Logistics and Business Project Feasibility Analysis - Ka Pao Ngai

Project Feasibility
“Ka-Pao-Ngai Restaurant”
Member
Presented
Dr. Suthep Nimsai
BACHELOR IN
AVIATION LOGISTICS BUSINESS MANAGEMENT
SCHOOL OF MANAGEMENT
MAE FAH LUANG UNIVERSITY
ACADEMICS YEAR 2016
©COPYRIGHT BY MAE FAH LUANG UNIVERSITY
Phetphailin Yammaneechai 5731210159
Manlika Udta 5731210180
Wisaruta Chaolaka 5731210201
Wissuta teeragerayut 5731210202
Akrachai Pairoj 5731210247
Kullathida sirisapwisan 5731210028

Table of Contents
Acknowledgement ............................................................................................................................................................. 1
Preface.................................................................................................................................................................................... 2
Organization review
Vision....................................................................................................................................................................... 3
Mission ................................................................................................................................................................... 3
Proposed business .............................................................................................................................................. 3
Business objectives.............................................................................................................................................. 4
Business Goals ...................................................................................................................................................... 4
Management team structure. .......................................................................................................................... 6
Activity flow........................................................................................................................................................... 7
Supply chain activity. ......................................................................................................................................... 7
Chapter 1 Industry analysis
External Environment Analysis (5 forces)……………………………………………………………………………………………................ 8
Competitors Analysis................................................................................................................................................……….. 15
Internal Environment Analysis (SWOT&TOWs)
SWOT analysis ................................................................................................................................................... 16
TOWs analysis...............……………………………………………………………………………………………………………………….. 18
Key Success Factors.......................................................................................................................................... 20
Chapter 2 STP analysis
Customer Segmentation (S) ........................................................................................................................................... 21
Target customer group from segment analyzing. (T)................................................................................................. 24
Market positioning (P)........................................................................................................................................................ 24
Chapter 3 Strategy
4Cs Marketing Plan............................................................................................................................................................ 26
Consumer............................................................................................................................................................. 27
Cost....................................................................................................................................................................... 28
Convenience…………………………………………………………………………………………………………………………………..….. 31
Communication.................................................................................................................................................. 32

Chapter 4 Financial analysis
Income forecasting ............................................................................................................................................................. 39
Demand forecasting ........................................................................................................................................................... 40
Income statement............................................................................................................................................................. 42
Investment valuation
Break even point .......................................................................................................................................... 44
IRR.......................................................................................................................................................................... 44
Payback Period ................................................................................................................................................ 45
ROI......................................................................................................................................................................... 45
Chapter 5 Emergency plan
Natural disaster ................................................................................................................................................................. 46
The outbreak with pork and chicken ........................................................................................................................... 46
Disease by basil leaves .............................................................................................................................................. 46
Over of customer demand in some month ............................................................................................................... 47
Secondary plan or Plan B................................................................................................................................................ 47
Appendix
Appendix A Organization overview................................................................................................................................ 50
Appendix B Industry analysis........................................................................................................................................... 57
Appendix C STP analysis ................................................................................................................................................. 60
Appendix D strategy.......................................................................................................................................................... 61
Appendix E Financial......................................................................................................................................................... 65
Appendix F Questionnaires.............................................................................................................................................. 77

Acknowledgments
We would like to thank you our lecturer, Dr. Suthep Nimsai, for his beneficial guidance
and motivation. He gave us the direction to find the useful information for complete this
project. Thank you for everything that you have done for us. Dr. Suthep Nimsai, we really
appreciate it and really thank you. We would also like to thank MR. AJ.Anvar Variskhanov for
special lecturer class by given a clearly information about marketing management and demand
forecast. We appreciate your kind support.
Finally, we would like to thank all authors who wrote and provided useful information
and statistics report that easily to understand.
1

Preface
Kao-pad-ka-pao is the one of the popular foods among Thai people, everybody familiar
with it and ever tries this before. Most of Thai people desire to have Kao-pad-ka-pao in
everyday life because it is the simple menu that everyone knows and rest of the reason is that
delicious! Moreover, Kao-pad-ka-pao is also the food which can consume by at any age and
gender. Including the benefit from the sweet basil garlic, pepper, which their benefits as herb,
help our body warm and protect us from get sick. And also, prevent the flatulence and
enhance our digestion.
From data analyzing questionnaire, students and staffs’ opinion in MFU decide to have
their meal be as Kao-pad-ka-pao 1 to 2 times a week within the MFU canteen, and to 42% of
the student and staff prefer to have Kao-pad-ka-pao as their meal 2 to 4 times a week. So, the
information shown that Kao-pad-ka-pao is very popular among the MFU student and staff too.
However, there some dissatisfied factors and their bad experienced consumption at MFU
canteen which are not delicious, the low quality of ingredients, unsanitary (there’s hair/insect
in their foods), wait too long to get the order, and also they did not get correctly as ordering.
So, this survey has shown that the consumer did not satisfy by the elder restaurant in the D1
canteen. They tend to want the new improvement of restaurant or the better on to response
their demand.
In conclude, our group can see some problem that need improvement and also have
opportunity to solve this problem. So, we desire to establish the “กะเพราไง” restaurant that
can react to the customer demand and serve Kao-pad-ka-pao to the customer want properly,
especially for consumer who really want and favorite the Kao-pad-ka-pao. We would like to
ensure that customer will received the sanitary and delicious dish with fast received and proper
prices, and serve customer correctly accord to their order.
2

Organization overview
1. Vision
Producing Khao-Pad-Ka-Pao which is clean and fresh including serve the fast ordering & fast
receiving the order. We would like to make consumer thinking about us in the first place of
Khao-Pad-Kra-Pao restaurant.
2. Mission
- Measuring and controlling in the every single process. Strictly to the procedure since procuring
the ingredient to serving delicious Khao-Pad-Kra-Pao to the customers.
- Create the new kao-pad-ka-pao, the new look or add some differentiated ingredient.
- Promote the new look of Kao-pad-ka-pao and good quality of our restaurant.
3. Proposed business
Rice topped with stir-fried hot basil or Kao-pad-ka-pao, it’s the popular menu among Thai
people. We want to create the new look of it in fusion style to open new way to eat ka-pao
for students and university’s employee and guarantee with taste, fresh and fast.
Business model canvas
3

4. Business objectives
Cook and provide the kao-pad-ka-pao to response the customer ideal thinking and
also provide the good service to enhance our restaurant.
5. Business Goals
5.1Business objectives (short term twelve months)
i) Have a various types of Rice topped with stir-fried hot basil, and continue develop
Rice topped with stir-fried hot basil savory sauce to satisfy customer.
ii) Average sale 400 plates per day.
iii) Promote store is well known by MFU students and stuff.
Indicator
(1) When people thinking of buying kao-pad-ka-pao for meal, they thinking to buy
from us first, 70% of them is enough.
(2) Profit up to 30% per years
(3) Our restaurant is well known among the students and staffs within the good
image.
(4) We could make the delicious kao-pad-ka-pao sauce which important to cook
the dishes and also impact to our business sustainable and image.
5.2Business objectives in long term over 1 year.
i) Expanding branches in front of Chiang Rai Rajabhat University.
ii) Delivery service within the Mae Fah Luang University and nearby.
iii) Rice topped with stir-fried hot basil savory sauce in bottle.
Indicator
(1) Increasing 10 % year over year from delivery service.
(2) Our restaurant is well known among people in Chiang Rai Rajabhat University.
(3) 5% of revenue come from sell basil savory sauce in bottle.
** More information in appendix A1: Layout and Ka-Pao-Ngai
restaurant
4

6. Management team structure.
In this project we’ll use Leader-Based structure; the leader-Based structure appoints one
member of the team as the project leader, who is a centralized decision making model,
whereby all decisions are made by the project leader.
1. Chef (cooker and owner)
2. Chef assistants
3. Order receiver
Responsibility
1. Chef or Owner
Making decisions about financial activities such as purchasing approval, accounting
management and management activities such as look over all activity in restaurant and quality
control. Moreover, His (her) responsibilities are cooking, preparing ingredients, checking material
day-per-day, purchasing order, control restaurant and cleaning.
2. Chef assistant
Chef assistant responsibilities are helping Chef to prepare ingredients, checking material
and cleaning.
3. Order receiver
Order receiver responsibilities are receive orders from customer, make revenue per day
report and cleaning.
**More information in appendix A2: responsibilities and qualification
6

Activities flown
Supply chain activity
7

Chapter 1
Industry analysis
1. External Environment Analysis (5 forces)
1.1 Bargaining Power of customer
 Customers buy low volume of products
 Customers well known the ingredients cost.
 Customers face few switching cost
 The products are undifferentiated and can be replaced with substitutes
 Customers have low income and are price sensitive
 Customers can cook or make meals by themselves
1.2 Bargaining power of supplier
 Many suppliers around MFU
 Indifferent of supplier’s product
 The possibility of the supplier integrating forward
 Suppliers concentration
 Low switching cost to an alternative supplier
1.3 Threat of new entrance
 Food shop business has low investment required
 Easy to set up business
 Low brand loyalty of customer
 Limitless resource not qualified expert staffs
1.4 Threat of substitute
 Low switching cost for customers
 Relative price of performance of substitute
 Customer switch to substitute service easily because substitute products are easy to buy from D1
cafeteria
1.5 Competitive rivalry between existing players
 Numerous players in D1 cafeteria area
 Player have similar customer target
 Cost and price are impacted by suppliers and customers
 There is not much differentiation between players and their products
 Barriers to exit are low
8

5 Force analyses
Forces and its factors Influence Impact Consequence
Bargaining power of supplier
Suppliers have low bargaining because; there are many suppliers
around Mae Fah Luang university.
+ H - Choose suppliers that can provide fresh raw material and
ingredient on time.
- Sign contract to guarantee raw material to be fresh in every lot.
Suppliers have low bargaining because indifferent of supplier’s
product.
+ H - If the products are indifferent between suppliers, we can threat for
the lower price or raise quality of product.
- Negotiate with supplier about maintain the quality of ingredient by
made an agreement of measuring quality of ingredient every time
before sending. If not, we’re going to change the supplier.
Supplier have low bargaining because suppliers concentration. + H - Use power of bargaining to reduce price of ingredients.
There is the possibility of the supplier integrating forward that
start a food shop by themselves.
- L - Establishing a unique brand. For example, staff responses to
the customer order immediately, improve customer
relationship and maintain the good taste.
Low switching cost to an alternative supplier. + H - Deal with many suppliers prevent the situation that when
some supplier can’t provide ingredients to our business.
- Finding the secondary supplier in case of
emergency/shortage.
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Bargaining power of customers
The most of customers buy low volume of products.
+ M
- Even they buy the low volume per person but if we look at
the total of sale there are parts of total sale. There are a lot
of bargaining powers of customer.
- We Need to improve our product/service, And also
maintaining the quality for good image and prevent the bad
gossip.
Customers face few switching cost. H - Create brand loyalty by collecting points or stamps
collecting to discount prices or exchange for fried eggs.
Customers well known about the ingredients cost. M - Ensure that we offer the product and service worth for the
prices and prices are reasonable
The products are undifferentiated and can be replaced with
substitutes.
(customer have many choice of food providers)
+ H - Setting the creative event to promote our business
- Create loyalty by using marketing plan.
Most of customers have low income and are price sensitive. H - Set reasonable price in each menu.
Customer can cook or make meals by themselves. H - Build confidence among customer that foods are safe to
consume like they make by themselves.
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Threat of substitute
Low switching cost for customers.
H
- contain the level of taste, quality of ingredients and
customer satisfy.
- continue improve the quality of product and know what
customer want, then try to meet their requirement.
- Build brand loyalty by have a point coupons for receive
special discount or special promotion.
Relative price of performance of substitute.
M
- Building the different between our product and substitute
product which clearly show to customer that our product can
satisfy them more than substitute products.
- Promoting the selling points which are taste of food, fresh of
ingredients, and fast to receive order.
Customer switch to substitute service easily because
substitute products are easy to buy from D1 cafeteria.
M
- Create brand loyalty and use marketing plan to promote,
attract customer, and make customers know about our
differences.
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Threat of new entrance
Food shop Business has low investment required. L - Try to make the shop is identity and hard to imitate, such as the
savory sauce that identity flavor.
Easy to set up business ( e.g. operation processes ,approval
process)
L - Create brand loyalty by giving the nice taste, high quality of
ingredient, and fast service.
Low brand loyalty of customer. M - Prepare promotions to boost sales volume and make a strange
new
menu all the time to make Customers do not feel bored in the
original menu.
Limitless resource: not qualified expert staffs. L - Always developing and improving the ka - pao savory sauce and
chef to make the tasty and identity savory sauce flavor.
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Competitive rivalry between existing players
Numerous players in D1 cafeteria area. M - Create a marketing plan to stand out more than the others
business, use differentiated strategy
Player have similar customer target. H - Uses differentiated to create the competitive advantage by make
the Ka - pao shop is made fresh, tasty and short time for waiting
the food.
There is not much differentiation between players and their
products.
H
- Brand image; our employees wear the same uniform.
- Provide high quality of ingredients.
- Provide clean and hygienic of foods.
Barriers to exit are low. ( e.g. low operation cost )
+ M - Avoid price competitive, try to use differentiated strategy to
compete such as taste, service.
Cost and price are impacted by suppliers and customers.
M
- Make a good relationship with suppliers by ordering the ingredients
from store that provide quality of ingredients and reasonable price.
- Improve food quality by use the good ingredients to make
customers feel the price is reasonable price.
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2. Competitors Analysis
Our competitors are all of food shops in D1 canteen, there have both direct and indirect
competitors here. The competitor’s competitive advantage are they have an experience and well
known of what are the favorite food of MFU student. Including, what are the cooking procedures
that can satisfy the customer, and they can provide affordable price that customer can affordable
to the customer. Moreover, competitors have their own loyal customers. So, there is a high
possibility that MFU student prefer to buys their meals from their own favorites more than new
ones.
2.1 Direct competitors
The direct competitor are restaurants that have Kao-pad-ka-pao in the strength of their sell
and just partial sell Kao-pad-ka-pao of their restaurant, which have Kao-Pad-Ka-Pao be similar to
our restaurant. And also having the MFU students and staffs as their customer segment. The real
competitor at D1 canteen have only 3 restaurants that are Halal food, Rungnapa made to order,
and Go rat carte food , In addition, the three main competitors have the various menu more than
20 menu to perceive the customer demand and they also have the experience to service the
customer and offering cheap prices. Moreover, they know how to cook very well and customer
familiar with their product and like its taste. However, the competitor decide to cut their cost by
use the low quality ingredient (to remain the same price of their dish), some of ingredients are not
fresh and clean. Because they don’t focus on preparing processes such as clean the
vegetable/meat before use that affect the quality of outcome, their product came to poor quality.
Then customers change their mind to consume at another restaurant.
2.2 Indirect competitors
Products that focus on the same target as us but their products are different from our
Kao-pad-ka-pao such as
 Khao Kha Moo Paed Riw (ขาหมูแปดริ้ว)
 Khao Kha Moo Hong Tae (ขาหมูห้องเต้)
 Montha Kitchen (ครัวมณฑา)
 Mae Somporn Rice with curry (ครัวแม่สมพร)
 Guay Teaw Nai Fwan (ก๋วยเตี๋ยวในฝัน)
 Jsaharos (เจ้หงส์รส)
 Krua Rode Saeb (ครัวรสแซบ)
** More details in appendix A3: Direct competitive & Indirect competitive
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3. Internal Environment Analysis
3.1 SWOT Analysis
Strengths
S1 The first specialized for providing kao-pad-ka-pao at D1 canteen in MFU
S2 New creative menu and matching ingredient of kao-pad-ka-pao
S3 Selecting the good quality of ingredient and equipment. To ensure the consumers’ health
S4 Fresh cook by order with fast cooking
Weaknesses
W1 Not several of menu because our restaurant just provide kao-pad-ka-pao menu.
W2 Can’t set the high prices.
W3 Limited space.
Opportunities
O1 High demand
O2 The menus are a favorite of most people in university.
O3 At D1, there hasn’t had the restaurant that only provide for kao-pad-ka-pao.
Threats
T1 Unstable demand
T2 There are have many competitors in the market
T3 The cost of raw materials varies according to the market fluctuation.
T4 Low profit during semester break
T5 Regulation are very strict about the material we can use and innovation of
restaurant.
**More details in appendix A4: SWOT Analysis
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3.2 TOW Analysis
WT
W1+T2
Adjust our menu for create the competitive opportunity whether it
is adding the value of food or create a new menu to make
customer aware the different between our restaurant and
competitors.
W2+T1
Find the breakeven-point between customer’s preference for
product price and the price that restaurant and gain a profit.
W3+T5
Efficiency management of limited capacity whether equipment
position, cooking area.
W2+T4
Have an efficiency demand forecasting to help management of
ingredients, control inventories and reduce the opportunity of
waste ingredients.
ST
T1+S1
Making value to our customer that ka pao Ngai is provided Kao pad ka
pao by specialized provider and really focus on to be close to perfect
kao-pad-ka-pao as consumer want. When we interested and want to
order kao pad ka pao, they will thinking about ka pao Ngai first.
T2+S3
We really careful about select good quality of ingredient, fresh
ingredient and clean. To compete with others.
T3+S2
We offer many menu of kao pad ka pao. Various creative menu. So,
customer can change their mind in any widely attractive menu.
Weaknesses Strengths
Threats

WO
W1+O2
Adjust our menu to meet customer preferences whether it is Ka-
Pao itself or its topping .Moreover we might need to set up the
special mane to attract customers by 1 time a week.
W2+O1,O2
From the fact that we can’t gain the revenue by set a higher price
but we can see the opportunity factors from O1 and O2 it mean we
can receive the revenue from the volume of sale ,so to receive this
opportunity we need to set up the marketing activity to build
customer base and attract customer.
SO
O1+S4
We can response the demand quickly.
O2+S3,S2
We use the fresh ingredient and good quality of ingredient to enhance
our sell and response to the large of demand in D1 canteen.
We provide many creative menus to the consumer who does love in
kao-pad-ka-pao. We use these varies menu to enhance our sell and
get the consumer intention.
O3+S4
We use fast services responds to enhance our position that we
provide the fresh dishes that made by order.
Opportunities

3.3 Key Success Factors
1. Make a products stand out and differentiate from competitors.
2. Quality of products
3. Establishing credibility is creating a sense of trust between store and customers.
4. Set-up appropriate distribution channel to sell to customers.
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Chapter 2
STP analysis
1. Customer Segmentation (S)
1.1 MFU Students (all of 4th years)
Characteristics
(gender and age of
customer segment)
Female 70% and male 30%
Both are 18 years old or above. Most of them are the first year students and live at dorm inside the MFU
Objective of consumption Consume the foods for live and want to have the delicious meal
Buying factors 1. sanitary
2. Cheaper
3. Fast delivery or get the foods
4. The customer perspective, they prefer the dishes that perceived values from kao-pad-ka-pao
5. The restaurant close to their classroom
6. Easy to access the restaurant
7. Many available seat
Customer behavior Mostly student that live inside the MFU dorm prefer to get their foods in the D1 canteen. And the important
reason that influence their decision to buy the foods from which restaurant are fast receive the ordering, close
to their dorm/classroom. Moreover, they suffer from the bad experience about their ordering, because
everybody have the different demand include the price of the foods.
Distribution Regularly restaurant at D1 canteen in MFU
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1.2 Staff and worker in MFU
characteristics University staffs which most of them work in MFU and have an office near or inside D1.
Objective of consumption Consume the foods for live and want to have the delicious meal
Buying factors
1. Cleanliness and hygiene in the restaurant
2. Prices are reasonable
3. The customer perspective, they prefer the dishes that perceived values from kao-pad-ka-pao
4. Quickness to order and receive their meal
Customer behavior  They’re not concern about the prices of meal.
 They prefer fast response and easy to order.
 They focus on cleanliness and quality of food.
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1.2 Other (Banker, Restaurant in D1 staff)
characteristics Employees such as banks, postman, cafes, desserts, and shop staffs.
Objective of
consumption
Consume the foods for live and want to have the delicious meal
Buying factors
 Near their workplace
 Easy to access the restaurant
 Prices are reasonable
Customer behavior
They focus on fast response and easy to order moreover they also concern about cleanliness and hygiene in
restaurant.
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2. Target customer group from segment analyzing. (T)
From 3 customer segments analyzing show that
1. The main customer target group is University students according to Thai
students 97 % and international students 3%.
2. The second customer target group is University staff following by criterion
below.
2.1. Market Growth Opportunities
From 3 customer segments analyzing. The main customer of Ka Pao Ngai restaurant is
MFU students. In addition the number of MFU students have still increased year by year. It
effect to trend of consumers still increase. So, food business at food center is growing in
customer demand.
2.2. Price competitiveness
Ka Pao Ngai restaurant has low cost operation related to good location that located in
high consumer demand area and low cost of rental. Then, It make our restaurant has high
capacity to compete with other in term of price competition. We can offer low price to
customers related to most of MFU students demand that prefer low price to make decision to
order food. So, the main customer target is MFU students from other customer segment.
Because of in the market has more competitions both of direct and indirect competition
including to the same level of selling price or compete price. It make customers have more
choose to make decision to order and no need to order food from only our restaurant.
***More detail in appendix C1 : Target selecting (T)what when why
3. Market positioning (P)
The main position of Ka Pao Ngai restaurant is quality and reasonable price by choosing
high quality of raw material, using fresh and clean ingredients, and until cooking by our special
secret technique to serve the delicious Kao-pad-ka-pao to customer. Moreover customer can
modify taste or order Kao-pad-ka-pao by style that you want to eat. Our restaurant provide
fast service from you order till you get your order. We focus on customer segment would love
to eat Kao-pad-ka-pao that need tasty, clean, fast and reasonable price.
(More detail in appendix C: STP analysis)
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Chapter 3
Strategy
To entrance in the market, The first strategy company focus on customer strategy
to gain more market share by show customer that our Kao-Pad-Ka-Pao restaurant use good
quality both of ingredient and raw material , delicious, clean, fresh, easy to order, and fast
service. Moreover, our restaurant has a various menus and customer can order Ka – Pao
menu in their own style. Our main customer segment is all of 4th
years MFU student and
second customer segment is staff and worker in Mae Fah Luang University. Our restaurant
has a good operation management to control every activities flow to remain the quality of
our Kao-Pad-Ka-Pao menus since the first step is our restaurant focus on the cleaning
process, preparing raw material, cooking, and serve to customer. Moreover, our restaurant
still get clean and good taste certification from Ministry of Public Health to give reliability
to customer that our restaurant serving a good quality of foods.
The second strategy is price strategy to set price a little bit higher than the current
market price to show our brand image that we are provide premium products and services.
The third strategy is distribution channel. Our restaurant provide only direct sell at D1
canteen (in short term strategy) because of there are the main canteen in Mae Fah Luang
University that has a lots of students coming to buy foods. Another, The fourth strategy is
promotion. Our restaurant focus on advertising on social media to promote our product
because of most of the customers can use internet and everyone use smartphone. We see
that advantage is the smart way to promote our restaurant directly to customer.
Moreover, advertising on social media is the worldwide communication channel to
make everyone know our restaurant and low cost to promote. Furthermore, our restaurant
not only promote on social media but we promote on announcement board at dormitory
or news announcement board to motivate and attract customers to buy our product.
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4Cs Marketing Plan
1. Consumer: Consumer Wants and Needs
Objective
To respond the customer need among consumers in Mae Fah Luang University as
much as possible by focusing on customer need.
How to do?
Our restaurant focus on the needs of customer since the first step that customer come
to the restaurant, ordering process, and until the customer receive their ordered. We always pay
more attention on every steps to make customers feel very satisfied on our service and product.
So, our restaurant serve Kao-pad-ka-pao menu that has unique to meet customer need. We will
represent Kao-pad-ka-pao menus are very delicious and full of quality that make customer
recognize when they want to eat Kao-pad-ka-pao and choose our restaurant is the first choice.
Moreover we create brand image by:
1. Slogan
Happy meal Happy Ka Pao Ngai
2. Logo
Show Kao-pad-ka-pao image on the middle of logo that make everyone see and
know that is Kao-pad-ka-pao restaurant.
**Picture descriptive in appendix D: strategy
3. Product
Delicious, Clean, Good quality with reasonable price, and have taste standard.
Moreover customer can create their own Kao-pad-ka-pao dish and order their own
flavor of Kao-pad-ka-pao
4. Service
Every employees are well trained and willing to help customer. Provide fast
service on every orders.
5. Brand Personality
For people who prefer Kao-pad-ka-pao that fresh, clean, good quality,
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2. Cost: Cost of Appreciation
Objective
To provide reasonable price to every segment of customers among Mae Fah Luang
university. In term of medium/long-term, If the variable cost (such as ingredients and fuel)
derived higher from the economic criteria, we will use the PSM tools again to make sure that
do we have to change our prices per dish or not. Either cost go down, we would like to increase
the quantity of foods for customers.
Setting price factor
Using Price Sensitivity Measurement (PSM) to define the suitable price
The four questions are as follows, with no adaptation for any specific product:
(Only Ka pao not include the extra side dish)
Product is too expensive at 45+
Product is so inexpensive at 15
Product is getting expensive, but you still might consider at 30-40
Product is a bargain - a great buy at 20-30
On the basis of the resulting intersecting points, four price points can be determined:
Optimum price: This is where the consumer’s resistance to purchasing is at its
lowest.
Indifferent price: The smaller the difference between this price and the optimum
price, the greater the customer’s price sensitivity. We use this 30-35฿
Lower price limit: If the price were set below this threshold, it could harm the
company’s image.
Price upper limit: If the price is above this limit, the number of people who see the
product as too expensive exceeds the number of those who do not think it is
expensive.
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Figure: Price Sensitivity of our customer in the price selling of
meal in D1 canteen
Interception Price(baht)
Indifference price (IDP)
34
Optimum pricing point (OPP)
28
Point of marginal cheapness (PMC)
23
Point of marginal expensiveness (PME) 37
Figure: Price Sensitivity Measurement
The acceptable price range is between PMC and PME which are 23-37 baht. And
the most appropriate price is PMC that 23. We are setting the price as 25 baht and 30 for
the dish that more a bit cost such as Ka-Pao-Moo-Dang.
Cost factor of product
We assume that the average selling prices is 30 baht per dish by using the all of
ingredients for calculation. The total cost per dish is 24.4 baht which are the directly cost (meat,
sauce, etc.) 19.9 baht and in directly cost 4.5 baht. But this is just the average cost, we need to
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think about people who order the additional side dish or other menu that price more than 30
too. From the PSM, we set the price at 25/30 baht variable according the menu. Because our
business get the profit and still be the proper price to customer preferences. Including, we can
continue the business.
Competitor’s price factor in current market
We compare the regular price in D1 canteen. Mostly restaurants price their foods per
dish at between 20-30฿: rice and curry restaurant usually price per dish at 20-25฿ and Carte
restaurant price per dish is about 25-30฿. For comparing, ka-pao-Ngai set the price as the same
level as Carte restaurant which is the standardardized price of D1. But different level from the
rice and curry restaurant that cause from the cost operation. So, we have to purpose our position
that we easy to order, quick customer response and especially using the fresh ingredient and
clean sanitary.
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3. Convenience: Convenience to Buy
Objective
1. To reach customers target.
2. To consider of customer convenience for access our products
3. To select the convenient channel for customers
The factor of convenience to buy
1.) Selection the convenient channel for customers.
In MFU consist of 6 place that we can do a business are D1, E1, E2, C5, M Square and
Lumduan canteen. From the total of 20 participants completed the questionnaire shown that
16 out of 20 participants or 80% prefer to have a meal at D1 and 15%, 5% at E2 and E1
respectively.
The place that customers prefer to have their meal
From the pine chart above it clearly see that customers prefer to have their meal
at D1 accounted for 80% of participants and the reasons that they choose are ease of access
to store and close with lecture building and dormitory, convenient, and various type of food.
So, we decide to place Ka Pao Ngai at D1 canteen because so many students come to this place
for their meal. Especially, the first year students because it placed between their class and dorm
and closely. In addition, D1 also next to the MFU library, the same place at some classroom
and near the main study building.
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2.) Expanding the distribution channel to reach customers target.
Form the survey shown that convenience to access stores is one of the top priority for
customer's purchase, so we need to adapt our distribution to meet this need of customers by
expanding the channel to access restaurant. .To expanding the channel we not only serve
customer within D1 but also provide a delivery serviceto make a convenience for the customers
to access the restaurant.
4. Communication: Communication that Connects
Objective:
To show the new look of Kao-Pad-Ka-Pao to the customer. Especially, in the main targets which
are MFU students and staffs and workers. We divided plan into 3 term; short-term, medium-term, long-term.
Short-term:
Advertise our new restaurant and promote promotion through social media Include announcement
boards at dormitory. And also, customer can give us feedback or make a relation with customer through social
media.
Medium-term:
Focus on secondary customer target after success in main customer target which are staffs and
workers. Still use the internet for public relation and announcement. In addition, we set the lucky draw
monthly for the winner that can have special menu for free.
Long-term:
We would like to set and keep the good image of us. And, keep the good relation with customers.
The main target that we focus on promote them the marketing.
1. MFU Students (all of 4th year’s students)
2. Staffs in MFU such as professor.
3. Others such as workers around MFU, clerk or visitor
Ka-pao-Ngai decide to use the strategy that combine our strength and value proposition together and
then communicate to the customer. We show the new look of Kao-Pad-Ka-Pao which are not only delicious
but Ka-Pao-Ngai also make sure that customer will receive the Kao-Pad-Ka-Pao that made from the good
ingredients plus by good intention of our chief. Especially, we really concern about sanitary of every dish. So,
we transfer the information to customer that every process of cooking, we make it clean and careful about
fresh ingredient as possible as we can do. Customer will perceive the new experiences of Kao-Pad-Ka-Pao
that different from the Carte restaurant and rice & curry restaurant. We make it fast, make it fresh, and easy
to order.
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Communication plan in 3 term; short-term, medium-term and long-term
1. Short term: Make people know and attract the customer to try our foods
Short term plan are make people know the ka pao Ngai restaurant and attract the
customer to try our foods. Plus, make people know us as the unique restaurant and remember
our brand image. Because in the open term, we have not recognized already. So, communication
and advertise are so important and the direction of our image is so important. We want to make
people know us as the ka-pao-Ngai restaurant which make the dish with full ingredients and fast
receiving the order.
1.1 Advertisement
Announcement board: We would like to advertise ka-pao-Ngai through the announcement
board. Such as announcement board such as at MFU dormitory, canteen, or restaurant around
Mae Fah Luang university ( Nung lan cafe, Nom na mor cafe, or So Suki restaurant) for promote
our ka pao Ngai restaurant among people in Mae Fah Luang university that now we open ka pao
Ngai restaurant at D1 canteen. Our restaurant serve tasty Ka - Pao menu that different than other
restaurant in good quality, customer can design their own order, and fast service with reasonable
price.
The example of Announcement board paper.
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Social media: we would like to make an advertisement by advertise through the
internet; social network. Today, internet is the easier way to access and can get any information
so quick. Moreover, in the Mae Fah Luang university, there are private group on Facebook which
special provided for MFU students and staffs (mainly at students) to communicate. So, we
ensure that advertise the Ka Pao Ngai restaurant through the internet is the easiest way and also
saving our advertised cost.
1.2 Public relations
Social media Public relation
We have our own formal page on Facebook which the same name as our restaurant’s
name called ‘Ka Pao Ngai’ announce any information and advertise in our restaurant for the
customer who really want to access us closer or people who really want to follow up our
promotion. Including, they could give compliment/feedback to us. This will make us
communicate directly to the customer. Knowing their want and improve our business.
Advertisement
We would like to make an advertisement by advertise through the internet; social
network. Today, internet is the easier way to access and can get any information so quick.
Moreover, in the Mae Fah Luang university, there are private group on Facebook which special
provided for MFU students and staffs (mainly at students) to communicate. So, we ensure that
advertise the Ka Pao Ngai restaurant through the internet is the easiest way and also saving our
advertised cost.
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Pic : Facebook fan page in browser
Figure: Facebook fan page in Facebook application and comment from customer
1.3 Promotion
In order to motivating to customer demand in second week of every month. We will
provide special ka-pao menu to attract customer during 1-2 weeks for improve our
interestedness.
2. Medium term: focus on secondary customer target after success in main
customer target.
Now we in the period that restaurant has stabled among primary customer segment and
then we want to expanded market segment into secondary customer segments by
showing secondary customer segment that our restaurant do care about clean, fresh ,and
quality of ingredients and raw materials than other restaurant since receive raw material,
cooking, and serve to customer. Moreover our restaurant do care about customer need is
customer can modify their own order to meet their own flavor.
2.1 Advertising and public relations
Our restaurant is still promoting on announcement board or Facebook page and motivate
selling by monthly promotion. Moreover customer can receive about new menu and promotion
news on Facebook fan-page that update every day to make customers are interested and want
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to eat Ka Pao menu. It’s very convenient channel to promote our restaurant to old customer
and new customer among Mae Fah Luang University because everyone use mobile phone.
Furthermore advertising on Facebook page is making new customers know about our restaurant
in deeply thru the Facebook page review from customer to show how our restaurant different
than competitor both of product and service by ex - customer experience. Besides we will
provide code discount on Facebook fan-page to motivate sell and create customer loyalty.
2.2 Sale promotion
Set the lucky draw in every month that the winner free to have one special menu
from our restaurant.
3. Long-term: To build the brand image for restaurant
We will keep our unique taste and quality of Kao-Pad-Ka-Pao and developing new menu
all the time. Whom did ever taste our Kao-Pad-Ka-Pao will remind the taste of it and then make
a rumor. Moreover, we will add new branch with same taste and quality.
3.1 Advertising
Create participation between customers by activities in our webpage.
3.2 Promotion Strategy
Promotion: we decide to enhance our business by set the simple promotion to
attract the people.
**More detail in appendix D : strategy
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January February March April May June July August September October November December
C1
Customer
survey our
consumer
again
Unique to meet customer need. That focus on the needs of customer and pay more attention on every steps to make customers feel very satisfied
Improve our restaurant by the feedback from customers
C2
Cost
Price Sensitivity Measurement (PSM) to set the price
C3
convenie
nce
Provide delivery service Provide delivery service
Directly Ka Pao Ngai store at D1 canteen
C4
Communi
cation
Promote our restaurant
by use
- announcement board
- Facebook
Provide
special
ka-pao
menu
Provide
special
ka-pao
menu
Promote our restaurant
by use
- announcement board
- Facebook
Provide
special
ka-pao
menu
Use formal page Facebook to announce any information and advertise and also the channel to receive compliment/feedback from customer
Set the lucky draw in every month that the 10 winner free to have one special menu from our restaurant.
Cost 300 300 650 550 550 300 200 300 650 650 550 400
Total cost 6,050 per year
 Advertising cost; Facebook fanpage, poster = 100 baht/month
 Cost of delivery (Only within MFU)= 350/month
 Cost of lucky draw = 200/month
 Servey cost = 200/times
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Chapter 4
Financial analysis
1. Income forecasting
 finding year growth rate by used 2014 data at the base year
Year
Quarter growth rate Year growth rate
2020
First quarter = 68.50%
Second quarter = 57.23%
Third quarter = - 40.22%
Fourth quarter = - 5.17%
0.5541%
2021
Second quarter = 58.34%
Third quarter = - 40.54%
Fourth quarter= - 7.51%
0.5474%
2022
Second quarter= 57.23%
Third quarter= - 40.35%
Fourth quarter= - 4.97%
0.3580%
From the table above in Quarter Growth Rate show that in third quarter has a minus of
percent growth rate, it's because during third quarter (Jun-Aug) is Summer Session at MFU
University ,and its effect to decrease in customers demand.
We use Compound Annual Growth Rate method to find the %change of our profit because
our information is not too variable and, the information is likely stable. So, we can know the
trend of our restaurant which increase or not. As the table above, the Compound Annual
Growth Rate of year 2020, 2021 and 2022 are 0.5541%, 0.5474% and 0.3580%, respectively. It
mean that our restaurant tend have more and more profit. And the profit continually growth
up according to the growth rate.
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2. Demand forecast
Ka-Pao-Ngai restaurant started the business since 2017 on January. So, demand
forecasting can only made in 2020 and so on because we need to accumulate the data’s for 3
years to use as a demand forecasting’s calculation base.
We use two method in Demand forecast (unit)
1. Moving Averages: to calculate per year
2. Seasonal Variations in Data: to calculate per month
The result as shown below
Moving Averages for year forecast
Seasonal Variations in Data for month
Month
Forecast
2020 2021 2022
Jan 9967 9988 9971
Feb 12180 12206 12185
March 9717 9737 9721
April 9233 9253 9237
May 9667 9687 9671
June 8250 8267 8254
July 8367 8384 8370
August 10633 10656 10638
September 13733 13762 13739
October 12933 12961 12939
November 13517 13545 13522
December 7100 7115 7103
total 125297 125562 125350
Years Forecast demand
2020 125297
2021 125562
2022 125350
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Comparative table in Demand forecasting year 2020-2022
As the graph above, sale unit has move according to the seasonal because of summer
break and break during the December and January. According to the table, the highest sell per
unit is between September and December which are peak period of the year. The sale (unit)
reach to 13000 dishes because of new comer students. And the another reason, D1 is such a
center of community, The canteen near the library and students usually come to searching
books, tutorial and do their assignments. Besides, low season is on summer break and December.
Because there are a few student still be in the Mae Fah Luang University, most of them already
went home for resting their education. But the D1 still have the few amount sale unit because
of new coming student’s intensive English program. So, December is the month that have the
lowest sale units.
**More details in appendix E5
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
2022 9971 12185 9721 9237 9671 8254 8370 10638 13739 12939 13522 7103
2021 9988 12206 9737 9253 9687 8267 8384 10656 13762 12961 13545 7115
2020 9967 12180 9717 9233 9667 8250 8367 10633 13733 12933 13517 7100
DEMAND FORECASTING(UNIT)
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3. Income statement
Yearly
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Monthly
* More detail for cost of goods sold per dish in Appendix E1
** More detail for cost of goods sold per month in Appendix E2
*** More detail for capital investment in Appendix E3
**** More detail for Fix cost/variable cost in Appendix E4
***** More detail for interest calculation in appendix E6
******* More detail for income calculation in appendix E7 : Income statement
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3. Investment valuation
1. (Break-even point) per years
𝐵𝐸𝑃฿ =
630429.96
𝟏 − [(𝟏𝟗. 𝟖𝟖 + 𝟏. 𝟎𝟓 + 𝟎. 𝟐𝟒𝟖 + 𝟎. 𝟐𝟕)/𝟑𝟎]
= 2,212,034.94
𝐵𝐸𝑃𝑥 =
630429.96
30 − (0.248 + 1.05 + 0.27 + 19.88)
= 73,717.25
** More detail in appendix E10: Break even analysis
2. IRR (Internal Rate of Return)
Information Values(Baht)
Initial cost of investment -250,000
Net income's 2017 435,610
IRR (values) 180%
Breakeven point per unit = 73,717.25 ≈ 73,718 𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
Breakeven point per baht = 2,212,034.94 ≈ 2,212,035 𝑏𝑎ℎ𝑡 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
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3. Payback Period
Formulation
Cash flow per period
Net income per year
Average cash flowyear Cash flow
2017 435610
(435610+420565+583196+584141+586477+584731)/6
= 532453.3333
2018 420565
2019 583196
2020 584141
2021 586477
2022 584731
As the result, 𝑝𝑎𝑦𝑏𝑎𝑐𝑘 𝑝𝑒𝑟𝑖𝑜𝑑 =
250000
532453.3333
= 0.46952
Therefore, its mean in this project will have payback period is 5 months and 20 days.
** More detail in appendix E9 : Payback period
4. ROI (Return on investment) base year 2017
Formulation
**More detail in appendix E8 : ROI (Return on Investment
ROI = 174.24%
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Chapter 5
Emergency Plan
1. Natural Disaster
The major natural disasters in the Northern of Thailand include smog and flood. This
could result in damage to agricultural produce. By those who sell the inputs of the restaurants,
that is the merchants who sell fresh vegetables and meat in Chiang Rai. As a result, it is
impossible to bring fresh vegetables and meat that have good quality, fresh, clean, and safe to
sell to the restaurant.
Prevention and Solution
Because the natural disasters are things that the restaurant cannot be predicted. Therefore,
the restaurant must always keep fresh vegetables and meat prepared to be available for use in
the event of an emergency. And if the natural disaster passes, the restaurant is ready to help
the merchants to have more income.
2. The outbreak with pork and chicken
Prevention and solution
If the news is that the animal was an outbreak at that period. The restaurant must buy
meat from the store that guarantees the clean and safe for customers. And labeled that this
restaurant meat-free disease.
3. Disease by basil leaves
The main diseases in basil leaves are Leaf blight, fusarium wilt, Spot disease, and Yellow
leaf. These diseases cause of Fungus and occur in the rainy season. There are also main pests
such as Trips, Aphids, and Measuring worms. The insects can also cause the disease as well.
If the restaurant knows that basil is a disease outbreak in that period. It must be
changed to buy from the merchants that confirms that disease-free, insect-free and
non-toxic. Or buy the basil leaves from the store that guarantee the clean and safe for
customers.
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4. Over of customer demand in some month
When over of customer demand is occurred we already back-up some of materials for
respond to customer demand. Moreover, the materials are easily to get if we ran out of it then
we can buy it instantly.
5. Secondary plan or Plan B
If Ka-Pao-Ngai would not go well, we still open the restaurant but provide the new menu
and renew process at the other location. And also, we have to decorate our shop by ourselves
and spend the money for some equipment like seat, table, and some technical facilities. We
would like to open the restaurant that sell the compromised dish by offered the choice of curry
& base sauce selection and consumer can customize their meat, rice, some ingredients and
level of spicy with the easy way to order. We will located at behind the Chiang Mai University
which have a lot of students and local people more than the old restaurant. The reason for
located near the Chiang Mai University because of high demand in that area, and we want to
target as CMUs’ students. At the same time we can also attracted our meal to the some tourists
who would like to go to DOI Suthep or travel around Nimman.
In the detail, we provide the curry & sauce which are Ka-pao sauce, green curry, curry
paste, Chili Paste, Tom yum chili paste, Oyster sauce, Suki, Drunken and Tomyum, etc for
customer decision. Moreover, consumer can decide their dish that not only curry&sauce but
also rice type which are brown rice, white rice, fried rice, spaghetti and instant noodle. And
also free to customize the ingredient such as adding sausage, deep fried chicken and bacon. In
addition, they can manage their taste such as more spicy or get rid of garlic.
In term of financial, because of open the new restaurant, we must spend the money
to rental which expensive than D1, hire more staffs, and decoration, etc. Additionally, we have
to loan the more money from bank for investment. Moreover, we have to do the renew plan
for inventory and ingredients stock according to new demand. Furthermore, forecast is
necessary to remake.
In term of our strategy, we focus on rapid response to the customer and customer
customization on menu, plus well service from the staffs (smiling, service mind, empathy). We
provide the new look of ordering paper for easier ordering and can more satisfy customer
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want. Including, we would like to attract the people to come to our restaurant by modern
decoration (students like take a pics) likes Oh-kajuu, but not the same as that restaurant
because we have to concern about the cost.
In term of advertisement and communication, we still use the social media which is
Facebook by commit to the CMU group and promote our restaurant existing and promotion.
And also, create our restaurant page for provide information and communicate with customer
as same as the old plan. So, we will know about feedback and adapt our new business to the
most customer satisfaction.
Figure : Business canvas for plan B
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Appendix: A Organization overview
Appendix A1: Layout and Ka-Pao-Ngai restaurant
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Appendix A2: table shown the staffs responsibilities and qualification
on recruitment
Responsibility Salary Qualification
Chef
(cooker
and
owner)
 Cooking
 buy ingredients
 co-work with the chef
assistant
 do some finance
17,000  Female / Male
 Age 20 - 40 years old
 Thai nationality
 Minimum of two years’
experience in chef role.
 Chef certificate
 No Body operation
 Patience
 Expert in Cooking
 Able to multitask in a fast
paced environment.
 English and Thai
knowledge
Chef
assistants
 Prepare the ingredient
 recording the number of
stock or reparation
 co-work with order
receiver and conduct
the customer
requirement to chef
10,000  Experienced at working in
the restaurants as chef or
chef assistant will get
advantage
 Honest, patient and have
customer service mind
 Good at managing time
 Have basic skills of
cooking
Order
receiver
  Receive and respond to
the customer
 Given dishes accord the
order
 Co-work with the chef
assistant
 receive/change the
money
10,000  Patient, honest and have
service mind
 Preferable who can
speak English and
Chinese
 Female/Male
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Appendix A3: SWOT Analysis
SWOT Analysis
Strengths
S1 - The first specialized for providing kao-pad-ka-pao at D1 canteen in MFU
Even if D1 canteen has many restaurants in there, but there hasn’t had the store that
provide specialize of kao-pad-ka-pao ,so our store is the first specialized for providing kao-pad-
ka-pao at D1 canteen.
S2 - New creative menu and matching ingredient of kao-pad-ka-pao
We decide to added value to our products by create the creative menu of Kao-pad-ka-
pao and the new one that popular in another area/countries. To attract the customer and
provide the new look of Kao-pad-ka-pao
S3 - Selecting the good quality of ingredient and equipment. To ensure the consumers’
health
We use the good quality of equipment’s. To make sure that there is no chemical
composition from cooking equipment that can harm the consumer health. And also, we select
the good quality of ingredients to cook for customer which fresh and Contaminant.
S4 - Fresh cook by order with fast cooking
Our restaurant won’t prepare finished dish in advance, so, it can guarantee that customer
are going to receive their meal fresh every time they make an order.
Weaknesses
W1 - Not several of menu because our restaurant just provide kao-pad-ka-pao menu.
Ka-pao-Ngai restaurant only provide the Kao-pad-ka-pao menu. Whether we have a lot
of creative ka-pao menu. But in comparison, we have less choice for customer than other
restaurants.
W2 - Can’t set the high prices.
The restaurants within D1, they set the price very low by the 2 side dish topped on the
rice just 20 baht and Cooked to order dish just start at 25 baht depend on the menu. So, Ka-
pao-Ngai restaurant cannot set the higher price because we has the price pressure from the
competitors.
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W3 - Limited space.
According to we have limit cooking space. So we have limit in employee's work or
limited in area management.
Opportunities
O1 - High demand
D1 canteen located near the student dormitory which are F1, F2, F3 and F4. And, another
influence the MFU rule that exhibit student to bring the motorcycle to university. This is the
popular canteen that students who live in campus mainly come to get foods. Moreover, the
canteen even near the classroom and library includes very easy to come. So, there are a lot of
demand here.
O2 -The menus are a favorite of most people in university.
From survey shown that Ka - Pao menu is the popular menu among MFU students
moreover Ka - Pao menu is the first choice for some people when they have no idea to eat. So,
it is our restaurant opportunity to attract that customers group.
O3 - At D1, there hasn’t had the restaurant that only provide for kao-pad-ka-pao.
In D1 canteen there hasn't had any restaurant that focus on selling kao-pad-ka-pao.
Moreover, their Kao-pad-ka-pao hasn’t met the need of customer whether its taste, quality of
ingredient and so on, based on the questionnaire. Thus, this is an opportunity of ours restaurant
to full fill those gap and gain market share from this.
O4 - there are many Myanmar labors around here in term of border of the country. So,
cheaper labor cost
Chiang Rai located near the border between Thailand and Myanmar. So, there are many
Myanmar people move to work in the Chiang rai that made our restaurant have the cheaper
labor cost.
Threats
T1 - Unstable demand
According to our restaurant located in Mae Fah Luang university. The main customers
are students and they have different break time. Then, we can’t predict the exact demand.
Moreover, in the university holiday can effect to demand decrease up to 50%.
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T2 - There are many competitors in the market
There are many restaurant both of elder restaurant or new entrance those who have
experience to run the business. Moreover, consumer also have the favorite restaurant in their
mind and get foods from that place regularly. So, there are some barrier for us to establish the
ka-pao-Ngai restaurant. Although, we have many creative menu of Kao-pad-ka-pao but there are
a few choice for customer when compare to another restaurant menu.
T3 - The cost of raw materials varies according to the market fluctuation.
Price of raw material is uncertain according to demand and supply in the market, gasoline
factor, disaster, other factor.
T4 - Low profit during semester break
In the summer school holiday during small break in winter (about 2 weeks) and in May
to the middle of the August. It is not only effect to our demand decreased but also decreased
in profit.
T5 - Regulation are very strict about the material we can use and innovation of
restaurant.
The MFU restriction for those who want to operate the restaurant in D1 canteen is too
strictly. Including, some rule that limited our action in business. For example, they exhibit some
machine and electronic equipment, exhibit to paint the wallpaper even it dirty or peel.
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Appendix: B Industry analysis
Appendix B1: Direct competitive & Indirect competitive
Direct competitive
All of them are province Thai A la carte or one dish meal, their products are quite similar as ours
restaurant ,such as Fried basil leave with (pork, squid, shrimp, chicken, meat, crisp pork) on rice and have the
various menu more than 20 menu to serve customers.
 Halal food
 Rungnapa made to order
 Go rat carte food
Indirect competitive
 Khao Kha Moo Paed Riw
Their products are steamed chicken with rice, stewed pork leg on rice and fried chicken with
rice
 Khao Kha Moo Hong Tae
Their products are steamed chicken with rice, stewed pork leg on rice, stewed chicken on
rice and fried chicken with rice
 Montha Kitchen
Their products are rice and curry, such as Tom Yum Mushroom, mixed vegetables in oyster
sauce, Chicken Green Curry, Jelly noodle soup, Chicken and galangal in coconut milk soup and
etc.
 Mae Somporn Rice with curry
Their products are rice and curry, such as Chicken stir-fried with ginger, Fried Fish-paste balls,
Norther style chili dip, Spicy minced pork and etc.
 Guay Teaw Nai Fwan
Their products are noodle such as regular noodle or Tom yum noodle (Thai style noodle).
 Jsaharos
Their products are clear Soup with Congealed pork blood
 Krua Rode Saeb
Their products are traditional foods of Northeastern such as Papaya salad, Roast chicken and
Spicy
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Table shown direct competitors
Image Restaurant Type of product Price
GO RAT Thai ra chate 20-35 Baht
Rung napha Thai ra chate 20-35 Baht
Halalfood
Halal food and some menu
of Thai ra chate restaurant
20-35 Baht
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Table show indirect competitors
Image Restaurant Type of product Price
Mae Som Porn Combo Plate 20-30 Baht
Kua Mon Ta Combo Plate 20-30 Baht
Jay sahros
Noodle, Stewed pork soup with
morning glory and bean sprout 20-30 Baht
Guay Teaw Nai
Fan
Noodles restaurant 20-30 Baht
Kao Ka Moo Pad
Riw
Stewed pork leg on rice, Rice
crispy pork, Red pork over rice,
Chicken with sauce over rice
20-30 Baht
Ka Moo Hong Teh
Rice with fried chicken, Rice with
grilled chicken, Rice with stewed
chicken
20-30 Baht
kua rod sab E - San food 20-30 Baht
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Appendix C : STP analysis
Appendix C1 : Target selecting (T)what when why .....
Students workers staffs
Who
The group of people who want to get their foods quickly
before the class. And also, they are the large group of
customer of ka pao Ngai restaurants in term of their existing.
- As professors & visitors in the MFU.
- And the other (worker who work at D1 canteen or
else), they just get D1 because of convenient to
them and not much care about dishes as students
and professor. But they also requires the regular
things like cheaper prices.
What
They quite sensitive to the sanitary of cooking, easy to order,
quantity of ingredients per dishes and cheaper prices.
- Professors & visitors: they did not much mind as
the prices per dishes like students. They really care
about sanitary, tasty foods and good quality of
ingredients. Workers: they focus on cheaper prices
and quantity of foods
Why
The number of students is the most number of people in MFU.
And they also the large segment who come to the D1 canteen.
So, students are the main customer segment of our business.
- We not only welcome the main customer segment
but even with the staffs. To increase our sale and
service anyone. Whose know? The next customer
target can be staffs or anyone.
Where
At D1 canteen and deliver at their dorm(within university)
during exam
-At D1 canteen and deliver at their dorm(within
university) during exam
When
- The customer can buy our foods during 6.00a.m.-20.00p.m.
(Same as delivery) every day. And break according to the
agreement with university.
- Students come to our shop differently time according to their
free time and their class timetable.
- The customer can buy our foods during 6.00a.m.-
20.00p.m. (Same as delivery) every day. And close
according to the agreement with university.
- Students come to our shop differently time
according to their free time and their class
timetable.
How
We bring the opinion of participants who experienced order
Kao with the kao-pad-ka-pao from restaurants in D1 and they
told us what they want, need and other requirements. So, we
would like to introduce the new look of kao-pad-ka-pao as we
details as earlier. Including, make advertisements and
promotions for attract the customer as details in marketing
strategy. And we add up some idea such as creative menu of
ka-pao and ka-pao delivery during examination
- We bring the opinion of participants who
experienced order Kao with the kao-pad-ka-pao
from restaurants in D1 and they told us what they
want, need and other requirements. So, we would
like to introduce the new look of kao-pad-ka-pao as
we details as earlier which under the name of ka-
pao-Ngai restaurant.
Including, make advertisements and
promotions for attract the customer as details in
marketing strategy. And we add up some idea such
as creative menu of ka-pao.
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Appendix D : strategy
Figure 1: Ka-Prao-Ngai Logo
Figure 2 : Ka-Prao-Ngai Menu
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Figure 3 : Microwavable food box
Figure 4 : Ka-Prao-Ngai Fanpage in website
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Figure 5 : Ka-Prao-Ngai Fanpage in application facebook
Figure 6 : Example of rating and complement of customer in Facebook fan-page
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Figure 7: Ka-Prao-Ngai Poster
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Appendix E : Financial
Appendix E1: table show cost of goods sold per dish
Material Cost per units
Ka-pao sauce 0.45
Soy sauce 0.19
Fish sauce 0.10
Sugar 0.11
Seasoning 0.32
Oyster sauce 0.19
Pork 0.50
Grounded pork 0.50
Streaky pork 0.54
Pork bone 0.14
Squid 0.9
Chicken 0.36
Crushed chicken 0.27
Shrimp 1.576
Egg No. 3 0.36
Century egg 1.01
Radish 0.045
Chili 0.27
Basil 0.43
Garlic 0.45
Oil 2.84
Noodle 0.02
Brown rice 0.171
Jasmine rice 5.86
Gas 1.76
Menu paper 0.002
Film rap 0.26
Packaging or Box 0.02
Fork - Spoon 0.004
Trash bags 0.23
total 19.88
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Appendix E2 : table shown cost of goods sold per month
Utility Bills Units Price Per Unit Total
Basil Sauce 100 90 9,000
Soy sauce 42 30 1,260
Fish sauce 22 60 1,320
Sugar (k.g) 24 30 720
Chicken/Pork powder 71 30 2,130
Oyster sauce (bottle) 43 30 1,290
Pork(k.g) 110 240 26,400
Ground pork(k.g) 110 180 19,800
Streaky pork(k.g.) 120 90 10,800
Pork bone 30 28 840
Squid(k.g) 200 90 18,000
Chicken Breast(k.g) 80 60 4,800
Ground chicken(k.g) 60 120 7,200
Shrimp (k.g) 350 30 10,500
Egg no.3 (panel) 80 390 31,200
Century egg(panel) 225 30 6,750
Radish 10 30 300
Chili (kg) 60 120 7,200
Basil leaves (kg) 95 150 14,250
Garlic (kg) 100 120 12,000
vegetable oil 630 15 9,450
Instant Noodles 4.925 1500 7,388
Brown rice (kg) 38 180 6,840
Jasmine Rice (Sack) 1,300 15 19,500
Gas (tank) 390 60 23,400
Menu paper 0.5 2250 1,125
Food wraps 57 30 1,710
Lunch box 3.5 3000 10,500
Spoon-fork 1 3000 3,000
Black bag 50 4 200
Total 268,873
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Utility Bills Units Price Per Unit Total
Electricity bill 6 232 1,392
Water supply monthly 100 1,200
Dishwasher 0.8 350 280
Total 2,872
Appendix E3 : table shown capital investment
Equipment Quantity Prices/unit Total
2 door large refrigerator 1 16000 16000
Large gas cooker 2 1600 3200
Small gas cooker 1 1450 1450
Bin 2 230 460
Round cutting board 1 415 415
Chopping board 3 140 420
Vegetable knife 4 57 228
Cleaver 4 100 400
Small knife 3 30 90
ladle 5 40 200
Spatula 5 85 425
Food tongs 4 25 100
Pan 4 720 2880
Rice Cooker (10L) 2 4000 8000
Glass cabinet 1 890 890
pot 3 420 1260
Dish 300 8.33 2499
Soup cup 300 4.16 1248
Spoon 300 30 9000
Fork 300 30 9000
Table 3 700 2100
Chair 3 109 327
Food tray 5 95 475
Sieve food 6 75 450
Container food 5 50 250
Washing Colander 5 60 300
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Plastic basin 4 160 640
Steel tray 4 450 1800
Soup pot 2 500 1000
Peaked Snood Caps 4 80 320
Apron screen Ka Pao logo 4 150 600
Plastic food flask 2 340 680
Decorate the shop + sign - - 5000
Total 72107
Appendix E4 : Table shown Fix cost/variable cost
Fix cost table
Statement Cost per year
Salary 444000
Rental 24000
Interest 11770.83
Marketing cost 5400
Depreciation 15000
Maintenance cost 780
Total 500,950.83
Variable Cost table
Statement Cost per unit
Utilities cost 0.248
Miscellaneous expense 1.05
Transportation fee 0.27
Cost of goods sold per dish 19.88
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Appendix E5: Demand forecasting (unit)
1. Demand Forecast (unit) per year using Moving Averages method
Formulation
As the result show in below
Conclusion of demand forecasting (unit) in yearly
2. Demand Forecast (unit) in monthly using the Seasonal Variations in Data
method
As the procedure
1.calculate the demand average of each season
2. Find the average of data
3. Find Seasonal Index
4. Put the Forecast in yearly multiple with seasonal Index
Years Actual demand Forecast demand
2017 124500 -
2018 126200 -
2019 125190 -
2020 - (124500+126200+125190)/3 = 125297
2021 - (126200+125190+125297)/3 = 125562
2022 - (125190+125297+125562)/3 = 125350
Years Forecast demand
2020 125297
2021 125562
2022 125350
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As the result
Month
Previous years
Average 2014-2016 Average monthly
Seasonal
Index
Forecast
2017 2018 2019 2020 2021 2022
Jan 9900 10000 10000 9967 10441 0.95 9967 9988 9971
Feb 12450 12300 11790 12180 10441 1.17 12180 12206 12185
March 9600 9800 9750 9717 10441 0.93 9717 9737 9721
April 9000 9500 9200 9233 10441 0.88 9233 9253 9237
May 10050 10300 8650 9667 10441 0.93 9667 9687 9671
June 8250 8500 8000 8250 10441 0.79 8250 8267 8254
July 8400 8200 8500 8367 10441 0.80 8367 8384 8370
August 10200 10500 11200 10633 10441 1.02 10633 10656 10638
September 13200 13500 14500 13733 10441 1.32 13733 13762 13739
October 12750 13000 13050 12933 10441 1.24 12933 12961 12939
November 13500 13600 13450 13517 10441 1.29 13517 13545 13522
December 7200 7000 7100 7100 10441 0.68 7100 7115 7103
total 124500 126200 125190 125297 125297 12.00 125297 125562 125350
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Demand Forecast in sale unit (Monthly)
Month
Forecast
2020 2021 2022
Jan 9967 9988 9971
Feb 12180 12206 12185
March 9717 9737 9721
April 9233 9253 9237
May 9667 9687 9671
June 8250 8267 8254
July 8367 8384 8370
August 10633 10656 10638
September 13733 13762 13739
October 12933 12961 12939
November 13517 13545 13522
December 7100 7115 7103
total 125297 125562 125350
Appendix E6: interest calculation
We loan the money amount 250,000 baht for 2 year from Government Savings
Bank in category of MLR of minimum lending rate that have interest rate at 6.5% per
year.
Source : https://www.gsb.or.th/services/RateLoan.aspx
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From the loan statement
We calculated interest and payment as shown below
1. The simple interest formula is:
Interest = Principal x rate x time
Interest = 250,000 x 6.5% x 2 year
Total Interest (2 years) = 32,500 baht
Monthly interest = 1354.17 baht
2. Monthly payment (Principle + Interest)
Monthly payment = Principle + interest/month
Monthly payment = 250,000 + 32,500/24
Monthly payment = 11,770.83 baht/month
So, we can conclude that
Monthly payment
Principle 10,416.66
interest 1,354.17
Total amount 11,770.83
Loan : 250000 baht
Interest rate : 6.5% Per year
Time : 2 year
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Appendix E7 : Income statement
From the formula
Our average sale price as shown below
So, we calculated the income statement as the result below
Month
Sale unit forecasting ( Dishes) Sale income forecasting (Baht)
2020 2021 2022 2020 2021 2022
Jan 9967 9988 9971 299001 299633 299127
Feb 12180 12206 12185 365401 366174 365555
March 9717 9737 9721 291501 292117 291624
April 9233 9253 9237 277001 277587 277118
May 9667 9687 9671 290001 290614 290123
June 8250 8267 8254 247501 248024 247605
July 8367 8384 8370 251001 251532 251107
August 10633 10656 10638 319001 319675 319136
September 13733 13762 13739 412001 412872 412175
October 12933 12961 12939 388001 388822 388165
November 13517 13545 13522 405501 406359 405673
December 7100 7115 7103 213001 213451 213091
total 125297 125562 125350 3,758,910 3,766,860 3,760,500
Sale price Average price
25
(25+30+35)/3 = 3030
35
Average price selling per dish * Sale unit forecasting
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Appendix E8 : ROI (Return on Investment) (base year2017)
Formulation
Appendix E9 : Payback period
Formulation
Cash flow per period
Net income per year
Average cash flowyear Cash flow
2017 435610
(435610+420565+583196+584141+586477+584731)/6
= 532453.3333
2018 420565
2019 583196
2020 584141
2021 586477
2022 584731
As the result, 𝑝𝑎𝑦𝑏𝑎𝑐𝑘 𝑝𝑒𝑟𝑖𝑜𝑑 =
250000
532453.3333
= 0.46952
ROI =
(𝟑,𝟕𝟑𝟓,𝟎𝟎𝟎 – 𝟐,𝟒𝟕𝟓,𝟎𝟔𝟎)
𝟐,𝟒𝟕𝟓,𝟎𝟔𝟎
× 𝟏𝟎𝟎
ROI = 50.90%
ROI =
(𝑻𝒐𝒕𝒂𝒍 𝑹𝒆𝒗𝒆𝒏𝒖𝒆 – 𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕)
𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕
× 𝟏𝟎𝟎
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From payback period is 0.46952 we can find exactly time by:
Find length of day by:
Therefore, its mean in this project will have payback period is 5 months and 20 days.
Appendix E10: Break even analysis
Formulation
Figure shown Fix cost/ variable cost (in the appendix E4)
Selling price = 30 Material = 19.88/unit Transportation fee =0.27
Dish washing charge = 1.05/unit electric charge = 0.248/unit Fix cost = 630429.96
1.0 = 12 months
0.56679 = x
X = 12 * 0.46952
X = 5.63424
1.0 = 30 days
0.80148 = x
X = 30 * 0. 63424
X = 19.0272
X = 20 days
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𝐵𝐸𝑃฿ =
630429.96
𝟏−[
𝟏𝟗.𝟖𝟖+𝟏.𝟎𝟓+𝟎.𝟐𝟒𝟖+𝟎.𝟐𝟕
𝟑𝟎
]
= 2212034.94
𝐵𝐸𝑃𝑥 =
630429.96
30 − (0.248 + 1.05 + 0.27 + 19.88)
= 73717.25
As the result of calculation
Breakeven point per unit = 73,717.25 ≈ 73,718 𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
Breakeven point per baht = 2,212,034.94 ≈ 2,212,035 𝑏𝑎ℎ𝑡 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
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Appendix F Questionnaire
Appendix F1: Questionnaire preview
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How often that customer have a meal in MFU?
Appendix F2 : questionnaire conclusion as graph
Consumption behavior factors
Where is the place the customers prefer?
Average of expense per time Have you ever order take home meal?
Do you prefer to add more 5 baht for the box which can put in microwave and well-sealing?
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Factors in food selection of consumers
Consumption of Ka-Pao factors
0%
5%
10%
15%
20%
25%
30%
Location Convenience Price Fast service Various Taste Clean&fresh
Do you prefer pad-ka-pao? How often are you have pad-ka-pao?
Which is a meal that you normally have pad-ka-pao? Which are your best ka-pao menu?
80
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Demography factors
Gender Income
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Logistics and Business Project Feasibility Analysis - Ka Pao Ngai

Logistics and Business Project Feasibility Analysis - Ka Pao Ngai

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