Section 1 Seat 4:Paper Box Limited Partnership

7/29/2019 Section 1 Seat 4:Paper Box Limited Partnership

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Project Feasibility Study and Evaluation

Group Member

5331203030 Nattapong Somdee

5331203033 Tanthita Sukhopala

5331203064 Paranee Sakthanachanon

5331203072 Phornchai Teerasukprasarn

5331203099 Ratchanan Chawsathapornpong

5331203113 Vilialuk Radchakid

5331203123 Siwakorn Kerdsiri

5331203149 Ittipon Niraphai

Business Administration

School of Management

Mae Fah Luang University


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Executive Summary

Product Box Limited Partnership is the limited partnership for sale the product ofpaper box especially post paper box. The main customer of our limited partnership is fromthe internet; sale in the internet, use e-commerce system and have website of the limited

partnership for the customer can contact and buy the product. The competitor of our limitedpartnership is our company that also selling in the internet but sales promotion of us is canincrease the market shared because we use the standard price but have many promotion andafter sale service more than other company.

The objective of business plan is to show the information about our product,investment cost, and value of profit will be receive from investment; calculate the financial toshow that this limited partnership can make the profit.

About the strategy that our limited partnership used in the business for achieve thegoal is from standard marketing. Price of product is high cost so our company cannotdecrease price more than other company but we used standard price; is from average price ofthe product in the market. In the part of place our company sale in the internet by usedelectronic commerce to facilitate for the customer they come from another province can orderthe product. Promotion of our company is 1.Free delivery in area 50 kilometer from thecompany and delivery to another province by used the way that customer determine 2.Thecelebration card will be send to the all customer in any festival and free T-shirt to allcustomer in New Year festival 3.Send brochure to the customer that order our product 4.havegames to motivate the customer be the royalty.

Our limited partnership is make the profit 10% in each years to become the large

market of post paper box in online shop. The sales volume of the company can increase bysale strategy, good image of advertising and good after sale service especially in any festivalsuch as New Year, mothers day and fathers day will be increase 5% more than another

month from this sales volume its can make the profit in year 8 or more than.

From this all summary show the conclusion of our company about the standardinformation, the way to sale, promotion, and the profit that we calculate from the salesvolume after increase the investment in sales promotion.


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Content

PART I INTRODUCTION

Chapter 1 : Introduction

-Background and Significance of the Project 1

-Project Objective(s) 3

- Benefits of Project 3

-Activities/Time Frame 4

Chapter 2: Industry Profile (>10 Pages)

-Nature of Industry 5

-Situation of Industry 7

-Product/Service (in General) 17

PART II MARKETING

Chapter 3: Market Feasibility Study

- Market Analysis

-General Environment Analysis

Political, Economy, Social and Environment, and Technology 39

- Competition Analysis (3C Analysis)

*Competitor Analysis 43

*Customer Analysis 45

*Competitive Analysis 47

-STP Analysis 48

-Marketing Mix Strategy 50

-Sales Forecast/Profit Estimation 63

-Marketing Expenses (Sales Incentive) 69

-Conclusion


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PART III TECHNICAL ANALYSIS

Chapter 4: Investment Cost

-Cost of Investment

-Pre-Operating Cost 70

-Investment Cost 71

Land

Buildings

Equipments

Tools

Etc-Location 75

-Facility Layout 76

-Depreciation 78

Chapter 5: Production and Operations Analysis

-Product Characteristics (in Detail) 83

-Specification, Feathers, Dimension, Life Time, etc. 90

- Services Process 97

-Operating Cost 98

Raw material Cost

Direct Labor Cost-Logistics Management 100

-Facility Management 106

Chapter 6: Administration analysis

- Management Analysis

Facility Cost (Electricity, Telephone, Fax, etc.) 107 Salary 111

-Conclusion 115


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PART IV FINANCIAL AND RISK ANALYSIS

Chapter 7: Financial Analysis

- Financial Assumption for Business.

Profit/ Loss Statement 116

Cash Flow 118

Balance Sheet 120

Chapter 8: Risk Management

Potential Risk 123

Sale Risk 124

Cost of Goods Sold Risk 143

Administrative cost Risk 154

Expense Risk 165

Chapter9: Summary

- Make a conclusion of Chapter 1- 8 176

Appendix 178

Reference 190


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Chapter 1:Introduction

1.1 BACKGROUND AND SINIFICANCE OF THE PROJECT

Nowadays, paper packaging business tends to grow up, due to global warming

campaign expand around the world. Paper packaging is made from plants that it can

biodegradable and recycle, so it is not adversely affect to the environment that makes it

popular more than other packaging. In Thailand, market share of paper packaging is about 40

percent of consumption (From: Department of Foreign Trade, Ministry of Commerce). Paper

packaging is the largest market share more than other packaging that includes plastic

packaging, metal packaging and glass packaging. There are three types that are primary

packaging, secondary packaging and tertiary packaging (For transportation). Corrugated box

is in the type of tertiary packaging because it has strength, low price, various style and light

weight. Often seen this packaging at warehouse, retail, wholesaler, transportation business

and etc. Corrugated box has many sizes that depend on product. In Thailand, corrugated boxbusiness has many companies that have major companies such as Thai Union Paper Industry,

Thai Pacific Containers, Siam carton Packaging and etc. And main customer is the group of

manufacturing companies and transportation business.

In the future, International trade and Domestic trade will grow, due to ASEAN (The

Association of South East Asian Nations) Economic Community orAEC will occur in 2015

that is free trade, free investment, free transportation and freedom of labor, there are 13

counties that are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar,

Philippines, Singapore, Vietnam and Thailand. So, competition of trading, investment and

transportation will grow up that effect the many business in Thailand. This factor effects tothe storage for transportation that will make paper packaging business tend to grow up,

market share of this business will increase, and the consumption of corrugated box will

increase. Main customers are manufacturing companies, transportation business and export-

import business that customer want strength packaging, low cost, low weight, and various

because they want more profit and . The best choice of they are corrugated box.

This business is interesting in the term of global warming that you can save the world by use

raw material from plant (it can biodegradable and recycle), largest market share of packaging

business that your company can make more profit because more customers use corrugated

box, and ASEAN (The Association of South East Asian Nations) Economic Community or

AEC that make competition of trading, investment and transportation will grow up, it is good

for this business to make more profit, increase market share of paper packaging business.

From these factors can make the company to major company about corrugated box in

Thailand.


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In Thailand, e-commerce tend to do business on the internet by circulation increase

every years that include Business to Business (B2B), Business to Customer (B2C) and

Business to Government (B2G). The value of e-commerce, Business to Business has 79,726

million bath in 2550 to 217,458 million bath in 2553, Business to Customer has 47,501

million bath in 2550 to 67,783 million bath in 2553, and Business to Government has

177,932 million bath in 2550 to 344,370 million bath in 2553 (National Statistical Office,

2553). It shows the increase rate of e-commerce that has high rate, it make amount of new

enterprises increase every years. In Business to Customer, there are a lot of online shops to

sell their products on internet that they will deliver the product by transportation companies

or themselves, normally the online shops choose to use transportation companies that the big

transportation companies in Thailand is Thailand Post, this company use the paper boxes to

packing the product for transportation. So, paper boxes business will increase from the

amount of online shops are growing up.

Communication:

By Caror Truck:

You can journey by own car and bus that use Sukhumvit Road from Bankkok to

Amphur- meuang, Bangbo, Prapadang and bang-sao-tong and use Suksawat Road for

Amphur-Pra Sa-Mut Jay-Dee.

By Ship:

It has two ways from Bangkok to Amphur-Prapadang are harbor at Khlong Toei and

saa-tu bpra-dit. In Samut Prakan province can across the Chao Phraya river by 2 choice.

1. Amphur meuang Amphur Pra Sa-Mut Jay-Dee (For individuals), and 2. Inside

Amphur Prapadang ( Individuals and Vehicles).

By Air:

Samut Prakan Province has Suvarnabhumi Airport which is International anddomestic airport.


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1.2 Project Feasibility /Objective

The report of Product Box Company (PBC) is prepare for show the information about

the box, the target, who can receive the benefit from box or from company, form of

marketing, the way to promote, operation detail, how the company operate and calculate

financial to make sure that the company can make the profit,. All of report is for make sure

that the product and operation system in the company will be success the goal.

Project objective :

1. To make clear information for do the business in further.

2. To answer the question and solve the problem that can be a mistake of operation.

3. To run everything in operation of business smooth.

The Effects that expect from this project :

1. Can get the conclusion and information in completely and clearly.

2. Will discover the problem form research and get the solution to solve problem

3. Operation everything follows the plan by not defects.

Benefits of Project :

1. Understand the current market trend of the paper box industries in the currency.

2. Understand the customer behavior of paper box business.

2. Understand the operation and technical process of paper box business.

3. Use the strategies that appropriate with the business situation.

4. Know the risk and possibility of the paper box business.

5. Be able to calculate the financial of business, so we can find the way to get maximize

profits. Then we know the feasibility of paper box business.


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1.3 Activities/Time Frame

Activities :

Group brainstorm for the topic.

Do the project research and project planning : To study general information of thePaper Box company.

Marketing research : To study of the marketing mix , Analysis the environment

(External and internal), research the customers demand, do the sale forecast/ profit

estimation and the current situation about Paper Box company.

Research the technical process : To analysis the cost of investment, operation and

operation of the product from Paper Box Company.

Research financial of the business feasibility : To analysis the financial of

operations, profit and loss statement, balance sheet and cash flow of the Paper Box

Company. Then evaluation the financial of return on investment.Analysis the risk of box company : Find the problem that have risk from

management or operations, then analysis of that risk.

To evaluation the project : Evaluate the business feasibility of the Paper Box

company.

Do the summary project feasibility of the Box Company.

Time Frame of the study

Activities Month PeriodNovember December January February

W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4

1.Group brainstormfor the topic.

2weeks

2. Do the projectresearch/projectplanning.

2weeks

3. Marketingresearch.

3weeks

4.Research thetechnical process.

2weeks

5. Researchfinancial of thebusiness feasibility.

3weeks

6. Analysis the riskof box company.

2weeks

7. To evaluation theproject.

1week

8. Do the summaryproject feasibility ofbox company.

2weeks


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Chapter 2:Industry Profiles

2.1 Nature of Industry

History of paper industry

According to ancient writings paper was first made by a eunuch in the court of the

Chinese emperor Ho Ti. He is thought to have used the bark from a mulberry tree. The

earliest known paper that still exists was made from rags in about A.D. 150. China was the

only area where paper was made until the technique surfaced in Japan and then in Central

Asia. The Egyptians did not make paper until A.D. 900. Around 1150 a papermaking mill

was built in Spain and the art of papermaking spread throughout Europe. The English built

their first mill in 1495; it was 200 years after this that paper was first manufactured in

America.

Paper industry with trading business

Trading business or Merchandising firm refers to company that trade on both

wholesaler and retailer but is not the manufacturer. And the paper industry that many

company interest is products box. The product box has many aspect of business that effect in

shipping and convenience. The trading business with products box involving in the product

from the manufacturer sends to customers with care in product and guarantee for safety of

product and create long term relationship with customers. According to Jacobs Trading

Company has developed long-term, large-volume relationships with national and

international shipping channels. We can offer very competitive, discounted shipping rates

through our contracted carriers

Established of trading business in Thailand

Trading business in Thailand established with over 30 years. In those days many

company that trading business style use in theory of manufacturer to reduce cost of product

by the manufacturer. Refer to SCG trading company, they strive not only to produce high-

quality products to meet the demands of our customers, but also to offer complete handling of

delivery services that complement our products with over 30 years experience in international

trading, they focus on innovative and creating value added for their business partners, they

work to understand your business needs and customize products and services to meet your

business requirement.

Source:http://www.encyclopedia.com/doc/1G2-3406400700.html

http://www.jacobstrading.com/policies.html

http://www.scg-trading.com


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Trading business in Nowadays

Nowadays the number of customer that concern in paper industry is increased from a

quarter ago. And then effect in demand of customer who wants to use service is not enough.

A number of new company in industrial estates also increasing and the new companies are

need in packaging and transportation, they found in quality of fast shipping and the company

who care in their product.

Source:https://reader009.{domain}/reader009/html5/0411/5acd5b734258c/5acd5b7c30c4d.jpg


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2.2 Situation of Industry

The overall situation of the global packaging industry

Around the world have consumption of 253.5 million tones of packaging a total

consideration of U.S. $ 402.5 billion in 2007, and are expected to increase to 284.9 million

tons, or the 470.8 billion dollars in 2012. The Asia Pacific region is growing up with 32.4

percent in the region, America and then Europe with 34.4 percent and 33.2 percent.

Paper packaging is packaging that is most commonly used by consumers in 2007,

with the packaging around the world to 130.1 million tons, accounted for 51.3 percent of total

market value. The plastic containers are consumed. It ranked third behind metal containers,

with 14.6 percent of the total market value.

Europe Asia-Pacific

America

Paper

Plastic

Other

Glass

Metal


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Also if considering the global market share in the packaging industry in overall then

the large manufacturer have a market share of up to 6 percent of the total production.

Manufacturer is producers in North America and Australia, but has Expands investment in all

over the world.

The packaging manufacturer have distribution characteristics of the production is

quite high, because the demand for packaging variety of purposes. The high demand is the

necessarily produce enough to meet the requirements of the market that make a lot of small

producers in the market. In addition, the packaging manufacturer often situated nears the

consumption of packaging. The demands for each product are different packaging and make

the need to be produced to meet market needs.

Other


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Packaging industry overview in Thailand

Thailand's packaging industry has many similarities to other countries are the focus

on improve the quality along with the functional design of the product and make the

difference. Each year Thailand's packaging industry able to produce packaging total value

about 25,000 million dollars. Most of all focus on production to respond demand in the

country. The total package is sent out each year do not much. The growth of the packaging

industry usually bound to the growth of exports and international trade, because wants to the

packaging of goods for sale or transportation.

Packaging Industry in Thailand can be classified to 4 categories

Paper packaging industry. Manufacturing accounted for 40 percent. It can be

subdivided is corrugated box, cardboard box, multi-layer paper bag, single layer paper bag.

Raw material used different based on the type of product, such as corrugated boxes, single

layer paper bag, multi-layer paper bag made of Kraft paper. The cardboard box made of sheet

of paper. Paper packaging is widely used and high growth; because it can be recycled easily.There are a wide variety of sizes to meet the requirements of the user, which is divided into 2

types, cardboard boxes and paper bags. The boxes in the transportation and consumption.

Boxes and corrugated cardboard boxes. Corrugated cardboard is used to protect product

damage, while the cardboard popular for packing. The paper is divided in several layers of

paper bags. And the single paper bag in during the years ago. The global campaign increase

environmental protection and working Paper for the decay. It can be recycled. The relatively

high value is growth commonly used to produce paper. Paper packaging include Kraft paper

and paperboard depends on the appropriateness of its use. Although the paper can be more

widely used. The paper can be resumed, but the downside is that it has a paper packaging can

cut, fold and bend easily.

Metal

Plastic

Pa er

Glass


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Competition in the packaging industry, Thailand

Packaging play a role important industry consumer goods, and food industries and

beverages, as well as the growth of the national economy and international trade, because ofthe increase in the volume of international trade refers to the packaging requirements for

packaging to distribution, also suitable for transport and packaging industry have ties with the

industry, and industry support is great, such as pulp and paper industry, printing industry

important to support the paper packaging industry. Plastic and polymer industry molding

industry and chemical industry. The major industries that support the plastic packaging

industry and steel industry has importance support in the metal packaging industry. Which if

considered the industry is to be found in Thailand is combination of the industrial estate.

There are many organizations and support agencies.

The domestic factors of production

Factor in the Packaging Industry for Thailand. The volume is quite adequate,

especially in the packaging industry paper and packaging industry. Although industrial

packaging glass and metal packaging industry will have to rely on imports of raw materials

from some foreign countries do not have sufficient capability or low-quality raw materials.

If considering in technology and labor then find that. Thailand has adequate

technology for the production of all kinds of packaging. Although there are enough workershigher wages compared to neighboring countries.

Highlights of the packaging industry today are focused on modern design the image

for the product, and a variety of useful functions. They often have to hire a designer to bring

in own packaging. The key feature is the ability of the packaging industry it is the model

focuses on developing innovative products that are designed and built to increase.

The domestic demand

Packaging production in Thailand to focus on domestic consumption as the mainland

if considered. Domestic market size compared to the production capacity of the packagingindustry and the packaging market in Thailand is relatively large size. There are a variety of

products. Despite not equal to variety of international markets.

Needs of the domestic market have similar market in the region in particular, the basic

package, such as paper boxes, paper cartons, cans or glass bottles. This is an opportunity for

local manufacturers to produce packaging low cost per unit.


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Supporting and related industry

Supporting and related the industry in the packaging industry in Thailand. Available

has a good level, such as mold and printing industry, Pulp and paper industry, Plastics

industry. The materials are usually a combination of the action in the industry and settlement.

There is a settlement was established industrial packaging to facilitate the production of

packaging, and to promote Thailand's packaging industry.

In addition, the packaging manufacturer in Thailand is also gathered in the consortium

group, such as the packaging of Thailand, Metal Packaging Association. Corrugated and

Carton Manufacturers' Association of Thailand. Which contributes was greatly to strengthen

the competitiveness in the exchange of information, and strengthen the cooperation in various

fields.

Strategy, structure and competitive conditions

Manufacturer in the packaging industry in Thailand has a large number of mostly

small and medium manufacturers, but competitive situation for the packaging industry in

Thailand not very high, because most manufacturers produce the same customers or have

their own market, because of packaging needs often a specific product.

The competitive conditions that affect the productivity boost exports of packaging .It

is not that there are relatively little. Since the production is exported mainly because to

packaging products for new markets in different countries. The nature of competition in thepackaging industry is often in the form of a competition to create a new package to the

market rather than produce or sell products in low price.


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Overview of Industry situation

Corrugated box "has a long history. Adoption and continued growth. It is not going

to be unpopular. Same as other products that may be times when technology changes.

Corrugated Packaging is currently the most popular for printing and packaging products,

because of corrugated paper packaging. There are many features, such as used in the

packaging of all kinds of consumer goods, product goods or various industries. Corrugated

packaging provides facilitate the storage of goods and transportation. Corrugated packaging

is designed to be strong and have the different shapes based on the packaging.

The paper industry, cardboard and corrugated paper for producing paper packing box.

Increase the production of the food industry, Agriculture, electronics, and service that need

for packaging. In 2555 the production of paper. Considering the industrial manufacturing

production Index. Production increased compared to the previous quarter. Corrugated paper

increased 22.2 percent. Coincides with an increase in the rate of production capacity, which

increases in the domestic market. Corrugated paper production also grew in accordance with

increase in the food industry, Electric appliance, Commodities, Cosmetic, and medicine is

also used cardboard boxes packed.

Trends in the paper industry in the third quarter of year 2555. Expected to increase the

production, export and import. The main industrial use the production of paper for cardboard

box, and packaging, such as Electrical appliances, Electronics, Automotive parts, and Food

products. External factors, including market trends, key partners in Thailand and in Asia, as

Hong Kong, China continues to grow in the exportation paper to these countries is higher

than other countries.

Reference: http://www.ryt9.com/s/oie/1477847

The most 5countries that do

exporting.

- South Korea

- Viet Nam

- Indonesia

- Malaysia

- Australia


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The combination of national, Asean10 country with Thailand, Myanmar, Laos,

Vietnam, Malaysia, Singapore, Indonesia, Philippines, Singapore, and Brunei to be provide

sharing the economic benefits or called to as "AEC" or the Asean Economics Community.

Currently time left only two years. Thailand will have an effect on both the positive and the

negative.

The effect of entrepreneurs

Positive

- Raw material costs and production standards.

- Lower cost of imported raw materials, the impact of import duties on

raw material is the paper.

- Cost of the package. the paper reduction of tax which the raw

Material is the paper Food Grade and plastics Food Grade, which

currently of this Thailand cannot produce on its own, but Indonesia

can produce and can be imported into the country even more.

- Indonesia is the largest manufacturer of paper products in ASEAN.

In the future, the large the paper manufacturers of the world will be China

and Indonesia. If an extension of the ASEAN +3 as well In Thailand

imports of raw materials for lower costs.

- Production of paper from Thailand's enough demand in the country, but

entrepreneurs necessary to Import the paper, because selling price in the

country is higher than export prices.

- Standard paper packaging of Thailand will meet the standards the majority

of the customers in global standard.

Negative

- Domestic workers and professional of labor mobility.

- Lack of workers in the industry, both in Thailand and foreign workers.

- There are established Thai Print Academy to create a new workforce into the

industry, who are interested to study abroad in Thailand.

The future may be developed as a model to International.

- 300 baht minimum wage policy affects the industry. There is a lack of

workers in the Packaging. Business owners need to think of a solution.

Concluded that will take more machines to replace labor.


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Nowadays, the company that produce the corrugated box are increased, and the paper

box factory in Thailand with more than 80 factories that produced the paper and cardboard

boxes. Entire company large, medium and small for use in the transportation and packaging.

Making competition in the business paper packaging is increased. Furthermore every

business should have business relevance with nearly all of boxes. Whether is large business,

medium or small. Also need to collect the paper documents, the materials, packaging,

commodities, cosmetics, medicines, food or transportation.

Electronic commerce

Electronic commerce in Thailand has the proportion of small businesses. (Maximum5 people) are 68.5 percent and 73.3 percent B2C type of business, if classified by found that

industry in the fashion industry. Costumes and accessory accounted for 32.3 percent of all

businesses. A minor are group of computer industry, Electronic devices and the Internet. 17.7

percent.

Trends in the online world trading of Thailand nowadays, considered to be very

popular. The dominant factor caused number of stores, and the business that entered to online

have increased, which caused from "To start trading online can be made easy". The payment

system and logistics system is better and easier than ever before. Make the entrepreneur can

start and easy to trade online, and the one factor that will make the world of online trading in

the country has increased, because due to economic slowdown makes many businesses start

looking at a new way to find new customers, and increase the revenue for themselves. Many

businesses have turned to online trading that can help to increase the sales in across the

country and around the world more effectively.


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In the last year (2553), business for E-Commerce has sold about 608,587 million Baht. It

is the B2B sales of about 251,699 million (41.4 percent), the B2C sales about 84,593 million

(13.9 percent), and the B2G sales about 272,295 million (44.7 percent).

When consider the value of sold by classified for the industry that shows in the last

year (2553), the sale based on the Automotive Industry, and products are about 73,131

million baht (21.5 percent). The second is a group of computers, Electronic devices, and the

Internet, about 66,297 million baht (19.4 percent), and travel, hotel, resort about 60,023

million baht (17.6 percent).

Types of

entrepreneurs

Value of electronic commerce

Years of survey

2551 2552 2553 2554

Value of total

sale

427,460 527,538 629,611 608,587

(100.0) (100.0) (100.0) (100.0)B2B

127,325 190,751 217,458 251,699

(29.8) (36.2) (34.5) (41.4)B2C

63,425 45,951 67,783 84,593

(14.8) (8.7) (10.8) (13.9)

B2G236,710 290,836 344,370 272,295

(55.4) (55.1) (54.7) (44.7)

From the survey2,728 2,087 3,670 4,611

(0.6) (0.4) (0.6) (0.7)

From e-auction

233,892 288,749 340,700 267,684

(54.8) (54.7) (54.1) (44.0)


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For the methods, to used in the E-Commerce business for take care customers

primarily use email or submit the questions for customer on the website or Facebook, which

is about 80.4 percent. Second officials take the call (Call Center), about 62.6 percent, and use

the Live Chat to chat with customers such as MSN, Skype, and G-talk etc. 30.5 percent.

Sources: http://service.nso.go.th/nso/nsopublish/citizen/news/news_e-comm.jsp


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2.3 Product

Paper box

China is the first country that create the paper box for packing the tea leaf. In 1839

United State use cardboard box for packing decorations, such as jewelry and gems.Nowadays people develop cardboard for use with another material, such as plastic, metal and

can coat the candle can be waterproof. Moreover the paper box can use for food and drink,

Then it's make the paper boxes are very popular in nowadays.

Types of paper box

1. Die-cut box

A box containing various forms depending on design to match with

applications and focus on beauty of box. It can be use corrugated paper, cardboard or

art paper by taking into machine, it will be according to template that you want. Then

get out a sheet of box that has been cut to desired shape and be assembled into a boxshape.

Die-cut box is popular used as packaging products that needs beautiful, also

called "Inner Box" to increase the value of product or to show product. It's easy to use

products category containing such as electronic, components, electronic equipment,

toys, fresh fruit and etc.


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2. Cardboard boxA box that has light weight, graphic design or logo can be printed for easy

decorating products.

Retail packaging is the most popular can be made from many kinds of paper

such as paper white-gray, coated paper, card paper, cardboard paper and etc. It can

also be coated with other materials such as varnish, plastic to the properties

improvement.

Form of a cardboard box divided into 2 types is folding box and set-up box:

2.1 Fold cardboard boxCardboard boxes can be made and shipped as flat blanks at the packing

plant may lead to product or product packing glued and sometimes it may

stick to edge of the box already for close lid. Cartons are now both tube and

tray.

2.2 Set-up box

Set-up box is the box for already to use. For example, matches box or

shoe box with cover. Manufacture of set-up box slower production more than

cardboard or folding box. It makes higher price per unit both the production

and transportation. The advantage of this box is can use for long time and if

you have design that will enhance the value of product, it can attract attention

of buyers.


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Cardboard boxes are used 2 types.

1. Non coated white paper box

This paper is similar with coated paper but coarse-grained than

irregular white paper. It does cheaper be printed with conventional systems

like shoes boxes, moon cake boxes, etc.

2. White coated paper

This paper is normally used in the packaging of consumer products because it can

print by offset system insert a different color and valuable items. Then contained within the

box and it is sold by general stores. It's known as cardboard gray-white in packaging of food

products used in the paper because easy to buy.

Selection of cardboard box must be considered in relation to use properties. Such as

moisture, bursting strength, ability to gain weight around 2-3 pounds. Depending on size and

thickness of the paper of surface roughness, thickness, smooth of paper, white color. The

benefit is bright color can make colorful from printing more than other colors. Resistant to

bending can be folded into a flat sheet has space to store and transport. Select the desired

torque is easy to cut on puncher cheaper, materials and manufacturing processes to design to

choose size of paper and box. It is depend on type of product and market demand. The

alignment process should be durable and easy to taken or easy to carry on it when set up as a

group.

Types of paper

Plain paper is to print general document use plain paper, a paper with thickness of 80

-120 grams. Do not have special chemical coating for printing color graphics quality. But

somehow, 300dpi is the best for print the paper resolution. So if higher resolution ink

penetrates, the paper will not dry. In practice, its possible that some will be plain 600x600

resolution prints if the paper is thicker than 100 grams was achieved.

Fine printing paper with a thickness of more than 160 grams, its good source for

inkjet printing because prevent absorption of ink. However, the price of paper was expensive

as well as paper designed for inkjet printers. It is allows user to turn to instead used of inkjet

paper, which have both same brand of printer and paper produced by manufacturer paper

free.

Inkjet paper is specially coated paper both paper printed on one side and print double-

sided. Nature of paper is no different from normal paper, thickness was not differ but the

different is special coating to qualify for ink to be printed on paper. In general, inkjet paper to

print a report with a chart that beautiful at 600x600 and level premium or deluxe inkjet paper

is capable of printing up to 1440.


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Paper card is paper coated with some material to a smooth surface. The surface

characteristics both 2 sides, but it is not much thicker than paper with printing on both 2 sides

to printing images with high resolution. The images are crisp and beautiful suitable for the

production of art or box desired thickness.

2 paper cards, art card 1 page is generally available in 2 sizes.

25 inches x 36 inches

31 inches x 43 inches

Paper powder box characteristics 2nd surface has two sides, one side is white with

gray. Paper powder box, white front and white back gram 230 500 grams used for

packaging all kinds of products such as OTOP products, gift box, candy box, posters and etc.

Aluminum coated paper coated with white (kaolin) or special materials, then pass

polished chrome roller with two balls to make surface smooth. The plastic mesh is coatedwith metalized film so that it is used to make a shadow box food that have high price.

PE coated paper coated with white (kaolin) or special materials, then pass polished

chrome roller with two balls to make surface smooth. PE film surface with opposite to water

or fat have insert features a beautiful color, used for packaging frozen foods or snack foods

such as cookies etc.

3 Corrugated boxes

Packaging paper box with a very strong feature used in the transportation of

goods. Its also help to protect your goods safe, can be designed accord ing to need and size.

We will make use of corrugated boxes 2, 3, and 5 layers of corrugated cardboard can be make

to Die-cut boxes and can make corrugated boxes offset printing, so that box is strong and has

print beautiful.


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The structure consists of corrugated boxes

1) Liner board is paper attached to wavy corrugated paper sheet, corrugated roofing

cover, which we will use Kraft paper to be flat sheet.

Kraft paper

The most of Kraft paper is coarse skin. It has brown color of wood that make pulp and

paper production. But some kind it is white because used to bleach pulp or may have other

colors depending on manufacturer and market demand.

Characteristics of Kraft paper

Kraft paper are sticky and stronger more than normal paper. The pressure and prevent

shock due to stab through from the outside as well, it also has ability to resist water. Oil and

Kraft paper has a smooth consistency can be glued well that suitable for printing. The

outstanding features of the various types of Kraft paper which can be processed into

packaging container properly both of production. There are packaging and transport can also

recycled for use as renewable raw materials in the manufacture of paper. It help to reduce

pollution to the environment, Kraft paper packaging material is widely used in industry.


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Kraft paper, corrugated paper sheets are used to make a variety of colors and quality of

implementation is different. The main grade of paper used. Is as follows.

KS - With its white surface and high smoothness, KS is ideal

to produce both strong and high print-quality packaging,

enhancing the value and aesthetic of the products

Application: Widely used as packaging for electrical

appliances, pharmaceutical products, medical equipment,

exported frozen foods, dairy products, beverages and fresh

produce.

Standard Basis Weight: 170 gem

KA - Its golden yellow surface, superior strength, and

consistency of color shade has made KA the most preferred

choice. Certified by Thai Industrial Standard Institute (TIS.

170-2529), KA is popular for packaging of domestic and

exported products.

Application: Widely used for various types of packagingsuch as electrical appliances, electronic components,

electronic circuits, exported frozen foods, canned foods,

engine parts, and textile, etc


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KI - Is an environmental friendly liner board. Its surface is of

light/bright-shade of pulp. The light tone of KI helps achieve

good print contrast for dark-color image on the packaging.

With standard strength property, KI is suitable to make

packaging for domestic goods.

Application: Widely used for all kinds of products such as

consumer goods (beverages, canned foods, and snacks),

furniture, leather, etc.

KL - Is designed as a liner board for the inside surface of the

box. It is made from recycled paper, without any additional

coloring. Unlike other liner boards, which are also used for

outer surface and therefore smoothness and cleanliness is ofconcern, KL features mainly its premium stacking strength.

Application: Suitable for several usages, such as electrical

appliances, consumer goods, canned foods, beverages, etc.

especially for packaging requiring high stacking strength of

box and the appearance of inside surface is not highly

concerned

KK - is a brown liner board made mainly from recycled

paper. Its color shade also resembles that of KP. KT is also

one of major products, featuring primarily stacking strength

of box. Application: Suitable for packaging of consumer

goods requiring ordinary strength. Standard Basis Weight:

125, 150 gsm.


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Paper GradeBasic Weight (g/m^2+/-

4%)

Force the Ring Crush

(N/152.4 mm) Min.

Pressure resistance

(KPa) Min.

Humidity Levels

Moisture (%)

KA125 125 160-170 390-400 6-9

KA150 150 210-220 460-490 6-9

KA185 185 280-300 520-560 6-9

KA230 230 380-410 640-680 6-9

KI125 125 125-155 300-350 6-9

KI150 150 170-200 370-440 6-9

KI185 185 230-260 460-540 6-9

KP175 175 210 410 6-9

KP275 275 345 600 6-9

KT125 125 140 275 6-9

KT150 150 190 350 6-9

TA125 125 150-155 275-320 6-9

TA150 150 200-215 350-375 6-9

Source : http://www.packingsiam.com/index.php?lay=show&ac=article&Id=539312388&Ntype=7

Kraft Liner Board Specification


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2.) Corrugated Medium is a paper that looks like a wave between the papers.

Kinds of corrugated sheets.

1. Single Face

The paper includes one flat sheet, one sheet adjacent to corrugated medium and used

to shockproof product or dashed box offset standard hoop: B, C and E.

2. Single Face

The paper consists two flat sheets corrugated roofing one sheet by adjacent corrugated

medium. It is in middle between both two sheets of plain paper (Liner Board). Used for the

product that has medium weight or not strong standard: B, C, and E.

3. Double Wall

The paper consist three flat sheets dovetail with corrugated two sheets by the

corrugated type B that stick outside the box for print and corrugated type C to protect fromthe crush. Double wall is popular in the product that needs to protect or have high weight.

4. Triple Wall

The paper consist the 4 flat sheets and corrugated roofing 3 sheets. Used in the

industry that needs to gain heavy weight such as machine in the industry.


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Process of Manufacture

The processes of Manufacture Corrugated box distribute in two ways are Eieblwd boxand Box gluing.

1.1Eieblwd boxAlmost be the big box to carry the high weight product or long box but its hardly to coat

glue. So the process of manufacture will use printer slotted and stamp at printer. The process

of manufacture box have method to manufacture Eieblwd box by take it out of machine that

make trace line at cover and put it in feed unit of machine pages per sheet in to printing

section for printing. Printer have color box and primary color are separated out. Next cut

tongue of glue at box in side one and erode groove for distribute in another side, so it will be

unfold. Then make forming by Eieblwd to link box at side one and four together by use semi-

automatic sewing machine or automatic sewing machine.


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1.2 Box gluing

Box gluing is the box fast to Manufacture and use in common product. The process of

manufacture will use Flexo Folder Gluer that are machine include with printer, grooving

machine, printer slotted, folding, glue together in one machine in produce box gluing.

Corrugated sheets will print overlay fold line and groove as same as the process of printer

slotted. After that machine and folder gluer will set glue and lap splice join side 1 with 4

together to become ready-made box. It will pass the machine and tie a rope follow volume of

box.

Corrugated box divided into 5 types

1. RSC box (Regular Slotted Container)Popular to use more another type because the Manufacture use only one paper to less

material and have cover open-close in equal by cover outside. It will link at center from

length of cover. So its easy to transport product because the box is flatly and can open

immediately. Then its easy to contain and use. RSC box can edit to transport in product

almost all kinds of product or use to improve strength to protect the product.


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2. FOL (Full Overlap Slotted Container or Full Overlap Container)

A cover has same size length and width to make the box stick together. So it will

increase strength of the box. When it is overlapping, it will adapted to carry heavy product

and protect indelicate before it has effect to product.

3. HSC box (Half Slotted Container with Cover)Have two parts cover and box. It is open-close in same side and do not have cover in

the box. But box will close by another box cover (Box cover box) by cover will higher thanbox a little bit and same design with the box or have a same style with half-slotted style, half-

slotted style usually use in industry, battery, refrigerator, washer, etc.


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4. PTHS Box (Half Slotted Box with Half Slotted Partial Cover)Two parts of box include with box, cover, its slotted style, suffer to bulging and

bulking. When box get a heavy, sometime producer Manufacture product over-packed but

this box can carry it.

5. FPF Box (Five Panel Folder)

It look like RSC Box but shorter than, its can tape around the box, so it make box

stronger by cover, it fit to transport piece ex. Rattan, umbrella ,roller or electronic, FPF have

2 type . There are :

- Full cover

2 Covers can open-close lateral use staples

- Standard Cover

Cover will close the center use tape to close and outside use staples to close

6. Partitions and Pads

Partitions inside the box use to partition and reduced pressure between material,

beside will reduce the space inside the box. Pad made from corrugated sheets and it can make

baffles or pad in layer to protect product when they transport. For example Glassware,

bottom, vase etc, when compose the box complete, Core will make the box stronger and hold

the shape.


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Corrugated Box in Thailand Post

1. ReadyMade CartonReady Made Carton made from corrugated paper, there are high quality and many

sizes for customer needs that they want to send product by strong box.

Ready Made Carton has six sizes for customer to choose by size of the item that

need to packing.

- ReadyMade Carton A size : 14 x 20 x 6 cm.

- ReadyMade Carton B size : 17 x 25 x 9 cm.

- ReadyMade Carton C size : 20 x 30 x 11 cm.

- ReadyMade Carton D size : 22 x 35 x 14 cm.

- ReadyMade Carton E size : 24 x 40 x 17 cm.

- ReadyMade Carton F size : 30 x 45 x 20 cm.

Source : http://www.thailandpost.com


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2. Normal CartonNormal Carton has many sizes to choose made for conveniences of customers that

need brown box are strong and big size. Normal Carton can accommodate item that multiple

size. The box made from standard corrugated paper for protect item in the packet between

transportation.

Normal Carton has six sizes for customer to choose by size of the item that need to

packing.

- Normal Carton No.1 size : 30 x 100 x 30 cm

- Normal Carton No.2 size : 31 x 36 x 13 cm.





Source : http://www.thailandpost.com


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Important property of corrugated box:

1. Combined board basis weight mean the total weight of corrugated as grams

per corrugated one square meter.

2. Bursting strength mean the ability of corrugated for resist pressure that test

with a higher rate, the corrugated will tear in KPa or Kilogram per square centimeter,

so resistance of corrugated can estimate from total of pressure that make the paper

tear inside and outside of corrugated.

3. Flat crush resistance mean the ability of corrugated that can resist pressure by

horizontal to lose shape in KPa or Kilogram per square centimeter. The result will

relate with thickness of corrugated and cushioning ability of corrugated.

4. Edge crush resistance mean the ability of corrugated that can resist pressure by

vertical to subside, in Newton per meter. This test is very important because this test

report about hardness of corrugated that relate with hardness for sequence overlap of

box.5. Puncture resistance mean the ability of corrugated that can resist from

puncture in unit joule. This ability relate with toughness for resist tearing of

corrugated because it is mechanical shock from the external.

6. Box compression strength

Mean the ability of box for resistance pressure at the top of box with constant

speed until the box subside or lose shape unit in newton (N) or Kgf. This ability is

relate with the strength of box for overlay but it not tell about weight in the real

overlay because in practice its necessary to multiply for safety factor such as

moisture in the air, times, type of overlay on top and system of move.

7. Drop resistance mean the ability of box for resistance with ground when

falling from a height. This testfor testing the strength of box for protect the product

when they have leave out in the transportation part and in this part the transporter will

report the amount of damage.

8. Vibration resistance mean the ability of box that can protect the product inside

from damage depend on vehicles in transportation part and another factors. The

objective of this test is for estimate the strength of package, instrumentality for

contain, suitable cushioning material, unit the closed container that can protect the

damage from vibration.

9. Incline impact resistance mean the ability of package (box) for resistance withbaffles when falling to the ground that angle of ten degrees and horizontal. This test

have objective for test that the package can protect the product from impingement that

can be in transportation part.

10.Hexagonal revolving drum test

The tools that use to test characteristic is hexagon box that can evolve, take the

product get inside the hexagon box associate with baffles, the baffles make the

product crush with the spot. This test is for estimate the damage that may potential

with product and check the quality of manufacturers joint.


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Paper and packaging paper testing.

- Test for basic weight

To determinecriterion for sale because the basic weight of paper will directly related

to the strength of the paper. Lead the paper and cut to appropriate size such as 10 square

centimeters and weighed carefully. Show number of basic weight is the weight per unit area

such as grams per square meter or pound per ream (U.S Ream). Were 24 , 36 inch size paper

500 sheets.

- Test for thickness

Prefer to check the paper quality of the materials are soft and almost all types of

containers. The method is easy and fast to make it. Used to measure the resolution and

precision such as Dial Type micrometer. Unit of thickness commonly to use as millimeters,micron or inches. And unit for specific materials such as point for the paper. (1 point = 1/100

inches), (1 mil = 25 micron) and gauge (100 gauge = 1 mil) for plastic film or a lot of soft

materials.

- Test for tear resistance

Test is about the average value is used to tear the paper has notch and has unit to use

gram force or meter, new ton. (gf.m or N.m). For this test are important to control the

quality of paper, paper bags and cardboard boxes.

- Test for bursting strength

Test is about ability of paper or corrugated sheets resist the pressure are increase in

constant rate until samples are lacerate. It can measure in kPaor kilograms per square

centimeter (kg/cm). Use for test the quality of paper. Cardboard or corrugated sheets used to

form a container such as a bucket.

- Test for tensile strength

The elongation sample sheet is held among the two forceps by pinch one and move to

retrieve samples are lacerate. Record force that use and value of paper while holding it.

Resistance reports the tensile force per cross-sectional area of the sample or the width of the

sample. The report is based on a percentage.

- Test for moistureTest by use method baked the sample sheet that known weight in the oven at 105 c for

at least two hours. It make cool and lead to find new weight the difference of the water

weight can measure moisture content in the sample. All reported values are percentages. Forthis test are important to cardboard and corrugated sheets used to form a container.


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- Test for water absorption

It is test for ability of paper to absorb the water within a time period. The paper has a

weight of water absorbed by the area in contact with water. This test is important to print (ink

absorption) glue to withstand environmental conditions such as rain.

- Test for resistance to fat

It is test for ability of paper for resistance absorption of fat by record the value of the

time that appearing on the fat side opposite the side in contact with the fat.

Source: http://www.qualitycartons.com/paper_qcc.html


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2.4 Vision and Mission

Vision

"To gain more market share of online paper box business in Thailand."

Mission

Our company can make profit from transport the product to customer and it can

increase profit in every year by liaise, include with good performance of transportation and

provide the promotion to motivate the customer, for make customer trust our company beside

customer can feel our service is faster and punctually cause to respond the demand and

increase confident and trust of customer. Our company will operate company with honest and

obvious, so our company will always develop for retain benchmark of transportation and

quality of service.


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2.5 Strategy

2.5.1 Corporate Level

The PB limited partnership is sell and transport the product to customer in onlinemarket that company will establish in Samutprakarn. In the PB limited partnership will have

characteristic about growth strategy, many companies use this strategy to expansion increase

in market share and find new group of customer. The PB limited partnership use in

integration strategy in term of forward integration strategy, we give in convenience and fast

in transportation and information. And use this strategy to increase market share and concern

about customer satisfaction.

2.5.2 Business Strategy

Differentiation

The Product Box Limited Partnership has target customers are online shop and retailer

that they want to use box to packet. Our company has different promotion and service of our

company better than competition, because we are fast and be on time.

2.5.3 Functional Level

Marketing StrategyProduct

- Have 2 grade of box and they are different in thick and color such as KS, KC.Price.

- Set price by standard price that survey from the competitors.

Place

- Product Box has office at Bang Phli, province Samutprakan, should this place becausethe company establish at center of Thailand, easy to transport the product and nearly

suppliers.

Promotion

- Free transport- Advertising on internet.- Sale promotion- Customer feedback by using member of company website.


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Sale strategy

Selling Process: we used the webmaster do in seller to answer the customer in

website. The webmaster will control and answer any order and any question that the customer

contact with our limited partnership. And the webmaster will motivate the customer to buy

the product and used after sale service method for make the customer thrust and make good

image to our limited partnership.

Sale promotion: we have the sale promotion in the many famous festival such as

Valentines Day, Halloween, Chinese New Year, and have the gift for all customers in New

Year to make the customer believe that our limited partnership is interest and care the

customer mind. In the website its has the picture and other media for promote the product.

Advertising: we sale in online market so we have the many advertising in the world

wind web such as show the website in facebook and our webpage that have many information

of the product. And when we sent the product to customer we will sent catalog or brochurewith the product.

Website : The limited partnerships website is basic website that commonly and easy

to use, when customer open website. Moreover the limited partnerships website has record

information system of customer for convenience and speed in order to trade with the limited

partnership in the future such as order history, and transfer payment.

In case that website is an error when customer use website or cannot login, customer

can fix or recover the data by yourself. By following the simple instructions that appear on

the website.

Posts of the limited partnership can meet in the homepage of website, for customer

can get the information that customer need to know. By establishing a topic and type the

required details for post and then webmaster of limited partnership available to answer

question and provide information that customer need to know quickly. Moreover, the limited

partnership will be tracking the results of shipment via the website, by webmaster will

contact with customer directly through the messaging system on the customer has to register

with the limited partnership website. The limited partnership will determine that customer

receives complete product order and product in good condition according to customer

requirements.


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Sale Strategies Cont.

Notification: When customer transfer payment and inform the data to the limited

partnership, the limited partnership will update information about product and status

of shipment to customer via the limited partnerships website. In addition, after the

customer transfer money to the limited partnership, a message automatically to email

address that used to register of customer immediately, so the customer know that the

limited partnership get the funds. Moreover, the company registered e-DBD to make

facilities for customer.

Black lists: Black list will affect to customer when delinquency with the limited

partnershipmore than 3 times because of the limited partnership does not need the

customer who doing-wrong the policy of limited partnership.

Website Lock: When the customers have the contract with our website and the customer

can record the information in website. The website of limited partnership will show thepresent information of the contract with customer.

Sources: http://smallbiztrends.com/wp-content/uploads/2011/11/key-sales.jpg


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Chapter 3 Market Feasibility Study

3.1 Marketing Analysis

Political

Increase the minimum wage

Central Committee of Thailand's policy has increase the minimum wage to 300 baht

per day. Mr. Phademchai Sasomsub Minister of Labour, said that after the government is

distributing income along with the preparation of measures to reduce the cost of living.

Increase in the minimum wage, which is responsible for the Department of Labor from its

consultation with relevant agencies have concluded initial clearthat government will adjusted

minimum wage to 300 baht per day. Approaches operation is will increase 40% by use

account minimum wage is now enacted or as the base. For the provinces Current Samut

Prakan minimum wage rates at 215 baht per day, up from the original 40% or 86 baht

increase the minimum wage to 301 baht per day, so company have to pay high salary for

employee that already graduated in degree, it make company must to pay higher cost of

produce and the company get low income cause by pay a high salary for employee.

AEC(ASEAN Economics Community)

SMEs accounted for 96% of enterprises and between 50-85% of domestic

employment across Asean. Integrating these SMEs and supporting them in the inital period

will be a challenge throughout ASEAN but particularly in the lesser developed ASEAN

countries. Recently I was in Singapore and it is obvious that the Singapore government fully

realizes the challenge and the opportunity that the AEC will represent to SMEs and is putting

both the planning talent and the resources to better support their SMEs. I was also in

Vietnam and Thailand and although both countries are starting to verbalize and meet to

develop more effective plans for SME integration and support, it is obvious that these plans

are probably behind where they need to be. In countries, such as Cambodia, Laos and

Myanmar (Burma), plans are even further behind and more in need of support and

resources. So the most SMEs need to have packaging to hold product for import.

Source: http://www.prachachat.net/news_detail.php?newsid=1314755530&grpid=02&catid=no

http://www.business-in-asia.com/asia/asean_economic_community.html
http://www.wallstreet.in.th/aec.aspxhttp://www.wallstreet.in.th/aec.aspxhttp://www.wallstreet.in.th/aec.aspxhttp://www.business-in-asia.com/asia/asean_economic_community.htmlhttp://www.business-in-asia.com/asia/asean_economic_community.htmlhttp://www.wallstreet.in.th/aec.aspx


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Economic

The trend about economics of Thailand will expand in 4.5% Dr.PiyasakManasan

The diractor of research and planning division of Kiatnakin Bank by the expand of

economics of Thailand will get factor from the increase of consumer product, the effect ofthat come from increase minimum wage by government policy, so it will motivate about

consumer in region and the part of invest of private to start expand the invest in first quarter

and second quarter by the cause of invest the machine that need to repair and compensate the

damage of machine from flooding in last year (2011), beside the invest about industry to

restore the process of produce Spatial Development Planning and Strategy Officer

(SPSO)/NESDB/20August 2555.

Social

The produce of package in Thailand will increase in every years because main income

of country come from the export so to make customer interest and choose to do business with

the company, CSR (Corporate Social Responsibility) will be another alternative to influence

customer to do business together in process of company, that realize every employee in

company, employee is the best resource of company so must give a take care and develop

performance, benefit and opportunity to the employee advantage by support about develop

knowledge and ability of employee include with external of company to show about the

company preserve the environment and guard benchmark of safety, including support activity

to develop and preserve the environment, energy by organized activity to campaign for

promote behavior to use resource in smart way Samart Co.,Ltd.

Source: http://www.prachachat.net/news_detail.php?newsid=1314755530&grpid=02&catid=no

http://www.business-in-asia.com/asia/asean_economic_community.html
http://www.business-in-asia.com/asia/asean_economic_community.htmlhttp://www.business-in-asia.com/asia/asean_economic_community.html


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Packaging environments

Paper packaging industry increased in production, exporting and importing, because

of the ASEAN Community have both positive and negative effects to paper packaging

industry, and domestic factors by a group of consumers more turned their attention to the

environment. The consumers want the packaging that is environmentally friendly. Packaging

design must consider the ability to reduce the amount of packaging used, because people

know and awareness of the dangers of global warming. It will be losses to the environment

and living organisms, which are the key elements of the Ecosystem. We must be protected,

and change in today. In Thailand has 3R to use for environmentally friendly. It is Reuse,

Reduce, and Recycle.

The choice of the packaging, that is friendly to the environment. It shows the

consumers and society, that our business is caring for the world. The important think about

the management of packaging "green" need to start focus on to the lifecycle of the packagefrom the beginning supplying until the ending of use. In the Product Box company is uses

natural raw materials, which can be decomposed to easily without destroying the natural

environment, and can be recycled. The Product Box Company is attentive to social and

environmental with choice of packaging for "green". This is not different from the general

packaging. It will protect from damage of goods or product that inside the box from

transportation and it is beautiful.

In the Product Box Company, the most of product is corrugated paper. That has to

produce the carton packaging to put goods or product to transportation. In company have

environment conservation to use the recycle paper into the processes of produce the cartonpackaging. It is the policy to save the energy and save the world. It is the corporate social

responsibility.

Corrugated paper product in company

Most are made of corrugated material recycling, and often made from scrap of

recycled human. Manufacture of corrugated paper without the use of toxic materials, or

destruction of the ozone layer. The current have research and development capabilities of the

corrugated market all the time, in order to improve the properties, the ability of corrugated

paper, such as strength and the ability to print, resistant to moisture, and recycling. More than74% of corrugated paper products are taken to recycling. The paper counts as one package

with rates being highest recycling.

Source: http://www.foodnetworksolution.com/knowledge/content/142

http://www.dae.mi.th/world.htm

http://www.thaipaperbox.com/about-paper.php

http://www.bangkokbiznews.com


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Technology

Nowadays technology have role in many aspects of business. Many people use

machine to help in their business which technology in modern not only in term of

comfortable but technology assist in the production of goods. And the technology that we

choose in company is concern about internet webpage and truck. In the present, internet has

many roles in every industry because the number of people in communication by the internet

is higher than ever such as Facebook is a large social network online and popular in

nowadays which we use Fackbook to contact and send information to customer faster. And

truck support in the transportation, when the transportation is convenient and fast that effect

on satisfy of customer.

Technology in packaging

The packaging technology is important for logistic system because in term of safety

on product, we protect in quality of product and not harm to the environment. So we choose

in CUBE intelligent program, it help in enhance the capacity of packaging and design of

packaging which the program can calculate the size and style of packaging it effect in design

accuracy and minimum gap.

Sources: http://www.tradelogistics.go.th/download/file/5ee4543c.pdf


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3.2 Competition Analysis (3Cs Analysis)

3.2.1 Competitor Analysis

Paper Box Limiter Partnership can provide the competitor into two groups. There are

direct competitor and indirect competitor. In term of direct competitor is the paper box

trading company by using e-commerce that same as PB Limited Partnership . Such as DPS

Limited Partnership and PJ Box. In term of indirect competitor is a company that they are

produce the product, use internet for sell the goods and transport the goods for customer.

Such as S C Paper-Pack Co.,Ltd.

Direct competitor

Design Packaging and Supply (DPS)

Design Packaging and Supply Limited Partnership is an trading company by using e-

commerce to do the business. Main product of this company is a post office paper box.

Moreover DPS has another products such as corrugated box, plastic shockproof and OPP

tape. Target market of Design Packaging and Supply is retailer and wholesaler that most

using the internet. The promotion of this company have only one promotion that is discount

strategy, this promotion is for the order more than 3,000 baht. The transportation is to

transport the goods to customer buy Thailand post and private company, such as NTC, SDS

,CKT transportation.

Advantage Point Disadvantage Point

- The company have customer loyalty.- The transportation of their company arereliable for customer.

- Do not have the information about thecompany to make reliable of customer.- The company has unclear information ofthe amount to order products.- The company do not have the standard toguarantee their product.- The price of product is a little bit cheaperthan the market.

Source:http://www.dps-postbox.com/?cid=1289592


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PJ Box

PJ Box is an e-commerce business. Their main customer are the people use the

internet and have ability to buy low amount per order. The main product is Thailand post

paper box. A part from paper box they sell the tool for packing, second hand paper box, etc.

The price is quite high more than market price. The promotion of this shop is use a sale

promotion. There are; If you order Thailand post paper box 100 pieces, you will get free fivepieces and if you order 150 products from this shop, you will get free five paper boxes. They

transport the goods to customer by Thailand Post, but if the order more than 1,500 baht, they

will transport the goods to customer by private company.

Source: http://www.pj-box.co.th

Advantage Point Disadvantage Point

- The company have customer loyalty.- The website are guarantee by e- commerce

company.

- The transportation is free.

- Do not have the information about thecompany to make reliable of customer.- The contact is not available for customer.

- High price- Sale promotion is long-run, so it cannotmotivate the customer.


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3.2.2 Customer analysis

Product Box Limited Partnerships has target on the online shops or e-commerce in

Thailand, there are a lot of online shops on many websites. The famous websites, people want

to open online shops are around 17 websites, some websites are free, some websites want to

register the member, and pay the money to open online shops on the websites. We survey the

number of online shops and member of 17 famous websites in Thailand that show the number

on the table.

From the table, it shows number of online shops on each websites that the total online

shops are 1,301,444 shops. In total online shops, there are many catalogs that include fashion and

accessories, e-ticket, book, food drink and healthy goods, and etc. It shows on the table.

Web site Online shops

www.weloveshopping.com 321,138

www.shopup.com 15,123

www.lnwshop.com 59,563

www.pantipmarket.com 10,555

www.dealfish.co.th 218,044

www.thaionlinemarket.com 79,516

www.siamonlineshop.com 2,940

www.be2hand.com 314,128

th.888db.com 646

www.siamshop.com 6,736

www.market2u.com 2,373

www.shop2thai.com 4,684

www.ilovemyshopping.com 6,804

www.yeepou.com 625

www.plazacool.com 705

www.catabgtoday.com 41

www.tarad.com 257,823
http://www.be2hand.com/http://www.be2hand.com/http://www.siamshop.com/http://www.siamshop.com/http://www.market2u.com/http://www.shop2thai.com/http://www.shop2thai.com/http://www.ilovemyshopping.com/http://www.ilovemyshopping.com/http://www.yeepou.com/http://www.yeepou.com/http://www.plazacool.com/http://www.plazacool.com/http://www.catabgtoday.com/http://www.catabgtoday.com/http://www.tarad.com/http://www.tarad.com/http://www.tarad.com/http://www.catabgtoday.com/http://www.plazacool.com/http://www.yeepou.com/http://www.ilovemyshopping.com/http://www.shop2thai.com/http://www.market2u.com/http://www.siamshop.com/http://www.be2hand.com/


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Customer behavior

In Industrial Estate have many companies and factories produce their product for sale

exchange or trade, they will pack their product and send their product to another company. In

many factories use corrugated box for pack their product, they want to save their product for

transport to customer and promote the product. Corrugated box has many qualifications forthem, low cost, save their product, strong, many sizes and many styles for make to order. In

location, they want to buy corrugated box from nearly their company that can reduce risk

from transport corrugated box to their factory, it effect to their production, and it easy to

order. And the quality of corrugated box, it effect to decision to buying, so Thai Industrial

Standards Institute Library (TISI), it is certificate the corrugated box. So it has three main

effects, qualification of corrugated box, location and quality of corrugated box.

1.93.9

4.1

4.7

5.7

8.7

10.8

12.5

13.3

13.414.8

30.8

Computor game

Softwares

games and gifts

Electricity and electroacoustics

Utensils and office

Booking services

Entertainment/Sport/Stationary products

Technology/Communication and photo

Food, drink and healthy goods

Booke-Ticket

Clothing and jewery

Product and Service


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3.3.3 Competitive Analysis

We used FiveForces model for analysis competitive that selling similar production our

company.( Michael Porter )1. Rivalry Among Current Competitors

In online shopping has many shop that sell product box, but each companies

set the price of box hasnt equal. Mostly companies focus online shop less than shop

of their sell, but we focus mostly online shopping and make lots of promotions with

online shopping more than competitor.

2. Bargaining Power of Suppliers

There are a lot of suppliers from Samutprakarn or near this province. There

can serve the production following my order. Moreover the price of production can belower, because we will order product box too much and then we cannegotiate about

price of production lower and lower.

3. Bargaining Power of Customers

The bargaining power of customer has quite high, because there are a lot of

Paper products companies at Samutprakran that sell similar product, but we can solve

this problem from good negotiation and offer promotion that difference other

company. Moreover our company has good location, and near industry that used

Corrugated box more than competitor.

4. Threat of Substitute Products or Services

From now, every industries they used Corrugated box that produce by paper to

transport, its lower cost and easily to find or use. It has Normal box paper, but cannot

substitute Corrugated box, because that box havent flexible or strong as same as

Corrugated box.Most industries used Corrugated box to transport their product from

point one to other point. The Corrugated box is good way to protection their product

without broken. Moreover this box is not expensive.

5. Threat of New Entrance

The Product box has not easy to entry competition, because each companies

that use Corrugated box. They will have regular customer and they dont want to

change their suppliers without New company offer good promotion greater than old

company.


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3.2 STP Analysis

Market Segmentation

Packaging segmentation

Market Segmentation of product box limited partnership is to provide type of

packaging that normally people in Thailand use for transportation, classifies by material of

packaging. In each types can separate into to group, there are online business (on website)

and non-online business (industrial, factory and etc.).

The product box product limited partnership is use the packaging segmentation to

analysis the packaging that normally consumers use in transportation. We divide the

packaging segmentation into pie chart for easy to understand and analysis. This pie chart is

show the percentage of packaging types. It has five segment that consist of 51.35% from

paper , 20.52% from metal, 14.61% from plastic ,9.91% from glass, 3.60% from other. There

are two group in each type of packaging; online business and non-online business.

Source: 2552

Target Market

The target market of product box limited partnerships, we analyze paper packaging

segment and focus on online business. The target market are online shop and retailer because

this target market is bigger than other and online shops are increasing in every year. This

group use corrugated box for pack their product to transportation.

Paper51%

Metal

20%

Plastic

15%

Glass

10%

Others

4%

Packaging Segmentation


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High PriceLow Price

More promotion

Lesspromotion

Paper Box Limited Partnership

DPS Limited Partnerships

PJ Box

Position Analysis

The product position of Product Box company have more promotion when compare

with others two company. But Product Box company use nearly standard price.


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3.3 Marketing Mix/4PProduct

- The Company sale corrugated box, thick box have 2 types:

1. Thick three layers (Single wall) have a paper layer to make for surface of box and

wave of corrugated, paper make a surface of box. It is popular to contain a general

product that have a middle weight or take it to pad and partition another side of box

beside it can increase thick of box.

2. Thick five layers (Double wall) its different from three layer. It is complex more

than by increase amount of paper to make pad and partition for protect and strength,

popular to contain product that have a high weight and its can bring to produce to

composition to increase the strength of box.


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Surface of box in two grades for the customer to use in their work as appropriate:

1. Paper grade KS or white paper focus on good image and high quality . It has a

strength and benchmark weight is 170 gram.

2. Paper KC is light brown paper, produce from recycle paper in 100 % to promote

about preserve environment and also look beautiful and strong, can place overlap

together.


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Price

The price is determinant the image for the goods so the company must set the price

follow the cost and profit of company, but the price should not set a highest than market

value and not lowest more than cost, because to keep image and quality of product to make it

worth to buy by the price ,make the price not highest than market value and not lowest if

lowest or highest too much, it will look this product is low quality so if you price is goods,

your customer will trust your brand and have a confident to purchase the product.

Price strategy

- Step 1 Search for the general price of competitor then we got the price of box eachcompany and they have difference price ,so we average price from price of each

product.- Step 2 After we have average price. We set the level of price up to size of our

product.

- Step 3 The price of our product have higher average price because our companyhave more promotion to promote our product, and then we can set price more than

average.

Retail price

Ready-Made Type 0 = 11 x 17 x 6 cm. = 4.7 Bath.

Ready-Made Type A = 14 x 20 x 6 cm. = 5.7 Bath.

Ready-Made Type B = 17 x 25 x 9 cm. = 7.7 Bath.

Ready-Made Type C = 20 x 30 x 11 cm. = 10.7 Bath.

Ready-Made Type D = 22 x 35 x 14 cm. = 14.7 Bath.

Ready-Made Type E = 24 x 40 x 17 cm. = 19.7 Bath.

Ready-Made Type F = 30 x 45 x 20 cm. = 22 Bath.

Normal Carton No.1 = 14 x 20 x 6 cm. = 4.3 Bath.







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Price of advertise in the internet

-cost for hire the programmer for create the website 3-4hundred thousand baht in the

first year.

-cost for rent the website from other server, if don't have own server website (depend

on population of the website that we rent)-cost of remain the website in the next several years around 50,000 baht and renewal

fees 5,000-8,000 baht per years

Place

Industrial Estate Bang Phli, province Samutprakan. So the company choose place to

establish the office is important in

Documents

Section 1 Seat 4:Paper Box Limited Partnership