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Content
Introduction -Background and Significance of the Project -Project Objective(s) - Benefits of Project Identify the benefits of this study -Activities/Time Frame Gantt chart and Time frame of the study

Industry Profile -Nature of Industry -Situation of Industry -Product/Service

Market Feasibility Study - Market Analysis -General Environment Analysis Political, Economy, Social and Environment, and Technology - Competition Analysis (3C Analysis) -STP Analysis-Marketing Mix Strategy -Sales Forecast/Profit Estimation -Marketing Expenses (Sales Incentive) -Conclusion

Investment Cost -Cost of Investment-Pre -Operating Cost-Investment Cost Land Buildings Equipments Tools

Etc-Location -Facility Layout -Machine/Tools/ Equipments -Depreciation -Conclusion

Production and Operations Analysis -Product Characteristics (in Detail) -Specification, Feathers, Dimension, Life Time, etc. -Production/Services Process - Operating Cost Raw material Cost Direct Labor Cost Overhead (If Any) -Logistics Management -Facility Management

Administration analysis - Management Analysis Facility Cost (Electricity, Telephone, Fax, etc.) Salary -Conclusion

Financial Analysis - Financial Assumption for Business. Profit/ Loss Statement Cash Flow Balance Sheet

Risk Management -Identifying a list of potential risks.

-A risk management plan included statement of how you plan to reduce risk. - The steps that you will take to mitigate the risks. -A risk management plan included statement of how you plan to reduce risk. - The steps that you will take to mitigate the risks.

Summary

Chapter 1 Introduction Background and significant of the project Chiang Rai province is located in the northernmost of Thailand. Surrounding provinces are Phayao, Lampang and Chiang Mai. The north border of Chiang Rai is next to Shan State of Myanmar which has the highway cut through Myanmar in Mae Sai border that would have the forth Thai-Laos Friendship Bridge at Chiang Khong in the future. In the northeast border is next to the Mekong River and in the east is next to Luang Prabang Hill of Thai-Laos border. Chiang Rai is a scenery town which is a big province in Thailand that has a large area ranked as the 12th of the country. In the past, human society fosters itself by sufficiency economy system that every household can produce and consume productivities within their family. In order to do that, they use materials from natural resources in their local area even weave their own clothes. Then, the society has become bigger and the productivities they produced are greater than their needs so, that surplus has brought to exchange with other productivities the household cannot be produce. At that time there is no certainly place where people can exchange their productivities therefore they exchange their products at the source. After that, the society has been growing and become a big city that has an influence on trading; the demand of products has been increasing while trade has been expanding. Thus, there need to be a place where people can exchange those products that is called Market. Fresh market is a distribution of products in category of food and other consumer goods which are necessary for daily life. From the definition of Public Health Act, B.E. 2535 (1992) in section 4, Market place means a place ordinarily arranged for merchants to assemble to offer for sale goods consisting of animal, meat, vegetable, fruit, fresh or already prepared or cooked food, or perishable foodstuff, with or without other kinds of goods for sale, and includes an area arranged for merchants to assemble to offer said goods for sale regularly or from time to time or on appointed dates. In the next three years (2015), Thailand will participate in the AEC completely. The country will have an opportunity in order to import and export with 0% tariff. Thailand will be the country of the tourist destination and the airline center of Asean. Chiang Rai province is the

one of the province which has an effect from ACE. Because of Chiang Rai is the tourist destination which has many beautiful and interesting places for traveler. Furthermore the border of Chiang Rai is close to Loas and Myanmar. Chiang Rai also has an important port which is called Chiang San Port. Becoming one of the countries which participate in AEC will extend in a trend of the economics of Chiang Rai. This will cause to increase in purchasing power of Chiang Rai people. So, to do a fresh market business might be a good alternative in business because the life style and basic of life of people need food. This is the reason why we choose the fresh market business. Project Objectives To bring out the business knowledge in order to create a business plan. To study the process of doing business including with all business activities. To be the alternative market for consumer in Chiang Rai province. To increase jobs and revenue for people in the province. To study the feasibility and opportunity of the fresh market in Chiang Rai.

Benefits of the project 1. Benefit for group members To use the knowledge and gain more experience of the business. An opportunity to survey in a real situation for coordinating with different kind of divisions which it helps to operate the business project. To reinforce a skill of thinking that is step by step method.

2. Benefit for customer To reinforce the local people to have a better quality of life. To improve a standard of local people consumption. To expand the economy. A lifestyle of people will change and go along with a behavior of goodwill.

3. Benefit for entrepreneur For the entrepreneur who is interested in Fresh market investment, this project can be a guide planning of Fresh market.

Chapter 2 Industry profile Nature of industry Market was founded in Thailand since Sukhothai period as the stone inscription said Whoever wants to trade in elephants, so trades. Whoever wants to trade in horses, so trades. Whoever wants to trade in silver and gold, so trades. It shows that trade is also occurs for a long time started from an exchange of things like goods or other stuff. After that, there is a regulation of determining something as a medium of exchange which are; cowrie shell, coin and money in the present time. Market in the former time is the economy source of Thai people because market is known as the place where anything can be found. When you lack of something, you can find it in the market. The market that has obvious evidence is the market in Ayutthaya period which is the period that the foreign came to trade in Thailand. So, Thai people have a relationship with trade for a long time. The market is the place where people in the community come to contract with each other in order to trade and exchange information so that it is a center of communication by land and water. In every communities of the country, people who have involve in the market are people who bring products into the market to sell and people who come to buy products such as the end-users and retailers. People who related to the market are an entrepreneur or the markets owner, trader, shipper, labor and the consumer who come to buy the product. At this point, the market is an important business sector which can create more jobs and generate income in economy system of the country. Nowadays, there are changes in economy and society that encourage the expansion of trade lead to many types of market such as clothes market, fresh market, flower market etc. According to the fresh market, it is the place where people trade the raw materials used in cooking, both fresh food and dry food and including instant food. In Thailand, fresh market can be found in the area of communities around the country. The growth and the recession of fresh market depend on the change in economy factors and social factors of each community such as the change in transportation system from transport by water to by land, expanding of community, crowded traffic system, high price of land, occurrence of a big and modern retail;

department store, discount store and supermarket, and including the change of customer behavior from preparing a meal at home to eating in the restaurant or consuming instant meal. However, fresh market should be acquainted to people in that community and should be convenience to travel to. The size of fresh market also depends on the size of that community where the market located or depends on number of product placed in the market. Moreover, the type of market is depends on environment and habitation of that community. For example, if the community has communicated by water, the market would be known as floating market. If the community has communicated by land, the market would be known as land market. In this case, fresh market is the place of culture that shows the livelihood of people in that society. (Source: http://www.stou.ac.th/study/sumrit/1-55/page3-1-55.html)

Situation of industry According to the rapid growth hog the cities, people way of life has been change. An increasing number of the supermarket and superstore affect to the change of customer behavior including; increasingly focused on the convenience, more concern about health, wellness, and safety food and consuming more ready to eat and prepared foods.

(Source:http://csi.mckinsey.com/knowledge_by_region/asia/rest_of_asia/thailands_modern_grocery_at_a_crossroads)

From this figure, it can be seen that the trend of the growth number of retail market or supermarket in Thailand is gradually increasing. This situation influence to the fresh market and many grocery shop significantly. In case of the increasing number of customer go to the market. Although, there are increasing numbers of supermarket, most of Thai people still go to the fresh market because of there are some local product that the supermarket did not have. And the price of the product in supermarket is more expensive than in the fresh market which conforms to customer behavior that more economizing and searching for value. According to a preliminary survey, most of the popular fresh market has variety choices of food such as vegetable, fruit, meat, dried food and etc. Moreover, most of them have a very competitive pricing strategy which has a huge effect on consumer decision. However, there are some weaknesses for those markets that they had over look. For example; bad water irrigation, poor air ventilation system, unplanned zoning and improper parking space. It can be seen that there still has a gap for some improvement and we will focus on turn their weakness into our strength which provides a standard of structure by having a public utility system along with clear divided zones and always keep a clear place because nowadays, most people in Chiang Rai are more concern about the hygienic condition and the trend of goodwill has been changing by time which means the lifestyle of consumption adjust to higher level. And this is the reason why we are interested to invest on a fresh market. From the discussion with the officer of Chiang Rai Municipal government, there are 12 important fresh market which under the control of the municipal. It can divide in to two categories: Private market Sri-sai-moon Market Fah Sawad Market Nim Si Seng Market Den-Hah Market Ma-Na Market Baan Mai Market Pah Kong Market Huay Pah Gang Market Chock Chareun Market

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Municipal Market Tet Sa Barn neung Market Tet Sa Barn Song Market (Sirikorn)

Almost of those markets that we indicated have different advantages and disadvantages. Such as in some of those market has wide variety of products with a limited area. Due to the crowded it causes problems about parking and traffic jam. In some market has a huge location and a parking space but only a few people use their service. Because of the life style of Chiang Rai people and their behavior, most of them have an easy life style and economical. They like to expense their money with many alternative products. So, doing a business in Chiang Rai especially in a fresh market business, we have to know the customer behavior of Chiang Rai people. In order to construct a fresh market which match with their life style and behavior.

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Product and service Product In the fresh market most of the product is fresh meat, sea food, vegetable, fruit and prepared foods. Some of the products which cannot find in the supermarket such as local vegetable and local food are founded in our fresh market.

Market with infrastructure

Market with non-infrastructure

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Service Almost the fresh market in Thailand has an improper and unclear zone. Most of the zone is depend on the relationship between sellers. For example, although they sell different type of products but they have a close relationship and stay in the same zone. This causes the disorganized and messy to the market. Moreover, most of the markets are lack of cleanness and maintenance. For example in the fresh meat zone, there are some problems about dirty ground and fishy smell. This cause people did not want to go to this zone of market. In some fresh market located in the community with crowded people can cause the traffic jam.

Parking

Public toilet

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Garbage pail

Weighing scale

(Source:http://www.nwmc.go.th/market_1.html)

(Source:http://www.teeteawthai.com/)

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Chapter 3 Market Feasibility Study Market Analysis General environment analysis Political According to ministerial regulations about market hygiene B.E. 2551 (2008) in section 1 that types of fresh market can be classified into 2 categories; Category 1 : The market with infrastructure and operate regularly or at least once a week which meets the requirements of Ministry of Public Health. Category 2 : The market with non-infrastructure and operate regularly or at least once a week which meets the requirements of Ministry of Public Health. Fresh market of municipal government that plan to build or develop in the future must be a market with permanent infrastructure classified as market in category 1. The market have to be clean and sanitary, proper number of stall which is suit to local area condition and eating culture and living of each region. The market has to be safe and easily access. Moreover, it has to be a place that has no effect to environment and society nearby such as bad smell, polluted water and trash. However, there are three requirements under Healthy Market from Department of Health B.E. 2551 (2008): Environmental health requirement The marketplace should be well-ventilated, floors in all market areas should be sloped to drain and Infrastructure should be well-maintained in good and hygienic condition. Pathway in the marketplace should be at least 2 meters width. Food and stuff should be placed for sale at least 60 centimeters above the floor. All goods and equipment using in marketplace should be placed properly and should be zoned. Each stall should have the number and the name of the owner and they should be easily seen. Trash containers should be separated from garbage, adequate in number, insanitary condition, and regularly cleaned. Toilet for male and female should be separated, well-ventilated and free from bad odors. Wastewater treatment should

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meet the standard (for marketplace with area at least 2500 m or above). Pest control should be conducted at least twice a year. Routine cleaning shall be done after each use every day and sanitary cleaning should be conducted at least once a month. Person who sells merchandise should perform good hygienic practices and dress with good personal hygiene during all working periods. Food safety requirement All food sold in the market must free from 5 chemical contaminants; Borax, Formalin, Salicylic acid, Sodium hydrosulfite, Beta agonist. Consumer protection requirement Person in charge for contamination screening test should be provided in designated area. It should provide an information boards and weighing scale for consumers. Chiang Rai government agencies can be divided in to 3 agencies. 1. The Regional Administration 2. The Central Administration 3. The Local Administration Include: 1 City Municipal 26 Local Municipal 1 Provincial Administration 116 Locality Administration The Mee Sub Fresh market is located and under the control of Chiang Rai City municipal. To be a standard fresh market must follow by the ministry of Public Health which is mentioned about the structure of the market, location, store management, waste disposal system and also health and environment standard. This point we have to concern on population and the need of consumer.

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Economy The economic circumstance of Chiang Rai at this time tends to expanded continuously follow by the government policy which encourage people to spend their money such as; increase minimum wage, raise the salary of government officer and reduce the corporate income tax to raise the demand and the purchasing power. The investment of private sector in Chiang Rai has been expanded to 17.1% due to the expanding and introducing of new project of real estate business to support the economic expansion in Chiang Rai. Moreover, there is an ASEAN Economic Community in 2015 which is an association of ASEAN country to create their own market and production base. There is a freedom movement of product, service, investment, capital and high skill labor. Besides, Chiang Rai is an important fortress area where is a stronghold in tourism and transportation due to the fact that it has a boundary connected to many countries. From these economic factors, it shows that establishing a fresh market is required by consumers. (Source:http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Mana gement_2_55.pdf) Social According to the increasing number of employment in Chiang Rai, people have more income and more quality of life. It can increase in the purchasing power of people to buy the product which match with their need. People in the Northern of Thailand has the characteristic of living as a big family, living near their neighborhood, mutually depend on each other, has simple lifestyle and still preserve the local culture and traditional custom. Although society nowadays is developing to be urban society; an increasing of housing development, development of technology and economy, but these change cannot cause an effect to the way of live of people that much. Due to people in Chiang Rai has a simple lifestyle, they does not live as a big family like in the past anymore. Nowadays, people are more concern on health not only the older person but also working persons and teenagers. They also pay attention to the healthy functional food in order to be good in health whether it is more expensive. People in Chiang Rai living as a single family and still prepare the meal in their household. So, the fresh market still is an alternative of Chiang Rai people to use the service in purchasing raw material for cooking or other consumption goods. As mentioned above, it shows that fresh market business still is required to meet the customers needs. To respond to the needs of customers,

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the entrepreneur has to focus on customer behavior and merchants or seller who rent the stall and use the fresh market service, in order to survey the needs of customers in many factors. So that, they can specify the form and characteristic of fresh market follow by the regulation and customers needs.

740000 730000 720000 710000 700000 690000 680000 670000 660000 2550 2551 2552 2553 2554 2555 Co lu mn 3

The trend of employment (persons)

1220000 1215000 1210000 1205000 1200000 1195000 1190000 1185000 1180000 2550 2551 2552 2553 2554 2555 population

The trend of population in Chiang Rai (Source:http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Mana gement_2_55.pdf)

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Environment In term of environment, Chiang Rai city has traffic jam in community areas. However, the location of our fresh market has clear and nice weather and not crowded community since it located on the bypass that close to government sectors, school, university and the airport that suitable to build the market. Moreover, we found the building instruction of row houses has been increasing even on the opposite and beside our Fresh Market which means this area will become the crowd community in the future and also found the developed housing with 200 houses in the area around our Fresh Market.

Government Sectors

Tesaban 6 School

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Row housing

Developed housing

Technology At this time, technology and communication are growing that make the marketing easily reach to the real customer more than ever. Since there are variety of alternatives in receiving the information such as radio, television, newspaper, billboard and including internet, therefore, our group has studied advertising method to introduce The Mee Sub market and persuade sellers and buyers to know and come to the fresh market. The advertising can be conducted through many types of technology which is suit to the geographic features and target market behavior.

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Competition Analysis
Ban-Du Market Category Location Surrounding Amount of stall Details Bandu District, Muang, Chiang Rai 7/11, Banks, University 500 stalls Stall Payment General information Meat 10 Sellers Fish Others 2 Baht in the Moring since 4 a.m. 10 a.m. 5 Baht in the afternoon since 1 p.m. 8 p.m. 6 Sellers

Ban-Du is an economic area with the market is near the community area and Chiangrai Rajabhat University. It is crowded in the evening. Fresh products can be found in the morning and cooked food can be found in the evening. The market planned to expand the flooring but cannot be done. Convenience to stop by There always has a traffic jam in the front of the market especially in the morning and evening which causes accidents many times. It is not organized There is bad smell of the garbage since it is no proper storage.

Pros Cons

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Pah Kor Market Category Location Surrounding Details Phahon Yothin Rd., Rop Wiang District, Muang, Chiang Rai Amount of stall 7/11 in both side of the road Food area in the evening

150 stalls Meat 3 Sellers Fish 2 Sellers

Vegetables, fruits, cooked food etc.

Stall Payment General information

10 Baht/stall Pah Kor Market is a small market which is close to the community. The market is open since 5 a.m. 10 p.m. and crowded in the evening. Mostly sold cooked food. The area has a good commercial interaction. There are varieties of food for people who looking for cooked food to be take home. Traffic jam in the evening No parking lot Not clean No waste disposal system

Pros Cons

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Tet Sa Barn Neung Market Category Location Details Tet Sa Barn Neung, Thanalai Rd., Rop Wiang District, Muang, Chiang Rai It is a trading center area of Chiang Rai; there are trading all the time. It is near to Chiang Rai Clock Tower. 800 stalls 50 Baht/stall Because Tet Sa Barn Neung Market is the biggest market in Chiang Rai, so there is a trade interaction all the time. There are Market inside and Market outside. Market inside; - Open since 4 a.m. 6 p.m. - Product sold are; clothes, food, snack and grocery. - Some area also trade at night. Market outside; - Open since 2 a.m 8 a.m. in the morning. - Fresh products can be found in the morning e.g. vegetables. - Open 4 p.m. 3 p.m. in the evening. - Cooked food, vegetables, meat etc. can be found in the evening. There is a trade interaction all the time. Good economic area There is bad smell of the garbage. It is quiet dirty and it is the source of pest such as mice. The management is not so good such as drains, waste disposal system etc. Unsystematic stalls which are trade on the road, it may cause dangers to both sellers and customers. Traffic jam and Lack of parking lot.

Surrounding

Amount of stall Stall Payment General information

Pros Cons

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Huay Pah Gang Market Category Location Details Mae Sai Mae Fah Luang Rd., Rop Wiang District, Muang, Chiang Rai 7/11 on the left and Lotus Express on the right 50 stalls Stall Payment General information Meat 2 Sellers Fish 1 Sellers

Surrounding Amount of stall

Vegetables, cooked food, etc.

300 Baht/Month Huay Pah Gang Market is close to the community but not so crowded since it is a small market. It is open since 5 a.m. 8 a.m. in the morning and 3 p.m. 6 p.m. in the evening. It is quiet clean. Not crowded. No toilet No waste disposal system Difficulty in traffic

Pros Cons

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Baan Mai Market Category Location Surrounding Details Baan Mai Crossroads, Rop Wiang District, Muang, Chiang Rai Many stores aside Lotus Express in the opposite Close to Baan Mai community and St.Mary School (Primary) Chiang Rai

Amount of stall

300 stalls Meat 10 Sellers Fish Others 6 Sellers

Stall Payment

Daily : 10 Baht/stall Monthly : 300 Baht/stall

General information

Baan Mai Market mostly sell vegetables, fresh products, cooked food in the morning. Segment the parking lot between motorcycles and cars. Convenience to stop by Tidy and orderly Good waste management No toilet No cement parking lot

Pros

Cons

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Den-Hah Market Category Location Surrounding Amount of stall Details Den Hah Crossroads, Rop Wiang District, Muang, Chiang Rai 7/11, Lotus Express 150 stalls Stall Payment General information Meat 2 Sellers Fish Others 1 Sellers

Collect both in the morning and in the evening 10 Baht/stall Den-Hah Market mostly sells vegetables and cooked food. The market is located under the building which is very stuffy. Close to the community Crowded people in that area Good economic area There is a traffic jam in the evening. No parking lot No toilet Stuffy Quiet dirty

Pros

Cons

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Nim Si Seng Market Category Location Surrounding Amount of stall Details Next to the main road, Rop Wiang District, Muang, Chiang Rai Green Wing in the front and 7/11 on the left. 200 stalls Stall Payment General information Meat 4 Sellers Fish Others 3 Sellers

20 Baht/day/stall Nim Si Seng Market is a small market located in community area. The customers who come to the market are local people in the community. It is open since 5 a.m. 6 p.m. Cooked food can be found both in the morning and in the evening. Quiet clean Developing market Bad smell of garbage Bad waste management No safety parking lot Dirty aside the market No fences to prevent animals

Pros

Cons

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Sri-Sai-Moon Market Category Location Surrounding Details 20 M.1 Rop Wiang District, Muang, Chiang Rai 7/11 on the left, Lotus Express on the right, and Glasses store in the opposite. 150 stalls Stall Payment Meat 3 Sellers Fish Fruit 2 Sellers 4 Sellers

Amount of stall

Vegetables, cooked food, etc.

Daily : 10 Baht/stall Monthly : 300 Baht/stall

General information

Sri-Sai-Moon Market is located in the community with crowded people stop by so it is good trading area. Mostly there are make to order restaurants and dormitory close to the market. It is open since 6 a.m. 8 a.m. crowded people in the morning and in the evening. It is located in the entrance way of the city which is close to community and a lot of trading nearby. The market is not influence to the community since it is no village there. Most people just come and go. No parking lot Dangers and Difficulty of traffic in the front of the market Not clean No fences to prevent animals No segment of garbage and waste The toilet only have 2 rooms

Pros

Cons

(Source: From our survey)

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According to the primary survey the table shows the strength and weakness of competitors who open the Fresh Market companies in Mueng district Chiang Rai. We found that, the most of Fresh Market weakness on the parking lot allocate of garbage, bad ventilate air and zones dividing. However, they still have a strong strength such as place close to the highway and in the center of community where is suitable for local people to drive or ride their own vehicle from their place to the Fresh Market. The last but not least, we also found the convenient store around the Fresh Market which is comfortable for customer of come at one place and can get what they need to buy. Moreover, we are wonder why the customer still to go the same market with the high weakness or they dont have other alternative of Fresh Market, this is the reason why we are interested to do the Fresh Market with turning their weakness to our strong strength which provides allocate of garbage with a good of ventilate air and having a clear zone of products along with sink placed in the meat and seafood zone to customer for washing their hands after buying the raw meat, parking lot is the important thing for customer to have a convenient parking so they wont feel rush moving their vehicle. But the most importantly is the variety product with a quality check and a fair price for customer which based on Ministry of health standard in our Fresh Market to meet with customer needs. Customer Analysis The characteristic of the customers who come to the fresh market in Chiang Rai mostly are; female, age 30 and above, working people including housewife who likes to expend and purchase instant food and raw materials to prepare the meal in her household. Most of the customers are price concerns and quality is significant in order to make decision too. Variety of goods is also relevant. Competitive Analysis There are three competitive have found in the Fresh Market in Chiang Rai. First of all, stall price rate of each Fresh Market is different because its depend on demand of retailer if the Fresh Market has a cheap price of stall so, most of the retailer would like to get stall for their product sales which means the demand of customer follow the retailer for buying products. Second of all, the Fresh Market this got the award from Ministry of health to warranty itself of a clean Fresh Market for customer to purchase, so this factor can increase the amount of customer. Third of all, demands of customers are depending on the variety products in the Fresh Market. If the Fresh Market have variety products sale, demand of customer will be increased because variable market attracts customer to purchase at that market.

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STP Analysis Segmentation The segmentation of the users of Fresh Market can be classify in 3 categories by segmentation from demographic including occupation, age and lifestyle; 1. A group of people age 15-22 years old or a group of student. The characteristics of this group are; prefer convenience, emphasize on consuming instant food and mostly come to fresh market in the evening to late night. 2. A group of people age 23-34 years old; mostly are working people or salary man such as private sector employees, employees work in the government service etc. This group of people has a hurry-up lifestyle that has no time to prepare the meal so, they tend to consume instant food and come to fresh market in the morning since 6 A.M. to 8 A.M. and in the evening since 4 P.M. To 10 P.M. 3. A group of people age 35-60 years old and above; female who is a housewife. This group of people tends to purchase raw materials to prepare the meal in the household. Mostly, they come to fresh market in the morning since 4 A.M. To 10 A.M. and in the evening since 3 P.M. To 6 P.M. The segmentation of the users who are seller in the fresh market can be classified into 2 categories; 1. A group of sellers who want to rent the stall(s) in temporary. 2. A group of sellers who want to rent the stall(s) in permanent.

Target Market According to the segmentation of the fresh market, can be assumed that the target market of the fresh market Mee Sub is a group of people age 35-60 years old and above; female who is a housewife, because the behavior of this group of people that always comes to the fresh market. And from the segmentation of the users who are seller can be assumed that the target market is A group of sellers who want to rent the stall(s) in permanent.

Product positioning 1. Mee Sub Market would be one of the Very Good Level Healthy Market out of 228 markets in Thailand. According to the information from Thai Health Promotion Foundation (2012) shows that there are 1,533 of fresh markets all over Thailand. Those markets which meet the benchmark standard of Healthy Market are 1,302 markets that is 85 percent and can be classify into 2 levels; Good Level 1,074 markets and Very Good Level 228 markets.

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To be a Very Good Level (5 Stars), the market should be developed to be a Healthy Market that meet three requirements under Healthy Market from Department of Health B.E. 2551 (2008): 1) The market has to meet the first 17 sections of Environmental health requirements and other 18 sections or above which is not less than 35 sections in total. 2) The market has to meet the Food safety requirement. 3) The market has to meet the Consumer protection requirement.

These are 40 sections of Environmental health requirement for Healthy Market; Marketplace shall be well-ventilated. Stalls, pathways, and outside garbage storage areas or enclosures shall be kept clean. Floors in all market areas and proximity shall be sloped to drain. All drains in marketplace shall be opened. Although drains around the market shall be kept covered with metal screens and easily cleaned. 5. Toilets shall be well-ventilated, to be free of obnoxious odors. 6. Septic tanks are in sanitary condition. 7. Routine cleaning shall be done after each use every day. 8. Tap water shall be provided adequately. 9. Toilets for male and female shall be separated. 10. All goods and equipment using in marketplace should be placed properly. Do not obstruct the pathways. 11. Food and stuff should be placed for sale at least 60 centimeters above the floor. 12. Sanitary cleaning should be conducted at least once a month. 13. Public trash receptacles should be adequate in number, in sanitary condition, and regularly cleaned. 14. Trash screening and grease trapping should be conducted before discharging to public sewage system or environment. 15. Infrastructure should be strong and durable. Floors should be constructed of smooth durable material and easily cleaned. 16. Post control shall be regularly conducted. 17. Person in charge should take action in cleanliness and safety in marketplace. 18. Light at the stalls should be at least 200 Lux. 19. Stalls should be constructed of smooth durable and easily cleanable material, and at least a height of 60 centimeters. 20. Each stall should have the number and the name of the owner and they should be easily seen. 21. A trash receptacle should be present at each stall with sanitary condition and regularly cleaned. 22. Trash containers should be adequate in number, insanitary condition, and regularly cleaned. 1. 2. 3. 4.

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23. Water storage containers should be adequate in number for daily use. 24. Toilets for male and female and sinks with soap should be clean, adequate in number, and conveniently located. 25. There should be a person in charge of cleaning toilet at least twice a day. 26. Waste receptacles in the toilets should be durable and leak-proof material and kept in covered. 27. Pest control should be conducted at least twice a year. 28. The number of pet and pest should not excess standard level. 29. Goods should be zoned. 30. Fire extinguisher should be adequate in number, placed in proper location, and easily accessible. 31. Infrastructure should be well-maintained in good and hygienic condition. 32. Traffic around the market should be properly provided. 33. Person who sells merchandise or assistant should properly dress with good personal hygiene. 34. Person who sells merchandise or assistant should perform good hygienic practices during all working periods. 35. There should be a designated place for comments from public. 36. Pathway in the marketplace should be at least 2 meters width. 37. Trash should be separated from garbage. 38. A group or association of markets owners, persons who sell merchandise or assistants, or consumers should be required. 39. Environmental or sanitary training course should be provided for persons who sell merchandise or assistants. 40. Wastewater treatment should meet the standard. (for marketplace with area at least 2500 m or above) Food safety requirement All food sold in the market must free from 5 chemical contaminants; Borax, Formalin, Salicylic acid, Sodium hydrosulfite, Beta agonist. Consumer protection requirement Person in charge for contamination screening test should be provided in designated area. The market also has information boards and weighing scale for consumers. 2. Mee Sub Market would be known as safe and clean fresh market where the products found are clean, safe, fresh, and free from any toxic residues and contaminant substances. Mee Sub Market concerns about safety of consumers to reduce illness rate and death rate of people in the area. Especially food is to be concern since food is an important factor people consume every day which can be create and destroy a good health at all time. So, our market

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needs to collaborate with Ministry of Agricultural and Cooperatives, Department of Health and community to provide safe and clean food for consumers. 2.1 Product Certification In order to achieve this positioning, the sellers require Product Certification for agricultural products and food from the Ministry of Agricultural and Cooperatives. Due to the institutes in the Ministry of Agricultural and Cooperatives use the certification of agricultural products and food as the same mark called Q Mark which represent the quality of agricultural products and food as safe and high quality products. Moreover, it also communicate to consumers within the country and trading partners from other country to trust in production system and agricultural products and food which is meet the standard and to be accepted in other countries. This Product Certification covers taking random samples, testing products, and inspecting the product whether the product characteristics of quality and safety follow the agricultural products and food standard or not. The safety standard concerns about toxic residues and contaminant. Moreover, there is an assessment of operation system of the producers if they can maintain their quality and safety of products or not.

The Q Mark symbol The National Bureau of Agricultural Commodity and Food Standards (ACFS) suggest that the size of Q Mark should not smaller than 15 mm. in order to be clearly visible and readable by the naked eye.

The color of Q Mark Color Green Code C100,Y100BL60

33

Figure 1 : An example of the appearance of Q Mark Type A.

Figure 2 : An example of the appearance of Q Mark Type B

34

The process of issuing Q Mark The assurance of operating system or to assure agricultural products and food can be summarized as the steps shown in the chart below; The chart of process of issuing Q Mark for agricultural products and food
1. Certification Body (CB) Prepare condition of certificate Identify type of certificate Identify standard used

Submit 2. National Bureau of Agricultural Commodity and Food Standards (ACFS) Incorrect or incomplete document

Inform certificate information as the central database

Consider

Document is correct and complete 3. Give the code (Code No.3) and Certification Body (CB)

4. Certification Body (CB) issues the certificate

Means the process of issuing Q Mark Means the process of linking information as a central database

35

2.1 Provide screening test for food safety Under Food safety requirement of Healthy Market, the food sold in the market must free from 5 chemical contaminants; Borax, Formalin, Salicylic acid, Sodium hydrosulfite, Beta agonist. However, Mee Sub Market will collaborate with Ministry of Public Health to make random inspection of 7 contamination substances including; Red meat catalyst, Borax, Formalin, Salicylic acid, Sodium hydrosulfite, Beta agonist and repeated use of frying oil. Besides, our market also has more inspections on drinking water quality, ice, microbial pathogens and other contaminants such as Aflatoxin, Acetic Acid, synthetic coloring agent and preservative agent. All these should be inspected every month. Mr.Pachara KaewKla (2012), the coordinator of the strengthening mechanisms of food safety project from Foundation for Consumers said Most of vegetables in general markets and street stall found the residual of pesticide exceed the maximum rate for 38.1%. This is similar to the result of the Department of Agriculture inspection which has a random check on vegetables with the Q Mark. Moreover, the vegetables sold in supermarkets are also found the residual of pesticide exceed the maximum rate for 43% while these vegetables sold in higher price compared to vegetables sold in fresh markets for 2x-10x. In this case, our market is realize for these safety to protect the benefits for consumers and all these protections is aimed to meet customer satisfactions of our target market who concern about healthy products.

3. The analysis of target market characteristic is the target that are housewives, female, age 35-60 years old and above who is healthy concern. 4. To specify the product position of the fresh market, using price and quality as the determination.

36

Marketing Strategy Integrated Marketing Communication The important thing that should be focused on of the Fresh market business is to communicate the marketing activities to consumer to understand and accepted. Marketing activities of Mee Sub Market are; 1. Public Relations and Advertising Our market will provide public relations and advertising on the new opening fresh market in order to communicate and invite sellers and people who interested to sell their products in the market. We offer some promotions to create the awareness and to persuade those sellers to come and use our service. The tools we use in advertising are; 1. Advertising on local radio FM. 95.75 MHz 3,000 baht per month for the retailer who want to rent stall at the Fresh Market 3 months between 01/05/2013 31/07/2013. 2. Local newspaper 500 baht/month (buy 1 month free for 1 month ads) for grand new open fresh market 1 month between 15/07/2013 15/08/2013. 3. Three Radio cars advertising for 6 days between 29/07/2013 04/08/2013. Total time for each car in 1 day = 9 hours Driving time: 06:30am 09:00am/ 11:30am 13:30pm/ 15:30pm 18:00pm - First car, will drive all the way from Maesai to Chiang Rrai - Second car, will drive around down town Chiang Rai on the west side - Third car, will drive around the city in Chiang Rai on the east side 2. Promotion For buyers who come to buy the products in our market, we will provide an advertisement to inform them about the strength of Mee Sub market that focus on facilities such as large area of parking lot, cleaned toilet, proper layout of goods category for convenience of buyers. Also, there are security officers who responsible to the safety of the market. These are the ways to draw attention from people to come to our market. 1. Advertising of free stall to retailer for the first 3 months sales board on roadside between 01/08/2013 31/10/2013. 2. Discount 50% price of stall on the agreement for the header who can find the retailer to sell at the Fresh Market.

37

3. Grand Opening - Invite the under-secretary of a health ministry to open the Fresh Market on 01/08/2013 and test or measure the toxic value in the vegetables and fruits, which show how safe and healthy of the products in our Fresh Market. - Walking for Health activity, the distance start from our Fresh Market and will end up at our Fresh Market within 2 km distance. Grand slam: receive gold 0.50baht as a prize Honorable mention 1: receive 5,000 baht Honorable mention 2: receive 3,000 baht Activity of students performance for Tesaban6

Price (Market with infrastructure)

Description Food court Prepared food Processed food Fresh food Fresh vegetable Fruits Miscellaneous goods Stalls 20 20 16 64 30 30 20 Rent per month 2,000 1,000 1,000 2,000 600 1,000 2,000 Total 40,000 20,000 16,000 128,000 18,000 30,000 40,000

38

Price (Market with non-infrastructure)

Description Shop stall There are free areas for 100 stalls Place The Mee Sub Market Location background The fresh market will be located on the bypass of Chiang Rai province. This fresh market will be located in the community which closed to the airport, the city hall, the school and the Payao University (branch in Chiang Rai). We have contact with the land owner for asking to buy the land. This land including with 25 acres 32 square meters. There are some criteria in choosing the location; Social and cultural factor The location is close to the community. The fresh market is consistent with characteristics of population around the area together with participation that is not go against routine, religion and social value of people in that community. Environmental factor The convenience entrance for the customer and the user. The area is not crowed and can be continuously extended. The area is open and ventilated. The area is unaffected by pollution from noise, toxic fumes, sewage and odor. Technical factor 1. It is convenience for transporting goods. 2. It is convenience in case of labor and staff. 3. It is easy to access and it will not have a traffic problem. Stalls 100 Rent per day 50 Total per day 5,000

Trend of the community

39

There is the growth trend of the community. There is an increasing number of the population. (Source: http://www.sumc.in.th/images/document/20070607155210bifhc.pdf) Sale Forecast

40

41

42

43

44

45

Show calculation of each number from

Rent year 1-5 On cash (Baht) Stalls (A) 20 20 16 64 30 30 20 Rent per month (B) 2,000 1,000 1,000 2,000 600 1,000 2,000 Promotion for Header (C) 1,000 500 500 1,000 300 500 1,000 Total rent (AxB)-C = D 39,000 19,500 15,500 127,000 17,700 29,500 39,000 90% Cash receive* (Dx90%) 35,100 17,550 13,950 114,300 15,930 26,550 35,100

Description Food court Prepared food Processed food Fresh food Fresh vegetable Fruits Miscellaneous goods

*90% Cash receive is a forecast from asking accountant about number of account receivable in Bandu market.

46

Show calculation of rent year 1-5 On credit (Baht)

Description Food court Prepared food Processed food Fresh food Fresh vegetable Fruits Miscellaneous goods

Stalls (A) 20 20 16 64 30 30 20

Rent per month (B) 2,000 1,000 1,000 2,000 600 1,000 2,000

Promotion for Header (C) 1,000 500 500 1,000 300 500 1,000

Total rent (AxB)-C = D 39,000 19,500 15,500 127,000 17,700 29,500 39,000

10% Account receivable* (D x10%) 3,900 1,950 1,550 12,700 1,770 2,950 3,900

*10% Account receivable is a forecast from asking accountant about number of account receivable in Bandu market.

Show calculation of rent of shop stall (Baht)

Number of Stalls (A) 100 Stall for year 1 Nov13, Dec13, Jan14, Feb14 Forecast 60% of total* Total of rent Or total of rent (x30) 5,000 (5,000 x 60)/100 3,000 90,000 Baht per day Baht per day Baht per day Baht per month Rent per day (B) 50 Total baht per day (AxB) = D 5,000

*60% are a forecast for opening new fresh market.

47

Mar14,Apr14,May14,Jun14,Jul14 Forecast 50% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 50)/100 2,500 75,000

Baht per day Baht per day Baht per day Baht per month

*50% are a forecast of season example Mar57, Apr57 are a period of end of semester in the school and our market is located near Tesaban6 School, and May57, Jun57, Jul57 are the rainy season in Thailand. Stall for year 2 Aug14, Sep14 Forecast 50% of total* Total of rent Or total of rent (x30) 5,000 (5,000 x 50)/100 2,500 75,000 Baht per day Baht per day Baht per day Baht per month

*50% are a forecast of season example Aug57, Sep57 are the rainy season in Thailand.

Oct14-Dec14, Jan15-May15 Forecast 65% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 65)/100 2,750 97,500

Baht per day Baht per day Baht per day Baht per month

*65% are a forecast for growth our market, and fresh market is a slow-growth or constant business.

Jun15, Jul15 Forecast 55% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 55)/100 2,500 82,500

Baht per day Baht per day Baht per day Baht per month

*55% are a forecast for growth our market, and fresh market is a slow-growth or constant business, however Jun58, Jul58 are a period of end of semester in the school by according to Chiangrai Montessori School about ASEAN and our market is located near Tesaban6 School and it is the rainy season in Thailand. http://www.thaischool.in.th/57010002/newseducation/19004/

48

Stall for year 3 Aug15,Sep15 Forecast 55% of total* Total of rent Or total of rent (x30) 5,000 (5,000 x 55)/100 2,500 82,500 Baht per day Baht per day Baht per day Baht per month

*55% are a forecast of season example Aug57, Sep57 are the rainy season in Thailand.

Oct15-Dec15, Jan16-May16 Forecast 70% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 70)/100 3,500 10,500

Baht per day Baht per day Baht per day Baht per month

*70% are a forecast for growth our market, and fresh market is a slow-growth or constant business.

Jun16, Jul16 Forecast 60% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 60)/100 3,000 90,000

Baht per day Baht per day Baht per day Baht per month

*60% are a forecast for growth our market, and fresh market is a slow-growth or constant business, however Jun58, Jul58 are a period of end of semester in the school by according to Chiang Rai Montessori School about ASEAN and our market is located near Tesaban6 School and It is the rainy season in Thailand. http://www.thaischool.in.th/57010002/newseducation/19004/

49

Stall for year 4 Aug16,Sep16 Forecast 60% of total* Total of rent Or total of rent (x30) 5,000 (5,000 x 60)/100 3,000 90,000 Baht per day Baht per day Baht per day Baht per month

*60% are a forecast of season example Aug57, Sep57 are the rainy season in Thailand.

Oct59-Dec59,Jan60-May60 Forecast 75% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 75)/100 3,750 112,500

Baht per day Baht per day Baht per day Baht per month

*75% are a forecast for growth our market, and fresh market is a slow-growth or constant business. Jun17,Jul17 Forecast 65% of total* Total of rent Or total of rent (x30) 5,000 (5,000 x 65)/100 3,250 97,500 Baht per day Baht per day Baht per day Baht per month

*65% are a forecast for growth our market, and fresh market is a slow-growth or constant business, however Jun58, Jul58 are a period of end of semester in the school by according to Chiangrai Montessori School about ASEAN and our market is located near Tesaban6 School and it are the rainy season in Thailand. http://www.thaischool.in.th/57010002/newseducation/19004/ Stall for year 5 Aug17,Sep17 Forecast 65% of total* Total of rent Or total of rent (x30) 5,000 (5,000 x 65)/100 3,250 97,500 Baht per day Baht per day Baht per day Baht per month

*65% are a forecast of season example Aug57, Sep57 are the rainy season in Thailand.

50

Oct17-Dec17,Jan18-May18 Forecast 80% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 80)/100 4,000 120,000

Baht per day Baht per day Baht per day Baht per month

*80% are a forecast for growth our market, and fresh market is a slow-growth or constant business.

Jun18, Jul18 Forecast 70% of total* Total of rent Or total of rent (x30)

5,000 (5,000 x 70)/100 3,500 105,000

Baht per day Baht per day Baht per day Baht per month

*70% are a forecast for growth our market, and fresh market is a slow-growth or constant business, however Jun58, Jul58 are a period of end of semester in the school by according to Chiangrai Montessori School about ASEAN and our market is located near Tesaban6 School and they are the rainy season in Thailand. http://www.thaischool.in.th/57010002/newseducation/19004/

Year 1 2 3 4 5

Sale (Baht) 3,319,800 4,541,400 4,631,400 4,811,400 4,721,400

Table: conclusion of Sale in 5 years

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Marketing Expense

This is no marketing expense in year 2, year 3, year 4, and year 5 because we wont have any marketing activities

Conclusion From the market analysis in term of Environment, Social, Economic, Technology and Political Analysis founded that Mee Sub Market has an opportunity to grow and success in this business. Mee Sub Market has the competitive advantage on the location. It located in a wide open area with a parking space. Mee Sub market positioning on the cleanness, the conveniently, the variety of product with the quality price. The target market of the product is woman who has 35-60 years old. Mee Sub Market use IMC strategy to communicate with seller and consumer. It also provide the benefit which suitable for sellers. Moreover, from the information, we forecast that the income received from sale is continuous increasing.

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Chapter 4 Investment Cost Cost of Investment Pre-operating Cost

Pre-operation
No. Documents Step 1: Contact City Municipal (Department of Public Works and Town & Country Planning) Documentation of construction permits(Form .1) 1.1 Identity Card 1.2 House registration 1.3 Land title deed (title deed, 3., actual size paper(front-back) License for Architecture (fellow 1.4 architecture or second level) 1.5 License for Professional Practice or Controlled Engineer Lincence ( Diploma, Identity Card, Licence) 1.6 List of Engineering calculations License for Civil Engineer or 1.7 Architect Blueprint or Construction 1.8 drawings 1.9 Layout plan Form .1 fee 1.10 Step 2: Airport office Construction permit for hover craft 2.1 area *Identity Card *House Card Step 3: Provincial Electricity Authority & Provincial Waterworks Authority Installation for temporary 3.1 electricity *Cost of insurance = 6,000.00 *Installation of 15 M 3 Fed rate: 0.25 0.25 Copy Qty Cost/Baht

1 2 1

0.25 0.50 2.00

1 1

277,705.05 277,705.05

1 1 3 3 1

158,688.86 277,705.05 15.00 15.00 2,963.00

1 1

26,000.00

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6.4343 20,000 baht (6,000+20,000) Installation for temporary water 3.2 supply *Cost of insurance = 4,700.00 *Installation fee = 7,490.00 (4,700+7,490) Step 4: Land 4.1 Land (5) To construction the Fresh 4.2 market Step 5: District Office 5.1 Office registration number *Form 0.1 construction permit *Identity Card *Own house registration *Land title deed(front-back) *Layout area map *Photo of Layout area(color) Step 6: Provincial Electricity Authority & Provincial Waterworks Authority and TOT (office telephone & internet) Installation for permanent 6.1 electricity *Cost of insurance = (6,000.00) *Metre *Transformer 50 KVA *MDB (80M) *Expand high voltage system 100 SQM = 100,000 baht (500 SQM*100,000) *Expand high voltage system into the building Installation for permanent water 6.2 supply *Cost of insurance = (4,700.00) *Installation fee 6.3 Installation for the telephone and

12,190.00

1 1 1 1 1 2

0.25 0.25 0.25 1.00 5.00 10.00

1 1 1

-6,000.00 4,621.50 250,000.00 50,000.00 500,000.00

250,000.00

4,700.00 1,070.00 374.50

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internet line Step 7: District Public Health Office 7.1 Public Health permit Step 8: Opening the Fresh Market Step 9: Tax registration 9.1 House and building tax (contact after 1 year opening) 9.2 Signboard Tax (contract within 15 days after opening) TOTAL

20.00 -

2,078,393.01

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Calculation 1.4 License for Architecture (fellow architecture or second level) The rate of percentage is from Act of Architecture legislation 2542 Budget X 1.75% = Price 15,868,860 x 1.75% = 277,705.05 baht 1.5 License for Professional Practice or Controlled Engineer License The rate of percentage is from Act of Architecture legislation 2542 Budget X 1.75% = Price 15,868,860 x 1.75% = 277,705.05 baht 1.7 License for Civil Engineer or Architect The rate of percentage is from Act of Architecture legislation 2542 Budget X 1.75% = Price 15,868,860 x 1.75% = 158,688.86 baht Blueprint or Construction 1.8 drawings Budget X 1% = Price 15,868,8860 x 1% = 277,705.05 baht 1.10 Form .1 fee Building area = 1,664 SQM Parking lot = 462 SQM Toilet area = 144 SQM Signboard = 18 SQM Paper fee = 20 baht * Building higher that 2 stories but not exceed than 12 SQM pay Area 1,664 SQM x 0.50 baht = 832 baht * Parking lot Area 462 SQM x 0.50 baht = 231 baht * Culvert of building which includes toilet Area 1,664 SQM + 144 SQM = 1,808 SQM x 1.00 = 1,808 baht *Sign board 18 SQM x 4 baht = 72 baht From .1 fee 832+231+1,808+72+20 = 2,963 baht

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Investment cost 1. Land We plan to buy 25 million for land. The land size is equal 9,456 square meters. Although the land is quite expansive and has to spend a lot of money to invest it, this land is near a main road. Moreover, around the zone is beginning commercial building and is constructing road. So, investing for the land can provide a lot of benefits for investors in the future. Cost of Land is 25 million baht. 2. Building Building

Order

Core building

Quantity

Unit

Price/Unit

Total

Concrete work Floor Pillar Stall

1,980

Square Meter

2,450 4,851,000

2 3 4 5

Roof work Color work Miscellaneous Name board (200cm*900cm)

1,980 1,980 1,980 -

Square Meter Square Meter Square Meter -

1,980 3,920,400 50 500 25,000 99,000 990,000 25,000

Total

9,885,400

Order

Option building

Quantity

Unit

Price/Unit

Total

Concrete work for office and toilet Floor

146

Square Meter

2,450

357,700

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2 3 4 5 6 7

Pillar Wall 48 146 50 5 260 9,240 Square Meter Square Meter Set Square Foot Square Meter Square Meter 1,980 50 1,530 80 2,450 500 194,040 7,300 76,500 400 646,800 4,620,00 0 10,000

Roof work Color work PVC door 0.60x1.80 m. Office glass Concrete work for parking lot Electricity work

Water supply

10

Spot

1,000

Order

Option building

Quantity

Unit

Price/Unit

Total

Wastewater treatment work Wastewater treatment tank 1800 liter Grease trap tank Grease trap & waste trap well Reinforced Concrete Drain Total wage Total 6,008,460 15,893,860 2 Set 22,920 45,840

2 1 178 -

Set Set Meter -

3,925 3,000 144 13,398

7,850 3,000 25,632 13,398

Total

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Location

Location Mee Sub Market is located on the bypass of Chiang Rai province. It located in the community which closes to the airport, the school, the university and the local government office.

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Equipment

60

61

Meat, Pork
Chicken, Fish, Sea Food

62

Processed food, Vegetable, Fruit

Miscellaneous goods

63

Food court

64

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We plan to use these equipments to run our business. These equipments will be used in our office, market building and other area in our market. 1. Office equipment No. 1 Picture Equipment Monitor with Keyboard and Mouse Price/Piece (Baht) HP Omini 12015,265 1228L PC Intel Pentium G870 (3.1 GHz 3 MB L2 Cache) HP Desktop PC 15,990 Pavillion HPE h8-1223l Intel Core i3 3-2120 Brother printer 3,870 Color Inkjet MFC-J430W CK 2255 360 Brand/Detail Amount 1 Total 15,265

CPU

15,990

Printer

3,870

Telephone

360

Air-Condition

Office Desk

MITSUBISHI MS-MUSGH09VC No.5 8699-BTU Econo Air TWC-1202/C

16,190

16,190

1,990

3,980

Office Chair

850

1,700

Chair

440

1,760

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File cabinet

Centure CB-72

5,700

5,700

10

File

Horse H-403 F/C (6 Piece/Pack) House HD-10

325

325

11

Stapler

38

38

12

Security camera Paper punching

AVTECH Set of 4 cameras Elephant DP480

19,900

39,800

13

61

61

14

Calculator

CASIO 14digitals DJ240D

725

725

15

Socket

Data Power WL45

290

870

16

Broom

30

30

17

Dustpan

25

125

18

LAN

CAT 5

200

200

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19

Bin

38

76

20

Chair

650

1,300

21

Bicycle

Bridgestone lococo

4,500

4,500

22

Radio communication Refrigerator

IC-UV-95 DUAL BAND VHF/245 MHz Hitachi/ R-49 S 4.9 cubic

1,600

3,200

23

5,350

5,350

24

Voice evacuation panel Microphone

TOA/ FS-7000EV TOA/ PM-660

17,240

17,240

25

2,010

2,010

26 Electrical fan

COSMO/ 12" COSMO KAWA

390

390

27 Electrical fan

HATARI/ HT-S18M2

1,098

1,098

28

Monitor

Acer Monitor 18.5" G195HQVBb Toshiba Regza LCD TV 24"

2,790

2,790

29 TV

5,990

5,990

Total (Baht)

150,933

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Note: Computer Office equipment Office supply Office stationary

31,255 Baht 119,678 Baht

5,000 Baht

Total cost of office equipment and supply (excluding cost of computer) is 124,678 Baht. 2. In the market building No. 1 Picture Equipment Scale Brand/Detail Price/Piece (Baht) Chicken 1,390 Balloon 60 kgs. GLORIO 15 pounds 880 Amount 2 Total 2,780

Fire extinguisher

1,760

Broom

30

10

300

Table

790

24

18,960

Chair

1,900/Dozen

15,200

Speaker

TOA/ TH-650

1,940

7,760

Driver unit

TOA/ TU-651

960

3,840

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Matching Transformer

TOA/ TM-60T

1,590

6,360

Total (Baht)

56,960

3. Toilet - Equipment in toilet No. 1 Picture Equipment Brand/Detail Price/Piece (Baht) Urinal KARAT 1,958 Amount 5 Total 9,790

Lavatory

KARAT

931

5,586

Toilet

KARAT

1,573

13

20,449

Toilet

KARAT

3,370

10,110

5 Rinsing spray Hang 145 3 435

Bin

18

15

270

Mirror

100 cm*200 cm

1,900

3,800

70

Mirror

Coolya

125

125

Bowl

15

13 Total (Baht)

195 50,760

Toilet supply (e.g. toilet brush, cleaning liquid etc.)

5,000 Baht

Total cost of toilet equipment and supply

55,760 Baht

4. Other equipments No. 1 Picture Equipment Brand/Detail Price/Piece (Baht) Container 60,000 for garbage Amount 2 Total 120,000

Bin

OTTO- 120 liters

1,550

9,300

Road sign

3,000

12,000

Brahma

7 size

12,999

12,999

Pedestal

17,000

17,000

Total (Baht) Source: http://www.majestic-home.com

171,299

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http://www.crhouseware.com http://www.priceza.com http://www.furniturehall.com http://www.officemate.co.th http://www.spksound.co.th http://rungsubfurniture.tarad.com http://enchchok.tarad.com http://shoppingonline.bigc.co.th

Table: Total cost of investment

From the table show that total cost of investment is 43,387,205.01 Baht.

Investment Pre-operating Land Building Office equipments/supply Computer Equipment in market building Toilet equipments/supply Other equipments Total

Amount (Baht) 2,078,393.01 25,000,000 15,893,860 119,678 31,255 56,960 50,760 171,299 43,402,205.01

Depreciation 20 years 5 Years 3 years 5 years 5 Years 5 Years

Annual depreciation 794,693 23,935.60 10,418.28 11,392.00 10,152.00 34,259.80 884,850.68

Monthly depreciation 66,224.42 1,994.63 868.19 949.33 846.00 2,854.98 73,737.55

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73

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Conclusion We will invest in establishing a fresh market: (name market), at (Location). We decide to buy the land due to benefits that will gain in the future. Then constructing building is started by focusing on convenience of seller and buyer, fineness and cleanness of the building.

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Although we have to spend a lot of money for this investment, this will provide benefits in long term.

Chapter5 Technical analysis Production and Operation management Product Characteristic Nowadays in Chiang Rai, there are a continuous increasing number of populations that cause an increasing demand in various fields. According to the demand in food which is one of the most important factors in human life, the fresh market becomes an alternative for consumer in order to purchase and consume products. Mee Sub Market Planned and created follow by the need of consumer and the market concern on the behavior of consumer in Chiang Rai. The market located in the wide open space and convenience to come. There has a wide parking space to avoid the traffic jam problem. Due to the preliminary research founded that most of the market located in a crowed community with no parking space. This point causes the traffic jam problem. Mee Sub Market provides the parking space with the entrance and exist channel. It will benefits to consumers who come to the market to move the car easily. Moreover, there is the special parking area for sellers who would like to transport their goods. Characteristic of Mee Sub Market are created to be wide open and ventilated. All stalls are organized into 4 zones categorized by the type of the product including Fresh food, Dried food, Food center and miscellaneous. The product sell must be fresh as the ministry of health defined and for good hygiene of consumers. Furthermore, Mee Sub Market provides the area in front of the market for hawker seller who wants to sell products apart from all products in the market. Mee Sub Market created the dinning seat area with an entertainment media for consumer and seller to take rest and consume the product. The market also provides the toilet which located in the back of the market nearby the parking area. There will have a housekeeping to clean up all the time for a good hygiene of users. In conclusion, Mee Sub Market concern most on the benefit consumer will receive. The market created follow by the information from the research of the behavior of consumer, the life style and the characteristic of all fresh market in Mueng, Chiang Rai to create the best fresh market which match with the need of consumer. Specification, Feather, Dimension, Life time, Etc. Zones 1. Fresh Food - Fresh Meat - Seafood Products

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- Pork - Chicken - Beef - Fresh Vegetable - Local vegetable - Seasonal vegetable - Fresh Fruits - Seasonal fruits 2. Dried Food - Processed food - processed vegetable - Shrimp paste - cayenne pepper - fermented food - Thai food - Local Food - Dessert - Thai Dessert - Local dessert 3. Restaurant - Make to order - Noodle - Curry on top - Appliance - House tool - etc.

- prepared food

4. Miscellaneous

Product and Service Process Service Process Announcement of new fresh market Mee Sub Market start to promote and announce to the public that new fresh market is now open. This will encourage people to know and interest to come to visit the market. Moreover this announcement will ask for those sellers who want to make a preservation of stall to sell products with many promotion and benefit provided Orientation and Agreement For those sellers who won the booth auction will ask to make an agreement with the market. Then they need to participate in the Mee Sub Market orientation to understand the policies and all conditions of selling the product in order to stay together with happiness both the market and the seller.

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Administration Analysis
1. Employee salary Accountant consulting and manager 2 person Securities 2 person (2 x 9,000) Made 2 person Total salary expense per month 2. 3. 4. 5. Electricity expenses Water expenses Internet and telephone expenses Garbage fees 1 container = 1,200 baht per time 1 month = 2 times (2 containers x2times x1, 200 baht) Total expense per month 30,000.00 Baht. 18,000.00 Baht 18,000.00 Baht 66,000.00 Baht 71,005.20 Baht 48,625.89 Baht 1,165.23 Baht 4,800.00 Baht

125,596.32

Baht

6. Tax payment Sign board Tax (200 cm. x 900 cm. x 20 baht)/500 square cm. House and building Tax Permit of fresh Market establishment Total expense per year 7,200.00 Baht 9,984.00 Baht 2,000.00 Baht 19,184.00 Baht

*Social Security of employee each person 15,000 x 5% = 700 use rate 4:1 = 140 per month *Social Security of made each person 9,000 x 5% = 450 use rate 4:1 = 90 per month *The sign board tax = (width x length x rate of board)/ 500 square centimeter House and building tax = width x length x tax rate x 12.5% Permit of fresh Market establishment that payment 2,000 in every year Electricity expense calculated by electrical engineer Electricity rate: 3.50 bath per unit Assume used 144 light bulbs = 1.3 units /12 hours/day/stall The Fresh Market used 350 light bulbs (350/144) x1.3 = 3.16units per stall 3.16 x 200 stalls = 632 units per day 632 x 30 days = 18,960 units 18,960 x 3.50 = 66,360 baht 66,360 x 7% vat = 71,005.20 baht per month

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Water expense Catalogue Seafood Meat Vegetable Fruit Restaurant Readymade Other Food Temporary stall Office Toilet (Lady) Toilet(Man) Stall 24 40 30 30 20 16 20 20 50 Room 1 10 5 TOTAL Liter 250 600 200 20 350 300 10 100 10 100 500 350 Total liter 6,000 24,000 6,000 6,000 7,000 4,800 200 2,000 500 100 10,000 3,500 Cube meter 6 24 6 6 7 4.8 0.2 2 0.5 0.1 5 1.75 51.35

Calculation for water supply per month Water supply rate for business: 29.50 baht per unit 51.35 x 30 days = 1,540.5 units per month 1,540.50 x 29.50 = 45,444.75 baht 45,444.75 x 7%VAT = 48,625.89 baht per month Internet and telephone expense: registration package pay per month Call package 499 baht per month from 6 am - 6 pm 499 x 7% vat = 533.93 baht Internet package 10mb = 590 per month 590 x 7% vat = 631.30 baht Total expense: 1,165.23 baht per month Rate of soild wast expense (Act. ()) 1 Cube meter 250 bath 16x250 = 4,000 Baht per two month

Cleaning Fresh Market 1,500 Baht per time 2x15,000 = 30,000 baht per month Per set 300 5,760 4,800 Total Equipment test 1,500 Total 1,800 5,760 4,800 12,360

Formalin Contaminant Assay

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Conclusion: Facilities

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Conclusion: Facilities management discipline that supports and improves core company processes and increases return on investment by result-oriented use of resources, services, and activities, vital to the success of any organization. There are several advantages stacked in the favor of facilities management, including, cost advantage, economies of scale, and efficient management of facilities and assets.

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Chapter 7
Risk Management Risk is the probability or chance of mistake, damage, and thread of unexpected circumstance to be occurring in the future. It can lead to unsuccessful operation that is not achieving the objectives of the business. Risk can be both positive and negative effects to business, and can be classified into 2 factors which are; External and Internal Factors. Mee Sub Market identifies the risk as following; External Risk is risk that occurs out of the company control. 1. Economic Economy and external risk have significant impact on business. In the other word, when the country faces economic problem, it affects to expenditure of the population. Many business and many company may be shut down or bankrupt. It also has an effect on Small business and new company who start to run their business. Mee Sub Market is a new opening market. If the economic condition of the country, especially in Chiang Rai, is not stable or facing problems, it would be a risk affects to the fresh market. To adapt and protect itself from the changing in economic, the market have to aware of changing all the time by gather all information about economic issue including with political issue to get itself prepared and get ready to adapt in the circumstance. 2. Environment The risk from natural disasters and environment may occur such as earthquake, flooding and collapse of electricity system. These events can happen all the time so, Mee Sub Market has a policy to buy the insurance in order to deal with these problems. 3. Competitor The risk that may occur is competition of strategy of the rivals or competitors that aimed to attract customers including the stall renting which cost cheaper than our market. This would be the risk of losing sellers attention to competitors.

Internal Risk is risk that occurs from business operation mistake. 1. Financial Risk The Financial risk of Mee Sub market is the over cost with the limited budget. The risk also includes the increasing number of expenditure. If Mee Sub market suffers with this problem in financial risk, it will effects to the increasing time to get a return and pay back to the investor. This case Mee Sub market will reduce the result of financial risk by doing a financial plan and forecasting the financial situation for the future. 2. Strategic Risk

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The strategic which is not according to the visions of the market and not go along with the current situation can cause the market unable to compete with competitors. Therefore, this becomes the risk that affects to the market to lose its income and be adverse to the competitors. The way to manage this risk is Mee Sub Market has to change the strategic plan to be more attractive than the competitors. Moreover, the market has to provide the meeting to discuss with the members of the market to provide them some information of the market policy together with emphasis on the real visions of the market. 3. Operating Risk Operation risk is the safety risk which may occur from the accident, conflagration, and other harm from selling products in the market. To deal with this risk, the market has to buy casualty insurance in order to take responsibility on those damages. Besides, the market would set the defensive measure for example; to avoid conflagration, do not put the flammable stuff in the same area, and arrange electrical system follow the standard. 4. Compliance Risk

The risk occurs from the failure in the stall renting agreement. It can be the risk of the resistance because of the dissatisfaction in the policy. Mee Sub market will reduce this risk by create a meeting in every month. In order to talk, give information and share the way to solve the problem with members in the market.

Risk assessment Risk assessment is an important process in the risk management. This method is to considerate the risk factors, In order to assess the opportunity and the effect from that risk. All risk factors come from both inside and outside the business.

Risk Financial Risk Operational Risk Strategic Risk Compliance Risk Economic Risk Social Risk Environment Risk Competitor Risk

Probability 1 2 3 x x x x x x x x x x x x 4 x x 5 1 2

Effect 3 4 x 5

Total 8 6 4 3

6 2 6 4