Project Feasibilty Study and Evaluation - Aj.chaiyawat Thongintr, Mae Fah Luang University(MFU),...

8/14/2019 Project Feasibilty Study and Evaluation - Aj.chaiyawat Thongintr, Mae Fah Luang University(MFU), 2010

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Executive Summary

Mae Korn Alaiyont is the spare part shop which provides standard and high quality

the variety of spare part products where is located in Mae Korn intersection area is near the

Chiang Rai bus station. Also Mae Korn Alaiyont provide customers satisfaction and

trustworthy with high quality and variety of products anticipate their requirement and create

the great value of product with reasonable price and service with friendly greeting and smile.

We emphasize is on the garage market include individual car user. We expand market in

Chiang Rai and expand the business growth which related with customers order for provide

opportunity profit. In addition, we applying computing technology for inventory management

and customers can order though website. Beside this we believe that lasting business success

is built upon ethical that had customer above profit which we operate to centre of spare partproduct and service we do, we act with honesty, fairness and integrity. Moreover we concern

the corporate social responsibility to the social activities and environment friendly. We

recruit, develop, motivate, reward and retain personal of ability to be the technician working

condition, superior leadership, and condensation on the basis of performance with high

degree of employee security.

The important reasons for establish Mae Korn Alaiyont according to the general of

spare part business in Chiang Rai have higher growth rate and it affect to increase the spare

part business. From this reason, Mae Korn Alaiyonts customers can be many garages and

general customers which can the same increase. And because of there are only three to four

the main and big spare parts business in Chiang Rai. Moreover the numbers of customers use

the garages have increased because it can from accidents or they need to maintain their car.

In addition the spare part business is not enough to serve the customers satisfaction including

the people who use the individual car and each garage in Chiang Rai or suburban. In term of

the nature of industry, the development of each country often to consider from economic

growing rate is the main point. Where the developed country is high economic growing rate

before the economic crisis is happen in Thailand. To develop the economic continually and

rise effect by Thai because Thailand economy is depend on the industrial more than the

agricultural and the product of industry change from production for importing substituted to

produce for exporting. The government aim about production for exporting by reach to the

international market. If the ability to distribute Thailand product into the world market; from

the business process to the customer is smooth, Thailand product will successful in the worldmarket. It is an important thing of exporting business, and the main factor that effect to


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economic growth. When the economy of country have to depend on the industrial that

emphasize with the production for exporting, and there is a production. It must have the

products receiving by using logistics system.

According to the export and import statistic, there are increasing in every year the

state always tries to develop the transportation system. Transportation system has landing

transportation that has long road 170,000 km. high ways 25,000 km. combination with

railroad more than 4,000 km. connect between country size and pass to neighbors hood

country. Moreover air transportation have international airport seven places, domestic airport

twenty-five places and water transportation there are international port for five ports but

transportation system in Thailand is depend on truck which is the most quantity and accept

convenience and fast it is reason growing of automobile industrial. That makes for carriage

more weight. From this information that the most quantity transportation is landing so trucks

is important vehicles for distribute goods to local that make logistics business increase by

statistic about commercial increase, high sale volume. In distribution by truck is hard for

overweight carriage for breakeven and long time to distribute. Truck is not maintenance

because driver is not owner who is employee only that make owner must be maintenance

themselves, fixed and change spare part always for truck or car have long time and safety

although changing spare part at that time have to pay much more money.

On the other hand, the situation industry in Thailand has problem with export the auto

part industry. The auto part industry has exporting decline stage about forty-three point nine

percent when compare with the same period of last year. The main factor effect continuously

is the economic crisis and the dimension of many factors such as world oil price fluctuation

make the oil price high and effect to world economic. From the reason is effected the car

producer industry and car market has decrease of sales volume. That effect to the individual

car user influent to decrease customer buying power and customer loyalty. From the

continuous effect car producer industry and auto part industry although , in the present of

market situation it can build the opportunity for spare part business growing because the

customer favor to use the old car or no chance to buy a new car. Thus, increase the spare part

product for customer who would like to maintenance their cars. Make the spare part product

has high demand for sales. The customer doesnt desire to buy new car because the difficult

about the contract and high risk to has more debt. The customer favor to use old car and

second hand car because low price and more product to offer from the statistical of export

spare part product of Thailand researches by the federation of Thailand industries found that


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has continuous to expanding. However, in the auto part industrial is strong competing with

competitors. It is necessary to reduce cost and develop a quality of product to increase the

customer acceptable the product. Moreover the entrepreneurs are necessary to build the

business relationship with car center and garage business. In the present, Car is the necessary

vehicle used in human daily life for convenience and comfortable to do the business andmany activities such as transportation and service to the customer. Therefore, a spare part is

the importance equipment for car maintenance and necessary to use in every vehicle. So

spare part market is high profit and grows continuously and very interesting to invest the

business with large customer who use car and need to maintenance car.

According to market analysis, there are five external factors are effected to our

business; General Environment, Political, Economy, Social, and Technology. First the

general environment in Chiang Rai of spare part business information base on customer

buying power of Chiang Rai population. The most of customer of spare part business is the

owner of garage and car user that has high buying power for the observation of the many

garages can provide their service for the customer. Second one is political in Thailand

communication is important people who need to use vehicles for transportation and their

business so spare part business is necessary product for everyone. Third one is economy

crisis effect to slow down off last years by supply of Thailand people income and car industry

both of down production sector and customer demand is down follow delay of world

economy and the demand. Demand side, consuming consume the private sector is down from

a consumer is careful buying private sector investment still shrink brining pays the budget of

the government sector is down. The exporting decelerates down and lead part reaches to

expand price consumer index decelerates to follow fuel price that fines continual down for

the deposit and the credit still expand. Fourth is social, because of transportation is very

important in people daily life and car is very important thing for necessary and convenience

for people as well. Moreover, Chiang Rai is agriculture province most of people isagriculturist and usually use car and agricultural vehicle for agricultural. For this reason,

cause the spare part product is important for their vehicle. Therefore people willing to pay

for safety of their confidential drive. And the most of people like to check for car

maintenance at the garage or car center service that certainly growing effect of spare part

business extremely. The last factor is technology Information Technology progression has

fast communication. The place is basically carry appeared growing and in the present people

want to convenience in communication which car is important in their life. Many companies

provide modern product to customer for suitable with their lifestyle by comfortable product


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or service. New technology can change old things to new things such as auto part or spare

part business is providing new technology for the customers. Therefore we have more good

opportunity to establish spare part business. Also Mae Korn Alaiyont is high feasibility to

offer the largest spare part shop in Chiang Rai and provide excellent service by high skill

technician and professional who can provide right information to customers. By the way wecan make customers satisfy with our spare part and we can gain more profit.

In term of competitor analysis, because of spare part business is continuously

competition because the number of passenger car using, secondhand cars, and car that use for

agriculture have trend to increase. There is effect to spare part business has more expand and

has more necessary for every kind of cars in addition there is high profit business. Also spare

part shop in Chiang Rai is not enough and cannot response and support for customers need

and there is high start up and investment include the location in the city and cause of limited

area in Chiang Rai when compare with the around Mae Korn area. Thus we have more

opportunity to establish spare part shop because there have trend to increase growth. From

that reasons spare part business which located in Mae Korn has lass of competitors when we

compare with situation analysis that higher competition. Almost the spare part competition,

there are emphasize in quality of products and reasonable price including more variety of

products. That while in the future spare part market in Mae Korn area has expand and trend t

increase because economic in Chiang Rai expand and effect to increasing of spare part

market growth rate.

Moreover there are five factors in the competitive analysis; rivalry among competing

firms, potential of new competitors, potential development of substitute products, bargaining

power of suppliers, and bargaining power of customers. First rivalry among competing firms

in spare part business it does not has high competitive in the market because many firms still

not promote for their business. This business has high investment. General competition of

this business is small market because competitors only allocated in Chiang Rai. However, we

concern for business trustworthy from customers and the business main competitors. Due to

in the beginning business of spare part business cannot know about customers order and it is

difficult to catch the loyalty of customer. Moreover, if we are new business, nature of

customer will be not trust in the quality or standard of new business. Therefore, it is barrier

for our business. Second is potential of new competitors, because of spare part market

growth has trend to increase, thus the new firm likely to aim for the maximize profit and able

to sell the same characteristic of the products. However, we attempt to keep our customers


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include barriers to entry such always make customers loyalty, lack of experience, gain

technology and specialized know-how and potential saturation of the market. Moreover we

develop the strategy to attract the intension of the customer and to raise the barrier to the new

entry firm. Third is potential development of substitute products, because of spare parts

product is unique product and there is important and necessary component of every vehicles.Thus there is difficult to find the substitute products and we dont worry about this and dont

have competitive pressures from substitute product. Fourth is bargaining power of suppliers

there is high bargaining power of supplier because it affects the intensity of competition in

spare part business, especially when there are a large number of suppliers. Its often in best

interest both of supplier and producers to assist each other with reasonable price improve

quality, development service, and just-in-time delivery. Suppliers can set the criteria of the

spare part for the entrepreneurs and has the high bargain power. And the last factor isbargaining power of customers, because the bargaining power of customers is also higher

when the products being purchase are standard or undifferentiated. Customers have a high

purchasing power because it not too many types of customer who like to purchase spare part

product. Because of the bargaining power of customers can be the most important force

affecting competitive advantage. Therefore customer always concern in many factor that

relate for them before making decision to purchase the product. Moreover, nowadays

customers concern about high quality and more variety of products. Furthermore, customers

would like to get value added of product; they want to get more satisfaction in all brand of

spare part. It is good opportunity of our business.

According to management analysis, there are project activities, marketing

activities, technical activities, and projects building and constructions. For the beginningof

our business has the pre-operating administrative therefore our spare part business is high

feasibility and have more trend to increase the market growth in the future. In addition, the

period of project feasibility preparing the basis information for the component of analysis anduse to survey the location to open spare part business that we decided to choose area around

Mae Korn intersection is the our location. For the marketing, Mae Korn Alaiyont has concern

about the quality of products for standard and durable use and applies technology for

management. Moreover the efficiency of employees service can support the sell with service

mind and fast service. Therefore we apply the strategy for attract our customers and

advertisement our spare part shop such the radio and broadcast depend on the situation and

different for attract the customers to buy our all of spare part products. Moreover we have


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Content

Title Page

Chapter 1

Introduction 1

Background and Significance of the Project 1

Project objectives 2

Benefits of Project 2

Time Period 3

Chapter 2

Industry Profile 4

Nature of Industry 4

Situation of Industry 6

Product/ Service (in General) 8

Vision 15

Mission 15

Company Strategy 16

Corporate Level 16

Business Level 16

Functional Level 17

Chapter 3

Marketing 18

Market Feasibility Study 18

Market Analysis 18

General Environment Analysis 18

Political Analysis 18

Economy Analysis 22

Social Analysis 26

Technology Analysis 26


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Competitor Analysis (3C Analysis) 27

Competitor Analysis 27

Charearn Yont 28

Petch yont 30

SWOT Analysis 31

Customer Analysis 33

Customer marketing information 37

General customers 39

Garages 45

Retailers 55

Customer behaviors 56

Competitive Analysis ( Five force model ) 58

STP Analysis 67

Marketing Mix Strategy 70

Sale Forecast/ Profit Estimation 71

Marketing Expense (Sale Incentive) 80

Conclusion 83

Chapter 4 84

Technical Feasibility Study 84

Production and Operations Analysis 84

Product Characteristics 84

Characteristic of spare part business 84

Employees 85

Training and Development planning 86

Rate of payment 87

Location 89

Facility Layout 91

Facility Management 97

Machine/Tools/Equipment 98


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Investment Cost 106

Cost of Investment 107

Pre-Operating Cost 107

Fixed Asset 108

Depreciation 108

Land and Landscape 109

Building 109

Operating Expense 121

Chapter 5

Financial feasibility analysis 123

Budged allocating 123

Pre operating expense 124

Asset 125

Liability 126

Financial Policy 127

Income statement 127

Statement of Cash flow 131

Balance Sheet 136

Financial Ratio 141

Chapter 6

Risk Management 142

Business Risk 142

The factor of business risk 142

Analyze business of the project risk 145

The factor of effect risk 145

Lack skill of employee 147

The public utility 148

Administration of risk management 149


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Financial risk 150

Leverage 150

Cost profit analysis 151

Financial risk 152

Conclusion 172

Chapter 7

Conclusion of project feasibility of Mae Korn Alaiyont 173

Reference

Appendix


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1 | P a g e

Chapter 1

Introduction

Background and Significance of the Project

Nowadays, the numbers of people who use car in Chiang Rai are steady increase in

every year and this reason is the important to effect expand the spare part business.

According the trade of spare part market growth and increase sales of spare part, but it has a

few of spare part business in Chiang Rai. Therefore its not enough provide the quality of

spare part to serve customers satisfy and the most of people have more concern about

maintenance their car to can use in long time.

Our business is located in Mae Korn where is has more area and appropriate to

located the spare part business. Thus in this area is near the Chiang Rai bus station, it is the

centre of transportation and it suitable for customers include who live in around there and

makes them convenience and easy to go there. The general of spare part business in Chiang

Rai have higher growth rate and it affect to increase the spare part business. From this reason,

our customers can be many garages which can the same increase. There are only 3 to 4 the

main and big spare parts business in Chiang Rai. Moreover the numbers of customers use the

garages have increased because it can from accidents or they need to maintain their car. And

because of the economic factor that cannot support the customers need to sales and purchase

or change their new car. It makes the customers use more the garages and makes spare part

products is important and necessary for the customers.

Overall reasons, it makes us to look at the important factor and have more feasibility

to provide the spare part business. In addition the spare part business is not enough to servethe customers satisfaction including the people who use the individual car and each garage in

Chiang Rai or suburban. So we study the feasibility of spare part business that located in Mae

Korn for response the customers need with variety and high quality of our product include

service from professional who have many experiences to makes customers have more

satisfaction.


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Project objectives

1. To study the important and the feasibility of spare part business in Chiangrai

2. To study the feasibility of market and sale volume related with spare part business

3. To study the feasibility of financial about risk investment, operation, sales forecastingand return on investment

4. To study the feasibility of technical analysis consist of operation, production, and

organization

Benefits of Project

1. To understand the general environment of spare part competition to determine thefeasibility of spare part business

2. To understand the spare part market, customers need, marketing problems and can

forecast appropriate sales

3. To understand the risk of business investment for determine the efficiency financial

management

4. To understand operation, organization, and marketing cost


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Time Period

Activity Time Frame

Between November 2009 February 2010

Activity Time periods (Week)

1 2 3 4 5 6 7 8 9 10 11 12 13

1. Idea Generating

2. To consult with lecturer for

operating

3. Idea Conclusion

4. Planning

5. Study about operation details

6. Study project feasibility

6.1 Industry profile

6.2 Marketing

6.3 Technical

6.4 Financial

6.5 Economical and Environment

6.6 Risk management

7. Summary of project feasibility

Remark * Week 1 is November 2nd 2009- November 8th 2009

* Week 13 is January 27th 2010- February 2nd 2010


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Chapter 2

Industry Profile

Nature of Industry

The development of each country often to consider from economic growing rate is the

main point.(e.g Reported results of operations of the Department of Export Promotion,2009)

.Where the developed country is high economic growing rate before the economic crisis is

happen in Thailand. To develop the economic continually and rise effect by Thai because

Thailand economy is depend on the industrial more than the agricultural and the product of

industry change from production for importing substituted to produce for exporting. The

government aim about production for exporting by reach to the international market. If the

ability to distribute Thailand product into the world market; from the business process to the

customer is smooth, Thailand product will successful in the world market. It is an important

thing of exporting business, and the main factor that effect to economic growth

When the economy of country have to depend on the industrial that emphasize with

the production for exporting, and there is a production. It must have the products receiving by

using logistics system. According to the export and import statistic, there are increasing every

year. For this reason, the state always tries to develop the transportation system, for example

the new airport construction, Suvarnabhumi international airport, when this project is finish.

It will make the transportation in the country is better and faster moreover; the location is the

effect that support Thailand to develop the ability to be the distribution center in the

Indochina region such as Malaysia, Singapore, Myanmar, Cambodia, Laos, included China

southern.

Transportation system has landing transportation that has long road 170,000 km. high

ways 25,000 km. combination with railroad more than 4,000 km. connect between country

size and pass to neighbors hood country. Moreover air transportation have international

airport 7 places, domestic airport 25 places and water transportation there are international

port for five ports such as Bangkok port, Laem chabang port, Maptaphudt port, Songkha port

and Puket port but transportation system in Thailand is depend on truck which is the most

quantity and accept convenience and fast it is reason growing of automobile industrial. That


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5 | P a g e

is made for carriage more weight. Construction of road to be increase always that makes each

year can distribution to local for much tons

From information below that the most quantity transportation is landing so trucks is

important vehicles for distribute goods to local that make logistics business increase by

statistic about commercial increase, high sale volume. In distribution by truck is hard for

overweight carriage for breakeven and long time to distribute. Truck is not maintenance

because driver is not owner who is employee only that make owner must be maintenance

themselves, fixed and change spare part always for truck or car have long time and safety

although changing spare part at that time have to pay much more money.


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6 | P a g e

Situation of Industry

Thailand has problem with export the auto part industry. The auto part industry has

exporting decline stage at 43.9%(e.g. Souwalak, 1997) compare with the same period of last

year. The main factor effect continuously is the economic crisis and the dimension of many

factors such as world oil price fluctuation make the oil price high and effect to world

economic. From the reason to effect the car producer industry and car market has decrease of

sales volume. That effect to the individual car user influent to decrease customer buying

power and customer loyalty. From the continuous effect car producer industry and auto part

industry although , in the present of market situation it can build the opportunity for spare

part business growing because the customer favor to use the old car or no chance to buy a

new car. Thus, increase the spare part product for customer who would like to maintenance

their cars. Make the spare part product has high demand for sales. The customer doesnt

desire to buy new car because the difficult about the contract and high risk to has more debt.

The customer favor to use old car and second hand car because low price and more product to

offer from the statistical of export spare part product of Thailand researches by the federation

of Thailand industries found that has continuous to expanding. On May 2009, has the highest

expanding to 40.4 % show opposite with the export of auto part and mechanical aredecreasing.

However, in the auto part industrial is strong competing with competitors. It is

necessary to reduce cost and develop a quality of product to increase the customer acceptable

the product. The entrepreneurs necessary to build the business relationship with car center

and garage business. In the present, Car is the necessary vehicle used in human daily life for

convenience and comfortable to do the business and many activities such as transportation

and service to the customer. Therefore, a spare part is the importance equipment for car

maintenance and necessary to use in every vehicle. So spare part market is high profit and

grows continuously and very interesting to invest the business with large customer who use

car and need to maintenance car. From this reasons, he secondhand spare part business can

call Chiang Kong spare part which are almost from Japan and some from Europe. Nowadays

Chiang Kong spare part is very famous and popular in all groups of car users such both of

passenger cars and commercial cars.(e.g. The federal of business development in Roy,1993)

In the beginning, spare part business is imported the spare part unsystematic but develop in


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7 | P a g e

later. It has more high quality of products which import to the big resource at Pathumwan and

Lhuksi intersection. Ten years later, spare part business distribute around in Bangkok area

including individual shop and group shop However the big shop in Pathumwan which sale

spare part in expensive and make the most of customers change to buy in outskirt. Beside

this, its convenience to go but Chiang Kong at Wong Wian Odian is the source of domesticsecondhand spare part is not imported and it liquidation. When the persons think about

Chiang Kong spare part, Chiang Kong is imported spare part of Japans spare part. Name

Chiang Kong from Chiang Kong shrine which is the famous shrine before it has old car

selling.

From the surveying, numbers of Chiang Kong shop in Roy-ad are six shops

approximately. There are motor, gear, wheel, gear wheel etc. The big resource imported spare

part from Japan and sales of spare part market in Roy-ad are fifty to sixty million Baht peryear. The trend of sale has increase and higher of spare part shop. In year 2541 it has auto

part shop and Chiang Kong spare part only three shops but now has six shops 5 and from

customers need and increasing of necessary to use spare part depend on the number of truck

increase in every year.


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8 | P a g e

Product/ Service (in General)

General spare parts are the product that about car such as Engine, Fuel tanks,

Intake, Air system, Cvt continuous various transmission, Front suspension, Under rear,

Wheel and Brake system. This group product can offer to customer when they want, large

group of many people use these product. There are many parts.

Part 1: Engine

- Oil filter - Air filter

- Oil meter - Front seal

- Seal oil - Crank case

- Oil cap - Cylinder head gasket

- Trimming belt - Trimming belt idler (starter)

- Trimming belt idler (follower) - Oil color

- Water pump - Radiator fluid

- Radiator -Radiator tank

- Radiator cap - Left engine insulator

- Right engine insulator - Front engine insulator

- EGR value - Airmassmitor

- Intake gasket - Power steering pump

- Turbo - Inter cooler


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Part 2: Fuel tanks, Intake, Air system

- Benzie Oil Filter - Charcoal

- Charcoal valve - Manifold gasket set

- Catalytic Converter - Compressor

- Air Dryer - Condenser

Part 3: CVT continuous various transmission

- Automatic transmission

- Automatic transmission Fluid

- Automatic transmission Fitter

- Fluid gasket

- Gear Insulator


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Part 4: Front Suspension

- Bush thrust arm

- Thrust arm (front/ left)

- Thrust arm (rear/ right)

- Thrust arm (rear/ left)

- Bush control arm (inside)

- Bush control arm (outside)

- Control arm (front/ left-right)

- Bush control arm (rear/ left-right)

- Control arm (rear/left)

- Control arm (rear/right)

- Balljoint steering (C-shape/left)

- Balljoint steering (C-shape/right)

- Front wheel bearing

- Rubber buffer

- Axil shaft (in-left/right)

- Axil shaft (out-left/right)

- Spider joint bearing kit (out-left)

- Shock absorber (Front/left-right)

- Front stop buffet (front-left/right)

- Front shock absorber boot kit(left/right)


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11 | P a g e

Part 5: Wheel and Brake System

- Front Brake Pad Kit

- Front Disk Brake

- Rear Brake Pad Kit

- Rear Disk Brake


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12 | P a g e

Accessory Spare partsare the accessories for customer who want to modified

car, they use them for decorate car to modern and look suitable for they want.

Part 1: Electric System

- Left front light - Right front light

- Low trumpet - High Trumpet

- Front windshield wiper blade left - Tiger bullet dynamo

- Front windshield wiper bland right - Right rear light

- Front windshield wiper blade Motor - Glass Cleaner

- Belt thickness - Ring thickness

- Shove Thickness - Front light switch

- Exigent light - Light mudguards

- Left light buffer - Right light buffer

- Left rear light


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Large spare partsare the big spare part of a car such as Front wind shield, Front

Bumper, Back Bumper. They are important for all cars because this part is component of

style of car. If cars dont have this, they arent perfectly.

Part 1: Under rear

- Bush rear bar steel ring left

- Bush rear bar steel ring right

- Button rear wheel

- Chock up spring rear wheel left and right

- Stop buffer shock absorber rear left- right

- Shock absorber left- right

- Chock up spring


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Part 2: Body

- Front wind shield - Front Bumper

- Back Bumper - Front Hood

- Back Hood - Boiler

- Front Spoiler Bumper - Back Spoiler Bumper- Left Front Chromium Bumper - Right Front Chromium Bumper

- Back Chromium Bumper - Front Choke-up Hood

- Front Left Latch - Front Right Latch

- Back Left Latch - Back Right Latch

- Front left glass gutter - Front right glass gutter

- Back left glass gutter - Back right glass gutter

- Key remote - Key


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Vision

Mae Korn spare part is to be the largest leader provides all of spare part products and

service in the Chiang Rai.

Mission

Mae Korn spare part earn customers satisfaction and trustworthy with high quality

and variety of products anticipate their requirement and create the great value of product with

reasonable price and service with friendly greeting and smile. We emphasize is on the garage

market include individual car user. We expand market in Chiang Rai and expand the business

growth which related with customers order for provide opportunity profit. In addition, we

applying computing technology for inventory management and customers can order though

website. Beside this we believe that lasting business success is built upon ethical that had

customer above profit which we operate to centre of spare part product and service we do, we

act with honesty, fairness and integrity. Moreover we concern the corporate social

responsibility to the social activities and environment friendly. We recruit, develop, motivate,

reward and retain personal of ability to be the technician working condition, superior

leadership, and condensation on the basis of performance with high degree of employee

security.


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16 | P a g e

Company Strategy

Corporate Level

Market Development

Mae Korn spare part choose to establish and introducing the all of spare part products

into Mae Korn area where is the new market geographic area which we located the largest

spare part shop in Chiang Rai. We position on the general customers market for passenger

cars and commercial cars. In the future, we are planning to expand new market in the

neighborhood like Payao. We think market development can be good opportunity because if

we expand new market, we can get more customers and we can gain more profit and market

share especially in Mae Korn area because of there are no spare part business in this area.

Therefore, we choose the market development strategy apply to our business.

Business Level

Differentiate

Mae Korn spare part has target customers are the general customers, garages and

retail shop and the main target is main focus on the general customers where require spare

part product for service their car maintenance and modified the garages require spare part

products for sell to their customers. In addition, there are two main competitors available. For

our business is new entry in the spare market in Chiangrai we necessary to create differentiate

from competitors. We provide higher technology than Petch Yon spare part shop and higher

accessible for customers than Charean Yon spare part shop. Moreover there are many

competitors are provide low technology and accessible.

Mae Korn spare part provide the convenience for customers that we offer customers

comfortable such as parking lots, cleanness, and located the main road where can motivate

the customers easy accessible to our shop. In technology innovation, we apply the barcode

system for accuracy and convenience for fasten service.


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Functional Level

Marketing Management

Mae Korn spare part focus on standard and more variety of products include the high

quality all of spare part. Moreover we concern about warranty of products and we have

products guaranty to make customers trust in our spare part. In addition, we have a special

price and discount for customers who loyalty with our shop and make our customers satisfy

to come to our shop again. In the advertising we would like to provide the marketing strategy

such as public relation, bill broad etc. we do the marketing strategy to race our customers.

Human Resource Management

Mae Korn spare parts have a good procurement process to recruit our staff including

the recruiting the high technician skill of employees or spare part professor for provide the

clearly information and describe the right products uses. We emphasize in sales person

training for right information with well understand about products and our staff can describe

all of spare part to customers that they want to know the information appropriate use with

their objective.


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18 | P a g e

Chapter 3

Marketing

Market Feasibility Study

Market Analysis

General Environment Analysis

From the general studying in Chiang Rai of spare part business information base on

customer buying power of Chiang Rai population. From the information present of Chiang

Rai population has is males has income level no more than 30,000 baht per month. The most

of population more than 20 years old. (e.g. Akkadech,2007) The most of customer of spare part

business is the owner of garage and car user that has high buying power for the observation

of the many garages can provide their service for the customer. The owner of the garages

buys spare part products follow by customer order that can not specify the products.

Furthermore, form the observation has 90% of consumer who use car to convenience them

Political Analysis

In car market situation many country has good sigh to recover the car business make

the buyer more confident to buy a cars with high power effect to demand of car and car spare

part is increasingly.

For the government regulation of Thailand is very advantage for our business on the

car spare part tax reduces in FTA and AFTA regulation.

From the discussion of Thailand Economist 5 % of tax on automobiles and parts

traded among the six founding ASEAN countries -Thailand, Malaysia, Singapore, Brunei, the

Philippines and Indonesia that was abolished on January 1, in a move towards turning

ASEAN into a single market. The regulation of ASEAN agreement would help ASEAN

nations become more competitive against other Asian giants particularly China and India.

Despite the global recession last year, auto sales in China reached 13 million units and in

India 2.2 million units, while combined sales in ASEAN hit 1.8 million units. Since major

markets such as the US, Europe and Japan are saturated and stagnant, due to the financial

crisis, any growth in the auto industry would have to take place in the Asian region,the


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liberalization of the auto and parts trade will not only help ASEAN manufacturers, but also

draw investment into the region.

With the tariff barrier in ASEAN markets lifted, it would not be surprising to see a

particular product being manufactured in one country and exported to other countries within

the region, But it will also depend on the policy and risk management of each company. Such

as Honda assembly plants in several ASEAN countries and have been utilizing the Aico

(Asean Industrial Cooperation) scheme and AFTA to dramatically lower the cost for

purchasing parts. This has helped strengthen Honda manufacturing in each country and raised

the level of competitiveness.

According to Kasikorn Research Centre (KResearch), Thailand's exports of auto parts

could expand by 18-22 per cent this year to Bt150 billion-Bt155 billion after plunging by 23

per cent to Bt127 billion last year due to drop in demand from the global recession.OEM

(original) auto parts will be the main category benefiting from these changes, given their high

export value that is nine times higher than REM (spare) items," it stated in research published

earlier this month. From K research among the six founding ASEAN countries, Indonesia is

expected to be the most promising market for Thai parts exports, followed by Malaysia and

the Philippines.

Auto parts for small Japanese passenger cars and commercial vehicles, such as

electronic components, engines and drive-train components that are of high value, have been

embraced by these markets for their OEM quality. In addition, relocation of manufacturing

bases of foreign automakers into Thailand is likely to boost demand for locally-made REM

parts, especially for export-oriented production.

Toyota Motor Thailand, the country's largest producer and exporter of vehicles has

the scrapping of the import duty could help the ASEAN auto market increase by as much as

10 per cent. Thailand would benefit greatly from this, with more income for the government

from the increased excise, value-added and corporate taxes.The arrival of new models

produced under the Thai government's eco car project will also serve as a boost for Thai auto

exports to Asean.


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Nissan will be the first company to launch an eco car in March, while Honda is

expected to unveil its model at the end of this year or early next year.Other companies in the

project are Mitsubishi, Tata, Suzuki and Toyota.

According to the eco car guidelines, each manufacturer must produce at least 100,000 eco

cars a year by the fifth year of production, with 50,000 units exported. However, the AFTA

scheme also brings concerns, particularly for parts makers with high production costs and no

research and development facility. This means that pure Thai suppliers (1st, 2nd and 3rd

tiers) need to raise their competitiveness in order to survive,

Presently local parts makers have to bear higher costs than others due to raw material

import duties and eventually lose competitiveness, since imports from ASEAN are not

taxed. So, K Research also noted that local suppliers may be challenged by an influx of truck

and bus parts imported from Indonesia.

Nevertheless the Thai auto industry still has brighter potential than those of other

ASEAN nations, and cutting out the 5-per-cent import duty does not pose a big difference in

retail pricing of vehicles sold within the region. Thus, the import duty for AFTA has been

incrementally lowered over the years, and there is not much difference between 5 per cent

and no import duty. Automakers in Thailand, including Honda, have been planning and

running operations incorporating the AFTA scheme for years.

Asean is the largest export market for Honda, representing 78 per cent of the

company's auto exports last year Motorcycle market not affected. The ASEAN motorbike

market could expand as a result of AFTA, but not by as much as the auto market. The

motorcycle markets in many ASEAN countries, especially Thailand, are already saturated

and for the market to expand there needs to be new models to stimulate sales.

While AFTA is simply an import duty elimination scheme among AFTA members,

the next level of integration lies in the AFTA Economic Cooperation (AEC), which is

expected to completely transform ASEAN into one economic community by 2015. With

investment shifting from developed regions such as the US, Europe and Japan to Asia,

ASEANwould benefit from AEC, which would serve as an incentive to attract investors.


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Thai suppliers that are capable enough can also set up operations in other ASEAN

countries, while those that are weaker may need assistance from parent companies. "The next

challenge for automobile companies in this region (as well as around the world), is the

coming of the alternative energy era, and we must be prepared for this in order to be able to

draw in investment and make Thailand a window the ASEAN

Kingsley Wijayasinhao January 25, 2010 the nation

http://www.nationmultimedia.com/2010/01/25/business/business_30121040.php

Encouraged by the ASEAN Free Trade Agreement, several Malaysian auto-parts

producers have set up shop in Thailand, using the Kingdom as their manufacturing base.

Hemaraj Land and Development Plc's president and chief executive officer, David R

Nardone, said that his company had sold developed land to six auto-parts firms from

Malaysia: Hicom-Teck See Manufacturing, Changchaut Plastic Co Ltd, Technic Asia Co Ltd,

Ingress Autoventures Co Ltd, Metrode Co Ltd and Siam CM (Clarion) Co Ltd.

The company is negotiating with several more Malaysian auto-parts makers that have

expressed an interest in expanding their investment in Thailand.

"We believe that auto-parts firms from Malaysia are interested in expanding their investment

in Thailand under the concept of clusters that will provide parts to auto-assemblers in

Thailand," Nardone said. Hicom-Teck See's chairman, Tuan Haji Abbas Mehad, who hasinvested Bt300 million in a bumper-manufacturing facility on Hemaraj's industrial estate on

Thailand's Eastern Seaboard, said that Thailand's auto industry had a potential for growth as

the economy grew. It is Hicom's first such facility outside Malaysia, but if the market

warrants it, the company would like to expand its activities to make other parts

Somluck Srimalee The Nation

http://www.nationmultimedia.com/search/read.php?newsid=90536&keyword=AFTA

Thailand is set to benefit tremendously from the elimination of import duties on

automobiles and parts under the ASEAN Free Trade Area scheme, industry leaders

regulation. Thus, the regulation of AFTA and ASEAN make Thailand has benefit with auto

part industry and related industry such as spare part business that more benefit for our

business.


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Economy Analysis

Population of Chiang rai are 1,255,387 people of Gross Provincial Product (GPP) of

2549 totaled 50,093 million baht growth last year, up from 9.38 percent average per capita

income of 38,332 baht per year

Figure 3.1 Gross Provincial Product in Chaing rai

ProductionValue

( Million )Percentage

Agricultural 15,943 31

Retail and wholesale 9,396 19

Industry 3,264 7

Construction 1,910 4

Hotels / restaurants 1,362 3

Other 18,218 36

GPP50,093

GPI38,332

Figure 3.2 Gross Provincial Product in Chaing rai( Percentage)

31%

19%

6%4%

3%

37%

Gross Provincial Product of Chiang rai

Agriculture

Retai andWholesale

Industry

Construction

Hotel and

Restaurants

Other


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The economy is the main agricultural provinces (31.03%). secondary, including retail

and wholesale (18.76%), industry (3.98%), construction (3.81%) and hotels / restaurants

(2.72%), respectively, by the trade of the province depend on international trade. Partner

country of Chiang Rai is the People's Republic of China (Yunnan Province), followed by the

Union of Myanmar and Lao PDR. Major export products include agricultural products Lmaidrying consumer products. Fuel, construction materials, automobile tires, food and beverages.

And medicine, respectively including major import of agricultural products, fresh vegetables,

apples sweet trolley fry timber cover consumer goods vehicles, equipment machinery,

equipment and coal, respectively

Income population average 35,109 baht per person per year.Balance of deposits in

commercial banks at the end of the month, Chiang Rai Province in September 2550 grew

281,742 million baht, up from last year's 5.02 per cent majority of the deposits of the

government. The money to finance a balance is growing 198,434 million baht, up from last

year's 7.27 percentage demand of personal loans. Business and finance-related agricultural

seasonality loan to deposit ratio was 70.4 percent up from 68.9 percent last year.

Figure 3.3 Statistics number of spare part shop in Chaing rai

Statistics number of spare part shop in Chaing rai

Registered CommercialConcentrated

Spare part shopYear 2546 Year 2547 Year 2548

Registered commercial

concentrate (Registered)

1 11 9

Registered commercial

concentrate (Cancel)

31 4 2

Total 31 38 45

Source: Administration of Chiang rai


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Figure 3.4 Volume production cars registered nationwide that Export and import auto parts

Volume production cars registered nationwide that Export and import auto parts

Year Volume

production cars.

(Cars).

Vehicle

registration.

Around the

country (cars).

Spare Parts (million

baht).

Export Import

2542 327,233 6,554,302 24,054.9 27,545.9

2543 411,721 6,727,008 32,208.6 58,240.5

2544 459,418 7,093,327 38,202.8 70,646.4

2545 580,000 7,480,000 45,000 83,000.0

Source: Federation of Thai Industries Department of Land Transport and the Customs

Department.

From several factors favorable to the business. Combined with the year 2540 - 2543,

consumers used an old car and new car slow to change. Buy new car has gradually during

2544 - 2545 more respectively. While vendors have accelerated advertising promotional

campaign continued consecutive years. Has attracted the interest of consumers shopping

satisfaction levels with the price you want more. In exports is in relatively good standard.

Many countries are gradually phased order resulting plant products to meet consumers in

both domestic and international full. Also during the year 2543 through the measures required

to use plant parts within the country and represents percentage from 45 to 72 according to the

type of vehicle. Even after being canceled since such measures since 2543, but the factory

continues to use parts of the country at relatively high for the year 2545 new car assembly

plant has about 580,000 cars, up 26.2 percent from the previous year has resulted for used

auto parts increased by with. The replacement parts market. Based on vehicle registration

with the Department of Transportation throughout the country in 2544 there were 7.09

million vehicles, up from 10 the previous year to 1.6 times the vehicle is registered for the

year 2545 throughout the country about 7.5 million vehicles, up 5.5 percent from the previous

year by a. commercial vehicles and passenger cars 63 per cent 37 per cent use cars age 1 - 5

years, approximately 1.5 million units or 20 percent of vehicles aged from 6 years old up to 6

million vehicles a number of cars began conditions are relatively old age of 6 years of use

since it will have to expense maintenance and repair parts costs somewhat and depending on

the type and quality of parts used for would result in business growth by parts with.


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brining pays the budget of the government sector is down. The exporting decelerates down

and lead part reaches to expand price consumer index decelerates to follow fuel price that

fines continual down for the deposit and the credit still expand.

Thus in the part of the state commercial of the credit still has the investment of the

private sector which, bank should have strict more and more in credit alms of the investment.

Then effect to we should planning in the part of investment and arrangement make money in

the different format for reduction the problem in mobilizing asset that will be arrival.

Although, rate of credit still come the growth but when compare with the economy that

generally be attractive for to have an effect to the beginning to do the business format.

Social Analysis

Transportation is very important in people daily life. Transportation consists of many

vehicles such as car, rail, air etc. Car is very important thing for necessary and convenience

for people. Moreover, Chiang Rai is agriculture province most of people is agriculturist and

usually use car and agricultural vehicle for agricultural. For this reason, cause the spare part

product is important for their vehicle. However, the attitude of people who use individual car

or commercial cars always think the safety is come first. That causes people willing to pay

for safety such as car maintenance and modify etc. for their confidential drive. Most of

people like to check for car maintenance at the garage or car center service that certainly

growing effect of spare part business extremely.

Technology Analysis

The scientific and technology progression knowledge lead the change about process

of product popularly in the world. Process of product should have the increase efficiency and

reduce costs and including produce new product and service and also process about new

marketing. Information Technology progression can happen fast communication. The place is

basically carry appeared growing and in the present people want to convenience in

communication which car is important in their life. Many companies provide modern product

to customer for suitable with their lifestyle by comfortable product or service. New

technology can change old things to new things such as auto part or spare part business is

providing new technology for customer via concern main customers using.


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The research of economy factor to influent the customer behavior to buy a spare part product,

Akkadech Roperoon, 2550

Competitor Analysis (3C Analysis)

Competitor Analysis

Figure 3.5 Statistic of Spare part shop in Chiang rai

Statistic of Spare part shop in Chiang rai

31 December 2005

Registered commercial information Number of garages

2003 2004 2005

Registered spare part shop 1 11 9

Canceled Registered spare part shop - 4 4

Total 31 38 45

Source: Administration of Chiang Rai

Nowadays spare part business is continuously competition because the number of

passenger car using, secondhand cars, and car that use for agriculture have trend to increase.

There is effect to spare part business has more expand and has more necessary for every kind

of cars in addition there is high profit business. Spare part shop in Chiang Rai isnt enough

and cannot response for customers need because there is high start up and investment include

the location in the city and cause of limited area in Chiang Rai when compare with area

around Mae Korn, we have more opportunity to establish spare part shop because there have

trend to increase growth. Mae Korn spare part is located in Mae korn area where near the

Highway main road and we can target customers in Chiang Rai and neighborhood like Payaowhere this area less of spare part shop and there is the centre of transportation and near the

Chiang Rai bus station for convenience to transport. Because of spare part shop in Mae korn

area is not enough, so most of customers go to buy spare part in inner city.

Overall, spare part business which located in Mae Korn has lass of competitors when

we compare with situation analysis that higher competition. Almost the spare part

competition, there are emphasize in quality of products and reasonable price including more

variety of products. In the future, spare part market in Mae Korn area has expand and trend t


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increase because economic in Chiang Rai expand and effect to increasing of spare part

market growth. The lists of our competitors are

Charearn Yont

Charern yon is the main competitor of Mae Korn spare part shop. Charern yon

established for many years ago. In Charern Yon 2002 and they launch new branch that is

more comfortable and modern in 2009. Spare part is the product of their business. The spare

part products of Charern yon are almost product has very high quality such as pure spare

part that has high price. In another hand, Charern yon apply higher technology than Mae

Korn spare part shop such as customers ordering, purchasing system, customer service etc.

Strengths:

- There company apply higher technology that can make customers comfortable

- There company has the professional sales person to service their customers

- There products has high quality and concern on quality first

- There company support more sales activities such bill board, radio, etc.

- There company has customers loyalty


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Weaknesses:

- There company has very high price in the view of customers

- There company has very difficult to accessible in the view of the garages

- There company has high cost to expense when operating the business such the

marketing cost, financial cost, etc.


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Petch yont

Petch yont is the one of main competitors of Mae Korn spare part shop. Petch yon

located in Chiang rai country, and establish on 1982. Petch yon is the large and well known

spare part shop in Chiang Rai those sell all of spare part products. In addition, Petch yon

spare part shop set price in reasonable price which not too high and appropriate with the

quality of products. Petch yon has more variety of products that can makes customers

satisfaction and satisfies with customers requirement. Moreover Petch yon is easy to

accessible for customers because they are reliable and open for many years ago.

Strengths:

- There company has more variety of products

- There company is easy to accessible for customers

- There company set price of spare part is not too high

- There company has customers loyalty


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Weaknesses:

- There company has low technology to apply their shop

- There shop is no more area and narrow spare part shop

SWOT Analysis

To analyze the business from external and internal environment that effect to the

business operation and investment.

Strengths Weaknesses

1. The business has more variety of product

and service with the efficiency employee and

expertise technician.

2. The company allocated the shop near the

city to serve the customer that has high

demand on spare part business.

3. The product has quality and sales at

reasonable price concern on user safety.

4. The company applies support salesactivities such as advertising to increase

sales.

5. The business operates base on market

information, competing competitors,

customer demand and material.

1. The customer has customer loyalty with

others products.

2. High cost to investment and market

research for business implementation.

3. The spare pare business has direct and

indirect competitors.

Opportunities Threats1. In the present, people popular to fix their

car instead to buy new cars and popular to

modified their car that effect to spare part

business grow increasing.

2. The growing rate of car user in Chiang Rai

province for last 4 years.

1. Has many competitors from direct and

indirect such as the spare part shop allocated

at Muang Chiang Rai and the garage to sales

spare part with many car center services.

2. The most of peoplelike to use car center

service that include car maintenance

guarantee.


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3. The economic crisis effect to customer

buying power that effect to sales volume and

debt rate is very low to make the bank strict

more and more in credit arm of the

investment.That effect for source of capital

and investment.


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Customer Analysis

Figure 3.6 Number of new vehicles registered under motor act by type of vehicle: 2004-2008

Type of vehicle 2004 2005 2006 2007 2008

Sedan (Not more than 7passengers)

2,459 1,393 2,729 2,704 2,993

Microbus & passengerpick up

77 39 73 93 95

Van & pick up 4,198 2,815 4,791 4,439 4,220

Motor tricycle - - - - -

Interprovincial taxi(Sedan)

- - - - -

Urban taxi (Sedan) - - - - -

Fixed route taxi - - - - -

Motor tricycle taxi (TukTuk)

- - - - -

Hotel taxi (Sedan) - - - - -

Tour taxi (Sedan) - - - - -

Car for hire (Sedan) - - - - -

Motorcycle 30,718 17,916 35,066 27,396 28,895

Tractor - 34 29 296 957

Road roller - 5 4 4 -

Farm's vehicle - - - - -

Automobile's trailer - - - - -

Public motorcycles - - 1 3 8

Total 37,452 22,202 42,693 34,935 37,168

Source: Chiang Rai Provincial Transport Office

From above car in Chaing rai does not increase every year that according to Chiang

Rai Provincial Transport Office can give information about for five years ago people doesnt

bought cars, they use to change or modified their car that make spare part is necessary for

them. From above in year 2004 to 2005 people does not to buy and buying car increase in

year 2006 may be in this year good economy and new car down in year 2007 and increase in

year 2008 again bit not more that depend on economic.


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Figure 3.7 Number of vehicle registered under motor vehicle act by type of vehicle:2004-2008

Type of vehicle 2004 2005 2006 2007 2008

Sedan (Not more than 7passengers)

377,416 453,433 31,186 35,425 38,418

Microbus & passengerpick up

24,938 31,817 3,902 4,107 4,202

Van & pick up 3,435 4,932 78,860 82,913 91,335

Motortricycle 66,110 90,395 2 3 3

Interprovincial taxi(Sedan)

- 2 2 2 2

Urban taxi (Sedan) - - - - -

Fixed route taxi 4 - - - -

Motortricycle taxi (Tuk

Tuk)222 229 226 226 226

Hotel taxi (Sedan) 34 42 36 46 46

Tour taxi (Sedan) - - - - -

Car for hire (Sedan) 3 - - - -

Motorcycle 281,677 323,915 326,557 333,410 362,305

Tractor 805 1,034 943 1,160 2,117

Road roller 177 209 192 192 192

Farm's vehicle 5 851 845 910 910

Automobile's trailer 4 5 4 4 4

Public motorcycles - - - 639 647

Total 754,830 906,864 442,755 459,037 500,407


From above in year 2006 registered under motor vehicle are lower that people used old car

more than new car although in 2007 and 2008 year are increase registered but they increase not

more.


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Figure 3.8 Number of new vehicles registered under land transport by of vehicle: 2004-2008

Type of vehicle 2005 2006 2007 2008

Bus 1,128 46 53 54

Fixed route bus 721 10 6 16

Non-fixed route bus 365 30 38 29

Private bus 42 6 9 9

Truck 1,419 2,247 2,255 306

Non-fixed route truck 1,321 1,750 1,939 170

Pick-up truck 14 141 130 60

Dangerous goods vehicle - - - -

Special purpose vehicle 1 7 3 -

10 wheeled - - - -

6 wheeled 935 1,027 1,181 -

4 wheeled 362 432 453 -

Truck tractor 2 25 1 26

Trailer 6 89 121 39

Semi-trailer 1 29 50 45

Private truck 98 497 316 132

Pick-up truck 89 453 292 98

Van 6 36 15 5

Liquid bulk vehicle 2 4 7 2

Dangerous goods vehicle 1 4 2 1

Special purpose vehicle - - - 9

Long-loading semi-trailer - - - -

10 wheeled - - - -

Type of vehicle 2005 2006 2007 2008

6 wheeled - - - -

4 wheeled - - - -Truck trator - - - 2

Trailer - - - 9

Sami trailer - - - 6

Other - - - -

Small rural bus 355 3 11 4

Non-Motorized Vehicle Act

B.E.2478- - - -

Total 2,902 2,296 2,319 360


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Figure 3.9 Number of vehicle registered under land transport act by type of vehicle: 2004-2008

Types of vehicle 2004 2005 2006 2007 2008

Bus 1,274 1,233 1,331 1,341 1,396

Fixed route bus 885 804 874 868 884

Non-fixed route bus 337 376 396 399 429Private bus 52 53 61 74 83

Truck 7,565 7,565 8,359 8,843 16,088

Non-fixed route truck 1,165 1,333 1,547 1,817 2,760

Pick-up truck - 948 1,050 - 60

Dangerous goods vehicle - 3 3 - 3

Special purpose vehicle - 40 45 - 45

10 wheeled 725 - - - 725

6 wheeled 60 - - 1,181 1,181

4 wheeled 97 - - 453 453Truck tractor 43 60 76 1 27

Trailer 170 222 304 121 160

Semi-trailer 41 60 68 50 95

Other 29 - 1 11 11

Private truck 6,039 5,890 6,455 6,675 12,973

Pick-up truck - 4,921 5,370 - 5,468

Van - 205 235 - 240

Liquid bulk vehicle - 114 130 - 132

Dangerous goods vehicle - 67 61 - 62Special purpose vehicle - 361 378 - 387

Long-loading semi-trailer - 4 4 - -

10 wheeled 691 - - - -

6 wheeled 403 - - 1,185 1,185

4 wheeled 4,178 - - 5,467 5,467

Truck trator 56 55 66 - 2

Trailer 83 111 142 7 16

Sami trailer 61 52 69 8 14

Other 567 - - 8 -Small rural bus 361 342 357 351 355

Non-Motorized Vehicle Act

B.E.2478 - - - - -

TOTAL 8,839 8,798 9,690 10,184 17,484



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Figure 3.10 Statistical road traffic accidents casualties and property damaged

YearNumber of

Number of casualties

Property damaged

reported accidents Killed Injured

2003 1,205 281 1,331 34,710,100

2004 1,453 282 1,505 20,221,300

2005 850 196 1,138 22,117,300

2006 614 190 846 21,400,300

2007 1,225 255 909 20,928,000


From above is number of statistical road traffic accidents casualties and property

damaged that reported from Chiang Rai Provincial Transport Office that help we know about

property damaged of car in year 2007 that assume 1225 who accidental then bought spare

from Mae korn Alaiyont 1,225 x 7% = 85.75 car for purchase spare part.

Customer marketing information

Product: According to the research sample of people follow from most importance to

lease importance is quality of product (e.g Akkadech, 2007) varieties of product, the spare part

shop not sell old product to the customer and the last is the spare part shop can serve the

customer want the product is the main reason to influent customer buy the product. Spare

parts are the parts of automotive that were assembled in each system for running. There are 4

kinds of spare parts:

1. Pure spare parts Pure spare part were produced by car manufacturers, or the

suppliers that receive the order from the car manufacturers for using in assembly

the cars that can make sure in the quality, but the price is often high. These kind of

spare parts sell in the cars service center and the agents, or the spare parts shops.

2. Secondhand spare parts The secondhand spare parts were the pure spare parts,

but they were took off for reselling because these cars cannot use anyway, or the

owner of cars want to change the engine system. The old spare parts that still good

will take off and resell. These kind of spare parts were sold in the secondhand

spare parts shops (Zeangkong), and the price depends on the quality.

3. Equivalent spare parts This kind of spare parts were produced by the spare

parts suppliers for direct selling by identify the brand of cars in them. Equivalent


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spare parts have a several quality both high quality and low quality for provide the

customer want that has few of buying power. These kind of spare parts were sold

in the general spare parts shop.

4. Faked spare parts - The faked spare parts were produced for cloning the pure

spare parts both the dimension and packages by the others spare parts suppliers.The price of these kinds of spare parts is lower than the pure spare parts, but

higher than the equivalent spare part. The quality of these kind of spare parts also

lower than the pure spare parts, but they are similar or lower than the equivalent

spare parts.

Price: According to the research sample of people follow from most importance to

lease importance is the reasonable price with quality of product, The discount price for

permanent customer, Product has low price when compare with competitors price and the

customer can negotiated the price is the influent factor effect customer buy the product.

Distribution channel: According to the research sample of people follow from most

importance to lease importance is the shop has technician to advice the customer fluently,

The parking is available for customer cars, The convenience to customer buy the product,

The delivery service the product at customer home and the shop style and decoration make

customer comfortable is the influent factor effect customer buy the product.

Support sales: According to the research sample of people follow from most

importance to lease importance is the guarantee of the product, The shop offer more product

information such as brand or price to show the customer directly, The shop has discount

promotion and give the customer use their credit to buy the product is the influent factor

effect customer buy the product.


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General customers

There are many peopl

per house so there are buying

spare part will growth for ser

their but car which more than

present general customer fam

good quality spare part in suit

part more than real price.

Figure 3.11 Number of demo

Year Male

2005 606,68

2006 606,39

2007 605,96

2008 606,77

Source: http://www.dopa.go.t

Assume that each families ha

2008 there are 446,346 famili

So assume 446

Figure 3.12 Market segmenta

38%

in Chiang rai, according to number of hous

car increase in every year that number of car

e to customer although new car dont want t

five year need to change or modified their c

us to buy spare part by themselves because

able price for their car and avoid garage char

raphy in Chiang rai for 2005-2008

Female Total N

618,369 1,225,058

619,323 1,225,713

619,050 1,225,013

620,542 1,227,317

/xstat/popyear.html

one car we have segmentation in market for

s

,346 X 7% = 31,244 people in market

tion of Mae Korn Aliayont

10% 7%

45%

Market segmentation

Other Spare par

shopMaekorn Alaiyo

Chalernyont

39 | P a g e

there are one car

increase that our

buy spare part for

r certainly. In the

hey want to get

ge price for spare

mber of house

421,814

431,763

439,072

446,346

10 % for year

nt


51/192

Figure 3.13 Customer separa

Figure 3.14 Customer separa

Gender

Male

Female

Total

According to research

400 people, male 240 people

about car and spare part more

more than female.

40%

e by gender

e by gender

Number Pe

240

160

400

about customer behavior separate by gender

re more than female because in fact male ha

than female so male is target group in buyin

60%

Gender

Male

Female

40 | P a g e

centage

60

40

100

in Chiang rai from

ve knowledge

our spare part


52/192

Figure 3.15 Number of custo


Age

Less than 20 years

20-30 years

31-40 years

41-50 years

51-60 years

More than 60 years

Total


400 people general customer i

work and use car always in th

they use more car.

13%

1

N

er separate by age

er separate by age

Number(People) Pe

8

168

116

52

50

6

400


n 20-30 year will buy spare part mostly beca

ir life routine and secondary is 31-40 years

2%

42%

9%

.50%

.50%

mber of customer (Age)

Less than 20

20-30 year

31-40 year

41-50 year

51-60 year

More than

41 | P a g e

centage

2

42

29

13

12.5

1.5

100

in Chiang rai from

use this aging are

hat same reason

year

0 years


53/192


Figure 3.18 Show number of

Status

Single

Married

Divorce

Total



make us known about status i

necessary for all car when ow

48.

Nu

er separate by status

customer separate by status

Number(People) Pe

190

194

16

400


n Single group and Married group are same

not important in selecting spare part becaus

ner want change or modifies.

47.5

4

ber of customer (status)

42 | P a g e

centage

47.5

48.5

4

100

in Chiang rai from

uantities that

spare part is

Single

Married

Divorce


54/192



Education Level

Primary education

High School

Diploma

Bachelor DegreeHigher than Bachelor Deg

Total



want to get more quality spar

because they have power to b

they go to select when compa

44.

25.5

Num

er separate by education

customer separate by education

Number(People) P

10

58

52

178ee 102

400


n Bachelor Degree are mostly to buying spa

part for their car and high school and diplo

y spare part for their car that suitable and su

e with garage buying.

2.5

14.5

13

er of customer (Education)

Primary

High sch

Diploma

Bachelo

Higher t

Degree

43 | P a g e

rcentage

2.5

14.5

13

44.525.5

100

in Chiang rai from

e part because they

a are same that

itable price when

education

ool

r degree

han Bachelor


55/192



Occupation

Student

Governmental

Individual employee

Private business

Garage

Agriculture/Hirer

HousewifeTotal

From the research of

according to sample of popul

private business will buying

they go they have change s

someone frequency so they w

Many year ago a spare part p

The garages are the main c

customer but in the present t

the customer and the market

like to buy the spare part by t

of product, price, technician

worseness from their custome

15.5

15.50%

1.50%

Nu

er separate by occupation

customer separate by occupation

Number(People) P

26

172

62

90

6

38

6400

the factor to buy a spare part product in

tion who is males about 400 people in Gove

pare part by themselves because they go to

are part for safety and business have to c

ill repair always and want to select spare wh

roduct is the product which necessary for th

stomer of spare part market although the

e customer behavior has more factors to in

inuously. Moreover, the customer who is th

emselves because they dont thrust of the g

nd service dissatisfaction that make the gar

r and make the general is main target of spa

6.50%

43%

0%

.50%

1.50%

ber of customer separate

(Occupation)

Student

Govern

Individu

Private b

Garage

Agricult

Housewi

44 | P a g e

ercentage

6.5

43

15.5

15.5

1.5

9.5

1.5100

Chiang rai which

nmental group and

anywhere so when

ommunicated with

ich suitable for car.

e garages business.

arage is the main

fluent and effect to

garages customer

rages about quality

ges has less thrust

e part market now.

ental

l employee

usiness

re/Hirer

fe


56/192

Garages

Garages are necessary

has high customer purchasi

business are growing and rapi

Figure 3.23 Show quantities

Figure 3.24 Quantities and pe

Types

One owner

Limited Company

Limited Partnership

Total

From above show th

secondly is one owner is 34.4

46%

20%

to buy spare part product to apply with thei

ng. They buy product frequency. Garage

dly with high sales volume. So, they are mai

nd percentage of garages

rcentage of garages

Quantities Percentag

31 34.4

41 45.6

18 20.0

90 100

e most entrepreneurs is Limited Compan

percent and the last one is Limited Partnersh

34%

Percentage of garages

One owner

Limited Com

Limited Part

45 | P a g e

r business and they

can support our

target customer.

e

y is 45.6 percent,

ip is 20 percent.

any

ership


57/192

Figure 3.25 Show quantities

Figure 3.26 Quantities and pe

Time of operation

Less than 5 years

5-10 years

11-20 years

More than 20 years

Total

From above show al

than 20 years is 35.6 % and

20 years is 25.6% and the ent

36%

Percent

nd percentage of garages separate by time o

rcentage of garages separate by time of oper

Quantities Pe

4

31

23

32

90

ost of the entrepreneurs that has the busin

-10 years of the business operation is 34.4

epreneurs that has business operation less th

4%

34%

26%

ge of garages separate by time

operation

Less than 5 y

5-10 years

11-20 years

More than 2

46 | P a g e

operation

tion

rcentage

4.4

34.4

25.6

35.6

100

ss operation more

and operation 11-

n 5 years is 4.4 %

f

ears

years


58/192


59/192

48 | P a g e

Figure 3.28 Percentage of machine used by entrepreneurs

Figure 3.29 Show the amount and percentage of machine used by entrepreneurs

Horse power of machine Amount Percentage

Less than or equal 50 horse

power

34 37.8

51-100 horse power 14 15.6

101-200 horse power 20 22.2

More than 200 horse power 22 24.4

Total 90 100

From aboveshow theEntrepreneurs e apply the machine is analyze by horse power is

use less than or equal 50 horse power machine is 34 and calculate in percentage is 37.8%, the

entrepreneur use 51-100 horse power machine is 14 and calculate in percentage is 15.6%, and

the entrepreneur use 101-200 horse power machine is 20 that calculated in percentage is 22.2

% and the last the entrepreneur used more

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