Net income of 106M in FY14Growth – Create & Sustain
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationCore competencies of HipArt2Exclus...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt3Unspec...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt4Unspec...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt5Unspec...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt6Unspec...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationKey Question7UnspecifiedMarketPene...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationRecommendations8Strategicpartnersh...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationRecommendations9Strategicpartnersh...
Create – Tourist Kiosks10
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe tourism industry in Thailand i...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTourist Kiosks can create value fo...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationBangkok, Ayutthaya and Pattaya are...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe Thai government will supportHi...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationImplementation of Tourist Kiosks i...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationKey challenges are well tackled in...
Sustain – Strategicpartnership with TrueMove17
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe smartphone accessories market ...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationDepartment stores has a proven dem...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationPartnership with mobile operator b...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationStrategic partnership with TrueMov...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTrueMove Strategic Partnership wil...
Add-on Services:App & Live Support23
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationSmartphone application increases s...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationLive support can reduce cost throu...
Financials26
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationNet income is forecasted to reach ...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation56% budget is dedicated to create ...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationMajor expenses aresalary, deprecia...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationPositive cash flow accumulates to ...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationNet profit is most sensitive to sa...
Implementation32
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTimeline – Administration & Create...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTimeline – Sustain & Add-on Servic...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationHipArt will be able to execute the...
Conclusion36
Conclusion37Challenges facedby HipArtRecommendationsto solve challengeHow they tacklethe challenges• Unspecified market pe...
Conclusion382014Healthy and profitable expansionMaximize utilization within 3 yearsNet Income of 106M in FY14Create  Sust...
Appendix39
Slide navigatorMain Slides Appendix1. Situation Analysis• Core Competencies• 3 Key Challenges• Key Question• Recommendatio...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThailand Quarterly Tourists Arriva...
MarginConservative FY12 FY13 FY14Gross margin 0.700 0.700 0.700Operating margin 0.006 0.340 0.369Net margin -0.019 0.266 0...
Tourism Segment (Bangkok)FY12 FY13 FY14Price per casing 600 600 600No. of stores 15 30 30Per hour using rate 4 2 2Operatin...
Tourism Segment (Ayutthaya)FY12 FY13 FY14Price per casing 600 600 600No. of kiosks 0 45 30Per hour using rate 4 2 2Operati...
Tourism Segment (Pattaya)FY12 FY13 FY14Price per casing 600 600 600No. of kiosks 0 15 30Per hour using rate 4 4 2.5Operati...
Department Store SegmentFY12 FY13 FY14Price per casing 500 500 500No. of kiosks 16 12 12Per hour using rate 1 1 1Operating...
Tourism Segment (Overview)47Per year, Total customers served under full-run: 500K Total visitors to Thailand: 19M Succe...
Mobile Operator Segment (Flagship)FY12 FY13 FY14Price per casing 400 400 400No. of kiosks 3 6 9Per hour using rate 2 1.5 1...
Mobile Operator Segment (Normal)FY12 FY13 FY14Price per casing 400 400 400No. of kiosks 8 16 16Per hour using rate 1 1 0.7...
Mobile Operator Segment (Coffee Shop)FY12 FY13 FY14Price per casing 400 400 400No. of kiosks 0 8 16Per hour using rate 0.7...
Salary (Head)Heads Salary No. TotalManager 250,000 2 500,000Creative Advisor 100,000 1 100,000IT Advisor 100,000 1 100,000...
Salary (Junior)52Junior Salary No. TotalRental Sales 60000 3 180000IT 50000 1 50000Operation 60000 9 540000Inventory & Adm...
New Printers Deployment53Segment FY11 FY12 FY13 % of TotalTourism 15 60 15 63%Operator 12 22 8 28%Dept Store 12 0 0 8%Oper...
Base Case Assumption54Only Dept Store TotalPrice per casing 500 500 500No. of stores 60 300 400Per hour using rate 1 1 1Op...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationNet Income in different scenarios-...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationDetailed Expenses Distribution5645...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe tourism customer segment provi...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation1. Referral from Design societies2...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationPotential scenic spots for setting...
Price comparison- Vox and Chic60139.00ChicVox790.00
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThailand’s female 1st jobber popul...
Smartphone Usage in Thailand According to Kasikorn Research Centre (KResearch), consumersnow want their mobile phones to ...
Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationImplementation for TrueMove63• Pro...
Number of Truemove stores andTrue Coffee in Bangkok64True Coffee: 32 stores
Number of True Flagship and NormalShops65True Shop: 8 shopsFlagship stores: 3
Rental Service provides long term growthstrategy66Rental Service:• Provide mobile printers in cars forrent for events• Inc...
Alternative flatbed printer:Mimaki JUF 304267Price: USD 20,000
Thailand smart phone prices68Apple 4:17,900Apple 4S:20,900Apple 3:12,900Galaxy Note:15,500Galaxy S:12,000Galaxy S II:13,50...
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Business Recommendations to HipArt

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  • Source: The Authority of World Travel and Tourism http://www.wttc.org/site_media/uploads/downloads/thailand2012.pdf
  • Business Recommendations to HipArt

    1. 1. Net income of 106M in FY14Growth – Create & Sustain
    2. 2. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationCore competencies of HipArt2ExclusiveTechnologySpeed &ConvenienceHighlyCustomizableLarge VarietyHigh Speed &ConvenienceExclusivePremiumTechnology
    3. 3. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt3Unspecified MarketPenetration Strategy Unspecified MarketPenetration StrategyRapid ExpansionPressureUnsustainableCompetitiveAdvantage
    4. 4. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt4Unspecified MarketPenetration Strategy Unspecified MarketPenetration StrategyUnsustainableCompetitiveAdvantage• Passive marketing strategy in highly competitive market segment• Need to reposition to capture unexplored customers segmentsRapid ExpansionPressure
    5. 5. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt5Unspecified MarketPenetration Strategy Unspecified MarketPenetration StrategyUnsustainableCompetitiveAdvantage• Contract requires expansion to at least 130 kiosks in 3 years• Threat of cannibalization during expansion• Insufficient human resources due to labour shortageRapid ExpansionPressure
    6. 6. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation3 Key Challenges for HipArt6Unspecified MarketPenetration Strategy Unspecified MarketPenetration StrategyUnsustainableCompetitiveAdvantage• Contract can only guarantee exclusive technology for 3 years• Niche market faces potential competition from Chinese counterfeitsRapid ExpansionPressure
    7. 7. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationKey Question7UnspecifiedMarketPenetrationStrategyCurrent SituationRapid ExpansionPressureUnsustainableCompetitiveAdvantageKey QuestionChallenges4 phone case kiosks in department storesHow can HipArt achieve a healthy and profitablegrowth when expanding the number of kiosks within 3years?
    8. 8. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationRecommendations8Strategicpartnership withTrue MoveCreate SustainTourist KiosksAdd-on services(App + LiveSupport)
    9. 9. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationRecommendations9Strategicpartnership withTrue MoveCreate SustainTourist KiosksAdd-on services(App + LiveSupport)+Impact:Expansion to atleast 130 kioskswithin 3 yearsNet income of 106Million in 2014+
    10. 10. Create – Tourist Kiosks10
    11. 11. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe tourism industry in Thailand isbooming11Total Tourist Spendingin 2011 = 770b
    12. 12. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTourist Kiosks can create value for bothcustomers and HipArt12High Customization High Quality Preservation High SpeedFor HipArt:Expandcustomer base+Highermargin+Less reliance onrepeat purchaseFor customers: Needs and expectations satisfied
    13. 13. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationBangkok, Ayutthaya and Pattaya are 3best cities to install Tourist Kiosks13BangkokPattayaAyutthaya
    14. 14. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe Thai government will supportHipArt’s Tourist Kiosks14Ministry of Tourismand SportsFor Thai government: Increased publicity + Money incentive
    15. 15. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationImplementation of Tourist Kiosks is withinHipArt’s capability15Resources needed Achievable?• Additional expense (rental fee,installation and maintenance)• Additional labour• Additional changes to kiosk tocater for tourists’ needed
    16. 16. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationKey challenges are well tackled inHipArt’s Tourist Kiosks16TouristsSpecified marketpenetration effect90 KiosksEase operational expansionpressureHigh volume& turnoverMaximize machine utilization& boost sales
    17. 17. Sustain – Strategicpartnership with TrueMove17
    18. 18. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe smartphone accessories market isgrowing in Thailand18“ The surge in consumer demand hasboosted the sales volume ofsmartphones by over 80% in the firstquarter of 2012 (In Thailand)”GfK ThailandProminent Market Researcher
    19. 19. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationDepartment stores has a proven demandbut limited growth potential19Current monthlyaveragecustomers perstore:250If continue,even at 50%penetration:100
    20. 20. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationPartnership with mobile operator brings innew business20First –time clients:• Need to buy casing• Active marketing effect• Re-purchase possibilities
    21. 21. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationStrategic partnership with TrueMove willbe HipArt’s best choice21Criteria AIS DTAC TrueMoveCustomer group sizeCustomer group fitLess Competition instoreChances of strategicpartnershipOverall
    22. 22. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTrueMove Strategic Partnership will helpbuild impeccable business model22LifestyleCustomersSophisticated marketpenetration41 Kiosks Ease operational expansionpressureIncreasemarket sizeMaximize machine utilization
    23. 23. Add-on Services:App & Live Support23
    24. 24. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationSmartphone application increases salesthrough raising turnover rate in kiosks241. App allows you to create designs on own phone2. 1 fast lane, 1 full service3. Print & collectIncreased turnover & customer satisfactionIncreases Sales
    25. 25. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationLive support can reduce cost through moreeffective use of labour251. Operators stationed at headquarters2. Press button for communication3. Remote Control function to solve any issuesHigh human capital utilizationLess prone to labor shortage
    26. 26. Financials26
    27. 27. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationNet income is forecasted to reach 106Min FY14-101030507090110130150FY12 FY13 FY14Net Income over 3 Years27(in millions)1. 63% of printers are deployed in tourism, the segment with highest margin2. 57% of Dreamjet Artist printers are deployed in FY133. Average net margin is 26% in FY13 and 30% in FY14Forecast:106MBase Case:47M59M
    28. 28. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation56% budget is dedicated to create while41% to sustain28Create:56%Sustain:41%Budget AllocationLiveSupport:3%App:0.4%
    29. 29. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationMajor expenses aresalary, depreciation, fee to TrueMove andfee to government29Distribution of Top 4 ExpensesDepreciation: 11%(28M)Miscellaneous:28%Fee togovernment: 8%(22M)Salary: 43%(113M)1. Top talents of rentalsales, design and are hiredat over industry salaryaverage2. Dreamjet Artist printer isdepreciated over 5 years3. Share of net income withTrueMove is set between25-40%4. Rental fee to governmentis set at 10k per kiosk permonthFee to TrueMove: 10%(25M)
    30. 30. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationPositive cash flow accumulates to over131M by the end of FY14020406080100120140FY12 FY13 FY14Cash Flow Statement in 3 Years30(in millions)131M1. 2-year bank loan of 14M at 12% interest rate is obtained to financenecessary expansion-related expenses in FY122. Loan is repaid at the end of FY133. The quantity of new printers acquired and deployed are 30, 74, 39respectively over the 3-year period1M
    31. 31. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationNet profit is most sensitive to salesrevenue310% 1% 2% 3% 4% 5%1% Increase in Sales Revenue1% Decrease in COGS1% Decrease in Operating Cost1% Decrease in Salary1% Decrease in Budget Needed for Create1% Decrease in Budget Needed for SustainSensitivity Analysis% Change in Net Profit
    32. 32. Implementation32
    33. 33. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTimeline – Administration & Create33FY12 FY13 FY14Administration• Borrow a loan of 7m• Recruit 1 Rental Sales Head & 1 Creative Advisor• Expand Operation TeamCreate – Tourist Kiosks• Negotiate with Ministry of Tourism & Sports• Operation in Bangkok tourism spots• Operation in Ayutthaya tourism spots• Operation in Pattaya tourism spots
    34. 34. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationTimeline – Sustain & Add-on Service34FY12 FY13 FY14Sustain – Strategic Partnership with TrueMove• Install additional kiosks in department stores• Negotiate with TrueMove• Operation in TrueMove stores• Operation in TrueMove coffee shopAdd-on Service – App & Live Support System• Develop App & Live Support System• App & Live Support System in place
    35. 35. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationHipArt will be able to execute the Create &Sustain strategyRisks Mitigation• The Thai government turns downthe cooperation plan• Negotiate with individual souvenirshops using the profit-sharingmodel• Tourists’ demand for Tourist Kiosksnot as high as expected• Move kiosks to other new touristspots or even department stores• TrueMove turns down thepartnership offer• Approach DTAC with a moreattractive profit-sharing offer• Low demand on HipArt app • Promote the HipArt app via onlinemarketing means• Convert fast-track kiosks back tonormal kiosks35
    36. 36. Conclusion36
    37. 37. Conclusion37Challenges facedby HipArtRecommendationsto solve challengeHow they tacklethe challenges• Unspecified market penetration strategy• Rapid expansion pressure• Unsustainable competitive advantage• Tourists• Stable partnershipfor expansion• Exclusive operationTourist KiosksStrategicpartnership withTrue MoveAdd-on services:App+Live Supoort• 1st timesmartphone users• Expansionleverages onbranch network• Build brand name• Tech savvy andservice-seekingcustomers• Maximize machineutilization• Less prone to labourshortage
    38. 38. Conclusion382014Healthy and profitable expansionMaximize utilization within 3 yearsNet Income of 106M in FY14Create  Sustain
    39. 39. Appendix39
    40. 40. Slide navigatorMain Slides Appendix1. Situation Analysis• Core Competencies• 3 Key Challenges• Key Question• Recommendations2. Create – Tourist Kiosks• Tourism situation• Benefit both customers and HipArt• 3 Strategic Places• Government support• Implementation within capability• Key challenges tackled3. Sustain – Strategic partnership with TrueMove• The Smartphone accessories market is growing in Thailand• Department stores has a proven demand but limited growth potential• Partnering with mobile operators brings in new business• Strategic partnership with TrueMove is HipArt’s best choice• Key Challenges tackled3. Add-On Service – App4. Add-On Service – Live Support System5. Financials6. Implementation• Timeline – Administration & Create• Timeline – Sustain & Add-On Service• Risk Mitigation7. ConclusionA. Financial> Tourist arrival> Margin> Tourism overview> Tourism Bangkok Ayutthaya Pattaya> Department store> Mobile operator> Salary> New Printer> Base case> Net income scenario> Expense distribution> Higher return for touristsB. Create recommendation> Potential Scenic spotsC. Sustain recommendation> 1st jobber market> Thailand smartphone market> TrueMove implementation> TrueMove StoresD. Long term> Rental Service> Alternative printersE. Others> Creative advisor criteria> VOX price comparison> Smartphone costs40
    41. 41. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThailand Quarterly Tourists Arrival from2007 - 201241Numbers show number of touristarrivals (in millions).Dates of political unrest anduntoward events :2009 : most negative events 11-12April2010 : most negative events :around 19 May2011 : flooding of Central Thailandand part of Bangkok Oct-DecSource: Thaiwebsites.com
    42. 42. MarginConservative FY12 FY13 FY14Gross margin 0.700 0.700 0.700Operating margin 0.006 0.340 0.369Net margin -0.019 0.266 0.29642Optimistic FY12 FY13 FY14Gross margin 0.700 0.700 0.700Operating margin -0.203 0.390 0.402Net margin -0.162 0.312 0.321
    43. 43. Tourism Segment (Bangkok)FY12 FY13 FY14Price per casing 600 600 600No. of stores 15 30 30Per hour using rate 4 2 2Operating hour 7 7 7Time of service (y) 0.5 1 1Total customerserved76,650 153,300 153,30043
    44. 44. Tourism Segment (Ayutthaya)FY12 FY13 FY14Price per casing 600 600 600No. of kiosks 0 45 30Per hour using rate 4 2 2Operating hour 7 7 7Time of service (y) 0 0.5 1Total customerserved0 114,975 153,30044
    45. 45. Tourism Segment (Pattaya)FY12 FY13 FY14Price per casing 600 600 600No. of kiosks 0 15 30Per hour using rate 4 4 2.5Operating hour 7 7 7Time of service (y) 0 0.5 1Total customerserved0 76,650 191,62545
    46. 46. Department Store SegmentFY12 FY13 FY14Price per casing 500 500 500No. of kiosks 16 12 12Per hour using rate 1 1 1Operating hour 8 8 8Time of service (y) 0.5 1 1Total customerserved23,360 35,040 35,04046
    47. 47. Tourism Segment (Overview)47Per year, Total customers served under full-run: 500K Total visitors to Thailand: 19M Success rate: 2.6%
    48. 48. Mobile Operator Segment (Flagship)FY12 FY13 FY14Price per casing 400 400 400No. of kiosks 3 6 9Per hour using rate 2 1.5 1.5Operating hour 8 8 8Time of service (y) 0.5 1 1Total customerserved8,760 26,280 39,42048
    49. 49. Mobile Operator Segment (Normal)FY12 FY13 FY14Price per casing 400 400 400No. of kiosks 8 16 16Per hour using rate 1 1 0.75Operating hour 8 8 8Time of service (y) 0.5 1 1Total customerserved11,680 46,720 35,04049
    50. 50. Mobile Operator Segment (Coffee Shop)FY12 FY13 FY14Price per casing 400 400 400No. of kiosks 0 8 16Per hour using rate 0.75 0.75 0.75Operating hour 8 8 8Time of service (y) 0 0.5 1Total customerserved0 8,760 35,04050
    51. 51. Salary (Head)Heads Salary No. TotalManager 250,000 2 500,000Creative Advisor 100,000 1 100,000IT Advisor 100,000 1 100,000Design 150,000 2 300,000Rental Sales 200,000 2 400,000IT 150,000 1 150,000MachineMaintenance80,000 3 240,000Operations 150,000 3 450,000Inventory & Admin 100,000 3 300,00051
    52. 52. Salary (Junior)52Junior Salary No. TotalRental Sales 60000 3 180000IT 50000 1 50000Operation 60000 9 540000Inventory & Admin 50000 6 300000
    53. 53. New Printers Deployment53Segment FY11 FY12 FY13 % of TotalTourism 15 60 15 63%Operator 12 22 8 28%Dept Store 12 0 0 8%Operator -Flagship3 6 0 6%Operator -Normal8 8 0 11%Operator - CoffeShop0 8 8 11%
    54. 54. Base Case Assumption54Only Dept Store TotalPrice per casing 500 500 500No. of stores 60 300 400Per hour using rate 1 1 1Operating hour 8 8 8
    55. 55. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationNet Income in different scenarios-101030507090110130150FY12 FY13 FY14Net Income in Different Scenarios over 3 Years55(in millions)Key Assumptions: 1. 63% of printers are deployed in tourism, the segmentwith highest margin2. 57% of Dreamjet Artist printers are deployed in FY133. Average net margin is 26% in FY13 and 30% in FY14Conservative:106MBase Case:47MOptimistic:143M59M
    56. 56. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationDetailed Expenses Distribution5645%11%10%9%5%4%3%2%11%Distribution of Top 8 ExpensesSalaryDepreciationFee to TrueMoveRental Fee to GovtMaintenance ExpDesigner FeeCustomer Support Exp
    57. 57. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThe tourism customer segment provides ahigher rate of return79%13%8%Sales DistributionTourismMobileOperatorDept Store571. Higher price and turnover rate2. Lower rental expenses to government compared tothose to mobile operator or department store3. No customer support-related (e.g. LiveSupport)expenses56%35%9%Budget Allocation
    58. 58. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials Implementation1. Referral from Design societies2. HeadhuntingChannels for hiring Creative Advisors58Thailand Creative and Design CenterThai DesignConsortiumRSM ThailandPacific Bridge IncorporatedKTI Consultants
    59. 59. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationPotential scenic spots for setting upTourist Kiosks59Bangkok Pattaya Ayutthaya1. Wat Ratcha-orasaram2. Wat Sai3. Wat Nangnong Worawihan4. National Museum of RoyalBarges5. Bangkok Noi railwaystation6. Wat SuwannaramRatchaworawihan7. Wat Rakhang KositaramWoramahawihan8. Jim Thompson House9. Erawan Shrine10. The Museum of ImagingTechnology1. Wat Khao Phra Bat2. The Sanctuary of Truth3. Wat Yansangwararam4. Nong Nooch Garden5. Thai Alangkan Theatre6. Baan Sukhawadee7. Wat Chong Lom8. Wihan Thep Sathit PhraKitti Chaloem9. Anek Kuson Sala (WihanSian)10. Siriphon Orchid Farm1. Ayutthaya Historical Park2. Ayuthaya Ruins3. Wat Phra Mahthat4. Wat Yai Chai Mang Khon5. Elephantstay6. Wat Phra Sri Sanphet7. Wat Chaiwattanarm8. Temple of the RoyalRestoration (WatRatchaburana)9. Temple of the RecliningBuddha (WatLokayasutharam)10. Wat Phu Khao Thong(Golden Mount)
    60. 60. Price comparison- Vox and Chic60139.00ChicVox790.00
    61. 61. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationThailand’s female 1st jobber population isestimated to be 0.9 Million61Source: Nationmaster, US Census BureauNumber of 20-24 year old female in 2010: 2.4 MillionEmployment to population ratio: 37.9 %Estimate of Thailand 1st jobber women population =0.9 Million
    62. 62. Smartphone Usage in Thailand According to Kasikorn Research Centre (KResearch), consumersnow want their mobile phones to have easy and convenientaccess to social networks and multi-media functions. Mobilephones hence have been developed further to meet with thedemands, especially smart phones, which are now verypopular among thai consumers. Based on a survey by KResearch, 50.4% of consumers inBangkok own smart phones. 56% of people answering thequestionnaire, whose ages are between 20 to 24 years old orthose who just start working, have smart phones inpossession. Although smart phone ownership in Thailand’s capital isrelatively high, most of the people answering thequestionnaire in all age groups have no smart phones atpresent. However, 50% of them do plan to have the device inthe future.62
    63. 63. Situation Tourist Kiosks Strategic Partnership Add-on Services Financials ImplementationImplementation for TrueMove63• Profit sharing scheme• Locations: 3 Flagship, 8 Normal stores, 32 Coffeeshops• Prime locations for all shops- opportunities forre-purchase- close proximity to usual hang out/shopping area• Discounted price of 400BHT for 1st Time phonebuyers from TrueMove
    64. 64. Number of Truemove stores andTrue Coffee in Bangkok64True Coffee: 32 stores
    65. 65. Number of True Flagship and NormalShops65True Shop: 8 shopsFlagship stores: 3
    66. 66. Rental Service provides long term growthstrategy66Rental Service:• Provide mobile printers in cars forrent for events• Incentives: Profit sharing scheme• Target customers: ArtExhibition, Weddings &Graduations/ Open daysStrengths:• Does not rely on Kiosk• Untapped market segment• Higher tendency to spend in SpecialOccasions• Leverages on core competency
    67. 67. Alternative flatbed printer:Mimaki JUF 304267Price: USD 20,000
    68. 68. Thailand smart phone prices68Apple 4:17,900Apple 4S:20,900Apple 3:12,900Galaxy Note:15,500Galaxy S:12,000Galaxy S II:13,500Blackberry Bold9700:12,000Blackberry Bold 9900:12,900

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