Project Feasibility Study and Evaluation

( SING-A-SONG KARAOKE )

Present to Aj. Chaiyawat Thongintr

By 5231205003 5231205021 5231205025 5231205034 5231205040 5231205043 5231205071 5231205125 Kanistha Jusmin Jiraporn Chyanut Chutcah Suksom Boonserm Palee Sukhum Wan Indee

Chitchanok Wongwang Nalinee Wanida Rodlamool Maitreethaweenithi

Seat 18

Section 2

Tourism Management

Mae Fah Luang University

PREFACE
The report is a part of Project Feasibility Study and Evaluation subject (1203302). This report has purpose to study about the project to do entertainment business in Chiang Rai province. We choose to research about karaoke room in the front of Mae Fah Luang University. We have fully information and clearly of this karaoke project because we study in deep details to show for reader with this business. The report will show about everything in our project, for example, financial statement, cost, risk management, etc. It can show the project can run in the long-run or not and show about if the investor doing this project they will get high profit or loss of profit when the reader will read this report. We would like to say Thank you for their participations to give knowledge and information for our study, these also allow us to get more knowledge and make us to understand in deep. Also, it improves us to develop education have more useful and will be change of development to be create and have new ideas to do business in the future. Again, we would like to say Thank you very much for their helps. Firstly, we thank you for our advisor Aj. Chaiyawat Thongintr, he try to continue to help and support in this project. He is always to listen and give advice for us. Second, we will say thank you to following many websites on the internet, which are support our project to be successful. Finally, we will thank our members in group that work together. In the first, for educating with information to support and encouragement to pursue our topic to do project, we will share information and help to solve problems that occur in report.

EXCLUSIVE SUMMARY
Sing-A-Song Karaoke located in the front of Mae Fah Luang University, Chiang Rai province. Inside the building, we provide 3 floors to serve customer to use it. In the first floor, it is a food court and library zone and serves with coffee and bakery in that zone. In the next second and third floor, we separate the rooms to be 3 sizes include with S, M, and L sizes. We have 19 karaoke rooms and each room different in theme and decoration. In each room, we provide many themes to serve customer to choose and use it, for example, boxing room, concert room, haven room, bedroom, examination room, etc. Every room will different in theme and decoration because we want to make difference from others. We provide beverage zone for sell snack, alcohol, and beer for customer. Our vision wants to be a leader of karaoke entertainment in Chiang Rai province by provides modern, technology, facility, and high quality to customer. It is like our slogan Think of entertainment high quality services, thinks of Sing-A-Song Karaoke. Most of target markets are general customer who likes to sing a song, but we focused on the students who study in Mae Fah Luang University because our business located there that makes us concerned it. We will study about the characteristic of Chiang Rai people by use STEEP strategy to research and analyze the data. Our competitions are not much in Chiang Rai province because they not have high quality with equipment and they not have special thing to make different in their business. So, that make us can have more advantage better other competitors because we have high quality with equipment, good services for customer, and we good system to booking when the customer will use our services. Before we want to study to do this project, we will survey to ask students in Mae Fah Luang University about their opinion for this project. And most of them want to have karaoke in the front of their university because it can be the place for relax and meeting their friend. In financial statement, sales forecast will be increase in every year because we have more customers to use our services. And that make us to get high benefit when to do this project. It can show for the investor who wants to invest in this project, your money will not lost because we study in deep detail to offered this project. We will calculate everything about financial statement to show income since open business to next 5 years. That can make the investor confident with this project when they want to invest.

Table of Content A Preface.I Table of Content.....II Exclusive Summary...III Chapter 1: Introduction1 1.1 Background and Significant of project.....2 1.2 Objective.. 3 1.3 The benefits of project..4 1.4 Activities and Time frame.5 Chapter2: Industry profile....6 2.1 Nature of Industry...7 2.2 Situation of Industry....9 2.3 Product and service (In general)......9 2.4 Vision.11 2.5 Mission...11 2.6 Strategic planning..12 2.6.1 Corporate level....12 2.6.2 Business level..12 2.6.3 Functional level...12 2.6.4 5C strategic........14 2.6.5 Blue Ocean Strategy16 Chapter 3: Market Feasibility Study....................................................................................17 3.1 Market Analysis......18 3.1.1 General Analysis..18 3.1.2 Competition analysis....21 - Competitor Analysis...21 - Customer Analysis..22 3.2 STP analysis....23 3.2.1 Segmentation....23 3.2.2 Market targeting...28 3.2.3 Product position........29 3.3 Marketing Mix strategy or 4Ps...27 3.3.1 Product.....30 3.3.2 Price..30 3.3.3 Place.31 3.3.4 Promotion.31 3.4 Sales forecast...32 3.5 Marketing Expense (Sales Incentive)..38 Chapter 4: Investment 40 4.1 Pre- Operation Cost..41 4.2 Investment Cost....41 4.3 Depreciation Cost.....44

Chapter 5: Operation 5.1Production and Operations Analysis..60 5.1.1 Product Characteristics (in detail).....61 5.1.2 Specification and Feathers....62 5.1.3 Services Process....72 5.1.4 Location....74 5.1.5 Facility Layout..75 5.1.6 Logistics Management..78 5.1.7 Facility Management.78 Chapter 6: Administration.79 6.1 Salary.80 6.2 Administrative..80 Chapter 7: Financial Analysis82 7.1 Income Statement.83 7.2 Statement of Cash flow86 7.3 Balance Sheet91 Chapter 8: Risk Management.96 8.1 External Risk.97 8.1.1 PEST Analysis..97 8.1.2 Five forces model98 8.2 Internal Risk..100 Chapter 9: Conclusion.105 References..VII

Chapter1
Introduction

Chapter1
Introduction

Background and Significance of the project

Karaoke entertainment business is the entertainment service serves to everyone who would likes to sing a song. In Chiang Rai province not has many karaoke that make our see the opportunity to built karaoke entertainment service to serve everyone. The located we choose at in front of Mae Fah Luang University because it is closely with our target market. We focus on the students who study at Mae Fah Luang University and people who want to love to sing a song. This area is just only having one competitor from survey in this area that not enough with consumers need that make us can see that opportunity. Competitors karaoke have 4 rooms and not have good quality, for example, equipment damaged, old, and not have to update new songs for customer. So, that make we will think and plan to built karaoke entertainment to serve them to use this service and encourage them to enjoy with our service. This karaoke entertainment service can permit to drink alcohol in the room but consumer must buy alcohol from us because we not permit consumer to bring food & beverage from outside into our place. Our point of view want to make consumer feel enjoy and fun with entertainment. We have high quality service and appropriate for the funny party. We want to develop the front of Mae Fah Luang University to get high benefit and we think in next 5 years this university will very famous and have more student to study. Our karaoke has full facilities because we want to be the one and the best entertainment service in Chiang rai province. We can adapt our karaoke to be conference room because our VIP room that bigger and can serve to business man to do businesses and relax karaoke when businesses finish. The karaoke has three floors, in the first floor have food center that has food court around 5 or 6 shops and has library room to encourage student come to read books or talking with their friends also serve them with bakery and coffee shop in that room. In second floor and third floor has been karaoke room that has 4 VIP rooms and 15 standard rooms. We divided three types as 11 S of rooms, 4 M of rooms and 4 L of rooms (VIP rooms). This is the special thing in our karaoke we have 19 rooms and each room have different theme on wall, for example, bed room theme, safari theme, living room theme, jail theme, etc.

Karaoke business not the newest in Chiang Rai but it does not have full karaoke in Chiang Rai. It not has a big room and not has good facilities serve to customer. So, that is our opportunity to promote our karaoke to others for join and sing a song with us. We have fewer competitors in Chiang Rai and we think we are better than them because we have full facilities and everything has quality. The consumer can touch with new experience and new karaoke with us when they come to our karaoke. The characteristic of us will different because we know about the need of our target market and we can make them satisfied with our service entertainment business in a long period.

Objective
Planning of our project. 1. To understand and know about the method to do the perfection of business project. 2. To analyze a reality business that can be happen in the future as economic analysis, marketing analysis and etc. 3. To learning about the problem and working as a team. 4. To do research and can be built it in the real area. 5. To build the new experience of singing a long and improve Karaoke to be international. 6. To develop about the new karaoke in Chiang Rai and planning the project. How to know the problem and also solve the problem that will be occurring during working as well.

Benefits of project
Use the land in front of university to get high benefit and we give money to local people to get income by employ local people to work with us. If this project successful, the company will get high profit in long run. The consumer can touch a new thing from our karaoke service because it is a full with facility and consumer will can enjoy and fun with us. We can be the best entertainment in Chiang Rai province. Can support Mae Fah Luang University to very famous in Thailand (win-win business between Mae Fah Luang University and our company). Make income to local community and they have jobs. Can be the center point of student to meeting their friends.

Activities and Time frame Gantt chart

November2011 Operation method 1.Disscuss and create our topic 2.Searching data to support our group project 3. Brainstorm and write structure of building. 4.Presentation 6.Brainstrom and write group our project Chater1-3 December2011 January2011 Febuary2011

W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4

Chapter 2
Industry Profile

Chapter 2
Industry Profile

Nature of Industry
Karaoke come from a Japanese word which kara means empty and oke means orchestra. Therefore, karaoke means the tape that has only melody without a vocal voice. Karaoke business was originated from Japan that admires use in music production company for singer to practice sing a song. In case of company must go to show concert. It is needless to bring music instruments include singer for complicate and waste. It is the business for entertainment and relaxes. In 1997 is the year that karaoke began boom and popular in Japan because Japanese have habit to sing a song. In 1991 has survey found that In Japan there are 70,000 restaurant that installed karaoke and 52 million people love to sing a song. Karaoke business reached to Thailand in 1977 that began in Thaniya area. It is a night club place of business. In the past Thaniya is the center of Japanese businesses and tourists. The first time, most of customers of karaoke in Thailand are night life people that had a bad view because there had spirits and alcohol beverages with womens service. At that time, karaoke called Eight Tracks music. It was a cassette player and tape look like normal tape but bigger than normally tape. This tape not had vocal music. It had only melody and customer can sing a song by lyrics that written in the paper for look and sing follow it. From Thaniya road, karaoke business began spread became to new type of entertainment at night around Bangkok and big city in Thailand. Also Luxury club, restaurant hotel or caf for responded customer need. The government legislated at that time was night clubs must have musical instruments not more than 2 pieces that made those night clubs prefer to use keyboard and sequencer instead of full band that uses MIDI (Music Instrument Digital Interface) system. It was musical instrument that compensate all of brand by got support from producer of sequencer and keyboard that development technology and quality of product to the market. Around 1996, Karaoke Business was popular in middle class restaurants in Bangkok and provincial. Businessmen who manage Karaoke jukeboxes business and own them, will bring Karaoke jukeboxes into restaurants and share profits with restaurant owners 30% and the owner of jukeboxes got profit 70% by owner of jukeboxes responded about repair and update new song for serve service to customer. Owner of restaurant responded in electricity bill and safety. When Karaoke is expanded widely and Thai people are more bold expression

in party and social contact that prefer to use karaoke activity for entertainment. It makes bad view about karaoke decrease. Major Cineplex Company is the influencer which makes people changes their attitudes about Karaoke definitely. It established first Major Karaoke at Ratchayothin branch. The Major tried to create Karaoke Business in good image at daytime. Main customers were a students and families group that makes it is positive. It also has been supported from music production companies who produce Karaoke CD and Karaoke equipments are more modern that makes Karaoke Business is fast growing and very popular. Actually, there are many Majors competitors; a SF Music City, Big Echo, and Karaoke shop without womens service and open in daytime. In 2002, Thailand began to levy copyright according to WTO condition that levy from Karaoke Business first. GMM Grammy Public Limited Company is the first company to levy copyright then RS Promotion Public Limited Company, Copyright Music Limited Company, and others 15 companies follow levy strictly except TECA Company which manages international music copyright that effect to entrepreneur confuse. It made entrepreneur of business karaoke cannot adjust and cannot flight with high capital cause end the business. Result of that time, karaoke stopped and decelerated until 2003 entrepreneur understood about copyright and well select to use song all of companies so carry on business. http://karaokezone.blogspot.com/2008/05/blog-post.html Sing-a-song karaoke located in front of Mae Fah Lunag University. Owner business is a person who loves to sing a song and like to hang out so owner business want to share happiness give amusement in sing a song to everybody. Then establish sing-a- song karaoke for the place that relax and create entertainment to very gender and very age. There are students, worker, and elderly. Name of karaoke shop is Sing-a-song from sing a song in English word. The objective is support people who like to sing a song, ran away from problem, meeting point and want to relax. Sing-a- song karaoke provide high quality stereo, modern technology, the best karaoke program. In addition, our karaoke shop also has food and beverage including alcohol service. Our foods are delicious, clean safety and sanitarian. There are many styles including Thai food, Western food and bakery shop to responds of customer need that make customers are most satisfy, happiness, relax and comfortable compare as you sing a song at your home.

Situation of Industry
Nowadays, karaoke business is booming and very popular in Thai society in all of gender and ages include teenager, worker, and older. For our business, we have a different from other competitor because we provide the full service for customer. The location of our business is in front of Mae Fah Luang University that has only one competitor. That is Blur restaurant at Fah Thai market. There are two floors. First floor is a food court and second floor is karaoke room. There are four karaoke rooms that are not enough for people who want to sing a song. And there are many disadvantages of Blur such as low quality of equipment. So, it has a different style of our karaoke because our karaoke provide comfortable, faster service, update, cleaning and service mind. From that reason, it helps our business gain more incomes rather than other competitor because we have the differentiation and it has a modern style. So, it can attract customer to use our service. Moreover, the profit of our karaoke business will increase in each year.

Product and Service (in general)

Our karaoke entertainment business open on 10.00 am 02.00 am and located in front of Mae Fah Luang University. That has three floors; in the first floor have small food court and coffee shop for customer. The second floor, there are 8 karaoke rooms. We have 4 rooms of size L and 4 rooms of size M. Third floor have 11 rooms of size S. Size S can contain people for 1-4 person, and M for 5-10 person, and L for 11-20 person. All of rooms have 19 karaoke rooms. In each room have different theme and mix many styles together that from owners imagination. For example, concert room, movie room, boxing room, princess room, restaurant room, field room, flower room, under water room and etc. Aims to do that want to promote our rooms have high value and you can touch with freedom in entertainment world. Moreover, we serve food services for them and find high audio system equipments and song copy rights to response them to use it and they have satisfied with our service. The customer will have fun in good atmosphere and private like they sing a song at home. We have new songs and update every week such as Thai songs, international songs, Korean songs, and Chinese songs more than 1,000 songs. Our service that serves many services, for example, wi-fi service, high quality service, and food and drink court.

 We have food and drink service at the first floor that have many kind of foods such as Thai food, Italian food, bakery, juice, and coffee shop serve them with full service in both of entertainment and food. We not permit to bring alcohol and food that from outside to eat at our karaoke. We have high quality and high technology of karaoke system; also have cleanliness for customer feel comfortable. Customer can called for booking room before 1hour to attend to use our services. We have promotion to attract customer in special day, for example, birthday party. The customer can called from up to down for food order, then waiter will serve to them. Have high speed internet and Wi-Fi serve them. Update songs every week. For member, we have many promotions for them. If customer have problem with audio system they can call staff every time.

Vision
Think of entertainment - high quality service, thinks of Sing ka song karaoke, We want to be a leader of karaoke entertainment in Chiang Rai by provides modern technology, good stereo system, and high quality in service. We establish different theme in karaoke room, many kind of foods, bakery and variety song also Thai and international song for customers need. Otherwise we will be the first choices for customers when they need to sing a song and meeting point, party and relax.

Mission
Sing ka song karaoke mission is build relaxation and enjoyment to the customer or people who love to sing a song, run away from problem and hang out by legally which dont accept alcohol. We provide fair price to customer. Very side of room also S, M, and L we serve everybody are equally We will provide the best entertainment center for the people who love

sing a song and prefer to have meeting in private, good atmosphere with different concept and staff serve service and product with gentle and polite. Our new staff will train by our professional staff. We believe that our business wills achieve a goal and be accepted by everyone. We have a higher quality service, a good atmosphere, more modern technology, and more comfortable than competitors. We belief our customer will satisfy, comfortable and impress in our service. People in Chiang Rai choose our karaoke is the first choice for entertainment and relax.

Strategic planning
Our karaoke must have a plan to operate in each part for organize our business run by follow our objective. It helps to fix our karaoke shop to growing by follow the plan in the future. So, our karaoke shop use the strategy to plan our business successful by analyze both of factors are internal environment and external environment factor that makes us to ready to fight with other competitors.

Corporate level strategies

This is the strategy that we use for setting the way of karaoke business and make the karaoke business follow our vision. We will start our karaoke business by learning everything in our business and developing it step by step. When our business is stable, we can distribute our business in each sector in the north of Thailand because it has a little karaoke business like us. Then, we can access to the new customer and it is the same target market. It can make our business gain more profit and it can show the growth of our business.

Business level strategies

This part is the strategy that focus on highlight of our business and it use for competitive in a business for attract customer. We can attract the customer because our company focus on one target market and respond our customer. Were observing their behavior and what they want. Then, we will make them satisfy of our service. Moreover, our karaoke shop has a different from other that can make them to interest in our karaoke shop. Our karaoke shop has many of services. In Chiang Rai, Our competitive have a good service but they dont have any functions that different. So, our karaoke has the advantage in this part for attract them. Especially, the area in front of university has only one competitor. It is an opportunity of our karaoke shop because our karaoke shop has a different style and we will provide the better service for our customer.

Functional level strategies

This is the way to make our karaoke shop has the advantage of competitive. It is the factor that helps our business successful by provides the best supplier and makes the employee operate by follow the corporate and business level strategies follows; 1. Marketing mix strategies We are using the 4Ps strategies are product, price, place and promotion. Were observing behavior of customer when they come to use the karaoke service of the competitor. It makes us to gain more data to develop our business and it makes us to avoid the bad situation in the future. Product The most of customer like in the different of product and service. So, our business has many style of product such as the theme of karaoke room, technology and service. Price The price is the important factor that makes the impact of our customer. So, our karaoke will set the fair value because our karaoke shop has many choices to provide them. Place Were select the area in front of Mae Fah Luang University because from the survey, in Chiang Rai has many karaoke shop and most of shops located in the city of Chiang Rai. Then, its far from the university and its not comfortable of our target market. The important is it has only one competitive in the area that we select. So, this area is the best because we can access our customer and can attract them to come to our shop. Promotion Promotion is the necessary for our business because it can attract customer often use our service. So, we will set the promotion that make them want to joy with us such as the promotion like sing a song 10 hours, you can get the prevent form us. 2. Operations In the operation of service, the important factor is the human resources of the business. In our karaoke shop, the staff must care our customer. So, all of staff must have the training before work. It helps them to have a good character and have the potential to manage, take care customer including have a good relationship among people. The reason that we must training is our karaoke shop want to make customer satisfy with our product and service. 3. Financial Financial is the important factor that can measure our business growth or down. Were carefully to manage it because we must focus on risk that will occur in our business. And we must operate it by make it has the balance in income and expense. So, its very important to set the expense of the karaoke business and we must use the person who is the professional for this part. -

5C strategic
1. Customer We focus on the student of Mae Fah Luang University in Chiang Rai. So, if we setting our company in this area, its good because its easy to make customer who is our target market come to use our service. The purpose of our company that setting in front of Mae Fah Luang University is Mae Fah Luang University has only one karaoke shop and from the observe many students want to joy. Especially, they want to make some party but it doesnt have enough karaoke room and no more function. And our karaoke shop can attract the customer because our karaoke shop can providing that they want and have the special for them. 2. Company Were using the SWOT analysis for our company to measure that our company will be going on. By analyze in each part and compare with other. Then, we will adjust it to gain a maximum profit and least of risk business.

Internal
S Only one karaoke shop that have a different from other in Chiang Rai. Only one competitor in front of Mah Fah Luang University. We have many types of karaoke room. T When our business stable, we can distribute our branch. Less competitive of our location. If the end of semester, we will decrease in income. W Were access only customer who live around university.

External
3. Competition In Chiang Rai, it has a general karaoke shop. Our competition doesnt have any functions or it has a little to providing the customer. The most karaoke shops in Chiang Rai are in the city and it has the same of theme. And the route between city and university is far away from karaoke shop. So, it cannot provide the convenience for customers who want to joy. Moreover, the location of our company can access the customer who is the student more than in the city and our karaoke shop has many functions to providing for them. 4. Collaborators We have a supplier that supports our business and when we use a modern supply, it helps our business make an income increase. And we can response the thing that customer want. 5. Content For our company use the PEST analysis to analyze the external factor follows; P: Politic Nowadays, there are many factors of political that occurred in our country but it does not affect with our business. The reason is our business has a target market is a people who love to sing a song. Mostly, our target market doesnt interest about political; and they are teenagers. So, they want to make their life funny. Then, our business can gain the profit all of the times. E: Economic Nowadays, the karaoke is very booming because people like to sing a song. And our location is related with target market. So, the number of people who comes to use our service will increase. So, its the way that helps to upping the profit in our business. S: Social impact Our karaoke helps to create a new relationship between other because there are a lot of people will come to use our service. So, it helps to create the participation among people. Moreover, it helps to increase income for our business because our business likes a society for people who love to sing a song. T: Technology We are developing in our technology and providing the modern technology for our customer. In each week, we have to update in every part of business such as a new song.

Blue Ocean Strategy: BOS

Blue Ocean Strategy: BOS Formulation principles 1.Increase in the number of branches 2.Focus on the satisfaction of customer 3.Take care and follow our customer behavior 4.To set some strategy to attract customer Execution principles 5.Make a unity in the business 6.Planning for strategy Risk factor each principle attenuates 1.Select the best location 2.Lay off some employee 3.Update information 4.Increase in promotion and activity Risk factor each principle attenuates 5.Always have a meeting 6. Carefully when set some strategy

Our karaoke shop is using blue ocean strategy to improve our plan in the future. We have to developing product as a different from other by using a modern technology. Were providing the appropriate service for customer and try to make them satisfy with us. Our target market chooses to use our service because we have a different style shop from other. Our style doesnt have in Chiang Rai and the price is not different from other. So, its the interest for using the service.

Chapter 3
Market Analysis

Chapter 3
Market Analysis

General Environment Analysis

The general environment analyses show that a marketing manager must analyze customer needs and choose the strategy that match with process. A big number that force the marketing environment in shape to help organize your thinking, its useful to classify the various forces. The direct environment includes customer, the company, and competitors. The direct market environment or external market environment is broader and includes four major areas: there are Economic environment, Technological environment, Political and legal environment, and Cultural and social environment. The marketing environment it cant control because it is the external environment that why its useful to think of them as uncontrollable. And the general environment analysis done for describes the factor that effect to the business and how to select the strategy to match with the business to be stay alive.

Economic environment
Economic circumstance in Chiang Rai, Economic structure divided by GPP in Chiang Rai.

38.90%

31.83%

/ 2.72%

3.98% 3.81%

18.76%

www.klangcri.com/team/team3/data/.../API.../CAPIR_Aug_53.pdf

Chiang Rai province had a population of 1,255,387 people. The economy of Chiang Rai, the growth rate increased slightly from last year 2010. Fiscal improved in the best way because of the revenue collection during the fiscal year increase in 2010. Including with the government is accelerating sending money, especially in the disbursement of government subsidies and investment. In the part of the target group, the revenue of Mae Fah Luang Universitys student rearrange from low to high.

Income

Less than 4000THB 4001-5000 THB

5001-6000THB
More than 6000 THB

Technological environment
Now, Technology in Chiang Rai is modern such as 3G or Wifi. Everyone can live with the social network by connecting with internet, its make a simple life and comfortable. Technical skills and equipment affect the way companies convert an economys resource into output. Technological change open up new opportunities, but it also poses challenges for marketer. For karaoke business, the equipment (TV, computer, Microphone, Loudspeaker, etc) must have been developed for satisfy customer need with convenience, clean, luxury, and more function that are low costs and effective. So the opportunities of karaoke business are easier for than in the past

Political and legal environment

The conditions in operating of Karaoke under the Act of Parliament,2008. Under ministerial regulation, the licensing and operation of video, article 13. Said that: 1. Materials or equipment shall be suitable for the eyes. 2. Have a system sound and vibration insulating material as required by law. 3. Silent drug store. 4. No smoking or drug store. 5. Do not have an employee sitting with a customer inside the room. 6. Do not gamble. Any person who violates, the registrar has the power to suspend the license within 90 days or revoke the license. www.culture.go.th/moviehtml/datatestweb/datanew/gkmovie.pdf

Cultural and social environment

Nowadays, the karaoke businesses become a part of socials entertainment. The singer can control what song they want to sing by themselves. Karaoke are appropriate to a group of friend, group of business man give rest, or family who want to spend the time together. Because this is a good way for many people to make relationship that show the human social should have society. So, this is a good way for everyone to spend a little time of their life to have happiness because everyone cannot avoid the stress or problem in each day life. Although, the problem its not disappear but its always diluted.

Summary of General Environment Analysis

The general environment must be concern in term of external factor because the situation that cannot control must be able to realize that in present situation what position we are and how to do for make the business continuing. The opportunities always occur for the business but how we can analyze and manage the information that we have to be useful. So, before we invested the business we must observe the behavior and characteristic of the target group that we want. How to make them interested in our business and how to make loyalty.

Competition analysis
It is the main thing in business planning because it will help us to know about strength and weakness of our competitors and also help us to change the bad situation to be the good opportunities for us. We can analyze competition as follow;

Competitor Analysis
In Chiang Rai have less karaoke room because they dont interesting and not enough information about this business but now a day many customer they want to fine some place that can enjoy and relax with friends. Although, in Chiang Rai have karaoke room but some karaoke room they dont have the quality machine, dont have new song, not enough room or space for provide to customer. So we will have less competitors and all of them can separate like this.

1. Direct Competitor

There are the competitors that compete with us in the same market or have the same target market like us and they also have the same product and service like our company. From the research we know that in Chiang Rai has company that provide product and service like us follow these;

Ban Karaoke

Ban Karaoke located in the ban du and open 17.00 pm until 02.00 am in every night. They provide five rooms for the customer. All song always updated but they always have problems about the electric such as microphones, Televisions, etc. The price is 150 baht / hour. The target group they focused only the student at Rajabhat University.

Fah Thai Karaoke

Fah Thai Karaoke located in the Fah Thai market and open 17.00 pm until 00.00 am in every night. They provide 3 rooms for customer. The song not always updated and the

machine is very poor such as in one room they provide 2 microphones but can use it only one and some room the furniture is broken and cant use. The price is 120 baht / hour.

2. Indirect Competitor

There are the competitor who compete with us by select the different target market but the characteristic of their product and service is like our company and from the research we will know that in Chiang Rai there are many kind of karaoke room services as follow;

Big C Central Apia Square Come Thong Karaoke @ Inn come Hotel Bowing Karaoke @ Bowing Center Red rose Karaoke @ Red rose Hotel Come Thong Karaoke @ Inn come Hotel

Customer Analysis
The whole population of Chiang Rai is 1,227,317*1 only in Amphor Muang is 141,291*1. Target market that our company chooses is the student at Mae Fah Luang University, person who love to sing songs and like to arrange party. From the research we will know that this kind of customer the most of them age around15-25 years old*2 and some of them are the people who are working and always set party to meet with their coworker. From this characteristic of our target market we can adapt all of this information to improve our product and service in order to satisfy and attract the customer from our competitor. *1 - http://www.dopa.go.th/xstat/p5157_01.html *2 - http://dek-d.com/content/all/15633/

STP analysis

Segmentation From the questionnaire, our group uses the basic of marketing segmentation by

Demographic segmentation is the divided the segmentation by use the normal information of population such as age, level of education, and income.

Behavioral segmentation is the divided the market segment by attitude of user.

Psychographic segmentation is the divided by lifestyle. The result of questionnaire is

Age

Les than 17 24 up

Education

Freshmen Sophomore

Junior
Senior

Income

Less than 4000THB 4001-5000 THB

5001-6000THB
More than 6000 THB

What kind of your music do you like?

Pop Ska Modern

Rock
Hip Hop Country

Do you agree should be provide alchohol or not?

Agree

Disagree

Which day that you going to Karaoke?

Monday-Fridat Saterday-Sunday Afther exam

Holiday
Special day

The market segmentation s benefit are the company know about the need and satisfactions scope of the each segment and know about the opportunities in the market or the position of product suitable with the target marketing. In addition, the company can use the market segmentation for the standard of market targeting.

Market targeting
Is the evaluation and choose the target that have two steps are 1. Evaluating the market segment, we will study about three side segment size and growth Segment structural attractiveness Company objective and resources

2. Selecting target Our businesss market targeting is students and the people who want to sing a song and stay around Mae Fah Luang University area like a concentrated marketing. Almost student are sophomore or second year and junior or third year, they are between18-23 years old and there are income since 4,000 baht up. And they like to sing a song at karaoke around 78 percent and for the attitude of users are relaxation and entertainment. And almost their lifestyle is pop, modern and rock includes the students around 68 percent, they want alcohols.

Product position

Quality Low High

Sing-A-Song Karaoke Low Fah Thai Karaoke

Price

Ban Karaoke

High

Product position is the activity to determine the product and service of our business for increase the value and fine the important position in customers mind in our business. About Our karaoke, the located in front of Mae Fah Luang university area so there are many student and people interested to our karaoke. For the policy of our business, we establish this karaoke for full entertainment and relax, we preserve alcohols to students who more than 18 years old. In addition, our karaoke has food court, coffee shop and the clean toilet for every student who uses our service. Sing-A-Song Karaoke; we are high technology, update new songs all time, diversity theme and service mind for high expectation of customer.

Marketing Mix strategy or 4Ps

Marketing mix is variable of the markets that control the company for response the target groups need. There are four P are

1. Product

Our product is karaoke business for the student and the person who want to sing a song around Mae Fah Luang University. Our karaoke has three floors; the first floor is food court, coffee shop and bakery that we open for other seller to rent. For the second and third floor are the karaoke rooms. Our karaoke has nineteen rooms and three size by 4 rooms for room size L around 11-20 persons per room, four rooms for size M that around 5-10 persons per one room and last room is size S has eleven rooms for 1-4 persons. For the theme of each karaokes room, they are diversity theme and full entertainment to response most of students need who want new things and they love to take a photo. Sing-A-Song karaoke has nineteen theme by one theme per one room and the themes room are boxing room, concert, under water, heaven room, ancient time, bed room, bath room, library room, restaurant room, musical room, movie room, class room, field room, cartoon room, nature room, flower room, love room, artist room and princess room. Our karaoke is full option to serve consumer because we provide alcohol for who want to drink or enjoy with their sing a song but we provide the person who are 18 years old up. In addition, our equipments are high technology, more efficiency, meet the standard, update new songs all time and always improve our karaoke.

2. Price

For our karaoke, we set the price from the market price in low price for room size S, medium price for room size M and high price for size L because these rooms are serve consumer with convenience, comfortable, full of entertainment and when customer comes, we will serve them with service mind. The calculation the price comes from market price1 that suitable for students and when customer comes, we will serve them with service mind.
http://karaoke.co.th/index.php?option=com_content&view=article&id=16&Itemid=111

3. Place

The karaoke located in front of Mae Fah Luang University in Chiang Rai, near Por Pla restaurant. Sing-A-Song karaoke location is near the students dormitory, nearby road side and there is car parking so its easy to come because student can walk and ride motorcycle to Sing-A-Song karaoke.

4. Promotion

The Sing Ka Song promotes company in many ways for spread our business to be wellknow through the online media, internet, advertisement or word of mouse. In another way we promote via the local and poster to tell them what promotion our business have. In the first time, we have promotion for three hours and one hour for free. After our business constrain, we prove the promotion to every Tuesday discount for ten percent. For special day such as birthday we discount for twenty percent. In addition, Sing-A-Song karaoke has promotion about alcohols by three of Beer Chang is 129 baht and Blend 285 with mixers are 299 baht.

Sales forecast
Target market of Sing A Song Karaoke is Mae Fah Luang University Students and Chiang Rai people. In 2010,Chiang Rai provice have population around 1,198,218 people. (http://www.thaiwaysmagazine.com/chiang_rai/chiang_rai_glance.html) We provide this karaoke for the people who would like to enjoy and have fun with reasonable price. Its place for meeting, party and escape from the stress. You also enjoy with delicious food and nice atmosphere. We forecast the customer will come to use our services as follows:

Room size Amount of room

S 11 rooms

M 4 rooms

L 4 rooms

Contain customer Price

1-5 people 250 THB/hr

6-10 people 350 THB/hr

11-20 people 450 THB/hr

Opening times

10.00-02.00 AM 16 hours a day

10.00-02.00 AM 16 hours a day

10.00-02.00 AM 16 hours a day

We also provide the 1st floor for monthly rental services. This area use for food center. It divides into nine booths. The cost for rental is 7,000 Baht a month. The total revenue per month is 63,000 Baht The total revenue per year is 756,000 Baht We also sell or serve alcohol to customers following: Blend 285 299 Baht Blend More 399 Baht Red Label 999 Baht Chang beer 45 Baht Leo beer 50 Baht Singha beer 70 Baht

Sale Monthly

Sales by Year

Sale Forecast Five Years

Sale Forecast Year 1 Sales Karaoke room size S Karaoke room size M Karaoke room size L Liquor Beer Booth rental Mixer Subtotal Direct Cost of Sales 11,160,000 4,851,000 4,617,500 645,780 786,750 780000 302400 3201630 12487500 5481000 17968500 776552 1017950 780000 302400 3659902 13447500 5876000 6615500 714081 813309 780000 302400 3466340 15,367,000 14,077,500 7,686,000 9,009,000 1075850 977960 780000 302400 4212060 7,644,000 9,396,000 1035540 1083250 780000 302400 4288790 Year 2 Year 3 Year 4 Year 5

Marketing Expense (Sales Incentive)

Sing A Song Karaoke have to pay for equipment, licenses and promoting as following: -Karaoke audio systems equipment: consist of Mixer, Power AMP, Power Mixer, Speaker, Wireless Microphones, Projector, Lighting and LCD TV. - Music Copyright: The expense of music copyright depend on the record labels. There are GMM Grammy, RS Music and Sony Music. If record labels are famous, it will be higher price. - Karaoke furniture: There are 19 rooms with different concept so we need the several of furniture to complete our concept that why we choose concept furniture company (http://www.konceptfurniture.com) -Advertisement: We create own website and Facebook fanpage that we can update new information. It is way to contract and get feedback from customer so they can give us a complaint or compliment via website and facebook. We also promote our karaoke by using advertisement and brochure. -Marketing Research: We create marketing research questionnaire for our customers. We would like to know what customer want and make them satisfactions. -The internet service: Karaoke offer internet service to customers. We use broadband high speed internet which is high quality internet that always available for customers. We need to pay for internet 1,000 Baht/month - Liquor tax: We have to pay tax on alcohol products 1,100 Baht /year. -Signboard tax: It is tax for signs. Signs are one of the capital assets of a company. Therefore, it is a charged tax for all companies that have signs. The signboard tax is very unique itself, because it has specific taxation methods and rules. There is no uniform charge based on the sign's size. Taxes are paid yearly and are based on the language used on the sign. We use only foreign language or foreign language and figure so we need to pay each 500cm2 for 40 Baht. For our signboard tax we pay for 200 Baht/Year. -Electricity charge Electricity / day Electricity / month Electricity / year

1,495.3 44,859 538,308

Baht Baht Baht

-Wage payment Wage payment/Month -Wage payment/Year

=76,000 Baht =912,000 Baht

-Water charges : We have to pay for water charge 150 Baht/Month.

Chapter 4
Investment

Chapter 4
Investment Pre-Operating cost
Landscape1 Creative and planning The company establishment permission2 Install telephone3 Other Total 600,000 Bath 60,000 Bath 50 Baht 4,004.5 Baht 20,000 Bath

684,054.5 Bath

http://duckfamily.siam2web.com/1 http://www.dbd.go.th/mainsite/index.php?id=1012 http://www.ttt.co.th/th/index.php?option=com_content&view=article&id=56&Itemid=663

Cost Investment

List Land Building and decoration Air Condition Table Sofa long 264x264x70 cm. Sofa medium 169x74x65 cm. Disco light Standalone Karaoke-Atom Intel Mixer Power Mixer Power Amp Speaker Signal Processor Wireless Microphone Projector Motor Screen Case CPU TV LCD Keyboard Mouse optical wireless Dining table Chair/sofa sofa(apple style) List Table(set)black-pink Rack Refrigerator(HITACHI) Refrigerator(TOCHIBA) counter office table Bar chair telephone Calculator white light light orange Ventilators glass hi-ball Ice bucket The grip of ice Total

Price/Unit

No. of Unit

12,600 19 750 19 25,600 8 3,990 11 390 19 14,500 19 7,990 19 17,200 19 19,200 19 15,800 46 22,500 19 9,900 23 19,900 4 9,500 4 9,000 19 59,990 15 390 19 390 19 510 15 2,500 2 1,200 3 Price/Unit No. of Unit 3,120 6 1,500 4 28,990 1 5,290 1 4,500 2 7,000 1 1,000 4 1,500 1 12,500 1 32 36 25 100 970 21 160 19 21 19 5 19

Price 7,600,000 3,550,000 239,400 14,250 204,800 43,890 7,410 275,500 151,810 326,800 364,800 726,800 427,500 227,700 79,600 38,000 171,000 899,850 7,410 7,410 7,650 5,000 3,600 Price 18,720 6,000 28,990 5,290 9,000 7,000 4,000 1,500 12,500 1,152 2,500 20,370 3,040 399 95 15,500,736

Percent 49.030% 22.902% 1.544% 0.092% 1.321% 0.283% 0.048% 1.777% 0.979% 2.108% 2.353% 4.689% 2.758% 1.469% 0.514% 0.245% 1.103% 5.805% 0.048% 0.048% 0.049% 0.032% 0.023% Percent 0.121% 0.039% 0.187% 0.034% 0.058% 0.045% 0.026% 0.010% 0.081% 0.007% 0.016% 0.131% 0.020% 0.003% 0.001% 100%

Depreciation cost

Operating Cost
Raw material cost List Alcohols - Blend 285 -Ben More -Red Label Beer -Chang -Leo -Singh Books -Magazine -Newspaper Ice Soda water Coke Total 50 10 40 118 120 168 4book 90 book 2 60 Lung 60 Lung 60 Lung 200 900 80 7,880 7,200 10,080 178,320 450 480 624 60 casket 60 casket 60 casket 27,000 28,800 37,440 2208 3840 5700 Price/Unit No. of Unit/month 5 casket 5 casket 5 casket Price 11,040 19,200 28,500

 Machine/Tools/Equipments

Standalone Karaoke-Atom Intel Brand: IDN Sound: HD Audio(HightDefination Audio(Rezltek) Picture: VGA,DVI, SVDO, AVDEO Drive: CD, VCD, DVD, USB Port Price: 14,500B. Units: 19

Mixer Brand: YAMAHA Type: MG82CX Support:8 Input (4 Mono + 2 Stereo) Price: 7,990B. Units: 19

Power Mixer Brand: YAMAHA Type: EMX212S Support:12 Input (8XLR Stereo input) Price: 17,200B. Units: 19

Power Amp Brand: YAMAHA Type: P2500S Support: 250 W x 2 (8 Ohms) Price: 19,200B. Units: 19

Speaker Brand: TOA Type: TOA HX-5B Support:Compact Line Array Speaker Price: 15,800B. Units:46

Signal Processor Brand:Focusrite Type:OctoPreMkII Dynamic Price: 22,500B. Units: 19

Wireless Microphone Brand: SHERMAN Type: MIC-9401 Support:80 Channels Price: 9,900B. Units: 23

Projector Brand: Vertex Type: Vertex XD-2120 Pixel: 1024x768(XGA) Picture: 23"-300" Price: 19,900B. Units: 4

Motor Screen Brand:GyGAR Type: M-120 Picture: 4:3, 72"x96" (120"Diag) Price: 9,500B. Units: 4

Case Brand: DELL Type: Core 2 Duo Support:1.60 GHz 2.93 GHz Price: 9,000 Units: 20

TV LCD Brand: LG Support:3D Full HD 1,920x1,080 Sound: 3D surround Price: 59,990B. Units: 18

Keyboard Brand:Atake Type:Unicon Support:Windows XP/ME Price: 390B. Units: 20

Mouse Optical Wireless Price: 390 Units: 20

Sofa (Long) Brand: FORM Size: 264x264x70 cm. Price: 25,600 Units: 8

Sofa (Medium) Brand: JAMES Size: 169x74x65 cm. Price: 3,990B. Units: 11

Air Condition Brand: Central air Type: IF-12 BTU: 12,099 Price: 12,600 Units: 22

Table Color: Black Size:21x36 Price: 750B. Units: 19

Disco Light Size: 6 Price: 450B. Units: 19

Dinning Table Color: Red-White Price: 510B. Units: 15

Chair/Sofa Color: Pink Price: 2,500B. Units: 2

Sofa (apple style) Color: White-Yellow Price: 1,200B. Units: 3

Table (set) Color: Black-Pink Price: 3,120B. Units: 6

Rack Color: Colorful Size: 317x423 Price: 1,500B. Units: 4

Refrigerator Brand: HITASHI Size: 590x615x1, 798 mm. Price: 28,990B. Units: 1

Refrigerator Brand: TOSHIBA Type: GR-B145Z Price: 5,290B. Units: 1

Counter Color: White-Pink Size: 1x1.5 m. Price: 4,500B Units: 2

Table (set) Price: 7,000B Units: 1

Bar Chair Color: Red Price: 1,000B Units: 4

Telephone Brand: AVAYA Type: 2410 Price: 1,500B. Units: 1

Calculator Brand: Casio SE-C300 Type: SE-C300 Price: 12,500B. Units: 1

Ventilators Brand: Panasonic Price: 970 Type: FV-20AUT3 Units: 21

Glasses Brand: Ocean Price: 160 per 12 Unit: 19

Ice bucket Price: 21 Unit: 19

The grip of ice Brand: Anchore Price: 21 Unit: 19

Fluorescent Brand: OSRAM 36 watt Price: 32 Unit: 36

Chapter 5 Operation

Chapter 5 Operation

Production and Operations Analysis Product Characteristics (in detail) Sing-A-Song karaoke has 3 sizes of rooms that include with S, M, and L. size S has 11 rooms, size M has 4 rooms, and size L has 4 rooms. Size S can contain people around 1-4, M 5-10, and L 11-20 persons. All of rooms we has 19 rooms in our karaoke. In each room have many themes and many feeling to serve customer to feel fun and happy. We have high quality of products and services because we use good products. The songs will update every week that more than 50,000 songs. The equipments are high standard and high technology. In the first floor, we have food service and have a library rooms to serve customer for eat meals, drink coffee, and read books.

Customer Station The customer can use the phone in room to called servicer and ordered food and beverage deliver into room.

Device for songs The customer can select the song by use remote control and write the name of song in computer or find the new update songs in the front of desktop wall.

Audio systems We provide the high quality audio to the customer included microphone, mixer, amplifier, and loud speaker that set in each room.

Video systems We provide the high quality products to serve customers that have LCD and projector.

Reception Station We have a receptionist to booking rooms, check-in, check-out, and help customer to use with our services in the front of up stair.

For the services, Sing ka Song serves the best services to the customer as follow; Have food and drink service that have many kind of foods, for example, Thai, Italian, and bakery zone to serve customer with full service in both of entertainment and food Allow alcohol and food from outside in to the rooms High quality and high technology of equipments Customer can call to booking the rooms before 1 hour Have special promotion and special price for special day Can ordered the food to deliver in the rooms Free Wi-Fi The songs will update every week Have special promotion to Sing-A-Songs member If customer has a problem with audio system, they can call to server or servicer to help them to solve it Specification and Feathers Sing-A-Song karaoke have many style of rooms in each room to make customer to feel fun and satisfied. We have 19 rooms and we have 19 themes in each room as follow;

Size S has 11 rooms including with; Boxing room

We set the rooms to be boxing room that make customer to feel like stay in boxing ring. We will draw the picture of famous boxer on wall and use light with red and blue color and have mitt to be furniture in this room.

Concert room

We design this room to be concert stage that has a light like a disco to help customer feel their performing in concert. We use black color on wall and have small decoration and draw the audience on the wall.

Under water room

This room use blue color paint on the wall and have a small aquarium to show about the fish and water animals. That make customer feel to stay in a under water.

Heaven room

A room use white color to paint on wall and have furniture to feel like a heaven. We draw fairly in both of men and women on the wall. And we will provide a beautiful tree in this room.

Ancient time room

A room likes a history room that concludes with ancient things and ancient attraction to serve customer return to past time. The furniture will be use old furniture to decorate.

Bedroom

This room will be bed room and we use white color on wall. We have a bed to stay in the corner of room and have sofa to sing a song and the customer can bring the picture to put in this room. Also, they can write to say something to others on the wall that we provided.

Bath room

We provide this room to make customer feel fresh. The decoration will use the item in the bath room such as shampoo, soap, toothbrush, etc. we have a zone to washing hand and have a model of bathroom in this room.

Library room

We have many books in the room and have much type of books such as fantasy books, cartoon books, and etc. We provide a table and a chair to read books and have sofa in the corner to serve customer bring the books to read. Also, customer can bring the book to reads and we not allow bringing books to out of room.

Examination room

The room use white color on wall and have white board and clock to be decoration. And have many tables and chair in the room. Inside, the front of door have name of people to have the right to test in exam. On the table have pencils, rubbers, and pens to put on it. That make customer like to stay in exam room.

Musical room

We provide the instrument in the room such as drum, guitar, ukulele, violin to serve customer to play it. We have a cord of song to encourage customer to fun with musical instruments.

Movie room

We provide the room to be small theater that has many movies to serve for customer. The wall use dark red and black color to paint on wall and have picture of famous actors on wall too.

Size M has 4 rooms contain with; Classroom

The room like a class room to study. We have a white board and the books put on table. At the wall we draw the teacher will teaching in the wall and make customer feel they will studying.

Casino room

We provide the room to be a small casino. We have slot game to serve in this room and have poker to be decoration. The wall use black color and use yellow light in the room.

Cartoon room

The room draw the character of famous cartoon such as doreamon, pooh, kitty, and barbi. Also, they have the dolls in the room and not allow bringing it to outside. The room will colorful and make they are like a young again.

Nature room

This room use green concept to design a room. We have a chair and a table. The table and chair have tree growing inside and we provide a small tree to grow in this room to make like a forest in town.

Size L has 4 rooms contain with;

Flower room

In the room have many kind of flower such as roses, Lilly, orchid, and etc. we provide the room to be a small flower garden and have a ground to picnic.

Love room

A room use red color to paint and draw a heart on the wall. Furniture use red color and customer can bring to photo to paste on the wall and can write on wall that we provided for them.

Artist room

The room will have the photo of artist and on the wall we allow the customer can draw or paint on the wall. So, that encourages the customer to participate with activities in the room.

Princess room

This room is very luxury because we will use luxury furniture to decorate in this room. It has a mirror, comfortable sofa, and wardrobe in the room. And we provide the princess cloths for customer can take a photo.

 Services Process

In our business, we have high quality in both of products and services. So, that make we have good staff to care and solve when the equipments has a problem. We divided into 2 parts as follow;

Front office

This part is communicated directly with customer. When the customer come to use a service they will have high contact with customer, for example, booking the rooms, ordered food and drink, check-in and check-out room. The customer can communicate with front office to help anything.

Back office

This part not communicated directly with customer. They are just to solve when the equipment has a problem that low contact with customer. For example, the staff or technical staff they just have a role to fix and solve systems when it had a problem.

 Location Sing ka Song karaoke will locate in the front of Mae Fah Luang University in Chiang rai province that near Po Pla reataurant. There are 1,600 square metres and the size of building has 540 square metres that have 3 floors.

 Facility Layout

In the first floor, we have 2 zones. First is zone for eating and second is zone for relax and reading. We have 6 restaurants to serve food to consumer and have area to eating. In library zone, we provide many books for consumer can bring to read it. In side of library room, we have bakery shop and coffee shop in that room. The consumer can use high speed internet in library room and free wifi all of building. Before consumer entrance to sing a song, they must booking the room before and money at the counter. Then, if the audio or equipment has a problem they van call technical to see and solve it. And they can call to ordered food to deliver to the rooms, its free services.

In the second floor have 8 karaoke rooms. We have 4 rooms of size L and 4 rooms of size M. Size L has flower room, love room, artist room, and princess room. And size M has classroom, casino room, cartoon room, and nature room. Also, in this floor we sell beverage and snack to customer. Size L contains people 10-20 persons and size M contains 5-10 persons. Moreover, we provide the area to relax too.

In the last floor, we have 11 rooms all of rooms are size S. It can contain people around 1-4 persons in each room. In this floor have boxing room, concert room, musical room, heaven room, under water room, bedroom, library room, examination room, bathroom, movie room, and ancient time room.

Logistics Management Our company doesnt have the logistic because our service cant move. We are providing services at the company and make customer come to use our service. So, our company hasnt the human resources management in many departments and its the way to make the company avoiding the rampage.

 Facility Management The location of our company is in front of Mae FahLuang University. It makes the effect about noise pollution to other people that living in that area. So, were set the role for our company by setting the time to open and close to avoid the conflict with other. However; our company has the soundproof panel for keeping the sound in each room.

Chapter 6 Administration

Chapter 6 Administration
Direct labor
Our company is provide service to the customer so we will dont have production process. So we will dont have raw material cost and direct labor cost. But we still have manufacturing overhead and we estimate the manufacturing overhead cost per month as follow: 1. Salary of employees Number of employee 1 persons 1 person 2 persons 1 person 2 persons 2 persons 1 person Salary per month 7,000 per person 8,000 per person 7,000 per person 15,000 per person 7,000 per person 5,000 per person 5,000 per person Total 7,000 8,000 14,000 15,000 12,000 10,000 5,000 5,000 76,000

Receptionists Accountant Maintenance Manager Staffs House Keepers Security 2. Repair and Maintenance Total

Administrative
o Electricity / day Electricity / month Electricity / year o Copy Rights Alcohols o Water supply o Telephone bill2 o Internet1 o Copy Rights music o Advertisement tax3 o Advertising 1,495.3 44,859 538,308 1,100 150 300 1,000 Baht Baht Baht Baht /year Baht/month Baht/month Baht/month

229,200 Baht /year 200 10,000 Baht/year Baht/year

Chapter 7
Financial Analysis

Chapter 7 Financial Analysis

Chapter 8 Risk management

Chapter 8 Risk management

External Risk
PEST Analysis

Political

Political factors deal with the degree to which the government influences and controls businesses. For a karaoke, the most important factors will be about the best karaoke song and provide nice service. A karaoke will be affected by factors that affect other businesses as well, such as copyright, tax rates and labor laws. We might have to face is with the changing of the licensing laws, so we need to learning and following the laws for karaoke.

Economic

Economic factors are extremely important to a karaoke. This is because karaoke are a thing that not a necessity, people must have the disposable income to spend at a karaoke. Economic growth is, therefore, extremely important for karaoke. A karaoke will also be affected by the economic factors that affect most businesses such as the cost of capital and inflation. Regression of economic also against the karaoke business as the entertaining market, not always but, gets easily affected by economic decrease so that means customers will get low income and they have to save their budget to use with other thing that more useful. Our target is student so they might not able to afford the room fees and service charge because they still earn money from parents.

Social

The social factors of a market will have a huge impact on a business. The important social factor is the attitude that people have toward karaoke. Some people might have negative thought that karaoke is a dangerous places and should never visit.

Technological

The change in technology from technological has affect to the karaoke business, for the fast updated songs. Otherwise, karaoke singing mobile application prevents individuals to seek karaoke alone, as we are living in the smart phone era that provides diverse alternatives in entertaining market approve that competitive force works against the karaoke business. Furthermore, by looking into the components of competition, low entry barrier, high bargaining power of buyers with low switching cost and high bargaining power of suppliers with few karaoke system suppliers, high existing rivalries, and high substitution possibilities support the reason that competitive forces work against the karaoke business. Regulatory forces work for the business as it is under free and fair competition.

Five Forces Model

1. Threat of new entry The threat of new entry is a normal level because in the future our business may purchase the copyright from the international country. Our karaoke has an international song to respond our customer. Our karaoke will set the promotion and develop in our service to be better for make the customer royalty. In Chiang Rai, it has not karaoke center that including all of service as our karaoke. Therefore, our company will create a relationship with other copyright company to avoid of risk in loss of song.

2. Rivalry between exiting competitor The rivalry between exiting competitor around our karaoke is low level. Our karaoke has the competitor in direct and indirect. However, it does not affect with our business because the location of our company is in front of Mae Fah Luang University that is nearest with our target market. Our karaoke has the identity of style in karaoke room such as a different theme and a quality of equipments. Our karaoke may set a new strategy to attract customer and develop our karaoke such as promote our business and make the opportunity for customer to comment or request many things on fan-page website. In addition, our karaoke is providing the service that customer want because we are survey of their need before.

3. Substitute product The substitute product is low level. Due to it has jukebox karaoke, karaoke machine. Mostly, it is the substitute product of karaoke but it is not the same with karaoke shop if they sing a song at home. In addition, our target market is student. They are not purchasing the karaoke machine or using the jukebox service. The reason is they want to sing a song with their friends and they want to have the freedom of sound. Our karaoke is keeping the noise and it does not affect with people around that area.

4. Bargaining Power of suppliers The bargaining power of suppliers in our karaoke is high level because we are purchasing product in a lot of numbers. And it has a lot of shops to providing about the equipment. And the costs of products are not difference with the general market. When our business has an opportunity to bargain equipments and it makes the profit when we can reduce our cost of goods.

5. Bargaining Power of buyers The bargaining power of buyer is low because our karaoke business has a price as normal rate. And our business is fixed the cost of each room that customer does not bargaining. Our karaoke has the advantage because it is only one direct competitor in front of Mae Fah Luang University. In addition, our business is focus on student that they want to enjoy and party with their friends. Including, the service in our karaoke has a quality to provide our customer.

Internal Risk Risk

1. The problem of quarrel and fight

Description
When customers drink alcohol and get drunk, they might quarrel and fight with each other. It also has effect to other customers. They might feel insecure and bored of this situation.

Solution
We have a Security Guard to take care of and secure all customers when they come and use our service.

2. Income uncertainty

Usually, there are large number of customers on holidays and Friday until Sunday because it is meeting time for friends, coworker and family etc. low number of customers on Monday-Thursday. The weather conditions and rapidly climate change in rainy season also has effects to circulation.

We have a plan and money for prevent loss from income uncertainty

3. Employment ability

We have to train employee every year to maintain the quality of service.

Send employee to have a training course every year.

4.Natural disaster

The risks might occur at any time such as earthquake, flood and conflagration. This is unpredictable risk.

Our karaoke will buy the insurance which assure that we will not get lose from those disaster.

5.Compettitor

We have competitor at Fahthai but they have low quality than our karaoke.

-The way to make our karaoke differentiation is provide the various style and high quality of rooms and service to meet customers need. -The price is reasonable. -Sing A Song karaoke located in front of Mae Fah Luang University and our target market is Mae Fah Luang University Student.

Sale Decrease

Interest increase

Cost/ Expense

Chapter 9 Conclusion

Conclusion
Sing-A-Song Karaoke located in the front of Mae Fah Luang University, Chiang Rai province. Inside the building, we provide 3 floors to serve customer to use it. In the first floor, it is a food court and library zone and serves with coffee and bakery in that zone. In the next second and third floor, we separate the rooms to be 3 sizes include with S, M, and L sizes. We have 19 karaoke rooms and each room different in theme and decoration. In each room, we provide many themes to serve customer to choose and use it, for example, boxing room, concert room, haven room, bedroom, examination room, etc. Every room will different in theme and decoration because we want to make difference from others. We provide beverage zone for sell snack, alcohol, and beer for customer. Our vision wants to be a leader of karaoke entertainment in Chiang Rai province by provides modern, technology, facility, and high quality to customer. It is like our slogan Think of entertainment high quality services, thinks of Sing-A-Song Karaoke. Most of target markets are general customer who likes to sing a song, but we focused on the students who study in Mae Fah Luang University because our business located there that makes us concerned it. We will study about the characteristic of Chiang Rai people by use STEEP strategy to research and analyze the data. Our competitions are not much in Chiang Rai province because they not have high quality with equipment and they not have special thing to make different in their business. So, that make us can have more advantage better other competitors because we have high quality with equipment, good services for customer, and we good system to booking when the customer will use our services. Before we want to study to do this project, we will survey to ask students in Mae Fah Luang University about their opinion for this project. And most of them want to have karaoke in the front of their university because it can be the place for relax and meeting their friend. In financial statement, sales forecast will be increase in every year because we have more customers to use our services. And that make us to get high benefit when to do this project. It can show for the investor who wants to invest in this project, your money will not lost because we study in deep detail to offered this project. We will calculate everything about financial statement to show income since open business to next 5 years. That can make the investor confident with this project when they want to invest.

Reference

Reference
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