Section 2 Seat12 : LEMO Company

7/29/2019 Section 2 Seat12 : LEMO Company

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Preface

This project was prepared for investor who interest about juice. In part of our project,

we research and evaluation information that how project become successful, get profit and

benefit for investors or who interest. In the report including of analysis about background,

industry profile, marketing part, technical part, financial part, operation in organization part,

risk management part and conclusion of the project feasibility to see follow each parts for

understand in the our business

Therefore, we expect this project will make who interest with our company that get

benefit and profit to investors.

Sincerely your

1. Mr. Chawadet Anxsonwut 5131205012

2. Mr. Sarawut Aunvong 5131205057

3. Mr. Suphasak Ketsri 5131205060

4. Mr. Samart Chinsawatpun 5231205149

5. Mr. Nopparat Wiangya 5331207013

6. Mr. Phongpasin Binsomprasong 5331207020

7. Ms. Pimsana KaewKate 5331207023

8. Ms. Nang Lai Kham 5331207062

Group Number: 12

Section: 2



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TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION

1. BACKGROUND AND SIGNIFICANCE OF THE PROJECT 10-11

1.2 HISTORY OF NAKHON PHATHOM 111.3 PROJECT OBJECTIVES 12

1.4 BENEFITS OF PROJECT 12

1.5 TARGET GROUP 12

1.5.1 LEMON JUICE

1.5.2 SPAY DRYER

1.6 VISION 12

1.7 MISSION 12

1.8 ACTIVITIES 13

1.9 TIME FRAME OF THE STUDY 13

CHAPTER 2 INDUSTRY PROFILE 14

2.1 NATURE OF INDUSTRY 15

2.2 STIUATION OF INDUSTRY 16

2.3 PRODUCT AND SERVICE 17-18

2.3.1 LEMON JUICE

2.3.1.1 INTENSE JUICE

2.3.1.2 JUICE ORGANIC

2.3.2 NAO FRESH SPAY

CHAPTER 3 MARKETING FEASIBILITY STUDY 19

3.1 MARKETING ANALYSIS 20-23

3.1.1 GENERAL ENVIRONMENT ANALYSIS

3.2 MARKETING MIX STRATEGY 24

3.2.1 PRODUCT 24

3.2.2 PRICE 24

3.2.3 PROMOTION 25

3.2.4 PLACE 25



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3.3 STP ANALYSIS 26

3.4 COMPETITORS ANALYSIS 27-28

3.5 CUSTOMER ANALYSIS 29

3.5.1 PRODUCT QUALITY

3.5.2 PRODUCT SIZE

3.5.3 PACKAGING

3.5.4 BRAND NAME

3.5.5 HEATH CONCERNS

3.5.6 LEISURE ACTIVITIES

3.6 COMPWTITIVE ANALYSIS 30-31

3.6.1 PREMIUM ANALYSIS

3.6.2 MEDIUM MARKET

3.6.3 ECONOMIC MARKET

3.6.4 SUPER ECONOMIC MARKET

3.7 SLAE FORE FORECAST 32

3.8 MARKET EXPENSE 33-34

3.9 CONCLUSION 35

CHAPTER 4 TECHNICAL FEASIBILITY STUDY PRODUCTION AND

OPERATION ANALYSIS 36

4.1 PRE- OPERATION COST 37

4.2 INVESTMENT COST 37

4.3 DEPRECIATION 38-39

CHAPTER 5 OPERATION 40

5.1 LOCATION 41

5.2 FACILITIES LAYOUT 41-42

5.3 PRODUCTION COST 43-44

5.3.1 PRODUCTION CHARACTERISTIC



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5.4 MACHINE IN FACTORY 45-53

5.5 PRODUCTION PROCESS 54

5.6 LOGISTIC MANAGEMENT 54

5.7 FACILITIES MANAGEMENT 54

CHAPTER 6 ADMINISTRATION COST 55

6.1 MANAGEMENT ANALYSIS 56-57

6.2 ORGANIZATION CHARTS 58

6.3 EMPLOYEE SALARY COST 58

6.4 INFRASTRUCTURE COST 59

CHATPER 7 FINANCIAL ANALYSIS 60

7.1 STATEMENT OF CASH FLOW 61-65

7.2 BLANCE SHEET 66-70

CHAPTER 8 RISK ANALYSIS 71

8.1 RISK ANALYSIS OF PROJECT 72

8.1.1 EXTERNAL RISK 72

8.1.2 INTERNAL RISK 72-73

8.2 COMPETITIVE FACTOR 73

8.3 FINANCIAL RISK 74

8.3.1 SALE DECREASE 5% 74-78

8.3.2 SALE DECREASE 10 % 79-83

8.3.3 SALE DECREASE 15% 84-88

8.3.4 COST OF GOODS SOLD INCREASE 5 % 89-93



CHAPTER 9 CONCLUSION 104

CONCLUSION 105

REFERENCES



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TABLE OF FIGURE

FIGURE 1.1 LEMONS 10

FIGURE 2.1 LEMON JUICE 17

FIGURE 2.2 NAO FRESH SPAY 18

FIGURE 3.1 PEST ANALYSES 20

FIGURE 3.2 PROCESSS 22

FIGURE 3.3 CLEANING LEMON MACHINE 23

FIGURE 3.4 PUT LEMON JUICE INTO THE BOTTLE 23

FIGURE 3.5 POSITION MARKETING LEMON JUICE 26

FIGURE 3.6 POSITION MARKETING NAO FRESH SPAY 28

FIGURE 3.7 POPULATION IN YEAR 2555 31

FIGURE 5.1 LOCATED OF FACTORY 41

FIGURE 5.2 FRIST FLOOR 41

FIGURE 5.3 SECOND FLOOR 42

FIGURE 5.4 LEMON JUICE 43

FIGURE 5.5 NAO FRESH SPRAY 44

FIGURE 6.1 ORGANIZATION CHART 58



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TABLE OF TABLES

TABLE 1.1 ACTIVITIES 13

TABLE 3.1 NUMBER OF POPULATION YEAR 2555 31

TABLE 3.2 SALE FORECAST 32

TABLE 3.3 MARKETING EXPENSE 33

TABLE 3.4 MARKETING EXPENSE 2 34

TABLE 4.1 PRE-OPERATION COST 37

TABLE 4.2 INVESTMENT COST 37

TABLE 4.3 DEPRECIATION 38

TABLE 4.4 DEPRECIATION 2 39

TABLE 5.1 LEMON JUICE COST 43

TABLE 5.2 NAO FRESH SPAY COST 44

TABLE 6.1 EMPLOYEE SALARY 58

TABLE 6.2 INFRASTRUCTURE COST 59

TABLE 7.1 STATEMENT OF CASH FLOW YEAR 1 61





TABLE 7.6 BALANCE SHEET YEAR 1 66





TABLE 8.1 SALE DECREASE 5% YEAR 1 74





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TABLE 8.16 COST OF GOODS SOLD INCREASE 5% YEAR 1 89

















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Chapter 1

Introduction



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1.1 Background and significance of the project

Figure 1.1 Lemons

This project is chosen to be our project because lemon is an economically important

plant species. In each year it does indeed produce lime the minimal product in summer and

maximum product in rainy season. Our company avoid the problem seasonally of product,

had seen a way to transform the productivity of lemon. The products are as follows: 1.Lemon

Juice 2. Spay dryer we have contacted formulated from Institute of Science and Technology

of Thailand to develop.

Lemon is a type of sour taste fruits that results are included in the citrus green whenripe are going yellow. It has split the meat soaked in water as much as fruit and commonly

used as a condiment. In addition, there are also nutritious and medical.

In general the lemon‟s diameter approx 4 – 4.5 cm high 5 meters at full stick. Thorny

stems are slightly hairy leaves, long, slender, slightly resembling the orange and usually be

copious results throughout the year, but during the winter will be less and less lemon juice as

a native plant in Southeast Asia in this region for people to recognize and take advantage of

lemons came slowly for a long time.

Lemon juice is used in a variety of food and sour taste also used as a beverage, mixsugar, salt and lemon juice, which is well known in Thailand and foreign countries. In

addition, lemon juice has been used as an ingredient for cleansers, perfumes and

aromatherapy or dishwashing liquid. The important property is scurvy prevention, because in

lemon juice full of vitamin C. Lemon essential oil has a refreshing scent. Because ,the

chemical composition of Citronellyl , Acetate, Limonene, Terpeneol, Citric Acid, Malic Acid

and Ascorbic Acid help peel off dead skin and stimulate new cells help reduce dark spots or

scars.



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Lemon is one citrus fruit. Grown widely in Thailand such as Phetchaburi Province,

Surat Thani , Samut Sakhon, Nakhon Sawan, Nakhon Pathom and Kanchanaburi. Lemon as

an important economic plant that has a high demand throughout the year in the market. Now

a day economic growth is likely. The relatively high growth the lemon is used as a raw

material lemon is so important more trade, especially during the dry season months. March-April of each year will have a lemon. There is a higher than normal price about 3-4 during the

dry season due to the lemon will yield less. Therefore do well to grow citrus season.

1.2 History of Nakhon Phathom

Nakhon Pathom is a central province (Changwat) in Thailand. Its neighboring

provinces include Suphan Buri, Nontha Buri, Samut Sakhon, Kanchana Buri, Ratcha Buri,

Bangkok and Ayutthaya. The most attractive feature of the province is the „Phra Pathom

Chedi‟ which is a religious landmark of Thailand signifying Buddhism influx into the country

of Thailand. The province is also famous worldwide for its abundant varieties of famous

dishes and fruits.

As far as the history of the place is concerned, the name of Nakhon Pathom is derived from

„Nagara Pathama‟ in Pali language, which means „First city‟. Thus, it is usually referred to as

the earliest city in Thailand.(1)

Nakhon Pathom covers an area of 2,168 square kilometres or 542,081.6 acres. It is

divided into seven administrative districts or Amphoe, they are: Amphoe Muang Nakhon

Pathom, Amphoe Buddhamonthon, Amphoe Sam Phran, Amphoe Nakhon Chaisi, Amphoe

Bang Len, Amphoe Kamphaeng Saen, and Amphoe Don Toom. Most of the areas are plains

with no mountainous land, plateau are found in the west east of Amphoe Muang and Amphoe

Kamphaeng Saen. The plains along the Tha Cheen River (Nakhon Chaisi River) are the

location of Amphoe Nakhon Chaisi, Amphoe Sam Phran, and Amphoe Bang Len. These

fertile lands provide agricultural area for people, thus most of the residents earn their living

from agriculture; plantations, farming, growing food crops, and fruit orchards. Moreover,

Nakhon Pathom is well known for pomelo, some call the Nakhon Pathom the sweet pomelo

town.(2)

(1)

http://www.travelgrove.com/travel-guides/Thailand/Nakhon-Pathom-History-c1920596.html(2)http://www.thailand-delights.com/page400.html.



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1.3 Project objectives

1.3.1 To make more benefit to investor

1.3.2 To study about analysis local marketing in Chiang Rai

1.3.3 To apply theory in strategic management and others to practice

1.3.4 To know about evaluate and analysis project feasibility in real market

1.4 Benefits of project

1.4.1 Knowing feasibility of the project Researchers study and analyze with real

situation.

1.4.2 Knowing the situation and, understanding behavior of customer, and be able to

select and identify the right customer.

1.4.3 To be able to calculate profits and expenses, and find the way to get maximize

profits

1.5 Target group

1.5.1 Lemon juice

We have target group is people who have over 7 years old. By Lemon juice is fresh

lemon juice not put contaminants to occurred danger for body of customers; it can drink at

any age.

1.5.2 Spray dryer

We have target group is hotel, and household. It can be condition inside the rooms

when have musty smell, which can be refrain those smell is well.

1.6 Vision

- To be the leading manufacturer of lemon juice industry

1.7 Mission

- Produce the lemon product in good quality at an affordable price



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1.8 Activities

Activities/Month November December January February March

Study about nature of lemon

Research marketing in Thailand

Adapt specific formula of product

Operate production of product

Sale product

Evaluate

Table 1.1: Activities

1.9 Time frame of the study

- 1 November 2012 – 31March 2013



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Chapter 2

Industry Profile



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2.1 Nature of Industry

History of Lemons

The lemon, or “citrus limon,” may have originated in northwestern India. It was

introduced in Italy around 200 A.D. and was cultivated by the year 700 in Egypt and Iraq. Itcontinued to spread and by the 12th century was widely known and used, being prized for its

medicinal value in Egypt and Syria. Lemons started being grown in California and Florida in

the 1700s.

History of Lemonade

Egyptians created lemonade more than 1,500 years ago. This popular drink was called

“qatarmizat” and was consumed between the 10th and 13th centuries. Toward the end of the

12th century, the physician to the Muslim leader Saladin wrote a treatise on the lemon. In the

14th century, Egyptians drank a wine made from honey, lemons, and dates. Today, lemonade

is available in bottles and can be clear, cloudy, or fizzy. Clear is lemon and water, or lemonand carbonated water, made without adding sugar. Cloudy is the traditional drink with water,

lemon, and sugar. Fizzy is made with soda, lemon flavor, and sweetener and is considered a

sweet carbonated soft drink.(1)

Pink Lemonade

Another chapter in the history of lemonade is pink lemonade. There are two theories

as to the invention of pink lemonade. One claim to the classic drink happened at a New

Jersey circus in 1873 when a female horse rider‟s red tights were hung too close to a vat of

lemonade. A strong wind blew part of them into the lemonade and some of the red color bled

out. There was no time to make more and pink lemonade became a hit. The other story tells

of someone accidentally dropping a cinnamon candy into a vat of lemonade, perhaps at a

concession stand. Either way, pink lemonade today is a favorite of many, partly because it is

a bit sweeter than other lemonade.

Health Benefits

The history of lemonade would not be complete without mentioning its health

benefits. Lemon works as an antiseptic and can prevent disease while cleansing the body of

toxins. Lemon aids in digestion, relieving heartburn, bloating, and belching. It also helps the

colon work better, which will control diarrhea and constipation. If you suffer from gout,rheumatism, rickets, or tuberculosis, lemon would be beneficial. Lemons can also help you

stay healthy in many ways, so add a bit to the water or tea you enjoy every day.

(1) ( http://www.2020site.org/history/history-of-lemonade.html)



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2.2 Situation of Industry

Our product is lemon juice, Focused on improving the quality and significance of

research on consumer behavior. Nowadays lemon juice business have high competitive such

as Tipco Co., Ltd., Malee Co., Ltd., Doikham Co., Ltd. Because the product is consumed on a daily

basis and consumers turn increasingly to focus on health. Especially that lives in town and

wants to be convenience, so lemon juice is the best choice of the consumer groups. We have

arranged the target customers of all ages which the company also has a policy to maintain a

strong customer base in this group. In addition, modifications and product development with

a focus on research for provide the products to meet the needs of consumers. In 1of lemon,

we can make 2 products such as lemon juice, fresh spay.

Also our company focused on raw material in process of production and Place to buy

for fruit with the high quality. Our company focused on teaching for farmers in the selection

process, planting process and maintenance in order to get high quality fruits. Including to

teach farmers about management whether it in revenue and expenses. Even teach farmer to

know the costs and profit make the farmers can be sustained. Our company had standing

point in production of health care and conscious with every step.

Lemo juice manufacturing is another industry with high potential for growth. For lime

is a significant seasoning used in a large number of Thai food and beverages. With abundant

limes during their season between Januarys to September , non-season period is Appeal to

May definitely fruitful as the non-season period when times are hard to find and have

expensive prices is as long as 7 months.

Manufacturing and investment costs around 17.5 Baht for a factory with 160 ton/year

capacity. 80% of investment s on fixed asset, mostly on factory and machinery. The rest 20%

is for operation, of which more than half is manufacturing current cost e.g., utility and

packaging. Raw material cost is relatively low as the lime is purchased during the season

when they are cheap and oversupplied. The price is around Baht 25-35 for 100 limes.

Manufacturing 1 kilogram of powdered lime costs approximately Baht 200 (excluding

marketing and packaging costs), but this amount of limes can be sold for Baht 800 per

kilogram.

The investment capital case of 17.5 Million Baht, with the production and salesvolume of 162 ton per month and unit price is 130 Baht/Kg. the net profit on sales is 10%

within 5 years of investment which can increase production and sale volume 10% in each

year, the internal rate of return is expected 3.11%



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2.3 Product & Service

2.3.1 Lemon juice

Our Product

Lemon Juice under brand name “Lemo” is product already drink. The product to

produce from lemon juice contain 8.5percent in glass bottles size 300 ml by maxi lid easy

open to drink as without chemical others have lemon smell sour salt and refresh at any time

and still keep normal temperature to 6 months.

General Information

Fruit Juice is industry agricultural processing category have important to country

especially duration to product increase over than market demand that make price depressed

and occur product be rotten, Then conduct fresh fruit transform to be fruit juice will increasevalue with higher agricultural products and reduce damage to occur from limitations of

storage. The fruit can divide follow process to product and market demand.(1)

2.3.1.1 Intense Juice

Produce by lead fresh fruit from natural to bolt under vacuum for some volatile out

until intense juice. When lead intense juice drink will mix water for attenuate. Fruit juice it

popular main export wherewith comfortable to save logistic wage. Mostly intense juice to

lead raw material in food industry and other beverage.

2.3.1.2 Juice Organic

- can drink immediately wherewith different ingredient depend on type of fruit to lead raw

material and produce to process of manufacturing by divide to 2 minor type

- Fruit juice 100 percent such as orange juice and pine apple juice

- Fruit juice 25-50 percent such as guava juice and mango juice as can‟t produce to fruit

juice 100 percent then lead attenuate and flavor with tea.

Figure 2.1 lemon juices

(1) (Business Opportunity Center,2012 )



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2.3.2 Nao Fresh Spray

Product for inject without chemical, safety inject Fresh Spray through the area such as

rest room, kitchen, bedroom or in car. Fresh Spray will help atmosphere around area to do

fresh air and deodorize, musty wherewith contain glass bottle size 100 ml easy to use by push

to injection can keep normal temperature 2 years.

2.2 Nao Fresh Sprays



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Chapter 3

Marketing Feasibility Study



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3.1 Marketing Analysis

3.1.1 General Environment Analysis

We use PEST Analysis to analyze our project.

Figure3.1: PEST Analysis

Politic Factor

The present government responses to the government in the past and focus importance

increase quality of produce both investments research development and provide help policy

about price of product which is another way for not lower income such as help buoyancy by

lemon put in. Due to the present lemon have higher price reason from dry season plant

difficult and still flooding make damage to gardener. So government has policy according toMr. Pongpun Yodmuangjalern Ministry of commerce policy explain about price of lemon by

provide lead sell low lemon price for people in 3-10 baht or 3.33 per unit. (oknation.net,2012)

Economic Factor

Nowadays lemons is raw material in process transform to product increase higher price due to

several factor such as impact from flooding to make lemon trees of gardener death, dry

season which get yield less. Then product to market is not enough demand and making price

of lemon more expensive. Moreover cost of manufactured, labor cost, chemical fertilize have

higher price than every year ago so most of people therefore use natural fertilizer instead of chemical fertilizer.

(1)According to Prof. Dr. Rawee Seadtapukde said lemons during the past of ten

years. The marketing demand doesn‟t change from the original in any way. It was found that

lime has a lot of product for the market in the period from May to November. When the

quantity of lime. Production has made so many. Farmers sold down heavily almost worthless.

(1) (http://www.kasate.com/modules.php?name=Forums&file=viewtopic&t=31)

http://www.kasate.com/modules.php?name=Forums&file=viewtopic&t=31







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In contrast, the prices of lemons began to move higher from December onwards and are

highest during March and April is commonly referred to as. "Lemon dry" which is, of course,

that would produce a lemon into the market with small amounts to very little. The price of

lemon farmers sold more expensive.

Social Factor

Since the fruit market is in the growth rate not much higher, reasons that fresh fruits

are available in many types and that has throughout the year. When they want to drink fruit

juice consumers can also make fresh juice drink by them self. However, with the economic

and living conditions change because of the urgency and concern for the health and growth of

the population these factors are the most important factors which can stimulate the growth of

fruit juice in Thailand continuously. Include with stream consumption of healthy food and

health care continued growth especially with the healthcare group. Lemon juice has become

inserted into the product market share, so nonalcoholic drinks have been popular and

response to stream of homeopathic with quality at a price acceptable to consumers. So fruit

juice is the quite popular finished beverage in this time.(1)

Thailand is one of many countries which use tradition Medicare. Especially most of

Thai herbs have many advantages which can use for cook food or make the medicine. Most

of Thai people must use Thai herb for cooking for their daily life. Lime is interest herb which

use for healthcare. Mostly, Thai tradition doctor use lime for some ingredients of herbs which

can be vanish into the acid or have a treatment of Respiratory system such as cough and sore

throat. Due to the usefulness of lime people can use lime juice for purify blood, or treat the

sore throat. Especially, when the weather is cold, some people may be having sore throat in

the morning. They should be drink warm lime juice when they get up in the morning. (2)

(1)(http://mis.rmutt.ac.th/sme/Headings/InvestmentExamples.html)

(2)(http://www.ryt9.com/s/tpd/1440596)



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Technology Factor

The technology industry provides the basis for chip production, information and

communication systems, and computer systems. These companies serve as the developers

and manufacturers of the products which drive the increasing efficiency and production.(1)

Technology Factor that we using in our industry. Technology is used in every step of

the production process to reduce the cost of labor and save time to produce, such as cleaning

the lime, mixing ratios together, packaging and transportation of our production process to

ensure clean and safe, we will give consumers confidence in our products. Then technology is

important part of our industry.

Therefore, change and progress of technology can create competitive advantage for

helping business and technical systems in modern manufacturing. It can reduce production

costs and increase capacity production. Then, it helps to manage and communicate faster,

also make to response customers need for more efficiently.

Process

Figure 3.2: Process

(1) (www.foodnetworksolution.com)



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Machine

Figure 3.3: Cleaning lemon

Figure 3.4: Put lemon juice into the bottle

http://www.tistr.or.th/tistr/newsboard/shownews.php?Category=newsboard&No=48



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3.2 Marketing Mix Strategy

3.2.1 Product

1. Lemo Organic or lemon juice.

2. Nao fresh spray. It is deodorant spray used in house and cars.

Quality

- Lemo organic or lemon juice produces from lemonade 100% without

chemical.

- Nao fresh spray or deodorant spray, it without from synthetic chemical

additives. Therefore, it is safety 100%

Design- Lemo organic contain in glass bottles 300 ml. closed by maxi lid.

- Nao fresh spray contains in glass bottles 100 ml. press the spray head.

Features

- Lemo organic, it will have the flavor characteristics to give the fragrancy of

lemons and to give acid taste and salt a little bit.

- Nao fresh spray, to give the places has aromatic fresh such as in the house and

cars.

Brand name- The name of product is LEMO both Lemo organic and Nao fresh spray.

- Packaging

- Lemo organic contain in glass bottles and closed by maxi lid.

- Nao fresh spray contains in glass bottles and press the spray head.

Sizes

- Lemo organic contain in glass bottles 300 ml.

- Nao fresh spray contains in glass bottles 100 ml.

3.2.2 Price

- Price of Lemo organic the customers can be buy all ages of customers in the cheap

price 15 bath, beginning 7 years old up.

- Price of Nao fresh spray the customers can be buy all ages of customers in the

prices 90 bath, but don‟ t sell for children age below 12 years old because they

should be used inappropriate way.



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3.2.3 Promotion

- Sale promotion

The customers can buy Lemo 10 unti for discount 10%. But L Nao Fresh Spray not

has promotion.

- Special Promotion

We will have special promotion in radio channel by Listeners answer question about

benefit of lemons duration radio break for give Lemo basket.

- Advertising

The advertising of our, we used media for advertise such as radio and internet. It‟s easy the

chance for advertising and easy to approach the consumers because the consumers need touse these channels for received other information. Therefore, it is easy channels to approach

the consumers.

- Direct marketing

Lemo created website for using directly channel to present customers about product

because an online internet popular in the present and customers easily to accessible.

3.2.4 Place

The brand of Lemo is located in Nakornpratom, Thailand. We choose this place

because it near with resource and we have contract with lemon cultivator Sampran and

Nakornchaisree, Nakornpratom, Thailand. By still have quota to shipping from Samuthsakorn

and Rajchaburi province in Thailand, which this all it will ship lemon to factory by quota

system.



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High Quality

3.3 STP Analysis

Marketing segmentation

Marketing segmentation of Lemo organic and Nao fresh spray divided customers into two

groups.

- The first group is 7 years old up for Lemo organic because it is lemon juice can be

drink of all ages.

- The Second group is 19 years old up for Nao fresh spray because if sell for a childbelow 19 years old, they should be used inappropriate way. Thus, we need to

divided marketing segmentation is two ways for easily for access to customers.

Target analysis

- Lemo organic is target with customers 7 years old upper- Nao fresh spray target with customers 19 years old upper.

Positioning

The position of LEMO brand to created new products for enters to mind target

group of customers. By produced high quality of products but low price everyone or all of

customers can buy.

Lemo

Figure 3.5 Position Marketing Lemo

Low Price

High Price

LEMO

Low Quality

Power Green Food and

Juice Company

Malee brand

Tipco brand

Doikham brand





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Nao fresh spray

Greenpack Marketing Co., Ltd.

The name of main product is MIXZ Air Freshener, the product about deodorant spray.

The price is 140 bath /320 ml. The product sells on shopping mall and open booth on anotherplace. This company is new brand and located on 77/4 Punyaintara Road, Khlong Sam Wa, Bang

Chan, Bangkok 10510.

This company is the new business same Lemo Company which don’t have people to

know and not popular. This company will be competition with Lemo Company in the marketing

as well as strategic marketing and target market. So, we company need more to promote, have

promotion, and the price is inexpensive for attract customers and popular in Thailand.

Position

Spray

Figure 3.6 : Position Nao fresh spray

Low Price

MIXZ Air Freshener

brand

High Price

Low QualityHigh Quality

Nao fresh spray



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3.5 Customer analysis

The factors in relation to product features which influenced the respondents toward

the drinking fruit juice are as follows.

3.5.1 Product Quality

The aspects of the products quality that mostly influenced the respondents

were the length of the product preservation, the standards approval from the Food and

Medicine Organization, the variety of flavors, respectively.

3.5.2 Product Size

The aspects of the product size that mostly influenced the respondents were

the economic size for family, big size that enables many times drinking, and small

size that enables portability, respectively.

3.5.3 Packaging

The aspects of the packaging that mostly influenced the respondents were the

convenience for saving for next-time-consuming, the convenience for drinking, and

the strong package, respectively.

3.5.4 Brand name

The aspects of the brand name that mostly influenced the respondents were

reputation and acceptation, the good images, and the reliable brand name,

respectively.

3.5.5 Health Concerns

The aspects of the health concerns that mostly influenced the respondents

were the drinking for health, self-dental examination, and following the news on

health, respectively.

3.5.6 Leisure Activities

The aspects of the leisure activities that mostly influenced the respondentswere shopping by one, staying at home, and outgoing, respectively.



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3.6 Competitive analysis

The trend of consumer healthy drink from fruit and vegetables has growth continually

in several years. Because consumers see benefits of fruit and vegetables so trends of vegetable or fruit juice are popular continuity in 2011. In the market of fruit juice have value

about 1,000 billion bath or 235 million liter of fruit juice and divide are many segment.

3.6.1 Premium market

Have market share about 3.80 billion bath or 56 million liter has growth rate about

5 % divide to UHT 5% has value about 3.0 billion bath and Pasteurized 6 % have value

0.80 billion baht

3.6.2Medium market

Have market share about 0.58 billion baths or 12 million liter of juice and growth rate

about 3%.

3.6.3 Economic market

Have market share about 3 billion bath or 117 million liter of juice and growth rate

about 6%.

3.6.4 Super economic market

Have market share about 1.80 billion bath or 63 million liter of juice and growth rate

about 4%

The market of fruit juice have growth rate at 3 years are good continuity. The average

of growth rate is 11 %( www. Trirat.com, Nielsen, 2011). As the result of several factors is

awareness health of consumers and living in present are very fast .It cause is market of fruit

juice can growth continually.(1)

(1)www.Trirat.com, Nielsen, 2011



~ 31 ~

Population in Thailand

Table 3.1: Each of Thailand and Number of population year 2555

Figure 3.7: this graph shows number population each of Thailand year 2555

(http://202.143.128.66/~lib/krububpa/page/thai/t3.html)



~ 32 ~

3.7 Sale forecast

Table 3.2: Sale forecast



~ 33 ~

3.8 Marketing expense

Table 3.3: Marketing expense



~ 34 ~

Table 3.4: Marketing expense (2)



~ 35 ~

3.9 Conclusion

In all population in Thailand we spared into 3 cases as following;

1. Best case

2. Normal case3. Worst case

In first year we expect the customer only central region to consume ours product. That will

show rate in table below;

From ours estimating from table below that will get range as follow;

Our company has established on January, so that make our company has low sell and after

first year our sell have increase in every years.

From the table below, in each month sell will change on every year. We calculate activity can

distribute to other part of Thailand in 5 years. In each year‟s our business estimate from

Growth Rate of our company following



~ 36 ~

Chapter 4

Technical Feasibility Study

Production and OperationAnalysis



~ 37 ~

Chapter 4

Technical Feasibility Study Production and Operation Analysis

4.1 Pre-Operation Cost

Pre- operation cost Total price

Register for Center Food Intertrade 90,000 Baht

Register for Lemo Company 120,000 Baht

Contract with the National Institute of Science and Technology of Thailand 996,080 Baht

Factory repairs 1,500,000 Baht

Drilling water wells 350,000 Baht

Total 3,056,080 Baht

Equipment 293,300 bahtTotal 293,300 baht

Table 4.1: Pre-Operation Cost

4.2 Investment Cost

Building

The land that we rent located in Nakorn Phatom, the factory space 4800 square

meters of office with eight acres of land available. All are steel structure factory which

can be easily adapted to the structure. Factories and power supply variations.

http://www.thaihometown.com/factory/9541

Investment Cost

Building (Rent) 4,800,000 Baht/year

Machine office 10,760,000.00 Baht

Machine Factory 55,500,000.00 Baht

Vehicle 7,700,000 Baht

Table 4.2: Investment Cost



~ 38 ~

4.3 Depreciation

Table 4.3: Depreciation



~ 39 ~

Table 4.4: Depreciation (2)



~ 40 ~

Chapter 5

Operations



~ 41 ~

5.1 Location

Our factory located in Kampangsan district Nakhon Pathom province on 4,800 square

meters. And have many facilities such as bed room, air conditioner, bath room and parking.

Figure 5.1: The located of factory

5.2 Facilities Layout

- First floor

Figure 5.2: Frist Floor



~ 42 ~

- Second floor

Figure 5.3: Second floor



~ 43 ~

5.3 Production Cost

5.3.1 Production Characteristic

Lemon is one of those super foods with a myriad health benefits. Lemo Company has

two main natural products. There is Lemon Juice for thirst and Nano Fresh Spay for fresh airand it‟s good for environment.

Lemon Juice

Figure 5.4: Lemon Juice

Ingredients:

Lemon Juice

- Fresh Lemon 1.50/unit

- Sugar 22/kg

- Salt 9/kg

- Liquor 1.5/liter

1 of bottle/Lemo

Table 5.1: Lemon juice cost



~ 44 ~

Nano Fresh Spay

Figure 5.5: Nano Fresh Spay

Ingredients:

Nano Fresh Spay

- Menthol 100 g

- Camphor 60 g

- Ethyl Alcohol 600 g

- Lemon Flavor

1 of can/ Nao Fresh Spray

Table 5.2: Nao Fresh spray cost



~ 45 ~

5.4 Machine in factory

Machine

Cleaning lemon Machine (20,000 unit/hr.)

- 350,000 Baht

Citrus Juicers (5,000 unit/hr.)

- 90,000*4 = 360,000 Baht

Pasteurized and sterilized (4,000 bottom/ hr.)

- 3,000,000 Baht



~ 46 ~

Washer bottle Machine (230 bottom/ min.)

- 750,000 baht

Bottling Machine (230 bottom/min.)

- 1,500,000 baht

Closer Bottom (110 bottom/min.)

- 1,100,000 baht



~ 47 ~

Conveyor (7.2 Mates)

- 2,900,000 Baht

Hitachi Inkjet barcode (date/month/year)

- 200,000 Baht

Tank (1,000 Liter)

- 40,000 Baht



~ 48 ~

Distillation of essential oils Machine (2,000 lite)

- 190,000 *2 = 380,000 baht

Stainless steel oven.

- 70,000 baht

Boiler with gas station (1 ton)

- 290,000 Baht



~ 49 ~

Cooling Machine (50 ton)

- 70,000 baht

Water system SOFTENER # RO # UV

- 750,00 bath

Mixer Machine (1,000 lite)

- 70,000*2 = 140,000 baht



~ 50 ~

Gravity Filler

- 750,000 baht

Vehicle

HINO (SERIES 5 FG8JGLD - 6 wheels)

1,540,000 Baht



~ 51 ~

4.6 Equipments

Facility Quantity cost

Tables 5 12500

Chair 5 5000

Sofa 2 48000

Air condition 2 58000

TV 1 16000

Computer 4 60000

Fax 1 5200



~ 52 ~

Telephone 5 3000

Printer 1 2200

Kettle 1 300

Microwave 1 1500

Cistern 3 15000

Cupboard 4 11200

Flush Toilet 5 7500



~ 53 ~

Wash basin 5 4000

Refrigerator 1 15900

CCtv Camera 4 52000

Raw Material

Glass Bottle 3.25 Baht per units

Maxi lids 9,000 lids per packing case

Can Spray 100ml 1.80 per units

http://www.xn--12cb8cydc8m6b.net/

http://www.lek11.com/product.detail_6175_th_48397



~ 54 ~

5.5 Production Process

Lemon is a citrus family plant which important in economically. Each year, the

volume of lemon have uncertainty and inconsistent throughout the year lemon cause

shortages in the dry season but have a good sell in the rain season. During period have more

lemon to make lemon low price and not worth for investment. For reduce the problem andchannel our company then set business factory about processing lemon industry for

development and research solution to produce material change to product processing in

industry system. Our Company purchase good quality of lemons from lemon farm in Nakorn

Phatom. Our Company stores it in warehouse then entering into production process. Now our

products are available for deliver to retailer and customer.

5.6 Logistic Management

When we talk about logistic management our Company produce lemon juice it is good for

healthy because we used high technology and best lemon guarantee by the National Instituteof Science and Technology of Thailand. Our Company locates in Central Region of Thailand

so it is easy to purchase the supply and easy for distribution to each part of Thailand.

5.7 Facility Management

Facility Management is the importance part of business so the company needs to

manage the facility for produce a good quality of product. The facility of our company such

as

Warehouses: company used that place to store the supply and product that available fordelivers.

Processing centers: it is most importance department to produce the product.

Distribution centers: Our Company use track for distributed the product to retailer.

Offices: Our Company design to separate in many departments such as accounting

department, marketing department, Human Resources department, and Electronic department

works with together in the offices

Internet: Our Company has interest use for contract customers order on website our company anduse in our office to work.

Toilet: Our Company provides the toilets for workers convenience.

Cleanliness: Our Company has housekeeping for factory cleanness.

Security: Our Company provides two shift of security night shift and morning shift.



~ 55 ~

Chapter 6

Administration Cost



~ 56 ~

6.1 Management Analysis

Lemo is the lemon juice and Nano Fresh Spay Company and there are many facilities

machine available for produce Lemon Juice include first Cleaning lemon for wash lemon

clearly in the process, Citrus Juices for crush lemon to get lemon water, washer bottle for

bottle contain lemon juice and closer bottle for closed lemon juice available distribute

consumers.

Characters and duties in each department

General Manger

A General Manager has broad, overall responsibility for a business or

organization. Whereas a manager may be responsible for one functional area, the

General Manager is responsible for all areas. General Managers manage through

subordinate manager. However, a General Manager may have individuals reporting

to him/her who are not managers. A General Manager has the power to hire, fire, or

promote employees.

Accounting /Financing

Financing activities involve long-term liabilities and stockholders‟ equity.

Financing activities are reported in its own section of the financial statement known

as the statement of cash flows or cash flow statement and to preparation of

financial statement for decision makers.

Marketing

Marketing most important to set strategies that the business where direct way.

Marketing will make profit for company that offers those products such as design

the packaging, promotion, price and place to penetrate the market, research

competition about promotion or price in market.

Human Resource

- Human Resource has several duties as follows

- Setting all department of organization include recruit employment, interview

and exit interview

- Training skill become quality policy of company

- Take care benefit of employee such as salary, bonus, welfare as medical fee,

loan, and financial help staff



~ 57 ~

Technical

- Technical has duty to management about machine in factory if machine frazzle

technical will take care

- Take network system in office and electric system such as electric city in office or

factory

Sale Person

Sale person is people to promote our product distribute to customers by offer

department store or retailers and suggest new arrivals to customers when new

product.

Security Guard

- Security Guard has duty protect our company

- Take care facilitate worker in factory and office

House keeping

- Cleaning all part in factory and office.



~ 58 ~

6.2 Organization Chart

Figure 6.1 Organization Chart

6.3 Employee Salary Costs

Table 6.1: Employee Salary



~ 59 ~

6.4 Infrastructure Costs

Table 6.2: Infrastructure Cost



~ 60 ~

Chapter 7

Financial Analysis



~ 61 ~

7.1 Statement of cash flow

Table 7.1: Statement of cash flow (Year 1)



~ 62 ~




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~ 66 ~

7.2 Balance Sheet

Table 7.6: Balance Sheet (Year 1)



~ 67 ~




~ 68 ~




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~ 71 ~

Chapter 8

Risk Analysis



~ 72 ~

Chapter 8 Risk Analysis

8.1 Risk analysis of project

Risk of LEMO Company, may be occurs in the future and have a problem to company. The

risk included internal and external, some risk can avoid and some risk don‟t avoid. So our

company need to manage about the risk when occur the risk by awareness result.

8.1.1 External Risk

General environment risk includes:

- Politic factor

Nowadays, the political it uncertain. When the politic have problem it make to

decrease of customer and have effect to business, such as decrease the tax and

transportation rate.

- Economic factor

Thai economic don‟t stable because occurred from problem of politic of country. But

new business still has more investment because the government gives important for

new business by decreases interest rate for start business.

- Social factor

Thai people simply to accept for new business or new things such as have new

products they will sample for those products that good or not good. So, our businesshave opportunity and easy to access the customers.

- Technology factor

Technology has more important to the business such as internet, telecommunication,

and IT system. It effect the business all of the time. Especially our business needs to

follow technology all the time for develop business and have more target market.

8.2.2 Internal Risk

Risks of its Lemon company must face often is the risk factors within the market

and company. This may be important for several reasons including. Operating risk is risk

that can be visible and obstruction control infrastructure because of these risk sunder the

company or management team's operations. The Company's operations may face the risk

of these characteristics is.



~ 73 ~

Financial risk

Financial management need to continue with prudent because in is the area that have

many equipment‟s and materials and have to use money in term of operation cost. This is the

type of risk. No budget to work as assigned. Within the time specified. This may be due to the

estimated costs of activities, pricing errors and error decision errors.

Risk in Performance of the equipment’s and materials

Because the company uses many equipment‟s and materials, so it has many chance to

damage. The possibility to damage from processes of machines is most in errors in the work of

the producer the lemonade and spray. If the equipment‟s error or fail, the product line will lack

in our company. It is a main factor in production and effect to cannot produce product for the

customer

Risk in Health and Safety

Company is realizing the importance of health all employees. If employees are healthy

then they can work hard. The company is a manufacturer of lemonade if employees are

discomfort, it occurs to spread disease into the products and harm to consumers. Therefore,

company is very strict control and disease prevention for employees, which will impact on

customers. We have a good annual checking for our health for ensure that our staffs have good

healthy and good performance.

Time risk on product Delivery

In case of delivery delay or error shipping, this is the directly effect that occurred with

our sales volumes and also our income, anyway, this is the factors that can be affected to the

loyalty, trust and expectation of the customer of our company. lemo company Company will

reduce these problems by focusing the system of freight or delivery pass the electronic

ordering or (E-Ordering)the problems in case of error shipping will decreased and the

problems of delivery delay are still being risk by the accident situation that can‟t be control

Referred

8.2. Competitive factor

For new business it hard to simply to customers accept such as brand, product, quality,

and price because new business have more competitors, which these competitors influence in

price, brand, quality, products, and marketing.

Which external factor it hard to control. So, our business need to accept with the risk

will occur in the future, but our business have to plans for prevent the business and can use

surely in current and future.



~ 74 ~

8.3 Financial Risk

8.3.1 Sale decrease 5%

Table 8.1: Sale decrease 5% (Year 1)



~ 75 ~




~ 76 ~




~ 77 ~




~ 78 ~




~ 79 ~





~ 80 ~




~ 81 ~




~ 82 ~




~ 83 ~




~ 84 ~





~ 85 ~




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~ 87 ~

Table 8.14: Sale decrease 15%(Year 4)



~ 88 ~




~ 89 ~

8.3.4 Cost of Goods Sold increase 5%

Table 8.16: Cost of Goods Sold increase 5% (Year 1)



~ 90 ~




~ 91 ~




~ 92 ~




~ 93 ~




~ 94 ~





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~ 96 ~




~ 97 ~




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~ 99 ~





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~ 102 ~






~ 104 ~

Chapter 9

Conclusion



Conclusion

Now a day, Thailand is one of many countries which use tradition Medicare.

Especially most of Thai herbs have many advantages which can use for cook food or make

the medicine. Most of Thai people must use Thai herb for cooking for their daily life. Lime is

interest herb which use for healthcare. Mostly, Thai tradition doctor use lime for some

ingredients of herbs which can be vanish into the acid or have a treatment of Respiratory

system such as cough and sore throat. Due to the usefulness of lime people can use lime juice

for purify blood, or treat the sore throat. Especially, when the weather is cold, some people

may be having sore throat in the morning. They should be drink warm lime juice when they

get up in the morning

From my study of project feasibility study and evaluation that show me many things

for the feasibility of project is low competitors in business about lemon juice because in Thai

people they like cook to more than make a juice, so our company sees the point to make the

business about lemon juice.

From my survey of the marketing for this project is very interesting because lemon

juice is a low competitors and the study of PEST analysis support our business in the market

so it is not so difficult to entry in the market for our business. We plan business by 4p

analysis include price, place, product, promotion to adapt with our business position.

Finally food & beverage business will grow up in next three to five year because

consumers choice to take care our self and make our business entry to market section easy

than others juice.



References

http://www.travelgrove.com/travel-guides/Thailand/Nakhon-Pathom-History-c1920596.html

http://www.thailand-delights.com/page400.html.

1) ( http://www.2020site.org/history/history-of-lemonade.html)

(Business Opportunity Center,2012 )

(http://www.kasate.com/modules.php?name=Forums&file=viewtopic&t=31)

(http://mis.rmutt.ac.th/sme/Headings/InvestmentExamples.html)

(http://www.ryt9.com/s/tpd/1440596)

(www.foodnetworksolution.com)

http://www.tistr.or.th/tistr/newsboard/shownews.php?Category=newsboard&No=48

http://www.tipco.net/investor/thai/product.asp

http://www.malee.co.th/about_us.php#about_content

http://www.doikham.co.th/aboutus_th.php

www.Trirat.com, Nielsen, 2011

(http://202.143.128.66/~lib/krububpa/page/thai/t3.html)

http://www.xn--12cb8cydc8m6b.net/

http://www.lek11.com/product.detail_6175_th_48397



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Section 2 Seat12 : LEMO Company

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