1 Group Member 1. Miss. Chirapaboot Sukawatichai ID: 503 1207 004 E-mail: [email protected] TEL: 086-918-3137 2. Miss. Ninon Yonglon ID: 503 1207 014 E-mail: [email protected] TEL: 087-126-6728 3. Miss Auncharee Panumas ID: 513 1207 032 E-mail: [email protected] TEL: 085-529-5835 4. Mr. Sasidanai Panya ID: 513 1207 048 E-mail: [email protected] TEL: 081-179-5143 5. Miss Napaporn Tanafu ID: 513 1207 060 E-mail: [email protected] TEL: 082-620-4625 2 Preface This project focus to study about orchid exporting company in Thailand to international market for creates feasibilities data to involve invertors investing. In this project offer to seven knowledge areas include background and significant of industry, industry profile, marketing feasibility study, technology feasibility study, financial analysis, risk management and project summary to offer necessary information that realistic to investor to establish in potential success and profit estimate. This project would offer the objective point to study about orchid history and industry, domestic and international market, process to determine segmentation and making decision to right targeting. Moreover, project refers to future cost estimate and calculation to profit earning in future to making inverting, reject unsuccessful operation activities and analysis. All and all, we appreciate to thank you necessary advisor Mr. Chaiyawat Thongintr, the expert consultant, professor and supporter for this project. During project preparing, he offer opportunity to learning about right ways of project and giving suggestion to adjust this project to be right project. Moreover, he encouragement to help adjustment project problem and suggesting to feasibility project, then we would like to say very thankful of him performance. And last one , we would like to thank you all of information source such as Chiang rai orchid association, Pongsri orchid farm in Phang, Chiang mai, Kun Dang Orchid Chiand rai farm and all of advisor that they giving to me and provice right souce to pur project. 3 Content Group Member a Preface b Table of content c List of figure d List of table e Chapter 1 Introduction Background and significant of project 12 Objective and benefit 13 Action plan 14 Chapter 2 Industries profile Nature of industry and product 17 Situation of industry 23 Company mission and vision 24 Business strategies 25 Chapter 3 Marketing Feasibility Study Marketing Analysis 31 PEST Analysis 32 Competitor analysis 38 Competitive Analysis 47 Customer Analysis 49 Segmentation, Targeting and positioning 50 4 Marketing Mix strategies 52 Sale forecast 65 Marketing expense 70 Conclusion 75 Chapter 4 Technology Feasibility Study Product and operation analysis 77 Product process 85 Orchid care 109 Service process 110 Location 114 Tenement Structure 117 Machine, Tools and equipment 121 Process and packaging 155 Logistic Management 156 Organization Management 161 CITES 161 Labor Management 164 Cost of Investment 166 Depreciation cost 177 Conclusion 179 Chapter 5 Financial Analysis 5 Financial statement 181 Income Statement 182 Balance sheet 187 Cash Flow Statement 190 Chapter 6 Risk Management Business risk 194 Strategies risk 196 Operation risk 198 Financial risk 200 Net present value 201 Payback period 201 Internal rate return 201 Sale decreases affect 202 Expense increases affect 203 Conclusion 204 Chapter 7 Summary Project Summary 206 Biogeography 208 6 List of figure Figure1.1: Thai‟s Orchid trade market 20 Figure 1.2 Types of Thai‟s Orchid Exporting to Japan 20 Figure: 1.3 The number and ratio of young people live with their parent in Japan 25 Figure: 2.1 Flower export to Japan 28 Figure: 2.2 Percentage exports of Thai orchids, 2007 34 Figures: 3.1 the destination of New Zealand Exports 43 Figure: 3.2. Japanese people 65 year ration in 1995-2025 46 Figure: 3.3 Japan population averages 48 Figure: 3.4 Thai orchid value in Japan 49 Figures: 3.5 Product proposition by types 51 Figures. 3.6 Product Proposition by colors 52 Figure: 3.7 Loss Leader Strategies (Blooming orchid) 53 Figure. 3.8 Loss Leader Strategies (Bottle) 53 Figures: 3.9 Japanese Yen variances 54 Figure.4.1. Vanda denisoniana 76 Figure: 4.2 Vanda lilacina 77 Figure: 4.3 Vanda hookerriana 78 Figure 4.4 Vanda Dr. Anek 79 Figure:4.5 Cattleya Orchid 80 Figure: 4.6 Flask orchid 81 7 Figure: 4.7 Orchid compares (2N and 4N) 82 Figure: 4. 8 Location Map 112 Figure: 4.9 Local map 113 List of table Table: 1 Orchid types export 30 Table: 2 Annual import flower to Japan by Thailand 32 Table: 3 Import orchid average by Japan 33 Table: 4 Orchid export average by Thailand 34 Table: 5 Taiwan Exported Statistic in 2009 43 Table: 6 Malaysia Orchids export summaries 44 Table.7 Averages of orchids in Japan import, 2009 51 Table: 8 Loss leader price strategies 54 Table: 9 Partnership benefit form 60 Table: 10 2011 Events Table 61 Table: 11 Five-year Sale forecast 65 Table: 12 Five-years marketing expense 72 Table: 13 Temenement average building 116 Table: 14 Tenement equipment structure 118 Table: 15 Machine, Tools and Equipment cost 130 Table: 16 DHL Time Definite 157 Table: 17 UPS Service Table Guideline 158 Table.18 Express Compare 159 8 Table: 19 Job descriptions 165 Table: 20 Cost of investment 166 Table: 21 Five year Depreciation 175 Table: 22 Five-year /income statement 182 Table: 23 Five-year balance sheets 187 Table: 24 five-year statement of cash flow 190 Table: 25 Risk Model 196 Table: 26: Net present value 201 Table: 27 Payback period 201 Table: 28 internal rate return 201 Table: 29 Sale decrease 202 Table: 30 expense increase 203 9 Executive summary Orchid garden company is the orchid exporting company to study in feasibility to running business in national market. Our company expot orchid in to wide market that focusing to Japan market, because large flower maket and higher demand. Orchid Garden Company is orchids provide and export into nine market. Our company focuses to Japan market, because several of Japan cultures require many flowers such as art of Ikebana, Kamiyubetsu festival, Hana Matsuri etc... Moreover, Thailand is number one of orchids provides and exporting in nowadays refers by quality of Thai‟s orchid and appropriate growth factors. Orchid Garden Company has two of core product for 2 targeting group, for national market company offer about blooming orchids to Japan‟s architecture or organizer company. However, domestic customer company offers flask orchids that important to new orchid grower and Bonita. All and all, company always develop new seed by breed and expand new seed into market. In future, company will expand market cover China as much as possible. 10 CHAPTER 1 INTRODUCTION 11 Chapter 1 Introduction 1.1 Background and significance of project Nowadays Thailand is big orchid‟s exporter in Asia, moreover any countries around the world prefer orchid from Thailand is best beautiful in the world. Thailand has many abundant resources to grow orchid, in the Thailand that appropriate to young plant, however different of seeds always require different of resources. For example Paphiopedilum charlesworthii* is one of orchid usually growth at North of Thailand, or Paphiopedilum niveum* also growth well in south of Thailand depend on degree of temperature around nursery. In addition, any kind of soil or grit that different concerning to growth rate of young plant, some of orchid such as Dendrobium* and Oncidium* are cannot growth in soil and grit, but they are growth at coir. Paphiopedilum* and Phalaenopsis* are the orchids that growth well at soil and grit. Moreover, water, light, air also important too. (Orchid, 1999) In other word, around 5,000US millions that Thailand got from exported orchids into international market, (2009) and second export order. The first targeting stand on Asia such as Japan, China and Cambodian, because FTA (Free trade area) will provide easy ways for export to worldwide around this stages and second targeting stand on United State, Russia and United Kingdom. Some of festival such as Flower festival in Japan require from Thailand‟s orchid, Chrysanthemum from Sri Langa and roses from Northland, even though flower festivals create more profits to another exporting countries. In additional, Orchid from Thailand has more colorful and perfection about structure and Thai‟s scientist always create new seeds for create competitor advantages of Thai‟s orchid such as Natalia, Yellow Chiang- rai, Chiang-mai Pink etc all most well to selling in the world. Moreover, Ministry of Foreign Affairs, Kingdom of Thailand focus to next period about Thai‟s orchids export will increasing around 10-20 percentages and economic of scale too. (Orchid situation, 2010) 12 All and all, Thai‟s orchids always attach to international market and provide more seeds to serve in different of market‟s expectation, moreover Department of export promotion will support to exporter in small business until larger and advertising to attract and support people in appropriate local start to growth orchids and led them to exporting to international market. 1.2 Objective - To study the orchids growth process. - To study international market. - Learning about competition in international market. - To study about influence factors to growth orchids. - Learning about advantages and comparing with competitor. - Learning about several of seeds. - Learning about export, rule of export, legal etc… - Learning about investor process and focus on profit point. 1.3 Benefit - Gain knowledge about orchids growing process. - Able to apply the knowledge in real job in the future. - Able to operate or manage the business to be success. - Have ability and skills to separate seeds of orchids. - Add more experience, that over interesting. - Created good attitude about exporting business.