MUIC Directed Research Report

W A N J A I C A F É

I C M B 4 9 4 D I R E C T E D R E S E A R C H

Mahidol University International College

| [COMPANY ADDRESS]

Mahidol University International College

Report on ICMB 494 Directed Research

Submitted to

Dr. Thanarerk Thanakijsombat

Directed Research Final Project on WanJai Café

by

Kojchakorn Rerksudsan 5380921

Christopher Kelly 5480445

Monthorn Bhadharavit 5480472

Kan Wanaphuwadol 5480491

Ronarit Kumpuy 5480987

WANJAI CAFÉ

0

Agenda

I. Executive Summary 1

II. General Description 2

○ Company description

○ Organizational structure

○ Triple bottom line

III. Market Research 7

○ Primary research

○ Secondary research

○ SWOT

○ Summary and apply

IV. Marketing 20

○ Segmenting, targeting, and positioning (STP)

○ Marketing mix

V. Finance Plans 50

○ Management planning

○ Operational planning

○ Value proposition

VI. Appendices 66

○ References

○ Questionnaire

○ Survey data

WANJAI CAFÉ

1

Executive Summary

In Thailand, Thai desserts spread its tastes and uniqueness from the royal palaces of

Thailand to its people throughout different part of the country. There is no hard evidence of the

accurate time period concerning the creation of Thai desserts, however it is known for more

than hundreds of years. It became well known and popular during the Ayutthaya Era, in which in

this era Thailand started to adapt and create some other new desserts from foreign influences.

So this means that not only that the Kings and Queens have access to traditional Thai desserts,

but Thai citizens and foreigners are able to experiences the authentic Thai Desserts as well.

Traditional Thai desserts contain more than uniqueness in its type of dessert. The

processes of making any Thai desserts require a lot of familiarity and expertise in making the

best and most tasteful desserts, this means that if the ingredients and the way to make the

dessert is slightly different or out of the scope, then the desserts would not taste the same and

loss its authenticity. This is why not everyone can make Thai desserts perfectly aligned with its

tradition.

At WanJai Café, we provide the best Thai desserts under its highest quality and

authenticity by integrating contemporary concept. Although there are many Thai dessert carts

that serve Thai desserts in almost every market in Thailand, the number of high quality and

authentic Thai desserts cafe that gather different kinds of Thai desserts in one place with the

traditional Thai atmosphere is relatively low. And its even lower for Thai desserts that serve in a

contemporary style. Since the new generation of Thai citizens focus highly on the quality,

cleanliness, and variety of Thai desserts, WanJai Café can easily fulfill this important factors

and by sending one of our manager and two of the owners to gain knowledge from expertise in

Thai desserts‟ field. WanJai Café serves only the Thai desserts that majority of the

citizens/consumers thought of including common desserts such as Khanom Krok, Khao Niew

Mamuang, and Tong Yip/Tong Yod/Foy Tong.

WanJai Café not only serves Thai desserts with contemporary concept with a lot of

variety in one place, but also the cafe serves the originality of Thai culture/tastes as well as the

history of the products. Since Thai people have the tendency to be pride of their own nationality

and the unique culture that they are raised, this means that WanJai Café can be a part of

integrating the traditional Thai desserts as well as the culture itself and pass it along to the

consumers - in which can possibly pass along the rumors both online and offline to other

potential consumers and attract others to taste WanJai Café desserts. From this, WanJai Café

may infer that the cafe will become successful both in terms of desserts and culture enhancer.

WANJAI CAFÉ

2

General Description

Company Description

WanJai Café is a cafe that serves original Thai desserts that remain and bring back the

tastes of the old days by integrating contemporary. The cafe will sell only Thai desserts that is

authentic and consisting of Thai culture as well as ingredients. Since there is not many choices

and selection on excellent-quality and authentic Thai desserts, WanJai Café will be the next

location for consumers who love and interested in Thai desserts. WanJai Café will focus on only

providing and serving Thai desserts that first comes up to mind of the consumers and other

desserts that majority of consumers show interests in consuming. Along with the Thai desserts,

WanJai Café serves Thai herbal beverages to enhance the richness of the tastes and

compliment the health of the consumers. However, the tastes and flavour of the desserts will

remain original. The ingredients that WanJai Café uses will be organic and concerns about the

health of the consumers. The WanJai Café shop will be managed with high cleanliness and

freshness. The desserts that WanJai Café serves will be fresh-made, already made, and some

desserts that is ready to go - which the shop will focus mainly on freshly made. For those

desserts that is already made, some will be made by WanJai Café before the shops open on a

daily basis and some will be order from well-known Thai desserts around bangkok. The recipes

and specialties concerning Thai desserts will be gain and use in Wanjai Cafe from a highly

experienced and reputable chefs at Bangkok Thai Cooking Academy. The cafe will have an

atmosphere of Thai tradition with Thai modernity. The first location will be establishing at The

Circle Ratchapruk community mall by renting the first floor of the building, since this community

mall has a reasonable and consistent flow of consumers throughout the week and highly dense

on the weekend. The shop operating hours will be from 11:00 AM until 10:00 PM from Monday

until Sunday including Thai national holidays.

WANJAI CAFÉ

3

Strategic Planning

Vision: To become the most famous contemporary Thai dessert Cafe.

Mission:

(1) To increase the awareness of authentic Thai desserts and ingredients

(2) To serve the best quality desserts to consumers

(3) Introducing new experience for customers to enjoy Thai desserts

Goals:

(4) To be able to expand internationally after 4 years of operation.

(5) To continuously serve the best quality and ingredients for consumers.

(6) To break-even in less than 1 years

(7) To have at least 5 branches in Thailand within 5 years

(8) To gain profit of 100,000 baht/month after 6 months of operation

Core Values

WanJai Café‟s values are under CBC concept:

Contemporary - Our products will introduce new experience on authentic Thai dessert.

Best Quality - We serve the highest quality of Thai desserts with selective ingredients

Cleanliness - Our place and product are always under monitor and remain consistent with

Thailand Health Department and Standard

Business Philosophy

Consumers who enter WanJai Café can experience a contemporary Thai desserts as

well as the atmosphere, and a welcoming services from the shop itself and employees. In which

the original and authenticity of their flavors still remain.

WANJAI CAFÉ

4

Business Challenges

From our surveys on how much Thai people are interested in consuming Thai desserts

on a regular basis, it shows that not many Thais do consume regularly - which means WanJai

Café cannot rely much or returned customers under a week or less. So from this, WanJai Café

has the Challenge of spreading the word that Thai desserts is better for their health and society

than other general desserts (since in our observations, it shows that more Thai do consume

desserts that is not Thai, a lot more than Thai desserts) by focusing on the contemporaneity and

the support of the local people and culture of Thailand. This would then change the perception

of Thai people towards Thai desserts in a beneficial way both for consumers and the country as

well as WanJai Café.

Key to Success

The first key to success is to introduce new perception toward Thai dessert but yet

maintaining the authenticity of the products that WanJai Café serves to consumers. This will be

the main driver of WanJai Café and will also be the image of the company to compete with other

existing competitors. The second key to success of this type of business is to provide services

and products under the highest quality. From this charging a higher price than our competitors

would be reasonable since our quality is high combined with the authenticity. The last factor is

cleanliness throughout the cafe and products that we provide. Since there are many of Thai

dessert carts in most of the street market, they would not be able to compete with WanJai Café

due to the dust and pollution density out in market. These three keys to success is what will

drive our cafe forward and allows us to charge consumers at a higher price.

WANJAI CAFÉ

5

Triple bottom line

What can WanJai Cafe contribute to ‘Triple bottom line’

Not only concern about the figure appearing in balance sheet, WanJai Cafe recognizes

the concept of triple bottom line and regards the collective goal of the whole society as one of its

requirement which must be achieved in the near future. Rather than just giving away a portion of

money which does not correspond to the correct concept of TBL, WanJai Cafe aims to get

involved as much as possible in the process of creating sustainability.

WanJai Cafe aims to encourage TBL concept by buying ingredient from farmer who

preserve traditional way of farming. This action will correspond to three main pillar of TBL, which

are people, planet and profit.

Profit

The farmers who preserve traditional way of farming most of the time are at economic

disadvantage compared to others group. This is true because the products grown by using

traditional farming are subjected to inferior yield, appearance and so on. Also the production

often lacks economy of scale. all of these conditions contribute to higher cost and uncompetitive

price. This is only the beginning of the issue. Other potential threat might aggravate the

business of traditional farmer. For example, price cutting from competitor, unfair trade

agreement forced by market intermediator.

WanJai Cafe will approach these traditional farmers and negotiates over the possibility

of contract farming. Both party will talk and discuss over many issues. For example, buyer

would like to help farmer buy purchasing at relatively high price but set a strict condition that the

farmer must preserve the old traditional ways and keep product quality up to standard. If this

agreement is established, both side will clearly get benefits.

WANJAI CAFÉ

6

Planet

Agricultural business nowadays has adopted so much of technology to help increase the

productivity and generate more revenue. These technologies, however, come with high cost,

especially chemical technology. All of these innovative technology contributes to pollution in air,

water resource and soil. These environmental issue, even though significant, has not been

cared enough by society. WanJai Cafe, thus, want to be one of the force that help protect

environmental issue by supporting traditional farming.

People

The gap between modern, large scale farmer and traditional farmer exist in every aspect

such as of economic, education and most important social. Because of uncompetitive business

that generate too little income, traditional or small farmer often lack opportunity such as

education and health care. This eventually create what we call vicious cycle. Inevitably, these

minorities will become scapegoat on which the whole society blames. The program established

by WanJai Cafe will not completely get rid of it, but will surely alleviate the problem.

WANJAI CAFÉ

7

Market Research

Primary Research Survey

Research Objectives:

● To learn what are the customers‟ needs and wants

● To observe customers‟ behaviors and attitudes towards dessert café

● To successfully understand consumers in order to best serve the demand

● To test market if there is potential consumer for Thai dessert at The Circle

Developing the Research Plan /Data Collecting

WanJai Café has done the research both for both primary and secondary data and

information, with the purpose to best achieve the objectives. The primary research was

conducted by questionnaire, with screening questions in order to get most optimum answers

from target market.

The Screening Questions

● Do you like dessert?

● Do you like Thai dessert?

● Do you visit dessert shop/café?

Questionnaire

The questionnaire computed of 27 questions, including screening and demographic

questions. The questionnaire has been completed by 112 respondents, which is divided to 56

male and 56 female. (The questionnaire sample will be available in the Appendix section)

WANJAI CAFÉ

8

Analyzing the Data

Dessert consumption

This is to show the regular dessert consumption of the target market. Where surprisingly

it shows that 28.6% of people consume dessert more than once a week, 23.2% for once a

week, and 22.3% more than four times a week. This shows the often consumption of people in

the industry. While the consumption of once per month is only 5.4%

Thai dessert consumption

This is to study Thai dessert consumption in the market. It shows that people mostly

consume Thai dessert once a month at 32.4% and once a week at 28.8%and only 1.8% says

they would consume more than 4 times a week. This reflects the portion of Thai dessert within

the dessert consumption of consumers. It has a big different from desserts in general where

people usually consume it quite often, yet not often much with Thai dessert.

Visiting frequency

This also shows the habit of consumers who go out for dessert at dessert shop/café. It

results consumer usually visit once a week the most at 30.6% while the other two record with

second high percentage are more than once a week and once a month at 21.6%. So people in

general tend to visit dessert shop/café regularly.

Purpose of visiting

To know the purpose of visiting, will help WanJai Café being able to identify the need

and best serve it. There is 73.2% saying that the purpose of visiting any certain dessert café is

because to consume their desserts. While another 48% says they go to dessert café mainly just

for socializing such as meeting up or catching up with friends. As result, it shows that

consumers visit because of the goods of the café, and in order to best satisfy consumers,

WanJai café will serve the goods with premium quality.

WANJAI CAFÉ

9

Factors impact on decision making

There are factors that will create impacts towards consumer mindset in term of decision

making whether or not to visit the dessert café. While the summary will be based on the result of

greatest and least votes for each factor.

● Quality: the result says quality is very important at 25.1% where only 6.3% says it

is not important at all.

● Variety: is also considered as important with 40.5% while 6.3% says it is not

important at all.

● Atmosphere: is as similar to the result of variety where 234.2% says in it important

while

6.3% says it is not important at all.

● Decoration: is usually one of the factors that attract customers, respondents said it is

important at 37.8% while 7.2% said it is not important at all.

● Price: is what of the decision-making-changer where it has a great role in

consumer mind whether to choose certain café or not, the respondents

said price is important at 33.3% while 7.2% said it is not important at all.

● Cleanliness: has a high score of 45% where respondent said it is very important and

surprisingly 7.2% said it is not important at all.

● Location: 33.3% of respondents pay attention to the distance and location before

choosing the dessert to visit as it is important, while 9% sees the location

as not important at all and willing to visit and stop by regardless to the

neither location nor distance.

WANJAI CAFÉ

10

At the end, this shows that the most concern factors are quality and cleanliness of the goods

and store itself. Therefore, the top things need to be added to the business will be the two

factors mentioned, while other factors will be kept in consideration throughout the process.

Number of consumers visiting at once

To understand more of the target market, the size of target market in term of visiting at

once is also important for laying out the store in order to best satisfy them. It shows that 33.9%

answered they usually come to dessert café by three people, including the respondents.

Following by, 26.8% said they usually come by two people, including respondents. While the

minority votes are alone at 4.5% or coming in a big group of five or more at 8%.

This means consumers would come in a small size of group, with people of

approximately 2-3 people per group at a time. While the least likely case to happen would be

alone or big group of more than five people.

Type of target market‟s company

Normally, dessert café/shop consumers usually come in 2-3 people at a time, but it is

important to learn who are they with in order to make the place best suit the occasion. From 112

respondents, 61.3% said they would come to dessert café with their friends and 40.5% with

girlfriend/boyfriend, and 31% with family.

Top 3 Thai dessert names and keywords

The mindset of respondents once mentioned about Thai dessert menu, the popular ones

that appear in the answers are Thongying Thongyod Foithong, Look chub, and Bua loi. While

the top of mind keywords that would come up once Thai dessert is mentioned are sweet, tasty,

and traditional.

Likely to consume menu

Surprisingly, the best comes to the simplest, as respond of which Thai desserts would

respondents be interested in consuming most is Thai mango with sweeten sticky rice is the

second with 56.9% and Kanom Krok which is 56%, while and least vote is Bulhandunmek at

3.7%

WANJAI CAFÉ

11

Purpose of visiting The Circle

Most people have been to The Circle before, and respondents said the reasons they

likely to visit The Circle are to eat 75.3% and meeting up 30.6%. Logically, meeting up with

either friends or family usually end up at dining or snacking. Therefore, there is potential of

people who visit The Circle with the purpose of meeting up will end up in the same group of

visiting The Circle to eat, eventually. This shows a positive impressive result where The Circle

visitors are mainly looking for something to eat, which will benefit to WanJai business even

more. As WanJai is now the first official Thai dessert shop at The Circle too.

Potential of customers visiting newly open Thai dessert café at The Circle

Even though people visiting The Circle mainly looking for something to eat. However, the

question asked if there is a new dessert café at The Circle, will you visit or stop by? The majority

of the answers are definitely and maybe. Most people said they will definitely try because it is

new and to support Thai culture as well. While another majority group said they might visit if it

looks nice or seems to be tasty. Only the minority refused to visit or stop by.

Preferences on Thai dessert‟s selling process form

As in Thai dessert café mentioned, from the concerns and expectations 11.8% said they

would like the Thai dessert to be fresh made, 38% is to-go or take-home, and only 10.2% wants

already-made Thai desserts.

WANJAI CAFÉ

12

Secondary Research

Market Audit

Market Size and Market Demand

Thai desserts were available only in palace for Thai Kings and Queens, where it takes

days to prepare. Later on they are available on occasional celebration events. Now, Thai

desserts can be found anywhere. In 2013, the market price of Thai desserts was approximately

670,000 million THB, with the great opportunity in exporting as well. Thai dessert industry has a

big role for SMEs business especially in centre of Thailand where it is the hub of country

transportations. According to KBank, Thai dessert business in centre of Thailand computed of

21% from the other parts of country.

The „Youth opinions of the image of Thai dessert in Thailand‟ says that 90 percent of

Thai teens do like Thai dessert, and usually demand and consume Thai dessert around 2-5

times a month. While the reasons of demanding to consume Thai desserts because they are

tasty, nicely scented, hygienic classic packaging, and healthy from natural ingredients.

Market Trends

Thai consumers have mainly three different consumption behaviour trends. In meaning,

the trends of where they would consume.

Street Cart

Thai desserts were rare in old days, but nowadays it is everywhere regardless to the

originality and quality of goods. The biggest market place would be street carts where they sell

Thai desserts, usually the basic ones, for walk-by customers, and sometimes loyal/local

customers. The desserts are very common such as Kanom krok, Kanom bueng, Salim, etc.

Supermarket

As people live styles changed to when everything needs to best fast and convenient, it

comes to supermarket or hypermarket where Thai desserts will be sold and preserved.

Customers can pick up the goods within the market either in normal preservative form or even in

frozen form such as S&P frozen Bua loi nam khing.

WANJAI CAFÉ

13

Dessert Café

The smallest market place would be Thai dessert shops or café. This is a place to

specifically sells only Thai desserts, and usually be both common and rare desserts. The store

could be in either form of buy-and-go or shop-and-stay. In meaning, some Thai dessert shops

such as Baan Aiyakan will be sell more of premium and high quality Thai dessert with no seats

available. Whereas some shops operate as café where there are seats for customers to sit

down and enjoy both dessert and atmosphere.

WANJAI CAFÉ

14

Environmental Analysis

Macro Environmental Analysis using PEST

Politic

Thailand is now having the instability political and government, in which mainly affects

business sentiments as well as both investors‟ and consumers‟ confidence-mostly in tourism

industry. Moreover, these instabilities also create negative impact on investment and the speed

of economic development; this is including the low velocity of money circulation within the

country too.

Economic

Nowadays, Thailand is facing with economic recession where the money also

depreciating from approximately 30 THB for 1 USD, now it is 35.84 THB for 1 USD. This has a

great impact on country economic in term of net export where there will be less of import and

will lead to greater demand for domestic goods. Therefore, this will raise the price of domestic

goods within the country, soon.

Social

In Thai society, people are now more health concerns as they are now paying attention

to health factors and seeking for clean foods. In which this affects Thais‟ consumption mindset

in term of behavior and decision in making purchase act. They are willing to pay higher for a

healthy and organic product/foods. Thais now prefer more organic and natural than before.

Also, Thai people habit shows the increasing of exercise in their daily lives.

WANJAI CAFÉ

15

Technology

Technology is the innovation that may affect the operations of the industry and the

market favourably and unfavourably. This also includes automation, research and development

and the amount of technological awareness that a market possesses. According to the Global

Country Study report by Naran LaLa College and Affililated University in 2013, Thailand started

to engage in information technology since 1991 with the purposes of strengthening science and

technology, supporting national development, and increasing industrial and agricultural

productivity.

Moreover, Thai people are now using internet approximately 32.3 hours per week. This

brings the fact that people is now integrating their lives with technology on daily basis. Where

nowadays technology has been a big part of people and has such a great impact towards our

living.

WANJAI CAFÉ

16

Micro Environmental Analysis using Michael E Porter’s Five Forces Theory

Bargaining power of supplier (high)

The supplier is important to the business because by serving original Thai desserts

required high quality ingredients for best taste and quality. The ingredients or raw materials are

very easily to be found in any market or hypermarkets. But it is difficult to find the high quality

ones as well. Desserts will be made from high quality and healthy ingredients in order to best

serve the quality of product. Some desserts will be ordered from other shops as a portion of the

menu.

Bargaining power of buyers (low-medium)

The customers who, demand for dessert has a very high bargaining power but for

specific Thai dessert café, is quite low. To be more specific, since the desserts will be made

from rich and high quality ingredients; therefore, the product will serve in a higher value than the

market. By adding the value to product and business itself, this lowered down the bargaining

power of buyers through the quality and atmosphere WanJai Café delivers. Nevertheless, there

are indirect competitors in the dessert industry within The Circle.

Threat of new entrant (medium)

This holds the same concept as above because the entry barrier for Thai dessert is very

low, yet not with physical café store atmosphere with high quality served dessert. In fact, most

of Thai dessert shops usually sell only dry snacks to pick up for to go, not for to stay and enjoy

the dessert like modern dessert café. Especially, with original and high quality Thai desserts are

hard to find in these days.

WANJAI CAFÉ

17

Threat of substitute product (high)

For desserts, customers usually have a very low switching cost. In term of desserts, it is

totally depending on tastes and preferences of customers. Even though WanJai Café serves

original and high quality Thai desserts, yet the easily substitute Thai desserts are always

available. The direct substitute product is Thai dessert itself that is not as high quality as WanJai

Café, but it can be found anywhere. The indirect substitute product is other dessert café that is

now very popular in Thailand, such as After You, Pancake Café, and few more.

Competitive Rivalry within an industry (high)

The competition is very high considering to both direct and indirect competitors. In

meaning, customers may have various bargaining power against the industry, but for sure they

have very low switching costs for this industry. In fact, Thai desserts are easily to find anywhere

throughout the country. Even with the unique value added; atmosphere and quality, still, there is

a very low switching cost for customers to change their decisions.

WANJAI CAFÉ

18

Industry Analysis SWOT

Strength

WanJai Café will gain the first mover advantage in term of location as first official Thai

dessert at The Circle. Even though there are Thai dessert shops in the market, in general, yet

this business is the newly introduced to the industry. In meaning, WanJai Café will serve

customers both quality of goods and distribution. To reinforce the premium positioning of the

brand all decorations will embrace the sense of Thai-being, in which this adds value to the

business. For atmosphere, so far, WanJai Café is consider to be the first Thai dessert shop

opening as a cafe where there are comfortable seats provided for customers to really relax and

stay to enjoy the goods and atmosphere. In comparison, most of Thai dessert shops in Thailand

are focusing on the transaction not relationship where customers make purchase and then

leave. Moreover, WanJai Café is also strengthening in term of originality and quality of the

goods both Thai desserts and Thai herbal drinks. With great marketing strategies, WanJai Café

has a very strong positioning and also a good marketing activities especially for communication.

Weakness

One of the downfalls of this business would be some of the products selling will be

retailed by the WanJai Café not produced by. In this case, if anything happens to those

business that WanJai Café outsource, there will be a great impact on the business right away.

Furthermore, Thai customers‟ perception affects the business a lot. To be more specific, Thais

usually perceive Thai desserts as something unhealthy and should-be-cheap. And this attitude

or the perception can cause losses to the company.

WANJAI CAFÉ

19

Opportunity

As the trend is coming where people are now embracing their own culture, WanJai Café

could capture this trend as an opportunity. And people are now more of health concern. By both

factors, WanJai Café can do strong branding and communicate to both Thai and non-Thai

customers about original Thai desserts that are not preserved or chemical-added are also

available. Plus, WanJai Café could make the best out of technology in term of communicating to

reflect new perception towards customers‟ mindset where Thai dessert is no longer an old

fashion anymore.

Threat

The very outstanding threat here is competitors in the market. Thai desserts are easily to

be found, regardless to the price and quality. It can be said that Thai dessert is everywhere,

while WanJai Café is also serving Thai desserts yet in a much higher quality in many ways.

However, even some other Thai dessert shops might sell in lower quality or cheaper price

gained benefits for being in the market before WanJai Café. In meaning, these competitors

already have customer base, customer loyalty, strong branding, and reputation.

Summary and Apply

Nonetheless, regard to the analysis for this business even though there are competitors

and weakness for the business but this is a great opportunity for WanJai Café to take advantage

of by selling what easily to find by adding value to it. In which will be discussed more in

marketing activities part. In addition, even competitors already entered the market longer than

WanJai Café, but with good marketing strategies it is possible to achieve the business

objectives.

WANJAI CAFÉ

20

Marketing Plan

Segmentation and Target Market

For segmentation, WanJai Café would first separate the market into “Thai dessert

lovers” and “Other dessert lovers”. Then WanJai Café would start to specify more in terms of

age, economic class and attitudes toward Cafe in general.

For age, WanJai Café would aim for people around 16-40 years old. Because people

among this ages mostly students and adults which both mostly have purchasing power and tend

to go outside more than other age groups. Apart from this, people in this age group also have

higher rate of visiting Cafe more than other groups.

For economic class, WanJai Café would be targeting on “Middle class” due to the fact

that customers need to have certain purchasing power to come into Cafe and purchase foods

and beverages. Another thing is that currently Cafe industry in Thailand is still not as crowded

as restaurants because unlike restaurants, Cafe‟s normally offers product that might deem

“unnecessary” by some people. Lots of people think that buying coffee or desserts a waste of

money. In which people in middle class would have enough money to do so. Therefore,

targeting this economic group is unavoidable.

Therefore, WanJai Café‟s main target market would be: “Thai dessert lovers within

the age between 16-40 whose have sufficient income”

WANJAI CAFÉ

21

User Personas

Alice is a 16 girl who is now staying in Thailand from Taiwan. She is now currently

studying at international school in Thailand just for a certain period due to her father‟s business.

Alice lives around Nonthaburi and Bangkok, she enjoys hanging out at the community mall

because she loves the sun here. Surprisingly, she loves Thai foods very much, both food and

dessert. However, she heard from her Thai friends that Thai desserts are not so good to her

health if they are in bad quality. Her Thai friends even told her about originality of Thai desserts

which makes her even more interested in to it. Alice is now seeking and looking for Thai

authentic dessert in contemporary serving where she could taste the originality without

concerning about unhealthy ingredients.

Ken, a 23 years of age who is now a green horn at Sakura Company at Ratchapruek. He

usually leaves the office around 17.30 and hang out at The Circle afterwards with workmates.

Ken is also a guy who likes to play sports and take care of himself. He is very self-concern

about health, nevertheless he is still a guy who favours desserts-especially Thai‟s. He always

avoids eating Thai desserts due to the reason of high-sugar added to the goods. But he will stop

by any good Thai dessert shops when he passed by. Unfortunately, the good Thai desserts

usually sell at high price in which he would not buy it as often as he wants to.

Ann, a 35 years of age who is a wife and a mother. Every weekends Ann and her family

will always come to The Circle. There are four of them, Ann herself with daughter, son, and her

husband. The children are still studying in primary school with the age of 7 and 9, who really get

excited with Kanom krok. She takes her kids with her husband for music lessons on weekends

for years. They usually done with the lessons and waiting around 2pm, after the lesson the

parents usually take the kids to have snacks or desserts before dinner. Ann usually takes her

kids to dessert shops around Ratchapruek because he has personal interests with dessert.

While Rat, her husband who is not a big fan of dessert but willing to go with family. Ann would

like to have her children try on Thai desserts because where she lives is hard to find a good

Thai dessert. But she is concerning it should not be too sweet and there is a place to sit in and

relax so she can look after her young children.

WANJAI CAFÉ

22

User Persona Summary

The user personas described the characteristics of most target market for WanJai Café,

in which it shows and reflects from the survey result as well. To be more specific, everyone both

Thai and foreigners do like Thai desserts. And the customers could be at any age within the

range of 16-40 years old as set as target market. However, this results mainly the customers

are women either end user or influencer. As people are now health concern but also paying

more interest to Thai culture, especially Thai desserts -Kanon kroke, the most voted Thai

dessert. With the user personas also represents that there are still both target market and

potential target market for WanJai Café at The Circle

WANJAI CAFÉ

23

Positioning

WanJai Café‟ positioned itself to be a premium Thai dessert cafe with reasonable price.

To be premium, of course WanJai Café‟ would not set the price too low or too high but in

consideration of “reasonable” in order to serve the target market of middle income customer.

Hence, customer who is in the age between 16 up to 40 with the middle class income would

definitely able to effort our products and services. To illustrate more, the sense of premium

would perceive from the decoration of the cafe‟, the services and the quality of food. However,

the customer can perceived the premium of the Cafe through our operations and services.

Another thing is that the brand should be known for mainly selling Thai dessert, not the place

where customers can sit and socialize like Starbucks. Thus, WanJai Café is more “product-

oriented” brand, rather than “place-oriented” brand.

Positioning Map

Premium Quality

Reasonable Price

WANJAI CAFÉ

24

Marketing Mix (7Ps)

Product

WanJai Café‟ is going to mainly offer product (desserts) that satisfy customer the most.

Each of the dish were created based upon contemporarily and authenticity of Thai dessert.

There have been some alteration or modification to some dishes, but it‟s only to done to help

recreating the perception to each of the dish, while the originality taste and flavours still remain.

The ingredients that WanJai Café have selected also a premium-graded, which this would help

the result dish to have more value and price-worthy. The inspiration of each dish mainly came

from the survey result, where we carefully select menus that have high popularity and start

making appropriate adjustment to them.

Apart from that, WanJai Café‟ also would provide Thai herbal beverages and Thai

coffee. This is due to the fact that WanJai Café is a cafe. And a cafe is a place where everyone

expected to order something to drink. WanJai Café have selected herbal drink because they do

suit well with the Thai-theme of the cafe and also these drinks are very appropriate for serving in

the cafe.

Price

Since WanJai Café‟ is going to be a premium Thai dessert café, the price of the products

going to be higher than the market price. However, normal Thai dessert price are not that high.

It usually less than 100 baht which this give the company chance to set high price. Apart from

that, the firm wants to be known as a “premium brand”, therefore setting high price would benefit

both the firm‟s profit and positioning. WanJai Café decided to use “marked-up pricing strategy”

which will take the overall cost of each menu then set the selling price to be 400% more than

the cost. Noting that the cost of WanJai Café‟s product are extremely low. (20-50 baht),

therefore by increasing the price by 400% will not end up in an unreasonable figure. Another

thing is that after we have added 400%, some figures are still have decimal places. So we

decided to round that figure up until it become more presentable numbers.

WANJAI CAFÉ

25

Café Product

Desserts

1. Mango with Sweetened Sticky Rice

WanJai Café‟ offers Mango with sweetened sticky rice

from the reason that according to the survey this menu is highly

recognized and famous among the respondents. WanJai Café‟ is

aiming this menu to be one of the highlight of the café. The dish

going to be serve in mango-shaped with a beautiful decoration.

The customer would be provided numerous choices of rice that

they prefer including sticky rice in white, green, purple and

yellow. Which these colors would be cooked naturally by using

pandan leaves Butterfly pea and Turmeric.

Ingredient, Cost and Price

Selling price THB 150

Sticky rice 200 grams THB6.00

Coconut milk 250 cc THB7.50

Mango 0.5 unit THB3.75

Others 1 unit THB2.00

Total cost THB19.25

+400% THB77.00

WANJAI CAFÉ

26

2. Rainbow Coconut Rice Cake (Kanom Krok)

WanJai Café‟ also put this menu to be one of the

highlights by providing a colorful Coconut Rice cake in a

way that no one ever done before. There would be 7 rice

cakes in one serving in which each of them will have each

color in the rainbow.


flour 200 grams THB7.00


Others 2 units THB4.00

Total cost THB20.99

400% THB83.96 Selling price THB 89

WANJAI CAFÉ

27

3. Bua loy

This dish going to be just like ordinary Bua Loy

dish, but WanJai Café‟s going to add some decoration

to it to create more value to this dish. These

decorations could include decorating the “bua-loy” itself

to look unique.


Flour 100 grams THB3.50


egg 1 unit THB3.00

others 2 units THB4.00

Total cost THB16.50


WANJAI CAFÉ

28

4. Kanom Bueng

This dish‟s going to be served in a plate which

will have two flavors including sweet and salty. These

two flavors tend to be most popular among Thai dessert

lovers. In one serving, there will be 6 pieces.



egg 1 unit THB3.00


Total cost THB21.50


WANJAI CAFÉ

29

5. Look Choop Fondue

This menu would adapt the regular Look Choop which is

one of the top highly recognize menu when think of Thai dessert.

This menu going to be served with a hot boiling chocolate fondue

in order to allow customer to experience Look Choop in a way that

they never done before.


Look choop 20 units THB20.00

Chocolate 250 grams THB10.00

Other 4 units THB8.00

Total cost THB38.00


WANJAI CAFÉ

30

6. Thai Sundae

This dish going to be an ice cream sundae made from Thai

dessert ingredients including Thai flavored ice cream (Coconut milk,

Thai milk tea, Pandan ,etc.), look choop, sweetened sticky rice,

coconut milk and Foythong.


Ice cream 3 Scoop THB16.05



Total cost THB33.05


WANJAI CAFÉ

31

7. Thai Banana split

WanJai Café‟ customer can select the flavor of

ice cream with a Thai sweetened banana. This dish

going to be similar to normal banana split dish, but the

customers will get more Thai taste from this dish. Since

it would be made from Thai ingredients.


Sweeten Banana 2 units THB10.00

Icecream 4 scoops THB3.00



Total cost THB42.40


WANJAI CAFÉ

32

8. Tubtim Krob

Basically, this going to be original Tubtim Krob. The main

attraction of this dish going to be the way it‟s presenting. The

Tubtim going to be served separately with the coconut milk,

customers going to have to mix them by themselves. It will also

be contained in a beautiful glass.




other 3 units THB6.00

Total cost 400%

THB13.75 THB55


WANJAI CAFÉ

33

9. Golden Triangle

This dish going to be combination of Foy Thong,

Thong Yib and Thong Yod serving together in a basket.

This would be a very enjoyable dish to customers who

love these kind of desserts.


egg 15 units THB45.00

other 10 units THB20.00

Total cost THB65.00


WANJAI CAFÉ

34

Beverages

1. Herbal Beverages


Herb 50 grams THB1.50

Sugar 120 grams THB3.00

Water 170 cc

other 1 unit THB2.00

Total cost THB6.50

400% Add up THB26.00 Selling price THB 30

WANJAI CAFÉ

35

2. Thai Black Tea


Tea powder 30 grams THB7.20

water 140 cc

sugar 45 grams THB1.13

others 1 unit THB2.00

Total cost THB10.33


WANJAI CAFÉ

36

3. Thai Milk Tea



Water 120 cc

sweetened condensed milk

45 grams THB2.70



Total cost THB14.65

400% Add up THB58.60


WANJAI CAFÉ

37

4. Thai Black Coffee


Grounded coffee bean 30 grams THB5.40

Water 140 cc


Others 1 unit THB2.00

Total cost THB8.53


WANJAI CAFÉ

38

5. Thai Latte


Grounded coffee bean 30 grams THB5.40

Water 120 cc


sweetened condensed milk 45 grams THB2.70


Total cost THB12.85


WANJAI CAFÉ

39

6. Iced Milk Chocolate Malt


Ovaltine powder 30 grams THB4.50



water 120 cc


Total cost THB11.05


WANJAI CAFÉ

40

7. Pinky Milk


Hale's blueboy red syrup 30 grams THB1.50



water 120 cc

other 1 unit THB2.00

Total cost THB4.78

THB19.10 Selling price THB 35

WANJAI CAFÉ

41

8. Floats



Water 120 mil




Icecream 1 scoop THB5.35

Total cost THB20.00


WANJAI CAFÉ

42

Place

The Circle Ratchaphruek

Address: 39 Ratchaphruek Rd, Taling Chan, Bangkok 10170.

The reason that WanJai Café choose to set a cafe in this exact location is due to a few

factors including the flow of people, popularity of the location, and many events being held at

The Circle.

The Circle is locating at the Ratchapruek Road, Bangkok. Where it is a community mall

for people to both stop by and shop. It is considered as one of the creative community malls in

Bangkok as well. The customers are mostly Thais, but some foreigners do stop by too. Here at

The Circle, most of the customers are middle income people and above in which this affirm the

company that customers have the sufficient purchasing power in order to consume the goods at

WanJai Café.

The flow of people passing by this area is highly dense during lunch time and after

working hours as well as after school hours. On weekend it is always crowded with people

throughout day and night. Majority of the people that visits The Circle are Thais. Those who go

to The Circle are most likely to go buy and eat foods/desserts, which means that there is

significant potential for WanJai Café to be one of the choices. Also those who visits this

community mall will be able to afford the price range of WanJai Café‟s products.

The Circle is considered to be a pretty well-known community mall in ratchapruek and

surroundings area. Even for those who live right in the center of Bangkok still have heard or

know about the place. Since most visitors are Thai, this location would be the reason why this

place would be a great-profitable choice to start WanJai Café.

There are many events being held at this location for example the major one is

superbike gathering and supercars show. Most of the events attracts people who have more

than an average income to high income, in which they would be our potential customers.

These three significant factors are the reason why WanJai Café considered The Circle to

be an optimal location for gaining a lot of profits with a medium cost of land.

The Circle Ratchapruek is divided into three different zones, and pets are allowed. The

Circle stores are divided into three sizes, regardless to the zones. The sizes are 9, 12, 49, and

60SQM the price for rental of 9 and 12 SQM are around 30,500-30,700 THB regard to the

location and zone. While the price of 49 SQM stores is 1,600 THB per each metre. Overall

prices mentioned are excluding the VAT and other charges from the mall. But 60SQM is net

WANJAI CAFÉ

43

renting for 150,000 THB per month. So far, the most optimum and suitable size of the store

would be 49 SQM in order to best utilize and serve customers. As WanJai Café is now

comforting customers with comfortable atmosphere and decorations, by not too little space

would give customers the relaxation. Moreover, 60 SQM is not too big for the cafe once

included the kitchen and other necessary spaces.

WANJAI CAFÉ

44

Physical evidence

Theme and Style

For the style and interior decoration of Wanjai cafe‟, the store would be decorated in a

Thai contemporary style. To be more specific it would say that Wanjai cafe‟ is using the colonial

style of architecture to set its position. The colonial style of architecture starts to appear in

Thailand since during the reign of the king Chulalongkorn or the king Rama V. This architecture

style would allow visitor to feel more contemporary as the core value of Wanjai cafe because it

is a starting of combination on architecture style between original Thai and western style. The

theme of the store would have stated to be vibrant, warmth and welcoming for customers who

visit the shop. The color that mainly applied to the store would based on white, beige and other

colors that are bright and in kind of pastel color

Furniture

As Wanjai Cafe position itself to be a premium cafe‟ therefore the furniture need to have

certain level of prestige and premium touch to it. The main goal of selecting furniture is to

confirm with customer we are indeed a premium brand. The tables would be in square shape

because it is more flexible to arrange up to the amount of visitor at that time. There will be an

expecting maximum capacity of 40 people. Additionally, there would be 5 of small tables suited

for 2 customers. There would be 5 of big tables that suit for 4 customers. Lastly, another 10

seats would arranged in a counter bar style.

Tableware

For tableware, the plates and bowls is going to be in the “Benjarong” style, which is the

Thai authentic decoration that contain the premium essence to it. The mainly eating utensils will

be regular silver forks and spoons. The glasses that served in Wanjai cafe‟ is going to be a high

quality glasses for the reason of the ease of cleaning and can last longer. On every table,

instead of regular tissue paper, Wanjai cafe‟ tend to use napkin to allow the cafe itself to have a

strong high position.

WANJAI CAFÉ

45

Cafe Layout

WANJAI CAFÉ

46

Uniform

The uniform that Wanjai Cafe‟s waiter and waitress are going to wear is the old Thai

style fashion. The main focus would be the fashion in the era of king Rama VI reign. The

waitress would wear a bright color shirt with no sleeve and decorated with the Thai style lace.

On the other hand, the waiters‟ uniform would be Thai-men skirt in weaved with Thai fabric.

WANJAI CAFÉ

47

Promotion

Social Media

As WanJai Café‟ is newly open Thai dessert café within the industry, the very first

promotion campaign is to gain as much awareness as it can. Wanjai Café is aiming to take

advantages on social medias such as Facebook and Instagram. If customers post something

relating to the café, WanJai Café‟ would grant them free herbal beverages. This would help

encouraging the brand to go viral through social media. Also the cost to implement this is very

minimal, since social media are mostly free to use. Another thing is that the firm could also use

social media to check the feedback customers have toward the cafe. Websites like Facebook or

Wongnai could easily tell how people think of the place through their scoring system.

Free Trial

WanJai Café would offer customer to have a free trial on certain product. For example,

Lookchoop Fondue. This would not only give customers sense of how the product taste like, it

will also help encourage them to become aware of that specific product. Also WanJai Café is a

very new cafe, therefore by doing this it could help gaining the brand awareness and interest in

very little cost.

Seasonal Products

From times to times, WanJai Café going to offer special seasonal products. This should

help giving the menu list a refreshment. Seasonal products that could be offer include

Mooncake during Moon party, Krathong Thong or Golden Krathong during Loy Krathong period

and numerous Durian dish during summer time.

Rewarding Activities

WanJai Café could host numerous activities that could help promote the brand. For

example, “hashtag or check-in game” in which if any customers hashtag or check-in online

about WanJai Café, they would get free beverages. Another activity is “lucky draw”, where the

cafe could draw up the table number and the table whose number got draw will get free Mango

with Sticky Rice. These activities will surely help promote customer loyalty because it‟s showing

that the cafe is caring about customers.

WANJAI CAFÉ

48

People

● Employees

○ Training

■ Since Wanjai Cafe is positioning itself in a premium level, employees who

prepare and cook the desserts require to be train by experts. Two

shareholders and a manager will be train and gain specialties concerning

Thai desserts by expert chef at Bangkok Thai Cooking Academy. The

manager and shareholders will be train for 4 hours a day for five days - in

which under 4 hours, the chef(s) will be able to cover 5 recipes. The

training will be focus only on the recipes and how to on Thai desserts that

we will serve at our cafe. After the whole courses are finish, manager and

shareholders will transfer the skills and knowledge to the employees who

work at Wanjai Cafe.

○ Hiring

■ Our Cafe hires people who officially graduated Grade 12 in Thailand.

They are required to have some cooking skills and background.

■ For managers, they are required at least a bachelor degree and some

cooking skills in order to manage the café.

● Management

○ Our management systems is highly enforce and structure by the organizational

structure. The managers follow the organization‟s vision and mission and they

are monitor and receive additional orders by the shareholders. Managers monitor

the flow of the business from the supplies until the services and products are

received by consumers - also managers accept and take feedback from

consumers as a consideration and improvement.

● Culture

○ WanJai Cafe‟s culture is highly warmth and welcoming. This means that the cafe

has a friendly and respectable services that lies under Thai traditional

atmosphere combined with contemporary dishes - without eliminating the

originality of the Thai culture and foods entirely. This makes consumers in this

generation feel more suited in this kind of culture and atmosphere. The

decoration of the cafe will express some Thai traditional feelings as well as

contemporary concept.

WANJAI CAFÉ

49

● Customer service

○ Our cafe trained employees and managers to serve consumers with respect and

friendly approach to align with the high quality products and atmosphere. The

workers are order to have high patience and use words wisely. Also, we take

care of the customers from the moment they entered the shop until they have exit

the cafe - even if they called or contact us they are still treated the same. Wanjai

Cafe does not mix orders and we rely on first come first serve principle.

Process

Basically, WanJai Café‟s going to operate like regular café. Where the employees have to

come to café one hour earlier than the opening time. (Since the café opens at 11 AM, therefore

the employees have to come at 10 AM) This is because they have to do all the preparation and

making sure that the café is ready for service. They also have to leave one hour after the

closing hour (In this case 11 PM) because they have to do the entire cleanup. Another thing is

that WanJai Café has is the homemade coconut milk. WanJai Café will buy a coconut milk

machine. Which this could help the café to have more value in term of uniqueness and quality.

WANJAI CAFÉ

50

Management Planning

Wanjai Cafe‟s Organizational Structure

Organizational structure

Organizational structure of Wanjai cafe is designed to be simple, compact and flexible to

suit the nature of business perfectly. The size of business and the complexity of each job

function require no complex structure. Trying to implement large and sophisticate structure will

only hurt the startup business. Thai cafe, thus, focus more on the efficiency, effectiveness and

flexibility of the structure.

WANJAI CAFÉ

51

Role of each position

Manager Manager to align with the company vision and goals. This also means that these two

function of the business report directly to the manager. The manager follows the orders and

suggestions of the shareholders of this cafe and monitor the tasks and total sales of the

company.There are 2 managers who switch their schedule equally throughout the month.

Another important function of manager is to collaborate with shareholder to create attractive

promotion idea to increase sale revenue and number of customer. Manager must to be keen on

acknowledging customer need or what is the main concern of them in order to understand and

create a good strategic promotion that can draw customer attention. Managers must have

higher academic knowledge, they are, as a result, also responsible for business financial

activity. This task will include checking accounting activity, cost control and balance sheet

analysis.

Back-house employees

Back-house employees are mainly responsible for cooking the menus. These groups of

workers will cook accordingly to the standardized recipe written by manager. Even though these

group of worker follow the recipe exactly, but the task is not easy like it seems. The workers

must know well how to operate measuring instrument and cooking machine. Teamwork and

discipline are crucial for the workers because on one can work alone under time pressure and

super dynamic environment. The worker must agree on each other which parts of the work each

of them will do. Being discipline means that they have follow the process strictly and make it on

time. Another task besides cooking will be anything that related to back-house such as cleaning

cooking room or checking ingredient inventory.

Front-house employees

The front-house employees, which means that they are responsible for serving,

preparing simple dessert, front-store cleaner, and operating as a cashier at WanJai Café. Front-

house employee can represent brand image and service mind the best because these workers,

of course, get in contact with customer the most. The worker, thus, are expected to create good

communication with customer whether it is decent language or positive body language.

WANJAI CAFÉ

52

WANJAI CAFÉ

53

Operational Planning

Business Model

Form of Business

WanJai Café wants to be a privately owned company, meaning that all the risk and costs

will be accounted for just the owners. Our company will be held by 5 shareholders in which they

are all responsible for the decision that is being and will be made for the longterm and shortterm

strategic management for the company.

WANJAI CAFÉ

54

Production

Since WanJai Café focuses on high quality products and cleanliness, we will get

approval from Food and Drug Administration and set the requirements to meet its safety and

cleanliness standards. The production process of the Thai desserts will be done in the back

kitchen of the cafe shop at The Circle, and the beverages will be mix behind the counter.

Production Process

Suppliers and food ingredients

Ingredients needed for making desserts is not too hard to be found. Basically, any

suppliers who can keep up product standard and comply to elementary business obligation like

being punctuate can potentially be a supplier for WanJai Cafe. It is, of course, better to

purchase ingredients directly from farmer without intermediaries, but this cannot be achieved

easily since it requires strong financial power to create buying/bargaining power. Problem might

arise in finding herbal raw material, especially the rare one or the one that is not always

available on the market. Total cost of getting these raw materials will be taken into account to

calculate profitability. If the cost for specific herb is so high that is not worth producing, then that

specific menu might be cut out or made as a seasonal drink. WanJai Cafe would like to use

organic Ingredient, but not for all of menus, because adding more cost might endanger business

especially when it is relatively new and has never been verified as lucrative or profitable in large

scale. Purchasing raw material from suppliers who preserve traditional way of farming is one of

philanthropic activity is what WanJai Cafe aim to pursue. This is because the action will give

opportunity to those traditional farmers and, at the same time, help reducing the cost of material

(because intermediaries is avoided). WanJai Café will sign a contract with the nearest farmers

(mango/coconut) in order for them to deliver the goods to our cafe.

WANJAI CAFÉ

55

Storage and inventory system

The system will be similar to normal restaurant or café, that is FIFO (First in First out),

stock checking and so on. WanJai Cafe, however want to implement additional cost reduction

activity aiming at minimizing inventory waste and matching between inventory and output

produced. Statistical data such as ordering frequency of each menu will be collected weekly to

find the proper amount of inventory storage that match with the order. The method of gathering

information can be various, but the easiest will be manually counting from payment bill. Back-

house order and cleanliness are essential to product quality. Employees are required to make

sure that storage room are clean and arranged in good order. Expiration date information must

be attached to ingredient package, if not, it should be kept in some place where everyone can

see.

Producing process and operation

Each menu will be made when customer order. No left foods will be keep to be served

later. Automated cooking machine will be used to speed up cooking process as long as it does

not significantly change food characteristics such as texture, color and odor. The quality in all

aspects of each menu will be randomly tested by regulator to make sure quality is consistent.

Cooking room must be clearly organized. There are a specific place at which cooking instrument

(knife or cutting tool) should be kept. Drop off point and garbage area will be organized in the

same way. Each employee will share the work and assign which task belongs to whom. Dessert

portion being served in WanJai Cafe might be relatively bigger since customers come here to

specifically enjoy it without any foods. Each menu will be combined with other menu to create a

special set or theme. By grouping each menu into a set, customer should get better taste and,

thus, boost sale revenue. After production is done, the product will be brought to customer table.

WANJAI CAFÉ

56

Operational staff

There will be two groups of operational staff take care of back-house and front-house

respectively. Back-house employees take care of anything in cooking and storage room. They

will be train by our manager in which the manager including two shareholders will be send to

train with expert chefs. The training will be at a reputable cooking school in Thailand namely

Bangkok Thai Cooking Academy. Those task will be checking inventory, cooking and maintain

order and cleanliness in back-house. Front-house tasks will be receiving order and serving,

cleaning, greeting and anything regarding to customer convenience.

WANJAI CAFÉ

57

Value Proposition

It might not be clear about what is expectation of customer on Thai dessert café,

because the café is relatively less popular (comparing to other type of cafe) and has never been

incorporated into people lifestyle. In the same way, Thai dessert café business is mostly

appeared in a form of street restaurant and has never become visible in large scale. Anything

that is not well recognized by the majority is, of course, hard to be effectively observed. Thai

dessert café is not the exception. These aforementioned issues might make strategic planning

and value proposing become confusing or unclear. However, it is possible to some extent to

estimate and predict customer expectation or reaction by inferring an information from similar

business, that is coffee café. To speak in short, any strategic action or value proposition that

works well in coffee café business can be potentially be implemented effectively in dessert café.

Good café might excel over the others because of qualities such as food taste, cleanliness and

so on, but great restaurant like WanJai Cafe excels because of its total value proposition.

3 components of WanJai Cafe’s value proposition

1. Product

a. Uniqueness

The distinctive taste of Thai desserts, accompanied with delightful color,

appearance and smell, contribute to the uniqueness and specialty. This,

however, implies that Thai dessert requires sophisticate skill of the maker.

Not many dessert café can achieve that high standard and cannot as, a

result, fulfil customer passion on Thai dessert. WanJai Cafe aims to be

the only one that has a capability to render the best Thai desserts to the

enthusiast and become the first place in customer‟s mind when they think

about dessert café.

b. Premium ingredient

To create great product, raw material or ingredient must also be a

premium one. Not only one specific production stage, but every one starting from

collecting ingredients accounts for creating high quality product.

c. Variety

WanJai Cafe serves a combination of dessert and allows customization.

Menu that comes in form of combination or combo set intensifies joyful

experience of eating dessert that can never be found in any other street or kiosk

WANJAI CAFÉ

58

dessert shop. Wide range of customer preferences are satisfied better

because of customization allowed by WanJai Cafe. This in turn contributes even

more uniqueness to the café.

2. Atmosphere

a. Interior design

WanJai Cafe will be decorated in old and contemporary Thai style. By doing

this, customers are expected to get more sense of Thainess from the café.

b. Technological convenience

Free WIFI and free charging will be provided to customer. Even though this

might mean more expense to the business, but the estimated benefits , that is

customer retention and etc, will be worth it.

3. Customer relationship

a. Customer intimacy

Employees treats customer with care and respect. To show customers

that WanJai Cafe do have that mindset, the intention of all employees must

be perceived by customer. Not only good communication with customer

employees have, but every little things like eye contact, body language and

so on are one of those things employees must care. Something that is not

expected, like remembering customer name, can increase good relationship

between customer and the café.

According to Kasikorn Research Institute, the unrecovered global and domestic

economy has limited the growth of restaurant business and forces entrepreneurs to use more

discounting promotion to induce more customer and revenue. This, as a result, drive up the total

of the business. The estimated growth rate of restaurant and cafe industry should be around

2.9% - 5.9% annually (reduced from 2014 number, 4. %-6.8%). However, because Wanjai café

is in start-up stage and, using exactly the projected number will not be proper as it might

overestimate the future revenue. The more conservative number of revenue growth rate, thus, is

set at 2% annually.

WANJAI CAFÉ

59

The number of customer is estimated from the full capacity (40 seats) of the

restaurant and average time customer spent in the cafe ( 60 minutes). Total operating hours of

the café is 660 minutes. The unadjusted number of customer per day is, as a result, 440

persons. The adjustment on this number will be 50% reduction in the number. The finalized

number is 220 customer per day.

WANJAI CAFÉ

60

Cost table and average product price

From our subjective estimation, the salary and wage rate offered to employee is a little

higher than standard rate provided by other restaurant and café. Reason behind this is that

Wanjai café values human power as one of its core competitiveness and thus must be

compensated well for great productivity generated from these employee. The product of doing

this is that the café will have more chance to select the best employee that suit the business

and working environment.

WANJAI CAFÉ

61

Start-up cost

Capital structure

WANJAI CAFÉ

62

sale rev unit variable cost profit margin fixed cost total cost Net gain

80 12699.53 3174.88 9524.65 14,076.67 17,251.55 -4552.02100 15874.42 3968.60 11905.81 14,076.67 18,045.27 -2170.85120 19049.30 4762.33 14286.98 14,076.67 18,838.99 210.31140 22224.18 5556.05 16668.14 14,076.67 19,632.71 2591.47160 25399.07 6349.77 19049.30 14,076.67 20,426.43 4972.63180 28573.95 7143.49 21430.46 14,076.67 21,220.15 7353.80200 31748.83 7937.21 23811.63 14,076.67 22,013.88 9734.96220 34923.72 8730.93 26192.79 14,076.67 22,807.60 12116.12240 38098.60 9524.65 28573.95 14,076.67 23,601.32 14497.28260 41273.48 10318.37 30955.11 14,076.67 24,395.04 16878.45280 44448.37 11112.09 33336.28 14,076.67 25,188.76 19259.61

break even 118.2335659 unit/day3547.006977 unit/month

Financial return and payback period

Break even analysis

Scenarios Sale growth NPV IRR Payback period (year)

Best case 4% 50,247,613.91฿ 130% 1.19

Base case 2% 42,121,179.05฿ 120% 1.23

Worst case 1% 38,325,203.29฿ 115% 1.25

WANJAI CAFÉ

63

Cash Flow Statement 2016 2017 2018 2019 2020Begining Balance 193,750.00 -2,271,715.33 1,326,993.71 5,113,460.10 9,096,477.54

net income 3,342,376.19 3,699,083.75 3,889,214.27 4,088,186.39 4,245,683.71adjusted Depreciation expense 17,200.00 17,200.00 17,200.00 17,200.00 17,200.00change in AR 2,588,907.34- 52,255.43- 53,310.17- 54,386.20- 55,483.95- Change in AP 647,226.84 13,063.86 13,327.54 13,596.55 13,870.99 Inventory 3,883,361.01- 78,383.14- 79,965.25- 81,579.30- 83,225.93- operating activity -2,465,465.33 3,598,709.04 3,786,466.39 3,983,017.44 4,138,044.82

capex 0.00 0.00 0.00 0.00 0.00Investing Activity 0.00 0.00 0.00 0.00 0.00

Loan Payments ฿0.00 ฿0.00 ฿0.00 ฿0.00 ฿0.00Financial Activity 0.00 0.00 0.00 0.00 0.00

net cash flow -2,465,465.33 3,598,709.04 3,786,466.39 3,983,017.44 4,138,044.82

ending balance 2,271,715.33-฿ 1,326,993.71฿ 5,113,460.10฿ 9,096,477.54฿ 13,234,522.36฿

Yearly Forecast

Income statement and cash flow (shortened version)

WANJAI CAFÉ

64

Income StatementJan

FebMar

AprMay

JunJul

AugSep

OctNov

DecRevenueDessert

774,224.00775,514.37

776,806.90778,101.58

779,398.41780,697.41

781,998.57783,301.90

784,607.41785,915.08

787,224.94788,536.98

Beverages273,487.50

273,943.31274,399.88

274,857.22275,315.31

275,774.17276,233.80

276,694.19277,155.34

277,617.27278,079.96

278,543.43Total sales revenue

1,047,711.501,049,457.69

1,051,206.781,052,958.79

1,054,713.721,056,471.58

1,058,232.371,059,996.09

1,061,762.751,063,532.35

1,065,304.911,067,080.41

Cost of good soldTotal COGS

261,927.88262,364.42

262,801.70263,239.70

263,678.43264,117.90

264,558.09264,999.02

265,440.69265,883.09

266,326.23266,770.10

Gross Profit785,783.63

787,093.26788,405.09

789,719.09791,035.29

792,353.69793,674.28

794,997.07796,322.06

797,649.26798,978.68

800,310.31

SG&ATotal SG&A

422,862.69422,967.46

423,072.41423,177.53

423,282.82423,388.29

423,493.94423,599.77

423,705.76423,811.94

423,918.29424,024.82

EBITDA362,920.94

364,125.80365,332.68

366,541.57367,752.47

368,965.39370,180.33

371,397.30372,616.30

373,837.32375,060.39

376,285.49depre

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

EBIT361,487.60

362,692.47363,899.35

365,108.23366,319.14

367,532.06368,747.00

369,963.97371,182.96

372,403.99373,627.05

374,852.15Interest expense

21,450.0021,193.42

20,934.1020,671.99

20,407.0720,139.31

19,868.6719,595.14

19,318.6719,039.23

18,756.8018,471.34

Tax rate (20%)

Net Profit/(Loss)272,030.08

273,199.24274,372.20

275,549.00276,729.66

277,914.20279,102.66

280,295.06281,491.44

282,691.80283,896.20

285,104.65

FCF-180,846.76

363,340.02364,545.59

365,753.16366,962.75

368,174.36369,387.98

370,603.63371,821.30

373,041.00374,262.74

375,486.51

Monthly Forecast

Cash Flow Statement1

23

45

67

89

1011

12Begining Balance

193,750.00฿

4,256.76-฿

269,590.03฿

544,608.47฿

820,802.39฿

1,098,175.66฿

1,376,732.16฿

1,656,475.80฿

1,937,410.52฿

2,219,540.30฿

2,502,869.11฿

2,787,401.00฿

net income272,030.08

273,199.24274,372.20

275,549.00276,729.66

277,914.20279,102.66

280,295.06281,491.44

282,691.80283,896.20

285,104.65adjusted Depreciation expense

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

1,433.331,433.33

change in AR209,542.30

- 349.24

- 349.82

- 350.40

- 350.99

- 351.57

- 352.16

- 352.74

- 353.33

- 353.92

- 354.51

- 355.10

- Change in AP

52,385.58

87.31

87.45

87.60

87.75

87.89

88.04

88.19

88.33

88.48

88.63

88.78

Inventory314,313.45

- 523.86

- 524.73

- 525.60

- 526.48

- 527.36

- 528.24

- 529.12

- 530.00

- 530.88

- 531.77

- 532.65

- operating activity

-198,006.76273,846.79

275,018.44276,193.93

277,373.27278,556.50

279,743.64280,934.72

282,129.77283,328.82

284,531.88285,739.00

capex0.00

0.000.00

0.000.00

0.000.00

0.000.00

0.000.00

0.00Investing Activity

0.000.00

0.000.00

0.000.00

0.000.00

0.000.00

0.000.00

Loan Payments฿0.00

฿0.00฿0.00

฿0.00฿0.00

฿0.00฿0.00

฿0.00฿0.00

฿0.00฿0.00

฿0.00Financial Activity

0.000.00

0.000.00

0.000.00

0.000.00

0.000.00

0.000.00

net cash flow-198,006.76

273,846.79275,018.44

276,193.93277,373.27

278,556.50279,743.64

280,934.72282,129.77

283,328.82284,531.88

285,739.00

ending balance4,256.76

-฿ 269,590.03

฿ 544,608.47

฿ 820,802.39

฿ 1,098,175.66

฿ 1,376,732.16

฿ 1,656,475.80

฿ 1,937,410.52

฿ 2,219,540.30

฿ 2,502,869.11

฿ 2,787,401.00

฿ 3,073,140.00

฿

Monthly forecast

WANJAI CAFÉ

65

Long term plan The long term objective WnaJai Café aims to achieve within 5 years is to open up more

branches around Bangkok area. But before that, WanJai Café will earn certificates and

guarantees from well-known gourmets in order to certify the quality and tasty of WanJai Café.

This also includes raising the recognitions and recommendations from well-known gourmets as

well. Moreover, WanJai Café in the next five year will not only keep up with standards yet also

improve from where WanJai Café is at the moment.

WANJAI CAFÉ

66

References

“อตุสาหกรรมผลติขนมและของฝากในภาคกลาง”. (n.d.). Retrieved from URL http://communityserviceindustry.blogspot.com/2013/10/blog-post_27.html

“Youth opinions of the image of Thai dessert in Thailand”. (n.d.). Retrieved from URL

http://www.culturalapproach.siam.edu/images/magazine/w15ch27/k5.pdf “Pestel analysis and study of various sectors of Thailand”. (2013, June). Retrieved from URL

http://www.gtu.ac.in/ABP/GCSR%20PDF%202013/799%20Thailand%20-%2011-.pdf “เอท็ดา้เผยพฤตกิรรมคนไทย”. (2014, August 7). Retrieved from URL

http://thaipublica.org/2014/08/etda-thailand-internet-user-profile-2014/ Lau C. (2015, January 15). Thai desserts you didn‟t know it exist. Retrieved from URL

http://www.foodrepublic.com/2015/01/15/7-thai-desserts-you-didnt-know-existed/ “Thai dessert museum”. (2015, June 28). Retrieved from URL

https://chayadesserts.wordpress.com/ Aradmin. (2012, September 17). Thai dessert. Retrieved from URL http://www.asian-

recipe.com/thailand/thai-desserts.html Wiens M. (2010, September 2). Thai desserts (kanom wanThai): the ultimate Thailand sweets

guide. Retrieved from URL http://migrationology.com/2010/09/thai-desserts-khanom-wan-thai-the-ultimate-thailand-sweets-guide/

Muneebangkerd J. (2009). Behaviour on Thai consumption. Retrieved from URL

http://kb.psu.ac.th/psukb/bitstream/2010/8342/1/309355.pdf “Purchasing behaviour of Thai local dessert for consumer”. (2013). Retrieved from URL

http://www.ipedr.com/vol59/016-ICEMM2013-P00025.pdf “A study of food consumption in Thailand”. (1996). Retrieved from URL

http://www.uvic.ca/research/centres/capi/assets/docs/Walker_Food_Consumption.pdf “Food consumption of Thai people”. (n.d.). Retrieved from URL http://consumption.acfs.go.th/index.php?lang=eng

http://communityserviceindustry.blogspot.com/2013/10/blog-post_27.html

http://www.culturalapproach.siam.edu/images/magazine/w15ch27/k5.pdf

http://www.gtu.ac.in/ABP/GCSR%20PDF%202013/799%20Thailand%20-%2011-.pdf

http://thaipublica.org/2014/08/etda-thailand-internet-user-profile-2014/

http://www.foodrepublic.com/2015/01/15/7-thai-desserts-you-didnt-know-existed/

https://chayadesserts.wordpress.com/

http://www.asian-recipe.com/thailand/thai-desserts.html

http://www.asian-recipe.com/thailand/thai-desserts.html

http://migrationology.com/2010/09/thai-desserts-khanom-wan-thai-the-ultimate-thailand-sweets-guide/

http://migrationology.com/2010/09/thai-desserts-khanom-wan-thai-the-ultimate-thailand-sweets-guide/

http://kb.psu.ac.th/psukb/bitstream/2010/8342/1/309355.pdf

http://www.ipedr.com/vol59/016-ICEMM2013-P00025.pdf

http://www.uvic.ca/research/centres/capi/assets/docs/Walker_Food_Consumption.pdf

http://consumption.acfs.go.th/index.php?lang=eng

WANJAI CAFÉ

67

Questionnaire S1. Do you like dessert?

1. Yes 2. No S2. Do you like Thai dessert?

1. Yes 2. No S3. Do you visit dessert shop/cafe?

1. Yes 2. No Q1.How often do you consumer dessert?

1. more than 4 times a week 2. more than once a week 3. once a week 4. once a month 5. less than once a month 6. less than once in 3 months

Q2. How often do you consumer Thai dessert?


Q3. How often do you visit dessert cafe?


Q4. What is the main purpose of visiting dessert cafe?

1. to consume products 2. to use the space for socialisation (eg. meeting with friends) 3. other: _______________________________

Q5. Where do you usually go? ____________________________________________________

WANJAI CAFÉ

68

Q6. Please RATE the following factors on your concern and expectation towards dessert cafe?

Factors Not Important at all

Somewhat Important

No Effects on my decision

Important

Very Important

1. Quality 1 2 3 4 5

2. Variety 1 2 3 4 5

3. Atmosphere

1 2 3 4 5

4. Decoration 1 2 3 4 5

5. Price 1 2 3 4 5

6.Cleanliness 1 2 3 4 5

7. Location 1 2 3 4 5

Q7. How many people do you take to dessert cafe with you?

1. none 2. 1 3. 2 4. 3 5. 4 6. 5 or more

Q8. Who do you usually do to dessert cafe with?

1. no one 2. friends 3. girlfriend/boyfriend 4. family 5. other: __________________________________

Q9. What are the first 3 Thai desserts that come up to your mind? __________________________________________________ Q10. What are you favorite Thai dessert? ___________________________________________________ Q11. What are the best 3 words that describe your perception towards Thai dessert? ___________________________________________________

WANJAI CAFÉ

69

Q12. Which of these Thai desserts would you be interested to consume? 1. kanom krok 2. luk chub 3. woon bai toey 4. bua loy 5. coconut ice cream 6. Thai mango with sticky rice 7. thongyip, thongyod, fhoithong 8. kanom chun 9. jamongut 10. kanom koh-kathi 11. bulandunmek

Q13. Have you ever been to “The Circle Ratchapruek”?

1. Yes 2. No

Q14. How often do you visit The Circle?


Q15. Why do you visit The Circle?

1. using it as a meeting place 2. to eat 3. to shop 4. to hang out 5. other: ____________________________________

Q16. If there is a new original Thai dessert cafe opens at The Circle, will you visit? Why? _________________________________________ Q17. Which one do you prefer?

1. consume fresh-made Thai desserts 2. consumer already-made Thai desserts 3. buy take-home desserts 4. other: _____________________________________

WANJAI CAFÉ

70

D1. Name: _______________________________________ D2. Gender

1. male 2. female

D3. Nationality: ____________________________________ D4. How old are you?

1. less than 15 2. 16-25 years old 3. 26-40 years old 4. 41-55 years old 5. 56 and above

D5. What is your income range?

1. less than 10,000 THB 2. 10,001-10,500 THB 3. 10,501-20,000 THB 4. 20,001-30,000 THB 5. 30,001 or more

D6. Email address: _________________________________ D7. Phone number (optional): _________________________

WANJAI CAFÉ

71

Survey Summary:

Documents

MUIC Directed Research Report