a financial projection for cn-fantasy company

8/14/2019 A financial projection for CN-Fantasy Company

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Pro jec t Feas ib i l i ty St udy and

Evaluat ion

Semester 2/2009

Mae Fah Luang University

Projec t Feas ib i l i t y p lan

Present t o

Aj . Chaiyaw at Thongin t r

By

CN-Fant asy Elect ronic Com pany


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Preface

I am very interesting with the IT industry. In the free time, I spent most of my time to

reading the relative knowledge. Thats why we focus our project on the digital

product industry. As the BA undergraduate students, we got a lots chance to write the

business plan, but this is the first time we deal with the realistic situation, such as the

financing. In this reports, I think every group members had practiced their knowledge

to their own works. We got more understanding a about how to bring a business plan

into the real life. Thus I believe what we have done in this project, will enhance our

practical skills for future career.


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Ex ecut ive Summ ary

Chinese has an old saying, Time make it inevitable that in every profession, young

men replace the old. Evidence of Chinas digital product industryMP3 Player,

MP4 Player, and other accessoriesabounds in the countrys prosperous coastal cities.

According to practices for promoting the integrated development of urban and rural

areas through urbanization, the domestic electronic consumption demand was

significantly increased. Furthermore, the quality of citizens life, the Chinese digital

product industry will progress with the growth of the economy. To get a complete

picture of digital product industry in the worlds most populous and fastest growing

country, this project takes a closer look at four first-class digital player brands in

China, which are Ramos, Aigo, Newsmy and Meizu. Those four brands are

respectively belonging to four high-tech enterprises. They both serve their product

base on the fundamental science and technology first, quality first, the pursuit of

customer satisfaction.

This study gives, however, some of my hypothetic thinking for the whole market in

Thailand, for our product. In order to test these hypothetic thinking, a multi-stage

methodology was employed that is often taught in courses on international strategic

planning at graduate schools of business. First, we apply Political, Economic, Social,

and Technological (PEST) analysis to study a framework of macro-environmental

factors, Competitor analysis to assess the strengths and weaknesses of current and

potential competitors, Strengths, Weaknesses, Opportunities, and Threats analysis to

identify the internal and external factors that are favorable and unfavorable to

achieving our objective. Then, we make every marketing strategy individually; they

are STP Strategy, Branding Strategy, Pricing Strategy, and Retailing Strategy. We also

discuss those which are indispensable for our company such as Product Offering,

Marketing Communication, and Business Ethics, etc.

This project concerns about importing, exporting and other international trade


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regulation process. The study, therefore, is only for practicing basic approach to

analyze particular foreign market with the general knowledge about industry,

marketing, technology, a depth financial analysis and risk management.

We carry out an experiential analysis by using data of six years historical sale data to

calculate the profits for the project and draw following conclusions: the business for

selling the digital products which made in China to Thailand is profitable. The

company can show a realistic path in revenue by year three for the investment to

undertake.


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TableContentChapter 1 Introduction 1

1.1 Project Objective

1.2Benefits of Project1.3Activities/Time Frame

Chapter 2 Natural of Industry .3

2.1 Natural industry Digital product brand in China

2.2 Situation of Industry

2.3 Our product and service

2.31 services2.4 The vision

2.5 Mission of our store

2.6 Strategy analysis

2.7 Operational level

Chapter 3 Market Feasibility Study14

3.1 MarketAnalysis3.11 General Environment Analysis

3.12 Competition Analysis

3.2 STP Analysis3.3 Marketing Mix Strategy

3.4 Sales Forecast/Profit Estimation

3.5 Marketing Expenses

3.6 Conclusion

Chapter 4 Technical Feasibility Study........22

4.1 Production and Operations Analysis

4.2 cost of Investment

Conclusion

Chapter5 Financial analysis36

5.1 Profit/loss statement

5.2 Cash flow

5.3 Revenue forecast

5.4 Operating activities

5.5 Investment activities

5.6 Balance sheet

5.7 Cost of goods sold

Chapter 6 Risk Management48

Chapter 7 Summary51

Reference54


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1

Chapt er 1

In t roduc t ion

This business project is about importing and selling the digital product. This project

will consider all the business activities will happen in real life. We are going to

describe our business according the process which a real business runs on. Every

information relate with this project will be collected from the research.

Accord the observation of the digital product market of Chiang Rai, we found that

there are approach 20,000 students in Chiang Rai, and the main customers of the

digital product come from those students. Most digital product store only sells the

products of IPod and Sony. But the price of these products is relatively high for the

main customer. So we think a lower-price and high technology digital product such as

Mp4 player watch will satisfy their needs.

Chinese factories make all imaginable types of digital products, usually muchcheaper

than anywhere else. Otherwise in recent year, the transportation between Thailand and

China has enjoyed a rapid development. Transport channel is more and more, but the

price is getting lower and lower. Due to these reasons above, The Company will be

located in Chiang Rai; the store site is near the Rajabhat University. The inventory

will be purchased from China suppliers for selling a lower price than other

competitors.

Pro jec t Ob jec t ive

In this project, the main objective is to find out a more effective way to run our

business, and to make the business be profitable.

To achieve the goals, we will conduct the descriptive, analytical research. We will

apply the quantitative approach to collect and analyze numerical data. In this study,

primary and secondary research will be both incorporated. It supposes to be the


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inductive research as well. We will use the theoretical frame work which consists of

the relative theory of marketing, logistic, especially financing, etc. There are a lot of

Mathematical Approach will be used to analysis the findings.

Benef i ts o f Pro ject

We have already written a lot of business plan, marketing plan and every kinds of

report. Sometimes we really think we know a lot about business. But we never

conduct any of our plans. Actually, knowing how to write a business plan doesnt

mean you know how make the business, at least it may lack of feasibility. Some real

problem which we have not faced in our plan will be face in the real life.

Study on this project, however will cover this drawback, because we must think about

the reality. We should make every of our finding to be reliable. And we will put our

knowledge to work in solving real problems.

At last, through study on this project will help us to enhance knowledge and get more

understanding of the subjects in BA program; acquire skills such as communication

skills, intellectual skills and organization skills through practicing them; identify

opportunities in the future.

Act iv i t ies /T ime Frame

- Conduct an questionnaire about digital product in Mae Fah Luang University/1d

- Marketing data analysis/1d

- Collect the information about the operating expenses/3d

- Interview with the owners of some I.T product stores in Chiang Rai/1d

- Searching for the store site/3d

- Outsourcing/7~15d

- Finance analysis/1d

- Advertising making/2d

-

Writing the project paper/5d

- Presentation/1d


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Chapt er 2

Natura l o f Indus t ry

2.1 Nat ura l indust ry Dig i ta l produc t brand in China

RAmos Tech

Ramos Digital Technology Co., Ltd is one of the most famous digital companies in

China. Ramos is a venture company founded by excellent semi-conductor

professionals in 2001. The company has an abundance of excellent human resources

and strong technical force, dedicated to the emerging digital consumer market. The

main of their business scope include MP3, MP4 digital player and a variety of digital

peripheral products, products line include high cost performance of RM series, high

performance of V series and fashion personalized of Q series.

Ramos Company launched into consumption digital electron industry completely in

2004. Through a comprehensive expansion and upgrade in Chinese digital market, the

company started the stable and rapid development in the domestic market. Nowadays,

Ramos brand become more and more famous, distribution of partial product occupies

leading position in market and they become a dark horse in China domestic digital

player market.

The face of intense domestic and international competition, they are integrating kinds

of resources strategically, gradually and effectively. Through effective marketing

system and rapid market response, they are developing towards the industrial up

stream and building up our core competitive capability. Now, they have close tie with

several large suppliers of digital player chip from domestic and abroad. Besides their

own R&D group, they also keep good relationship with many R&D groups in the

world.

Newsmy

Newsmy is one of digital flagship enterprise in China. Beijing Newsmy found in 1996,

is a research and development, manufacturing, sales and service as a whole of

Beijings Zhong Guan Cun high-tech enterprise. At present, Newsmy Company has

about 3,500 employees, has about one hundred Professional R & D and technical

personnel, and has 27 branch offices in China.

In 2006, Newsmy becomes one of the most well-known digital brands in China. Their

main businesses include MP3, MP4, Mobile Phone, Flash Memory disk, USB Disk

and other digital products.


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Newsmy MP3 sales volume is always ranked first in domestic. Because they

dependent on reliable product quality, excellent after-service, affordable price.

Nowadays Newsmy MP3 has become a high-cost MP3 synonymous with a more

cost-effective within the digital industry known as the popularity of those products in

China. Newsmy MP4 is preferred brand of MP4 in China. Their flash memory diskand USB disk products have small and fashionable appearance; in addition, they also

have reliable and stable quality. USB disk sales volume is always keep ranked first in

domestic.

Newsmy Company adheres to the "customer-oriented" aims to provide the best

quality service to customers. Customers can use online query, or telephone

counseling, Newsmy Companys customer service will be in the most efficient

method to give customer Comprehensive solutions, and assist with self-test and repair

until the product resume normal use as soon as possible.

AIGOBeijing Huaqi Information Technology Development Co., Ltd found in 1993, the

company is one high-tech enterprises in Zhong Guan Cun, Beijing, China. Their

annual business turnover maintains the steady growth of 60% in the past ten years,

and their products are exported to North America, Europe, Southeast Asia and other

regions. Their AIGO mobile storage products sales volume keep ahead in four

consecutive years, promote the rapid development of China's mobile storage industry,

and become the first large-scale industry entry into international market in China.

AIGO MP3 use only one year to achieve the highest occupancy rate in domestic,

monopolize this domain last for five years, and become ahead of many international

competitors in digital region.

At present, Beijing Huaqi Information Technology Development Co., Ltd has about

1,900 employees, 200 pfessional R & D and technical personnel, and a complete

marketing system. They have 17 institutional repository and other subsidiaries. Their

businesses include MP3, MP4, digital camera, mobile phone, computer peripheral and

other kinds of business.

Beijing Huaqi Information Technology Development Co., Ltd is known as Digital

Industry Outstanding Enterprises, Chinas information technology innovation withthe most potential business by CCID in 2004.

Meizu

Meizu Technology Co., Ltd. is a high-tech enterprise specializing in the R&D,

manufacturing and marketing of portable multimedia devices. Established in March

2003, the annual production value already reached 50 million US dollars 2007.

During this time, Meizu created a name that today is now closely associated with

quality and style. Apart from immense popularity in the domestic market, Meizu

products are gradually making their way into homes in major overseas markets such

as Europe, US, Korea and Japan.


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Meizu has ever since the start adopted the strategy for our products of maintaining

international level quality while at the same time to a price reasonable to the Chinese

public. One of the ways this is achieved is by developing only a select few, but very

successful product lines.

Meizu is dedicated to rising into a first-class international enterprise. Through

recruiting talented staff, importing advanced equipment, establishing strategic

relationships with top international companies and with a brand new building for

R&D and manufacturing The Meizu Tech Building, the foundation is laid for

Meizus future rise.

2.2 S itua t ion o f Indust r y

China Guangdong is the world's manufacturing center, 80% mp3 maker of China

is from here. In southern China, especially Shenzhen production of various types of

radios, tape recorders, video machines, VCD, DVD, music center, home theater,auditorium sound systems and other audio-visual products for more than 80% of the

test certification is in Shenzhen Electronic Product Quality Testing Center completed,

while the MP3 audio-visual products are also belong to the scope of national

regulations with the territoriality principle of electronic product testing, most

produced in Shenzhen, MP3 should be able to find a basis for testing.

Consumers to buy mp3 player, the price is the first consideration. Accounted for

75.2%, followed by the sound quality, accounting for 71.9% of users said that the

sound quality is good or bad will also decide whether to purchase MP3 products.

Capacity factor in the ranking is at the third position, with 66.5% of consumers as an

important reference. In addition, the MP3 market, product homogeneity, the brand is

often highlighted the role to, which is many users will be a brand as a reference factor,

the survey showed, considering the brand this factor is as high as 66.1% of users. The

appearance of the product is as a reference of factors account for 52.5% of the users

ratio. From the proportion of several factors point of view, did not differ much,

indicating that consumers consider when buying MP3 products, many factors, from

the side reflecting the overall strength of the products with outstanding performance

to get consumers.

Experienced the madness in 2006, flat in 2007, MP3 market in 2008 is boom,

when the function and design at the same level, entangled, cut prices once againbecome the market's overall trend, whether it is cross-brand, or the China local brands,

both struggle with the residents of the consumer price index rising so that continue

updating the price of the MP3 bottom line.

In recent years, MP3 players, the overall prices have been continuously falling,

and its price cuts and the reasons for this are similar to other IT products, mainly due

to decline in raw material costs, manufacturing process to improve, enhance and scale

decline in personnel costs and other factors, in addition, weakening of the dollar, the

RMB exchange rate increased by a certain extent, MP3 prices accelerated a decline in

the Chinese market.

Core price cuts cause: sharp drop in raw material costs


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NAND memory chips are MP3 players, mobile phones and digital cameras and

other products, the main raw material, but since late 2006 to early 2007, due to the

upstream supplier of NAND memory chips to the market is too optimistic about the

prospects for a substantial increase in the output of NAND memory chips, but the

actual market demand significantly lower than expected levels, resulting in a serioussurplus production of NAND memory chips, the price plummeted, the market began

to shrink.

Authoritative international market research firm Gartner believes that short-term

market has no signs of recovery, coupled with the trend of a global recession was

increasingly evident, its 2008 global semiconductor market expectations, was not very

optimistic, in fact, only the first two months of 2008, market-mainstream 4GB NAND

memory chip prices already down 26% in early March 2008, in mainland China

memory market, 1GB/2GB/4GB NAND memory chip prices have respectively

dropped to 68 Baht, 97 Baht and 185Baht, and the , the upstream market, the new

wave of the impact of price cuts have not yet fully manifested in the end-productmarkets.

As NAND prices have fallen sharply, Samsung, Toshiba, Hyundai and other

related manufacturers of memory chips sector has suffered a near devastating blow to

their earnings from profits in 2006 fell to the edge of today's losses, but the price of

memory chips because they cannot effective demand for support continues to decline.

In addition, due to Rock chip, Chinese domestic chip manufacturers such as

core-fly made great progress, its low price, superior performance, a new generation of

master chips on one hand, the high cost of foreign products out of the market will also

be developing MP3/MP4 Player substantially reduced the cost of the master program.

In the display, since the TPO, Chi Mei Optoelectronics, BOE and other display

manufacturers to upgrade manufacturing technology, it has the small size of portable

devices, display to the previous generation (or even the previous generation)

production line manufacturing, to ensure of the display yields and low prices.

Overall, due to flash memory chips, the master chip, display three major

sharp drop in raw material costs not fully reflected in the end-product prices,

MP3/MP4 players, lower prices will trend has continued.

Other price cuts reasons: technology, manufacturing, the combined effect

of exchange rate

As the size of the domestic MP3 market, the high-speed growth, the market hastaken shape in a handful account for most of the market share leader in the status quo,

these leaders with a more adequate capital accumulation, continued to strengthen and

consolidate its manufacturing processes and production scale, through the

introduction of modular, professional, highly efficient new generation of

manufacturing technology and related equipment, greatly improved the passing rate of

the product and process standards, and reduce the single-product manufacturing costs,

while accelerating the construction of raw materials through the supply chain and

product manufacturing industry chain clusters, gradually reveals the prototype scale.

As for the reasons for cross-brand products, price reductions, in addition to the

cost of raw materials to benefit from the decline in the international market, but also


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with their share of China's economic growth related to the outcome, as the

international transfer of manufacturing to domestic, cross-brand manufacturing plant

will generally be transferred to the southeast coast of areas, low-cost, high quality

human resources, coupled with intensive modes of production to a large extent to

reduce their production costs.In addition, the long-term U.S. dollar weakness, rising RMB exchange rate,

cross-brand products in the domestic market prices are significantly reduced. For

example, point of view, a fixed exchange rate in adjusting the RMB ago, a 100 dollar

MP3 player, equivalent to about RMB 823 RMB (U.S. dollar and the RMB exchange

rate of 1:8.23), is now also a 100 dollar MP3 player, equivalent to RMB only 682

RMB (U.S. dollar and the RMB exchange rate of 1:6.82), the price of virtually

dropped 17%. Of course, if even get to the bottom, import MP3 player prices also

imported electronic products in China customs tariff policy on zero, which is in

accordance with the WTO agreements in China, a major adjustment.

http://www.xe.com/ 07/01/2010

Whether manufacturing process improvements, enhanced scale, a decline in

personnel costs or exchange rates, trade, MP3 players, all of which contributed to

lower prices, in fact, benefited from the implementation of many of China's advance

in recent years, processing and manufacturing, export-oriented trade, macroeconomic

policy, as consumers, MP3 player, a clear underlying causes of lower prices after the

price cuts for the current product has a clearer understanding.

2.3 Our product and serv ic e

The main products of our company are MP3-player and MP4-player, come from fourfirst-class digital player brands in China, which areRamos, Aigo, Newsmy and Meizu.

Those four brands are respectively belonging to four high-tech enterprises. They both

serve their product base on the fundamental science and technology first, quality first,

the pursuit of customer satisfaction.

Brand logo:

Ramos + Aigo + Newsmy + Meizu


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The General Product List

RAMOST17FHD

1, handheld portable FullHD 1080P Full HD

2, HDMI digital high-definition TV output 1080P

3,16 GB large-capacity built-in flash memory

4, high-speed OTG external hard drive from the capacity constraints

5, multi-format support full HD video encoding

The new dual-core 32-bit professional audio and video processing core AMRISC

800 480 resolution 4.3-inch LCD HDTV

Silicon image of high-quality HDMI output of non-destructive high-speed and high-definition

compatible OTG digital companion function

1920 1080P resolution, H.264, MPEG1/2/4 decoding

MKV, RMVB, AVI, MOV, MPG, MPEG, DAT, MOV, MP4, TS Multi-Video Format

MP3 WMAWAVRMOGGAACM4AFLACAPE and many other audio format support

SMIASSSSASRTSUBSUB.IDX multi-format subtitles support

JPGBMPPNGGIFTIF multi-format Pictures and TXT e-book format,

FLASH files support for SWF playback NTFS, HFS + partition


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Aigo E5810(2GB)

This product provides several colors for selecting: Red and Black.

Capacity: 2GB

Storage medium: Flash memory

Interface: USB 2.0 interface

Support MP3 and WMA audio formats

Earphone: 2.5mm earphone interface

Battery: Built-in Lithium battery

Approved: CE / FCC

After sales service: 1 year warranty

The Newman Newsmy A18HD (nice name there) is a new media player out of China,

which claims to offer a spectacularly svelte 9.8mm thick form factor (which is a

couple of millimeters thinner than an iPhone at its thinnest point). In addition to its

striking looks, the A18HD has 16GB of built-in memory, and sports an oversize

5-inch, 16-million color LCD display. The device can play videos in 720p

resolution, but the screens resolution is an underwhelming 480 x 272, so youll

want to connect the included component video cable if you have any hope of playing

back your flicks at higher resolutions.

Audio formats supported include MP3, WMA and FLAC, while video can be played

in RM, RMVB, AVI, and FLV formats


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Meizu Miniplayer TS

The M6 is from Meizu's digital audio player productions. Accordingly, it is only

emerging in certain parts of the world including the United States, Australia, France,

Russia and more. Though the M6 supports many audio formats, the US release did not

support MP3 format because of licensing issues. Apparently, there are workarounds to

the issue with specific firmware upgrades.

Recently, Dane-Elec has formed a deal with Meizu to provide distribution of the M6.

Apparently, Dane-Elec has ironed out MP3 licensing issues. Many European models

distributed by DaneElec have their FM tuner disabled because of EU import duties;

this can also be remedied by a firmware update.

The M6 has been touted as an iPod killer because of its capabilities with respect to

its aesthetics. One characteristic regarding the Meizu M6 is its ability to function

without proprietary file formats and procedures.

Capacity1 GB (no longer produced), 2 GB, 4 GB, 8 GB (two 4 GB chips) flash

memory

Size 79 mm 48.2 mm 10 mm

Display2.4 inch, 260thousand colorQVGA, 320240pixelresolution

TFTLCD screen

Weight 55 grams


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Audio supports MP3, WMA, WAV, Ogg, FLAC, WMA lossless, APE

Video AVI format (Xvid) at up to 20 FPS and 384 to 512 kilobits per second

Photo BMP, JPEG, GIF

Batteryrechargeablelithium-ion battery; rated at 20 hours audio playback and 6

hours video playback

2.31 serv ic es

Our store will provided good service to our customer, meet customer needs and

wants. First ,we will introduction our product to customer, about function and other

accessory product ,if customer want to buy our product ,them can try to use the

product listing music and watch movie ,use other function ,make shall the product is

good for them really needs and wants. After customer buy our product our employee

will teach customer how to use the product, how to protect product. We will provide

the web--site to download the song and movie, or help the customer download the

new song, movie, and picture--book on store.

Our store will make the web-site ,customer can buy our product on-line, wewill deliver the product to customer ,there can try it ,check it have problem or make

shall this is good ,after than them can pay money to our .If customer use our product

have some quality problem in 3month ,we can change new one or pay the money to

customer. In 1year, have some damage is customer make, we will have customer

maintenance it, customer need to pay the maintenance cost.

2.4 The v is ion

To be the most popular Electronic product retailer of Thailand

2.5 Miss ion of our s t ore

- Provided high quality, fashion appearance, popular among young people like it,

low price Mp3 and Mp4.

- We will make different destruction channel to sell our product ,find different

segment ,know customer needs and wants ,make shall our product have right positioning achieve our vision.


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- We will give the stockholder high profit, if we can sell more quantity product,

we will get more profit.

- Our company will give the employee training, expect salary, employee sell one

product can get 5%cost of the product price.

2.6 Strat egy analys is

2.61 Corporate level

Integration strategies

Backward integration: the supplier is come from China industry ,in China Mp3

supplier competitors is large ,so the Mp3 give the stable from our company is very

important .So, our store can give the customer stable price ,current supplier can have

high profit margins.

Horizontal strategies ----Now ,many electronic product import the product from other

development country ,the product have price and tax, if product is broke need to high

maintenance cost ,also need to specialization staff teach customer how to use. Our

product have low price, high quality, can easy understanding how to play.

Intensive strategies

Market penetration ---we try to use some marketing strategy promotion our product

seeking increase market share present product through Mp3 marketing efforts.

Market development ---we will introduce Chinese Mp3 in our store ,Thailand is new

market ,now in Thailand Chinese Mp3 is not popular, no retrial sale it , our company

think Chinese Mp3 can sale very well in Thailand and price is better from student to

buy.

Product development---our store at the fixed date change our product same Chinese

product, our supple try to make new product attract more customer to buy product.

2.7 Operat ional level

Marketing strategy ---we will analysis competition, STP ,marketing mix strategy to

help our store know customer needs and wants .our store have some marketingpromotion like discount price to attract customer to buy our product.


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Finance strategy---- outlining a business operating; clear know our generation profit

and loss. Finance strategy is to ensure the financial resources are provided to support

the strategic objectives of the organization. It supports these objectives together with

the HR strategy, the value for money strategy, the business development strategy

(currently in development) .

Accounting strategy ---we will write moth date every year, balance sheet ,income

statement and cash flow, how to get the profit ,or our store have loss.

Management system

Manager/Owner

- Mainly focus on management, dealing conflicts between different department

- Set mission and vision of business, make sure business is going to the right

direction

- Merchandise control, inventory

- Build up good relationship with supplier

- Acknowledge strength and weakness among competitors

- Provide good working environment

- Employees health care, and security to staffs

Accounting- Accounting

- How well does business perform

Marketing

- Always seek new business opportunities

- Attract potential customer, keep profitable customer.

- Keep loyalty among customer

Veterinary

- Perform service to customer

- Trained and educated


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COSTS/ STAFF SALARIES

Manager: 12,000 per month

Veterinarian: 10,000 per month

Staff: 8,000 per month

Total salaries: 54,000 baht per month

Chapt er 3

Market Feas ib il i t y St udy

3.1 Market Analysis

3.11GeneralEnvironmentAnalysis

Political The politics of Thailand are currently conducted within the

framework of a constitutional democratic monarchy, whereby the Prime Minister is

the head of government and a hereditary monarch is head of state. The judiciary is

independent of the executive and the legislative branches. After the 'democratic

revolution' in 1932, the country officially became under a constitutional democratic

monarchy with a prime minister as the head of government. The first written

constitution was issued.

During 2008, Thailand saw increasing political turmoil. The conflict makes the

political environment worsened slightly in 2009 when compared with before.

Moreover, future investment decisions by Thai companies could well be affected by

the uncertain political environment. Such perceptions, however, should come as no

surprise given the volatile global economic environment over the past few years,

coupled with the highly volatile political situation following the 2006 coup.

Economic - Thailand's real GDP growth in 2008 was 2.6 per cent, falling

below previous Thai Ministry of Finance growth estimates due to the emerging global


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economic crisis. Thailands export sector, which accounts for around 60 per cent of its

GDP, suffered due to falling global demand a trend that may continue into 2009. In

the first quarter of 2009, total exports declined by 23.1 per cent year-on-year, which

contributed to a 7.1% contraction in GDP. Headline inflation in January 2009 was

-0.4%.The Thai government has adopted a two-stage fiscal stimulus response to

address the effects of the crisis. The first phase, introduced in February 2009, was

aimed at stimulating domestic purchasing power through cash handouts. The second

phase, worth around $57 billion, will be released over the 2010-12 period for a range

of large scale infrastructure projects.

SocialEnvironment The culture of Thailand incorporates a great deal of

influence from India, China, Cambodia, and the rest of Southeast Asia. Thailand's

national religion Theravada Buddhism is central to modern Thai identity and belief. In

practice, Thai Buddhism has evolved over time to include many regional beliefs

originating from Hinduism, animism as well as ancestor worship. The official

language of Thailand is the Thai language, a Kradai language closely related to Lao,

Shan in Burma, and numerous smaller languages spoken in an arc from Hainan and

Yunnan south to the Malaysian border. It is the principal language of education and

government and spoken throughout the country. Most of Thai people have a positive

attitude to foreign products and services. The new generation of Thailand is able to

speak English very well and a little Chinese. There is no difficult for the diffusion of

Western and Asian products onto markets.

Environment Thailands economic growth over the last three decades has

been fueled and accompanied by rapid industrialization, urbanization, and by

intensified agricultural production and fishing. This growth, which has relied

extensively on the countrys abundant and diverse natural resources, has degraded

land and water quality, caused the loss of natural habitats, and generated increasing

levels of air and water pollution. In response, the Government and people of Thailand

have launched new initiatives to improve air and water quality, reforest degraded land,


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adopt energy efficient technologies and invest in pollution abatement schemes. In

recent year, the World Banks relationship with Thailand has evolved from lender to

knowledge-sharer. Exemplifying this new role, the Bank and government have

recently established a Country Development Partnership for Environment (CDP-E)

(see below), which focuses on improving environmental quality and sustaining natural

resources through knowledge-sharing and demonstration.

Technology With the exception of multinational companies, businesses in

Thailand limit most of their Internet involvement to basic electronic data interchange,

processing networks and messaging systems. Some customs procedures are conducted

online, and the Stock Exchange of Thailand has permitted online trading since April

2002. Electronic banking is developing, with all the major banks now offering

transaction and account-checking services online. Websites are increasingly offering

interactive transactions, but most are static information outlets. The government is

offering more services online, mainly through its portal: www.ecitizen.go.th. Because

of the licensing structure and the limited scale of commerce in Thailand,

Internet-related transactions are defined purely in technological terms.

3.12CompetitionAnalysis

Competitor Analysis In Chiang Rai, there are lots of digital product

stores, small and big, normal and special. They mainly located in It center of Chiang

Rai city, Big C shopping mall, the neighborhood of the universities. Those stores

consist of most computer stores and little specialty stores. Those computer stores

provide a limited variety and assortment of merchandise at a convenient location.

They enable consumers to make purchases quickly, without having to search through

a large store and wait in long checkout line. They provide low price product but low


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service also. For the specialty stores in Chiang Rai, they concentrated on a limited

number of complementary merchandise categories and provide a high level of service

in relatively small stores. Most of these stores just offer quite expensive digital

products, such as product of IPod, Sony, and Philips etc.

Customer Analysis In recent time, we just conducted a study on the

customer behavior of Digital product in Chiang Rai. The results shows that the mainly

customer of Digital product are students whose age is between 15 to 20 years old.

When try to ask: do you like to wear mp3 player-watch? There are almost 70% of

those participators said yes. 42% of them purchased digital product from IT center,

50% from shopping mall and 8% from other stores. The lifestyle of those mainly

customer are sport and nature. They are more interesting with high-technology

product. Most of digital product buyer is the end user. They purchase the products for

themselves. There are a high number of products and services for whom the buyer is

the main driver being making the purchase.

Competitive Analysis Our competitor are those computer stores and

specialty stores. They located in the shopping mall or some convenient site. Their

inventory mostly comes from Thailand with relatively same price. Our store will seek

to the high-technology product with lower price. Most inventories will be purchased

from China suppliers, which will make our product different from our competitors.

Our customers are students those who like sport or nature lifestyle. Unlike the normal

computer stores, we will care both service and product parts. We will provide high

quality product with good service to satisfy those customers.

3.2 STP Analysis

Market segmentation - We divide our customer into groups based on

variables such as age, family size, family life cycle, income, occupation, country

region.


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Age: 6-15, 15-25, 25-40, 40-60; 60+

Family size: 1-2, 3-4, 4-6, 6+

Family life cycle: under 18; Single; married, no children; married, have children;

older, single; other

Month Income (Baht): lower than 5,000; about 7,000-10,000; about

10,000-20,000; more than 30,000

Occupation: Student; government officer; employee; business owner; retirement

City or countryside

Market targeting - Our store will target on one group who lived nearby

Rajabhat University. Their age is between 15 to 25 years old. Their month income

lower than 5,000 baht and most of them are students.

Marketpositioning We offer our customer a hightechnology product but

lower price. Because we purchase the inventory from China, it can increase our stores

differentiation fromcompetitors.Duetoourmainlycustomerarestudents,wewillseekthose

products which are lower price but fashionable. Moreover every products of our store will

enjoyOEMwarranty.


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Economic Presentation

Skimming Premium

Quality

Low High

Price

Low High

3.3 Marketing Mix Strategy

Due to our store brand is not well-known, the sale is relatively low. We will

focus on enhance our store awareness through using the multi-communication channel

to. The total communication expenses are12,000 which will be assigned to each

task respectively for next month. The expense for each relative objective is stated

under:

Objective1:

Increase

traffic

during

dull

periods.

Task:Run30secondradiospotssplitontwostationsandspreadoverthesedates:October1 10

6000baht

Objective2:Attractnewcustomersfromnewstudentstothecommunity

Task:2,000directmailletters invitingresidents(Mostarestudents)inthecommunitytostopin

to

visit

the

store

0

baht

Cn_fantasy


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Objective3:Buildstoresreputation.

Task: One quarterpage newspaper ad per month in the IT section of the local newspaper

5000baht

Objective4:Clearoutendofmonth,slowmovingmerchandise.

Task:RunafullpagenewspaperadonthelastFridayofeverymonth 1000baht

3.4 Sales Forecast/Profit Estimation

Monthlyincome

statement

Sales 134,000Grossmargin(realized) 53,600Rental,maintenance,etc 17,400Personnel 13,020Communications 12,000 Profit 11,180

3.5 Marketing Expenses

Communication Budget

Level

Communication

expenses

(1)

Sales

(2)

Gross

margin

(realized)

(3)

Rental

Expenses

(4)

Personnel

Expense

(5)

Contribution

before

communication

expense

(6)=(3)(4)(5)

Profit

after

communication

expense

(7)=(6)(1)

10 48,000 19,200 8,800 10,440 40 40

22,000 66,000 26,400 10,600 11,280 4,520 2,520

34,000 84,000 33,600 12,400 11,520 9,680 5,680

46,000 100,000 40,000 14,000 12,000 14,000 8,000


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58,000 114,000 45,600 15,400 12,420 17,780 9,780

610,000 125,000 50,000 16,500 12,750 20,750 10,750

7 12,000

134,000

53,600 17,400 13,020

23,180

11,180

814,000 141,000 56,400 18,100 13,230 25,070 11,070

Accordingtothecommunicationbudget,wecanseethelevel8contributesthehigherprofit,but

theexpenselevelsbetween 12,000and 14,000allresultalmostthesamelevelofprofit.Thus,

ourcompanyshouldchoosethelevel7forourcommunicationexpenses.

3.6 Conclusion

In conclusion, I view the digital product marketing in Chiang Rai in a positive way. It

has both stable general environment and low intense competition. In Chiang Rai, we

see the economy has increased faster over the last few years. And the residents are

increase every year because lots of students come here. In addition, since the

establishment of GREAT MEKONG SUBREGION COOPERATION, it has brought a

lot of potential advantages for the business of those countries such as the free tariff

trading. We believe our business will be successful in the near future through seizing

the opportunity.


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Chapt er 4

Technic a l Feas ib il i t y St udy

4.1 Product ion and Operat ions Analys is

- Product Characteristics

Our products have special design, nice appearance and many colors; they can give

customers a different choice as their own style. Our products also have high

quality and low cost. At present, we have four distinctive characteristics: Jewelry

Types; Mobile Phone Types; Ultrathin Card Types and Cartoon Types.

Almost jewelry types design for female customers, they are making into necklaces,

earrings, rings and other kinds of accessories. They can be caught in the clothesanywhere. These designs are beautiful, compact and colorful.

Mobile Phone types are design as phone, and they have video function.


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Usually ultrathin card types design for man, it convenient to carry; they can put it

in their pocket.

Cartoon types often design for children; they have very cute cartoon appearance,

and the price is cheap.


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- Specification, Feathers, Dimension, Life Time

MP3:

These machines are the figures walkman of the whole new generation equipments.

They basic support MP1, MP2, MP3, WMA, WMV, ASF, WAV etc. format

music. These machines have perfect sound quality, very credibility quality and

choiceness of external appearance benefit by association together, be rated as the

work of master class, they can bring extraordinary enjoyment of the digital era.

General Description Functions:

Choiceness features design

They all have special external appearance designs, pleasant of hand feeling.

Support variety audio frequency format

Support MP1, MP2, MP3, WMA, WMV, ASF, WAV and other formats players.

The Firmware Upgrade function

Provide on the website latest of get stripe software download, realization originthe function of the machine expand.

The FM high fidelity radio

Strong auto search broadcasting station or hand to move to search broadcasting

station function, 40(each make type 20) native broadcasting station of saving

dissimilarity frequency, let you easy listen to a broadcasting station program.

Driver-free U disk function

Do not need management procedures, can be directly through the "My Computer"

in "removable disk" to file operations, in the above WIN2000 system without

having to install drivers.

The disk mode of difference dimension"


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Make use of random supplementary tool, can divide the line this machine disk as

two disk, and encrypt an among those, conceal space, make keep to encrypt at this

part of the contents be not see by the outsider with read and write, from now on can

hide a secret!".

Recording/reply to readCan pass microphone recording and keep for the speech text of the WAV and the

ACT format file, can choice the part reply to read or contrast reply to read,

realization the real figures reply to read function.

7 kinds of machine with balanced tone color

Nature, rocks roll, popular, classic, soft, jazz, heavy bass

The variety broadcast mode

Common mode, list song circulation, the catalogue broadcast, catalogue circulation,

all circulation, random broadcast, browse to broadcast.

In fixed time shut down

Can enactment sleep mode and province electricity mode; make you usage get upto feel more convenience.

Whole animation menu

Keep the animation menu of view, the match correspond literalness a manifestation,

usage get up with proficiency!

Multilingual

Can the choice simplified Chinese , traditional Chinese, English, Japanese, Korean,

French, German, Italian, Holland, Portugal text, the Tai and Spanish 12 kinds of

languages.

Our products have many kinds of internal storage to choice, for example, 1G, 2G,

4G and son on. Usually the life time is 4-5 years, and we will provide one-year

warranty.

MP4:

MP4 are the figures walkman of the whole new generation equipments. They

basic support MP3, WMA, and other format music players, and support RM,

RMVB, AVI, FLV and other forms video players. These machines have perfect

sound quality, HD decoding, super Video resolving power, and have very

credibility quality and special external appearance, they can bring extraordinary

enjoyment of the digital era and watch clear films.

General Description Functions:High Definition Video function:

Support 720P high-definition video player, assure 1280*720 high-quality image

pixel.

Film Appreciation Function:

Support RM, RMVB, AVI, FLV and other forms video players, you can download

movies what you like.

Metal Appearance:

All make of metal, eye-catching,sparkle fashion and aristocratic temperament.

Colorful Screen:

TFT LCD, screen real delicate and widescreen display.


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Video Output Function:

Support HD restore image, easy access to a large number of new source.

Music Appreciation Function:

Support MP3, WMA, APE, FLAC pairs of lossless compression forms of music

player, and Synchronized lyrics display.Breakpoint Continued Broadcasting Function:

Can record and retain your movie player progress.

Super Outer Sound Function:

Support external audio player, and let you enjoyment of good sound quality.

Digital Repetition Function:

A-B repetition, simplicity of operator, and study foreign language easily.

Multitasking Function:

Support multitasking operation, you can listen music and read e-book at the same

time.

Electronic Album Function:Support a variety of forms of browsing pictures, such as JPG, BMP, PNG and so

on.

Text Reading Function:

TXT text reading, auto browsing, and convenient functions of set bookmark and

extraction.

Digital Recording Function:

Built-in high-definition microphone, set to achieve high-quality recording and

transient records.

Energy-Saving Settings Function:

Provide automatic shutdown, auto-off screen and other energy-saving settings

functions. It can help you save energy and convenient.

High-Speed Interface Function:

USB2.0 high-speed interface, it can quick to read and write.

Firmware Upgrade Function:

Support firmware upgrade,

We have many kinds of internal storage to choice, for example, 1G, 4G, 10G and

so on. Support MPEG-4, AVI, ASF, WMV and other forms video player. Usually

the life time is 4-5 years, and we will provide one-year warranty.

- Production/Service Process

Negotiate with Manufacturing

Purchase Products


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Transportation

Sale

- After-sale Service

We import our products from four brand manufacturers in China. These

companies are famous and have reputable brand in China, and they all products

have reliable quality and reasonable price. Through our negotiation, they agree

with that we can choice product style by ourselves, they are pledge to provide

the best quality products to us, if some of our products sale not well, we canreturn these products and change other types. About their products after-sale

service, because of we think about if the product have some problems, we return

it to manufacturer to repair, it would costly, we decide to set up our after-service

department, and these manufacturers are responsible train our staff some

necessary techniques of after-service for free. And they will try their best to

design products if our customers want a special style product. We will cooperate

with Logistics Company, they can use their profession to help us choice the best

transportations, and make sure our products safe. Our store will try our best to

provide excellent service to customer, we have own after-service department, it

can provide best after-service to customers, and can teach customer how to

maintain their products.

- Location

Our store is located in nearby Rajabhat University in Chiang Rai. Because through

our research, the result show that the mainly customers of digital products are

15-20 years old students in Chiang Rai. Rajabhat University has many students,

there are have other schools and church near Rajabhat University, the main of

people go to church are students, and it is also nearby Mae Fah Luang University.

- Facility Layout

Our store facility layout is simple and fashionable; the design will meet the tastesof young people. We will purchase some computers to give customer search

information, and download music, movies with free. Our store has 4 rooms; these

rooms are respectively used for selling, storing, washroom and after- service. Our

after- service department have sofa, free water provide to customers, and they also

can play computer with free. When they wait for repairing, they also get our

excellent service.

4.2 cost of Investment


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Pre-Operating Cost for Year 2010

Expenses

Rent B 120, 000Insurance 48,800

Salary (3) 175, 680

Advertising 8, 000

Internet portal 1, 500

Shipping fee 40,000

Decorating fee 146, 400

Assets

Equipment 14,640

Computer (5) 150, 000

MP3, MP4/Product 732, 000License 5,000

Vehicle 150,000

Total B 1,592, 020

PreOperatingCostforYear2010,Monthly

Expenses/Asset JAN FEB MAR APR MAY JUN

Expenses

Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000

Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6

Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640

Advertising 666.666 666.666 666.666 666.666 666.666 666.666

InternetPortal 125 125 125 125 125 125

Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33

Decoratingfee 6,100 6,100 6,100 6,100 6,100 6,100

Asset

Equipment 610 610 610 610 610 610

Computer(5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66

MP3,MP4/Product 61,000 61,000 61,000 61,000 61,000 61,000

License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333

Vehicle 2,500 2,500 2,500 2,500 2,500 2,500

Total 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5


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JUL AUG SEP OCT NOV DEC TOTAL

B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000

4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800

14,640 14,640 14,640 14,640 14,640 14,640 175,680

666.666 666.666 666.666 666.666 666.666 666.666 8,000

125 125 125 125 125 125 1,500

3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000

6,100 6,100 6,100 6,100 6,100 6,100 73,200

Asset

610 610 610 610 610 610 7,320

4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000

61,000 61,000 61,000 61,000 61,000 61,000 732,000

83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000

2,500 2,500 2,500 2,500 2,500 2,500 30,000

143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 1,726,699


Expenses/Asset

JAN

FEB

MAR

APR

MAY

JUN

Expenses

Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000

Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6

Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640

Advertising 666.666 666.666 666.666 666.666 666.666 666.666

InternetPortal 0 0 0 0 0 0

Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33

Decoratingfee

6,100

6,100

6,100

6,100

6,100

6,100

Asset

Equipment 610 610 610 610 610 610

Computer(5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66

MP3,MP4/Product 61,000 61,000 61,000 61,000 61,000 61,000

License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333

Vehicle 2,500 2,500 2,500 2,500 2,500 2,500

Total 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5


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B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000

4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800

14,640 14,640 14,640 14,640 14,640 14,640 175,680

666.666 666.666 666.666 666.666 666.666 666.666 8,000

0 0 0 0 0 0 0

3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000

6,100 6,100 6,100 6,100 6,100 6,100 73,200

Asset

610 610 610 610 610 610 7,320

4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000

61,000 61,000 61,000 61,000 61,000 61,000 732,000

83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000

2,500 2,500 2,500 2,500 2,500 2,500 30,000

143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 1,725,199


Expenses/Asset

JAN

FEB

MAR

APR

MAY

JUN

Expenses

Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000

Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6

Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640

Advertising 666.666 666.666 666.666 666.666 666.666 666.666

InternetPortal 125 125 125 125 125 125

Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33

Decoratingfee

7,116.66

7,116.66

7,116.66

7,116.66

7,116.66

7,116.66

Asset

Equipment 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66

Computer(5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66

MP3,MP4/Product 80,000 80,000 80,000 80,000 80,000 80,000

License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333

Vehicle 2,500 2,500 2,500 2,500 2,500 2,500

Total 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9


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B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000

4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800

14,640 14,640 14,640 14,640 14,640 14,640 175,680

666.666 666.666 666.666 666.666 666.666 666.666 8,000

125 125 125 125 125 125 1,500

3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000

7,116.66 7,116.66 7,116.66 7,116.66 7,116.66 7,116.66 85,400

Asset

1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 12,200

4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000

80,000 80,000 80,000 80,000 80,000 80,000 960,000

83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000

2,500 2,500 2,500 2,500 2,500 2,500 30,000

164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 1,532,580



Expenses

Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000

Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6

Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640

Advertising 666.666 666.666 666.666 666.666 666.666 666.666

InternetPortal 0 0 0 0 0 0

Shippingfee

3,333.33

3,333.33

3,333.33

3,333.33

3,333.33

3,333.33

Decoratingfee 6,100 6,100 6,100 6,100 6,100 6,100

Asset

Equipment 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66

Computer(5) 5,000 5,000 5,000 5,000 5,000 5,000

MP3,MP4/Product 91,500 91,500 91,500 91,500 91,500 91,500

License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333

Vehicle 2,500 2,500 2,500 2,500 2,500 2,500

Total

175,506.5

175,506.5 175,506.5 175,506.5

175,506.5

175,506.5


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B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000

4,0666.6

4,0666.6

4,0666.6

4,0666.6

4,0666.6

4,0666.6

48,800

14,640 14,640 14,640 14,640 14,640 14,640 175,680

666.666 666.666 666.666 666.666 666.666 666.666 8,000

0 0 0 0 0 0 0

3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000

6,100 6,100 6,100 6,100 6,100 6,100 73,200

Asset

1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 12,200

5,000

5,000

5,000

5,000

5,000

5,000

180,000

91,500 91,500 91,500 91,500 91,500 91,500 1,098,000

83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000

2,500 2,500 2,500 2,500 2,500 2,500 30,000

175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 1,786,880



Expenses

Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000

Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6

Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640

Advertising 666.666 666.666 666.666 666.666 666.666 666.666

Internet

Portal

125

125

125

125

125

125

Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33

Decoratingfee 6,100 6,100 6,100 6,100 6,100 6,100

Asset

Equipment 1,138 1,138 1,138 1,138 1,138 1,138

Computer(5) 5,000 5,000 5,000 5,000 5,000 5,000

MP3,MP4/Product 101,666 101,666 101,666 101,666 101,666 101,666

License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333

Vehicle

2,500

2,500

2,500

2,500

2,500

2,500


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Total 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9


B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000

4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800

14,640 14,640 14,640 14,640 14,640 14,640 175,680

666.666 666.666 666.666 666.666 666.666 666.666 8,000

125 125 125 125 125 125 1,500

3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000

6,100 6,100 6,100 6,100 6,100 6,100 73,200

Asset

1,138 1,138 1,138 1,138 1,138 1,138 13,656

5,000 5,000 5,000 5,000 5,000 5,000 60,000

101,666 101,666 101,666 101,666 101,666 101,666 1220,000

83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000

2,500 2,500 2,500 2,500 2,500 2,500 30,000

185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 1,791,836

InvestmentCostforYear2010

INVESTMENT AMOUNT DEPRECIATION ANNUALDEP. MONTHLYDEP.

Computer 150,000 3Years 50,000 4,166.666

Equipment 14,640 2Years 7,320 610

Vehicle 150,000 5Years 30,000 2,500

DepreciationforYear2010,Monthly

INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 150,000 4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

50,000

EQUIPMENT 14,640 610 610 610 610 610 610 610 610 610 610 610 610 7,320


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VEHICLE 150,000 2,500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

30,000

TOTAL 314,640 7,276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

7,

276.6

87,320


INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 100,000 4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

50,000

EQUIPMENT 7320 610 610 610 610 610 610 610 610 610 610 610 610 7,320

VEHICLE 120,000 2,500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

30,000

TOTAL 227,320 3,943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

3,

943.3

87,320


INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

COMPUTER 50,000 4,166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

4,

166.6

50,000

EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0

VEHICLE 90,000 2,500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

30,000

TOTAL 140,000 6,666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

6,

666.6

80,000


INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 0 0 0 0 0 0 0 0 0 0 0 0 0 0

EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0

VEHICLE 60,000 2,500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

30,000

TOTAL 60,000 2,500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

30,000


40/60

35


INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 0 0 0 0 0 0 0 0 0 0 0 0 0 0

EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0

VEHICLE 30,000 2,500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

30,000

TOTAL 30,000 2,500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

2,

500

30,000

Administration Cost for per month

Electricity B 2,475

Telephone 1,800

Fax Salary 1,500

Internet fee 1,000

Water fee 30

Receipts 800Total 7,605

-Management Analysis

The form above display every month our company has to pay for support the

operation of our company. It is essential for every company which want to

performance good. It calculated that we need 7,605 baht to support our company per

month. Exclude the Internet fee and water fee is fix cost, others are variable cost like

electricity, telephone, fax salary, receipts. So we just can estimate.

-Conclusion

From the data of pre-operation 2010, 2011, 2012, 2013, 2014 display that the

total investment for year decrease year by year until year 2012, at year 2013 and year

2014 happened some small inflation because of the exchange rate. From current

exchange rate we can get the conclusion about the Chinese RMB exchange Thai Baht

lower than before, so we assume that the rate will be decrease for a long time until

year 2012. At year 2013, we assume that the rate will be increase at that time, so at the

same money, we can exchange more Thai Baht. So the expense at year 2013 isespecially high. Decorating fee, equipment fee, computer, MP3, Mp4 product fee are


41/60

36

changed along with the exchange rate prospect. And the internet portal we updated

once every other year for attract customers, at the same time we can save cost.

Chapter5

Financ ia l analys is

In t roduc t ion

In this chapter we will use the accounting and financial analysis our

company situation,use the profit and loss statement ,cash flow ,balance

sheet to analysis ,can help our origination know ,our company can get the

profit or get loss ,when can get profit,can plan about 5years accounting

and financial situation .

5.1 Prof i t /loss s t a tem ent

2010 year

Period

ending

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot

al

Total

revenu

e

127

33

127

33

127

33

127

33

1273

3

127

33

12

73

3

127

33

127

33

127

33

1273

3

127

33

$15

280

0

cost of

revenu

e

349

1

349

1

349

1

34

91

3191 341

9

34

19

341

9

341

9

341

9

3419 341

9

$4

19

00

Gross

profit

924

1

924

1

924

1

924

1

9241 924

1

92

41

924

1

924

1

924

1

9141 924

1

$11

090

0

Operat

ing

expens

e

Rentalmaint

1450

1450

1450

450 1450 1450

1450

1450

1450

1450

1450 1450

$17400


42/60

37

Rent

store

100

0

100

0

100

0

100

0

1000 100

0

10

00

100

0

100

0

100

0

1000 100

0

$12

000

Advert

ising

670 670 670 670 670 670 67

0

670 670 670 670 670 $80

00

Decorating

fee

0 0 0 0 0 0 0 0 0 0 0 0 0

Total

operati

ng

expense

311

6

311

6

311

6

311

6

3116 311

6

31

16

311

6

311

6

311

6

3116 311

6

$37

400

Operati

ng

income

or loss

612

5

612

5

612

5

612

52

6125 612

5

61

25

612

5

612

5

612

5

6125 612

5

$73

500

Year 2011

Period

ending


al

Total

revenu

e

128

00

128

00

128

00

128

00

1280

0

128

00

12

80

0

128

00

128

00

128

00

1280

0

128

00

$15

360

cost ofrevenu

e

3483

3483

3483

3483

3483 3483

3483

3483

3483

3483

3483 3483

$41

800

Gross

profit

931

6

931

6

931

6

931

6

9316 931

6

93

16

931

6

931

6

931

6

9316 931

6

$11

180

0

Operat

ing

expens

e

Rental

maint

140

8

140

8

140

8

140

8

1408 140

8

14

08

140

8

140

8

140

8

1408 140

8

$16

900

Rent

store

108

3

108

3

108

3

108

3

1083 10

83

108

3

108

3

108

3

1083 108

3

$13

000

Advert

ising

833 833 833 833 833 833 83

3

833 833 833 833 833 $10

000

Decor

ating

fee

33

33

33

33

333

3

333

3

333

3

33

33

33

33

333

3

333

3

33

33

333

3

33

33

$40

000

Total

Total 649

649

649

6499

649

64

649

649

649

6499 649

$77


43/60

38

operati

ng

expens

e

9 9 9 9 99 9 9 9 9 900

Operat

ing

income

or loss

2817

2817

2817

2817

2817 2817

2817

2817

2817

2817

2817 2817

$33810

Year 2012

Period

ending


al

Total

revenu

e

126

53

126

53

126

53

126

53

1265

3

126

53

12

65

3

126

53

126

53

126

53

1265

3

126

53

$15

184

0

cost of

revenu

e

334

9

334

9

334

9

334

9

3349 334

9

33

49

334

9

334

9

334

9

3349 344

9

$40

190

Gross

profit

930

4

930

4

930

4

930

4

9304 930

4

93

04

930

4

930

4

930

4

9304 930

4

$11

165

0

Operating

expens

e

Rental

maint

141

6

141

6

141

6

141

6

1416 141

6

14

16

141

6

141

6

141

6

1416 141

6

$17

000

Rent

store

125

0

125

0

125

0

125

0

1250 125

0

12

50

125

0

125

0

125

0

1250 125

0

$15

000

Advert

ising

833 833 833 833 833 833 83

3

833 833 833 833 833 $10

000

Decor

ating

fee

0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Total

operati

ng

expens

e

316

66

316

66

316

66

316

66

3166

6

316

66

31

66

316

66

316

66

316

66

3166

6

316

66

$38

000

Operat

ing

613

7

613

7

613

7

613

7

6137 613

7

61

37

613

7

613

7

613

7

6137 613

7

$73

650


44/60

39

income

or loss

Year 2013

Period

ending


al

Total

revenu

e

128

08

128

08

128

08

128

08

1280

8

128

08

12

80

8

128

08

128

08

128

08

1280

8

128

08

$15

370

0

cost of

revenu

e

363

0

363

0

363

0

363

0

3630 363

0

36

30

363

0

363

0

363

0

3630 363

0

$43

560

Gross

profit

917

8

917

8

917

8

917

8

9178 917

8

91

78

917

8

917

8

917

8

9178 917

8

$11

011

4

Operat

ing

expens

e

Rental

maint

140

0

140

0

140

0

140

0

1400 140

0

14

00

140

0

140

0

140

0

1400 140

0

$18

600

Rentstore

1166

1166

1166

1166

1166 1166

1166

1166

1166

1166

1166 1166

$14

000

Advert

ising

250 250 250 250 250 250 25

0

250 250 250 250 250 $30

00

Decor

ating

fee

0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Total

operati

ng

expens

e

281

6

281

6

281

6

281

6

2816 281

6

28

16

281

6

281

6

281

6

2816 281

6

$33

800

Operat

ing

income

or loss

636

1

636

1

636

1

636

1

6361 636

1

63

61

636

1

636

1

636

1

6361 636

1

$76

340

Year 2014


45/60

40

Period

ending


al

Total

revenu

e

127

26

127

26

127

26

127

26

1272

5

127

26

12

72

6

127

26

127

26

127

26

1272

6

127

26

$15

272

0cost of

revenu

e

352

9

352

9

352

9

352

9

3529 362

9

35

29

352

9

352

9

352

9

3529 352

9

$42

350

Gross

profit

919

7

919

7

919

7

919

7

9197 919

7

91

97

919

7

919

7

919

7

9197 919

7

$11

037

0

Operat

ing

expens

e

Rental

maint

140

4

140

4

140

4

140

4

1404 140

4

14

04

140

4

140

4

140

4

1404 140

4

$16

850

Rent

store

116

6

116

6

116

6

116

6

1166 116

6

11

66

116

6

116

6

116

6

1166 116

6

$14

000

Advert

ising

166 166 166 166 166 166 16

6

166 166 166 166 166 $20

00

Decor

ating

fee

0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Total

operati

ng

expens

e

140

4

140

4

149

4

140

5

1505 140

4

14

04

140

4

140

4

140

4

1404 140

4

$16

850

Operat

ing

income

or loss

779

3

778

3

779

3

779

3

7793 779

3

77

93

779

3

779

3

779

3

7703 770

3

$93

520

Period

ending

27-Sep-10 28--Sep--11 26--Sep--12 26--Sep--13 28--Sep--14

Total revenue 152,800 153,600 151,840 153,700 152,720

cost of revenue 41,900 41,800 40,190 43,560 42,350Gross profit $ 110,900 $ 111,800 $111,650 $110,140 $110,370


46/60

41

Operating

expense

Rental

maintenance

17,400 16,900 17,000 16,800 16,850

Rent store 12,000 13,000 15,000 14,000 13,000

Advertising 8,000 10,000 6,000 3,000 2,000

Decorating fee --- 40,000 ---- ---- -----

Total operating

expense

37,400 77,990 38,000 33,800 16,850

Operating

income or loss

73,500 33,810 73,650 76,340 93,520

In the profit or loss statement we calculate the total revenue,gross margin,and

operating expenses at our company , combine the total operating expense and gross

profit ,get the operating income or loss.The profit will increaseing in future . this

involves the creation of a profit and loss budget setting out expected future profits/losses for the

business. This is important in assessing the return on the business

5.2 Cash f low

Year 1 Year2 Year3 Year4 Year5

Capital -300,000

Resident capital 140,000

Loan 800,000

Interest -50,000 -40,000 -30,000 -20,000

Repayment -40,000 -40,000 -40,000 -40,000

Variable cost

Supplement -432,000 -564,000 -443,000 -357,000 -321,000Others -29,400 -32,700 -45,600 -25,400 -31,400

Total variable

cost

-461,400 -696,700 -488,600 -392,400 -352,400

Fixed cost

Rent -120,000 -120,000 -120,000 -120,000 -120,000

Insurance -48,800 -48,000 -48,000 -48,000 -48,000

Advertising -8,000 -7,000 -7,000 -6,000 -5,000

Internet portal -1500 -1500 -1500 -1500 -1500

Salary -71,400 -71,400 -71,400 -71,400 -71,400


47/60

42

License -5,000 -5,000 -5,000 -5,000 -5,000

Vehicle -150,000 -150,000 -150,000 -150,000 -150,000

Total fixed cost -404,700 -404,800 -404,800 -404,900 -405,000

Working captailWorking capital

cash 10% of

fixed cost

-40,470 -40,480 -40,480 -40,490 -40,500

The cash flow statement calculate fixed cost ,variable cost in our company .we need

pay the fixed cost every year ,variable depend on our store sell quanlity of Mp3and

mp4 product ,if we can sell more product we can have more variable cost and more

profit .Budgeting - creating a budget setting out planned cash flows in and out of the business.By monitoring a cash flow budget it is possible to identify any potential crisis points where

liquidity will be poor. Budgets can also be set out for income and expenditure by the business, as

well as a capital budget showing major capital spending

5.3 Revenue forec ast

Year 1 Year2 Year3 Year4 Year5

Estimate

sales volume

Amount of

customer

7200 8280 9522 10950 12593

Estimate sale

price(bath)

Service 190 190 190 190 190

Product 110 110 110 110 110

Revenue

forecast

Service 11,180 13,400 15,300 16,700 16,900

Product 435,000 534,000 643,000 652,900 674,800

Total revenue

forecast

445,180 547,400 653,300 679,600 691,700

Revenue is very important in organization , we make the business is think how to get

the profit ,we calculate the revenue forecast can know future revenue, can know our

product and service in our company .


48/60

43

5.4 Operat ing act iv i t ies

02/11 02/12 02/13 02/14 02/15

Net income (loss) 134,000 156,000 178,000 187,000 197,000

Depreciation 17,320 18,450 19,320 20,450 21,230

Amotization 0 0 0 0 0

Deferred income taxes 21,300 22,430 23,470 24,560 24,780

Operating gains (loss) 73,500 33,810 73,650 76,340

93,520

Inecrease in inventories 61,000 59,000 57,800 48,790 48,990

Inecrease in current assets 269,340 326,974 37,838 406,770 443,702

Decrease in working capital -40,470 -40,480 -40,480 -40,490

-40,450

Net Cash fromOperating 535,990 576,184 349,590 723,420 788,772

Year 2011

Peri

od

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tota

l

Net

inco

me

111

66

111

66

111

66

111

66

111

66

111

66

111

66

111

66

111

66

111

66

111

66

111

66

$13

400

0

Dep

reci

atio

n

1443

1443

1443

1443

1443

1443

1443

1443

1443

1443

1443

1443

$17320

Inco

me

taxe

s

177

5

177

5

177

5

177

5

177

5

177

5

177

5

177

5

177

5

177

5

177

5

177

5

$21

300

Ope

rati

ng

gain

612

5

612

5

612

5

612

5

612

5

612

5

612

5

612

5

612

5

612

5

612

5

612

5

$73

500

Inve

ntor

y

508

33

508

33

508

33

508

33

508

33

508

33

508

33

508

33

508

33

508

33

508

33

508

33

$61

000

Asse

ts

224

45

224

45

224

45

224

45

224

45

224

45

224

45

224

45

224

45

224

45

224

45

224

45

$26

934

0

Wor

king

capi

--

3372.5

--33

72.5

--33

72.5

--33

72.5

---3

372.5

---3

372.5

--33

72.5

--33

72.5

---3

372.5

---3

372.5

---3

372.5

---3

372.5

---$

40470


49/60

44

tal

Net

cash

flow

446

65

446

65

446

65

446

65

446

65

446

65

446

65

446

65

446

65

446

65

446

65

4

a financial projection for cn-fantasy company

Documents