2011

Strategic Management

Mini Case:
Nam-Noi-Pa-Dern
Floating Market
Subject Name:
460-771 Strategic Management
Student Name:
Miss Pimchanok Aramrungroj
Student ID:
5310520008

Pimchanok Aramrungroj ID:53105200082

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Content
1
2
3
4
5

Introduction........................................................................................................ 3
Company Background.........................................................................................3
Vision and Mission..............................................................................................3
Cost of Production..............................................................................................3
External Environment.........................................................................................4
5.1 Cultural ........................................................................................................ 4
5.2 Economic...................................................................................................... 4
5.3 Demographic................................................................................................5
5.4 Political......................................................................................................... 6
5.5 Floating Market Environment........................................................................6
5.6 Competitive Environment.............................................................................7

6 Internal Environment..........................................................................................7
6.1 Resource.......................................................................................................7
6.2 Capabilities...................................................................................................7
7 Market Analysis..................................................................................................8
8 Market Trend...................................................................................................... 8
9 Marketing Strategies..........................................................................................8
Product............................................................................................................... 8
Price.................................................................................................................... 9
Place................................................................................................................... 9
Promotion........................................................................................................... 9
Advertising......................................................................................................... 9
10 SWOT Analysis..................................................................................................9
Strength.............................................................................................................. 9
Weakness......................................................................................................... 10
Opportunities....................................................................................................10
Threats............................................................................................................. 10
11 Schedule Plan.................................................................................................10

Pimchanok Aramrungroj ID:53105200083

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1 Introduction
The purpose of this report is to present that if there is 100,000,000 baht,
what business would be created. After defining the business, the result of
analyzing external and internal was generated in this report. The component of
external factor is societal, cultural, environment, economic, demographic,
political, and competitive information. In contrast, the internal factor composes
of strengths and weakness. Using SWOT analysis to analyze the external and
internal, these combine of strengths, weakness, opportunities, and threats. This
report covers five business-level strategies.
The reasons why floating market business were selected to create are
because there is only 1 floating market in Hatyai and the south of Thailand and
many people were interested in this market, not only local people but also
foreigners. For local people, they like the native lifestyle. Moreover, foreigners
like sightseeing and try the new and good things. Besides, Hatyai is the business
trade and tourist center. There are several floating markets in Thailand; all
places were interested by many people and tourists. So these reasons will
support the new floating market business.

2 Company Background
The floating market named as Nam-Noi-Pa-Dern means with good surrounding
and atmosphere attracts people to walk in this market. This market will be
located in Nam-Noy where the canal had around there, so its the reason why
named as Nam-Noi-Pa-Dern. This market provides 150 shops which separated
into 5 varieties as food, sweet, drinks, clothes, and toys. Moreover, the
atmosphere was decorated with ancient, local and Thai style. Some shops are in
the boat that float into a canal and sell things, but some on the floor. Food is
focused on Thai and local. Besides, this market created activities and shows at
the middle of canal. The customers can buy food by not only money channel but
also coupon. The market will be opened every day but different periods as
Monday-Friday at 04.00 pm.-10.00 pm., Saturday-Sunday at 10.00 am.-10.00
pm.

3 Vision and Mission

Vision is to become the southern leader of floating market in the south of
Thailand.
Mission is with good taste, clean, service, and atmosphere, we actively
communicate with customers to deliver food products and services that exceed
their expectations.

4 Cost of Production
First of all, 100,000,000 Baht will be divided into 5 major parts as follows;

Pimchanok Aramrungroj ID:53105200084

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The first part will be invested in the Land around 50% of all.
The second part will be invested in the standard construction around 30% of all.
The third part will be invested in the decoration around 5% of all.
The fourth part will be invested in the advertisement around 0.001% of all.
The final part is reserve funds.
This market has to hire employees because of most shops were created and
administrated by owner. However, providing space for rental but the renters
have to follow the agreement that we created the promotion condition or green
environmental care. So, raw material, packaging, and hourly wages are cost too.

5 External Environment
5.1 Cultural

Local people like to walk in the market.

Spicy flavor is the basic eating needs for local people.

Meeting at someplace and find some drinks are the cultural of local
business.

At the weekend, people like going out with their family.

5.2 Economic
The below table shows the amount of people from foreign country through
immigration in Songkhla, amount of guests that check in hotels in Songkhla,
amount of foreign tourists in Songkhla, and power consumption of hotel in 2010.
The number of foreign country through immigration and amount of foreign
tourists in Songkhla hotel continues increasing the whole year, so these figures
are the good signal to the market that will be created. Besides, amount of guests
in hotel in Songkhla go on augment in the first three quarter and a bit drop in the

Pimchanok Aramrungroj ID:53105200085

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last quarter as similar as the trend of amount of power consumption of hotel but
this one starts dropping in the third quarter. The reasons why the amount of
guests in Songkhlas hotel dropping the last quarter are because the flooding
situation, so local people have to prepare themselves and be careful of disaster
and the tourists cannot come to travel.

List

Year 2010
Q1

Q2

Q3

Q4

296,644

339,226

353,126

391,424

Amount of guests 242,528

in Songkhla hotel

265,064

269,028

212,290

Amount of foreign 51,952

tourists in
Songkhla hotel

52,693

52,924

55,924

33.79

31.64

28.55

Foreign country
through
immigration

Power
consumption of
hotel

30.37

5.3 Demographic
The table shows the amount of populations in 2000 to 2009 in Songkhla. The
number of population in Songkhla continues increasing so its the good signal for
business. Moreover, more people from 3 province (Yala, Pattani, Naratiwat)
continues to move to Songkhla because they were afraid of the terrorists and car
bomb.
Year
2000

Population
1,232,600

2001

1,249,402

2002

1,271,067

2003

1,294,442

2004

1,281,509

2005

1,302,421

2006

1,317,501

2007

1,324,915

2008

1,335,768

Pimchanok Aramrungroj ID:53105200086

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2009

1,343,954

5.4 Political
Government set the income tax depending upon the nature of the
business activity.
Government set up the Pollution Control Department to make necessary
regulations to control the possible results of organizations neglecting to
be environmental friendly.

5.5 Floating Market Environment

There are 32 floating markets in Thailand. Most were in center of Thailand, some
were located around center of Thailand. But there are a few floating market in
the other provinces.
Tah-Sa-Dej in NhongKai is located along the Mekong River in municipality
and this floating market is the source of the product in Indo-China and
Eastern European food products and processed foods and appliances such
as electric appliances, clothing, watches and clocks.
Wat-Sai is located in the Thonburi side, and it was a former glory. The
current got recovery to be a beautiful contemporary attraction again.
Visitors can travel along the historic water route. Clacenm to the boat
from the park and sell trade on land along the canal front Sanam Chai Wat
Sai floating market.
Klong-Sa-Bua is situated around national history of Pranakornsriayutaya.
Ta-Ling-Chan is located in front of Taling Chan District Office. Market is
semi-rural mix of waterfront living with nature.
Don-Ma-No-Ra (Samutsongkram)
Pa-lad (Pattani)
Ampawa (Samutsongkram)
Bang-Noi (Sumutsongkram)
Bang-Nok-Quak (Samutsongkram)
To-Rung-Hua-Hin (Hua-Hin)
Chao (Mae-Hong-Sorn)
Pon-La-Mai-Glang-Dong (Nakornrachasrima)
Chat-Chai (Prajuabkirikan)
Dam-Nern-Sa-Duak (Rachburi)
Rong-Glua (Sakeaw)
Ta-Ka (Samutsongkram)
Bang-Nam-Peung (Samutprakarn)
Ma-Ha-Chai (Samutsakorn)
Ban-Pae (Rayong)
Rim-Meay (Tak)
Bang-Ku-Veang (Nontaburi)

Pimchanok Aramrungroj ID:53105200087

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Pi-Mon-Raj (Nontaburi)
Wat-Sang-Si-Ri-Taam (Nontaburi)
Sai-Noi (Nontaburi)
Mueng-Rang-Sit (Patumtani)
Klong-Sam (Patumtani)
Bang-Kla (Chachengsao)
Wat-Bang-Pra-Moong (Nakornsawan)
Wat-Glang-Koo-Veang (Nakornpathom)
Lam-Pra-Ya (Nakornpathom)
Ta-Ka (Samutsongkram)
See-Pak (Pattaya)

5.6 Competitive Environment

There is a big competitor, named as Talad Nam Klong Hae where has strong
customers based which from local and tourists from Malaysia and Singapore.
The market opened on Friday to Sunday starting at 4-8 p.m. and many
merchants sell food on boats. Some sell normally on the floor with small shops.
Customers have to buy food at the shops then bring food to eat at the place
where the market is provided. The environment is not clean enough and very
crowd although surrounding is natural but the atmosphere is not satisfied for
customers.

6 Internal Environment
6.1 Resource
Resources separated as tangible asset and intangible asset. So tangible
resources refer to the physical assets that an organization possesses, in this case
it is one hundred million baht.

6.2 Capabilities
A strong network of suppliers.
Products fit with market demand.
A strong flavor and price.
Effective marketing communications.

Pimchanok Aramrungroj ID:53105200088

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7 Market Analysis
There are total 350,013 populations in Hatyai, total male is 166,988 people, and
total female is 183,025 people. The floating market can focus on all group age
range for Hatyai people and Songkhla people. The following table is the
population in Hatyai separated by age range.

Age Group

Population (People)

Percentage (%)

Total

Male

Female

Total

Male

Female

0 14

81646

41747

39899

23.3

25.0

21.8

15 - 24

70003

33398

36605

20.0

20.0

20.0

25 - 34

69296

31227

38069

19.7

18.7

20.8

35 - 44

57999

26885

31114

16.6

16.1

17.0

45 - 54

34802

16866

17936

10.0

10.1

9.8

Over 55

36266

16866

19401

10.5

10.1

10.6

Total

350013

166988

183025

100

100

100

8 Market Trend
The overview of people that come to all floating market in Thailand continues
increasing. Many tourists and local people like to go there. There is every
generation gone there. So it is the strong trend that people like to walk and eat
at floating market.

9 Marketing Strategies
Product
Products are provided as 5 sections as follows local food, desserts, drinks, toys,
and clothes. Each product was created as the ancient and local styles. Moreover,
this floating market conserves the natural by using things that made by natural.

Pimchanok Aramrungroj ID:53105200089

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Price
This floating market guaranteed best price as follows;
Food around 20-50 baht
Drinks around 10-50 baht
Dessert around 10-50 baht
Toy around 10-100 baht
Cloth around 75-150 baht

Place
Nam-Noi-Pa-Dern market is located at Nam-Noy where between Hatyai and
Songkhla. The reason why chosen this place to situated the market is because
there is the canal around there, this can save the cost for construction to
simulate canal. Surrounding around there remains natural. Moreover, people
from Hatyai and Songkhla can go there easily. The place are attracted by
surrounding that decorated with ancient styles and provide wide space for
people with comfortable to buy things and sit.

Promotion
Each shop to create promotion such as buys 10 gets 1 free.
Buy 900 baht coupons with no refund get free 1 round riding an elephant.
Buy 100 baht coupon with no refund get 10% discount on clothes shops.

Advertising
Coordinate with the advertising campaign.
Build on the advertising message.
Advertising through the web page.
Program a compare and contrast function.

10 SWOT Analysis
Strength
Food is good taste.

Pimchanok Aramrungroj ID:531052000810

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Good atmosphere with clean environment and colorful with local southern
concept.
Its very comfortable to buy and find the place to sit.
Low price.

Weakness
Location is quite far from the city.
Limit stores and size.

Opportunities
Leader of floating market in the south of Thailand.
Fewer competitors.
Government supports the new establishing business.

Threats
Increase competition with food markets.
Presentation news with exaggerate makes the image of southern areas
seem unsafe then outsiders feel afraid to come to Hatyai.

11 Schedule Plan
This project covers for 2 years as follows;

Monthly/year 2011
Monthly/year 2012
Market analysis
Environmental design
Construction
Advertising
Open spaces for
renting

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