project feasibilty study and evaluation - aj.chaiyawat thongintr, mae fah luang university(mfu),...
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Executive Summary
Mae Korn Alaiyont is the spare part shop which provides standard and high quality
the variety of spare part products where is located in Mae Korn intersection area is near the
Chiang Rai bus station. Also Mae Korn Alaiyont provide customers satisfaction and
trustworthy with high quality and variety of products anticipate their requirement and create
the great value of product with reasonable price and service with friendly greeting and smile.
We emphasize is on the garage market include individual car user. We expand market in
Chiang Rai and expand the business growth which related with customers order for provide
opportunity profit. In addition, we applying computing technology for inventory management
and customers can order though website. Beside this we believe that lasting business success
is built upon ethical that had customer above profit which we operate to centre of spare partproduct and service we do, we act with honesty, fairness and integrity. Moreover we concern
the corporate social responsibility to the social activities and environment friendly. We
recruit, develop, motivate, reward and retain personal of ability to be the technician working
condition, superior leadership, and condensation on the basis of performance with high
degree of employee security.
The important reasons for establish Mae Korn Alaiyont according to the general of
spare part business in Chiang Rai have higher growth rate and it affect to increase the spare
part business. From this reason, Mae Korn Alaiyonts customers can be many garages and
general customers which can the same increase. And because of there are only three to four
the main and big spare parts business in Chiang Rai. Moreover the numbers of customers use
the garages have increased because it can from accidents or they need to maintain their car.
In addition the spare part business is not enough to serve the customers satisfaction including
the people who use the individual car and each garage in Chiang Rai or suburban. In term of
the nature of industry, the development of each country often to consider from economic
growing rate is the main point. Where the developed country is high economic growing rate
before the economic crisis is happen in Thailand. To develop the economic continually and
rise effect by Thai because Thailand economy is depend on the industrial more than the
agricultural and the product of industry change from production for importing substituted to
produce for exporting. The government aim about production for exporting by reach to the
international market. If the ability to distribute Thailand product into the world market; from
the business process to the customer is smooth, Thailand product will successful in the worldmarket. It is an important thing of exporting business, and the main factor that effect to
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economic growth. When the economy of country have to depend on the industrial that
emphasize with the production for exporting, and there is a production. It must have the
products receiving by using logistics system.
According to the export and import statistic, there are increasing in every year the
state always tries to develop the transportation system. Transportation system has landing
transportation that has long road 170,000 km. high ways 25,000 km. combination with
railroad more than 4,000 km. connect between country size and pass to neighbors hood
country. Moreover air transportation have international airport seven places, domestic airport
twenty-five places and water transportation there are international port for five ports but
transportation system in Thailand is depend on truck which is the most quantity and accept
convenience and fast it is reason growing of automobile industrial. That makes for carriage
more weight. From this information that the most quantity transportation is landing so trucks
is important vehicles for distribute goods to local that make logistics business increase by
statistic about commercial increase, high sale volume. In distribution by truck is hard for
overweight carriage for breakeven and long time to distribute. Truck is not maintenance
because driver is not owner who is employee only that make owner must be maintenance
themselves, fixed and change spare part always for truck or car have long time and safety
although changing spare part at that time have to pay much more money.
On the other hand, the situation industry in Thailand has problem with export the auto
part industry. The auto part industry has exporting decline stage about forty-three point nine
percent when compare with the same period of last year. The main factor effect continuously
is the economic crisis and the dimension of many factors such as world oil price fluctuation
make the oil price high and effect to world economic. From the reason is effected the car
producer industry and car market has decrease of sales volume. That effect to the individual
car user influent to decrease customer buying power and customer loyalty. From the
continuous effect car producer industry and auto part industry although , in the present of
market situation it can build the opportunity for spare part business growing because the
customer favor to use the old car or no chance to buy a new car. Thus, increase the spare part
product for customer who would like to maintenance their cars. Make the spare part product
has high demand for sales. The customer doesnt desire to buy new car because the difficult
about the contract and high risk to has more debt. The customer favor to use old car and
second hand car because low price and more product to offer from the statistical of export
spare part product of Thailand researches by the federation of Thailand industries found that
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has continuous to expanding. However, in the auto part industrial is strong competing with
competitors. It is necessary to reduce cost and develop a quality of product to increase the
customer acceptable the product. Moreover the entrepreneurs are necessary to build the
business relationship with car center and garage business. In the present, Car is the necessary
vehicle used in human daily life for convenience and comfortable to do the business andmany activities such as transportation and service to the customer. Therefore, a spare part is
the importance equipment for car maintenance and necessary to use in every vehicle. So
spare part market is high profit and grows continuously and very interesting to invest the
business with large customer who use car and need to maintenance car.
According to market analysis, there are five external factors are effected to our
business; General Environment, Political, Economy, Social, and Technology. First the
general environment in Chiang Rai of spare part business information base on customer
buying power of Chiang Rai population. The most of customer of spare part business is the
owner of garage and car user that has high buying power for the observation of the many
garages can provide their service for the customer. Second one is political in Thailand
communication is important people who need to use vehicles for transportation and their
business so spare part business is necessary product for everyone. Third one is economy
crisis effect to slow down off last years by supply of Thailand people income and car industry
both of down production sector and customer demand is down follow delay of world
economy and the demand. Demand side, consuming consume the private sector is down from
a consumer is careful buying private sector investment still shrink brining pays the budget of
the government sector is down. The exporting decelerates down and lead part reaches to
expand price consumer index decelerates to follow fuel price that fines continual down for
the deposit and the credit still expand. Fourth is social, because of transportation is very
important in people daily life and car is very important thing for necessary and convenience
for people as well. Moreover, Chiang Rai is agriculture province most of people isagriculturist and usually use car and agricultural vehicle for agricultural. For this reason,
cause the spare part product is important for their vehicle. Therefore people willing to pay
for safety of their confidential drive. And the most of people like to check for car
maintenance at the garage or car center service that certainly growing effect of spare part
business extremely. The last factor is technology Information Technology progression has
fast communication. The place is basically carry appeared growing and in the present people
want to convenience in communication which car is important in their life. Many companies
provide modern product to customer for suitable with their lifestyle by comfortable product
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or service. New technology can change old things to new things such as auto part or spare
part business is providing new technology for the customers. Therefore we have more good
opportunity to establish spare part business. Also Mae Korn Alaiyont is high feasibility to
offer the largest spare part shop in Chiang Rai and provide excellent service by high skill
technician and professional who can provide right information to customers. By the way wecan make customers satisfy with our spare part and we can gain more profit.
In term of competitor analysis, because of spare part business is continuously
competition because the number of passenger car using, secondhand cars, and car that use for
agriculture have trend to increase. There is effect to spare part business has more expand and
has more necessary for every kind of cars in addition there is high profit business. Also spare
part shop in Chiang Rai is not enough and cannot response and support for customers need
and there is high start up and investment include the location in the city and cause of limited
area in Chiang Rai when compare with the around Mae Korn area. Thus we have more
opportunity to establish spare part shop because there have trend to increase growth. From
that reasons spare part business which located in Mae Korn has lass of competitors when we
compare with situation analysis that higher competition. Almost the spare part competition,
there are emphasize in quality of products and reasonable price including more variety of
products. That while in the future spare part market in Mae Korn area has expand and trend t
increase because economic in Chiang Rai expand and effect to increasing of spare part
market growth rate.
Moreover there are five factors in the competitive analysis; rivalry among competing
firms, potential of new competitors, potential development of substitute products, bargaining
power of suppliers, and bargaining power of customers. First rivalry among competing firms
in spare part business it does not has high competitive in the market because many firms still
not promote for their business. This business has high investment. General competition of
this business is small market because competitors only allocated in Chiang Rai. However, we
concern for business trustworthy from customers and the business main competitors. Due to
in the beginning business of spare part business cannot know about customers order and it is
difficult to catch the loyalty of customer. Moreover, if we are new business, nature of
customer will be not trust in the quality or standard of new business. Therefore, it is barrier
for our business. Second is potential of new competitors, because of spare part market
growth has trend to increase, thus the new firm likely to aim for the maximize profit and able
to sell the same characteristic of the products. However, we attempt to keep our customers
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include barriers to entry such always make customers loyalty, lack of experience, gain
technology and specialized know-how and potential saturation of the market. Moreover we
develop the strategy to attract the intension of the customer and to raise the barrier to the new
entry firm. Third is potential development of substitute products, because of spare parts
product is unique product and there is important and necessary component of every vehicles.Thus there is difficult to find the substitute products and we dont worry about this and dont
have competitive pressures from substitute product. Fourth is bargaining power of suppliers
there is high bargaining power of supplier because it affects the intensity of competition in
spare part business, especially when there are a large number of suppliers. Its often in best
interest both of supplier and producers to assist each other with reasonable price improve
quality, development service, and just-in-time delivery. Suppliers can set the criteria of the
spare part for the entrepreneurs and has the high bargain power. And the last factor isbargaining power of customers, because the bargaining power of customers is also higher
when the products being purchase are standard or undifferentiated. Customers have a high
purchasing power because it not too many types of customer who like to purchase spare part
product. Because of the bargaining power of customers can be the most important force
affecting competitive advantage. Therefore customer always concern in many factor that
relate for them before making decision to purchase the product. Moreover, nowadays
customers concern about high quality and more variety of products. Furthermore, customers
would like to get value added of product; they want to get more satisfaction in all brand of
spare part. It is good opportunity of our business.
According to management analysis, there are project activities, marketing
activities, technical activities, and projects building and constructions. For the beginningof
our business has the pre-operating administrative therefore our spare part business is high
feasibility and have more trend to increase the market growth in the future. In addition, the
period of project feasibility preparing the basis information for the component of analysis anduse to survey the location to open spare part business that we decided to choose area around
Mae Korn intersection is the our location. For the marketing, Mae Korn Alaiyont has concern
about the quality of products for standard and durable use and applies technology for
management. Moreover the efficiency of employees service can support the sell with service
mind and fast service. Therefore we apply the strategy for attract our customers and
advertisement our spare part shop such the radio and broadcast depend on the situation and
different for attract the customers to buy our all of spare part products. Moreover we have
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Content
Title Page
Chapter 1
Introduction 1
Background and Significance of the Project 1
Project objectives 2
Benefits of Project 2
Time Period 3
Chapter 2
Industry Profile 4
Nature of Industry 4
Situation of Industry 6
Product/ Service (in General) 8
Vision 15
Mission 15
Company Strategy 16
Corporate Level 16
Business Level 16
Functional Level 17
Chapter 3
Marketing 18
Market Feasibility Study 18
Market Analysis 18
General Environment Analysis 18
Political Analysis 18
Economy Analysis 22
Social Analysis 26
Technology Analysis 26
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Competitor Analysis (3C Analysis) 27
Competitor Analysis 27
Charearn Yont 28
Petch yont 30
SWOT Analysis 31
Customer Analysis 33
Customer marketing information 37
General customers 39
Garages 45
Retailers 55
Customer behaviors 56
Competitive Analysis ( Five force model ) 58
STP Analysis 67
Marketing Mix Strategy 70
Sale Forecast/ Profit Estimation 71
Marketing Expense (Sale Incentive) 80
Conclusion 83
Chapter 4 84
Technical Feasibility Study 84
Production and Operations Analysis 84
Product Characteristics 84
Characteristic of spare part business 84
Employees 85
Training and Development planning 86
Rate of payment 87
Location 89
Facility Layout 91
Facility Management 97
Machine/Tools/Equipment 98
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Investment Cost 106
Cost of Investment 107
Pre-Operating Cost 107
Fixed Asset 108
Depreciation 108
Land and Landscape 109
Building 109
Operating Expense 121
Chapter 5
Financial feasibility analysis 123
Budged allocating 123
Pre operating expense 124
Asset 125
Liability 126
Financial Policy 127
Income statement 127
Statement of Cash flow 131
Balance Sheet 136
Financial Ratio 141
Chapter 6
Risk Management 142
Business Risk 142
The factor of business risk 142
Analyze business of the project risk 145
The factor of effect risk 145
Lack skill of employee 147
The public utility 148
Administration of risk management 149
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Financial risk 150
Leverage 150
Cost profit analysis 151
Financial risk 152
Conclusion 172
Chapter 7
Conclusion of project feasibility of Mae Korn Alaiyont 173
Reference
Appendix
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1 | P a g e
Chapter 1
Introduction
Background and Significance of the Project
Nowadays, the numbers of people who use car in Chiang Rai are steady increase in
every year and this reason is the important to effect expand the spare part business.
According the trade of spare part market growth and increase sales of spare part, but it has a
few of spare part business in Chiang Rai. Therefore its not enough provide the quality of
spare part to serve customers satisfy and the most of people have more concern about
maintenance their car to can use in long time.
Our business is located in Mae Korn where is has more area and appropriate to
located the spare part business. Thus in this area is near the Chiang Rai bus station, it is the
centre of transportation and it suitable for customers include who live in around there and
makes them convenience and easy to go there. The general of spare part business in Chiang
Rai have higher growth rate and it affect to increase the spare part business. From this reason,
our customers can be many garages which can the same increase. There are only 3 to 4 the
main and big spare parts business in Chiang Rai. Moreover the numbers of customers use the
garages have increased because it can from accidents or they need to maintain their car. And
because of the economic factor that cannot support the customers need to sales and purchase
or change their new car. It makes the customers use more the garages and makes spare part
products is important and necessary for the customers.
Overall reasons, it makes us to look at the important factor and have more feasibility
to provide the spare part business. In addition the spare part business is not enough to servethe customers satisfaction including the people who use the individual car and each garage in
Chiang Rai or suburban. So we study the feasibility of spare part business that located in Mae
Korn for response the customers need with variety and high quality of our product include
service from professional who have many experiences to makes customers have more
satisfaction.
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2 | P a g e
Project objectives
1. To study the important and the feasibility of spare part business in Chiangrai
2. To study the feasibility of market and sale volume related with spare part business
3. To study the feasibility of financial about risk investment, operation, sales forecastingand return on investment
4. To study the feasibility of technical analysis consist of operation, production, and
organization
Benefits of Project
1. To understand the general environment of spare part competition to determine thefeasibility of spare part business
2. To understand the spare part market, customers need, marketing problems and can
forecast appropriate sales
3. To understand the risk of business investment for determine the efficiency financial
management
4. To understand operation, organization, and marketing cost
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3 | P a g e
Time Period
Activity Time Frame
Between November 2009 February 2010
Activity Time periods (Week)
1 2 3 4 5 6 7 8 9 10 11 12 13
1. Idea Generating
2. To consult with lecturer for
operating
3. Idea Conclusion
4. Planning
5. Study about operation details
6. Study project feasibility
6.1 Industry profile
6.2 Marketing
6.3 Technical
6.4 Financial
6.5 Economical and Environment
6.6 Risk management
7. Summary of project feasibility
Remark * Week 1 is November 2nd 2009- November 8th 2009
* Week 13 is January 27th 2010- February 2nd 2010
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4 | P a g e
Chapter 2
Industry Profile
Nature of Industry
The development of each country often to consider from economic growing rate is the
main point.(e.g Reported results of operations of the Department of Export Promotion,2009)
.Where the developed country is high economic growing rate before the economic crisis is
happen in Thailand. To develop the economic continually and rise effect by Thai because
Thailand economy is depend on the industrial more than the agricultural and the product of
industry change from production for importing substituted to produce for exporting. The
government aim about production for exporting by reach to the international market. If the
ability to distribute Thailand product into the world market; from the business process to the
customer is smooth, Thailand product will successful in the world market. It is an important
thing of exporting business, and the main factor that effect to economic growth
When the economy of country have to depend on the industrial that emphasize with
the production for exporting, and there is a production. It must have the products receiving by
using logistics system. According to the export and import statistic, there are increasing every
year. For this reason, the state always tries to develop the transportation system, for example
the new airport construction, Suvarnabhumi international airport, when this project is finish.
It will make the transportation in the country is better and faster moreover; the location is the
effect that support Thailand to develop the ability to be the distribution center in the
Indochina region such as Malaysia, Singapore, Myanmar, Cambodia, Laos, included China
southern.
Transportation system has landing transportation that has long road 170,000 km. high
ways 25,000 km. combination with railroad more than 4,000 km. connect between country
size and pass to neighbors hood country. Moreover air transportation have international
airport 7 places, domestic airport 25 places and water transportation there are international
port for five ports such as Bangkok port, Laem chabang port, Maptaphudt port, Songkha port
and Puket port but transportation system in Thailand is depend on truck which is the most
quantity and accept convenience and fast it is reason growing of automobile industrial. That
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5 | P a g e
is made for carriage more weight. Construction of road to be increase always that makes each
year can distribution to local for much tons
From information below that the most quantity transportation is landing so trucks is
important vehicles for distribute goods to local that make logistics business increase by
statistic about commercial increase, high sale volume. In distribution by truck is hard for
overweight carriage for breakeven and long time to distribute. Truck is not maintenance
because driver is not owner who is employee only that make owner must be maintenance
themselves, fixed and change spare part always for truck or car have long time and safety
although changing spare part at that time have to pay much more money.
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6 | P a g e
Situation of Industry
Thailand has problem with export the auto part industry. The auto part industry has
exporting decline stage at 43.9%(e.g. Souwalak, 1997) compare with the same period of last
year. The main factor effect continuously is the economic crisis and the dimension of many
factors such as world oil price fluctuation make the oil price high and effect to world
economic. From the reason to effect the car producer industry and car market has decrease of
sales volume. That effect to the individual car user influent to decrease customer buying
power and customer loyalty. From the continuous effect car producer industry and auto part
industry although , in the present of market situation it can build the opportunity for spare
part business growing because the customer favor to use the old car or no chance to buy a
new car. Thus, increase the spare part product for customer who would like to maintenance
their cars. Make the spare part product has high demand for sales. The customer doesnt
desire to buy new car because the difficult about the contract and high risk to has more debt.
The customer favor to use old car and second hand car because low price and more product to
offer from the statistical of export spare part product of Thailand researches by the federation
of Thailand industries found that has continuous to expanding. On May 2009, has the highest
expanding to 40.4 % show opposite with the export of auto part and mechanical aredecreasing.
However, in the auto part industrial is strong competing with competitors. It is
necessary to reduce cost and develop a quality of product to increase the customer acceptable
the product. The entrepreneurs necessary to build the business relationship with car center
and garage business. In the present, Car is the necessary vehicle used in human daily life for
convenience and comfortable to do the business and many activities such as transportation
and service to the customer. Therefore, a spare part is the importance equipment for car
maintenance and necessary to use in every vehicle. So spare part market is high profit and
grows continuously and very interesting to invest the business with large customer who use
car and need to maintenance car. From this reasons, he secondhand spare part business can
call Chiang Kong spare part which are almost from Japan and some from Europe. Nowadays
Chiang Kong spare part is very famous and popular in all groups of car users such both of
passenger cars and commercial cars.(e.g. The federal of business development in Roy,1993)
In the beginning, spare part business is imported the spare part unsystematic but develop in
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7 | P a g e
later. It has more high quality of products which import to the big resource at Pathumwan and
Lhuksi intersection. Ten years later, spare part business distribute around in Bangkok area
including individual shop and group shop However the big shop in Pathumwan which sale
spare part in expensive and make the most of customers change to buy in outskirt. Beside
this, its convenience to go but Chiang Kong at Wong Wian Odian is the source of domesticsecondhand spare part is not imported and it liquidation. When the persons think about
Chiang Kong spare part, Chiang Kong is imported spare part of Japans spare part. Name
Chiang Kong from Chiang Kong shrine which is the famous shrine before it has old car
selling.
From the surveying, numbers of Chiang Kong shop in Roy-ad are six shops
approximately. There are motor, gear, wheel, gear wheel etc. The big resource imported spare
part from Japan and sales of spare part market in Roy-ad are fifty to sixty million Baht peryear. The trend of sale has increase and higher of spare part shop. In year 2541 it has auto
part shop and Chiang Kong spare part only three shops but now has six shops 5 and from
customers need and increasing of necessary to use spare part depend on the number of truck
increase in every year.
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8 | P a g e
Product/ Service (in General)
General spare parts are the product that about car such as Engine, Fuel tanks,
Intake, Air system, Cvt continuous various transmission, Front suspension, Under rear,
Wheel and Brake system. This group product can offer to customer when they want, large
group of many people use these product. There are many parts.
Part 1: Engine
- Oil filter - Air filter
- Oil meter - Front seal
- Seal oil - Crank case
- Oil cap - Cylinder head gasket
- Trimming belt - Trimming belt idler (starter)
- Trimming belt idler (follower) - Oil color
- Water pump - Radiator fluid
- Radiator -Radiator tank
- Radiator cap - Left engine insulator
- Right engine insulator - Front engine insulator
- EGR value - Airmassmitor
- Intake gasket - Power steering pump
- Turbo - Inter cooler
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9 | P a g e
Part 2: Fuel tanks, Intake, Air system
- Benzie Oil Filter - Charcoal
- Charcoal valve - Manifold gasket set
- Catalytic Converter - Compressor
- Air Dryer - Condenser
Part 3: CVT continuous various transmission
- Automatic transmission
- Automatic transmission Fluid
- Automatic transmission Fitter
- Fluid gasket
- Gear Insulator
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10 | P a g e
Part 4: Front Suspension
- Bush thrust arm
- Thrust arm (front/ left)
- Thrust arm (rear/ right)
- Thrust arm (rear/ left)
- Bush control arm (inside)
- Bush control arm (outside)
- Control arm (front/ left-right)
- Bush control arm (rear/ left-right)
- Control arm (rear/left)
- Control arm (rear/right)
- Balljoint steering (C-shape/left)
- Balljoint steering (C-shape/right)
- Front wheel bearing
- Rubber buffer
- Axil shaft (in-left/right)
- Axil shaft (out-left/right)
- Spider joint bearing kit (out-left)
- Shock absorber (Front/left-right)
- Front stop buffet (front-left/right)
- Front shock absorber boot kit(left/right)
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11 | P a g e
Part 5: Wheel and Brake System
- Front Brake Pad Kit
- Front Disk Brake
- Rear Brake Pad Kit
- Rear Disk Brake
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12 | P a g e
Accessory Spare partsare the accessories for customer who want to modified
car, they use them for decorate car to modern and look suitable for they want.
Part 1: Electric System
- Left front light - Right front light
- Low trumpet - High Trumpet
- Front windshield wiper blade left - Tiger bullet dynamo
- Front windshield wiper bland right - Right rear light
- Front windshield wiper blade Motor - Glass Cleaner
- Belt thickness - Ring thickness
- Shove Thickness - Front light switch
- Exigent light - Light mudguards
- Left light buffer - Right light buffer
- Left rear light
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13 | P a g e
Large spare partsare the big spare part of a car such as Front wind shield, Front
Bumper, Back Bumper. They are important for all cars because this part is component of
style of car. If cars dont have this, they arent perfectly.
Part 1: Under rear
- Bush rear bar steel ring left
- Bush rear bar steel ring right
- Button rear wheel
- Chock up spring rear wheel left and right
- Stop buffer shock absorber rear left- right
- Shock absorber left- right
- Chock up spring
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14 | P a g e
Part 2: Body
- Front wind shield - Front Bumper
- Back Bumper - Front Hood
- Back Hood - Boiler
- Front Spoiler Bumper - Back Spoiler Bumper- Left Front Chromium Bumper - Right Front Chromium Bumper
- Back Chromium Bumper - Front Choke-up Hood
- Front Left Latch - Front Right Latch
- Back Left Latch - Back Right Latch
- Front left glass gutter - Front right glass gutter
- Back left glass gutter - Back right glass gutter
- Key remote - Key
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Vision
Mae Korn spare part is to be the largest leader provides all of spare part products and
service in the Chiang Rai.
Mission
Mae Korn spare part earn customers satisfaction and trustworthy with high quality
and variety of products anticipate their requirement and create the great value of product with
reasonable price and service with friendly greeting and smile. We emphasize is on the garage
market include individual car user. We expand market in Chiang Rai and expand the business
growth which related with customers order for provide opportunity profit. In addition, we
applying computing technology for inventory management and customers can order though
website. Beside this we believe that lasting business success is built upon ethical that had
customer above profit which we operate to centre of spare part product and service we do, we
act with honesty, fairness and integrity. Moreover we concern the corporate social
responsibility to the social activities and environment friendly. We recruit, develop, motivate,
reward and retain personal of ability to be the technician working condition, superior
leadership, and condensation on the basis of performance with high degree of employee
security.
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Company Strategy
Corporate Level
Market Development
Mae Korn spare part choose to establish and introducing the all of spare part products
into Mae Korn area where is the new market geographic area which we located the largest
spare part shop in Chiang Rai. We position on the general customers market for passenger
cars and commercial cars. In the future, we are planning to expand new market in the
neighborhood like Payao. We think market development can be good opportunity because if
we expand new market, we can get more customers and we can gain more profit and market
share especially in Mae Korn area because of there are no spare part business in this area.
Therefore, we choose the market development strategy apply to our business.
Business Level
Differentiate
Mae Korn spare part has target customers are the general customers, garages and
retail shop and the main target is main focus on the general customers where require spare
part product for service their car maintenance and modified the garages require spare part
products for sell to their customers. In addition, there are two main competitors available. For
our business is new entry in the spare market in Chiangrai we necessary to create differentiate
from competitors. We provide higher technology than Petch Yon spare part shop and higher
accessible for customers than Charean Yon spare part shop. Moreover there are many
competitors are provide low technology and accessible.
Mae Korn spare part provide the convenience for customers that we offer customers
comfortable such as parking lots, cleanness, and located the main road where can motivate
the customers easy accessible to our shop. In technology innovation, we apply the barcode
system for accuracy and convenience for fasten service.
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Functional Level
Marketing Management
Mae Korn spare part focus on standard and more variety of products include the high
quality all of spare part. Moreover we concern about warranty of products and we have
products guaranty to make customers trust in our spare part. In addition, we have a special
price and discount for customers who loyalty with our shop and make our customers satisfy
to come to our shop again. In the advertising we would like to provide the marketing strategy
such as public relation, bill broad etc. we do the marketing strategy to race our customers.
Human Resource Management
Mae Korn spare parts have a good procurement process to recruit our staff including
the recruiting the high technician skill of employees or spare part professor for provide the
clearly information and describe the right products uses. We emphasize in sales person
training for right information with well understand about products and our staff can describe
all of spare part to customers that they want to know the information appropriate use with
their objective.
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Chapter 3
Marketing
Market Feasibility Study
Market Analysis
General Environment Analysis
From the general studying in Chiang Rai of spare part business information base on
customer buying power of Chiang Rai population. From the information present of Chiang
Rai population has is males has income level no more than 30,000 baht per month. The most
of population more than 20 years old. (e.g. Akkadech,2007) The most of customer of spare part
business is the owner of garage and car user that has high buying power for the observation
of the many garages can provide their service for the customer. The owner of the garages
buys spare part products follow by customer order that can not specify the products.
Furthermore, form the observation has 90% of consumer who use car to convenience them
Political Analysis
In car market situation many country has good sigh to recover the car business make
the buyer more confident to buy a cars with high power effect to demand of car and car spare
part is increasingly.
For the government regulation of Thailand is very advantage for our business on the
car spare part tax reduces in FTA and AFTA regulation.
From the discussion of Thailand Economist 5 % of tax on automobiles and parts
traded among the six founding ASEAN countries -Thailand, Malaysia, Singapore, Brunei, the
Philippines and Indonesia that was abolished on January 1, in a move towards turning
ASEAN into a single market. The regulation of ASEAN agreement would help ASEAN
nations become more competitive against other Asian giants particularly China and India.
Despite the global recession last year, auto sales in China reached 13 million units and in
India 2.2 million units, while combined sales in ASEAN hit 1.8 million units. Since major
markets such as the US, Europe and Japan are saturated and stagnant, due to the financial
crisis, any growth in the auto industry would have to take place in the Asian region,the
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liberalization of the auto and parts trade will not only help ASEAN manufacturers, but also
draw investment into the region.
With the tariff barrier in ASEAN markets lifted, it would not be surprising to see a
particular product being manufactured in one country and exported to other countries within
the region, But it will also depend on the policy and risk management of each company. Such
as Honda assembly plants in several ASEAN countries and have been utilizing the Aico
(Asean Industrial Cooperation) scheme and AFTA to dramatically lower the cost for
purchasing parts. This has helped strengthen Honda manufacturing in each country and raised
the level of competitiveness.
According to Kasikorn Research Centre (KResearch), Thailand's exports of auto parts
could expand by 18-22 per cent this year to Bt150 billion-Bt155 billion after plunging by 23
per cent to Bt127 billion last year due to drop in demand from the global recession.OEM
(original) auto parts will be the main category benefiting from these changes, given their high
export value that is nine times higher than REM (spare) items," it stated in research published
earlier this month. From K research among the six founding ASEAN countries, Indonesia is
expected to be the most promising market for Thai parts exports, followed by Malaysia and
the Philippines.
Auto parts for small Japanese passenger cars and commercial vehicles, such as
electronic components, engines and drive-train components that are of high value, have been
embraced by these markets for their OEM quality. In addition, relocation of manufacturing
bases of foreign automakers into Thailand is likely to boost demand for locally-made REM
parts, especially for export-oriented production.
Toyota Motor Thailand, the country's largest producer and exporter of vehicles has
the scrapping of the import duty could help the ASEAN auto market increase by as much as
10 per cent. Thailand would benefit greatly from this, with more income for the government
from the increased excise, value-added and corporate taxes.The arrival of new models
produced under the Thai government's eco car project will also serve as a boost for Thai auto
exports to Asean.
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Nissan will be the first company to launch an eco car in March, while Honda is
expected to unveil its model at the end of this year or early next year.Other companies in the
project are Mitsubishi, Tata, Suzuki and Toyota.
According to the eco car guidelines, each manufacturer must produce at least 100,000 eco
cars a year by the fifth year of production, with 50,000 units exported. However, the AFTA
scheme also brings concerns, particularly for parts makers with high production costs and no
research and development facility. This means that pure Thai suppliers (1st, 2nd and 3rd
tiers) need to raise their competitiveness in order to survive,
Presently local parts makers have to bear higher costs than others due to raw material
import duties and eventually lose competitiveness, since imports from ASEAN are not
taxed. So, K Research also noted that local suppliers may be challenged by an influx of truck
and bus parts imported from Indonesia.
Nevertheless the Thai auto industry still has brighter potential than those of other
ASEAN nations, and cutting out the 5-per-cent import duty does not pose a big difference in
retail pricing of vehicles sold within the region. Thus, the import duty for AFTA has been
incrementally lowered over the years, and there is not much difference between 5 per cent
and no import duty. Automakers in Thailand, including Honda, have been planning and
running operations incorporating the AFTA scheme for years.
Asean is the largest export market for Honda, representing 78 per cent of the
company's auto exports last year Motorcycle market not affected. The ASEAN motorbike
market could expand as a result of AFTA, but not by as much as the auto market. The
motorcycle markets in many ASEAN countries, especially Thailand, are already saturated
and for the market to expand there needs to be new models to stimulate sales.
While AFTA is simply an import duty elimination scheme among AFTA members,
the next level of integration lies in the AFTA Economic Cooperation (AEC), which is
expected to completely transform ASEAN into one economic community by 2015. With
investment shifting from developed regions such as the US, Europe and Japan to Asia,
ASEANwould benefit from AEC, which would serve as an incentive to attract investors.
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Thai suppliers that are capable enough can also set up operations in other ASEAN
countries, while those that are weaker may need assistance from parent companies. "The next
challenge for automobile companies in this region (as well as around the world), is the
coming of the alternative energy era, and we must be prepared for this in order to be able to
draw in investment and make Thailand a window the ASEAN
Kingsley Wijayasinhao January 25, 2010 the nation
http://www.nationmultimedia.com/2010/01/25/business/business_30121040.php
Encouraged by the ASEAN Free Trade Agreement, several Malaysian auto-parts
producers have set up shop in Thailand, using the Kingdom as their manufacturing base.
Hemaraj Land and Development Plc's president and chief executive officer, David R
Nardone, said that his company had sold developed land to six auto-parts firms from
Malaysia: Hicom-Teck See Manufacturing, Changchaut Plastic Co Ltd, Technic Asia Co Ltd,
Ingress Autoventures Co Ltd, Metrode Co Ltd and Siam CM (Clarion) Co Ltd.
The company is negotiating with several more Malaysian auto-parts makers that have
expressed an interest in expanding their investment in Thailand.
"We believe that auto-parts firms from Malaysia are interested in expanding their investment
in Thailand under the concept of clusters that will provide parts to auto-assemblers in
Thailand," Nardone said. Hicom-Teck See's chairman, Tuan Haji Abbas Mehad, who hasinvested Bt300 million in a bumper-manufacturing facility on Hemaraj's industrial estate on
Thailand's Eastern Seaboard, said that Thailand's auto industry had a potential for growth as
the economy grew. It is Hicom's first such facility outside Malaysia, but if the market
warrants it, the company would like to expand its activities to make other parts
Somluck Srimalee The Nation
http://www.nationmultimedia.com/search/read.php?newsid=90536&keyword=AFTA
Thailand is set to benefit tremendously from the elimination of import duties on
automobiles and parts under the ASEAN Free Trade Area scheme, industry leaders
regulation. Thus, the regulation of AFTA and ASEAN make Thailand has benefit with auto
part industry and related industry such as spare part business that more benefit for our
business.
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Economy Analysis
Population of Chiang rai are 1,255,387 people of Gross Provincial Product (GPP) of
2549 totaled 50,093 million baht growth last year, up from 9.38 percent average per capita
income of 38,332 baht per year
Figure 3.1 Gross Provincial Product in Chaing rai
ProductionValue
( Million )Percentage
Agricultural 15,943 31
Retail and wholesale 9,396 19
Industry 3,264 7
Construction 1,910 4
Hotels / restaurants 1,362 3
Other 18,218 36
GPP50,093
GPI38,332
Figure 3.2 Gross Provincial Product in Chaing rai( Percentage)
31%
19%
6%4%
3%
37%
Gross Provincial Product of Chiang rai
Agriculture
Retai andWholesale
Industry
Construction
Hotel and
Restaurants
Other
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The economy is the main agricultural provinces (31.03%). secondary, including retail
and wholesale (18.76%), industry (3.98%), construction (3.81%) and hotels / restaurants
(2.72%), respectively, by the trade of the province depend on international trade. Partner
country of Chiang Rai is the People's Republic of China (Yunnan Province), followed by the
Union of Myanmar and Lao PDR. Major export products include agricultural products Lmaidrying consumer products. Fuel, construction materials, automobile tires, food and beverages.
And medicine, respectively including major import of agricultural products, fresh vegetables,
apples sweet trolley fry timber cover consumer goods vehicles, equipment machinery,
equipment and coal, respectively
Income population average 35,109 baht per person per year.Balance of deposits in
commercial banks at the end of the month, Chiang Rai Province in September 2550 grew
281,742 million baht, up from last year's 5.02 per cent majority of the deposits of the
government. The money to finance a balance is growing 198,434 million baht, up from last
year's 7.27 percentage demand of personal loans. Business and finance-related agricultural
seasonality loan to deposit ratio was 70.4 percent up from 68.9 percent last year.
Figure 3.3 Statistics number of spare part shop in Chaing rai
Statistics number of spare part shop in Chaing rai
Registered CommercialConcentrated
Spare part shopYear 2546 Year 2547 Year 2548
Registered commercial
concentrate (Registered)
1 11 9
Registered commercial
concentrate (Cancel)
31 4 2
Total 31 38 45
Source: Administration of Chiang rai
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Figure 3.4 Volume production cars registered nationwide that Export and import auto parts
Volume production cars registered nationwide that Export and import auto parts
Year Volume
production cars.
(Cars).
Vehicle
registration.
Around the
country (cars).
Spare Parts (million
baht).
Export Import
2542 327,233 6,554,302 24,054.9 27,545.9
2543 411,721 6,727,008 32,208.6 58,240.5
2544 459,418 7,093,327 38,202.8 70,646.4
2545 580,000 7,480,000 45,000 83,000.0
Source: Federation of Thai Industries Department of Land Transport and the Customs
Department.
From several factors favorable to the business. Combined with the year 2540 - 2543,
consumers used an old car and new car slow to change. Buy new car has gradually during
2544 - 2545 more respectively. While vendors have accelerated advertising promotional
campaign continued consecutive years. Has attracted the interest of consumers shopping
satisfaction levels with the price you want more. In exports is in relatively good standard.
Many countries are gradually phased order resulting plant products to meet consumers in
both domestic and international full. Also during the year 2543 through the measures required
to use plant parts within the country and represents percentage from 45 to 72 according to the
type of vehicle. Even after being canceled since such measures since 2543, but the factory
continues to use parts of the country at relatively high for the year 2545 new car assembly
plant has about 580,000 cars, up 26.2 percent from the previous year has resulted for used
auto parts increased by with. The replacement parts market. Based on vehicle registration
with the Department of Transportation throughout the country in 2544 there were 7.09
million vehicles, up from 10 the previous year to 1.6 times the vehicle is registered for the
year 2545 throughout the country about 7.5 million vehicles, up 5.5 percent from the previous
year by a. commercial vehicles and passenger cars 63 per cent 37 per cent use cars age 1 - 5
years, approximately 1.5 million units or 20 percent of vehicles aged from 6 years old up to 6
million vehicles a number of cars began conditions are relatively old age of 6 years of use
since it will have to expense maintenance and repair parts costs somewhat and depending on
the type and quality of parts used for would result in business growth by parts with.
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brining pays the budget of the government sector is down. The exporting decelerates down
and lead part reaches to expand price consumer index decelerates to follow fuel price that
fines continual down for the deposit and the credit still expand.
Thus in the part of the state commercial of the credit still has the investment of the
private sector which, bank should have strict more and more in credit alms of the investment.
Then effect to we should planning in the part of investment and arrangement make money in
the different format for reduction the problem in mobilizing asset that will be arrival.
Although, rate of credit still come the growth but when compare with the economy that
generally be attractive for to have an effect to the beginning to do the business format.
Social Analysis
Transportation is very important in people daily life. Transportation consists of many
vehicles such as car, rail, air etc. Car is very important thing for necessary and convenience
for people. Moreover, Chiang Rai is agriculture province most of people is agriculturist and
usually use car and agricultural vehicle for agricultural. For this reason, cause the spare part
product is important for their vehicle. However, the attitude of people who use individual car
or commercial cars always think the safety is come first. That causes people willing to pay
for safety such as car maintenance and modify etc. for their confidential drive. Most of
people like to check for car maintenance at the garage or car center service that certainly
growing effect of spare part business extremely.
Technology Analysis
The scientific and technology progression knowledge lead the change about process
of product popularly in the world. Process of product should have the increase efficiency and
reduce costs and including produce new product and service and also process about new
marketing. Information Technology progression can happen fast communication. The place is
basically carry appeared growing and in the present people want to convenience in
communication which car is important in their life. Many companies provide modern product
to customer for suitable with their lifestyle by comfortable product or service. New
technology can change old things to new things such as auto part or spare part business is
providing new technology for customer via concern main customers using.
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The research of economy factor to influent the customer behavior to buy a spare part product,
Akkadech Roperoon, 2550
Competitor Analysis (3C Analysis)
Competitor Analysis
Figure 3.5 Statistic of Spare part shop in Chiang rai
Statistic of Spare part shop in Chiang rai
31 December 2005
Registered commercial information Number of garages
2003 2004 2005
Registered spare part shop 1 11 9
Canceled Registered spare part shop - 4 4
Total 31 38 45
Source: Administration of Chiang Rai
Nowadays spare part business is continuously competition because the number of
passenger car using, secondhand cars, and car that use for agriculture have trend to increase.
There is effect to spare part business has more expand and has more necessary for every kind
of cars in addition there is high profit business. Spare part shop in Chiang Rai isnt enough
and cannot response for customers need because there is high start up and investment include
the location in the city and cause of limited area in Chiang Rai when compare with area
around Mae Korn, we have more opportunity to establish spare part shop because there have
trend to increase growth. Mae Korn spare part is located in Mae korn area where near the
Highway main road and we can target customers in Chiang Rai and neighborhood like Payaowhere this area less of spare part shop and there is the centre of transportation and near the
Chiang Rai bus station for convenience to transport. Because of spare part shop in Mae korn
area is not enough, so most of customers go to buy spare part in inner city.
Overall, spare part business which located in Mae Korn has lass of competitors when
we compare with situation analysis that higher competition. Almost the spare part
competition, there are emphasize in quality of products and reasonable price including more
variety of products. In the future, spare part market in Mae Korn area has expand and trend t
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increase because economic in Chiang Rai expand and effect to increasing of spare part
market growth. The lists of our competitors are
Charearn Yont
Charern yon is the main competitor of Mae Korn spare part shop. Charern yon
established for many years ago. In Charern Yon 2002 and they launch new branch that is
more comfortable and modern in 2009. Spare part is the product of their business. The spare
part products of Charern yon are almost product has very high quality such as pure spare
part that has high price. In another hand, Charern yon apply higher technology than Mae
Korn spare part shop such as customers ordering, purchasing system, customer service etc.
Strengths:
- There company apply higher technology that can make customers comfortable
- There company has the professional sales person to service their customers
- There products has high quality and concern on quality first
- There company support more sales activities such bill board, radio, etc.
- There company has customers loyalty
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Weaknesses:
- There company has very high price in the view of customers
- There company has very difficult to accessible in the view of the garages
- There company has high cost to expense when operating the business such the
marketing cost, financial cost, etc.
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Petch yont
Petch yont is the one of main competitors of Mae Korn spare part shop. Petch yon
located in Chiang rai country, and establish on 1982. Petch yon is the large and well known
spare part shop in Chiang Rai those sell all of spare part products. In addition, Petch yon
spare part shop set price in reasonable price which not too high and appropriate with the
quality of products. Petch yon has more variety of products that can makes customers
satisfaction and satisfies with customers requirement. Moreover Petch yon is easy to
accessible for customers because they are reliable and open for many years ago.
Strengths:
- There company has more variety of products
- There company is easy to accessible for customers
- There company set price of spare part is not too high
- There company has customers loyalty
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Weaknesses:
- There company has low technology to apply their shop
- There shop is no more area and narrow spare part shop
SWOT Analysis
To analyze the business from external and internal environment that effect to the
business operation and investment.
Strengths Weaknesses
1. The business has more variety of product
and service with the efficiency employee and
expertise technician.
2. The company allocated the shop near the
city to serve the customer that has high
demand on spare part business.
3. The product has quality and sales at
reasonable price concern on user safety.
4. The company applies support salesactivities such as advertising to increase
sales.
5. The business operates base on market
information, competing competitors,
customer demand and material.
1. The customer has customer loyalty with
others products.
2. High cost to investment and market
research for business implementation.
3. The spare pare business has direct and
indirect competitors.
Opportunities Threats1. In the present, people popular to fix their
car instead to buy new cars and popular to
modified their car that effect to spare part
business grow increasing.
2. The growing rate of car user in Chiang Rai
province for last 4 years.
1. Has many competitors from direct and
indirect such as the spare part shop allocated
at Muang Chiang Rai and the garage to sales
spare part with many car center services.
2. The most of peoplelike to use car center
service that include car maintenance
guarantee.
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3. The economic crisis effect to customer
buying power that effect to sales volume and
debt rate is very low to make the bank strict
more and more in credit arm of the
investment.That effect for source of capital
and investment.
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Customer Analysis
Figure 3.6 Number of new vehicles registered under motor act by type of vehicle: 2004-2008
Type of vehicle 2004 2005 2006 2007 2008
Sedan (Not more than 7passengers)
2,459 1,393 2,729 2,704 2,993
Microbus & passengerpick up
77 39 73 93 95
Van & pick up 4,198 2,815 4,791 4,439 4,220
Motor tricycle - - - - -
Interprovincial taxi(Sedan)
- - - - -
Urban taxi (Sedan) - - - - -
Fixed route taxi - - - - -
Motor tricycle taxi (TukTuk)
- - - - -
Hotel taxi (Sedan) - - - - -
Tour taxi (Sedan) - - - - -
Car for hire (Sedan) - - - - -
Motorcycle 30,718 17,916 35,066 27,396 28,895
Tractor - 34 29 296 957
Road roller - 5 4 4 -
Farm's vehicle - - - - -
Automobile's trailer - - - - -
Public motorcycles - - 1 3 8
Total 37,452 22,202 42,693 34,935 37,168
Source: Chiang Rai Provincial Transport Office
From above car in Chaing rai does not increase every year that according to Chiang
Rai Provincial Transport Office can give information about for five years ago people doesnt
bought cars, they use to change or modified their car that make spare part is necessary for
them. From above in year 2004 to 2005 people does not to buy and buying car increase in
year 2006 may be in this year good economy and new car down in year 2007 and increase in
year 2008 again bit not more that depend on economic.
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Figure 3.7 Number of vehicle registered under motor vehicle act by type of vehicle:2004-2008
Type of vehicle 2004 2005 2006 2007 2008
Sedan (Not more than 7passengers)
377,416 453,433 31,186 35,425 38,418
Microbus & passengerpick up
24,938 31,817 3,902 4,107 4,202
Van & pick up 3,435 4,932 78,860 82,913 91,335
Motortricycle 66,110 90,395 2 3 3
Interprovincial taxi(Sedan)
- 2 2 2 2
Urban taxi (Sedan) - - - - -
Fixed route taxi 4 - - - -
Motortricycle taxi (Tuk
Tuk)222 229 226 226 226
Hotel taxi (Sedan) 34 42 36 46 46
Tour taxi (Sedan) - - - - -
Car for hire (Sedan) 3 - - - -
Motorcycle 281,677 323,915 326,557 333,410 362,305
Tractor 805 1,034 943 1,160 2,117
Road roller 177 209 192 192 192
Farm's vehicle 5 851 845 910 910
Automobile's trailer 4 5 4 4 4
Public motorcycles - - - 639 647
Total 754,830 906,864 442,755 459,037 500,407
Source: Chiang Rai Provincial Transport Office
From above in year 2006 registered under motor vehicle are lower that people used old car
more than new car although in 2007 and 2008 year are increase registered but they increase not
more.
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Figure 3.8 Number of new vehicles registered under land transport by of vehicle: 2004-2008
Type of vehicle 2005 2006 2007 2008
Bus 1,128 46 53 54
Fixed route bus 721 10 6 16
Non-fixed route bus 365 30 38 29
Private bus 42 6 9 9
Truck 1,419 2,247 2,255 306
Non-fixed route truck 1,321 1,750 1,939 170
Pick-up truck 14 141 130 60
Dangerous goods vehicle - - - -
Special purpose vehicle 1 7 3 -
10 wheeled - - - -
6 wheeled 935 1,027 1,181 -
4 wheeled 362 432 453 -
Truck tractor 2 25 1 26
Trailer 6 89 121 39
Semi-trailer 1 29 50 45
Private truck 98 497 316 132
Pick-up truck 89 453 292 98
Van 6 36 15 5
Liquid bulk vehicle 2 4 7 2
Dangerous goods vehicle 1 4 2 1
Special purpose vehicle - - - 9
Long-loading semi-trailer - - - -
10 wheeled - - - -
Type of vehicle 2005 2006 2007 2008
6 wheeled - - - -
4 wheeled - - - -Truck trator - - - 2
Trailer - - - 9
Sami trailer - - - 6
Other - - - -
Small rural bus 355 3 11 4
Non-Motorized Vehicle Act
B.E.2478- - - -
Total 2,902 2,296 2,319 360
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36 | P a g e
Figure 3.9 Number of vehicle registered under land transport act by type of vehicle: 2004-2008
Types of vehicle 2004 2005 2006 2007 2008
Bus 1,274 1,233 1,331 1,341 1,396
Fixed route bus 885 804 874 868 884
Non-fixed route bus 337 376 396 399 429Private bus 52 53 61 74 83
Truck 7,565 7,565 8,359 8,843 16,088
Non-fixed route truck 1,165 1,333 1,547 1,817 2,760
Pick-up truck - 948 1,050 - 60
Dangerous goods vehicle - 3 3 - 3
Special purpose vehicle - 40 45 - 45
10 wheeled 725 - - - 725
6 wheeled 60 - - 1,181 1,181
4 wheeled 97 - - 453 453Truck tractor 43 60 76 1 27
Trailer 170 222 304 121 160
Semi-trailer 41 60 68 50 95
Other 29 - 1 11 11
Private truck 6,039 5,890 6,455 6,675 12,973
Pick-up truck - 4,921 5,370 - 5,468
Van - 205 235 - 240
Liquid bulk vehicle - 114 130 - 132
Dangerous goods vehicle - 67 61 - 62Special purpose vehicle - 361 378 - 387
Long-loading semi-trailer - 4 4 - -
10 wheeled 691 - - - -
6 wheeled 403 - - 1,185 1,185
4 wheeled 4,178 - - 5,467 5,467
Truck trator 56 55 66 - 2
Trailer 83 111 142 7 16
Sami trailer 61 52 69 8 14
Other 567 - - 8 -Small rural bus 361 342 357 351 355
Non-Motorized Vehicle Act
B.E.2478 - - - - -
TOTAL 8,839 8,798 9,690 10,184 17,484
Source: Chiang Rai Provincial Transport Office
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Figure 3.10 Statistical road traffic accidents casualties and property damaged
YearNumber of
Number of casualties
Property damaged
reported accidents Killed Injured
2003 1,205 281 1,331 34,710,100
2004 1,453 282 1,505 20,221,300
2005 850 196 1,138 22,117,300
2006 614 190 846 21,400,300
2007 1,225 255 909 20,928,000
Source: Chiang Rai Provincial Transport Office
From above is number of statistical road traffic accidents casualties and property
damaged that reported from Chiang Rai Provincial Transport Office that help we know about
property damaged of car in year 2007 that assume 1225 who accidental then bought spare
from Mae korn Alaiyont 1,225 x 7% = 85.75 car for purchase spare part.
Customer marketing information
Product: According to the research sample of people follow from most importance to
lease importance is quality of product (e.g Akkadech, 2007) varieties of product, the spare part
shop not sell old product to the customer and the last is the spare part shop can serve the
customer want the product is the main reason to influent customer buy the product. Spare
parts are the parts of automotive that were assembled in each system for running. There are 4
kinds of spare parts:
1. Pure spare parts Pure spare part were produced by car manufacturers, or the
suppliers that receive the order from the car manufacturers for using in assembly
the cars that can make sure in the quality, but the price is often high. These kind of
spare parts sell in the cars service center and the agents, or the spare parts shops.
2. Secondhand spare parts The secondhand spare parts were the pure spare parts,
but they were took off for reselling because these cars cannot use anyway, or the
owner of cars want to change the engine system. The old spare parts that still good
will take off and resell. These kind of spare parts were sold in the secondhand
spare parts shops (Zeangkong), and the price depends on the quality.
3. Equivalent spare parts This kind of spare parts were produced by the spare
parts suppliers for direct selling by identify the brand of cars in them. Equivalent
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38 | P a g e
spare parts have a several quality both high quality and low quality for provide the
customer want that has few of buying power. These kind of spare parts were sold
in the general spare parts shop.
4. Faked spare parts - The faked spare parts were produced for cloning the pure
spare parts both the dimension and packages by the others spare parts suppliers.The price of these kinds of spare parts is lower than the pure spare parts, but
higher than the equivalent spare part. The quality of these kind of spare parts also
lower than the pure spare parts, but they are similar or lower than the equivalent
spare parts.
Price: According to the research sample of people follow from most importance to
lease importance is the reasonable price with quality of product, The discount price for
permanent customer, Product has low price when compare with competitors price and the
customer can negotiated the price is the influent factor effect customer buy the product.
Distribution channel: According to the research sample of people follow from most
importance to lease importance is the shop has technician to advice the customer fluently,
The parking is available for customer cars, The convenience to customer buy the product,
The delivery service the product at customer home and the shop style and decoration make
customer comfortable is the influent factor effect customer buy the product.
Support sales: According to the research sample of people follow from most
importance to lease importance is the guarantee of the product, The shop offer more product
information such as brand or price to show the customer directly, The shop has discount
promotion and give the customer use their credit to buy the product is the influent factor
effect customer buy the product.
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General customers
There are many peopl
per house so there are buying
spare part will growth for ser
their but car which more than
present general customer fam
good quality spare part in suit
part more than real price.
Figure 3.11 Number of demo
Year Male
2005 606,68
2006 606,39
2007 605,96
2008 606,77
Source: http://www.dopa.go.t
Assume that each families ha
2008 there are 446,346 famili
So assume 446
Figure 3.12 Market segmenta
38%
in Chiang rai, according to number of hous
car increase in every year that number of car
e to customer although new car dont want t
five year need to change or modified their c
us to buy spare part by themselves because
able price for their car and avoid garage char
raphy in Chiang rai for 2005-2008
Female Total N
618,369 1,225,058
619,323 1,225,713
619,050 1,225,013
620,542 1,227,317
/xstat/popyear.html
one car we have segmentation in market for
s
,346 X 7% = 31,244 people in market
tion of Mae Korn Aliayont
10% 7%
45%
Market segmentation
Other Spare par
shopMaekorn Alaiyo
Chalernyont
39 | P a g e
there are one car
increase that our
buy spare part for
r certainly. In the
hey want to get
ge price for spare
mber of house
421,814
431,763
439,072
446,346
10 % for year
nt
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Figure 3.13 Customer separa
Figure 3.14 Customer separa
Gender
Male
Female
Total
According to research
400 people, male 240 people
about car and spare part more
more than female.
40%
e by gender
e by gender
Number Pe
240
160
400
about customer behavior separate by gender
re more than female because in fact male ha
than female so male is target group in buyin
60%
Gender
Male
Female
40 | P a g e
centage
60
40
100
in Chiang rai from
ve knowledge
our spare part
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Figure 3.15 Number of custo
Figure 3.16 Number of custo
Age
Less than 20 years
20-30 years
31-40 years
41-50 years
51-60 years
More than 60 years
Total
According to research
400 people general customer i
work and use car always in th
they use more car.
13%
1
N
er separate by age
er separate by age
Number(People) Pe
8
168
116
52
50
6
400
about customer behavior separate by gender
n 20-30 year will buy spare part mostly beca
ir life routine and secondary is 31-40 years
2%
42%
9%
.50%
.50%
mber of customer (Age)
Less than 20
20-30 year
31-40 year
41-50 year
51-60 year
More than
41 | P a g e
centage
2
42
29
13
12.5
1.5
100
in Chiang rai from
use this aging are
hat same reason
year
0 years
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Figure 3.17 Number of custo
Figure 3.18 Show number of
Status
Single
Married
Divorce
Total
According to research
400 people general customer i
make us known about status i
necessary for all car when ow
48.
Nu
er separate by status
customer separate by status
Number(People) Pe
190
194
16
400
about customer behavior separate by gender
n Single group and Married group are same
not important in selecting spare part becaus
ner want change or modifies.
47.5
4
ber of customer (status)
42 | P a g e
centage
47.5
48.5
4
100
in Chiang rai from
uantities that
spare part is
Single
Married
Divorce
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Figure 3.19 Number of custo
Figure 3.20 Show number of
Education Level
Primary education
High School
Diploma
Bachelor DegreeHigher than Bachelor Deg
Total
According to research
400 people general customer i
want to get more quality spar
because they have power to b
they go to select when compa
44.
25.5
Num
er separate by education
customer separate by education
Number(People) P
10
58
52
178ee 102
400
about customer behavior separate by gender
n Bachelor Degree are mostly to buying spa
part for their car and high school and diplo
y spare part for their car that suitable and su
e with garage buying.
2.5
14.5
13
er of customer (Education)
Primary
High sch
Diploma
Bachelo
Higher t
Degree
43 | P a g e
rcentage
2.5
14.5
13
44.525.5
100
in Chiang rai from
e part because they
a are same that
itable price when
education
ool
r degree
han Bachelor
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Figure 3.21 Number of custo
Figure 3.22 Show number of
Occupation
Student
Governmental
Individual employee
Private business
Garage
Agriculture/Hirer
HousewifeTotal
From the research of
according to sample of popul
private business will buying
they go they have change s
someone frequency so they w
Many year ago a spare part p
The garages are the main c
customer but in the present t
the customer and the market
like to buy the spare part by t
of product, price, technician
worseness from their custome
15.5
15.50%
1.50%
Nu
er separate by occupation
customer separate by occupation
Number(People) P
26
172
62
90
6
38
6400
the factor to buy a spare part product in
tion who is males about 400 people in Gove
pare part by themselves because they go to
are part for safety and business have to c
ill repair always and want to select spare wh
roduct is the product which necessary for th
stomer of spare part market although the
e customer behavior has more factors to in
inuously. Moreover, the customer who is th
emselves because they dont thrust of the g
nd service dissatisfaction that make the gar
r and make the general is main target of spa
6.50%
43%
0%
.50%
1.50%
ber of customer separate
(Occupation)
Student
Govern
Individu
Private b
Garage
Agricult
Housewi
44 | P a g e
ercentage
6.5
43
15.5
15.5
1.5
9.5
1.5100
Chiang rai which
nmental group and
anywhere so when
ommunicated with
ich suitable for car.
e garages business.
arage is the main
fluent and effect to
garages customer
rages about quality
ges has less thrust
e part market now.
ental
l employee
usiness
re/Hirer
fe
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Garages
Garages are necessary
has high customer purchasi
business are growing and rapi
Figure 3.23 Show quantities
Figure 3.24 Quantities and pe
Types
One owner
Limited Company
Limited Partnership
Total
From above show th
secondly is one owner is 34.4
46%
20%
to buy spare part product to apply with thei
ng. They buy product frequency. Garage
dly with high sales volume. So, they are mai
nd percentage of garages
rcentage of garages
Quantities Percentag
31 34.4
41 45.6
18 20.0
90 100
e most entrepreneurs is Limited Compan
percent and the last one is Limited Partnersh
34%
Percentage of garages
One owner
Limited Com
Limited Part
45 | P a g e
r business and they
can support our
target customer.
e
y is 45.6 percent,
ip is 20 percent.
any
ership
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Figure 3.25 Show quantities
Figure 3.26 Quantities and pe
Time of operation
Less than 5 years
5-10 years
11-20 years
More than 20 years
Total
From above show al
than 20 years is 35.6 % and
20 years is 25.6% and the ent
36%
Percent
nd percentage of garages separate by time o
rcentage of garages separate by time of oper
Quantities Pe
4
31
23
32
90
ost of the entrepreneurs that has the busin
-10 years of the business operation is 34.4
epreneurs that has business operation less th
4%
34%
26%
ge of garages separate by time
operation
Less than 5 y
5-10 years
11-20 years
More than 2
46 | P a g e
operation
tion
rcentage
4.4
34.4
25.6
35.6
100
ss operation more
and operation 11-
n 5 years is 4.4 %
f
ears
years
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Figure 3.28 Percentage of machine used by entrepreneurs
Figure 3.29 Show the amount and percentage of machine used by entrepreneurs
Horse power of machine Amount Percentage
Less than or equal 50 horse
power
34 37.8
51-100 horse power 14 15.6
101-200 horse power 20 22.2
More than 200 horse power 22 24.4
Total 90 100
From aboveshow theEntrepreneurs e apply the machine is analyze by horse power is
use less than or equal 50 horse power machine is 34 and calculate in percentage is 37.8%, the
entrepreneur use 51-100 horse power machine is 14 and calculate in percentage is 15.6%, and
the entrepreneur use 101-200 horse power machine is 20 that calculated in percentage is 22.2
% and the last the entrepreneur used more
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