NAMES:

LAURA ALEJANDRA CARRILLO ARENAS

ADRIANA LUCIA PATINO
CRISTIAN DAVID GONZALEZ MALAVER

DRAFT DOCUMENT (THAILAND)

Human resources:

The first thing that you have to do if you want to expand your company into
Thailand is to know how the market works there, and to do that you have to
hire local people but also people from your country (Colombia). So I am giving
you some recommendations about hiring a local or a foreign person
depending on the area of the company: 1. In the department of marketing
maybe you can hire a local person because its important to have the point of
view of a local, in fact this really matter because you have to know how people
think in Thailand in terms of what they like and what they dislike in
advertisement and how to convince Thai people to buy your product. 2.The
general manager of the company in Thailand could be one person from
abroad (Colombia) who knows exactly how works the company and some
local people can help him to understand the market, that is actually very
important because you can have the general manager that knows exactly how
the business works but in Colombia, not in Thailand, so thats why the general
manager should build a team hiring local people (experts) to help him to
understand the Thai market, in terms on suppliers, competitors, customers.
3. The manager of human resources should be definitely a local one,
because human resources is about law as well so its important to have a
local in this position also because this person would know how to manage the
normal employees and all the obligations and benefits that those people have,
also you have to be very careful with the syndicate and the workers strikes
because that can give you lots of problems, so thats why its better to have a
local person there. You have to know that you as an investor you can be the
owner of the whole company but in terms of work force, Thailand has a
specific law that says that maximum the 49% of the workforce in Thailand can
be workers from abroad, but at least the 51% of the workforce have to be Thai
people.
Source: (Buddy, s.f.)
 The structure of the company is also a very important item that you have to
be careful with , Thailand is a High Power Distance society but also Colombia
is, so that shouldnt be a big issue. According with Geert Hofstede In high
power distance countries and organizations, people don't question the
decisions of their leaders. Leader/subordinate relationships are not close and
leaders are expected to earn more money and respect. Subordinates expect
to have their jobs and responsibilities dictated to them, and in some cases,
will not articulate disagreement with authority for fear of the consequences for
stirring up conflict. Given the previous definition it is important to have a clear
and organized hierarchy in order to have the company and the people under
control. You have to know but also you have to show that the managers and
subordinates are not the same, so the offices for example cannot be the
same, the offices of the managers are supposed to be bigger and nicer, while
the offices of the subordinates can be a normal ones. The type of the
company can be a pyramid because of the hierarchy and the long way from
the bottom ( less important members) to the top ( most important members)
Source: (Whetzel, s.f.)

The wages of the company is an aspect very relevant when we talk about
how to be successful, it is important because you have your own budget
where you know exactly how much can you pay per month to your employees,
but you cant be stingy with that, it is important to have the employees happy
but also satisfied with their jobs, but as I mentioned in the previous
recommendation Thailand is a high power distance society so the hierarchy
in the company has to matter, but then the question is: How to manage and
how to be fair with employees in terms of wages even though that the
company must follow a pyramid in the hierarchy but also in the salary?. Well
that is not an easy question, the amount of money that managers and
subordinates receive are supposed to be different, so you can do that and the
people will accept that because of cultural reasons, but to make the people
feel comfortable and satisfied with their jobs, you can offer some incentives
that would help a lot, because with the correct incentives you encourage the
people to be better and better in their jobs, so they know they will get an
incentive back. The Thai law doesnt provide any specific guide for incentive
the employees but the most common benefits or incentives that the
companies uses to give to their workers are days off and sometimes money
at the end of the year depending of the incomes of the company.
Source: (Isaan Lawyers, s.f.)
Finance:
The financial system of Thailand is important to know because every
country has its own system, so I recommend to you that if you have the
money to invest in Thailand, the first thing you have to do is make a budget
that includes everything that you are going to spend there, you can bring
the half of this amount as an investor and the other half you can use the
financial system of Thailand, the best option is to use the depositary
corporations like commercial banks , special financial institutions, saving
corporative and credit unions. The Thai financial market it is really big with
different international but also national banks working there like: Bank of
America, Bank of China, Bank of Thailand, Paribas Thailand, Citibank,
Bank of Tokyo, Indian Overseas Bank, Islamic Bank of Thailand and some
other banks. You as an investor have to know that you have to ask for an
investment visa and to get it you have to show to the Thai government that
you will invest at least 10 million of bath, which more or less is like
286.800,00 USD. So according with what I already said, you can bring
from Colombia the half of this amount which is 143.400,00 USD, and ask
for a credit bank the other half of the money with is 143.400,00 US. The
range rate of lending money in Thailand is from 7% to 10, 25% per year,
so that means that if you get a rate of 10% then you will have to pay a rate
of 14.340,00 USD per year.
Source: (BANK OF THAILAND, 2014); (SWIFT, s.f.)

As we will explain in the sourcing and production recommendation, we

want to establish a production plant in Thailand, thats because we want
to produce the whole product in Thailand, so it is very important to take
into consideration the expenses that it will take place if we want to produce
the tea in Thailand. There are 2 principal aspects that have to take place
in terms of analyzing the expenses that we would have when we enter into
Thai market: Tea and bottlers
Thailand is a producer of tea which produces an average of 75.000 tons
of tea per year and Thai tea is good quality and inexpensive. (Actualitix,
s.f.). We are going to hire a bottler company to make our bottle of tea,
Hatsu tea has a really uncommon bottle, so we will have to explain them
how to do our original bottle, but that wont be a problem because Thailand
now is improving that industry; actually a big high speed bottling line was
established in Thailand recently (Sidel, s.f.), according with Sidel, that
company is looking for customers so that would be perfect for us since
they are a big company with a really good technology and we are willing
them to work with us. So at the end of the day if we are in a country where
tea is cheap and good quality, and also the country has a big industry of
bottlers, it is better for us to make the product there in terms on finance,
because it will be cheaper of us doing that, than producing the tea in
 Colombia, and exporting it to Thailand paying logistic stuff, exportation
costs and of course taxation.

In terms of exchange rate valuations we wont have problems because as

I mentioned in the previous recommendation, we will have the whole
production plant in Thailand, and all the raw materials that we are using
are going to be from Thailand so we are not exporting and not even
importing anything. That means that we are going to buy everything in
bath but also we will receive bath when we sell our products, we decided
also to build the production plant in Thailand in order to avoid exchange
rates valuations because we knew that if we would have decided to make
the product in Colombia and after that exporting it to Thailand, we would
have had to deal with exchange rate and lately the price of dollar is
changing a lot lately (ARMENPRESS) so we think that making the product
in Colombia and after exporting to Thailand it is not a business. So when
we made the decision of building the production plan in Thailand we did
thinking about avoiding international procedures, trying to reduce costs
but also we thought about finance benefits of our decision.

Sourcing and production:

We recommend to open a production plant in Bangkok-Thailand to

produce Hatsu tea because even though the workforce is a bit more
expensive in Thailand (US$ 414 approx.) than in Colombia (US$ 240
approx. ), we will avoid exportation costs, logistic stuff, and also some
taxes of exportation, and on the other hand we will create jobs in this
country because as we mentioned before, we have to ask for an
investment visa and the Thai government says that we have to hire at least
51% of Thai workers in our company, so if we build the company there we
will be following the law. (Preciosmundi, s.f.). We already know that if we
want to build a production plant in Thailand, in one side we will be avoiding
exportation costs, logistic stuff and taxes of exportation, but in the other
side we will have to pay national taxes, but the good news is that the
government of Thailand is encouraging international companies to go
there and create jobs and in exchange, the government will be soft with
the taxes (Deloitte, s.f.). When we start the business there we can rent a
small production plant, first to see how Thai market reacts in terms of our
product, and if the business goes good, we would rent a new bigger place.
 In order to find the correct person for each charge in our company but in
this case in the production department, we would recommend make an
agreement with some universities in Thailand, so we can have some
interns in our company and we will make sure to bring the best students
of each class in the universities, we will incentive them to come and do the
internship with us and in exchange if they are good workers we can hire
them officially when they finish the internship. (OPEN MIIND PROJECTS,
s.f.) So, in the production team we will have students but also we have to
hire a manager, and that manager according with the human resources
recommendation, should be a local person with experience in
management of personnel and knowledge in the industry, however this
manager needs a support team that already has time working with tea
Hatsu in Colombia so they can work together offering to the manager
assistance and some advices if necessary in terms of production and
quality of the product.

As we said in the last sourcing and production recommendation, the

production plan would be in Thailand, and also as we said in the finance
recommendation we chose that option in order to avoid exportation costs,
and logistic stuff, so thats why we do have to hire our suppliers in
Thailand, therefore we did a research and we found a supplier called
Raming tea that will provide us the tea (RAMING) and it is located in
Thailand so we will avoid expensive transportation costs if we decide
working with this company. Also we do need a supplier to sell us the
different fruits that we use to put flavor on our tea, so thats why we did
another research and we recommend to hire Gravity Intertrade Co.Ltd
because that company is located in Thailand, produces the fruits we need
and also they offer delivery service for free (GRAVITY INTERTRADE CO.
LTD , s.f.). In terms of having a good relationship with our suppliers then
we do have to be really careful with punctuality, in Colombia it is not really
important but in Thailand if you say that you pay on Monday then you will
have to pay on Monday for sure, and if you say you are giving 100 units
of tea on Friday then you have to do it, if you are respectful and punctual
with your suppliers then everything is going to be ok. (Johanson, s.f.)
Innovation:

For the innovation process of HATSU we recommend to use the tropical fruit
of Thailand called: Mangkud. This tropical fruit will be involved in the creation
of a new exclusive flavor that comes from the countrys culture and traditions.
Thailand has been a country full of patriotism, as was demonstrated in 2001
where Thai Rack Thai party (Thailand patriots party) won the elections and
formed a coalition between all the parties. This shows that Thailand
people love their culture and their traditions, and thats why our strategy is
focused on enter to the Thailand market using the traditional of their culture.

Why Mangkud?
Mangkud is a traditional Thailand fruit that because of its flavor and
consistency has become in one exquisite and exotic type of fruit. It is
cultivated on the west coast and on the south of Thailand around of Surat
Thani. Its also great to mix with the traditional flavor of tea because is a very
sweet fruit and balances the bitter taste of tea. In addition, it contains a high
level of water which makes it a refreshing drink. This fruit is rich on potassium
and fiber that help to improve the intestinal transit and the generation of nerve
impulses.
It is recommended to arm an investigations team of Postobon to create
several samples and proofs with the purpose of observe the perfect match
between the tea and the fruit.
This shows that the mix of our product HATSU with the Mangkud fruit is not
only a good idea for the cultural field that is behind but also because of the
benefits that brings to the body.
Source: (Thai Barcelona, s.f.)
This proposal is about using some Thai means of transport and by their radios
pass publicity about the new Hatsu tea with the traditional mangkud flavor
and with the novelty of their delicious smell.

How is it going to be done?

Were going to use public transportations as trains or the autocares where we

will transmit the publicity about the Hatsu tea with mangkud flavor by each
hour, and with a novelty that is going to be a system that is automatically
programmed to release a fragrance every 20 minutes, that is going to be put
 on the beginning and on the end of every transportation journey, its a little
device similar to home air fresheners that can easily be hided and with the
characteristic of being a subtle fragrance.
Why public transportation?
Because its the medium where people are most mobilized in Thailand, the
autocares are very comfortable buses, used in various parts of the country,
the strategy is that the main bus stops have an advertisement of this new tea
and that just across the street you can see a shop where they sell it.
This would be a real experience, imagine that you go on a bus to some place
that you need to go, with all your worries awake and suddenly, you listen to
an advertisement for a new product that is on the market and at that moment
you can smell the aroma of the product, youll probably get off the bus, but it
doesnt end there, in the main stop youll find another advertisement and then,
finally in front of you is a store where they sell it. You go there and have the
placer to taste that special product that permits you to have a good day.
On the train would be a similar experience since there is usually a wagon that
is a restaurant where you can drink or eat something during your trip. So,
while there is advertising of the Hatsu tea and its aroma, it is going to be
mentioned that they sell it on the train for everyone to live the experience to
try this new tea
We will create glass container dispensers for Hatsu tea. The way this
container will be made is with a robotic hand that will get the product and put
it on a sliding band and this one arrives in a tray where the person can hold
his Hatsu tea and take it to any place he wants.

Why to create a dispenser for Hatsu tea?

Because it is a simple way to obtain the product, it will be easily accessible as it
will be in important avenues of the main cities of Thailand, outside of shopping
malls and within bars and discos since one of the strategies that Hatsu tea has
been implemented is that its competition is not only other tea-based drinks but
also alcoholic beverages that have an adverse effect on people's health.
We also want to implement this proposal based on keeping the container in glass
and not changing it to plastic, first because the bottles with their original and
ergonomic packaging are our main attraction and differentiator of other brands of
tea drinks and second, because we want to contribute to the environment helping
with the recycling of our bottles that can serve different functions such as
decorations. We want to reduce the consumption of plastic on the planet thats
why we have the idea of implementing this new type of dispenser.
 Marketing:

For us the marketing strategy is Premium value, giving a special value to

the tea that in this case is HATSU. On the campaign its of major
importance showing the benefits of the tea for the health that comes
accompanied of exotic flavors, this has to be with the product packaging
because since its being packaged in glass it makes the tea retains its
properties and that it looks exclusive, besides demonstrating the
importance that the environment has because the package is recyclable
and reusable. Therefore, the strategy of showing an added value would
be a success, not only because of the use of its exclusive package and its
unique flavor but also all the benefits that brings to our body because
theyre low calorie and carbohydrate products, perfect for the daily diet of
people.
Why Premium value?
We saw the importance of showing an added value to the product HATSU
because the consume of tea on Thailand is huge and makes part of their
culture. This drink is traditional on the country, the most common is drink
it cold because its a hot country most of the year and they used to drink it
on a big and long glass. Thats how we can present Hatsu as a health
support drink, with the flavor of traditional tea and exotic fruits, refreshing
at any time of the day and in a good ergonomic size
Source: (Thailand, s.f.)
For most of the people, the time of rest and relaxation is one of the most
important, for example lunch time or break times where you can sit down
and drink something with your friends and family. For this reason, we will
do an advertising campaign based on emotional marketing to create a
commitment or a bound with the public, taking usual situations of Thailand
people turning them in desirable dreams.
Why to use emotional marketing?
According to the book Brain view- Warum Kunden Kaufen of Hans-Georg,
that explains why the customers or clients buy, and it is shown when it
states that the customers buying decisions are directly related by their
emotions. The main idea of the campaign is to be associated with some
feelings, this, with the only purpose of giving a good message.
Which is the proposal of the campaign?
 The proposal is to create an emotional campaign in an experimental way,
developing interviews directed to several people of ages between 16 to 50
years approximately to find how long does it takes to have a rest or a
relaxation time in which they can sit down to drink something alone or with
friends and family, if they use that time in their universities doing works or
if they believe that is truly important to take this spaces to simply being
relaxed. This campaign will be done with the purpose of make aware about
the importance of taking a rest while theyre drinking something refreshing
as Hatsu tea.
Source: (Bar-BQ, s.f.)

We want to penetrate the Thai market through the new era of youtubers,
which thanks to the YouTube platform can show the new products that are
released to the market, test if they like it or not, make challenges with the
products and give a review on the quality of the same.
Which youtubers would be good at representing the brand of Hatsu tea?
The youtubers of the Chilean channel Random, that is composed by
Andres Magento, Rogue Anastasia, Mark Biem and Ariam Rachell, its
channel as its name says, is dedicated to several things like parody,
sketch, mockery of the things that happen in the daily live and just to be
young people with a great charisma that can get to capture publics of
different ages.
Why did we choose these youtubers?
7 months ago after a video was posted on its channel called "Special
school", it had a lot of sympathy in Thai people who watch YouTube, and
as the Thai fanpage "GIF " with more than 150 thousand followers
uploaded an excerpt from the video which was passing by all over
YouTube, was so successful that in a single day had more 890 thousand
reproductions and 14 thousand shared in social networks, after this
success the fan page GIF continued uploading excerpts from
YouTube videos of the Random channel, doing that the whole team group
had followers and friend requests from Thai people.
This shows that it would be good to make a collaboration between the
brand Hatsu and the Random channel because as being also Latinos and
with thousands of followers of Thailand would position us in a good place
in the Thai market. Source: (Biobio Chile, s.f.)
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