbs lead comes to apply in the every
day life.
Herbs which we uses in the production have 4 kinds: Agave (Aloe Vera),
Pomegranate, Tiger herbal, and Tamarind.
1. Agave (Aloe Vera) has vitamin A, B1, B2, B6, B12, C, E, and Choline. The
properties that have to admit from already the research from all institutes are:
- Help heal a wound in the stomach

- Help resist and halt the growth of cancer
cell and virus
- Help encourage the work of corpuscle
white cell in immunity germ system
- Help the casting slips of joint bone and

help to coat larger intestine wall
- Help add digestion system has the
efficiency more and more (Metabolism) then have Figure 1.1 Aloe Vera
the lead goes to mix , in beverage or the food maintains the body
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- Help encourage the doer can is born the cell efficiently then has the lead
goes to use in the repair or the part that is worn within the body with eating and heal a
wound from the hot water scalds fire or the wound from the disease skin way such as
the disease money scrap and have the lead goes to use heal a wound of the patient
from radioactivity X-ray which effective astonishingly with rubbing.
- Help testify born the event sleeps deep , be the relaxation actually as the
result of something the procedure fine work state of all system in the body give reach
the condition that equilibrium with way chemistry reaction from the nature in the aloe
- Help add in patient diabetes preservation meet that can control water
Palmyra level has in the blood heavily well as the result of process long necklace for
foe decorate there is the work efficiently both of still help decrease and halt something
wound chronic occurrence heal poor bring about to organ slitting such as leg
- There is meeting that the aloe helps to make the blood vessel in the brain has
the strength and stretch well then participate help give can protect the blood vessel in
the brain broken.
- Help maintain the complexion and give the moisture to the skin meet that
aloe help encourage Fibroblast in pouring collagen and Elastin is in building cell new
tissue and give the moisture have stretched to skin cell well then have the lead
becomes the components in many expensive trademark cosmetic.
2. Pomegranate In the pomegranate

has a lot of various vitamin, magnesium, and
Calcium which valuable for the system
purifies blood and the circulation in the body.
The pomegranate is valuable as follows:
- The restoration to the state originally
in the heart and the liver
- Washing kidney and urine pipe
- The capacity in digesting
- Get rid paramour fat
- Be the tonic
- Help protect stomach defeat Figure 1.2 Pomegranates
- Help fine the hormone in the menopause
- Adjust washing system and circulate the blood
- The restoration from the diabetes
- The capacity in holding phlegm
- Resist going efficiency sexual back and enhance the power
- Protect the disease forgetful in old people
- Make pretty face
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3. Tiger herbal is worthy food there is the

high vitamin A helps maintain the sigh and high
calcium. Tiger herbal has panacea to repair
bruised, repair thirsty, decrease the symptoms has
a headache one-sided and maintain the brain.
Figure 1.3 Tiger Herbal
4. Tamarind the advantage of tamarind water:

- There is the vitamin A helps maintain the sight
- Tamarind is emetine and repair cough
- Be stomach laxative
- Decrease anemia symptoms
- Protect scurvy occurrence
Figure 1.4 Tamarinds
We choose place for this project in Chiangrai because there is a scenery town
in Thailand and there is one of the most successful special economic zones in
development economy of frontier the south of China- Indochina plan
Chiang Rai is the northernmost province of Thailand. Neighbouring
provinces are (from east clockwise) Phayao, Lampang and Chiang Mai. In the north it
borders Shan State of Myanmar and Bokeo of Laos.
The average elevation of the province is 580 m. The north of the province
belongs to the so-called Golden Triangle, at which the borders of Thailand, Laos and
Myanmar converge - an area which was very unsafe because of the drug smuggling
across the borders. The Mekong River forms the boundary with Laos, the Mae Sai and
Ruak River to Myanmar. Through the town of Chiang Rai itself flows the Kok River.
The province is rich in tourism resources in terms of natural attractions and
antiquities, evidence of its past civilisation. It is also home to various hilltribes who
follow fascinating ways of life. Chiang Rai is also a tourism gateway into Myanmar
and Laos.
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Population of Chiangrai (2008)

- Total 1,227,317
- Density 96.7/km2 (250.5/sq mi)
- Population rank: Ranked 14th
- Population density: rank Ranked 47th
(Reference: 2010, http://en.wikipedia.org/wiki/Chiang_Rai_Province)
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
171 Chiangmai
Kalasin ,Khonkean, **Chaingrai** , Burirum ,Yasothon ,Roi-ed and
157
Sakonnakorn
(Reference: http://www.mol.go.th/statistic_01.html)
The minimum wage rate in Chiangrai is 157 baths which it low wage. Chiangrai is a
new economic zone to suitable for investment because more resource and more labor.
There is a scenery town effect to many people come to here a lot.
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Project Objectives
1. Study about feasibility of business project

2. Analyze marketing feasibility
3. Analyze technical feasibility
4. Analyze financial for this project
5. Analyze situation for feasibility
6. Analyze risk for this project
Benefits of project
1. The feasibility result of the project

2. The successful in the marketing segment
3. The effectiveness in the process and use the new technical for develop the
product
4. Identify the external factor as an economic system than can forecast the sale
5. The appraisal of the external environment
6. Acceptance the risk from the internal and external factor therefore try to use
the appropriate strategies for solve the problems
Activities
Activities/Month November December January February March
Study about Thai herbs in local area
Research marketing in Chiangrai
Create specific formula of product
Operate production of product
Sale product
Evaluate
Time frame of the study
November 2009 – March 2010

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Chapter 2: Industry Profile

Nature of industry
History of herbs
For thousands of years, herbs have been used as scents, foods, flavorings,
medicines, disinfectants, even as currency. Here we give just a few highlights in the
history of herbalism. (The National Center for the Preservation of Medicinal Herbs,
1998)
The Earliest Uses
There's no way of knowing precisely how the earliest cultures used herbs, but
they had thousands of years to experiment. Early cultures probably recognized that
certain herbs had curative powers, and it's likely these curative powers were attributed
to supernatural causes. A 60,000-year-old burial site in Iraq contained evidence of
eight different medicinal plants, probably intended to be taken along in the afterlife.
Naturally, medicinal herbs remained steeped in magic and superstition for millennia.
Herbs in Ancient Civilizations
By 3500 B.C., the Ancient Egyptians began to associate less magic with the
treatment of disease, and by 2700 B.C., the Chinese started to use herbs in a more
scientific sense. Borrowing from the Egyptians and Mesopotamians, Greek physician
Hippocrates (460 - 377 B.C.), founder of the Hippocratic oath, developed a system of
diagnosis and prognosis using herbs. He considered illness a natural, not supernatural,
phenomenon and maintained that medicine should be given without magic. In 77
A.D., Pliny the Elder wrote 37 volumes on natural history, and devoted seven of them
to the medicinal uses of plants. Unfortunately, Pliny verified little of what he wrote
and much of his work is of questionable value today.
Ancient physician Galen (131 - 201 A.D.) developed the principle of humors,
linking body type with health and personality. For the next 1,400 years, physicians
would trust in Galen's principles for better or worse, often using them as the basis for
purgatives and bloodletting. In the 16th century, however, one physician would break
ranks with the Galenic school to propose his own somewhat strange idea known as the
Doctrine of Signatures. Paracelsus (1493 - 1541 A.D.) would reject humors and
instead argue that botanicals bear an uncanny resemblance to the body parts, or causes
of the ailments, they could cure.
Herbs in Medieval Europe
The progress of science and the understanding of plants nearly collapsed with
the fall of the Roman Empire. The early Middle Ages saw a return to the ritual and
superstition that surrounded herbs, as the learning of the ancients was preserved
mostly in monasteries and the Arabic cultures. Some herbs were positively reviled in
Medieval Europe. A common Medieval belief held that scorpions bred beneath Basil
pots, and inhaling the Basil's scent would drive a scorpion into the brain. Medieval
herbalism had two problems. First, much of the learning of the ancients was lost to the
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population at large (if it had ever been available in the first place). Second, Medieval
scholarship trusted ancient beliefs with no emphasis on experimentation that could
lead to new discoveries. Yet many people in the Middle Ages possessed a
sophisticated knowledge of medicinal herbs, as evidenced by archaeological finds.
Throughout Europe, serfs and townspeople could make use of local herbs to flavor
foods, but Medieval lords often purchased much more expensive spices from the East.
During the Middle Ages, paradise was believed to be a physical place on Earth, and
spices such as cinnamon and pepper were reputed to grow in close proximity to it,
making them important status symbols on the Medieval table.
The Renaissance
As Europe emerged from the Middle Ages, trade with other civilizations
increased, and so did the knowledge of medicinal herbs. In fact, the "discovery" of the
New World was fueled by a quest for herbs and spices — Columbus was seeking a
quicker, cheaper route to India in 1492. During the Renaissance, nobles of Europe
aspired to assemble all human knowledge in their private libraries, and all useful
botanicals in their gardens. Some of these nobles commissioned artists to produce
beautiful, if not always accurate, catalogs of their collections. Meanwhile, universities
teaching botany and herbalism planted "physic" gardens in the 16th and 17th
centuries. Sadly, the exchange of plants in this new garden culture had a darker side:
when European colonists planted gardens in newly discovered lands, some of their
favorite botanicals became weeds, choking out the native vegetation.
Herbalism, Botany and Medicine
In 1652, Nicholas Culpeper published a comprehensive herbal, The English

Physitian. In it, he systematically cataloged all the known herbal remedies of England.
Dedicating his efforts to the common people, Culpeper showed them how they could
rely on their own herbal remedies rather than the expensive concoctions of doctors.
Needless to say, some doctors of his day didn't admire him for this.
For centuries, herbalism — and botany in general — suffered from problems of

confusion. A single plant could be given many names, and likewise the same name
might be given to several different plants. In the early 18th century, Swedish botanist
Carl von Linné, better known as Linnaeus, developed the system of binomial
nomenclature, giving a unique Latin name every known species. This better classified
plants, but also spearheaded a division between botany and herbalism. Up to this time,
scholars had discovered and examined plants with an eye toward how those plants
could be useful. The Linnaean system placed a greater emphasis on cataloging plants
without regard for their usefulness.
Western medicine eventually turned away from herbalism in favor of chemical

cures and the isolation of active ingredients in botanicals. In some parts of the
Western world, herbalism was actually outlawed when not practiced by a doctor with
conventional medical training.
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Other Cultures
Herbalism has a long history in Western civilization, but what about other
cultures? Herbalism is by no means unique to the West. Chinese herbalism is widely
regarded as the oldest because it has the longest unbroken recorded history. Likewise,
Ayurvedic medicine, rooted in ancient Hindu practices, persists to this day. Long
before their contact with the West, Native Americans used Ginseng, Goldenseal,
Black Cohosh and Cat's Claw, among others. Many people are surprised to learn that
the "primitive" indigenous cultures often outshone the Europeans in pursuing healthy
lifestyles. Considering the growth of learning and influx of new medicinal plants
between the 12th and 18th centuries, it would make sense that the Europeans would
have enjoyed unprecedented improvement in health, but in truth the opposite
happened. Europeans lived in overcrowded towns with open sewers and no hygiene.
Before the arrival of Columbus, Native Americans actually lived longer, healthier
lives than their European contemporaries.
Herbalism Today
With the germ theory of disease and the advent of antibiotics to combat
infections, it appeared for a time as if infectious diseases were a thing of the past, but
that has not happened. With the realization that chemical medicines are not always
"magic bullets" and sometimes carry serious side effects, herbalism and ancient
medicines are making a comeback. Our challenge now is to ensure valued botanicals
remain abundant for future generations.
What are herbs?
The mean of herbs is medicine made from plant, animal and mineral which it no
riches or change into (except dry off) e.g. plants keep in part of root, stalk, leaf,
flower, fruit etc. which it no change into such as cut, crush, distillation, extract also
mix with something. In the business herbs will change into multifarious such as cut to
crumb, crush to powder, block to piece, peel away. When we say to herbs people are
thinking specific plants bring use profit to medicine because animal and mineral
rarely use some affection.
History of using herbs in Thailand
Thailand have atmosphere the best for grow up of multi plant. In particular
herbs have kinds more 100,000 which grow up native and cultivation. Some kind of
herbs is raw material of medicine and than much kind of herbs is quack medicine and
nostrum. Thai herbs is base from India because it has history of Thai are emigrate
from Altai Mountain in China then they have many effected to culture, tradition,
religion including therapy from India.
Estimator say that each year have user herbs in Thailand is value more 500
million bath (This herbs from Thailand and import from China, Korea and India)
because of Thailand have deforest it make campaign to people crop herbs in B.E.
1800 period of Pho Khun Ramkhamhaeng it was golden age of Thai herbs. His herbs
forest is large land on Kirimas Mountain A. Kirimas Sukotai province there have unit
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of area more 100 rai which now keep in conservation become conserve forest for who
interest.
Latter than in Bhumibol Adulyadej (Rama IX) he sees in herbs is a both
medicine and food in family. He believes in country will be firm it from little well-
ness family. He assign to follow royal project to data collection relate to herbs such as
biology, medical, therapy, conserve the environment. He also assign who research to
widely about herbs by research science institute and Technology for find important of
poison herbs, pharmacy bring poison of herbs extract become medicine give to
present medicine.
Benefits of herbs
1. Use for medicine

2. Use for food
3. Use for cosmetic
4. Use for supplementary food
5. Use for detox
6. Use for beverage
7. Support to economic firm Figure 2.1 Food made from herb
Thai people also herbs modify become to food and beverage which here in tell
about ―herbs for beverage‖
Kind of herbs beverage
Classification the herbs dink in Thailand following origin and process allocate 2
kinds are:
1. Normal beverage
Which use for tradition or custom
Water brings make to perfume by ilang ilang and afloat Jessamine or petal rose
on water. Mon people use it offering to monk in tradition festival such as give food
alms to a Buddhist monk festival, Songkran festival etc.
2. Fruit juice and beverage from richest

Thailand has abound cultivar and has many kind of fruit to circle late in year
round which fever bring herbs and fruit made to beverage by season with sugar or salt
such as Bale fruit, Roselle, Lime, Pandanus leaf, lemongrass and Brasilianischer
Wassernabel ect.
In past, often used fresh herbs and fruit made to beverage. They will beverage at
once; it is taste to fresh and has nutrition fact. In present, apply the dink from
technology, packaging for convenience. Thai‘s beverage gives both tests and benefit.
The benefit is properties of medical from herbs and fruit made to beverage.
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Situation of Industry
From research marketing in present believe in market of herbs beverage have
different product also tests, high quality of product (consistency), packaging and
quantity. It effect to customer in every market such as youth, worker, sportsman and
aged. The different of product can divide allowing (Department of research the
industrial finance corporation of Thailand, 2544: 73)
The different of taste to sale in present market and popular are

- Fruit juice such as orange juice, grape juice, pine apple juice, tomato juice,
apple juice, cherry juice, watermelon juice, mango juice, tamarind juice, star
fruit juice, bale fruit juice, lemon juice and Passion fruit juice.
- Beverage made from herbs such as rosella flower, red hot basil, galangal,
ginger, cabbage, carrot, green tea, black tea, safflower, Coccinia grandis,
lemongrass, Green chireta, Pandanus leaf, Brasilianischer Wassernabel, Bitter
Gould, sweet basil, Job's tears, aloe vera and Lingzhi.
The different quality of product is meaning degree of herbs ready to beverage.

Characteristic and kind of herbs and fruit also different of process it can divide main
kinds allowing:
1. Herbal beverage 100% can divide 2 kinds are:
100% pure juice has acid proper for sterilize by temperature less than water boil.
It has good taste by no richest. In addition, fruit and vegetable mix into beverage.
Productions often use vegetable and fruit to easy find and low cost. (Copyright of
department of industrial promotion College of Management, Mahidol University)
100% juices from vegetable and fruit juice concentrate have to boil within vacuum
for water's evaporate some part ,you will have vegetable or full-flavored juice ,then
mix with water that make dilute ,but not add sugar or another seasoning as well. The
vegetable or fruit for using can import such as cherry and kiwi etc. and then this
product can divide 3 kinds depend on time of product are:
1.2.1 Be can keep shorts time about 1-2 month the most pass process
pasteurize. The product almost high price more than other group
because high cost of production and stowage.
1.2.2 Be can keep medium time will pass UHT processing and can keep
about 8-10 mount. The product have medium to high price.
1.2.3 Be can keep long time about 1 year use Sterilization processing.
This product is almost low price.
2. Herbs beverage has degree of 25-50 %. It is most popular in present market

because product have different more than other kind, can richest such as sugar and
lemon acid for good taste. Nowadays, the most of product to can become single serve.
3. Herbs ready to beverage have degree less than 15 %. Nowadays, this good is
the smallest in this business because customer in this group will like taste more than
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benefit. The almost product being water admix with vegetable juice/ juice with
coloring and then load to low price packaging.
4. There have new good enter in market is mixed vegetable and juice beverage.
The product is popular in customer. The product has 2 kind are degree 100% and
degree 41%. The new choice for customer want benefit form vegetable and juice, easy
to beverage and good taste. (Department of industrial promotion College of
Management, Mahidol University)
5. The last is herbs beverage for healthy. In past, the herbs were made for
medicine; elixir and use for stimulate sex. Nowadays, the product has production be
beverage for customer need.
Product
The Secret Of Samunpai is the beverage for health. Our beverage‘s tastes are
outstanding and different from others herbs beverage that you had tasted; we proud to
use ingredient from natural be part of our secret recipes. We have all 5 flavors:
Figure 2.2 Super mixed secret (cucumber, Chinese celery and carrot)
The appropriate from the mixed are luxury of vitamin A Beta-Carotene and
antioxidant that are nourishing your body especially eyes and your skin. Although
they help protect in advance from body‘s cancer as well as detoxify the body
pollutant.
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Figure 2.3 Pomegranate
There are Polyphenols which help to anti the antioxidant of LDL-C, low
density lipoprotein cholesterol and also has the Anthocyanin help to decrease the
concretion‘s blood vassal. Pomegranate is a fruit that has the highest the antioxidant
from other fruits.
Figure 2.4 Agave (Aloe Vera)
The Glycoprotein names‘ are Aloction A and Aloction B are the choice which help
decreasing inflammation from burning and also fiery of your skin. Thus it able to be
cures the gastric ulcer.
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Figure 2.5 Tiger harbal (Bai Bua Bok)
The nutrition fact of Bai Bua Bok is the highest of vitamin A which nourish
your eyes and there is more calcium. When you feel exhausted or contuse by a part of
your body, it can help you get on its.
Figure 2.6 Tamarind
Tamarinds are laxative when you get a constipated and also help you from a
cough and a cold. Vitamin C from the tamarinds are able protect the teeth and gum to
be strong and keep your skin as well.
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Vision and mission

Vision: A leader of herb drink industry target to around Chiangrai province
and the north of Thailand
Mission: We will produce quality produce, clean of process and get product to
standard
Strategy
Corporate Level
We opened new company and it is small company so still don't know for a
customer in Chiang Rai. Then we look for customer group by emphasize at Night
Bazaar which there is the variety of a customer such as people in a Chiang Rai
province, people from the provincial, and foreigner. Our goods can drinkable for
every people and the price is cheapness. Our business chooses to use the
Concentration on a Single Business strategy.
Business Level
The business will use the Differentiation strategy are competition strategy of
an organization that is bound for aim wide market and make high quality of goods for
the loyalty of a customer.
Functional Level
Marketing : the business will emphasize direct way marketing enters still
customer group include having relation good with a customer by encourage the sale.
Manufacturing : We used raw material from the agriculturist in the
community which fresh and clean free from the toxin. We emphasize hygienic
condition administration of a person and the environment of the office produces
include the place to produces, a tool that use in the production, in order to make
production food step has the safety for a consumer more and more.
Human Resource : We use an officer who has an experience for save
expenses, and the time in many training extremely by have salary distribution.
General Management : In the part of the administration of business there is
just one owner because low expenses.
Finance : The investment in new project about 2.983,600 Baht by don't use
the loan.
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Chapter 3: Market Feasibility Study

Market Analysis
General Environment Analysis

- Political
The government support project about healthy, encourage people attentive to
healthy. At present have new affection arise in the world. We used to care about
healthy more. Herbal is a kind of medicine in the past people used to make food. The
government has many projects to support such as:
- Develop the industry of herbal product.

To support industry of herbal. The industry the important think is making into
convenience food, deliver to an intermediary. And most an industry set in countryside
can support to people have career and make money to village.
- Contribute Thailand to the central for the product of healthy.

Thailand is the country of agriculture if support to Thailand is central of
product of healthy it can make earnings come in country and increase exportation.
- Encourage the exportation and abate the importation.

Nowadays the exportation in Thailand there are rice and fruit is the most.
Herbal are the new product people who attentive about healthy more therefore
this product are popular in soon
- Develop the quality, formula and safeness of herbal.

The product should have a quality therefore should have to check a quality of
product since process have to clean, safety and high-class. The government should
have measurement the product before sell for check quality always.
- Project Herbal of the year

Project Herbal of the year is the project is the government set up ever year for
encourage about herbal for healthy.
There are many projects to support about herbal for healthy that are a part. The
government unceasing to cerate to new project for industry of herbal always.
Complementary And Alternative Medicine are the term CAM often refers to a broad
set of health-care practices that are not part of a country‘s own tradition and are not
integrated into the dominant health-care system. Other terms sometimes used to
describe these health-care practices include ‗natural medicine‘, ‘non-conventional
medicine‘ and ‗holistic medicine‘ WTO said. Complementary And Alternative
Medicine some time to use herbal for cure.
21
- Economy
Vocation to transform and sell the herbal is the impotent thing to change the
economy and other. The bed out of herbal is the interesting, because of
1) Most people interesting to use the herbal and therapy by the natural
2) The take care for holistic is popular now and catching all the world
3) Nowadays the herbal is very popular form of herbal remedies, supplement
and cosmetic
4) Survey results the user in Thai is the disbursement to produce the herbal
product of Thailand in 2548 had a cost about 48000 million bath and have a growth
about 20-30 percent per year
5) The country in Middle East are the group of country that have a high of
power to purchase because a people the interesting to esthete and healthy there are
more so aptitude and opportunity to encourage to growth the herbal in business for
community it can be and the feasibility have more if there are operations research and
get to apply to use and seriously.
From this graph will see nowadays herbals very popular form of medicine,
supplementary food and cosmetic. The information in 2004 the demand of herbal in
market world cost about 784,000 million Bath it rather high. Thailand have amount
of herbal are more but the import are more than export because of Thai people like to
use the import product.
22
- Social and Environment

Herbal medicinal products can divide 4 groups
1. Phytophamaceuticals
2. Herbal medicines
3. Nutraceuticals
4. Cosmeceuticals
And apply in industrial

1. Aromatherapy
2. Oil for massage
3. Vitamins/supplements
4. Essential oils
5. Sport medicinal products
6. Smart beverages
7. Functional Food
8. Personal-care products
9. Hair-care products
10. Oral hygiene
11. Baths and gels
12. Skin care
13. Obesity
14. Honey and syrups
15. Pet foods
Nowadays people are care about the beauty and healthy. There are many
properties of herbal in the past we know herbal use for cure, but now people care for
healthy more. So the customer has a right to do or choose. Allover cosmetic have
many chemical blend in product if use it to long time it must have aftereffect for
customer. Herbal with a beauty can be together such as Aloe indica Royle help
nurture hair, Tamarindus indica Linn help bathe of dirt from skin, Cucumis sativas
Linn help to build a new skill that for gently and delighted, Lycopersicon
esculentum Mill help cure of acne. There are an herbal that are popular in present.
Most people interest and use the product from herbal more it no have impact with
people.
- Technology
Now technology is the important for every thing, company, industry, school,
including a herbal product. Technologies with herbal are use for communication,
shipping and production. Production help to transform herbal for to use long time
there are many ways to technology to transform such as pill it can keep to long time
and easy to eat, powder many herbal to transform to this way it easy to use and keep
to long time, water this product is very easy to use. There are transform by
technology.
Abroad take an interest in Thai herbal but Thailand there are no information or
organization of the knowledge about herbal a few. The most the exports Thai herbal is
aromatherapy. Although Thai use herbal a long time but there are no product of Thai
exported to the market world.
23
Probably Thai lacks of information for affirms the safety and efficiency appliance in
human. Lack of improve of technology of product, form and package. Law of the
country of the market world has more rigidness it makes improve of herbal in
medicine or cosmetic against all odds.
Thailand lacks of the expert and the modern technology it the import thinks
the make the industry improve. The government should support more and more
So technology in present is the important with every company
Competition Analysis (3Cs Analysis)
The competitions
The competitions are not emphasizing in the prices but their emphasizing in
the new strategic example new campaign, advertisement or new product. The various
of tasted, the various of quality and characterize of product if we use Five forces
model for evaluate the company and this is the result of company
Rivalry among Established Firms: there are many major and minor
companies that produced the herb drinking water more over 200 companies
New Entrants: This type of business is called Fragmented from the amount of
entrepreneur and barrier to Entry less because no need to much cost and no need the
high technology and the trend of customer make new competitors and make high
competition may make the low benefit problem
Substitute Products: The drinks that can commute are soft drink mineral and
fruits
Bargaining Power of Suppliers: from the reason herb drinking water made
from the low price product and easy to find make them has high bargaining power of
Suppliers and high Bargaining power of buyers.
The customer analysis
The Target of Secret of Samunpai

- Sport manias
The people who love to play will love in their healthy and interesting in herb. We
take the herb to drinking water will make the convenient for the customer.
- Elderly
The people who are elder will have many troubles in their health example always
constipated, bruise or have a problem about skin.
- Youths
From the Korean trend make the younger in Thailand always interesting in the skin
and hair and our product have a part for help treated and protect skin and care from
the pollution and herb make them are refreshment too.
- Spa business
In spa will have many people who want to take care their health and if we can sales
product at spa we will got the big customer for retailing our product.
24
From the research of Secret of Samunprai’s customer the result are these
60% Cure
25% for beauty
10% feel fresh after drinks
3% good teased
2% Believe that can help about Se
The competitors
The main competitor in north of Thailand
Brand Product
1. Doikham
(Doi Kham Food Products Co.,Ltd.)
1. Ready-to-Drink Fruit Juices
- Fruit Juice Concentrates
- Sweetened Fruit Squash
2. Low Sugar Fruit Juice
Concentrates
3. Fruit Juices for trade business
Reference:
http://www.doikham.co.th/product_typelist_en.php 4. Extracted Fruit Juice
2. UFC 1. 100% Fruit Juices

(Universal Food Public Co.,Ltd.)
2. 100% Mixed Vegetable and
Fruit juice
3. Canned Juices & Drinks
Reference:
http://www.ufc.co.th/product/category_en.php?id=3
0&main_id=88
Secret of Samunpai has many competitor apart from the herb waters are has
know well there are many SMEs company are produced the product in concept water
for health.
In 2-3 years ago in Thailand green tea very popular and later the herb are
also popular too make this business has many competitors.
Doikham and UFC has difference target but has the same process
25
Doikham are focus on the health and has many taste from various fruit and
vegetables from many place the target is elderly and focus on the Thai customer.
UFC are focus on the refreshment and use the normal fruit and vegetables in
market the target is youths and concentration in the publicity and package.
STP Analysis
Market Segmentation
We emphasize healthy because almost people interest about healthy and

nowadays people interest about detox too which appropriate for make marketing.
Market Targeting
The products are appropriate for everyone who loves to be healthy. Other than
healthy our products are nourishing the body more strong, prevent the sickness and
detoxify.
We emphasize working age because they are so busy no time for care
themselves. They will find something to easy for eat or drinks.
Market positioning
26
Market positioning
Attribute Positioning
- The secret recipes be from natural 100%
Benefit Positioning
- Easy to drink for nourishing the health
- Detoxification
Application Positioning
- Freshen up when drinking
Use Positioning
- Everyone who love to be healthy
- For everyone who want to taste the new healthy drink (follow the trend)
Competitor Positioning
- 2 in one: All both natural for healthy and detox
Product Categories Positioning

- Healthy Thai herbs beverage
Quality/ price Positioning

- The reasonable price that assort with the value of drink
The market positioning of Secret of Samunpai

27
Marketing Mix Strategy

Product
The Secret of Samunpai have 5 kind are
1. Super mixed secret (cucumber, Chinese celery and carrot)
2. Agave (Aloe Vera)
3. Pomegranates
4. Tiger harbal (Bai Bua Bok)
5. Tamarinds
Which our product have various kind and each kind is special product which we
improve and modify for better taste and quality of customer.
Quality we have high technology tool which convenient, up-to-date, easily to
control and process.
Design we create our product easily to carry which shape, design of bottle is
look good and modern. We have label which describe about properties of each bottle.
Figure 3.1 Logo of Secret of Samunpai
Brand name is The Secret Of Samunpai. Its mean herb have many properties
which somebody don‘t know about that. We will describe about properties of each
bottle.
Warranties we receive license form Food control division.
Price
List price: Our products aren‘t expensive just 20 baths per bottle.
Payment period: We think, our company pay back and get profit in 5 years.
Place
Our company builds in Night Bazar. This place has many people, restaurant
and shop etc. This place‗s good location in Chaing Rai. It‘s easy to promote our
product. We will buy land and build our company that invents about 2.9 million baths.
Our company must buy 1 truck for transfer and carry the product.
Promotion
- Our product use free delivery for customers who buy 1000 bottle. We have
promotion discount rate 2% for customer 1 year, 5% for customer 3-5 years. We will
change promotion by season and festival.
28
Advertising
- Our company will advertise on the internet and word of mouth. Some times we
promote in local radio. We do the handbill and promote in Big c Chaing Rai. We will
start small advertise but if we sell very well, we will promote on TV or newspaper.
Marketing
- We focus this business in Chaing Rai and then spread to each part of Thailand.
We do market about niche market and local market.
Sale force
- We hope to add our product at 7-11 and OTOP
Sale Forecast/Profit Estimation
The secret of Samunprai is a project for entrepreneur that wants to open for
enterprise and sell the herb drink in form of sale in tourist place therefore herb drink
for health business are the business that has popular. The consumer has more
interested in health and also daily life of people in current that have to work with the
time it make the consumer selection are the way to choose of consumer who want
comfortable in consume the herb drink.
The main target group in this project is working people from middle manager
and first manager (25-59 years old) then who like to have a new life take care of
health and think about the taste. Next target group is student in university (20-24
years old) then they interested in test in new thing and the last target group is the
people in age of over 60 years old then they more interested in health and have a
experience to drink the herb drink before.
In the sale product is sell product in public area for example Night Brazar,
Walking Street, market in university and temporary market in Northern Province.
- Socio-cultural environment: now it has many herb drinks in market so we
should to produce herb drink in new version like herb drink for beauty and
consider taste of herb drink.
- Technological environment: now it has high technology that make the herb
drink can be kept in longer time so herb drink have low quality.
- Economic environment: if it has the economic crisis that it will make cost
of producing higher and make we change the price of product higher as
well.
Chiangrai province has 1,227,317 populations. In 0.5 % of population will take our
product to the first moth and circulation will increase each moth depend on season.
We estimate that circulation will increase 25% in each year.
29
The sale estimate of Secret of Samunpai product for 5 year
year 1
sale (Baht) Credit Term 1 month
Description 1 2 3 4 5 6 7 8 9 10 11 12 total
Super mixed
secret 24546 24546 24546 28228 23319 23319 23319 23319 29149 32064 40080 40080 336515
Alow Vera 24546 24546 24546 28228 23319 23319 23319 23319 29149 32064 40080 40080 336515
Pomegranate 24546 24546 24546 28228 23319 23319 23319 23319 29149 32064 40080 40080 336515
Tiger herbal 24546 24546 24546 28228 23319 23319 23319 23319 29149 32064 40080 40080 336515
Timarind 24546 24546 24546 28228 23319 23319 23319 23319 29149 32064 40080 40080 336515
Total 122732 122732 122732 141141 116595 116595 116595 116595 145744 160318 200398 200398 1682575
year 2
Super mixed
secret 40080 29456 29456 33874 27983 27983 27983 27983 34979 38476 48095 48095 414441.9
Alow Vera 40080 29456 29456 33874 27983 27983 27983 27983 34979 38476 48095 48095 414441.9
Pomegranate 40080 29456 29456 33874 27983 27983 27983 27983 34979 38476 48095 48095 414441.9
Tiger herbal 40080 29456 29456 33874 27983 27983 27983 27983 34979 38476 48095 48095 414441.9
Timarind 40080 29456 29456 33874 27983 27983 27983 27983 34979 38476 48095 48095 414441.9
Total 200398 147278 147278 169370 139914 139914 139914 139914 174893 192382 240477 240477 2072210
30
The sale estimate of Secret of Samunpai product for 5 year (continue)
year 3
Super mixed
secret 50099 36820 36820 42342 34979 34979 34979 34979 43723 48095 60119 60119 518052
Alow Vera 50099 36820 36820 42342 34979 34979 34979 34979 43723 48095 60119 60119 518052
Pomegranate 50099 36820 36820 42342 34979 34979 34979 34979 43723 48095 60119 60119 518052
Tiger herbal 50099 36820 36820 42342 34979 34979 34979 34979 43723 48095 60119 60119 518052
Timarind 50099 36820 36820 42342 34979 34979 34979 34979 43723 48095 60119 60119 518052
Total 250497 184098 184098 211712 174893 174893 174893 174893 218616 240477 300597 300597 2590262
year 4
Super mixed
secret 62624 46024 46024 52928 43723 43723 43723 43723 54654 60119 75149 75149 647565
Alow Vera 62624 46024 46024 52928 43723 43723 43723 43723 54654 60119 75149 75149 647565
Pomegranate 62624 46024 46024 52928 43723 43723 43723 43723 54654 60119 75149 75149 647565
Tiger herbal 62624 46024 46024 52928 43723 43723 43723 43723 54654 60119 75149 75149 647565
Timarind 62624 46024 46024 52928 43723 43723 43723 43723 54654 60119 75149 75149 647565
Total 313122 230122 230122 264640 218616 218616 218616 218616 273270 300597 375746 375746 3237827
31
The sale estimate of Secret of Samunpai product for 5 year (continue)
year 5
Super mixed
secret 78280 57530 57530 66160 54654 54654 54654 54654 68317 75149 93936 93936 809457
Alow Vera 78280 57530 57530 66160 54654 54654 54654 54654 68317 75149 93936 93936 809457
Pomegranate 78280 57530 57530 66160 54654 54654 54654 54654 68317 75149 93936 93936 809457
Tiger herbal 78280 57530 57530 66160 54654 54654 54654 54654 68317 75149 93936 93936 809457
Timarind 78280 57530 57530 66160 54654 54654 54654 54654 68317 75149 93936 93936 809457
Total 391402 287652 287652 330800 273270 273270 273270 273270 341587 375746 469682 469682 4047284
Summary of sale estimate
Description year 1 year 2 year 3 year 4 year 5

Super mixed secret 336515 414441 518052 647565 809457
Alow Vera 336515 414441 518052 647565 809457
Pomegranate 336515 414441 518052 647565 809457
Tiger herbal 336515 414441 518052 647565 809457
Timarind 336515 414441 518052 647565 809457
total 1682575 2072205 2590260 3237825 4047285
32
Marketing Expense (Sale Incentive)

Marketing expense often pay relate to radio advertise, leaflet and signboard. We estimate
the marketing expense for 5 years allowing
Year 1
Markething Expense (Bath) Credit Term 1 month
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Radio Ads. 2,500 2,500 2,500 3,000 2,500 2,500 2,500 2,500 2,800 2,800 3,500 3,500 33,100
Leaflet 1,000 1,000 1,000 1,500 1,000 1,000 1,000 1,000 1,200 1,200 1,800 1,800 14,500
Signboard 1,500 1,500 1,500 1,800 1,800 1,800 1,800 1,800 1,600 1,600 2,000 2,000 20,700
Total 5,000 5,000 5,000 6,300 5,300 5,300 5,300 5,300 5,600 5,600 7,300 7,300 68,300
Year 2
Radio Ads. 3,500 2,800 2,800 3,300 2,500 2,500 2,500 2,500 2,800 2,800 3,000 3,000 34,000
Leaflet 1,800 1,000 1,000 1,500 1,000 1,000 1,000 1,000 1,200 1,200 1,800 1,800 15,300
Signboard 2,000 1,500 1,500 1,800 1,800 1,800 1,800 1,800 1,600 1,600 2,000 2,000 21,200
Total 7,300 5,300 5,300 6,600 5,300 5,300 5,300 5,300 5,600 5,600 6,800 6,800 70,500
Year 3
Radio Ads. 4,375 3,500 3,500 4,125 3,125 3,125 3,125 3,125 3,500 3,500 3,750 3,750 42,500
Leaflet 2,250 1,250 1,250 1,875 1,250 1,250 1,250 1,250 1,500 1,500 2,250 2,250 19,125
Signboard 2,500 1,875 1,875 2,250 2,250 2,250 2,250 2,250 2,000 2,000 2,500 2,500 26,500
Total 9,125 6,625 6,625 8,250 6,625 6,625 6,625 6,625 7,000 7,000 8,500 8,500 88,125
Year 4
Radio Ads. 5,469 4,375 4,375 5,156 3,906 3,906 3,906 3,906 4,375 4,375 4,688 4,688 53,125
Leaflet 2,813 1,563 1,563 2,344 1,563 1,563 1,563 1,563 1,875 1,875 2,813 2,813 23,906
Signboard 3,125 2,344 2,344 2,813 2,813 2,813 2,813 2,813 2,500 2,500 3,125 3,125 33,125
Total 11,406 8,281 8,281 10,313 8,281 8,281 8,281 8,281 8,750 8,750 10,625 10,625 110,156
Year 5
Radio Ads. 6,836 5,469 5,469 6,445 4,883 4,883 4,883 4,883 5,469 5,469 5,859 5,859 66,406
Leaflet 3,516 1,953 1,953 2,930 1,953 1,953 1,953 1,953 2,344 2,344 3,516 3,516 29,883
Signboard 3,906 2,930 2,930 3,516 3,516 3,516 3,516 3,516 3,125 3,125 3,906 3,906 41,406
Total 14,258 10,352 10,352 12,891 10,352 10,352 10,352 10,352 10,938 10,938 13,281 13,281 137,695
33
Chapter 4: Technical Feasibility Study

Product Characteristics
- Healthy and some are detoxify
Specification
- Package: Plastic‘s Bottle 0.3L
- Price: 20 Baths
- Dimension: cylinder shape
- Life time: Max 7 days
34
Production Process
Select Samunpai
Clean Samunpai
Prepare distill (cut, grind)
Distill by machine
Pasteurization
Packing
Figure 4.1 Producing process

35
Methods of product
1. Super mixed secret
Ingredients
- Chinese celery 1 Measuring cup
- Cucumber 1 Measuring cup
- Carrot 1 Measuring cup
First, peeling carrot and cucumber, clean it all then chop all it. Chase down with
take all ingredients by distill machine then mixed it together.
2. Pomegranate
Ingredients
- Seeds of pomegranate 100 Grams
- Syrup ¼ Measuring cup
- Water 1 Measuring cup
- Salt ½ Tea spoon
Take the seed screw up with the water and take the seed out. Secondary filter it
with white tulle then heat up around 5 minutes, put syrup and salt mixed it. Take
the pot off the stove.
3. Agave (Aloe Vera)
Ingredients
- Agave 250 Grams

- Pandanus leaf 4-5 Leafs
- Syrup ¼ Measuring cup
- Honey 2 Table spoons
Peeling the agave then clean the yellow gum out. After that boiled agave around 3
minutes. Rest it until cool next chop agave like a dices. Prepare for pandanus leafs
by boiled with water. Finally bring the agave that already done to the pot of
pandanus leaf and put syrup and honey in it.
4. Tiger harbal (Bai Bua Bok)
Ingredients
- Bai Bua Bok 250 Grams

- Water 0.5 Liter
- Syrup 1 Measuring cup
- Honey 1 Table spoon
Clean Bai Bua Bok passes the cleanly water. Spin the lefts with a blander then
filter with the white tulle. Put syrup and honey.
36
5. Tamarind
Ingredients
- Heavy tamarind 200 Grams
- Sugar 500 Grams
- Salt 2 Tea spoons
- Water 3 Liters
Clan tamarind and put it in the pot, full the water then warm it up. Rest until it
cool down then leach the tamarind out with the tulle. Heat it up again and put
down the sugar and salt, mixed it together.
Location
Factory
Land and building cost is 966,000 baths
Address: T. Maekam A. Maechan ,Chiangrai
Figure 4.2 Land and factory
This is a location for build factory and we produce the product in this area.
Map of land
Figure 4.3 Map of land

http://www.npashowroom.ktb.co.th/
37
Factory Lay out
Figure 4.4 Factory lay out
Machine/ Tools/ Equipments

- Acid – base measurement for standard of herbs
- Kettle machine
- Packing machine
- Crusher machine
- Refrigerator
- Pick up
 Susuki carry new pick up
Figure 4.5 Susuki carry pick up

38
- Telephone
- Computer
-
 HP Pavilion, a1370L
Figure 4.6 computer use for administrative
Logistics Management
- Order herbs from the market in Chiangrai and Huay Sak
- Production are send to our factory
- Order bottle from Chiang Mai Ruampack plastic company
- Delivery product by our company pick up or middleman are receive product
by themselves
Facility Management
- Utility of our company is 4% of revenue
39
Investment cost
The beginning of investment cost in Secret of Samunpai has total 2,983,600
baths including the investment in fixed cost 1,663,600 baths, pre-operating cost
20,000 baths and working capital estimate cost 1,300,000 with each version of the
following
Investment Cost
investment in fixed cost 1,663,600
Land and Factory 1,166,000
Kettle machine 20,000
Packing machine 50,000
Crusher machine 50,000
Refrigerator 46,000
Equipment 10,000
Pick up 300,000
Telephone 2,000
Computer 19,600
pre-operating cost 20,000
working capital estimate 1,300,000
total 2,983,600
Figure 4.4 investment cost
Operating cost
Operation cost in 5 years including
1. Raw material cost
year 1
raw material amount bath bath
bottle 40,000 bottles 3 120,000
label 40,000 pieces 1 20,000
Carrot 1,920 kgs 30 57,600
Cucumber 1,920 kgs 15 28,800
Chinese celery 800 kgs 30 24,000
Tamarind 800 kgs 20 16,000
Tiger herbal 1,920 kgs 20 38,400
Aloe Vara 3,200 kgs 20 64,000
Pomegranate 3,800 kgs 35 133,000
sugar 2,000 kgs 22 44,000
water 6,400 lites 1 4,480
honey 1,600 kgs 60 96,000

salt kgs 4,800
40
480 10
total 651,080
year 2
label 45,000 pieces 1 22,500
Carrot 2,150 kgs 30 64,500
Cucumber 2,150 kgs 15 32,250
Aloe Vara 3,500 kgs 20 70,000
sugar 2,150 kgs 22 47,300
honey 1,700 kgs 60 102,000
salt 498 kgs 10 4,980

total 725,500
year 3
label 58,500 pieces 1 29,250
Carrot 2,725 kgs 30 81,750
Cucumber 2,725 kgs 15 40,875
Aloe Vara 4,480 kgs 20 89,600
sugar 9,140 kgs 22 201,080
honey 2,140 kgs 60 128,400

salt kgs 5,020
41
502 10
total 1,055,054
year 4
label 73,276 pieces 1 36,638
Carrot 3,563 Kgs. 30 106,890
Cucumber 3,563 Kgs. 15 53,445
Chinese celery 1,365 Kgs. 30 40,950
Tamarind 1,365 Kgs. 20 27,300
Tiger herbal 3,563 Kgs. 20 71,260
Aloe Vara 5,762 Kgs. 20 115,240
Pomegranate 7,227 Kgs. 35 252,945
sugar 3,563 Kgs. 22 78,386
water 1,072 lites 1 750
honey 2,731 Kgs. 60 163,860
salt 779 Kgs. 10 7,790

total 1,175,282
year 5
label 91,595 pieces 1 45,798
Carrot 4,479 kgs 30 134,370
Cucumber 4,479 kgs 15 67,185
Chinese celery 1,731 kgs 30 51,930
Tamarind 1,731 kgs 20 34,620
Aloe Vara 7,227 kgs 20 144,540
sugar 4,479 kgs 22 98,538
water 13,655 lites 1 9,559
honey 3,565 kgs 60 213,900
salt 989 kgs 10 9,890

total 1,490,709
Figure 4.4 table of operating cost
42
Labor cost
year 1
amount(person) bath/mount bath/year
Direct labor
Producer 5 4200 252000
Indirect labor
selling 2 5000 120000
total 372000
year 2
Direct labor
Producer 5 4200 252000
Indirect labor
selling 2 5000 120000
total 372000
year 3
Direct labor
Producer 5 4200 252000
Indirect labor
selling 2 5000 120000
total 372000
year 4
Direct labor
Producer 6 4200 302400
Indirect labor
selling 3 5000 180000
total 482400
year5
Direct labor
Producer 6 4200 302400
Indirect labor
selling 3 5000 180000
total 482400
Figure 4.5 Table of labor cost
43
Infrastructure cost
Infrastructure cost are including, utilities cost, oil cost and telephone cost so,
estimate infrastructure cost following
(Unit/Baths)
Cost year 1 year 2 year 3 year 4 year 5 total
utilities 21600 25920 31104 37325 44790 160739
oil 36000 43200 51840 62208 74650 267898
telephone 6000 7200 8640 10368 12442 44650
total 57600 69120 82944 99533 119439 428636
Figure 4.6 Table of infrastructure cost
Depreciation cost
Depreciation cost of factory, tools and equipment is 5 %

(Unit/Baths)
depreciation cost rate (%) year1 year2 year3 year4 year5
Land and Factory 1166000 5 58300 58300 58300 58300 58300
tools and equipment 478000 5 23900 23900 23900 23900 23900
pre operation 20000 5 1000 1000 1000 1000 1000
total 83200 83200 83200 83200 83200
Figure 4.7 Table of depreciation cost
Interest loans
The Loan from financial institution about 2983600 bath payable in period 8
years and rate of interest is 8% per year will payable the principle and the interest
about 519190 per year.
(Unit/Baths)
Beginning of year Return Ending of year
Year Pay annually Pay interest
principle principle principle
1 2983600 519190 238688 280502 2703098
2 2703098 519190 216248 302943 2400155
3 2400155 519190 192012 327178 2072977
4 2072977 519190 165838 353352 1719625
5 1719625 519190 137570 381620 1338004
6 1338004 519190 107040 412150 925854
7 925854 519190 74068 445122 480732
8 480732 519190 38459 480732 0
Figure 4.8 Table of interest loans

44
Operating cost
(Unit/Baths)
year
1 2 3 4 5
Available cost
raw material 651,080 725,500 1055,054 1,175,282 1,490,709
labor 252,000 252,000 252,000 302,400 302,400
infrastructure 57,600 69,120 82,944 99,533 119,439
Total available cost 960,680 1,046,620 1,389,998 1,577,215 1,912,548
Fixed cost
administrative 120,000 120,000 120,000 180,000 180,000
selling and advertising 68,300 70,500 88,125 110,156 137,695
depreciation 83,200 83,200 83,200 83,200 83,200
interest 238688 216248 192012 165838 197570
Total fixed cost 510188 489948 483337 539194 598465
Total operation cost 1470868 1536568 1873335 2116409 2511013

Figure 4.9 Table of operation cost
Initial fixed investment cost

(Unit/Baths)
Cost
1. land 866,000
2. factory and building 300,000
3. machines and equipments 497,600
total initial fixed investment cost 1,663,600
Figure 4.10 Table of initial fixed investment cost
Working capital estimate

(Unit/Baths)
year
period 1 2 3 4 5
1. asset flow
1.1 acount receivable 504772 621661 777078 971347 1214186
1.2 merchandise inventory
(1) rawmeterial 651080 725500 1055054 1175282 1490709
(2) finish goods 136421 136421 136421 136421 136421
1.3 cash for emergency 1341976 1341976 1341976 1341976 1341976
total working capital 2634249 2825558 3310529 3625026 4183292
2. debt flow
2.1 acount payable 2010529 2010530 2010531 2010529 2010529
3. working capital
3.1 net working capital 623720 815028 1299998 1614497 2172763
3.2 increase working capital 623720 191308 1108690 505807 1666956
Figure 4.11 Table of working capital estimate

45
Total initial investment cost

(Unit/Baths)
Cost
1. initial investment cost 1663600
2. pre operation cost 20000
3. working capital estimate 1300000
Total initial investment cost 2983600
Figure 4.12 Table of total initial investment cost
Annual production cost estimate

(Unit/Baths)
Year 1 Year 2 Year 3 Year 4 Year 5
Producing cost
raw material 651,080 725,500 1,055,054 1,175,282 1,490,709
labor 252,000 252,000 252,000 302,400 302,400
infrastructure 57,600 69,120 82,944 99,533 119,439
Total producing cost
(non depreciation) 960,680 1,046,620 1,389,998 1,577,215 1,912,548
Depreciation cost
Land and Factory 58300 58300 58300 58300 58300
tools and equipment 23900 23900 23900 23900 23900
Total depreciation cost 82200 82200 82200 82200 82200
Total producing cost 1042880 1128820 1472198 1659415 1994748
Figure 4.13 Table of annual production cost estimate
Annual sale and administration cost estimate

(Unit/Baths)
Year 1 Year 2 Year 3 Year 4 Year 5
Sale and administration cost (depresiation cost)
sale and administration cost 188300 190500 208125 290156 317695
interest cost 238688 216248 192012 165838 197570
Total sale and administration cost
(depresiation cost) 426988 406748 400137 455994 515265
Depreciation cost
factory 58300 58300 58300 58300 58300
pre-operation 1000 1000 1000 1000 1000
Total depreciation cost 59300 59300 59300 59300 59300
Total all sale and administration cost 486288 466048 459437 515294 574565
Figure 4.14 Table of annual sale and administration cost estimate
46
Unit production cost estimate

(Unit/Baths)
1 2 3 4 5
Producing cost 960,680 1,046,620 1,389,998 1,577,215 1,912,548
Total sale and administration cost
(depreciation cost) 426988 406748 400137 455994 515265
Total operation cost
(non depreciation cost) 1,387,668 1,453,368 1,790,135 2,033,209 2,427,813
Deprecation cost
Land and Factory 58300 58300 58300 58300 58300
tools and equipment 23900 23900 23900 23900 23900
pre operation 1000 1000 1000 1000 1000
Total depreciation 83200 83200 83200 83200 83200
Total all operation 1,470,868 1,536,568 1,873,335 2,116,409 2,511,013
Amount of production 84128 103610 129513 161891 202364
Cost of piece 17.48369 14.83031 14.46446 13.07305 12.4084
Figure 4.15 Table of unit production cost estimate
47
Chapter 5: Financial Analysis
Pro-forma profit and loss statement

(Unit/Baths)
year 1 2 3 4 5
income from sale 1682575 2072205 2590260 3237825 4047285
deduct producing cost 1042880 1128820 1472198 1659415 1994748
profit primary 639695 943385 1118062 1578410 2052537
deduct sale and
administration cost 486288 466048 459437 515294 574565
income before tax 153407 477337 658625 1063116 1477972
income tax 0 0 0 0 0
net profit 153407 477337 658625 1063116 1477972
retain earnings 153407 630744 1289369 2352485 3830457
Figure 5.1 Table of pro-forma profit and loss statement
Pro forma Cash flow

(Unit/Baths)
year 0 1 2 3 4 5
Program producing
A. Receive cash flow
income from sale 1682575 2072205 2590260 3237825 4047285
B. Pay cash flow
1.total investment
1.1pay interest 238688 216248 192012 165838 197570
2.operating cost
(non depreciation) 1387668 1453368 1790135 2033209 2427813
3.income tax 0 0 0 0 0
Total cash flow 0 1626356 1669616 1982147 2199047 2625383
C. Net cash flow 56219 402589 608113 1038778 1421902
Figure 5.2 Table of cash flow
48
Cash budget
(Unit/Baths)
year 0 1 2 3 4 5
a. cash receive estimate
1. cash from capital 2986000
2. income from sale 1682575 2072205 2590260 3237825 4047285
total
cash 2986000 1682575 2072205 2590260 3237825 4047285
b. cash expense estimate
1. investment cost
1.1 initial fixed
investment cost 1,663,600
1.2 pre operation cost 20000
1.3 increase working
capital 623720 191308 484970 314499 558266
2. total operation cost 1387668 1,453,368 1,790,135 2,033,209 2,427,813
3. pay return principle 280502 302943 327178 353352 381620
4. income tax 0 0 0 0 0
total cash expense 1,683,600 2291890 1947619 2602283 2701060 3367699
c. net cash 1,302,400 -609,315 124,586 -12,023 536,765 679,586
d. ending retain earnings 1302400 693,085 817,671 805,648 1,342,413 2,021,999
Figure 5.3 Table of cash budget
Pro forma balance sheet

(Unit/Baths)
year 0 1 2 3 4 5
Asset
1. asset flow
1.1 cash 1302400 693,085 817,671 805,648 1,342,413 2,021,999
1.2 asset flow other 2634249 2825558 3310529 3625026 4183292
total asset flow 1302400 3327334 3643229 4116177 4967439 6205291
2. fixed asset
2.1 land 866,000 866,000 866,000 866,000 866,000 866,000
2.2 factory and
building (Net) 300,000 300,000 300,000 300,000 300,000 300,000
2.3 machines and
equipments (Net) 497,600 497,600 497,600 497,600 497,600 497,600
2.4 pre operating (Net) 20000 20000 20000 20000 20000 20000
total fixed asset 1,683,600 1,683,600 1,683,600 1,683,600 1,683,600 1,683,600
total asset 2,986,000 5,010,934 5,326,829 5,799,777 6,651,039 7,888,891
Liability and equity

3. liability
3.1 liability flow 2010529 2010530 2010531 2010529 2010529
3.2 long term debt 2983600 2703098 2400155 2072977 1719625 1338004
total liability 4713627 4410685 4083508 3730154 3348533
4. equity
4.1 capital
4.2 retain earnings 153407 630744 1289369 2352485 3830457
total quity 9580661 9452114 9456385 9812793 10527523
total liability and equity 14294288 13862799 13539893 13542947 13876056
49
Figure 5.4 Table of cash budget

Chapter 6: Risk management
Internal factor
- Labor ethics which we can‘t direct control because ethics of humans depend
on each person.
- We must have insurance for our employee which it can motivate to work of
employee.
- Salary is suite for each position of organization and it can to attract to work in
our organization.
- Tran of healthy in nowadays isn‘t unstable maybe in the future this can down.
- Maybe we will breast with unstable of finance in organize.
- Lack of quality controlling to internal organize.
- Management fraud to internal organization which maybe it hard to check.
- General management must to have skill for management in organize.
External factor
General Environment Risk
Political
The government has the measure encourages and support both of seriously
production side and the exporting such as the measure encourages the investment.
Office of the Board of Investment (BOI)give precedence specially with medium-size
business and small (SMEs) include the business produces goods OTOP at
standardized community products make these business receives ultimate right with
income juristic person exemption for 8 year and except import machine duty that
apply in the production.
Economies
Inflation rates
In economics, the inflation rate is a measure of inflation, the rate of increase of

a price index (for example, a consumer price index).It is the percentage rate of change
in price level over time. [1] The rate of decrease in the purchasing power of money is
approximately equal.
50
Inflation rate (consumer prices): 5.5% (2008 est.)

2.2% (2007 est.)
Inflation rate (consumer Percent Date of

Year Rank
prices) Change Information
2003 .60 % 199 2002
2004 1.80 % 165 200.00 % 2003 est.
2005 2.80 % 86 55.56 % 2004 est.
2006 4.50 % 130 60.71 % 2005 est.
2007 5.10 % 136 13.33 % 2006 est.
2008 2.20 % 47 -56.86 % 2007 est.
2009 5.50 % 91 150.00 % 2008 est.
This entry furnishes the annual percent change in consumer prices compared
with the previous year's consumer prices.
Our product used from herbal and the price of principal not high but the cost
of instrument , employee etc. We must spend money more in this past if we set the
price high in inflation the employee no have power to buy. So we should set the price
in medium for all situations.
51
GDP trends
This is a chart of trend of gross domestic product of Thailand at market

prices estimated by the International Monetary Fund with figures in millions
of Thai Baht.
Inflation Index Per Capita Income

Year Gross Domestic Product US Dollar Exchange
(2000=100) (as % of USA)
1980 662,482 20.47 Baht 41 5.67
1985 1,056,496 27.15 Baht 53 4.24
1990 2,191,100 25.58 Baht 64 6.54
1995 4,186,212 24.91 Baht 81 10.17
2000 4,922,731 40.11 Baht 100 5.65
2005 6,924,273 41.02 Baht 111 6.45
In 2007 industry contributed 43.9% of gross domestic product (GDP)

but employed only 14% of the workforce. This proportion is the opposite of the one
applying to agriculture. Industry expanded at an average annual rate of 3.4 percent
during the 1995–2005 periods. The most important subsection of industry is
manufacturing, which accounted for 34.5 percent of GDP in 2004.
Thailand is becoming a center of automobile manufacturing for the Association of

Southeast Asian Nations (ASEAN) market. By 2004 automobile production had
reached 930,000 units, more than twice as much as in 2001. Two automakers active in
Thailand are Toyota and Ford. The expansion of the automotive industry has led to a
boom in domestic steel production.
Thailand's electronics industry faces competition from Malaysia and Singapore, while
its textile industry faces competition from China and Vietnam.
52
Social
Identify Analyze Action

Social
- herb drink may not - Now it has a lot of - Try to promote the
popular in wide area beverage to select to drink advantage of herb drink to
therefore herb drink may the people know more.
not more popular.
Cultural
- extract is not popular in - Most of each home of - Sometimes the extract
local people people have herb in each product may have the
other so they may prefer to advantage more than
eat fresh herb or vegetable natural like can bring
more than herb extract. many herbs mix together
and have good taste.
Demographic
- not wide of population - In Chiangrai province - Try to distribute product
has no a lot of population more than one place and
so the market may be have many styles to
narrow to focus and promote like booth in
distribute product. many places.
Environment
- have enough herb in local - Most of each home in the - To give the advantage of
area local people have a lot of herb drink like better taste,
herb and easy to find when comfortable to buy, easy to
they want to eat so they drink and have tasting
may find the herb or nearly natural.
vegetable in the local area
and then they may be
make the herb drink by
themselves when they
want to drink because it
easy to do.
53
Technology
1. Internet
- Nowadays, Internet is a good channel for promote the product so, Our
Company use internet for sell the product. Computer is important for keep
information. It helps to do our business. Internet can help you to distribute product but
it can destroy you if you cannot manage it. Hacker or Competitor can use internet for
steal information so, you should to manage the risk.
This is the way to manage the risk:

1.1 Use the programs for protect virus and hacker
1.2 Check information before promote on internet
1.3 Develop about information
2. Communication
- It has many ways to communication with customers. It has many problems
for employees and customers. It is a risk management. Our company sees this
problem. We must improve the skill for employees to connect customers. We do real
information and understand about our products. We will train the employee for human
skill and advertise the product.
3. IT organization
- Our company is a small business so, our IT is an equipment for produce the
products. We have a risk management about money for set IT organization because
we have a few assets. This is a problem for our company. If our company is growing
in 3-5 years, we will improve about IT organization.
4. Environmental
- Our company should to improve technology everyday. We try to the best
brand in Chiang Rai so, we will follow the technology. Environment is a good for
develop technology. Our company hasn‘t problem about pollution and waste from
equipment so, the people won‘t be disturb by our company.
54
Five Forces Model
Rivalry among Established Firms

We find out that in Chiangrai have many beverage retailers of Thai herbs. By
the survey results, they many at Sunday walking street, Nigh bazaar and all of market
places in around Ampuer Muang Chiangrai. Moreover there are drinks in the form of
can and box which are ready to drink. The producers are neighbor provinces such as
Chaing Mai and Pay-ao.
New Entrants
In the firm of the market; the beverages of Thai Herbs is regarded as less of
the barrier to entry because they would not pay a high capital and no need the high
technology in the process. Therefore the trend of the healthy beverages‘ is very fever
thus many investors are interested in the business. However the new entry will grow
in the market segment. The competitors are increasing for this reason the profit in firm
would go down.
Substitute Products
The Substitute products which able to instead of Thai herbs beverage such as
milk, soft drink, mineral water and other beverage that put some vitamin .They are
alternative choices for the consumer. Otherwise some of consumers want to create
menu by their own. They will find fruits and vegetables for do some beverage because
some are thinking it safety and clean. The one specification Thai herbs beverage are
for everyone who love healthy but in other hands the substitute products have the
nutrition fact as much as the herbs beverage.
Bargaining Power of Suppliers

Therefore the raw materials which are using in process can easy to find and
the goods from agriculture are having low costs. In addition they are many suppliers
thus the investor is higher bargaining power than suppliers. However the investors are
confronting with the even risk about natural disaster that makes the suppliers will get
the edge on investor.
Bargaining Power of Buyers

Nowadays there are many Thai herbs beverages in the market and also have
substitute product which can be the alternative. Hence the buyers have more choices
for pick the best one for their health. When the producers are not able to make the
buyers are loyalty in the brand, they can switching cost by their bargaining power.
__________________________________________
55
Member of the Secrets of Samunpai

Miss Sasipa Pongsi 4831205158 Tel. 0876060598
baku_kuba@hotmail.com
Miss Ganitta Gosalakorn 4931205004 Tel. 0847414699

hoy_jub@hotmail.com
Miss Naritsara Prompitak 4931205067 Tel. 0849886898

Hatari_05@hotmail.com
Miss Piyaporn Kayayseang 4931205083 Tel. 0839246960

Gift_a-ha@hotmail.com
Miss Pimjai Chatrittirong 4931205102 Tel. 0847395858

U_pim_aim@hotmail.com
Mr. Viriya Danwongderm 4931205151 Tel. 0866014465

Dragonoui@hotmail.com
Miss Piyanuch Jitchana 4931207072 Tel. 0843724889

Ekaleang_za@hotmail.com
Miss Sakawrat Pakdeerat 5031207119 Tel. 0892188120

Bowlingpompom@hotmail.com
_________________________________________
56

Project Feasibilty Study and Evaluation - Aj. Chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010

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1

The group of Secret of Samunpai

Chapter 2 Industry Profile 6

Chapter 3 Market Feasibility Study 15

Chapter 4 Technical Feasibility Study 28

 Annual and Administration Cost 40

Chapter 5 Financial Analysis 42

Chapter 6 Risk Management 44

Secret of Samunpai Company is established since 2010, our company has an

From research marketing in present believe in market of herbs beverage have

Project Title: Secret of Samunpai

Background and significance of the Project

- Help heal a wound in the stomach

- Help the casting slips of joint bone and

2. Pomegranate In the pomegranate

3. Tiger herbal is worthy food there is the

Figure 1.3 Tiger Herbal

4. Tamarind the advantage of tamarind water:

Figure 1.4 Tamarinds

Population of Chiangrai (2008)

Minimum Wage Rate

1. Study about feasibility of business project

1. The feasibility result of the project

Activities/Month November December January February March

Study about Thai herbs in local area

Research marketing in Chiangrai

Create specific formula of product

Operate production of product

Time frame of the study

November 2009 – March 2010

Chapter 2: Industry Profile

The Earliest Uses

Herbs in Ancient Civilizations

Herbs in Medieval Europe

Herbalism, Botany and Medicine

In 1652, Nicholas Culpeper published a comprehensive herbal, The English

For centuries, herbalism — and botany in general — suffered from problems of

Western medicine eventually turned away from herbalism in favor of chemical

What are herbs?

History of using herbs in Thailand

1. Use for medicine

Kind of herbs beverage

2. Fruit juice and beverage from richest

The different of taste to sale in present market and popular are

The different quality of product is meaning degree of herbs ready to beverage.

1. Herbal beverage 100% can divide 2 kinds are:

2. Herbs beverage has degree of 25-50 %. It is most popular in present market

Figure 2.3 Pomegranate

Figure 2.4 Agave (Aloe Vera)

Figure 2.5 Tiger harbal (Bai Bua Bok)

Figure 2.6 Tamarind

Vision and mission

Chapter 3: Market Feasibility Study

General Environment Analysis

- Develop the industry of herbal product.

- Contribute Thailand to the central for the product of healthy.

- Encourage the exportation and abate the importation.

- Develop the quality, formula and safeness of herbal.

- Project Herbal of the year

- Social and Environment

And apply in industrial

So technology in present is the important with every company

Competition Analysis (3Cs Analysis)