Beauty Surprise Box Seat 12 Section 1

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Preface

This project gets to information planning and methods by Project feasibility course from

hypothetical situation that Im a millionaire. I leave far away from Thailand. I have a lot of money.

It's much more than you can imagine. What should be the best business investment project for the

team?This project will explain analytical methods and techniques useful in this project and capital

budgeting of beauty surprise box project. Also, the content has been included to illustrate methods, risk,

finance, techniques and strategies. This project discusses strategic, qualitative, and organizational

considerations which impinge on capital budgeting for decisions of investment. It also describes and

evaluates the business practices in the area. We hope this project can guide people who interest. If there

is a mistake in some point, we have to apologize forthat through this preface.


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Table of Content

Preface . I

Table of Content..

IIExecutive Summary IV

Chapter 1: Introduction

1.1 Background and Significance of the Project ... 1

1.2 Project Objectives .... 8

1.3 Benefits of Project .... 8

1.4 Time Frame of Activities .. 9

Chapter 2: Industry Profile

2.1 Nature of Industry ... 11

2.2 Situation of Industry ... 16

2.3 Products/Service (in General) .... 20

2.4 Vision of Organization 21

2.5 Mission ... 21

2.6 Strategy 21

2.6.1 Corporate Level

2.6.2 Business Level

2.6.3 Functional Level

Industry Summary . 24

Chapter 3: Market Feasibility Study

3.1 Market Analysis 25

3.1.1 PEST Analysis 25

Political

Economic

Social and Environment

Technology

3.1.2 Competition Analysis (3C Analysis) 29 Competitor Analysis

Customer Analysis

Company Analysis

3.2 STP Analysis .... 32

3.2.1 Market Segmentation

3.2.2 Target Market

3.2.3 Market Positioning

3.3 Marketing Mix Strategy .. 34

3.3.1 4P

3.4 SWOT Analysis .... 35


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3.5 Sales Forecast . 36

3.6 Marketing Expense ... 41

Sale forecast Explanation 41

Chapter 4: Investment Analysis4.1 Pre operating cost .. 42

4.2 Investment Cost . 43

4.3 Investment depreciation .. 47

Chapter 5: Operations Analysis

5.1 Production and Operations Analysis .. 52

5.1.1 Product Characteristic

5.1.2 Service Process

5.1.3 Process and Packaging

5.1.4 Materials

5.1.5 Direct Labor

Chapter 6: Management Analysis

6.1 Administration Cost 60

6.1.1 Organization Management6.1.2 Administration Cost

Chapter 7: Financial Analysis

7.1 Profit/Loss Statement 64

7.2 Cash Flow Statement . 73

7.3 Balance Sheet . 79

Chapter 8: Risk Management

8.1 External Risk Assessment .... 86

8.2 Internal Risk Assessment ... 87

8.3 Financial risk. 88

Chapter 9: Summary

9.1 Strategic Management .. 98

9.2 Financial Management .... 98

9.3 Risk Management ... 99

9.4 Other Related Terms ... 99

References


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Executive Summary

Beauty surprise box business provides an analysis and evaluation of the current and prospective

profitability, liquidity, marketing and financial stability of the company. Methods of analysis include

trend as well as ratios. It also describes and evaluates the business practices in the area.

Our business is selling cosmetic product and service to distribute happiness of modern girl in this

era just like cosmetic product. Its challenging to change the perception of girl to concern our product

however we can like changing cosmetic product to be beauty box which bring any cosmetic product in

the beauty box. To difference from other cosmetic product, we use new design for easy portable clean

view. To response modern lifestyle of population in this country we have delivery service to safe

customer times. Promotion of our business will be the gift of cosmetic; Marketing informs advertise will

be on internet and radio. We choose Bangkok for center because, Bangkok is the capital. Transportation

is very easy, and easy for sent product to customer. Bangkok has many ways for transport and accepts

the product such as Bangkok Mass Transit System Public Company (BTS), and Mass Rapid Transit

Authority of Thailand (MRTA).Moreover, companies that cooperate have a building in Bangkok and

near.

The location of center builds in Bang kepi, Ladprao. This location has a wide for stock of

product. My company want to area for stock of product, because we cooperation to many company.

Bangkok has many facilities and its central of industry and tread. Our target customer is women mostly

university students, workingwoman whose age aren't exceeding 35 years. Currently in the market have

many product about cosmetic which customers cant select the product which suit on them. We choose

this group of people because we find this group has more demands on cosmetic rather than other group

of people. Also, theyre interested to use new products and ready to pay if the products are appropriate

for them.


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Chapter 1

Introduction

1.1 Background and Significance of the Project

History of cosmetic: Cosmetics have been used for as long as there have been people to use

them. Face painting is mentioned in the Old Testament (Ezekiel 23:40) and eye shadow was used in

Egyptian burials dating back to 10,000 BC (Llewellyn) The word "casemate" was first used to describe

Roman slaves whose function was to bathe men and women in perfume. (Keville, Green) Since the

Egyptians, each subsequent civilization invented unique words that referred to cosmetics and fragrance

as one science, but the science eroded after Rome. Anthropologists speculate that primitive perfumery

began with the burning of gums and resins for incense. Richly scented plants were fused into animal and

vegetable oils for ceremonial anointing and for pleasure. From 7,000 to 4,000 BC, the fatty oils of olive

and sesame were combined with fragrant plants to create the original Neolithic ointments. When the

Egyptians were learning to write and make bricks in 3,000 BC, they were also importing large quantities

of myrrh. The earliest recorded items of Egyptian commerce included spices, gums and other fragrant

plants that were reserved mainly for religious use. (Keville, Green)

Egypt

As early as 10,000 BCE, men and women used scented oils and ointments to clean and soften

their skin and mask body odor. Dyes and paints were used to color the skin, body and hair. They rouged

their lips and cheeks, stained their nails with henna, and lined their eyes and eyebrows heavily with

kohl. Kohl was a dark-colored powder made of crushed antimony, burnt almonds, and lead, oxidized

copper, ochre, ash, malachite, chrysocolla (a blue-green copper ore) or any combination thereof.

(Cohen) It was applied with a small stick. The upper and lower eyelids were painted in a line that

extended to the sides of the face for an almond effect. In addition to reducing sun glare, it was believed


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that kohl eyeliner could restore poor eyesight and reduce eye infection. (ED 370) Kohl was kept in a

small, flat-bottomed pot with a wide, tiny rim and a flat, disk-shaped lid. (Carnegie Museum)

Cosmetics were an inherent part of Egyptian hygiene and health. Oils and creams were used for

protection against the hot Egyptian sun and dry winds. Myrrh, thyme, marjoram, chamomile, lavender,

lily, peppermint, rosemary, cedar, rose, aloe, olive oil, sesame oil and almond oil provided the basic

ingredients of most perfumes that were used in religious ritual and embalming the dead (Cohen) For

lips, cheeks and nails, a clay called red ochre was ground and mixed with water. Henna was used to dye

fingernails yellow or orange. Makeup was stored in special jars that were kept in special makeup boxes.

Women would carry their makeup boxes to parties and keep them under their chairs. Although men also

wore makeup, they did not carry their makeup kits with them.

Greece

In Greece, precious oils, perfumes, cosmetic powders, eye shadows, skin glosses, paints, beauty

unguents, and hair dyes were in universal use. Export and sale of these items formed an important part

of trade around the Mediterranean. During the 8th and 7th centuries BC, Corinthian, Rhodian and East

Greek traders dominated markets in perfume flasks and cosmetic containers. The containers included

aryballoi, alabastra, pyxides and other small specialized shapes. Cosmetic unguents were imported into

Greece in containers carved from the Red Sea Tridacna shell. In the 6th and 5th centuries, Attic products

stole the market with toilet oil dispensed in lekythoi flasks. A bulk storage container for scented oils and

perfumes was called a pelike. Pelikes were initially designed to withstand the constant handling and

rigors of sea transportation while protecting the contents and maximizing cargo space. As commerce

expanded and packaging design became more influential, manufacturers improved packaging to attract

consumers. During the Classical period, pelike packaging in terracotta aryballoi and alabastra retailed at

a premium. Simultaneously, cored-glass vessels began to appear in shapes adapted from terracotta

containers.


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The history and evolution of cosmetics have many country and a many thousand years in past to

now.

History of beauty box: During recently years youve seen many kinds of new cosmetics from

many companies. Of course, it rises up to satisfy the need of women who love to make up and take care

of their skin. But how do you know that the products which issue in the market are fit to your skin if you

do not buy and test it. If that is true, how much will you spend on something that we do not know the

result? And if you do not satisfy/get allergy with them how should you do with that?

From those questions made the creation of one business names Beauty Subscription Services or

beauty box in general. The BSS will collect many kinds of cosmetic put in the medium box and send to

subscriber every month. All the cosmetics that they put in the box will be in the sample size, sometimes

theyll put the real size to test too. It becomes popularamong women because the business is already

spread to many countries in the world. Also, in USA the BSS is popular in men because they have BSS

for men only, like His Black Box, Male Box and His kit.

The process to receive this beauty box is same as subscribe monthly magazine, you can choose

whether a month, 3 months, 6 months or a year. It costs from around $10 (or 3xx Bath). The process to

be a member, theyll ask you about your skin type, skin color, hair type and kinds of cosmetic that you

usually use. The answer will collect in beauty profile to get the product which similar to your skin. After

that the company will send you a box every month, and in the box will contain with 3-5 pieces of

sample cosmetics.

Information of sample/trial/tester cosmetics: "Tester" or trial, its usually contained in a small

enough packages which can be used for1 week. In this trial, it includes products that can be sold as well.

These small product canpersuade consumers to buy the real size products, the quality are the same as the

full size; the buyers will feel that they have a chance to try the product quality before you have to pay


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the full price. Also, this provides an opportunity for the buyer who likes to try new product before

purchasing.

The trial of the skincare products on the counter brands make constitutes a stimulus to buy

products that clients have never bought to use. Most often theyll come back to buy a full size after try a

short trial. This does not look crowded, but its like friends invited to give the impression that make the

client come back next time. Also try to make the promotion which makes customers order products

more and more to achieve the sampling. This approach can reduce the size of the sampling to be smaller

sample size than youve given it. This approach has resulted in the purchase of another, when client try

to use, it may be a buying opportunity compare with not about to buy it and not get anything.

Tester cosmetic is the original of product. There is no difference in fragrance, strength, or quality

between a tester and one that comes in its original, theyre the same. All the testers are sold full and

unused. Testers have not been tested. Many people prefer to purchase a tester, because they feel it to be

a waste of money to spend so much extra, simple for the exact same fragrance. With the increasing

popularity of tester these pieces are now commonly sold in the open market. Occasionally, the phrase

Not for Sale (or NFS) may appear on testers or miniatures. Thais because the product was originally

product was originally produced for promotional purposes.

Online/e- business: Business Online is a convenient, quick and cost effective way to manage

your business banking. Your customer number and password will give you access to Business Online.

Electronic commerce, commonly known as e-commerce or E-commerce, consists of the buying and

selling of products or services over electronic systems such as the Internet and other computer networks.

The amount of trade conducted electronically has grown dramatically since the wide introduction of the

Internet. A wide variety of commerce is conducted in this way, including things such as electronic funds

transfer, supply chain management, e-marketing, online marketing, online transaction processing,

electronic data interchange (EDI), automated inventory management systems, and automated data


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collection systems. Modern electronic commerce typically uses the World Wide Web at least some point

in the transaction's lifecycle, although it can encompass a wide range of technologies such as e-mail as

well

Here are just a few advantages of going online: Powerful, fast and efficient marketing and

communication tool and medium minimal startup time & investment search engine optimized websites

pay themselves off very quickly as long as they provide customers with valuable products or services

The most environmentally friendly way to run a business, Telecommuting reduces the number of

cars and car miles. You can test your sales strategies and offerings without wasting precious paper. Put

your invoices, newsletters and catalogs online and save numerous trees very inexpensive way to reach

new markets and interact with them office & transportation cost savings unlimited possibilities for

automation of your business. You can automate your order and payment processes, inventory

management, your customer support tasks and more freedom to live and work where you like. You can

be traveling while running your online business and run multiple businesses simultaneously.

Our business is selling cosmetic product and service to distribute happiness of modern girl in this

era just like cosmetic product such as lipstick, flour powder, eyebrow and the main market of our

product is female in this country. Normally the nature of female wants to be good looking by the

cosmetic. Its challenging to change the perception of girl to concern our product however we can like

changing cosmetic product to be beauty box which bring any cosmetic product in the beauty box. To difference

from other cosmetic product, we use new design for easy portable clean view. To response modern lifestyle of

population in this country we have delivery service to safe customer times. Promotion of our business

will be the gift of cosmetic; Advertise will be on internet and radio. From all elements we trust Beauty Box

Company will catch consumer mind and survive in hard competition market. Now our business is ready to

compete with other competitor with good quality and fast serving we trust we can beat competitor and get


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sharing in the cosmetic market. Our business open to all investor to invest with us we surely we can get 2.3% of market

share in 5 year investor will receive dividend for 15% after pass years one.

Do you know about cosmetics business in Thailand? Here is more information; the chemical

industry for cosmetics is likely to grow due to improvements of scientific. As recently, Thailand

becomes a production base of cosmetic and health products, and theres also exported products which

make from raw vegetables and herbs for the botanical industry, health products, and supplements. It has

a market value more than 115,000 million Baht

Moreover, the number of growth market on cosmetics and chemical plant in Thailand in 2010

grew at 25% and it can be estimated in 2011 that itll increase 30%. For the exported market in 2010

increase to 36%, and can be predicted that the year 2011 itll grow more than 35-40%.

Also, even the exported value of cosmetics industry has fell to 27.4 percent compared with the

previous quarter,but its risen 18.57 percent compared to the same period on last year.

The trend of cosmetics business became brighter in 2011.The expectation on exported grew to

25%. Healthcare and the elderly people would be the next trend to gain the market share; it pushed

Aging market growth, and also the organic cosmetics became popular.

In 2011, the exported market on cosmetics would grow more than 25%, while the domestic

cosmetics market overview continued growth. Meanwhile, the overall economic in the country would

be expanded, and the U.S. and European economic would recovery. The growth of cosmetic products in

the past 3 years has been attractive for us, by the average 10 -15 percent per year which seems to be

increased. Also, net sales of the importers and distributors are growing together as well. This shows the

market potential of the products which are popular in Thailand. The total of imported cosmetics value

around 3,000 million Baht per year, 70 percent of cosmetics are from Europe, America and the rest 30

percent are from Japan.


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The main factor of this situation is the demand for cosmetic in women is increasing, because

they still want things to make them beauty. Also, cosmetics can help them to be fresh and happy,

although the economy still decline.


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1.2 Project Objectives

Understand about the beauty box business

Understand how to manage the model

Understand about working and time

Understand about todays consumer

Understand about advantage and comparing with competitor

Understand about investor process and focus on profit point

1.3 Benefits of Project

Deliver luxurious makeup and personal care samples from both well-known brands and

drugstore brands.

Products are picked by our beauty experts based on buyers beauty profile.

All samples are picked based on your beauty profile and your needs.

All shipping and handling fees are included in the subscription.

Buyer can test new product samples before they decided to buy the full-sized products.

Buyer can discover new things with excitement.

If you sign up for 6 or 12 months, you will get free boxes.


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1.4 Time Frame of Activities

Gantt chart and Time Frame of the study

Activities November December January February

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1.Choice Topic

2.Searching Information

Internet

3.Topic Submission

Fix problem

Search information

4.Introduction Submission

Background

Significant

Benefit

5.Study the business

profile

Companies image

Logo and Brand

6.Study Analyze market

feasibility

STP Analysis

4Ps

Competitor Advantages

7.Study technical

Feasibility

Determine the necessary


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resource

8.Study and analyze the

financial of our business

Financial Annual report

Determine cost

9.Study and manage the

risk of our business

Risk analysis and Other

Control risk analysis

10.Project Advertising

Determine story

broad

Prepare story broad

11.Writing and analyze

the report

Evaluation

Restate

12.Checking Final Draft

13.Conclusion the

feasibility of business and

suggestion


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Chapter 2

Industry Profile

2.1 Nature of Industry

The demands of beauty product have increase in few years. Observation about the brand of

beauty product has announced in the many way of communication, even if the way of e-commerce in

the market no popular, because the consumer concern about the product. Also we have to present the

way of girl who want to be the owner of beauty box. Moreover we have selected the internet to be the

main way to contact the target of our product. Because the number of user has increase in few years, it

has the big opportunity to create the huge market share. The population have use internet in 2000 is

2,300,000. But in 2012 the number of user increases to 20,100,000. It has to show the way to create the

consumer in this market.


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Ecommerce in Thailand

This year (2011) Thailand e-commerce is growing very fast with the behavior of Thai users

changing rapidly. Statistics from NECTEC show that the percentage of Thai users shopping online has

risen from 47.8% in 2010 to 57.2% in 2011 which is already a 9.4% increase from the previous year.

These statistics confirm that Thai users are becoming more familiar with online-shopping and many

companies are starting to use online business strategies to attract more customers.

The factors driving the increase in Thailand e-commerce

1. Online payment system development

In the past, Thailand e-commerce companies just had credit cards to support online payments

however credit cards in Thailand have not in the past been that popular. Now more payment systems are

developing and users have many choices to make an online payment such as using credit cards, debit


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cards or online payment service companies. All of the Thai banks give priority to online payments, and

have developed systems that can accept debit cards or allow internet banking to make an online

payment. The money will directly be deducted from user accounts after products have been purchased.

Online Payment Service Companies are another choice for users that dont have credit cards. There are

currently 3 companies in Thailand providing these services including Pays buy, PayPal and TARADpay.

Moreover, Thailand also has MPay and True Money services to support users that would like to make a

payment via mobile. Users are obviously finding it more convenient to shop and make payments online.

2. Ease of creation of e-commerce websites

A lot of companies in Thailand provide instant e-commerce websites where you can create a new

online shop within 24 hours. Its easy to create by just following the instructions. This in turn has

enabled the number of online shops to increase substantially each year. Additionally, last year big

shopping malls in Thailand including Central, The Mall, Big C, and Lotus began to start online

shopping campaigns to increase sales volumes which have provided users with more choices to select

products they want.

3. E-commerce shops always have promotions

E-commerce shops have a lot of competitors so most online shops try to attract customers by

offering lower product prices or conducting special promotions. This is another reason that the number

online shoppers in Thailand is increasing.

4. Group buying Trends

In Thailand Group buying trends on social e-commerce is also increasing. The price of products

will decrease when buyers join together to buy the product with the greater the number of buyers, the

lower the price. Therefore most buyers will spread the news about such promotions via social networks

like Facebook. Such a strategy can attract more users to buy products on the internet.


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Supplier of products and brands


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Sample cosmetics


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2.2 Situation of Industry

Situation in nowadays the company have increase of order and contact of cosmetic brand.

Because to expend or internet user. It have affect to big chance to make the brand loyalty. Thisd good

news for the company because this business has many competitors in every moment. Also our company

has reputation and brand royalty. So every competitor has included so brand have policy to change the

way to distribute the product.


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Market Overview

The overall growth rate of the cosmetic products market in Thailand in 2006 is expected to be at

12 percent, 3 percent more than the year before. The increasing growth is considered to be significant

considering the continuing economic slowdown and the prolonged unstable political situation in

Thailand. High quality, international branded cosmetic products are expected to do better and may have

a growth rate between 15-20 percent due mainly to good brand image, brand loyalty and perception of

good quality. Products from the United States are highly regarded and lead the imported market.

Competition from France, Japan, the United Kingdom and Germany is getting stronger. Perfume from

France remains the market leader in Thailand followed by perfume from the US. Hair care and make up

products maintained a single digit growth, while skin care and perfume showed better growth at 17 and

15percent respectively. The product lines that are considered a problem-solving cosmetic have good

growth potential. They include products such as anti-wrinkle cream, anti-aging facial cream, and

whitening facial and body lotion. More cosmetic products especially designed for men are becoming

popular. Thailand remains a strong manufacturer and exporter of shampoos and other hair care products,

color cosmetic and skin care products. Direct sales are the preferred distribution channel and account for

60 percent of the total market.

The cosmetic products in Thailand are available at all levels, ranging from very high-end

international well-known brands to very low-end, low quality locally produced brands. Thailand

is a major producer of cosmetic products, local production mainly concentrates on low to medium

quality color cosmetics (make up products, especially lipsticks and nail polishes), skin care products

(body lotion and soap, both bar and liquid) and hair care products (mainly shampoo and conditioners).

Leading international companies that have production facilities in Thailand include Uniliver, Procter &

Gamble, Colgate-Palmolive, and Johnson & Johnson.


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Over 60 percent of the imported cosmetic products are high-end facial and skin cream,

mostly anti-wrinkle, anti-aging, and body and skin care products. The products from the U.S. dominate

this subsector with approximately 32 percent share. Leading international brands include: Estee Lauder,

Clinique, Shisheido, ChristianDior and Lancome, Olay, Eucerin, La Roche-Posay.

Competition among the cosmetic suppliers and distributors is always fierce and strong. The

prevailing economic slowdown makes the competition more severe, especially among medium to low

quality body care, skin care and hair care products. The suppliers of these products always introduce

new strategies not only to retain their existing customers but also to capture greater share and enlarge

their customer base. All leading cosmetic companies invest heavily in promotional campaigns to keep

their market share and to stimulate the market. High-end international brand cosmetic products use

womens magazines as their major advertising means to reach their potential buyers. Premiums and

point-of-sale promotional campaigns are also used regularly to stimulate sales. Counter sales at major

department stores are their main sales channel. The counter sales account for approximately 30 percent

of the total cosmetic sales in Thailand. For low to medium quality cosmetic products, TV is the main

venue used for advertising campaigns. Sampling and giveaway are the two leading promotional

strategies utilized to introduce new products and to stimulate the sales of existing products. Uniliver and

Procter & Gamble are the leading advertising spenders in Thailand. Direct selling, discount stores, drug

stores and convenience stores are the major channels of distribution for medium and low quality

cosmetic products.

The use of herbal supplement ingredient as a product selling point is increasing especially among

the locally produced cosmetic products. It is an effective means to differentiate and adds value to

the products. Among the many herbal supplements, green tea is the leading herbal recognized and

used in various products. The inclusion of a whitening agent in the facial and body care products is


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widely accepted by the Thai buyers too. Most Thai have light brown complexion so cosmetic products

with a whitening agent are very popular in this market. A whitening agent is popularly used as a

marketing tool to promote the products. The emergence of spa treatment and its increasing popularity

among locals and foreigners creates new demands for OEM contract manufacturing of cosmetics

specially designed for spa consumption.

The overall growth potential for the cosmetic products during the next three years (2006-2008) is

optimistically expected to grow between 15-20 percent. With a total potential customers base of 18

million (women between the age of 15 to 50 years old), most of them salary workers, Thailands market

for cosmetic products has a very strong group of potential buyers. Political stability after the general

election due by or before the end of this year should bring back the consumers confidence. Consumer

spending is expected to grow positively after a new government is formed.


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2.3 Product/Service (in General)

We provide 4 types of monthly box for customers to choose whether they like.

1. 1 box for 1 month [cost 395 Baht]: This is for people who are new in this product and want to try

our product before deciding whether continuing or stopping.

2. 3 boxes for 3 months [cost 1,185 Baht]: This is for new members and people who want to try

more than a month but do not want to try for longer than that.

3. 7 boxes for 7 months but cost only 6 months [cost 2,370 Baht]: This is for members who are

well known the box and enjoy continuing receive the boxes. Well also provide the special

magazine for members who join in this type.

4. 14 boxes for 14 months but cost only 12 months [cost 4,740 Baht]: This is for members who

become loyalty with the box and enjoy continuing receive the boxes. Well also provide the

special magazine and special cosmetics for members who join in this type.

*The products that we put in the boxes will be the sampling or trail from many cosmetic brands that

were already selected and see the quality /how much people use. The members will not know that in

each month what they will get from the boxes, so theyll be surprise and counting to get the next box for

the next time.


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2.4 Vision of Organization

Being the leader in beauty box business and being the main company that many cosmetic brands

want to join the business with.

2.5MissionTo create new promotion to persuade customers to subscribe the box and keep the old members

to be with the company, find more and more cosmetics which customers will interest, increase the

customers by letting people from close countries to try the product and let them to register to get more

special things.

2.6 Strategy

2.6.1 Corporate Level

Our organization choose to manage

business by use Intensive Strategies that

concern about "aggregation" or expansion under

which growth is achieved by expanding the

scale of operations. That our organization

decides to use Product development that we

improve present product by collect more of

cosmetic brand that will be the new release

(Sample) and put into one box and set the price

for the member. For example 1 box for 1 month

[cost 395 Baht]: This is for people who are new

in this product and want to try our product

before deciding whether continuing or stopping.


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2.6.2 Business level strategy

Business level strategy has an objective

to improve the Strategic business unit (SBU) to

get the competitive advantage under the law andethic of business or its will be the strategy that

the organization use for gain the advantage over

the competitor. From the Michael Porter

Generic Strategies that compose with low cost

leadership, differentiation, and focus strategy.

Our company (beauty box business) select the

Differentiation strategy to use in our businessbecause our company wants to make different

from the competitor by use box that collect

more of cosmetic brand (Sample) into one box

that responds the need of customer because

nowadays every brand of cosmetic launches

more product to the market that make customer

needs to buy it but it doesnt simply to know

what brand is suitable for them. So our company

has an idea to bring the new release (Sample)of

many brand put together in one box that make

customer can test it before make a decision to

choose the brand that suitable for them.


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2.6.3 Functional level strategy

Marketing Department

Define Marketing mix (4P)

Find the distribution channel

Make a high market share

Do the STP

Do the SWOT analysis

General Management Department

Make appropriate schedule (work and time)

Develop team work

Improve management system internal organization

Manage organizations structure and responsibility

Human Resource Management Department

Recruit employee has a specific skill that relate work

Employees working hour

Define qualification of each employee

Financial/Accounting Department

Evaluate fund investment and cash flow

Capital Structure

Calculate every cost that relate to the business

Make income statement and balance sheet every month

Evaluate Budget & Tax


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Industry Summary

According to the increasing of demand in cosmetic products in women, the industry try to select

the strategy which can satisfy the demand of them by chosen Intensive Strategies that concern about

"aggregation" or expansion under which growth is achieved by expanding the scale of operations. Our

organization decides to use Product development because we want to improve the presentation of

product by collect many kinds of cosmetic brand that will be the new release (Sample) and put into one

box and set the medium price for customer to subscribe. For example 1 box for 1 month [cost 395 Baht]:

This is for people who are new in this product and want to try our product before deciding whether

continuing or stopping.

By this reason, the industry can distribute products to target customer directly. Also, when the

subscribers or members who have registered for the product and satisfy with the product, theyll tell to

their friends and everyone that they know to apply for the product as we call it word of mouth

strategy.


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Chapter 3

Market Feasibility Study

3.1 Market Analysis

3.1.1 PEST Analysis

General Environment Analysis (Beauty surprise box)

Political

The political is the main factor of many businesses because

political is the factor that shows the stability of the country that can

make confidence for the foreigner to invest in our country.

Thailand politics is something not many know a lot about,

but in recent years there has been a lot of political news stemming

from Thailand. Thailand is a lot like the United Kingdom in its

current state of politics, but with a lot more stability issues that the

United Kingdom doesnt see. The reasons behind this areintriguing, but to understand them you first need know more of

Thailands government as a whole.

The country of Thailand is currently known as a constitutional monarchy, a type of government

that only a few countries still hold onto today. This type of government is unique because unlike a pure

monarchy, the monarchs are typically strictly just political figures with very little power, or power that

is limited by a constitution. The main decision-making comes from elected officials that are within a

parliament, much like the United States Congress.

In recent years, Thailand has had an interesting political climate; between the coup detat, which

occurred in September 19, 2006, and the change of government-types after the fact, Thailand has been

an ever-changing environment for the past twenty years. The coup was, remarkably, bloodless. It

occurred about a month before the nation-wide general elections. This mini-revolution was led by the

Thai Royal Military and shut down the elections, invalidated the Constitution, and suppressed and

censored the media. The army also arrested several Cabinet members of the Thai parliament. Thaksin

Shinawatra, the prime minister of Thailand, was ousted from power while he attended a United Nations


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meeting in New York. His time as prime minster is credited to the reason for the coup, since it allegedly

created a rift in society. Thaksin was accused under several categories of corruption, including abuse

of power, vote-buying, ethics violations, human rights violations, and interference in the political check

system. (The Nation) However, the actual reason for the coup is still unknown. Many analysts still

speculate as to why the coup actually occurred. Some say it was due to an on-going strife between the

King and Thaksin. (BBC News) Giles Ungpakorn, an academic of Chulalongkorn University, credits the

conflict to class conflicts between the elite and the urban poor. (Roberts & Symonds)

A new government was formed immediately after the coup. General elections were promised

within a year, and Thaksin was allowed to return to the country. Thaksin currently remains in a self-

imposed exile however for fear that he will be arrested along with his family if he does return. In recent

years many of his supporters have been seen to be wearing red shirts in support of his return to power aswell as to Thailand. In contrast the yellow shirts are supporters of the monarchy.

Following the election promise Marshall Law was declared, and censorship of media outlets

became an important part of keeping people in-checkno defamation against the military was

allowed on any airwaves, or social media. The self-declared temporary military regime banned any

form of political assembly or protest by Thai citizens, and any group of people that exceeded five in

number were required to hold a permit to travel throughout the country.

Elections did indeed happen one year after the coup. However, not before the military regime

established the Permanent Constitution for the Kingdom of Thailand in August of 2007. The

Constitutional Tribunal, which drafted the new Constitution, outlawed the Thai Rak Thai party, the

largest political party in Thailand, from participating in politics for five years. Attempting to bypass this

ban, the TRT dissolved and regrouped under the name, Peoples Power Party. While the military regime

attempted to subdue the PPP, the party won the popular vote of the people in December of 2007, gaining

a majority in the House. This win was not taken lightly by the military regime: various members of

the PPP were given red cards and accused of corruption. Rumors of dissolving the PPP spread, and by

2008, the PPP had merged with five smaller political parties, leaving the Democratic Party as the sole

opposition in elections.

Abhist Vejjajiva was elected Prime Minister of Thailand in 2008. Abhist based his political

platform on rights for the people, especially the rural and working poor of Thailand. However, his

actions did not align with his platform. He was accused of immense amounts of corruption and

censorship of the media. As political protests increased due to his regime, so did accusations of human

rights violations and torture. People around the country became more skeptical of Abhists actions and


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his motives. His crackdown of the protests by the National United Front of Democracy Against

Dictatorship in 2009 resulted in several deaths and hundreds of injuries. This of course heightened the

scrutiny that Abhist was already facing.

In July of 2011, Thailand once again held a general election. This time, Abhist Vejjajiva would

run against Yingluck Shinawatra, former Prime Minister Thaksin Shinawatras sister. Yingluck was

running in affiliation with the Pheu Thai Party(PTP), while Abhist ran with the Democratic Party. The

Pheu Thai Party won the election by a landslide. Naturally, accusations of corruption were present, and

a reelection and recount was ordered in several Thai provinces. Still, Pheu Thai kept its win, and

Yingluck Shinawatra was named Prime Minister of Thailand.

Currently the political climate in Thailand has calmed in comparison to recent years, this

however isnt a guarantee that things wont change in a blink of an eye. The Thai people have shown

that they wont put up with the corruption of government officials, as has the Thai military. This is

possibly one of the reasons the Thai government is undergone so many changes in the past few years, as

well as attributing to the stability issues the government has faced in recent years. One thing is for

certain however; the Thai people take politics very serious and will put their vote and voice where it

counts when needed. Although the political has more effect to many business but it has not many effect

to our business, because Thai regulation not be strict in the e-commerce and our business are sold only

in Thailand that not take an effect too much from the foreigner.

Economic

The Thai National Economic and Social Development Board (NESDB) forecasts 2012 to

produce economic growth of 3.5 - 4%. Thailand's export rate in 2010 grew by over 28 % and the second

quarter of 2011 continued to show strong expansion, attributed mainly to exports of USD 21.1 billion.

This was 16.8 % higher than last year. Thailand's average FDI figure for the last five years was US$ 668

million accounting for approximately 2% of GDP. And the FDI target is projected to rise to US$ 2.5billion in 2015, resulting in a FDI/GDP ratio of approximately 4%.

This will pave the way for an economic growth rate of 8-10%.

Recently, the Thai Board of Investment announced that for the first

seven months of 2011, investment value was almost 300,000

million baht. For 2011 a 10% growth rate is projected for the

country's automotive production where 2010 saw production of 1.7

million units. Thailand's electronics industry is also on a roll.


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From the investment and economic outlook above, SUBCON Thailand 2012 ASEAN'S leading

Industrial Subcontracting exhibition comes at the perfect time. 2012 is expected to be the largest ever

Industrial subcontracting exhibition in ASEAN. It is projected to feature over 300 top quality

subcontractors from many different industries and countries who will have the unique opportunity to

grow their business and establish new market directions at this special event.

Social and Environment

Thailand social almost depend on the economic and political situations that has more fluctuation

in every years.

Technology

Technology is the important role in our business because we sell our product through the website

(e-commerce). So the development of technology has an effect to our business that has a many factor for

example Face book, we can use Face book to advertising and review our product, and SEO system that

help our business through the search engine website by take our website to the top rank.


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3.1.2 Competition Analysis (3C Analysis)

Competitor analysis

We have only few competitors in Thailand which is not over 10 companies and has more

freedoms owner in Thailand. We offer a mix of both high-end and drugstore brand products but our

product samples are more suitable for Thai women. Although our competitors offer more brands than

us, we provide specific products which are suitable for each of our customer. For example, if one

customer fill out in the form that she has oily skin then we will choose products which is good for oily

skin to send her. By doing so she will get the right product and it is not a waste of money.

Our direct competitorsQoQo Box and Vanity Trove

QoQo Box offer sample premium beauty products and products include everything from make up

to skin care to hair care products and more. This is QoQo Boxs strength because they provide hair care

products and even expensive products. For example, they provide large sized samples that really allow

customer to compare the new products with their existing ones.

QoQo Box monthly subscription price is 495 baht which is a little expensive than our Beauty

Surprise Box. In addition, each QoQo Box includes 3-5 beauty samples but in our box we provide 5-6

beauty samples. So our Beauty Surprise Box gives more products at reasonable price.

QoQo Box Beauty Surprise Box

Price/month 495 baht Price/month395 baht

3-5 sample products 5-6 sample products

QoQo Box


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VanityTrove give out the most effective time-tested favorites and top-quality trending beauty

products in the industry into a specially put together box. VanityTrove provide skincare treats,

fragrances, makeup samples even bath & body and hair care products. VanityTrove have many beauty

brands available starting from A-Z.

VanityTrove monthly subscription price is 595 baht which is quite expensive compare to ourreasonable price. In addition, we provide more Asian beauty brands which are more suitable with Thai

women.

VanityTrove Beauty Surprise Box

Price/month 595 baht Price/month 395 baht

VANITYTROVE


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Customer analysis

Who are our customers?

between 19 to 30 years of age

both female and male

university students and office ladies

Where customer can contact?

Our official website

Facebook

Twitter

Youtube

Mobile phone

Why customers want to subscribe

our beauty surprise box?

To try new product samples before the

actual products launch in the market

To give a Gift to their moms, sisters, girl

friends and colleagues

Our target customers are people who interested in beauty trend and who like to try new products.Our target groups of customers are between 19 to 30 years of age. Main customers will be university

students and office ladies. Our customers can be both male and female. We provide the products suitable

for this group of customers.

Company analysis

We strive to create a special beauty experience that enhances all the elements for you. Our

Beauty Surprise Box brings a fabulous monthly selection of between five to six cosmetic samples

straight to your door. By working with the best brands and focusing on the latest beauty trends we

ensure each months box is a real treat. Make sure you fill out your beauty profile and enjoy a personally

crated box of cosmetics, lifestyle goods and luxury products. Make cosmetics discovery a social

exerciseshare your experience on YouTube, Twitter, and Face book.What make our Beauty Box

different from other companies is we advertise our Beauty Box not only via internet website but also via

Television. For customers who dont have time to use internet, we give a service for them to call viamobile phone and order our Beauty Box.


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3.2STP Analysis3.2.2 Market Segmentation

Demographic

Our company segmenting customer by demographic that has a main factor are age and gender. From

the below picture we can see that the female and a range of age between 12-35 years are the mostly used

the internet. So our company will choose the female for our target but for the range of age our company

will choose the age range between 18-35 years for our segmentation because the female range of age

that interest the cosmetic and has a sufficient purchase power are mostly between 18-35 years.

User of internet in Thailand, The range of survey during2012-02-01 to2013-01-10

1. GenderFrom the questionnaire82300 copy

Male 49.28%

Female 50.72%

2. Age

From the questionnaire82300 copy

Under12 yrs. 4.17%

12 - 17 yrs. 27.53%

18 - 23 yrs. 23.93%

24 - 35 yrs. 24.64%

36 - 55 yrs. 16.83%

Above 55 yrs. 2.90%


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3.2.2 Target MarketOur target is the female 18-35 ages. We select this segment because in behavior of female like the

beauty item or tool to make her better. Moreover we have separate the age to 3 groups. First of all is 18-

21. This group is last teenage. In term of teenage they have interest the beauty and they want to test the

cosmetic. Second group have period 22-27 ages. This groups the working women. She has the power to

buy the product because she has the salary to consume our product. And finally this group section of

age consumer is 28-35. In this group is the most powerful to consume but they have more condition

because their experience. That is the target of our company.

3.2.3 Market Positioning

We want to be the leader of fastest in this business ex. Fast distribute, fast response , because we

have work hard to study about problem with the cosmetic. Moreover I think our business have identity

of business. Its change the concept of gift. That is the mystery of the box. The consumer will push

forward about the item in the beauty box. By in nowadays the e-commerce businesses have increase of

growth rate. That is the big chance to become the first company to get the big market share. Moreover

the internet or cyber network is the factor to drive the company to successful in future. And we have the

way to distribute the product to the consumer faster than competition. And the target of our company

will select the product because our products have the quality.


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3.3 Marketing Mix Strategy3.3.1 4P

Product

Our product is a beauty surprise box which sends to members every month if they subscribe to be a

member of the website. Our product is a medium box that contains small pieces of cosmetic sampling,

and sometime well put the full size of product to let members to try too. The small sampling that we put

in the box will be the counter brand/ drug store/ and any regular brand in Thailand. Itll be a good way

for consumer who like to try new things but do not want to get full size of it.

Price

Price: beauty box set price is medium of revenue. The customer can buy product by credit card for

convenience

Place

Our places are web site online, atwww.beautysurprisebox.comand on our webpage on Face

book. We have office for compile product and pace product to customer at Bangkok; Because Bangkok

is the center easily to connect the company. The other factor for why that on line, its very popular and

convenient. The customer can order 24 hour and save time

Promotion

As our product is selling online and get product only once a month so well do online

advertisement and let bloggers to review our product. If we do this kind of advertising we have to send

some sample box to bloggers and let them try before they do a review to other people who follow them,

this strategy is a good and easy for the industry because we just take a benefit from power of word of

mouth to express the product directly to customers whom mostly are women. For attract more

customers if they want to try the product, wed offer some promotion like for the new trial we have one

month trying box and if they satisfy with our product and want to continue being a member, well offer

3/6/12 months with a special price and more gifts for members who subscribe for 6 and 12 months such

as palette of eyes shadows and beauty magazines.
http://www.beautysurprisebox.com/http://www.beautysurprisebox.com/http://www.beautysurprisebox.com/http://www.beautysurprisebox.com/


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3.4 SWOT AnalysisStrengths:

Differently of product and brand for cosmetic

Cosmetic come from Asian and Western brand

Difference quality

Not have the shop. We sell only online

Weakness:

Our product similar to some competitor

Same level of product

Varity of each person

Opportunities:

More competition

Transportation for sent the product

Threats:

Each people have different likely

Different of country


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3.6 Marketing Expense (Sales incentive)

SEO

Promote website to top rank search of search engine like Google.com

Cost: 32,500 baht/ 6month to top rank search engine 1-3

Total estimation: 32,500 x 4 times (promote first 2 years of operating) = 130,000 baht

Sale forecast Explanation

Due to our company has opened in the first year 2012 and we did collection on sale to 5 years

advance, its made the company know that the income will come during high season like New Year,

Valentines day, Christmas and any celebration day in each month. So, during that period well do

online advertisement through every channel like Facebook, twitter, instragram, and on our website as

much as we can. For other season wed also do the advertisement through beauty website community

like Jeban, Vanilla, and Pantip to attract women or men who find the new way to get a sample box of

cosmetic. Moreover, we can see from the table that the lowing sell in some months may from low

season, but thered be another thing which can interrupt our selling, it is competitors. Our company has

about 4 direct competitors in Thailand, and they did the similar ways as us so the selling unit in each

year will be low and not constant until we are in the 5 years above.


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Chapter 4

Investment Analysis

4.1 Pre operating cost

Companys billboard

The company decides to use plastic inkjet logo to put on the wall inside the company (the

company will have glass wall cover in the front). The logo will be the same as the picture above and

make it bigger by expand it out into 1*1.5 meters. Then, well put it inside of the company and the logo

will show up to people who walk on the street. The cost of this billboard will be 160 for 1*1 meter, so

it will cost 240 and some fees will be 100.


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4.2 Investment Cost

Building

Our company is broad areas in Bangkok province Bang Ka Pi. Cause the big areas for keep the

product and near the post office for fast to send the product. Lad Prao zone, 42,000 Bath / Month.

SoiRamkhamhaeng 81

http://www.thaihometown.com/buildings/6361
http://www.thaihometown.com/buildings/6361http://www.thaihometown.com/buildings/6361http://www.thaihometown.com/buildings/6361http://www.thaihometown.com/buildings/6361http://www.thaihometown.com/buildings/6361


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Layout

Office

Warehouse


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Investment cost (only one branch)

Item Picture Unit

Price

per

unit

Total

price

Usefu

l life

per

year

Annual

depreciati

on

Month

deprecia

tion

Telephone

homepanasonickx-

ts500

10 480 4800 5 960 80

computer 10 12000 120,000 5 2,400 200

box 1000 5 5,000 - - -

Cover papers 1000 3.12 3,120 - - -

desk 10 4000 40,000 5 8,000 667

chair 10 200 2,000 5 400 33


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calculator 10 150 1,500 5 300 25

printer 3 24,000 72,000 5 14,400 1,200

Fire extinguishers 3 3,800 11,400 5 2,280 190

Total 28,740 2,395

Mix for a branch is:

Total price = 264,820

Annual Depreciation Per year = 28,740

Month Depreciation = 2,395


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4.3 Investment depreciation

Year 1 (12months) Total priceUseful life

per year

Annual

depreciation

Month

depreciation

Total Price after

depreciation

Cost Type

Telephone

homepanasonickx-ts500

(*10)

48,000 5 9,600 800 38,400

Computer (*10) 1,200,000 5 240,000 20,000 960,000

*Box(*1000) 60,000 - - - -

**Cover papers(*1000) 37,440 - - - -

Desk(*10) 400,000 5 80,000 6,667 320,000

Chair(*10) 20,000 5 4,000 333 16,000

Calculator(*10) 15,000 5 3,000 250 12,000

Printer(*3) 216,000 5 43,200 3,600 172,800

Fire extinguishers(*3) 34,200 5 6,840 570 27,360

Total 2,030,640 386,640 32,220 1,546,560

*, ** Estimate for a year products and there is no depreciation


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Year 2 Total priceUseful life

per year

Annual

depreciation

Month

depreciation

Total Price after

depreciation

Cost Type

Telephone


(*10)

38,400 5 7,680 640 30,720

Computer (*10) 960,000 5 192,000 16,000 768,000

Box (*1000) - - - - -

Cover papers(*1000) - - - - -

Desk (*10) 320,000 5 64,000 5,333 256,000

Chair (*10) 16,000 5 3,200 267 12,800

Calculator (*10) 12,000 5 2,400 200 9,600

Printer (*3) 172,800 5 34,560 2,880 138,240

Fire extinguishers (*3) 27,360 5 5,472 456 21,888

Total 1,546,560 309,312 25,776 1,237,248


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per year

Annual

depreciation

Month

depreciation

Total Price after

depreciation

Cost Type

Telephone


(*10)

30,720 5 6,144 51224,576

Computer (*10) 768,000 5153,600 12,800

614,400

Box (*1000) - - - - -

Cover papers(*1000) - - - - -

Desk (*10) 256,000 5 51,200 4,267 204,800

Chair (*10) 12,800 5 2,560 213 10,240

Calculator (*10) 9,600 5 1,920 160 7,680

Printer (*3) 138,240 5 27,648 2,304 110,592


Total 1,237,248 247,450 20,621 989,798


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per year

Annual

depreciation

Month

depreciation

Total Price after

depreciation

Cost Type

Telephone

homepanasonickx-

ts500

(*10)

24,5765 4,915 410 19,661

Computer (*10) 614,400 5 122,880 10,240 491,520

Box (*1000) - - - - -

Cover papers(*1000) - - - - -

Desk (*10) 204,800 5 40,960 3,413 163,840

Chair (*10) 10,240 5 2,048 171 8,192

Calculator (*10) 7,680 5 1,536 128 6,144

Printer (*3) 110,592 5 22,118 1,843 88,474


Total 989,798 197,959 16,497 791,839


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per year

Annual

depreciation

Month

depreciation

Total Price after

depreciation

Cost Type

Telephone


(*10)

19,661 5 3,932 328 15,729

Computer (*10) 491,520 5 98,304 8,192 393,216

Box (*1000) - - - - -

Cover papers(*1000) - - - - -

Desk (*10) 163,840 5 32,768 2,731 131,072

Chair (*10) 8,192 5 1,638 136 6,554

Calculator (*10) 6,144 5 1,229 102 4,915

Printer (*3) 88,474 5 17,695 1,474 70,779


Total 791,839 158,368 13,196 633,471


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Chapter 5

Operations Analysis

5.1 Production and Operations Analysis

5.1.1 Product Characteristic

Our beauty surprise box gives the most effective time-tested favorites and top-quality trending

beauty products in the industry into a specially put together every month, sent directly to you. We bring

to you only the best, solving your beauty dilemmas one trove at a time. Beauty Surprise Box made

beauty discovery easy. It is more than just about a product. It is about the experience and the surprise.


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Product Characteristics in detail

Type of cosmetics

I. Face cosmetics

Cleanser (Sample product from the company)

Etude baking powder cleansing foam

moist 30ml.

Astringent preparations and skin fresheners (Sample product from the company)

Skinfood watery berry blending cream

Lancme White expert spot cream

Make up (Sample product from the company)

Etude house Precious BB cream


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Bisous Bisous collagen

pack powder

Source: beauty-siam.com

II. Body cosmetics

Cleansing (Sample product from the company)

Skinfood paprika body washes 50g.

Astringent preparations and skin fresheners (Sample product from the company)

Oriental Princess body lotion

III. Hair cosmetics

- Cleansing

- Astringent preparations and skin fresheners


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5.1.2 Service Process

(1)Subscribe to our website.

(2)Register as a member.

(3)Choose the package. ( 1month, 6 months or 12 months package)

(4)Deliver to customer via EMS.

(5)Door-to-Door system.

(6)Feedback from customers.

5.1.3 Process and Packaging

Once the customer have subscribed to our package, we will carefully select and gather the

product samples into a box. Then we will deliver to our customer at the end of the month. We will add a

piece of greeting postcard in the box too. We carefully pack and design the box with pretty decoration.

5.1.4 Materials

As we dont produce ourown products, we use the products from our selected suppliers. For

example, the products from Lancome, BisousBisous, Neutrogena, Skinfood, Etude etc. One Beauty

Surprise Box might contain skincare samples, BB cream, mascara, mask sheet, eye shadow, lip gloss

and etc. Products will be different depend on the season and trend.

5.1.5 Direct Labor

Beauty Expert 2 Position

Job Qualification

Experience in Fields Of Dermatology And Skin Care at least 3 years

Male/Female, age above 25 years Master/Doctor Degree graduate

Job Detail


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Dermatology And Skin Care of Beauty Surprise BoxSalary: 15,000 Baht per month

Packaging Staff 3 position

Job Qualification

Experience in decoration at least 1 year

Not limited degree

Male/Female, age above 25 years

Job Detail

Packaging staff of Beauty Surprise Box

Salary: 8,000 Baht per Month

Delivery person 2 position

Job Qualification

Males aged 23-30 years

Education grade 9 up

Must have driving license

Have responsibility

Job Detail

Sent product to EMS

Salary: 8,000 Baht per Month

Marketing Manager 1 position

Job Qualification

Bachelors degree to Master

Male/Female, age not over 35 years

Experience in marketing management at least five years


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Salary: 16,000 / Mont h

Programmer 1 positionJob Qualification


Male/Female age not over 25 years

Experience: a minimum of two to four years of work-related skill, knowledge, orexperience is needed for these occupations

Salary: 18,000/month

Accountant 1 position

Job qualification



Experience: a minimum of two to four years of work-related skill, knowledge, or

experience is needed for these occupations


Total Salary

Detail Unit Salary Baht/month

Beauty Expert 2 15,000 30,000

Packaging staff 3 8,000 24,000

Delivery person

Marketing manager

Programmer

Accountant

2

11

1

8,000

16,00018,000

17,000

16,000

16,00018,000

17,000

Total 121,000


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Utilities Expense:

Utilities

Baht/month

Electricity 4,929.8

-Internet expense ( include VAT) 631.50

-Telephone expense 150

-Maintenance costs 1,00

Electricity ,internet ,and telephone expense/month 5811.30

Water 5,00

Total Utilities 6,311.3

Total Administration Cost

Administration Cost

Baht/month

Electricity 4,929.8

Internet and telephone expense/month

-Internet expense (include VAT) 631.50

-Telephone expense 150

-Maintenance costs 1,00

Electricity ,internet ,and telephone expense/month 5811.30

Water 5,00

Total salary 70,000


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Total Administration cost 76,311.3

Total operations cost

Operations Baht/month

Salary 121,000

Overhead cost

-Water 5,00

-Electricity 4,929.8

-Internet and telephone 781.50

-Fuel(variable) 21,000

Maintenance 1,00

Total 148,311.3


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Chapter 6

Management Analysis

6.1 Administration Cost

6.1.1 Organization Management

Organizational structure

The main tasks are as follows.

1) The executive manager responsible for finance, accounting and preparation transport product

and we have shop map when customer interest use full product.

2) The programmer is responsible for website and managing about management system on the

website. Customer can contract, register and comment on website.

Logo

Beauty surprise box logo to advertising and show our company images to customer. We use logo

into box product when customer see and they can remember our on "Beauty surprise box" is leader of

sampling cosmetic box for beauty and healthy.


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6.1.2 Administration Cost

Salary

1. Marketing Manager 1person 16,000 / Mont h

2. Programmer 1 person 18,000/month

3. Accountant 1 person 17,000/month

Total salary per month 51,000/month

Infrastructure

Electricity expenses(A)

Fixed Electricity Expenses 228.17 baht

Variable Electricity Expenses 2,000 units x 2.4649 baht 4929.8 baht

Monthly Electricity Expenses 4929.8 baht

Fuel Expenses

Monthly Fuel Expenses = (40kmx35baht/lt. of Diesel) = 21,000 baht

(A)

(n.d.) http://www.eppo.go.th/power/pw-Rate-MEA.html#2

Telephone expenses (B)

Contact for Consumer 100 minutes x 1.50 baht 150 baht

Monthly Telephone Expenses 150 baht


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Rent expenses

Rent of row house for store 7500 bath (r.rama2)

Monthly Rent Expenses 7500 bath

(B)

http://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=th

Office staff

Marketing Manager 1 position

Job Qualification


Male/Female, age not over 35 years

Experience in marketing management at least five years

Salary: 16,000 / Mont h

Programmer 1 position

Job Qualification



Experience: a minimum of two to four years of work-related skill, knowledge, or experience isneeded for these occupations

http://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=thhttp://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=thhttp://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=thhttp://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=thhttp://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=thhttp://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=thhttp://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=thhttp://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=th


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Accountant 1 position

Job qualification



Experience: a minimum of two to four years of work-related skill, knowledge, or experience isneeded for these occupations



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Chapter 7

Financial Analysis

7.1 Profit/Loss Statement

Profit and Loss Statement for the first year of business operating

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TotalRevenue

selling 1,161,300 1,265,580 815,280 1,092,570 770,250 675,450 616,200 983,550 774,990 680,190 786,840 1,298,760 9,622,200

total revenue 1,161,300 1,265,580 815,280 1,092,570 770,250 675,450 616,200 983,550 774,990 680,190 786,840 1,298,760 9,622,200

Cost of good

sold

Box 417 417 417 417 417 417 417 417 417 417 417 417 5,004

Paper cover 260 260 260 260 260 260 260 260 260 260 260 260 3,120

total 677 677 677 677 677 677 677 677 677 677 677 677 8,124

Gross margin 1,160,623 1,264,903 814,603 1,091,893 769,573 674,773 615,523 982,873 774,313 679,513 786,163 1,298,083 9,614,076

Expense

Postal expense 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 200,004

Fuel 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000

Pre operating 340 340

Water 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Electricity 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 59,160

Telephone andinternet 782 782 782 782 782 782 782 782 782 782 782 782 9,384

SEO (promotewebsite) 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 65,004

Server rental 5,400


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Fail oversystem 270,000

productionstaff salaries

(packing,deliverymanand

beauty expertsalary) 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000

Office staffsalaries

(person in

office) 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 612,000Rental fee 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 504,000

OfficeEquipmentsand supply 265,070 265,070

Other 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Total expense 753,356 212,546 212,546 212,546 212,546 212,546 212,546 212,546 212,546 212,546 212,546 212,546 3,091,362

Earning

before

interest and

Tax 407,267 1,052,357 602,057 879,347 557,027 462,227 402,977 770,327 561,767 466,967 573,617 1,085,537 6,524,614

Tax 30% 122,180 315,707 180,617 263,804 167,108 138,668 120,893 231,098 168,530 140,090 172,085 325,661 1,957,384

Net income 285,087 736,650 421,440 615,543 389,919 323,559 282,084 539,229 393,237 326,877 401,532 759,876 4,567,230


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Profit and Loss Statement for the second year of business operating

Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Revenue

selling 1,564,200 1,474,140 1,047,540 1,362,750 988,290 822,390 763,140.00 1,064,130.00 869,790.00 810,540.00 910,080.00 1,476,510.00 13,153,500

total revenue 1,564,200 1,474,140 1,047,540 1,362,750 988,290 822,390 763,140.00 1,064,130.00 869,790.00 810,540.00 910,080.00 1,476,510.00 13,153,500

Cost ofgood sold

Box 417 417 417 417 417 417 417 417 417 417 417 417 5,000

Paper cover 260 260 260 260 260 260 260 260 260 260 260 260 3,120

total 677 677 677 677 677 677 677 677 677 677 677 677 8,120

Gross

margin 1,563,523 1,473,463 1,046,863 1,362,073 987,613 821,713 762,463 1,063,453 869,113 809,863 909,403 1,475,833 13,145,380

Expense

Postalexpense 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 199,200

Fuel 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000

Preoperating

0 0 0 0 0 0 0 0 0 0 0 0 0

Water 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Electricity 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 59,158

Telephoneand internet 782 782 782 782 782 782 782 782 782 782 782 782 9,378

SEO(promote

website) 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 65,000Server rental 5,400 0 0 0 0 0 0 0 0 0 0 0 5,400

Fail oversystem 270,000 0 0 0 0 0 0 0 0 0 0 0 270,000

productionstaff salaries 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000


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(packingman and

delivery mansalary)


(person inoffice) 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 612,000

Rental fee 42000 42000 42000 42000 42000 42000 42000 42000 42000 42000 42000 42000 504000

OfficeEquipmentsand supply 0 0 0 0 0 0 0 0 0 0 0 0 0

Other 250 250 250 250 250 250 250 250 250 250 250 250 3000

Total

expense 487,878 212,478 212,478 212,478 212,478 212,478 212,478 212,478 212,478 212,478 212,478 212,478 2,825,136

Earning

before

interest andTax 1,075,645 1,260,985 834,385 1,149,595 775,135 609,235 549,985 850,975 656,635 597,385 696,925 1,263,355 10,320,245

Tax30% 322693.62 378295.62 250315.62 344878.62232540.6

2182770.6

2 164995.62 255292.617 196990.62 179215.62209077.61

7 379006.6173096073.4

1

Net income 752,952 882,690 584,070 804,717 542,595 426,465 384,990 595,683 459,645 418,170 487,848 884,349 7,224,171


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Profit and Loss Statement for the third year of business operating


Revenue

selling 5,237,700 5,545,800 4,668,900 4,479,300 4,787,400 5,024,400 4,977,000 4,597,800.00 4,218,600 4,740,000 4,692,600 5,593,200 58,562,700

totalrevenue 5,237,700 5,545,800 4,668,900 4,479,300 4,787,400 5,024,400 4,977,000.00 4,597,800.00 4,218,600 4,740,000 4,692,600 5,593,200 58,562,700

Cost ofgood sold

Box 417 417 417 417 417 417 417 417 417 417 417 417 5,004

Papercover 260 260 260 260 260 260 260 260 260 260 260 260 3,120

total 677 677 677 677 677 677 677 677 677 677 677 677 8,127

Gross

margin 5,237,023 5,545,123 4,668,223 4,478,623 4,786,723 5,023,723 4,976,323 4,597,123 4,217,923 4,739,323 4,691,923 5,592,523 58,554,573

Expense

Postalexpense 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 199,200

Fuel 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000

Preoperating

0 0 0 0 0 0 0 0 0 0 0 0 0

Water 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Electricity 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 59,160

Telephoneand

internet 782 782 782 782 782 782 782 782 782 782 782 782 984

SEO(promotewebsite) 0 0 0 0 0 0 0 0 0 0 0 0 0


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Serverrental 5,400 0 0 0 0 0 0 0 0 0 0 0 5,400

Fail oversystem 270,000 0 0 0 0 0 0 0 0 0 0 0 270,000

productionstaff

salaries(packingman anddelivery

mansalary) 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000


(person inoffice) 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 612,000

Rental fee 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 504,000

OfficeEquipment

s andsupply 0 0 0 0 0 0 0 0 0 0 0 0 0

Other 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Total

expense 482,461 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 2,751,744

Earning

beforeinterest

and Tax 4,754,562 5,338,062 4,461,162 4,271,562 4,579,662 4,816,662 4,769,262 4,390,062 4,010,862 4,532,262 4,484,862 5,385,462 55,802,829

Tax 30% 1,426,369 1,601,419 1,338,349 1,281,469 1,373,899 1,444,999 1,430,779 1,317,019 1,203,259 1,359,679 1,345,459 1,615,639 16,740,849

Net

income 3,328,193 3,736,643 3,122,813 2,990,093 3,205,763 3,371,663 3,338,483 3,073,043 2,807,603 3,172,583 3,139,403 3,769,823 39,061,980


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Profit and Loss Statement for the fourth year of business operating


evenue

selling 5,342,671 4,683,373 4,919,919 5,045,999 4,386,234 4,966,062 4,828,796 5,060,448 4,903,605 5,065,342 4,975,618 5,406,061 59,584,127

total revenue 5,342,671 4,683,373 4,919,919 5,045,999 4,386,234 4,966,062 4,828,796 5,060,448 4,903,605 5,065,342 4,975,618 5,406,061 59,584,127

st of goodsd

box 417 417 417 417 417 417 417 417 417 417 417 417 5,004

per(wrap box) 260 260 260 260 260 260 260 260 260 260 260 260 3,120

total 677 677 677 677 677 677 677 677 677 677 677 677 8,124

oss margin 5,341,994 4,682,696 4,919,242 5,045,322 4,385,557 4,965,385 4,828,119 5,059,771 4,902,928 5,064,665 4,974,941 5,405,384 59,576,003

pense

postal expense 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 199,200

Fuel 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000

Pre operating

Water 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Electricity 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 4,930 59,158

Telephone andinternet

782 782 782 782 782 782 782 782 782 782 782 7829,378

SEO

Server rental 5,400 5,400

il over system 270,000 270,000roduction staff

salaries 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000

Office staffsalaries 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 612,000

Rental fee 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 504,000


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Officequipments and

supply

Other 250 250 250 250 250 250 250 250 250 250 250 250 3,000

tal expense 482,461 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 207,061 2,760,136

rnings beforeerest and Tax 4,859,533 4,475,635 4,712,180 4,838,260 4,178,496 4,758,324 4,621,058 4,852,709 4,695,867 4,857,603 4,767,879 5,198,323 56,815,867

Tax 30% 1,457,860 1,342,690 1,413,654 1,451,478 1,253,549 1,427,497 1,386,317 1,455,813 1,408,760 1,457,281 1,430,364 1,559,497 17,044,760

Net income 3,401,673 3,132,944 3,298,526 3,386,782 2,924,947 3,330,827 3,234,740 3,396,897 3,287,107 3,400,322 3,337,515 3,638,826 39,771,107

Profit and Loss Statement for the five year of business operating

Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Assets

Current asset

Cash 1,715,689 1,916,480 1,282,410 1,460,089 798,148 641,372 711,050 1,303,313 839,955 979,311 1,372,991 2,135,965

Total current asset 1,715,689 1,916,480 1,282,410 1,460,089 798,148 641,372 711,050 1,303,313 839,955 979,311 1,372,991 2,135,965

None current assetWebsite server 5,400 0 0 0 0 0 0 0 0 0 0 0

Total non-currentasset 5,400 0 0 0 0 0 0 0 0 0 0 0

Fixed assets


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Equipments(Production) 677 677 677 677 677 677 677 677 677 677 677 677

Equipments(Office) 66,237 66,237 66,237 66,237 66,237 66,237 66,237 66,237 66,237 66,237 66,237 66,237

Less:accumulated

depreciation (Office) 13,196 13,196 13,196 13,196 13,196 13,196 13,196

Documents

Beauty Surprise Box Seat 12 Section 1