Final Verviva

Preface This subject 1203302 Project Feasibility Study and Evaluation is the subject who can define as process
for identifying problems and opportunities, determining objective, describing situations defining successful outcome and accessing the range of cost and benefits associated with several alternatives for solving a problem. And the project feasibility can support decision-making process based on a cost benefit analysis of the actual business or project viability the feasibility study is concluded during deliberation phase of business development cycle prior to commencement of formal business plan. Also, project feasibility is an effective way to safeguard against wastage of further investment of resources. If a project is seen to be feasible from result is to proceed with the full business plan. And a good marketing analysis is necessary in order to determine the businesss feasibility. This report is the part of this subject in semester 2-2011, our group decided to do the business plan of cosmetic products. Also, this kind of products have high selling rate continuous in several years we thought it can gain profit definitely. Our company name is Verviva cosmetic Inc. and we choose every ingredient of products focused on nature. So the customers would feel relax every time they used .We studied details and other components related with processes to conduct this business such as market environment, cost of materials or financial analysis. Therefore, we had calculated profit and loss in objective to evaluate possibility of our project. We hope our project would be interested for anyone who wants to gain knowledge and information of feasibility in cosmetic business. Anyway, we plan the process with the real situation that can use to support decision-making for investment.
Manipulators
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Tables of Contents
Title Preface Table of Contents Executive Summary Chapter 1 : Introduction - Background of Industry - Vision & Mission - Benefit of Project - Timefame Chapter 2 : Industry Profile - Nature of Industry - Situation of Business - Service and Product Chapter 3 : Market Feasibility Study - General Environment analysis - Competitor analysis - Competition analysis - Customer analysis - STP analysis - Product positioning - Marketing Mix - Sale Forecast - Marketing Expense Chapter 4 : Cost of Investment - Location - Facility Layout - Machines / Tools / Equipments - Cost of Investment - Pre operating cost - Depreciation Expense Chapter 5 : Operation Cost - Products Characteristic - Product / Service Process
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Page II III-IV V-VI 1-2 2 3 4 5-6 7-9 10 11-13 14-19 20 21-22 23-25 26-27 28-36 37-45 46-51 52 53 54-55 55-56 57 58-62
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- Supply Chain - Logistic Management - Warehouse & Inventory Control - Operating Cost Chapter 6 : Administration Cost - Management analysis - Direct Labor Cost Chapter 4 6 Conclusion Chapter 7 : Financial analysis - Statement of Income - Statement of Cashflow - Balance Sheet - Financial Statement 5 years Chapter 8 : Risk Management - External Risk - Internal Risk - Contigency Plan Chapter 9 : Conclusion Reference Appendix
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92-96 97-101 102-107 107-108 109-110 111-113 114-120 121-122 123-124 125-147
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Executive Summary Under the slowdown of economics, the growth trend of Thai herbal cosmetics business goes against the trend with the growth rate more than 20-30% per year and the market value about 30,000 million baht. It comes from the trend from customer that back to use the product from nature of herb product instead of using chemical product. For the herb cosmetic market is estimated value around 2000 million baht. The research from the motivation that affect to the strongly in the market and the potential in making more profit in the future. We found that the herb cosmetic industry has the potential in making more profit efficiency because the competition situation in the present is not strong much. Both the bargaining power of buyer and seller that are not higher and the situation is convenience to attracting new competitors into this industry. It can create the differentiation to the product that customer can know clearly and create the brand loyalty continuous. All of these things can save the long-term potential to generate more profit in the future. VERVIVA Cosmetic is the company that produces the product from natural with the Thai herb ingredients under the concept of shop that sell products from Thai herb for your healthy. Our vision is to be the top brand of cosmetic that launches the product from the natural with the high quality to Thai community and our mission is launching the Thai herb cosmetic product to that suite with customer lifestyle and for response to the need and want of customer. Moreover, it creates the customer satisfaction and creates the high stability to the investor. Its also support the Thai herb cosmetic product to spread widely with international. Our company uses the differentiation strategy to complete with other competitors by using this strategy to create the product differentiate and customer loyalty. It also creates the brand image to be higher than our competitors and service differentiation. This is the tool to create the brand loyalty that help our organization can set the price higher the others and make more profit to our company in long-term. For the operation strategy, our company has the strong point in quality of product the pass the research and development from our company and got the certificate from the division of medical sciences. Our company has to control the
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production process by select the manufacturing that has the GMP standard. Moreover, our company selects the product that has the high quality from the high quality of manufacturing to be our main supplier. For the marketing strategy, our company do the target market that concern on healthy by create our brand logo to be the brand that concern on the customer healthy and be the top of brand in herb cosmetic industry. We communicating and promoting strategy that suite with the customer lifestyle for create brand loyalty. For the contribution channel, our company contributes our product by use the main channel that is our shop and counter sale in the shopping mall. It also include the delivery service and our company has guarantee in quality of products for create the most customer satisfaction. For the feasibility of this project, if the explanation rate of our business grow belong to our forecast, this business can create the return on investment 20% every. Our business can create the value added from the return rate is the minimum estimated is around 2.4 million baht.
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Chapter 1: Introduction
Background of industry The Business of Personal Care & Cosmetics Industry focuses on specific industry needs: Market Expansion Services for specialty ingredients for skin care, hair, body, and oral care and cosmetics. Through the long-standing industry relationships it can offer access to markets for business partners, be it mass marketers, contract manufacturers, prestige product manufacturers, multilevel marketing companies, or other industry players. The cosmetic business serves institutional customers such as spas, derma clinics and beauty salons, and act as formulation consultants. And there are customized service offerings, such as the development of prototype finished product formulations to support sales and marketing initiatives. Other consultation services include trouble shooting problematic formulations for customers; customized product development in collaboration with customers; efficacy, clinical and home usage tests, sensory evaluation and stability testing. As a constant source of innovation, it should introduce ingredients with new applications, functionalities and benefits to our customers, cutting time-to-market by offering development support and technical assistance. And total supply chain management services across the entire personal care and cosmetics industries include logistics, distribution, and cost-effective sourcing of raw materials, while guaranteeing quality and safety, reliability and speed. The concept of beauty and cosmetics is as old as mankind and civilization. The famous depictions in the Ajanta and Ellora caves, Khajurao prove that not only women but men also adorned themselves with jewelry, scents and cosmetics. Enscripted in history is the Aryan period that witnessed the use of turmeric- haridra, (curcuma long, linn), saffron, alkanet, agaru, chlorophyll green from nettle plants and indigo for bodilydecorations apart from using Raktachandan (Pterocarpus Santalinus Linn), Chandan (Santalum Album) for beautification. Using Mehendi (henna) for dying hair in different colors and conditioning was also practiced in the olden times.
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Our business, Verviva Inc. is the company for sell the natural products. The ingredients of product are made from several herbs under the concept of store that sell the herb product for healthy of consumer in the city like Bangkok which want the way of life to nearby the natural. The company tries to seek the herb products with quality and appropriate for use in daily such as the cosmetic that made from herbs or herbs drinks in many style of product and to be the standard with reliable product, convenient for use and have the modern product that suitable for use in daily life.
Vision To be the leader represent natural product with quality into Thai society in the modern style.
Mission 1. To be representing the herb product with value for health and appropriate with the way of life in the present for response to need, want and satisfy of consumer. 2. Create shareholder wealth. 3. Encourage the Thai herb product into the world for support Thai economic. Goal Short-term goal 1. Create the product and brand to be famous in target group not less than 20%. 2. Rate of growing of total sales more than 20% per year and not less than rate of growing of yield market. 3. Create compensation for shareholder 20% per year.
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Long-term goal 1. Create brand to be the memorial and to be leader in SME business. 2. Keep the rate of total sales not less than rate of growing in yield market. 3. Keep the compensation for shareholder not less than 20% per year.
Benefit of The project - Venture new business - To study about the cosmetic industry - To be the guideline for running business in the future - Study the problem-based learning methodology - Practice to apply business strategy with the real situations
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Timeframe
OPERATIONS METHODS Brainstorm and select the business Learn the environment and situation of business Summarize information and done introduction in chapter 1 Collect the general information of business and put in chapter 2 industry profile Analyze market of business in chapter 3 and set the strategies according to our product Study the specified information of product include production technique Set the cost follow production process needed in chapter 4-6 Analyze financial activities in cost and expense for calculate profit/loss of business in chapter 7 Gain more information of risk which may happen in our business and summarize in chapter 8 Summarize the most important topic of report to chapter 9 Corrected mistake as many as possible and prepare to submission NOVEMBER 2 3 4 DECEMBER 2 3 4 JANUARY 2 3 4 FEBRUARY 2 3 4
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Chapter 2: Industry Profile

2.1 Nature of Industry
Cosmetics have been in use for thousands of years. The absence of regulation of the manufacture and use of cosmetics has led to negative side effects, deformities, blindness, and even death through the ages. Examples of this were the prevalent use of ceruse (white lead), to cover the face during the Renaissance, and blindness caused by the mascara Lash Lure during the early 20th century. The structure of the cosmetics industry in all countries is investigated and compared. The economic concepts analyzed include: production value, value added, labor productivity, number of employees, personnel costs and number of enterprises. The Egyptians were among the first to use cosmetics and perfumes. As early as 10,000 BCE, both men and women used scented oils and ointments to clean and soften the skin (and to mask body odor), and dyes and paints to color it. They rouged their lips and cheeks, stained their nails with henna, and lined their eyes and eyebrows heavily with kohl, a dark-colored powder made variously of crushed antimony, burnt almonds, lead, oxidized copper, ochre, ash, malachite and Chrysocolla, a blue-green copper ore. Cosmetics were an inherent part of Egyptian hygiene and health. Oils and creams were used for protection against the hot Egyptian sun and dry winds. Myrrh, thyme, marjoram, chamomile, lavender, lily, peppermint, rosemary, cedar, rose, aloe, olive oil, sesame oil and almond oil provided the basic ingredients of most perfumes that were used in religious ritual and embalming the dead For lips, cheeks and nails, a clay called red ochre was ground and mixed with water. Henna was used to dye fingernails yellow or orange. Makeup was stored in special jars that were kept in special makeup boxes. Women would carry their makeup boxes to parties and keep them under their chairs. Although men also wore makeup, they did not carry their makeup kits with them. ( Source : Cosmetics and Perfumes", 'Egypt, 10,000 BCE' by Mindy Cohen, 1999, accessed on June 26, 2008 )
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In the past, most Thai cosmetics were produced from flowers and tropical herbs which were found in many areas of the country. Thai people specialized in using the local native herbs as part of the products' ingredients, which is a natural artificial blending mixture suitable for both westerners and easterners. When international trade became a global trend, it triggered the growth and popularity of Thai Spa businesses, which resulted in the increase of export sales volume of Thai Spa products and Thai herbal cosmetic products. According to the policy and government support for reputing Thai cosmetic entrepreneurs in international trade, the solution to developing the SMEs strategies by the Department of Export Promotion (DEP) Thailand found that cosmetic products have been promoted as 1 product of 12 target products development direction, and the health and beauty business which has been promoted in 1 of 6 target businesses development direction. ( Source : Cosmetics and Perfumes", 'Egypt, 10,000 BCE' by Mindy Cohen, 1999, accessed on June 26, 2008 ) (Source : Strategies for Thai Cosmetics Business to Enter Foreign Markets ; MR.
PRONGSARN LEELAHONGJUDHA: Manager of SUDTANA 2534 COMPANY LIMITED)
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2.2 Situation of Business

The cosmetic, beauty supply, and perfume store industry includes about 10,000 stores with a combined annual revenue of almost $7 billion. The industry is labor intensive, with the average annual revenue per worker at about $85,000. Major products sold in beauty stores including hair and shaving, deodorant, hand, oral, and baby hygiene products comprise 65% of sales, while makeup, facial care, and fragrance products comprise 30%. Other sales are generated from personal care appliances such as hair dryers and curling irons, or salon services including hair styling and facials.
Retailers offering both beauty products and salon services can generate more than $400,000 annually and between $100 and $500 per square foot, according to Beauty Store Business. Stores selling only beauty products average less than $300,000 annually and less than $250 per square foot. Stores specializing in high-end beauty products can generate over $1,000 per square foot.
According to the market research group Mintel International, the number of natural-organic beauty and personal care products launched in the United States rose 5 percent between 2005 and 2006, and 62 percent between 2006 and 2007. In addition, the Global New Products Database reports that the number of organic claims made on new products grew 273 percent from 2005 to 2007, while all natural claims grew 71 percent. In Thailand, cosmetic industry comprises large companies such as TG Nature Care and others that manufacture products for internationally famous brands from the United States, the European Union, and Japan as part of the original equipment designer (OED) and original design manufacturer (ODM) market. In addition, a number of Thai cosmetic firms manufacture their own brands and are gaining in popularity overseas. Factories producing cosmetics and spa products for the international market are equipped with modern laboratories. Their manufacturing processes and research are monitored closely by scientists and meet all international standards.
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Moreover, Thailand has tropical climate and enormous biodiversity have resulted in vast natural resources used to create superior beauty and spa care products unavailable elsewhere. While the amazing healing and beautifying properties of Thailands plants have been appreciated for generations by local people, only recently have they been scientifically researched and systematically developed to maximize their potential. As a result, consumers may now find superior-quality Thai spa products made from coconut oil, lemongrass, galangal, turmeric, tamarind, rice bran oil, and mangos teen, all produced in Thailand. Among the popular Thai products used in spa treatments in other Asian countries such as Japan are heated herbal compresses that help relieve muscle and joint pain and swelling. A special blend of therapeutic Thai herbs is wrapped into a cloth ball, steamed or micro-waved, then placed on the body, creating a soothing effect similar to a light massage or acupuncture. Companies and individuals wishing to establish traditional Thai spas also my purchase equipment, such as futons or special massage tables, as well as natural or organic skin care products, from Thai companies. As the following chart indicates, Thailands primary exports in the cosmetics and spa products sector are soap, facial and skin care products, and raw materials for cosmetics. The industry includes a wide range of companies and employs nearly a quarter of a million people in Thailand.
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Main export items Hair products Cosmetic raw materials Facial and skin products Shave and aftershave, bath, and deodorant products Soap Dental care products Perfumes, cologne, and fragrances
Percentage 0.22 22.50 26.68 14.67 33.84 1.97 0.12
Number of Cosmetic and Spa Industry Manufacturers by Size 762 Small (fewer than 50 employees) Medium (51-200 employees) Large (more than 200 employees) *Total employment: 220,000 employees 520 220 22
From this information, we decide to invest our business because the cosmetic industry in Thailand is growing continuously and it also creates employment for higher number. We plan that our business will be popular and after that we must try to make brand value to stand in the top of our business because most of Thai people like to invest a health and beauty business. Although, today there wont be much competitor but we are sure that it will be more competitor after this times
( Source : Hoovers Inc. Industry Overview: Cosmetics, Beauty Supply, and Perfume Stores, The Campaign for Safe Cosmetics.(2008).The Campaign for Safe Cosmetics. from http://www.safecosmetics.org/ )
The Department of International Trade Promotion (DITP) from website http://www.thaitradeusa.com/home/?page_id=3207
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2.3 Service & Product

All of our products from our company are create from the natural and nutrition by selected herb that has a qualification for healing people healthy instead of chemical. This concept is bringing the Thailand cultural and traditional in the past to adapt to use to the present. Customer can use our product that the ingredients of the product extract from the natural ingredient instead of using chemical process. It is very safe and gets the high potential in consuming the product in the difference ways from the other product in the market. The products from our company that launch into the first market are Shampoo, Conditioner, soap, and skincare. All of these product produce under the brand Verviva
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Chapter 3: Market Feasibility Study

Market Analysis
3.1 General Environment Analysis Social The social factor in Thailand will change in the next twenty year. There are less in children but, highly in adults and elderly. This reason will make a change in the structure of production, from agriculture to industrialization, and the production will depend on a high technology. The agriculture will not require much space for planting. In present, our society has grown up along with competition in social. Thailand have grown up fast in object nature value of social in the present, Thai social condition have many change follow environment and time. Which it have trading relate international diplomacy. In help technology for study and develop country to grow up. Source: http://dnfe5.nfe.go.th/ilp/soc2/so31-2_3.htm Technology In grow up of science and technology. It made the development in convenience for life, technology support base factors in good living .Technology create standard accommodation and it can manufacture goods and services for respond human needs. Technology of manufacture system can produce many product to cheap but highquality product, it can easy in communicate.
(http://neung.kaengkhoi.ac.th/information1/techno_3_2.html )
Environment Human resource, natural, and environment have closely relationship. Because resource natural and environment have benefits for human receive in four factors are foods, apparel, medical, and rest. In present, we create association in help grow tree for treat of global warming.
(http://www.ppr.go.th/forumtalk/index.php?topic=2229.0)
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Economic Thailand is country have open economy is country contact in trade with other country. The trade between country have important in develop and bring to flourished to country, including important part in push economic of country in fast extend. Competition in trade market more strong, besides in search benefits of economy situation and trade of the world into economic group which have benefit relate and push to have develop ASEAN countries for free trade. Make product have quality, standard, and efficient which include find the way to invest in Thailand and try to export other region for distribute easy product.
(http://www.baanjomyut.com/library/global_community/03_3_3.html)
THAILAND BUSINESS CONFIDENCE In Thailand, business confidence improved to 67 in the first quarter of 2012 from 62.7 in the fourth quarter of 2011. In Thailand, the Business Expectation Index measures the level of optimism that people who run companies have about the performance of the economy and how they feel about their organizations prospects. Index higher than 50, shows that the majority of businessmen expect economic condition to be good in the next quarter and next year. The survey is based on the sample of around 1800 Thai businessman. This page includes a chart with historical data for Thailand's Business Confidence.
Source: http://www.tradingeconomics.com/thailand/business-confidence
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Politic Develop of Thai political come to change for interest and follow from state of Thai democracy in deep of problem of country want to use system and democracy system under power statement which have central. So voting is create power come back have real power but inside have good democracy and majority in social have right make decision in select your way. (http://www.manager.co.th/mgrWeekly/ViewNews.aspx?NewsID=9540000061695 )
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3.2 Competitor Analysis (3C) The demand growth rate of this industry is growing continuous in Thailand, especially products from herbal extract because the trend in natural product. So this thing make the entrepreneur try to coming to challenge in this market to gain the market share. 3.2.1. Direct Competitor
Green Chart This company is the launch the cosmetic product from the gerbil extract, such as, herbal soap, herbal shampoo, body lotion, etc. This company tries to make the diversity of the product and their product gets the standard from Department of Industrial Promotion. Nowadays this company sells their product by open the herb shop at Central Plaza Ladprow that sells the main product from Green Chart Company and also receives other brand of herb product to sell in this shop. Green Chart Herbs Company Information of company Address: 404, Moo.1, Rai Som, Muang, Phetchaburi, 76000 Telephone: 032-400-502-4 Fax: 0-3241-0219 Homepage: http://greenchartherbs.com E-mail address: greenchart@phetchaburi.net Type of business 14 | P a g e
Production Wholesale Export Service
Agribusiness Retail Number of employees are 11 persons Authorized capital is 1,000,000 baht
Type of products and service Place OTOP Festival http://sme2.ismed.or.th/alliances/comp-profile.php?comp_id=13802 Inventory of products: Green Chart Herbs Company Picture of products Name of products Detail of products Shampoos Soaps Skin care Liquid drug Spices Herbs Massage Feet
Thai herb compress Code: 760709-SA001
Thai herb compress makes aromatic smell and beauty of packaging.
Price: 99 baht
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Turmeric Oil Code: 760709-SA002
Turmeric Oil makes aromatic smell and beauty of packaging.
Price: 99 baht
Salt Scrub Code: 760709-SA003
Salt Scrub makes smooth skin.
Price: 220 baht
Aroma Salt Scrub Code: 760709-SA004
Aroma Salt Scrub makes white skin.
Liquid Drug Code: 760709-SA005
Liquid Drug makes nourishing blood and indigestion.
Sources:
http://www.thaitambon.com/tambon/tsmeplist.asp?ID=760709&SME=0384145926
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Supaporn Herb This company is a successful in herb scrub and tries to expand their product into the herbal cosmetic market. Products that Supaporn produce are soap product, herbal shampoo, body lotion. Nowadays, this company has its own products around ten and sells in the average price by using supermarket to be the distribution channel. CEO : Supaporn Talodchep Establish : May 04, 1995 Vision : Want to cosmetics ingredient of thai herb. Which make by Thai people is accept from consumers both in the country and abroad. Want to leader in research, develop, and production of thai herb. Then bring to technology for transform thai herb become extract for bring to it go to ingredient of cosmetic. Want to the big manufacturing herb cosmetic and product concern with herb which it is standard quality and product is one of the world.
Product
Herb face scrub Herb mask face Herb milk powder take care skin Herb skin scrub Herb skin scrub whitening soap Herb mangos teen soap Herb germ soap Herb ginger + germ soap Herb tamarind + germ soap Herb whitening scrub
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25 bath 25 bath 25 bath 25 bath 49 bath 35 bath 35 bath 35 bath 35 bath 25 bath
Herb detox Herb gooseberry turmeric massage cream face Herb aloe vera massage cream face Herb tamarind face scrub cream Whitening cream Sun box SPF 15 Acne foam Acne serum Whitening Q10 cream Whitening Q10 cream (30 g.) Teeth scrub Olive oil poison Olive oil true love Olive oil kiss UV professional SPF 30 Milk yogurt
25 bath 35 bath 35 bath 35 bath 65 bath 65 bath 129 bath 225 bath 225 bath 525 bath 12 bath 20 bath 20 bath 20 bath 450 bath 295 bath
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SMEs In the herbal cosmetic product market, there are some entrepreneurs try to expand their market into the herbal cosmetic market, such as,Van Thai, Nim Porn, Dr.Green , Tri Siam, and Herb Various. Most of them sell only one product and price is in the average to high price and they use the Focus Strategy. Local community group and OTOP This competitor comes from the economic crisis in the past and Thai government tries to support local community can help themselves. The main product of this competitor is using the local resources in their community, especially, OTOP project, this situation create many products from the natural resources, include herbal extract product. Price is usually low or high, it depend on their factors but mostly is not too high when comparing with the same product in the market. Anyway, product from local community group cannot fight in the national market and hard to consume.
Indirect Competitor Without the direct competitors that produce the herbal extract, the common product is also have the substitute product, such as, soap product, shampoo, toothpaste, washing cream. There are many products that import from outside Thailand, such as, Colgate, Palm Olive, Uniliver, and P&G. These products also have the strategy to gain the market share by using Mass Market and use the capital leader.
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3.2.2 Competition Analysis in Herb Cosmetic Industry For the cosmetic industry, cosmetic that use herb ingredients in raw material is coming up to the new trend in nowadays. Because of the feedback with the natural based and Thailand also is the country that has the advantage of the several of abandon of herb ingredients that can produce lots of various herb cosmetics. So Thailand herb cosmetic industry is going to upgrade their standard of production and quality of herb product and it can seek for the opportunity to expand their business both international and domestic also. Herb cosmetic product market have the value around 2,000 million baht and there is the growth rate of this market around 30% every year. This type of market can divide group of brand into 2 types, the first one is the international brand and the domestic brand. Nowadays the herb cosmetic industry is going to expand to the international market by focusing on 2P that are Product and Place to create more new ingredient with from Thailand and import also. The change of ingredient in herb cosmetic product is the ways to solve the customers do not know the name of unknown Thai herbs name. So many Thai herbs cannot growth in outside Thailand, such as, Pea, Creat, Turmeric, Deviate, and Pracmdicwai. All of these herbs will be mix with the import herb from outside country, such as, Tea Tree Oil and Evening Primrose. Moreover, the well-known herbs from Thailand also use to be the ingredient that will make customer will know in our product. All of these strategies can create the well-known brand and brand loyalty. Our brand also accepted brand from all around the world.
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3.2.3 Customer Analysis 1. Attitude of sample group From comparison the interesting of purchase the product that made from Thai herb and produce in the country between sample group that have experience in purchase and sample group that never purchase natural product, we found that the both of them have different interesting level by the sample that used to purchase have more interesting in natural product than sample group that never purchase. So, we can analyze the attitude factor which relate with interesting of purchase of both following these, The interesting in purchase products has the trend in positive side and the passion of natural product because they feel that they help Thai economic. There are various style of product, the ingredient of product made from natural and have qualification like the label. In the addition, in term of interesting to purchase also related in positive attitude with product like a natural product is the good product.
The interesting in purchase product of person who never purchase has positive relationship with the believe that product in the store, especially natural products are safety and the interesting in supplementary food while the interesting in purchase of group that used to purchase will has positive relationship to interest and care their health. Attitude for spend money for purchase the natural product with the cost may be higher than regular product.
So, the different ideas of two groups may be affects to customer behavior in term of decision making from different ideas. Group that never purchase will lack of confident in term of safety of product and want to buy the product from only store that we think it is reliable or the store that expert in that way such as the store that sell only natural product. Group that used to purchase the natural before will concern about the important of convenient for find the product more than reliability of the store. Behavior of people who used to purchase will care about their health, so
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this group agree for spend their money for purchase the natural product that has higher cost more than regular product because they believe in natural product will has more value than other product. 2. Customer behavior in natural product The almost of sample for 99% know about the natural product at least one type by they used to purchase 82% but if we consider the sample group that used to purchase in last 3 month, it is only 56% of person who know the natural product and person who used to purchase is 48% that show we know about the natural is the product that people know in large scale but purchasing and using the product is in low level. The almost of know product that people used to purchase and use are toothpaste, conditioner and herb drinks by the almost of know brand are DokBao Koo and Oriental Princess and the OTOP product. The costs for purchasing in a time about 100-300 baht and for person who never used to purchase, we think it is appropriate price for them. In the present, both of them see that the cost of natural product higher than regular product and we should set the cost in the same rate with other product that not the natural product. However, for the person who used to purchase still agree pay their money for purchase natural product more than regular product in a little bit scale. When we know about the different between the qualifications of both products and set the promotion with selling and popular to give the taste product because 50% of people never used the product. And the subordinate is discount or sales promotion that makes the product will popular in the regular product. The general sample group sees that it is easy to find the natural product and the stores that sell the product has good atmosphere. So, the samples that person who used to purchase and never purchase will buy the product at department store because almost of their way of life like to go to department store for buy anything for consumption.
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3.3 STP Analysis
Segment Marketing VERVIVA COSMETICS, Inc. is the company that provides herbal cosmetic products that concern to safety and without ingredient from chemical. According to costumers behavior toward the marketing strategy of herbal cosmetic product research, it was found the populations characteristics in terms of sex, age, income, occupation, education background and status were related to their purchase behavior or to their use of the services at a statistically significant level. There was a statistically significant difference in the overall level of satisfaction of the part of customer from different occupations and educational backgrounds. So, Verviva was providing about segment by use criterion as follow. Demographic: Age is divided into three ages are less than 20 years, 20-25 years and more than 45 years or student, worker and senior worker Income is divided income less than 10,000 baht groups and more than or equal to 10,000 baht. Education is divided into groups with lower education level or equivalent degree. And a master's degree or higher. Gender is divided female and male. Geography: Area be divided, because there are different between the density of population , purchasing power and lifestyle in Bangkok and provincial
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Behavior: Lifestyle is divided 2 groups: Health concern, consumers who pay attention and care of healthy themselves such as exercises, no smoking, drinking alcohol, eating organic foods. Love the environment and want to live close to nature. And relax from everyday life that is filled with pollution and environmental stress that want to spend leisure time with family. Avoid using products that contain chemicals which may accumulate and be reason to health problems. Environment concern the consumer groups are educated and working in the city, do not have time to live and rush. The main requirement is convenience so liked the simple but chic about creative. They want to back to nature. They emphasize with conservation natural and environment such as using recycled paper, add unleaded fuel, etc.
Target market Target market consist of group of customer who concern to natural and nutrition by use herb that has a qualification for healing people healthy instead of chemical. Our company stress people in Bangkok that have less than Bachelors degree and Bachelors degree, female and the average monthly personal income more than 10,000 baht. The age range 24-45 years is approximately 540,000 persons. And market research showed that this population is a group with high purchasing power. And they care and pay attention health. The target groups will be interested in natural products than other groups. Our company expects to have most opportunity to these groups and easy to enhance our product as follows: The main target: people who concern health and nature lovers that easy to accept our product because emphasize about nature products. If the groups satisfied with our products, they will introduce to close persons (word of mouth). In addition, these people are willing to pay for exchange to good health.
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The second target : people who concern to environment that emphasize to value of natural and environment and have responsibility to social and willing to support our product that can create value in mind to customer such as they feel help economic that participate with conservation natural and environment which corresponds to the concept of our products. Future Target Marketing: people who interesting in franchise business with Verviva.
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Positioning Marketing High Quality
VERVIVA GREEN CHART Low price SUPAPORN High price
Low Quality
VERVIVA Positioning The positioning of Verviva is based on high quality and high price that make the customer purchase our product. All of our products from our company are create from the natural and nutrition. Customer can use our product that the ingredients of the product extract from the natural ingredient instead of using chemical process. It is very safe and gets the high potential in consuming the product in the difference ways from the other product in the market. The products from our company that launch into the first market are Shampoo, Conditioner, soap, and skincare. Nowadays, customers want to buy the product that has high quality and health. So, Verviva provided many quality products to increase satisfaction to our customers. And our company gives the best thing to our customer.
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The factor for decision to purchase the natural product The qualification of the product consist of safety for consumption, guarantee from Food and Drug Administration and quality of product is the first reason that the sample group use to decision making for purchase the product. Subordinate is cost of the product, in the past sex and education affect to decision making by female used to purchase more than male and person who has high education from less than Bachelor's degree used to purchase more than master's degree. The experts are the resources that have the most influence to decision making for purchase in sample group. Subordinate is friends, family and advertisement.
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Marketing Mix Analysis Marketing Mix P - Product From the market research found that the nature product is popular in the market in the present and the customers interest to best buys such as shampoos, conditioners, toothpastes, and soaps which everything made from Thai herb. Choosing the product for putting the market that the important to the demand of the customers which is the main of consider that the competitions and the production costs which found that although, the customers interest to buy Thai herb toothpastes too much, but the competition in Thai herb toothpastes have violence so much, especially indirect the competitors which production cost advantages and loyalty to the brand, so dont choose to sell toothpastes. Products that we produce divided to two types are Hair Care and Face & Body Care by products made from Thai herb that each product has various properties which products are Ginger shampoo that helps to clean hair, the maintain hair, and makes to strong hair roots, reduce to itch hair, drop hair. Tinospora Cordifolia shampoo that helps to clean hair, the maintain hair to a good healthy and polish hair. Butterfly peaconditioners that help to maintain hair, deface hair, and black hair. Hair oil that help to weight hair, and protect to premature for gray hair. Turmeric liquid soap that cleaning the skin for smooth and bright, and alleviate of allergy. Turmeric soap that maintains the skin helps to adapt the skin for smooth and bright, and reduce the pruritus. Mangos teen soap that helps to alleviate of the body, close the skin, and tighten the pore. Rice bran soap that enrich with Vitamin A, B, E, and helps to maintain the skin for be young. Beach mulberry soap that enrich with antagonist to Oxidation from natural, slow down the decline, and the maintain skin. Tamarind facial cleanser that reduce to wither the mark, mottle, and increase the refreshment and flexible
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of skin. Cucumber skin care cream that protect to the wrinkle, maintain to smooth and flexible of the skin, and Turmeric lotion that helps to maintain and adapt of the skin. The first year, which the company focuses on sell Hair Care such as shampoo and conditioner that made popular by the customer, trust in quality, and toward to create Verviva brand, which is recognized among consumer that product is high quality when consumer have confidence in quality and brand that toward to test other product in the future, and the strategy of product for create to differentiate on quality the standard of product and believability because the most important that factor of consumer for decide to purchase and it makes the target group that feel care about healthy by accepted and trusting including conform to strength of product which produce to process of standard and pass to confirm of quality the product from trusting the institution which is create to difference in quality, especially smaller competitors and agriculturist group by dont confirm in quality. For develop the product will have create the new methods for several of the product and response to consumers need. Verviva brand that product use green color is the natural of the product and woman is beauty and gentleness. Verviva brand is substitute of consumer that beauty and gentleness, and love in the natural which want to use the product from natural and benefit to the healthy for symbol use the natural surround the woman for convey to beauty among the natural. Select brand is English version because symbol that modern and internationalism. Packaging that company focus on difference in the special packaging for creates the image better the product from smaller competitors that sell in the market and create trusting of the product which the important factor to decide the purchasing by focus on the beauty, comfortable to using, and can be maintain to properties of the product which the image of packaging convey to safety, environmentally-friendly, and apply to knowledge with daily life such as within the shop that use to weave the basket made from bamboo which produce from rural people and select to using the recycle paper bag substitute for plastic bag.
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Type of Shampoo, conditioner, hair oil, and liquid soup that package to be crystalline plastic bottle for show that product in the bottle to see a nature color of Thai herb in the bottle such as Turmeric liquid soap have nature color that is yellow which is objective for convey to using the ingredient from the natural better the chemicals. Type of Lotion and cream that package the bottle or the white opaque plastic tin because product is white, so type of soap product will package in the paper box and stick on a label for show the properties and the ingredient. Size of packaging divided to the standard size and test size which is smaller than normal size and be appropriate for the new customer that wants to testing or purchasing for be gift. Moreover, that makes gift set for several of the product such as soap, shampoo, and conditioner in small size to medium sized by design that is special beauty for interested and motive that be test the product for the more various. Label that every the product to show the clearly brand and show the name of the product, method, properties, and detail of the ingredient as Thai language go together with English language by identify the name of producer and detail of law which increase the detail about properties of the product, attach to standard the mark, and message show to guarantee the product quality for create to recognize the quality and create too different in the eye of consumer including label will identify the telephone number for asking and order the product and website of company for consumer can be search to add the information about the product.
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P - Price Company will use the strategy for set the price by consider the possible of selling in the market which consider from level brand awareness, share of mind, and share of heart that be composed of situation the competition in the price by dont use the strategy in the reduced price, but company will set price that higher level than Thai herb general product and higher than product is not nature the product because survey finding that target group agree to spend money for purchasing the nature product in the higher price than general the product is not the nature product which show that consumer have the low price sensitivity by company will set the price in the level be similar to price of the main competitor is product of Green-Chad which level is higher than average the price of Thai herb product generally is extremely. Because of the position of VEVIVA product that want to higher quality than Thai herb product generally in the eye of consumer which strategy is set the premium to consumer recognize to quality better Thai herb product generally is clearly.
Type of product
Price of general product (gram/baht)
Price of Green-Chad product(gram/baht)
Price of other Thai herb product(gram/baht)
Price of VEVIVA product(gram/ba ht)
Shampoo and Conditioner
400g./99-145baht
300g./160baht
Supaporn 400g./94baht WanThong 400g./92baht NimPorn 400g./82baht WanThai 320g./110baht GreenMate 300g./69baht Principle 200g./150baht
300g./160baht 150g./85baht
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Soap Bar Soap 100g./8-11baht 100g./65baht Supaporn 100g./45baht BaiBua 100g./27baht Liquid Soap Face & Body Care Face Care 60g./58baht Body Care 50g./190baht Lotion 150ml./62-80baht Dont have 150g./180baht 40g./160baht 50g./140baht 50g./120baht 250g./150baht 250g./180baht 250g./180baht 100g./60baht
P-Place The way of distribute The distribution of product planning divide product passes the way of retail. As new product launch, first we concern to target market and make to relationship of product for make customer know product and easy to find product, while it does not cost too high. Therefore, company should plan distribution channel. Shop for product of Verviva in department store Objective of open Verviva shop for establish recognizable brand, facilitate to buy and have confidence among the new target group who that love and care healthy. The concept is concern about nature combined with Thai. We show value of Thai wisdom and participation to help the economics of Thailand. The product put on the rack around the store and we will show educate about the benefit of herbal ingredients signs in side of wall. In front of store is glass, customer can look inside. In the store we will service and give information about product by sale staff and have tester for test.
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Counter products
Counter sale will set up counter in the shopping mallone counter to place, by in the first counter will set up at central Pinkaow and PhaRam 3 for relate with result which occurred from analyze behavior of target. Consumer bought nature product from the shopping mall in very much, by focus middle class customers group which to be in those areas. Then which will counter in area near supermarket inside of the shopping mall, which target goal are tack care a health and these will often bought this products. Which nature product of counter sale is the way to select new products in demand in life, benefits of set up counter in area near supermarket are:
1. 2.
Avoid in competition with competitor in direct and indirect because it will compare about product. Image of product in vision of consumer more than good when compare in same products which have sell in supermarket. Counter sale will have addition counter in the second years in 3 place, by set up at Central Ram Kham hang the Mall Bang care and Bangkaapi by it cancel set up counter at Central Pinkaow, because there is open store at Central Pinkaow 2 years substitute for counter and the third will open at Central Chitlom and the forth at the Mall Ngam Wong Wan and close counter at the Mall Bang Ka Pi
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Booth show products In second years, company will show products in amountone booth by set in sell products movement. Objective is for push brand of product for people to know and motivate product for test by circulate set up booth show products in public park of Chiangmai and Ongmashe, which is central health products place to one weekend to month, which public park is target place in relax and exercise. Delivery Service Company consider to convenience in buy products for customers which may be do not convenience in go to shop. Specific Bangkok customers have problem in traffic policy, and then it has delivery service products. By customers can call buy and buy more 300 bath which we will free delivery but if customers want to product immediately, we will receive 20 bath in transport. Life of Bangkok people have more hurry which it have important in set up time to efficiency.
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P-Promotion Sale Promotion
1. Free sample product in temporary Booth in first 6 month. And open new service in department store, stimulate new revolution becoming the first trial for customer and promote location of branches and channel to contract us. 2. Promotion for membership purchased over 500 baht will receive a discount 5% for all this month to encourage repeat purchases. 3. Free for customer test from sample product for ensure the safety of consumer products. 4. Point-of-Purchase is used to create attractive product at point of sale, such as providing information and show image of herbal product. 5. Promotion on account 50% for item 2 and price of 2 item is less than first item purchased, we have in month of low season for stimulate purchase. 6. Give customer collected 5 point of campaign while 1 campaign as 300 baht. They get discount coupon for next purchase 5-30 %for increase repeat purchases. 7. Send birthday card to members, and member bring card to get gift at store for make impression and retain existing customers in long run.
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Trade Promotion
Invite trade show at least once a year, such as health and beauty product, gathering of Thai tradition medicine to business that interest for purchases and opportunities to export product out.
Advertising
1. Distributed leaflets containing pictures of product features, prices, size, and tell every channel to contract us. We have delivery service. We will distribute leaflets in store, opening store, trade show, and booth of company. This is a tool to promote company. 2. Distribute brochure and get telephone number, for encourage repeat purchases. The target product and brand recognition. Of the pavilions during the first 6 months of the year gone by 2545, the company has a budget for distribution to target approximately 20,000 people. 3. Advertised in the magazine's mental and biological purposes, the target readers to know our products better.Selection magazine's readers as they match the audience's attention. Although television, radio, and newspapers to reach a wide audience than magazine but the magazine is targeted at a more clear and specific and can be stored for a long read. 4. Prepare a site to build brand recognition and product information. Where to purchase, orders and various promotional items.
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Sale forecast The way to forecast sales for the year (s) used by the main chain-ratio method was used for computation. Estimates of the possibility of buying derived from observations and interviews with operators and the cost of purchase per person. The analysis of the questionnaires factors used in the computation is as follows. A. Factor in the distribution channel of distribution, which is the roll-out counters, booth, displays all four channels, products and services, which provide the following regulations.
1. Factor in the distribution channel of distribution, which is the roll-out counters, kiosks, display all four channels. Products and Services, which provides the following regulations
X1 = Number of stores. X2 = Number of counter-memory. X3 = Number of pavilions. X4 = Number of delivery service.
2. By a number of channels is determined by the individual. Regard to investments and the possibility of selling it. Each channel. 2. A number of customers expected to buy products in a way that samples a day, the following regulations.
Y1 = number of customers expected to purchase in a day. Y2 = number of customers expected to purchase goods on the counter for the day. Y3 = number of customers that purchase at the booth each day. Y4 = number of customers who buy through the delivery day.
The way it stores and counters which we have observed
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The average person who walks into the store 65 cases per day, and interviews with operators and employees in the walking street Chiangmai. The average person to buy they are about 15 cases per day.
The selling booth at the park that we have observed there are number of people who bought the products at booth is approximately 20 cases per day.
The delivery service expected to reach only 0.25% of the people who have been received advertisement.
3. That amount each customer spent on the purchase of each channel at a time, I will sell the regulations as follows.
Z1 = money that spend on each customer purchase from the store. Z2 = money each customer spent on the purchase of a time counter. Z3 = money that spend on each customer purchase from the pavilions. Z4 = money that each customer spent on the purchase of service delivery.
From the analysis of the samples showed that the average cost of buying natural products is 220 baht. Our company will set the minimum of purchase regulations at 300 baht each time.
4. The days of the distribution channels that will be remembered as the day is not a variable are as follows. D1 = number of the days available of the shop. D2 = number of days up to the counter sell. D3 = number of the days for the pavilions. D4 = number of the days in the delivery.
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The company would have made the counter of the store and 30 days a month and 22 days of the pavilions. Delivery month and 26 days per month the formula for calculation is as follows.
Sale Forecast = (X1 * Y1 * Z1 * D1 * 12) + (X2 * Y2 * Z2 * D2 * 12) + (X3 * Y3 * Z3 * D3 * 12) +.(X4 * Y4 * Z4 * D4 * 12) per year.
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Sale Forecast year 1 -5 A forecast sale for the first year (July - Dec 2012) was approximately 3.5 million due in the first year. Brand is recently launched products which are relatively new in the eyes of consumers do not yet known as they should. The aim of the company total sales through new channels in the eyes of consumers, so do not let it be known that should the company. The aim of Total sales through the store (34%) and counters (34%) was the highest selling item was a facade. (17%) and delivery (15%)
Forecast sales for the second year were approximately 10.85 million, with growth rates of 54% per year since. The expansion of distribution channels sales is nearly doubled. And forecasts of market growth it is approximately 20% per year, based on analysis by the Kasikorn Thai Research Center and the target customer recognize the brand. The company's brands and products are increasing by about 20% target set for the repeat purchase rate. The 30% target set by the channel counter (44%) was ranked number one, followed by shops (33%) services, delivery (20%) and booth selling (3%).
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Sale forecast year 1- 5
1 YEAR Shop Counter sale Booth Promotion Mail Order Total Sale
st
JAN 297,000 396,000 24,200 187,200 904,400
FEB 297,000 396,000 24,200 187,200 904,400
MAR 297,000 396,000 24,200 187,200 904,400
APR 297,000 396,000 24,200 187,200 904,400
MAY 297,000 396,000 24,200 187,200 904,400
JUN 297,000 396,000 24,200 187,200 904,400
1st YEAR Shop Counter sale Booth Promotion Mail Order Total Sale
JUL 297,000 396,000 24,200 187,200 904,400
AUG 297,000 396,000 24,200 187,200 904,400
SEP 297,000 396,000 24,200 187,200 904,400
OCT 297,000 396,000 24,200 187,200 904,400
NOV 297,000 396,000 24,200 187,200 904,400
DEC 297,000 396,000 24,200 187,200 904,400
2ND YEAR Shop Counter sale Booth Promotion Mail Order Total Sale
JAN 393,300 655,500 24,200 245,700 1,294,500
FEB 393,300 655,500 24,200 245,700 1,294,500
MAR 393,300 655,500 24,200 245,700 1,294,500
APR 393,300 655,500 24,200 245,700 1,294,500
MAY 393,300 655,500 24,200 245,700 1,294,500
JUN 393,300 655,500 24,200 245,700 1,294,500
2ND YEAR Shop Counter sale Booth Promotion Mail Order Total Sale
JUL 393,300 655,500 24,200 245,700 1,294,500
AUG 393,300 655,500 24,200 245,700 1,294,500
SEP 393,300 655,500 24,200 245,700 1,294,500
OCT 393,300 655,500 24,200 245,700 1,294,500
NOV 393,300 655,500 24,200 245,700 1,294,500
DEC 393,300 655,500 24,200 245,700 1,294,500
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3RD YEAR Shop Counter sale Booth Promotion Mail Order Total Sale
JAN 655,500 655,500 245,700 1,556,700
FEB 655,500 655,500 245,700 1,556,700
MAR 655,500 655,500 245,700 1,556,700
APR 655,500 655,500 245,700 1,556,700
MAY 655,500 655,500 245,700 1,556,700
JUN 655,500 655,500 245,700 1,556,700
RD
JUL 655,500 655,500 245,700 1,556,700
AUG 655,500 655,500 245,700 1,556,700
SEP 655,500 655,500 245,700 1,556,700
OCT 655,500 655,500 245,700 1,556,700
NOV 655,500 655,500 245,700 1,556,700
DEC 655,500 655,500 245,700 1,556,700
4TH YEAR Shop Counter sale Booth Promotion Mail Order Total Sale
JAN 793,500 793,500 273,000 1,860,000
FEB 793,500 793,500 273,000 1,860,000
MAR 793,500 793,500 273,000 1,860,000
APR 793,500 793,500 273,000 1,860,000
MAY 793,500 793,500 273,000 1,860,000
JUN 793,500 793,500 273,000 1,860,000
TH
JUL 793,500 793,500 273,000 1,860,000
AUG 793,500 793,500 273,000 1,860,000
SEP 793,500 793,500 273,000 1,860,000
OCT 793,500 793,500 273,000 1,860,000
NOV 793,500 793,500 273,000 1,860,000
DEC 793,500 793,500 273,000 1,860,000
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TH
JAN 952,200 952,200 327,600 2,232,000
FEB 952,200 952,200 327,600 2,232,000
MAR 952,200 952,200 327,600 2,232,000
APR 952,200 952,000 327,600 2,232,000
MAY 952,200 952,200 327,600 2,232,000
JUN 952,200 952,200 327,600 2,232,000
5TH YEAR Shop Counter sale Booth Promotion Mail Order Total Sale
JUL 952,200 952,200 327,600 2,232,000
AUG 952,200 952,200 327,600 2,232,000
SEP 952,200 952,200 327,600 2,232,000
OCT 952,200 952,000 327,600 2,232,000
NOV 952,200 952,200 327,600 2,232,000
DEC 952,200 952,200 327,600 2,232,000
Sale forecast for 5 years

Year Shop Counter sale Booth Promotion Mail Order Total Sale 1 3,564,000 4,752,000 290,400 2,246,400 10,852,800 2 4,719,600 7,866,000 290,400 2,948,400 15,534,000 3 7,866,000 7,866,000 2,948,400 18,680,400 4 9,522,000 9,522,000 3,276,000 22,320,000 5 11,426,400 11,426,400 3,931,200 26,784,000
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A forecast sale in the third year was approximately 15.5 million, a growth rate of approximately 2 years. 43%, with growth rates higher than the market. The expected audience of the brand increased 25%. In addition, the repeat purchase rate continues to target in 30% and is expected to price by 5%.The economic assumptions are changed. It focuses on selling over the counter (51%) stores (30%) and Service delivery (19%) without using a channel. Sold through the pavilions, but the promotion is over and channels and the counter instead of shops. Forecast sales in the fourth year approximately 18.7 million, a growth rate of approximately 3 years 20% of the market growth rate. As expected, competition has increased along with that. The slow expansion of distribution channels for selling the company. Aim to increase brand recognition 30% will be sold over the counter (42%) stores (42%) and delivery (16%) without using the channel available to the host rock show, but the promotional products through stores. Counters and the like the third and fourth year, the company plans to open a store in New York to expand the memory means. To all the new products that have less competition. Forecast sales for fifth year, approximately 22.3 million, and a growth rate of approximately 20% from forth year and a market share of approximately 1.4% of the total market value of the target audience in New York. Due of the company aims to increase the brand will be sold over the counter by 35% (43%) stores (43%) and delivery (14%) without using a channel, sold through the booth, but the promotion sales through the stores and counters as same third year and fourth year. The hospital has the product of the hospital itself with and conditions of the payment are only in cash. Because the hospital is cannot identify time to pay debt. If you have to order it over time the contact time in which to do the cutting debt, direct contact with the cover, director of the hospital is a special case. The company's products are ordered from hospital order to our company with a shampoo and conditioner.
In hospitals with the formulations which are good and reliable. The material has been used selection and monitoring of production from the hospital with .The products
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we order it from somewhere else. The company the Department of Medical Sciences the general formula for the herbal products focusing in the research and improve performance by a pharmacist. Company produces a product that distinguishes itself from the general formula and to know the proportion of raw Board. The herbal ingredients used to make. The products perform better than the general formula for the product they have to check the Department of Medical Sciences to confirm the efficacy and safety in use by the. At first, company will produce four types of soap, bar soap, soap, rice bran and pea Noni soap, turmeric soap, a consumer product. The properties of the herbs used by the company which specializes in the manufacture of soap and production standards that are produced maintenance of skin, cucumber cream products, liquid soap, turmeric and facial cleanser. Tamarind is a company in Costa matrix is made of glass. Products other than this our company will select a product to market the outsourcing of producer to produce a quality product in the future.
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Marketing Expense
MARKETING EXPENSE 1 YEAR
ST
JANUARY
FEBUARY
MARCH SELING EXPENSE
APRIL
MAY
JUNE
PROMOTION
1,150
1,150
1,150
1,150
1,150
1,150
ADVERTISING EXPENSE LEAFLET MAGAZINE TOTAL ADS. TOTOL MKT. 700 40,000 40,700 41,850 500 40,000 40,500 41,650 500 40,000 40,500 41,650 500 40,000 40,500 41,650 500 40,000 40,500 41,650 500 40,000 40,500 41,650
MARKETING EXPENSE 1ST YEAR JULY AUGUST SEPTEMBER SELING EXPENSE PROMOTION 1,150 1,150 1,150 1,150 1,150 1,150 OCTOBER NOVEMBER DECEMBER
MARKETING EXPENSE 1ST YEAR PROMOTION LEAFLET MAGAZINE TOTAL ADS. TOTOL MKT. TOTAL 1,150 6200 480,000 486,200 500,000
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MARKETING EXPENSE 2nd YEAR JANUARY FEBUARY MARCH SELING EXPENSE PROMOTION 1,150 1,150 1,150 1,150 1,150 1,150 APRIL MAY JUNE
MARKETING EXPENSE 2
nd
YEAR
TOTAL 1,150 6200 480,000 486,200 500,000
PROMOTION LEAFLET MAGAZINE TOTAL ADS. TOTOL MKT.
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MARKETING EXPENSE 3RD YEAR JANUARY FEBUARY MARCH SELING EXPENSE PROMOTION 1,150 1,150 1,150 1,150 1,150 1,150 APRIL MAY JUNE
MARKETING EXPENSE 3 YEAR PROMOTION LEAFLET MAGAZINE TOTAL ADS. TOTOL MKT.
RD
TOTAL 1,150 6200 480,000 486,200 500,000
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MARKETING EXPENSE 4TH YEAR JANUARY FEBUARY MARCH SELING EXPENSE PROMOTION 1,150 1,150 1,150 1,150 1,150 1,150 APRIL MAY JUNE
MARKETING EXPENSE 4 YEAR PROMOTION LEAFLET MAGAZINE TOTAL ADS. TOTOL MKT.
TH
TOTAL 1,150 6200 480,000 486,200 500,000
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MARKETING EXPENSE 5TH YEAR JANUARY FEBUARY MARCH SELING EXPENSE PROMOTION 1,150 1,150 1,150 1,150 1,150 1,150 APRIL MAY JUNE
MARKETING EXPENSE 5
TH
YEAR
TOTAL 1,150 6,200 480,000 486,200 500,000
PROMOTION LEAFLET MAGAZINE TOTAL ADS. TOTOL MKT.
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Marketing Expense of Verviva cosmetic Inc. can be divided to two main categories are selling expense and advertising expense. Selling expense; Our Company will provide promotion such as buy 1 get 1 free or gift voucher that set limit an expense within 1,150 baht per month. Advertising expense; we want our product to be well-known as fast as possible. So we will distribute leaflets which have image of our products and contact information to people emphasize in January of every years. Another advertising channel is magazine publish because cosmetic products would consumed by girls and they always read fashion magazine .Then we have chosen it to promote our company in this way.
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Chapter 4: Cost of Investment

The Location
The location of company lives in Lat Phrao 87, Separate 23, Klong Chan, Bangkaapi, Bangkok, 10240.
Rent office
20,000 baht per month
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Facilities Layout
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Machine / Tools / Equipment
Equipment
Products
Unit
Price
Total
Computer
25,000
75,000
Telephone
1,000
5,000
Table and Chair
3,000
15,000
Cabinet
1,000
5,000
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Printing
20,000
20,000
Cost of investment
Pre operating cost 1. Landscape We rent building for the owner the owner building take cares every process for our company about document because we know about the owner building. We only paymoney for owner building. It is easy way for our shop to management the building.
2. Telephone installation We need the telephone to order the product and receive the order form the customer. On the other hand we have the mobile phone service for the customer order. The customer can contact our shop from the telephone. We contact with the T&T Company. We need to set up the document for T&T. The document installs the telephone. Normal people are prepaid the document; - Copy ofID cardCertifiedtrue copy - Copy the name of the applicant number, and duly signed. The fee to installs the telephone. T&T installs for our shop. - TheinstallationofcontainerendtostayBlueBox3,350.00THB - VAT 7% 234.50Baht -theBlueBox100.00Baht
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-thewiringinsideapoint320.00Baht Totalcost4,004.50THB Resource:http://www.ttt.co.th/en/index.php?option=com_content&view=articl e&id=81&Itemid=70
Internet installation High speed internet price begin 590 per month. This price is not cover the vat 7%. High speed internet has many kinds for the customer choose to
appropriation. On the hard work of our business chooses Maxnet home service because this service is appropriated with the business. The price is around 790 baths. Maxnet home is not limited time to play and appropriated with home and one computer. Moreover cost is low than another service.
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Pre-operating cost
Pre-operating cost Developing product advising cost Registration cost Bottle packaging cost Brand logo design cost Establishment cost Telephone installation cost Internet installation cost Shop decoration Counter sale decoration Total Baht 150,000 5,000 50,000 20,000 20,000 4,000 790 300,000 100,000 649,790
Tools and equipment cost

Tools and equipment cost Price per unit Unit Total Depreciation per month 75,000 20,000 15,000 5,000 5,000 120,000 1,250 333.33 250 83.33 83.33 2,000
Computer Printing Table and Chair Telephone Cabinet Total
25,000 20,000 3,000 1,000 1,000
3 1 5 5 5
Vehicle
Using period Car Motorcycle Total 5 5 Unit 1 2 Price per unit 300,000 30,000 Total 300,000 60,000 360,000 Depreciation 5,000 1,000 6,000
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Depreciation Expense
YEAR 1 Computer Printing Table and Chair Telephone Cabinet Car Motorcycle JAN 1,250 333.33 250 83.33 83.33 5,000 1,000 FEB 1,250 333.33 250 83.33 83.33 5,000 1,000 MAR 1,250 333.33 250 83.33 83.33 5,000 1,000 APR 1,250 333.33 250 83.33 83.33 5,000 1,000 MAY 1,250 333.33 250 83.33 83.33 5,000 1,000 JUN 1,250 333.33 250 83.33 83.33 5,000 1,000
YEAR 1 Computer Printing Table and Chair Telephone Cabinet Car Motorcycle
JUL 1,250 333.33 250 83.33 83.33 5,000 1,000
AUG 1,250 333.33 250 83.33 83.33 5,000 1,000
SEP 1,250 333.33 250 83.33 83.33 5,000 1,000
OCT 1,250 333.33 250 83.33 83.33 5,000 1,000
NOV 1,250 333.33 250 83.33 83.33 5,000 1,000
DEC 1,250 333.33 250 83.33 83.33 5,000 1,000
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JAN 1,250 333.33 250 83.33 83.33 5,000 1,000
FEB 1,250 333.33 250 83.33 83.33 5,000 1,000
MAR 1,250 333.33 250 83.33 83.33 5,000 1,000
APR 1,250 333.33 250 83.33 83.33 5,000 1,000
MAY 1,250 333.33 250 83.33 83.33 5,000 1,000
JUN 1,250 333.33 250 83.33 83.33 5,000 1,000
JUL 1,250 333.33 250 83.33 83.33 5,000 1,000
AUG 1,250 333.33 250 83.33 83.33 5,000 1,000
SEP 1,250 333.33 250 83.33 83.33 5,000 1,000
OCT 1,250 333.33 250 83.33 83.33 5,000 1,000
NOV 1,250 333.33 250 83.33 83.33 5,000 1,000
DEC 1,250 333.33 250 83.33 83.33 5,000 1,000
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JAN 1,250 333.33 250 83.33 83.33 5,000 1,000
FEB 1,250 333.33 250 83.33 83.33 5,000 1,000
MAR 1,250 333.33 250 83.33 83.33 5,000 1,000
APR 1,250 333.33 250 83.33 83.33 5,000 1,000
MAY 1,250 333.33 250 83.33 83.33 5,000 1,000
JUN 1,250 333.33 250 83.33 83.33 5,000 1,000
JUL 1,250 333.33 250 83.33 83.33 5,000 1,000
AUG 1,250 333.33 250 83.33 83.33 5,000 1,000
SEP 1,250 333.33 250 83.33 83.33 5,000 1,000
OCT 1,250 333.33 250 83.33 83.33 5,000 1,000
NOV 1,250 333.33 250 83.33 83.33 5,000 1,000
DEC 1,250 333.33 250 83.33 83.33 5,000 1,000
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JAN 1,250 333.33 250 83.33 83.33 5,000 1,000
FEB 1,250 333.33 250 83.33 83.33 5,000 1,000
MAR 1,250 333.33 250 83.33 83.33 5,000 1,000
APR 1,250 333.33 250 83.33 83.33 5,000 1,000
MAY 1,250 333.33 250 83.33 83.33 5,000 1,000
JUN 1,250 333.33 250 83.33 83.33 5,000 1,000
JUL 1,250 333.33 250 83.33 83.33 5,000 1,000
AUG 1,250 333.33 250 83.33 83.33 5,000 1,000
SEP 1,250 333.33 250 83.33 83.33 5,000 1,000
OCT 1,250 333.33 250 83.33 83.33 5,000 1,000
NOV 1,250 333.33 250 83.33 83.33 5,000 1,000
DEC 1,250 333.33 250 83.33 83.33 5,000 1,000
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JAN 1,250 333.33 250 83.33 83.33 5,000 1,000
FEB 1,250 333.33 250 83.33 83.33 5,000 1,000
MAR 1,250 333.33 250 83.33 83.33 5,000 1,000
APR 1,250 333.33 250 83.33 83.33 5,000 1,000
MAY 1,250 333.33 250 83.33 83.33 5,000 1,000
JUN 1,250 333.33 250 83.33 83.33 5,000 1,000
JUL 1,250 333.33 250 83.33 83.33 5,000 1,000
AUG 1,250 333.33 250 83.33 83.33 5,000 1,000
SEP 1,250 333.33 250 83.33 83.33 5,000 1,000
OCT 1,250 333.33 250 83.33 83.33 5,000 1,000
NOV 1,250 333.33 250 83.33 83.33 5,000 1,000
DEC 1,250 333.33 250 83.33 83.33 5,000 1,000
YEAR 5 Computer Printing Table and Chair Telephone Cabinet Car Motorcycle Total Depreciation
2012 15,000 4,000 3,000 1,000 1,000 60,000 12,000 96,000
2013 15,000 4,000 3,000 1,000 1,000 60,000 12,000 96,000
2014 15,000 4,000 3,000 1,000 1,000 60,000 12,000 96,000
2015 15,000 4,000 3,000 1,000 1,000 60,0000 12,000 96,000
2016 15,000 4,000 3,000 1,000 1,000 60,000 12,000 96,000
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Chapter 5: Operations Cost

Product Characteristic
Verviva Cosmetic Inc. is glad to present the products of herbal ingredients cosmetic which can make-up personality with a good care service. Our customers would feel relax and more confident with natural product.
There are 5 main products that our company provides: Soap Shampoo Hair Conditioner Skin care cream Face cream
There are 5 main services that our company provides: Distribute cosmetic Beauty consultant Make up
There are many type and style that appropriate to customers as follow:
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Soaps No. Product Names product/ and weight 1

Turmeric Soap 100g / bar Long 5 cm, wide 8 cm and high 3 cm clean face with brighten
Proproties size
smoothen, without allergy
Turmeric soup 100g / bar Long 5 cm, wide 8 cm and high 3 cm
Maintenance
skin
to
smooter, brighter skin and rash symptoms
Mangos /Bar 100 g
teen soap
Reduce dark spots and dull skin. To relieve the rash. And always
Long 5 cm, wide 8 cm and high 3 cm
smooth, bright for all skin types.
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Noni Soap 100 g/bar Long 5 cm, wide 8 cm and high 3 cm
Rich in anti-oxidative, substances from nature, Deterioration Skin
Aloe Vera soap 100 g /bar Long 5 cm, wide 8 cm and high 3 cm
Restore the moisture balance of the skin, remove scarring and
treaments skin diseases and rash of allergic.
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Skin care cream
No . 1
product
product
Propoties
Rice bran body lotion 350 ml/ bottle
Formula Enriched with rice bran oil keeps the skin smooth and soft. Apply body lotion after every bath and skin health.
Sweet berry body lotion 400ml/ bottle
Acerola extracts to help restore natural balance. feeling the skins moisture Leaving moist it
while
relieving dryness and roughness. The natural vitamin C helps protect agianst free rasicals ans exfoliate dead skin cells, revealing a smooth and supple skin.
Coconut oil body Lotion 400ml/ bottle
Cold-pressed coconut oil formulations. Maintain and protect skin. The smooth, soft skin. Dry as dust.
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UV Whitening Sunscreen Lotion Apricot 500 ml/ bottle with Aloe-vera
Protects skin from UVA UVB with natural
extracts of aloe vera. Mallory Berry and rails. Nourish your skin
smooth and soft. With white skin
Yoyurt and milk body lotion 350 ml/bottle
Enriched concentrated yogurt. Body Lotion
of
Yogurt
concentrated. Pink skin and white skin. Natural skin whitening and body soft and smooth with a touch of cream. Can be absorbed into the skin easily without leaving a sticky residue
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Face cram
No. product 1
product
Turmeric cream (the night) 250 g/ bottle
Propoties
help reduce inflammation and blockage of fat under the skin, acne, freckles, skin rashes, inflammatory acne lesions, rough spots
Papaya cream 250g/ bottle
keeps the skin clean and smooth. Prevents dark
spots, freckles and retain moisture. And help reduce cellulite and smooth skin is rich in vitamins C and E have antioxidant
properties make the skin smoother, brighter that is suitable for all skin types
Cucumber cream 250 g/bottle
night
Containing amino acids in high doses. The B C,
vitamins,
vitamin
vitamin E and minerals. Help heal skin that is rough to smooth it.
Suitable for sensitive skin and have moisture.
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Rice bran cream 250 g/ bottle
Rich in vitamins B and E nourish the skin youthful.
Shampoo
No . 1
product
product
Propoties
Anchan flower aloevera Herbal shampoo Size 120 ml. Ingredint: Sapindus emarginatus Wall
Herbal Shampoo made from natural herbs. Gives hair a thick nourishing look. Prevents dandruff and repairs damage hair concentrated formula to refresh and Stimulates
blood circulation , prevent hair loss.
(Soap Nut Tree), Anchan flower, Aloe vera ,Carlo La Nin ,And herbs that can be used instead of chemical ,Chinese herbal mixture.
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Kaffir Lime Herbal Shampoo Jasmine Rice Perfume/ 250 ml. Ingredient: Kaffir Lime,Coconut oil,Ginger and other herbs.
Kaffir
Lime
Herbal
Shampoo - Jasmine Rice Aroma.For Normal to Dry Hair. Benefit: Hair cleansing and with
norisihing
Kaffir lime,Vitamin E and Vitamin B5.
Hydrocotyie and butterfly pea herbal shampoo/300 ml Ingredients: Hydrocotyle,
It was consisted of soft and thick
for your hair efficiently. Prohibited the hair drop, itchy hair, scurf and
butterfly, arovela, impmoea, momordica and other natural herbs
build the new hair, skin head cleaning
Thai herbs provide the black everyday cleaning hair,
Lime Herbal Shampoo (Tea Tree Perfume)/250 ml.
Hair
cleansing with
and Kaffir
norishing
lime,Vitamin
E,Vitamin
B5,for loss hair and help Ingredient: Kaffir oil,Ginger,King other herbs. lime,Coconut of Bitter and to reproduce a new hair.
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VERVIVA Long Hair Shampoo
Helps restoring hair to its natural, smooth, shiny and
Active
Ingredient:
key
healthy look. making hair soft and silky.
component. Lauryl Glucoside Ginseng Extract, Silk Protein, Collagen
Very gentle to your hair and scalp.
Can be used everyday.
Hair conditioner:
No . 1.
product
product
Propoties
Olive oil & Hom Nin rice conditioner Size 300 ml. Indredient : Hom Nin rice with olive oil, cetyl alcohol, fragrance. carsoquat CT.
This creamy olive oil with Hom Nin rice conditioner is specially hairs made to
enrich
health. for
Formulation protecting hair
losses,
getting dry and brittle apply to wet hair,
Bronidox-L
massage, comb and rinse.
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2.
Kaffir Lime with Rice Washing Water Hair Treatment Ingredent:
Help make hair heavy, crisp and dry conditions back to smooth and
shine. Decrease dandruff and reduce hair loss.
3.
Hydrocotyie and butterfly pea herbal conditioner Herb 100 % Natural Extract Ingredient: Hydrocotyle,
It was consisted of soft and thick for your hair efficiently. Prohibited the hair drop, itchy hair, scurf and build the new hair, skin
butterfly, arovela, impmoea, momordica and other natural herbs 250 ml/ bottle
head cleaning Thai herbs provide the black hair, everyday cleaning.
Hair Treatment Oi/100 ml Ingredients: Coconut Oil,Sesame Oil,Olive Oil,Centella Asiatica,Ginger,Kafirr Lime,Lemongrass
Apply with hair before cleansing by Shampoo
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Hair
Conditioner
(Sensual
Hair Nourishing, Control balance of oil, Enrich with Vitamon E, Vitamin B5 and Coconut Oil. Safe.
Perfume) 300 ml/ bottle Active Kaffir Centella lime, Ingrdients: Lemongrass, Ginger,
Asiatica,
Coconut Oil, Vitamin E and Vitamin B5
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Production / Service Process
Department of Medical Science
Packaging Producer and Producer of extract Thai herb
Soap Factory and Cosmetic Factory
Research and Develop the product
Purchasing Manager
Random for test the properties of chemical
Check to clearness of packaging
Marketing
Check and Entrance to the warehouse
Distributors
Counter to sell the product
VERVIVA Shop
Delivery
Thick Line: Moving the material or product Dash Line: Exchange the information
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Packaging Process Packaging can be divided into 2 types 1. Plastic bottle that will use in packaging shampoo, conditioner, body lotion, facial foam, and liquid soap. Its packaging cost is around 40% of production cost. 2. Paper box that will use for packaging soap. Its packaging cost is around 1.50 2.00 baht per box. For both 2 packaging types, we order from manufacturing (outsource) and this rate have to order more than 20,000 pieces, including plastic bottle and paper box. Then it will bring it to the production manufacturing by our own car, and after that we will bring the finish goods back to office in Bangkok because we have to check the quality of products before we distribute to shops in Mall.
Quality Product When finish goods arrived at the office, the pharmacy of our company will random check some finish goods for checking the quality of the product by checking the normal characteristics of product that are good packaging design, color, and smell. All of these things have to meet the standard that we already order. After that, pharmacy will check the quality of ingredients of product
Inventory policy The company has inventory policy by defining amount of packaging 20,000 units per each of order. If reduced levels of production in each order that in early will 5,000 units per product will be a new order. If in the future, there are orders of product that higher our company will increase the minimum level equal to the number of orders for the next time for maintain the amount of packaging low and enough to use regularly. The inventory produces the new products when products left the level of forecast sales 1 month of those product. In early will equal 2,000 units per product. The reason of our company that still lowest level at 1 month is we spend time produce products about 2
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weeks. If our company has problems about production delays, we can sale product inventory about 2 weeks in order to solve problem goods in short supply. If the future, increasing of sale per month is higher, the minimum in inventory will increase. And the quantity of order in lowest level is 5,000 units of products in a month, but the following 1 month the product can be sold more than 10,000 units. The purchase will increase. In addition, the company's products have ingredients from nature. It did not keep for long time (1 year), so if you have stored 9 months, we have a policy to push exports by selling sale or a premium to accelerate products out of stock. Shipping Our Company has the vehicle for transport and distribution two types; 1 truck and 2 motorcycles to trucks for transport packaging from company to manufacture and bring products to finished products back to us and bring products shipped to the stores of company. The reason that our company use only one truck because the amount of goods transported, there is not much. Therefore, the only one is enough. For motorcycle have for delivery service to customers who direct sale from telephone and deliver products to stores in the absence of a smaller number of products. The company expects there are order form direct sale more from show products in the exhibition to promote our products and increase customer form direct sale more.
Design and product development In earlier, our production will run from Bangkok Hospital Abhaibhubate for shampoo and conditioner hair. It focuses on different design of packaging building products company recognized brand. We improve form standard formula of the control of the Department of Medical Sciences. Products for skin, bar soap, liquid soap, facial cleanser, the company has launched a new brand. Need to build trust with consumers by the way. Therefore, the company use the famous of the hospital is a part of produce, because we can get product quality. In another hand we can build trust from consumers.
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Supply chain Supplying the raw materials, production and delivery, first we will purchase packaging the minimum in each 20,000 units both packaging from paper and plastic bottles. The packaging factory is located in Bangkok. So, the delivery convenient for a period of produce packaging about 1 week and the packaging is to keep the inventory of raw materials, before send to each manufacturer such as Bangkok Hospital Abhaibhubate that produce hair shampoo, hair conditioner and herbal tea. And STS company produce soap bar and Neocostmate company produce soap and skin care cream are the order of production in the lowest of 5,000 units, which will have a production time of approximately 2 weeks by truck of company will bring packaging to each manufacturer and get back on product that completely by receive and send products with the hospital about 1 time to week (on Saturday). Because the traffic is not congested and availability of trucks to deliver products to each places. In another 2 companies is located in the metropolitan area. So it takes a little time to convenience receive and send the products. When receive products that completely back to inventory, we will check the quality of products by development department will make random selection products to order. The inspection is 0.1 % of the production order to check the quality of product to standard of company that require to each manufacturer determine or not by inspect to the appearance, color, flavor, packaging and testing of compounds that are produced by chemical analysis to standard that set. The inspection will be made, when products arrived to company. We will check the date of delivery to check the quality of the product. After products are complete will be distributed to the various distribution channels such as companys shop counters in department stores, Exhibition booth and delivered to consumers by ordering by phone and in the shop and the counter be delivered by truck of Company. Shops have the store inventory is estimated for sales 5 days because in the shop have limit area and will shipping products when inventory reduce level 2 days for sale. The delivery products to the store, it did not take long time, but the truck must be provided to delivery so that the inventory levels are held over 2 days for delivery for the 1 day behind the counter in the company stores are only 3 days and add order for 1 day because there is less space. If shop and counters need add order products that store up on extra.
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Moreover,
motorcycles can be used to send the first shipment of the phones will be used as vehicles for delivery orders are coming in daily. The time for delivery to the consumer will be shipped within 1 day, if ordered in the morning will receive products before 6 pm. If there are orders in the afternoon will be delivered before 12.00 pm. in the next day. Because our product no need to use immediately, so do not plan to ship after ordering less than 1 hour it make the cost of delivery is very high up. Although, on a ship in a day make available total orders on the same route can help save costs. But, if customers want to get faster as a special case, our company will be delivered but have service charge 20 baths. In the part of communication and information to get feedback from consumers, store and counters in department store, we will bring information to marketing department for plan to sell product sales forecast in the next month and improve the quality of products in various fields, which is the query and the question of customers feedback from customers to evaluate the market. If the suggestion is helpful for improving the product, the development products can improve the next generation of products on the sales forecast in the next month and will be delivered to the order to determine whether there are enough inventories to sell in the next month. If the lack of a sales boost as it will buy back up our products to keep up with sales in the next month as well as dealing with the manufacturer to the average order in the next month in advance to make manufacturers can provide raw materials to produce early results in the order in the next without delays or others problems shall be resolved. Moreover, our company has a policy; store up raw material to inventory is estimated at 2,000 units sold a month in each product before order produce production about 2 weeks. Company stored up inventory for about a month for prevent cannot be delivered as scheduled or be delayed. The company also sold products to compare at least 2 weeks, the amount is not excessive. If the delivery of products without any problems, it can reduce the inventory down to just the 3 weeks before new order produce product will help to reduce inventory and reduce the cost of storage. In amount of each order will use the minimum order is 5,000 units for make inventory to a minimum, but if sold more than 5,000 per month, it is necessary to adjust the volume of orders appropriately is the number of products that can be sold out in a month to lower the volume of orders. When products are delivered to the remaining product back in stock for about 2 weeks, the item is emergency (Safety stock) for the order up at the hospital determine is
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10,000 units per each types. The hospital need to limit production for their own products. But 2 manufactures will be up to 30,000 units per month which must be notified in advance. If order produce product is higher than normal because of the manufacturer must be prepared to back up the production of the product to the company without prior notification may be made to produce. The manufacturer produce product to multiple companies. If our company did not notice that they may be produce product not have enough to demand. However, manufacturers are not far away, we can gradually get produced no need to get total. If manufacturers cannot produce product in schedule, purchasing department will check the inventory levels at the end of the month for determine the number of existing and products and volume of sales in each products which turnover in high sales and what kind of product that turnover of less than the forecast. Our company will send the data back to the marketing department to study and set plan to stimulate the sale of products or improve the product. If not resolved, it will be replaced another product by product development department will receive data form marketing department for improve product to meet with need of customer demand even more or develop new products that meet the needs of the market to respond with our customers better. When the packaging is reduced to less than the amount of orders per month, it will do the packing order. In order to increase the minimum number of 20,000 units, which will take approximately 2 weeks of production, will not need to store an excessive amount of packaging. The amount to more than 20,000 units in each time, there is no need to order a period of two weeks, the order in quantities of 20,000 units is enough. Unless can sell products no more than 40,000 units per month that the sales volume of more than forecast. So, order packaging not have problem of producing packaging because of material do not depend on the season and the capacity surplus. If not enough, we can easily buy from other factories because the packaging can be produced generally and there are factories that can order product of packaging in many orders in Bangkok. When we gathering information from various departments into the process then. We can plan to keep inventory and order in the amount of the costs were minimal and there is always timely distribution of the various manufacturers can be prepared, and the capacity to be able to response to the order of the Company desired.
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Logistics Management
Logistics management is the governance of supply chain functions. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees, the logistics function also includes customer service, sourcing and procurement, production planning and scheduling, packaging and assembly. Logistics management is part of all levels of planning and execution -- strategic, operational and tactical. It is an integrating function, which coordinates all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology.
Customer Service
Customer service is activities of customers that they can touch service, they have satisfied, and impression. Customer service is impact on other activity of logistics, so is the point makes customer need and motivation on other activities.
Return goods
These are support activities to return product to supplier, because some products are defective or wrong. Moreover, the return packaging and equipment reused again. Distribution Center Distribution center is large warehouse have operating system to customers in region. Location Planning Must to be selected and planned in a factory or warehouse location for connected activity of logistic. If activities to be changing it have affect the cost of travel and time of delivery product to customer.
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Transportation and traffic

We are going to have two ways of transportation; in and out. In it means that, we import the products from the suppliers. We utilize the freight forwarder companies to carry our products from the places of our suppliers. Our company is focusing on the vehicle. Transport and distribution for two types of small truck, a 4-wheel drive vehicles 2 cars and motorcycles will be focusing on the truck. Transport packaging for the company to manufacture and import. Finished products back to the company and the products shipped to the stores. We use one truck because the amount of goods transported there is not much. Therefore, the only one truck can support sale effectively.
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Warehousing & Inventory Control

The best control level of inventory must be having product enough for customer all the time. The effective inventory control and management must be able to fulfill your order and with less damage. Our business does both retails and wholesales the products. So warehousing and inventory control is quite important. We have to order the products in a large amount but we have to plan for the amount of the products that we will order that not too much and not too less according to the demand of the customers in order to provide well qualified products to them because some products will be less quality, if store for long time. So storing in the right methods and duration is very important. We store the products in our own warehouse in the up stair of our shop. This will help us to have easier way to move them or to refill them, if they run out in the display.
Material Handling and Transportation

The process of moving goods use energy-saving equipment that safety and speed of movement and Know to range of movement
Facility Management
Facility management include there aspects: infrastructural facility management, technical facility management and commercial facility management. Infrastructural management: Intelligent, graphically-supported area information system with userfriendly navigation and comprehensive evaluation functions; Efficient controlling tool to ascertain the quality and cost of cleaning, with information pertaining to areas not requiring cleaning, cleaning cycle, windows and special areas, specifications and expense ratios; Administration of all locked components, key check-in/-out, changes in key status as well as information on key inventory and key reservation system. Technical facility management: Systematic order management for incidents, defects, repair and planned maintenance; Practice-oriented planning tools with
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structured representations of complex building services facilities in compliance with VDMA regulations; Legal documentation of all measures carried out on medical devices. Commercial facility management: Valuation of buildings and properties using procedures in accordance with existing law - amongst others, as a basis for the NKF reform on the efficient management in public administration; Administration of all relevant rental contract data as the basis for calculating rent and incidental costs with usage-based cost allocation function. All of the facility in our shop will be well-done management. Everything always has to be look after and maintain in the usable condition at all time. Every piece of equipment has to be changed over duration. Because the service business must provide the equipments to serve customers need and we try to make the highest satisfaction from customers at first time.
Operating cost
Operating cost Inventory Shampoo 20 baht Conditioner 24 baht Bar soap 6 baht Liquid soap 20 baht Face care 17 baht Skin care 24 baht Lotion 20 baht Raw material Packaging cost Plastic bottle is product use plastic Shampoo 8.00 baht Conditioner 9.60 baht Liquid soap 8.00 baht Face care 6.80 baht Skin care 13.60 baht Lotion 8.00 baht Carton is product use carton Bar soap 1.50 baht
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Manufacturing cost In each product calculate in manufacturing which have data as following; Shampoo 20 baht 300 cc. Conditioner 24 baht 300 cc. Bar Soap 6 baht 100 g. Liquid soap 20 baht 250 cc. Face care 17 baht 50 g. Skin care 24 baht 40 g. Lotion 20 baht 150 g. Transport cost Shampoo 0.84 baht Conditioner 1.01 baht Bar soap 0.32 baht Liquid soap 0.84 baht Face care 0.71 baht Skin care 1.43 baht Lotion 0.84 baht Total Cost of goods sold 97322.58
Direct labor Salary of employee Managing director Marketing manager Financial manager Purchasing manager Pharmacist Employee Overhead Utilities Building Rental Counter sale rental
20,000 baht 15,000 baht 15,000 baht 15,000 baht 10,000 bath 7,000 bath 17,000 bath 20,000 baht 30,000 baht
Total Administration Cost
149,000
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Chapter 6: Administration Cost

Management Analysis
Administration Cost (Electricity, Telephone, Fax Salary, etc.) 1. Utilities expense per Month 1.1 Electricity expense per month Rate of electricity price is as following:
Energy (baht/kilowatt) 3.1.1 More than 69 Kilovolt 3.1.2 22-33 Kilovolt 3.1.3 Less than 22 Kilovolt 175.70 196.26 221.50
Demand Forecast (Baht/Units) 1.6660 1.7034 1.7314
Time of Use Rate: TOU
Demand Forecast Service price / month (baht/kilowatt) (Baht/Units ) (baht/month) Peak Peak Off Peak Energy 3.2.1 More than 69 Kilovolt 3.2.2 22-33 Kilovolt 3.2.3 Less than 22 Kilovolt 74.14 132.93 210.00 2.6136 2.6950 2.8408 1.1726 1.1914 1.2246 228.17 228.17 228.17
Peak: Monday Friday 09.00 am - 22.00 am. Off Peak: Monday- Friday 10.00 pm. - 09.00 am. and Saturday Sunday and holiday
(Source: http://www.eppo.go.th/power/pw-rate-PEA.html#3) 1.2 Water expense per month
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Level of water used Cum./month
Connection
Official and Small Business
baht/cum. satang/liter baht/cum. satang/liter Low Level Rate 50 Baht 0 - 10 11 - 20 21 - 30 31 - 50 51 - 80 81 - 100 101 - 300 301 - 1,000 1,001 - 2,000 2001 - 3,000 >3,000 10.20 10.95 13.20 15.20 16.45 16.95 1.020 1.095 1.320 1.520 1.645 1.695 Low Level Rate 100 Baht 11.45 14.20 15.45 16.45 16.85 16.95 17.05 17.15 17.25 17.35 17.45 1.145 1.420 1.545 1.645 1.685 1.695 1.705 1.715 1.725 1.735 1.745
Value added Tax is not included.
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1.3 TOT Internet and Telephone expense per Month TOT hi-speed internet Jet Pack (9 Mb) Internet Expense Telephone Expense Maintenance cost Fax Totals Administration cost 2.1) Offices Decoration 2.2) Offices Equipment 150,000 baht 120,000 baht 890 baht/month 500 baht/month 100 baht/month 200 baht/month 1,690 baht/month
Repurchasing equipment every 2 years
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Direct Labor cost 1. General Manager 2. Marketing Manager 3. Financial Manager 4. Purchasing Manager 5. Pharmacy 6. Staff 20,000 baht 15,000 baht 15,000 baht 15,000 baht 10,000 baht 7,000 baht
The rate of salary increases to about 5% per year Offices for rent Utilities cost 20,000 baht (Monthly) 17,500 baht (Monthly)
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Conclusion for chapter 4-6 The term technical feasibility establishes that the product or service can operate in the desired manner. Technical feasibility means achievable. This has to be proven without building the system. The proof is defining a comprehensive number of technical options that are feasible within known and demanded resources and requirements. These options should cover all technical sub-areas. Also, technical feasibility study is an excellent tool for trouble-shooting and longterm planning. In some regards it serves as a flow chart of how our wedding company. We should also not strictly rely on feasibility study conclusions to impress an investor. Our company Verviva cosmetic Inc. produces natural cosmetic products which take a good care costumers appearance. In this chapter, there is information of product characteristic that can show how we get profit and how to create competitive advantage include the cost to run our business. The 5 main products that our company provided are soap, shampoo, and hair conditioner, skin care cream and facial cream. Also, there are many formulas that can chose by their own favorite and it is quite sure about our products can make a different feeling to everyone who used .Anyway, within our shop costumers can make-up their appearance because we dont just sell products only we also have beauty consultant and make up service. We are not produce the products by own but we order from related product factory when our company receive products we would check quality of them. Every piece must be the best quality that we are well-planned about manufacturing management process so customers must loyal to our brand.
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Chapter 7 Financial Analysis

Long Term Investment For the capital investment, our project has a millionaire who leaves far away from Thailand. This project requires the capital investment 3 million baht by come from one investor that is a millionaire. This project is requires a return on investment (ROI) 20% every year. Payment of accounts receivable Policy Our policy will provide the account receivable credit 60 days and sales of retail sales and service delivery we will provide only cash paid. The Inventory Storage Policy Our policy is requiring storage inventory that suit with the sale for 30 days Important Accounting Policy 1.) Accrual Basis 2.) Depreciation Expense and deduction cost, our company cut the depreciation cost of fixed assets by Office Equipment Transportation 5 5 Year Year
3.) The inventory valuation, our company values its inventories by the computation of cost (weighted average) or information. Net trade is expected to be received, whichever is lower and accounting methods for inventory is first in first out (FIFO) 4.) Cash and cash equivalents. Cash on hand at the cash used to pay for purchases and for general purposes. The short-term investments with high liquidity and are ready to change in cash, of course, when the regulations within three 3 months or less to the risk and value is minimal.
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5.) The offices equipment to the offices stated at cost less accumulated depreciation. 6.) Dividend policy is paid the dividend is payable in 4 th year by 75 percent of the net bundle. 7.) Rate of income tax equal to 30% per year, the company is focusing on the sensitivity of the income tax that remembering the money to pay the tax.
Assumptions in preparing financial statements The sales forecast will consider the following factors. 1.) A number of distribution channels of distribution.
2012 Shop Counter Sale Boot Promotion Mail Order/Delivery 1 2 1 2 2013 2 2 1 2 2014 3 4 1 3 2015 3 5 0 3 2016 5 5 0 3
2.) Number of customers expected to buy products in a way that samples a day and that amount each customer spent on the acquisition time of each channel.
Customer per day Shop Counter Sale Boot Promotion Mail Order/Delivery 12-25 15-27 20 6-9 Purchase amount(Baht) 220-230 220-230 220-230 300-350
The sales are estimated each year from it. The customer purchase products in a distribution channel sales. 3.) Seasonal factors because the product is a consumer product which was used on a regular basis. The impact of seasonal factors, the estimates take into account sales, the impact of increased consumption during different then.
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VERVIVA COSMETIC, Inc. FINANCIAL PROJECTION STATEMENT OF INCOME
1 YEAR Revenues Sale revenue Total Revenues Cost and expenses Cost of goods sold Administrative Expenses Depreciation Total cost and expenses Earnings before interest and tax Income before tax Income tax 30% Net income Retain earning
ST
JAN
FEB
MAR
APR
MAY
JUN
293,200 293,200
293,200 293,200
293,200 293,200
293,200 293,200
293,200 293,200
293,200 293,200
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
ST
JUL
AUG
SEP
OCT
NOV
DEC
293,200 293,200
293,200 293,200
293,200 293,200
293,200 293,200
293,200 293,200
293,200 293,200
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
97,322.58 149,000 8,000 254,323 38,877 38,877.42 11663.226 27,214.19 27,214.19
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2ND YEAR Revenues Sale revenue Total Revenues Cost and expenses Cost of goods sold Administrative Expenses Depreciation Total cost and expenses Earnings before interest and tax Income before tax Income tax 30% Net income Retain earning
JAN
FEB
MAR
APR
MAY
JUN
904,400 904,400
904,400 904,400
904,400 904,400
904,400 904,400
904,400 904,400
904,400 904,400
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
2ND YEAR Revenues Sale revenue Total Revenues Cost and expenses Cost of goods sold Administrative Expenses Depreciation Total cost and expenses Earnings before interest and tax Income before tax Income tax 30% Net income Retain earning
JUL
AUG
SEP
OCT
NOV
DEC
904,400 904,400
904,400 904,400
904,400 904,400
904,400 904,400
904,400 904,400
904,400 904,400
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
97,322.58 149,000 8,000 254,323 650,077 650,077.42 195023.226 455,054.19 455,054.19
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RD
JAN
FEB
MAR
APR
MAY
JUN
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
RD
JUL
AUG
SEP
OCT
NOV
DEC
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
1,294,500 1,294,500
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
97,322.58 149,000 8,000 254,323 1,040,177 1,040,177.42 312053.226 728,124.19 728,124.19
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TH
JAN
FEB
MAR
APR
MAY
JUN
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
TH
JUL
AUG
SEP
OCT
NOV
DEC
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
1,556,700 1,556,700
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
97,322.58 149,000 8,000 254,323 1,302,377 1,302,377.42 390713.226 911,664.19 911,664.19
95 | P a g e
TH
JAN
FEB
MAR
APR
MAY
JUN
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
TH
JUL
AUG
SEP
OCT
NOV
DEC
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
1,860,000 1,860,000
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
97,322.58 149,000 8,000 254,323 1,605,677 1,605,677.42 481703.226 1,123,974.19 1,123,974.19
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VERVIVA COSMETIC, Inc. FINANCIAL PROJECTION STATEMENT OF CASHFLOW
1 YEAR Cash Flow from Operations Net Income Depreciation Tax payable Net Cash Flow from Operations Pre-Operating Equipment and Vehicle Net Cash from Investing Invest from investor Net Cash Flow from Financing Change in Cash Cash Beginning of year Cash End of year
ST
JAN 27,214.19
FEB 27,214.19
MAR 27,214.19
APR 27,214.19
MAY 27,214.19
JUN 27,214.19
8,000 11,663
46,877.42 -649,790 -480,000 -1,129,790 3,000,000 3,000,000 1,917,087.420 0 1,917,087.42
8,000 11,663
46,877.42
8,000 11,663
46,877.42
8,000 11,663
46,877.42
8,000 11,663
46,877.42
8,000 11,663
46,877.42
46,877.420 1,917,087.42 1,963,964.84
46,877.420 1,963,964.84 2,010,842.26
46,877.420 2,010,842.26 2,057,719.68
46,877.420 2,057,719.68 2,104,597.10
46,877.420 2,104,597.10 2,151,474.52
ST
JUL
AUG
SEP
OCT
NOV
DEC
27,214.19 8,000 11,663 46,877.42
27,214.19 8,000 11,663 46,877.42
27,214.19 8,000 11,663 46,877.42
27,214.19 8,000 11,663 46,877.42
27,214.19 8,000 11,663 46,877.42
27,214.19 8,000 11,663 46,877.42
46,877.420 2,151,474.52 2,198,351.94
46,877.420 2,198,351.94 2,245,229.36
46,877.420 2,245,229.36 2,292,106.78
46,877.420 2,292,106.78 2,338,984.20
46,877.420 2,338,984.20 2,385,861.62
46,877.420 2,385,861.62 2,432,739.04
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2ND YEAR Cash Flow from Operations Net Income Depreciation Tax payable Net Cash Flow from Operations Pre-Operating Equipment and Vehicle Net Cash from Investing Invest from investor Net Cash Flow from Financing Change in Cash Cash Beginning of year Cash End of year
JAN
FEB
MAR
APR
MAY
JUN
455,054.19 8,000 195,023 658,077.42 -649,790 -480,000 -1,129,790 3,000,000 3,000,000 2,528,287.420 0 2,528,287.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
658,077.420 2,528,287.42 3,186,364.84
658,077.420 3,186,364.84 3,844,442.26
658,077.420 3,844,442.26 4,502,519.68
658,077.420 4,502,519.68 5,160,597.10
658,077.420 5,160,597.10 5,818,674.52
2ND YEAR Cash Flow from Operations Net Income Depreciation Tax payable Net Cash Flow from Operations Pre-Operating Equipment and Vehicle Net Cash from Investing Invest from investor Net Cash Flow from Financing Change in Cash Cash Beginning of year Cash End of year
JUL
AUG
SEP
OCT
NOV
DEC
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
455,054.19 8,000 195,023 658,077.42
658,077.420 5,818,674.52 6,476,751.94
658,077.420 6,476,751.94 7,134,829.36
658,077.420 7,134,829.36 7,792,906.78
658,077.420 7,792,906.78 8,450,984.20
658,077.420 8,450,984.20 9,109,061.62
658,077.420 9,109,061.62 9,767,139.04
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RD
JAN
FEB
MAR
APR
MAY
JUN
728,124.19 8,000 312,053 1,048,177.42 -649,790 -480,000 -1,129,790 3,000,000 3,000,000 2,918,387.420 0 2,918,387.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
1,048,177.420 2,918,387.42 3,966,564.84
1,048,177.420 3,966,564.84 5,014,742.26
1,048,177.420 5,014,742.26 6,062,919.68
1,048,177.420 6,062,919.68 7,111,097.10
1,048,177.420 7,111,097.10 8,159,274.52
RD
JUL
AUG
SEP
OCT
NOV
DEC
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
728,124.19 8,000 312,053 1,048,177.42
1,048,177.420 8,159,274.52 9,207,451.94
1,048,177.420 9,207,451.94 10,255,629.36
1,048,177.420 10,255,629.36 11,303,806.78
1,048,177.420 11,303,806.78 12,351,984.20
1,048,177.420 12,351,984.20 13,400,161.62
1,048,177.420 13,400,161.62 14,448,339.04
99 | P a g e
TH
JAN
FEB
MAR
APR
MAY
JUN
911,664.19 8,000 390,713 1,310,377.42 -649,790 -480,000 -1,129,790 3,000,000 3,000,000 3,180,587.420 0 3,180,587.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
1,310,377.420 3,180,587.42 4,490,964.84
1,310,377.420 4,490,964.84 5,801,342.26
1,310,377.420 5,801,342.26 7,111,719.68
1,310,377.420 7,111,719.68 8,422,097.10
1,310,377.420 8,422,097.10 9,732,474.52
TH
JUL
AUG
SEP
OCT
NOV
DEC
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
911,664.19 8,000 390,713 1,310,377.42
1,310,377.420 9,732,474.52 11,042,851.94
1,310,377.420 11,042,851.94 12,353,229.36
1,310,377.420 12,353,229.36 13,663,606.78
1,310,377.420 13,663,606.78 14,973,984.20
1,310,377.420 14,973,984.20 16,284,361.62
1,310,377.420 16,284,361.62 17,594,739.04
100 | P a g e
TH
JAN
FEB
MAR
APR
MAY
JUN
1,123,974.19 8,000 481,703 1,613,677.42 -649,790 -480,000 -1,129,790 3,000,000 3,000,000 3,483,887.420 0 3,483,887.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,613,677.420 3,483,887.42 5,097,564.84
1,613,677.420 5,097,564.84 6,711,242.26
1,613,677.420 6,711,242.26 8,324,919.68
1,613,677.420 8,324,919.68 9,938,597.10
1,613,677.420 9,938,597.10 11,552,274.52
TH
JUL
AUG
SEP
OCT
NOV
DEC
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,123,974.19 8,000 481,703 1,613,677.42
1,613,677.420 11,552,274.52 13,165,951.94
1,613,677.420 13,165,951.94 14,779,629.36
1,613,677.420 14,779,629.36 16,393,306.78
1,613,677.420 16,393,306.78 18,006,984.20
1,613,677.420 18,006,984.20 19,620,661.62
1,613,677.420 19,620,661.62 21,234,339.04
101 | P a g e
VERVIVA COSMETIC, Inc. FINANCIAL PROJECTION BALANCE SHEET
1 YEAR Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets LIABILITIES AND OWNERS EQUITY Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Retained earning Total Owners Equity Total Liabilities and Owners Equity
ST
JAN
FEB
MAR
APR
MAY
JUN
1,917,087.42 1,917,087.42 649,790 480,000 8,000 1,121,790 3,038,877
1,963,964.84 1,963,964.84 649,790 480,000 8,000 1,121,790 3,085,755
2,010,842.26 2,010,842.26 649,790 480,000 8,000 1,121,790 3,132,632
2,057,719.68 2,057,719.68 649,790 480,000 8,000 1,121,790 3,179,510
2,104,597.10 2,104,597.10 649,790 480,000 8,000 1,121,790 3,226,387
2,151,474.52 2,151,474.52 649,790 480,000 8,000 1,121,790 3,273,265
11,663 11,663
11,663 11,663
11,663 11,663
11,663 11,663
11,663 11,663
11,663 11,663
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
27,214.19 3,027,214.19 3,038,877.420
74,091.61 3,074,091.61 3,085,754.840
120,969.03 3,120,969.03 3,132,632.260
167,846.45 3,167,846.45 3,179,509.680
214,723.87 3,214,723.87 3,226,387.100
261,601.29 3,261,601.29 3,273,264.520
1 YEAR ASSETS Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets LIABILITIES AND OWNERS EQUITY Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Total Owners Equity Total Liabilities and Owners 102 | P a Equity ge
ST
JUL
AUG
SEP
OCT
NOV
DEC
2,198,351.94 2,198,351.94 649,790 480,000 8,000 1,121,790 3,320,142
2,245,229.36 2,245,229.36 649,790 480,000 8,000 1,121,790 3,367,019
2,292,106.78 2,292,106.78 649,790 480,000 8,000 1,121,790 3,413,897
2,338,984.20 2,338,984.20 649,790 480,000 8,000 1,121,790 3,460,774
2,385,861.62 2,385,861.62 649,790 480,000 8,000 1,121,790 3,507,652
2,432,739.04 2,432,739.04 649,790 480,000 8,000 1,121,790 3,554,529
11,663 11,663
11,663 11,663
11,663 11,663
11,663 11,663
11,663 11,663
11,663 11,663
3,000,000 308,478.71 3,308,478.71 3,320,141.940
3,000,000 355,356.13 3,355,356.13 3,367,019.360
3,000,000 402,233.55 3,402,233.55 3,413,896.780
3,000,000 449,110.97 3,449,110.97 3,460,774.200
3,000,000 495,988.39 3,495,988.39 3,507,651.620
3,000,000 542,865.81 3,542,865.81 3,554,529.040
2ND YEAR ASSETS Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets LIABILITIES AND OWNERS EQUITY Current Liabilities Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Retained earning Total Owners Equity Total Liabilities and Owners Equity
JAN
FEB
MAR
APR
MAY
JUN
2,528,287.42 2,528,287.42 649,790 480,000 8,000 1,121,790 3,650,077
3,186,364.84 3,186,364.84 649,790 480,000 8,000 1,121,790 4,308,155
3,844,442.26 3,844,442.26 649,790 480,000 8,000 1,121,790 4,966,232
4,502,519.68 4,502,519.68 649,790 480,000 8,000 1,121,790 5,624,310
5,160,597.10 5,160,597.10 649,790 480,000 8,000 1,121,790 6,282,387
5,818,674.52 5,818,674.52 649,790 480,000 8,000 1,121,790 6,940,465
195,023 195,023
195,023 195,023
195,023 195,023
195,023 195,023
195,023 195,023
195,023 195,023
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
455,054.19 3,455,054.19 3,650,077.420
1,113,131.61 4,113,131.61 4,308,154.840
1,771,209.03 4,771,209.03 4,966,232.260
2,429,286.45 5,429,286.45 5,624,309.680
3,087,363.87 6,087,363.87 6,282,387.100
3,745,441.29 6,745,441.29 6,940,464.520
2ND YEAR ASSETS Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets LIABILITIES AND OWNERS EQUITY Current Liabilities Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Retained earning Total Owners Equity Total Liabilities and Owners Equity
JUL
AUG
SEP
OCT
NOV
DEC
6,476,751.94 6,476,751.94 649,790 480,000 8,000 1,121,790 7,598,542
7,134,829.36 7,134,829.36 649,790 480,000 8,000 1,121,790 8,256,619
7,792,906.78 7,792,906.78 649,790 480,000 8,000 1,121,790 8,914,697
8,450,984.20 8,450,984.20 649,790 480,000 8,000 1,121,790 9,572,774
9,109,061.62 9,109,061.62 649,790 480,000 8,000 1,121,790 10,230,852
9,767,139.04 9,767,139.04 649,790 480,000 8,000 1,121,790 10,888,929
195,023 195,023
195,023 195,023
195,023 195,023
195,023 195,023
195,023 195,023
195,023 195,023
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
4,403,518.71 7,403,518.71 7,598,541.940
5,061,596.13 8,061,596.13 8,256,619.360
5,719,673.55 8,719,673.55 8,914,696.780
6,377,750.97 9,377,750.97 9,572,774.200
7,035,828.39 10,035,828.39 10,230,851.620
7,693,905.81 10,693,905.81 10,888,929.040
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3 YEAR ASSETS Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets LIABILITIES AND OWNERS EQUITY Current Liabilities Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Retained earning Total Owners Equity Total Liabilities and Owners Equity
RD
JAN
FEB
MAR
APR
MAY
JUN
2,918,387.42 2,918,387.42 649,790 480,000 8,000 1,121,790 4,040,177
3,966,564.84 3,966,564.84 649,790 480,000 8,000 1,121,790 5,088,355
5,014,742.26 5,014,742.26 649,790 480,000 8,000 1,121,790 6,136,532
6,062,919.68 6,062,919.68 649,790 480,000 8,000 1,121,790 7,184,710
7,111,097.10 7,111,097.10 649,790 480,000 8,000 1,121,790 8,232,887
8,159,274.52 8,159,274.52 649,790 480,000 8,000 1,121,790 9,281,065
312,053 312,053
312,053 312,053
312,053 312,053
312,053 312,053
312,053 312,053
312,053 312,053
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
728,124.19 3,728,124.19 4,040,177.420
1,776,301.61 4,776,301.61 5,088,354.840
2,824,479.03 5,824,479.03 6,136,532.260
3,872,656.45 6,872,656.45 7,184,709.680
4,920,833.87 7,920,833.87 8,232,887.100
5,969,011.29 8,969,011.29 9,281,064.520
RD
JUL
AUG
SEP
OCT
NOV
DEC
9,207,451.94 9,207,451.94 649,790 480,000 8,000 1,121,790 10,329,242
10,255,629.36 10,255,629.36 649,790 480,000 8,000 1,121,790 11,377,419
11,303,806.78 11,303,806.78 649,790 480,000 8,000 1,121,790 12,425,597
12,351,984.20 12,351,984.20 649,790 480,000 8,000 1,121,790 13,473,774
13,400,161.62 13,400,161.62 649,790 480,000 8,000 1,121,790 14,521,952
14,448,339.04 14,448,339.04 649,790 480,000 8,000 1,121,790 15,570,129
312,053 312,053
312,053 312,053
312,053 312,053
312,053 312,053
312,053 312,053
312,053 312,053
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
7,017,188.71 10,017,188.71 10,329,241.940
8,065,366.13 11,065,366.13 11,377,419.360
9,113,543.55 12,113,543.55 12,425,596.780
10,161,720.97 13,161,720.97 13,473,774.200
11,209,898.39 14,209,898.39 14,521,951.620
12,258,075.81 15,258,075.81 15,570,129.040
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4 YEAR ASSETS Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets
LIABILITIES AND OWNERS EQUITY
TH
JAN
FEB
MAR
APR
MAY
JUN
3,180,587.42 3,180,587.42 649,790 480,000 8,000 1,121,790 4,302,377
4,490,964.84 4,490,964.84 649,790 480,000 8,000 1,121,790 5,612,755
5,801,342.26 5,801,342.26 649,790 480,000 8,000 1,121,790 6,923,132
7,111,719.68 7,111,719.68 649,790 480,000 8,000 1,121,790 8,233,510
8,422,097.10 8,422,097.10 649,790 480,000 8,000 1,121,790 9,543,887
9,732,474.52 9,732,474.52 649,790 480,000 8,000 1,121,790 10,854,265
Current Liabilities Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Retained earning Total Owners Equity
Total Liabilities and Owners Equity
390,713 390,713
390,713 390,713
390,713 390,713
390,713 390,713
390,713 390,713
390,713 390,713
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
911,664.19 3,911,664.19 4,302,377.420
2,222,041.61 5,222,041.61 5,612,754.840
3,532,419.03 6,532,419.03 6,923,132.260
4,842,796.45 7,842,796.45 8,233,509.680
6,153,173.87 9,153,173.87 9,543,887.100
7,463,551.29 10,463,551.29 10,854,264.520
4 YEAR ASSETS Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets LIABILITIES AND OWNERS EQUITY Current Liabilities Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Total Owners Equity Total Liabilities and Owners Equity
TH
JUL
AUG
SEP
OCT
NOV
DEC
11,042,851.94 11,042,851.94 649,790 480,000 8,000 1,121,790 12,164,642
12,353,229.36 12,353,229.36 649,790 480,000 8,000 1,121,790 13,475,019
13,663,606.78 13,663,606.78 649,790 480,000 8,000 1,121,790 14,785,397
14,973,984.20 14,973,984.20 649,790 480,000 8,000 1,121,790 16,095,774
16,284,361.62 16,284,361.62 649,790 480,000 8,000 1,121,790 17,406,152
17,594,739.04 17,594,739.04 649,790 480,000 8,000 1,121,790 18,716,529
390,713 390,713
390,713 390,713
390,713 390,713
390,713 390,713
390,713 390,713
390,713 390,713
3,000,000 8,773,928.71 11,773,928.71 12,164,641.940
3,000,000 10,084,306.13 13,084,306.13 13,475,019.360
3,000,000 11,394,683.55 14,394,683.55 14,785,396.780
3,000,000 12,705,060.97 15,705,060.97 16,095,774.200
3,000,000 14,015,438.39 17,015,438.39 17,406,151.620
3,000,000 15,325,815.81 18,325,815.81 18,716,529.040
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TH
JAN
FEB
MAR
APR
MAY
JUN
3,483,887.42 3,483,887.42 649,790 480,000 8,000 1,121,790 4,605,677
5,097,564.84 5,097,564.84 649,790 480,000 8,000 1,121,790 6,219,355
6,711,242.26 6,711,242.26 649,790 480,000 8,000 1,121,790 7,833,032
8,324,919.68 8,324,919.68 649,790 480,000 8,000 1,121,790 9,446,710
9,938,597.10 9,938,597.10 649,790 480,000 8,000 1,121,790 11,060,387
11,552,274.52 11,552,274.52 649,790 480,000 8,000 1,121,790 12,674,065
481,703 481,703
481,703 481,703
481,703 481,703
481,703 481,703
481,703 481,703
481,703 481,703
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
1,123,974.19 4,123,974.19 4,605,677.420
2,737,651.61 5,737,651.61 6,219,354.840
4,351,329.03 7,351,329.03 7,833,032.260
5,965,006.45 8,965,006.45 9,446,709.680
7,578,683.87 10,578,683.87 11,060,387.100
9,192,361.29 12,192,361.29 12,674,064.520
TH
JUL
AUG
SEP
OCT
NOV
DEC
13,165,951.94 13,165,951.94 649,790 480,000 8,000 1,121,790 14,287,742
14,779,629.36 14,779,629.36 649,790 480,000 8,000 1,121,790 15,901,419
16,393,306.78 16,393,306.78 649,790 480,000 8,000 1,121,790 17,515,097
18,006,984.20 18,006,984.20 649,790 480,000 8,000 1,121,790 19,128,774
19,620,661.62 19,620,661.62 649,790 480,000 8,000 1,121,790 20,742,452
21,234,339.04 21,234,339.04 649,790 480,000 8,000 1,121,790 22,356,129
481,703 481,703
481,703 481,703
481,703 481,703
481,703 481,703
481,703 481,703
481,703 481,703
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
10,806,038.71 13,806,038.71 14,287,741.94 0
12,419,716.13 15,419,716.13 15,901,419.36 0
14,033,393.55 17,033,393.55 17,515,096.78 0
15,647,070.97 18,647,070.97 19,128,774.20 0
17,260,748.39 20,260,748.39 20,742,451.62 0
18,874,425.81 21,874,425.81 22,356,129.04 0
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FINANCIAL STATEMENT (2012-2016)

INCOME STATEMENT Revenues Sale revenue Total Revenues Cost and expenses Cost of goods sold Administrative Expenses Depreciation Total cost and expenses Earnings before interest and tax Income before tax Income tax 30% Net income Retain earning 1,167,870.96 1,788,000.00 96,000 3,051,871 466,529 466,529.04 139958.712 326,570.33 326,570.33 1,167,870.96 1,788,000.00 96,000 3,051,871 7,800,929 7,800,929.04 2340278.712 5,460,650.33 5,460,650.33 1,167,870.96 1,788,000.00 96,000 3,051,871 12,482,129 12,482,129.04 3744638.712 8,737,490.33 8,737,490.33 1,167,870.96 1,788,000.00 96,000 3,051,871 15,628,529 15,628,529.04 4688558.712 10,939,970.33 10,939,970.33 1,167,870.96 1,788,000.00 96,000 3,051,871 19,268,129 19,268,129.04 5780438.712 13,487,690.33 13,487,690.33 3,518,400 3,518,400 10,852,800 10,852,800 15,534,000 15,534,000 18,680,400 18,680,400 22,320,000 22,320,000 2012 2013 2014 2015 2016
STATEMENT OF CASHFLOW Cash Flow from Operations Net Income Depreciation Tax payable Net Cash Flow from Operations Pre-Operating Equipment and Vehicle Net Cash from Investing Invest from investor Net Cash Flow from Financing Change in Cash Cash Beginning of year Cash End of year
2012
2013
2014
2015
2016
326,570.33 2,955,871 139,959 3,422,400.00
5,460,650.33 2,955,871 2,340,279 10,756,800.00
8,737,490.33 2,955,871 3,744,639 15,438,000.00
10,939,970.33 2,955,871 4,688,559 18,584,400.00
13,487,690.33 2,955,871 5,780,439 22,224,000.00
3,422,400.000 2,432,739.04 5,855,139.04
10,756,800.000 9,767,139.04 20,523,939.04
15,438,000.000 14,448,339.04 29,886,339.04
18,584,400.000 17,594,739.04 36,179,139.04
22,224,000.000 21,234,339.04 43,458,339.04
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BALANCE SHEET ASSETS Current Assets Cash on hand Total Current Assets Pre-operating Equipment and Vehicle Less Accumulated depreciation Net Equipment and vehicle Total Assets LIABILITIES AND OWNERS EQUITY Current Liabilities Income tax payable Total Current Liabilities Owner Equity Owner Capital Retained earning Retained earning Total Owners Equity Total Liabilities and Owners Equity
2012
2013
2014
2015
2016
26,098,958.76 26,098,958.76 7,797,480 5,760,000 96,000 13,461,480 39,560,439 0 0 139,959 139,959 0 36,000,000 0 3,420,480 39,420,480 39,560,439
73,772,558.76 73,772,558.76 7,797,480 5,760,000 96,000 13,461,480 87,234,039 0 0 2,340,279 2,340,279 0 36,000,000 0 48,893,760 84,893,760 87,234,039
104,200,358.76 104,200,358.76 7,797,480 5,760,000 96,000 13,461,480 117,661,839 0 0 3,744,639 3,744,639 0 36,000,000 0 77,917,200 113,917,200 117,661,839
124,651,958.76 124,651,958.76 7,797,480 5,760,000 96,000 13,461,480 138,113,439 0 0 4,688,559 4,688,559 0 36,000,000 0 97,424,880 133,424,880 138,113,439
148,309,358.76 148,309,358.76 7,797,480 5,760,000 96,000 13,461,480 161,770,839 0 0 5,780,439 5,780,439 0 36,000,000 0 119,990,400 155,990,400 161,770,839
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Chapter 8: RISK MANAGEMENT

External Risk
PEST Analysis: External to the business itself. These risks are largely outside our
control once we have bought the business, and can include all or some of the following:
Risk
Politic
Description
Politic and legal is the important factor which create the effect to operate the business. We have to concern on the factor from the very beginning when we decided to open the business. To launch the new product to the market the business should concern on the legal of that location.
Solution
Our company adapts the ministration structure and strategy involve with government policy and legal network within country.
Economic
The possibility is an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest
Our company will creates promotion for stimulate the total sale such as discount fifty percent for second piece, up selling or set gift voucher.
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rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.
Social
The operation part of our company may affect to the local community and the environment. to protect the effect that may cause from our operations to the community.
- Our company develops and creates package design and trend in new style. - We will concern about environment and always evaluate production process of our company to find problem.
So, our company will set the policy product follow current
Technological
Technology always changes over time. The company should concern of that change and adapt and develop our company as the change of technology because the company uses the technology as a weapon for competitive advantage in many sections such as production, marketing, management information systems, etc.
Our company develops and up date new information technology all the time and learn about environment for efficiency supporting our customers.
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Internal Risk: Essentially within our control, provided we have the aptitude and
attention to detail to exercise it. Such risks could include:
Risk
Management
Description
-Lack of expert employee in specific work: Expert employees that work with us for long time can be retire. We have to find someone that has the same knowledge and skills for work with us. But this work has to take a lot of time to train and skillfully in work. It can effect to our management of business.
Solution
- Set human resource for supporting and developing the employees. - Training the employees for increase skill and knowledge. - Set the network of specialists both technical and administration for exchange together.
Marketing
-Competitor copies our product: After business open and our product sell in market. Our product can be copy by other competitor. They can use our product to be model and copy to compete with us. We will lose market
-Our company always does marketing research monthly also; we will survey the customers satisfaction in objective to meet their needs. - We have to research customer need and try to develop our product or
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share or sales to them.
produce new product to response customer need for gain more profit.
- We solve this -Changing customer need: This risk can make our profit will decrease. Because customer change what they want and buy other product that can satisfy their need. Operating Natural disaster affect to logistic product: This -Our company solve this problem is making problem is register product and always develop product to make it difference from other competitor.
problem can occur any time other transportation unexpected. So we have to prepare ourselves before it happen. - Process of knowledge and experience diversification is low quality. channel to send product to customer. - Conduct a staff meeting and evaluation their task in each department.
Financial
-Cost of raw material increase: If in the future,
-Set the committees for investigate budget
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our raw materials increase. It will make cost of product increase as well.
project. - Checking and controlling to payment of each the projects.
-Decrease of sale: When we meet this situation we will response this situation when sale decrease more than 5%. - We will hoard material that tends to increase and try to change supplier or substitute material.
-Congestion of cash flow: If we lack of cash to circulate in business, it will affect many sector of business. If it not a big amount of money we will loan money from reliable financial institution. But it extremely lack of money.
- We will reduce size of production or slow down production and try to distribute our product on stock first.
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DECREASE IN SALE 5%
INCOME STATEMENT Revenues Sale revenue Total Revenues Cost and expenses Cost of goods sold Administrative Expenses Depreciation Total cost and expenses Earnings before interest and tax Income before tax Income tax 30% Net income Retain earning 1,167,870.96 1,788,000.00 96,000.00 3,051,871 466,529 466,529.04 139958.712 326,570.33 326,570.33 1,167,870.96 1,788,000.00 96,000.00 3,051,871 7,800,929 7,800,929.04 2340278.712 5,460,650.33 5,460,650.33 1,167,870.96 1,788,000.00 96,000.00 3,051,871 12,482,129 12,482,129.04 3744638.712 8,737,490.33 8,737,490.33 1,167,870.96 1,788,000.00 96,000.00 3,051,871 15,628,529 15,628,529.04 4688558.712 10,939,970.33 10,939,970.33 1,167,870.96 1,788,000.00 96,000.00 3,051,871 19,268,129 19,268,129.04 5780438.712 13,487,690.33 13,487,690.33 3,342,480 3,342,480 10,310,160 10,310,160 14,757,300 14,757,300 17,746,380 17,746,380 21,204,000 21,204,000 2012 2013 2014 2015 2016
NORMAL INCOME STATEMENT

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DECREASE IN SALE 10%


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DECREASE IN SALE 15%


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COST/EXPENSE INCREASE 5%

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INCOME STATEMENT Revenues Sale revenue Total Revenues Cost and expenses Cost of goods sold Administrative Expenses Depreciation Total cost and expenses Earnings before interest and tax Income before tax Income tax 30% Net income Retain earning 1,167,870.96 1,788,000.00 1,966,800.00 4,922,671 466,529 466,529.04 139958.712 326,570.33 326,570.33 1,167,870.96 1,788,000.00 1,966,800.00 4,922,671 7,800,929 7,800,929.04 2340278.712 5,460,650.33 5,460,650.33 1,167,870.96 1,788,000.00 1,966,800.00 4,922,671 12,482,129 12,482,129.04 3744638.712 8,737,490.33 8,737,490.33 1,167,870.96 1,788,000.00 1,966,800.00 4,922,671 15,628,529 15,628,529.04 4688558.712 10,939,970.33 10,939,970.33 1,167,870.96 1,788,000.00 1,966,800.00 4,922,671 19,268,129 19,268,129.04 5780438.712 13,487,690.33 13,487,690.33 3,518,400 3,518,400 10,852,800 10,852,800 15,534,000 15,534,000 18,680,400 18,680,400 22,320,000 22,320,000 2012 2013 2014 2015 2016

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INCOME STATEMENT Revenues Sale revenue Total Revenues Cost and expenses Cost of goods sold Administrative Expenses Depreciation Total cost and expenses Earnings before interest and tax Income before tax Income tax 30% Net income Retain earning 1,167,870.96 1,788,000.00 2,056,200.00 5,012,071 466,529 466,529.04 139958.712 326,570.33 326,570.33 1,167,870.96 1,788,000.00 2,056,200.00 5,012,071 7,800,929 7,800,929.04 2340278.712 5,460,650.33 5,460,650.33 1,167,870.96 1,788,000.00 2,056,200.00 5,012,071 12,482,129 12,482,129.04 3744638.712 8,737,490.33 8,737,490.33 1,167,870.96 1,788,000.00 2,056,200.00 5,012,071 15,628,529 15,628,529.04 4688558.712 10,939,970.33 10,939,970.33 1,167,870.96 1,788,000.00 2,056,200.00 5,012,071 19,268,129 19,268,129.04 5780438.712 13,487,690.33 13,487,690.33 3,518,400 3,518,400 10,852,800 10,852,800 15,534,000 15,534,000 18,680,400 18,680,400 22,320,000 22,320,000 2012 2013 2014 2015 2016

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If the sales decreased, we have to set a plan to solve this problem.
Marketing 1. Analyze the market and the competitor and find the reasons that make decreased in sales. Then, adjust the marketing strategy which suitable for the trend of the market. 2. Analyze the products to meet the demand of the market 3. Considering the distribution channel which access to target group or not 4. Create a new promotion to attract target market
Financial 1. Borrow money in a short-term from SMEs support program to solve the problem about solidarity 2. Set the discount policy for debtor to increase cash flow
Plan1: Generate a Buzz Specially, we have plan Warehouse sales with our target groups by sent via e-mail. This method can reduce cost and high effective. Plan 2: Price Reducing of price, when set price and deduction of discount about promotion already, there is a little profit. And our capital cost should competitive with others also. We concern about price strategy that determine good price that consumer have buying power. Plan 3: Decoration Design store for sales is creating an atmosphere of buying and selling for vigorous in our shop. Plan 4: Connect with the customer Luxury consumers want to good service and they dont concern price and willing to pay for more than good service. And another hand, word of mouth of consumer used our services; they have impression to our service and tell someone to know.
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Chapter 9: Summary
VERVIVA Cosmetic is the company that produces the product from natural with the Thai herb ingredients under the concept of shop that sell products from Thai herb for your healthy. Our vision is to be the top brand of cosmetic that launches the product from the natural with the high quality to Thai community and our mission is launching the Thai herb cosmetic product to that suite with customer lifestyle and for response to the need and want of customer. Moreover, it creates the customer satisfaction and creates the high stability to the investor. Its also support the Thai herb cosmetic product to spread widely with international. Our company uses the differentiation strategy to complete with other competitors by using this strategy to create the product differentiate and customer loyalty. It also creates the brand image to be higher than our competitors and service differentiation. This is the tool to create the brand loyalty that help our organization can set the price higher the others and make more profit to our company in long-term. For the operation strategy, our company has the strong point in quality of product the pass the research and development from our company and got the certificate from the division of medical sciences. Our company has to control the production process by select the manufacturing that has the GMP standard. Moreover, our company selects the product that has the high quality from the high quality of manufacturing to be our main supplier. For the marketing strategy, our company do the target market that concern on healthy by create our brand logo to be the brand that concern on the customer healthy and be the top of brand in herb cosmetic industry. We communicating and promoting strategy that suite with the customer lifestyle for create brand loyalty. For the contribution channel, our company contributes our product by use the main channel that is our shop and counter sale in the shopping mall. It also include the delivery service and our company has guarantee in quality of products for create the most customer satisfaction.
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For the feasibility of this project, if the explanation rate of our business grow belong to our forecast, this business can create the return on investment 20% every. Our business can create the value added from the return rate is the minimum estimated is around 2.4 million baht.
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Reference
Source: Cosmetics and Perfumes", 'Egypt, 10,000 BCE' by Mindy Cohen, 1999, accessed on June 26, 2008 Source: Strategies for Thai Cosmetics Business to Enter Foreign Markets; MR. PRONGSARN LEELAHONGJUDHA: Manager of SUDTANA 2534 COMP ANY LIMITED Source: Ref. Government Gazette, Volume 109, Part 42, of 8th April 1992 Source: Hoovers Inc. Industry Overview: Cosmetics, Beauty Supply, and Perfume Stores, The Campaign for Safe Cosmetics. (2008). The Campaign for Safe Cosmetics. From http://www.safecosmetics.org/ The Department of International Trade Promotion (DITP) from website http://www.thaitradeusa.com/home/?page_id=3207 http://dnfe5.nfe.go.th/ilp/soc2/so31-2_3.htm http://neung.kaengkhoi.ac.th/information1/techno_3_2.html http://www.ppr.go.th/forumtalk/index.php?topic=2229.0 http://www.baanjomyut.com/library/global_community/03_3_3.html http://www.manager.co.th/mgrWeekly/ViewNews.aspx?NewsID=9540000061695 http://sme2.ismed.or.th/alliances/comp-profile.php?comp_id=13802 http://www.thaitambon.com/tambon/tsmeplist.asp?ID=760709&SME=0384145926 http://dnfe5.nfe.go.th/ilp/soc2/so31-2_3.htm http://neung.kaengkhoi.ac.th/information1/techno_3_2.html http://www.ppr.go.th/forumtalk/index.php?topic=2229.0 http://www.baanjomyut.com/library/global_community/03_3_3.html
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http://www.manager.co.th/mgrWeekly/ViewNews.aspx?NewsID=9540000061695 http://deeeshop.com/v1/index.php/2011-07-01-05-3641.html?category_id=23&page=shop.browse&limit=30&start=5 http://www.supapornherb.com/com_pro.htm http://www.ttt.co.th/en/index.php?option=com_content&view=article&id=81&Itemid=70 http://www.eppo.go.th/power/pw-rate-PEA.html#3 http://www.thailawforum.com/database1/cosmetic-law-6.html http://www.wisegeek.com/what-is-economic-risk.html http://site4business.com/index.php/entrepreneurresources/buy-business-articles/9-buybusiness-risk http://www.cu-qa.chula.ac.th/Download/files/Shopping_list.pdf
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Appendix
TENTATIVE TRANSLATION COSMETICS ACT B.E. 2535 (1992) BHUMIBOL ADULYADEJ REX. Given on the 31th day of March B.E. 2535 Being the 47th year of the Present Reign His Majesty King Bhumibol Adulyadej has been graciously pleased to proclaim that: Whereas it is expedient that the law on cosmetics be revised: Be it, therefore, enacted by the King, with advice and consent of the National Legislative Assembly acting in the Capacity as the Parliament, as follows: Section 1. This Act Shall be cited "Cosmetics Act B.E. 2535" Section 2. This Act shall come into force on the day following the date of its promulgation in the Royal Government Gazette.
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Section 3.
The following shall be repealed (1) Cosmetics Act B.E. 2517 (2) Cosmetic Act (No.2) B.E. 2518 Section 4. In this Act, "Cosmetics" means (1) Preparations designed for use by applying, rubbing, powdering, spraying, or otherwise applying to any part of the body to cleanse or beautify, including skin-care products but excluding ornament and clothing. (2) Substances intended for use as admixtures in the manufacture of cosmetics. (3) Other substances designated specifically by the ministerial regulation as cosmetics. "Container" means any material used specifically for containing or wrapping cosmetics; "label" means any figure, relief, or epithet pertaining to the cosmetics displayed on the cosmetic container, or package, or accompanying the cosmetic or inserted in the container or package, including the document or handbook provided with the cosmetic; "Manufacture" means process of admixture, transformation, production, dividing and changing containers; "Importation" means bringing or ordering into the Kingdom; "Sale" means distribution, disposal, or exchange for commercial purpose and includes availability for sale; "Premises" means a building or part of a building and includes the grounds; "Committee" means the Cosmetic Committee; "Secretary-General" means the Secretary-General of the Food and Drug Administration; "Competent official" means a person appointed by the Minister to execute this Act; "Minister" means the Minister in charge of the execution of this Act.
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Section 5. In order to protect public health, the Minister shall have the power to announce in the Royal Government Gazette, specifying: (1) name, category, kind or description of specially controlled cosmetics which must be duly registered for manufacture for sale or importation for sale under Section 16; (2) name, category, kind, or description of controlled cosmetics which manufacture for sale or importation for sale must be in accordance with the criteria and procedures under Section 27; (3) name, category, kind, or description cosmetics of which manufacture or importation for sale is forbidden; (4) name of substances forbidden to be used as admixtures in the manufacture of cosmetics; (5) name and quantity of substances which may be used as admixtures in the manufacture of cosmetics; (6) name, category, kind or description of cosmetics the label of which is controlled. Cosmetics to be designated specially controlled cosmetics must be ones that may cause serious harm to users or that contain toxic substances or other substances which cause serious harm to the health of users. Before the announcement pursuant to this Section is made, opinions shall be heard from government agencies and private sector concerned as the case may require, except in urgent matters. Section 6. There shall be a Cosmetic Committee comprising the Permanent Secretary of Public Health Ministry as the Committee Chairman, Director-General of Medical Service Department, Director-General of Communicable Disease Control Department, DirectorGeneral of Medical Sciences Department, Director-General of Health Department, Secretary-General of the Food and Drug Administration, Director-General of Science Service Department, Director-General of Customs Department, and two representatives
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of Ministry of University Affairs appointed from among Deans of Faculty of Pharmaceutical Sciences as Committee Members ex officio, and not more than six qualified persons appointed by the Minister, among which there must be not more than two persons who operate the business of manufacture, importation, or distribution of cosmetics appointed as qualified members. The Secretary-General of the Food and Drug Administration shall appoint one official of the Food and Drug Administration as Member and Secretary and two officials as Members and Secretary Assistants. Section 7. A qualified member shall assume a term of office of two years and may be reappointed. Section 8. A qualified member shall vacate office upon (1) death; (2) resignation; (3) dismissal by the Minister for dishonesty on duty, misconduct, or inefficiency; (4) becoming bankrupt; (5) becoming incompetent or quasi-incompetent; or When a qualified member vacated his office before his term of office expires, the Minister may appoint a substitute who shall serve for the remaining term of office of his predecessor. Section 9. A meeting of the Committee must be attended by not less than one half of the total members to constitute a quorum. If the Chairman is absent or cannot perform his duty, the members present shall elect a member among themselves to preside over the meeting. A question of the meeting shall be decided by a majority of votes.
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A member shall have one vote. When the votes of the members are tie, the meeting chairman shall give a casting vote to decide the question. Section 10. The Committee shall have duty (1) to submit to the Minister its opinions on performance under Section 5, Section 27, or Section 35; (2) to provide advice or opinion on registration and revocation of the register of specially controlled cosmetics, except the case pursuant to Section 23 paragraph three; (3) to provide to the Minister advice or counsel on matters pertaining to cosmetics; (4) to perform other duty required by law. Section 11. The Committee shall have power to appoint subcommittees to make study or perform research on matters within the authority of the Committee or to perform any task assigned by the Committee. The Committee shall determine the quorum and procedure of the subcommittees as deemed appropriate. Section 12. In performing its duty, the Committee or a subcommittee appointed under Section 11 shall have power to issue a written order summoning any person to appear and testify or to submit any document or material for consideration. Section 13. No person shall manufacture for sale or import for sale of specially controlled cosmetics pursuant to Section 5(1), except those accepted for registration by the Secretary General.
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The provision pursuant to paragraph one shall not apply to a person who has obtained an approval to establish a duty-free shop under the law of customs and has imported specially controlled cosmetics for sale in the duty-free shop. But in this connection, the Minister may promulgate in the Royal Government Gazette any criterion and procedure to be observed for public safety or prevention of violation or non-compliance with related laws. Section 14. The competent official shall be duly informed of any manufacture or importation of samples of specially controlled cosmetics for technical study or research or for registration and such samples shall be manufactured or imported in number determined by the competent official and also in accordance with the criteria, procedures, and conditions prescribed in the ministerial regulation. Section 15. An applicant for registration of specially controlled cosmetics shall submit an application therefor and samples and particulars of the cosmetics to the competent official in accordance with the criteria, procedures, and conditions prescribed in the ministerial regulation. The ministerial regulation pursuant to paragraph one shall specify fully what are to be submitted and the definite time is to be taken for registration.
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Section 16. In registration for specially controlled cosmetics, the following essence shall be specified in the register: (1) name and place of establishment of the person who manufactures for sale or imports for sale; (2) trade name of the cosmetics; (3) active ingredients and other ingredients of the composition; (4) manufacturing process; (5) method of analysis; (6) place of manufacture, instruments and tools used in manufacture, in case of manufacture for sale; (7) storage; (8) containers; (9) label pursuant to Section 5(6) Especially controlled cosmetics, which belong to one same applicant for registration and differ only in their trade name, color, contents, or in other nonessential respect and are announced in the Royal Government Gazette by the Minister with advice and consent of the Committee, shall be registered together in the same register of specially controlled cosmetics. Section 17. Expenses in analysis or examinations for registration shall be borne by the applicant for registration as actually incurred. Section 18. The Secretary General shall issue an order not accepting specially controlled cosmetics for registration if the Committee is of the opinion that: (1) the cosmetics are not safe for use, as described under Section 33(1), (2) or (3); (2) the cosmetics have a name that is pretensions or impolite or deceptive; (3) the cosmetics have a name that is inconsistent with Thai culture or language;
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(4) the place of manufacture or instruments and tools used in manufacture for sale are not correct according to the ministerial regulation. The order not accepting for registration shall be final. Section 19. If the certificate of registration is lost or damaged in essence, the person manufacturing or importing the specially controlled cosmetics for sale shall submit an application for a certificate substitute to the competent official within fifteen days from the date of knowledge of loss or damage. The application for and issuance of a certificate substitute shall be in accordance with the criteria, procedure, and conditions prescribed in the ministerial regulation. Section 20. The applicant for registration may apply for amendment of items of specially controlled cosmetics already registered by complying with the criteria, procedure, and conditions prescribed in the ministerial regulation, and Section 15 paragraph two shall be applied mutatis mutandis. Section 21. If any item of specially controlled cosmetics already registered subsequently becomes unsafe for use as described under Section 33, the Secretary General with advice or approval of the Committee shall have power to order revocation of registration of such cosmetic. The person who manufactures or imports cosmetics for sale must manufacture or import only specially controlled cosmetics as registered. The person who manufactures specially controlled cosmetics for sale must manufacture and have a place of manufacture and instruments and tools for use in manufacture in accordance with the criteria and procedure prescribed in the ministerial regulation.
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Every time specially controlled cosmetics are imported, documents supporting importation in accordance with the criteria and procedure prescribed in the ministerial regulation must be made available and, upon release by the customs authorities or competent official concerned, shall be forwarded to the Food and Drug Administration without delay. Section 23. Any person who has registered specially controlled cosmetics and wishes to begin to manufacture or import such cosmetics must notify the Secretary General of the intention. Upon notification pursuant to paragraph one, such person shall pay the annual fee at the rate stated in the ministerial regulation but not exceeding the rate annexed hereto, however, until a suspension of such manufacture or importation is notified. If the annual fee is not paid within the given period, an additional payment at a rate of five percent per month shall be made and the Secretary-General shall issue a notice demanding payment of the annual fee and additional amount be made within thirty days from the date of receipt of such notice. If the payment is still not made fully, the Secretary-General shall revoke the register of such specially controlled cosmetics. Section 24. In the event it appears that a person who manufactures or imports specially controlled cosmetics for sale violated or failed to comply with Section 22 or the ministerial regulation issued under Section 22, the Secretary-General shall be empowered to order cessation of such violation or remedy or compliance and to make public known of said violation or non-complicance for the purpose of protection of the consumers as required case by case. Section 25.
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No person shall sell specially controlled cosmetics not duly registered or the register of which having been revoked except sold in a duty-free shop by an operator having fully complied with the criteria and procedure as prescribed and announced by the Minister under Section 13 paragraph two. Section 26. In the event, it is necessary for control purpose, the Secretary-General shall be empowered to issue orders as follows: (1)that a person who manufactures or imports specially controlled cosmetics for sale is required to make detailed reports on his manufacture or importation operation; (2)that a person who manufactures or imports specially controlled cosmetics for sale is required to submit simples of cosmetics manufacture or imported.
Section 27.
For the purpose of protection of public health, the Minister shall have power to make an announcement in the Royal Government Gazette specifying the quantity of the major components of the controlled cosmetics pursuant to Section 5(2) and prescribing forms of the container, criteria, and means of the manufacture, importation, and storage to be observed by persons manufacturing or importing controlled cosmetics for sale. Section 28. Any person who wishes to manufacture or import controlled cosmetics must act as follows: (1)to inform the name and location of office and place of manufacture or storage of the cosmetics, as the case may be; (2)to inform the name, category, or kind of cosmetics to be manufactured or imported; (3)to inform the contents of active ingredients of such cosmetics. Information pursuant to paragraph one shall be in accordance with the criteria and procedure prescribed in the ministerial regulation.
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The manufacturer or importer of controlled cosmetics for sale must comply with the announcement of the Minister pursuant to Section 27. The provisions in Section 23 paragraphs two and three, Section 24, and Section 26 shall be applied to manufacture or importation of controlled cosmetics for sale mutatis mutandis. Section 29. Any substance allowable as cosmetic component under Section 5(5) may be lawfully used in cosmetics withoutbeing subjectto any otherrelated law. If any substance allowable as a cosmetic component under Section 5(5) is later on annourfced as a substance forbidden to be used as a cosmetic component under Section 5(4), such announcement shall come into force upon the expiration of a one hundred eighty days'period from the date of announcement, except in case it is seriously dangerous to users, the announcement may be made effective immediately or sooner. Section 30. A controlled label pursuant to Section 5(6) must bear texts as follows: (1)a text that is factual and not one that may cause misunderstanding about the essence of the cosmetics; (2)an indispensable text that if is not mentioned, the consumers may misunderstand about the essence of the cosmetics. The text pursuant to paragraph one (2) shall be in accordance with the criteria, conditions, and specifications prescribed by the Committee in the Royal Government Gazette. Section 31. When seeing that any label is not in accordance with Section 30, the Committee shall order the manufacturer or importer of cosmetics for sale to stop using or correct such label.
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Section 32. Any person wishing to manufacture or import for sale cosmetics of which the label is controlled may request an opinion of the Secretary-General on the label to be used. A request for opinion, fee, and time length taken in giving an opinion shall be in accordance with the regulation issued by the Minister. Section 33. Cosmetics with any of the following descriptions shall be considered unsafe for use: (1) Cosmetics containing ingredients that may be harmful to users; (2) Cosmetics containing forbidden ingredients pursuant to Section 5(4); (3) Cosmetics manufactured improperly or contained in no hygienic container; (4) Cosmetics with ingredients that degrade wholly or partly after containing in their containers and are toxic and dangerous to users. Section 34. Cosmetics with any of the following descriptions shall be considered a counterfeit: (1) Cosmetics with any ingredient imitated for the active ingredient of such cosmetics or without the active ingredient as notified to the competent official; (1) Cosmetics claimed to have been duly registered, which is false; (1) Cosmetics with a label designating their manufacturer or origin, which is false; (1) Cosmetics with the active ingredients short of or surpassing the amount registered or notified to the competent official or shown in the label by more than twenty percent. Section 35. Cosmetics with active ingredients in the amount less than or exceeding that registered or notified to the competent official or shown in the label by a value exceeding the deviation value set and announced in the Royal Government Gazette by the Minister but not exceeding that pursuant to Section 34(4) shall be considered cosmetics at variance with the standards.
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Section 36. No person shall manufacture or import for sale or sell cosmetics unsafe for use pursuant to Section 33, counterfeit cosmetics pursuant to Section 34, or cosmetics at variance with the standards pursuant to Section 35. Section 37. The provisions of the law on protection of consumers in the part pertaining to advertisement shall be applied mutatis mutandis to advertisement of cosmetics, with the Minister exercising the authority of the Consumers Protection Board and the Committee exercising the authority of the Advertisement Committee.
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Section 38. When it is evident that a manufacturer or importer of cosmetics for sale committed an offense under this Act or there is reasonable ground to believe that such an offense has been committed, the competent official with approval of the Secretary-General shall be empowered to arrest such person and deliver him to the investigator for legal action. In case with reasonable ground, the Secretary-General may order the competent official to operate with the investigator under the regulation of Ministry of Public Health and with approval of Ministry of the Interior. For such purpose, the competent official shall have the status of an investigator under the criminal procedure code. Section 39. In case with reasonable ground to believe that an offense under this Act has been committed, the Secretary General shall be empowered to order the competent official: (1) to enter into the place of manufacture, importation, storage, or sale of the cosmetics, or into the vehicle carrying the cosmetics, to examine the cosmetics, their containers, or documents pertaining thereto, including the method of manufacture or storage, during sunrise to sunset or during workhours of such place; (2) to take the cosmetics or objects suspected to be cosmetics in a reasonable quantity for examination or analysis; (3) to search, confiscate, or attach cosmetics, theircontainers, documents or substances pertaining thereto; (4) to summon any person to give testimony or surrender documents or evidence for the consideration of the competent official. In the duty performance pursuant to paragraph one, person concerned shall provide reasonable convenience.
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Section 40. Duty performance pursuant to Section 39(1) shall be carried out in the presence of the person(s) occupying the premises or vehicle or; if the owner or occupier there of is not present, of not less than two persons as witnesses. In case of a less urgent matter, the competent official may issue a written notice to the owner or occupier of the place of manufacture or vehicle for information reasonable in advance Anything so confiscated or attached must be acknowledged by the occupier of the place of manufacture or vehicle or workers at the premises or witnesses, as the case may be. In the event such person(s) refused to so acknowledge, the competent official shall record accordingly. The things confiscated or attached shall be duly wrapped up or packaged and sealed or marked. Section 41. The Secretary-General with approval of the committee shall be empowered to announce results of the examination or analysis of cosmetics or materials suspected to be cosmetics made under Section 39(2) for public information and therefore protection of the consumers. In this connection, the owner of the cosmetics shall be given the opportunity to offer explanations, arguments, or proofs appropriate to the case. Section 42. In duty performance pursuant to Section 39, the competent official shall make the best efforts to cause minimal damage or scattering possible. Section 43. The competent official shall make a record and list of things searched, confiscated, or attached.
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The record and list pursuant to paragraph one shall be read to the occupier of the place or vehicle, persons present at the place or vehicle, or the witnesses, as the case may be, and shall be attested by said persons, If the persons refused to comply, the competent official shall record accordingly and deliver the record, list, and things confiscated to the Food and Drug Administration, Ministry of Public Health urgently. Section 44. In performing duty, the competent official shall produce his identification card when requested by the person concerned. The competent official's identification card shall be in accordance with the form prescribed in the ministerial regulation. Section 45. When it is evident that cosmetics manufactured for sale, imported for sale, or sold are in violation of Section 13 or have descriptions pursuant to Section 21, Section 33, Section 34, or Section 35, the competent official shall be empowered to confiscate or attach them for litigation. The competent official may order the person manufacturing for sale, importing for sale, selling, or having in possession said cosmetics to destroy the cosmetics or deliver them to him within a given period. If the owner or possessor made no objection to the confiscation or attachments or failed to claim the cosmetics within ninety days from the date of confiscation or attachment, the cosmetics shall become the property of the Food and Drug Administration to be treated in accordance with the regulation of Ministry of Public Health Section 46. Any person who failed to appear and give testimony or to submit documents or materials as ordered by the Committee or subcommittee under Section 12 or as
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ordered by the competent official under Section 39(4) is liable to an imprisonment, not exceeding one month or a fine not exceeding ten thousand baht or both.
Section 47.
Any person who violated Section 13 paragraph one or failed to comply with the criteria and procedure prescribed by the Minister under Section 13 paragraph two is liable to an imprisonment not exceeding six months or a fine not exceeding thirty thousand baht or both. Any person who committed the offense pursuant to paragraph one again within a period of five years from the date of the first offense is liable to a penalty two times the penalty pursuant to paragraph one. Section 48. Any person who failed to comply with Section 19 paragraph one is liable to a fine not exceeding five thousand baht. Section 49. Any person who violated or failed to comply with the ministerial regulation issued under Section 14 or violated Section 22 paragraph one or the ministerial regulation issued under Section 22 paragraph two is liable to an imprisonment not exceeding three months or a fine not exceeding twenty thousand baht or both. Section 50. Any person who manufactured or imported specially controlled cosmetics of which the certificate of registration was revoked under Section 21 is liable to an imprisonment exceeding six months or a fine not exceeding thirty thousand baht or both. The provision is Section 47 paragraph two shall be applied mutatis mutandis to the offender pursuant to paragraph one.
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Section 51.
Any person who violated Section 23 paragraph one is liable to an imprisonment not exceeding three months or a fine not exceeding twenty thousand baht or both. The provision in Section 47 paragraph two shall be applied mutatis mutandis to the offender pursuant to paragraph one. Section 52. Any person violated or failed to comply with Section 24 or Section 45 paragraph two is liable to an imprisonment not exceeding three months or a fine not exceeding twenty thousand baht or both. Section 53. Any person who violated Section 25 is liable to an imprison ment not exceeding three months or a fine not exceeding twenty thousand baht or both. If the offense pursuant to paragraph one was committed in negligence, the offender is liable to a fine not exceeding ten thousand baht. The provision in Section 47 paragraph two shall be applied mutatis mutandis to the offender pursuant to paragraph one. Section 54. Any person who failed to comply with an order of the Secretary-General issued under Section 26 is liable to an imprisonment not exceeding one month or a fine not exceeding ten thousand baht or both. Section 55. Any person who failed to comply with Section 28 paragraph one or paragraph three is liable to an imprisonment not exceeding one month or a fine not exceeding ten thousand baht or both.
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Section 56.
Any person who intentionally caused misunderstanding about the origin, condition, quality, quantity or essence of cosmetics, whether his own or others, or used a label with false texts or texts known or should be known to cause said misunderstanding is liable to an imprisonment not exceeding six months or a fine no exceeding thirty thousand baht or both If the offender pursuant to paragraph one repeated the offense within period of six months from the date of the first offense, he is liable to an imprisonment nol exceeding one year or a fine not exceeding sixty thousand baht or both. Section 57. Any person who sold cosmetics of which the label is controlled without a label or with a label which is incorrect or has incorrect texts, or sold cosmetics with a label which was suspended by the Committee under Section 31, is liable to an imprisonment not exceeding three months or a fine not exceeding twenty thousand baht or both. If the offense pursuant to paragraph one was committed in negligence, the offender is liable to a fine not exceeding ten thousand baht. If the offense pursuant to paragraph one was committed by a person who manufactures or imports for sale cosmetics of which the label is controlled, the offender is liable to an imprisonment not exceeding six months or a fine not exceeding thirty thousand baht or both. Section 58. Any person who in return for payment made unlawful labels or fixed unlawful labels on cosmetics of which the label is controlled, knowing or should know that the labels are unlawful, is liable to a fine not exceeding ten thousand baht.
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Section 59. Any person who manufactured or imported for sale or sold cosmetics having descriptions pursuant to Section 33(1) or (2) or Section 34(1) or (2) which violated Section 36 is liable to an imprisonment not exceeding one year or a fine not exceeding sixty thousand baht or both. Any person who manufactured or imported for sale or sold cosmetics having descriptions pursuant to Section 33(3) or (4) or Section 34(3) or (4) which violated Section 36 is liable to an imprisonment not exceeding six months or a fine not exceeding thirty thousand baht or both. If importation for sale of the cosmetics pursuant to paragraph one or two done in negligence, the offender is liable to a fine not exceeding thirty thousand baht. If the cosmetics pursuant to paragraph one or two were sold in negligence, the offender is liable to a fine not exceeding ten thousand bath. Section 60. Any person who manufactured or imported for sale cosmetics having descriptions pursuant to Section 35 which violated Section 36 is liable to a fine not exceeding twenty thousand baht. If importation for sale of the cosmetics pursuant to paragraph one was done in negligence, the offender is liable to a fine not exceeding five thousand baht. Section 61. Any person who sold cosmetics having descriptions pursuant to Section 35 which violated Section 36 is liable to a fine not exceeding five thousand baht. If the act pursuant to paragraph one was made in negligence, the offender is liable to a fine not exceeding three thousand baht.
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Section 62.
Any person who did not provide reasonable convenience to the competent official performing duty under Section 39 is liable to an imprisonment not exceeding one month or a fine not exceeding ten thousand baht or both. Section 63. All cosmetics manufactured or imported for sale or sold in violation of Section 13 or having descriptions pursuant to Section 2 1, Section 33, Section 34, or Section 35 together with their container, label, and equipment for use with the cosmetics shall be confiscated, whether there is any person punished by judgment or not, and delivered to the Food and Drug Administration for treatment in accordance with the regulation of Ministry of Public Health. Section 64. In the event the court sentenced any person to a punishment for offence under Section 47, Section 50, Section 53 or Section 59 paragraph one or two, if there is any indication that the person may commit such offense again, the court may order a suspension of his operation in manufacturing or importing for sale or selling cosmetics for a period not exceeding five years from the date of release from the punishment. Section 65. All penalties of a fine alone under this Act may be enforced by the committee or the competent official assigned by the committee. In the event of confiscation or attachment of evidence involved in the offense under this Act, persons empowered to enforce the fine penalty pursuant to paragraph one may do only when (1) in case correction can be made, the offender consents and has corrected the evidence, (2) in case correction cannot be made, the offender consents to the evidence becoming the property of the Food and Drug Administration.
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In case the offender pays the fine and the evidence has been corrected, the competent official shall release the evidence. All the things becoming the property of the Food and Drug Administration shall be treated in accordance with the regulation of Ministry of Public Health. Section 66. The Minister shall announce names of specially controlled cosmetics and controlled cosmetics within six months from the date on which this Act comes into force. While implementation pursuant to paragraph one is not yet completed, (1) the cosmetics of which manufacture of importation for sale requires a license under Section 5(1) of Cosmetics Act B.E. 2517 shall be regarded as specially controlled cosmetics under This Act and the person licensed to manufacture or import cosmetics for sale and obtaining a certificate of registration of said cosmetics shall be regarded as a person who has registered specially controlled cosmetics under this Act. (2) the cosmetics having standard quality under Section 5(2) of Cosmetics Act B.E. 2517 shall be regarded as controlled cosmetics under this Act and the Minister's announcement prescribing standard quality for said cosmetics shall be regarded as announcement of the Minister under Section 27 of this Act. Section 67. All ministerial regulations issued under the law on cosmetics and are still in force on the date on which this Act comes into force shall continue in force in so far as they are not inconsistent with or contrary to this Act.
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Section 68. The Minister of Public Health shall be in charge of the execution of this Act and shall have authority of appoint competent officials and issue ministerial regulations fixing rate of fees not exceeding the rate annexed hereto, exempting cases from fee payment, and specifying other activities, and issue announcement for the execution of this Act. Ministerial Regulations and announcements shall become effective upon promulgation in the Royal Government Gazette.
Countersigned: Anand Panyarachun Prime Minister (Ref. Government Gazette, Volume 109, Part 42, of 8th April 1992) Source: http://www.thailawforum.com/database1/cosmetic-law-6.html
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Final Verviva

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Preface This subject 1203302 Project Feasibility Study and Evaluation is the subject who can define as process

77-79 80-81 82-83 83-84 85-87 88 89

Chapter 2: Industry Profile

2.2 Situation of Business

Percentage 0.22 22.50 26.68 14.67 33.84 1.97 0.12

2.3 Service & Product

Chapter 3: Market Feasibility Study

Production Wholesale Export Service

Thai herb compress Code: 760709-SA001

Thai herb compress makes aromatic smell and beauty of packaging.

Turmeric Oil Code: 760709-SA002

Turmeric Oil makes aromatic smell and beauty of packaging.

Salt Scrub Code: 760709-SA003

Salt Scrub makes smooth skin.

Price: 220 baht

Aroma Salt Scrub Code: 760709-SA004

Aroma Salt Scrub makes white skin.

Liquid Drug Code: 760709-SA005

Liquid Drug makes nourishing blood and indigestion.

3.3 STP Analysis

Positioning Marketing High Quality

VERVIVA GREEN CHART Low price SUPAPORN High price

Price of general product (gram/baht)

Price of Green-Chad product(gram/baht)

Price of other Thai herb product(gram/baht)

Price of VEVIVA product(gram/ba ht)

Shampoo and Conditioner

P-Promotion Sale Promotion

X1 = Number of stores. X2 = Number of counter-memory. X3 = Number of pavilions. X4 = Number of delivery service.

The way it stores and counters which we have observed

Sale forecast year 1- 5

JAN 297,000 396,000 24,200 187,200 904,400

FEB 297,000 396,000 24,200 187,200 904,400

MAR 297,000 396,000 24,200 187,200 904,400

APR 297,000 396,000 24,200 187,200 904,400

MAY 297,000 396,000 24,200 187,200 904,400

JUN 297,000 396,000 24,200 187,200 904,400

JUL 297,000 396,000 24,200 187,200 904,400

AUG 297,000 396,000 24,200 187,200 904,400

SEP 297,000 396,000 24,200 187,200 904,400

OCT 297,000 396,000 24,200 187,200 904,400

NOV 297,000 396,000 24,200 187,200 904,400

DEC 297,000 396,000 24,200 187,200 904,400

JAN 393,300 655,500 24,200 245,700 1,294,500

FEB 393,300 655,500 24,200 245,700 1,294,500

MAR 393,300 655,500 24,200 245,700 1,294,500

APR 393,300 655,500 24,200 245,700 1,294,500

MAY 393,300 655,500 24,200 245,700 1,294,500

JUN 393,300 655,500 24,200 245,700 1,294,500

JUL 393,300 655,500 24,200 245,700 1,294,500

AUG 393,300 655,500 24,200 245,700 1,294,500

SEP 393,300 655,500 24,200 245,700 1,294,500

OCT 393,300 655,500 24,200 245,700 1,294,500

NOV 393,300 655,500 24,200 245,700 1,294,500

DEC 393,300 655,500 24,200 245,700 1,294,500

JAN 655,500 655,500 245,700 1,556,700

FEB 655,500 655,500 245,700 1,556,700

MAR 655,500 655,500 245,700 1,556,700

APR 655,500 655,500 245,700 1,556,700

MAY 655,500 655,500 245,700 1,556,700

JUN 655,500 655,500 245,700 1,556,700

JUL 655,500 655,500 245,700 1,556,700

AUG 655,500 655,500 245,700 1,556,700