section 1 seat 4:paper box limited partnership
TRANSCRIPT
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Project Feasibility Study and Evaluation
Group Member
5331203030 Nattapong Somdee
5331203033 Tanthita Sukhopala
5331203064 Paranee Sakthanachanon
5331203072 Phornchai Teerasukprasarn
5331203099 Ratchanan Chawsathapornpong
5331203113 Vilialuk Radchakid
5331203123 Siwakorn Kerdsiri
5331203149 Ittipon Niraphai
Business Administration
School of Management
Mae Fah Luang University
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Executive Summary
Product Box Limited Partnership is the limited partnership for sale the product ofpaper box especially post paper box. The main customer of our limited partnership is fromthe internet; sale in the internet, use e-commerce system and have website of the limited
partnership for the customer can contact and buy the product. The competitor of our limitedpartnership is our company that also selling in the internet but sales promotion of us is canincrease the market shared because we use the standard price but have many promotion andafter sale service more than other company.
The objective of business plan is to show the information about our product,investment cost, and value of profit will be receive from investment; calculate the financial toshow that this limited partnership can make the profit.
About the strategy that our limited partnership used in the business for achieve thegoal is from standard marketing. Price of product is high cost so our company cannotdecrease price more than other company but we used standard price; is from average price ofthe product in the market. In the part of place our company sale in the internet by usedelectronic commerce to facilitate for the customer they come from another province can orderthe product. Promotion of our company is 1.Free delivery in area 50 kilometer from thecompany and delivery to another province by used the way that customer determine 2.Thecelebration card will be send to the all customer in any festival and free T-shirt to allcustomer in New Year festival 3.Send brochure to the customer that order our product 4.havegames to motivate the customer be the royalty.
Our limited partnership is make the profit 10% in each years to become the large
market of post paper box in online shop. The sales volume of the company can increase bysale strategy, good image of advertising and good after sale service especially in any festivalsuch as New Year, mothers day and fathers day will be increase 5% more than another
month from this sales volume its can make the profit in year 8 or more than.
From this all summary show the conclusion of our company about the standardinformation, the way to sale, promotion, and the profit that we calculate from the salesvolume after increase the investment in sales promotion.
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Content
PART I INTRODUCTION
Chapter 1 : Introduction
-Background and Significance of the Project 1
-Project Objective(s) 3
- Benefits of Project 3
-Activities/Time Frame 4
Chapter 2: Industry Profile (>10 Pages)
-Nature of Industry 5
-Situation of Industry 7
-Product/Service (in General) 17
PART II MARKETING
Chapter 3: Market Feasibility Study
- Market Analysis
-General Environment Analysis
Political, Economy, Social and Environment, and Technology 39
- Competition Analysis (3C Analysis)
*Competitor Analysis 43
*Customer Analysis 45
*Competitive Analysis 47
-STP Analysis 48
-Marketing Mix Strategy 50
-Sales Forecast/Profit Estimation 63
-Marketing Expenses (Sales Incentive) 69
-Conclusion
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PART III TECHNICAL ANALYSIS
Chapter 4: Investment Cost
-Cost of Investment
-Pre-Operating Cost 70
-Investment Cost 71
Land
Buildings
Equipments
Tools
Etc-Location 75
-Facility Layout 76
-Depreciation 78
Chapter 5: Production and Operations Analysis
-Product Characteristics (in Detail) 83
-Specification, Feathers, Dimension, Life Time, etc. 90
- Services Process 97
-Operating Cost 98
Raw material Cost
Direct Labor Cost-Logistics Management 100
-Facility Management 106
Chapter 6: Administration analysis
- Management Analysis
Facility Cost (Electricity, Telephone, Fax, etc.) 107 Salary 111
-Conclusion 115
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PART IV FINANCIAL AND RISK ANALYSIS
Chapter 7: Financial Analysis
- Financial Assumption for Business.
Profit/ Loss Statement 116
Cash Flow 118
Balance Sheet 120
Chapter 8: Risk Management
Potential Risk 123
Sale Risk 124
Cost of Goods Sold Risk 143
Administrative cost Risk 154
Expense Risk 165
Chapter9: Summary
- Make a conclusion of Chapter 1- 8 176
Appendix 178
Reference 190
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Chapter 1:Introduction
1.1 BACKGROUND AND SINIFICANCE OF THE PROJECT
Nowadays, paper packaging business tends to grow up, due to global warming
campaign expand around the world. Paper packaging is made from plants that it can
biodegradable and recycle, so it is not adversely affect to the environment that makes it
popular more than other packaging. In Thailand, market share of paper packaging is about 40
percent of consumption (From: Department of Foreign Trade, Ministry of Commerce). Paper
packaging is the largest market share more than other packaging that includes plastic
packaging, metal packaging and glass packaging. There are three types that are primary
packaging, secondary packaging and tertiary packaging (For transportation). Corrugated box
is in the type of tertiary packaging because it has strength, low price, various style and light
weight. Often seen this packaging at warehouse, retail, wholesaler, transportation business
and etc. Corrugated box has many sizes that depend on product. In Thailand, corrugated boxbusiness has many companies that have major companies such as Thai Union Paper Industry,
Thai Pacific Containers, Siam carton Packaging and etc. And main customer is the group of
manufacturing companies and transportation business.
In the future, International trade and Domestic trade will grow, due to ASEAN (The
Association of South East Asian Nations) Economic Community orAEC will occur in 2015
that is free trade, free investment, free transportation and freedom of labor, there are 13
counties that are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Philippines, Singapore, Vietnam and Thailand. So, competition of trading, investment and
transportation will grow up that effect the many business in Thailand. This factor effects tothe storage for transportation that will make paper packaging business tend to grow up,
market share of this business will increase, and the consumption of corrugated box will
increase. Main customers are manufacturing companies, transportation business and export-
import business that customer want strength packaging, low cost, low weight, and various
because they want more profit and . The best choice of they are corrugated box.
This business is interesting in the term of global warming that you can save the world by use
raw material from plant (it can biodegradable and recycle), largest market share of packaging
business that your company can make more profit because more customers use corrugated
box, and ASEAN (The Association of South East Asian Nations) Economic Community or
AEC that make competition of trading, investment and transportation will grow up, it is good
for this business to make more profit, increase market share of paper packaging business.
From these factors can make the company to major company about corrugated box in
Thailand.
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In Thailand, e-commerce tend to do business on the internet by circulation increase
every years that include Business to Business (B2B), Business to Customer (B2C) and
Business to Government (B2G). The value of e-commerce, Business to Business has 79,726
million bath in 2550 to 217,458 million bath in 2553, Business to Customer has 47,501
million bath in 2550 to 67,783 million bath in 2553, and Business to Government has
177,932 million bath in 2550 to 344,370 million bath in 2553 (National Statistical Office,
2553). It shows the increase rate of e-commerce that has high rate, it make amount of new
enterprises increase every years. In Business to Customer, there are a lot of online shops to
sell their products on internet that they will deliver the product by transportation companies
or themselves, normally the online shops choose to use transportation companies that the big
transportation companies in Thailand is Thailand Post, this company use the paper boxes to
packing the product for transportation. So, paper boxes business will increase from the
amount of online shops are growing up.
Communication:
By Caror Truck:
You can journey by own car and bus that use Sukhumvit Road from Bankkok to
Amphur- meuang, Bangbo, Prapadang and bang-sao-tong and use Suksawat Road for
Amphur-Pra Sa-Mut Jay-Dee.
By Ship:
It has two ways from Bangkok to Amphur-Prapadang are harbor at Khlong Toei and
saa-tu bpra-dit. In Samut Prakan province can across the Chao Phraya river by 2 choice.
1. Amphur meuang Amphur Pra Sa-Mut Jay-Dee (For individuals), and 2. Inside
Amphur Prapadang ( Individuals and Vehicles).
By Air:
Samut Prakan Province has Suvarnabhumi Airport which is International anddomestic airport.
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1.2 Project Feasibility /Objective
The report of Product Box Company (PBC) is prepare for show the information about
the box, the target, who can receive the benefit from box or from company, form of
marketing, the way to promote, operation detail, how the company operate and calculate
financial to make sure that the company can make the profit,. All of report is for make sure
that the product and operation system in the company will be success the goal.
Project objective :
1. To make clear information for do the business in further.
2. To answer the question and solve the problem that can be a mistake of operation.
3. To run everything in operation of business smooth.
The Effects that expect from this project :
1. Can get the conclusion and information in completely and clearly.
2. Will discover the problem form research and get the solution to solve problem
3. Operation everything follows the plan by not defects.
Benefits of Project :
1. Understand the current market trend of the paper box industries in the currency.
2. Understand the customer behavior of paper box business.
2. Understand the operation and technical process of paper box business.
3. Use the strategies that appropriate with the business situation.
4. Know the risk and possibility of the paper box business.
5. Be able to calculate the financial of business, so we can find the way to get maximize
profits. Then we know the feasibility of paper box business.
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1.3 Activities/Time Frame
Activities :
Group brainstorm for the topic.
Do the project research and project planning : To study general information of thePaper Box company.
Marketing research : To study of the marketing mix , Analysis the environment
(External and internal), research the customers demand, do the sale forecast/ profit
estimation and the current situation about Paper Box company.
Research the technical process : To analysis the cost of investment, operation and
operation of the product from Paper Box Company.
Research financial of the business feasibility : To analysis the financial of
operations, profit and loss statement, balance sheet and cash flow of the Paper Box
Company. Then evaluation the financial of return on investment.Analysis the risk of box company : Find the problem that have risk from
management or operations, then analysis of that risk.
To evaluation the project : Evaluate the business feasibility of the Paper Box
company.
Do the summary project feasibility of the Box Company.
Time Frame of the study
Activities Month PeriodNovember December January February
W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
1.Group brainstormfor the topic.
2weeks
2. Do the projectresearch/projectplanning.
2weeks
3. Marketingresearch.
3weeks
4.Research thetechnical process.
2weeks
5. Researchfinancial of thebusiness feasibility.
3weeks
6. Analysis the riskof box company.
2weeks
7. To evaluation theproject.
1week
8. Do the summaryproject feasibility ofbox company.
2weeks
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Chapter 2:Industry Profiles
2.1 Nature of Industry
History of paper industry
According to ancient writings paper was first made by a eunuch in the court of the
Chinese emperor Ho Ti. He is thought to have used the bark from a mulberry tree. The
earliest known paper that still exists was made from rags in about A.D. 150. China was the
only area where paper was made until the technique surfaced in Japan and then in Central
Asia. The Egyptians did not make paper until A.D. 900. Around 1150 a papermaking mill
was built in Spain and the art of papermaking spread throughout Europe. The English built
their first mill in 1495; it was 200 years after this that paper was first manufactured in
America.
Paper industry with trading business
Trading business or Merchandising firm refers to company that trade on both
wholesaler and retailer but is not the manufacturer. And the paper industry that many
company interest is products box. The product box has many aspect of business that effect in
shipping and convenience. The trading business with products box involving in the product
from the manufacturer sends to customers with care in product and guarantee for safety of
product and create long term relationship with customers. According to Jacobs Trading
Company has developed long-term, large-volume relationships with national and
international shipping channels. We can offer very competitive, discounted shipping rates
through our contracted carriers
Established of trading business in Thailand
Trading business in Thailand established with over 30 years. In those days many
company that trading business style use in theory of manufacturer to reduce cost of product
by the manufacturer. Refer to SCG trading company, they strive not only to produce high-
quality products to meet the demands of our customers, but also to offer complete handling of
delivery services that complement our products with over 30 years experience in international
trading, they focus on innovative and creating value added for their business partners, they
work to understand your business needs and customize products and services to meet your
business requirement.
Source:http://www.encyclopedia.com/doc/1G2-3406400700.html
http://www.jacobstrading.com/policies.html
http://www.scg-trading.com
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Trading business in Nowadays
Nowadays the number of customer that concern in paper industry is increased from a
quarter ago. And then effect in demand of customer who wants to use service is not enough.
A number of new company in industrial estates also increasing and the new companies are
need in packaging and transportation, they found in quality of fast shipping and the company
who care in their product.
Source:https://reader009.{domain}/reader009/html5/0411/5acd5b734258c/5acd5b7c30c4d.jpg
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2.2 Situation of Industry
The overall situation of the global packaging industry
Around the world have consumption of 253.5 million tones of packaging a total
consideration of U.S. $ 402.5 billion in 2007, and are expected to increase to 284.9 million
tons, or the 470.8 billion dollars in 2012. The Asia Pacific region is growing up with 32.4
percent in the region, America and then Europe with 34.4 percent and 33.2 percent.
Paper packaging is packaging that is most commonly used by consumers in 2007,
with the packaging around the world to 130.1 million tons, accounted for 51.3 percent of total
market value. The plastic containers are consumed. It ranked third behind metal containers,
with 14.6 percent of the total market value.
Europe Asia-Pacific
America
Paper
Plastic
Other
Glass
Metal
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Also if considering the global market share in the packaging industry in overall then
the large manufacturer have a market share of up to 6 percent of the total production.
Manufacturer is producers in North America and Australia, but has Expands investment in all
over the world.
The packaging manufacturer have distribution characteristics of the production is
quite high, because the demand for packaging variety of purposes. The high demand is the
necessarily produce enough to meet the requirements of the market that make a lot of small
producers in the market. In addition, the packaging manufacturer often situated nears the
consumption of packaging. The demands for each product are different packaging and make
the need to be produced to meet market needs.
Other
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Packaging industry overview in Thailand
Thailand's packaging industry has many similarities to other countries are the focus
on improve the quality along with the functional design of the product and make the
difference. Each year Thailand's packaging industry able to produce packaging total value
about 25,000 million dollars. Most of all focus on production to respond demand in the
country. The total package is sent out each year do not much. The growth of the packaging
industry usually bound to the growth of exports and international trade, because wants to the
packaging of goods for sale or transportation.
Packaging Industry in Thailand can be classified to 4 categories
Paper packaging industry. Manufacturing accounted for 40 percent. It can be
subdivided is corrugated box, cardboard box, multi-layer paper bag, single layer paper bag.
Raw material used different based on the type of product, such as corrugated boxes, single
layer paper bag, multi-layer paper bag made of Kraft paper. The cardboard box made of sheet
of paper. Paper packaging is widely used and high growth; because it can be recycled easily.There are a wide variety of sizes to meet the requirements of the user, which is divided into 2
types, cardboard boxes and paper bags. The boxes in the transportation and consumption.
Boxes and corrugated cardboard boxes. Corrugated cardboard is used to protect product
damage, while the cardboard popular for packing. The paper is divided in several layers of
paper bags. And the single paper bag in during the years ago. The global campaign increase
environmental protection and working Paper for the decay. It can be recycled. The relatively
high value is growth commonly used to produce paper. Paper packaging include Kraft paper
and paperboard depends on the appropriateness of its use. Although the paper can be more
widely used. The paper can be resumed, but the downside is that it has a paper packaging can
cut, fold and bend easily.
Metal
Plastic
Pa er
Glass
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Competition in the packaging industry, Thailand
Packaging play a role important industry consumer goods, and food industries and
beverages, as well as the growth of the national economy and international trade, because ofthe increase in the volume of international trade refers to the packaging requirements for
packaging to distribution, also suitable for transport and packaging industry have ties with the
industry, and industry support is great, such as pulp and paper industry, printing industry
important to support the paper packaging industry. Plastic and polymer industry molding
industry and chemical industry. The major industries that support the plastic packaging
industry and steel industry has importance support in the metal packaging industry. Which if
considered the industry is to be found in Thailand is combination of the industrial estate.
There are many organizations and support agencies.
The domestic factors of production
Factor in the Packaging Industry for Thailand. The volume is quite adequate,
especially in the packaging industry paper and packaging industry. Although industrial
packaging glass and metal packaging industry will have to rely on imports of raw materials
from some foreign countries do not have sufficient capability or low-quality raw materials.
If considering in technology and labor then find that. Thailand has adequate
technology for the production of all kinds of packaging. Although there are enough workershigher wages compared to neighboring countries.
Highlights of the packaging industry today are focused on modern design the image
for the product, and a variety of useful functions. They often have to hire a designer to bring
in own packaging. The key feature is the ability of the packaging industry it is the model
focuses on developing innovative products that are designed and built to increase.
The domestic demand
Packaging production in Thailand to focus on domestic consumption as the mainland
if considered. Domestic market size compared to the production capacity of the packagingindustry and the packaging market in Thailand is relatively large size. There are a variety of
products. Despite not equal to variety of international markets.
Needs of the domestic market have similar market in the region in particular, the basic
package, such as paper boxes, paper cartons, cans or glass bottles. This is an opportunity for
local manufacturers to produce packaging low cost per unit.
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Supporting and related industry
Supporting and related the industry in the packaging industry in Thailand. Available
has a good level, such as mold and printing industry, Pulp and paper industry, Plastics
industry. The materials are usually a combination of the action in the industry and settlement.
There is a settlement was established industrial packaging to facilitate the production of
packaging, and to promote Thailand's packaging industry.
In addition, the packaging manufacturer in Thailand is also gathered in the consortium
group, such as the packaging of Thailand, Metal Packaging Association. Corrugated and
Carton Manufacturers' Association of Thailand. Which contributes was greatly to strengthen
the competitiveness in the exchange of information, and strengthen the cooperation in various
fields.
Strategy, structure and competitive conditions
Manufacturer in the packaging industry in Thailand has a large number of mostly
small and medium manufacturers, but competitive situation for the packaging industry in
Thailand not very high, because most manufacturers produce the same customers or have
their own market, because of packaging needs often a specific product.
The competitive conditions that affect the productivity boost exports of packaging .It
is not that there are relatively little. Since the production is exported mainly because to
packaging products for new markets in different countries. The nature of competition in thepackaging industry is often in the form of a competition to create a new package to the
market rather than produce or sell products in low price.
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Overview of Industry situation
Corrugated box "has a long history. Adoption and continued growth. It is not going
to be unpopular. Same as other products that may be times when technology changes.
Corrugated Packaging is currently the most popular for printing and packaging products,
because of corrugated paper packaging. There are many features, such as used in the
packaging of all kinds of consumer goods, product goods or various industries. Corrugated
packaging provides facilitate the storage of goods and transportation. Corrugated packaging
is designed to be strong and have the different shapes based on the packaging.
The paper industry, cardboard and corrugated paper for producing paper packing box.
Increase the production of the food industry, Agriculture, electronics, and service that need
for packaging. In 2555 the production of paper. Considering the industrial manufacturing
production Index. Production increased compared to the previous quarter. Corrugated paper
increased 22.2 percent. Coincides with an increase in the rate of production capacity, which
increases in the domestic market. Corrugated paper production also grew in accordance with
increase in the food industry, Electric appliance, Commodities, Cosmetic, and medicine is
also used cardboard boxes packed.
Trends in the paper industry in the third quarter of year 2555. Expected to increase the
production, export and import. The main industrial use the production of paper for cardboard
box, and packaging, such as Electrical appliances, Electronics, Automotive parts, and Food
products. External factors, including market trends, key partners in Thailand and in Asia, as
Hong Kong, China continues to grow in the exportation paper to these countries is higher
than other countries.
Reference: http://www.ryt9.com/s/oie/1477847
The most 5countries that do
exporting.
- South Korea
- Viet Nam
- Indonesia
- Malaysia
- Australia
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The combination of national, Asean10 country with Thailand, Myanmar, Laos,
Vietnam, Malaysia, Singapore, Indonesia, Philippines, Singapore, and Brunei to be provide
sharing the economic benefits or called to as "AEC" or the Asean Economics Community.
Currently time left only two years. Thailand will have an effect on both the positive and the
negative.
The effect of entrepreneurs
Positive
- Raw material costs and production standards.
- Lower cost of imported raw materials, the impact of import duties on
raw material is the paper.
- Cost of the package. the paper reduction of tax which the raw
Material is the paper Food Grade and plastics Food Grade, which
currently of this Thailand cannot produce on its own, but Indonesia
can produce and can be imported into the country even more.
- Indonesia is the largest manufacturer of paper products in ASEAN.
In the future, the large the paper manufacturers of the world will be China
and Indonesia. If an extension of the ASEAN +3 as well In Thailand
imports of raw materials for lower costs.
- Production of paper from Thailand's enough demand in the country, but
entrepreneurs necessary to Import the paper, because selling price in the
country is higher than export prices.
- Standard paper packaging of Thailand will meet the standards the majority
of the customers in global standard.
Negative
- Domestic workers and professional of labor mobility.
- Lack of workers in the industry, both in Thailand and foreign workers.
- There are established Thai Print Academy to create a new workforce into the
industry, who are interested to study abroad in Thailand.
The future may be developed as a model to International.
- 300 baht minimum wage policy affects the industry. There is a lack of
workers in the Packaging. Business owners need to think of a solution.
Concluded that will take more machines to replace labor.
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Nowadays, the company that produce the corrugated box are increased, and the paper
box factory in Thailand with more than 80 factories that produced the paper and cardboard
boxes. Entire company large, medium and small for use in the transportation and packaging.
Making competition in the business paper packaging is increased. Furthermore every
business should have business relevance with nearly all of boxes. Whether is large business,
medium or small. Also need to collect the paper documents, the materials, packaging,
commodities, cosmetics, medicines, food or transportation.
Electronic commerce
Electronic commerce in Thailand has the proportion of small businesses. (Maximum5 people) are 68.5 percent and 73.3 percent B2C type of business, if classified by found that
industry in the fashion industry. Costumes and accessory accounted for 32.3 percent of all
businesses. A minor are group of computer industry, Electronic devices and the Internet. 17.7
percent.
Trends in the online world trading of Thailand nowadays, considered to be very
popular. The dominant factor caused number of stores, and the business that entered to online
have increased, which caused from "To start trading online can be made easy". The payment
system and logistics system is better and easier than ever before. Make the entrepreneur can
start and easy to trade online, and the one factor that will make the world of online trading in
the country has increased, because due to economic slowdown makes many businesses start
looking at a new way to find new customers, and increase the revenue for themselves. Many
businesses have turned to online trading that can help to increase the sales in across the
country and around the world more effectively.
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In the last year (2553), business for E-Commerce has sold about 608,587 million Baht. It
is the B2B sales of about 251,699 million (41.4 percent), the B2C sales about 84,593 million
(13.9 percent), and the B2G sales about 272,295 million (44.7 percent).
When consider the value of sold by classified for the industry that shows in the last
year (2553), the sale based on the Automotive Industry, and products are about 73,131
million baht (21.5 percent). The second is a group of computers, Electronic devices, and the
Internet, about 66,297 million baht (19.4 percent), and travel, hotel, resort about 60,023
million baht (17.6 percent).
Types of
entrepreneurs
Value of electronic commerce
Years of survey
2551 2552 2553 2554
Value of total
sale
427,460 527,538 629,611 608,587
(100.0) (100.0) (100.0) (100.0)B2B
127,325 190,751 217,458 251,699
(29.8) (36.2) (34.5) (41.4)B2C
63,425 45,951 67,783 84,593
(14.8) (8.7) (10.8) (13.9)
B2G236,710 290,836 344,370 272,295
(55.4) (55.1) (54.7) (44.7)
From the survey2,728 2,087 3,670 4,611
(0.6) (0.4) (0.6) (0.7)
From e-auction
233,892 288,749 340,700 267,684
(54.8) (54.7) (54.1) (44.0)
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For the methods, to used in the E-Commerce business for take care customers
primarily use email or submit the questions for customer on the website or Facebook, which
is about 80.4 percent. Second officials take the call (Call Center), about 62.6 percent, and use
the Live Chat to chat with customers such as MSN, Skype, and G-talk etc. 30.5 percent.
Sources: http://service.nso.go.th/nso/nsopublish/citizen/news/news_e-comm.jsp
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2.3 Product
Paper box
China is the first country that create the paper box for packing the tea leaf. In 1839
United State use cardboard box for packing decorations, such as jewelry and gems.Nowadays people develop cardboard for use with another material, such as plastic, metal and
can coat the candle can be waterproof. Moreover the paper box can use for food and drink,
Then it's make the paper boxes are very popular in nowadays.
Types of paper box
1. Die-cut box
A box containing various forms depending on design to match with
applications and focus on beauty of box. It can be use corrugated paper, cardboard or
art paper by taking into machine, it will be according to template that you want. Then
get out a sheet of box that has been cut to desired shape and be assembled into a boxshape.
Die-cut box is popular used as packaging products that needs beautiful, also
called "Inner Box" to increase the value of product or to show product. It's easy to use
products category containing such as electronic, components, electronic equipment,
toys, fresh fruit and etc.
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2. Cardboard boxA box that has light weight, graphic design or logo can be printed for easy
decorating products.
Retail packaging is the most popular can be made from many kinds of paper
such as paper white-gray, coated paper, card paper, cardboard paper and etc. It can
also be coated with other materials such as varnish, plastic to the properties
improvement.
Form of a cardboard box divided into 2 types is folding box and set-up box:
2.1 Fold cardboard boxCardboard boxes can be made and shipped as flat blanks at the packing
plant may lead to product or product packing glued and sometimes it may
stick to edge of the box already for close lid. Cartons are now both tube and
tray.
2.2 Set-up box
Set-up box is the box for already to use. For example, matches box or
shoe box with cover. Manufacture of set-up box slower production more than
cardboard or folding box. It makes higher price per unit both the production
and transportation. The advantage of this box is can use for long time and if
you have design that will enhance the value of product, it can attract attention
of buyers.
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Cardboard boxes are used 2 types.
1. Non coated white paper box
This paper is similar with coated paper but coarse-grained than
irregular white paper. It does cheaper be printed with conventional systems
like shoes boxes, moon cake boxes, etc.
2. White coated paper
This paper is normally used in the packaging of consumer products because it can
print by offset system insert a different color and valuable items. Then contained within the
box and it is sold by general stores. It's known as cardboard gray-white in packaging of food
products used in the paper because easy to buy.
Selection of cardboard box must be considered in relation to use properties. Such as
moisture, bursting strength, ability to gain weight around 2-3 pounds. Depending on size and
thickness of the paper of surface roughness, thickness, smooth of paper, white color. The
benefit is bright color can make colorful from printing more than other colors. Resistant to
bending can be folded into a flat sheet has space to store and transport. Select the desired
torque is easy to cut on puncher cheaper, materials and manufacturing processes to design to
choose size of paper and box. It is depend on type of product and market demand. The
alignment process should be durable and easy to taken or easy to carry on it when set up as a
group.
Types of paper
Plain paper is to print general document use plain paper, a paper with thickness of 80
-120 grams. Do not have special chemical coating for printing color graphics quality. But
somehow, 300dpi is the best for print the paper resolution. So if higher resolution ink
penetrates, the paper will not dry. In practice, its possible that some will be plain 600x600
resolution prints if the paper is thicker than 100 grams was achieved.
Fine printing paper with a thickness of more than 160 grams, its good source for
inkjet printing because prevent absorption of ink. However, the price of paper was expensive
as well as paper designed for inkjet printers. It is allows user to turn to instead used of inkjet
paper, which have both same brand of printer and paper produced by manufacturer paper
free.
Inkjet paper is specially coated paper both paper printed on one side and print double-
sided. Nature of paper is no different from normal paper, thickness was not differ but the
different is special coating to qualify for ink to be printed on paper. In general, inkjet paper to
print a report with a chart that beautiful at 600x600 and level premium or deluxe inkjet paper
is capable of printing up to 1440.
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Paper card is paper coated with some material to a smooth surface. The surface
characteristics both 2 sides, but it is not much thicker than paper with printing on both 2 sides
to printing images with high resolution. The images are crisp and beautiful suitable for the
production of art or box desired thickness.
2 paper cards, art card 1 page is generally available in 2 sizes.
25 inches x 36 inches
31 inches x 43 inches
Paper powder box characteristics 2nd surface has two sides, one side is white with
gray. Paper powder box, white front and white back gram 230 500 grams used for
packaging all kinds of products such as OTOP products, gift box, candy box, posters and etc.
Aluminum coated paper coated with white (kaolin) or special materials, then pass
polished chrome roller with two balls to make surface smooth. The plastic mesh is coatedwith metalized film so that it is used to make a shadow box food that have high price.
PE coated paper coated with white (kaolin) or special materials, then pass polished
chrome roller with two balls to make surface smooth. PE film surface with opposite to water
or fat have insert features a beautiful color, used for packaging frozen foods or snack foods
such as cookies etc.
3 Corrugated boxes
Packaging paper box with a very strong feature used in the transportation of
goods. Its also help to protect your goods safe, can be designed accord ing to need and size.
We will make use of corrugated boxes 2, 3, and 5 layers of corrugated cardboard can be make
to Die-cut boxes and can make corrugated boxes offset printing, so that box is strong and has
print beautiful.
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The structure consists of corrugated boxes
1) Liner board is paper attached to wavy corrugated paper sheet, corrugated roofing
cover, which we will use Kraft paper to be flat sheet.
Kraft paper
The most of Kraft paper is coarse skin. It has brown color of wood that make pulp and
paper production. But some kind it is white because used to bleach pulp or may have other
colors depending on manufacturer and market demand.
Characteristics of Kraft paper
Kraft paper are sticky and stronger more than normal paper. The pressure and prevent
shock due to stab through from the outside as well, it also has ability to resist water. Oil and
Kraft paper has a smooth consistency can be glued well that suitable for printing. The
outstanding features of the various types of Kraft paper which can be processed into
packaging container properly both of production. There are packaging and transport can also
recycled for use as renewable raw materials in the manufacture of paper. It help to reduce
pollution to the environment, Kraft paper packaging material is widely used in industry.
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Kraft paper, corrugated paper sheets are used to make a variety of colors and quality of
implementation is different. The main grade of paper used. Is as follows.
KS - With its white surface and high smoothness, KS is ideal
to produce both strong and high print-quality packaging,
enhancing the value and aesthetic of the products
Application: Widely used as packaging for electrical
appliances, pharmaceutical products, medical equipment,
exported frozen foods, dairy products, beverages and fresh
produce.
Standard Basis Weight: 170 gem
KA - Its golden yellow surface, superior strength, and
consistency of color shade has made KA the most preferred
choice. Certified by Thai Industrial Standard Institute (TIS.
170-2529), KA is popular for packaging of domestic and
exported products.
Application: Widely used for various types of packagingsuch as electrical appliances, electronic components,
electronic circuits, exported frozen foods, canned foods,
engine parts, and textile, etc
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KI - Is an environmental friendly liner board. Its surface is of
light/bright-shade of pulp. The light tone of KI helps achieve
good print contrast for dark-color image on the packaging.
With standard strength property, KI is suitable to make
packaging for domestic goods.
Application: Widely used for all kinds of products such as
consumer goods (beverages, canned foods, and snacks),
furniture, leather, etc.
KL - Is designed as a liner board for the inside surface of the
box. It is made from recycled paper, without any additional
coloring. Unlike other liner boards, which are also used for
outer surface and therefore smoothness and cleanliness is ofconcern, KL features mainly its premium stacking strength.
Application: Suitable for several usages, such as electrical
appliances, consumer goods, canned foods, beverages, etc.
especially for packaging requiring high stacking strength of
box and the appearance of inside surface is not highly
concerned
KK - is a brown liner board made mainly from recycled
paper. Its color shade also resembles that of KP. KT is also
one of major products, featuring primarily stacking strength
of box. Application: Suitable for packaging of consumer
goods requiring ordinary strength. Standard Basis Weight:
125, 150 gsm.
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Paper GradeBasic Weight (g/m^2+/-
4%)
Force the Ring Crush
(N/152.4 mm) Min.
Pressure resistance
(KPa) Min.
Humidity Levels
Moisture (%)
KA125 125 160-170 390-400 6-9
KA150 150 210-220 460-490 6-9
KA185 185 280-300 520-560 6-9
KA230 230 380-410 640-680 6-9
KI125 125 125-155 300-350 6-9
KI150 150 170-200 370-440 6-9
KI185 185 230-260 460-540 6-9
KP175 175 210 410 6-9
KP275 275 345 600 6-9
KT125 125 140 275 6-9
KT150 150 190 350 6-9
TA125 125 150-155 275-320 6-9
TA150 150 200-215 350-375 6-9
Source : http://www.packingsiam.com/index.php?lay=show&ac=article&Id=539312388&Ntype=7
Kraft Liner Board Specification
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2.) Corrugated Medium is a paper that looks like a wave between the papers.
Kinds of corrugated sheets.
1. Single Face
The paper includes one flat sheet, one sheet adjacent to corrugated medium and used
to shockproof product or dashed box offset standard hoop: B, C and E.
2. Single Face
The paper consists two flat sheets corrugated roofing one sheet by adjacent corrugated
medium. It is in middle between both two sheets of plain paper (Liner Board). Used for the
product that has medium weight or not strong standard: B, C, and E.
3. Double Wall
The paper consist three flat sheets dovetail with corrugated two sheets by the
corrugated type B that stick outside the box for print and corrugated type C to protect fromthe crush. Double wall is popular in the product that needs to protect or have high weight.
4. Triple Wall
The paper consist the 4 flat sheets and corrugated roofing 3 sheets. Used in the
industry that needs to gain heavy weight such as machine in the industry.
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Process of Manufacture
The processes of Manufacture Corrugated box distribute in two ways are Eieblwd boxand Box gluing.
1.1Eieblwd boxAlmost be the big box to carry the high weight product or long box but its hardly to coat
glue. So the process of manufacture will use printer slotted and stamp at printer. The process
of manufacture box have method to manufacture Eieblwd box by take it out of machine that
make trace line at cover and put it in feed unit of machine pages per sheet in to printing
section for printing. Printer have color box and primary color are separated out. Next cut
tongue of glue at box in side one and erode groove for distribute in another side, so it will be
unfold. Then make forming by Eieblwd to link box at side one and four together by use semi-
automatic sewing machine or automatic sewing machine.
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1.2 Box gluing
Box gluing is the box fast to Manufacture and use in common product. The process of
manufacture will use Flexo Folder Gluer that are machine include with printer, grooving
machine, printer slotted, folding, glue together in one machine in produce box gluing.
Corrugated sheets will print overlay fold line and groove as same as the process of printer
slotted. After that machine and folder gluer will set glue and lap splice join side 1 with 4
together to become ready-made box. It will pass the machine and tie a rope follow volume of
box.
Corrugated box divided into 5 types
1. RSC box (Regular Slotted Container)Popular to use more another type because the Manufacture use only one paper to less
material and have cover open-close in equal by cover outside. It will link at center from
length of cover. So its easy to transport product because the box is flatly and can open
immediately. Then its easy to contain and use. RSC box can edit to transport in product
almost all kinds of product or use to improve strength to protect the product.
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2. FOL (Full Overlap Slotted Container or Full Overlap Container)
A cover has same size length and width to make the box stick together. So it will
increase strength of the box. When it is overlapping, it will adapted to carry heavy product
and protect indelicate before it has effect to product.
3. HSC box (Half Slotted Container with Cover)Have two parts cover and box. It is open-close in same side and do not have cover in
the box. But box will close by another box cover (Box cover box) by cover will higher thanbox a little bit and same design with the box or have a same style with half-slotted style, half-
slotted style usually use in industry, battery, refrigerator, washer, etc.
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4. PTHS Box (Half Slotted Box with Half Slotted Partial Cover)Two parts of box include with box, cover, its slotted style, suffer to bulging and
bulking. When box get a heavy, sometime producer Manufacture product over-packed but
this box can carry it.
5. FPF Box (Five Panel Folder)
It look like RSC Box but shorter than, its can tape around the box, so it make box
stronger by cover, it fit to transport piece ex. Rattan, umbrella ,roller or electronic, FPF have
2 type . There are :
- Full cover
2 Covers can open-close lateral use staples
- Standard Cover
Cover will close the center use tape to close and outside use staples to close
6. Partitions and Pads
Partitions inside the box use to partition and reduced pressure between material,
beside will reduce the space inside the box. Pad made from corrugated sheets and it can make
baffles or pad in layer to protect product when they transport. For example Glassware,
bottom, vase etc, when compose the box complete, Core will make the box stronger and hold
the shape.
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Corrugated Box in Thailand Post
1. ReadyMade CartonReady Made Carton made from corrugated paper, there are high quality and many
sizes for customer needs that they want to send product by strong box.
Ready Made Carton has six sizes for customer to choose by size of the item that
need to packing.
- ReadyMade Carton A size : 14 x 20 x 6 cm.
- ReadyMade Carton B size : 17 x 25 x 9 cm.
- ReadyMade Carton C size : 20 x 30 x 11 cm.
- ReadyMade Carton D size : 22 x 35 x 14 cm.
- ReadyMade Carton E size : 24 x 40 x 17 cm.
- ReadyMade Carton F size : 30 x 45 x 20 cm.
Source : http://www.thailandpost.com
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2. Normal CartonNormal Carton has many sizes to choose made for conveniences of customers that
need brown box are strong and big size. Normal Carton can accommodate item that multiple
size. The box made from standard corrugated paper for protect item in the packet between
transportation.
Normal Carton has six sizes for customer to choose by size of the item that need to
packing.
- Normal Carton No.1 size : 30 x 100 x 30 cm
- Normal Carton No.2 size : 31 x 36 x 13 cm.
- Normal Carton No.3 size : 31 x 36 x 26 cm.
- Normal Carton No.4 size : 55 x 100 x 55 cm.
- Normal Carton No.5 size : 40 x 45 x 35 cm.
- Normal Carton No.6 size : 45 x 55 x 40 cm.
Source : http://www.thailandpost.com
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Important property of corrugated box:
1. Combined board basis weight mean the total weight of corrugated as grams
per corrugated one square meter.
2. Bursting strength mean the ability of corrugated for resist pressure that test
with a higher rate, the corrugated will tear in KPa or Kilogram per square centimeter,
so resistance of corrugated can estimate from total of pressure that make the paper
tear inside and outside of corrugated.
3. Flat crush resistance mean the ability of corrugated that can resist pressure by
horizontal to lose shape in KPa or Kilogram per square centimeter. The result will
relate with thickness of corrugated and cushioning ability of corrugated.
4. Edge crush resistance mean the ability of corrugated that can resist pressure by
vertical to subside, in Newton per meter. This test is very important because this test
report about hardness of corrugated that relate with hardness for sequence overlap of
box.5. Puncture resistance mean the ability of corrugated that can resist from
puncture in unit joule. This ability relate with toughness for resist tearing of
corrugated because it is mechanical shock from the external.
6. Box compression strength
Mean the ability of box for resistance pressure at the top of box with constant
speed until the box subside or lose shape unit in newton (N) or Kgf. This ability is
relate with the strength of box for overlay but it not tell about weight in the real
overlay because in practice its necessary to multiply for safety factor such as
moisture in the air, times, type of overlay on top and system of move.
7. Drop resistance mean the ability of box for resistance with ground when
falling from a height. This testfor testing the strength of box for protect the product
when they have leave out in the transportation part and in this part the transporter will
report the amount of damage.
8. Vibration resistance mean the ability of box that can protect the product inside
from damage depend on vehicles in transportation part and another factors. The
objective of this test is for estimate the strength of package, instrumentality for
contain, suitable cushioning material, unit the closed container that can protect the
damage from vibration.
9. Incline impact resistance mean the ability of package (box) for resistance withbaffles when falling to the ground that angle of ten degrees and horizontal. This test
have objective for test that the package can protect the product from impingement that
can be in transportation part.
10.Hexagonal revolving drum test
The tools that use to test characteristic is hexagon box that can evolve, take the
product get inside the hexagon box associate with baffles, the baffles make the
product crush with the spot. This test is for estimate the damage that may potential
with product and check the quality of manufacturers joint.
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Paper and packaging paper testing.
- Test for basic weight
To determinecriterion for sale because the basic weight of paper will directly related
to the strength of the paper. Lead the paper and cut to appropriate size such as 10 square
centimeters and weighed carefully. Show number of basic weight is the weight per unit area
such as grams per square meter or pound per ream (U.S Ream). Were 24 , 36 inch size paper
500 sheets.
- Test for thickness
Prefer to check the paper quality of the materials are soft and almost all types of
containers. The method is easy and fast to make it. Used to measure the resolution and
precision such as Dial Type micrometer. Unit of thickness commonly to use as millimeters,micron or inches. And unit for specific materials such as point for the paper. (1 point = 1/100
inches), (1 mil = 25 micron) and gauge (100 gauge = 1 mil) for plastic film or a lot of soft
materials.
- Test for tear resistance
Test is about the average value is used to tear the paper has notch and has unit to use
gram force or meter, new ton. (gf.m or N.m). For this test are important to control the
quality of paper, paper bags and cardboard boxes.
- Test for bursting strength
Test is about ability of paper or corrugated sheets resist the pressure are increase in
constant rate until samples are lacerate. It can measure in kPaor kilograms per square
centimeter (kg/cm). Use for test the quality of paper. Cardboard or corrugated sheets used to
form a container such as a bucket.
- Test for tensile strength
The elongation sample sheet is held among the two forceps by pinch one and move to
retrieve samples are lacerate. Record force that use and value of paper while holding it.
Resistance reports the tensile force per cross-sectional area of the sample or the width of the
sample. The report is based on a percentage.
- Test for moistureTest by use method baked the sample sheet that known weight in the oven at 105 c for
at least two hours. It make cool and lead to find new weight the difference of the water
weight can measure moisture content in the sample. All reported values are percentages. Forthis test are important to cardboard and corrugated sheets used to form a container.
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- Test for water absorption
It is test for ability of paper to absorb the water within a time period. The paper has a
weight of water absorbed by the area in contact with water. This test is important to print (ink
absorption) glue to withstand environmental conditions such as rain.
- Test for resistance to fat
It is test for ability of paper for resistance absorption of fat by record the value of the
time that appearing on the fat side opposite the side in contact with the fat.
Source: http://www.qualitycartons.com/paper_qcc.html
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2.4 Vision and Mission
Vision
"To gain more market share of online paper box business in Thailand."
Mission
Our company can make profit from transport the product to customer and it can
increase profit in every year by liaise, include with good performance of transportation and
provide the promotion to motivate the customer, for make customer trust our company beside
customer can feel our service is faster and punctually cause to respond the demand and
increase confident and trust of customer. Our company will operate company with honest and
obvious, so our company will always develop for retain benchmark of transportation and
quality of service.
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2.5 Strategy
2.5.1 Corporate Level
The PB limited partnership is sell and transport the product to customer in onlinemarket that company will establish in Samutprakarn. In the PB limited partnership will have
characteristic about growth strategy, many companies use this strategy to expansion increase
in market share and find new group of customer. The PB limited partnership use in
integration strategy in term of forward integration strategy, we give in convenience and fast
in transportation and information. And use this strategy to increase market share and concern
about customer satisfaction.
2.5.2 Business Strategy
Differentiation
The Product Box Limited Partnership has target customers are online shop and retailer
that they want to use box to packet. Our company has different promotion and service of our
company better than competition, because we are fast and be on time.
2.5.3 Functional Level
Marketing StrategyProduct
- Have 2 grade of box and they are different in thick and color such as KS, KC.Price.
- Set price by standard price that survey from the competitors.
Place
- Product Box has office at Bang Phli, province Samutprakan, should this place becausethe company establish at center of Thailand, easy to transport the product and nearly
suppliers.
Promotion
- Free transport- Advertising on internet.- Sale promotion- Customer feedback by using member of company website.
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Sale strategy
Selling Process: we used the webmaster do in seller to answer the customer in
website. The webmaster will control and answer any order and any question that the customer
contact with our limited partnership. And the webmaster will motivate the customer to buy
the product and used after sale service method for make the customer thrust and make good
image to our limited partnership.
Sale promotion: we have the sale promotion in the many famous festival such as
Valentines Day, Halloween, Chinese New Year, and have the gift for all customers in New
Year to make the customer believe that our limited partnership is interest and care the
customer mind. In the website its has the picture and other media for promote the product.
Advertising: we sale in online market so we have the many advertising in the world
wind web such as show the website in facebook and our webpage that have many information
of the product. And when we sent the product to customer we will sent catalog or brochurewith the product.
Website : The limited partnerships website is basic website that commonly and easy
to use, when customer open website. Moreover the limited partnerships website has record
information system of customer for convenience and speed in order to trade with the limited
partnership in the future such as order history, and transfer payment.
In case that website is an error when customer use website or cannot login, customer
can fix or recover the data by yourself. By following the simple instructions that appear on
the website.
Posts of the limited partnership can meet in the homepage of website, for customer
can get the information that customer need to know. By establishing a topic and type the
required details for post and then webmaster of limited partnership available to answer
question and provide information that customer need to know quickly. Moreover, the limited
partnership will be tracking the results of shipment via the website, by webmaster will
contact with customer directly through the messaging system on the customer has to register
with the limited partnership website. The limited partnership will determine that customer
receives complete product order and product in good condition according to customer
requirements.
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Sale Strategies Cont.
Notification: When customer transfer payment and inform the data to the limited
partnership, the limited partnership will update information about product and status
of shipment to customer via the limited partnerships website. In addition, after the
customer transfer money to the limited partnership, a message automatically to email
address that used to register of customer immediately, so the customer know that the
limited partnership get the funds. Moreover, the company registered e-DBD to make
facilities for customer.
Black lists: Black list will affect to customer when delinquency with the limited
partnershipmore than 3 times because of the limited partnership does not need the
customer who doing-wrong the policy of limited partnership.
Website Lock: When the customers have the contract with our website and the customer
can record the information in website. The website of limited partnership will show thepresent information of the contract with customer.
Sources: http://smallbiztrends.com/wp-content/uploads/2011/11/key-sales.jpg
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Chapter 3 Market Feasibility Study
3.1 Marketing Analysis
Political
Increase the minimum wage
Central Committee of Thailand's policy has increase the minimum wage to 300 baht
per day. Mr. Phademchai Sasomsub Minister of Labour, said that after the government is
distributing income along with the preparation of measures to reduce the cost of living.
Increase in the minimum wage, which is responsible for the Department of Labor from its
consultation with relevant agencies have concluded initial clearthat government will adjusted
minimum wage to 300 baht per day. Approaches operation is will increase 40% by use
account minimum wage is now enacted or as the base. For the provinces Current Samut
Prakan minimum wage rates at 215 baht per day, up from the original 40% or 86 baht
increase the minimum wage to 301 baht per day, so company have to pay high salary for
employee that already graduated in degree, it make company must to pay higher cost of
produce and the company get low income cause by pay a high salary for employee.
AEC(ASEAN Economics Community)
SMEs accounted for 96% of enterprises and between 50-85% of domestic
employment across Asean. Integrating these SMEs and supporting them in the inital period
will be a challenge throughout ASEAN but particularly in the lesser developed ASEAN
countries. Recently I was in Singapore and it is obvious that the Singapore government fully
realizes the challenge and the opportunity that the AEC will represent to SMEs and is putting
both the planning talent and the resources to better support their SMEs. I was also in
Vietnam and Thailand and although both countries are starting to verbalize and meet to
develop more effective plans for SME integration and support, it is obvious that these plans
are probably behind where they need to be. In countries, such as Cambodia, Laos and
Myanmar (Burma), plans are even further behind and more in need of support and
resources. So the most SMEs need to have packaging to hold product for import.
Source: http://www.prachachat.net/news_detail.php?newsid=1314755530&grpid=02&catid=no
http://www.business-in-asia.com/asia/asean_economic_community.html
http://www.wallstreet.in.th/aec.aspxhttp://www.wallstreet.in.th/aec.aspxhttp://www.wallstreet.in.th/aec.aspxhttp://www.business-in-asia.com/asia/asean_economic_community.htmlhttp://www.business-in-asia.com/asia/asean_economic_community.htmlhttp://www.wallstreet.in.th/aec.aspx -
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Economic
The trend about economics of Thailand will expand in 4.5% Dr.PiyasakManasan
The diractor of research and planning division of Kiatnakin Bank by the expand of
economics of Thailand will get factor from the increase of consumer product, the effect ofthat come from increase minimum wage by government policy, so it will motivate about
consumer in region and the part of invest of private to start expand the invest in first quarter
and second quarter by the cause of invest the machine that need to repair and compensate the
damage of machine from flooding in last year (2011), beside the invest about industry to
restore the process of produce Spatial Development Planning and Strategy Officer
(SPSO)/NESDB/20August 2555.
Social
The produce of package in Thailand will increase in every years because main income
of country come from the export so to make customer interest and choose to do business with
the company, CSR (Corporate Social Responsibility) will be another alternative to influence
customer to do business together in process of company, that realize every employee in
company, employee is the best resource of company so must give a take care and develop
performance, benefit and opportunity to the employee advantage by support about develop
knowledge and ability of employee include with external of company to show about the
company preserve the environment and guard benchmark of safety, including support activity
to develop and preserve the environment, energy by organized activity to campaign for
promote behavior to use resource in smart way Samart Co.,Ltd.
Source: http://www.prachachat.net/news_detail.php?newsid=1314755530&grpid=02&catid=no
http://www.business-in-asia.com/asia/asean_economic_community.html
http://www.business-in-asia.com/asia/asean_economic_community.htmlhttp://www.business-in-asia.com/asia/asean_economic_community.html -
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Packaging environments
Paper packaging industry increased in production, exporting and importing, because
of the ASEAN Community have both positive and negative effects to paper packaging
industry, and domestic factors by a group of consumers more turned their attention to the
environment. The consumers want the packaging that is environmentally friendly. Packaging
design must consider the ability to reduce the amount of packaging used, because people
know and awareness of the dangers of global warming. It will be losses to the environment
and living organisms, which are the key elements of the Ecosystem. We must be protected,
and change in today. In Thailand has 3R to use for environmentally friendly. It is Reuse,
Reduce, and Recycle.
The choice of the packaging, that is friendly to the environment. It shows the
consumers and society, that our business is caring for the world. The important think about
the management of packaging "green" need to start focus on to the lifecycle of the packagefrom the beginning supplying until the ending of use. In the Product Box company is uses
natural raw materials, which can be decomposed to easily without destroying the natural
environment, and can be recycled. The Product Box Company is attentive to social and
environmental with choice of packaging for "green". This is not different from the general
packaging. It will protect from damage of goods or product that inside the box from
transportation and it is beautiful.
In the Product Box Company, the most of product is corrugated paper. That has to
produce the carton packaging to put goods or product to transportation. In company have
environment conservation to use the recycle paper into the processes of produce the cartonpackaging. It is the policy to save the energy and save the world. It is the corporate social
responsibility.
Corrugated paper product in company
Most are made of corrugated material recycling, and often made from scrap of
recycled human. Manufacture of corrugated paper without the use of toxic materials, or
destruction of the ozone layer. The current have research and development capabilities of the
corrugated market all the time, in order to improve the properties, the ability of corrugated
paper, such as strength and the ability to print, resistant to moisture, and recycling. More than74% of corrugated paper products are taken to recycling. The paper counts as one package
with rates being highest recycling.
Source: http://www.foodnetworksolution.com/knowledge/content/142
http://www.dae.mi.th/world.htm
http://www.thaipaperbox.com/about-paper.php
http://www.bangkokbiznews.com
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Technology
Nowadays technology have role in many aspects of business. Many people use
machine to help in their business which technology in modern not only in term of
comfortable but technology assist in the production of goods. And the technology that we
choose in company is concern about internet webpage and truck. In the present, internet has
many roles in every industry because the number of people in communication by the internet
is higher than ever such as Facebook is a large social network online and popular in
nowadays which we use Fackbook to contact and send information to customer faster. And
truck support in the transportation, when the transportation is convenient and fast that effect
on satisfy of customer.
Technology in packaging
The packaging technology is important for logistic system because in term of safety
on product, we protect in quality of product and not harm to the environment. So we choose
in CUBE intelligent program, it help in enhance the capacity of packaging and design of
packaging which the program can calculate the size and style of packaging it effect in design
accuracy and minimum gap.
Sources: http://www.tradelogistics.go.th/download/file/5ee4543c.pdf
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3.2 Competition Analysis (3Cs Analysis)
3.2.1 Competitor Analysis
Paper Box Limiter Partnership can provide the competitor into two groups. There are
direct competitor and indirect competitor. In term of direct competitor is the paper box
trading company by using e-commerce that same as PB Limited Partnership . Such as DPS
Limited Partnership and PJ Box. In term of indirect competitor is a company that they are
produce the product, use internet for sell the goods and transport the goods for customer.
Such as S C Paper-Pack Co.,Ltd.
Direct competitor
Design Packaging and Supply (DPS)
Design Packaging and Supply Limited Partnership is an trading company by using e-
commerce to do the business. Main product of this company is a post office paper box.
Moreover DPS has another products such as corrugated box, plastic shockproof and OPP
tape. Target market of Design Packaging and Supply is retailer and wholesaler that most
using the internet. The promotion of this company have only one promotion that is discount
strategy, this promotion is for the order more than 3,000 baht. The transportation is to
transport the goods to customer buy Thailand post and private company, such as NTC, SDS
,CKT transportation.
Advantage Point Disadvantage Point
- The company have customer loyalty.- The transportation of their company arereliable for customer.
- Do not have the information about thecompany to make reliable of customer.- The company has unclear information ofthe amount to order products.- The company do not have the standard toguarantee their product.- The price of product is a little bit cheaperthan the market.
Source:http://www.dps-postbox.com/?cid=1289592
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PJ Box
PJ Box is an e-commerce business. Their main customer are the people use the
internet and have ability to buy low amount per order. The main product is Thailand post
paper box. A part from paper box they sell the tool for packing, second hand paper box, etc.
The price is quite high more than market price. The promotion of this shop is use a sale
promotion. There are; If you order Thailand post paper box 100 pieces, you will get free fivepieces and if you order 150 products from this shop, you will get free five paper boxes. They
transport the goods to customer by Thailand Post, but if the order more than 1,500 baht, they
will transport the goods to customer by private company.
Source: http://www.pj-box.co.th
Advantage Point Disadvantage Point
- The company have customer loyalty.- The website are guarantee by e- commerce
company.
- The transportation is free.
- Do not have the information about thecompany to make reliable of customer.- The contact is not available for customer.
- High price- Sale promotion is long-run, so it cannotmotivate the customer.
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3.2.2 Customer analysis
Product Box Limited Partnerships has target on the online shops or e-commerce in
Thailand, there are a lot of online shops on many websites. The famous websites, people want
to open online shops are around 17 websites, some websites are free, some websites want to
register the member, and pay the money to open online shops on the websites. We survey the
number of online shops and member of 17 famous websites in Thailand that show the number
on the table.
From the table, it shows number of online shops on each websites that the total online
shops are 1,301,444 shops. In total online shops, there are many catalogs that include fashion and
accessories, e-ticket, book, food drink and healthy goods, and etc. It shows on the table.
Web site Online shops
www.weloveshopping.com 321,138
www.shopup.com 15,123
www.lnwshop.com 59,563
www.pantipmarket.com 10,555
www.dealfish.co.th 218,044
www.thaionlinemarket.com 79,516
www.siamonlineshop.com 2,940
www.be2hand.com 314,128
th.888db.com 646
www.siamshop.com 6,736
www.market2u.com 2,373
www.shop2thai.com 4,684
www.ilovemyshopping.com 6,804
www.yeepou.com 625
www.plazacool.com 705
www.catabgtoday.com 41
www.tarad.com 257,823
http://www.be2hand.com/http://www.be2hand.com/http://www.siamshop.com/http://www.siamshop.com/http://www.market2u.com/http://www.shop2thai.com/http://www.shop2thai.com/http://www.ilovemyshopping.com/http://www.ilovemyshopping.com/http://www.yeepou.com/http://www.yeepou.com/http://www.plazacool.com/http://www.plazacool.com/http://www.catabgtoday.com/http://www.catabgtoday.com/http://www.tarad.com/http://www.tarad.com/http://www.tarad.com/http://www.catabgtoday.com/http://www.plazacool.com/http://www.yeepou.com/http://www.ilovemyshopping.com/http://www.shop2thai.com/http://www.market2u.com/http://www.siamshop.com/http://www.be2hand.com/ -
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Customer behavior
In Industrial Estate have many companies and factories produce their product for sale
exchange or trade, they will pack their product and send their product to another company. In
many factories use corrugated box for pack their product, they want to save their product for
transport to customer and promote the product. Corrugated box has many qualifications forthem, low cost, save their product, strong, many sizes and many styles for make to order. In
location, they want to buy corrugated box from nearly their company that can reduce risk
from transport corrugated box to their factory, it effect to their production, and it easy to
order. And the quality of corrugated box, it effect to decision to buying, so Thai Industrial
Standards Institute Library (TISI), it is certificate the corrugated box. So it has three main
effects, qualification of corrugated box, location and quality of corrugated box.
1.93.9
4.1
4.7
5.7
8.7
10.8
12.5
13.3
13.414.8
30.8
Computor game
Softwares
games and gifts
Electricity and electroacoustics
Utensils and office
Booking services
Entertainment/Sport/Stationary products
Technology/Communication and photo
Food, drink and healthy goods
Booke-Ticket
Clothing and jewery
Product and Service
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3.3.3 Competitive Analysis
We used FiveForces model for analysis competitive that selling similar production our
company.( Michael Porter )1. Rivalry Among Current Competitors
In online shopping has many shop that sell product box, but each companies
set the price of box hasnt equal. Mostly companies focus online shop less than shop
of their sell, but we focus mostly online shopping and make lots of promotions with
online shopping more than competitor.
2. Bargaining Power of Suppliers
There are a lot of suppliers from Samutprakarn or near this province. There
can serve the production following my order. Moreover the price of production can belower, because we will order product box too much and then we cannegotiate about
price of production lower and lower.
3. Bargaining Power of Customers
The bargaining power of customer has quite high, because there are a lot of
Paper products companies at Samutprakran that sell similar product, but we can solve
this problem from good negotiation and offer promotion that difference other
company. Moreover our company has good location, and near industry that used
Corrugated box more than competitor.
4. Threat of Substitute Products or Services
From now, every industries they used Corrugated box that produce by paper to
transport, its lower cost and easily to find or use. It has Normal box paper, but cannot
substitute Corrugated box, because that box havent flexible or strong as same as
Corrugated box.Most industries used Corrugated box to transport their product from
point one to other point. The Corrugated box is good way to protection their product
without broken. Moreover this box is not expensive.
5. Threat of New Entrance
The Product box has not easy to entry competition, because each companies
that use Corrugated box. They will have regular customer and they dont want to
change their suppliers without New company offer good promotion greater than old
company.
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3.2 STP Analysis
Market Segmentation
Packaging segmentation
Market Segmentation of product box limited partnership is to provide type of
packaging that normally people in Thailand use for transportation, classifies by material of
packaging. In each types can separate into to group, there are online business (on website)
and non-online business (industrial, factory and etc.).
The product box product limited partnership is use the packaging segmentation to
analysis the packaging that normally consumers use in transportation. We divide the
packaging segmentation into pie chart for easy to understand and analysis. This pie chart is
show the percentage of packaging types. It has five segment that consist of 51.35% from
paper , 20.52% from metal, 14.61% from plastic ,9.91% from glass, 3.60% from other. There
are two group in each type of packaging; online business and non-online business.
Source: 2552
Target Market
The target market of product box limited partnerships, we analyze paper packaging
segment and focus on online business. The target market are online shop and retailer because
this target market is bigger than other and online shops are increasing in every year. This
group use corrugated box for pack their product to transportation.
Paper51%
Metal
20%
Plastic
15%
Glass
10%
Others
4%
Packaging Segmentation
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High PriceLow Price
More promotion
Lesspromotion
Paper Box Limited Partnership
DPS Limited Partnerships
PJ Box
Position Analysis
The product position of Product Box company have more promotion when compare
with others two company. But Product Box company use nearly standard price.
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3.3 Marketing Mix/4PProduct
- The Company sale corrugated box, thick box have 2 types:
1. Thick three layers (Single wall) have a paper layer to make for surface of box and
wave of corrugated, paper make a surface of box. It is popular to contain a general
product that have a middle weight or take it to pad and partition another side of box
beside it can increase thick of box.
2. Thick five layers (Double wall) its different from three layer. It is complex more
than by increase amount of paper to make pad and partition for protect and strength,
popular to contain product that have a high weight and its can bring to produce to
composition to increase the strength of box.
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Surface of box in two grades for the customer to use in their work as appropriate:
1. Paper grade KS or white paper focus on good image and high quality . It has a
strength and benchmark weight is 170 gram.
2. Paper KC is light brown paper, produce from recycle paper in 100 % to promote
about preserve environment and also look beautiful and strong, can place overlap
together.
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Price
The price is determinant the image for the goods so the company must set the price
follow the cost and profit of company, but the price should not set a highest than market
value and not lowest more than cost, because to keep image and quality of product to make it
worth to buy by the price ,make the price not highest than market value and not lowest if
lowest or highest too much, it will look this product is low quality so if you price is goods,
your customer will trust your brand and have a confident to purchase the product.
Price strategy
- Step 1 Search for the general price of competitor then we got the price of box eachcompany and they have difference price ,so we average price from price of each
product.- Step 2 After we have average price. We set the level of price up to size of our
product.
- Step 3 The price of our product have higher average price because our companyhave more promotion to promote our product, and then we can set price more than
average.
Retail price
Ready-Made Type 0 = 11 x 17 x 6 cm. = 4.7 Bath.
Ready-Made Type A = 14 x 20 x 6 cm. = 5.7 Bath.
Ready-Made Type B = 17 x 25 x 9 cm. = 7.7 Bath.
Ready-Made Type C = 20 x 30 x 11 cm. = 10.7 Bath.
Ready-Made Type D = 22 x 35 x 14 cm. = 14.7 Bath.
Ready-Made Type E = 24 x 40 x 17 cm. = 19.7 Bath.
Ready-Made Type F = 30 x 45 x 20 cm. = 22 Bath.
Normal Carton No.1 = 14 x 20 x 6 cm. = 4.3 Bath.
Normal Carton No.2 = 17 x 25 x 9 cm. = 5.7 Bath.
Normal Carton No.3 = 20 x 30 x 11 cm. = 7.7 Bath.
Normal Carton No.4 = 22 x 35 x 14 cm. = 10.7 Bath.
Normal Carton No.5 = 24 x 40 x 17 cm. = 12.7 Bath.
Normal Carton No.6 = 30 x 45 x 20 cm. = 17.7 Bath.
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Price of advertise in the internet
-cost for hire the programmer for create the website 3-4hundred thousand baht in the
first year.
-cost for rent the website from other server, if don't have own server website (depend
on population of the website that we rent)-cost of remain the website in the next several years around 50,000 baht and renewal
fees 5,000-8,000 baht per years
Place
Industrial Estate Bang Phli, province Samutprakan. So the company choose place to
establish the office is important in