將行動裝置運用在咖啡廳營運之商業計畫 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 將行動裝置運用在咖啡廳營運之商業計畫 n. al. er. io. “Mobile Application: Caffeinated” Business Plan. Ch. engchi. i n U. v. Student: Thidarat Siriyontakan Advisor: Professor Jack Wu. 中華民國一〇五年二月 February 2016.

(2) 將行動裝置運用在咖啡廳營運之商業計畫 “Mobile Application: Caffeinated” Business Plan. 研究生：盧春麗. Student: Thidarat Siriyontakan. 指導教授：吳文傑. 政治大國立政治大學. 學. ‧ 國. 立. Advisor: Jack Wu. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfilment of the Requirements for the degree of Master in Business Administration. 中華民國一〇五年二月 February 2016.

(3) TABLE OF CONTENTS Chapter 1: The Company ................................................................... 1 1.1 Executive Summary ......................................................................................................... 1 1.2 Company Description ....................................................................................................... 1 . Company Overview ................................................................................................ 2. . Vision Statement .................................................................................................... 2. . Mission Statement .................................................................................................. 3. 1.3 Product and Service Description ...................................................................................... 3 1.4 Company Ownership and Management Team ................................................................. 5 1.5 Location ............................................................................................................................ 6. 治. Chapter 2: Market Industry政 Background大 ........................................ 7. 立. 2.1 Thailand Demographics and Economy ............................................................................ 7. ‧ 國. 學. 2.2 Mobile Market Information .............................................................................................. 9 2.3 Coffee Market Information ............................................................................................ 11. ‧. Chapter 3: Opportunity Analysis .................................................... 15 3.1 SWOT Analysis.............................................................................................................. 15. sit. y. Nat. 3.2 Customer Segment ......................................................................................................... 16. Chapter 4: Business Strategy ........................................................... 17.   . al. v i n C h.................................................................................. Place/ Distribution Strategy 17 engchi U n. . er. io. 4.1 Marketing Plan ............................................................................................................... 17 Product Strategy ................................................................................................... 17. Price Strategy........................................................................................................ 25 Promotion Strategy ............................................................................................... 28. 4.2 Operation Plan ................................................................................................................ 32 4.3 Growth Plan.................................................................................................................... 34. Chapter 5: Financial Plan................................................................. 36 5.1 Cost of Production .......................................................................................................... 36 5.2 Income Projection .......................................................................................................... 37 5.3 Cash Flow and Break Even Analysis ............................................................................. 38. References .......................................................................................... 45 i.

(4) “Caffeinated” Chapter 1: The Company 1.1 Executive Summary This is the business plan proposed by Caffeinated Co., Ltd., founded in Thailand by family Siriyontakan. The aim of this business plan is to elaborate on the idea of how to build up a business model around the passion of the co-founder, Miss Thidarat Siriyontakan, which are mobile application and coffee drinking. Although the coffee industry in Thailand is not as big as in the United States or Japan, but the trend is going stronger each day. Consumers do not only consider coffee as energy sources to. 政治大 with coffee drinking. This group of people is willing to pay higher to have better or unique 立 experience. Hence, we can see more and more coffee houses starting up around the city keep them awake, but they start to enjoy more of its rich flavor and the experience that comes. ‧ 國. 學. competing against each other or trying to survive against big chains like Starbuck’s coffee shop.. ‧. The revenue margin of running a coffee shop is not as high as before as the competition is the. Nat. sit. y. market is getting higher, so our company is looking for an alternative business model to make. io. er. profitable income in this industry.. al. v i n purchase products, there are many C opportunities still available h e n g c h i U to tap on. That is the reason n. As more and more consumers are moving towards the online platform to receive services or. why our company is looking forward to create a service platform that brings convenience to. consumers through their mobile phones and connect the local businesses with those consumers. We will develop a mobile application to help promoting local coffee houses to those coffee drinkers all around Bangkok and eventually around the country.. 1.

(5) 1.2 Company Description 1.2.1 Company Overview “Caffeinated” is first mobile application owned and developed by Caffeinated Media Co., Ltd. It started one day when the Co-founder and CEO, Thidarat, was looking for a comfortable and relaxing coffee house nearby her place to work on her school assignment. With this day and age of modern technology, she expected to effortlessly find the right place with her mobile device. To her surprise, google search came out with some outdated information or irrelevant search results. She tried again this time with google maps, but the result she found did not satisfy her. Most suggestions were either Starbucks Coffee shops or other chain stores that did not exactly fulfill the requirements she. 政治大 database or reviews of restaurants, 立 but they did not have enough databases of coffee houses.. was looking for. Furthermore, she tried downloading a few mobile applications that have. ‧ 國. 學. This was the moment when the idea of business came to her mind. She loved coffee, and she always had eyes for smaller coffee houses where they served quality coffee and offered a. ‧. pleasant space to fully enjoy a cup of coffee. She wished that those coffee houses could have better recognition among people who shared the same taste with her. And there should be a. Nat. sit. y. community or online platform where people can search for this type of coffee houses easily,. er. steadily.. io. as the roasted coffee consumption in Asia and especially in Thailand has been growing. al. n. v i n C hnamed “Caffeinated As a result, she then planned a start-up e n g c h i U Media Co., Ltd.” that would go on to develop a mobile application “Caffeinated” as a platform to connect both local coffee houses and consumers in Thailand.. Vision Statement Our goal is to create the ultimate online community to connect all coffee lovers with amicable local coffee houses. We commit to providing the best online platform possible for all the coffee lovers who seek the most up-to-date information and are in search of their next favorite coffee house. We commit to creating the most accessible platform for local business owners to promote their. 2.

(6) quality coffee houses and set the foot back into the competition against international or megamillionaire national franchise stores.. Mission Statement Our company will put our best efforts and investment to provide consumers with widest range of database of coffee houses in Thailand. While doing so, we still maintain the core values of passion in qualitied coffee, integrity in the online reviews, responsibility and accountability in any information shared under our online platform. Our company is committed to deliver the mobile application to all operating systems so that our users of any mobile carrier can enjoy the services of our application.. 1.3 Product and Service Description 政治. 立. 大. Since the founder of our company has great love for a good cup of coffee and has a vision to. ‧ 國. 學. bring like-minded people to experience the finest local coffee houses, our company aims to provide a mobile application that can achieve this goal. Our company takes an interest in the. ‧. mobile application because we believe that, nowadays, more and more people gain access to. Nat. sit. their handset, without any complication or delay.. y. the internet through their smartphones. People want to get the information right away from. er. io. Our company’s goal is to provide a user-friendly platform for any user who downloads our. al. n. v i n C h engaging in ourUapplication. We would also like to receive the best user’s experience while engchi application. User should be able to navigate through our provided contents effortlessly and. encourage this platform to be driven by users, as we expect all reviews by users to be reliable. and resourceful for other users in this community. This is not just a platform for business to promote their stores or users to check-in to the coffee shop and boast them to social network. Our platform aims to be a space where we connect coffee lovers, where people create a genuine review of their experience, where they find their favorite laid-back spot and want to share to the world of this new-found place, and where they can spread their passion in coffee to people in the community. We also understand that smaller businesses cannot compete, in terms of marketing campaign and promotion, with a multinational business like Starbucks Coffee or Lavazza Coffee. Our company would like to be a part of a solution to strengthen local coffee businesses in our community as well. 3.

(7) Our first mobile application to be rolled out is named “Caffeinated”. It reflects the lifestyle of people who enjoy the treatment of coffee in their daily life. Initially, we will deliver “Caffeinated” application for mobile devices on Android and iOS operating systems first as they consist of the majority of mobile market users. Any users with Android or iOS devices can download our application to enjoy our services. We provide different services and user-interfaces for coffee drinkers and for coffee house business owners as following: Services for coffee drinkers . Our company will develop and maintain a rich database of finest coffee houses across Bangkok. Customers can easily search for nearby coffee shops with required criteria. 政治大. such as location, good reviews, Wi-Fi internet access or electricity socket. . 立. Registered users can write a review after they visit the coffee house to share their. ‧ 國. 學. experience and impression. They can also share their review on any social media they connect to. Users can also view the others’ review on any coffee house information page so that they can get a better idea and make their decision accordingly.. ‧. Users can enjoy special promotions offered by affiliated coffee houses. . Coffee drinkers can access any of these services conveniently on their mobile devices,. sit. y. Nat. . io. al. er. as long as they have access to internet connection.. n. Services for coffee house owners. i n U. C. v.  We provide an easy-to-use andhmaintain e n g conline h i platform for small to medium-sized business owners to gain exposure to targeted customers..  Coffee house owners can review the comments or suggestions left by visitors, so that they can understand the customers better and know if there is any improvement to be done for their business.  For any special promotion at the coffee houses, they can easily use our platform as a channel to promote their campaign in order to gain new customers..  Our platform also provides the advertisement zone highlighting the recommended coffee houses to attract more customers. 4.

(8) 1.4 Company Ownership and Management Team Caffeinated Media Co., Ltd. will be a sole proprietorship owned by Family Siriyontakan. It will be established within year 2015, by appointing Thidarat Siriyontakan as CEO to oversee the overall management and operations of the company. Co-Founder - Thidarat Siriyontakan CEO and Human Resources Manager of Caffeinated Media Co., Ltd., she is currently an IMBA Candidate at National Chengchi University in Taiwan. She has a Bachelor of Laws from Chulalongkorn University in Thailand. She has working experiences in High-tech industry in both Thailand and Taiwan. At her current employment in Taiwan, started from 2012, she holds a position of project manager where she has to manage and oversee. 政治大 platforms. Even though she does 立not have first-hand knowledge on the programming or the development of her company’s websites and mobile applications for Android and iOS. ‧ 國. 學. application development herself, she believes that her experiences as user’s interfaces design and consumers’ behavior understanding will give her a head-start in this start-up business.. ‧. Moreover, from her studying and working experiences, she has made a number of friends who work in coffee industry businesses and mobile application development. She can seek. y. Nat. sit. consultant from those connections around her.. n. al. er. io. Co-Founder - Vilailuk Siriyontakan. Ch. i n U. v. Co-founder and CFO of Caffeinated Media Co., Ltd., Vilailuk now owns a business of her. engchi. own, managing apartment buildings in Patumthani Province, a major city that is 1-hour drive away from central Bangkok. She holds a Bachelor degree of Accountings from the University of Thai Chamber of Commerce, Thailand. She has managed all financial aspects of the her own business for the past 10 years, which makes her exceptionally qualified for the role of CFO of Caffeinated Media Co., Ltd, to manage finance and accounting of the company. Advisor – Sirisuda Bunpitaksakul Miss Sirisuda Bunpitaksakul was a former sales manager of CoffeeWorks, an importer, roaster and supplier of boutique coffees and professional Italian coffee machines. Her previous working experience includes a business development manager of Allied Solutions 5.

(9) Co., Ltd. where she developed sales and marketing strategies for restaurant management software solutions. She is now a business development manager at Sodexo Thailand. She had met Thidarat and was her mentor in career development since the time they worked together in university. She is always eager to help and share her wisdom to her mentees, without expecting anything in return. With her past experiences in business development and her connection in the coffee industry, she can bring many valuable input and advices for the foundation of Caffeinated Media Co., Ltd. She may not have direct involvement the business planning and operations, but she can give advice and ask critical questions to the company. Employees In the initial stage, the company will need to hire one full-time programmer to work on the. 政治大 Thidarat, the CEO, herself. The 立idea is to look for a fresh graduate who loves the vibrant. coding and developing of the mobile application. The hiring process will be managed by. ‧ 國. start-up business.. 學. working environment and who shares the same ambition and challenges that comes with. ‧. Within the first critical one to two years, all family members will need to learn and have a hand-on experience in managing workforces and product marketing by themselves first.. y. Nat. sit. After the business starts to kick-of, the company will need to look for two more full-time. al. n. management.. er. io. positions to oversee the operations of (1) digital marketing and (2) advertising account. 1.5 Location. Ch. engchi. i n U. v. The office of Caffeinated Media Co., Ltd. is located at 134/10 M.2 Prachathipat Thuyaburi Patumthani, Thailand 12130. The office location takes approximately 1-hour drive to reach the city center of Bangkok. Hence, any business operation can be managed from this office with no difficulties. This office is owned and managed by Siriyontakan Family.. 6.

(10) Chapter 2: Market Industry Background In this chapter, we will introduce the background information of the overall Thailand market. It includes the general market size of Thailand, the overall trends in mobile industry and coffee industry. This information is the key factor why our company decides to develop a mobile application for coffee consumer industry, as we believe we are in the right moment to enter this market.. 2.1 Thailand Demographics and Economy The current population of Thailand is estimated to be about 67.2 million, which ranks 20th in. 政治大. the world’s population ranking. Thailand is 88th in terms of population density, with 131 people per square kilometer. The capital and largest city is Bangkok, located in Central. 立. Thailand, is Thailand’s political, commercial, industrial and cultural hub. An estimated. ‧ 國. 學. number of more than 8 million people live in Bangkok, close to 13% of the country’s population. Urbanization is mostly concentrated around Bangkok and its surrounding areas.. ‧. Notwithstanding political uncertainty and volatility since 1970, Thailand has made a. y. Nat. remarkable progress in social and economic issues, moving from a low income country to an. io. sit. upper-income country in less than a generation. As such, Thailand has been one of the widely. n. al. er. cited development success stories, with sustained strong growth and impressive poverty. i n U. v. reduction. It shows that Thailand has a large potential to grow in terms of economy.. Ch. engchi. Exhibit 1: Population of Thailand (2014 and historical) Source: Worldometers. Year. Population. Median Age. Density (P/Km²). Urban Pop %. Urban Population. 2014 2010 2005 2000 1995 1990 1985 1980 1975. 67,222,972 66,402,316 65,559,487 62,343,379 58,983,954 56,582,726 52,031,925 47,369,137 42,332,566. 37.4 35.4 32 30.1 26.6 24.3 21.8 19.7 18.5. 131 129 128 122 115 110 101 92 83. 35% 34% 32% 31% 30% 29% 28% 27% 24%. 23,691,532 22,397,501 21,137,034 19,415,599 17,857,982 16,648,901 14,618,369 12,690,665 10,057,371. 7. Country's Share of World Population 0.93% 0.96% 1.01% 1.02% 1.03% 1.06% 1.07% 1.06% 1.04%. Global Rank 20 19 19 19 17 18 18 19 18.

(11) Exhibit 2: GDP % Growth, annual Source: World Bank. 政治大. 立. ‧. ‧ 國. 學. Note: e = estimate; f = forecast. y. Nat. sit. n. al. er. io. Exhibit 3: GDP per capita (current US$) Source: World Bank. Country Thailand. 2005 2,690. 2006 3,143. Ch. 2007 3,738. engchi. 2008 4,118. 8. i n U. 2009 3,937. v. 2010 4,803. 2011 5,192. 2012 5,480. 2013 5,779.

(12) 2.2 Mobile Market Information Thailand’s telecom industry has seen steady growth during the past few years, which has helped drive internet use throughout the country, particularly in urban areas. The number of internet subscribers has increased in recent years; internet penetration reached 28% of the total population in year 2014. However, the consumer behavior in Thailand is now moving towards the use of mobile devices to gain access to the web. In its 2012 ICT survey, the National Statistics Office (NSO) numbered mobile device users at 44.1 million, about 70.2% of the population. However, the National Broadcasting and Telecommunications Commission (NBTC) estimated the total number of mobile subscribers to exceed 100 million in 2014, a higher number than that of the total population, which brings the number of mobile. 政治大. connections and penetration in Thailand to approximately 138% of the population.. 立. ‧. ‧ 國. 學. Exhibit 4: Thailand’s internet subscribers Sources: National Statistics Office, as shown on Internet Live Stats. n. al. er. io. 120,000,000. sit. y. Nat. Exhibit 5: Thailand’s Mobile Subscriber Growth: 2009 – 2014 Source: Operators | NBTC. Ch. 100,000,000. engchi. i n U. v. 80,000,000 Post-Paid 60,000,000. Pre-Paid Total. 40,000,000 20,000,000 0 2009. 2010. 2011. 2012. 9. 2013. 2014.

(13) Post-Paid Pre-Paid Total. 2009 7,050,943 58,901,370 65,952,313. 2010 7,256,473 64,469,827 71,726,300. 2011 7,938,934 69,510,532 77,449,466. 2012 9,782,683 75,229,728 85,012,411. 2013 10,982,116 80,109,411 91,091,527. 2014 12,603,332 87,622,216 100,225,548. Note: Estimated information for 2014. As more and more daily activities are now associated with mobile devices, many start to switch from their feature phones to smartphones in order to gain access to mobile internet contents. By the help of Chinese-manufactured entry level, low cost smartphones, we can project the high demand of smartphones in the market in coming years. The Average user in Thailand consumes approximately 7.2 hours of media per day. Thai consumers spend 2 hours and 47 minutes or 38% of his/her time exposed to media via their smartphones, seconded by their tablets, which consumes up to 1 hour and 35 minutes per day.. 政治大 This growing trend shows that the market for mobile content will have a window to expand 立 to reach Thai consumers. and any player can enter the market. ‧ 國. 學 ‧. Exhibit 6: Mobile Market in Thailand Source: TDRI, SIPA; November 2013. n. er. io. sit. y. Nat. al. Ch. engchi. 10. i n U. v.

(14) Exhibit 7: Thailand’s Media Consumption in Minutes/Device Sources: Millward Brown Adreaction 2014. Daily use, per person. 78. Smartphone Tablet Laptop TV. 167. minutes. minutes. 96 minutes. 95 minutes. 政治大 The development of a coffee culture 立 can be visualized as occurring in different waves. The 2.3 Coffee Market information. first wave is when coffee is introduced to the market in the form of mass-produced brews.. ‧ 國. 學. The second wave focuses on tastes and roasting styles and brings “espresso beverages” to the menu via coffee chains such as Starbucks and Peet’s.. ‧. The third wave is when coffee becomes more of a craft, emphasizing the quality and origin of. Nat. sit. y. the beans. This particular wave introduces coffee drinkers to baristas and to bean growers as. io. er. well. Observing cafe culture in different countries along these waves helps position our businesses better toward increasingly competitive cafe markets.. al. n. v i n C h coffee were widely In the past, traditional coffee and instant e n g c h i U consumed and were an integral. part of Thai culture. The turning point toward a more modern coffee drinking style occurred 20 years ago when the Black Canyon chain emerged, followed by Starbucks in 1998. These coffee shop chains changed consumer behavior, making coffee the beverage of choice in the morning hours. This particular trend triggered higher coffee consumption in Thailand, resulting in a healthy 7% compound annual growth rate (CAGR) between 2008 and 2012 in the consumption of coffee beans, fresh ground coffee, instant coffee, and ready-to-drink coffee. This behavioral change toward a more westernized lifestyle can be witnessed from the expansion of coffee stalls and coffee stores chains nationwide. In 2007 alone, four new foreign players, namely McCafe, Segafredo, Gloria Jean’s and Caffe Ritazza entered the 11.

(15) market to reap the benefits of the growth in coffee consumption. After that, different types of coffee shops were opened, including boutique coffee shops along Sukhumvit road, local coffee shops chains such as True coffee and Cafe Amazon, and street-side coffee kiosks. The growth within the chain segment has been stronger than growth for independent shops and will continue to grow well. Per capita coffee consumption is still low in Thailand compared to developed markets such as Japan and the United States. However, like a doubleedged sword, as coffee shop chains grow and build a strong coffee culture in Thailand, they must bear in mind that consumers will be increasingly demanding. To be precise, consumers will become more sophisticated. With standardization, coffee shops chains will have to compromise on the experiences that consumer might receive. Not only that, with cost concerns over investment, coffee shop chains will not likely invest in locations without. 政治大. enough traffic to justify high investment, leaving room for small lifestyle coffee shops to. 立. grow.. ‧ 國. 學. To be successful, independent coffee shops must differentiate themselves moving toward the next wave of coffee culture. In Australia where coffee drinking is sophisticated, small local. ‧. lifestyle cafes are often more successful than chain coffee shops and many people will drive past a Starbucks to go to a cafe offering coffee they prefer. Thailand is now moving in the. y. Nat. sit. same direction, but perhaps at a slower pace. Specialty cafes have opened up along high-. al. er. io. traffic areas, but are still restricted primarily to the Thong Lor and Sukhumvit areas. These. n. specialty coffee shops must offer a new experience by providing nice decor, comfortable. Ch. i n U. v. seats, Wi-Fi, unique food offerings, and a wider variety of beverages. One advantage local. engchi. shops enjoy is that it will always be easier for them to adapt to local lifestyles. Thailand is buying a ticket to a third-wave coffee culture where coffee is all about the flavor, not merely a caffeine fix. Increased coffee consumption will drive growth in the coffee shop market. Those who dream of opening a small coffee shop should quickly grab this growing opportunity. There is still room to grow in this highly competitive market, and those who adopt the right strategy will thrive.. 12.

(16) Exhibit 8: Growth in coffee consumption by region (1990 – 2012) Source: International Coffee Organization. 立. 政治大. ‧. ‧ 國. 學. Exhibit 9: Coffee consumption in 2012 in East and Southeast Asia Source: International Coffee Organization. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Consumption data for Thailand are incomplete, with the most recent figure available dating from 2001. However, external sources suggest that domestic consumption has been growing at between 7% and 10% over the last decade. Applying a relatively conservative rate of 7% per annum since 2001 would suggest that Thailand consumed just over 1 million bags of 13.

(17) coffee in 2012. Furthermore, with a population of nearly 67 million people, this would equate to around 950 grams per capita. The domestic market is mostly composed of instant coffee or 3-in-1 mixes, which according to the International Trade Centre account for around 95% of coffee consumption. Moreover, given Thailand’s production is around 90% Robusta, and coffee exports to Thailand are an estimated 95% Robusta, the evidence suggests that the Thai market could absorb over 1 million bags of Robusta yearly, and is showing strong signs of growth.. Exhibit 10: Consumption and per capita consumption in Thailand Source: International Coffee Organization. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 14. i n U. v.

(18) Chapter 3: Opportunity Analysis 3.1 SWOT Analysis Strengths: Bi-lingual review application: as founders are native Thai speakers and fluent in English, this application will be developed in both languages to attract larger pool of customers No or low cost: users can download and try for free, easy to attract them to become subscriber if they already have a smartphone Easy to navigate: our application is intuitive and user-friendly, so it will take them no time to get used to it Easy to join: users can try basic function without needing to sign-up, and it only takes them a few steps to complete our sign-up process if they wish to access full services. Connection to people who work in the coffee industry. ‧ 國. 學. Weaknesses:. 立. 政治大. ‧. Investment in R&D of the product: as this is a start-up and we don’t plan to invest too much in the first stage comparing to other companies Branding: this is a new start-up so it will take more time to let people know more about us and subscribe to our services Revenue structure relies on advertisement and deals. n. al. er. io. sit. y. Nat. Opportunities:. Ch. engchi. i n U. v. Growth rate of mobile application and coffee trends New technology: as more and more technology are being developed, we can incorporate those modules in our future development New products and services that that can be added on to coffee business The emergence of the ASEAN Economic Community and prospects of free movement of products and people by 2015: more businesses and consumers will enter the market. Threats: A few other local competitors Information updates Limited financial capital People who are not mobile-savvy Limited category, only coffee houses 15.

(19) 3.2 Customer Segments Coffee Drinkers Demographic Segmentation Age: 90 percent of coffee drinkers are in the age range of 26 – 35 years old, which represent the segment of office workers or workforces. Although coffee consumption is Thailand still considered quite low in comparison to Japan or United States, the trend shows that it is on the rise due to more and more premium coffee shops that open all around the city. Education: most coffee drinkers are holding bachelor degree or higher Occupation: Office workers. 立. Geographic Segmentation. 政治大. ‧ 國. 學. Bangkok Metropolitan Value and Lifestyle. ‧. Those who enjoy the coffee for its taste and quality, and let coffee become part of. Nat. sit. y. their lifestyle are perhaps influenced by western culture. Especially those who are in. io. er. working age, they are more selective of their coffee intake as they consider this part of the new culture and not just an energy-boosting drink any longer.. n. al. Coffee Houses. Ch. engchi. i n U. v. Geographic Segmentation Bangkok Metropolitan Business Value Local and Independent coffee houses that aims to serve high-quality coffee as an artisanal foodstuff rather than a commodity. It gives off an ambience that welcomes everybody who enjoys a good cup of coffee and appreciates its flavor and its origin.. 16.

(20) Chapter 4: Business Strategy This chapter will detail how the initial Marketing Plan of Caffeinated Application and the Operation Plan of the company will be, including our Growth Strategy for future business expansion.. 4.1 Marketing Plan Product Strategy As Caffeinated Application is designed to be a platform to connect all coffee lovers around the town, our company aims to create an intuitive and user-friendly interface for anyone to. 政治大 Since our primary customers are Thais, the default language of our application will be in Thai 立 language. At the same time of first version release, we will also enable English language create and share contents with ease.. ‧ 國. 學. interface if customers would like to use English as default language. All the entries submit by our users can be Thai, English or any language of choice as allowed by their mobile devices.. ‧. However, we will encourage all coffee houses to input their information in Thai as default. y. Nat. settings to better connect with our primary customer group. Moreover, we also recommend. sit. the business owners to translate all information in English to further reach to our secondary. al. n. as their main user interface.. er. io. customer group, who are foreigners in Thailand or those who prefer using English language. Ch. engchi. i n U. v. In order to create such platform, it will heavily rely on the contents created by users – coffee houses and coffee drinkers. It needs to attract users to download and use our application without taking too much time to decide, so the application itself will be free to download from any available app store. Our strategy breaks down into 2 parts; Standard Services and Premium Services. Standard Services will be offered to any first time user, without going through the registration process. This non-complication practice will encourage more and more users to start joining our platform while this increasing traffic will also motivate more coffee houses to participate in our service program as well.. 17.

(21) As for the coffee houses, they will need to register and be validated as business owner by our staff first before they can start using our services. Since they will be the direct channel to update and maintain the database appearing in our application. This way, they can take total control of how they want to promote their stores in timely manner. For Premium Services, we aim to attract our active customers with different features and special deals so that they can contribute in creating quality contents within this community. Moreover, the local coffee houses can take advantage of this Premium Services to boost their marketing and communication to their target audiences. Standard Services:  Search and View Database. 政治大 below search functions立 to narrow down the result that is closest to their requirements..  Users can navigate through our collection of local coffee houses in Bangkok or use. ‧. ‧ 國. houses.. 學. Our design is based on the consumer’s key factors impacting the choice of coffee. Search by location/ Area – find coffee houses based on area selected. . Search by nearest location – when user allows our application to access mobile. y. Nat. . sit. device’s GPS information, it will search all coffee houses nearby and sort the. er. io. results by nearest proximity first. al. n. v i n C hallow them to find U origin of the bean, this will e n g c h i places that serve their special blend. . Search by coffee bean – many consumers has strong preferences for specific. . Search by coffee brewing method – the coffee houses all have different way to. brew their coffee, some may use espresso machine and some may serve dripped coffee, for example. Each method will affect the coffee bean and its flavor in a different way. Users can search from this criteria to find their preferred brewing houses or discover a new way to drink their coffee . Search by facilities offered in the coffee houses – the next factor that will determine the user’s experience at local coffee houses is facilities provided at the location. As many will spend their leisure time to enjoy their coffee, they will consider facilities such as Wi-Fi internet access, power outlet, indoor / outdoor seating area and parking spaces.. 18.

(22) . Search by price range – consumers can search for places that fit right within their budget. . Search by size of coffee houses – customers may look for a cozy little place or they may search for a larger coffee house to enjoy coffee with a group of friends.. . Search by special policy (kid-friendly or pet-friendly) – this is just an additional search criteria that could filter for a special places that may offer high chairs or a play-zone for kids, and places that allow pets..  Users can click any of the local coffee house result to view the content provided by that coffee shop. 政治大. Exhibit 11: Key factors impacting the choice of coffee houses Source: SCAA Quarterly Sector Report | Specialty Coffee Association of America. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.  Add/Edit Database (Basic information)  For business owners who register as Basic Account, they will only have access to create their coffee shop’s profile with just the required essential information. . Name, Address of the coffee shop and its nearest transportation (MRT, bus stop). . One image to use as the cover photo of their business profile. . Available coffee beans and their brewing methods. . Facilities provided by the coffee shop. . Minimum and maximum price of their drink menus. . Maximum capacity that they can serve 19.

(23) . Opening hours. . Contact information. . Facebook Page/ Website (if any).  View and Share Reviews  Any users can view or share informative reviews posted by registered users at any given time.  View Promotion  Promotions offered by any coffee houses can be viewed by any user, however, this promotion is only offered within our application. Only registered users will have the. 治政 wish to enjoy this benefit, they can easily do 大 so by signing up on our online 立 registration form within the application itself. function to generate promotional code to use for that particular offer. If regular users. ‧ 國. 學. Premium Services:. ‧. Our Premium services will be available only to our registered users or the coffee house owners who registered as Premium Account in our platform. We offered different services to. Nat. sit. y. attract non-registered users to subscribe to our users’ database so that we can conduct future. al. n. for the Premium services offering to the coffee house owners.. Ch. engchi.  Add/Edit Database (Complete information). er. io. marketing campaigns to the right target group. On the other hand, we can charge service fees. i n U. v.  For coffee houses owners that registered as Premium Account, they will have an authorization to add further information in order to attract more customers to their places. . Add unlimited images of their coffee houses – users will find it to be more attractive if the place offers different views around the coffee house so that they can see the overall ambience and what kind of vibe it gives out.. . Add personal messages or greetings – a customized greeting message from the coffee houses can display the warmth and welcoming feelings to visitors of the page.. 20.

(24) . Add description of direction to the coffee house – Basic Account can only insert the address and we will show the direction to get there by Google Maps. However, the Premium Account can choose to add clearer explanation of how to visit the coffee house, in order to give customers a distinct impression..  Write Reviews  Registered-users will have an authority to write the review after their visit. They can post either positive or negative reviews based on their evaluation of the experiences they receive there, as well as adding the photos taken on their mobile devices. After the review, they can also share it to their facebook wall to show it to their friends if they want to. Each review will be saved under their user profile management section,. 治政 other users and coffee house owners, and they can大 comment on the user’s review as 立 well. This way, we can encourage communication among members within the. they can go back to view or edit their post any time. User’s review can be viewed by. ‧ 國. 學. community.. ‧.  Official Reviews from Caffeinated’s Staff.  Reviews from our official account will be treated as highlighted news/reviews of the. y. Nat. sit. week. We will send our staff to visit your coffee house to write a full review article of. al. er. io. your place. Our trained staff will do coffee tasting and will also try other products. n. available at your store in order to give a fair review. Our staff will take care of all. Ch. i n U. v. photo shootings and write review that will cover all aspect to best showcase the. engchi. atmosphere and the quality of the coffee houses. We, however, will not be biased in our reviews and give the overrated review scores because you are our Premium Account. As we strive to keep our integrity and values high in the quality of our information sharing platform  Add Promotion  Premium accounts can create and promote their coffee house’s special offers within our application. Through this channel, they can save their money and efforts to reach their target customers. In our platform, all special offers will be highlighted in a separate section. So we are confident that any coffee house that participates in this program will have a higher change to attract potential customers to visit their places.. 21.

(25)  Use Promotion  Registered users can view and use any promotion offered by the coffee houses. To use, they just have to log-in to our application and go to the promotion that they would like to use. Once they find the desired promotion, they just have to press the button to request for promotional code. The promotional code is generated randomly by our program’s algorithm in order to identify and record which user’s request matching to which coffee house’s promotion. Once they request, our application will push request notification to that coffee house’s mobile device, they will have to accept the request to generate the promotional code back to the user.  Advertisement. 治政大 profile will be pushed to they request for an advertisement, their coffee house’s 立 “Recommended Coffee Houses” area for a certain period of time according to the.  Premium accounts can start an advertisement program within our application. Once. ‧ 國. 學. advertising agreement. This will ensure the higher click through rate from our users and create a business opportunity for our premium accounts. When users using the. ‧. search function, our application will display the paid advertisement profile as the top search result as well.. sit. y. Nat. er. io.  Receive news/ update from App.  Our registered users and our premium accounts will be the first ones to receive the. n. al. Ch. i n U. v. latest update and special promotion from our application.. engchi. Exhibit 12: Available services provided for different segment of customers Coffee Drinkers Services. Search and View Database. Coffee Houses. Non-registered. Registered. User. User. *. *. Add/Edit Database (Basic information) Add/Edit Database. Basic Account. Premium Account. *. *. *. * *. 22.

(26) (Complete information) View Reviews. *. *. Write Reviews. *. *. *. *. *. Share Reviews. *. *. Official Reviews from. *. App’s staffs Add Promotion. *. View Promotion. *. *. Use Promotion. *. *. *. Advertisement. *. Receive news/ update from App. 立. * 政治大. *. ‧ 國. 學. Exhibit 13: Example of Coffee House Profile page (Basic Account). ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 23. i n U. v.

(27) 立. 政治大. ‧. ‧ 國. 學. Exhibit 14: Example of Coffee House Profile page (Premium Account). n. er. io. sit. y. Nat. al. Ch. engchi. 24. i n U. v.

(28) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al Place/ Distribution Strategy. Ch. engchi. i n U. v. Caffeinated Application is a mobile application to be installed on mobile devices; hence we will need to look at the distribution channels for delivering our applications to customer. For the first stage, we will focus on publishing our application to Google Play (Android devices) and App Store (iOS devices) as these two are the leading markets for mobile applications. Currently, Android devices hold a major market share. Therefore, our application shall be published for Google’s Android devices first. Then the application will be ported to another platform. Google Play and App Store are the official distribution channels for Android and iOS devices, however, there are several independent appstores that can help distributing the mobile app and increase mobile app downloads. Even though those stores are taking small market shares. 25.

(29) of mobile app downloads, but the publication on those stores will not take up too much time and efforts so it is considered a small of time investment to widen our distribution channels.. Exhibit 15: A flow chart demonstrating how to distribute an app through the App Store Source: Apple Store. Nat. n. al. er. io. sit. y. ‧. Exhibit 16: Thailand Smartphone Market Share Source: GfK Retail and Technology (Thailand) – January 2013. 學. ‧ 國. 立. 政治大. Ch. engchi. 26. i n U. v.

(30) Exhibit 17: Worldwide market share of mobile applications stores in 4th quarter 2012 Source: Statista.com. 立. 政治大. ‧. ‧ 國. 學. Exhibit 18: List of distribution channels Source: mobyafﬁliates.com. y. Nat. GetJar. al. n. OpenAppMkt. io. Apple Store. Android. er. Google Play. Platform. sit. App Stores. Ch. n U engchi. iOS. i vAndroid, iOS Android, iOS. Handmark. Android, iOS. Handster. Android, iOS. WAC. Android, iOS. PhoLoad. Android, iOS. Mobango. Android, iOS. Zeewee. Android, iOS. Appolicious. Android, iOS. Handango. Android, iOS. Appia. Android, iOS. Biskero. Android, iOS. Opera Mobile App Store. Android, iOS. 27.

(31) Appitalism. Android, iOS. NexVa. Android, iOS. Kongregate. Android, iOS. mJelly. Android, iOS. AppVisor. Android, iOS. AppCentral. Android, iOS. Maopao. Android, iOS. WhiteApp. Android, iOS. Djuzz. Android, iOS. AppShup. Android, iOS. BananaFactory. Android, iOS. AppCity. Android, iOS. AppsLib. 立. SlideMe Soci.i0. io. Lima. Android. y. Android. sit. Cydia. Android. Nat. AndroidPit. Android. iOS. n. al. er. Appoke. Android. ‧. AppBrain. PremierAppShop. Android Android. ‧ 國. Camangi. Android. 學. 1Mobile. 政治大. Ch. engchi. i n U. v. iOS iOS. Price Strategy Since our business will rely on users’ traffic and user-generated reviews, we will not charge any fee to our customers who are coffee drinkers. As we aim to develop a platform that facilitates the communication among users and local coffee houses, we will also need to make a balance of number of coffee houses as well. On the other hand, as number of users and reviews increase, this will attract of a lot of local businesses to gain access and exposure to this profiles’ database. Hence, our company will tab into this prospect to charge a reasonable fee to the local coffee houses in order to use our premium services to enrich their marketing campaign. 28.

(32) Exhibit 19: Pricing table for different service Coffee Houses. Services. Basic Account. Premium Account. Registration Fee. Free. 1,000 THB (~33 USD). Search and View Database. *. *. *. *. N/A. *. View Reviews. *. *. Share Reviews. *. *. Add/Edit Database (Basic information) Add/Edit Database (Complete information). Official Reviews from App’s. 立. staffs. 政N/A 治 *大 Additional charge of 5,000 THB (~167 USD) per review. ‧ 國. Add Promotion. N/A. generated, Caffeinated will receive. ‧. *. * Free Advertisement for 1 Week. n. al. * 1 Day. er. io. sit. y. *. Nat. Receive news/ update from App. * With any promotional code. 3% of each purchase. View Promotion. Advertisement. 學. * Add promotion at any time. Ch. N/A. engchi N/A. i n U. v. * 1 Week. 500 THB (~17 USD). 3,000 THB (~100 USD). * 1 Month 10,000 THB (~333 USD) * 3 Months 25,000 THB (~833 USD) *. Promotion Strategy The key objective is to attract both coffee drinkers and coffee houses to download and try our application. Active users who contribute in contents creation are crucial to keep participants engaged in our platform. Therefore, in initial stage, our staffs will lead in generating reviews and conversation.. 29.

(33) Within this age of information technology, there are multiple ways to reach to potential audiences. Below are some examples of how to obtain customers to try our product.  Facebook Facebook is an easy to use, and a good platform to promote the application due to its size of active users worldwide, there are over 1.35 billion monthly active Facebook users. According to Zocial Inc, the company which monitors social media trends in Thailand reported back in May 2014 that Thailand has 28 million Facebook users, growing 53 percent faster than the previous year. That makes Thailand Facebook’s ninth biggest country worldwide. Thailand has 67 million people, so one-third of the population has a Facebook account. 55 percent of Thailand’s Facebook users reside in Bangkok.. 治政大 with users, as Facebook can Hence Facebook is our primary channel to communicate create a page and let users 立 “Like” the page in order to follow any updates. Facebook page ‧. ‧ 國.  Twitter. 學. allows users to give feedback and suggestion regarding the App in their own environment.. Twitter is considered as one of the best communication tools among teenagers. As a short. y. Nat. message of 140 characters communication channel, Twitter is responsive and real-time.. er. io. sit. We can use this channel to address new update or special promotions to our users.. al. n. v i n million twitter users in Thailand,Ca h growth of 350% from e n g c h i U previous year.. Twitter is the second most popular social media in Thailand. There are approximately 4.5. Exhibit 20: Yelp Facebook Page (left) and twitter (right). 30.

(34)  Pantip.com Pantip is a popular Thai-language website and discussion forum. As of April 2008, Pantip.com was one of the top 10 websites in Thailand. Many Thai citizens use this forum to share their opinions or reviews with other members of the community. In many cases, people will use this forum to share their experiences and recommend new stuffs for other people. This is one the sources where people will find information that can influence their decision. It is a place where word-of-mouth marketing can take place and encourage more users to download our application  Youtube Video is one of the most expressive and effective ways to show off our App’s interface. 政治大. and capabilities. We will create a video that demonstrate its features and workflow.. 立.  Caffeinated App Website. ‧ 國. 學. We can create a simple website to set up our company information, our product’s description and how users can contact us. Users can find out more about the benefits and. ‧. advantages that they can get while joining our platform.. Nat. sit. y.  Press and Journalist. al. er. io. Our company can will the release announcement to mobile application review websites. n. such as Androidtapp.com, PCMag.com or TechCrunch.com. An email sent to them will. Ch. i n U. v. include a link to App introduction video, screen shots and a brief description of what our. engchi. application is about. This will help them to capture the essence our App and perhaps they will publish a review of our App on the website.  Food and Beverage Expo To connect with coffee houses, we will have to attend several Food and Beverage Expo in order to introduce our application to them directly. At the site, we can demonstrate how our application can benefit their business and guide them through the registration steps as business owner in our platform.  Paid Advertisement We can consider using the service of two major internet advertisement platforms, Google AdWords and Facebook Advertisement. 31.

(35) Google AdWords is an online advertising service that places advertising copy at the top, bottom, or beside, the list of search results Google displays for a particular search query.. Facebook is another platform that we can consider engaging in paid advertisement to reach the target audience. The paid advertisement will be shown on Facebook mobile application, it allows us to specifically determine type of target audiences such as country, region, age and gender.. Exhibit 21: Example of Google AdWords (left) and Facebook Mobile Ads (right). 立. 政治大. ‧. ‧ 國. 學 er. io. sit. y. Nat.  Email. al. n. v i n processed, we will send them C a notification U a thank-you note. Then sending h e n g cemail h i and To keep engaging with users and show them our appreciation, after their registration is. information to them when we have a new update or special promotion on our App, or. delivering an information that is useful to them (such as coffee making tips, events) to build relationship with our customers. When we have a query from our customer via email, we shall reply within 24 hours.. 4.2 Operation Plan At this point, we will spend the first month to look at all aspect of our business plan and fully develop it to mitigate all risk factors and ensure the successful outcome. As CEO and HR manager, Thidarat will create the profile and recruit necessary staffs to fulfill our production plan. 32.

(36) Required Personnel  Programmer (Android – must, iOS – preferred) : Full-Time  Graphic Designer. : Part-Time.  Marketing Specialist. : Full-Time. As Thidarat has previous experiences with website and mobile applications user-experience design before, as well as project management, she will handle all aspects regarding the spec designs, QA testing process and manage the development process to meet targeted schedule. Both founders, Thidarat and Vilailuk, will both have to work full-time together to develop the initial promotion campaigns and contact local coffee houses to join our platform.. 治政 revenues for 3 months to evaluate whether or not we 大 should develop this App for iOS platform as well. During those立 3 months, our full-time programmer will spend time to study After the release of Caffeinated App on Android platform, we will monitor users’ traffics and. ‧ 國. 學. the coding and App publication for iOS mobile phones and tablets.. If the revenue does not reach expectation, another source of revenue must be considered such. ‧. as crowd-funding or outsourcing part of our production.. Nat. Resources Recruitment Design Spec. al. 3. 4. Ch. engchi. Programming Graphic Design QA Testing Database Collection Promotion Campaign (1) Beta Release Enhancement Patch Promotion Campaign (2) Official Release to Android Platform. 33. 5. sit. 2. n. Plan Development. 1. 6. er. io. Months. y. Exhibit 22: Start-up Phrase Schedule. i n U. v. 7. 8. 9.

(37) 4.3 Growth Plan To increase our brand awareness and expansion of users’ database, our company will need to consider the following expansion strategies once our team has become stronger and more experienced in this business:. Mobile Application Platforms . As initial stage, we will focus on two major mobile operating systems, Android and iOS. However, we will plan to roll out the version that can install on Windows Phone and Blackberry operating systems.. Coffee house database coverage. 學. ‧ 國. . 政治大 Our company’s next move is to expand our coffee houses database to other major 立 cities in Thailand such as Chiang Mai, Phuket and Hua Hin. We will have to spend some time to learn about the local consumer behavior in each city before penetrating into that market. We target the aforementioned cities due to a few factors such as the. ‧. urbanization in the areas, high population density and their coffee culture.. y. sit. er. Our company will develop a new online platform to facilitate businesses and. io. . Nat. Online Transaction Service. al. n. v i n C h or pre-paid subscription; the form of credit card payment our company will take a engchi U. consumers to make transaction directly on our Caffeinated Application. This is be in. small cut of the revenue businesses make through this online transaction.. Online Drinks or Coffee beans Ordering . After our online transaction services platform is rolled out and proved to be successful, we will continue to develop an even more advanced platform to make both coffee house businesses and customers’ life even easier. Customers can view all available drinks menu at selected coffee houses, make an order from their mobile devices and go pick up the drinks without having to wait in line.. . When customers visit the coffee house and enjoy the qualitied coffee served there, it would happen that they want to buy the coffee beans selling at the shop. They can. 34.

(38) now use this platform to make a purchase or an order if the product is out of stock at the time. Coffee houses, at the same time, will have an opportunity to promote their special drink menu and manage their drink orders efficiently. Moreover, they can use this platform as another online channel to sell their coffee products to customers.. 立. 政治大. 學 ‧. ‧ 國 io. sit. y. Nat. n. al. er. . Ch. engchi. 35. i n U. v.

(39) Chapter 5: Financial Plan 5.1 Cost of Production Since our company develops a mobile application, we does not have tangile product, hence most of the cost will be salary of the employees, development equipment, software licensing and server hosting fees. We do not have to pay for office rental because at this early stage of the development and the nature of our work, we can manage to work from home office.. Exhibit 23: List of expenses in USD One-Time Cost. Monthly Cost. Yearly Cost. 25.00. -. 99.00. 30.00 700.00. 360.00 8,400.00. io. -. 600.00. -. 1800.00 12.50 45.00 200.00 200.00. y. 800.00. er. Nat. -. ‧. ‧ 國. 立 --. 政治 -大. sit. -. 學. Expenses Android development licenses iOS development licenses Server hosting Programmer Salary Graphic Designer Salary Marketing Specialist Salary Management Salary Personal Computer Administrative work Travel cost Advertisement. al. 72,000.00 21,600.00 150.00 540.00 2,400.00 2,400.00. n. v i n Development equipment is an existing we will only allocate this C hasset among co-founders, U i e h n g c application developer. We budget the budget for one personal computer to one full-time personal computer for 750 USD, with estimated useful life for 5 years, hence the montly income statement will report straight-line depreciation expense of 12.50 USD for 60 months. Other expenses that matter are the software development licensing fee for Android and iOS platform. This costs cover the fee for using their SDK for application development and testing, and for distributing the applictaion in their online market store.. As for server hosting, we will use Amazon AppStream cloud service which allows developers build complex applications using resources on its Amazon Web Services (AWS) cloud platform to power mobile apps and games. Amazon AppStream enables developers to host server-side application code on one or more Amazon EC2 instances, enabling it to scale as. 36.

(40) necessary in order to meet demand. Meanwhile, the client-side application could be a simple viewer or other lightweight application running on Fire OS (Kindle), Android or iOS devices, as well as Mac OS X and Windows systems. AWS bills according to usage, contrast to other hosting services usually bill with fixed rates.. Our company will pay full-time salary for 1 programmer and 1 marketing specialist based on average salary offering for fresh graduate. Both founders agree to work part-time for the first year due to financial security reason. Therefore, their salary will reflect on the income statement starting from year 2.. For advertisement budget, we will start off with all possible promotion strategies that does. 治政大for Apps. that pay per click such as Google Adwords or Facebook Ads 立. not cost anything. We will allocate only the minimum amounts for online adverstisements. ‧ 國. 學. 5.2 Income Projection. In the first year, we will mainly focus on application development therefore the income will. ‧. start to occur in the later stage of the year. The revenue streams come from premium account. sit. y. Nat. registation fees and advertisement fees that bill to the afficliated coffee houses.. er. io. We expect our pool of customers to increase by 50% growth rate per year as below table:. al. n. v i n C h Subscribers: Year Exhibit 24: Projected Number of Services e n g c h i U 1 – Year 5 Services Premium Accounts Registration Review 1 Day ads 1 Week ads 1 Month ads 3 Month Ads. Year 1. Year 2. Year 3. Year 4. Year 5. 50. 75. 113. 169. 253. 7.5 5 10 15 10. 11 8 15 23 15. 17 11 23 34 23. 25 17 34 51 34. 38 25 51 76 51. 37.

(41) Exhibit 25: Projected Number of Services Subscribers: Year 1 – Year 5. Services Premium Accounts Review 1 Day ads 1 Week ads 1 Month ads 3 Month Ads Total. Fee (USD). Year 1. Year 2. Year 3. Year 4. Year 5. 33.33. 1,666.67. 2,500.00. 3,750.00. 5,625.00. 8,437.50. 166.67 16.67 100.00 333.33 833.33. 1,250.00 1,875.00 2,812.50 4,218.75 6,328.13 83.33 125.00 187.50 281.25 421.88 1,000.00 1,500.00 2,250.00 3,375.00 5,062.50 5,000.00 7,500.00 11,250.00 16,875.00 25,312.50 8,333.33 12,500.00 18,750.00 28,125.00 42,187.50 17,333.33 26,000.00 39,000.00 58,500.00 87,750.00. 5.3 Cash Flow and Break Even Analysis. 學. ‧ 國. 立. 政治大. ‧. Throughout the first year, all the work done by founders will be part-time and without paid. Therefore, their salary will not be included as expenses in the first year. Initial investment. Nat. sit. y. was financed by founders to guarantee the necessary funding such as paying employees’. al. v i n C h in mobile application material required development, the cost of engchi U n. Since there is no raw. io. administrative work.. er. salaries, buying personal computer, paying for phone bills, internet connection and other. production is constant. Profit/loss mainly goes together with the revenue, which relies heavily on advertisement services subscribed by coffee houses. Therefore, Caffeinated Co., Ltd. has to continuously maintain the services for coffee houses and expand the database of subscribers to convert them to our premium account with services subscription. On the next page is an explanation of our projected cash flow. We can expect to see steady profit streams coming from second half of year 4 onwards.. 38.

(42) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 8000.00. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 4333.33. 4333.33. 4333.33. 4333.33. 8000.00. 0.00. 0.00. 0.00. 0.00. 0.00. 0.00. 0.00. 4333.33. 4333.33. 4333.33. 4333.33. Android development licenses. -. -. 25.00. -. iOS development licenses. -. -. -. Server hosting. -. -. 30.00. 立. Programmer Salary. -. -. Graphic Designer Salary. -. -. Marketing Specialist Salary. -. -. Management Salary. -. -. Personal Computer. 12.50. 12.50. ‧ 國. Exhibit 26: Monthly cash flow for Year 1 in USD Month. Administrative work. 45.00. Travel Cost. Initial Funding Revenue from all services Total revenue. 政治大 -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. -. -. 800.00. 800.00. -. -. -. -. -. -. -. -. -. -. -. 600.00. 600.00. 600.00. 600.00. 600.00. -. -. -. -. -. -. -. -. -. -. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. -. -. -. -. -. -. -. 200.00. 200.00. 200.00. 200.00. 200.00. Advertisement. -. -. -. -. -. -. -. -. -. -. -. -. Total Expenses. 57.50. 57.50. 812.50. 1587.50. 1587.50. 1587.50. 1587.50. 1587.50. 0. 7942.50. 7885.00. 2322.50. 735.00. 3480.83. 6226.67. 8972.50. 7942.50. 7885.00. 7072.50. 735.00. 3480.83. 6226.67. 8972.50. 11718.33. er. sit. y. ‧. io. 1587.50 1587.50 787.50 a iv l C 6285.00 4697.50 3110.00 7072.50 n 6285.00 h 4697.50 e n g c3110.00 h i U 2322.50 787.50. n. Ending Cash. Nat. Carry Over. -. 學. -. 39.

(43) Exhibit 27: Monthly cash flow for Year 2 in USD Month. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. -. -. -. -. -. -. -. -. -. -. -. -. Revenue from all services. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. Total revenue. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. 2166.67. -. -. -. -. iOS development licenses. 99.00. -. -. Server hosting. 30.00. 30.00. 30.00. 立. Programmer Salary. 700.00. 700.00. -. -. 600.00. 600.00. 1800.00. 1800.00. Personal Computer. 12.50. 12.50. Administrative work. 45.00. 45.00. Travel Cost. 200.00. Advertisement. Initial Funding. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. -. -. -. -. -. -. -. -. -. -. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Total Expenses. 3686.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. Carry Over. 11718.33. 10198.50. 8777.67. 1673.50. 252.67. -1168.17. -2589.00. -4009.83. Ending Cash. 10198.50. 8777.67. 7356.83. 252.67. -1168.17. -2589.00. -4009.83. -5430.67. io. n. C h 5936.00 4515.17U e n g c3094.33 hi 5936.00 4515.17 7356.83. 40. er. ‧ 國. Nat. al. 3587.50. ‧. Graphic Designer Salary Marketing Specialist Salary Management Salary. -. 學. -. y. 政治大 -. sit. Android development licenses. iv n3094.33 3587.50. 1673.50.

(44) Exhibit 28: Monthly cash flow for Year 3 in USD Month. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Initial Funding Revenue from all services Total revenue. -. -. -. -. -. -. -. -. -. -. -. -. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. 3250.00. -. -. -. -. -. 99.00. -. -. -. 30.00. 30.00. 30.00. 700.00. 700.00. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. -. -. -. -. -. -. -. -. -. -. -. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. y. 600.00. 600.00. 600.00. 600.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 45.00. 45.00. 45.00. 45.00. C45.00 h. 12.50. 45.00 e n g45.00 chi U. 45.00. 45.00. 45.00. 45.00. 45.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Advertisement. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Total Expenses. 3686.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. Carry Over. -5430.67. -5867.17. -6204.67. -6542.17. -6879.67. -7217.17. -7554.67. -7892.17. -8229.67. -8567.17. -8904.67. -9242.17. Ending Cash. -5867.17. -6204.67. -6542.17. -6879.67. -7217.17. -7554.67. -7892.17. -8229.67. -8567.17. -8904.67. -9242.17. -9579.67. 立. Nat. io. n. al. 41. er. ‧ 國. -. 學. -. sit. 政治大. ‧. Android development licenses iOS development licenses Server hosting Programmer Salary Graphic Designer Salary Marketing Specialist Salary Management Salary Personal Computer Administrative work Travel Cost. v ni.

(45) Exhibit 29: Monthly cash flow for Year 4 in USD Month. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. -. -. -. -. -. -. -. -. -. -. -. -. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. 4875.00. -. -. -. -. 99.00. -. -. 立. 30.00. 30.00. 30.00. 700.00. 700.00. -. -. 600.00. 600.00. 1800.00. Personal Computer. Initial Funding Revenue from all services Total revenue. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. -. -. -. -. -. -. -. -. -. -. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. Administrative work. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. Travel Cost. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Advertisement. 200.00. 200.00. 200.00. 200.00. Total Expenses. 3686.50. 3587.50. 3587.50. al. Carry Over. -9579.67. -8391.17. -7103.67. Ending Cash. -8391.17. -7103.67. -5816.17. ‧. Graphic Designer Salary Marketing Specialist Salary Management Salary. Nat. io. er. Programmer Salary. -. ‧ 國. iOS development licenses Server hosting. 學. -. y. 政治大. sit. Android development licenses. 200.00. 200.00. 200.00. 200.00. 200.00. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. -666.17. 621.33. 1908.83. 3196.33. 4483.83. -4528.67. 621.33. 1908.83. 3196.33. 4483.83. 5771.33. n. v 3587.50 ni C h3587.50 3587.50 U3587.50 e n g c-3241.17 -5816.17 -4528.67 h i -1953.67 200.00. -3241.17. 42. 200.00. -1953.67. 200.00. -666.17.

(46) Exhibit 30: Monthly cash flow for Year 5 in USD Month. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. -. -. -. -. -. -. -. -. -. -. -. -. Revenue from all services. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. Total revenue. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. 7312.50. -. -. -. -. iOS development licenses. 99.00. -. -. -. Server hosting. 30.00. 30.00. 30.00. Programmer Salary. 700.00. 700.00. -. -. 600.00. Initial Funding. Android development licenses. 政治大 -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. -. -. -. -. -. -. -. -. -. -. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. Personal Computer. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. 12.50. Administrative work. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. Travel Cost. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Advertisement. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Total Expenses. 3686.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. 3587.50. Carry Over. 5771.33. 9397.33. 13122.33. 31747.33. 35472.33. 39197.33. 42922.33. 46647.33. Ending Cash. 9397.33. 13122.33. 16847.33. 35472.33. 39197.33. 42922.33. 46647.33. 50372.33. 3587.50. 20572.33. 24297.33. y. sit. io. al. er. ‧ 國 Nat. 200.00. ‧. Graphic Designer Salary Marketing Specialist Salary Management Salary. 立. 學. -. n. v ni 16847.33 C h20572.33 24297.33U28022.33 engchi 3587.50. 43. 3587.50. 28022.33. 3587.50. 31747.33.

(47) Exhibit 31: Monthly cash flow for Year 6 in USD Month Initial Funding Revenue from all services Total revenue. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. -. -. -. -. -. -. -. -. -. -. -. -. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. 10968.75. -. -. -. -. -. 99.00. -. -. -. 30.00. 30.00. 30.00. 700.00. 700.00. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 30.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. 700.00. -. -. -. -. -. -. -. -. -. -. -. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 600.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. 1800.00. -. -. -. -. -. -. -. -. -. -. -. -. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 45.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Advertisement. 200.00. 200.00. 200.00. 200.00. 200.00 U i 200.00 e h n c g 200.00 200.00 200.00. 200.00. 200.00. 200.00. 200.00. 200.00. Total Expenses. 3674.00. 3575.00. 3575.00. 3575.00. 3575.00. 3575.00. 3575.00. 3575.00. 3575.00. 3575.00. 3575.00. 3575.00. Carry Over. 50372.33. 57667.08. 65060.83. 72454.58. 79848.33. 87242.08. 94635.83. 102029.58. 109423.33. 116817.08. 124210.83. 131604.58. Ending Cash. 57667.08. 65060.83. 72454.58. 79848.33. 87242.08. 94635.83. 102029.58. 109423.33. 116817.08. 124210.83. 131604.58. 138998.33. Nat. io. n. al. Ch. 200.00. 44. sit. 立. er. ‧ 國. -. 學. -. y. 政治大. ‧. Android development licenses iOS development licenses Server hosting Programmer Salary Graphic Designer Salary Marketing Specialist Salary Management Salary Personal Computer Administrative work Travel Cost. 1. v ni.

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