Project Feasibility Study 2010 - B08-Milkery Shop

Jp’
Milkery
Milkery
Milkery Shop
Company Owner:
Mr. Jatupol Muenharn General Manager
Miss Wanna Rattanawanit Production and Operation Manager
Miss Wilawan Kladngiu Marketing Manager
Miss Nattaya Chiangrang Human Resource Manager
Mr. Piboonsak Kittitornkun Accounting and Financing Manager
Company:
59/1 Phaholyothin Road, Moo 1 T.Thasud A.Muang Chiang Rai 57100
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Preface
About our project was prepared for Investor who interest to invest in bakery and
coffee shop. In our project, we analyze the project feasibility and evaluations that how
project become successful, get more profit and benefit to investor. It includes with
background, industry profile analysis, marketing feasibility analysis, technical feasibility
analysis, financial analysis, risk management analysis, and summary of the project’s
feasibility to see all of image of Milkery Company.
So, we hope this project will make investor contrite to invest with our company
and get profit with us together.
Sincere,
Mr. Jatupol Muenharn

Miss Wanna Rattanawanit
Miss Wilawan Kladngiu
Miss Nattaya Chiangrang
Mr. Piboonsak Kittitornkun
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Executive Summary
Nowadays, milk shop business is growth continuously and also milk a necessary
thing for people who emphasize on their own health and people who love to drink milk.
In other hand, numbers of people who consume milk are increasing every year. So, this
is the reason why we selected to do milk shop business. Our company was registered to
be the company limited under the name of Milkery. The company was established by
five partnerships.
Milkery is located on 59/1 Phaholyothin Road, Moo 1 T.Thasud A.Muang Chiang

Rai Province. We emphasize on the location which is easy to access and quite well know
location of our target market. Milkery is not only milk shop but we also adding bakery
and some snack within the shop. We will launch promotion in some period of time to
promote and advertise our shop to increase sales. So, we still create new menus to be
the competitive advantage to compete with another competitor. About target group, we
emphasize on university students who are our main target market because these group
is the most volume who we want to serve the most. Second, we focus on student, who
studied on high school, worker, and others are also our target market. There are 3 main
competitors of Milkery; Nom Na Mor, Nom Chompoo, and Kin Nom Kan. Those we must
compete with them because they have opened their business for a long time and people
in Chiang Mai are quite loyalty with them. So, we also have to compete with our indirect
competitors both milk shop and bakery shop
Moreover, company invests milk shop business by loaning money from the bank
for 1,000,000 baht in 5 years. In financial part, our sale increase every year. It is good
news for other people who might interest to invest in our business and we will be
partnership. Finally, we can make sure that our market share will be increasing every
year.
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Table of content
Preface ............................................................................................................................................ i
Executive Summary ................................................................................................................... ii
Table of content......................................................................................................................... iii
Content of figure ...................................................................................................................... vii
Content of table ....................................................................................................................... viii
Chapter 1 Introduction..............................................................................................................1
1.1 Background and Significance of the Project .................................................................................1
1.2 Project objectives ......................................................................................................................................2
1.3 Benefits of Project .....................................................................................................................................2
1.4 Activities and Time frame of study ...................................................................................................3
Chapter 2 Industry Profile........................................................................................................7
2.1 Nature of industry .....................................................................................................................................7
2.2 Situation of Industry ................................................................................................................................9
2.2.1 Competition Analysis ......................................................................................................................9
2.3 Product and Service............................................................................................................................... 10
2.4 Vision of Milkery ..................................................................................................................................... 17
2.5 Mission......................................................................................................................................................... 17
2.6 Business Strategy.................................................................................................................................... 17
2.6.1 Corporate Strategy ........................................................................................................................ 17
2.6.2 Business Level ................................................................................................................................. 18
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2.6.3 Functional Level Strategy ........................................................................................................... 19
Chapter 3 Market Feasibility Study .................................................................................... 22
3.1 Market Analysis ....................................................................................................................................... 22
3.1.1 General Environment Analysis ................................................................................................ 22
3.1.2 Competition Analysis (3Cs Analysis) .................................................................................... 27
3.2 STP Analysis .............................................................................................................................................. 31
3.2.1 Segment Marketing ....................................................................................................................... 31
3.2.2 Target Marketing ............................................................................................................................ 32
3.2.3 Positioning Marketing.................................................................................................................. 33
3.3 Marketing Mix Strategy ....................................................................................................................... 34
3.3.1 Product ................................................................................................................................................ 34
3.3.2 Price ...................................................................................................................................................... 35
3.3.3 Place...................................................................................................................................................... 35
3.3.4 Promotion .......................................................................................................................................... 36
3.4 Sales Forecast/Profit Estimation .................................................................................................... 37
3.5 Marketing Expenses (Sale Incentive)............................................................................................ 43
3.6 Conclusion .................................................................................................................................................. 48
Chapter 4 Technical Feasibility Study ................................................................................ 50
4.1 Production and Operations Analysis............................................................................................. 50
4.1.1 Product Characteristics ............................................................................................................... 50
4.1.2 Location .............................................................................................................................................. 59
4.1.3 Facility Layout ................................................................................................................................. 60
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4.1.4 Facilities Management ................................................................................................................. 63
4.1.5 Equipment and tools..................................................................................................................... 63
4.2 Cost of investment.................................................................................................................................. 64
4.3 Investment cost ....................................................................................................................................... 65
4.4 Operating Cost.......................................................................................................................................... 70
4.5 Administration Cost .............................................................................................................................. 72
4.6 Management analysis ........................................................................................................................... 75
4.7 Conclusion .................................................................................................................................................. 78
Chapter 5 Financial Analysis ................................................................................................ 80
5.1 Initial investment ................................................................................................................................... 80
5.2 Source of funds ........................................................................................................................................ 80
5.3 Profit and loss statement .................................................................................................................... 81
5.4 Statement of Cash Flow ....................................................................................................................... 86
5.5 Balance Sheet ............................................................................................................................................ 91
5.6 Pay Back Period ....................................................................................................................................... 96
5.7 NPV and IRR .............................................................................................................................................. 97
Chapter 6 Risk Analysis.......................................................................................................... 99
6.1 Risk management analysis ................................................................................................................. 99
6.1.1 Competitor risk ............................................................................................................................... 99
6.1.2 External risk ..................................................................................................................................... 99
6.1.3 Internal risk ................................................................................................................................... 100
6.2 Financial Risk ........................................................................................................................................ 103
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6.2.1 Risk of sale decrease 5%, 10%, and 15% for 5 Years ................................................ 103
6.2.2 Risk of cost increase 5%, 10%, and 15% for 5 Years................................................. 106
6.2.3 Risk of interest increase 5%, 10%, and 15% for 5 Years ......................................... 109
Chapter 7 Summary...............................................................................................................113
Reference .................................................................................................................................121
Appendix ..................................................................................................................................122
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Content of figure
Figure 2.1 Milk shake products .................................................................................................................... 11

Figure 2.4 Milk shake products (Hilunch Team, n.d.) ....................................................................... 12
Figure 2.5 Beverage products ....................................................................................................................... 13
Figure 2. 8 Beverage products ...................................................................................................................... 14
Figure 2.9 Bakery and snake products ..................................................................................................... 15
Figure 2.10 Bakery and snake products .................................................................................................. 15
Figure 2.11 Bakery and snake products (PakBakery, 2006) ......................................................... 16
Figure 3.1 Wireless router............................................................................................................................. 26
Figure 3.2 Electricity ......................................................................................................................................... 26
Figure 3.3 Milkery positioning ..................................................................................................................... 33
Figure 3.4 Summary Net Incomes for Five Years ................................................................................ 42
Figure 4.2 Topping ............................................................................................................................................. 51
Figure 4.3 Cappuccino shake......................................................................................................................... 52
Figure 4.4 Latte shake....................................................................................................................................... 52
Figure 4.5 Mocha shake ................................................................................................................................... 53
Figure 4.6 Café Americano shake ................................................................................................................ 53
Figure 4.7 Espresso shake (Maeyingzine, 2008) ................................................................................. 54
Figure 4.8 Green and Red Tea shake ......................................................................................................... 55
Figure 4.9 Milk Fruity syrup shake ............................................................................................................ 56
Figure 4.10 Beverage products .................................................................................................................... 57
Figure 4.11 Location.......................................................................................................................................... 59
Figure 4.12 First Floor Format ..................................................................................................................... 60
Figure 4.13 Second Floor Format................................................................................................................ 61
Figure 4.14 Organization Chart.................................................................................................................... 75
Figure 5. 1 Pay Back Period ........................................................................................................................... 96
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Content of table
Table 1.1 Level of monthly money received of Mae Fah Luang University’s students ........1
Table 1.2 Time frame work ...............................................................................................................................4
Table 3.1 The Report of all students in Semester 2/2008 .............................................................. 24
Table 3.2 The Report of all students in Semester 1/2009 .............................................................. 25
Table 3.3 Sale Forecast for Year 1............................................................................................................... 37
Table 3. 8 Marketing Expenses for Year 1............................................................................................... 43
Table 3.9 Marketing Expenses for Year 2 ................................................................................................ 44
Table 3.10 Marketing Expenses for Year 3 ............................................................................................. 45
Table 4.1 Cost of investment ......................................................................................................................... 64
Table 4.2 Investment cost ............................................................................................................................... 66
Table 4.3 Depreciation ..................................................................................................................................... 68
Table 4.4 Depreciation ..................................................................................................................................... 69
Table 4.5 Cost of goods sold .......................................................................................................................... 70
Table 4.6 Cost of labor ...................................................................................................................................... 71
Table 4.7 Overhead cost .................................................................................................................................. 71
Table 4.8 Administration Cost for Year 1 ................................................................................................ 72
Table 4.9 Administration Cost for Year 2 ................................................................................................ 72
Table 4.10 Administration Cost for Year 3 ............................................................................................. 73
Table 5.1 Profit and loss statement for Year 1 ..................................................................................... 81
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Table 5.6 Statement of Cash Flow for Year 1 ......................................................................................... 86
Table 5.7 Statement of Cash Flow for Year 2......................................................................................... 87
Table 5.10 Statement of Cash Flow for Year 5 ...................................................................................... 90
Table 5.11 Balance Sheet of Year 1 ............................................................................................................ 91
Table 5. 16NPV and IRR ................................................................................................................................... 97
Table 6.1 Summary of risk of sale decrease 5% for 5 years........................................................ 103
Table 6.2 Summary of risk of sale decrease 10% for 5 years ..................................................... 104
Table 6.3 Summary of risk of sale decrease 15% for 5 years ..................................................... 105
Table 6.4 Summary of risk of cost increase 5% for 5 years ........................................................ 106
Table 6.5 Summary of risk of cost increase 10% for 5 years...................................................... 107
Table 6.6 Summary of risk of cost increase 15% for 5 years...................................................... 108
Table 6.7 Summary of risk of interest increase 5% for 5 years ................................................ 109
Table 6.8 Summary of risk of interest increase 10% for 5 years .............................................. 110
Table 6.9 Summary of risk of interest increase 15% for 5 years.............................................. 111
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Chapter 1 Introduction
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Chapter 1 Introduction
1.1 Background and Significance of the Project
Although the economy is quite good, but when observed that the business in the
food and beverages continues to grow continuously, because food is one of the four
factors that need to consume for dairy life. The small businesses that do not require
much investment, you can store your own business as well. Nowadays, customers have
high tend to consumption product of milk but they have few choices to choose so we try
to create the project of Milkery to support their demand.
Our company is milk shop and bakery under name Milkery that located at front
of Mae Fah Luang University. We provide the dairy product, beverage, and bakery. We
try to produce our products by use the best ingredients and good for health that
appropriate with the customers that concern about healthy. We have many menus to
choose and price not expensive. The main menus are milk shake, hot/iced milk, hot/iced
coffee, cake and bakery. Our shop has many zones provide for customers to choose as
you like it. Customers can feel like they eating at home because our services are
familiarly and give the best for them because we think we like a customer to know what
customers want. Our main target group is students because Mae Fah Luang University
has student about 9,000 students, they also have luxury and funny lifestyle. So, we
provide the place that they can meet and relax together. And other target group is
working group such as lecturer they can come to relax at free time.
Level of monthly money received No. of respondent
1. 1,000 – 5,000 Baht 9
2. 5,000 – 10,000 Baht 68
3. Over 10,000 Baht 23
Total 100
Table 1.1 Level of monthly money received of Mae Fah Luang University’s students
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The table above shows the level of monthly money received of Mae Fah Luang
University’s students. From our finding information, we found that most of students
have the level of monthly money received about 5,000 – 10,000 baht. So, they have
more power purchase the products.
Our company concern about quality of product at first to make customer

satisfaction and customer become brand royalty and then we will get high number of
profit. And we train our staffs about services to be professional service provider. So we
can ensure the most of customer will satisfy with our products and services.
1.2 Project objectives
 To study about trends of food and beverage business.

 To study possibility of food and beverage business in the future.
 To analyze the marketing and financial risk feasibility in food and beverage
business.
 To analyze the SWOT and competitors of our business.
1.3 Benefits of Project
 To know the benefit food and beverage business.

 To know the trends of food and beverage business.
 To know the SWOT and competitors of our business.
 To know the process, plan and structure when doing business in real situation.
 To know the methods for making high in sale food and beverage.
 Able to apply the plan for getting high profit/return on investment.
 Able to plan and manage the business to success.
 The plan is most feasible and high success in real business that able to guide in
the future.
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1.4 Activities and Time frame of study
November December January February

Operation Methods
1 2 3 4 1 2 3 4 1 2 3 4 1 2
To establishing group and selecting

topic.
To search the information of food
and beverage industry.
To prepare the chapter 1
introduction of the project and
submission.
To prepare the chapter 2 industry
profile and submission.
To analyze the marketing feasibility
and prepare chapter 3 for
submission.
To study about technical feasibility
submission.
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To study about financial analysis and

prepare chapter 5 for submission.
To analyze about risk management
submission
To summary the project and submit
chapter 7
Recheck the report and submission
Prepare for presentation
Table 1.2 Time frame work
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Chapter 2 Industry Profile
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Chapter 2 Industry Profile
2.1 Nature of industry
Bakery culture of Western culture since prehistoric ago. It’s believed that
Switzerland people who live along the lake are initiative by led the various grains used
to roast first and then pounding with mortar mixed with water. Massage into flour after
that place on hot stones near the oven until cooked starch and get Starch plate frame.
Assumed it is the bread in the present. Subsequently discovered yeast by forgot flour to
several hours. When pick it to place on the hot stones. Dough sheet become to swell, soft
and fragrant to unbelievably. Assumed that this is the world’s first swell and soft piece
of bread according with the opinions of historians who believe that the baker would
have to at least 3000 BC. Because they found evidence that the slave dynasty of ancient
Egypt had forgotten the bread cubes while thresh flour. Baking began as a common
sequence Initiative by the ancient Greeks to the off larger oven for people took to bake
bread. Bread is making more progress when Romans people added various kinds of
ingredients into the dough with oil, such as honey, which is the beginning of the word
PASTRY. In the year 1492 AD bakery industry was the American Revolution by put
cocoa into the pastry so it be popular for a lot of people in the 17 th century and 18th So
it has the distinction between word of Pastry and Baker clearly by the temperature and
yeast that used in baking as a determinant. For Thailand Bakery became known for the
introduction of Thaothongkeepma or Donya thoer dor ke mar wife’s Jao pra wichayen
(Year 2271-2275) and call a dessert from process that baking.
Cake is a term with a long history (the word is of Viking origin, from the Old
Norse kaka) and denotes a baked flour confection sweetened with sugar or honey; it is
mixed with eggs and often, but not invariably, with milk and fat; and it has a porous
texture from the mixture rising during cooking. It is not surprising that the frontiers
between Cake and bread, biscuit and bun are indistinct. The progenitor of all is bread in
its simplest form. As techniques for baking and leavening developed and eating patterns
changed, what were originally regarded as forms of bread came to be seen as categories
of their own and named accordingly. Certain Roman breads, enriched with eggs and
butter, must have achieved a cakelike consistency and thus approached one of these
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indistinct frontiers. Europe and places such as North America where European
influence is strong have always been the center of cakes. One might even draw a line
more tightly, form English-speaking areas. No other language has a word that means
exactly the same as the English ‘cake.' The continental European gateau and torte often
contain higher proportions of butter, eggs and enriching ingredients such as chocolate,
and often lean towards pastry rather than cake. Central and East European items such
as baba and the Easter kulich are likewise different. The western tradition of cakes
applies little in Asia. In some countries western-style cakes have been adopted on a
small scale, for example the small sponge cakes called kasutera in Japan. But the 'cakes'
which are important in Asian are quite different from anything occidental for examples,
see moon cakes and rice cakes of the Philippines. The history of cakes goes a long way
back. Among the remains found in Swiss lake villages were crude cakes make from
roughly crushed gains, moistened, compacted and cooked on a hot stone. Such cakes can
be regarded as a form of unleavened bread, as the precursor of all modern European
baked products. Some modern survivors of these mixtures still go by the name ' cake ',
for instance oatcakes, although these are now considered to be more closely related to
biscuits by virtue of their flat, thin shape and brittle texture. Ancient Egypt was the first
culture to show evidence of true skill in baking, making many kinds of bread including
some sweetened with hone. The Greeks had a form of cheesecake and the Romans
developed early versions of fruitcakes with raisins, nuts and other fruits. These ended
up in 14th century Britain. Chaucer mentions immense cakes made for special
occasions. One was made with 13 kilograms of flour and contained butter, cream, eggs,
spices, currants and honey. Moulds, in the form of cake hoops or pans have been used
for forming cakes since at least the mid-17th century. Most cakes were eaten
accompanied by a glass of sweet wine or tea. At large banquets, elaborately decorated
cakes might form part of the display, but would probably not be eaten. By the mid-19th
century the French were including a separate "sweet" course at the end of the meal
which might include 'gateau'. During the 19th century, technology made the cake-
baker's life much easier. The chemical raising agent bicarbonate of soda, introduced in
the 1840's, followed by baking powder (a dry mixture of bicarbonate of soda with a
mild acid), replaced yeast, providing a greater leavening power with less effort. Another
technology breakthrough was more accurate temperature controlled ovens. In most of
NW Europe and North America a well-developed tradition of home baking survives,
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with a huge repertoire of cake recipes developed from the basic methods. The ability to
bake a good cake was a prized skill among housewives in the early to mid-20th century,
when many households could produce a simple robust, filling 'cut and come again' cake,
implying abundance and hospitality (Bakery House, n.d.).
2.2 Situation of Industry
In the periods time around 10-15 years ago. Bakery and cake become popular in
Thailand, Thai people want to eat and fun with it. So there are many milk and bakery
shop that affecting to our company so Our Company want to give good quality and not
expensive for all of people can go to enjoy and happy with us. We will provide a new
kind of food and beverage by different equipment and adapt technology into our service
for customer get benefits and satisfy when come to join with us more than others. And
we have many promotions to attraction customer and behavior of them.
2.2.1 Competition Analysis
Although our product target consumers group that student of Mae Fah Luang
University and in the aged 18-25 year and targeting market will be trade inside place
more than outside place (as can see more details in chapter 3). So, we have many
competitors in place as follow:
Direct competitors:
 Nom Na Mor
 Nom Chompoo
 Kin Nom Kan
Indirect competitors:
 Boss Coffee
 Banoffe
 D-jang Bakery
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2.3 Product and Service
Product
Milkery has product both milk and milk shake a variety of flavors, which contain
high quality ingredient and fresh, clean and organic raw material such as cocoa, coffee,
chocolate, iced tea, milk tea, green tea, o-rio and fruits. Decorate raw material have
whipping cream, brown scales, jelly, o-rio, o-jo, pokki and fruits. Bakery has cake, pie
and bread.
Service
Nowadays service is the contribution to attract the customers. Milkery provides

catering that the customer can select milk and bakery which they want. We offer menu
that customers can choose by themselves, it depends on the price that we agreed. It
suits for meeting area. The shop is decorated in modern style. There are reading books
corner and Wi-Fi service. Customers can choose milk and bakery by themselves or it is
called self-service. We train the employees and concern about service mind. Milkery
opened in everyday (17:00 pm. – 23:00 pm.)
At Milkery shop de decorate around shop to appropriate for relax time to

customer. We decorate in the shop with lovely style and have many zones for customer
seat.
- We provide the zone various game toys for customer can choose to play.
- We provide zone for listen to the music.
- And we have a zone for reading we provide many kind of book magazine for
customer.
- For who love movie we have zone for watching movies
So customer can choose which zone that they want. And our shop we provide
wireless internet for customer if customers want to connect customer can tell staff and
staff will give password of wireless internet. And we hope customer feel relax when
they come to Milkery and satisfy with our product and service.
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 Milk Shake
Figure 2.1 Milk shake products
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Figure 2.4 Milk shake products (Hilunch Team, n.d.)
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 Beverage
Figure 2.5 Beverage products
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Figure 2. 8 Beverage products
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 Bakery & Snack
Figure 2.9 Bakery and snake products
Figure 2.10 Bakery and snake products
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Figure 2.11 Bakery and snake products (PakBakery, 2006)
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2.4 Vision of Milkery
Within 5 years is the shop milk and bakery is famous and receive accept quality
and service be number one of the shop Milkery. And we created Milkery for attract our
customers to meet the best of service, atmosphere, cleanliness, and quality of products.
The key thing, we wish the customers have smile and to be happy when come to our
café or buy our products.
2.5 Mission
We are producer of milk and bakery to provide professional services with fresh
milk and bakery quality in reasonable price and taking into account the health of
consumers are important. And we provide good service, atmosphere, cleanliness and
consistent with the needs of consumers. Moreover control manufacturer of milk and
bakery and provide good quality with modern machinery and fresh raw materials.
Maintain cleanliness in production lines and facilities.
2.6 Business Strategy
2.6.1 Corporate Strategy
1. Growth Strategies: Milkery using both types of growth strategies are
Concentration Growth Strategy
Our company using a Concentration Growth Strategy when we see opportunities

to market. Our company is dedicated to survey, marketing and manufacturing to
produce our products to meet customer needs. We will focus on growth in the vertical
by which we will be both the owner and operator from input, to process or channels,
and into the finished product. Because if we can grow our business as planned. This
means that we don’t need to purchase raw materials or not through other supply chains.
This is useful in helping the business to cover the full range.
Diversification Growth Strategy
Our company also using a Diversification Growth Strategy by focus on

Conglomerate Diversification to expand our business to other types of products
involved with an existing business. We will bring skills and expertise, or property used
in business. Because of Milkery can make more diverse of products and customers.
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2. Stability Strategy
Milkery try to apply profit strategy into business because of if our business can
reduce the costs of unnecessary such as advertising costs, wages, or expenses are
miscellaneous. Our business will profit increase but the strategy that we use this grant
does not mean that our quality will go down. We continue to develop maintain the
standard of our product to serve to customers.
3. Retrenchment Strategies
Milkery will use this grant strategy only during the economic downturn or the
shop's sales dropped Strategies which reduce the activity of this grant or production
process. Reducing the size of the business by adjust the restructuring to more fit.
Another way is to cut various facilities numerous than necessary away. We also can cut
costs the survey cost with other expenses. That's it; our business will continue to be.
And become a solid business in the future.
2.6.2 Business Level
The aim of our company is try to improve positioning in competition market of

milk shop. Milkery is developing strategy under objective, corporate strategy and
business strategy by aim to increase profit of produce and sell products.
 Competitive advantages
Milkery has differentiation from other mike shop because we train our
employees to be professional service provider and concern about service mind to make
customer satisfy and delight. About products, we try to make our product has feature
such as in each step of production are cleanliness, use only high quality of ingredients.
All of menus are special recipes and we try to think new menu all the time to provide
many choices for customers. Milkery will make reputation of the firm by sell only high
quality of products but low price.
 Cost leadership
Set the strategy that aim to make standardized products by set the price of our
products in moderate price to attract more customers that price-sensitive to get high
volume of profit. Although our company set price in moderate but we also use
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ingredients in the same quality not lower than our standard. And services also provide
to customers follow our pattern.
 Quick-response
Because of our business have three competitors in location so we have challenge

with competitors in term of number of customer and sales. Then Milkery has quick
response of customer requirement. We try to update our product in current situation to
support customer need and make our products different from other competitors.
 Focus
The main target market of Milkery is student because we try to focus small group
of customer to respond their need and make them satisfy with our products and
services. And in the future we plan to expand our target market to cover all types of
customer.
2.6.3 Functional Level Strategy
We try to use resources of company to get highest efficiency by each department

will develop their strategy of department by themselves under concept strategy of
business strategy. All of departments are part of customer value and competitive
advantage by concern about quality, efficiency and value delivery to customers.
 Marketing
Our company use marketing by concern about customer satisfaction and use
appropriate cost and our strategy is quick respond in every situation. And we plan to
develop our products and services in every year.
 Production
Operations or production of Milkery usually produce products that match with

customers want or require to reducing waste cost and products can apply to demand of
customers rapidly.
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 Research and development
We have complained papers provide to customers and we try to do research and

get complains from customer to blend customer want with capacity of our company for
creates new menus or products.
 Accounting
Milkery has finding information and news of current trend for easy to making
decision, reduce expense to compile information, and information also available.
 Financial
We set strategy by concern with survival, growth, and flexible about financial of
our business to make maximize profit and get return on investment rapidly.
 Human resource management
Our company chooses or recruits only employees who have characteristic of

service provider that to say they must love to give service. They must know about how
to give service to customer and know how to make customer satisfy. Milkery also gives
train course for employees to appropriate with their work ( Manotungvorapun N., n.d.).
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Chapter 3 Market Feasibility Study
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Chapter 3 Market Feasibility Study
3.1 Market Analysis
3.1.1 General Environment Analysis
The general environmental analysis in our business planning normally refers to

conditions and internal - external factors to our company, outside of our company's
control that might affect its sales, market, costs, and so forth. The internal environment
is the following; culture and behavior of our employees, management strategies/tactics,
and others. The external environment contains consumers/customers, suppliers,
competitors and other factors affecting the operation of a certain business which is
uncontrollable. These are often grouped into kinds of factors, such as the PEST analysis,
which stands for Social, Technology, Economic, and Political factors that might affect
our company. They might be worldwide trends, or specific local market trends, or
anything in between.
Milkery looking at the specific individual context of our company, market,

strategy and resources, and guesses how these factors might affect our company in the
future (Tim, 2007).
 Political Factors
According to the conflict between red shirt and yellow shirt, it has effect to
business and investment side. From that conflict, most people would feel disgusted and
don’t want to do anything. So, the government has a policy to reduce the loan rate and
personal income tax rate to help small and medium enterprise to be continuing. And
also we should change the crisis as an opportunity by creating promotions for attractive
the customers come to our shop (Ministry of Finance, 2010).
 Economic Factors
The economy in Chiang Rai is the growth rate seen by the business such as hotel,
restaurant, entertainment, and etc. According to Chiang Rai Commercial Department
told that the GPP of provinces totaled 40,104.36 million baht, increased from the
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previous year 9.38% and income per year 38,332 baht. In 2007, food and beverage
industry has 1,790.59 million baht (about 4.46%). Nowadays, the hotel and restaurant
industry is becoming popular than the previous year. From the above information told
that the level of consumption of Rai increased. We meet the opportunity that it should
be run business is becoming popular. Milkery will generate income to local community
and grow economic of province (Commercial Department, 2007).
 Social Factors
The social of Mae Fah Luang University students have become more luxury and
materialism. From the table below is showing the number of students of Mae Fah Luang
University from 2008 to 2009 (as can see Table 3.1 and 3.2). In addition we found that
younger people love to drink milk. Thus Milkery focuses on the customers who like milk
are a favorite and change the way to serve milkshake to customer rather than simply
milk. This cause that Milkery wants to makes the first impression about new style of
milk and makes customer satisfaction (Mae Fah Luang University, 2009).
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The Report of all students in Semester 2/2008 separate by Schools, Degree, and Gender
Table 3.1 The Report of all students in Semester 2/2008
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The Report of all students in Semester 1/2009 separate by Schools, Degree, and Gender
Table 3.2 The Report of all students in Semester 1/2009
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 Technology Factors
Milkery has the technology to use in our shop such as the inside area of our shop
provide the wireless for the customer who come to shop, almost appliances in our shop
is the electricity because we want to fast deliver and serve the products to customers
and make them feel happy with our services. So, our shop has more competitive
advantages than other competitors.
Figure 3.1 Wireless router
Figure 3.2 Electricity
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3.1.2 Competition Analysis (3Cs Analysis)
 Competitor Analysis
Direct competitor of Milkery has 3 competitors including with;
1. Nom Na Mor
Product: foods, milk products, and snacks
Price: food over 49, milk and bread 10 – 30 baht
Place: at front of Mae Fah Luang University
Promotion: no
Monthly sales: 40,000 – 50,000 baht
Size of shop: 2 x 6 meters
Number of table: 13 tables
Customer capacity: 44 people
Facility: magazine, toilet, car park, TV
This is the strong competitor of Milkery because they provide product nearby
Milkery but lower price and quality than our company. Nom Na Mor also has weakness
about services because they have not enough employees when many customers coming
and haven’t enough car park for customers. So, this is the opportunity to Milkery
because our employees are trained and enough to serve services to customers. Strength
of Nom Na Mor is cheaper price but if compare with services that customers get from
Milkery it can make customer more satisfaction than Nom Na Mor.
2. Nom Chompoo
Product: foods, milk products, and snacks
Price: food 29 – 69 baht, milk product 10 – 49 baht
Place: behind Fah Thai Market
Promotion: no
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Size of shop: 4.5 x 7 meters
Facility: wood toys, toilet, car park, DVD player, TV
This shop is provide beverage and snack to customer but about price quite
expensive than other shop around front of Mae Fah Luang University. Nom Chompoo
has slow serving products and services because they have only 3 employees in the shop.
The size of shop is medium sometimes not enough table for customers. So, those are
advantages for Milkery to attract customer because products of our company are lower
price than Nom Chompoo and better service.
3. Kin Nom Kan,
Product: milk products and bread
Price: 10 – 35 baht
Promotion: no
Facility: take photo corner, toilet, car park
They provide product similar to other shop in lowest price and medium
quality but Kin Nom Kan amount of customers less than Milkery because the most of
customers concern about quality of products and services of shop. So, Kin Nom Kan just
has little influence with our company that to say Milkery has advantage over Kin Nom
Kan both of products and services.
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Indirect competitor of Milkery has 3 competitors including with;
1. Boss Coffee
Product: coffee and tea
Promotion: no
Monthly sales: 35,000-50,000 baht
Facility: wifi, newspaper, magazine
They provide products of beverage. Their beverages are good taste and they
have many customers in each day. But beverages of Boss Coffee are expensive this is our
opportunity to increase penetration of beverage market.
2. Banoffe
Product: milk products and bakery
Promotion: no
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Facility: take photo corner, toilet, car park
Although Banoffee have good location and their style are modern, but they set
the high price of products than other shop that make them can’t attract more customer.
So this is advantage of Milkery to attract customers from Banoffee who love to drink
same quality of coffee but lower price.
3. D-Jang Bakery
Product: milk, coffee, bakery
Price: bakery 13 up baht, beverage 20 – 65 baht
Promotion: for 10 cups free 1 cup
Monthly sales: 40,000-60,000 baht
Facility: wifi, newspaper, magazine, cartoon
They have narrow length of product because they only sell bakery and the
main product of D-Jang Bakery is cake. They have table only 4-5 tables provide for
customer so the opportunity of Milkery because our company also sell bakery and
beverage that make customers has many choices to choose and the tables are available
enough to serve customers.
 Customer Analysis
Target group of Milkery is student of Mae Fah Luang University because of the
location of our shop is front of Mae Fah Luang University. In 2008, Mae Fah Luang
University has student about 8,269 students. For 2009, the number of students of Mae
Fah Luang University increasing to 9,627 students, and also likely to increase in the next
year. Most of them always look for eating in the evening or night at the shop has
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provided match with their need. And they also meeting with their friends or working
together during eating at the shop. Majority of students have high power to purchase to
meet their need but they have few choices to choose products and services that high
quality and suitable for them at the front of university because they don’t want to go far
from their home or dormitory. And nowadays the trend of students concern about their
health so they will try to consumption healthy product. In sum, Milkery is the shop that
suitable for customer because we provide products and services in high quality and our
products are good for their health that meets with student requirement.
 Competitive Analysis
At the front of Mae Fah Luang University has high competitive in the market
because they have the same target group that is student. Most of our competitors have
the weaknesses about the narrow area of shop and have not enough car park for
customers. So, when we know the status, strengths, and weaknesses of our competitors.
Milkery can plan strategy that concern about products and services of high quality and
healthy to make word of mouth by using the customers to advertise our company and
then Milkery also has brand royalty. And we will try to set our plan and strategy able to
change along with current situation and trend in easily to provide products and services
for support customers requirement so that make our company increase number of sale
and profit.
3.2 STP Analysis
3.2.1 Segment Marketing
Milkery is the shop that provide product of fresh milk and bread which is the
product for consumer and benefits for health and body. So, Milkery was providing about
segment by use criterion as follow.
1. Demographic:
- Unlimited gender.
- Limited ages.
- Several of Career there are student.
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2. Geography:
- Area around Mae Fah Luang University.
- Area around Fah Thai Market.
- Dormitory of university student.
3. Behavior:
- Readiness of money to purchase.

- Both of steady customers and irregular customer.
- Both of already have experience and don’t have experience to drink milk or was
consumer of milk shop.
- Loyalty to the product.
- Intention to purchase.
4. Psychology:
- Lifestyle of people who concern about healthy and consumption.

- Personality was healthy and looks good.
3.2.2 Target Marketing

Our company concern about activities of shop to respond about requirements,
quality, cost-effective and economizes of consumer and make consumer classify by
concern to serving their specific needs and demand of customer in each group. So the
target that we should to follow is demographic segmentation because comfortable and
easy to enhance our product as follows:
 Main Target Marketing: student both of high school and university.
 Secondary Target Marketing: people all of proper for gender and ages who live in
area around Milkery.
 Future Target Marketing: people who interesting in franchise business with
Milkery.
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3.2.3 Positioning Marketing
Figure 3.3 Milkery positioning
The positioning of Milkery is base on high quality and high price that make the
customer come to our shop. Milkery has product both milk and milk shake a variety of
flavors, which contain high quality ingredient and fresh, clean and organic raw material.
Nowadays, customers want to buy the product that has high quality and health. The
product of our company is fresh milk and bread in every, more quantity and variety of
menus to choose and good atmosphere because the shop decorated in modern style that
the customer can dine in the shop which is exactly different from other company. There
are many facilitates in the shop such as; reading books corner and Wi-Fi service, living
zone and choose which more zone that they want. That make the customer feel good as
aristocracy agree. So, Milkery provided many quality products to increase satisfaction to
our customers. And our company gives the best thing to our customer.
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3.3 Marketing Mix Strategy
3.3.1 Product
Our company concern about healthy business because our company aware of
business opportunities in terms of health. Nowadays, consumer focused more on health.
So there is the reason to do Milkery. Inside of logo of shop by Milkery; the word form
milk + bakery is means drinking fresh milk and eat bakery at the shop and with relaxing
in our shop.
 Hot fresh milk
 Classic Jelly Milkshake
 Old Fashioned Chocolate Milkshake
 Banana Chocolate Milkshake
 I Love Strawberries Milkshake
 Classic Vanilla Milkshake
 Purple Cow Milkshake
 Chocolate Cherry Milkshake
 Chocolate Peanut Butter Milkshake
 Bread egg custard
 Bread egg custard orange
 Bread egg custard grebe
 Bread egg custard vanilla
 Bread egg custard chocolate
 Etc.
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3.3.2 Price
“Milkery” set the same price for general products because we are new shop in
this business. And including to set up price to promote in some period of time for
stimulate our net sales such as, in the Birthday, Valentine day or other important day.
 Hot fresh milk 25
 Classic Jelly Milkshake 30
 Old Fashioned Chocolate Milkshake 30
 Banana Chocolate Milkshake 30
 I Love Strawberries Milkshake 35
 Classic Vanilla Milkshake 30
 Purple Cow Milkshake 30
 Chocolate Cherry Milkshake 35
 Chocolate Peanut Butter Milkshake 35
 Bread egg custard 15
 Bread egg custard orange 15
 Bread egg custard grebe 15
 Bread egg custard vanilla 15
 Etc.
3.3.3 Place
“Milkery Shop” is the milk and bakery shop and this product is appropriate for
people e who loves healthy and the group of people who loves drink milk. So we choose
to set up the shop at in front of the way to entrance to university and near the market
this is the good location for our business mike and bake shop because it comfortable for
customer to come and easy to see our shop because everyone who study in university
will see our always when they will entrance to university. And we try to show the name
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of shop and our product to easy to remember and easy to understand that our shop sale
about milk and bakery.
3.3.4 Promotion
“Milkery Shop” is locate near the university so we try to represents the various
aspect of marketing communication that is the communication of information about the
product of Milkery shop with the goal of generating a positive customer response. So we
try to provide a good product for customer satisfaction that is the important thing to
help to promote our shop which calls that “word of mount”. Because student who
studies in the university they have a group of friends when they come to the shop we
will provide the special sale promotion to them and have a coupon for collect to some
thank gift.
Sale Promotion
Our company has a lot of promotion to attract customer and get more benefit
when come and join with our company such as:
For person who join our café alone and
 Order menu more than 100 bath you can get discount rate 3%
For lover, couple or buddy who join our café and
 Order menu more than 300 bath you can get discount rate 3% and Rose flower
or heart beat candy
 Order menu more than 500 bath you can get discount rate 5% and Rose flower
or hear beat candy
For team, Group or People more than 3 people and
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3.4 Sales Forecast/Profit Estimation
Year 1 January February March April May June July August September October November December Total
Sale 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00
Cost 67,050.00 72,960.00 66,330.00 65,340.00 57,000.00 60,420.00 63,330.00 75,360.00 85,350.00 71,970.00 88,080.00 91,260.00 864,450.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Other expense 10,000.00 10,000.00 10,000.00 10,000.00 10,320.00 12,100.00 14,242.00 11,034.00 16,424.00 13,123.00 11,231.00 12,123.00 140,597.00
EBIT 515,412.00 470,382.00 422,622.00 390,612.00 360,172.00 427,602.00 432,570.00 604,408.00 648,368.00 588,369.00 749,591.00 776,599.00 6,386,707.00
Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 505,678.67 460,648.67 412,888.67 380,878.67 350,438.67 417,868.67 422,836.67 594,674.67 638,634.67 578,635.67 739,857.67 766,865.67 6,269,907.04
Taxes (15%) 75,851.80 69,097.30 61,933.30 57,131.80 52,565.80 62,680.30 63,425.50 89,201.20 95,795.20 86,795.35 110,978.65 115,029.85 940,486.06
Net income 429,826.87 391,551.37 350,955.37 323,746.87 297,872.87 355,188.37 359,411.17 505,473.47 542,839.47 491,840.32 628,879.02 651,835.82 5,329,420.98
Table 3.3 Sale Forecast for Year 1
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Sale 646,314.00 626,812.00 552,527.00 499,513.00 451,073.00 512,456.00 553,215.00 621,456.00 689,324.00 701,515.00 912,352.00 871,241.00 7,637,798.00
Cost 69,150.00 67,210.00 63,220.00 60,250.00 59,150.00 61,250.00 63,350.00 71,240.00 73,390.00 76,970.00 87,560.00 81,240.00 833,980.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Other expense 13,210.00 11,300.00 12,410.00 10,000.00 10,020.00 11,760.00 13,242.00 15,352.00 14,214.00 13,877.00 17,431.00 10,123.00 152,939.00
EBIT 560,406.00 544,754.00 473,349.00 425,715.00 378,355.00 435,898.00 473,075.00 531,316.00 598,172.00 607,120.00 803,813.00 776,330.00 6,608,303.00
Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 550,672.67 535,020.67 463,615.67 415,981.67 368,621.67 426,164.67 463,341.67 521,582.67 588,438.67 597,386.67 794,079.67 766,596.67 6,491,503.04
Taxes (15%) 82,600.90 80,253.10 69,542.35 62,397.25 55,293.25 63,924.70 69,501.25 78,237.40 88,265.80 89,608.00 119,111.95 114,989.50 973,725.46
Net income 468,071.77 454,767.57 394,073.32 353,584.42 313,328.42 362,239.97 393,840.42 443,345.27 500,172.87 507,778.67 674,967.72 651,607.17 5,517,777.58
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Sale 871,247.00 792,114.00 613,515.00 512,415.00 503,636.00 546,449.00 616,738.00 797,532.00 741,738.00 692,626.00 871,511.00 679,261.00 8,238,782.00
Cost 72,050.00 70,960.00 60,330.00 52,340.00 50,510.00 54,167.00 59,141.00 71,415.00 69,261.00 65,161.00 73,510.00 63,140.00 761,985.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Other expense 14,672.00 13,110.00 13,151.00 11,241.00 10,415.00 12,150.00 12,958.00 14,166.00 18,372.00 16,251.00 15,241.00 11,168.00 162,895.00
EBIT 780,977.00 704,496.00 536,486.00 445,286.00 439,163.00 476,584.00 541,091.00 708,403.00 650,557.00 607,666.00 779,212.00 601,405.00 7,271,326.00
Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 771,243.67 694,762.67 526,752.67 435,552.67 429,429.67 466,850.67 531,357.67 698,669.67 640,823.67 597,932.67 769,478.67 591,671.67 7,154,526.04
Taxes (15%) 115,686.55 104,214.40 79,012.90 65,332.90 64,414.45 70,027.60 79,703.65 104,800.45 96,123.55 89,689.90 115,421.80 88,750.75 1,073,178.91
Net income 655,557.12 590,548.27 447,739.77 370,219.77 365,015.22 396,823.07 451,654.02 593,869.22 544,700.12 508,242.77 654,056.87 502,920.92 6,081,347.13
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Sale 716,162.00 781,516.00 571,616.00 541,251.00 582,615.00 738,393.00 861,992.00 634,617.00 973,261.00 699,515.00 764,167.00 912,415.00 8,777,520.00
Cost 67,050.00 65,816.00 51,783.00 49,261.00 54,167.00 62,476.00 71,160.00 61,717.00 85,717.00 66,510.00 67,161.00 83,156.00 785,974.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Other expense 12,154.00 11,515.00 12,561.00 13,161.00 10,740.00 14,161.00 15,161.00 10,000.00 18,116.00 10,619.00 12,411.00 15,162.00 155,761.00
EBIT 633,410.00 700,637.00 503,724.00 475,281.00 514,160.00 658,208.00 772,123.00 559,352.00 865,880.00 618,838.00 681,047.00 810,549.00 7,793,209.00
Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 623,676.67 690,903.67 493,990.67 465,547.67 504,426.67 648,474.67 762,389.67 549,618.67 856,146.67 609,104.67 671,313.67 800,815.67 7,676,409.04
Taxes (15%) 93,551.50 103,635.55 74,098.60 69,832.15 75,664.00 97,271.20 114,358.45 82,442.80 128,422.00 91,365.70 100,697.05 120,122.35 1,151,461.36
Net income 530,125.17 587,268.12 419,892.07 395,715.52 428,762.67 551,203.47 648,031.22 467,175.87 727,724.67 517,738.97 570,616.62 680,693.32 6,524,947.68
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Sale 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00
Cost 81,690.00 78,110.00 74,156.00 51,670.00 52,899.00 55,161.00 64,177.00 79,728.00 51,982.00 80,051.00 72,188.00 82,682.00 824,494.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Other expense 17,161.00 16,172.00 14,166.00 11,516.00 10,415.00 10,838.00 12,167.00 15,161.00 13,514.00 17,162.00 14,111.00 19,923.00 172,306.00
EBIT 1,049,263.00 851,661.00 799,730.00 549,971.00 589,313.00 602,070.00 636,888.00 853,353.00 548,851.00 861,055.00 762,052.00 869,757.00 8,973,964.00
Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 1,039,529.67 841,927.67 789,996.67 540,237.67 579,579.67 592,336.67 627,154.67 843,619.67 539,117.67 851,321.67 752,318.67 860,023.67 8,857,164.04
Taxes (15%) 155,929.45 126,289.15 118,499.50 81,035.65 86,936.95 88,850.50 94,073.20 126,542.95 80,867.65 127,698.25 112,847.80 129,003.55 1,328,574.61
Net income 883,600.22 715,638.52 671,497.17 459,202.02 492,642.72 503,486.17 533,081.47 717,076.72 458,250.02 723,623.42 639,470.87 731,020.12 7,528,589.43
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Summary Net Income
Summary Net income For Five Years

8,000,000.00
7,000,000.00
Net
6,000,000.00 Income
5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
-
Year 1 Year 2 Year 3 Year 4 Year 5
Figure 3.4 Summary Net Incomes for Five Years
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3.5 Marketing Expenses (Sale Incentive)
We have commission that evaluation by sale x 0.01 to created inspiration staff and employees, discount rate and souvenir to
attraction customer and leaflet to promote and advertising our company.
Selling expense
Discount sale 12,087.00 14,350.00 13,425.00 14,700.00 16,270.00 19,670.00 17,910.00 22,125.00 18,743.00 27,304.00 28,124.00 31,128.00 235,836.00
Commission 5,960.10 5,568.90 5,025.00 4,695.00 4,310.40 5,036.70 5,136.90 6,943.50 7,536.90 6,770.10 8,524.50 8,835.30 74,343.30
Total Selling Expense 18,047.10 19,918.90 18,450.00 19,395.00 20,580.40 24,706.70 23,046.90 29,068.50 26,279.90 34,074.10 36,648.50 39,963.30 310,179.30
Advertising Expense
Leaflet 500.00 500.00 - - 500.00 - 100.00 100.00 100.00 100.00 100.00 100.00 2,100.00
Souvenir 1,000.00 300.00 200.00 200.00 500.00 300.00 100.00 1,000.00 500.00 250.00 200.00 400.00 4,950.00
Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00
Total Advertising Expense 1,800.00 1,100.00 500.00 500.00 1,300.00 600.00 500.00 1,400.00 900.00 650.00 600.00 800.00 10,650.00
Total Marketing Expense 19,847.10 21,018.90 18,950.00 19,895.00 21,880.40 25,306.70 23,546.90 30,468.50 27,179.90 34,724.10 37,248.50 40,763.30 320,829.30
Table 3. 8 Marketing Expenses for Year 1
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Selling expense
Discount sale 14,087.00 17,350.00 15,425.00 16,700.00 19,270.00 20,670.00 24,910.00 19,125.00 26,743.00 23,304.00 28,924.00 29,928.00 256,436.00
Commission 6,463.14 6,268.12 5,525.27 4,995.13 4,510.73 5,124.56 5,532.15 6,214.56 6,893.24 7,015.15 9,123.52 8,712.41 76,377.98
Advertising Expense
Leaflet 1,000.00 - - 500.00 500.00 - 100.00 100.00 500.00 100.00 100.00 - 2,900.00
Souvenir 800.00 350.00 100.00 200.00 400.00 250.00 300.00 700.00 200.00 450.00 250.00 100.00 4,100.00
Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00
Total Advertising Expense 2,100.00 650.00 400.00 1,000.00 1,200.00 550.00 700.00 1,100.00 1,000.00 850.00 650.00 400.00 10,600.00
Table 3.9 Marketing Expenses for Year 2
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Selling expense
Discount sale 15,105.00 14,050.00 15,425.00 18,050.00 21,570.00 20,670.00 19,800.00 22,140.00 23,690.00 19,650.00 26,090.00 29,890.00 246,130.00
Commission 8,712.47 7,921.14 6,135.15 5,124.15 5,036.36 5,464.49 6,167.38 7,975.32 7,417.38 6,926.26 8,715.11 6,792.61 82,387.82
Advertising Expense
Leaflet 500.00 - 300.00 - 100.00 - 100.00 - 500.00 - - - 1,500.00
Souvenir 650.00 400.00 250.00 200.00 300.00 300.00 150.00 150.00 250.00 300.00 100.00 500.00 3,550.00
Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00
Total Advertising Expense 1,450.00 700.00 850.00 500.00 700.00 600.00 550.00 450.00 1,050.00 600.00 400.00 800.00 8,650.00
Milkery
P a g e | 46
Selling expense
Discount sale 18,900.00 19,250.00 21,560.00 19,230.00 23,220.00 19,230.00 21,190.00 19,760.00 23,500.00 20,990.00 19,250.00 22,210.00 248,290.00
Commission 7,161.62 7,815.16 5,716.16 5,412.51 5,826.15 7,383.93 8,619.92 6,346.17 9,732.61 6,995.15 7,641.67 9,124.15 87,775.20
Advertising Expense
Leaflet 600.00 100.00 - - 300.00 100.00 100.00 - - 300.00 200.00 - 1,700.00
Souvenir 200.00 220.00 300.00 200.00 350.00 200.00 280.00 230.00 350.00 300.00 200.00 400.00 3,230.00
Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00
Total Advertising Expense 1,100.00 620.00 600.00 500.00 950.00 600.00 680.00 530.00 650.00 900.00 700.00 700.00 8,530.00
Milkery
P a g e | 47
Selling expense
Discount sale 23,990.00 21,250.00 19,290.00 22,730.00 23,720.00 18,780.00 21,990.00 19,430.00 23,940.00 19,220.00 28,940.00 24,320.00 267,600.00
Commission 11,516.62 9,494.91 8,916.00 6,167.05 6,561.75 6,716.17 7,167.80 9,517.90 6,178.95 9,618.16 8,518.99 9,759.10 100,133.40
Advertising Expense
Leaflet 300.00 250.00 100.00 - - - - 650.00 - - 450.00 150.00 1,900.00
Souvenir 450.00 230.00 150.00 330.00 400.00 150.00 270.00 150.00 370.00 200.00 500.00 500.00 3,700.00
Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00
Total Advertising Expense 1,050.00 780.00 550.00 630.00 700.00 450.00 570.00 1,100.00 670.00 500.00 1,250.00 950.00 9,200.00
Milkery
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3.6 Conclusion
From our analysis in Chapter 3 Marketing Feasibility study can tell that this
chapter talks about the general environment analysis such as social, technology,
economic, environment, and political factors. These factors might be both internal and
external factors, it is the important factors that effect to our company and we must to
concern on those factors. Next, the competition of our company; our main competitors
such as Nom Na Mor: Because this shop has quite same quality and lower price than
company, but their areas and employees not enough to serve the customers. So, when
we know about strength and weakness of our competitor, we can set the strategies by
provide products and services in high quality to created word of mouth to promote our
company. And then, the target market of our company; we focus on the customers who
are students of MFU, so the customer easy to access. For the promotion of our company;
we set discount rate and give souvenir to be promote and attract more customers. Our
company has high of net income but spent money to investment and advertising to low.
In addition our company has increase net income in every year. So it makes the owner
and investor can gain more money and get more benefit from our company.
Milkery
Chapter 4 Technical Feasibility Study
Milkery
Page | 50
Chapter 4 Technical Feasibility Study
4.1 Production and Operations Analysis
4.1.1 Product Characteristics
Our products can divided into 3 main types:

1. Milk shake products
2. Beverage products
3. Bakery and Snack products
 Milk shake products
Milkery has product both milk and milk shake a variety of flavors, which contain
high quality ingredient and fresh, clean and organic raw material. Decorate raw material
have whipping cream, brown scales, jelly, O-rio, O-jo, Pokki and fruits. About 90% of
milk is the main ingredient use in all of these products. For milk shake products consists
of milk, coffee, tea, and fruity honey
For the products from milk: Milkery use milk to produce the products because
milk has many nutrients that are beneficial to the body such as calcium or proteins. Milk
is important to people of all ages. Especially teenage as a student’s university but the
product is pure milk may make customers feel tired easily. So, Milkery produces a
variety of types of milk such as sweet milk, pink milk, honey milk, yogurt milk, etc. In
addition we also provide topping for serve to customer such as whipping cream, brown
scales, jelly, O-rio, O-jo, Pokki and fruits (Kanyarat, 2008).
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Figure 4.2 Topping
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For the products from coffee: Besides milk products, coffee is another popular
product for university students. Milkery provides many type of coffee such as:
 Cappuccino: originating from Italy, which is espresso and milk is the main
ingredient.
Figure 4.3 Cappuccino shake
 Latte: is Italian which is means milk, so it tastes sweet and soft from milk.
Figure 4.4 Latte shake
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 Mocha: is Arabica coffee grown in a kind of mocha docks in Yemen. Mocha is a

similar color and a smooth chocolate.
Figure 4.5 Mocha shake
 Café Americano: because pure espresso is too intense for American coffee.
Therefore, it has improved the formula by bringing hot water to dilute the coffee,
espresso so that the taste of palliative.
Figure 4.6 Café Americano shake
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 Espresso: Espresso is the most intense flavor. The origin of this espresso comes
from a word in Italian which means urgent.
Figure 4.7 Espresso shake (Maeyingzine, 2008)
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Figure 4.8 Green and Red Tea shake
For the products from tea: "Tea" is a beverage that people worldwide are
favorite drink more. At the present, tea consumption is gaining popularity around the
world. The survey found that the consumption of more than 800 million cups a day.
Milkery used tea as an ingredient in the product (Horapa.com, 2010).
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Figure 4.9 Milk Fruity syrup shake
For the products from fruity syrup: Milkery provides much fruity syrup products
such as kiwi, strawberry, lychee, green apple, blue berry, orange, watermelon,
cantaloupe, etc. We buy a fresh fruit day by day, so, we always use fresh fruit because it
can help us to maintain the standard taste.
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 Beverage products
For customers who don’t consume or don’t like milk shake. Milkery provides a
menu of juice smoothies various flavors such as strawberry, watermelon cantaloupe
apple, lemon, orange, blueberries, kiwi, lychee, etc. Our raw materials will be fresh and
safety because we purchase raw material from safety orchard. So, we concern about
quality of product and also concern about health of customers.
 Bakery and Snack products

 Bakery:
 Cake is a form of food, typically a sweet, baked dessert. Cakes normally
contain a combination of flour, sugar, eggs, and butter or oil.
 Cookie is a small, flat-baked treat, usually containing fat, flour, eggs
and sugar.
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 Bread with jam such as strawberry, pineapple, orange, raspberry, etc.

 Sunk Ka Ya Baitoey.
 Snack:
 French-fry is potato that long slices of fried potatoes are sometimes
called fries.
 Fry Dumpling is square sheets of wheat dough enclosing minced
cheese that boiled in oil.
 Chicken nugget is a molded piece of chicken product breaded or
battered, then cooked. The "nugget" may be fried or baked in
preparation for serving.
 Kaew Sa is square sheets of wheat dough enclosing minced forks and
vegetable that boiled in oil and water but it doesn’t crisp all much.
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4.1.2 Location
Figure 4.11 Location
Milkery is located at front and opposite to Mae Fah Luang University in a single
building with 2 floors. The area of building is about 10*12 meters or 400 squares. Our
shop is near the location of many dormitories of student of Mae Fah Luang University,
Fah Thai market, and etc. Milkery is the most easiest to see and accessible because the
location of Milkery adjoin with the highway no. 1 or Phaholyothin Road. This side of our
shop has competitor less than the opposite side, so the customer in this side don’t need
to go to those side. Milkery also provided many car parks and table for customers
because we can’t forecast about the amount of customer who come to our shop in a day.
In addition our shop is modern designed and decorate with colorful to attract the
customers and new customer come to our shop.
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4.1.3 Facility Layout
 First Floor
Figure 4.12 First Floor Format
First Floor: Layout of Milkery
1. Entrance/Exit (Doorway)
2. Table
3. Kitchen (Beverage and Bakery)
4. Toy corner
5. Ladder
6. Toilet
7. Pond
8. Tree/bush
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 Second Floor
Figure 4.13 Second Floor Format
Second Floor: Layout of Milkery
1. Ladder
2. Table
3. Bookshelf
4. Toy corner
5. Toilet
6. Wireless adapter
7. Tree
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 The shop design layout
Atmosphere (Modern style with natural)
1. Signage
- We set the signage at the front of our shop, design the signage in colorful
to make prominent point and use big logo and big size of name shop for
easy to see our shop
2. Interior decoration
- Milkery is design the shop to make feel warm and relaxation.
- Wall: we paint the wall in soft color and hang picture of our logo, food,
drinking, bakery, and brief history of Milkery on the wall around the shop.
- Floor: we use parquet to pave the floor to feel close up with nature
- Window: we also have many window around the wall to ventilate the air
and color of windows are conform with wall
3. Exterior decoration
- Tree/bush: we set the trees around the shop because we try to integrate
modern things with natural become unique to make customer feel fine
and relax.
- Pond: inside arrangement of aquatic plant and many kinds of beautiful
fish.
4. Facilities
- Table: we choose the wood table, wood chair, and sofa in colorful of soft
tone and various color to make customer feel relax and harmonious with
natural.
- Bookshelf: we use wood shelf in soft color and different color in each shelf
to provide many kind of book for who love reading.
- Toy corner: we provide wood toys, chess, and crossword for customers.
- Wireless adapter: we install wireless adapter on the wall of second floor
to provide wireless service around our shop.
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- Music: we will open relax music and sometimes open music that popular
in the present to try to please our main customer.
- Toilet: we provide toilet in two floor to customer convenient and design
in modern style adapt with nature.
4.1.4 Facilities Management
 Property Management
We try to find the location that appropriate with concept of our shop for operate
business. We decide to choose the land and exist building near 7-11 at front of
university because this location is the way that many people pass in each day. The exits
building is build from wood and has two floor, easy to apply become concept of Milkery
shop and the land also useful to respond our need in maximize benefit.
 Facilities Planning
Our shop set the policy and plan for using building and place match with our
shop. We try to use every area in maximize benefit. We set the table both of first and
second floor. At first floor, we set the table near pond and tree provide to customer that
want to feel fresh and near with nature. We also provide toy corner for customers to
play when they waiting order or during eating. At second floor we set the table in two
zones is indoor and outdoor zone. Indoor is air conditioner room and outdoor we set
the tables at the balcony. The kitchen we separate into two zones including with
beverage zone and bakery zone.
 Facilities Operations and Maintenance

We try to encourage our employees to preserve and look after all of our
equipments and facilities become to preventive maintenance for extend usability and
reduce cost of company. And we also turn benefits to employees when they help
company reduce cost or expenses are lower than company setting.
4.1.5 Equipment and tools

We choose the equipment and tools that appropriate with our concept that to say
they will modern and minimize damage environment or conform to natural. All of
equipment must have high quality and safety for employees, so we choose only
Milkery
Page | 64
employees that profession and known working of equipment or tools used to avoid risk
from them. Most of equipment and tools must match with our concept and color also
same tone to make Milkery has unique and then can attract more customers (Products
and Supply Service Co., Ltd, 2010).
 Location
Milkery rent location for 1 year. Cost of location per month is 25,000 Bath.
 Label cost
Milkery must pays money for light box label 1.5 x 3.5 meter about 21,200 Bath.
 Logo
Milkery pays money for designer to design our logo of company about 3,000
Bath.
 Internet (Wireless) & Telephone

Milkery contracts TOT Corporation to set up Internet (Wireless) and telephone
in our company and pay money for it about 2,000 Bath.
4.2 Cost of investment
Cost of investment
Location 300,000
Label Cost 21,200
Logo 3,000
Internet (wireless) & Telephone 2,000
Total 176,200
Table 4.1 Cost of investment
Milkery
Page | 65
4.3 Investment cost
Price per
Equipment & Material No. units Total
unit
Part 1: Equipment
- Coffee Machine 39,000 1 39,000
- Coffee Grinder 15,900 1 15,900
- Blender 7,900 2 15,800
- Cake Display 45,200 1 45,200
- Refrigerator 6,600 1 6,600
- Glass jar 100 3 300
- Measuring cup 8 oz. 290 1 290
- Coffee long spoon 130 1 130
- Dish 25 40 1,000
- Fork 6 40 240
- Oven 4,590 2 9,180
- Microwave 2,200 1 2,200
- Toaster 2,975 1 2,975
- Sandwich maker 490 2 980
- Cash machine 6,400 1 6,400
- Other - - -
Total 146,260
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Part 2: Table & Chair
- Table 833 18 14,994
- Chair 136 44 5,984
- Book shelf & Toy shelf 1,750 4 7,000
Total 27,978
Part 3: Furniture
- TV 11,990 1 11,990
- Lighting - - 5,000
- Stereo 17,990 1 17,990
- Counter 15,000 1 15,000
Total 49,980
Part 4: Decorate Restaurant
- Painting & Wallpaper - - 15,000
Total 15,000
Total Investment cost 239,218
Table 4.2 Investment cost
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Page | 67
Depreciation
Useful life Salvage Depreciation Depreciation

Equipment & Material Total
(yr.) value per year per month
Part 1: Equipment
- Coffee Machine 39,000 5 5,000 9,000 750
- Coffee Grinder 15,900 5 2,500 4,500 375
- Blender 15,800 4 4,100 3,125 260.41
- Cake Display 45,200 8 3,200 4,600 383.33
- Refrigerator 6,600 8 850 1,081.25 90.104
- Oven 9,180 4 900 3,650 304.16
- Microwave 2,200 4 400 1,148 95.625
- Toaster 2,975 3 210 693 57.7775
- Sandwich maker 980 3 120 553 46.111
- Cash machine 6,400 10 370 422 35.167
- Glass jar - - - - -
- Measuring cup 8 oz. - - - - -
- Measuring cup 1 oz. - - - - -
- Coffee long spoon - - - - -
- Dish - - - - -
- Fork - - - - -
- Other - - - - -
Total 17,650 28,772.41 2,397.68
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- Table 15,000 5 2,000 2,600 216.67
- Chair 6,000 5 1,000 1,000 83.33
- Book & Toy Shelf 7,000 5 1,400 1,120 93.33
Total 4,400 4,720 393.33
Part 3: Furniture
- TV 11,990 5 1,200 3,760 313.33
- Lighting 5,000 5 - 1,000 83.33
- Stereo 17,990 5 500 2,900 241.67
- Counter 15,000 10 750 1,425 118.75
Total 2,450 9,085 757.08

Part 4: Decorate
Restaurant
- Painting &
- - - - -
Wallpaper
Total - - - - -
Total depreciation
42,577
for 1 yr.
For 1 month 3,548
Salvage Value 24,500
Table 4.3 Depreciation
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Page | 69
Investment Amount January February March April May June July August September October November December Total
Equipment 146,260 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 28,772.16
Table & Chair 27,978 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 4,719.96
Furniture 49,980 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 9,084.96
Other - - - - - - - - - - - - - -
Total 224,218 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 42,577.08
Table 4.4 Depreciation
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Page | 70
4.4 Operating Cost
 Cost of goods sold
Ingredients Price per unit No. unit Total
- Coffee beans - - -
- Sweetened condensed milk 25 90 cans 2,250
- non-dairy creamer 58 15 kg. 870
- Sugar 15 15 kg. 450
- Plain milk 27 120 cans 3,240
- Caramel 100 30 bottles 3,000
- Ice 30 30 buckets 900
- Whipping cream 150 30 bottles 4,500
- Paper cups for hot coffee 1.65 450 cups 742.5
- Paper cups for cold coffee 1.5 1,200 cups 1,800
- covers 1.2 1,200 pieces 1,440
- Straws 25 12 pack 300
- Plastic Spoons 15 4 pack 60
Total 19,552.50
Table 4.5 Cost of goods sold
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 Cost of labor (per month)
Position Amount Salary Total
Head of Staff 1 7,500 7,500
Barista 1 5,000 5,000
Waiter 1 4,500 4,500
Total 3 17,000
Table 4.6 Cost of labor
 Overhead Cost (per month)
Charge Total
- Electricity 3,000
- Utilities 500
- Water supply 300
Total 3,800
Table 4.7 Overhead cost
Milkery
Page | 72
4.5 Administration Cost
Topic January February March April May June July August September October November December Total
Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000
Telephone 580 620 439 402 489 525 512 541 611 592 567 665 6,543
Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880
Gas 800 650 450 440 470 550 850 750 650 700 620 800 7,730
Insurance 6,900 - - - - - - - - - - - 6,900
Others expenses 2,250 1,895 1,443 1,343 1,655 1,830 1,790 1,879 1,799 1,764 1,800 2,385 21,833
Total 72,020 64,655 63,822 63,675 64,104 64,395 64,642 64,660 64,550 64,546 64,477 65,340 780,886
Table 4.8 Administration Cost for Year 1
Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000
Telephone 680 680 419 392 429 555 622 711 681 742 888 789 7,588
Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880
Gas 825 669 417 420 462 641 688 743 690 765 740 900 7,960
Insurance 6,900 - - - - - - - - - - - 6,900
Others expenses 2,320 1,995 1,337 1,433 1,655 1,830 1,790 1,879 1,799 1,764 1,800 2,385 21,987
Total 72,215 64,834 63,663 63,735 64,036 64,516 64,590 64,823 64,660 64,761 64,918 65,564 782,315
Milkery
Page | 73
Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000
Telephone 760 610 459 416 519 666 744 761 822 787 802 885 8,231
Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880
Gas 840 721 455 430 480 650 750 780 850 700 800 910 8,366
Insurance 6,900 - - - - - - - - - - - 6,900
Others expenses 2,450 2,095 1,413 1,273 1,355 1,830 1,790 1,879 1,799 1,764 1,800 2,385 21,833
Total 72,440 64,916 63,817 63,609 63,844 64,636 64,774 64,910 64,961 64,741 64,892 65,670 783,210
Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000
Telephone 885 520 402 459 525 610 761 744 787 822 885 910 8,310
Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880
Gas 850 669 462 420 430 480 650 650 780 800 910 970 7,101
Insurance 6,900 - - - - - - - - - - - 6,900
Others expenses 2,295 1,879 1,513 1,443 1,655 1,830 1,790 1,879 1,799 1,764 1,800 2,385 22,032
Total 72,420 64,558 63,867 63,812 64,100 64,410 64,691 64,763 64,856 64,876 65,085 65,755 782,223
Milkery
Page | 74
Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000
Telephone 980 620 439 402 489 761 787 885 822 787 744 910 8,626
Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880
Gas 800 650 450 440 470 550 850 750 650 780 910 980 8,280
Insurance 6,900 - - - - - - - - - - - 6,900
Others expenses 2,385 2,295 1,643 1,343 1,425 1,830 1,790 1,879 1,799 1,764 1,800 2,185 22,138
Total 72,555 65,055 64,022 63,675 63,874 64,631 64,917 65,004 64,761 64,821 64,944 65,565 783,824
Milkery
Page | 75
4.6 Management analysis
Milkery is the company which registers to be a justice person likes company

limited. Limited company is cooperation with shareholders who enjoys limited liability.
Follow the new law tells that Company limited will be arise as there are partnership and
shareholder from 5 people, company limited will be divided the capital into share and
each share will have an equal value, value of each shares shall not be less than 100 baht,
shareholders will be have a limited responsibility of the company's debt by not
exceeding the amount value of each shares that each shareholder held.
Organization management is basically a “to do” list for an organization. It lists

out the plan of work, programs, and organizational growth over a period of time - six
months, a year. The tasks involved, who is responsible for them, and when they’ll be
done.
For company, there are 5 partnerships in the company as following

1. Mr. Jatupol Muenharn (General Manager)
2. Miss Wanna Rattanawanit (Operation Manager)
3. Miss Wilawan Kladngiu (Marketing Manager)
4. Miss Nattaya Chiangrang (Human Resource Manager)
5. Mr. Piboonsak Kittitornkun (Accounting/Financial Manager)
Organization Chart
Figure 4.14 Organization Chart
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Page | 76
Description the characters and duties of employee in each department of

Milkery as follows:
1. General Manager
 Directly responsible to provide the internal control to be effective and levels
of productivity are always impressive.
 Manager of the Milkery must be people who have knowledge of marketing,
looking the importance of marketing and see marketing as an investment
cost. Do not see that the cost of marketing as a cost wastage.
 Manager must not to evaluate the work of employees in just sales or profit,
but should to assess in the ability that they can retain the existing customers
and to satisfy customers until enable customer’s loyalty to use our products.
 Control under the policy process and time frame.
 Assessment of internal control of each department.
 Analyzing and solving the problem to be more efficiency.
 Organizing the divisions and order the employee know exactly role they has
to play.
2. Accounting /Financing
 Responsible for overseeing the operation of the accounting follows the
regulation of the account of Milkery.
 Review and analysis of financial statement.
 Check the accuracy of cash flow and the daily reports.
 Collect the items that will be prepared for making an income statements and
expenses.
 Offer financial budget to the manager informed.
 Acts of funds disbursement of Milkery.
 To storage the certificate documentation of Milkery
 Control all expenses cost.
3. Marketing
 To define common strategies and policies of Milkery to achieve its objective
in all aspects of overall quality.
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 Everyone must work together to create and deliver quality marketing with
the product quality to customers.
 Promote and advertise the promotion of the shop.
 Plan and analyze the customer information.
 Marketing need to track and create a feel good relationship with customers.
An impressive customer loyalty.
 Follow the current situation on marketing all the time.
4. Human Resource
 Verify the system into company
 Training initiatives may include apprenticeship, internship, job rotation,
mentoring, and new skills programs.
 Carefully planned and executed HRM programs are meaningless
 Related to employee benefits, safety and health, and worker-management
relations.
 Recruiting and select the employee.
 Evaluate the performance of employee.
5. Production/ operating
 Control the process of production.
 Control the quality of system.
 Control monitors the production and its progress, making sure everything is
operating smoothly and efficiently.
 Take data and maintain records of the speed, efficiency and results of the
production.
 Using this information, they will suggest changes that may improve the
production process.
 Check and evaluation the system of company.
Milkery
Page | 78
4.7 Conclusion
From our analysis in Chapter 4 Technical Feasibility Study can tell that
this chapter talks about the Production and Operations Analysis which our products can
divided into 3 main types: Milk shake products, Beverage products, Bakery and Snack
products and each part talks about ingredient of sauce and how to make?. Milkery is
located at front and opposite to Mae Fah Luang University in a single building with 2
floors. We choose this area because the place is convenience- easy to buy or easy to
reach. This side of our shop has competitor less than the opposite side, so the customer
in this side don’t need to go to those side. Milkery also provided many car parks and
table for customers because we can’t forecast about the amount of customer who come
to our shop in a day. In addition our shop is modern designed and decorate with colorful
to attract the customers and new customer come to our shop. Milkery concerns more
about customers‟ satisfy so we try to find the options which enhance customers‟
satisfy. There are many machines that we provide to our customer for making
comfortable. We have the facility management both providing the facility for customers
and protection our own shop. In addition, we give precedence about employees within
our organization because if we have a good person to work in a right position, the
business can reach to achievement. Each partner is responsible for their own best. And
the total cost of investment is 176,200 Baht, investment cost is 287,485 Baht,
depreciation cost is 42,577 per year and operating cost is 40,352.50 Baht.
Administration Cost of Milkery consist of rental fee, salary, others expenses, internet,
gas and telephone total about 774,703 Baht.
Milkery
Chapter 5 Financial Analysis
Milkery
Page | 80
Chapter 5 Financial Analysis
5.1 Initial investment
There are 10 founders invested of 500,000 Bath with is 50,000 each consist of 10%.
Raw material THB 19,552.50
Equipment, Seating, and Decorate THB 287,485.00
Properties THB 150,000.00
Others THB 22,600.00
Total initial investment THB 478,637.50
5.2 Source of funds
The initial investment at first, we invested 500,000 Bath, but it’s not enough to run
our business. So, we decided to borrow money from bank for 1,000,000 Bath with the
rate of 4% within 5 years.
Loan 1,000,000 Bath
Annuity interest 0.04%
Monthly payment 40,000 Bath
Loan Periods 2.1 Years
Milkery
Page | 81
5.3 Profit and loss statement
Milkery Company
Profit/Loss statement
For the year 1 Ended 31 Dec.
First year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sale 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00
Net sale 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00
Cost of goods sold
Cost of goods sold 67,050.00 72,960.00 66,330.00 65,340.00 57,000.00 60,420.00 63,330.00 75,360.00 85,350.00 71,970.00 88,080.00 91,260.00 864,450.00
Gross profit 528,960.00 483,930.00 436,170.00 404,160.00 374,040.00 443,250.00 450,360.00 618,990.00 668,340.00 605,040.00 764,370.00 792,270.00 6,569,880.00
Expense
Organization expense 10,000.00 10,000.00 10,000.00 10,000.00 10,320.00 12,100.00 14,242.00 11,034.00 16,424.00 13,123.00 11,231.00 12,123.00 140,597.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Marketing expense 19,847.10 21,018.90 18,950.00 19,895.00 21,880.40 25,306.70 23,546.90 30,468.50 27,179.90 34,724.10 37,248.50 40,763.30 320,829.30
Total operating expense 33,395.10 34,566.90 32,498.00 33,443.00 35,748.40 40,954.70 41,336.90 45,050.50 47,151.90 51,395.10 52,027.50 56,434.30 504,002.30
EBIT 495,564.90 449,363.10 403,672.00 370,717.00 338,291.60 402,295.30 409,023.10 573,939.50 621,188.10 553,644.90 712,342.50 735,835.70 6,065,877.70
interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 485,831.57 439,629.77 393,938.67 360,983.67 328,558.27 392,561.97 399,289.77 564,206.17 611,454.77 543,911.57 702,609.17 726,102.37 5,949,077.74
Taxes (15%) 72,874.74 65,944.47 59,090.80 54,147.55 49,283.74 58,884.30 59,893.47 84,630.93 91,718.22 81,586.74 105,391.38 108,915.36 892,361.66
Net income 412,956.83 373,685.30 334,847.87 306,836.12 279,274.53 333,677.67 339,396.30 479,575.24 519,736.55 462,324.83 597,217.79 617,187.01 5,056,716.08
Dividend 505,671.61
Addition retain earning 4,551,044.47
Table 5.1 Profit and loss statement for Year 1
Milkery
Page | 82
Milkery Company
Second year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sale 646,314.00 626,812.00 552,527.00 499,513.00 451,073.00 512,456.00 553,215.00 621,456.00 689,324.00 701,515.00 912,352.00 871,241.00 7,637,798.00
Net sale 646,314.00 626,812.00 552,527.00 499,513.00 451,073.00 512,456.00 553,215.00 621,456.00 689,324.00 701,515.00 912,352.00 871,241.00 7,637,798.00
Cost of goods sold
Gross profit 577,164.00 559,602.00 489,307.00 439,263.00 391,923.00 451,206.00 489,865.00 550,216.00 615,934.00 624,545.00 824,792.00 790,001.00 6,803,818.00
Expense
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
EBIT 537,755.86 520,485.88 451,998.73 403,019.87 353,374.27 409,553.44 441,932.85 504,876.44 563,535.76 575,950.85 765,115.48 737,289.59 6,264,889.02
interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 528,022.53 510,752.55 442,265.40 393,286.54 343,640.94 399,820.11 432,199.52 495,143.11 553,802.43 566,217.52 755,382.15 727,556.26 6,148,089.06
Taxes (15%) 79,203.38 76,612.88 66,339.81 58,992.98 51,546.14 59,973.02 64,829.93 74,271.47 83,070.36 84,932.63 113,307.32 109,133.44 922,213.36
Net income 448,819.15 434,139.67 375,925.59 334,293.56 292,094.80 339,847.09 367,369.59 420,871.64 470,732.07 481,284.89 642,074.83 618,422.82 5,225,875.70
Dividend 522,587.57
Milkery
Page | 83
Milkery Company
Third year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sale 871,247.00 792,114.00 613,515.00 512,415.00 503,636.00 546,449.00 616,738.00 797,532.00 741,738.00 692,626.00 871,511.00 679,261.00 8,238,782.00
Net sale 871,247.00 792,114.00 613,515.00 512,415.00 503,636.00 546,449.00 616,738.00 797,532.00 741,738.00 692,626.00 871,511.00 679,261.00 8,238,782.00
Cost of goods sold
Gross profit 799,197.00 721,154.00 553,185.00 460,075.00 453,126.00 492,282.00 557,597.00 726,117.00 672,477.00 627,465.00 798,001.00 616,121.00 7,476,797.00
Expense
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
EBIT 755,709.53 681,824.86 514,075.85 421,611.85 411,856.64 449,849.51 514,573.62 677,837.68 618,399.62 580,489.74 744,006.89 563,922.39 6,934,158.18
interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 745,976.20 672,091.53 504,342.52 411,878.52 402,123.31 440,116.18 504,840.29 668,104.35 608,666.29 570,756.41 734,273.56 554,189.06 6,817,358.22
Taxes (15%) 111,896.43 100,813.73 75,651.38 61,781.78 60,318.50 66,017.43 75,726.04 100,215.65 91,299.94 85,613.46 110,141.03 83,128.36 1,022,603.73
Net income 634,079.77 571,277.80 428,691.14 350,096.74 341,804.81 374,098.75 429,114.25 567,888.70 517,366.35 485,142.95 624,132.53 471,060.70 5,794,754.49
Dividend 579,475.45
Milkery
Page | 84
Milkery Company
Forth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sale 716,162.00 781,516.00 571,616.00 541,251.00 582,615.00 738,393.00 861,992.00 634,617.00 973,261.00 699,515.00 764,167.00 912,415.00 8,777,520.00
Net sale 716,162.00 781,516.00 571,616.00 541,251.00 582,615.00 738,393.00 861,992.00 634,617.00 973,261.00 699,515.00 764,167.00 912,415.00 8,777,520.00
Cost of goods sold
Gross profit 649,112.00 715,700.00 519,833.00 491,990.00 528,448.00 675,917.00 790,832.00 572,900.00 887,544.00 633,005.00 697,006.00 829,259.00 7,991,546.00
Expense
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
EBIT 606,248.38 672,951.84 475,847.84 450,138.49 484,163.85 630,994.07 741,633.08 532,715.83 831,997.39 589,952.85 653,455.33 778,514.85 7,436,483.80
interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 596,515.05 663,218.51 466,114.51 440,405.16 474,430.52 621,260.74 731,899.75 522,982.50 822,264.06 580,219.52 643,722.00 768,781.52 7,319,683.84
Taxes (15%) 89,477.26 99,482.78 69,917.18 66,060.77 71,164.58 93,189.11 109,784.96 78,447.38 123,339.61 87,032.93 96,558.30 115,317.23 1,097,952.58
Net income 507,037.79 563,735.73 396,197.33 374,344.39 403,265.94 528,071.63 622,114.79 444,535.13 698,924.45 493,186.59 547,163.70 653,464.29 6,221,731.26
Dividend 622,173.13
Milkery
Page | 85
Milkery Company
Fifth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sale 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00
Net sale 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00
Cost of goods sold
Gross profit 1,069,972.00 871,381.00 817,444.00 565,035.00 603,276.00 616,456.00 652,603.00 872,062.00 565,913.00 881,765.00 779,711.00 893,228.00 9,188,846.00
Expense
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
EBIT 1,012,706.38 820,136.09 770,974.00 520,443.95 558,331.25 576,123.83 607,160.20 823,305.10 518,062.05 831,716.84 723,343.01 834,727.90 8,587,830.60
interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Taxable income 1,002,973.05 810,402.76 761,240.67 510,710.62 548,597.92 566,390.50 597,426.87 813,571.77 508,328.72 821,983.51 713,609.68 824,994.57 8,471,030.64
Taxes (15%) 150,445.96 121,560.41 114,186.10 76,606.59 82,289.69 84,958.58 89,614.03 122,035.77 76,249.31 123,297.53 107,041.45 123,749.19 1,270,654.60
Net income 852,527.09 688,842.35 647,054.57 434,104.03 466,308.23 481,431.93 507,812.84 691,536.00 432,079.41 698,685.98 606,568.23 701,245.38 7,200,376.04
Dividend 720,037.60
Milkery
Page | 86
5.4 Statement of Cash Flow
Milkery Company
Statement of Cash flow
For Year 1 Ended of 31 Dec.
Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating activities
Cash received from Customer 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00
Cash paid for Operating expense 67,050.00 72,960.00 66,330.00 65,340.00 57,000.00 60,420.00 63,330.00 75,360.00 85,350.00 71,970.00 88,080.00 91,260.00 864,450.00
Cash paid for Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Cash paid for Taxes 72,874.74 65,944.47 59,090.80 54,147.55 49,283.74 58,884.30 59,893.47 84,630.93 91,718.22 81,586.74 105,391.38 108,915.36 892,361.66
Cash paid for Administration cost 72,020.00 64,655.00 63,822.00 63,675.00 64,104.00 64,395.00 64,642.00 64,660.00 64,550.00 64,546.00 64,477.00 65,340.00 780,886.00
Cash paid for Marketing expense 19,847.10 21,018.90 18,950.00 19,895.00 21,880.40 25,306.70 23,546.90 30,468.50 27,179.90 34,724.10 37,248.50 40,763.30 320,829.30
Cash paid for Overhead cost/Utilities cost 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 45,600.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Cash provide by Operating activities 347,136.83 315,230.30 277,225.87 249,361.12 221,690.53 277,582.67 285,196.30 422,149.24 467,810.55 407,101.83 540,171.79 560,170.01 4,370,827.08
Investing activities
Cash paid for Purchase Equipments 224,218.00 - - - - - - - - - - - 224,218.00
Cash paid for Decoration 15,000.00 - - - - - - - - - - - 15,000.00
Cash provide by Investing activities 239,218.00 - - - - - - - - - - - 239,218.00
Financing activities
Cash from Investment by owners 500,000.00 - - - - - - - - - - - 500,000.00
Cash from Loan 1,000,000.00 - - - - - - - - - - - 1,000,000.00
Cash paid for Dividend 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 505,671.61
Cash provide by Financing 1,457,860.70 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 994,328.39
Increase / Decrease in cash 1,565,779.53 273,091.00 235,086.57 207,221.82 179,551.23 235,443.37 243,057.00 380,009.94 425,671.25 364,962.53 498,032.49 518,030.71 5,125,937.47
Table 5.6 Statement of Cash Flow for Year 1
Milkery
Page | 87
Milkery Company
Cash paid for Taxes 79,203.38 76,612.88 66,339.81 58,992.98 51,546.14 59,973.02 64,829.93 74,271.47 83,070.36 84,932.63 113,307.32 109,133.44 922,213.36
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Cash paid for Purchase Equipments - - - - - - - - - - - - -
Cash paid for Decoration - - - - - - - - - - - - -
Cash paid for Properties - - - - - - - - - - - - -
Cash provide by Investing activities - - - - - - - - - - - - -
Cash from Investment by owners - - - - - - - - - - - - -
Cash from Loan - - - - - - - - - - - - -
Cash provide by Financing 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 522,587.57
Increase / Decrease in cash 342,465.19 333,256.71 277,323.63 233,209.60 190,729.84 239,742.13 268,672.63 324,051.68 372,937.11 383,051.93 547,238.87 515,632.86 4,028,312.13
Milkery
Page | 88
Milkery Company
Cash paid for Taxes 111,896.43 100,813.73 75,651.38 61,781.78 60,318.50 66,017.43 75,726.04 100,215.65 91,299.94 85,613.46 110,141.03 83,128.36 1,022,603.73
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Cash from Loan - - - - - - - - - - - - -
Milkery
Page | 89
Milkery Company
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Cash from Loan - - - - - - - - - - - - -
Milkery
Page | 90
Milkery Company
Cash received from Customer 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Cash from Loan - - - - - - - - - - - - -
Milkery
Page | 91
5.5 Balance Sheet
Milkery Company
Balance Sheet
For the Year 1 Ended 31 Dec.
Current Asset
Cash 1,572,679.53 273,091.00 235,086.57 207,221.82 179,551.23 235,443.37 243,057.00 380,009.94 425,671.25 364,962.53 498,032.49 518,030.71 5,132,837.47
Fixed asset
Equipment & Tool 146,260 - - - - - - - - - - - 146,260
Furniture 49,980 - - - - - - - - - - - 49,980
Table & Chair 28,000.00 - - - - - - - - - - - 28,000.00
Decoration 15,000.00 - - - - - - - - - - - 15,000.00
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Total asset 1,815,467.53 276,639.00 238,634.57 210,769.82 183,099.23 238,991.37 246,605.00 383,557.94 429,219.25 368,510.53 501,580.49 521,578.71 5,414,653.47
Liability
Loan 1,000,000.00 - - - - - - - - - - - 1,000,000.00
Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Tax 72,874.74 65,944.47 59,090.80 54,147.55 49,283.74 58,884.30 59,893.47 84,630.93 91,718.22 81,586.74 105,391.38 108,915.36 892,361.66
Accounts Payable 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 200,004.00
Total liability 1,099,275.07 92,344.80 85,491.13 80,547.88 75,684.07 85,284.63 86,293.80 111,031.26 118,118.55 107,987.07 131,791.71 135,315.69 2,209,165.62
Equity
Owner capital 500,000.00 - - - - - - - - - - - 500,000.00
Total equity and liability 1,599,275.07 92,344.80 85,491.13 80,547.88 75,684.07 85,284.63 86,293.80 111,031.26 118,118.55 107,987.07 131,791.71 135,315.69 2,709,165.62
External financing needed 216,192.47 184,294.21 153,143.44 130,221.94 107,415.16 153,706.75 160,311.21 272,526.69 311,100.71 260,523.47 369,788.79 386,263.03 2,705,487.85
Table 5.11 Balance Sheet of Year 1
Milkery
Page | 92
Milkery Company
Balance Sheet
Current Asset
Cash 349,365.19 333,256.71 277,323.63 233,209.60 190,729.84 239,742.13 268,672.63 324,051.68 372,937.11 383,051.93 547,238.87 515,632.86 4,035,212.13
Fixed asset
Equipment & Tool - - - - - - - - - - - - -
Furniture - - - - - - - - - - - - -
Table & Chair - - - - - - - - - - - - -
Decoration - - - - - - - - - - - - -
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Total asset 352,913.19 336,804.71 280,871.63 236,757.60 194,277.84 243,290.13 272,220.63 327,599.68 376,485.11 386,599.93 550,786.87 519,180.86 4,077,788.13
Liability
Loan - - - - - - - - - - - - -
Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Tax 79,203.38 76,612.88 66,339.81 58,992.98 51,546.14 59,973.02 64,829.93 74,271.47 83,070.36 84,932.63 113,307.32 109,133.44 922,213.36
Total liability 105,603.71 103,013.21 92,740.14 85,393.31 77,946.47 86,373.35 91,230.26 100,671.80 109,470.69 111,332.96 139,707.65 135,533.77 1,239,017.32
Equity
Owner capital - - - - - - - - - - - - -
Total equity and liability 105,603.71 103,013.21 92,740.14 85,393.31 77,946.47 86,373.35 91,230.26 100,671.80 109,470.69 111,332.96 139,707.65 135,533.77 1,239,017.32
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Milkery Company
Balance Sheet
Current Asset
Cash 531,122.15 467,382.18 325,935.52 245,639.12 236,286.19 269,523.13 325,208.63 465,055.08 418,687.73 384,563.33 522,391.91 364,469.08 4,556,264.04
Fixed asset
Equipment & Tool - - - - - - - - - - - - -
Furniture - - - - - - - - - - - - -
Table & Chair - - - - - - - - - - - - -
Decoration - - - - - - - - - - - - -
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Total asset 534,670.15 470,930.18 329,483.52 249,187.12 239,834.19 273,071.13 328,756.63 468,603.08 422,235.73 388,111.33 525,939.91 368,017.08 4,598,840.04
Liability
Loan - - - - - - - - - - - - -
Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Tax 111,896.43 100,813.73 75,651.38 61,781.78 60,318.50 66,017.43 75,726.04 100,215.65 91,299.94 85,613.46 110,141.03 83,128.36 1,022,603.73
Total liability 138,296.76 127,214.06 102,051.71 88,182.11 86,718.83 92,417.76 102,126.37 126,615.98 117,700.27 112,013.79 136,541.36 109,528.69 1,339,407.69
Equity
Owner capital - - - - - - - - - - - - -
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Milkery Company
Balance Sheet
Current Asset
Cash 398,024.03 455,044.97 289,243.57 268,045.63 294,258.18 422,174.87 516,937.03 334,124.37 596,536.69 383,281.83 438,841.94 547,223.53 4,934,396.13
Fixed asset
Equipment & Tool - - - - - - - - - - - - -
Furniture - - - - - - - - - - - - -
Table & Chair - - - - - - - - - - - - -
Decoration - - - - - - - - - - - - -
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Total asset 401,572.03 458,592.97 292,791.57 271,593.63 297,806.18 425,722.87 520,485.03 337,672.37 600,084.69 386,829.83 442,389.94 550,771.53 4,976,972.13
Liability
Loan - - - - - - - - - - - - -
Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Tax 89,477.26 99,482.78 69,917.18 66,060.77 71,164.58 93,189.11 109,784.96 78,447.38 123,339.61 87,032.93 96,558.30 115,317.23 1,097,952.58
Total liability 115,877.59 125,883.11 96,317.51 92,461.10 97,564.91 119,589.44 136,185.29 104,847.71 149,739.94 113,433.26 122,958.63 141,717.56 1,414,756.54
Equity
Owner capital - - - - - - - - - - - - -
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Milkery Company
Balance Sheet
Current Asset
Cash 740,229.96 576,156.22 533,395.44 318,141.90 349,046.10 363,835.80 391,259.71 577,889.87 317,029.28 587,223.85 491,932.10 591,800.25 5,830,120.44
Fixed asset
Equipment & Tool - - - - - - - - - - - - -
Furniture - - - - - - - - - - - - -
Table & Chair - - - - - - - - - - - - -
Decoration - - - - - - - - - - - - -
Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00
Total asset 743,777.96 579,704.22 536,943.44 321,689.90 352,594.10 367,383.80 394,807.71 581,437.87 320,577.28 590,771.85 495,480.10 595,348.25 5,872,696.44
Liability
Loan - - - - - - - - - - - - -
Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96
Tax 150,445.96 121,560.41 114,186.10 76,606.59 82,289.69 84,958.58 89,614.03 122,035.77 76,249.31 123,297.53 107,041.45 123,749.19 1,270,654.60
Total liability 176,846.29 147,960.74 140,586.43 103,006.92 108,690.02 111,358.91 116,014.36 148,436.10 102,649.64 149,697.86 133,441.78 150,149.52 1,587,458.56
Equity
Owner capital - - - - - - - - - - - - -
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5.6 Pay Back Period
Figure 5. 1 Pay Back Period
The Payback Period ~ 0.1 year
Our company can get cash outflow equal 5,125,937.47 Baht in year 1, so length of
time require for investment return is 0.09~0.1 years.
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5.7 NPV and IRR
Calculate Net Present Value (NPV) and Internal Rate of Return (IRR) for 5 year
Year Cash Flows

0 -478,637.50
1 4,747,253.45
2 3,699,324.10
3 4,221,271.01
4 4,598,416.11
5 5,495,741.41
NPV 19,706,801.11
IRR 9.72
Discount Rate 4.00%
Table 5. 16NPV and IRR
Milkery
Chapter 6 Risk Analysis
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Chapter 6 Risk Analysis
6.1 Risk management analysis
Because of Milkery is located in front of Mae Fah Luang University and close to
Fah Thai market, so our shop has both direct and indirect competitors like a following
analysis.
6.1.1 Competitor risk
After we explored the food and beverage market at front of Mae Fah Luang
University area by survey method, we found that there are few competitors and only
two shops that popular.
6.1.2 External risk
Every business has all external risks, these external risks are the risk that we
can’t control or dealing with it. It consists of following risks:
Social risk
Many years ago, when compared the consumption of milk with populations.
Thailand's consumption of milk is statistically very low, that is only 2 liters per person
per year. But nowadays, government realizes the importance of milk. It has been
campaigning to have the habits and in an attempt to milk. Also looking for the ways to
increase productivity and reduce costs in the production process of raw milk,
processing and distribution for a fair and reasonable price.
Technology risk
In the production industry whether on any product, the technology are very
important factors because the technology will allow us to reduce the power, cost, and
time of production. And production output is also effective and effectiveness. In
addition, technology also gives us an advantage over competitors.
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Economic risk
The situation of Chiang Rai economic about the expenditure on the growth rate
slowed down. Especially in consumption and people spending carefully cause of a result
of oil price - the basic tariff increased.
Political risk
According to Suan Dusit Poll told that the expectations of the people to "Thai
Politics" in 2553 No. 1 about 47.37% is the same because there are still conflicts and
chronic continuous, etc. No. 2 about 27.60% is better situation because the political
situation began unwinding stress, if the politicians turn to harmonize together. No. 3
about 25.03% is worse because there are still several issues that may lead to political
conflict, if politicians do not stop the behaviors that cause conflict, etc. These may affect
to all parties including food and beverage market too (Political Situation, 2010).
6.1.3 Internal risk

Risks of its milk and bakery must face often is the risk factors within the
industry. This may be important for several reasons including. Operating risk is risk that
can be visible and obstruction control infrastructure because of these risks under the
industry's operations. The Company's operations may face the risk of these
characteristics:
 Risk of Product and Service

Milkery has on product because of dairy milk product and service are available in
the market However, customers still need more than just box milk product, so we
reduce the risk via provide full service, good environment and quality product and
service.
 Risk of Pricing
Milkery has of setting price because if we set the price to high, customers do not
have enough power of purchasing. Customers will compare with other shops that occur
in the market. If we set at lower price, it will represent that low quality of product and
service. Hence, we set the price similar to competitor, which we also concern of cost of
raw material and expense in the shop.
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 Risk to entry the market

The risk to enter the market of Milkery is five force model’ for example, rivalry of
competitor, bargaining power of customer, bargaining power of supplier, substitute
product and new entry of competitor. For this reason, we will reduce risk via market
study, competitor analyze and condition of competition.
 Risk of Human Resources

Risks arising from aware of the ability to works and characters of each employee,
so this may cause problems. Because the company can be selected as a feature only such
as employee have knowledge about coffee, milk shake and bakery, so it effect to the
company do not must spend time and money in training employees again . The
important for company is, can not realize the routine of employees. It brings to
dishonest, lazy and not on time, then it cause losses to the company. Company needs
employees that are important variable in the production, packaging, and service. When
the employees have good integrity and diligence can help company better. If employees
are lazy and dishonest, it makes the manufacturing, operations, and service by lack of
effective. In addition to affecting the company's revenue and also affect the company's
image.
 Risk of Performance of the machines
Because the company uses few machines, so it has less chance to damage. The
possibility to damage from processes of machines is most in errors in the work of the
blender, oven baked bread and toaster. If it error. It is a key factor in production and
effect to can not produce product.
 Risk of Efficiency
Opportunities that are most likely to affect performance are caused by
contaminated in raw materials. Its main raw material used to produce milk and bakery.
Companies are realizing the importance of health consumers. Therefore company focus
on the most efficient of milk and bakery. The company use fresh milk and fresh bakery,
clean contains to provide clean milk and bakery and safe for consumers.
 Risk of Health and Safety

Companies are realizing the importance of health all employees. If employees are
healthy then they can work hard. The company is a manufacturer of milk and bakery
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every day. 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.
 Risk of Integrity Risk

Integrity and honesty of our employees are the most important risks are very
effective in operational management. If the employees are not honest with
responsibility, trust between employers and their employees will be decrease. And it
can make business come down because, the member in industries are not unity. So,
manager must be use the system family as a policy to manage their employees while the
manager is the leader of family who identify the responsibility of each person, take care,
suggest and give consultant to all of employees. It can make employees happy with their
job.
 Risk of Empowerment Risk

Manager assign works to someone to be leadership that makes them have the
power in company. It may have the problem with other employee. Sometime if the
customer order menu but raw materials don't have enough. The leadership that we give
power may deny customer. It makes company blunder customer. To solve this case, the
manager sold call with leader for advantage in the company.
 Risk of Authority / Limit

The Administrative who have been entrusted to use power instead, it Show
potential trust and credibility in this person because the executive is difficult to rely on
administrative money and power. Risk from the actions of this person can cause
damage to the company. We can’t control at all times and may cause to loss of business.
Therefore, the executive should check marketing plan by himself to determine the
appropriate of financial amount in marketing plan. If not properly be defined financial
amount to match marketing plan and the administrative should record all marketing
plan to the executive.
 Risk of Communications
The communication between manager and employee may have error because
the employee comes from local in Chiang Rai. They will speak local language such as
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when employee order product from other place may be confused. The problem between
of local language and Thai language has very important. Therefore, the company should
receive employee that have education unless secondary school for the efficiency in
communications.
 Other risk
The risk that occur when we do not predict it; such as, conflagration, inundation,
earthquake, burglary, and business halt. If this situation occurs, who will be response to
situations? So we design to do an Insurance against loss, this will be guarantee the
unpredicted damage.
6.2 Financial Risk
6.2.1 Risk of sale decrease 5%, 10%, and 15% for 5 Years
Milkery Company
Year 1 Year 2 Year 3 Year4 Year 5
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,238,782.00 10,013,340.00
Sale Decrease 5% 0.05 0.05 0.05 0.05 0.05
Sale Decrease 371,716.50 381,889.90 411,939.10 411,939.10 500,667.00
Net sale 7,062,613.50 7,255,908.10 7,826,842.90 7,826,842.90 9,512,673.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 761,985.00 824,494.00
Gross profit 6,198,163.50 6,421,928.10 7,064,857.90 7,064,857.90 8,688,179.00
Expense
Organization 140,597.00 140,597.00 140,597.00 140,597.00 140,597.00
expense
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Marketing expense 320,829.30 343,413.98 337,167.82 337,167.82 386,133.40
Total operating 504,002.30 526,586.98 520,340.82 520,340.82 569,306.40
expense
EBIT 5,694,161.20 5,895,341.12 6,544,517.08 6,544,517.08 8,118,872.60
interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Taxable income 5,577,361.24 5,778,541.16 6,427,717.12 6,427,717.12 8,002,072.64
Taxes (15%) 836,604.19 866,781.17 964,157.57 964,157.57 1,200,310.90
Net income 4,740,757.05 4,911,759.99 5,463,559.55 5,463,559.55 6,801,761.74
Dividend 474,075.71 491176.00 546355.96 546,355.96 680176.1744
Addition retain earning 4,266,681.35 4,420,583.99 4,917,203.60 4,917,203.60 6,121,585.57
Table 6.1 Summary of risk of sale decrease 5% for 5 years
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Milkery Company
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Sale Decrease 5% 0.10 0.10 0.10 0.10 0.10
Sale Decrease 743,433.00 763,779.80 823,878.20 877,752.00 1,001,334.00
Net sale 6,690,897.00 6,874,018.20 7,414,903.80 7,899,768.00 9,012,006.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00
Gross profit 5,826,447.00 6,040,038.20 6,652,918.80 7,113,794.00 8,187,512.00
Expense
Organization 140,597.00 140,597.00 140,597.00 140,597.00 140,597.00
expense
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Total operating 504,002.30 526,586.98 520,340.82 539,898.20 569,306.40
expense
EBIT 5,322,444.70 5,513,451.22 6,132,577.98 6,573,895.80 7,618,205.60
interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Taxable income 5,205,644.74 5,396,651.26 6,015,778.02 6,457,095.84 7,501,405.64
Taxes (15%) 780,846.71 809,497.69 902,366.70 968,564.38 1,125,210.85
Net income 4,424,798.03 4,587,153.57 5,113,411.32 5,488,531.46 6,376,194.79
Dividend 442,479.80 458715.36 511341.13 548,853.15 637619.4794
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Page | 105
Milkery Company
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Sale Decrease 5% 0.15 0.15 0.15 0.15 0.15
Sale Decrease 1,115,149.50 1,145,669.70 1,235,817.30 1,316,628.00 1,502,001.00
Net sale 6,319,180.50 6,492,128.30 7,002,964.70 7,460,892.00 8,511,339.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00
Gross profit 5,454,730.50 5,658,148.30 6,240,979.70 6,674,918.00 7,686,845.00
Expense
Organization 140,597.00 140,597.00 140,597.00 140,597.00 140,597.00
expense
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Total operating 504,002.30 526,586.98 520,340.82 539,898.20 569,306.40
expense
EBIT 4,950,728.20 5,131,561.32 5,720,638.88 6,135,019.80 7,117,538.60
interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Taxable income 4,833,928.24 5,014,761.36 5,603,838.92 6,018,219.84 7,000,738.64
Taxes (15%) 725,089.24 752,214.20 840,575.84 902,732.98 1,050,110.80
Net income 4,108,839.00 4,262,547.16 4,763,263.08 5,115,486.86 5,950,627.84
Dividend 410,883.90 426254.72 476326.31 511,548.69 595062.7844
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6.2.2 Risk of cost increase 5%, 10%, and 15% for 5 Years
Milkery Company
Revenue
Sale 7434330.00 7637798.00 8238782.00 8777520.00 10013340.00
Net sale 7434330.00 7637798.00 8238782.00 8777520.00 10013340.00
Cost of good sold
Cost of good sold 864450.00 833980.00 761985.00 785974.00 824494.00
Cost Increase 5% 0.05 0.05 0.05 0.05 0.05
Cost of good sold 5% 907672.50 875679.00 800084.25 825272.70 865718.70
Gross profit 6526657.50 6762119.00 7438697.75 7952247.30 9147621.30
Expense
Organization expense 140597.00 140597.00 140597.00 140597.00 140597.00
Depreciation 42576.00 42576.00 42576.00 42576.00 42576.00
Marketing expense 320829.30 343413.98 337167.82 356725.20 386133.40
Total operating 504002.30 526586.98 520340.82 539898.20 569306.40
expense
EBIT 6022655.20 6235532.02 6918356.93 7412349.10 8578314.90
interest paid 116799.96 116799.96 116799.96 116799.96 116799.96
Taxable income 5905855.24 6118732.06 6801556.97 7295549.14 8461514.94
Taxes (15%) 885878.29 917809.81 1020233.55 1094332.37 1269227.24
Net income 5019976.95 5200922.25 5781323.42 6201216.77 7192287.70
Dividend 501997.70 520092.23 578132.34 620121.68 719228.77
Addition retain earning 4517979.26 4680830.03 5203191.08 5581095.09 6473058.93
Table 6.4 Summary of risk of cost increase 5% for 5 years
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Page | 107
Milkery Company
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00
Cost Increase 5% 0.10 0.10 0.10 0.10 0.10
Cost of good sold 5% 950,895.00 917,378.00 838,183.50 864,571.40 906,943.40
Gross profit 6,483,435.00 6,720,420.00 7,400,598.50 7,912,948.60 9,106,396.60
Expense
Organization expense 140,597.00 140,597.00 140,597.00 140,597.00 140,597.00
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Total operating 504,002.30 526,586.98 520,340.82 539,898.20 569,306.40
expense
EBIT 5,979,432.70 6,193,833.02 6,880,257.68 7,373,050.40 8,537,090.20
interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Taxable income 5,862,632.74 6,077,033.06 6,763,457.72 7,256,250.44 8,420,290.24
Taxes (15%) 879,394.91 911,554.96 1,014,518.66 1,088,437.57 1,263,043.54
Net income 4,983,237.83 5,165,478.10 5,748,939.06 6,167,812.87 7,157,246.70
Dividend 498323.78 516547.81 574893.91 616781.29 715724.67
Milkery
P a g e | 108
Milkery Company
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00
Cost Increase 5% 0.15 0.15 0.15 0.15 0.15
Cost of good sold 5% 994,117.50 959,077.00 876,282.75 903,870.10 948,168.10
Gross profit 6,440,212.50 6,678,721.00 7,362,499.25 7,873,649.90 9,065,171.90
Expense
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Total operating 504,002.30 526,586.98 520,340.82 539,898.20 569,306.40
expense
EBIT 5,936,210.20 6,152,134.02 6,842,158.43 7,333,751.70 8,495,865.50
interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Taxable income 5,819,410.24 6,035,334.06 6,725,358.47 7,216,951.74 8,379,065.54
Taxes (15%) 872,911.54 905,300.11 1,008,803.77 1,082,542.76 1,256,859.83
Net income 4,946,498.70 5,130,033.95 5,716,554.70 6,134,408.98 7,122,205.71
Dividend 494649.87 513003.40 571655.47 613440.90 712220.57
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P a g e | 109
6.2.3 Risk of interest increase 5%, 10%, and 15% for 5 Years
Milkery Company
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00
Gross profit 6,569,880.00 6,803,818.00 7,476,797.00 7,991,546.00 9,188,846.00
Expense
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Total operating 504,002.30 526,586.98 520,340.82 539,898.20 569,306.40
expense
EBIT 6,065,877.70 6,277,231.02 6,956,456.18 7,451,647.80 8,619,539.60
Interest 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Interest increase 5% 0.05 0.05 0.05 0.05 0.05
Interest paid 122,639.96 122,639.96 122,639.96 122,639.96 122,639.96
Taxable income 5,943,237.74 6,154,591.06 6,833,816.22 7,329,007.84 8,496,899.64
Taxes (15%) 891,485.66 923,188.66 1,025,072.43 1,099,351.18 1,274,534.95
Net income 5,051,752.08 5,231,402.40 5,808,743.79 6,229,656.67 7,222,364.70
Dividend 505,175.21 523,140.24 580,874.38 622,965.67 722,236.47
Table 6.7 Summary of risk of interest increase 5% for 5 years
Milkery
P a g e | 110
Milkery Company
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00
Gross profit 6,569,880.00 6,803,818.00 7,476,797.00 7,991,546.00 9,188,846.00
Expense
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Total operating 504,002.30 526,586.98 520,340.82 539,898.20 569,306.40
expense
EBIT 6,065,877.70 6,277,231.02 6,956,456.18 7,451,647.80 8,619,539.60
Interest 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Interest paid 128,479.96 128,479.96 128,479.96 128,479.96 128,479.96
Taxable income 5,937,397.74 6,148,751.06 6,827,976.22 7,323,167.84 8,491,059.64
Taxes (15%) 890,609.66 922,312.66 1,024,196.43 1,098,475.18 1,273,658.95
Net income 5,046,788.08 5,226,438.40 5,803,779.79 6,224,692.67 7,217,400.70
Dividend 504,678.81 522,643.84 580,377.98 622,469.27 721,740.07
Milkery
P a g e | 111
Milkery Company
Revenue
Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00
Cost of good sold
Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00
Gross profit 6,569,880.00 6,803,818.00 7,476,797.00 7,991,546.00 9,188,846.00
Expense
Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00
Total operating 504,002.30 526,586.98 520,340.82 539,898.20 569,306.40
expense
EBIT 6,065,877.70 6,277,231.02 6,956,456.18 7,451,647.80 8,619,539.60
Interest 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96
Interest paid 134,319.95 134,319.95 134,319.95 134,319.95 134,319.95
Taxable income 5,931,557.75 6,142,911.07 6,822,136.23 7,317,327.85 8,485,219.65
Taxes (15%) 889,733.66 921,436.66 1,023,320.43 1,097,599.18 1,272,782.95
Net income 5,041,824.08 5,221,474.41 5,798,815.79 6,219,728.67 7,212,436.70
Dividend 504,182.41 522,147.44 579,881.58 621,972.87 721,243.67
Milkery
Chapter 7 Summary
Milkery
Page | 113
Chapter 7 Summary
As we are determined the possibility of possible business performs, so we are

going to know the feasibility of business so far. Milkery is the meeting and relaxing
restaurant of every age from teenage to older because time of relax is time of drink such
sleeping time. We provide the dairy product, beverage, and bakery. We try to produce
our products by use the best ingredients and good for health that appropriate with the
customers that concern about healthy. We have many menus to choose and price not
expensive. The main menus are milk shake, hot/iced milk, hot/iced coffee, cake and
bakery. Our shop has many zones provide for customers to choose as you like it.
Customers can feel like they eating at home because our services are familiarly and give
the best for them because we think we like a customer to know what customers want.
Our main target group is students because we provide the place that they can meet and
relax together. And other target group is working group such as lecturer they can come
to relax at free time.
When we set up Milkery, we must thinking and planning about objective and
benefit objective. For the objective we study about trend of food and beverage business,
possibility of food and beverage business in the future, analyze the marketing and
financial risk feasibility in food and beverage business and analyze the SWOT and
competitors of our business. And benefit objective to know the benefit and trends of
food and beverage business, the SWOT and competitors of our business, plan and
structure when doing business in real situation, methods for making high in sale food
and beverage, able to apply the plan for getting high profit/return on investment and
manage the business to success. And the plan is most feasible and high success in real
business that able to guide in the future.
In set up business, we must tell about company, product and process of product
so in about Milkery. In about history of bakery, Bakery culture of Western culture since
prehistoric ago. Massage into flour after that place on hot stones near the oven until
cooked starch and get Starch plate frame. Assumed it is the bread in the present.
Subsequently discovered yeast by forgot flour to several hours. Baking began as a
common sequence Initiative by the ancient Greeks to the off larger oven for people took
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to bake bread. It is not surprising that the frontiers between Cake and bread, biscuit and
bun are indistinct. The progenitor of all is bread in its simplest form. The continental
European gateau and torte often contain higher proportions of butter, eggs and
enriching ingredients such as chocolate, and often lean towards pastry rather than cake.
The western tradition of cakes applies little in Asia. In some countries western-style
cakes have been adopted on a small scale, for example the small sponge cakes called
kasutera in Japan.
The history of cakes goes a long way back. Ancient Egypt was the first culture to
show evidence of true skill in baking, making many kinds of bread including some
sweetened with hone. Chaucer mentions immense cakes made for special occasions.
Moulds, in the form of cake hoops or pans have been used for forming cakes
since at least the mid-17th century. Most cakes were eaten accompanied by a glass of
sweet wine or tea. At large banquets, elaborately decorated cakes might form part of the
display, but would probably not be eaten. During the 19th century, technology made the
cake-baker's life much easier. In most of NW Europe and North America a well-
developed tradition of home baking survives, with a huge repertoire of cake recipes
developed from the basic methods. The ability to bake a good cake was a prized skill
among housewives in the early to mid-20th century, when many households could
produce a simple robust, filling 'cut and come again' cake, implying abundance and
hospitality.
Beyond from detail of bakery, in about business we must know situation

analysis, detail competitive in near around our business. Situation of industry is in the
period’s time around 10-15 years ago. Bakery and cake become popular in Thailand,
Thai people want to eat and fun with it. So there are many milk and bakery shop that
affecting to our company so Our Company want to give good quality and not expensive
for all of people can go to enjoy and happy with us. We will provide a new kind of food
and beverage by different equipment and adapt technology into our service for
customer get benefits and satisfy when come to join with us more than others. And we
have many promotions to attraction customer and behavior of them.
We will set vision and mission. Vision of our organization is within 5 years is the
shop milk and bakery is famous and receive accept quality and service be number one of
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the shop Milkery. And we created Milkery for attract our customers to meet the best of
service, atmosphere, cleanliness, and quality of products. The key thing, we wish the
customers have smile and to be happy when come to our café or buy our products.
And about mission we are the manufacturer of milk and bakery to provide
professional services with fresh milk and bakery quality in reasonable price and taking
into account the health of consumers are important. And we provide good service,
atmosphere, cleanliness and consistent with the needs of consumers. Moreover control
manufacturer of milk and bakery and provide good quality with modern machinery and
fresh raw materials. Maintain cleanliness in production lines and facilities.
In market analysis we must know about general environment analysis. The

general environmental analysis in our business planning normally refers to conditions
and internal - external factors to our company, outside of our company's control that
might affect its sales, market, costs, and so forth. Political factors According to the
conflict between red shirt and yellow shirt, it has effect to business and investment side.
From that conflict, most people would feel disgusted and don’t want to do anything. So,
the government has a policy to reduce the loan rate and personal income tax rate to
help small and medium enterprise to be continuing. And also we should change the
crisis as an opportunity by creating promotions for attractive the customers come to
our shop. Economic factors are the growth rate seen by the business such as hotel,
restaurant, entertainment, and etc. Social factor is Milkery wants to makes the first
impression about new style of milk and makes customer satisfaction. And technology
factors is Milkery has the technology to use in our shop such as the inside area of our
shop provide the wireless for the customer who come to shop, almost appliances in our
shop is the electricity because we want to fast deliver and serve the products to
customers and make them feel happy with our services. So, our shop has more
competitive advantages than other competitors. Competition analysis [3c analysis] such
as competitor analysis, we define the competitors who provide service as same as us.
For local coffee shop or weak group that we think they will become a high performance
competition will be.
Our competitors are Milkery that set up around Mae Fah Luang University can
divides two types. The first direct competitor has 3 competitors including with; Nom Na
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Page | 116
Mor, Nom Chompoo and Kin Nom Kan, Second indirect competitor has 3 competitors
including with; Boss coffee, Banoffee and D-Jang Bakery
In about STP analysis, like we said about the Strategy that I targeted on student
both of high school and university, so most of customer would be people who free and
have a full time to relax or small meeting even date. The segmentation we that provide
product of fresh milk and bread which is the product for consumer and benefits for
health and body. Marketing mix strategy we focus on 4P.
Product: Our company concern about healthy business because our company aware of
business opportunities in terms of health.
Price: “Milkery” set the same price for general products because we are new shop in
this business. And including to set up price to promote in some period of time for
stimulate our net sales such as, in the Birthday, Valentine day or other important day.
Place: “Milkery Shop” is the milk and bakery shop and this product is appropriate for
people e who loves healthy and the group of people who loves drink milk.
Promotion: “Milkery Shop” is locate near the university so we try to represents the
various aspect of marketing communication that is the communication of information
about the product of Milkery shop with the goal of generating a positive customer
response.
Our company has high of net income but spent money to investment and
advertising to low. In addition our company has increase net income in every year. So it
makes the owner and investor can gain more money and get more benefit from our
company.
Technical Feasibility Study about location. Milkery is located at front and
opposite to Mae Fah Luang University in a single building with 2 floors. The area of
building is about 10*12 meters or 400 squares. Our shop is near the location of many
dormitories of student of Mae Fah Luang University, Fah Thai market, and etc. Milkery
also provided many car parks and table for customers because we can’t forecast about
the amount of customer who come to our shop in a day. In addition our shop is modern
designed and decorate with colorful to attract the customers and new customer come to
our shop.
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Layout our company has two floor for server both product and service.
First Floor
Second Floor
About cost of investment
Cost of investment
Location 300,000
Label Cost 21,200
Logo 3,000
Internet (wireless) & Telephone 2,000
Total 176,200
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Price per
Equipment & Material No. units Total
unit
Part 1: Equipment
- Coffee Machine 50,000 1 50,000
- Coffee Grinder 25,000 1 25,000
- Blender 8,300 2 16,600
- Cake Display 40,000 1 40,000
- Refrigerator 9,500 1 9,500
- Glass jar 235 3 705
- Coffee long spoon 40 1 40
- Dish 15 40 600
- Fork 5 40 200
- Oven 15,500 2 31,000
- Microwave 4,990 1 4,990
- Toaster 2,290 1 2,290
- Sandwich maker 1,780 2 3,560
- Cash machine 4,590 1 4,590
- Other - - -
Total 189,485
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- Table 833 18 15,000
- Chair 136 44 6,000
- Book shelf & Toy shelf 1,750 4 7,000
Total 28,000
Part 3: Furniture
- TV 20,000 1 20,000
- Lighting - - 5,000
- Stereo 15,000 1 15,000
- Counter 15,000 1 15,000
Total 55,000
Part 4: Decorate Restaurant
- Painting & Wallpaper - - 15,000
Total 15,000
Total Investment cost 287,485
About of management analysis Milkery is the company which registers to be a

justice person likes company limited. Limited company is cooperation with
shareholders who enjoys limited liability. Follow the new law tells that Company
limited will be arise as there are partnership and shareholder from 5 people and
organization management is basically a “to do” list for an organization. It lists out the
plan of work, programs, and organizational growth over a period of time - six months, a
year. The tasks involved, who is responsible for them, and when they’ll be done.
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For financial analysis, the possibility financial estimation, it let us know about the
expense or investment of this business. For example it has office equipment
expenditure, production equipment expenditure, marketing expenses which are facility,
raw material, and salary. These expenses can divide into 2 types; fixed cost and variable
cost. When we analyze the financial of business we can know that our business have
increase or decrease of income in each months. Such decrease or increase of income
depends on seasonal of product. Our sale profit increase rapidly since year 1 to year 5
but we will not to drop develop the existing product and produce a new one to attract
our customer. So although sale will increase but we still to use for increase of cost. Our
business can’t payback from investment to do business into1 year adding interest rate
will have high rate for 10% that we must pay back into 3 years. We can pay back the
loan before schedule to appointment for pay a debt to bank.
Finally, we must know and understandings about risk in management of

business. There are 2 main risks which we will concern; risk management analysis and
financial risk. For Risk management analysis we talk about competitors risk that we
have a lot of competitors but they are not the strong competitors. About external risk—
we talk about PEST analysis (Political, Economic, Social, and Technology)—each factor
affect our business but not much because we already set some barrier for any
competition. Another is internal risk contain of price and how to enter to market
because we are the newest milk and bakery that aim to compete with favorite milk and
bakery in Chiang Rai. It is quite difficult to build the name to be famous and also about
the price.
For Financial risk analysis, it almost about interest rate because about sales we
can control but the interest is still stable until we can pay all of money that we have
loan.
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Reference
Manotungvorapun N. (n.d.). Business Stratege. Retrieved November 15, 2010, from

http://tulip.bu.ac.th/~nisit.m/business%20strategies
(2010). Retrieved December 5, 2010, from Horapa.com:

http://www.horapa.com/content.php?Category=Healthy&No=247/
Bakery House. (n.d.). History of Bakery. Retrieved November 10, 2010, from
http://bakeryhouse.net78.net/home.html
Commercial Department. (2007). the GPP of Chiang Rai Province. Retrieved November
21, 2010, from http://www.chiangrai.net/~crmoac/LinkData/13_1_1.doc
Hilunch Team. (n.d.). Beverage Recipe. Retrieved November 10, 2010, from
HiLunch.com: http://www.hilunch.com/
Kanyarat. (2008). Benefits of milk. Retrieved December 1, 2010, from

http://www.thaihealth.or.th/node/5265
Mae Fah Luang University. (2009). Report of Total Students. Retrieved November 28,
2010, from http://reg.mfu.ac.th/registrar/statistics/main_m.htm
Maeyingzine. (2008). Coffe seeds. Retrieved December 5, 2010, from http://coffee-

blood.blogspot.com/2008/04/blog-post.html
Ministry of Finance. (2010). Taxes. Retrieved November 20, 2010, from

http://www.mof.go.th
PakBakery. (2006). Retrieved November 11, 2010, from PakBakery.com:

http://www.pakbakery.com/
Political Situation. (2010). Retrieved January 15, 2011, from

htto://guru.sanook.com/encyclopedia/, http://dusitnews.com/index.php/ home/51-
dusitpoll/107--q-q-2553-
Products and Supply Service Co., Ltd. (2010). Equipments and machines. Retrieved
January 1, 2011, from http://www.productsdd.com/product?lang=th
Tim. (2007). Environment Analysis. Retrieved November 16, 2010, from

http://bplans.typepad.com/blog/2007/12/qa-environmenta.html
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Appendix
Receipts of milk, bakery, and snack
Milk shake products
 Milk and milk shake

 Yogurt Milk Shake
Ingredients
- 1 1/2 cups milk

- 1 cup non-fat yogurt
- 1/4 cup honey
- 1 teaspoon vanilla extract
- 1/2 teaspoon ground cinnamon
- 1/8 teaspoon ground nutmeg
- 1/4 cup ice cubes
How to make?
1. Combine milk, yogurt, honey, vanilla, cinnamon and nutmeg in a blender.

2. Process until thick and creamy, about 2 minutes. Add ice and blend until smooth.
Serve immediately.
 Chocolate Milk Shake
Ingredients
- 1 cup (about 2 scoops) vanilla frozen yogurt

- 1 packet Rich Milk Chocolate NESTLÉ® CARNATION® INSTANT BREAKFAST
Nutritional Energy Drink
- 1/2 cup milk
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How to make?
1. Place frozen yogurt, Carnation Instant Breakfast and milk in blender; cover.
Blend until smooth.
 Strawberry Milk Shake
Ingredients
- 2 cups vanilla ice cream

- 1 cup milk
- 1/2 cup frozen strawberries
How to make?
Blend until smooth.
 Chocolate Chip Cookie Milkshake
Ingredients
- 1 pint (2 cups) vanilla ice cream

- 2 cups (about 8) freshly baked and crumbled NESTLÉ® TOLL HOUSE®
Refrigerated Chocolate Chip Cookies
- 1 cup milk or 2/3 cup NESTLÉ® CARNATION® Evaporated Milk, chilled
How to make?
Blend until smooth.
 Honey Milk Shake
Ingredients
- 2 cups vanilla ice cream

- 1 cup milk
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- 1/2 cup honey
How to make?
1. Place frozen honey, Carnation Instant Breakfast and milk in blender; cover. Blend
until smooth.
 Coffee shake products

 Iced Cappuccino
Ingredients
- 3/4 cup milk

- 1 packet Cappuccino NESTLÉ® CARNATION® INSTANT BREAKFAST Nutritional
Energy Drink
- 1/2 teaspoon vanilla extract (optional)
- 1/8 teaspoon ground cardamom
- 1/2 cup ice cubes
How to make?
1. Place milk, Carnation Instant Breakfast, vanilla extract, cardamom and cinnamon
in tall glass; stir until combined. Add ice.
 Iced Latte
Ingredients
- 3/4 cup cold water

- 3/4 cup milk
- 2 tablespoons French Roast NESCAFÉ® Gourmet Instant Coffee
- 1 cup ice cubes
- 2 tablespoons (or more) granulated sugar
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How to make?
1. Place water, milk and Nescafé in blender; cover. Blend until coffee is dissolved.
Add iced and sugar; blend until smooth. Serve immediately.
 Iced Mocha
Ingredients
- 3/4 cup milk

- 2 teaspoons French Roast NESCAFÉ® Gourmet Instant Coffee
- 1 cup ice cubes
- 1 large scoop chocolate ice cream or frozen yogurt
- 1 tablespoon granulated sugar
How to make?
1. Place milk and Nescafé in blender; cover. Blend until coffee is dissolved. Add
ice, ice cream and sugar; blend until smooth. Serve immediately.
 Iced Café Americano
Ingredients
- 1 1/2 teaspoons NESCAFÉ TASTER'S CHOICE 100% Pure Instant Coffee Granules
- 1 teaspoon granulated sugar
- 3/4 cup hot water
- 1/4 cup any flavor Café Americano NESTLÉ COFFEE-MATE Liquid Coffee
Creamer
Ice cubes
How to make?
2. Place frozen honey, Carnation Instant Breakfast and milk in blender; cover. Blend
until smooth.
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 Iced Espresso
Ingredients
- 1/2 cup ground espresso coffee or French roast coffee

- 1 teaspoon finely shredded orange peel
- 4 cups water
- 1 1/2 cups skim milk
- 3 tablespoons granulated sugar
- Ice cubes
- Orange peel strips (optional)
- 1 teaspoon grated semisweet chocolate (optional)
How to make?
1. Prepare coffee with shredded orange peel and water in a drip coffee maker or
percolator according to manufacturer's directions. Pour coffee into a heatproof
pitcher; stir in sugar and milk. Chill at least 3 hours or until serving time.
2. To serve, fill 6 glasses with ice cubes; pour coffee mixture over ice. Garnish with
orange peel strips and grated chocolate, if desired.
 Tea shake products

 Green Tea Smoothie
Ingredients
- 4 rounded scoops vanilla frozen yogurt or ice cream

- 1 cup milk
- 3 tablespoons NESTEA® Unsweetened Instant 100% Tea
- 1/8 to 1/4 teaspoon ground cardamom
How to make?
1. Place frozen yogurt, milk, Nestea and cardamom in blender; cover. Blend until
smooth.
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 Strawberry Iced Tea
Ingredients
- 1 ounce sweet and sour mix

- 2 ounces frozen sliced California Strawberries in syrup, partially thawed
- 1/2 ounce rum
- 1/2 ounce vodka
- 1/2 ounce gin
- 1/2 ounce triple sec
- 1 scoop ice
- Splash of lemon-lime soda
- Whole fresh California Strawberry
How to make?
1. In a blender combine all ingredients except whole berry and lemon-lime soda;
flash blend.
2. Pour into tall glass. Splash lemon-lime soda on top. Garnish with whole berry.
 Milk Fruity syrup shake products

 Mango Yogurt Smoothie
Ingredients
- 4 to 7 ice cubes
- 1 cup (8 ounces) plain fat-free yogurt
- 3/4 cup mango slices in extra light syrup,* drained
- 1 teaspoon sugar substitute (optional)
- Mango slices for garnish (optional)
How to make?
1. Place ice in bottom of blender. Add yogurt, mango and sugar substitute, if
desired. Blend ingredients until smooth.
2. Pour into a tall glass and garnish with mango slices, if desired.
3. Serve immediately.
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 Banana Papaya Smoothie
Ingredients
- 1 cup milk
- 1/2 cup sliced peeled banana
- 1/2 cup chopped seeded and peeled papaya
- 1 tablespoon honey
How to make?
1. Combine milk, banana, papaya and honey in a blender and purée until smooth.
Pour into a large glass and serve.
 Orange Smoothie
Ingredients
- 1 ripe medium banana, cut up

- 1 (8-ounce) can crushed pineapple (juice pack), chilled
- 1/2 of a (6-ounce) can frozen orange juice concentrate (1/3 cup)
- 1 1/2 cups vanilla low fat ice cream
- 1 cup fat free skim or 1% low fat milk
- Shredded coconut, toasted
How to make?
1. In a blender container, combine banana, untrained pineapple and orange juice

concentrate. Cover and blend until almost smooth. Add low fat ice cream and fat
free skim or 1% low fat milk. Cover and blend until smooth.
2. Pour into glasses. Top each serving with a little toasted coconut; serve
immediately.
 Blueberry Smoothie
Ingredients
- 1 pint fresh blueberries or 2 cups (10-ounces) frozen blueberries
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- 1 cup pineapple-orange-strawberry juice blend or pineapple-orange juice

- 1 (8-ounce) container low-fat vanilla yogurt
- 2 teaspoons granulated sugar
- 5 to 6 ice cubes
How to make?
1. Place all ingredients, except the ice cubes, into container of electric blender and
blend on high until smooth.
2. With blender running, add 2 to 3 ice cubes at a time through the center opening
in the lid until all ice cubes have been added. Blend until smooth. Serve
immediately.
 Strawberry Smoothie
Ingredients
- 1 cup frozen strawberries

- 1 packet No Sugar Added Classic French Vanilla NESTLÉ CARNATION® INSTANT
BREAKFAST Nutritional Energy Drink
- 1/2 cup milk
- 1 (8-ounce) container vanilla yogurt
How to make?
1. Place strawberries, Carnation Instant Breakfast, milk and yogurt in blender;

cover. Blend until smooth.
 Apple Smoothie
Ingredients
- 2 cups chopped, cored and peeled Granny Smith apples

- 1 cup Apple Flavor LIBBY'S® JUICY JUICE® 100% Juice
- 1 1/2 pints vanilla frozen yogurt
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How to make?
1. In a blender combine half the apples, cinnamon and apple juice. Process until
smooth. Add half the frozen yogurt and purée until well blended.
2. Pour into two freezer safe glasses and freeze until ready to use. Repeat process
with remaining ingredients. Serve cold.
 Kiwi Smoothie
Ingredients
- 1 large kiwi, peeled

- 1 (8 ounce) container low-fat vanilla yogurt
- 1/4 cup honey
- 12 to 15 ice cubes
How to make?
1. In a blender or food processor, combine all ingredients and process until smooth.
Serve immediately.
 Grape Smoothie
Ingredients
- 1/2 cup seedless grapes

- 1/2 cup milk
- 1/2 cup plain yogurt
- 1/4 cup crushed ice
- 1 tablespoon packed brown sugar
- 1/8 teaspoon vanilla extract
How to make?
1. Combine grapes, milk, yogurt, brown sugar, vanilla and crushed ice in a blender.
Process on high speed for 15 seconds. Serve immediately.
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 Beverage products
 Tea Punch
Ingredients
- 2 cups water
- 1 cup granulated sugar
- 2 cups boiling water
- 2 teabags
- 2 cups hot water
- 2 (32-ounce) bottles ginger ale
- 4 cups pineapple juice
- 2 1/2 cups orange juice
- 2 cups lemon juice
- 1 teaspoon red food coloring, (optional)
How to make?
1. Combine sugar and boiling water in a large pot stirring until sugar is dissolved;
set aside.
2. Place teabag in hot water and let steep for 5 minutes; discard teabag. Add tea to
sugar mixture, stir and add ginger ale, pineapple juice, orange juice, lemon juice,
and red food coloring; refrigerate.
 Lemonade Punch
Ingredients
- 1 (6-ounce) can frozen lemonade concentrate, thawed and undiluted

- 1 (6-ounce) can frozen limeade concentrate, thawed and undiluted
- 1 (6-ounce) can frozen orange juice concentrate, thawed and undiluted
- 3 cups cold water
- 1 (2 liter) bottle ginger ale, chilled
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How to make?
1. Combine the first 4 ingredients; add the ginger ale and stir gently. Serve
immediately.
 Orange Cream Punch
Ingredients
- 1 (14-ounce) can sweetened condensed milk

- 1 (12-ounce) can frozen orange juice concentrate, thawed
- Orange food coloring
- 2 (1-liter) bottles club soda or ginger ale, chilled
- Orange sherbet
How to make?
1. In a punch bowl combine sweetened condensed milk and orange juice

concentrate. Tint with orange food coloring, if desired. Add club soda.
2. Top with small scoops of orange sherbet. Serve immediately.
 Strawberry Punch
Ingredients
- 2 cups granulated sugar

- 6 cups water, boiling
- 4 cups unsweetened pineapple juice
- 2 1/2 cups orange juice
- 2 packages frozen strawberries, thawed (with juice)
- 1 (2-liter) bottle lemon-lime carbonated beverage
How to make?
1. Dissolve sugar in boiling water in a Dutch oven; stir in pineapple juice, orange
juice, strawberries and lemon-lime carbonated beverage. Pour mixture into a
large plastic container. Cover and freeze until mixture is firm.
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Page | 133
2. Remove from freezer 1 hour before serving. Place in a punch bowl and break into
chunks. Add lemon-lime beverage; stir until slushy.
 Mango Punch
Ingredients
- 4 cups fresh mango puree (from 8 soft, ripe mangoes*; or from canned mango)
- 2 quarts water
- 1 cup granulated sugar
- 1/2 cup fresh lime juice (2 to 3 limes)
- 1/2 cup red prickly pear syrup (or grenadine)
How to make?
1. Puree mango in food processor or blender until smooth; strain to remove any
pulp. Place mango puree into large pitcher or punch bowl; stir in water, sugar
and lime juice.
2. To serve, fill drinking glasses with ice cubes and mango juice, and then add 1 to 2
teaspoons prickly pear syrup or grenadine to each glass.
 Tea Punch
Ingredients
- 6 small tart apples

- 1 tablespoon packed brown sugar
- 1 quart apple cider
- 1/4 teaspoon freshly ground nutmeg
- 1/2 teaspoon cinnamon
- 1/4 cup granulated sugar
- 2 cups dry sherry
- 4 thin lemon slices
How to make?
1. Preheat oven to 350°F (175°C). Grease a 10 x 6 x 1 1/2-inch baking pan.
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Page | 134
2. Core and halve apples, arrange (cut side up) in pan. Sprinkle with brown sugar
and bake in preheated oven for 20 minutes or until tender. Set aside.
3. Just before serving, pour cider in saucepan and heat to just below boiling point.
Stir in remaining ingredients over low heat until sugar is dissolved.
4. Remove lemon slices. Pour mixture into punch bowl.
5. Garnish with apple halves.
 Grape Punch
Ingredients
- 1 (11.5-ounce) can Welch's® Grape Juice Makers

- 1 (11.5-ounce) can frozen pineapple juice concentrate
- 1 (6-ounce) can frozen orange juice concentrate
- 1 (6-ounce) can frozen lemonade juice concentrate
How to make?
1. Pour grape juice in large pitcher or punch bowl and prepare according to
directions on the can.
2. Add the pineapple, orange and lemonade juice concentrates; stir until well
mixed.
 Bakery and Snack products

 Bakery
 Cake: strawberry cake or chocolate cake
Strawberry Pinwheel Cake

Cake:
- 4 large egg yolks
- 2 large eggs
- 1/2 cup granulated sugar
- 1 cup sifted cake flour
- 1 teaspoon baking powder
- 1 teaspoon salt
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Page | 135
- 1 1/2 tablespoons warm water

- 2 teaspoons vegetable oil
- Powdered sugar
Strawberry Filling:
- l cup whipping cream
- 1 tablespoon granulated sugar
- 3 tablespoons prepared lemon curd, at room temperature*
- 1 pint basket (about 3 1/4 cups) California strawberries, stemmed and coarsely
chopped
Garnish:
- Powdered sugar
- 1 pint basket (about 3 1/4 cups) California strawberries
How to make?
1. To make Cake: Heat oven to 375°F (190°C). Line 15 x 10-inch jelly roll pan with
aluminum foil; coat with vegetable cooking spray.
2. In large mixer bowl beat yolks and eggs at high speed about 5 minutes until thick
and lemon-colored. Continuing at high speed, gradually beat in granulated sugar
until mixture is pale and thick. Gently fold in dry ingredients except powdered
sugar to blend thoroughly. Fold in water, oil and vanilla. Spread batter evenly in
prepared pan. Bake in center of oven about 10 minutes until springy to the touch.
3. Meanwhile, coat a clean dishtowel with powdered sugar. Invert hot cake onto
towel close to one long edge. Gently peel off foil. Trim 1/2-inch off each short
side of cake. Starting from long side, tightly roll cake and towel. Set on rack to
cool completely.
4. To make Strawberry Filling: In mixer bowl whip cream to form soft peaks. Beat
in sugar to form stiff peaks. Fold in lemon curd to blend thoroughly. Mix in
chopped strawberries.
5. Gently unroll cake. Spread strawberry mixture evenly on cake and re-roll. Place
seam-side-down. Dust with powdered sugar.
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Page | 136
6. To serve: Cut into 8 (about 1 3/4-inch) equal slices. Place each slice on a serving
plate. Garnish with whole and halved strawberries.
Moist and Chewy Chocolate Cake

Chocolate Cake:
- 1 1/2 cups all-purpose flour
- 1 teaspoon baking soda
- 1/4 teaspoon salt
- 1 1/4 cups granulated sugar
- Chocolate Flavor
- 2 large eggs
- 1 cup milk
- 1/2 cup (1 stick) butter or margarine, softened
- 3 (1-ounce) packets NESTLÉ® TOLL HOUSE® Choco Bake Unsweetened
Rich Chocolate Frosting:

- 3 cups to 3 1/4 sifted powdered sugar
- 1/3 cup milk
- 1/4 cup butter or margarine, softened
- 2 (1-ounce) packets NESTLÉ® TOLL HOUSE® Choco Bake Unsweetened
- Chocolate Flavor
- 2 teaspoons vanilla extract
- 1/4 teaspoon salt
How to make?
1. For Cake: Beat sugar, butter, Choco Bake and vanilla extract in large mixer bowl
for 4 minutes. Add eggs; beat well. Combine flour, baking soda and salt; beat into
sugar mixture alternately with milk.
2. Spread into two well-greased 9-inches round baking pans or one 13 x 9-inch
baking pan.
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Page | 137
3. Bake in preheated 350°F (175°C) oven for 25 to 30 minutes or until wooden pick
inserted in center comes out clean. Cool in pan(s) for 15 minutes; invert onto
wire rack(s) to cool completely.
4. Frost with Rich Chocolate Frosting.
5. For Rich Chocolate Frosting: Beat sugar, milk, butter, Choco Bake, vanilla extract
and salt in small mixer bowl until smooth and creamy.
 Cookie
 Bread with jam
Ingredients
- Jam (strawberry, chocolate, milk, pineapple, orange, etc)
- Bread
How to make?
1. Bread with yam it made easy for you by to bring bread bake or toast after that
brings yam paint on the bread.
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Page | 138
 Sunk Ka Ya Baitoey
Ingredients
- Coconut mill one or 0.5 cup
- Screw pine10 leaf
- Water one cup
- Sugar 0.5 cup
- Palm sugar 0.5 cup
- Two eggs
- Corn starch ¼ cup
How to make?
1. To clean screw pine and cut screw pine is small and put to millstone. After that to
squeeze and percolate for screw pine.
2. To bring corn starch put in water screw pine and stir together.
3. To mix palm sugar, sugar and coconut milk together until sugar melt all.
4. To bring ingredient water screw pine mix with coconut milk. After that stir all of
this conforms. Then whip eggs and mix together. And ingredient all of this
percolate.
5. To open power fire that wait fire prepare for fry. Then bring is water three cup
put in pot when boil water bring all of ingredient in put and reduce for fire that
stir all of this conforms.
After that scoop up and scatter over by condensed milk already to serve for customer.
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 Snack:
 French Fried
Ingredients
- Potato
- Salt
- Oil
How to make?
1. It made of 4 russet potatoes, peeled and sliced into even strips (between 1/4″ to
1/8″) Peanut oil, filled to within four inches of the top of the pot salt
2. Rinse the cut potatoes in a colander until the water runs clear. Put the potatoes
into a bowl, cover with water and add ice. Refrigerate for an hour.
3. Heat the oil over medium low heat, with a deep-frying thermometer, until the oil
reaches 325F. Prepare a sheet pan with a few layers of paper towel for draining
the fries once they are cooked.
4. Strain the potatoes and pat them with a clean dish cloth, or paper towels, until
they are very dry.
5. Drop the fries, by the hand full, into the oil and cook until they are golden and
soft, about 4 – 6 minutes. Remove from the oil and drain on the paper towel lined
sheet pan. Repeat with the remaining fries. Let the potatoes drain for at least
twenty minutes or up to an hour.
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Page | 140
6. Increase the heat of the oil to 375F and cook the par cooked fries for 1 – 2
minutes, or until very crisp and golden. Remove from the oil and immediately
season with salt.
 Dumpling Fried
Ingredient of sauce
- Vinegar ½ cups
- Sugar ½ cup
- Water ¼ cups Dumpling about 30 leaf
- Cut cheese to small die
- Water
- Oil for fry
How to make?
1. To cut cheese is small die and then chesses down in center of kaew and after that
we will be wrapping to prepare to fry.
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Page | 141
 Kaew Sa
Ingredients
- 6 cups minced napa cabbage leaves, shredded
- 1 1/2 teaspoon table salt (no kosher as it is too coarse)
- 1 1/2 lbs ground pork
- 3/4 cup of garlic chives, minced. If not accessible, white and green parts of
scallions can be used for substitute.
- 1/4 teaspoons white pepper
- 2 1/2 tablespoon soy sauce
- 2 tablespoon grated fresh ginger (No substitution with the dried stuff, please!
- 3 large cloves of garlic, minced or pressed through garlic press
- 3 egg whites, lightly beaten
- 1 package of kaew sa wrapping skins
- Vegetable oil and water for cooking
How to make?
1. To bring starch kaew sa mix to warm to finish thresh flour until to be sticky.
2. After that to cut starch fit and bring knead by log to give thin but doesn’t thin. It
made of mix all of ingredient to except oil and mix and to use spoon scoop
ingredient at prepare.
3. And remove on starch kaew sa by to use water touch tip of starch kaew sa.
4. Then haft roll to beautiful and prepare to fry by use fair about one minute or
until starch yellow after that add to oil put in pain ¼ cups and reduce fire.
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Page | 142
Kaew Sa Dipping Sauce

1. 1/4 cup soy sauce, 2 tablespoon rice vinegar, chili oil to taste (sesame oil and hot
sauce can be used as substitute), Dash of white pepper, Minced scallions – green
parts only
2. Combine all ingredients in bowl, sauce can be refrigerated overnight.
 Nacket
Ingredients
- 3 cups Corn cereal
- 1/2 cup grated Parmesan cheese
- 1/2 tsp salt
- 1/2 tsp seasoned salt
- 1/4 tsp paprika
- 1/8 tsp garlic powder
- 3 tbsp margarine or butter, melted
- 1 tbsp milk
- 1 lb boneless, skinless chicken breasts, cut into 1x1-inch pieces
How to make?
1. It made of heat oven to 400. That line cookie sheet with aluminum foil. Crush
cereal. It involves Mix cereal, cheese, salt, seasoned salt, paprika and garlic
powder in medium bowl; set aside.
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Page | 143
2. Stir together margarine and milk. Dip chicken into margarine mixture; roll in
cereal mixture to coat evenly. Arrange on cookie sheet. Bake 9 minutes; turn
nuggets over.
3. Bake about 8 minutes longer or until coating is light golden brown and chicken is
no longer pink in center. Serve with sweet and sour or barbecue sauce, if desired.
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P a g e | 144
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Project Feasibility Study 2010 - B08-Milkery Shop

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Jp’

Mr. Jatupol Muenharn General Manager

Miss Wanna Rattanawanit Production and Operation Manager

Miss Wilawan Kladngiu Marketing Manager

Miss Nattaya Chiangrang Human Resource Manager

Mr. Piboonsak Kittitornkun Accounting and Financing Manager

59/1 Phaholyothin Road, Moo 1 T.Thasud A.Muang Chiang Rai 57100

Mr. Jatupol Muenharn

Milkery is located on 59/1 Phaholyothin Road, Moo 1 T.Thasud A.Muang Chiang

Executive Summary ................................................................................................................... ii

Table of content......................................................................................................................... iii

Content of figure ...................................................................................................................... vii

Content of table ....................................................................................................................... viii

1.1 Background and Significance of the Project .................................................................................1

1.2 Project objectives ......................................................................................................................................2

1.3 Benefits of Project .....................................................................................................................................2

1.4 Activities and Time frame of study ...................................................................................................3

Chapter 2 Industry Profile........................................................................................................7

2.1 Nature of industry .....................................................................................................................................7

2.2 Situation of Industry ................................................................................................................................9

2.2.1 Competition Analysis ......................................................................................................................9

2.3 Product and Service............................................................................................................................... 10

2.4 Vision of Milkery ..................................................................................................................................... 17

2.6 Business Strategy.................................................................................................................................... 17

2.6.1 Corporate Strategy ........................................................................................................................ 17

2.6.2 Business Level ................................................................................................................................. 18

2.6.3 Functional Level Strategy ........................................................................................................... 19

Chapter 3 Market Feasibility Study .................................................................................... 22

3.1 Market Analysis ....................................................................................................................................... 22

3.1.1 General Environment Analysis ................................................................................................ 22

3.1.2 Competition Analysis (3Cs Analysis) .................................................................................... 27

3.2 STP Analysis .............................................................................................................................................. 31

3.2.1 Segment Marketing ....................................................................................................................... 31

3.2.2 Target Marketing ............................................................................................................................ 32

3.2.3 Positioning Marketing.................................................................................................................. 33

3.3 Marketing Mix Strategy ....................................................................................................................... 34

3.3.1 Product ................................................................................................................................................ 34

3.3.2 Price ...................................................................................................................................................... 35

3.3.4 Promotion .......................................................................................................................................... 36

3.4 Sales Forecast/Profit Estimation .................................................................................................... 37

3.5 Marketing Expenses (Sale Incentive)............................................................................................ 43

3.6 Conclusion .................................................................................................................................................. 48

Chapter 4 Technical Feasibility Study ................................................................................ 50

4.1 Production and Operations Analysis............................................................................................. 50

4.1.1 Product Characteristics ............................................................................................................... 50

4.1.2 Location .............................................................................................................................................. 59

4.1.3 Facility Layout ................................................................................................................................. 60

4.1.4 Facilities Management ................................................................................................................. 63

4.1.5 Equipment and tools..................................................................................................................... 63

4.2 Cost of investment.................................................................................................................................. 64

4.3 Investment cost ....................................................................................................................................... 65

4.4 Operating Cost.......................................................................................................................................... 70

4.5 Administration Cost .............................................................................................................................. 72

4.6 Management analysis ........................................................................................................................... 75

4.7 Conclusion .................................................................................................................................................. 78

Chapter 5 Financial Analysis ................................................................................................ 80

5.1 Initial investment ................................................................................................................................... 80

5.2 Source of funds ........................................................................................................................................ 80

5.3 Profit and loss statement .................................................................................................................... 81

5.4 Statement of Cash Flow ....................................................................................................................... 86

5.5 Balance Sheet ............................................................................................................................................ 91

5.6 Pay Back Period ....................................................................................................................................... 96