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2011

Mini Case:Nam-Noi-Pa-Dern

Floating Market

Subject Name:

460-771 Strategic Management

Student Name:

Miss Pimchanok Aramrungroj

Student ID:

5310520008

Strategic Management


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2Pimchanok Aramrungroj ID:5310520008__________________________________________________________________________________

Content1 Introduction ........................................................................................................ 3

2 Company Background ......................................................................................... 3

3 Vision and Mission .............................................................................................. 3

4 Cost of Production .............................................................................................. 3

5 External Environment ......................................................................................... 4

5.1 Cultural ........................................................................................................ 4

5.2 Economic ...................................................................................................... 4

5.3 Demographic ................................................................................................ 5

5.4 Political......................................................................................................... 6

5.5 Floating Market Environment ........................................................................ 6

5.6 Competitive Environment ............................................................................. 7

6 Internal Environment .......................................................................................... 7

6.1 Resource ....................................................................................................... 7

6.2 Capabilities ................................................................................................... 7

7 Market Analysis .................................................................................................. 8

8 Market Trend ...................................................................................................... 8

9 Marketing Strategies .......................................................................................... 8

Product ............................................................................................................... 8

Price .................................................................................................................... 9

Place ................................................................................................................... 9

Promotion ........................................................................................................... 9

Advertising ......................................................................................................... 9

10 SWOT Analysis .................................................................................................. 9

Strength .............................................................................................................. 9

Weakness ......................................................................................................... 10

Opportunities .................................................................................................... 10

Threats ............................................................................................................. 10

11 Schedule Plan ................................................................................................. 10


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1 IntroductionThe purpose of this report is to present that if there is 100,000,000 baht,

what business would be created. After defining the business, the result of

analyzing external and internal was generated in this report. The component of

external factor is societal, cultural, environment, economic, demographic,political, and competitive information. In contrast, the internal factor composes

of strengths and weakness. Using SWOT analysis to analyze the external and

internal, these combine of strengths, weakness, opportunities, and threats. This

report covers five business-level strategies.

The reasons why floating market business were selected to create are

because there is only 1 floating market in Hatyai and the south of Thailand and

many people were interested in this market, not only local people but also

foreigners. For local people, they like the native lifestyle. Moreover, foreigners

like sightseeing and try the new and good things. Besides, Hatyai is the business

trade and tourist center. There are several floating markets in Thailand; allplaces were interested by many people and tourists. So these reasons will

support the new floating market business.

2 Company BackgroundThe floating market named as Nam-Noi-Pa-Dern means with good surrounding

and atmosphere attracts people to walk in this market. This market will be

located in Nam-Noy where the canal had around there, so its the reason why

named as Nam-Noi-Pa-Dern. This market provides 150 shops which separated

into 5 varieties as food, sweet, drinks, clothes, and toys. Moreover, the

atmosphere was decorated with ancient, local and Thai style. Some shops are in

the boat that float into a canal and sell things, but some on the floor. Food is

focused on Thai and local. Besides, this market created activities and shows at

the middle of canal. The customers can buy food by not only money channel but

also coupon. The market will be opened every day but different periods as

Monday-Friday at 04.00 pm.-10.00 pm., Saturday-Sunday at 10.00 am.-10.00

pm.

3 Vision and Mission

Vision is to become the southern leader of floating market in the south ofThailand.

Mission is with good taste, clean, service, and atmosphere, we actively

communicate with customers to deliver food products and services that exceed

their expectations.

4 Cost of ProductionFirst of all, 100,000,000 Baht will be divided into 5 major parts as follows;


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The first part will be invested in the Land around 50% of all.

The second part will be invested in the standard construction around 30% of all.

The third part will be invested in the decoration around 5% of all.

The fourth part will be invested in the advertisement around 0.001% of all.

The final part is reserve funds.

This market has to hire employees because of most shops were created andadministrated by owner. However, providing space for rental but the renters

have to follow the agreement that we created the promotion condition or green

environmental care. So, raw material, packaging, and hourly wages are cost too.

5 External Environment

5.1 Cultural

Local people like to walk in the market.

Spicy flavor is the basic eating needs for local people.

Meeting at someplace and find some drinks are the cultural of local

business.

At the weekend, people like going out with their family.

5.2 Economic

The below table shows the amount of people from foreign country through

immigration in Songkhla, amount of guests that check in hotels in Songkhla,

amount of foreign tourists in Songkhla, and power consumption of hotel in 2010.

The number of foreign country through immigration and amount of foreign

tourists in Songkhla hotel continues increasing the whole year, so these figures

are the good signal to the market that will be created. Besides, amount of guestsin hotel in Songkhla go on augment in the first three quarter and a bit drop in the


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last quarter as similar as the trend of amount of power consumption of hotel but

this one starts dropping in the third quarter. The reasons why the amount of

guests in Songkhlas hotel dropping the last quarter are because the flooding

situation, so local people have to prepare themselves and be careful of disaster

and the tourists cannot come to travel.

List Year 2010

Q1 Q2 Q3 Q4

Foreign country

through

immigration

296,644 339,226 353,126 391,424

Amount of guests

in Songkhla hotel

242,528 265,064 269,028 212,290

Amount of foreign

tourists in

Songkhla hotel

51,952 52,693 52,924 55,924

Power

consumption of

hotel

30.37 33.79 31.64 28.55

5.3 DemographicThe table shows the amount of populations in 2000 to 2009 in Songkhla. The

number of population in Songkhla continues increasing so its the good signal for

business. Moreover, more people from 3 province (Yala, Pattani, Naratiwat)

continues to move to Songkhla because they were afraid of the terrorists and car

bomb.

Year Population

2000 1,232,600

2001 1,249,402

2002 1,271,067

2003 1,294,442

2004 1,281,509

2005 1,302,421

2006 1,317,501

2007 1,324,915

2008 1,335,768


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2009 1,343,954

5.4 Political

Government set the income tax depending upon the nature of the

business activity.

Government set up the Pollution Control Department to make necessary

regulations to control the possible results of organizations neglecting to

be environmental friendly.

5.5 Floating Market Environment

There are 32 floating markets in Thailand. Most were in center of Thailand, some

were located around center of Thailand. But there are a few floating market in

the other provinces.

Tah-Sa-Dej in NhongKai is located along the Mekong River in municipality

and this floating market is the source of the product in Indo-China andEastern European food products and processed foods and appliances such

as electric appliances, clothing, watches and clocks.

Wat-Sai is located in the Thonburi side, and it was a former glory. The

current got recovery to be a beautiful contemporary attraction again.

Visitors can travel along the historic water route. Clacenm to the boat

from the park and sell trade on land along the canal front Sanam Chai Wat

Sai floating market.

Klong-Sa-Bua is situated around national history of Pranakornsriayutaya.

Ta-Ling-Chan is located in front of Taling Chan District Office. Market issemi-rural mix of waterfront living with nature.

Don-Ma-No-Ra (Samutsongkram)

Pa-lad (Pattani)

Ampawa (Samutsongkram)

Bang-Noi (Sumutsongkram)

Bang-Nok-Quak (Samutsongkram)

To-Rung-Hua-Hin (Hua-Hin)

Chao (Mae-Hong-Sorn)

Pon-La-Mai-Glang-Dong (Nakornrachasrima) Chat-Chai (Prajuabkirikan)

Dam-Nern-Sa-Duak (Rachburi)

Rong-Glua (Sakeaw)

Ta-Ka (Samutsongkram)

Bang-Nam-Peung (Samutprakarn)

Ma-Ha-Chai (Samutsakorn)

Ban-Pae (Rayong)

Rim-Meay (Tak)

Bang-Ku-Veang (Nontaburi)


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Pi-Mon-Raj (Nontaburi)

Wat-Sang-Si-Ri-Taam (Nontaburi)

Sai-Noi (Nontaburi)

Mueng-Rang-Sit (Patumtani)

Klong-Sam (Patumtani)

Bang-Kla (Chachengsao)

Wat-Bang-Pra-Moong (Nakornsawan)

Wat-Glang-Koo-Veang (Nakornpathom)

Lam-Pra-Ya (Nakornpathom)

Ta-Ka (Samutsongkram)

See-Pak (Pattaya)

5.6 Competitive Environment

There is a big competitor, named as Talad Nam Klong Hae where has strongcustomers based which from local and tourists from Malaysia and Singapore.

The market opened on Friday to Sunday starting at 4-8 p.m. and many

merchants sell food on boats. Some sell normally on the floor with small shops.

Customers have to buy food at the shops then bring food to eat at the place

where the market is provided. The environment is not clean enough and very

crowd although surrounding is natural but the atmosphere is not satisfied for

customers.

6 Internal Environment6.1 Resource

Resources separated as tangible asset and intangible asset. So tangible

resources refer to the physical assets that an organization possesses, in this case

it is one hundred million baht.

6.2 Capabilities

A strong network of suppliers.

Products fit with market demand.

A strong flavor and price.

Effective marketing communications.


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7 Market AnalysisThere are total 350,013 populations in Hatyai, total male is 166,988 people, and

total female is 183,025 people. The floating market can focus on all group age

range for Hatyai people and Songkhla people. The following table is the

population in Hatyai separated by age range.

Age Group Population (People) Percentage (%)

Total Male Female Total Male Female

0 14 81646 41747 39899 23.3 25.0 21.8

15 - 24 70003 33398 36605 20.0 20.0 20.0

25 - 34 69296 31227 38069 19.7 18.7 20.8

35 - 44 57999 26885 31114 16.6 16.1 17.0

45 - 54 34802 16866 17936 10.0 10.1 9.8

Over 55 36266 16866 19401 10.5 10.1 10.6

Total 350013 166988 183025 100 100 100

8 Market TrendThe overview of people that come to all floating market in Thailand continues

increasing. Many tourists and local people like to go there. There is every

generation gone there. So it is the strong trend that people like to walk and eat

at floating market.

9 Marketing Strategies

Product

Products are provided as 5 sections as follows local food, desserts, drinks, toys,

and clothes. Each product was created as the ancient and local styles. Moreover,

this floating market conserves the natural by using things that made by natural.


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Price

This floating market guaranteed best price as follows;

Food around 20-50 baht

Drinks around 10-50 baht

Dessert around 10-50 baht

Toy around 10-100 baht

Cloth around 75-150 baht

Place

Nam-Noi-Pa-Dern market is located at Nam-Noy where between Hatyai and

Songkhla. The reason why chosen this place to situated the market is because

there is the canal around there, this can save the cost for construction to

simulate canal. Surrounding around there remains natural. Moreover, people

from Hatyai and Songkhla can go there easily. The place are attracted by

surrounding that decorated with ancient styles and provide wide space forpeople with comfortable to buy things and sit.

Promotion

Each shop to create promotion such as buys 10 gets 1 free.

Buy 900 baht coupons with no refund get free 1 round riding an elephant.

Buy 100 baht coupon with no refund get 10% discount on clothes shops.

Advertising Coordinate with the advertising campaign.

Build on the advertising message.

Advertising through the web page.

Program a compare and contrast function.

10 SWOT Analysis

Strength

Food is good taste.


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Good atmosphere with clean environment and colorful with local southern

concept.

Its very comfortable to buy and find the place to sit.

Low price.

Weakness Location is quite far from the city.

Limit stores and size.

Opportunities

Leader of floating market in the south of Thailand.

Fewer competitors.

Government supports the new establishing business.

Threats

Increase competition with food markets. Presentation news with exaggerate makes the image of southern areas

seem unsafe then outsiders feel afraid to come to Hatyai.

11 Schedule PlanThis project covers for 2 years as follows;

Monthly/year 2011

Monthly/year 2012

4 5 6 7 8 9 10 11 12

1 2 3

Market analysis

Environmental design

Construction

Advertising

Open spaces for

renting

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