1203302 Project Feasibility Study and Evaluation

Precious & Royal Spa

By
Miss Chanakarn Juerla-ong Mr. Nutthaphong Khamkhoen Miss Tayanin Boontakume Miss Sunisa Deeloek Miss Nueng Srisawart Miss Acharaporn Sukantamala Miss Sirinya kittikoon Miss Natthacha Kunsriruksa Present 5331203018 5331203029 5331203038 5331203133 5331203137 5331203146 5331203501 5431203022

Aj. Chaiyawat Thongintr

Preface

This report is the part of the course of project feasibility. Which provide all the information about the Precious & Royal Spa business. Our aim for making this project is to let the investor to concern about our project to and to deal with our team. In the trade agreement under framework to open more market about service still go on. And Thailand is between the other trade agreements. So in the future will be more service market in Thailand. By the way the foreigners can come and invest in Thailand also Thai citizen can invest in another country and this will increase the service trade amount the country. Department of Trade Negotiations prepared for the fees associated with the health of Thailand: Thailand Spa & Massage aims to create awareness to the public. Awareness and encourage operators to prepare for the potential impact efficiently. For the reason to do this spa business had become more importance nowadays even in big and small service industry. So our team needs to focus on overview and environment about the spa industry in Chaing-rai moreover to analyst the competitor by providing the very important and possible information. The framework of this project is to know about the background, industry of the spa business in Chaing-rai and concern about the marketing and customer target and careful for the technical, operation system and over all. The successful of this project is our business can get into the best of the spa business in Chaing-rai and give more opportunity for the local people and responsible for the society and earn suitable profit and customer very satisfy for our service.

Group 9: Project Feasibility February, 2013

LIST OF CONTENT

Chapter

Page

I INTRODUCTION 1.1 Background and Significance of the Project.......... 1.2 Project Objectives.......................... 1.3 Benefits of Project............ 1.4 Activities/Time Frame................

3 4 6 6 8

II INDUSTRY OF PROFILE... 2.1 Nature of Industry.......................... 2.2 Situation of Industry............... 2.3 Product and Service............. 2.4 SWOT Analysis...............

9 10 12 16 20

III MARKET FEASIBILITY STUDY................................................... 3.1 Market Analysis............... 3.1.1 General Environment Analysis 3.1.2 Political............ 3.1.3 Economic............ 3.1.4 Social and Environment....... 3.1.5 Technology............. 3.2 Competition Analysis (3C Analysis) 3.2.1 Competitor Analysis......... 3.2.2 Customer Analysis........ 3.2.3 Competitive Analysis........... 3.3 STP Analysis............

21 22 22 22 22 23 24 24 24 28 38 40

3.4 Marketing Mix Strategy............ 3.5 Marketing Expenses (Sales Incentive). 3.6 Marketing Expenses (thousand Baht). 3.7 Marketing feasibility Summary.

42 48 56 58

IV TECHNICAL FEASIBILITY STUDY .................................. 4.1 Production and Operation Analysis .. 4.2 Service Process.............. 4.3 The structure of spa design . 4.4 Machine/ Tools/ Equipment........... 4.5 Products use in spa............... 4.6 Logistic Management.............. 4.7 Facility Management........ 4.7.1 Management............ 4.8 Invest Cost................ 4.9 Technical Summary............

59 60 61 66 76 85 88 89 89 91 95

V OPERATION.................................................................................... 5.1 Raw Material............................... 5.1.1 Other expense.................... 5.1.2 Operating cost.................... 5.2 Operating Summary....................

96 97 109 109 111

VI ORGANIZATION AND ADMINISTRATION............................ 6.1 Office investment and Depreciation.. 6.2 Administration Expense..................... 6.3 Employee Salary................................

112 113 114 115

VII FINANCIAL ANALYSIS............................................................... 7.1 Income Statement....................... 7.2 Cash Flow................................... 7.3 Balance Sheet............................. 7.4 Ratio Analysis.............................

116 117 122 127 132

VIII RISK MANAGEMENT.................................................................. 8.1 Risk Management....................... 8.1.1 External Risk..................... 8.1.2 Internal Risk...................... 8.2 Risk Management Summary.. 8.3 Risk of Financial........................

133 134 134 137 137 139

IX CONCLUSION................................................................................ Conclusion of Precious & Royal Spa ..

173 174

REFERENCES

GROUP 9

CHAPTER 1
Precious & Royal Spa

Background and significance

Background and significance of the project

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Spa comes from the Latin as "Sanus per Aquam" or Sanitas per aquas means health from the river, hydrotherapy, health care by use the water. The beliefs and concepts that involved may have conclude that spa is hydrotherapy under the supervision of a doctor or specialist including a place to relax for good health. At the beginning, spa in Thailand was located in luxurious hotels. The spa business has been entering into Thailand for 10 years ago. But the spa business was hidden in the 5 stars hotel for only the foreigner customer and there was no specific of spa business. Nowadays not only the foreigner but even Thai people also love spa so that cause will affect the spa business keep expanding. The pattern of spa has been distributed in Thai people because the environment had been change and that affect their health. The spa treatment found that the spa can also cure their health not more but less. Nowadays, spa business and Thai massage has growth it can make revenue and build career to business services. In 2554, the number of establishments that registered and

certified by the Ministry of Public Health as of 1,436. The most of establishments located in the main tourist destinations and Bangkok or the province that a tourist destination such as Phuket, Chiang Mai and Chonburi. (Reference:http://www.dtn.go.th/filesupload/aec/images/spa29-05-55.pdf)

Environment in Chiang Rai: appropriate to do the spa business

Natural Resources and Environment of Chiang Rai is interesting to invest generate the spa business because Chiang Rai have the natural resources that plentiful and good environment. From the natural resources and environment, it make the population in Chiang Rai is a better quality of life and well-being. Thus, the natural resources and environment that appropriate in find the raw materials to run the business about spa is help reduce the cost and increase the opportunity in generate the profits in the long term. This is a chart that present to natural resources that plentiful in Chiang Rai

Not classified.

Agriculture Area(%)

Woodland

Years Referent the data from http://www.thaienergydata.in.th/energynew/energyReview/energy/index_prv_resource.php?p rv_id=57&year=2549 The business about spa in Chiang Rai, Spa in Chiang Rai have a little and in using the spa service is expensive. So it a good opportunity in generate the spa business in Chiang Rai to present reasonable price to customers and to meet the demand of them in health care.
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The name of our company is Precious & Royal Spa, from study the market of spa business, Spa is becoming famous in nowadays because most people interest in spa. The reason why we choose spa business in Chiang Rai because in Chiang Rai have many Touristic place and that will be very attraction to the foreigner and Thai people and Chiang Rai is the place that you can rest and relax so, spa business is the business that very interesting and it can make profit in business.

Project objectives
To gain the profit for the company because nowadays people more caring about their health. Bring the new innovation into the spa industry in Chiang Rai. To bring out the benefits of natural resource use that exists in local place. To support Thai herb to be more popular. To study about planning business in Thailand also exports the products of spa to be abroad.

Benefits of project
To inspire people to care more about their health and relaxing their mind. To be the good and experience pattern that going to be in the future. Can create the opportunities for the local people and stable salary for them. Can receive the good knowledge that can be adjusted in the future life. To active the economic around that area. To support the skill labor to have stabilities in our company.

Operating Method
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 To study the general of spa business in Chiang Rai. To study management in spa business as follows: Background of spa business. Product and service in spa business. Vision and mission statement of spa business. Strategy of the company.

To study marketing and competition analysis as follow: Objective of spa business in Chiang Rai. Demand of customers that use spa business. Marketing mix of spa business. Sale forecast and profits estimation of spa business.

To study the technical process in spa business as follow as: Location. Operation and management analysis. Investment and operation cost of spa business.

To study the financial feasibility of spa business as follows: Companys investment cost, operation expense, and other expenses. Profit and loss statement, cash flow, and balance sheet in 5 year of spa business.

 To study and analysis risk of spa business in Chiang Rai. To Summary the feasibility of spa business in Chiang Rai.

Time frame of study Time frames, since November 2012 - February 2013

November Operation Method

December

January

February

W W W W W W W W W W W W W W W W 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1. To study the general of spa business in Chiang Rai 2. To study management in spa business 3. To study marketing and competition analysis 4. To study the technical process in spa business 5. To study the financial feasibility of spa business 6. To study and analysis risk of spa business in Chiang Rai 7. To Summary the feasibility of spa business in Chiang Rai

CHAPTER 2
Precious & Royal Spa

Industry of Profile

Nature industry Definition of spa 1. A health resort near a mineral spring or hot spring. 2. A trendy or fashionable resort. 3. A health club.
(Reference:http://www.allwords.com/word-spa.html)

(Reference:http://www.wikalenda.com/Health-Beauty-and-spa-022196.htm)l A spa is a centre for treatments through various alternate medications, and has grown to include relaxation, unwinding and getting pampered. But what make for an interesting read are the origin of this culture, and the genesis of the word spa. So, when did the concept of spa re- relaxing and getting treated for ailments through water - come into being? Where from did it get its present name? There are myriad answers to these questions, but all intertwined in the same theory. (Reference : http://ezinearticles.com/?The-Origin-Of-Spa---A-Brief-History&id=413576) Thailand spa 1. Hotel and Resort Spa refers to any spas situated in resorts serving hotel guests. 2. Destination Spa is a spa established in its own building which includes recreational areas. Most of its clients will stay overnight, participating in selectable activities like meditation programmes or yoga

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(Reference:http://www.thaiwaysmagazine.com/thai_article/2119_spa_thailand/spa_thailand. html) 3. Medical Spa means a spa providing medical treatments and utilising medical instruments under specialised personnel's instructions. Generally, this kind of spa is located in hospitals or clinics. 4. Day Spa and City Spa refers to spa services that can be finished at any time during the day.

(Reference:http://www.thaiwaysmagazine.com/thai_article/2119_spa_thailand/spa_thailand. html)

5. Mineral Spring Spa is a spa service at a natural spring which has been developed to be a tourist. 6. Club Spa means a spa combined with a fitness centre.
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7. Cruise Ship Spa is a spa service on a cruise ship. This is operated together with useful diet for passengers during the voyage. (Reference:http://www.thaiwaysmagazine.com/thai_article/2119_spa_thailand/spa_thailand. html)

Spa business in Thailand

Spa come to Thailand about 10 years ago, the spa is a business that resides within the rules of luxury hotel for essentially support a foreign and it is a little commercial business. Nowadays, the foreign tourists seek for spa services. At the same time Thailand also have to pay attention too so; it resulted to spa business increasing growth rate. From those, spa business in Thailand has foreign and Thai entrepreneur invest together. They choose invest on spa business in hotel, resort or tours around the country. Thai people give precedence health trend make spa business began to move out of the hotel and rapid growth in the business district and tourist attractions. It is under the concept of providing a variety of formats. It is remarkable that the spa is one of the health services and has potential to grow in further of the growth rate has averaged 20 to 30 percent per year so, spa business can retrieve revenue from foreign visitors has more than 24,000 million Baht. Spa on small market has Thai consuming power about 2,000 million per year. Spas revenue of foreign travel market will be growth because a growing demands by the public sector to the tourism industry that promote and support throughout. Public sector targeting Thai is health center of Asia year 2546-2554 and bring revenue to the country, not less than 100,000 baht. Attention and take care of health trend on the middle market has 70 percent of total Thai people. Thailand can ensuring the reputation of the spa on one rank in Asia for time and including the development of the industry in terms of equipment and products for the spa business that growth and expanded to export continuous to other countries. Development trends in the spa industry for competition year 2549 believe that entrepreneur bring with the strength to presented as a selling point or create a clearer identity. This may cause new format spa. Other than expanding spa customer base to the men or metro
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sexual group be regarded as growth of customer is one factor encourage high growing spa market. On year 2549 suppose has especially man or metro sexual spa in other hotel that often a career in management. (Bangkok Post newspaper dated December 26, 2548 page 23)

Now spa business in Thailand has been growing over 30% from all standard spas but in the meantime, there are about 200 of spa business are still problems in the management of the spa. Revenue from the spa Thailand there are currently a total of 5,000 million Baht foreigners 80% and Thai 20% as the market has grown about 20% annually. With support from the Government and TAT this is part of the spa business Thailand grew up.
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*Reference:http://www.cheapestav.com/2010/04/%E0%B8%98%E0%B8%B8%E0%B8%A 3%E0%B8%81%E0%B8%B4%E0%B8%88%E0%B8%AA%E0%B8%9B%E0%B8%B2%E0%B9% 83%E0%B8%99%E0%B8%9B%E0%B8%A3%E0%B8%B0%E0%B9%80%E0%B8%97%E0%B8% A8%E0%B9%84%E0%B8%97%E0%B8%A2/

The spa business in Thailand in addition there are entrepreneurs who are interested to invest in Thailand, there are spa foreign penetration into the market has increased. Mostly The foreign spa will focus on service foreigner in hotels and the main hospital. As the foreign spa is known in the world market for a long time and it is more universal. While the Spa business in Thailand recently entered the market a few years and in the process of developing provide equal to international standards. Moreover spa business in Thailand still lack of personnel (Therapist) and personnel with expertise in the management including equipment and related services. It is opportunity of foreign spa entered competition the market in Thailand business groups and hospitals have targeted a foreigner therefore often joint venture with the foreign spa to create a competitive advantage in terms of technology transfer and management system as standard. To creating international networking market as well as image and reputation of the foreign spa to enhance competitiveness in spa business each business are different operating such as in terms of a location. Services may be a purely western; a combination of eastern wisdom and western knowledge or spa services in Thailand has Thailand traditional medicine services to create a unique depending on the marketing strategies of entrepreneurs

Spa business in Chiangrai

Now spa business in the north of Thailand are many occurred therefore, occurs establishment of a consortium together to exchange information and define the service standards for Thailand Lanna spa high quality and a good standard forever. Thailand Lanna Spa Association has 52 entrepreneurs covers an area of Mae Hong Son, Lamphun, Lampang, Chiang Rai, Chiang Mai, and Nan. The current president of the association is diligently. Aim
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to develop Lanna spa to advance and to maintain quality forever for Thailand Lanna spa is widely popular. Spa is another form of tourism called health tourism is the way to relax. So Lanna spa association with the Tourism Authority of north Thailand have the project Travel north for health The objective is for tourists to relax on holiday. *Reference: http://www.tourdoi.com/travel/happiness/thaispa.htm From vision chiang rai province that Lanna Chiang Rai, the Golden Gate to the global trade and under administration of CEO that response policy to development spa business causes the agency to support the spa business include Health services Chiang Rai Provincial Health Office. In addition, the agency will establish cooperation and transfer of knowledge between the private sector, spa business entrepreneur and massage herbs and also establish spa club, which has started meeting D Navigation to the clustering for the development business of healthcare which consists from spa, massage and herbal product. Spa business in chiang rai providers were mostly available at the resort and hotel spa, hot-spring spa, day spa destination spa that most of them operation at the hospital for physical therapy, massage and herbal sauna. Most of spa business is located away from the city but is distributed by major tourist. *Reference: http://research.trf.or.th/node/3041 Spa business in Thailand is likely to grow interesting even the past spa business will has a lot but the opportunity of open spa business are still ongoing especially nowadays coming to the adaptation that focus on differentiated services. There are a lot of spa business competitors in Chiang rai makes our spa will find a competitive advantage. We will focus on the customer needs whether it's a good service access to customers and take care the needs of the customers who come to our spa as well as innovative products in our spa such as product that only has in our spa to make customer feel relaxed when use and care skin set include with turmeric and tamarind etc. or even to decorate inside and outside shop for eye-catching to attract the attention of foreigners but it also has Thai tradition. This is one of the reasons we may have an advantage over other spa business. Learning competitors strategy is good way as because we all know that what the competitors focus on. All this makes the business grow rapidly spas are increasingly popular as a result to number of users increases which the use of the spa available everywhere around the world
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regardless of sex, age, level position because we love and care for their own health everyone wants to have a healthy and mental good as well.

Product and service

Body Massage

Body Massage is popular alternative of the spa so, it helps the body good relax. Each the spa will have different type of massage. It depends on bring to prominent of the massage come to combined to unique of each the spa. There are two type ; Traditional Massage and Aromatherapy Massage. Including with the massage of other race people such as Swedish Massage etc. Body Massage is massage for relax and stimulate the circulation of blood that the skin by using techniques to fondle follow the muscle.

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 Aroma Steam / Herbal Steam

Aroma Steam / Herbal Steam are stimulation body by using heat to the pores of body open and ready expulsion the toxins to out with the sweat. This approach has been most popular because it easy steps and not complicated. Can do it by yourself and not have to rely on staff, just have the equipment that available.

Scrub

Scrub is stimulate the circulation of blood by the polished surface with vegetation from natural such as various herbs include using the sea salt and alga to eliminate the dead skin cells fall off, the new skin cells will replace old skin cells and still add the nutrients to the skin. This method will help skin to have health better and smooth skin. The polished surface, it can be use herbs to scrub or use cream to scrub. However, in some cases using the herbs to scrub may be cause allergic or have the problem about dry skin. Which is the different from using a cream scrub because inside cream scrub will have cream that help to provide slip to rub or scrub.
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 Nutrition Therapy Nutrition Therapy focus on eating natural foods. Avoid dry foods, additives foods or chemical contamination and adaptation foods. Exercise Breathing Therapy

Exercise Breathing Therapy is the most common treatment in the spa development which has a variety of forms including aerobic and stretch such as tai chi, yoga, dance club, exercise in water and chikung but must have teacher to advise you properly. Meditation and Autogenic Training

Meditation and Autogenic Training have the objective

to increase the acquaint

yourself, understanding of the behavior and other problems of their own to change behaviors or habits that do not want to go out and improve relationships with others to be happiness of society and the environment. Autogenic training down to the level of the subconscious mind and to modify the behavior to relax and to enjoy the success in life. Meditation to stop thinking and feeling to calm and peaceful , do not be distracted and it also reduces heart rate, lower blood pressure, reduce stress and help stop the growth of cancer cells, etc.

Crystal-Rock Therapy

Crystal-Rock Therapy to relax, rehabilitation and therapy by elemental analysis of the behavior of each individual. Then lined the acupuncture points of the body or made jewelry to wear and then placed in the room or placed near the body. Rock is crystal-rock can retain

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heat for a long time and infrared radiation does not heat the room glow but not irritating, which this approach must have enough information to confirm.

Herbal Therapy

Herbal Therapy is using herbs to the fragrance like food, beverages or dietary supplements to refreshing. Herbal therapy can reduce blood cholesterol, reduce weight, reduce blood sugar levels, helps sleep easier, relax and can use nourish skin such as milk bath, sauna, mask skin and etc, which has been very popular.

*Reference : http://www.yesspathailand.com/%E0%B8%AA%E0%B8%9B%E0%B8%B2spa/%E0%B8%A3%E0%B8%B9%E0%B8%9B%E0%B9%81%E0%B8%9A%E0%B8%9A%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B8%AA%E0%B8 %9B%E0%B8%B2.html

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SWOT Analysis Strength: The obvious target is university students and tourists. Have expertise in the management as well. There are planning and improvement strategic marketing continuous for meet the social and economic conditions. All employees are well trained and courteous employees, Beaming, Willing to serve. There are many services to choose make a difference in the spa business. Material and special features of the product. Both Thai and foreigner come to service. Modern technology. Promotions and packets of store in special prices.

Weakness: Marketing promotion channels too few. Because the location is not in the middle of downtown. Chance of a high loss because of high investment. The price is no different, price of service is similarly priced competitors. Personnel in spa business are limited. Because the personnel must have specific expertise.

Opportunities: Most of our customers are foreigners. Demand of the spa massage for healthy to be increased more and more. Today, consumers increasingly turn to health care make spa business is an alternative healthcare. Threats: -

Spa business is more competitive. Changing the tastes and needs of customers. Unrest situation in society make the foreign tourists decreased.

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CHAPTER 3
Precious & Royal Spa

Market Feasibility Study

Market Feasibility Study

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Market Analysis General environment analysis It is the efficacy method. It helps to analyze external factors that affect to the business. The results of this analysis make us able to planning marketing plan on the business for achieve the goal and get highest profit. In the analysis, there are four main factors that are political, economic, social environmental and technology, so the business must has general environment analysis and the competitors in the market to perform with efficiency of the company in the future. Political Mrs. Pattiraporn Kheawsanan said Thai spa business has rate of growth in each year at an average annual 5-6%, average revenue about 15,000 to 16,000 baht per year. Most of the customers are foreign tourists 80%, and the remaining 20% is the tourists of Thailand and now Spa industry planning to increase expand the market. Nowadays, Spa business gets supported from government agencies and the private sector to help drive Thailand's spa has the availability of quality the international standard. For example, to encourage entrepreneur join in various the competition that concerned spa business. The award will help to guarantee a spa in Thailand is clearly also a way for consumers to know more Spa especially quality standards of products and services behavior. (Reference: http://www.thai-aec.com/463#more-463) Economy Thailand's economy grew only 2.2 percent in the first half of 2012, Thailand's economy to grow 7-9% in the second half of 2012. (Reference:http://thailand-business-news.com/th/economics/40632-thailand-gdp-growthcould-reach-7-in-second-half-of-2012#.UMigZ-Se-Ys) How Thailands economy in next year?

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Bank of Thailand said it will be slightly better than the estimate the originally expected next year will grow by around 5.6% and the last information believe that will be growth about 5.8%. The big company has not been affected because the company's profits improved and income tax expense was down more than 7% to compensate for increase labor cost. The small and medium-sized enterprises, turnover is not good and the tax does not help when expense higher labor cost 30-40% from the past. Thailand's economy will grow better because the production, consumption of private investment and the export of the country will be better than this year. While the global economy has improved as well and more stable. In the inflationary expected to rise and the rate increased slightly. (The base economic news paper of the 32 No. 2799 on December 9-12, 2555.) (Reference:http://www.thanonline.com/index.php?option=com_content&view=article&id=15 8183:2012-12-07-04-11-20&catid=85:2009-02-08-11-22-45&Itemid=417) Social and environment Nowadays, most people in social interesting in their health inside and outside of their body, so, spa is a popular choice for people who want to have their own business. Spa in Thailand has been growing since the year 2002 and spa has expanded overall both in the number of people who use services and the place that provide services. The number of spa services in Thailand, it has approximately 320 locations and most of them are small entrepreneurs nearly half of all the spa in the resort or hotel resort. The employment more than 5,000 people, which is about 20 percent are carried out in Phuket area. (http://www.dbd.go.th/mainsite/fileadmin/contents/information/brochure/11Manual_Spa.pdf) However, trend of healthy in Thai people causes of business to expand out of hotel or resort and rapid expansion in business area that under the concept providing a variety of services. That is the reason can make spa business have high potential to growth in the future. In addition, Thai people are so interesting in skincare product made from natural because it have not many chemical in ingredients and safety for all types of skin; normal skin , oil skin and sensitive skin. It is another line in spa business that can be export goods because
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in others countries interesting in Thai herbs, so it is easy to expand spa business and spa products into international market. Technology In the current, technology has expand rapidly and have a new trend every day, so it useful for people and business that can increase communication ways easily. For the spa business, have to use technology to help manage within firm. It can use to collect the information of customer and help to service to satisfy customer directly. Moreover, when production of spa product use high quality of machine to produce , it can make profit to firm because the product have high standard and safety also can contact with customer both in country and other countries readily. Summary of the General Environmental Analysis The study and analysis of the environment are important to the business as much as we need to be aware of the changes that will occur over time as political, economic or various technologies that are developed to grow continuously. Totally that will help reduce the risk of the operation business. Competitor Analysis Direct competitors.

Phu Chaisai Mountain Resort & Spa Located at 388 Moo 4, Ban Mae Salong Nai, Mae Chan,Chiang Rai 57110. Spa treatments based on natural and organic products and ancient therapies from all over Asia based on knowledge passed down from generation to generation. They have service are Spa Packages,
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Bamboo Signature Treatments, Massages, Body Treatments, Facial Treatments, Hydrotherapy, Saloon, Yoga & Meditation and Spa Basic. (Reference: http://www.phuchaisai.com/index.html)

Sumalee health center and spa Located at 681 /7 Si Wiang district of Chiang Rai, Chiang Rai 57000. Service in Sumalee health center and spa destination have Body Massages, Body Scrubs, Body package, Facial treatment, Barber & Beauty Salon, Fitness Center have promotion with members. (Reference: http://web.chiangrai.net/tourcr/customer/sumaleespa/index.html)

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Anantara Resort & Spa Golden Triangle Located at 229 Moo 1, Chiang Saen Chiang Rai 57150. Anantara Spas are designed to restore balance and harmony between body and mind in an oasis of beauty, grace and tranquillity. Intoxicating aromas of the world's most exotic elixirs and oils are used in treatments designed to deliver radiance, healing and a quiet sense of inner and outer well-being. Service in Anantara Resort & Spa Golden Triangle have Ultimate Spa Detox, Anantara Ritual package, Taste and Touch of Thailand and YOGA. (Reference: http://goldentriangle.anantara.com/)

The River House Resort & Spa Located at 482 M.4 , Mae Kok Rd., T. Rim Kok A. Muang Chiang Rai 57100. Indulge yourself with our popular Thai traditional spa treatments of your choice where guests can enjoy all of the pleasures and achieve true deep relaxation from our professional staffs. The River House Resort & Spa have a service Imperial Massage which are Thai Traditional massage, Oil massage, Swedish massage, Deep Tissue massage and Herbal Compress massage and the Imperial Body Scrub programs also available for you to try such as Coffee Body Scrub, Milky Rice Herbal Body Scrub and Tamarind Scrub. (Reference: http://www.imperialriverhouse.com/spa-en.html)
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The Legend Chiang Rai Boutique River Resort & Spa Located at 124/15 Moo 21 Kohloy Road, Amphur Muang, Chiang Rai 57000. Based on fresh Thai herbs and Thai aroma essential oils that have been used for centuries, our treatments are a holistic approach. The outdoor environment brings you close to nature, yet in total comfort to give you an unforgettable experience. Enjoy our massage treatments either outside on a massage sala with river view or in one of our private air-conditioned treatment rooms. (Reference: http://www.thelegend-chiangrai.com/)

Golden Pine Resort and Spa Located at 291 Moo 4 Baan Muang Kham Tambol Nang Lae, Chiang Rai 57100. Discover the ultimate in relaxation and tranquility. The Hom Nuan Spas philosophy is to offer a sanctuary for you to relax, unwind, recharge and rejuvenate. We offer a wide range of rejuvenating, relaxing spa treatments using a blend of selected quality products. Our fully qualified masseuse will restore the health and well being of the mind and the body. You will
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feel totally revitalized. Come to Hom Nuan Spa for a special treatment today and give your mind and body the luxury it deserves. (Reference: http://www.goldenpinebeach.com/) General competitors PK Hot spa resort: Located at 21 Moo 6, Tambol Doi Hang, Amphur Muang, Chiang Rai 57000. Teak Garden Spa Resort: Located at 155 Moo 19, International Airport Rd., Bandu District, Muang, Chiang Rai 57100. Due to 1-2 years ago, most of the spas usually open in the hotel and resort at tourist attractions. That makes some consumers cannot access to the service. In addition, the service fees of the spas which located in the resort or hotel are very high. That are obstacles of these services to target their marketing to the high level consumer only. So, if a spa services is a stand-alone and a moderate service fees. It would be a great choice for health-conscious consumers, and demand for services.

Customer analysis Our company mostly focuses on the foreigner tourism in any type of region. We want more customer from many country get to know more a about Thai spa and massage. So, that the target is all foreigner. Some customer from some country might already know about Thai massage and some dont know yet. Anyway the most customers in western country may interest in spa more than other the customer will more concern about their health. And also the price from our company low price than the price in their country for spa industry and also good service provider, friendly between the jobs. Most of customer will satisfy and come back again so, this target group will easier to catch up.

The rang and percentage of popular spa in chaingrai

The most popular spa in chaingrai is Thamma Da Day Spa by Chivit Thamma Da it possess the first rang of spa . which the percentage of customer is 30% of the target customer And then Tevari Spa possess the second range which percentage of customer 25% is and finally is Wang Jao Clinic and Spa these the most popular spa in changrai which percentage of

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customer 15 %. The left over is the other small spa like in walking stress or other spa. So We want 20 % of customer or more than that if possible. Analysis the behavior of customer. The surveys have show up that from the 140 people about the factor that why choosing spa are. 34 % of the customer choose spa because the place, good position and the design of the spa. 28 % the several of service for each spa. 20 % the reputation and the person who provide the service of spa. 18 % focus on selling price and the promotion of spa.

Summarize For the information most of people like to go spa because of the position, place and the design of the spa is the main factor the customer focus and make decision to go to spa. However the vary of service also importance for the customer decision. So we have to focus strategy on the absolute advantage on the good place easy to travel and safe. Moreover, We will plan strategy for the service and product.

Each of the major factors that influence the decision of customer to choose the spa. Factors in the location and design of the store. - Consumers value the convenience of traveling the first 108 people. - Consumers pay more attention to the environment of all the second location 104 people. - Consumers pay more attention to all facilities is 80 people. - Customer focus on the idea of design is 72 people. From the data above can summarize that the customer very focus about the place which convenience in travelling moreover the environment and safety of the place is the importance factor that we have to focus on.
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Factors of standardization and the staff. Customers focus on the expert skill of staff or specialize of spa industry about 124 people. Customer focuses on the service and the advice of the staff about 108 people. Customer focuses on the dressing form and the good character of employee about 72 people. Customer focuses on the reputation, famous of spa about 44 people. From the above information can summarize that skill . advice of employee is the most importance factor because who come to spa want to relax both of mental and physical health. Because most of customer dont know about the benefit of spa service or type of massage. In fact of good uniform and about the reputation of staff is less importance but still can create the reputation of the spa.

Factor providing the service. Customer focus on the safety and reliable of the service about 116 people. Customers prefer the new technology of the equipment about 92 people. Customer focus on the vary and style of providing the service about 80 people.

From above information show that most of the customer focus on their safety about the service cause the main service of spa is massage so that for each massage is about the line muscle in body so on the employee must provide the information to the customer and ensure the equipment clean and safe. Factors of price and promotion. Customer focus on the promotion of the service about 96people. Consumers pay more attention to health education about 80 people. Consumers pay more attention to the activities with can join with credit card or tours and hotels about 36 people.

From information above the customer have the opportunity encourage using the spa from the promotion. The knowledge about health and hygiene. Consumer services, it is
30

important to provide consumers with knowledge and understanding. Encourage active and start more health conscious. Although less important than price discounts. The tour company or hotel, the credit card issuer is not interesting or relevant to the consumer consider. *Reference: Licensed by the Department of Industrial Promotion School of Management Mahidol University.

The general information of tourist in chaing Rai From the survey of 400 touristic. Most of respondents are women take about 74.2% the most age is about 31-35 , 24.3% . In Bachelor degree about 57.6 % . Private employees and owner of business which have similar proportion 33.0 % and 32.2 % Income less than 10000 bath per month is 41.3 % second is 10001-20000 bath per month 31.9 % And live in north of Thailand about 85.4 % second is Bangkok 10.6 % People who live other canton of changrai or nearby chaingrai province use to take the vacation time in chaingrai and like to spend on the spa about 500 -1500 bath per 1 time 40.5 % Information Gender Male Female Total 103 297 400 25.8 74.2 100 number %

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Information

number

Age Less than 15 year 15-20year 21-25year 26-30year 31-35year 36-40year 41-45year 46-50year 50 above Total 1 24 74 54 97 55 50 25 19 399 0.3 6.0 18.5 13.5 24.3 13.8 12.5 6.3 4.8 100.0

Level of education Less than Bachelor degree Bachelor degree Masters degree above 124 223 40 32 57.6 10.3

Total

387

100.0

Occupation

Government employees 45 Private employee 121 Business owner 12.3 33.0

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House hood University employee State employees Student Pension person Actor, actress Total

118 62 3 3 13 1 1 367

32.2 16.9 0.8 0.8 3.5 0.3 0.3 100.0

Continuous Information Income Less than 10000 10,001-20,000 20,001-30,000 30,001-40,000 40,001-50,000 50,001-60,000 More than 60,000 Total 162 125 46 26 18 8 7 392 41.3 31.9 11.7 6.6 4.6 2.0 1.8 100.0 number %

Household Upper North South north South Middle except bangkook Bangkok 339 4 3 7 85.4 1.0 0.8 1.8
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East Northeast -Total

42 1 1 397

10.6 0.3 0.3 100.0

The behavior of spending for spa. Bath Number %

Less than 500 bath 500-1500 bath 1501-2500 bath 2501-3500 bath 3501-4500 bath 4501 more than Total

50 90 40 22 11 9 222

22.5 40.5 18.0 9.9 5.0 4.1 100.0

Reference : Researcher from Aj. Supannika kwanmeang ,lecture of Business admistration Mae fah lung university. And Aj.benjawan mokamon Liberal arts Mae fah lung university.

Summarizes From the information above most of the behaviors of customer spending for the spa in 5001500 bath but we focus on less than 500 because our business target on suitable price not too expensive and not too cheap but even the this behavior its according to their demand of
34

service if they want more service from our spa the price will increase too. We focus on student from the bachelor degree which have 57.6% . We will set the price that suit for this target.

The expectation of the customer for the services. 1) The first massages the customer very high expect about the essential oils about 3.69. Second is Thai massage 3.61 and the third massage for cure injury from sport and stone therapy 3.60 By the way the satisfaction is in the same level of expectation. But Chinese, Japan, Bali and western massage style not get the satisfaction of customer in normal level that show up that Thai massage is very popular so we want to adjust our spa to be and want to let the customer get very high expectation from our spa by Thai tradition massage. Because most of customers are expect of very high of satisfactions for spa. We sure that our spa can perform to good quality and service for the customer.

The Statistic of tourism in 2009-2012 The summarize of statistic traveler that travel in Chiang Rai

http://www.chiangrai.net/dashboard19/

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http://www.chiangrai.net/dashboard19/

http://www.chiangrai.net/dashboard19/

http://www.chiangrai.net/dashboard19/

36

http://www.chiangrai.net/dashboard19/?PID=VG91cmlzdC9Ub3VyaXN0MS5hc2N4

http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Management_

Search 2555 . . . 57100

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Competitive Analysis Our company is Precious & Royal Spa has Thai- modern style that has a service such as body scrub and massage. In Chiang Rai have many spa in many place such as hotel or travel place so, spa industry is highly competitive because Chiang Rai have famous about natural travel place and we have many people of tourist. When thinking about a spa, we will think about nature. So, Chiang Rai is suitable for this business.

The Different of the competitor.

Direct competitors Phu Chaisai Mountain Resort & Spa

Strength -They have more service in their spa. -They have a unique massage such as Bamboo Signature Treatments. - Beautiful place.

Weakness - The service is very expensive. - Spa not has promotion for customers.

Sumalee health center and spa

- They have promotion for members. - Their spa has variety of services such as fitness center.

- They have the products imported from France so, their spa has more expensive in service. - Expensive.

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Anantara Resort & Spa Golden Triangle

-Decorate a beautiful place and their spa has a relaxed atmosphere. - Their spa has a luxury of product and interesting in service such as d Wine Therapy. -Sell the products in their spa.

- Expensive and not have special promotions for customers.

The River House Resort & Spa

- Use of natural products to reduce imports from abroad. - Beautiful place.

- They provide the details of each product in service that are not clear for customers. - Not have variety of services because their spa has massaged only one. - They provide the details of each product in service that are not clear for customers.

The Legend Chiang Rai Boutique River Resort & Spa

- Use of natural products. - The perfect atmosphere for relaxation.

Golden Pine Resort and Spa

-Their spa has a luxury of product and services. -Beautiful place.

- They provide the details of each product in service that are not clear for customers. - Not have variety of services.

In a highly competitive society have built stress in work or business, and Increased to health problems so, the behavior of consumer in health care has changed. Especially the demand of relaxation in various forms so, entrepreneurs must have strategy better than competitors. Precious & Royal Spa has seen the importance of business and services by focus on group of customer is the heart of services. From the competitor, we are different from them because all service we use the natural resource to reduce imports from foreign countries, low price, and we have the detail of each product inform to the customer that can useful for them when they want to take service. Our spa has a combination of modern design and natural to consumers have confidence in the place and relax when they come to our spa.
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STP Analysis Segmentation Demographic Segmentation Gender : Male / Female Age : 18-40 year Revenue : more than 5,000 Education : Bachelor Race :Thai , foreigner

Psychographics Segmentation Social Class Life Style Behavior

Target Market We concern about the Group of people working, student and foreigners because the location of spa business Location near Chiangrai Rajabhat University and not far from downtown it is also close to the community and the workplace. Makes main target are local people, working people and foreigners who come to Chiang Rai. Our spa is indicative of the culture of the Chiang Rai able to attract tourists a visitor Chiang Rai and many people who come to Chiang Rai want to see the culture of the Chiang Rai exists and our spa need to show something different from the general spa to impress the customers who use our service spa.

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Position Precious & Royal Spa focuses on customer satisfaction for target customers who are using the service because of spa is the business that need to focus on providing services directly to clients. Thus, our spa must bring the needs of customer used as a guide for respond the needs of customer, make highest customer satisfaction and competitively in the market. Precious & Royal Spa focuses on service because our personnel has mind to service, they through training well that they can provide service and treatment information to spa customers and advice spa product and sale promotion to the customers and significant the customer will need to get special attention and special care when using the service. These things were in our personnel mind for make the consumer feel relaxed and creates a good feel for our spa as well.

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Marketing Mix Strategy The market mix strategy also knows as 4Ps, it has four important elements to analysis as follow; Product strategies The first, product or service strategies, we have two mainly service in spa as follows; Body Massage

(http://th.mygroupon.co.th/vouchers/bangkok/travel/holiday/spa-weekend)

-Hot Stone Massage: is spa by use hot stone in massage. It helps stimulate of blood into the body, increase efficiency of detoxification, decrease muscle aches, skin healthy to smooth, decrease the wrinkle, sports and scar. -Deep Tissue Massage: is herbal that have composition of oil combination pack such as Turmeric, Bergamot, Camphor and etc. -Aromatherapy Massage herbal foot: is the massage by use essential oils and use stick to the foot point. -Thai massage: use finger, fist, elbow, knee and foot for Thai massage.

-Hot Stone Massage: is spa by use hot stone in massage. It helps stimulate of blood into the body, increase efficiency of detoxification, decrease muscle aches, skin healthy to smooth, decrease the wrinkle, sports and scar. -Deep Tissue Massage: is herbal that have composition of oil combination pack such as Turmeric, Bergamot, Camphor and etc. -Aromatherapy Massage herbal foot: is the massage by use essential oils and

42

Body and face Scrub

(http://saimaispa.wordpress.com/%E0%B8%A3%E0%B8%B9%E0%B9%89%E0%B8%88%E0%B8%B 1%E0%B8%81-%E0%B8%AA%E0%B8%9B%E0%B8%B2/)

-Ginger body scrub: is body scrub by use ginger. It helps to deep cleaning of pores because ginger has a hot property. Then it helps to eliminate the dead cells and grease the outer surface of the implant for radiant skin. -Brown & Coffee herbal body and face scrub: the extra attribute of coffee is to help stimulate of blood and sugar make soft skin, detox , remove dead skin cell and radiant skin. -Herbal Salt body and face scrub: Are body scrubs that have mixture of herbal and sea salt help to remove dead skin cell and radiant skin. -Fruit body and face scrub: vitamin C in fruit that help radiant skin and remove grime on skin.

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Price strategies Type of services 1.Aromatherapy Massage Herbal foot 2.Thai Massage 3.Ginger body scrub 4.Brown & coffee herbal body scrub 5.Fruit body scrub 6.Herbal milk face mask 7.Fruit face scrub and mask 8.Gold face mask Price (Baht) 450 baht per 1 hour 30 minute 399 baht per 1 hour 30 minute 350 baht per 1 hour 350 baht per 1 hour 350 baht per 1 hour 150 baht per 30 minute 180 baht per 45 minute 200 baht per 50 minute

Product Type of products 1.Herbal body scrub 2.Ginger Body scrub 3.Brown & Coffee body scrub 4.Fruits body scrub 5.Fruits face mask Price (Baht) 200 baht per 100 ml 200 baht per 100 ml 250 baht per 100 ml 200 baht per 100 ml 199 baht per 50 ml

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Package Type of Package 1.Thai massage + Herbal milk face mask 2.Ginger body scrub + fruit scrub & mask 3.Brown & Coffee herbal body scrub +Gold face mask 4.Aromatherapy massage herbal foot + fruit face scrub & mask 599 baht per 1 hour 30 minute Price (Baht) 650 baht per 2 hour 499 baht per 1 hour 45 minute 500 baht per 1 hour 30 minute

Place Strategies, we will location at Ban Do in Chiang Rai because our company to emphasize the services for traveler, student, teacher and person that want to relax. The our company set to near Namthong Hotel Resort, and pathway to between Mae Fah Luang University and Chiang Rai Rajabhat University. Then makes we have different of customer and easy to travel use to our service.

45

Promotion strategies, we will send brochures to university, school and tourism Company. We will give brochures to customer that shopping at Central Plaza Chiang Rai, Big C super center, Mae Fah Luang University and Chiangrai Rajabhat University. In our brochures contain about detail of service in spa, promotion, telephone number or E-mail and map of our company.
46

 Precious & Royal Spa

Logo

Handbill

47

Marketing Expenses (Sales Incentive)

Sale (Baht)
Year1

48

Year 2

49

50

Year 3

51

52

Year 4

53

Year 5

54

55

Marketing Expenses (thousand Baht)

Year 1 Description Commission Radio Adv Brochure Total 1 2 3 4 5 6 7 8 1404.05 1535.65 1710.7 3046.98 1839.75 1677.65 1920.75 1721 9 10 11 12 Total 1742.8 1671.95 1857.15 3865.14 23993.57

1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000 500 0 0 0 0 0 500 0 0 0 0 0 1000 3404.05 3035.65 3210.7 4546.98 3339.75 3177.65 3920.75 3221 3242.8 3171.95 3357.15 5365.14 42993.57

Year 2 Description Commission Radio Adv Brochure Total 1 2 3 4 1525.45 1759.15 1486.35 3022.2 5 6 1831.85 1672.7 7 8 9 10 11 12 Total 1466.7 1621.75 1453.65 1379.8 1523.05 3704.4 22447.05

1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000 500 0 0 0 0 0 500 0 0 0 0 0 1000 3525.45 3259.15 2986.35 4522.2 3331.85 3172.7 3466.7 3121.75 2953.65 2879.8 3023.05 5204.4 41447.05

Year 3 Description Commission Radio. Adv Brochure Total 1 1438.6 1600 300 3338.6 2 1497.4 1600 0 3097.4 3 1370.7 1600 0 2970.7 4 2358.5 1600 0 3958.5 5 6 7 1487.75 1357.25 1381.4 1600 1600 1600 0 0 300 3087.75 2957.25 3281.4 8 9 10 1574.95 1824.15 1385.7 1600 1600 1600 0 0 0 3174.95 3424.15 2985.7 11 1246.5 1600 0 2846.5 12 3443.4 1600 0 5043.4 Total 20366.3 19200 600 40166.3
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Year 4 Description Commission Radio. Adv Brochure Total 1 1451.6 1600 300 3351.6 2 1615.1 1600 0 3215.1 3 1888.55 1600 0 3488.55 4 3404.82 1600 0 5004.82 5 1780.45 1600 0 3380.45 6 1650.75 1600 0 3250.75 7 1659.45 1600 300 3559.45 8 1546.55 1600 0 3146.55 9 1528.2 1600 0 3128.2 10 1535.45 1600 0 3135.45 11 1448.45 1600 0 3048.45 12 3495.6 1600 0 5095.6 Total 23004.97 19200 600 42804.97

Year 5 Description Commissio n Radio. Adv Brochure Total 1

1465.2 5

2
1597.8 5

3
1677.7 5

4
3092.8 2

5
1630.3 5

6
1620.9 5

7
1459. 2

8
1586.7 5

9
1650.3 5

10
1497. 1

11
1615.7 5

12

Total

3628.6 22522. 8 8

1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000 300 0 0 0 0 0 300 0 0 0 0 0 600 3265.25 3097.85 3177.75 4592.82 3130.35 3120.95 3259.2 3086.75 3150.35 2997.1 3115.75 5128.68 41122.8

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Marketing feasibility Summary In the general environment analysis that it analyze in four part; political, economic, social and environment and technology, of external factor also we analyze about the competitor that we use to compare with our spa to improve the service of our firm including we analyze the competitive of spa business in Chiang Rai that we concern about their strength and weakness in the current useful for improving the service. Moreover, we analyze the customer that we choose the Foreigner tourist, Thailand tourist that is our target market and we have the reference to show about rate of tourist come to travel in Thailand, Chiang Rai. In marketing mix strategy (4P),we contain the detail are our service in spa that have three types mainly ; body massage, body scrub and sell product. Our price we have set the price that have lower than competitor. We choose the place at Ban Do because it is near Namthong Hotel Resort both and both university including Mae Fah Luang University and Rajahbhat University. Our target is emphasize study and travel because it near both university and our company have promotion that want to customer come back to use service again and again. The customer can come easily also we use brochure for promotion.

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CHAPTER 4
Precious & Royal Spa

Technical Feasibility Study

Technical Feasibility Study

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Production and Operations Analysis Product Characteristics (in detail) At Precious & Royal spa has 2 floors for make spa. First floor has 2 zones for provide service to customer, first zone; for advice and provide information of spa service program that appropriate to customer. This zone we have information counter, sofa, and cabinet show our product. Next, zone; for body massage that we bisect it for do spa 2-3 person in the same time. We have toilet for men and women, in the middle room we have sofa that we provide to customer when they wait for our service, they can talk with other customer to share information of service that they will get from our spa. This zone we make for customer to get comfortable. Second floor, we have 2 big rooms and 2 small rooms for our customer. First room, body and face scrub room which we have 2 beds but we bisect them for make it to be private for our customer who come to take our service alone and we have sub program according to the customer requirement such as Ginger body scrub, Fruit body and face scrub, Herbal Salt body and face scrub and Brown & Coffee herbal body and face scrub. Then, our service is complimentary mineral water and milk to service our customer that they will receive comfortable and relaxes from our service. Next room, body massages also have 3 beds for massages include with Hot Stone Massage is spa by use hot stone in massage, Deep Tissue Massage is herbal that have composition of oil combination pack such as Turmeric, Bergamot, Camphor and etc., Aromatherapy Massage herbal foot is the massage by use essential oils and use stick to the foot point and Thai massage use finger, fist, elbow, knee and foot for Thai massage. We want to serve the best service to our customer that they will receive comfortable and relax from our service so, we have build-in toilet for this room. Last room, baht room has 2 rooms that we have locker for customer to take their cloth after they take our service. In the baht room we have body lotion, body jell, body soap, shampoo, and condition of our spa. For service - we mix between west and Thai style in Precious & royal spa that we design to appropriate for type of spa and it will have different feel when you take our
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service. - We have provided the special gift set and gift voucher in the season such as New Year Festival, Valentine, and etc. - We will have meeting for our customer that they are our member and we will product special gift that we never produce for use in spa service but we product only one time. - We have trained our employee to be expert in spa service to provide the best service to customer. - We have employee to provide our information and spa service program that our customer can choose the program that appropriate with them. - We will open music and serve beverage when our customers waiting for take our service.

Service process
What is massage? Massage is a general term for pressing, rubbing and manipulating your skin, muscles, tendons and ligaments. Massage therapists typically use their hands and fingers for massage but may also use their forearms, elbows and even feet. Massage may range from light stroking to deep pressure techniques http://www.mayoclinic.com/health/massage/SA00082 Thus, massage is the important thing in spa because it can help customer to relax. The customers come in spa because they want to relax from work, traffic and other problem, the benefit of massage is increase your body self awareness and sensitive and make you feel good, it is a pleasurable experience. Massage reduces your stress, tension and anxiety levels. Massage is the most important for mood and mind condition. We will find the ways to relax the customer have most happy.

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-Hot Stone Massage: is spa by use hot stone in massage. It helps stimulate of blood into the body, increase efficiency of detoxification, decrease muscle aches, skin healthy to smooth, decrease the wrinkle, sports and scar. Hot Stone Massage that we bring hot from volcanoes stone or lava rock that is rich in natural minerals. The stone cutting through a convex curve then combined with a massage and mild flavor essential oils. We put the stone through the center of life then the heat from the hot stones will gradually penetrate through the body. These helps pain relieve - pain and muscle tension for performance of the cardiovascular system, help balance the body, reduce the accumulation of cellulite, makes the skin smooth and clear skin for good health. According to http://www.dailynews.co.th/article/15176/18356

-Deep Tissue Massage: is herbal that have composition of oil combination pack such as Turmeric, Bergamot, Camphor and etc. This massage technique uses slower, more forceful strokes to target the deeper layers of muscle and connective tissue, commonly to help with muscle damage from injuries. http://www.mayoclinic.com/health/massage/SA00082 deep issue massage that we are practice of pressing, kneading and massaging specific areas of the body to relieve pain and relax and stimulate the body's tissues by work on tendons ,ligaments and the muscle. According to http://www.photalaithaimassage.com/thai/thaiservicetext.html

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-Aromatherapy Massage herbal foot: Aromatherapy massage An aromatherapy massage is a form of massage therapy that combines the benefits of aromatherapy with those of massage to promote wellbeing and healing. This form of massage therapy utilizes the aromatherapy essential oils as massaging agents. The added medicinal powers of these oils greatly enhance the efficacy of the massage. It must be borne in mind that essential oils should never be applied directly to the skin for massage purposes. This is because pure essential oils are extremely concentrated and may lead to burns and rashes. Instead, the essential oil should be mixed with base oils, also known as carrier oils. Aromatherapy Massage Techniques, A full body massage is not necessary in order to benefit from the essential oils. Blended essential oils may also be rubbed locally onto a specific area to alleviate muscular aches and pains, stiffness in the neck or congestion. You can also perform the massage on your own. Just ensure that you utilize gentle strokes leading towards the heart. This improves blood circulation. Benefits of aromatherapy massage. Physiological Benefits Aromatherapy massage can:

enhance lymphatic drainage this helps to reduce fluid retention and prevent oedema induce a feeling of deep relaxation in the body help to restore balance in the body stimulate the bodys natural immune system increase the oxygen and nutrient supply to the tissues by increasing the blood circulation

help to increase energy levels as blockages and congestion in the nerves are eased Psychological Benefits Aromatherapy massage can:

promote a general state of well-being calm and soothe the mind help to reduce nervous tension
63

help to lift the mood and reduce feelings of depression

(Reference : http://www.healing4wellness.com/new/shop/aromatherapy/, http://www.healing4wellness.com/new/shop/aromatherapy/)

-Thai massage
Traditional Ancient Thai massage is a unique form of Bodywork that incorporates Hatha Yoga, acupressure and reflexology. The Thai Method, thai Massage blends styles

from Asian neighbors passed down through the generations. Unlike the scooping and continuous strokes of Western massage, the Thai method uses point pressure, muscle stretching and compression, done in a rhythmic movement of gentle rocking. In Thai massage it is not just the hands that are used to free tension from the recipient's body, but the therapists feet, forearms, knees, and elbows as well. Be assured northern style Thai massage is never painful. Thai massage is applied on a mat on the floor, the work is done fully clothed and no oils are required.
Thai medical massage can move deeper into the mechanical functions of the body, working with deep muscle tension and joint mobility as well as nerve, muscle and ligament balancing.

There are six key points of Thai massage 1.Yoga 2.Exercise 3.Meditation 4.Reflexology 5.Acupressure 6.Healing Art

64

Benefits of Traditional Thai Massage

Facilitates relaxation Heightens awareness Frees blockages in energy flow Invigorates the nervous system Relieves pain and muscle tension Increases ability to absorb nutrition

( Reference : http://www.spiritwinds.net/what_is_thai_massage.html) Body Scrub Body scrub will scrub by use salt that mixture of various herbs. The benefits of scrub help to clean up the body and Blood flow that affect to radiant skin. Usually the body of human shed the skin cells every 2-4 weeks, but to slow down the shed skin cells when you have 20 years old, then it cause wrinkles and dull skin, so the scrub helps the skin cells shed faster. -Dry skin: The scrub will help remove dead skin and cream absorbed into the skin surface. - Combination skin: Help reduce acne and smooth skin tone. - Oily skin: Help clean up pores, reducing blockages and removing hyper pigmentation that cause by acne - Wrinkles skin: Help to stimulate the Shed the skin cells natural function better. Help solve the problem of wrinkles and dark circles, it made brighter and more youthful skin. - Orange peel skin: The scrub every day helps stimulate blood circulation in the vicinity of crack skin, removing wrinkles and brighter skin.

65

The structure of spa design. Frist floor.

This is the overall view of the spa model that we design. We want the customer to feel comfortable and relax in our atmosphere with Thai and modern style to be mix but still keeping Thai traditional which is Thai spa.

66

The spa precious living room.

The living is on the first floor. When the customer enters first step. Inside they can sit or relax while they wait for our service this room we focus on luxury views that customer will perceive. And then our receptionist will serve the Thai traditional or sparkling water beverage and snack.

67

The office.

This is the office for management that controls the all system and structure of organization this is very important department. We support the employees by design and provide good furniture and facilities for the employee for encourage them to work well.

68

We have two big toilets that have many facilities for the customer and the staircase beside.

69

Inside the toliet

70

Second floor

Second floor will be spa rooms that customer get the service from us we have many worker for massaging or spa for the customer.

71

For each room will be several of design.

First room

72

Second room

Third

73

Toliet second floor

74

 Precious & Royal spa, open 09.00 a.m. 8.00 p.m. [Closed on Sunday]

75

Machine / Tools / Equipment

Fist Floor

Television

Sofa

Computer

Refrigerator

Counter Telephone

Air conditioner
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Toilet room (First Floor) In Toilet room in the store, within has four Toilet bowls, five Toilet tissue boxs, four Toilet hoses, one Mirror Price, one long basin and 5 doors.

Toilet bowl

Rinse spray hose

Door Knob

Mirror

Toilet tissue box

77

Bin

Door

Tissue

Bathing gown

Towel

78

Slipper

Doormat

Toilet (Second Floor) We have four room that in each room have bathtub and toilet bowl , the customer can change clothes before get the service.

Basin
Toilet bowl
Toilet bowl

Toilet bowl

Rinse spray hose

Bin

79

Toilet tissue box

Tissue

Hanging Towels

Bathtub and shower

Bathing gown

80

Towel

Doormat

Slipper

Office Room(First Floors) In this room, we use for manage all function such as marketing, financing and operating that are one computer , one air conditioner , multifunction laser printer, telephone ,FAX , one table, three chairs , plug, bin and shelves.

Table

Chair

81

Shelves

FAX

Multifunction laser printer

Telephone

Air conditioner

Computer

82

Bin

Plug

All stationaries

Second Floors is the floor of service that are body massage, body scrub, the herbal compress ball and the sauna room.

Sofa

Locker

83

Massage Bed

Massage Chair

Air conditioner

Basket

84

Products use in spa

Products for body massage Balancing Aroma Massage OilRelaxing Aroma MassageOil

Hot Stone Massage Hot stone Herbal oil

Herbal Oil - Thai Herbs

(Reference : http://www.stockngo.com/africa-s-best-ultimate-herbal-oil-with-ginseng-bonus-12-oz.html) (Reference : http://natchiro.com/massage/hot-stone-massage/) (Reference : http://www.byspa.com/Products/showdetail.asp?pro_id=13)

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Products for body scrub

Ginger Body scrub Herbal body scrub 200 baht per 100 ml 200 baht per 100 ml

Brown & Coffee body scrub 250 baht per 100 ml

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Fruits body scrub 200 baht per 100 ml

Fruits face mask 199 baht per 50 ml

(Reference:http://www.facebook.com/media/set/?set=a.161981040597671.32635.13999473 2796302&type=3)

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Logistic management

In our spa we use logistic manage the performance in organization and support customers need. The organization: it helps to transport, storage, collection, distribution and give goods or product efficient to support customers need.

Physical management distribution

Order

Payment

Production

Shipping the goods

Delivery postal

Delivery by bus

88

Facility Management
For our spa will provide the way to support the customers need to give them get most benefit from our service. We must concern on security for our customer and our equipment because we must to protect our customer and our equipment must have good quality available for use in everyday. Our spa will provide the staffing that has experience about way to do spa and have knowledge about the use of product spa. Then, we will training program to them by using HRM management that help them able to provide the information of each type of spa which tell about way to do in each spa, benefit of each spa, and our promotion of each spa to our customer. So, we manage our spa for serve the service to customer to get customer satisfaction when they come to use our service. In service, we will provide body massage and body and face scrub. We have provided the information and method in each service before the customer get also we have the adviser to give suggestion to customer with service appropriate for the personal.

Management For building, we have the insurance to save and we have the engineering to control all process from design and maintain also we have the CCTV (Close-circuit television) to prevent lose.

The CCTV

89

For the information, we have two channels to contact with customer that are by Email and telephone. Moreover, if a customer wants to register to be our members, they can register by themselves at our spa (free fees) and all of information of customer will keep into the system in computer.

Figure of security system of the information

Source of the information

Contact by E-mail

Telephone

Register to be member

Keep in computer

Fill password

Use the information

90

Invest Cost No. 1 2 3 4 Office room Descript Computer Lenove All in oneC225 Printer HP Photosmart C4680 Fax Sharp UX-P850 Air conditioner higer HUS18CEK03-T(E) 5 6 7 8 9 10 11 12 Desk Cabinet Chair Sofa Window phone panasonicKX-TG 3600BxB Door (1 pair) Electronic Iron Philips GC1903 Total 3,690 500 1790 10,900 3,000 999 13,000 750 1 3 4 1 4 4 1 2 3,690 500 7160 10,900 12,000 3,996 13,000 1,500 155,116 Price/unit 20,600 3,990 3,590 14,500 No. of unit 3 2 1 2 Total Price 61,800 7,980 3,590 29,000

No. 1

Living Room (First Floor) Descript Air conditioner higer HUS18CEK03-T(E) Price/Unit 14,500 No. of unit 2 Total Price 29,000

Sofa

10,900

54,500

91

3 4 5 6 7 8 9

Reception desk Shelves of television Television LCD 40 Door Window Refrigerator Sharp SJ-N155-SL Water heater Sharp WH-33 Total

17,900 1,500 17,840 5,000 3,000 5,390 2,490

1 1 1 1 6 1 1

17,900 1,500 17,840 5,000 18,000 5,390 2,490 151,620

No.

Toilet Room ( First Floor ) Descript Price/unit No. of unit Total price

1 2 3 4 5 6

Basin Mirror Door Toilet horse The exhaust fan Toilet tissue Total

5,990 1,590 4,500 17,500 1,155 1,350

3 3 3 3 1 5

17,970 4,770 13,500 52,500 1,155 4,050 93,945

92

No. 1 2 3 4 5 6 7 8 9

Toilet Room ( Second floor ) Descript Toilet Towel Toilet horse Hanging Towel Door Bathtub Cristina CT-LE185090WP Basin Heater shower The exhaust fan Tissue box Price/unit 599 17,500 1,300 4,500 66,500 5,990 4,200 1,150 350 No. of unit 2 2 4 2 2 2 4 1 4 Total price 1,198 35,000 5,200 9,000 133,000 11,980 16,800 1,150 1,400

Total

214,728

No. 1 2 3 4

Body scrub Descript Bed massage Shelves Door Window Price/unit 7,500 629 5,000 3,000 No. of unit 2 2 1 2 Total price 17,000 1258 5,000 6,000

93

Air conditioner Total

14,500

14,500 43,758

No.

Body massage room Descript Price/unit No. of unit Total price

Door

5,000

5,000

Window

3,000

6,000

Shelves

6,290

12,580

Couch massage

7,500

22,500

Total

46,080

94

Technical Summary In term of technical facility, we analyze about the production and operation of spa that contain of the detail of each service room also we have the service process that are the detail of each massage in spa; body massage, face and body scrub including the products for using in service. In addition , we have the facility layout and the location of spa that we have the image in each part ; inside, outside and both of first floor and second floor to show the overall of spa including we have the detail of equipment that use in each room. In the logistic we show about the way to shipping goods around the country and in management we have the security for building and all the information in firm such the detail of investment cost to prevent data leakage to a competitor.

95

CHAPTER 5
Precious & Royal Spa

Operation

96

Raw material
Operating the spa business, spa service must have equipment and raw material in the massage. The raw material that Precious & Royal Spa used the most in provide the service, Precious & Royal Spa order the raw material from Catalogspa because it have low cost but high quality and reasonable price. Catalogspa have equipment and raw material that complete. There are several types of raw material in the massage or used in the spa business. For another reason that Precious & Royal Spa order the raw material from Catalogspa, because Catalogspa is sell cheaper elsewhere and products have standard. ( http://www.catalogspa.com/ ) Most of the suppler from Limited partnership deejay organic 113 / 36-37 road Ladya Rd. Klongsan. Bangkok Thailand http://www.djaiorganic.co.th/

Chamchan Health & Beauty Institute : Address : 544 Petchburi Rd., Rajthavee, Bangkok 10400 Thailand Tel. : +66 (0) 2208 9977 Ext. 501, 502 http://www.chamchan.co.th/

Hermine spa 220/275 Moo 5 North Pan Cowichan Valley Road, Bang Muang, Samutprakarn 10270 Thailand. Tel: 02-2581176 Fax: 02-3951699 Mobile: 081-3045006. http://www.herminespa.com / www.herminetea.in.th

LiveonOrganic.com. (See Shop). Address: 87/12 Moo 1, Klong Thai Kum Kum District, Bangkok 10240. Tel. : 081-3768289. Email: liveonorganic@hotmail.com. http://liveonorganic.com./ Chanta thai spa - 97/7 Moo 5, Tambon Huai Kapi district, Chonburi, Chonburi 20000 Tel. 0817619606,085-2863606. - http://www.chantrathaispa.com/contact_us?crmid=fa44189cd11a832862fee4d70d682dc7
97

The customer that use spa in Chiang Rai which the Thai traveler have less satisfaction than foreign tourists. The foreign tourists have high satisfaction to spa service. This includes no less than 8 percentages as the foreign customer have more purchasing power than Thai customer but measures to volume of purchasing the Thai customer have high volume of purchasing. Therefore, we need to focus on the company's cheaper packages. Precious & Royal Spa opening Monday Friday about 9.00AM 18.00PM, and Saturday-Sunday about 9.00AM 20.00PM. The service have 2 type including massage and spa. Our company can service to customer about 20-30 person per day and 3 person per type.

98

Year 1

High season

99

High season

100

Year 2

High season

101

High season

102

Year 3

High season
103

High season

104

Year 4

High season

105

High season

106

Year 5

High season

107

High season

108

Other expense

Operating cost Year 1

Year 2

109

Year 3

Year 4

110

Year 5

Operating Summary For the operating cost is the cost of Precious & Royal Spa that we invest in the spa for do the business such as raw material, water expense, and electricity expense. We have to purchase all of this in first year because our Precious & Royal spa has only commercial buildings so, we pay highest cost. In addition, in term of revenue we get revenue since one year but not good because Precious & Royal spas just open which it is not famous and then we will get revenue increasing in every year due to the customer have satisfy in product and service, and the customer have mouth to mouth word to other people. Our company we get highest revenue in five years according to it has more famous and have customer use service much more.

111

CHAPTER 6
Precious & Royal Spa

Organization and Administration

112

Office investment and depreciation

113

Administration expense

114

Employee salary

Manager Marketing manager Marketing team Accounting department massage team Receptionist Housekeeper Total salary expense/mouth

1 person 1 person 2 person (10,000/person) 1 person 8 person (8,500/person) 4 person (8,500/person) 1 person

15,000.15,000.20,000.8,500.68,000.34,000.4,500.165,000.-

** Not include sale commission**

The quality of the Therapist Every therapist has been practicing and training on various forms of massage to service with efficient. Another, they will be know the purpose of client to use service of spa. All of this, Precious & Royal Spa wants their each therapist has knowledge, expertise and can advice for the customer with adding value and build confidence to them.

Overall Qualifications of Employees - Male or Female, age 23 years up - Education depends on the position. - Excellent customers service & service minded. Provide professional service with morality of therapist code of conduct. Team work oriented with high solution solving skill. Good command in English and computer literate. Presentable, willing to learn, dedicated, flexible and could work under pressure. Good leadership, interpersonal & coordination and problem-solving skills with teamwork oriented. - Organize and cleanliness of the spas area, facilities and equipment.
115

CHAPTER 7
Precious & Royal Spa

Financial analysis

116

Income Statement Year 1

117

Year 2

118

Year 3

119

Year 4

120

Year 5

121

Cash Flow Year 1

122

Year 2

123

Year 3

124

Year 4

125

Year 5

126

Balance sheet Year 1

127

Year 2

128

Year 3

129

Year 4

130

Year 5

131

Ratio Analysis

Current ratio Quick ratio

2012 1.29x 1.29x 2012

2013 3.26x 3.26x 2013 0x

2014 2015 2016 10.57x 0x 0x 10.57x 0x 0x 2014 0x 0x 2015 0x 2016

Inventory Turnover

0x

FA TO TA TO

2012 0.46x 0.10x 2012 61% 2012

2013 0.47x 0.06x 2013 27% 2013 81% 2013 5%

2014 0.47x 0.04x 2014 9% 2014 80% 2014 3%

2015 0.58x 0.04x 2015 0% 2015 82% 2015 3%

2016 0.61x 0.03x 2016 0% 2016 81% 2016 2%

Debt ratio

Profit margin

75% 2012 7%

ROA

132

CHAPTER 8
Precious & Royal Spa

Risk Management

133

Risk Management Risk management is a logical process or approach that seeks to eliminate or at least minimize the level of risk associated with a business operation. Essentially, the process identifies any type of situation that could result in damage to any resource within the possession of the company, including personnel, then take steps to correct factors that are highly likely to result in that damage. At the core of effective risk management strategies is the desire to find ways to manage the degree of uncertainty that exists within any business enterprise. The first step in the process has to do with evaluating the utilization of resources as they current stand. This step involves understanding the logical flow of the production process and how it relates to the successful manufacturing of goods and services for sale to consumers. Once the business model is understood, it is possible to identify specific risks that are present throughout operation of the organization; Risk management in our spa consists of internal risk and external risk. ( Reference: http://www.wisegeek.com/what-is-risk-management.htm)

External Risk External risk of our spa is the risks that occur in outside spa and we cant control it, so we would like to protect the problem that can occur in the future by find risks that can occur and provide the method to handle with those problem. The external risk of our spa as follow: Competition Risk It is an important factor that can be affecting for our spa due to Chiang Rai was the popular Province that have tourist from local country and other country come to travel in Chiang Rai all year. Therefore, many investor come to invest about spa business, it's cause more competitor in spa industry of Chiang Rai. So, it is the part of important external risk that should not be overlooked.

134

Our spa to find many strategies that can handle with other competitors such as SWOT analysis, Marketing analysis, Competitor analysis, 4P and STP analysis. This is the strategy that important to handle with the risk from competition. Location Risk In our spa has location that adjacent to the university and a passageway to the city and Mae Sai, which is a tourist attraction. Our spa is situated see clearly, not complex and it is a place where convenience in parking. Therefore, its convenient for customer and tourist that come to our spa. Moreover, our spa is new company consumer in local not well know, so we make billboard and brochure in the important place such as travelling agencies, university or school and the government official that related about tourism for promote our spa to consumer is know our spa. Economic Risk From the problem of flooding in 2011, According to an update on 21 October 2011 by the Tourism Authority of Thailand, while the flooding is having some impact on tourism, most key tourist destinations and attractions throughout Thailand have not been affected by the floods and almost all remain open, including Bangkok. Things have changed during the weekend, unfortunately for the capital. It was affect for every business because of investors not confident in situation of economic and slow down to investment in Thailand also it decreases consumption of customers in country. From risk that arising in the spa economic factor increases affects the cost of production and Thai tourists use the services , so we will keep the standard of service equal the price that people have to get the best service and we will set the package of service that the price will safe than general price in each service. ( Reference: http://www.argophilia.com/news/thailand-flooding-tourism/24040/)

135

 Political Risk In the current the political in Thailand is not stable and frequency in changing that Over recent years there have been instances of civil and political unrest resulting in largescale demonstrations and, in some cases, violence. For just over four years Thailand has endured an intensely adverse domestic political climate. For most of those four years there has been political turmoil between various factions; most notably between the political parties backed up by citizens who are poor and come from rural settings and other parties representing the more wealthy and burgeoning middle class from urban areas. Finally in May 2010, Thailand's domestic political climate became so out of control, the current prime minister ordered a severe crackdown on the opposition that resulted in a relative calm. (Reference:http://ecoggins.hubpages.com/hub/Thailand-Political-and-Economic-Outlook2011-and-Beyond)

136

Internal Risk Internal risk factors are risk factors that occur in companies or projects that can be controlled by humans. Risk the risk of this kind usually arise because of financial problems, organization, employee, workplace, product changes and other problems within the companies or projects that do not support the achievement of the expected. As a result, there was delay in project completion time, increased costs or disruption / interruption in cash flow. (Management file) Risk management process consists of several steps where the initial step is to identify potential risks occur that can jeopardize the achievement of company strategic objectives. Internal risk of our spa is the risk that occurs in our spa, it can be effect for our spa in the future. Internal risk of our spa as follow; Risk from Employee In spa business, employee must have expertise for service to customer. If employees don't have the expertise or often make mistake may have risk in the image of our spa and customer may be has bad attitude to our spa. Risk from Fraud The risk of a malpractice action and make the business caused damage in the form of monetary and non-monetary such as company's Reputation and image. May have monitor system the operations of employees from external organization such as monitoring system of the internal and monitoring system from the external examiner. Risk Management Summary In the risk management, our spa has the two main of risk that are internal and external force. Two major factors in the external force of our business is effected by the economic and the political; The first of all, effected by the economic in recent years due to we get the impact of flooding situation in Bangkok which it is unable to distribute the whole thing to the other parts of the country in Thailand especially in the tourism sector. It is the cause of reducing the amount of tourists that come to Thailand because problem in traffic on road so, we have to change in the price that adjust it follow the situation of economic. Second, in terms of political will have an impact of the uncertainty of the political situation in Thailand such as revolt in civil, it make the foreigners have less confidence in
137

Thailand , so we should be encouraged to advertise of spa in other channel more than brochure. Therefore, we have to thoughtful in planning of all strategies in marketing analysis to compete with other competitor. In internal risk, is the risk that happened in the firm and in any department of employees. The risk from employees can be the problem because if the employee cannot to serve the service that not follows the customer, they will not get reliable from customer its can effects to the spa lose the income. Moreover, the risk in Fraud is important because it the event cannot forecast and may have monitor system the operations of employees from external organization.

138

Year 1

Sales Decrease 5%

Year 2

Year 3

139

Year 4

Year 5

Year 1

Sales Increase 5%

140

Year2

Year 3

Year 4

141

Year 5

Year 1

Sales Decrease 10%

Year 2

142

Year 3

Year 4

Year 5

143

Sales Increase 10% Year 1

Year 2

Year3

144

Year 4

Year 5

Sales Decrease 15% Year 1

145

Year 2

Year 3

Year 4

146

Year 5

Sales Increase 15% Year 1

Year 2

147

Year 3

Year 4

Year 5

148

Dividend decrease 5%
Year1

Year2

Year3

149

Year4

Year5

150

Dividend Increase 5%
Year1

Year2

Year3

151

Year4

Year5

152

Dividend Decrease 10%

Year1

Year2

Year3

153

Year4

Year5

154

Dividend Increase 10%

Year1

Year2

Year3

155

Year4

Year5

156

Dividend Decrease 15%

Year1

Year2

Year3

157

Year4

Year5

158

Dividend Increase 15%

Year1

Year2

Year3

159

Year4

Year5

160

Expense Decrease 5%
Year1

Year2

Year3

Year4

161

Year4

Year5

Year5

162

Expense Increase 5%
Year1

Year2

Year3

Year4 163

Year4

Year5

164

Expense Decrease 10%

Year1

Year2

Year3

165

Year4

Year5

166

Expense Increase 10%

Year1

Year2

Year3

167

Year4

Year5

168

Expense Decrease 15%

Year1

Year2

Year3

169

Year4

Year5

170

Expense Increase 15%

Year1

Year2

Year3

171

Year4

Year5

Summary Risk When the company has sale increase the company has increase in net income, increase in profit, and increase in retain earning. But sale decrease is has effect to decrease in net income profit and retain earning. When the company has increase dividend. The profit has decrease, but sometime price stock will increase. However, if the company has decrease dividend the company will be increase profit, but price of stock will decrease. When the company has increase in expense. The company is the low net income, low net profit, and low retain earning, but when the company can decrease expense the company will have high net income, high net profit, and high retain earning.

172

CHAPTER 9
Precious & Royal Spa
Conclusion

173

Conclusion of Precious & Royal Spa

Precious & Royal Spa is the name of our company, Precious & Royal Spa, from study the market of spa business. Spa is becoming famous in nowadays because most people interest in spa. The reason why we choose spa business in Chiang Rai because in Chiang Rai have many Touristic place and that will be very attraction to the foreigner and Thai people and Chiang Rai is the place that you can rest and relax so, spa business is the business that very interesting and it can make profit in business. Vision: We want to be lead of spa in Chiang Rai by focuses on provide the best service for the customer will need to get special attention and special care when using the service and always provide to customer get the most benefit from our spa. Mission statement is provides the best service and serve the best quality. In situation of spa business, we have the detail of the current situation of spa business in Thailand that show about Thailand can ensuring the reputation of the spa on one rank in Asia for time and including the development of the industry in terms of equipment and products for the spa business that growth and expanded to export continuous to other countries. Spa business in Thailand has strength that in Thailand has the unique in culture and Thai herb that can made raw material. In weakness Thai people not have the good English skill for communication with the foreign tourist. Spa business in Thailand still lack of personnel (Therapist) and personnel with expertise in the management including equipment

174

and related services and hiring people to be employees is limited because the personnel must have specific expertise. In strategies , we analyze about the competitor that we use to compare with our spa to improve the service of our firm including we analyze the competitive of spa business in Chiang Rai, we use SWOT analysis to analyze the strength and weakness useful for improving the service, we analyze the market share in the industry. We can use all strategies to improve the differentiation of service to contrast from other competitors and get that can along with the functional level strategy that are marketing mix strategy (4P), human resource management, financial and employee (staff).

In general, we analyze about the external is called PEST analyze which concern about political, economic, social, technology. And also we compare our spa with another spa to improve more efficiency our service and quality the product and also we have analyze the competitor spa in chaing rai and we focus on the our strength, weakness to adapt for our firm. However only that its not enough so we have do survey about the customer behavior about the spa industry in chaing rai. But our company focuses on 3 mains groups working person, student and foreigners we have shoe the reference of general tourism that show the rate of these target groups. In marketings mix strategy (4p) There are four element price, place, promotion, product. For the product strategy we separate in two mainly service which the customer can
175

choose whether body massage or body and face scrubs to let the customer choose what they like to do. And for the price we set as normal and lower than the competitor because we want our customer get the best quality with the lower price. Package we put two services together and reduce the price that means the customer will pay cheaper than separate service. Our company location at Ban Do in Chiang Rai because our company to emphasize the services for traveler, student, teacher and person that want to relax. The our company set to near Namthong Hotel Resort, and pathway to between Mae Fah Luang University and Chiang Rai Rajabhat University. Then makes we have different of customer and easy to travel use to our service. Finally promotion strategies, we will send brochures to university, school and tourism Company. We will give brochures to customer that shopping at Central Plaza Chiang Rai, Big C super center, Mae Fah Luang University and Chiangrai Rajabhat University. In our brochures contain about detail of service in spa, promotion, telephone number or E-mail and map of our company. In term of technical facility, we analyze about the production and operation of spa that contain of the detail of each service room also we have the service process that are the detail of each massage in spa; body massage, body scrub and the Thai body and face compress ball including the products for using in service. In addition , we have the facility layout and the location of spa that we have the image in each part ; outside ,inside and both of first floor and second floor to show the overall of spa including we have the detail of equipment that use in each room. In our spa we use logistic manage the performance in organization and support customers need. The organization: it helps to transport, storage, collection, distribution and give goods or product efficient to support customers need. In Facility Management for our spa will provide the way to support the customers need to give them get most benefit from our service. We must concern on security for our customer and our equipment because we must to protect our customer and our equipment must have good quality available for use in everyday.

In term of operating cost is the cost of Precious & Royal Spa that we invest in the spa for do the business such as raw material, water expense, and electricity expense. We
176

have to purchase all of this in first year because our Precious & Royal spa has only commercial buildings so, we pay highest cost. In addition, in term of revenue we get revenue since one year but not good because Precious & Royal spas just open which it is not famous and then we will get revenue increasing in every year due to the customer have satisfy in product and service, and the customer have mouth to mouth word to other people. Our company we get highest revenue in five years according to it has more famous and have customer use service much more. For the structure of organization we have one general manager, Marketing manager, Accounting department to manage the structure of our management of the firm and Marketing team 2 person, massage team 8 person, Receptionist 4 person, Housekeeper1 person to perform the regular and operating the job.

In administration cost of Precious & Royal Spa, The Precious & Royal Spa have the electricity expense, water expense and insurance expense. The Precious & Royal Spa also have expense about training the employees to increase capabilities of employees to provide the service that constantly and high effective. The Precious & Royal Spa have the rate for each expense for calculating in the financing part.
177

The income statements of The Precious & Royal Spa demonstrate the profit return in the first year and also increase in every year. In part of the income statement will demonstrate to customers that use the services of Precious & Royal Spa. The Precious & Royal Spa will have more customers that increase every year. The Precious & Royal Spa emphasize with provide the good services from our employees. It a result the Precious & Royal Spa earn more profit from the first year and it also increase in the next year until year five. The Precious & Royal Spa will be growing steadily in the future. The balance sheets of The Precious & Royal Spa demonstrate to the asset in the operation, include the liability, and equity in Precious & Royal Spa which related between income statement and cash flow to demonstrate that Precious & Royal Spa have equal in assets and liability. The assets is equal the liabilities plus the equity, it represent to The Precious & Royal Spa have assets that enough to pay back to liabilities and equity in operating the spa business. The cash flow of The Precious & Royal Spa demonstrate about cash inflow and outflow of Precious & Royal Spa and demonstrate to cash that Precious & Royal Spa must to receive at the end and demonstrate to cash that Precious & Royal Spa receive in the beginning of the year in each year of financial statement of spa business.

For the risk management of The Precious & Royal Spa, Precious & Royal Spa has the risk from internal factor and external factor. The internal factor of Precious & Royal Spa may be many thing such as provide the service of our employees and sufficient personnel management. Anyway, The Precious & Royal Spa also has the training course for old employees and new employees to respond the spa service provide the customer that sufficient demand of the customer. Another way, Precious &
178

Royal Spa always have solve the problem that is steps and have the systematically in the spa business. The external factor of Precious & Royal Spa is affected from economic that in the many years of Precious & Royal Spa get the effect by the deflation and inflation situation in Chiang Rai. And Precious & Royal Spa also get the effected from the volatility of wages that be increased more than in the past, but Precious & Royal Spa still have the method to solve the problem by remain the performance of the employees and have the selection that high efficiency in provide the service to customer. The Precious & Royal Spa ready to grow and be profitable with the best service to customer.

179

Reference
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