Bonito Batik Group 26 Section 2

Preface
Nowadays batik business has not much company in Chiang Mai. Chiang Mai has
many tourist travel like a second city of Thailand. Bonito Batik will provide the high quality of
batik in the different style from Southern to serve to customer in Chiang Mai and traveler.
Then Bonito Batik is thought to establish the batik company in Chiang Mai. This
project made for the interesting investment business this book have content about the
characteristic of business, analysis the situation and plan the strategic, marketing plan, the
production and service plan and financial plan etc. In this project have many the appropriate
detail of batik business provide for the communication to the investors which help to decide
whether this business should be investment.
Bonito Batik Company
17 February 2011
Table of Contents
Chapter 1 .............................................................................................................................. 5
Background ........................................................................................................................... 6
Objectives ............................................................................................................................. 8
Benefit of projects................................................................................................................. 8
Chapter 2 .......................................................................................................................... 9
Nature of Industry ........................................................................................................... 10
Papthalung. ................................................................................................................. 11
Situation of Industry ........................................................................................................ 11
Product/Service (in General) ........................................................................................... 14
Vision .............................................................................................................................. 15
Mission Statement .......................................................................................................... 15
Business Strategy ............................................................................................................ 16
Chapter 3 .................................................................................................................... 17
Market Analysis ........................................................................................................... 18
General Environment Analysis ..................................................................................... 18
Political analysis .......................................................................................................... 18
Economic analysis........................................................................................................ 19
Technology analysis ..................................................................................................... 20
Competition analysis ................................................................................................... 21
Competitor Analysis .................................................................................................... 21
Customer Analysis ....................................................................................................... 24
STP Analysis................................................................................................................. 25
Market segmentation .................................................................................................. 25
Target market.............................................................................................................. 25
Positioning .................................................................................................................. 26
Marketing Mix Strategy ............................................................................................... 27
SWOT analysis ............................................................................................................. 27

Strength ...................................................................................................................... 27
Weakness .................................................................................................................... 27
Opportunity................................................................................................................. 28
Treat ........................................................................................................................... 28
Marketing Mix 4P ........................................................................................................ 28
The details of marketing mix........................................................................................ 29
Marketing Expenses: ................................................................................................... 40
Conclusion................................................................................................................... 41
Chapter 1
Background
The word batik conjures thoughts of exotic, Oriental textiles, rich in color and
design. Bright batik cloth can be seen on almost any beach in the form of sarongs and
has been utilized to make shirts, ties, scarves and even shoes in the fashion industry.
Interior decoration may use batik tablecloths, curtains, placemats and even picture
frames. This versatile and durable textile is being applied to more areas everyday and
not only that, but the process of making batik is becoming a popular past time with
visitors. The origins of this intricate art form are largely unknown. Evidence of batik
work has been found all over the Middle East, India and Central Asia however, for a
long time it has been most prevalent in Java, Indonesia. When batik was introduced in
Java, it was mostly practiced as a hobby by ‘fine ladies’ and so the ability to make the
exquisite cloth was considered a sign of refinement. Initially batik cloth was used to
make costumes for aristocrats and royalty and sometimes, particular designs would
signify a person’s family, social status or origin. Ancient batik designs generally
showed intricate patterns rather than the elaborate scenes we see today. The method
involved waxing the cloth to make it dye resistant, then dyeing an un-waxed portion
in a chosen colour. The wax was then removed by plunging the fabric into boiling
water, where it would melt and separate from the fibres. The batik was then dried out
completely, before repeating the whole procedure for each colour. Nowadays the
process is much the same but a number of design tools have been invented to ease
production. A pola, allows stencils or patterns to be copied onto the fabric to be used
as a guide for wax application. Mass producers of batik use large copper blocks to
stamp hot wax designs onto the cloth. Alternatively, an artist may ‘chant’ a wax
outline by hand, and for this he will use a ‘cant’, a copper tipped hollow pen that
spills wax smoothly onto the cotton or silk. These two methods of making wax
outlines allow the dye to be painted on, just like painting on canvas. By painting the
dye onto the fabric, the artist is able to grade the colours, creating shades and shadows
necessary for more intricate and detailed designs. The batik will only need to be
boiled once to remove the wax, so the colourfast cloth retains maximum brightness.
The mass production of batik is cost effective and very popular however, hand
painting is still practiced in many parts of the world and there is an enthusiastic
market for this high quality textile. Some of the finest batik is made in Java where
traditionally they used deep indigo blues and browns to represent Hindu gods.
Nowadays Javanese artists are still heavily influenced by the Hindu religion using the
motifs of the garuda bird, lotus flower and the dragon Naga. Islamic influences are
depicted by more geometric and botanical designs. In the 17th Century when the
Dutch colonized Java, they sent samples of batik back to Europe where the technique
was applied to leather, ivory, paper and even metal, and with the introduction of
German dyes, the artists could choose from a new, diverse array of colours. Chinese
influenced batik is distinctive. The motifs include dragons, the phoenix, snakes, lions
and flowers. Chinese artists introduced bright pastel colours and employed the use of
beeswax rather than paraffin wax to improve the quality of the lines. In Africa, batik
was made using a paste consisting of cassava flour, rice and copper sulfate instead of
wax. What a well travelled craft! From its majestic beginnings in Java, the batik art
form spread throughout India, China, Malaysia and Europe and has gradually became
popular in today’s fashion and home decor industries. The largest producers of batik
are Indonesia, and Malaysia, who adorn batik as their national costume, however
Thailand’s industry is growing. In addition many 5-star hotels on the island are
incorporating batik art rooms into their hotel facilities. Many shops now sell batik
items depicting cartoon characters, abstract portraits and various other ethnic designs.
The most popular designs generally reflect our tropical climate with fish, dolphins,
palm trees and flowers being incorporated into lavish scenes which are colorful and
extremely eye-catching and serve as a perfect token of Thailand for your loved ones at
home.
From: http://www.travel-phuket.com
Objectives
- For actuate the business to achieve high profits.
- For attract the potential of business in Thailand to Industry Leader.
- For added the high value and back to distribute the part of profits to local areas
that lead to sustainable tourism for create good image and to highest profits.
- For promote Thai’s business of Hospitality and Tourism Industry for to get
high market share.
- For upgrade the business in Thailand to high standard equal to International
level for highest interest investors and to get highest profit for Bonito Batik
business.
Benefit of projects
- To have the highest profits from the lowest investment in efficiency and
effective way.
- To acceptably from business organizations cover to the public sector to know
about the benefits of business.
- To enhancing the knowledge in creative and organization apply to do the
project and even running.
Gantt chart
No. Task November December January February
1 Chapter 1 Introduction
2 Chapter 2 Industry Profile
3 Chapter 3 Market Feasibility Study
4 Chapter 4 Technical Feasibility Study
5 Chapter 5 Financial Analysis
6 Chapter 6 Risk Management
7 Chapter 7 Summary
8 Final Submit
Chapter 2
Nature of Industry
The carving details of clothes wore by Prajnaparamita, 13th century East Java
statue. The intricate floral pattern similar to traditional Javanese batik.
Wax resist dyeing technique in fabric is an ancient art form. Discoveries show it
already existed in Egypt in the 4th century BCE, where it was used to wrap mummies;
linen was soaked in wax, and scratched using a sharp tool. In Asia, the technique was
practiced in China during theta dynasty (618-907 CE), and in India and Japan during
the Nara period (645-794 CE). In Africa it was originally practiced by the Yoruba
tribe in Nigeria, Soninke and Wolof in Senegal.
In Java, Indonesia, batik predates written records. G. P. Rouffaer argues that the
technique might have been introduced during the 6th or 7th century from India or Sri
Lanka. On the other hand, JLA. Brandes and F.A. Sutjipto (an Indonesian
archeologist) believe Indonesian batik is a native tradition, regions such
as Toraja, Flores, Halmahera, and Papua, which were not directly influenced by
Hinduism and have an old age tradition of batik making.
Rouffaer also reported that the gringsing pattern was already known by the 12th
century in Kediri, East Java. He concluded that such a delicate pattern could only be
created by means of the canting (also spelled tjanting or tjunting; pronounced tool. He
proposed that the canting was invented in Java around that time. The carving details
of clothes wore by Prajnaparamita, the statue of buddhist goddess of transcendental
wisdom from East Java circa 13th century CE. The clothes details shows intricate
floral pattern similar to today traditional Javanese batik. This suggested intricate batik
fabric pattern applied by canting already existed in 13th century Java or even earlier.
Batik was mentioned in the 17th century Malay Annals. The legend goes
when Laksamana Hang Nadim was ordered by Sultan Mahmud to sail to India to get
140 pieces of search cloth (batik) with 40 types of flowers depicted on each. Unable
to find any that fulfilled the requirements explained to him, he made up his own. On
his return unfortunately, his ship sank and he only managed to bring four pieces,
earning displeasure from the Sultan.
In Europe, the technique is described for the first time in the History of Java,
published in London in 1817 by Sir Thomas Stamford Raffles who had been a British
governor for the island. In 1873 the Dutch merchant Van Rijckevorsel gave the pieces
he collected during a trip to Indonesia to the ethnographic museum in Rotterdam.
Today Tropenmuseum houses the biggest collection of Indonesian batik in
the Netherlands. The Dutch were active in developing batik in the colonial era, they
introduced new innovations and prints. And it was indeed starting from the early 19th
century that the art of batik really grew finer and reached its golden period. Exposed
to the Exposition Universelle at Paris in 1900, the Indonesian batik impressed the
public and the artisans. After, the independence of Indonesia and the decline of the
Dutch textile industry, the Dutch batik production was lost. The
Gemeentemuseum, Den Haag contains artifacts from that era.
Due to globalization and industrialization, which introduced automated techniques,

new breeds of batik, known as batik cap and batik print emerged, and the traditional
batik, which incorporates the hand written wax-resist dyeing technique is known now
as batik tulis.
At the same time, according to the Museum of Cultural History of Oslo, Indonesian
immigrants to Malaysia brought the art with them. As late as the 1920s Javanese batik
makers introduced the use of wax and copper blocks on Malaysia's east coast. The
production of hand drawn batik in Malaysia is if recent date and is related to the
Javanese batik tulis.
From: Doellah, H.Santosa. (2003). Batik : The Impact of Time and Environment, Solo : Danar Hadi.
In Thailand batik sarongs are also designed as wraps for casual beachwear. In
the southern Thai island of Koh Samui, batik is easily found in the form of resort
uniforms, or decorations at many places, and is also used for the locals' casual wear in
the forms of sarongs or shirts and blouses. It is the most common, or even symbolic
product for those visiting Koh Samui Island. The Batik of Samui mostly shows the
beauty and attractions of the paradise island and its culture, such as the coconut shells,
the beaches, palm trees, the island's tropical flowers, fishing boats, its rich water life
and southern dancer, Papthalung.
Situation of Industry
Today Batik is a product of the most popular in the market. Especially the
international market such as U.S.A , German, India, China, Hong Kong. Batik imports
from Thailand to sell in the form of finished products such as clothing, handbag, and
handkerchief. Batik scarves decorated with images cover the walls, tie the table and
linen shirts, etc. ready to be produced widely. The development of batik textiles, now
the department of industrial promotion, was central to the development of batik in
color schemes and techniques have been training over time. The school organized a
teaching or batik cloth different levels, from that institution, to provide education
about batik. Make the patterns and techniques widely this helps to produce good
results to produce batik, the development of a more than ample. Batik" is a unique art
and craft of the South. That has been widely popular for both Thais and foreigners.
Because the eye-catching designs and vibrant colors, beautiful batik is now popular
not allergic to other types of fabric. It is unique. Every step made by hand with
exquisite detail and precision also includes a commitment to work with. Work out so
successfully with good quality. By the concept of a new generation of customers,
combined with the model work more difficult. Hope to make a difference to the
market. Escape with the competition. This is thought to be done by batik, tie dyeing
technique of batik Integrated and dying together. One of the problems of dying fabric,
most suffer is the quality of color that will not always fall color, pH and color on
washing. But the development of batik clothes fall color. The continued use of the
natural color of the dying. Create a unique identity for the product is great.
Market trends
Market Batik progress over other saws. Both products supplies.

House by Measured by sales revenue per year. And the values that consumers have
accepted the product in a fabric bowl acid increased as the dominant organizational
chart.
Operational guidance
Batik is a craft business can utilize the skills that are exquisitely beautiful
color drawing policy implementation and follow patterns on the cloth, so as a concept
to a group of shareholders that the success in business after selling cloth. Bat Rick
both wholesalers and retailers on behalf of Craft Batik by ordering products from
other high quality products and has been recognized as the standard material.
Equipment used. Performance, etc., but it has to sell the brand its own. Packaged into
own brand. The marketing of the shareholders have seen the need to accept that the
consumers are demanding more saw any. Therefore the business as a company limited
Craft Batik and ideas to expand market batik wider. The idea is to have targeted all
levels. Although the product will have outstanding But still having trouble using
workers in the dyeing process. Causing fatigue and staining with a dye workers make
each time is not quality. Base color is not uniform. Enabling operators to switch to an
idea. Dyestuff that is suitable for producing small, inexpensive, much to replace
human labor. Which must be paid the average wage Dyer 3 baht per piece. "
Competitive market can be divided into two fabrics are in direct competition
and indirect competition. In direct competition, it includes manufacturers, batik
indirect and competition, including manufacturers of other types of fabric.
From: http://info.matichon.co.th/rich/rich.php?srctag=07026150552&srcday=&search=no
http://www.tarad.com/batik8/
Product/Service (in General)
Our products: all pieces are handmade out along a bright color because we use dye
cold, no fixed format. Each piece is unique for each call that you buy a shirt, I have the
confidence that unique pattern. Another trick is to design liking, will be more popular
because the design is customized and inexpensive compared to the same type of
clothes imported from Europe, sewing was no blame while Batik products that we do
right now such as
- Fabric curtain.
- Men’s Shirts.
- Pattern Handbag, by handmade painting.
Our product have a quality is the durability of color patterns and forms of
products. If the product has problems, returns accepted. Feature is every piece a
unique fabric. Each of these patterns in the ground is not in hand to produce by
handmade has attracted interest. Style has a pattern to the concept of customer needs
and the product add combined with the cultural patterns in northern and unique color
painting techniques a specific format of Bonito Batik company. And packaging is
designed for the use and with thing like media production in the box. Colors box with
a color line art. Detailed product branding and other elements. For clothes that we
used in the production, customers can select the type of fabric requirements such as
used silk cotton and linen, especially linen are popular with international clients such
as Hong Kong and Japan when it makes sense to wear elegant. The popular Thai
cotton and iron because simple to wear and the main customers are people like works
of art suggest that silk is popular. So our products are unique, unlike competitors.
Source: www.thaismefranchise.com/?p=5063
www.muslimthai.com/main/1428/content.php?category=19&id
Vision
Bonito Batik provides the product according to customer order. We will
make the different design to different customers.
“We will be leader in batik industry in northern of Thailand”
Mission Statement
1. We emphasize to find the best product and make customer satisfaction.
2. Search the different and outstanding of service to reach the customer in
northern region.
3. Reinforce the good relationship whit the customer.
4. Create the good product toward the famous business.
5. Build the confidence gives with a customer in the sense of the serve that is of
good quality by using the relation of the team administrates for build the
marketing “word of mouth”
6. Deliver serve at of good quality to a customer for occur satisfactions from a
customer and repeated buying
Business Strategy
1. Functional level
In this strategy, our industry uses differentiate. The reason that we use
differentiate strategy because our competitor in Chang Mai make only small industry
that different from our batik. We forecast that “Chang Mai is a center of batik
industry” in soon
2.Corporate level
Our business has several products to offer in different need and want of
customer. Because other business are not have the customer service as we and we
have many choice to support customer’s demand.
3.Operation level
In this strategy, we use all of strategy that includes marketing, finance,

accounting, and management of information system.
Chapter 3
Chapter 3: Market Feasibility Study
Market Analysis
General Environment Analysis
At the primary period of batik product that many companies produced the
most of products at point of decoration, fashion clothing, gift, and market that most
famous and tend to increasing and the products that able to sell more in the market.
Then there are many companies in the market increasing and trying to produce the
products at same design, so it affected to customers buying behavior that there are not
focus on the brand of products, but their most focus on the product prices and
different design of batik companies tried to focus on develop the market strategy and
tried to set the products at low price. Moreover, many new competitors entered to the
market. The economy depression, it did not affect to the demand of products in the
market, so the trend of ceramic is not much decreasing in the market.
Political analysis
Politic is out of control by business. Many competitors have to face with this too.
Politic might positively affect to business investment or negatively affect as obstacle
in business success. So, we always follow political news and apply in our business.
• Government policy is factor that both support and obstruct some kinds of business
success.
• Laws and regulations of government affect directly to success/failure and cost of

some kinds of business such as determine business open-close time and determine
zone of business.
• Price control policy; government determines ceiling price some kinds of necessary
goods. This operation affect to profit rate of small business or new market business
normally has high cost already that can’t compete at ceiling price.
• Open free and restricted import affect to advantages/disadvantages in competition

and determining goods price of involved business.
And marketing decisions are strongly affected by political and legal environment
uncertainty. Especially Thailand, the politic very strongly affect to government
policy.
The standard of design and development for package in SME entrepreneur is

another important policy of government because government by Department of
Industrial Promotion emphasizes the importance of quality and standard as a tool for
develop the district goods industry and wholesaler & retailer. In Chiang Mai province
has supportive industry and wholesaler & retailer form government also, it result to
economy for small business are strongly. That is a good opportunity for batik business
because of in Chiang Mai has a little of batik business, Bonito Batik can get more
market share form this market. Our business provides good quality, adding value, and
improve all the time that attractive the customers both among the countries and other
countries.
Economic analysis
It is out of control from business and others competitors must face as same as
politic.
• National economy condition; average income per person, unemployment

condition, growth/slow down of GDP, inflation, deflation, all of these affect directly
to purchasing power of customers who are target group.
• Currency exchange affect to cost and risk of imported/exported business and

competition in international market
Tax rate that government determine for business and product will affect to
advantages/disadvantages in determining price selling and cost of competition
including import tax and specific business tax.
• Cost of labor and production compare with important competitors, especially

batik product from southern and international competitors.
Social and Environment analysis

Business in different industry, market, region might face with risk. It has different
business feasibility because business operation environment and market environment
that is different.
• Business life cycle; industry or market products/services mostly have cycle short or
long that may be different such as fashion product has short life cycle, fast outdated
and low demand in market faster than other products.
• Consumer behavior in each market including more or less brand loyalty, price
conscious if it’s high, high price competition and low profit rate
Social includes the belief, value, and attitude of person in the social. The
socialist 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.
Batik is the new product in Chiang Mai because at regularly the Southern
product so we can satisfy Northern people by makes it in Chiang Mai and sale in the
cheaper than bring it up from Southern. And customer can see new design of the
product that we created.
Technology analysis
The advances of technology are making development to invention and

comfortable for life. Technology provides the quality and standard to produce goods
and services customer needs. The production system produce many products the can
be cheaper. Technology is easy to communication and connections between the
world’s population contact information at time together. But our business has not
much of technology because all of products are hand made product. The some of tech
neology are:
- Computer Technology is design product to high quality and fewer errors. It

has a samples and work on reality to lower costs of production.
- Internet Technology is easily to communication with customers that faster
and more complete information. The customer is not order your own which can be
receive and send e-mail directly to company. The Customers feel friendlier that create
to customer royalty.
-Website is the customer easily to view the products and change and improve
the product to available format and can design own products as appropriate. The
company received orders to customer that not only in Chiang Mai but market
expansion has resulted in comprehensive group with more goals.
- Logistic Technology is increase channel of transportation and registration

document number. The checking all the transportation and sent across Thailand. The
easy of transportation and quickly that confidence to the product of lost.
Competition analysis
Competitor Analysis
The Batik market competition can be divided into 2 aspects is direct competition and
indirect competition. In direct competition is Batik manufacturers. Indirect
competition is manufacturers of other types of fabric.
The competition can be analyzed as follows. Analysis of direct

competitors(Batik manufacturers community, including manufacturers neighboring
provinces and provinces as they are produced, Lamphun, Lampang, Chiang Rai,
Narathiwat, Phuket, Chainat, Pathum Thani, Rayong, Pattani, Bamgkok, Satun, Krabi,
Phang Nga, Kanchanaburi, Nakhon Ratchasima and industrial manufacturers.) The
direct competitor in the batik product is not found at the company area that this entire
area batik market share is hold on our hands, if look forward at the whole of Chiang
Mai province that there are many batik companies. Overall are not serious problems
for Bonito batik because the most companies produce and design the batik product at
same style, no more different. And mostly is making by machine then it is a lot of the
same design and outside markets. Besides, the most of companies do the marketing as
wholesale, so the most customers in the local area can not buy the products as single
unit.
High
Phuket batik
Bonito batik
Lamphun batik
Cost
Low
Diagram: Shows the comparison between the cost and sales of the
product
Bonito Batik
Industry
1. Potential distribution ways in Batik products produced by different
communities, the most companies produce and design the batik product at same
style, no more different. So the advantage is exactly what the province can
create a selling point to draw customer in to more travel. In general, Batik
products from Phuket to be benefit most from tourism but design of phuket
different Bonito batik because bonito create own design, we add combined with
the cultural patterns in northern and color painting techniques that are different
from phuket. In addition, manufacturers are not used in the community.
However, as industrial production is considered as a group with high potential
for distribution and the ability to cover more markets, because production
capacity and expertise in distribution.
Multi Product
High
Bonito batik Lamphun batik
Phuket batik
Distribution
Low
Diagram Shows the comparison between the multi product and distribution of the product
2. A variety of Batik products, depending on applications. Which generally has the

advantage of a similar diversity depends on productivity.
3. Uniqueness of each region to produce an advantage in manufacturing such as

the colorful, patterns, look different.
4. To promote the marketing of Batik products in each community. It often

depends on the support of government in each province was to support different
and in the manufacturing sector is promoted; the market also appears to be not
very intense
Analysis of indirect competitors
Indirect competitors of batik products, is variety of styles depending on the

application from of batik. Such as hats made of batik have indirect competitors as a
manufacturer of wicker hat and other types of cloth caps and so on. Therefore, it is
difficult to analyze whether any competitors are indirect competitors, depending on
the substitution of products compatible with the decision of consumers is key.
Customer Analysis
Thai – Foreigner Tourists come to travel in Chiang Mai is targeting of Bonito Batik
Company that we spent one month gathering information about this target group.
From talking to the customers informally, as well as searching the population base
especially tourists come to Chiang Mai and producing a customer questionnaire.
The customer size base
Example the number of middle age size of Thai and foreigner tourists in 2009 ( age
between 25 – 40 year old ) come to travel in Chiang Mai.
Age Thai Foreigner

Traveler Tourists Total Traveler Tourists Total
25 - 34 97 674 771 57 441 498
[ 27.5 ] [ 33.5 ] [ 32.6 ] [ 36.1 ] [ 29.4 ] [ 30.0 ]
35-44 124 594 718 49 394 443

[ 35.1 ] [ 29.5 ] [ 30.4 ] [ 31.0 ] [ 26.2 ] [ 26.7 ]
Unit : People ( Percent )
Thai tourists : Most of the older working age by 32.6 percent. Aged between 25 to
34 years followed by 30.4 per cent aged between 35 to 44 years.
Foreigner tourists : Most of the older working age by 30.0 percent. Aged between
25 to 34 years followed by 26.7 per cent aged between 35 to 44 years.
So you can see that Tourists in Chiang Mai, Thai and foreigners do not differ in
age, because most are aged between 25 to 44 years.
Source: http://www.tourism.go.th/2010/upload/filecenter/file/stat_File_pdf52/north/cheanmai.pdf
Competitive Analysis
There is no any competitor on the Mahidol – Nhong Hoi road, one of the famous
areas. All batik companies in Chiang Mai that there are many product that focus on
the same design, it mains the most of their products are not different, and the price
that sets at likely the same price, not more different. Besides, the main of their targets
focus on exporting that mostly is making by machine then it is a lot of the same
design and outside markets. So, the point of Bonito batik company that able to get
more advantages and the ability in competitive is likely higher that the most
competitors in the same area. The different designs of the products are newest,
modern, and the products that produced from the own company. Bonito batik has the
strong point in competitive ability than stores around this area. However, Bonito batik
store and gallery is a new store in this area that should be focus more in product,
price, place, and promotion. In additional Bonito batik should be focus on 4Cs
together with 4Ps
STP Analysis
Market segmentation
The batik products in the market have many types that there are Souvenir, gift and
decoration, clothing. Bonito Batik focus on the clothing, gift and decoration products
market segmentation because this type of product demand is more large in the market,
the design that able to create in more, and the products is supported by many group if
customers.
Target market
Bonito Batik focus on the people who is favor on the design of batik products, liked to
buy the batik products for giving people in some special days, ceremonies, and
festivals. Beside they buy the ceramic products for decorating houses, workplaces, or
clothing. Our customers we focus on Thai people and Foreigner tourist are travel in
Chiang Mai.
The products that are made by batik are more famous in using around the world.
Unlimited in separate the buyers or users by gender and age, however the main target
market is focusing on:
Middle age (tourists): The middle age that has the age between 25 - 40 years old that
looking the batik products for use by themselves, New Year gift, special day gift, and
whatever festival, giving people, decorating house and workplace. There are 470,000
middle age of man and 450,000 middle age of woman in Chiang Mai province and
year 2551 there are 5,313,352 tourists, year 2552 there are 4,343,090 tourists and year
2553 is expected 4.5 million tourists come to Chiang Mai. According to Middle age
behavior around the area and travel in Chiang Mai we found that they have more
money to pay and they spend more time for shopping with their family, friends, group
tour and they are looking for some things new, interesting, and different design
products. The most customers will be popular as souvenirs for friends, relation or get
our products to be sold to a foreign country.
Source: http://www.cmcity.go.th/aboutus/economic.php
http://www.thaienergydata.in.th/energynew/energyReview/energy/index_prv_populati
on.php?prv_id=50&year=2550&subtab=12&tab=1&main=main
Positioning
In nowadays, there are many batik products in the market and the products that
likely at the same because the products are easy imitation, so the most of buyers are
not specific in focusing to buy batik product under the brand of products or producing
from where, but their focus on product designs. Bonito batik try to focus positioning
of the products at the different point of products design that according to several
product designs for attracting them interested in Bonito batik, Bonito batik designs
and creates the new style of products at special period that for hard to imitating
product design from competitors.
The different point of products design, we focus to produce the product

according to our own designs, this combined with the culture of the north that there
are three concept designs to our gift, clothing and decoration for tourist group of
customers. We try to study about many companies products and create Bonito batik
own design, we add combined with the cultural patterns in northern and color painting
techniques that are different from other brands that is the main point of our products
that 100% are not same with any batik companies in Chiang Mai province.
At the product prices that we have set at the fairly price, it is not more high or
not more low because we concern about customer value perception. Therefore, we try
to make the point that customer willing to pay and able to buy our product. Moreover,
we try to build the brand value of product in mind of customers.
Marketing Mix Strategy
SWOT analysis
Strength
1. The products those are unique. The production by hand (Hand. Made) by
each product with unique and colorful patterns are not the same.
2. Goods are cheaper than the competition when compared with the
production of a group of other local producers. Due to lower production
costs.
3. The ability of the product. Can be applied to various the application of a
wide array of products.
Weakness
1. Capacity is uncertain because the workers in the production of mainly And

may not be enough demand if you live in a high sales skills in the
production of the year, depending on the experience of manufacturers in
each. The piece has a different standard.
2. The distribution of goods to other areas. Also depend on middlemen to buy
too many are not able to plan and know the real needs of the market.
3. Does not create and promote a brand is generally known.
Opportunity
1. Is both a source of tourism in the province and other provinces to make

similar opportunities to sell and close easily producers
2. The promotion of public policy related and other projects that support the
One Tambon One Product.
3. Tastes of consumers towards the products of batik. That is appropriate to
the source here.
Treat
1. Batik competitions within the market are relatively more competitive.

Community, especially the batik fabrics, and there are many manufacturers
do not include a group of manufacturers in the industry characteristics.
2. The amount of products depending on the season.
3. The trend of slowing down due to economic impact. Allows consumers to
cut costs and unnecessary consumption.
4. Products with similar characteristics and features and like products from
Batik by innovation. The application of fabric products and improve the
range, which may affect the interests of a product from batik.
5. The trouble in the rainy season. That can not produce because production
is mainly dependent on sunlight.
Marketing Mix 4P
Sum of marketing mix Details
Product Batik
Price High quality, high price
Place The company at Chiang mai
Promotion Use both Advertising and do

Promotion.
The details of marketing mix
1. Product
Bonito batik is not the normal store that provides only batik products that
easily looking from general markets like normal clothes, decoration, and gift, but
Bonito batik is a wonderful store and batik gallery. We focus on new design that
combined with the cultural patterns in northern and painting techniques that are
different from other brands batik to batik products. It is likely the batik center that
provides a lot of various designs to batik products such as decoration and gifts.
The entire products designs are various and different from others.
Bonito batik, have a strategy to create value-added products. The separation of

product strategy into 3 areas, which are detailed below
1.1. Quality more robust designs and color patterns of the

products. If the product has problems returns accepted.
1.2. Characteristic (Features) every piece a unique fabric. Each of
these patterns in the ground is not in hand. To produce by hand
(Hand Made) has attracted interest.
1.3. Format (style) has a pattern to the Concept of customer needs.
Bonito Batik logo
2. Price
Bonito Batik Company’s pricing is designed to be competitive to the other
batik companies. The pricing is based on the basis of the company target customers.
Bonito Batik Company’s pricing strategy use of vertical integration in pricing wherein
they own participants at differing channel levels or take part in more than one channel
level operations. This can control costs and influence product pricing. The price we
set at the fairly price that it is not more high or more low because we focus on the
power of our customer buying, and our company product cost.
3.
The following strategy:
3.1. Pricing to the competition (Competition oriented pricing) is a
moderately priced not lower price much when paired with other
products on the market. To take advantage of the difference
between profit and sales promotion.
3.2. The aim of the cost price (Cost oriented pricing) is a set price
that covers production costs. Marketing costs. Discount given to an
intermediary. Other expenses. Including the desired profit.
3.3. Psychological pricing basis by using numbers that end with odd
numbers. To determine the price of all kinds.
Product Style Size Price

(Bath per piece)
Men's Shirts S 36" 250
M 38" 300
L 40" 350
XL 42" 380
Fabric Curtain Flower 2 x 1.5 M 750
Sea (The same size) 780
Lanna 800
Handbag Flower 16" x 12" 650

Lanna 700
4. Place
Bonito batik Company focuses to establishing the company at Chiang Mai
province especially on the Mahidol – Nhong Hoi road, one of the famous areas.
The place is the center of Chiang Mai shopping area and a source of Thai and
foreigners’ tourists. That there are many shops around the company and it is the
location of our customer group tourist that covers our entire market distribution
center. We have set the company as the batik art gallery and work place. At this
area that no any competitors have found, so this is the one of the best location that
it is the golden business area. Around the company there are many accessory
shops, shoes store, and restaurants so there is more different in type of business
that it able to lead our company to be the distinctive point and able to let our target
customers are more interested in our company.
Distribution strategy:
4.1. The distribution channel as a communication tool in marketing,
particularly public relations and advertising. Were labeled
advertising, held Display, distribution of brochures and other
incentives.
4.2. Use strategy Selective Distribution for initially focusing on
market trends and distribution channels to meet the target group
most.
4.3. Set up sales teams to sell space in stores target. Focusing on
market access channels that are associated with the target groups
and can be used to create the market trend in the future.
5. Promotion
Promotion is a key element of marketing program and is concerned with
effectively and efficiently communicating the decisions of marketing strategy, to
favorably influence target customers’ perceptions to facilitate exchange between
the marketer and the customer that may satisfy the objective of both customer and
the company.
Stages and promotion strategies employed
When a product is new our objective will be to inform the target customers of its entry. Radio,
magazine, and handbill may be used to push the product through the introduction stage of the
lifecycle. Push and Pull Strategies will be used at this crucial stage.
Growth
As the product becomes accepted and interesting by the target market Bonito batik at this stage
of the lifecycle we work on the strategy of further increasing brand awareness to encourage
loyalty.
Maturity
At this stage with increased competition we take persuasive tactics to encourage the customers to
purchase our product over our rivals.
Any differential advantage will be clearly communicated to the target customer to inform of our
benefit over our competitors.
Decline
As the product reaches the decline stage we will use the strategy of reminding people of the
product to slow the inevitable
Sales Promotion
Bonito batik Company has promoted its products through different sales promotional
strategies such as member card for discount and gift voucher
Sales Forecast/Profit Estimation
Bonito batik Company set to make the sales forecast/profit estimation at 5 years.
- The sell price that compare with the market price.
- The number of product from 8% – 9% of the tourists come to travel in Chiang Mai.
From the statistic of Thai – Foreigner tourists come to travel in Chiang Mai province
2009 provided 4 quarter are
Number of
Quarter Period of month customer Percent
Thai Foreigner Total
1 January - March 411,212 271,693 682,905 29%
2 April - June 298,544 197,375 495,919 21%
3 July - September 223,279 226,499 449,778 18%

October -
4 December 475,344 291,010 766,354 32%
Total 2,394,956 100%

Source: http://www.tourism.go.th/2010/th/statistic/tourism.php?cid=27
Quarter 1 Tourism remained the atmosphere lively. Because in the New Year on the
Chinese New Year. The air is cool and many activities during this period. The attraction
that most people have taken many hits.
Quarter 2 Atmosphere tourism remained vibrant because of the first quarter due to the
holiday season is long, especially Songkran. People have a lot to travel.
Quarter 3 Tourism atmosphere remained relatively quiet because it is the rainy season
in addition, no activity in this season.
Quarter 4 Climate tourism remained vibrant over the third quarter due to the winter
range is near the end of the year. There are also many more activities such as Loy
Krathong Yi Peng, etc.
YEAR 1
TOTAL SALE
PRODUCT SIZE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Men's shirts S" 15,000 14,350 15,300 13,450 14,450 12,700 11,000 9,500 9,800 13,800 15,300 17,200 161,850
M" 19,500 19,000 20,700 20,000 19,500 18,750 16,700 15,800 14,900 16,700 19,800 21,500 222,850
L" 20,500 19,800 21,350 20,700 20,000 19,800 17,800 16,900 15,900 17,600 19,400 22,100 231,850
XL" 18,500 18,000 18,800 17,500 17,000 16,500 14,850 14,000 13,250 15,350 17,550 19,800 201,100
PRODUCT STYLE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Febric Curtain Flower 15,000 15,750 14,250 15,000 16,500 13,500 12,000 10,500 10,500 13,500 15,750 18,000 170,250
Sea 21,840 21,840 21,060 20,280 19,500 17,940 16,380 14,040 13,260 16,380 18,720 21,840 223,080
Lanna 24,000 25,600 24,000 24,800 23,200 24,000 20,000 20,800 20,800 24,000 27,200 28,800 287,200
Handbag Flower 9,750 9,100 9,750 9,100 9,100 8,450 6,500 5,850 7,150 8,450 9,750 11,050 104,000
Sea 9,520 10,200 10,880 10,200 8,160 8,840 6,800 5,440 6,800 8,840 10,880 11,560 108,120
Lanna 12,600 13,300 12,600 11,900 11,200 11,200 8,400 7,000 6,300 8,400 11,200 13,300 127,400
TOTAL 166,210 166,940 168,690 162,930 158,610 151,680 130,430 119,830 118,660 143,020 165,550 185,150 1,837,700
YEAR 2
TOTAL SALE
Men's shirts S" 15,600 15,000 16,000 14,500 14,900 13,000 12,500 9,600 9,700 14,200 15,500 17,500 168,000
M" 18,000 17,050 18,500 16,000 17,500 15,750 15,000 14,550 14,300 16,000 18,500 20,000 201,150
L" 21,000 19,500 21,000 19,850 19,000 19,500 18,750 17,000 16,550 17,500 19,000 21,000 229,650
XL" 19,050 18,900 19,050 18,750 17,500 16,900 16,350 16,000 15,850 17,300 18,000 20,050 213,700
Fabric Curtain Flower 16,500 15,000 17,250 17,250 15,750 15,000 14,250 12,750 13,500 16,500 16,500 18,000 188,250
Sea 22,620 22,620 23,400 21,060 21,840 21,060 19,500 17,940 19,500 21,060 22,620 23,400 256,620
Lanna 24,000 26,400 26,400 24,800 24,000 25,600 23,200 24,000 22,400 25,600 28,800 30,400 305,600
Handbag Flower 11,050 10,400 11,050 10,400 10,400 9,750 8,450 9,100 8,450 9,100 10,400 12,350 120,900
Sea 10,880 10,200 10,200 9,520 10,200 10,200 9,520 8,160 8,160 10,200 12,240 14,280 123,760
Lanna 13,300 14,000 13,300 11,900 12,600 11,900 10,500 9,100 9,800 11,200 13,300 15,400 146,300
TOTAL 172,000 169,070 176,150 164,030 163,690 158,660 148,020 138,200 138,210 158,660 174,860 192,380 1,953,930
YEAR 3
TOTAL SALE
Men's shirts S" 16,700 15,850 16,500 15,300 14,080 13,650 13,200 10,100 9,800 15,000 16,500 18,650 175,330
M" 18,800 16,050 17,850 16,350 16,900 15,650 14,900 14,000 13,800 14,900 17,000 21,000 197,200
L" 19,700 19,300 20,050 19,000 18,550 19,700 17,050 16,850 16,600 18,000 18,900 21,500 225,200
XL" 18,900 19,350 23,000 21,050 19,000 18,000 17,050 16,500 16,000 18,000 19,050 21,000 226,900
Fabric
Curtain Flower 18,750 17,250 15,000 15,750 19,500 16,500 15,000 13,500 14,250 18,000 15,750 20,250 199,500
Sea 21,060 23,400 25,740 19,500 21,060 21,840 22,620 19,500 20,280 22,620 21,060 21,840 260,520
Lanna 28,000 27,200 24,000 26,400 28,800 21,600 20,800 22,400 23,200 24,800 28,000 25,600 300,800
Handbag Flower 11,700 11,050 13,500 9,100 12,350 13,000 11,050 9,750 8,450 9,750 11,700 13,650 135,050
Sea 11,560 12,240 10,880 12,920 10,880 10,880 11,560 12,920 12,240 9,520 12,920 14,960 143,480
Lanna 14,000 14,000 11,900 11,200 9,800 11,200 10,500 9,800 11,900 12,600 13,300 15,400 145,600
TOTAL 179,170 175,690 178,420 166,570 170,920 162,020 153,730 145,320 146,520 163,190 174,180 193,850 2,009,580
YEAR 4
TOTAL SALE
Men's shirts S" 17,000 16,700 17,500 16,800 15,800 15,450 14,500 12,000 11,500 15,250 16,900 19,000 188,400
M" 19,000 18,250 18,900 17,500 18,300 16,500 16,350 15,850 14,500 16,750 17,500 20,500 209,900
L" 20,000 19,050 22,000 19,500 19,100 20,200 19,750 18,700 17,500 19,500 21,050 22,000 238,350
XL" 19,500 19,900 20,500 20,300 19,800 19,450 18,800 17,050 16,800 19,000 19,500 23,050 233,650
Fabric
Curtain Flower 20,250 18,000 18,000 18,750 18,000 16,500 15,750 15,000 19,500 18,750 16,500 21,750 216,750
Sea 21,840 25,740 24,180 19,500 21,060 21,060 22,620 23,400 18,720 22,620 21,840 25,740 268,320
Lanna 20,000 18,400 16,800 19,200 20,000 22,400 20,800 23,200 23,200 21,600 23,200 27,200 256,000
Handbag Flower 10,800 12,350 11,700 13,000 13,000 12,350 10,800 9,750 10,400 11,050 12,350 16,250 143,800
Sea 12,920 12,920 13,600 14,280 13,600 12,240 11,560 10,200 11,560 10,880 11,560 18,360 153,680
Lanna 15,400 16,800 14,000 13,300 17,500 18,200 16,800 17,500 19,600 18,200 17,500 20,300 205,100
TOTAL 176,710 178,110 177,180 172,130 176,160 174,350 167,730 162,650 163,280 173,600 177,900 214,150 2,113,950
YEAR 5
TOTAL SALE
Men's shirts S" 18,500 17,900 18,050 17,500 16,900 16,400 15,900 13,050 12,500 16,100 17,500 20,100 200,400
M" 20,500 19,000 20,100 19,850 19,200 19,500 18,900 18,250 15,000 17,500 18,500 21,500 227,800
L" 21,500 20,500 22,500 21,000 20,900 22,500 20,500 20,000 19,800 20,150 22,350 22,500 254,200
XL" 20,900 21,500 22,350 22,000 21,800 21,450 21,000 20,800 20,000 22,500 23,500 24,500 262,300
Fabric
Curtain Flower 22,500 21,000 19,500 20,250 18,750 18,000 18,750 16,500 15,000 16,500 18,000 22,500 227,250
Sea 22,620 25,740 24,960 18,720 21,840 21,840 23,400 23,400 19,500 22,620 21,060 26,520 272,220
Lanna 20,000 20,800 16,000 19,200 21,600 21,600 23,200 24,800 25,600 24,000 24,000 28,800 269,600
Handbag Flower 13,000 12,350 13,000 13,650 14,300 11,700 12,350 12,350 13,000 12,350 14,950 17,550 160,550
Sea 14,280 14,960 16,320 14,960 13,600 12,920 15,640 16,320 13,600 12,920 13,600 19,040 178,160
Lanna 16,100 16,800 15,400 13,300 16,800 17,500 18,900 19,600 19,600 17,500 17,500 20,300 209,300
TOTAL 189,900 190,550 188,180 180,430 185,690 183,410 188,540 185,070 173,600 182,140 190,960 223,310 2,261,780
2500000
2000000
1500000
Total sale
1000000
500000
Tot al sal e
0
Year1 Years2 Year3 Year4 Year5
Total sale for 5 year
Marketing Expenses:
Advertising
Bonito Batik Company advertises our product through many different ways and
media such as magazine, cutout and handbill. We also uses direct – response
advertising. This is type of advertising that encourages the consumer to respond either
by providing feedback to the advertiser or placing.
Advertising on handbill
The handbill is for special day such New Year cerebration, valentine day, and the
promotion seasons. Handbill was printed by our company
1 sheet of paper = 0.50 bath
1,000 sheets of paper per a time = 1,000 x 0.50 = 500 bath
Hiring worker to distribute handbill a time per one person = 300 bath
2 workers = 300 x 2 = 600 bath
4 time a year = (4 x 500 = 2,000) + (4 x 600 = 2,400 bath) = 4,400 bath
Advertising on “Compass Chiang Mai magazine”
1 time per month = 300 bath
12 months = 300 x 12 = 3,600 bath
4 time a year = 3,600 x 4 = 14,400 bath
Total advertising cost per year = 4,400 + 14,400 = 18,800 bath
Source: www.compasscm.com , Tel. 053 - 814455 – 113 (marketing)
Conclusion
Although Thailand is currently the business for many batik almost every region of
Thailand. But the current response of the batik products has increased, because we export to
overseas sales, such as Asian and European countries. Resulted in orders to many, because
the nature of the product as a handmade, with high resolution and combined with the cultural
patterns in northern and painting techniques that are different from other brands. And also
many types of goods such as scarves curtains pillowcases, shirts, etc, which can be used as
souvenirs and gift. In addition, the government's policy to support OTOP project which
provides a product display and product to product is known, more interesting. Market and
potentially increase can generate revenue for the operator more. Increase the occupation and
income to people in the community or people in the country. Reduce the problems caused by
unemployment, can also use art skills to adapt the work as well. The form of beauty products
and a variety of patterns for customers to buy. The products are different, unique style. This
allows customers to rely on my heart and can be ordered at any trading throughout the year.
Chapter 4
Chapter 4: Technical Feasibility Study
Product Characteristics
The product of Bonito Batik are concerned about the design first because we try to make the
point of different from many competitors in market and present a new design of batik into the
market under the brand of Bonito Batik company. Bonito Batik focus on three most popular
shape of design, there are Fabric curtain, Handbag, and shirt concept design. The entire
product designs that we try to fix on the products shapes and follow the modern trend in
nowadays customer favor
Bonito Batik creates these designs for use by themselves, New Year gift, special day gift, and
whatever festival, they would get the high quality product and may be the product that they
make by themselves. Besides, there is a point that different from other is the product add
combined with the cultural patterns in northern and unique color painting techniques a
specific format of Bonito Batik company.
Three concept designs
- Fabric curtain
The design that to let customers feel fresh, good when they are looking at the first time, it
able bring the feeling as the view sea, fish, flower, Lanna, etc.
PRODUCT STYLE SIZE PRICE
(Bath per
piece)
Fabric Curtain Flower 2 x 1.5 m 750
Sea (the same size) 780

Lanna 800
- Shirts
The design that concern about the feeling of customer especially couples, kids shirts, etc.
This design is one of the design that more in sale. At the special point of the product, we
design for the modern and ventilate as well.
PRODUCT SIZE PRICE
(Bath per piece)
Men's Shirts S 36" 250
M 38" 300
L 40" 350
XL 42" 380
- Handbag
The design is the main product design of Bonito Batik. It focuses on the favorite
convenience and like arts product together different from the market.
PRODUCT STYLE SIZE PRICE
(Bath per
piece)
Handbag Flower 16" x 12" 650

Lanna 700
Product process / Service process

Bonito batik company, have own manufactory for producing the product because the
product hand made, have producing by people has skilled of arts and be creative as well.
Product is combination of manufactures and customer design for customer to participate in
the production under the identity of Bonito Batik Company.
The product order process:
Create and design the products
Bonito batik design
Fabric curtain design Handbag design Shirt design
Make the production order to own factory
Transfer products to Bonito Batik’s store
Deliver products to customers
The production process come from the own factory for producing the order.
There are 7 steps in the production process for the manufactory.
- Raw material preparation
- Body preparation
- Employee good skill of design preparation
- Shaping
- Special color and cotton 100%

- Boiled clothes and Drying
- Technique to protect product
The production process of general batik company below:

1.Design patterns on paper with pencil. When completed, then use the
Magic Pen black pencil to draw the boundaries clearer pattern.
2. The wax batik written to the liquid and then melted down to paint
the frame edge. Using a brush dipped candles, and then be applied on
all 4 edges of the frame around Do not get too thick because it makes
it easy clothes off Grand. Then, the fabric that is mounted on the
frame with solid material or face, such as bottles, coins, keys, press
the bottom on the edge of the frame and gently rub each side of the
frame and 4 frames.
3. The pattern is prepared to insert a frame under the fabric straining

to make a pencil tracing on the canvas with 2 B or above.
4. Use Ting Chan Tien draw water at temperature suitable draw water
by leaving candles only 2-3 times in order to adjust the temperature of
the Ting Chan, and then try to write on a slip viewed to ensure that the
candle has a line size required. The candles should not be too big a
line 2 to 3 mm, and then start a real start writing a rectangular frame
around the outside edge for four before spread to the wooden frame.
To write the copy pattern to drag slowly. Be careful not to break the
line because the candles will make time to color will be released
together. Beautiful colors will not rot and will need to use water, wax
paper, tissue lining around the outside of the pen to write, so that
every candle wax drips down on parts.
5. Down to the desired color pattern. Like a painting with a brush in

the space. The weights for the light to be level. How to paint a light
color first, then medium and dark colors will be highlighted with a
beautiful light and shadow. To have a flutter sweet, then use the water
cooling portion to the light and then stained dark dithered together
cause shadows weigh light - dark and see the depth of beauty and wait
until Dry. Close.
6. The fabric paint and dry coating of sodium silicate to the fall have
two different color ways of coating by dipping into the liquid tank.
The press caught the liquid wet the entire piece. Pat then brought up
oral liquid tank to drop back into the tank is brought back again, and
another way is to use a brush or roller and then dip solution used to
paint on a canvas stretched on a frame around the piece. This method
is widely used because each washed well and less damaged parts.
Then leave 6 to 8 hours for chemical reactions before being cleared.
7. To wash the fabric so that the mucous coating of sodium silicate in

the container off with larger amounts of water can enter the lot. It will
come off the excess color and must have water to flow over the years.
Or change the water frequently. Until the wash water is clear and slips
out of hand, so stop the process of washing. Do not spread out to dry
mass. It would put together a color wash and clean each piece of color
to come off the stick back.
8. The fabric that is cooked in boiling water mixed with detergent or
soap, Sunlight post in about 1 tablespoon per 20 liters of water to
remove the line peeling off wax from fabric Using the handle end of
fabric and cloth dipped in boiling water over the land. Then slowly lift
up and down and dry cloth until the wax off. Dip switch to the other
side do the same. Notice that the line out or the candle out. Do not
boil the soaked cloth to make up a false sense of waste
9. The fabric onto the drum with water to a full laundry by capturing
end dipped as stripping out candles out to clean up and waste candles
fall out and be soaked in water for a 1 to 2 hours if it is dark. Check
that there should be washed or not. If you fall, change the water in the
basin and the new surplus falls out.
10. The fabric onto the drum with water to a full laundry by capturing
end dipped as stripping out candles out to clean up and waste candles
fall out and be soaked in water for a 1 to 2 hours if it is dark. Check
that there should be washed or not. If you fall, change the water in the
basin and the new surplus falls out.
Source: http://www.phuketbatik.com/index.php?option=com_content&view=article&id=64:2009-
03-27-16-29-24&catid=1:2009-03-10-08-03-53&Itemid=42
The Bonito Batik package order process:
- Create and design packages
- Make the order to package manufactory
- Check and receive packages
- Transfer Bonito Batik design packages to the production manufactory

Packaging Product Company
Our companies choose Siva supply Co. to do packaging product for Bonito Batik brand. Siva
supply company is a manufacturer of plastic bags that concentrates on the quality of product,
good printing and the customers' highest benefit by using high technological and modern
efficiency machineries, Including fasting service safety and cleanness standard.
(Fashion Bags)
Contact
SIVA SUPPLY CO.,LTD.
Address: 48/21 Moo 8 Panyalndra Rd.
Bangchan Klongsamwa Bangkok 10510 Thailand
Tel: 066 0-2914-2157, 066 0-2914-2158
Mobile: 081-6389399
Fa : 066 0-2914-1572
Email: info@sivasupply.co.th
: sale_sivasupply@hotmail.com
Location
The location is important for Bonito Batik Company; it is the place that able to let the
company gains maximum profit. We point to establish the company at the one location in
Chiang Mai province the place is famous and there are many shop, school around this area. It
is near the most famous market Nhong - hoi and hotel in Chiang Mai. According to the
number of population in Chiang Mai there are 1.63 million people that we focus on our main
target is the group of Thai and foreigner there are 674,682 people. At the company area the
Mahidol – Nhong hoi road there is one commercial building that we buy 3 floors our
company office. At the area that there are not any batik companies or any stores that will be
our competitors because there are many accessory shops. With the batik products that the
most of Thai and foreigners are favor and like to walk around the area after school every day,
so this location is the golden place for establish the company, gain the profit and catch the
market.
460/39 Chang Klan road Aumpur Muang Chiang Mai province 50100 Tel. 053-234263,
www.bonitobatik.com
Commercial building
Facility Layout
Logistics Management
Sell Order
Package Bonito Batik Customer
Production Company
Order Sell
Order design
Own factory to producing product
Our company concern more about logistics management because this is the one process that
able to let the company reduces cost, increase in sale, and gain profit rapidly. The main
activities of Bonito Batik company management are:
- Order management
We focus on the beginning of the order process that we try to make the right order
information from customers and make the order system available and the company
design the best product and make the order to manufactory for producing the
products.
- Packaging
We try to design Bonito Batik own package and make the order to manufactory that
for make the value of the products, identity of product when customer need and make
the point of different from others.
- Transportation
 Communication system
We make the order for producing product and package on three methods, one is on the
internet, one is face to face and one is on phone.
Facility Management
Our Company has many staff and much equipment to serve to all customers and when
customers want to contact to our company is easy because customers have many way to
contact ex. Internet, Telephone, or come to our company.
Cost of Investment
Our company prepared product by the customer's order and deliver services to customers.
The Material is used a great cotton from factory. We will make high-quality products for customer
satisfaction.
Investment Cost
Table set 1,500 Baht
Manager Table 3,500 Baht
Sideboard 3,900 Baht

Manager chair 1,500 Baht
Chair 590 Baht
Folder sideboard 5,100 Baht
Set of sofa 9,890 Baht
Computer table 1,900 Baht
HP Compaq Presario 17,300 Baht

Canon Laser Shot LBP6000
3,050 Baht
Laser Printer
Brother FAX-2820 8,990 Baht
Casio MX-120S 330 Baht
Samsung AS10ULN 10000 BTU 15,900 Baht
Sony KLV-32V200A 54,990 Baht
Camera Canon IXUS 1000HS 13,900 Baht

Operating Cost
Raw material Cost
Cotton 35 Baht / m.
Brush
200 Baht / set
Jun Ting
(a pen use to put boil candle 230 Baht
into cotton)
Wood frame 30 Baht / picec

Dye
4500 – 6000 Baht / kg.
Sodium silicate 20 Baht / kg.
clotheshorse 299 Baht
Wax mix with candle 950 Baht /piece
water bucket
199 Baht
Caldron 299 Baht
Gas stove ( for boil candle) 599 Baht
Bowl 10 Baht / piece
http://classified.sanook.com/item/3922285
Direct Labor Cost

Wage rate for our organization we estimate for rate worker of Chiang Mai.
Designer 1 person 10,000 baht /month
Assistant designer 1 person 7,000 baht /month
Employee 10 person (10* 4500) 45,000 baht /month
Delivery boy 2 person (2*4000) 8,000 baht /month
Total cost/month 70,000 baht/month

http://www.ch7.com/news/news_thailand_detail.aspx?c=2&p=4&d=117291
Overhead cost
Indirect labor cost
Manager 1 person 30,000 baht/month

Accountant 1 person 10,000 baht /month
Sale and marketing 1 person 10,000 baht /month
Housekeeper 1 person 3,000 baht /month
Total 53,000 baht /month
Management Analysis
 Administration Cost
The company has classified the cost for the areas other than manufacturing, such as
telephone, electric, water, etc. We will then use the money to pay. And if any equipment
or facilities within its worn or damaged. We would take the money this is the cost to
repair equipment.
Conclusion
The products of Bonito Batik are concerned about the design first because we try to make the
point of different from many competitors in market and present a new design of ceramic into
the market under the brand of Bonito Batik Company. Bonito Batik focus on three styles of
design concept, there are Fabric curtain design, Handbag design, and Shirt concept design.
The entire product designs that we try to fix on the products shapes and follow the modern
trend in nowadays customer favors. Bonito Batik creates these designs for use by themselves,
New Year gift, special day gift, and whatever festival. Besides, there is a point that different
from others is the product add combined with the cultural patterns in northern and unique
color painting techniques a specific format of Bonito Batik company that can make high
profit for company.
Chapter 5
Financial Plan
Initial investment
To estimate the financial investment and will invest mainly in equipment, appliances and
decor bonito batik company. It is not fixed assets. In addition, tools to use the shop to have
the assets used in operations and materials bullying. And raw materials used in the company.
The estimated financial investment of the project can be summarized as follows.
Source of fund
The company has investment by the 8 executives will invest in the same rate.
Each 180,000 Total capital to total 1.44 million to THB
@ All Bonito Batik company

Income statement
For the ended month, August 31, 2010 (TH Baht)
Sale 960,000
Cost of goods sold 413,900
Depreciation Expenses 7,709
Wages Expenses 210,000
Operating Expenses;
Rent expense 15,000
Electricity expense 10,000
Utilities expense 5,000
Water supply expense 1,000
Gas expense 5,000
Other expense 2,000 38,000
Taxable income 290,391
Taxes (34%) (98,732.94)
Net Income 191,658.06
Dividend 80,000
Addition to retained earnings 111,658
Balance Sheet
Asset
Cash 300,000
Inventory 10,000
Fixed Asset
Equipment & Material 150,000
Table & Chair 140,000
Furniture 147,000
Decorate Restaurant 45,000
Accrued rent expense 180,000
Less: Accumulated depreciation (7,709) 654,291
Total asset 964,291
Liability & Equity

Rent Payable 180,000
Total liabilities 180,000
@all Bonito Batik, capital 784,291

Total liability and equity 964,291
Statement of cash flow
Cash flow from operating activities

Cash receive from customer 960,000
Cash paid for supplies (413,900)
Cash paid for employee (210,000)
Cash paid for utilities (38,000)
Net cash provided by operating activities 298,100
Cash flow from investing activities
Purchase of equipment (482,000)
Net cash used by investing activities (482,000)
Cash flow from financing activities
Investment by owner 300,000
Net cash provided by financing activities 300,000
Net increase in cash 116,100
Cash balance, August 1, 2010 0
Cash balance, August 31, 2010 116,100
Financial Analysis
@ All bonito batik company
Income statement
Sale 960,000
Cost of goods sold 413,900
Depreciation Expenses
7,709
Wages Expenses 210,000
Operating Expenses;
Rent expense 15,000
Electricity expense 10,000
Utilities expense 5,000
Water supply expense 1,000
Gas expense 5,000
Other expense 2,000 38,000
Taxable income
290,391
Taxes (34%) (98,732.94)
Net Income 191,658.06
Dividend 80,000
Addition to retained earnings 111,658.01
From Income Statement, calculate for
Financial ratio
Liquidation Ratio
1. Current Ratio current Asset current Liabilities
482000 180000 2.68
2. Quick Ratio current asset - inventory current liabilities

482000 - 10000 180000 2.62
3. Cash Ratio cash current liabilities

300000 180000 1.67
Asset Ratio
1. Inventory turnover cost of goods sold inventory
413900 10000 41.39
2. Day's sale in receivable 365 days inventory turnover

365 days 41.39 times 8.82
3. Total asset turnover sale total asset

960000 482000 1.99
Profit
1. Profit Margin net income sale
290391 300000 0.97
2. ROA net income total asset

290391 482000 0.602471
3. ROE net income total equity

290391 774291 0.375041
Break Even Point
Cost of goods sold = 413,900 / month

Customer number = 320 people/ day
Customer=9,600 people/ month
So Break Even Point is 43.115 THB/dish
Menu Price Break Even Profit Profit *

Point Customer/month
Steak 7 sauce
If we sold steak 7 sauces in Break Even Point prices, we haven’t profit. So if we sold this
price= 99THB. , We have a profit = 55.885 THB. /dish
NPV
NPV
Months 0 1 2
Initial cost -฿ 482,000.00
Revenue ฿ 960,000.00 ฿ 960,000.00
Cost -฿ 413,900.00 -฿ 413,900.00
Net in Flow ฿ 546,100.00 ฿ 546,100.00
Salvage
Net cash flow ฿ 546,100.00 ฿ 546,100.00
Payback period
Month 0 1 2
-฿ 482,000.00 ฿ 400,000.00 ฿ 500,000.00

1
0.164
1.164 Months
Payback period
ARR
The Average accounting return:AAR
Month1 Month2
Revenue ฿ 960,000.00 ฿ 960,000.00
Expense -฿ 38,000.00 -฿ 38,000.00
Earning before depreciation ฿ 922,000.00 ฿ 922,000.00
Depreciation -฿ 7,709.00 -฿ 7,709.00
Earning before taxes ฿ 914,291.00 ฿ 914,291.00
Taxes (34%) ฿ 310,858.94 ฿ 310,858.94
Net income ฿ 603,432.06 ฿ 603,432.06
Average income ฿ 603,432.06
Average book value ฿ 241,000.00
Average account return 250%
IRR
Internal Rate Of Return :IRR
Month Cash Flow

0 (482,000.00)
1 400,000.00
2 500,000.00
IRR 51%
Sensitive Analysis
Worst Case
 bonito batik company Cost increase 20%

@All Bonito Batik company
Statement Pro Forma of Cash Flow
Cash flow operating activities

Cash receive from customer ฿ 960,000.00
Cash paid for supplies ฿ 496,680.00
Cash paid for employee ฿ 210,000.00
Cash paid for utilities ฿ 45,600.00
Net cash provided by operating activities ฿ 1,712,280.00
Purchase of equipment -฿ 482,000.00
Net cash used by investing activities -฿ 482,000.00
Investment by owner ฿ 300,000.00
Net cash provided by financing activities ฿ 300,000.00
Net increase in cash ฿ 1,530,280.00
Cash balance, August 1, 2010 0.00
Cash balance, August 31, 2010 ฿ 1,530,280.00
 NPV
Months 0 1 2
Revenue ฿ 960,000.00 ฿ 960,000.00
Cost -฿ 496,680.00 -฿ 496,680.00
Net in Flow ฿ 463,320.00 ฿ 463,320.00
Salvage
Net cash flow ฿ 463,320.00 ฿ 463,320.00
Worst case
 Sale decrease 20 %
@All bonito batik company
For the Ended Month, August 31, 2010 (TH Baht)

 NPV
Months 0 1 2
Revenue ฿ 768,000.00 ฿ 768,000.00
Cost -฿ 413,900.00 -฿ 413,900.00
Net in Flow ฿ 354,100.00 ฿ 354,100.00
Salvage
Net cash flow ฿ 354,100.00 ฿ 354,100.00
Best case
 Cost decrease 20%


 NPV
Months 0 1 2
Revenue ฿ 960,000.00 ฿ 960,000.00
Cost -฿ 331,120.00 -฿ 331,120.00
Net in Flow ฿ 628,880.00 ฿ 628,880.00
Salvage
Net cash flow ฿ 628,880.00 ฿ 628,880.00
Best case
 Sale increase 20%


Cash receive from customer ฿ 1,152,000.00
 NPV
Months 0 1 2
Revenue ฿ 1,152,000.00 ฿ 1,152,000.00
Cost -฿ 413,900.00 -฿ 413,900.00
Net in Flow ฿ 738,100.00 ฿ 738,100.00
Salvage
Net cash flow ฿ 738,100.00 ฿ 738,100.00
Conclusion
Our company have a success in target and profit increase more last month. And
have more customer , @ bonito batik company is popular company in area. ARR on
second month is 250 % , IRR is 51 % , Payback period is 1.164 month , ROA is 60 %
per year more than ROA of target . Therefore, the result happen make impressed in the
business.
Chapter 6
Risk Management
Business Risk Analysis
A business risk is very important to do business which a circumstance or factor that may
have a negative impact on the operation or profitability of a given company. Because of price
of gasoline increase, then each company is increased the outcome. Profit and income are
grown down. Each a business must solve the problem. There is the competition and try to
build the prominent point to the business of oneself, both of in the promotion and building
strategy. The Company has identified the risk which may affect operations such as the sales
and production risk, human resource risk, financial risk, planning and information risk.
Meeting and planning to resolve problems found in each. To be adjusted and used to sell
products to customers next time. And development of the company to be targeted. To reduce
the risk that the company must be meet in areas such as finance, marketing, sales,
competitors, and resources for production. Factors affecting the risk of many-sided. Risk of
human resources. We are a company with a small number of employees in the design.
Marketing risk. We have to compete with rival business. It must find customers and sell
products as possible. In order to expand its market and its products in export. Risk of
financial planning. We need to plan and budget for each production. To think of profits and
cost of production. But our company is meeting and consultation with employees. And
helped solve problems encountered at a time until completion well. Because the cooperation
of employees in the company. Brit made through any possible issue. Most importantly, the
company can keep track of news that would benefit the company in the business. To receive
benefits. We know the world economy, and plan on doing business correctly. And benefit as
much as possible
PEST Risk Analysis

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.
The Government recognizes the important business of the Alliance can not help
business development and other important countries of Thailand. In a Public Organization in
major agencies in developing and promoting marketing tourism award in Thailand to
generate income from tourism to the country level. Process of government the service was
launched.
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 ceramic 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 streets of Chiang Mai achieve goals.
Economical
Current world economic conditions. Considered in the recovery period. Because every
country around the world are adjusted for a severe economic slump. Reducing interest. To
stimulate the economy is the way other countries experiencing serious adopted a suitable
private sector investments to take this opportunity to remove start investing in businesses.
Thailand in the past. The crisis is reasonable. Which caused problems. Whether the
global economic slowdown. Political problems. And stability of government. Including issues
of investor confidence. Resulted in the country's economy straight down horribly, however,
considered Thailand's economy. I tend to have faster recovery. Because the government to
resolve the issue. And economic policies are driving fast. Whether a policy loan. To add to
the economy. And the importance of driving. Thai budget strong. Which resulted in
investment in many industries.
A major tourist attraction of the two countries underscores the Business Tourism.
Provinces are deemed ready to serve tourists in this category. As a province with many hotels
serve and attractions that are popular in the world. If you are finished will result in economic
growth. Not only in the province. But also to the overall economy of the country, another
important part. That will develop tourism in the project. Visitors come to support this
business, especially in Chiang Mai. Whether to open the airline directly into a 5-6 Chiang
Mai airline or driving Health "hub Medical Health Care," along with a city popular in the
world is to serve the city of Chiang Mai.
Technology
Department of Science Service is research and Experiments in batik technology to be develop

manufacturing processes and Quality of Fabric 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 medium-sized (SME) for sustainable
development and new knowledge to use in developing and industrial. Rural economies and
societies of the country flourish.
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.
Information Technology
IT has been used in the management applied to cause the operation. Effective and making
decisions in operations management are corporate survival.
Social
The company is located within the source business reputation and area where the
government has supported Chambers. 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.
The Factors of Business Risk
Risk factors that affect the Batik industry, the current cost of production increased by
economy the price of goods has increased. And batik became increasingly popular. Batik
today is a product of the most popular in the market. Especially the international market such
as U.S. European countries, Australia and Japan. Batik imports from Thailand to sell in the
form of finished products. Because of the economic recovery of the countries. The U.S.
economy clear and consistent recovery. While the recovery of the Euro and the Japanese
started low, the U.S. inflation rate. Lower food prices lower. The inflation of the euro
countries, accelerating slightly, but remains low. As with the price level in Japan increase
slightly but remain negative on oil price increases in recent years. Due to the uncertainties of
the global economy and domestic political problems. Volatility of the baht and capital flows.
As well as other natural disasters. The index of consumer confidence dropped. Investors and
tourists to reduce trade and travel. Production volumes for the Company's products less and
less order. Affect the company. Caused losses in investment as a Business batik. Because the
money is not constant. The loss of profit on goods to be exported. And cost in the production
of batik is higher. Pose a risk to investors.
In Thailand there are many companies that export batik. The network is important
southern Thailand. Phuket. The leading producers and exporters sell Batik most. We have led
the company to invent new patterns that differ from Phuket. The company is located in
northern Thailand. We have patterns of batik pattern of Lanna art. This is different from
Phuket Make it attractive to foreigners more.
Given such risk factors, the Company have focused on market to help our business has a
certain position and can develop our market and has maintained profitability in the long run
with increased efficiency of production cost management.
The risk management from competitive in the business
From the problem of economic slow down and entrepreneur in countries increase more than
consume needs. It may result in batik industry of the market competition more intense so
increase for capacity in competition management department concern to the process of
research and development for decrease production capital. So the company will develop the
products has colors beautiful, new desire format and decrease the capital then concern to
customer requirement. Consist in the company have high produce production then minimum
of production per unit lower. The company has own channel distributions to sell the product
to the contractor. Therefore the company can accept risk management competition in the
price of sell. In addition, export markets, the company have not sold because it seriously
needs in the country before, if the remaining capacity of the company to expand its exports to
increase again.
Risk Factors on Sales and Production

In nowadays, the economy worldly crisis has many lateness and there are many problems
price competition and rapidly changing design and production which are competitive the
worldwide. The order product began to find scarce because the materials are expensive and
hard to find in short supply. In large countries, it is growing each the country will also keep
the cost of goods does not raise the price more and to maintain the liquidity of the product
quality as well. Our company has preceded the policy for decreases the risk of the human
resource to keep as follow:
- The Company has its own product design and development innovative products to always.
- Our company has diversified price to various for easy to customer’s decision.
- Our company will increase the financial position to have tough competition and have more
financial flexibility.
Human Resource Risk
The personnel who have skill in designing goods and industry batik rather have limited. Also
the new personnel development until they are fully capable of producing affordable quality
products and unique with competitive prices in the market will generally take time. In
addition the number the specialist and who have an experience of design in the batik industry
is still limited compared to the export values of the Phuket’s batik.
The company has preceded the policy for decreases the risk of the human resource:
- The Company has an excellent human resource development and trained to educate
and instill a modern morality to the personnel officer.
- Provide the knowledge and expensive to the personnel.
- Commitment to the develop human resources to new personnel.
Financial Risk
To adapt to cope with to the financial risk is pertaining to policy, practice financial,
technique, management and arising in the current is very important to investors, Thailand's
financial markets in the future. The expectations of reward on investment may become one of
the investment decisions but the risk management is a very important, also becomes to the
direction for the development of financial markets in Thailand. By learn to changes in
demand and supply of investment in the financial markets always.
As the Company engages in designing and selling batik products to tourists markets, the new
product of company could be subject to tourist’s decision from product pricing and product
trend to attractive tourists group to buying.
The business is a new business should have knowledge and experience to do the business.
We should avoid high-risk business. If will bring products to market, at least must have
acceptance products evidence from target customer and have must to are the products that
have done market test already. Financial policy, in the growth of the business must have the
stability and trustworthy by consider the growth from the profit of the business. If the
business has the problem and has necessity must build a debt, the first thing to consider is the
ability of repayment.
Risk Factors on Information
The result of information technology advancement and growing contacts with customers
through the Internet, the Bonito Batik Company has realized its information network is
probably subject to accessibility by the outsiders who are not related or authorized to the
Company’s information system which may later result in damages and losses to the
Company‘s important database used routinely run the Company’s administration.
So, Bonito Batik Company has pursued policy to reduce risk from information such as
- Focus the tools used to check the information of the company.
- Data backup information system as well as data recovery and data security systems.
Credit risk
The company has credit risk associated with trade receivables by the company has a
policy of credit as a precaution and a variety of customers.
Interest Rate Risk
Risks associated with interest rates due to interest rate changes. That causes damage to
the Company and its subsidiaries in the current period and next period.
The Company expects the impact of interest rate changes will be higher.
The method to the reduce risks are:
- should the careful bonds old long investment
- Investment in bonds guarantee by the government.
Foreign currency Risk
The Company expects the impact of exchange of materials because the company did not
borrow from abroad. But the company to risks from foreign currency exchange rates. So
companies have planned to decrease risk. By exploring new sources of national and
neighbors to find cheaper equipment and raw materials used in production.
Chapter 7
Feasibility Analysis Summary
Introduction Analysis Summary
Present of the batik products are more interesting in markets around the world which most
people in the world like arts product, passion for the art of painting designs on fabric. and
product be handmade. In Thailand there are many batik industries and Booths sales. It is one
of tops batik exporting in the world especially northern of Thailand at Chiang Mai province
has the unique design is different from Phuket province. There are many batik industries, and
it is the famous area. This kind of business is more interested and it is large in market demand
supporting in many local markets and global markets, and the trend of growth is likely
increasing. So it is the main reason that let us choose to invest in this business.
Bonito Batik Company limited is the name of own company and Bonito Batik Design is a
short name that it is easily for memorizing and name is catching the eyes. We focus in
establishing the company at Chiang Mai province especially on the มหิดล - หนองหอย road. We
focus on creating a new design to batik product. It is likely the batik center, we creates a lot
of various designs to batik products and batik industry such as clothing, decoration and gifts.
The company no needs to establish big factory because the cost of investment is likely high
and it is long time for profit return, so we try to make product designs and order to workshops
for hiring them produce products under the brand of Bonito Batik.
Industry Profile Analysis Summary

In Thailand batik sarongs are also designed as wraps for casual beach wear in the southern
Thai island of Koh Samui, batik is easily found in the form of resort uniforms and
decorations at many places, and is also used for the locals' casual wear in the forms of
sarongs or shirts and blouses. Today Batik is a product of the interesting in the market.
Especially the international market such as U.S. European countries, Australia and Japan.
Batik imports from Thailand to sell in the form of finished products such as clothing,
decorate and gift. Batik" is a unique art and craft of the South. That has been widely popular
for both Thais and foreigners. Because the eye-catching designs and vibrant colors, beautiful
batik is now popular not allergic to other types of fabric. Batik is a craft business can utilize
the skills that are exquisitely beautiful color drawing policy implementation and follow
patterns on the cloth, so as a concept to a group of shareholders that the success in business
after selling cloth. And Rick both wholesalers and retailers on behalf of Craft Batik by
ordering products from other high quality products and has been recognized as the high
quality product
Marketing Feasibility Analysis Summary

The Thai economy is currently characterized by a highly competitive market making
batik products must be developed constantly to meet the needs of today's consumers. The
products that tend to invest are clothing, gift and decorations that under the general market.
May be affect to Bonito Batik because the tendency of design is different with others
competitors batik products in the market, Especially Mahidol – Nhong Hoi road, Chiang Mai
because there are many tourists came to this place for buying clothing, gifts and decoration
that with the different of design combined with the cultural patterns in northern and painting
techniques that are different from other brands able to let customers come into the store and
buy many products. Moreover, other products of Bonito Batik are an attractive and
interesting tourist in terms of form and unique product.
The direct competitor in the batik product is not found at the company area that this
entire area batik market share is hold on our hands, if look forward at the whole of Chiang
Mai province that there are many batik companies. Overall are not serious problems for
Bonito batik because the most companies produce and design the batik product at same style,
no more different. And Batik products from Phuket to be benefit most from tourism but
design of phuket different Bonito batik because bonito create own design, we add combined
with the cultural patterns in northern and color painting techniques that are different from
phuket. In addition, manufacturers are not used in the community and mostly is making by
machine then it is a lot of the same design and outside markets. Besides, the most of
companies do the marketing as wholesale, so the most customers in the local area can not buy
the products as single unit.
The Middle age of tourists (age between 25-40 years old) that looking the batik
products for use by themselves, New Year gift, special day gift, and whatever festival, giving
people, decorating house and workplace. There are 470,000 middle age of man and 450,000
middle age of woman in Chiang Mai province and there are 5,313,352 tourists in year 2551,
4,343,090 tourists in year 2552 and year 2553 is expected 4.5 million tourists come to Chiang
Mai. According to Middle age behavior around the area and travel in Chiang Mai we found
that they have more money to pay and they spend more time for shopping with their family,
friends, group tour and they are looking for some things new, interesting, and different design
products. The most customers will be popular as souvenirs for friends, relation or get our
products to be sold to a foreign country.
The different point of products design, we focus to produce the product according to our
own designs, this combined with the culture of the north that there are three concept designs
to our gift, clothing and decoration for tourist group of customers. We try to study about
many companies products and create Bonito batik own design, we add combined with the
cultural patterns in northern and color painting techniques that are different from other brands
that is the main point of our products that 100% are not same with any batik companies in
Chiang Mai province
Technical Feasibility Study Analysis Summary

The product of Bonito Batik are concerned about the design first because we try to
make the point of different from many competitors in market and present a new design of
batik into the market under the brand of Bonito Batik company. Bonito Batik focus on three
most popular shape of design, there are Fabric curtain, Handbag, and shirt concept design.
The entire product designs that we try to fix on the products shapes and follow the modern
trend in nowadays customer favor. Bonito Batik creates these designs for use by themselves,
New Year gift, special day gift, and whatever festival, they would get the high quality
product and may be the product that they make by themselves. Besides, there is a point that
different from other is the product add combined with the cultural patterns in northern and
unique color painting techniques a specific format of Bonito Batik company.
We choose Siva supply Co. to produce the Bonito Batik bag. From study about
production and operation of Bonito Batik business, we foresee to build this business because
of we have employees who are skilled in the art and readiness to work in this Business, and
combination of manufactures and customer design for customer to participate in the
production under the identity of Bonito Batik Company, we add combined with the cultural
patterns in northern and unique color painting techniques different from other batik
companies in Chiang Mai province.
From Income Statement, calculate for
Financial ratio
Liquidation Ratio
1. Current Ratio current Asset current Liabilities
482000 180000 2.68
2. Quick Ratio current asset - inventory current liabilities

482000 - 10000 180000 2.62
3. Cash Ratio cash current liabilities

300000 180000 1.67
Asset Ratio
1. Inventory turnover cost of goods sold inventory
413900 10000 41.39
2. Day's sale in receivable 365 days inventory turnover

365 days 41.39 times 8.82
3. Total asset turnover sale total asset

960000 482000 1.99
Profit
1. Profit Margin net income sale
290391 300000 0.97
2. ROA net income total asset

290391 482000 0.602471
3. ROE net income total equity

290391 774291 0.375041
Break Even Point
Cost of goods sold = 413,900 / month

Customer number = 320 people/ day
Customer=9,600 people/ month
So Break Even Point is 43.115 THB/dish
Menu Price Break Even Profit Profit *

Point Customer/month
Batik
If we sold Batik in Break Even Point prices, we haven’t profit. So if we sold this price= 99THB. , We
have a profit = 55.885 THB. /dish
NPV
NPV
Months 0 1 2
Revenue ฿ 960,000.00 ฿ 960,000.00
Cost -฿ 413,900.00 -฿ 413,900.00
Net in Flow ฿ 546,100.00 ฿ 546,100.00
Salvage
Net cash flow ฿ 546,100.00 ฿ 546,100.00
Payback period
Month 0 1 2
-฿ 482,000.00 ฿ 400,000.00 ฿ 500,000.00

1
0.164
1.164 Months
Payback period
ARR
The Average accounting return:AAR
Month1 Month2
Revenue ฿ 960,000.00 ฿ 960,000.00
Expense -฿ 38,000.00 -฿ 38,000.00
Earning before depreciation ฿ 922,000.00 ฿ 922,000.00
Depreciation -฿ 7,709.00 -฿ 7,709.00
Earning before taxes ฿ 914,291.00 ฿ 914,291.00
Taxes (34%) ฿ 310,858.94 ฿ 310,858.94
Net income ฿ 603,432.06 ฿ 603,432.06
Average income ฿ 603,432.06
Average book value ฿ 241,000.00
Average account return 250%
IRR
Internal Rate Of Return :IRR
Month Cash Flow

0 (482,000.00)
1 400,000.00
2 500,000.00
IRR 51%
Sensitive Analysis
Worst Case
 Cost increase 20%


NPV
Months 0 1 2
Revenue ฿ 960,000.00 ฿ 960,000.00
Cost -฿ 496,680.00 -฿ 496,680.00
Net in Flow ฿ 463,320.00 ฿ 463,320.00
Salvage
Net cash flow ฿ 463,320.00 ฿ 463,320.00
Worst case
 Sale decrease 20 %

 NPV
Months 0 1 2
Revenue ฿ 768,000.00 ฿ 768,000.00
Cost -฿ 413,900.00 -฿ 413,900.00
Net in Flow ฿ 354,100.00 ฿ 354,100.00
Salvage
Net cash flow ฿ 354,100.00 ฿ 354,100.00
Best case
Cost decrease 20%


 NPV
Months 0 1 2
Revenue ฿ 960,000.00 ฿ 960,000.00
Cost -฿ 331,120.00 -฿ 331,120.00
Net in Flow ฿ 628,880.00 ฿ 628,880.00
Salvage
Net cash flow ฿ 628,880.00 ฿ 628,880.00
Best case
 Sale increase 20%


Cash receive from customer ฿ 1,152,000.00
Purchase of equipment -B 482,000.00
 NPV
Months 0 1 2
Revenue ฿ 1,152,000.00 ฿ 1,152,000.00
Cost -฿ 413,900.00 -฿ 413,900.00
Net in Flow ฿ 738,100.00 ฿ 738,100.00
Salvage
Net cash flow ฿ 738,100.00 ฿ 738,100.00
Conclusion
Our company have a success in target and profit increase more last month. And have
more customer , @ All Bonito Batik company is popular company in area. ARR on second
month is 250 % , IRR is 51 % , Payback period is 1.164 month , ROA is 60 % per year more
than ROA of target . Therefore, the result happen make impressed in the business.
Risk Management Analysis Summary
The business is always risky. Depending on whether we will find a way to prevent and
solutions how to reduce the risk of doing business. Batik business has many risks, such as the
risk associated resource persons difficult. Risk of market competition. Risk investment
Financial risk etc. Station network risk factors these Companies plan to work. To affect
company. Impact on the company's profits to a minimum. To track news on all fronts. For the
benefit of the company. Reduce errors and reduce the problem to happen to the business.
Risk management will enable business success. And achieve the purpose of the set easily.
Reduce the problem to occur. To prevent damage, its business, and confidence to the
company.
Batik business have the risk of the several aspect, financial, management, the risk from
external environment, risk that the business cannot control, or new entry to competition in the
market. In part financial, if cost of cotton and the business is increase expenses, an
advertisement for encourage the sale, or freight, affect to the profit of the business is down.
Part of administration, should always give knowledge to an officer, for decrease error in
operating. Every problem are happen that can affect to operating of business, thus the
business is supposed to learn all, for prepare solve the problem that happens, and decrease the
risk which relation operating and can happen to every kind business.
Risk factors of the several aspects such as Risk Factors on Sales and Production, Human
Resource Risk, Financial Risk , Risk Factors on Information. Also the company will should
consider the risk that the business risk anything and will need to the figure out a policy to
resolve risks that arise.
Reference
http://www.travel-phuket.com
http://info.matichon.co.th/rich/rich.php?srctag=07026150552&srcday=&search=no
http://www.tarad.com/batik8/
www.muslimthai.com/main/1428/content.php?category=19&id
http://www.ch7.com/news/news_thailand_detail.aspx?c=2&p=4&d=117291
http://classified.sanook.com/item/3922285
Appendix
Member Group
Ms. Patcharakon Chaiyong 5131207018

Ms. Alisa Ruanjae 5131207030
Ms. Atchima Boonpan 5131207031
Ms. Potchanee Junok 5131207072
Ms. Utaiwan Joosiri 5131207125

Bonito Batik Group 26 Section 2

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Bonito Batik Group 26 Section 2

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Preface

Bonito Batik Company

Nature of Industry ........................................................................................................... 10

Situation of Industry ........................................................................................................ 11

Product/Service (in General) ........................................................................................... 14

Mission Statement .......................................................................................................... 15

Business Strategy ............................................................................................................ 16

Market Analysis ........................................................................................................... 18

General Environment Analysis ..................................................................................... 18

Political analysis .......................................................................................................... 18

Technology analysis ..................................................................................................... 20

Competition analysis ................................................................................................... 21

Competitor Analysis .................................................................................................... 21

Customer Analysis ....................................................................................................... 24

Market segmentation .................................................................................................. 25

Marketing Mix Strategy ............................................................................................... 27

SWOT analysis ............................................................................................................. 27

Marketing Mix 4P ........................................................................................................ 28

The details of marketing mix........................................................................................ 29

Marketing Expenses: ................................................................................................... 40

2 Chapter 2 Industry Profile

3 Chapter 3 Market Feasibility Study

4 Chapter 4 Technical Feasibility Study

5 Chapter 5 Financial Analysis

6 Chapter 6 Risk Management

Due to globalization and industrialization, which introduced automated techniques,

Market Batik progress over other saws. Both products supplies.

In this strategy, we use all of strategy that includes marketing, finance,

General Environment Analysis

• Laws and regulations of government affect directly to success/failure and cost of

• Open free and restricted import affect to advantages/disadvantages in competition

The standard of design and development for package in SME entrepreneur is

• National economy condition; average income per person, unemployment

• Currency exchange affect to cost and risk of imported/exported business and

• Cost of labor and production compare with important competitors, especially

Social and Environment analysis

The advances of technology are making development to invention and

- Computer Technology is design product to high quality and fewer errors. It

- Logistic Technology is increase channel of transportation and registration

The competition can be analyzed as follows. Analysis of direct

Bonito batik Lamphun batik

2. A variety of Batik products, depending on applications. Which generally has the

3. Uniqueness of each region to produce an advantage in manufacturing such as

4. To promote the marketing of Batik products in each community. It often

Indirect competitors of batik products, is variety of styles depending on the

The customer size base

Age Thai Foreigner

35-44 124 594 718 49 394 443

Unit : People ( Percent )

The different point of products design, we focus to produce the product

Marketing Mix Strategy

1. Capacity is uncertain because the workers in the production of mainly And

1. Is both a source of tourism in the province and other provinces to make

1. Batik competitions within the market are relatively more competitive.

Sum of marketing mix Details

Price High quality, high price

Place The company at Chiang mai

Promotion Use both Advertising and do

The details of marketing mix

Bonito batik, have a strategy to create value-added products. The separation of

1.1. Quality more robust designs and color patterns of the

Bonito Batik logo

Product Style Size Price