Soul of Beauty Co, LTD

A
Preface
Preface This Project is a part of 1203302 Project Feasibility Study and Evaluation
Course in the second semester of 2010. In this project is studying the feasibility of jewelry
and gem business in Chiang Mai, which is include generally of jewelry and gem business,
management in jewelry and gem business, competition analysis and marketing feasibility, the
technical process in jewelry and gem business, the financial feasibility of jewelry and gem
business, and risk of jewelry and gem business.
This project makes everyone who interested to get knowledge and information about
jewelry and gem business before make decision to investment, including preoperational
process and operation process of jewelry and gem business, for the benefit to investment and
profit of doing this jewelry and gem business.
We expect that our project will provide benefit more and more interested person,
more over, if they are any error in this project or whatever, our ground made an apology at
this opportunity.
Group members
Miss Nattida Bua-ngam

Miss Nartnarin Suksao
Miss Nopphawan Klabdi
Miss Piyaporn Nojit
Miss Ulaikorn Singsook
B

Table of Content
Title Page
Preface.................................................................................................................................... A
Content................................................................................................................................... B
Chapter 1 Introduction............................................................................................................1
1.1 Background and Significance of the project..........................................................2
1.2 Project objectives...................................................................................................2
1.3 Benefits of project................................................................................................. 3
1.4 Operations methods...............................................................................................4
1.5 Time frame of study.............................................................................................. 5
Chapter 2 Industry Profile....................................................................................................... 6
2.1 Nature of Industry................................................................................................. 7
2.2. Situation of Industry........................................................................................... 10
2.3 Product and Service..............................................................................................20
2.3.1 Hand craft............................................................................................. 20
2.3.2 Fashion.................................................................................................. 24
2.3.3 Order......................................................................................................28
2.4 Vision................................................................................................................... 28
2.5 Mission..................................................................................................................28
2.6 Strategy................................................................................................................ 28
2.6.1 Corporate Level......................................................................................28
2.6.2 Business Strategy....................................................................................29
2.6.3 Functional Strategy................................................................................ 29
Chapter 3 Marketing Feasibility Study.................................................................................. 31
3.1 Marketing Analysis..............................................................................................32
3.1.1 General Environment of Chiang mai....................................................32
3.2. General Environment Analysis............................................................................37
3.2.1 Political Analysis..................................................................................37
3.2.2 Economic Analysis...............................................................................43

C

3.3 Competition Analysis........................................................................................49
3.4 Customer Analysis.............................................................................................51
3.5 Competitive Analysis..........................................................................................53
3.6 STP Analysis.......................................................................................................54

3.6.1 Market Segmentation...........................................................................54
3.6.2 Target Analysis....................................................................................55
3.6.3 Position Analysis..................................................................................55
3.7 Marketing Mix Strategy Analysis.......................................................................56
3.7.1 Product strategy...................................................................................56
3.7.2 Price strategy........................................................................................58
3.7.3 Place strategy.......................................................................................62
3.7.4 Promotions strategy.............................................................................62
3.8 Sales Forecast/Profit Estimation........................................................................63
3.9 Marketing Expenses...........................................................................................71
3.10 Conclusion in market feasibility......................................................................73
Chapter 4 Technical Feasibility Study................................................................................75
4.1 Production and Operation Analysis...................................................................76

4.1.1 Product characteristics........................................................................76
4.1.2 Service Process...................................................................................81
4.1.3 Location............................................................................................. 82
4.1.4 Facility Layout................................................................................... 84
4.1.5 Machine/Tools/Equipment..................................................................86
4.1.6 Logistics Management........................................................................97
4.1.7 Machine/Tools/Equipment..................................................................100
4.2 Cost of Investment......................................................................................…..104
4.2.1 Pre- Operating Cost............................................................................104
4.3 Investment Cost................................................................................................ 108

D

4.3.1 Equipments & Tools...........................................................................108

4.3.2 Depreciation.......................................................................................109
4.4 Management Analysis.......................................................................................115
4.4.1 Organization Management.................................................................115
4.4.2 Organization Chart............................................................................ 116
4.4.3 Administration Cost.......................................................................…120
4.5 Technical Feasibility Conclusion......................................................................121
Chapter 5 Financial Analysis...............................................................................................123
5.1 Income Statement............................................................................................. 126
5.2 Balance Sheet....................................................................................................131
5.3 Statement of Cash Flow................................................................................... 136
Chapter 6 Risk Management...............................................................................................142
6.1 Risk analysis.................................................................................................... 143
6.1.1 External Forces...................................................................................143
6.1.2 Internal Forces................................................................................... 148
6.2 Conclusion of Risk Management..................................................... ……….…155
Chapter 7 Summary..............................................................................................................156
7.1 Summary of project feasibility study................................................................ 157
Reference............................................................................................................................ 160
Appendix............................................................................................................................ 161

Chapter 1
Introduction
1
fÉâÄ by Uxtâàç

Chapter 1 Introduction
1.1 Background and Significant of the Project
The word jewelry is derived from the word jewel, which was Anglicized from the Old
French "jouel" circa the 13th century. Further tracing leads back to the Latin word "jocale",
meaning plaything. The first jewelry was worn by the Cro-Magnons, ancestors of Homo
sapiens. Their jewelry included crude necklaces and bracelets made of bone, teeth and stone
stitched to animal sinew. Jewelry was made for practical uses such as pinning of clothes
together. It was used not only for decoration but was also considered as a status symbol.
Jewelry had various functions to serve. Its main purpose, in ancient times, was to ward off
evil. People have paid dowries with jewelry. It was also created to be used as currency for
trading goods, evident from the use of slave beads. It also was a distinguishing mark between
the ruler and the ruled. (www.fashion-era.com/jewellery.htm)
Jewelry making is an old craft that has been in existence since ancient times. Many
centuries men and women both liked to adorn themselves with jewelry items. Thailand in
recent years has extended its range and scope of traditional handicraft products. Thai
handcraft jewelry is saliently because Thailand is famous in handcraft and art. It is special
identity and differentiation and the products which made by handcraft are attract foreigners.
Thai handmade products are now being made to cater for western tastes and to a much higher
western quality. Therefore Soul of Beauty jewelry offer the Thai handcraft jewelry which is
salient, special identity and various designs to customers.
Chiang Mai is center of North, Thailand and has distinguish culture, identity and
traditional. We selected Chiang Mai, Thailand to launch the business because it is important
of tourism industry in Thailand and has much tourist in every year. Moreover, Chiang Mai is
traditions reflect the charm of the region namely diverse dialects, cuisine, handicrafts,
2

festivals and architecture. Therefore Soul of Beauty company try to be combine Lanna art
and jewelry together to design the quality of product and has identity, difficult to copy
because our purchase of genuine handicraft products can really make a difference to some
Thai artisans out in the countryside. Our company reminds in detail of product and neatly
design and customer can preorder and design their own jewelry.
So we are interested in study feasibility jewelry business in Chiang Mai, opportunity
to access the market, risk and barrier and etc.
1.2 Project objective
-To study feasibility of jewelry business
- To study market activities.
- To study trend and situation of jewelry market
- To study finance feasibility
- To study risk analysis and sales forecast of jewelry market.
- To study behaviors of customer
- To study new channel of distributions.
- To study the way to success goal of our business.
1.3 Benefit of project
- To gain more knowledge in jewelry market.
- To know customer behavior and demand of jewelry
- To know about business cycle of jewelry business
- To know about customer demand and the way to satisfy them.
- To get a structure that suitable for jewelry market in Chiang Mai.
- To gain profit from business.
3

1.4 Operating Methods
● Brainstorming to find project and topic
● Collect data and information searching
● Discuss and conclude the business
● To specify business structure and create prominent point for our business
● Discuss about background of business
● Create project objective, benefits and create project time frame.
● Industry profile discussion
● Create Product/Service, Situation mission, Vision and Strategy.
● Discuss about Market Feasibility.
● Create Market Analysis, Marketing Mix, Strategy and Sales Forecast.
● Discuss about Technical Feasibility Study and Financial Analysis.
● Create Production and Operations Analysis, Pre-Operating Cost, Investment Cost,
Operating Cost and management analysis.
● Create Statement, cash flow and balance Sheet
● Create Advertising
● Review all part of project.
● Prepare final report draft
4

1.5 Time frame of study
Operation Method November December January February
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1. Brainstorming to find project and topic
2. Collect data and find information.
3.Discuss and conclusion about our

business
4.To specify business structure and create

prominent point for our business
5.Discuss about background of business
6. Create project objective, benefits and

create project time frame.
7. Discuss industry profile.
8. Create Product/Service, Situation,

Mission, Vision and Strategy.
9. Discuss about Marker Feasibility.
10. Create Market Analysis, Marketing

Mix, Strategy and Sales Forecast.
11. Discuss about Technical Feasibility,

Study and Financial Analysis.
12. Create Production and Operations

Analysis, Pre-Operating Cost, Investment
Cost, Operating Cost and management
analysis.
13. Create Ad.
14. Review all part of project.
15 Prepare draft of final report.

Table 1.1 Time frames, since November 2010 - February 2011
5

Chapter 2
Industry Profile
6

Chapter 2 Industry Profile
2.1 Nature of industry
The word "jewelry" is derived from the Latin word jocale, meaning "plaything," and
the word jewel, which was anglicised during the 13th century from the Old French word
"jouel." The word "jewelry" (spelled jewellery in European English) is used to describe any
piece of precious material (gemstones, noble metals, etc.) used to adorn one's self.
Jewelry making began with the ancestors of Homo sapiens. Over 40,000 years ago the
Cro-Magnons (c. 45,000 BC—10,000 BC) began to migrate from the cradle of civilization in
central Africa to the Middle East, the Indus Valley, and to the continent of Europe. As these
early humans traveled the land they collected objects of curiosity, fashioning them into
jewelry which would tell the story of their journey. The basic form has been used since the
dawn of man, in conjunction with use of both clothing, and tools. The first jewelry was made
from readily available natural materials including animal teeth, bone, various types of shells,
carved stone and wood. It is believed that jewelry started out as a functional item used to
fasten articles of clothing together, and was later adapted for use as an object for purely
aesthetic ornamentation, or for use as a spiritual and religious symbol. Jewelry, like art, is a
window into the soul of humanity, and a poignant reminder of that which separates
humankind from the animal kingdom — a desire to capture the essence of beauty, to posses
its secrets, and to unlock its mysteries. Jewelry was used as a symbol of wealth and status, as
well as to protect against harm, ward of evil, and heal ailments. Jewelry was used by early
man to adorn nearly every part of the human body, and has been made out of almost every
natural material known to mankind.
In jewelry circles today and in the recent past, there are considered only four truly
precious stones: the diamond, the ruby, the emerald and the blue sapphire. Among the earliest
7

known treasures of the pharaohs, emeralds, rubies and
sapphires were seldom used, while turquoise, jasper, lapis
lazuli, carnelian and rock crystal played a substantial role.
Since color was all important, diamonds were quite
unknown. The use of gemstones and precious metals during
this time were not limited, but spread lavishly about
wherever ornament was desired. Moreover, jewelry advanced from a simple ornamental or
amulet stance to a more practical one. It became used as a symbol of rank, wealth and social
standing. When taking on this role, they became an investment of marketable value. This
economic aspect of easily liquidating these possessions became an essential part of the
politics of Europe when Francis I instituted the crown jewels as legal entity. For his
successors these jewels were often used during the religious wars to guarantee foreign loans.
The three basic roles that jewelry has played, the ornament, the amulet and the symbol of
wealth, have remained constant to the present time.
Diamonds
Diamonds are perhaps the most sought after and most valued in all kinds of gemstone
jewelry. A diamond is also the hardest known substance and represent of gemstone of Venus.
Although diamonds are extremely expensive, these are
not exactly rare. This is solely due to the fact that there
are many numbers of diamonds being mined throughout
the year. Of course, large diamonds, which are of a very
high quality, are rare. In the ancient days, diamonds were
known to be as a way of protection for the wearer.
8

Diamonds also remain to be the focal point in most engagement rings. The wearers of
diamond can be saved from ominous things and evil spirits such as witches, ghosts, black
magic and even the effect of poison also decreases. Diamond gemstone increases the stamina
and makes the marital life happy and permanent. Diamond gemstone also improves health,
checks untimely death also. Diamond gemstone is advantageous in diseases like epilepsy,
impotency, rheumatism, shortage of semen and other sexual diseases.(http://crystal-
cure.com/diamond.html)
Ruby
Ruby is a pink to blood-red colored gemstone its color
varies from deep cochineal to pale rose red, in some cases with
a tinge of purple; the most valued is a pigeon-blood red and
also known as the Lord of the Gems. Be it the beauty or the
uniqueness of this gemstone, it has found quite a few admirers
till date. This gemstone is known to symbolize love and
friendship. Some of the finest and most exotic of all rubies are found in Burma.
(http://crystal-cure.com/ruby.html)
Emerald
This green gemstone is popular because of the intense green shade, which lends a
unique kind of a beauty to all types of gemstone jewelry. The
emerald is the sacred stone of the goddess Venus. It was
thought to preserve love, Lucky for love, give your lover an
emerald to stay faithful. In several cultures the emerald was the
symbol for fertilizing rain. In the Christian faith it is the symbol
of faith and hope. It is considered by many to be the stone of
9

prophecy.
For some the emerald acts as a tranquilizer for a troubled
mind. The emerald is said to bring the wearer reason and wisdom.
The strongest time for the powers of the emerald is said to be
spring. One may think the emerald to be a really hard gemstone but
if you own gemstone jewelry set with emeralds, and then does treat
it with care as it may chip easily. Emeralds have been worn since ancient days to cure health
related issues and also as a way to protect one from spells. (http://crystal-
cure.com/emerald.html)
Opals
Opals are available in a variety of options, such as the
common opals, the precious opal etc. The name opal has been
derived from the Latin word Opalus; this symbolizes a change in
color. This is because, opals always sparkle differently in various
angles and this dazzling beauty attracts many to own any
beautiful jewelry that makes use of opals. Although initially, opals were associated with
many stories that kept people away from these gemstones, they later became a symbol of
fidelity and even assurance.
Moreover, opal is said to be many things including the most powerful of healing
stones, the stone of hope, the stone of great achievement and even the "stone of the Gods". It
is said to be the stone of love, but only to faithful lovers. The opal will bring misfortune to an
unfaithful lover.
(http://crystal-cure.com/opal.html)
10


Sapphire
A sapphire means blue in Greek. The blue goes from dark blue almost black to pale
blue. The finest blue sapphires are a strong blue. The star sapphire is very valued. The deep
blue shaded gemstone is also found in other shades but the finest of all sapphires are known
to be those with a shade of blue. Sapphire also remains to be
the choice of many in England as an engagement stone. It is
also believed that the Sapphires were deeply respected by
ancient priests. The sapphire was called the "Stone of
Destiny". Sapphires contribute to mental clarity and
perception. They can promote financial rewards. Moreover, sapphire is the symbol of heaven
and joyful devotion to God. Sapphire is associated with Aquarius, Virgo, Libra and
Capricorn. It is the birthstone of September and has been the birthstone of April. Sapphire is
the symbol of Saturn (dark blue) and Venus (light blue). (http://crystal-
cure.com/sapphire.html)
Aquamarine
Aquamarine is a blue-green stone that comes from Colombia and Brazil. It has been
called "Water of the Sea", because of its color. Aquamarine
is quite popular as it is known to compliment all types of
skins and complexions. Aquamarines can be seen in a
beautiful shade of blue or even green. The name, Aquamarine
is derived from the Latin word, which means seawater.
Aquamarine is most powerful as a meditation stone,
as it brings a great peace and serenity. Some people can meditate on an Aquamarine to
receive the wisdom to see truth, but this is a very advanced meditation. It will protect against
gossip. It is also said the aquamarine will pick up spirits. It is an excellent stone to use for
11


meditating. The Romans used the aquamarine for diseases of the stomach, and believed it
could cure liver and throat troubles.
(http://crystal-cure.com/aquamarine.html)
Turquoise
Turquoise is an opaque, blue-to-green mineral
that is a hydrous phosphate of copper and aluminum. It
is rare and valuable in finer grades and has been prized
as a gem and ornamental stone for thousands of years
owing to its unique hue. Turquoise is one of the oldest
protection amulets, and was also known as a symbol of
wealth in many ancient cultures.
Turquoise is a stone that has been prized for many years. The
ancient Egyptians used turquoise in jewelry. The name means "Turkish stone" as it came to
Europe by way of Turkey. Turquoise was mined more than 6,000 years ago in Sinai. The best
turquoise comes from Iran, but not much is exported now. Much turquoise comes from
Mexico and the United States today.
This stone is a very personal and meaningful stone to one who wears it. Turquoise
takes on the characteristics of the owner. Turquoise carries
great wisdom of basic truth within it. It is one of the oldest
stones known. This is a stone that a person must learn to
attune to instead of the stone attuning to the person. It is
important that the owner of a Turquoise give it the proper
12


attention. If given a turquoise by a loving friend, that stone would protect the wearer from
negative energy and bring good fortune. The turquoise is the symbol of friendship. It also
brings peace to the home. (http://crystal-cure.com/turquoise.html)
Topaz
Topaz occurs in a range of different colors: deep golden
yellow (Imperial Topaz), blue, light to medium brown
(Champagne Topaz), pink, and white, or clear topaz. It can be
found in Brazil, USA, Sri Lanka, Myanmar, former USSR,
Australia, Tasmania, Pakistan, Mexico, Japan and Africa. Topaz
is a soothing, empathetic stone that will direct energy to the
place it is most needed. It heals and energizes. Topaz is a promoter of truth and forgiveness.
Use it to find your own path. (http://crystal-cure.com/topaz.html)
Garnet
Garnets are a related group of minerals. Members of this group include: almandine
(red to violet red); spessartite (yellow, rose, or orange to reddish-brown); pyrope (deep red);
grossular (white, yellow, yellow-green, and brownish-red,
orange or black); andradite (colorless, yellow-green, or brown
to black). The most prized garnet is an emerald green variety
called demantoid and is a member of the andradite group.
Currently, the world's largest supply of garnets is the continent
of Africa. In December 1996, a student in Central Australia
discovered what is thought to be the largest single garnet ever found - measuring nearly one
hundred feet across! Other sources of garnet include India, Soviet Union, Brazil and the
United States. A garnet is known as the stone for a successful business. If your business is
13


not as good as it should be, just put 3 or more garnets on your
desk. It is believed that if a garnet is put under a pillow it will
cure depression. Garnets can be used to make a person popular
and have self-esteem when worn as jewelry. It helps protect one
on trips. Garnets bring constancy to friendships. Garnets are also
known for stimulating success in business. (http://crystal-cure.com/garnet.html)
Amethyst
Crystalline quartz in shades of purple, lilac or
mauve is called amethyst, a stone traditionally worn to
guard against darkness and to instill a sober mind. The
word amethyst comes from the Greek meaning "without
drunkenness" and amethyst is believed to protect one from
poison. It is used as a dream stone and to help insomnia.
Put an amethyst under your pillow to bring about pleasant dreams, or rub it across your
forehead to offer relief from a headache.
The amethyst is known as the Bishop's Stone and is still worn by Catholic Bishops.
The amethyst symbolizes piety, humility, sincerity and spiritual wisdom. It is thought the
amethyst is the perfect stone to symbolize The Age of Aquarius. (http://crystal-
cure.com/amethyst.html)
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2.2 Situation of industry
Nowadays, there are many jewelry businesses in Thailand. Those do for export and
sale in the country. Jewelry has many price ranges depend on material, quality and design.
Jewelry’s Thailand made from gems, color stones, pearl and zirconium so customer can
choose as needed. Customers buy jewelry for wearing or colleting. Design of jewelry is
important to attract customer’s want but depend on preference of each individual too. Design
of jewelry for male is different female. Jewelry shop must be having many design of jewelry
if other shops have more design that is attract customers to buying. In this business trusting is
important because most customers are concern about quality. They thing when they pay too
much, they want to get high value. Many companies try hardly to create their own strategies
to compete with each other such as competition in price, quality of service and the special
promotion in discount or premium to motivate the customers and after-sales service.
(Source:http://www.manager.co.th/SMEs/ViewNews.aspx?NewsID=9530000168902,
http://www.gotomanager.com/news/details.aspx?id=49902)
When business about jewelry import material from another country to made Jewelry,
the business isn’t pay for VAT because Thailand has exemption of VAT for import jewelry to
driving toward to center of strong Thai gems and jewelry.
(Source: http://news.impaqmsn.com/articles.aspx?id=275187&ch=ec1)
Export value of Thailand is 304,361,845,140.00 baths and Import value is
294,710,817,092.00 baths in 2010 that is higher from 2009 so Jewelry business in Thailand is
grown continuously in future. (Source: http://gemandjewelrydb.git.or.th/gem/home.asp)
15


Thailand Export Statistics
HS 71 : Gem & Jewelry
January-October , 2009 to 2010
2009 2010 Change

No. Product
Value (Baht) % Value (Baht) % (%)
1 Pearls 266,175,299.00 0.09 394,309,510.00 0.13 48.14
2 Diamonds 22,376,999,413.00 7.43 28,934,451,830.00 9.51 29.30
Precious Stones
3 and Semi-Precious 12,101,929,012.00 4.02 13,075,337,850.00 4.30 8.04
Stones
Synthetic or
Reconstructed
4 1,727,025,343.00 0.57 2,108,381,177.00 0.69 22.08
Precious and Semi-
Precious Stones
Dust and Powder of
Natural or
5 Synthetic Precious 16,638,033.00 0.01 8,406,159.00 0.00 -49.48
or Semi-Precious
Stones
Total 36,488,767,100.00 12.12 44,520,886,526.00 14.63 22.01
6 Silver 1,359,277,070.00 0.45 287,908,917.00 0.09 -78.82
Base Metals clad
with Silver, not
7 343,571.00 0.00 0.00 0.00 -100.00
further worked than
semi-manufactured
8 Gold 185,144,520,369.00 61.50 169,220,676,271.00 55.60 -8.60
Base Metals or
Silver, clad with
9 Gold, not further 5,459,070.00 0.00 4,546,717.00 0.00 -16.71
worked than semi-
manufactured
10 Platinum 56,995,548.00 0.02 79,718,699.00 0.03 39.87
Base Metals, silver
11 or gold , clad with 7,587,051.00 0.00 1,154,531.00 0.00 -84.78
Platinum
12 Waste and Scrap 644,937,651.00 0.21 675,362,350.00 0.22 4.72
Total 187,219,120,330.00 62.18 170,269,367,485.00 55.94 -9.05
13 Articles of Jewelry 70,133,275,185.00 23.30 81,263,993,724.00 26.70 15.87

Article of
14 359,384,534.00 0.12 313,617,068.00 0.10 -12.73
Goldsmiths' or
16


Silversmiths'
Wares and Parts
Other Articles of
Precious Metal or
15 586,827,109.00 0.19 187,564,542.00 0.06 -68.04
of Metal clad with
Precious Metal
Articles of Natural
or Cultured Pearls,
16 177,131,923.00 0.06 201,923,813.00 0.07 14.00
Precious or Semi-
Precious Stones
17 Imitation Jewelry 6,025,911,013.00 2.00 7,585,843,333.00 2.49 25.89
18 Coin 36,903,884.00 0.01 18,648,649.00 0.01 -49.47
Total 77,319,433,648.00 25.68 89,571,591,129.00 29.43 15.85
Grand Total 301,027,321,078.00 100.00 304,361,845,140.00 100.00 1.11
Table 2.1 Thailand Export Statistics
(Source: GIT with collaboration of Thai Customs Department)
Thailand Import Statistics
HS 71 : Gem & Jewelry January-October , 2009 to 2010
2009 2010 Change

No. Product
Value (Baht) % Value (Baht) % (%)
Pearls
1 448,138,194.00 0.30 510,696,740.00 0.17 13.96
Diamonds
2 23,482,227,532.00 15.52 22,325,126,036.00 7.58 -4.93
Precious Stones and Semi-
3 Precious Stones 7,184,400,536.00 4.75 7,819,439,904.00 2.65 8.84
Synthetic or Reconstructed
Precious and Semi-Precious
4 1,489,279,230.00 0.98 1,820,194,073.00 0.62 22.22
Stones
Dust and Powder of Natural or

Synthetic Precious or Semi-
5 100,150,262.00 0.07 181,338,310.00 0.06 81.07
Precious Stones
Total 32,704,195,754.00 21.62 32,656,795,063.00 11.08 -0.14

Silver
6 14,365,849,094.00 9.49 19,929,112,206.00 6.76 38.73
Base Metals clad with Silver,
not further worked than semi-
7 1,214,285.00 0.00 3,867,450.00 0.00 218.50
manufactured
Gold
8 86,200,233,066.00 56.97 223,185,995,299.00 75.73 158.92
17


Base Metals or Silver, clad
with Gold, not further worked
9 658,393.00 0.00 10,956,004.00 0.00 1,564.05
than semi-manufactured
Platinum
10 650,570,133.00 0.43 1,105,528,492.00 0.38 69.93
Base Metals, silver or gold ,
11 clad with Platinum 7,835.00 0.00 126,673.00 0.00 1,516.76
Waste and Scrap
12 3,266,896.00 0.00 654,817.00 0.00 -79.96
Total 101,221,799,702.00 66.89 244,236,240,941.00 82.87 141.29
Articles of Jewelry
13 15,168,644,057.00 10.02 15,316,077,102.00 5.20 0.97
Article of Goldsmiths' or
14 Silversmiths' Wares and Parts 76,693,743.00 0.05 68,776,484.00 0.02 -10.32
Other Articles of Precious
Metal or of Metal clad with
15 934,111,306.00 0.62 1,135,203,877.00 0.39 21.53
Precious Metal
Articles of Natural or Cultured

Pearls, Precious or Semi-
16 106,189,994.00 0.07 113,822,593.00 0.04 7.19
Precious Stones
Imitation Jewelry
17 612,825,876.00 0.41 780,415,026.00 0.26 27.35
Coin
18 484,419,942.00 0.32 403,486,006.00 0.14 -16.71
Total 17,382,884,918.00 11.49 17,817,781,088.00 6.05 2.50
Grand Total 151,308,880,374.00 100.00 294,710,817,092.00 100.00 94.77
Table 2.2 Thailand Import Statistics
Thailand have exhibition for sale jewelry every years that is Bangkok Thai gems &
jewelry fair. There are many jewelry shops. Customers can choose much jewelry such as
peals, gems, and color stones. This event held for stimulate jewelry sales in Thailand.
(Source:http://www.git.or.th/thai/news/events/2010/09_september/event_20100911.html)
18


First prize for Vol.1 hot 2009 and 2010
A survey of the latest industry jewelry that silver jewelry is a product sold best during
the economic downturn and the price of gold higher, while this respect, the survey found that
sales of silver is increasing in the last 3 years. Expected in 2011, Silver jewelry would still
sell well because of silver jewelry is lower price of gold and diamonds jewelry. Products with
new format are particularly popular with teenagers. Silver jewelry containing pearl,
zirconium and beads are popular and Vendor jewelry more recently in small time. The
competition between the retail sales increases. (Source: http://www.depthai.go.th Dec, 1,
2010, http://www.ryt9.com/s/expd/1040150)
Chiang Mai is the economic center of the Upper North. Therefore, it has several
advantages of geographic location with an area of contact with neighboring countries. Ease of
moving goods transportation growth of several types of business hotel, restaurant, Jewelry
19


and others these reflects the overall availability of commercial development in the future.
Chiang Mai has potential to earn the support of travel abroad to travel to throughout the years
in business, jewelry in Chiang Mai is the competition is quite high because it is a tourist
destination of tourists coming through and has the capacity to purchase high. Allowing
operators have increased rapidly as well.
(Source: http://gotoknow.org/blog/export/111495?class=yuimenuitemlabel)
2.3 Product and Service
There are 3 main product of our company, which are hand craft, fashion and order. In
each type of product we design in various styles such as necklace, bracelet, ring, and earring
2.3.1 Hand craft
Product deign neatly by using handmade under the concept of Lan-na or Thai design
to conserve concept of Lan-na and Thai style
• Necklace
20


• Bracelet
21


• Earring
22


• Ring
23


2.3.2 Fashion
Fashion design contemporary product. We design product in modern style. Most of
this product we serve to teenager or group of customer who love to be the modern style.
These products decorate by modern material.
• Necklace
24


• Bracelet
25


• Earring
26


• Ring
27


2.3.3 Order
This type of product is customer can design product by them self. The company
concern on satisfy of customer need the pre-order product our designer will help the customer
design what they want.
2.4 Mission
Our company focuses on customer; we offer honest service, the best in jewelry
selection and takes great inspiration from the indigenous cultures found throughout the north
of Thailand attention to detail and respect for the highest standards in all activities of the
company.
2.5 Vision
“Brings the place where dreams come alive throughout our jewelry‘s designs,
Combined the modern style and soul of indigenous cultures style for the best classic beauty.
You can touch the value we deliver.”
2.6 Strategy
2.6.1 Corporate Strategy
Soul of beauty is a new jewelry shop in Kalare Night Bazaar Chaing Mai. Our
company wants to be a well know in jewelry business so we choose best strategy for ultimate
success. In Corporate Level Strategy, we decide to use Concentration Strategy because our
company is a new business we need to maintain existing customers, create new product to
increase sale and expand the market widely to increase a new customer. In the future, if Soul
of beauty have strong customer base, we try to use Backward Strategy that we own design
and produce by our company without Third Party Company.
28


2.6.2 Business Strategy
Soul and Beauty is a new brand in the market so we need to create the differentiation
and build brand identity to make the customer remember our brand “Soul of Beauty”. We
need to improve capability in creativity and up to date design of fashion. From the survey we
found the most jewelry shop in Thailand is small size and number, because there are few
jewelry manufactures in Thailand. Almost jewelry’s price in the market is not different, so it
makes us to select Focused Differentiation for our Business Strategy because we have only
one shop in Chiang Mai province, this is specific place and we serve the best quality product
to our customers.
2.6.3 Function Level
Marketing Mix Strategy
• Product
-Building brand and logo which salient and easy to remember
-Product is a high quality and high standard
-Customer can design jewelry individually
-Product guaranteeing
• Prices
-We use cost based pricing strategy because we set the prices from the cost.
- Skimming price strategy because our product is a high quality jewelry and emphasis on
luxury.
• Place
We select Kalare Night Bazaar Chiang Mai location because this place is shopping
bazaar with a unique combination of cultural- performances open and it is a center of Thai
and foreigner Tourists with high purchasing power. Most customers will buy as souvenirs.
29


• Promotion
-Advertising in Tour Guide Magazine
-Brochure
-Bill board
-Customers can clean jewelry free.
--In festival we have promotions such as free gifts warping.
-Couple ring discount
• Human Resources Strategies
We emphasize to salesperson performance because they can influence customer
decision, they need to develop themselves all the time, grooming, appearance, speech, service
mind and etc. for satisfy customer, make customer impressive and increase the sale volume.
There are many reasons that we select this strategy;
1. Training and repeating all staffs to be always ready to work.
2. Motivating salesperson by high commission.
3. Salesperson can speak several languages.
• Financial Strategy
We have financial strategies to analyze revenue, company expense, and operation by
consider form all financial resource.
1. Provide the financial management to improve circulation in business every month.
2. Making shop account.
3. Financial must be clear.
4. Analyzing financial situation and planning to reduce financial risk
30


Chapter 3 Market
Feasibility Study
31


Chapter 3 Market Feasibility Study
3.1 General information of Chiang Mai
Figure 3.1 the symbol of Chiang Mai
• Location
Chiang Mai valley averages 310 metres (1,027 feet) above
sea level, and the province covers 20,107 square kilometres
(12,566,910 rai). The widest point of the province measures 136
kilometres (85 miles), and the longest 320 kilometres (200miles).
To the north, a 227 kilometre (141.88 miles) stretch of
mountains divides Chiang Mai's northern districts of Fang and Mae
Ai from the region around Kengtung in the Shan State of Myanmar (Burma). On the east,
Chiang Mai is bordered by Chiang Rai, Lampang and Lamphun provinces. The Mae Tuen
River, Ream Mountains and Luang Mountains separate Chiang Mai's south from the province
of Tak. Some stretches of Chiang Mai's south also border Lamphun province. To the west,
Chiang Mai is bordered by Mae Hong Son province.
• Geography
Chiang Mai province is about 700 km from Bangkok and is situated on the Mae Ping
River basin and is 300 m above sea level. Surrounded by high mountain ranges, it covers an
32


area of approximately 20,107 km². The district is covered by many mountains, chiefly
stretching in the south-north direction. The river Ping, one of the major tributaries of the
Chao Phraya River,originates in the Chiang Dao mountains. The highest mountain of
Thailand, the 2,565 meter high Doi Inthanon, is located in the province. Several national
parks are in the district: Doi Inthanon, Doi Suthep-Pui, Mae Ping, Sri Lanna, Huay Nam
Dang, Mae Phang, Chiang Dao.
The mountainous terrain is mainly jungle, parts of which are within national parks
which are still fertile and verdant with plentiful flora and fauna. There are many sites and
locations where tourists prefer to visit to study the lifestyle of the tribal people who live on
high hills.
• Population
As of December 2004, Chiang Mai has a population of 1,603,220. (790,107 males and
813,113 females) The average population density is 80 inhabitants per square kilometer and
the total number of households is 551,696.
There are 1,251 villages of highland communities scattered across many districts in
Chiang Mai, making up 70,820 households or 312,447 inhabitants. The majority of them are
from 13 ethnic backgrounds including Karen, Musoe, Hmong, Leesaw, Akha, Yao, Lua,
Chinese, Burmese, Palong, Tai Yai and Tai Lue. The majority of people living in Chiang Mai
are Buddhist (around 91.8%). 1.17% of people are Muslim, 5.6% Christian, and 0.02%
Brahmin, Hindu or Sikh. 1.41% subscribe to other religions and beliefs.
33


• Education
Some cities seem to have been created to be seats of learning - ideal places both for
teachers and students. Chiang Mai is such a city.
Chiang Mai is home to six universities,
Buddhist and Christian seminaries, technical colleges,
six international schools and one German one, a large
university teaching hospital and several private ones,
some with nursing schools. There are also many private language schools as well as the
AUA, the British Council, Australian and New Zealand centers and the Alliance Françoise.
All this means that there are many opportunities for native English language
teachers, especially if they have a university degree and teaching qualifications. The many
Thai schools are hungry to employ English teachers.
The international schools cater for the children of expatriates living in Thailand and
are increasingly attracting Thai children and those from neighboring countries, whose parents
want them to be educated in English. Universities are offering more and more courses in
English and are anxious to establish exchange programs for overseas students and lecturers.
All this activity results in a stimulating environment - students exchanging ideas at the
food stalls around the university or picnicking beside the lake at the foot of the mountain;
English teachers relaxing after a hard day's work in the quiet bars and restaurants along the
banks of the River Ping.
In the age of cyberspace and satellite dishes, Chiang Mai, only one hour's flight from
Bangkok, is no longer an isolated outpost. It is, in fact, a regional centre of communications,
the gateway to Burma, Laos and southern China.
Chiang Mai is a safe, healthy and stimulating place for students and a low cost,
34


convenient and idyllic heaven for teachers.
Six years of primary education are compulsory and free for all Thai children, although
there are certain small expenses for uniforms, books and writing materials. Some children fall
through the net either because their parents can not afford even these expenses, because they
live far from any school or because they do not have Thai citizenship.
There is government and private charity scholarships that help poorer children
complete their secondary education. Many of the schools in Chiang Mai are excellent - four
of the best were founded by Christian missionaries, although there is no religious pressure on
the children. Universities, technical colleges and vocational schools offer a wide range of
subjects for those who wish or are able to go on to further education. Fees are not high but are
still out of the reach of many, but again there are government and private charity
scholarships.
Basic Infrastructures
• Transportation
By Car
Take Highway No. 1 (Phahonyothin Road) and turn to Highway No. 32 (Asia Highway)
passing Ayutthaya, Angthong, Nakhon Sawan, then by Highway No. 11, from Tak,
Lampang, Lamphun to Chiang Mai: a distance of 696 kilometres or 9 - 10 hours.
By Rail
Express and rapid trains leave for Chiang Mai from
Hualamphong Station several times daily and the trip takes
about 12 - 15 hours depending on the class. It is
recommended to reserve seats in advance, especially for
35


sleepers.
For further information please contact Tel. 0 2220 4334 or call 1690 or visit
www.railway.co.th Chiang Mai Railway Station Tel. 0 5324 2094
By Air
Chiang Mai International Airport is the center for air
travel in the north and is the second largest airport in Thailand
after Bangkok International Airport. It is the main airport in the
Northern Region and the hub for inter provincial flights from
other regions, as well as international flights from other countries in Asia and Europe.
• Infrastructure
Electricity
Electricity service in Chiang Mai province is provided in 22 districts, 2 sub-districts
and 1,892 villages, comprising 92.61% of all villages. Villages without electricity are located
in jungles, forest conservation areas and national parks. In 2004 there were 496,448
electricity consumers, a 10.98% increase on the preceding year. Total electricity consumption
in the province was 1, 630. 46 million units, a 7.11% increase on the year before. The major
consumer of electricity is offices and factories, using 878.99 million kilowatts per hour,
followed by residential users, government offices and public utilities using 621.24, 100.60
and 29.63 million kilowatts per hour respectively.
36


Water
There are 7 waterworks in the province capable of producing 49,546,800 cubic meters
of water per year. In 2004, total water production was around 32,644,289 cubic meters. There
were 76,939 consumers of mains water, an increase of 5,710 consumers over the preceding
year.
Telecommunications
In 2004 there were 251,501 fixed telephone lines in the province; an increase of 9,780
lines over the previous year is total of 211,405 lines. The ratio of telephone lines to
inhabitants is 1:6.
(Source: www.chingmaiinfo.com; www.cmcity.go.th )
3.2. General Environment Analysis
It consists of the actors and forces outside marketing that affect marketing
management’s ability to build and opportunities and threats to our business.
3.2.1 Political Analysis
Political situation is directly affect to the jewelry market in Thailand because the
demand of product depend on tourist and power purchasing and two factor will decrease if
political not stability.
Political situation of Thailand in presently is the lack of stability. That factor affects to
demand of product and the purchasing power because the customers have more concerning
about spending and choosing products or services. In domestic market is people worry about
stability that make they reduce unnecessary spending such as unnecessary product, traveling
37


that make our value sale and profit decrease. In traveler market is directly affect about
political problem because if political not stability they may change their minds and travel to
other countries they see as more peaceful and safety. So revenue from this target market will
be losing.
• Thailand: Tourist Arrivals from 1998 till 2010. Quarterly Data 2007-2010
International arrivals to Thailand from 1998 to 2009 show a significant rise from
1998 onwards. There are significant dips with the SARS epidemic, and after the Tsunami of
end 2004.
From end 2008 political events in Thailand have influenced tourist arrivals. While
total number of arrivals in 2009 was only mildly down on the year before, the tourist industry
surely had expected more revenue. Probably a potential additional number of 1 to 2 million
visitors elected not to come to Thailand.
Both the Office of Tourism Development and the National Economic and Social
Development Board (NSDB) provide arrival statistics, though not always timely or easy to
find. We almost accidentally found the best updated files eventually on the Office of Tourism
Development website (follow the little banner on the left saying: Tourism Statistics, on this
otherwise Thai language website).
Since somewhere in the middle of 2008 a severe worldwide recession dampened the
desire to travel. Thailand furthermore suffered from political instability, starting with the
closure of Suvarnabhumi Airport (26 november 2008, by the Yellow Shirts protesters). A
Red Shirt mob invaded the East Asia Summit in Pattaya on 11 April 2009, leading to a
cancellation of the summit, with world leaders scurried away to safety. This was followed by
violent riots the next day (during Songkhran) and the declaration of a state of emergency by
38


Prime Minister Abhisit Vejjajiva. The protesters withdrew and the state of emergency was
lifted on 24 April.
On top of all that, flu cases emerged in March and April of 2009 in Mexico, with the
official first announcement of the new H1N1 flu on 23 April. On 12 May, it was made public
by Health Minister Witthaya Kaewparadai that two Thais who returned from Mexico had
been infected with swine and subsequently recovered. Fortunately while infections became
epidemic, the resulting health risk of H1N1 infection proved to be less serious than expected
by some.
The graph below shows the evolution of international visitors to Thailand between
1998 and 2009. We made the graph but the data come from the Tourism Authority of
Thailand.
Despite the serious disturbances in April 2009, tourism arrivals for the whole year
were only mildly affected, with a significant upturn (+28%) in the last quarter of 2009, when
compared to the last quarter of 2010. The first quarter of 2010 was very promising, but
serious demonstrations by the Red Shirts happened in April and May 2010, with serious
repercussions for arrivals in the second quarter of 2010.
39


Figure: 3..2 Tourist Arrivals
A from
m 1998 till 2010.
2 Quarrterly Data 22007-2010
In the recennt past, bothh SARS in early

e 2003, and the Tsuunami of Deecember 200
04, had
significcant effects on
o the numbber of internnational arrrivals. Bird flu
f also emeerged at thee
beginniing of 2004 in Thailandd and probabbly with thee Tsunami, caused a deecreased num
mber of
visitors in the 20044-2005 perioods. The chhart otherwisse shows thhe number oof arrivals stteadily
increasiing to more than 14 miillion in 20008. This may

y seem a lot, but quite a few counttries in
Europe (and also China)

C receive many more visitors.
• ndustry in Thailand
Tourism In
Thailand's tourism
t inddustry makes up about 6.5
6 percent of the counntry's GDP. When
seeing the
t number of tourists, and the num
mber of tou
urist destinattions and hootels, one would
w
actuallyy expect a more

m substanntial pertainn of GDP. But
B Thailandd's tourism iindustry, wh
hile
very vissible, bringss in much leess money than

t other seervice indusstries, and ccertainly lesss than
its manuufacturing industry.

i
Neverthheless, interrnational vissitors spent more than 547

5 billion baht (sometthing like 16
U Dollarrs) in 2008. The averagge length of stay per touurist in 20077 was 9 day
billion U.S. ys.
40

f by Uxttâàç
fÉâÄ

Interestingly, the tourism sector does not only depend on foreign visitors. The number
of domestic tourists actually dwarfs the number of foreign tourists. But domestic tourists
(mostly Thais) do spend much less per day and their trips are shorter, on average two days
and a half. In 2007 there were reportedly more than 83 million in-country travel trips. This
created 380 billion baht in revenue.
Average daily expenditure was around 1770 baht per person in 2007 (as compared to 4120
baht per person for international tourism).
In 2008, 52.37 % of international tourists were East Asian, with Malaysia and Japan
providing the most visitors. Close to two million Malaysians visited Thailand. We assume
they take short trips over the Thai-Malaysian border, and we think the number of Malaysian
visitors, unduly inflates the total number of international visitors.
Europeans provided close to 4 million visitors in 2008, about 27.22 % of the total. The
number of visitors from the Americas, South Asia and Africa, is much smaller. However,
close to 700,000 Australians visited Thailand, which is actually an enormous number, when
taking the total population of Australia into account. The downturn in the second quarter of
2009 was expected by the prime minister (as reported in April 2009) to cost the country
something like 4 billion U.S. Dollar.
Arrivals from 2007 to 2010 per quarter
The number of tourist arrivals in the first quarter and second quarter of 2009 were 3.64
million and 2.96 million respectively. These figures were lower than during the first 2
quarters of 2007 or 2008. In the third quarter of 2009 we see that the number of visitors is
similar to the number of visitors in both 2007 and 2008, suggesting that the worst was over.
In the 4th quarter of 2009, we saw more arrivals than in 2007 and 2008. See the yellow line
crossing over in the graph below.
41


The first quarter of 2010 saw a significant increase of tourist arrivals, especially in January
and February.
Related to the political disturbances during April and May 2010, the second quarter
arrivals of 2010 were low (but not much lower than in the second quarter of 2009, which also
was characterized by riots and demonstrations. However, tourism rebounded strongly during
the third quarter of 2010, with arrivals higher than in any of the preceding years.
The surge in arrivals in the last quarter of 2009 and the first quarter of 2010 shows the
potential of the Thai tourism industry for sustained growth. However arrivals in both the
second quarter of 2009 and the second quarter of 2010 show the influence of political riots
and uncertainty. We figure that Thailand missed out on in between 1 and 2 million potential
extra visitors in both 2009 and 2010.
It is interesting to know that negative factors (the same happened with the various flu
scares) seem to loose influence in just 2 to 3 months each time, with visitors resuming their
interest in Thailand as a tourist destination.
42


Dates of
o political unrest:
2009: most negative

n evvents 11-122 April 20
010: most negative
n eveents: 19 Ma
ay
Figure: 3.3
3 Arrivalss from 2007
7 to 2010 peer quarter
Office of nt) (http://w
o Tourism Developmen
D www.thaiweb ourism.asp)
bsites.com/to
3.2.2 Economic Analyysis
The movem
ment of jeweelry businesss is direct variation
v byy the econom
mic crisis which
w
the sam
me other bussinesses. So,, the jewelryy business will
w grow down if the eeconomic faall,
while jeewelry businness will grrow up if thee economicc rise becausse customerrs believe th
hat
factor affect
a in theyy life. So, thhe power puurchase of consumer
c w be relateed by economic
will
situation. This probblem is not only Thai, but

b also inccluding foreigners who is tourist ass
importaant target market.

m But more
m over, Thai
T econom
my in 2011 is forecasteed to grow at
a the
43

f by Uxttâàç
fÉâÄ

normal rate of 4.5 percent. This is great opportunity about increasing revenues and our
business growth.
• Economic Growth
Thai economy in 2011 is forecasted to grow at the normal rate of 4.5 percent per year
(or within the range of 4.0–5.0 percent per year). The main driver contributed to this growth
is domestic spending, both consumption and investment, which are projected to continue to
grow from 2010. Private consumption is forecasted to grow at 4.2 percent per year (or within
the range of 3.7–4.7 percent per year) as consumer confidence would pick up following an
ease in political tension. Private investment on the other hand is projected to grow at 5.9
percent per year (or within the range of 4.9–6.9 percent per year), with improving investor
confidence combined with higher capital utilization especially in export-oriented industry that
has stood high since 2010. Furthermore, the momentum from the persistent global economic
growth would also help supporting the growth of export of goods and services at the
projected rate of 5.4 percent per year (or within the range of 4.9–5.9 percent per year). This
high rate is however lower than in 2010 due to high base. Import volume of goods and
services is expected to grow at 8.3 percent per year (or within the range of 7.3–9.3 percent
per year). On the public spending side, public consumption is forecasted to grow at 6.4
percent per year (or within the range of 7.3–9.3), follows the constant budget disbursement in
2011. Public capital expenditure growth, on the other hand, is projected to slow down to 1.7
percentper year (or within the range of 0.7–2.7 percent per year) as the role of government in
supporting the economy begins to subside in the time when private sector is fully functioning
in driving the economy forward.
44


Figure: 3.4 Forecasted Economic Growth in year 2011
• Economic Stability
Economic Stability On the internal stability, headline inflation in 2011 is
projected to stand at 3.5 percent per year (or within the range of 3.0–4.0 percent per
year), given oil price is still expected to remain steadily high. Unemployment is
forecasted to stand at the normal rate of 1.2 percent of total labor force (or within the
range of 1.1–1.3 percent of total labor force). On the external front, in 2011 Thailand
is projected to record a smaller current account surplus of 11.9 billion US Dollars,
equivalent to 3.4 percent of GDP (or within the range of 2.9–3.9 percent of GDP), as
trade surplus is expected to drop to 9.4 billion US Dollars (or within the range of 8.4 –
10.4 billion US Dollars). This is due to import growth which is expected to outweigh
export growth. More specifically, import value of goods is expected to grow at 13.2
percent per year (or within the range of 11.7–14.7 percent per year), while export
45


value of goods is forecasted to grow at 12.0 percent per year (or within the range of
11.0–13.0 percent per year).
Figure: 3.5 Inflation Rate in year 2011
(Source:http://www.fpo.go.th/FPO/index2.php?mod=Content&file=contentview&contentID=CNT00
06204&categoryID=CAT0000028)
• Social and Environment Analysis
Social includes the belief, value, and attitude of person in the social. The social is
reflected by culture, education, religious, and other social environments of other social. The
social condition is continuously changed because of person in the social need to control and
adapt you with the environment. When the social condition is changed, the need of person is
also changed such as dressing, hobby, even requirement of goods and service.
46


Women and jewelry belong together for a long time ago, but not for only beauty or
attract the eyes only. But people believe it has hidden power of each type of gem stone or
jewelry .Especially in ancient time people believe gemstone cloud empower they lives and
rise they fortunes, as well as prevent them from any dangers and sickness. And represent love
for couple and has been used to denote status. All of things cloud add-value for our product
and attach customer so, it is opportunity for our business.
Figure 3.6: Nine star glittering gemstones
47


Figure 3.7: The myth of gemstone
Figure 3.8: Birthstone
48


3.3 Competition Analysis
• Competitor
For the jewelry business, it has some competition. The competitors in the market try
to create their own identities for their brands and trust for customer. By emphasize the quality
of products and services and design of product. And tries hardly to create and design of
product. They are all having many interesting and attractive design and concern identity of
product to promote their brands. Most of our competitors have good locations and many of
them are the stores which were opened for a long time. So, they are well known for market
and customer’s want because of their have more experiences.
Five Force Model for Jewellery Industry
POTENTIAL
NEW ENTRY
INDUSTRY COMPETITORS
SUPPLIER BUYERS
RIVARY AMONG EXISTING

FIRMS
SUBSTITUTES
Figure 3.9: five force model
- Rivalry among existing competitors: Strong
• Slow market growth
• Sales highly fragmented among locally owned jewelry stores, retail jewelry store
chains.
49


• Jewelry product has demand always since the part to present.
• Jewelry product not only accessory but collectible.
- Bargaining Power of Suppliers High
• In jewelry industry the suppliers in domestic not much and more of supply produce
for export.
• The suppliers in other country have more barriers to check grade of gemstone.
• Few Alternatives of cutting & polishing.
• In jewelry industry skilled labor is lack because they much have more experience in
this job.
• Bargaining power of supply is enhanced because Thai’s gemstone is famous and have
more demand form domestic market and international market
- Bargaining Power of Buyers Medium
• Divided in two types 1. Domestic buyers & 2. Foreign buyers
• Consumers can choose from many jewelry retailers if they are not satisfied
• Bargaining power of buyers is more because jewelry is high price product, so they
spend a lot of time and want satisfy service for make decision.
- Threat of Substitutes: Low
• Jewelry is value-product and less some product can be substitutes.
• Status and standard of living increase so demand is increasing at high rate.
- Barriers to entry Medium
• High capital investment
50


• Skilled manpower is essential
• Existing jewelry retailers well know into international areas of business.
3.4 Customer Analysis
Ministry of Tourism and Sports,Thailand
Accommodation Establishments at Tourist Attraction (Hotels,Guesthouses,Resorts) in Thailand 2010

(January - March)
Accommodation Guest Arrivals at Accommodation
Establishments
at Tourist Attraction in Thai Foreigners Total
Thailand
2010 2009 2010 2009 2010 2009
∆(%) ∆(%) ∆(%)
Total 1,558,2 1,586,6 - 545,9 425,6 + 2,104,1 2,012,2 +
24 67 1.79 03 15 28.26 27 82 4.56
Kampaengphet - 867 2,040 - 30,985 52,584 -
30,118 50,544 40.41 57.50 41.08
Chiangrai + 56,09 44,02 + 240,53 207,31 +
184,433 163,283 12.95 8 9 27.41 1 2 16.02
Chiangmai - 368,0 271,6 + 658,12 682,90 -
290,026 411,212 29.47 94 93 35.48 0 5 3.63
Tak - 5,043 5,654 - 136,92 195,88 -
131,880 190,227 30.67 10.81 3 1 30.10

(April-June)
Establishments
Thailand
2010 2009 2010 2009 2010 2009
∆(%) ∆(%) ∆(%)
Total 1,299,6 1,366,1 - 254,2 311,3 - 1,553,8 1,677,5 -
55 90 4.87 43 76 18.35 98 66 7.37
Kampaengphet 29,909 23,109 + 1,035 1,468 - 30,944 24,577 +
29.42 29.48 25.91
Chiangrai 134,75 142,28 - 19,89 27,21 - 154,64 169,50 -
5 9 5.29 3 8 26.91 8 7 8.77
Chiangmai 283,20 298,54 - 193,0 197,3 - 476,22 495,91 -
0 4 5.14 29 74 2.20 9 8 3.97
Tak 77,154 123,65 - 1,937 5,677 - 79,091 129,33 -
7 37.61 65.89 4 38.85
51


(July-September)
Establishments
Thailand
2010 2009 2010 2009 2010 2009
∆(%) ∆(% ∆(%
) )
Total 1,685,5 1,247,6 + 349,0 355,1 - 2,034,6 1,602,8 +
99 57 35.10 24 56 1.73 23 13 26.9
4
Kamphaengphet 30,220 19,037 + 710 401 + 30,930 19,438 +
58.74 77.0 59.1
6 2
Chiangrai 167,68 170,82 - 33,45 35,41 - 201,14 206,23 -
3 3 1.84 9 0 5.51 2 3 2.47
Chiangmai 620,88 223,27 + 244,7 226,4 + 865,60 449,77 +
5 9 178.0 17 99 8.04 2 8 92.4
8 5
Tak 84,441 95,310 - 2,719 4,692 - 87,160 100,00 -
11.40 42.0 2 12.8
5 4

(October-December)
Establishments
at Tourist Thai Foreigners Total
Attraction in
Thailand
2010 2009 2010 2009 2010 2009
∆(% ∆(%) ∆(%
) )
Total 1,736,062 1,685,905 + 479,9 462,9 + 2,216,0 2,148,8 +
2.98 85 67 3.68 47 72 3.13
Kampaengphet 30,620 27,818 + 1,702 1,230 + 32,322 29,048 +
10.0 38.37 11.2
7 7
Chiangrai 278,005 175,776 + 50,04 40,94 + 328,05 216,71 +
58.1 8 3 22.24 3 9 51.3
6 7
Chiangmai 440,888 475,344 - 324,8 291,0 + 765,78 766,35 -
7.25 99 10 11.65 7 4 0.07
Tak 140,814 127,306 + 6,949 3,132 + 147,76 130,43 +
10.6 121.8 3 8 13.2
1 7 8
Table 3.1 Ministry of Tourism and Sports, Thailand
Source: http://tourism.go.th/2010/th/statistic/tourism.php
52


The consumers separate to typically two types:
- Domestic customer
Someone will be shopping; they are not in need of anything, will see the item and
have to have it, were looking for an "accessory" that would match an outfit and happens
to come across the piece of jewelry and buy it. They will made decision under condition
that they satisfy and feel they receive the benefit from product and service. We are
divided into two groups. There are Local citizen and Thai tourism. Chiang Mai tourist is
299,591 and Thai tourist is 252,120.
- Foreign customer
Customer, who wants to buy gifts or souvenir and sometime them only sightseeing
buys interest about product, a purchase occurs when the buyer is looking for a gift for
someone, sees the art and design of product piece, and then purchases it. In this case the
plan is to make a purchase, it is just not known what or where that purchase will be made.
Consumers can choose from many jewelry retailers if they are not satisfied with certain of
product or service. So, price differs and service is important e.g. information of product,
certification, lower prices for high quality jewelry, customer service, guarantee etc.
because refund, return or change the product could not be easy. So the trust and
creditworthiness is more concerning. Foreign Tourist is 1,316,355.
3.5 Competitive Analysis

The jewelry industry, or even broader the art industry, is quite large and diverse.
There are countless different artisans making so many different pieces of work. There are
artists from every state that manufacture products. Some sell to large department stores, some
to galleries, some sell them only via a website, others will travel with the products and sell
53


what they are carrying. Many entrepreneurs interested to open jewelry shop that gives full
service in Chiang Mai. After that the jewelry business becomes the business which is popular.
Then the affects of jewelry business is high competition about price of products and various
kind of dosing and creativity. Therefore the entrepreneurs of each store should be tries hardly
to create their own identities for their brands and doing the best for attracting customer’s
attentions to becomes successful business in finally.
3.6 STP Analysis
3.6.1 Market Segmentation
The market segmentation of “Soul of Beauty” divide customers segment into 3 groups
The first group is primary customer segment which can generating the most revenues for Soul
of Beauty include Thai tourist, and foreign tourist which can generate secondary revenues
and The last group is Chiang Mai local citizen. Chiang Mai local citizen divided into 5
groups of segment by age which age between 25-34 years old, 35-44 years old, 45-54 years
old, 55-64 years old and more than 65 years old. Because we can satisfy customer needs and
want and offer our product in different design, price, size and etc follow the customer
segment behavior. Then, it can penetrate markets in each target market. Statistics from
Tourism in Chiang Mai during the years 2007-2010, Soul of Beauty can be divided into
market segmentation by a pie chart to understand easily.
54


Averagee Tourism and
a Citizen in
i Chiang Mai
M during the
t years 20007-2010
24%
%
Foreign touristt
51%
25%
% Thai tourist
CM Local citizen
Figure 3..10 Market Segmentatiion of Soul of Beauty
3.6.2 Target Analysis
Jewelry of “Soul of Beeauty” innovvation from

m the soul off Lanna, Thhai style whiich
combinne the moderrn style it iss already a souvenir

s wh
hich our cusstomer can rreach to it. We
W try
to respoonse our target needs annd want. We

W focus on foreign tourrism becausse Chiang Mai
M is
center of
o travel in Thailand
T annd very popuular in touriist. Thailandd is famouss on gemston
ne and
jewelryy. Thailand is
i the top onne-fourth off the world so productss that have bbeen populaar
with touurists who will

w buy bacck as souvennirs and gift
ft. Foreign toourists havee more pow
wer of
purchasse so we aree target on foreign

f touriist.
7%
Foreing To
ourism
18%
Local citize
en
75% Thai tourissm
F
Figure 3.11 Target
T mark
ket of Soul of Beauty
55

f by Uxttâàç
fÉâÄ

3.6.3 Position Analysis
"Soul of Beauty" is a creative work art of jewelry and still maintain the quality and
value unique branded Soul of Beauty jewelry has created a new jewelry design up to date
fashionable and still keep quality, identity and valuable under the brand “Soul of Beauty” Our
image of product occurred in the mind of target group of customers is personal feeling.
Target groups is customer have perception and perceive of our identity, from Soul of Beauty
in a Thai contemporary because of this identity, we can continue to provide products that
relate to it. And include the skills of our employees or expertise that can provide advice or
consultation with clients for buying jewelry orders from their own design. We are also
concerned meet the needs of customers first. So our business is recognized and customers can
remember. The last, customers can tell to another by using word of mouth. It can gain more
customers.
3.7 Marketing Mix Strategy Analysis
3.7.1 Product strategy
• Branding
Branding strategy, we set the brand in English language and symbol is SB. It
represents “Soul of Beauty Brand”. This word means the core of beauty that radiate from
diamond. The customer can remember easily and impressive when see our logo “Soul of
Beauty”.
Figure 3.11 Logo of Soul of Beauty
56


• Product
Soul of beauty has several products and categorize in 3 big groups that offer to
customer selection that different life style and preferred.
1. Modern style, we selected jewelry is a high quality materials form high skill
technician. A design of products is trend to modern style which up to date fashionable. This
category always change design depend on fashion trendy.
2. Hand craft style, this product category is high identity because we integrate the
Lanna style and jewelry together in design the product. Moreover Handicraft jewelry is
designed by Lanna artist in Vua-Lai Street that is salient Lanna art.
3. Made to order, the customer can design and create jewelry by themselves.
• Packaging
Although jewelry box is not show to customers on shop window, but we are
emphasizing on packaging because we think jewelry is valuable must be suitable with elegant
packaging. We choose luxury and modern package.
We have 4 types
4. Glass box
5. Leather box
6. Velvet box
7. Wood box
• Services
We are attention to every detail of services for both during sale and after sale services.
We select high skill salesperson and they can speak several languages to service foreign
tourists. We have clean jewelry service to customers, whether they buy from anywhere. We
are pleased to advice and fain for customers in any time. Our shop have credit card service,
this service is high security to offer confidence to our customers.
57


3.7.2 Price strategy
We designed the price to be competitive to other jewelry shop. We use cost based
pricing strategy. The pricing is based on the cost of product, depend on the refinement of
hand craft, to each product has different components, the weight of product and type of
jewelry. Our product we set the price starts in the hundreds bath. In currency trading we use
the Thai Bath because easy to exchange for Thai customers. Because of our products is a
fashion jewelry and emphasis on luxury, we set the Skimming price strategy to show value of
the product. We set the price to promote our products, we use Special-event pricing for high
season and festivals such as New Year festival, Valentine festival and Birth day.
Detail of the products
Model silver size main gems weight/ color decorate price

/gram karat Bath
Ring
R1341 99.99%/14.1 58 star gem 12.44 black swiss gems 10400
R1223 99.99%/9.30 52 ruby 2.39 pink square shape 4900
R1221 99.99%/9.30 52 ruby 2.39 white square shape 2900
R1453 92.50%/5.30 7-8 garnet 1.20 red white zesad 4500
R1567 99.99%/4.70 52 emerald 3.40 green swiss gems 6100
R1345 99.99%/6.60 53 ruby 4.31 red swiss gems 6500

amethyst green
R1315 99.99%/9.50 52 casedony 2.36 purple swiss gems 3900
R1464 99.99%/5.40 52 ruby 2.30 red sappier 4900
R1245 99.99%/6.70 53 quartz 3.2 green swiss gems 7500
R1334 99.99%/5.40 52 Shitrin 2.83 orange - 4900
R2315 99.99%/4.30 52 codolite 2.97 purple - 4500
58


/gram karat Bath
R2316 99.99%/4.30 52 prenite 7.03 green - 3500
R2331 92.25%/ 53 nine-gems 1.20 nine - 6900

colors
R2332 99.99%/4.95 53 london 10.69 blue swiss gems 4900

topaz
R2533 95.00%/7.69 53 zircon 0.9 white square shape 4500
R2534 95.00%/3.65 53 zircon 5.6 white - 4700
R1783 95.00%/5.66 53 black star 3.2 black swiss gems 4500
R1704 92.25%/4.25 53 emerald 7.6 green swiss gems 11250
R1572 92.25%/4.50 53 spechatie 2.5 orange swiss gems 5200
R1890 92.25%/4.25 52 topaz 3.6 blue CZndimond 2500
R1439 90.00%/9.8 53 CZ 4 white - 3000
R1237 90.00%/6.5 53 garnet 3.2 red swiss gems 5460
R1907 99.99%/4.90 52 amities 3.5 purple swiss gems 9400
R1569 99.99%/5.0 52 amities 3 blue swiss gems 4900
R1267 99.99%/5.60 52 quartz 5.6 green swiss gems 10800
R1097 99.99%/5.60 52 casedony 4 gray - 3800
R1094 99.99%/4.70 51 ruby 1.5 pink myanmar 3400
R1790 99.99%/5.60 53 topaz 0.87 white swiss gems 5900
R1556 99.99%/5.00 53 topaz 1.2 white swiss gems 6500
R1390 92.50%/4.50 52 ruby 2 pink myanmar 3400
Earring
E2343 95.00%/11 - fancy 14 fancy 7600
59


/gram karat Bath
E2112 95.00%/12 - sapphire 5.18 orange circle 5600
E2123 95.00%/11 - sapphire 4 orange circle 4500
Bracelet
B4543 95.00%/27 - fancy 19 fancy circle 11200
B4332 95.00%/34 - sapphire 21.30 orange circle 14000
B4556 95.00%/29 - shitrin 7.8 yellow circle 13000
B4565 95.00%/27 - fancy 18 yellow circle 9400
B4563 92.50%/40.1 - ruby 10.85 pink circle 19000
B4336 92.50%/40.1 - jade 23.35 green circle 14000
B4786 92.50%/40.0 - amities 10.85 purple synthesis 3600
B4778 92.50%/48.4 - jade 2.95 yellow circle 1300
B4906 92.50%/30.0 - fancy 13.5 fancy circle 12200
B4314 99.99%/34.4 - rubellite 10.85 purple circle 19000
B4326 99.99%/28.7 - topaz 10.0 blue synthesis 3500
B4366 99.99%/40.2 - jade 15.40 green circle 13900
Brooch
BH656 99.99%/3.80 - fancy 9.30 fancy flower 4600
BH675 90.00%/7.50 - garnet 6.00 red white goal 11490
BH687 99.99%/4.20 - casedony 3 purple swiss gems 4200
BH690 99.99%/8.00 - amities 25.53 purple swiss gems 10200
BH642 90.00%/5.90 - silver - - Wua-Lai art 3600
60


/gram karat Bath
BH691 99.99%/5.00 - prenite 13.42 green - 2900
BH665 99.99%/3.50 - garnet 5.0 purple - 4500
BH683 90.00%/6.00 - shitrin 15.95 yellow - 9456
BH644 99.99%/4.50 - ruby 4.7 pink - 7400
BH621 99.99%/4.50 - jade 3.5 green swiss gems 6300
BH689 99.99%/4.60 - ruby 3.5 pink gold sand 5800
BH694 99.99%/4.50 - garnet 9.1 black swiss gems 6200
BH677 99.99%/4.50 - sapphire 5.0 black swiss gems 2300
BH678 99.99%/5.20 - fancy 4.3 fancy swiss gems 5300
BH679 99.99%/4.30 - casedony 4.00 white swiss gems 4600
BH645 99.99%/4.70 - garnet 3.7 purple swiss gems 5000
BH670 99.99%/7.60 - jade 31.9 green swiss gems 11100
BH611 99.99%/6.90 - ruby 6.0 pink swiss gems 6500
BH613 99.99%/5.70 - fancy 7.30 pink swiss gems 4800
BH641 99.99%/4.70 - casedony 3.9 white swiss gems 4400
BH615 99.99%/5.90 - garnet 2 white - 1900
BH661 95.00%/5.40 - ruby 1.5 pink - 2900
BH622 99.99%/5.90 - fancy 7.30 fancy - 4800
BH634 99.99%/5.70 - fancy 12 fancy - 7600
BH684 99.99%/6.30 - fancy 7.00 fancy - 7600
BH673 99.99%/7.20 - casedony 4.3 white 4200
BH663 99.99%/3.50 - ruby 2.1 pink myanmar 2600
61


/gram karat Bath
BH688 99.99%/17.5 - fancy 95.50 fancy flower 16000
Table 3.2 Product detail list
3.7.3 Place strategy
Soul of beauty shop established on Chaing Mai Kalare night plaza zone G - G115
block area on Chang Klan Road which is the main road for business, This is a good location
where has people around here, this is a center of Thai and foreigner tourists with high
purchasing power and popular of night market in Thailand. The plaza have plenty of parking
area is available and located near the shopping area.
Our shop has interior decoration by Lanna Contemporary Art for affinity to customers
and they can remember easily.
3.7.4 Promotions strategy
• Brochure
The employees distribute to restaurant, hotel, guest house and walking street.
• Billboard
We rent advertising area in Chiang Mai Airport because most customers are tourist
both Thai and foreigner who come to visit Chiang Mai. This advertising is favorably
influence target group.
• Sale promotions
We set the promotion for low season to influence sale revenue-10% on Low Season
(May-Sep)
62


3.8 Sales Forecast/Profit Estimation
Total Number of Tourism in Chian mai
between 2006 to 2010
6000000
5000000
4000000
3000000 Number of Tourism in Chian
2000000 mai /years
1000000
0
Y 2006 Y 2007 Y 2008 Y 2009 Y 2010
Figure 3.12 Total of Tourism in Chiang Mai statistic
(Source: http://tourism.go.th/2010/th/statistic/tourism.php)
According to the total number of tourism in chiang mai statistic between in 2006 to
2010 we assume the number of tourism in chiang mai in 2010 .There are 4,194,752 tourism
to forecast sales of our shop as following
Number of tourism in 2010 = 4,194,752 tourism
Number of tourism/month = 4,194,752/12 ~ 349,563 tourism
There are 15 main competitors = 349,563/15 ~ 23,304 tourism
Soul of Beauty divided the customer segment into three types which are Chiang mai
citizen,Thai tourism and foreign tourism.
The primary customer segment which can generate the most revenues for Soul of
Beauty is Thai tourism.
Total of Thai tourism = 58.76%* 4,194,752 = 2,464,836 tourism
63


-Female = 51.9%*2,464,836 = 1,279,249 peoples
-Male = 48.1%*2,464,836 = 1,185,586 peoples
-Number of Thai tourism that buy Jewelry is 10% of Thai tourism, Female is 9 % of Thai
Female tourism and Male is 1% of Thai Male tourism.
-Number of Thai Female tourism who buy jewelry = 1,279,249 *9% = 115,132 peoples
-Number of Thai male tourism who buy jewelry = 1,185,586 *1% = 11,855 peoples
So Tourism who buys jewelry is 115,132+11,855/12 = 10,582 / months
The secondary customer segment which cans generate the most revenues for Soul of
Beauty is foreign tourism.
Total of Foreign tourism = 41.42%* 4,194,752 = 1,729,915 tourism
-Female = 35.2%*1,729,915 = 562,222 peoples
-Male = 64.8%*1,729,915 = 1,167,693 peoples
(Source: http://tourism.go.th/2010/upload/filecenter/file/stat_File_pdf52/north/cheanmai.pdf)
-Number of Foreign tourism that buy Jewelry is 10% of foreign tourism, Female is 9 % of
foreign Female tourism and Male is 1% of foreign Male tourism.
-Number of foreign Female tourism who buy jewelry = 562,222 *9% = 50,600peoples
-Number of foreign male tourism who buy jewelry =1,167,693 *1% = 11,676 peoples
64


So Tourism who buys jewelry is 50,600+11,676/12 = 5,170 / months
There are 15 main competitor in Chiang mai = 10,582+5,170/15 = 1,050 / months
Jewelry shop in Chiang mai was sold 1,050 for each shop
Soul of Beauty can get about 30% of segment for first year
We assume that percentage of customer increase 10 % of total sale for 1-4 year and
15% in year 5
Year Total Sales

Y1 1,631,425
Y2 1,879,825 (increase 15% from sale of Y1)
Y3 2,817,250(increase 20% from sale of Y2)
Y4 3,383,500 (increase 20% from sale of Y3)
Y5 3,891,325(increase 15% from sale of Y4)
Table 3.3 Sale forecast
65


Sale of year 2011
Product Necklace Bracelet Ring Earrings

Price 3,525 2,550 1,400 1,650
Table 3.4 Sales of "Soul of Beauty" in year 2011
250,000
200,000
150,000
Earrings
Ring
100,000
Bracelet
Necklace
50,000
Figure 3.13 Sales of Soul of Beauty in year 2011

66

Sale of year 2012
90,000
80,000
70,000
60,000
50,000 Necklace
40,000 Bracelet
30,000 Ring
20,000 Earrings
10,000
-

67

Sale of year 2013
140,000
120,000
100,000
80,000 Necklace
60,000 Bracelet
Ring
40,000
Earrings
20,000

68

Sale of year 2014
180,000
160,000
140,000
120,000
100,000 Necklace
80,000 Bracelet
60,000 Ring
40,000 Earrings
20,000
-

69

Sale of year 2015
180,000
160,000
140,000
120,000
100,000 Necklace
80,000 Bracelet
60,000 Ring
40,000 Earrings
20,000
-

70

3.9 Marketing Expenses
Soul of Beauty is a new entrance to the market so we try to promote and communicate
with our target market for customers’ recognition and remember Soul of Beauty brand. We will
communicate with customers by
• Bill Board
The most customers are tourist both Thai and foreigner who come to visit Chiang Mai.
The high season is winter about November to February so our company make and advertising
on bill board for communicate with customers. Our company will improve Vinyl Bill Board 1
time per year and create the message up to customer’s behavior.
Cost=80,000 Baht
Organization Contact:
Boss Creative & Organizer
Address: 127/30 M.13 T.Padad, Moung, Chiang mai 50100
kangboss9999@hotmail.com Tel.081-8850381
• Sale Commission
Because jewelry is rarely high price and valuable the customer assistant is very
important to give the product detail to customers and skills to communicate with customers
include appearance for customer trust. So we offer 2% of sale to customer assistant.

71

• Brochure
Our target market is tourist both Thai and foreigner so we will give out Brochure in
Hotel, Guesthouse, Restaurants, and etc. Our company tries to communicate with customer as
much as possible and pleasure customer touch our product.
Year 2011 normally = 300 per month
High Season (Nov-Apr) = 500 per month
• Sale Promotion
We offer 15% on Low Season (May-Sep) because our company has a policy to attract
the customers in low season for increase sale volume.
Table 3.9 marketing expense year 2011

72

3.10 Conclusion in market feasibility
From the Soul of Beauty sale forecasting in long-term, the sale revenue has increase in
every year because an effect of political factor, economic, political, technology and social
factor. More over tourist season and festival in Chiang Mai is also affect to sale revenue
because many tourists trend to high on high season or Chiang Mai festival and the Tourism
Department promote and attract tourist to visit Chiang Mai. So this is an opportunity to
increase the sale and make a profit of our company.
Winter season (Octobers to February), this is high season of Chiang Mai there are many
place and festival on winter such as mountain for touch cold weather, Loy Kra Tong festival,
Christmas and New year festival. So the sale revenue on this period is highest because many
tourists visit to Chiang Mai. Our company has promotion to attract customers such as Bill
Board, Brochure and etc. Although the cost of marketing in high season is too high, the
company still pays this cost because this season is high opportunity to make a profit.

73

Summer season (March to May), this season is moderate sale but in April has Song-
Kran festival. This festival can be attracting tourist to visit but it is a short period. We still
advertise our Bill Board and Brochure to continue our sale revenue. We believe that we can
increase sale from Song-Kran festival as much as possible.
Rainy season (June to September), the sale revenue of this season is rarely low. The
sale is decline. So we offer the 20% sale discount in rainy season for influence customer
demand and sustain the level of sale not too decrease sharply. Moreover, we plan to deal with
travel agency to increase and expand the market.

74

Chapter 4
Technical Analysis
Chapter 4 Technical Analysis

75

4.1 Production and Operation Analysis
4.1.1. Product Characteristic
Stone
Number Picture Cutting Stone pieces Price
Description
Ruby sphere 24
1 1,450
Cubic zirconia sphere 24
Ruby sphere 18
2 1,300
Ruby square 5
3 850
4 Blue topaz sphere 1 1,600
5 Blue topaz Drop 2 1,500
6 topaz sphere 11 950

76

Turquoise sphere 1
7 1,600
Amethyst Drop 1
8 1,100
9 Garnet sphere 3 1,600
10 Sapphire sphere 11 1,150
11 Ruby Square 28 1,700
Sapphire Drop 2
12 1,550
13 Cubic zirconia Square 14 1,800

77

14 Cubic zirconia Square 2 1,200
Turquoise Fancy 4
15 2,200
Cubic zirconia Sphere 32
16 Topaz Square 12 1,700
Blue topaz Drop 2
17 1,750
Cubic zirconia Sphere 36
18 Peridot Sphere 2 1,350
19 Amethyst Sphere 2 1,350
20 Cubic zirconia Sphere 18 1,750

78

Amethyst Egg shape 2
Blue topaz Egg shape 2
Citrine Egg shape 2

23 2,860
Garnet Egg shape 2
Peridot Egg shape 2
Cubic zirconium Sphere 9
Ruby Egg shape 1
24 3,160
Natural
25 Turquoise 2,050
shape
26 Cubic zirconium Sphere 4 2,200

79

Egg
Peridot 1
sphere
27 2,700
Peridot Square 2
Pink marine Sphere 6
Amethyst Egg shape 3
28 4,500
29 Ruby Egg shape 40 4,700
Table 4.1 Product Characteristic

80

Figure :4.1 service process
4.1.2. Service process
Service mind is our heart. To customers satisfaction and make customer royalty. We
service to customer before sale to advice to customers. During the sale we talking friendly
with customer and pay correct information and the last after sale service we think this most
important because make customers impress. We emphasize in dressing of sale person because
make customers feel good in first sight; we have Lan-na style dressing. We train our sale
person to respect, give value and take care customer always we have clean service for customer
who are buy jewelry form our shop customer can clean your jewelry free.
• Step of process service
Before sale service
a. When the customer come to the shop. customer assistant welcome and invite to
customers.

81

During sale service
Sale assistant ask customer about “what kind of product do you want”
a. Customer asks about product detail.
- Talking friendly with customer and give correct information to customer.
- Customer assistant advise to customer about the product when customer don’t clear
about it.
- When customers agree and satisfy in product.
- Customer purchase product.
After sale service.
- When after purchased, customers have a problem about the product, they can return to
consult with customer assistant.
- We focus on service mind
- Customer will return to purchase our product.
4.1.3. Location
Soul of Beauty situated on Kalare Night Bazaar, Chang Klan Road Chiang Mai. It is a trading
center and meeting point for both Thai and foreigners as well as to show arts and culture and
main road for business in Chiang Mai, surrounded by many big projects and five star hotels.

82

Figure 4.2 Soul of Beauty location
Figure 4.3 Soul of beauty shop

83

4.1.4. Facility Layout
Figure 4.4 Plan of shop
●Structure of store
Figure 4.5 3D layout of the shop

84

Figure 4.. 3Dlayout in front of shop
Figure 4.7 3Dlayout from side of shop
Store building has 1 floor size 4X4 meters. The front of the shop decorates with clear
glass and integrates Lanna style. The door made by wood and clear glass. The billboard of the
company made by acrylic name “Soul of Beauty”

85

●Inside of store
Figure 4.8 3Dlayout from be hind shop
There are 3 parts of space, first the space for show the product in front of the shop for
the customer passes or enters the shop and they can see the product. It made by glass cabinet.
Second customer service zone for entertain the customer. This zone has sofa, air conditioner,
television and other convenience tool. And the last zone is kitchen for staff.
4.1.5 Machine/Tools/Equipment
Computer set HP MS238L:
• 19150 ATHLON II Dual Core250U,1.6GHz
• Memory RAM 2048MB,DDR2,FSB 800MHz
• Hard Disk 750GB,7200RPM
• DVD-RW,Lightscribe,DL,6XUSB2.0
• Graphic on Board,1.3M Webcam & Mic
• 18.5" Widescreen LCD
• Operation System DOS

86

• 10/100 Wireless 802.11B/G/N
• Power 450 Watts
• Price: 19,150 baht
BROTHER MFC-J220
• Convenient Built-in Fax. No PC required sending and
receiving documents.
• 1.9’ Color LCD Display. For viewing images and
easy menu navigation.
• Direct Photo Printing on Demand. Print photos on demand directly from your media
cards.
• Fast Color Printing. With speeds up to 33ppm black and 27ppm color.
• Versatile Scanning Capabilities. Easy to use scanning software and ability to scan
directly to your media cards.
• Flatbed Copying and Scanning. Flatbed copier allows you to copy bound, thick or odd
shaped documents
• Professional Printing Resolutions. With droplet sizes as small as 1.5 picoliters and high
resolutions up to 6000 x 1200dpi.
• 4-Cartridge Ink System. Only change the cartridge that needs to be replaced.
• Energy Star Qualified.

87

Chair ADDA BI-CAST/WT
• Size: 45 * 61.5 * 93.6 CM
Computer Table PROVENCE
• Size 120 * 60* 75 cm
FAX BROTHER -235S
• Auto cut paper (fax, photocopying, and answering machine)
• send a time sheet 10 bit
• Automated calls to 64 numbers
• Protection bent paper
• Splitters Tel / Fax: automatically
• Price 3,290 baht
Sofa BICAST
• Seat and back covered with BI-CAST as caries-
free storage. Easy to clean.
• The comfortable design is ergonomic.
• Use a sponge, standard export quality.

88

Coffee Table
• Size: 80 * 45 * 40 cm.
• Price: 2,790 Baht
Air- Conditioner HITACHI RAS- RAS-S18CZT
• Size 20142 BTU
• Disinfection of bacteria with light & UV
• Nano Titanium filter discs eliminate bacteria and odor quickly
• Speed Cool cooling system, accelerate faster
• Silent Cool system noise reduction
• 2-way air distribution system
• Panel cooling large increases in thermal efficiency
• Label low fiber 5
• Power 2,000 watts

89

Electrical fan Hatari HA-P18M1
• Fan Type Floor
• Color Dove Gray
• 18-inch blade
• Adjust the wind has 3 levels
• System Thermo Fuse
• Power 78 Watts
Drinking water machine SANYO SWC-591CS
• To drink hot and cold water
• Cooling with compressor of high quality
• Automatic temperature control system
• Containing water volume
• Electrical short-circuit protection
• Beautiful shape, easily installed
• Power cooling 125 watts
• Power 450 watts of heat

90

Refrigerator TOSHIBA GR-B183ZPP
• Refrigerator 1 door, size 6.5 queue
• Cooling System No Frost
• Dispatch cooler Cool Air Wrap.
• Odor removal system, a Hybrid Plasma
• Freezer capacity 31 liters
• Type of safety glass shelves
• Defrost System Automatic
• Power 220 watts
• Size 56x125x57cm.
• Price 4,994baht
Phone SIEMENS GI A490 SIG
Safe Prosafes Platinum PMS-601
• Safe secure extra thick steel
• Size: Outside: 581 x 631 x 835 mm.
Inside: 438 x 425.5 x 695 mm.
• Net weight: 380 kgs.

91

SONY LCD TV KLV-32EX500
• LCD TV 32 "
• Motionflow100Hz for smoother motion picture without interruption
• Resolution screen Full HD 2 million pixels (1920x1080)
• Dynamic Contrast 150,000:1
• BRAVIA Engine 3 to improve the quality of
the image is always sharp
• Intelligent Picture Plus noise reduction. For viewing
TV sharper
• Scene Select System Preferences by automated video and audio types of items to watch
• Power 112 Watts
Set of FUJIKO CCTV
• FK-8880
• FK-NEW204YO
• FK-600
• Price of set 13,500 baht
CASIO 130CR-S 5500
• Journal or receipt printing selection
• Received on account/Paid-out functions
• Error correction
• Refund mode for recording of the returned goods

92

• Percentage and discount amount
• Battery backed up for memory protection
• Time and date display
• Lockable cash drawer
• Security system
• Easy and quick programming
Portable Dry Chemical Fire Extinguisher SATURN
"SATURN" is available online. Easy to use and safe to all types of fire
• Price 1500 baht
Calculator SHARP EL-330A
• Display size 8 primary
• Tax calculations
• Price 219 baht
Chandelier Emperor
• Metal + glass tube Champa burning candles or E14 Max
40 watt

93

Stapler Aroma HD-10NR
• Price: 50 baht
Stapler Max
• Price: 45 baht
Punch machine DP-500
• Price: 139 baht
Cutter
• Size of blade 18 mm
• Price: 34 baht
Blade
• Size of blade 18 mm
• Price: 21 baht

94

Scissors
• Price: 27 baht
Ruler
• Price: 6 baht
Bill spit
• Size: 8 cm.
• Price: 20 baht
A4 Paper
• Price: 545 baht for 3 each
Adding paper Thermal
• Price: 120 baht

95

Clip file
• Size 240 x 350 mm
• Price: 40 baht
Plug
• Channel 4 slot
• Cable length 2 m.
• Supports 2500 watts load
• The plug is made of plastic rail PC (Poly
Carbonate) and ABS heat resistant non-combustible
• Price: 365 baht
Liquid paper
• Price: 53 baht
Pen
• Price: 20 baht
Table
• Size 121x61x74.3 cm
• Price: 1960 baht

96

4.1.6 Logistics Management
Logistics is the process of planning, implementing, and controlling the efficient,
effective flow and storage of goods, services, and related information from point of origin to
point of consumption for the purpose of conforming to customer requirements." Note that this
definition includes inbound, outbound, internal, and external movements, and return of
materials for environmental purposes. -- (Reference: Council of Logistics Management,
http://www.clm1.org/mission.html, 12 Feb 98)
Logistics involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging, and occasionally security. Logistics is a
channel of the supply chain which adds the value of time and place utility. Today the
complexity of production logistics can be modeled, analyzed, visualized and optimized by
plant simulation software. -- (Wikipedia 2011)
• Our product Transportation
Our company choose Thai Post as a delivery way. By the way we set date and time with
the shop that we have been engaged in jewelry design and delivery on time. The service that
we choose from Thai Post is a special register which safety for our product. We get our order
by deal directly to the shop if the product is very high value or sensitive.
Figure 4.9 Transportation
Postal services and related business continuity. Good quality fast time in the
appropriate fee. Marketing is focused on aggressive marketing to create satisfaction with
Customers at all levels. Financial and investment Committed to the self-reliant in terms of

97

financial and investment expansion in the future. Human resource personnel to effectively
manage and promote the welfare of various appropriate. Administration and management.
Aspect that facilitates the operation in terms of business.
We have selected two types of transportation is via EMS delivery is Postal items will be
sent via an express delivery system. With our special and separate EMS system, you can be
confident that your mail will be delivered to recipients speedily and safely. Thailand Post is
pleased to repay service fees if we can’t meet our mail delivery standard. In case there is any
loss or damage caused by Thailand Post, we will provide compensation, and Domestic
Parcel delivery is a package of items, products or product samples addressed to domestic
recipients.

98

• Transportation rate
Rate of Product in Thailand

Weight EMS Parcel post
100 g. 32 20
200 g. 37 20
300-500 g. 47 20
600-1000 g. 62 25
1100-1500 g. 77 45
1600-2000 g. 92 45
2100-2500 g. 107 50
2600-3000 g. 122 50
3100-4000 g. 142 65
4100- 4500g. 182 80
4600-5000 g. 202 80
5100-5500 g. 227 65
5600-6000 g. 252 95
6100-6500 g. 277 110
6600-7000 g. 302 110
7100-7500 g. 327 125
7600-8000 g. 352 125
8100-8500 g. 382 140
8600-9000 g. 412 140
9500-10000 g. 472 155
10000-15000 g. 487 180

16000-20000 g. 562 245
21000-25000 g. 385
26000-30000 g. 460
Table 4.2 Rate of product in Thailand

99

4.1.7 Machine/Tools/Equipment
Jewelry cleaner Equipment
• Digital Ultrasonic Cleaner CMT-2385
CMT-2385 the Ultrasonic cleaning is faster, more thorough, and safer than any other
cleaning method. It is powerful enough to remove heavy oils, waxes, or proteins,
penetrating deep enough to de-flux circuit boards, yet gentle enough to clean delicate
precision assemblies. It is leak-proof, easy to handle, and safe to fill. The new degas feature
is especially helpful at start-up and the mechanical timer models allow you to set a full
cleaning cycle with one quick twist. The advanced digital models will feature a
microprocessor controlled thermostat and digital readout which offers you maximum
control of the cycle time and temperature all in one setting. With a touch of the control you
can set and monitor exact cleaning cycles for up to 99 minutes. Each of the models is
available with the following features allowing you to choose the unit that best suits your
needs:

100

· Tightened lid design for effective noise reduction
· Improved products durability and safety by water resistance capability enhancement
· Cleans discs such as CDs, VCDs, DVDs, etc.
· Use only plain tap water to clean
· Remove dirt effectively; results can be seen with bare eyes!
· Articles to shine just like new
Dimensions 210x158x125mm
Tank Size 750 ml
Standard plug* A
Power Supply AC 220V 50/60Hz
5 cycles: 180s, 280s, 380s, 480s,

Timer setting
90s
Power 50W (220V)
Individual packing Color box
Applications:
· Discs Cleaning
CDs, DVDs, VCDs, etc.
· Jewelry and Watches
Necklaces, Earrings, Rings, Bracelets, Coins, Watches Straps and Bands etc.
· Eye Care
Glasses, Sunglasses, Contact Lens Accessories

101

· Daily Personal Care
Dentures, Combs, Toothbrushes, Table Wares
. Price 5,280.00 Bath
• Jewelry Cleaner
De Bois is high Quality Product for cleaning of
diamond, gold and precious gems ornaments and watches. It
dissolves dirt without damaging the jewelry. Add shine and
sparkle to the jewelry with refreshing fragrance. No
ammonia or any acidic ingredients that may cause skin
irritation. Environmentally friendly
De Bois jewelry cleaner
Weight: 100 grams
Price 200 Bath
• Jewelry boxe
A & D Package and card Ltd.

102

Made and designed cards, box jewelry, Standard display products, the price tag,
plastic molding, etc. made with PVC, PP, paper, leather, velvet, foam, sponge printing
with hot stamp, silkscreen, offline. Set manufacturers and made to order package. And
jewelry display Chi Jewelry and Hair Accessories.
28/166-8 Soi 34 Ekachai Road, Bang Khun Thian District, Chom Thong,
Bangkok 10150.
Tell: 02-8932546-7, 02-3338960-2
Fax: 02-8932135.
E-mail: aanddpackage@hotmail.com.
URL: http://www.aanddpackage.co.th
Ring velvet boxes
5.2 cm x5.8cm x4.5 cm [length x width x height]
Price 450Bath per/1dozen

103

• Bracelet/Necklace/ Claspvelvet boxes
.13.7 cm x12.5cm x4.5 cm [length x width x height]
. Price 650 Bath per/1dozen
Pouches
.12 cm x14cm [length x width]
.10 cm x10cm [length x width]
.7 cm x 8 cm [length x width]
4.2 Cost of investment
4.2.1. Pre-Operating cost
●Prepaid for Rent
The rental cost of store is about 30,000 baht per month and has to prepaid 3 month so
the company has to pay 90,000 baht

104

●Billboard of Company
The Billboard of company made by acrylic and English character “SOUL OF
BEAUTY” the size of billboard about 1x0.3 meter and the cost of Billboard is about 5,000
baht Organization Contact: BOSS Creative & Organizer Email: kangboss9999@hotmail.com
Tel.081-8850384
Figure 4.10. Billboard of the shop
●Billboard tax
The Billboard of Soul of Beauty is English font and pay for English Billboard at 40
Baht per 500 square centimeters. Soul of Beauty Billboard size 1X0.3 meters or 3,000 square
centimeters so the company has to pay 240 baht.
Organization contact: Chiang Mai municipality
Document for tax payment;
-Copy of rent contract
-Copy of personal identification card
-Certificate
-License to set Billboard

105

●Registration
Company limited registration under the name Soul of Beauty Company Limited and the
business registration is 2,000,000 so the registration fee is 10,000 baht. Organization contact:
Department of Business Development Chiang Mai province.
-Document fee (Commercial registration50 Baht)
-Copy of Identity Card
-Company address
-Contract of rent
●Mark of Company
Soul of Beauty is a company limited so the company has to create
the mark or sign of company. A sign of company is SB. It means Soul of
beauty and order on online shop (www.trayang-online.com). The cost is
300 baht (Free transportation fee) E-mail: trayang_on_line@hotmail.com
●Cost of clear glass door
The door made by clear glass. The size of door is 1.6X2.0 meter so the cost of door is
about 6,400 baht.
●Cost of clear glass (Front of store)
The size of glass in front of the store is 1.8X2 meter 2 pieces. The cost of clear glass in
the front of store is about 12,800 baht
●Cost of build in of glass cabinet

106

The glass cabinet for show the products, we hire the interior to build and design the
cabinet. The cost of build in is about 18,000 baht per each.
●Cost of setting telephone and internet (3,700 baht)
The document for setting telephone as follow: copy of identification card, certificate of
company limited and all of document need to company sign.
No Description Price
1 Billboard 5,000
2 Company sign 300
3 Company limited registration 10,050
4 Billboard tax 240
5 Doors 6,400
6 Clear glass 12,800
7 Glass cabinet 72,000
8 Telephone and internet setting 3,700
9 Prepaid for rent 60,000
10 Meter of electricity 2,140
Total 172,630
Table 4.3 Pre-Operation cost

107

4.3 Investment cost
4.3.1. Equipment and Tools
No Description No. Product Price/Unit Total

1 Computer 1 19,150 19,150
2 Printer 1 3,590 3,590
3 Chair 4 2,990 11,960
4 Computer table 1 4,990 4,990
5 Fax 1 3,290 3,290
6 Sofa 1 15,900 15,900
7 Coffee table 1 2,790 2,790
8 Air conditioner 1 30,990 30,990
9 Fan 1 1,858 1,858
10 Drinking water machine 1 4,990 4,990
11 Refrigerator 1 4,990 4,990
12 Phone 1 1,590 1,590
13 Safe 1 24,900 24,900
14 Television 1 16,990 16,990
15 TV table 1 4,590 4,590
16 Computer Chair 1 1,550 1,550
17 Camera CCTV 2 13,500 27,000
18 cash register 1 5,500 5,500
19 Portable dry chemical fire 1 1,500 1,500
20 Chandelier 1 9,900 9,900
Total 198,018
Table 4.4 : Total of office element
1 Ring size 1 450 450

2 Mirror 2 1,000 2,000
3 Finger size 1 150 150
4 Platform necklet 10 150 1,500
Total 4,100
Table 4.5: Total of Equipment

1 Digital Ultrasonic 1 5,280 5,280
Cleaner
2 Jewelry clener 2 200 400
Total 5,680
Table 4.6: Total of Machine

108

4.3.2 Depreciation
Table 4.7: Total Depreciation Year 2011

Operating
Cleaner Machine Amount JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Digital Ultrasonic Cleaner 5,280 88 88 88 88 88 88 88 88 88 88 88 88 1,056
Jewelry cleaner 200 3 3 3 3 3 3 3 3 3 3 3 3 36
Total 5,480 91 91 91 91 91 91 91 91 91 91 91 91 1,092
Equipment Amount JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Ring size 450 7 7 7 7 7 7 7 7 7 7 7 7 84
Mirror 1,000 17 17 17 17 17 17 17 17 17 17 17 17 204
Finger size 160 3 3 3 3 3 3 3 3 3 3 3 3 36
Platform necklace 150 2 2 2 2 2 2 2 2 2 2 2 2 24
Total 1,760 29 29 29 29 29 29 29 29 29 29 29 29 348
Total operating depreciation 7,240 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Administration Amount JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Pre-investment cost
Billboard 5,000 83 83 83 83 83 83 83 83 83 83 83 83 996
Mark of company 300 5 5 5 5 5 5 5 5 5 5 5 5 60
Clear glass door 6,400 107 107 107 107 107 107 107 107 107 107 107 107 1,284
Clear glass at
front of store 12,800 214 214 214 214 214 214 214 214 214 214 214 214 2,568
Build in of glass 1,20 1,20 1,20 1,20 1,20 1,20 1,20 1,20
cabinet 72,000 0 0 1,200 0 1,200 0 0 1,200 0 0 1,200 0 14,400
1,60 1,60 1,60 1,60 1,60 1,60 1,60 1,60

Total 96,500 9 9 1,609 9 1,609 9 9 1,609 9 9 1,609 9 19,308
Office Amount JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Computer 19,150 531 531 531 531 531 531 531 531 531 531 531 531 6,372
Printer 3,590 60 60 60 60 60 60 60 60 60 60 60 60 720
Chair 2,990 50 50 50 50 50 50 50 50 50 50 50 50 600

Computer
table 4,990 83 83 83 83 83 83 83 83 83 83 83 83 996
Fax 3,290 55 55 55 55 55 55 55 55 55 55 55 55 660
Sofa 15,900 265 265 265 265 265 265 265 265 265 265 265 265 3,180
Coffee
table 2,790 47 47 47 47 47 47 47 47 47 47 47 47 564
Air
conditioner 30,990 516 516 516 516 516 516 516 516 516 516 516 516 6,192
Fan 1,858 31 31 31 31 31 31 31 31 31 31 31 31 372

Drinking
water
machine 4,990 83 83 83 83 83 83 83 83 83 83 83 83 996
Refrigerato
r 8,190 136 136 136 136 136 136 136 136 136 136 136 136 1,632

109

Phone 1,590 27 27 27 27 27 27 27 27 27 27 27 27 324
Safe 24,900 415 415 415 415 415 415 415 415 415 415 415 415 4,980
Television 16,990 283 283 283 283 283 283 283 283 283 283 283 283 3,396
TV table 4,590 76 76 76 76 76 76 76 76 76 76 76 76 912

Computer
Chair 1,550 26 26 26 26 26 26 26 26 26 26 26 26 312
Camera
CCTV 13,500 225 225 225 225 225 225 225 225 225 225 225 225 2,700
cash
register 5,500 92 92 92 92 92 92 92 92 92 92 92 92 1,104
Portable
dry
chemical
fire 1,500 25 25 25 25 25 25 25 25 25 25 25 25 300
Chandelier 9,900 165 165 165 165 165 165 165 165 165 165 165 165 1,980
3,19
Total 178,748 1 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 38,292
Total
admin
depreciatio 4,80
n 275,248 0 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600

Operating
Cleaner Machine Amount FEB SEP Total

JAN MAR APR MAY JUN JUL AUG OCT NOV DEC
Digital Ultrasonic Cleaner 4,224 88 88 88 88 88 88 88 88 88 88
88 88 1,056
Jewelry clener 164 3 3 3 3 3 3 3 3 3 3
3 3 36
Total 4,388 91 91 91 91 91 91 91 91 91 91
91 91 1,092
Equipment Amount FEB SEP Total

JAN MAR APR MAY JUN JUL AUG OCT NOV DEC
Ring size 366 7 7 7 7 7 7 7 7 7 7
7 7 84
Mirror 796 17 17 17 17 17 17 17 17 17 17
17 17 204
Finger size 124 3 3 3 3 3 3 3 3 3 3
3 3 36
Platform necklet 126 2 2 2 2 2 2 2 2 2 2
2 2 24
Total 1,412 29 29 29 29 29 29 29 29 29 29
29 29 348
Total operating
5,800 120 120 120 120 120 120 120 120 120 120 a
depreciation 120 120
Pre-investment cost
Billboard 4,004 83 83 83 83 83 83 83 83 83 83 83 83 996
Mark of company 240 5 5 5 5 5 5 5 5 5 5 5 5 60
Clear glass door 5,116 107 107 107 107 107 107 107 107 107 107 107 107 1,284
Clear glass at front of store 10,232 214 214 214 214 214 214 214 214 214 214 214 214 2,568
Build in of glass cabinet 57,600 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Total 77,192 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 19,308

110

Amount JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Computer 12,778 531 531 531 531 531 531 531 531 531 531 531 531 6,372
Printer 2,870 60 60 60 60 60 60 60 60 60 60 60 60 720
Chair 2,390 50 50 50 50 50 50 50 50 50 50 50 50 600
Computer table 3,994 83 83 83 83 83 83 83 83 83 83 83 83 996
Fax 2,630 55 55 55 55 55 55 55 55 55 55 55 55 660
Sofa 12,720 265 265 265 265 265 265 265 265 265 265 265 265 3,180
Coffee table 2,226 47 47 47 47 47 47 47 47 47 47 47 47 564
Air conditioner 24,798 516 516 516 516 516 516 516 516 516 516 516 516 6,192
Fan 1,486 31 31 31 31 31 31 31 31 31 31 31 31 372

Drinking water
machine 3,994 83 83 83 83 83 83 83 83 83 83 83 83 996
Refrigerator 6,558 136 136 136 136 136 136 136 136 136 136 136 136 1,632
Phone 1,266 27 27 27 27 27 27 27 27 27 27 27 27 324
Safe 19,920 415 415 415 415 415 415 415 415 415 415 415 415 4,980
Television 13,594 283 283 283 283 283 283 283 283 283 283 283 283 3,396
TV table 3,678 76 76 76 76 76 76 76 76 76 76 76 76 912
Computer Chair 1,550 26 26 26 26 26 26 26 26 26 26 26 26 312
Camera CCTV 13,500 225 225 225 225 225 225 225 225 225 225 225 225 2,700
cash register 5,500 92 92 92 92 92 92 92 92 92 92 92 92 1,104
Portable dry chemical fire 1,200 25 25 25 25 25 25 25 25 25 25 25 25 300
Chandelier 9,900 165 165 165 165 165 165 165 165 165 165 165 165 1,980
Total 146,552 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 38,292
Total admin
depreciation 223,744 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600

Operating
Jewelry clener 128 3 3 3 3 3 3 3 3 3 3 3 3 36
Total 3,296 91 91 91 91 91 91 91 91 91 91 91 91 1,092
Ring size 282 7 7 7 7 7 7 7 7 7 7 7 7 84
Mirror 592 17 17 17 17 17 17 17 17 17 17 17 17 204
Finger size 88 3 3 3 3 3 3 3 3 3 3 3 3 36
Platform necklet 102 2 2 2 2 2 2 2 2 2 2 2 2 24
Total 1,064 29 29 29 29 29 29 29 29 29 29 29 29 348

111

Pre-investment cost
Billboard 3,008 83 83 83 83 83 83 83 83 83 83 83 83 996
Mark of company 180 5 5 5 5 5 5 5 5 5 5 5 5 60
Clear glass door 3,832 107 107 107 107 107 107 107 107 107 107 107 107 1,284
Total 57,884 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 19,308
Computer 6,406 531 531 531 531 531 531 531 531 531 531 531 531 6,372
Printer 2,150 60 60 60 60 60 60 60 60 60 60 60 60 720
Chair 1,790 50 50 50 50 50 50 50 50 50 50 50 50 600
Computer table 2,998 83 83 83 83 83 83 83 83 83 83 83 83 996
Fax 1,970 55 55 55 55 55 55 55 55 55 55 55 55 660
Sofa 9,540 265 265 265 265 265 265 265 265 265 265 265 265 3,180
Coffee table 1,662 47 47 47 47 47 47 47 47 47 47 47 47 564
Air conditioner 18,606 516 516 516 516 516 516 516 516 516 516 516 516 6,192
Fan 1,114 31 31 31 31 31 31 31 31 31 31 31 31 372
Drinking water machine 2,998 83 83 83 83 83 83 83 83 83 83 83 83 996
Refrigerator 4,926 136 136 136 136 136 136 136 136 136 136 136 136 1,632
Phone 942 27 27 27 27 27 27 27 27 27 27 27 27 324
Safe 14,940 415 415 415 415 415 415 415 415 415 415 415 415 4,980
Television 10,198 283 283 283 283 283 283 283 283 283 283 283 283 3,396
TV table 2,766 76 76 76 76 76 76 76 76 76 76 76 76 912
Computer Chair 1,550 26 26 26 26 26 26 26 26 26 26 26 26 312
Camera CCTV 13,500 225 225 225 225 225 225 225 225 225 225 225 225 2,700
cash register 5,500 92 92 92 92 92 92 92 92 92 92 92 92 1,104
Portable dry chemical fire 900 25 25 25 25 25 25 25 25 25 25 25 25 300
Chandelier 9,900 165 165 165 165 165 165 165 165 165 165 165 165 1,980
Total 114,356 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 3,191 38,292
Total admin depreciation 172,240 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600

Operating
Jewelry clener 92 3 3 3 3 3 3 3 3 3 3 3 3 36
Total 2,204 91 91 91 91 91 91 91 91 91 91 91 91 1,092

112

Ring size 198 7 7 7 7 7 7 7 7 7 7 7 7 84
Mirror 388 17 17 17 17 17 17 17 17 17 17 17 17 204
Finger size 52 3 3 3 3 3 3 3 3 3 3 3 3 36
Total 716 29 29 29 29 29 29 29 29 29 29 29 29 348
Pre-investment cost
Billboard 2,012 83 83 83 83 83 83 83 83 83 83 83 83 996
Mark of company 120 5 5 5 5 5 5 5 5 5 5 5 5 60
Clear glass door 2,548 107 107 107 107 107 107 107 107 107 107 107 107 1,284
Total 38,576 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 19,308
Computer - - - - - - - - - - - - - -
Printer 1,430 60 60 60 60 60 60 60 60 60 60 60 60 720
Chair 1,190 50 50 50 50 50 50 50 50 50 50 50 50 600
Computer table 2,002 83 83 83 83 83 83 83 83 83 83 83 83 996
Fax 1,310 55 55 55 55 55 55 55 55 55 55 55 55 660
Sofa 6,360 265 265 265 265 265 265 265 265 265 265 265 265 3,180
Coffee table 1,098 47 47 47 47 47 47 47 47 47 47 47 47 564
Air conditioner 12,414 516 516 516 516 516 516 516 516 516 516 516 516 6,192
Fan 742 31 31 31 31 31 31 31 31 31 31 31 31 372
Drinking water machine 2,002 83 83 83 83 83 83 83 83 83 83 83 83 996
Refrigerator 3,294 136 136 136 136 136 136 136 136 136 136 136 136 1,632
Phone 618 27 27 27 27 27 27 27 27 27 27 27 27 324
Safe 9,960 415 415 415 415 415 415 415 415 415 415 415 415 4,980
Television 6,802 283 283 283 283 283 283 283 283 283 283 283 283 3,396
TV table 1,854 76 76 76 76 76 76 76 76 76 76 76 76 912
Computer Chair 1,550 26 26 26 26 26 26 26 26 26 26 26 26 312
Camera CCTV 13,500 225 225 225 225 225 225 225 225 225 225 225 225 2,700
cash register 5,500 92 92 92 92 92 92 92 92 92 92 92 92 1,104
Chandelier 9,900 165 165 165 165 165 165 165 165 165 165 165 165 1,980
Total 82,126 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 31,920

113

Operating
Jewelry clener 56 3 3 3 3 3 3 3 3 3 3 3 3 56
Total 1,112 91 91 91 91 91 91 91 91 91 91 91 91 1,112
Ring size 114 7 7 7 7 7 7 7 7 7 7 7 7 114
Mirror 184 17 17 17 17 17 17 17 17 17 17 17 17 184
Finger size 16 3 3 3 3 3 3 3 3 3 3 3 3 16
Total 368 29 29 29 29 29 29 29 29 29 29 29 29 368
Pre-investment cost
Billboard 1,016 83 83 83 83 83 83 83 83 83 83 83 83 1,016
Mark of company 60 5 5 5 5 5 5 5 5 5 5 5 5 60
Clear glass door 1,264 107 107 107 107 107 107 107 107 107 107 107 107 1,264
Total 19,268 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 18,268
Computer - - - - - - - - - - - - - -
Printer 710 60 60 60 60 60 60 60 60 60 60 60 60 710
Chair 590 50 50 50 50 50 50 50 50 50 50 50 50 590
Computer table 1,006 83 83 83 83 83 83 83 83 83 83 83 83 1,006
Fax 650 55 55 55 55 55 55 55 55 55 55 55 55 650
Sofa 3,180 265 265 265 265 265 265 265 265 265 265 265 265 3,180
Coffee table 534 47 47 47 47 47 47 47 47 47 47 47 47 534
Air conditioner 6,222 516 516 516 516 516 516 516 516 516 516 516 516 6,222
Fan 370 31 31 31 31 31 31 31 31 31 31 31 31 370
Drinking water machine 1,006 83 83 83 83 83 83 83 83 83 83 83 83 1,006
Refrigerator 1,662 136 136 136 136 136 136 136 136 136 136 136 136 1,662
Phone 294 27 27 27 27 27 27 27 27 27 27 27 27 294
Safe 4,980 415 415 415 415 415 415 415 415 415 415 415 415 4,980
Television 3,406 283 283 283 283 283 283 283 283 283 283 283 283 3,406
TV table 942 76 76 76 76 76 76 76 76 76 76 76 76 942
Computer Chair 1,550 26 26 26 26 26 26 26 26 26 26 26 26 1,550
Camera CCTV 13,500 225 225 225 225 225 225 225 225 225 225 225 225 13,500
cash register 5,500 92 92 92 92 92 92 92 92 92 92 92 92 5,500

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Chandelier 9,900 165 165 165 165 165 165 165 165 165 165 165 165 9,900
Total 56,302 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 2,660 56,302
4.4 Management Analysis
4.4.1. Organization Management
Soul of beauty we are family work. We have activities among employees in each department.
In each department is high responsibility to work. Every day we have meeting before and after
work. Chairman must talk with employees for make relationship in organization. We train
employee by we think they are one in our family. In every monday employees ware company
shirts.
Figure: 4.11. Shirt of staff

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4.4.2. Organization chart
Figure 4.12. Organization chart
• Position and character
Soul of beauty shop have total of employee amount 7 people and the below is show
descript the Position and character
1. CEO
CEO is more important for organization. They are will be high responsible in the
organization. Administration who has good human relation, good management, more
intelligence and experiences, good vision and good in strategy.
Character
- Male or Female
- More than 26 years old
- Bachelor degree up
- Work experience more than 2 year
- High responsibility, good skill in Microsoft office.

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- Good relationship and good skill in management.
2. General Manager
Have more skill in training the employee and can control work of employee to be
system and effective. Prepare for company working plan and selection new employees into the
appropriate position.
Character
- Male or female
- Age 24 - 30 years
- Graduate bachelor degree in school of management.
- Have computer skill
- Can do many works in the same time.
- High responsibility in work and good relationship.
- Good communicate to work with other person.
3. Marketing manager
Managing for product and service to customers satisfaction and analysis market trend
form seasoning. Do marketing and advertising and continuous to fine new customer.
Character
- Male or Female.
- Age 24 - 30 years.
- Bachelor degree with the major is marketing or relate major.
- Work experience more than 2 years.
- Have computer program skill.
- Good personality and relationship.
- Have negotiation skill.

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4. Financial
Financial have a responsible for revenue and expense of Soul of beauty. High skill of
financial and high responsibility. Managing the budget for make a finance spending complies
with regulation.
Character
- Male or Female.
- More than 24 years old.
- Bachelor degree up in accounting.
- Work experience more than 2 years
- Good experience in financial.
- Good skill on account program in computer.
- Can analysis the liquidity and financial of company.
- High responsibility.
- Have patience, enthusiasm and integrity.
- To be honest on work.
5. Sale manager
For increase sale sale manager do marketing and make advertising to promote the shop.
Analysis market trend from seasoning and managing for product and service to customers
satisfaction.
Character
- Male or Female
- Age 24 - 30
- Bachelor degree in marketing major or relate major.

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- Work experience more than 2 years.
- Computer program skill.
- High negotiation skill and relationship skill.
- Good personality.
6. Customer assistant
We focus on service mind. Sale person is important because they make customer
royalty in our products. So sale person need to good relationship with customers, this is
important.
Character
- Female
- Age more than 20 years.
- Secondary school degree or Vocation education level up with relate to the major
was learn.
- Work experience more than 1 year.
- Friendly personality can speak English.
- High responsibility, body active and calculate skill.

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4.4.3. Administration cost

120

4.5 Technical feasibility conclusion
“Soul of Beauty” is Soul of beauty has several products and categorize in 3 big groups
that offer to customer selection that different life style and preferred. Creating image of quality
products and customer can order product by their own design. Soul of Beauty jewelry has
created a new jewelry design up to date fashionable and still keep quality, identity and valuable
and have service mine for make our customer satisfy and respond our customer’s want. We
give attention to every detail of services for both during sale and after sale services. We select
high skill salesperson and they can speak several languages to service foreign tourists. We
have clean jewelry service to customers, whether they buy from anywhere. We are pleased to
advice and fain for customers in any time. Our shop have credit card service, this service is
high security to offer confidence to our customers. And create an atmosphere in the shop that
our customer can feel good and know how they impotent because we take care to customer and
we try to make convenience to customers to satisfaction and feel happily. By create beautifully
and modern decoration all equipment and utility in the shop we concern about quality and
convenience for customer. Our shop building on Kalare Night Bazaar is located on 7 raise
piece of land in night bazaar area in zone G this area for souvenir jewelry and handicrafts. We
choose this area because it is the main road for business in Chiang Mai, surrounded by many
big projects and five star hotels and trading center and meeting point for both Thai and
foreigners. Moreover, this area is convenience to our customer to shop several of shops and
products.
In the part of management divide in to pre-operation period and operation period, first
we select standard construction material because we concern about safety. Moreover, we try to
create good atmosphere to attract the customer and build the brand image tend to be modern.
The interior aims to dark tone for enhance our product saliently. Second we set the internet for

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communicate with supplier or customer and fast up date information. Then any facilities all
invest for create the best things for customer and support our operation run smoothly.

122

Chapter 5
Financial Analysis

123

Chapter 5 Financial Analysis
Interest 60 month
Month Principle Payment Interest (9%) Principle payment Accu interest Total
- 2,000,000
1 1,973,483 41,517 15,000 26,517 15,000 41,517
2 1,946,768 41,517 14,801 26,716 29,801 83,033
3 1,919,852 41,517 14,601 26,916 44,402 124,550
4 1,892,734 41,517 14,399 27,118 58,801 166,067
5 1,865,413 41,517 14,196 27,321 72,996 207,584
6 1,837,887 41,517 13,991 27,526 86,987 249,100
7 1,810,154 41,517 13,784 27,733 100,771 290,617
8 1,782,213 41,517 13,576 27,941 114,347 332,134
9 1,754,063 41,517 13,367 28,150 127,714 373,650
10 1,725,702 41,517 13,155 28,361 140,869 415,167
11 1,697,128 41,517 12,943 28,574 153,812 456,684
12 1,668,340 41,517 12,728 28,788 166,540 498,201
13 1,639,336 41,517 12,513 29,004 179,053 539,717
14 1,610,114 41,517 12,295 29,222 191,348 581,234
15 1,580,673 41,517 12,076 29,441 203,424 622,751
16 1,551,012 41,517 11,855 29,662 215,279 664,267
17 1,521,127 41,517 11,633 29,884 226,912 705,784
18 1,491,019 41,517 11,408 30,108 238,320 747,301
19 1,460,685 41,517 11,183 30,334 249,503 788,817
20 1,430,124 41,517 10,955 30,562 260,458 830,334
21 1,399,333 41,517 10,726 30,791 271,184 871,851
22 1,368,311 41,517 10,495 31,022 281,679 913,368
23 1,337,057 41,517 10,262 31,254 291,941 954,884
24 1,305,568 41,517 10,028 31,489 301,969 996,401
25 1,273,843 41,517 9,792 31,725 311,761 1,037,918
26 1,241,880 41,517 9,554 31,963 321,315 1,079,434
27 1,209,677 41,517 9,314 32,203 330,629 1,120,951
28 1,177,233 41,517 9,073 32,444 339,701 1,162,468
29 1,144,546 41,517 8,829 32,687 348,530 1,203,985
30 1,111,613 41,517 8,584 32,933 357,115 1,245,501
31 1,078,434 41,517 8,337 33,180 365,452 1,287,018
32 1,045,005 41,517 8,088 33,428 373,540 1,328,535
33 1,011,326 41,517 7,838 33,679 381,377 1,370,051
34 977,394 41,517 7,585 33,932 388,962 1,411,568
35 943,208 41,517 7,330 34,186 396,293 1,453,085
36 908,765 41,517 7,074 34,443 403,367 1,494,602
37 874,064 41,517 6,816 34,701 410,183 1,536,118
38 839,103 41,517 6,555 34,961 416,738 1,577,635
39 803,880 41,517 6,293 35,223 423,031 1,619,152
40 768,392 41,517 6,029 35,488 429,061 1,660,668
41 732,638 41,517 5,763 35,754 434,823 1,702,185
42 696,616 41,517 5,495 36,022 440,318 1,743,702

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43 660,324 41,517 5,225 36,292 445,543 1,785,219
44 623,760 41,517 4,952 36,564 450,495 1,826,735
45 586,922 41,517 4,678 36,839 455,173 1,868,252
46 549,807 41,517 4,402 37,115 459,575 1,909,769
47 512,414 41,517 4,124 37,393 463,699 1,951,285
48 474,740 41,517 3,843 37,674 467,542 1,992,802
49 436,784 41,517 3,561 37,956 471,103 2,034,319
50 398,543 41,517 3,276 38,241 474,378 2,075,836
51 360,015 41,517 2,989 38,528 477,368 2,117,352
52 321,199 41,517 2,700 38,817 480,068 2,158,869
53 282,091 41,517 2,409 39,108 482,477 2,200,386
54 242,690 41,517 2,116 39,401 484,592 2,241,902
55 202,993 41,517 1,820 39,697 486,413 2,283,419
56 162,999 41,517 1,522 39,994 487,935 2,324,936
57 122,705 41,517 1,222 40,294 489,157 2,366,452
58 82,109 41,517 920 40,596 490,078 2,407,969
59 41,208 41,517 616 40,901 490,694 2,449,486
60 0 41,517 309 41,208 491,003 2,491,003
Table 5.1 Interest 60 statement

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Income Statement (2011)
Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Total
Sale 200,250 200,250 100,750 100,750 75,475 67,225 75,475 100,750 100,750 183,750 213,000 213,000 1,631,425
Cost of goods sold 60,075 60,075 30,225 30,225 22,643 20,168 22,643 30,225 30,225 55,125 63,900 63,900 489,428
Gross income 140,175 140,175 70,525 70,525 52,833 47,058 52,833 70,525 70,525 128,625 149,100 149,100 1,141,998
Operating expense
Selling 4,505 4,505 2,515 2,515 13,331 11,928 13,331 17,428 17,428 3,975 4,760 4,760 100,980
General & Administrative 50,994 46,440 46,440 46,440 46,440 46,440 46,840 46,440 46,440 46,440 46,440 46,440 562,234
Pre-investment expense 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 1,609 19,308
Depreciation 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Total operating expenses 61,883 57,329 55,339 55,339 66,155 64,752 66,555 70,252 70,252 56,799 57,584 57,584 739,822
- - - - - - - -
Income before interest and tax 18,217 22,771 15,039 15,039 35,965 37,862 36,365 29,952 29,952 16,701 27,616 27,616 87,252
Interest expense (2,000,000)(9%) 15,000 14,801 14,601 14,399 14,196 13,991 13,784 13,576 13,367 13,155 12,943 12,728 166,540
- - - - - - -
Net income(loss) for the year 3,217 7,771 39 39 20,965 22,862 21,365 14,952 14,952 1,701 12,616 12,616 92,748
Table 5.2 Income statement in Y2011

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Income Statement(2012)
Sale 208,500 208,500 107,800 107,800 107,800 107,800 118,375 118,375 118,375 208,500 221,250 246,750 1,879,825
Gross income 145,950 145,950 75,460 75,460 75,460 75,460 82,863 82,863 82,863 145,950 154,875 172,725 1,315,878
Operating expense
Selling 4,170 4,170 2,156 2,156 2,156 2,156 2,368 2,368 2,368 4,170 4,425 4,935 37,597
Depreciation 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Income before interest and tax 90,157 94,711 26,235 26,235 26,235 26,235 33,026 33,426 33,426 94,711 103,381 120,721 708,499
Tax (20%) 18,031 18,942 5,247 5,247 5,247 5,247 6,605 6,685 6,685 18,942 20,676 24,144 141,700
Interest expense (2,000,000)(9%) 12512.55 12295.02 12075.86 11855.05 11632.59 11408.46 11182.64 10955.14 10725.93 10495 10262.33 10027.93 135,428
Net income(loss) for the year 59,613 63,474 8,912 9,133 9,355 9,580 15,238 15,786 16,015 65,274 72,442 86,549 431,371
Table 5.3 Income statement Y2012

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Sale 321,875 321,875 171,000 171,000 166,500 166,500 166,500 199,000 199,000 290,250 321,875 321,875 2,817,250
Gross income 225,313 225,313 119,700 119,700 116,550 116,550 116,550 139,300 139,300 203,175 225,313 225,313 1,972,075
Operating expense
Selling 6,438 6,438 3,420 3,420 3,330 3,330 3,330 3,980 3,980 5,805 6,438 6,438 56,345
Depreciation 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Income before interest and tax 167,252 171,806 69,211 69,211 66,151 66,151 65,751 88,251 88,251 150,301 171,806 171,806 1,345,948
Tax (20%) 33,450 34,361 13,842 13,842 13,230 13,230 13,150 17,650 17,650 30,060 34,361 34,361 269,190
Net income(loss) for the year 124,010 127,891 46,055 46,296 44,092 44,337 44,264 62,513 62,763 112,656 130,114 130,371 975,360

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Income Statement(2014)
Sale 404,875 354,750 242,500 242,500 199,000 144,000 199,000 242,500 242,500 339,500 367,500 404,875 3,383,500
Cost of goods sold 121,463 106,425 72,750 72,750 59,700 43,200 59,700 72,750 72,750 101,850 110,250 121,463 1,015,050
Gross income 283,413 248,325 169,750 169,750 139,300 100,800 139,300 169,750 169,750 237,650 257,250 283,413 2,368,450
Operating expense
Selling 8,098 7,095 4,850 4,850 3,980 2,880 3,980 4,850 4,850 6,790 7,350 8,098 67,670
Depreciation 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Tax (20%) 44,738 38,832 23,566 23,566 17,650 10,170 17,570 23,566 23,566 36,758 40,566 45,649 346,200
Net income(loss) for the year 171,879 148,513 87,709 87,972 64,572 34,918 64,786 89,040 89,312 142,355 157,863 178,473 1,380,955

129

Sale 436,625 428,375 307,625 242,500 242,500 204,750 242,500 242,500 307,625 391,000 412,000 433,325 3,891,325
Cost of goods sold 130,988 128,513 92,288 72,750 72,750 61,425 72,750 72,750 92,288 117,300 123,600 129,998 1,167,398
Gross income 305,638 299,863 215,338 169,750 169,750 143,325 169,750 169,750 215,338 273,700 288,400 303,328 2,723,928
Operating expense
Selling 8,733 8,568 6,153 4,850 4,850 4,095 4,850 4,850 6,153 7,820 8,240 8,667 77,827
Depreciation 120 120 120 120 120 120 120 120 120 120 120 120 1,480
Tax (20%) 49,057 48,845 32,423 23,566 23,566 18,432 23,486 23,566 32,423 43,762 46,618 49,518 415,465
Interest expense (2,000,000)(9%) 3,561 3,276 2,989 2,700 2,409 2,116 1,820 1,522 1,222 920 616 309 23,461
Net income(loss) for the year 192,668 192,105 126,704 91,565 91,856 71,613 92,125 92,742 128,470 174,129 185,857 197,765 1,638,398
Table 5.6 Income statement in Y2015

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Balance Sheet (2011)
Asset JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Current asset
Cash 200,250 200,250 100,750 100,750 75,475 67,225 75,475 100,750 100,750 183,750 213,000 213,000 1,631,425
Total current asset 200,250 200,250 100,750 100,750 75,475 67,225 75,475 100,750 100,750 183,750 213,000 213,000 1,631,425
Fixed Asset
Machine 5,680 - - - - - - - - - - - 5,680
Equipment 4,100 - - - - - - - - - - - 4,100
Office equipment 196,728 - - - - - - - - - - - 196,728
Total fixed asset 206,508 - - - - - - - - - - - 206,508
Total asset 406,758 200,250 100,750 100,750 75,475 67,225 75,475 100,750 100,750 183,750 213,000 213,000 1,837,933
Liability and Equity
Liability
Long term note payable 2,000,000 - - - - - - - - - - - 2,000,000
Total liability 2,000,000 - - - - - - - - - - - 2,000,000

Equity
Owner equity 2,000,000 - - - - - - - - - - - 2,000,000

- -
Total equity 162,067 - - - - - - - - - - - 162,067
Total liability and equity 1,837,933 - - - - - - - - - - - 1,837,933
Table 5.6 Balance sheet Y2011

131

Current asset
Cash 208,500 208,500 107,800 107,800 107,800 107,800 118,375 118,375 118,375 208,500 221,250 246,750 1,879,825
Fixed Asset
Machine - - - - - - - - - - - - -
Equipment - - - - - - - - - - - - -
Office equipment - - - - - - - - - - - - -
Total fixed asset - - - - - - - - - - - - -
Total asset 208,500 208,500 107,800 107,800 107,800 107,800 118,375 118,375 118,375 208,500 221,250 246,750 1,879,825
Liability
Total liability 1,639,336 - - - - - - - - - - - 1,639,336
Equity -
Owner equity 240,489 - - - - - - - - - - - 240,489
Total equity 240,489 - - - - - - - - - - - 240,489

132

Current asset
Cash 321,875 321,875 171,000 171,000 166,500 166,500 166,500 199,000 199,000 290,250 321,875 321,875 2,817,250
Fixed Asset
Machine - - - - - - - - - - - - -
Equipment - - - - - - - - - - - - -
Total asset 321,875 321,875 171,000 171,000 166,500 166,500 166,500 199,000 199,000 290,250 321,875 321,875 2,817,250
Liability
Total liability 1,639,336 - - - - - - - - - - - 1,639,336
Equity -
Owner equity 1,177,914 - - - - - - - - - - - 1,177,914
Total equity 1,177,914 - - - - - - - - - - - 1,177,914

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Current asset
Cash 404,875 354,750 242,500 242,500 199,000 144,000 199,000 242,500 242,500 339,500 367,500 404,875 3,383,500
Fixed Asset
Machine - - - - - - - - - - - - -
Equipment - - - - - - - - - - - - -
Total asset 404,875 354,750 242,500 242,500 199,000 144,000 199,000 242,500 242,500 339,500 367,500 404,875 3,383,500
Liability
Total liability 1,639,336 - - - - - - - - - - - 1,639,336
Equity -
Owner equity 1,744,164 - - - - - - - - - - - 1,744,164
Total equity 1,744,164 - - - - - - - - - - - 1,744,164

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Current asset
Cash 436,625 428,375 307,625 242,500 242,500 204,750 242,500 242,500 307,625 391,000 412,000 433,325 3,891,325
Fixed Asset
Machine - - - - - - - - - - - - -
Equipment - - - - - - - - - - - - -
Total asset 436,625 428,375 307,625 242,500 242,500 204,750 242,500 242,500 307,625 391,000 412,000 433,325 3,891,325
Liability
Total liability 1,639,336 - - - - - - - - - - - 1,639,336
Equity -
Owner equity 2,251,989 - - - - - - - - - - - 2,251,989
Total equity 2,251,989 - - - - - - - - - - - 2,251,989

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Cash flow statement (2011)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Capital Investment (own) -
Working capital - 100,000
-
Loan repayment - 26,517 - 26,716 - 26,916 - 27,118 - 27,321 - 27,526 - 27,733 - 27,941 - 28,150 - 28,361 28,574 - 28,788
revenue 200,250 200,250 100,750 100,750 75,475 67,225 75,475 100,750 100,750 183,750 213,000 213,000
Cost-variable
selling cost - 4,505 - 4,505 - 2,515 - 2,515 - 13,331 - 11,928 - 13,331 - 17,428 - 17,428 - 3,975 - 4,760 - 4,760
Sale promotion cost - - - - - 11,321 - 10,084 - 11,321 - 15,113 - 15,113 - - -

-
cost of good sold - 60,075 - 60,075 - 30,225 - 30,225 - 22,643 - 20,168 - 22,643 - 30,225 - 30,225 - 55,125 63,900 - 63,900
-
Total variable cost - 64,580 - 64,580 - 32,740 - 32,740 - 47,295 - 42,180 - 47,295 - 62,765 - 62,765 - 59,100 68,660 - 68,660
Cost-fixed
Equipment & Machine
cost - 206,508 - - - - - - - - - - -
Marketing expense - 500 - 500 - 500 - 500 - 500 - 500 - 500 - 300 - 300 - 300 - 500 - 500
Administration cost - 50,994 - 46,440 - 46,440 - 46,440 - 46,440 - 46,440 - 46,840 - 46,440 - 46,440 - 46,440 - 46,440 - 46,440
Total fixed cost - 258,002 - 46,940 - 46,940 - 46,940 - 46,940 - 46,940 - 47,340 - 46,740 - 46,740 - 46,740 - 46,940 - 46,940
-
Interest - 15,000 - 14,801 - 14,601 - 14,399 - 14,196 - 13,991 - 13,784 - 13,576 - 13,367 - 13,155 12,943 - 12,728
Tax (20%) - - - - - - - - - - - -
-
Cash flow - 263,849 47,213 - 20,447 - 20,447 - 60,276 - 63,411 - 60,676 50,272 - 50,272 36,393 55,883 55,883
Discounted cash flow -฿20,171.93 ฿3,609.58 -฿1,563.20 -฿1,563.20 -฿4,608.27 -฿4,847.95 -฿4,638.85 -฿3,843.40 -฿3,843.40 ฿2,782.36 ฿4,272.42 ฿4,272.42
Cumulative discounted
cash flow -฿20,171.93 -฿16,562.35 -฿18,125.56 -฿19,688.76 -฿24,297.03 -฿29,144.99 -฿33,783.84 -฿37,627.24 -฿41,470.65 -฿38,688.28 -฿34,415.86 -฿30,143.44
Table 5.11 Cash flow Y2011

136

Capital Investment
(own) -
Working capital -
Loan repayment - 55,521 - 55,937 - 56,357 - 56,779 - 57,205 - 57,634 - 58,067 - 58,502 - 58,941 - 59,383 - 59,828 - 60,277
revenue 208,500 208,500 107,800 107,800 107,800 107,800 118,375 118,375 118,375 208,500 221,250 246,750
Cost-variable
selling cost - 4,170 - 4,170 - 2,156 - 2,156 - 2,156 - 2,156 - 2,368 - 2,368 - 2,368 - 4,170 - 4,425 - 4,935
Sale promotion cost - 16,170 - 16,170 - 17,756 - 17,756 - 17,756
cost of good sold - 62,550 - 62,550 - 32,340 - 32,340 - 32,340 - 32,340 - 35,513 - 35,513 - 35,513 - 62,550 - 66,375 - 74,025
- - -
Total variable cost - 66,720 - 66,720 - 34,496 - 34,496 - 50,666 - 50,666 - 55,636 55,636 - 55,636 - 66,720 70,800 78,960
Cost-fixed
Equipment & Machine
cost - - - - - - - - - - - -
Total fixed cost - 51,494 - 46,940 - 46,940 - 46,940 - 46,940 - 46,940 - 47,340 - 46,740 - 46,740 - 46,740 - 46,940 - 46,940
-
Interest 12,513 - 12,295 - 12,076 - 11,855 - 11,633 - 11,408 - 11,183 - 10,955 - 10,726 - 10,495 - 10,262 - 10,028
Tax (20%) - - - - - - - - - - - -
Cash flow 73,747 73,548 4,871 4,669 - 11,704 - 11,909 - 6,511 - 6,719 - 6,928 71,902 80,359 97,485
Discounted cash flow 5,638 5,623 372 357 - 895 - 910 - 498 - 514 - 530 5,497 6,144 7,453
cash flow -฿24,505.32 -฿18,882.41 -฿18,509.98 -฿18,152.99 -฿19,047.78 -฿19,958.24 -฿20,455.99 -฿20,969.64 -฿21,499.31 -฿16,002.21 -฿9,858.53 -฿2,405.54

137

Working capital -
Loan repayment - 31,725 - 31,963 - 32,203 - 32,444 - 32,687 - 32,933 - 33,180 - 33,428 - 33,679 - 33,932 - 34,186 - 34,443
revenue 321,875 321,875 171,000 171,000 166,500 166,500 166,500 199,000 199,000 290,250 321,875 321,875
Cost-variable
selling cost - 6,438 - 6,438 - 3,420 - 3,420 - 3,330 - 3,330 - 3,330 - 3,980 - 3,980 - 5,805 - 6,438 - 6,438
cost of good sold - 96,563 - 96,563 - 51,300 - 51,300 - 49,950 - 49,950 - 49,950 - 59,700 - 59,700 - 87,075 - 96,563 - 96,563
Total variable cost - 103,000 - 103,000 - 54,720 - 54,720 - 78,255 - 78,255 - 78,255 - 93,530 - 93,530 - 92,880 - 103,000 - 103,000
Cost-fixed
Equipment & Machine cost - -
Billbroad - - - 80,000
Total fixed cost - 51,494 - 46,940 - 46,940 - 46,940 - 46,940 - 46,940 - 47,340 - 46,740 - 126,740 - 46,740 - 46,940 - 46,940
Interest - 9,792 - 9,554 - 9,314 - 9,073 - 8,829 - 8,584 - 8,337 - 8,088 - 7,838 - 7,585 - 7,330 - 7,074
Tax (20%) - - - - - - - - 141,700 - - -
Cash flow 125,864 130,418 27,823 27,823 - 212 - 212 - 612 17,213 - 204,486 109,113 130,418 130,418
Discounted cash flow 9,623 9,971 2,127 2,127 - 16 - 16 - 47 1,316 - 15,634 8,342 9,971 9,971
cash flow 7,217 17,188 19,315 21,442 21,426 21,410 21,363 22,679 7,046 15,388 25,358 35,329
Table 5.13 Cash flow Y 2013

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Working capital -
Loan repayment - 34,701 - 34,961 - 35,223 - 35,488 - 35,754 - 36,022 - 36,292 - 36,564 - 36,839 - 37,115 - 37,393 - 37,674
revenue 404,875 354,750 242,500 242,500 199,000 144,000 199,000 242,500 242,500 339,500 367,500 404,875
Cost-variable
selling cost - 8,098 - 7,095 - 4,850 - 4,850 - 3,980 - 2,880 - 3,980 - 4,850 - 4,850 - 6,790 - 7,350 - 8,098
Sale promotion cost - - - 29,850 - 21,600 - 29,850 - 36,375 - 36,375
cost of good sold - 121,463 - 106,425 - 72,750 - 72,750 - 59,700 - 43,200 - 59,700 - 72,750 - 72,750 - 101,850 - 110,250 - 121,463
Cost-fixed
Equipment & Machine cost - -
Billbroad - 80,000
-
Total fixed cost - 51,494 - 46,940 - 46,940 - 46,940 - 46,940 - 46,940 - 47,340 - 46,740 - 126,740 46,740 - 46,940 - 46,940
Interest - 6,816 - 6,555 - 6,293 - 6,029 - 5,763 - 5,495 - 5,225 - 4,952 - 4,678 - 4,402 - 4,124 - 3,843
Tax (20%) - 269,190
Cash flow 182,304 152,773 76,443 76,443 17,013 - 12,137 16,613 40,268 - 39,732 142,603 161,443 186,858
-
Discounted cash flow 13,938 11,680 5,844 5,844 1,301 - 928 1,270 3,079 3,038 10,902 12,343 14,286
Cumulative discounted cash flow 49,267 60,947 66,791 72,635 73,936 73,008 74,278 77,357 74,319 85,222 97,564 111,850
Table 5.14 Cash flow Y 2014

139

คอลัมน1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Working capital -
Loan repayment - 37,956 - 38,241 - 38,528 - 38,817 - 39,108 - 39,401 - 39,697 - 39,994 - 40,294 - 40,596 - 40,901 - 41,208
revenue 436,625 428,375 307,625 242,500 242,500 204,750 242,500 242,500 307,625 391,000 412,000 433,325
Cost-variable
selling cost - 8,733 - 8,568 - 6,153 - 4,850 - 4,850 - 4,095 - 4,850 - 4,850 - 6,153 - 7,820 - 8,240 - 8,667
cost of good sold - 130,988 - 128,513 - 92,288 - 72,750 - 72,750 - 61,425 - 72,750 - 72,750 - 92,288 - 117,300 - 123,600 - 129,998
Cost-fixed
Equipment & Machine cost -

Billbroad - 80,000
Total fixed cost - 51,490 - 46,940 - 46,940 - 46,940 - 46,940 - 46,940 - 47,340 - 46,740 - 126,740 - 46,740 - 46,940 - 46,940
Interest - 3,561 - 3,276 - 2,989 - 2,700 - 2,409 - 2,116 - 1,820 - 1,522 - 1,222 - 920 - 616 - 309
Tax (20%) - 346,200
Cash flow 241,854 241,079 159,256 115,260 79,176 59,462 79,365 80,263 35,079 218,220 232,604 247,412
Discounted cash flow 18,490 18,431 12,176 8,812 6,053 4,546 6,068 6,136 2,682 16,683 17,783 18,915
Cumulative discounted cash flow 130,341 148,772 160,947 169,759 175,812 180,358 186,426 192,562 195,244 211,928 229,711 248,626

140

- NPV (0.09) = 248,626
- IRR = 113.36%
The rate of return of this investment project is 113.36%. The net worth of this project is
248,626.
Net present value is positive so we will accept the project
Internal rate of return exceeds cost of capital, project is worthwhile.
- Return on Investment Ratio = net profits before tax / shareholders equity.
Y 2011
ROI = 87,252/162,067 = 0.538
So return on investment is 53.8 %

141

Chapter 6
Risk Management

142

Chapter 6 Risk Management
6.1 Risk analysis
6.1.2 Internal Forces
• Political
Government is a key leadership role in creating prosperity to occur. Across all regions
of the country and create a quality of life of Thai people have always been and also has
incentives to accelerate the tax support. Developing export tourism industry is affect the
economy, Country’s growth and people have a job with more income and poverty. Most of the
Thai people exhausted. Local government must take measures and rights, benefits tax. To
support, modifying growth business investment of private sector in Chiang Mai, Rights and
benefits of tax Chiang Mai Municipality will use the tool. Promote the changes in the jewelry
business. In a separate principle, 2 way is to tax and tax breaks that are in jurisdictions.
Operators interested in investing or expanding investment. The financial cost is lower by the
tax exemption or modification to specific types of activities will support the development of
business and tourist markets of Chiang Mai achieve goals.
. Political weakness may affect. The weak economy, tourist city of Chiang Mai, which
mainly economic is aimed at tourists. The country has political problems would affect the
audience. To come here, which means consumers are sensitive to news or news that is
concerned with the general public. Before consumption products and services Political and
smog problems that occur in the North now. Impact on tourism Mon. Chiang Mai Foreign
tourists, particularly Europe, has decreased significantly. Because tourists are not confident in
the situation to deflect see neighbors instead. The Thai visitors were reduced as well.

143

Political policies could affect business. If the government has promoted the jewelry
business may increase the economic growth of the business. Government policy should
promote tourism both at the local level and national level.
• Economic
Selling ceramic affected continued problems and other political and economic burden
of adjustment costs increase and affect the confidence of consumers. It makes real estate in
distress and make hard decisions in purchasing power of consumers has also reduced severe
competition from goods produced in both countries, together own and imported products,
especially from China. Make available ceramic used as construction materials. Bush and
flagstone walls and a bathroom down is sales personnel flagstone wall in 2009 is 147.16
million square meters of volume. Sanitary and sales volume down from 3.89 million units last
year 2.43 percent and 12.74 respectively, which is subject to market conditions of flagstone.
Bush sided with the market based on the old home while repairs to sanitary ware based on the
new home market.
Jewelry production and distribution in 2010 was affected by economic problems.
Politics and the burden of adjustment cost increases. Affect the confidence of consumers. Real
estate business in the slow hard and the power to make buying decisions of consumers are
down. Some of these products expand to export markets. Resulting in production growth this
year also increased. But the growth rate decreased from the previous year.
Jewelry design is based on the needs in each period. Severe distress is affected directly.
Making Manufacture ware production decreased significantly. If buying a good economy
people are buying. It is another factor. That the jewelry businesses grow. In addition to the

144

severe competition from goods produced in countries with friendly and imported products,
especially from China. In neighboring countries and major competitors like China.
business must be developed to compete with a country. For jewelry production and distribution
in 2011 are likely to grow up a little. The economic situation in the country in the recovery
stage and Operations in 2011 with a budget to stimulate the economy, the Thai government's
program will be strong. From the practical results which will cause more flow in the economy.
And people are buying more in the export of jewelry products in 2010 was affected by the
financial crisis that occurred in the United States and progression to the European Union.
Cause the world economic slowdown. Resulting in export products, jewelry products decreased
in all major markets including the United States Union America, Europe and Japan for export
products, jewelry flat trend in 2010, Because of exports to key markets including the United
States, European Union and Japan also can not grow much.
• Technology
Department of Science Service is research and Experiments in ceramic technology to
be develop manufacturing processes and Quality of raw materials and products and also
broadcast to the audience. This action of the Department of Science Service helps reinforce
basic science and technology performance of the country strong. The Department of Science
Service has set guidelines for the research and development, industry and agriculture
industries, the stone size and medium-sized (SME) for sustainable development and new
knowledge to use in developing and industrial. Rural economies and societies of the country
flourish.

145

• Internet
We used to communicate information within and outside agencies to reduce the steps at
work cause convenience correct operation of the organization. Working with the Internet is part
of the organization will be successful in operating high. It can be used to contact customers
directly but on the other hand is the cost higher. If you want a quality system cost will upward
with.
• Transportation
Used in moving and transporting goods from factory to customer. The implementation
of computer and technology help to convenient and Speed of the transport. Affect the
transportation is efficient. The company has won the trust and confidence of customers. When
the move, Transportation and good and on schedule.
• Infrastructure
Because of the company are components of the electronic system Infrastructure
technology is worth more. Costs in procurement are more maintenance, respectively. But the
part that God will have advantages in advanced manufacturing. Meet customer needs
• Social
Social includes the belief, value, and attitude of person in the social. The social is
reflected by culture, education, religious, and other social environments of other social. The
social condition is continuously changed because of person in the social need to control and
adapt you with the environment. When the social condition is changed, the need of person is
also changed such as dressing, hobby, even requirement of goods and service. There have
effect to our business if social condition changes that it is risk, business have to improve and

146

develop for suitable about social condition. The company is located within the source business.
There are also other companies located nearby and neighboring provinces also. Factors include
the cultural aspects that are the same culture and they have good health consciousness,
population has growth rate, career attitudes and emphasis on safety. Trends in social factors
affect the demand for a company's products are high and company can operates as well.
Furthermore, companies may change various management strategies to adapt to these social
trends
• Customer
The need of customer in the purchase of product and service of Soul of Beauty is may
change the cause to different such as the trend of customer demand is changes to the era which
there are attitudes and lifestyle are different and want the jewelry form is unique because the
customer will pay attention with jewelry for the work out is best. Moreover there are a lot of
competitor’s businesses it is choice for customer choose. In this cause are the direct risk to the
business that may occur which will affect to sales and revenue etc.
From above the reasons is risk that affects to changes the demand of buying behavior
of customer. Soul of Beauty must to risk management for consideration customer demand is
important. So we should using the Marketing strategy is focuses on customer intimacy by
through talking until can attractive of customer demand for focus on service is expertise,
decoration, image with a professional and give consultants include pay attention to detail,
customer satisfaction with our services. Furthermore we can create the variety design for
respond the customer demand.

147

6.1.2 Internal Forces
Internal risk had effected to the company as the company can control and protect to reduce risk
include Human resource risk, forecasting risk and stolen.
• Human Resource Risk
The Soul of Beauty Company’s employees are very importance because employees
work with customer closely and have to introduce product and communicate with customer
directly. Employee need to have interpersonal skill, communication skill, language skill and
negotiation skill. These skills are basic employee qualification for company. The company
have a risk in hiring employee to organization such as employee skill, performance and honest.
So the company resolves these risks by
- Resume checking and background scanning for recruitment good employee to the
organization
-The company determines qualification and duty of each position
-Training employee before work to reduce mistake during work
• Demand Forecasting Risk
The company holds risks in forecasting demand, in high season generally many tourists flow to
Chiang Mai and rich trade so the company order big amount of product. It risk to over
inventory and increase cost of holding inventory. So our company has promotion for inventory
to reduce risk in holding and fashionable trend risk and aware the level of inventory for
planning demand forecast. Shortage in low season, because forecasting lower demand and
order in less amount. It risks to lose opportunity to sell products, customer switch to
competitor, customer unsatisfied and lose customer. Then our company have to deal with

148

supplier immediately and order for customer as soon as possible. Moreover, we have to
concern, follow the product and answer the customer immediately for customer satisfied.
• Stolen
Jewelry is valuable product so it may be stolen and lose. The company risk to fail and hold the
cost. Then company has policy in security system to protect losing product and stolen. Our
company’s design the plan of shop systematically and can see in every point and setting
closed-circuit television and the valuable product is kept in strongbox.
Increase in interest rate
If interest rate increases by 1%, that is 10%, the payback period is 2 years and 6 months
Hence, if interest rate increases by 10%, 11% and 12%, it doesn’t have effect to our
company payback period.
Increase in interest rate
2.85
2.8
2.75
2.7
2.65
2.6
2.55
2.5
Increase by 1% Increase by 2% Increase by 3%

149

Finance Risk
- If the company decrease by 2% in sale , It will be affect to company sale revenue as follow .
Y 2011 2,005,050 sale revenue is 1,964,949
Y 2012 2,308,000 sale revenue is 2,261,840
Y 2013 2,657,375 sale revenue is 2,604,228
Y 2014 3,188,625 sale revenue is 3,124,853
Y 2015 3,823,000 sale revenue is 3,746,540
- If the company sale revenue decreases 2% in sale, it will affect on net income as follow.
Y 2011 489,681 net income is 479,887
Y 2012 673,919 net income is 660,441
Y 2013 923,753 net income is 905,278
Y 2014 1,277,090 net income is 1,251,548
Y 2015 1,697,145 net income is 1,663,202
So, if the company decrease 2% in sale, it will affect to our company's payback period is 2
years 347 days.
- If the company decreases by 3% in sale, it will be effect to company sale revenue as follow.
Y 2011 2,005,050 sale revenue is 1,944,899
Y 2012 2,308,000 sale revenue is 2,238,760
Y 2013 2,657,375 sale revenue is 2,577,654
Y 2014 3,188,625 sale revenue is 3,092,966
Y 2015 3,823,000 sale revenue is 3,708,310

150

- If the company sale revenue decrease 3% in sale ,it will affect on net income as follow.
Y 2011 489,681 net income is 474,990
Y 2012 673,919 net income is 653,702
Y 2013 923,753 net income is 896,041
Y 2014 1,277,090 net income is 1,238,777
Y 2015 1,697,145 net income is 1,646,231
years 355 days.
-If the company decrease by 4% in sale, It will be affect to company sale revenue
as follow.
Y 2011 2,005,050 sale revenue is 1,924,848
Y 2012 2,308,000 sale revenue is 2,215,680
Y 2013 2,657,375 sale revenue is 2,551,080
Y 2014 3,188,625 sale revenue is 3,061,080
Y 2015 3,823,000 sale revenue is 3,670,080
- If the company sale revenue decreases 4% in sale, it will affect on net income as follow.
Y 2011 489,681 net income is 470,094
Y 2012 673,919 net income is 646,963
Y 2013 923,753 net income is 886,803
Y 2014 1,277,090 net income is 1,226,006
Y 2015 1,697,145 net income is 1,629,259
years 363 days.

151

Decrease in Total Sales between year 2011-2015
4,000,000
3,500,000
3,000,000 Y 2011
2,500,000
Y 2012
2,000,000
1,500,000 Y 2013
1,000,000 Y 2014
500,000 Y 2015
-
2% 3% 4%
2% 3% 4%
Y 2011 1,964,949 1,944,899 1,924,848
Y 2012 2,261,840 2,238,760 2,215,680
Y 2013 2,604,228 2,577,654 2,551,080
Y 2014 3,124,853 3,092,966 3,061,080
Y 2015 3,746,540 3,708,310 3,670,080
So, if company's total sale continuing to decrease more than 4%,it will effect to our company's
payback period will be longer.
Increase in cost/expense
- If the company's cost/expense increases by 2%,it will affect to pur company's net income as
follow
Expense
Y 2011 730,345 net income is 475,074
Y 2012 758,612 net income is 658,747
Y 2013 866,453 net income is 792,893
Y 2014 913,359 net income is 1,109,010
Y 2015 962,215 net income is 1,491,919
So,if company's cost/expense increase by 2% it will affect to our company's payback period is
3 years and 24 days

152

follow
Expense
Y 2011 730,345 net income is 460,467
Y 2012 758,612 net income is 643,575
Y 2013 866,453 net income is 775,564
Y 2014 913,359 net income is 1,090,743
Y 2015 962,215 net income is 1,472,675
3 years and 40 days
follow
Expense
Y 2011 730,345 net income is 445,860
Y 2012 758,612 net income is 628,403
Y 2013 866,453 net income is 758,235
Y 2014 913,359 net income is 1,072,476
Y 2015 962,215 net income is 1,453,431
3 years and 57 days

153

Decrease in Total Sales between year 2011-2015
1,600,000
1,400,000
1,200,000
Y 2011
1,000,000
Y 2012
800,000
600,000 Y 2013
400,000 Y 2014
200,000 Y 2015
-
2% 4% 6%
2% 4% 6%
Y 2011 475,074 460,467 445,860
Y 2012 658,747 643,575 628,403
Y 2013 792,893 775,564 758,235
Y 2014 1,109,010 1,090,743 1,072,476
Y 2015 1,491,919 1,472,675 1,453,431
So, if company's total sale continuing to increase more than 6%,it will affect to our company's
payback period will be longer.

154

6.2 Conclusion of Risk Management
Company risk means opportunities for Soul of Beauty can not operate successfully
according to plan, loss or not follow goals. Our company’s risk can divide to 2 parts. First is
risk from external factor. Second is risk from internal factor. The external factor risk is hard to
predict and can not to control, such as Technology risk, economic risk, changing in demand of
customer risk and have competitor risk. The internal factor risk is we often to confront in the
organization, and it is the risk that we can control it, such as Human Resource Risk, Demand
Forecasting Risk, and Stolen. Finally, financial risk, such as if our income have to reduce it is
directly effect to our company’s income also reduce too, in the same time, if our company
expense increase, it will effect to our company’s pay back period will have long time. About
interest rate is not more effect to our company, because it effect a little on our income
statement, so financial risk is important to our company. We must always to maintain and
control cost, in addition we should to development.

155

Chapter 7
Summary

156

Summary
Nowadays, Fashion of jewelry is change by daily life, life style, social, globalization,
culture, believe and so on. People are attracted to follow the trend. There are many jewelry
businesses in Thailand. Those do for export and sale in the country. Jewelry has many price
ranges depend on material, quality and design. Jewelry’s Thailand made from gems, color
stones, pearl and zirconium so customer can choose as needed. Customers buy jewelry for
wearing or colleting. Design of jewelry is important to attract customer’s want but depend on
preference of each individual too. Jewelry shop must be having many design of jewelry if other
shops have more design that is attract customers to buying. In this business trusting is
important because most customers are concern about quality. Many companies try hardly to
create their own strategies to compete with each other such as competition in price, quality of
service and the special promotion in discount or premium to motivate the customers and after-
sales service.
Jewelry making is an old craft that has been in existence since ancient times. Many
centuries men and women both liked to adorn themselves with jewelry items. Thailand in
recent years has extended its range and scope of traditional handicraft products. Thai handcraft
jewelry is saliently because Thailand is famous in handcraft and art. It is special identity and
differentiation and the products which made by handcraft are attract foreigners. Thai handmade
products are now being made to cater for western tastes and to a much higher western quality.
Therefore Soul of Beauty jewelry offer the Thai handcraft jewelry which is salient, special
identity and various designs to customers.
For the jewelry business, it has some competition. The competitors in the market try to
create their own identities for their brands and trust for customer. By emphasize the quality of
products and services and design of product. And tries hardly to create and design of product.

157

They are all having many interesting and attractive design and concern identity of product to
promote their brands. Most of our competitors have good locations and many of them are the
stores which were opened for a long time. So, they are well known for market and customer’s
want because of their have more experiences.
Sale forecasting of Soul of Beauty, the sale revenue has increase in every year because
an effect of political factor, economic, political, technology and social factor. Moreover tourist
season and festival in Chiang Mai is also affecting to sale revenue because many tourists trend
to high on high season or Chiang Mai festival and the Tourism Department promote and attract
tourist to visit Chiang Mai. So this is an opportunity to increase the sale and make a profit of
our company. Winter season (Octobers to February), this is high season of Chiang Mai there
are many place and festival on winter such as mountain for touch cold weather, Loy Kra Tong
festival, Christmas and New year festival. So the sale revenue on this period is highest because
many tourists visit to Chiang Mai. Summer season (March to May), this season is moderate
sale but in April has Song-Kran festival. This festival can be attracting tourist to visit but it is a
short period and Rainy season (June to September), the sale revenue of this season is rarely
low.
“Soul of Beauty” has several products and categorize in 3 big groups that offer to
customer selection that different life style and preferred. Our company has created a new
jewelry design up to date fashionable and still keep quality, identity and valuable and have
service mine for make our customer satisfy and respond our customer’s want. Our shop pleased
to advice and fain for customers in any time. Our shop has credit card service. An atmosphere
is created in the shop that our customer can feel good and make convenience to customers to
satisfaction and feel happily. Our shop building on Kalare Night Bazaar, the main road for
business in Chiang Mai, surrounded by many big projects and five star hotels and trading

158

center and meeting point for both Thai and foreigners located on 7 raise piece of land in night
bazaar area in zone G this area for souvenir jewelry and handicrafts. Moreover, this area is
convenience to our customer to shop several of shops and products.
In the part of management divide in to pre-operation period and operation period, first
we select standard construction material because we concern about safety. Moreover, we try to
create good atmosphere to attract the customer and build the brand image tend to be modern.
The interior aims to dark tone for enhance our product saliently. Second we set the internet for
communicate with supplier or customer and fast up date information. Then any facilities all
invest for create the best things for customer and support our operation run smoothly.
Risks are effect to the company both external and internal risk. First is risk from
external factor. Second is risk from internal factor. The external factor risk is hard to predict
and can not to control, such as Technology risk, economic risk, changing in demand of
customer risk and have competitor risk. The internal factor risk is we often to confront in the
organization, and it is the risk that we can control it, such as Human Resource Risk, Demand
Forecasting Risk, and Stolen. Finally, financial risk, such as if our income have to reduce it is
directly effect to our company’s income also reduce too, in the same time, if our company
expense increase, it will effect to our company’s pay back period will have long time. About
interest rate is not more effect to our company, because it effect a little on our income
statement, so financial risk is important to our company.

159

Reference

160

Reference
• High-End Jewellers & Luxury Jewellery & Diamonds,
<http://www.worldwatch.org/node/1060> .
• Diamond Gemstone meaning, <http://crystal-cure.com/diamond-gem.html>.
• Ruby Gemstone meaning ,<http://crystal-cure.com/ruby-gem.html>.
• Emerald Gemstone meaning,< http://crystal-cure.com/emerald.html>.
• Opal Gemstone meaning , <http://crystal-cure.com/opal-gem.html>.
• Sapphire Gemstone meaning ,<http://crystal-cure.com/sapphire-gem.html>.
• Aquamarine Gemstone meaning, <http://crystal-cure.com/aquamarine.html>.
• Turquoise Gemstone meaning ,<http://crystal-cure.com/turquoise.html>.
• Topaz,<http://www.kacha-stones.com/topaz.htm>.
• Garnet Gemstone meaning ,<http://crystal-cure.com/garnet.html>.
• Amethyst Gemstone meaning ,<http://crystal-cure.com/amethyst.html>.
• มิติใหมธุรกิจจิวเวลรี่'กาวาง' โชวคอนเซ็ปตแขงอินเตอร
,<http://www.gotomanager.com/news/details.aspx?id=49902>.
• ครม.ไฟเขียวยกเวนภาษีมูลคาเพิ่มนําเขาอัญมณี,
<http://news.impaqmsn.com/articles.aspx?id=275187&ch=ec1>.
• สมาคมผูคาอัญมณีไทยและเครื่องประดับ โดยการสนับสนุนจากกรมสงเสริมการสงออก กระทรวงพาณิชย จัดงานบางกอกเจมส
แอนด จิวเวลรี่ แฟร ครั้งที่ 46,
<http://www.git.or.th/thai/news/events/2010/09_september/event_20100911.html>.

161

• นางสมจินต เปลงขํา,เครื่องประดับเงิน Silver Jewelry มาแรง ,<http://www.depthai.go.th>.
• จังหวัดเชียงใหมศูนยเศรษฐกิจภาคเหนือ
<http://gotoknow.org/blog/export/111495?class=yuimenuitemlabel>.
• Chiang Mai Infrastructure
<http://chiangmai-info.prdnorth.in.th/chiang-mai-info-infrastructure.php>.
• Thailand : Tourist Arrivals from 1998 till 2010. Quarterly Data 2007-2010,
<http://www.thaiwebsites.com/tourism.asp>.
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<http://www.fpo.go.th/FPO/index2.php?mod=Content&file=contentview&contentID=
CNT0006204&categoryID=CAT0000028>.
• Guest Arrivals at Accommodation Establishments IN THAILAND
<http://tourism.go.th/2010/upload/filecenter/file/stat_2554/febuary/New_Q1/North.xle
; Q2;Q3;Q4>.
• Guest Arrivals at Accommodation Establishments IN THAILAND,
<http://tourism.go.th/2010/upload/filecenter/file/stat_2554/febuary/New_Guest_haft/No
rth.xls>.
• Council of Logistics Management, http://www.clm1.org/mission.html, 12 Feb 98.
• NPV and IRR formula, http://www.datadynamica.com/irr.asp.

162

Appendix

163

Resume
Miss Nattida Bua-ngam ID:5031203025
Major: Business Administration, Mae Fah Luang University Tel.089-5338884
E- mail:bbblluuee@hotmail.com
Miss Nartnarin Suksao ID:5031203037
Major: Business Administration, Mae Fah Luang University Tel. 0871896457
E-mail:cream_go@hotmail.com

164

Miss Nopphawan Klabdi ID:5031203120
E-mail:annjung_nk@hotmail.com
Miss Piyaporn Nojit ID: 5031203160
Major: Business Administration, Mae Fah Luang University Tel. 082-1935368
E-mail:minniegirl_cutie@hotmail.com

165

Miss Ulaikorn Singsook ID: 5031203177
E-mail:God_army_kak@hotmail.com

166

Soul of Beauty Co, LTD

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Soul of Beauty Co, LTD

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A

business, and risk of jewelry and gem business.

profit of doing this jewelry and gem business.

Miss Nattida Bua-ngam

3.2.1 Political Analysis..................................................................................37

3.2.2 Economic Analysis...............................................................................43

3.3 Competition Analysis........................................................................................49

3.4 Customer Analysis.............................................................................................51

3.5 Competitive Analysis..........................................................................................53

3.6 STP Analysis.......................................................................................................54

3.7.1 Product strategy...................................................................................56

3.7.2 Price strategy........................................................................................58

3.7.3 Place strategy.......................................................................................62

3.7.4 Promotions strategy.............................................................................62

3.8 Sales Forecast/Profit Estimation........................................................................63

3.9 Marketing Expenses...........................................................................................71

3.10 Conclusion in market feasibility......................................................................73

Chapter 4 Technical Feasibility Study................................................................................75

4.1 Production and Operation Analysis...................................................................76

4.3 Investment Cost................................................................................................ 108

4.3.1 Equipments & Tools...........................................................................108

1.1 Background and Significant of the Project

the ruler and the ruled. (www.fashion-era.com/jewellery.htm)

salient, special identity and various designs to customers.

So we are interested in study feasibility jewelry business in Chiang Mai, opportunity

to access the market, risk and barrier and etc.

1.2 Project objective

-To study feasibility of jewelry business

- To study market activities.

- To study trend and situation of jewelry market

- To study finance feasibility

- To study risk analysis and sales forecast of jewelry market.

- To study behaviors of customer

- To study new channel of distributions.

- To study the way to success goal of our business.

1.3 Benefit of project

- To gain more knowledge in jewelry market.

- To know customer behavior and demand of jewelry

- To know about business cycle of jewelry business

- To know about customer demand and the way to satisfy them.

- To get a structure that suitable for jewelry market in Chiang Mai.

- To gain profit from business.

● Brainstorming to find project and topic

● Collect data and information searching

● Discuss and conclude the business

● Discuss about background of business

● Create project objective, benefits and create project time frame.

● Industry profile discussion

● Create Product/Service, Situation mission, Vision and Strategy.

● Discuss about Market Feasibility.

● Create Market Analysis, Marketing Mix, Strategy and Sales Forecast.

● Discuss about Technical Feasibility Study and Financial Analysis.

● Create Production and Operations Analysis, Pre-Operating Cost, Investment Cost,

Operating Cost and management analysis.

● Create Statement, cash flow and balance Sheet

● Review all part of project.

● Prepare final report draft

Operation Method November December January February

1. Brainstorming to find project and topic

2. Collect data and find information.

3.Discuss and conclusion about our

4.To specify business structure and create

5.Discuss about background of business