Love Back: 醜醜有機蔬菜再利用的網路市場 - 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. 碩士論文治. 政. 大立Master’s Thesis ‧. ‧ 國. 學 sit. y. Nat. Love Back: 醜醜有機蔬菜再利用的網路市場 n. al. er. io. Love Back: Organic Market for Everyone. Ch. engchi. i Un. v. Student: Thacha Tapaneeyakorn Advisor: Professor David Ta-wei Chang. 中華民國一○九年四月 April 2020. DOI:10.6814/NCCU202000439.

(2) Love Back: 醜醜有機蔬菜再利用的網路市場 Love Back: An Organic Market for Everyone 研究生：陳達宏. Student: Thacha Tapaneeayakorn. 指導教授：張大為. Advisor: David Ta-wei Chang. 政治大. 國立政治大學. 立. 商學院國際經營管理英語碩士學位學程. ‧. ‧ 國. 學. 碩士論文 A Thesis. io. er. National Chengchi University. sit. y. Nat. Submitted to International MBA Program. n. in partiala fulfillment of the Requirements. l Cfor the degree of n i v hengchi U Master in. Business Administration. 中華民國一○九年四月 April 2020. DOI:10.6814/NCCU202000439.

(3) Acknowledgements To compose this thesis, I would like to sincerely express my gratitude to Professor David Ta-wei Chang, who helped me with the guidance all along the way until it is done. Also, thank you to IMBA office that plays an important role in everything since I have been in Taiwan. Lichi, Emily and Jasmine, thank you. Special thanks to Taiwan ICDF, who has realized my NCCU IMBA journey in Taiwan, gave. 政治大. me the opportunity to accomplish one of the most important chapters of my life.. 立. ‧ 國. 學. Lastly, I would like to thank you my parents who always support me in all aspects in every situation of my life. Moreover, my Thai friends in Taipei that made it feel like home away. ‧. io. sit. y. Nat. n. al. er. from home.. Ch. engchi. i Un. v. Thacha Tapaneeyakorn April 2020 Taipei. i DOI:10.6814/NCCU202000439.

(4) Abstract Love Back: An Organic Market for Everyone By Thacha Tapaneeyakorn The growth of organic trend is obvious and significant all around the world as well as in Thailand. There are offers of organic products in Thailand; however, the options are still. 政治大 been wasted and damaged our environment. Love Back, like its name, is the solution for both 立 limited especially when it comes to online platform. Moreover, a lot of produced food has. ‧ 國. 學. dilemmas; we will gather those organic products that do not meet retailer’s quality requirement to end-customers through our online platform. These products are completely. Nat. y. ‧. fine to consume with our trusted sourcing and operating system.. io. sit. In this thesis, all essential business matrixes have been used to tackle every angle of the. n. al. er. business: SWOT, TOWS, Business Model Canvas etc. Detailed information of all aspects:. Ch. i Un. v. marketing research, marketing plan, operational plan, organizational plan, financial plan,. engchi. future plan and conclusion have been provided to the creation of Love Back.. Keywords: Organic, Online, Food Waste, Impact, Platform. ii DOI:10.6814/NCCU202000439.

(5) TABLE OF CONTENTS 1. Executive Summary .............................................................................................................. 1 2. Introduction and Company Background ........................................................................... 2 2.1. Company Overview ......................................................................................................... 2 2.1.1. Name and Logo of the Business ............................................................................. 4 2.1.2. Mission ................................................................................................................... 5. 政治大. 2.1.3. Vision ...................................................................................................................... 5. 立. 2.1.4. Goal of Business ..................................................................................................... 5. ‧ 國. 學. 2.2. Business Model Canvas ................................................................................................... 6. ‧. 2.2.1. Value Proposition.................................................................................................... 6. sit. y. Nat. 2.2.2. Customer Segments ................................................................................................ 7. io. er. 2.2.3. Customer Relationships .......................................................................................... 7. al. 2.2.4. Channels ................................................................................................................. 7. n. iv n C Revenue Streams .................................................................................................... 8 hengchi U. 2.2.5.. 2.2.6. Social and Environmental Benefit .......................................................................... 8 2.2.7. Key Activities ......................................................................................................... 8 2.2.8. Key Resources ........................................................................................................ 8 2.2.9. Key Partners ........................................................................................................... 9 2.2.10.. Cost Structure ..................................................................................................... 9. 2.2.11.. Social and Environmental Cost .......................................................................... 9. 3. Situation Analysis ............................................................................................................... 10. iii DOI:10.6814/NCCU202000439.

(6) 3.1. Industry Structure .......................................................................................................... 10 3.1.1. The offline platform.............................................................................................. 10 3.1.2. The online platform .............................................................................................. 10 3.2. External Analysis (Porter’s Five Forces) ....................................................................... 11 3.2.1. Bargaining Power of Suppliers: Medium ............................................................. 11 3.2.2. Bargaining Power of Customers: Low ................................................................. 12 3.2.3. Threat of New Entrants: High .............................................................................. 12. 政治大. 3.2.4. Threat of Substitutes: High ................................................................................... 12. 立. 3.2.5. Rivalry Among Current Competitors: High ......................................................... 13. ‧ 國. 學. 3.3. Competitor Analysis ...................................................................................................... 14. ‧. 3.4. Internal Analysis (SWOT Analysis) .............................................................................. 19. sit. y. Nat. 3.4.1. Strength of the Business ....................................................................................... 19. io. er. 3.4.2. Weakness of the Business ..................................................................................... 20. al. 3.4.3. Opportunity of the Business ................................................................................. 20. n. iv n C Threat of the Business .......................................................................................... 21 hengchi U. 3.4.4.. 3.5. Business Strategy........................................................................................................... 22 3.6. Business Key Success Factors ....................................................................................... 25 4. Marketing Research ........................................................................................................... 26 4.1. The Objective of Marketing Research ........................................................................... 26 4.2. The Scope of Marketing Research ................................................................................. 26 4.2.1. Organic Businesses: Our Supply Side .................................................................. 26 4.2.2. End Customer: Our Demand Side ........................................................................ 27 iv DOI:10.6814/NCCU202000439.

(7) 4.3. The Result of Marketing Research ................................................................................ 28 4.3.1. Organic Businesses: Our Supply Side .................................................................. 28 4.3.2. End Customer: Our Demand Side ........................................................................ 38 5. Marketing Plan ................................................................................................................... 52 5.1. Segmentation ................................................................................................................. 52 5.2. Targeting ........................................................................................................................ 53. 政治大. 5.3. Positioning ..................................................................................................................... 54. 立. 5.4. Marketing Mix Strategies (4Ps) ..................................................................................... 54. ‧ 國. 學. 5.4.1. Product .................................................................................................................. 54 5.4.2. Price ...................................................................................................................... 55. ‧. 5.4.3. Place ..................................................................................................................... 56. y. Nat. al. er. io. sit. 5.4.4. Promotion ............................................................................................................. 56. v. n. 6. Operational Plan ................................................................................................................. 60. Ch. engchi. i Un. 6.1. Layout of Website .......................................................................................................... 60 6.2. Supplier Selection .......................................................................................................... 61 6.3. Raw Materials ................................................................................................................ 61 6.4. Production Process ........................................................................................................ 62 6.5. Operations ...................................................................................................................... 62 6.6. Production Plan ............................................................................................................. 64 6.7. Inventory Management .................................................................................................. 64. v DOI:10.6814/NCCU202000439.

(8) 6.8. Hygiene Control ............................................................................................................ 65 6.9. Customer Relationship .................................................................................................. 65 7. Organizational Management ............................................................................................. 66 7.1. Organization Structure ................................................................................................... 66 7.2. Roles and Responsibilities ............................................................................................. 67 7.3. Compensation and Benefit ............................................................................................ 69. 政治大. 7.4. Training.......................................................................................................................... 69. 立. ‧ 國. 學. 8. Financial Plan ..................................................................................................................... 70 8.1. Assumptions .................................................................................................................. 70. ‧. 8.1.1. Capital Investment ................................................................................................ 70. y. Nat. sit. Revenue ............................................................................................................................ 71. n. al. er. io. 8.1.2. Cost of Goods Sold ............................................................................................... 73. i Un. v. 8.1.3. Operating Expenses .............................................................................................. 75. Ch. engchi. 8.2. Forecasted Income Statement (Base Case) .................................................................... 77 8.3. Financial Decision ......................................................................................................... 77 8.3.1. Income Statement ................................................................................................. 77 8.3.2. Project Valuation................................................................................................... 78 8.4. Scenario Analysis .......................................................................................................... 78 8.4.1. Best Case .............................................................................................................. 79 8.4.2. Worst Case ............................................................................................................ 79. vi DOI:10.6814/NCCU202000439.

(9) 9. Future Expansion Plan ....................................................................................................... 80 9.1. Wider Delivery Areas .................................................................................................... 80 9.2. Product Expansion: Vegan Meat.................................................................................... 80 9.3. Product Expansion: Vitamin and Cosmetics ................................................................. 81 10. Conclusion ......................................................................................................................... 82 10.1. B-Corp ......................................................................................................................... 82. 政治大. 10.2. Impact Investing .......................................................................................................... 83. 立. ‧ 國. 學. Reference ................................................................................................................................. 84. ‧. Appendix 1: Questions for Quantitative Analysis ............................................................... 87. io. sit. y. Nat. Appendix 2: Market Research Questionnaire ..................................................................... 88. n. al. er. Appendix 3: Survey Results ................................................................................................... 93. Ch. engchi. i Un. v. vii DOI:10.6814/NCCU202000439.

(10) List of Figures and Tables Figure 1: Love Back Logo .......................................................................................................... 4 Figure 2: Love Back Business Model Canvas ............................................................................ 6 Figure 3: Love Back Five Forces Analysis ............................................................................... 14 Figure 4: Lemon Farm Supermarket in Bangkok ..................................................................... 15 Figure 5: Lemon Farm Website: https://www.lemonfarmdelivery.com/ .................................. 16 Figure 6: Harmony Life Website: http://harmonylife.co.th/en/ ................................................ 17. 政治大. Figure 7: Organic Supply, an example of small organic retailers............................................. 18. 立. Figure 8: Love Back SWOT analysis ....................................................................................... 22. ‧ 國. 學. Figure 9: Love Back TOWS Matrix ......................................................................................... 23 Figure 10: Lemon Farm Quantitative Analysis ........................................................................ 29. ‧. Figure 11: Harmony Life Quantitative Analysis ...................................................................... 30. y. Nat. io. sit. Figure 12: Ohkajhu Quantitative Analysis ............................................................................... 31. n. al. er. Figure 13: Dairy Home Quantitative Analysis ......................................................................... 32. Ch. i Un. v. Figure 14: Sutee Organic Farm Quantitative Analysis ............................................................. 34. engchi. Figure 15: Uncle Ree Organic Farm Quantitative Analysis ..................................................... 35 Figure 16: Overall Supply Side Quantitative Analysis ............................................................. 36 Figure 17: Overall Supply Side Quantitative Analysis Percentage .......................................... 37 Figure 18: Gender Survey Result ............................................................................................. 38 Figure 19: Age Survey Result ................................................................................................... 38 Figure 20: Education Survey Result ......................................................................................... 38 Figure 21: Occupation Survey Result ....................................................................................... 39 Figure 22: Salary Survey Result ............................................................................................... 39. viii DOI:10.6814/NCCU202000439.

(11) Figure 23: Status Survey Result ............................................................................................... 40 Figure 24: Organic Consumption Preference Survey Result .................................................... 40 Figure 25: Reasons for Organic Consumption Survey Result .................................................. 40 Figure 26: Frequency for Organic Consumption Survey Result .............................................. 41 Figure 27: Channels for Organic Consumption Survey Result ................................................ 41 Figure 28: Factors for Organic Purchase Survey Result .......................................................... 42 Figure 29: Concern for Environmentally-Friendly Package Survey Result ............................. 42. 政治大 Figure 31: ANOVA Result for立 Relevant Factors with Age ....................................................... 43 Figure 30: Willingness to Accept Subscription Purchase Survey Result ................................. 43. ‧ 國. 學. Figure 32: ANOVA Result for Trend with Age ........................................................................ 44 Figure 33: ANOVA Result for Consumption Frequency with Age .......................................... 44. ‧. Figure 34: ANOVA Result for Online Channel with Age ........................................................ 45. sit. y. Nat. Figure 35: ANOVA Result for Environmentally-Friendly Package with Age.......................... 45. n. al. er. io. Figure 36: ANOVA Result for Relevant Factors with Education ............................................. 46. i Un. v. Figure 37: ANOVA Result for Trend with Education............................................................... 46. Ch. engchi. Figure 38: ANOVA Result for Online Channel with Education ............................................... 47 Figure 39: ANOVA Result for Price with Education ................................................................ 47 Figure 40: ANOVA Result for Environmentally-Friendly Package with Education ................ 48 Figure 41: ANOVA Result for Relevant Factors with Occupation ........................................... 48 Figure 42: ANOVA Result for Frequency with Occupation ..................................................... 49 Figure 43: ANOVA Result for Online Channel with Occupation ............................................ 49 Figure 44: ANOVA Result for Relevant Factors with Salary ................................................... 50 Figure 45: ANOVA Result for Trend with Salary..................................................................... 50 Figure 46: ANOVA Result for Relevant Factors with Martial Status....................................... 50 ix DOI:10.6814/NCCU202000439.

(12) Figure 47: ANOVA Result for Trend with Martial Status ........................................................ 51 Figure 48: ANOVA Result for Frequency with Martial Status ................................................. 51 Figure 49: Love Back Positioning ............................................................................................ 54 Figure 50: Organic Box Sample Product .................................................................................. 55 Figure 51: Online State Statistics in Thailand .......................................................................... 58 Figure 52: Social Media Overview in Thailand ....................................................................... 58 Figure 53: Most Used Social Media in Thailand Source:. 政治大 Figure 54: Love Back Website立 Layout ..................................................................................... 60 https://datareportal.com/reports/digital-2020-thailand ..................................................... 59. ‧ 國. 學. Figure 55: Thailand’s Certified Organic Emblem .................................................................... 61 Figure 56: Example of Misshape Vegetables ........................................................................... 61. ‧. Figure 57: Love Back Production Process ............................................................................... 62. sit. y. Nat. Figure 58: Love Back Inventory Layout .................................................................................. 64. n. al. er. io. Figure 59: Love Back Organizational Structure ....................................................................... 66. i Un. v. Figure 60: Sample Product of Alternative Meat ....................................................................... 80. Ch. engchi. Figure 61: Sample Product of Organic Vitamin ....................................................................... 81. Table 1: Customer segmentation .............................................................................................. 52 Table 2: Initial capital investment ............................................................................................ 70 Table 3: Socio-Economic Status (SES) in Bangkok area ......................................................... 71 Table 4: Estimation based on Bangkok population statistic and market research .................... 72 Table 5: Revenue forecast (5%, first 2 years) ........................................................................... 73 Table 6: Revenue forecast (10%, 3rd year onwards) ................................................................. 73 Table 7: Average cost percentage of a regular box ................................................................... 73 x DOI:10.6814/NCCU202000439.

(13) Table 8: Average cost percentage of a big box ......................................................................... 74 Table 9: Average cost percentage of each product (first 2 years of Covid-19)......................... 74 Table 10: Average cost percentage of each product (3rd year onwards) ................................... 75 Table 11: Cost of goods sold forecasting (first 2 years) ........................................................... 75 Table 12: Cost of goods sold forecasting (3rd year onwards) ................................................... 75 Table 13: Salary expense per month ......................................................................................... 76 Table 14: Depreciation per year................................................................................................ 76. 政治大 Table 16: Love Back’s project立 valuation .................................................................................. 78 Table 15: Five-year forecasted Income Statement (Base case) ................................................ 77. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. xi DOI:10.6814/NCCU202000439.

(14) 1. Executive Summary Organic has now been one of the most popular consumption trends in the world. Thailand is not an exception with its annual growth of organic market more than 10 percent. The most welcoming organic products are still the daily commodity products e.g. vegetables, fruits, rice etc. Producers produce these commodity products into the market to answer consumer’s endless needs. Sometimes it produces more than the market actually needs. Also, consistently retailers have specific types of products that they require on their selves; beautiful and attractive. 政治大. to customers. This led to a tragic truth that those products that do not meet such criteria will be. 立. considered as trash. Nowadays we face a lot of environmental problems; one of them is food. ‧ 國. 學. waste. We, Love Back, would like to seize this opportunity to create a profitable business and at the same time reduce the environmental problem as well.. ‧. Love Back is a start-up with small scale at the moment; we are an online platform that links. y. Nat. io. sit. between unwanted organic products and end-customers. We are partnered with trusted organic. n. al. er. farmers to ensure that customers will get the organic products that might not have the best. Ch. i Un. v. appearance, but totally fine to consume with all the same nutritious quality. We offer. engchi. subscription-based purchase for customers, who can place their orders in our website. In order to provide the most convenient way for them, we, together with logistics partner, also take care of delivery service to their door. In the beginning, our main focus is Bangkok, among the working class groups with medium to high incomes. These people care about themselves and also their surroundings, but would like to have an option of a more reasonable price and more convenient alternative. Our business is small and needs moderate capital investment. It is a business with bright future, worth investing with positive NPV, IRR and can turn back the investment within a year.. 1 DOI:10.6814/NCCU202000439.

(15) 2. Introduction and Company Background 2.1. Company Overview In the history of humankind, this era is the period that human consumes the most. Thanks to advanced technology and convenient transportation, we have access to food almost all the time without limitation. This scenario is very common in those developed nations or those with rapid economic growth where food is normally available and easy to find. Meanwhile, there are parts of the world that still lack of proper nutrition due to insufficient amount of food. Furthermore,. 政治大. this excessive consumption of food leads to another severe problem that is food waste.. 立. According to the statistics from UNFAO1, annually 1 out of 3 parts of food that was produced. ‧ 國. 學. for human consumption is lost or wasted, which can be estimated approximately as 1.3 tons per year per person. Moreover, 57 percent of this food waste comes from household consumption.. ‧. The rest comes from mismanagement of supply chains, which often resulted in exploitation of. y. Nat. io. sit. food. The solution to manage those food wastes is also in concern. 57 percent of food waste will. n. al. er. be left on landfills or buried underground, while only 43% will be reproduced as manure or animal food.. Ch. engchi. i Un. v. The food waste situation in Thailand has been one of the struggling problems. The expanding cities and life style change has led to food waste problem as well. Thailand is also a popular tourist destination where all kinds of hotels and restaurants are located. These hotels and restaurants are in a very competitive market and need to fulfill customer’s expectation as much as possible, which leads to numerous creations of food options for customers. According to TDRI2, Thailand annually produces approximately 17.56 tons of garbage, out of which 64 1. Food and Agriculture Organization of the United Nations. 2. Thailand Development Research Institute. 2 DOI:10.6814/NCCU202000439.

(16) percent is organic waste. Also, there is no separation of garbage at this moment in Thailand, which worsens the situation and makes the estimation more difficult. To analyze deeper into Thailand’s food related issues especially in the food supply chain management process, one of the major causes for food waste problem begins from the beginning of the cycle. In general, only “selected” food products will be sold in supermarkets, the rest, which does not meet the standards e.g. misshape or seasonal over-supply quantity, will be sold as animal food or trashed. The problem is quite significant for organic products e.g.. 政治大. vegetables and fruits. Due to its higher market price, producers have a harder time to sell them. 立. as animal food producers would prefer the options with lowest price as much as possible.. ‧ 國. 學. Therefore, those organic products will be unfavorably wasted, which worsens the food waste. ‧. situation in Thailand.. Nat. sit. y. One of the major trends among Thai population is healthy trend. Thanks to serious promotion. n. al. er. io. from THPF3 for decades, a lot of Thais at this moment concerns more on their food options and. i Un. v. lifestyle. Thailand’s organic market was estimated to be worth approximately 2,700-2,900. Ch. engchi. million Thai Baht in 2019. Moreover, according to public official estimation from governmental bodies, Thai organic market could reach around 5,400 million Thai Baht.4 Consuming more vegetables and fruits trend has always been advised in general by all public health institutions. However, consumers nowadays have more needs and demands than the previous standard in the past. Organic products have been very popular among Thai consumers, who pay good attention to their health. This group of niche consumers has more purchasing power and is willing to pay more if the options meet their requirements. Nevertheless, this is 3. Thai Health Promotion Foundation. 4. Kasikorn Bank Research Center. 3 DOI:10.6814/NCCU202000439.

(17) just a group of people who can afford the so-called “healthy lifestyle”, which can be quite expensive for some. With all these problems mentioned above, so Love Back is solutions to all stakeholders, providing win-win situations to everyone. Love Back is a platform where producers can make profits on those unwanted vegetables and fruits and customers can purchase them with much lower price. Love Back provides a unique standard for organic food for everyone. Those vegetables and fruits have exactly all the same nutrition that the “selected” ones do, but they. 政治大. happen to have some unwanted features that most markets do not want. Meanwhile, Love Back. 立. would like to provide more accessible organic and healthy options to more customers. This is a. ‧ 國. 學. win-win situation for everybody.. ‧. 2.1.1. Name and Logo of the Business. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 1: Love Back Logo. 4 DOI:10.6814/NCCU202000439.

(18) 2.1.2. Mission . Provide fresh, nutritious and safe products to the society. . Bridge excessive farming products with health-conscious customers. . Put environment, community and society as our priorities. 2.1.3. Vision . Become the game changer and market trend setter of organic products in Thailand.. . Maximize profits while reducing the amount of food waste in the world. . Create a better quality of life for Thai people. 立. 2.1.4. Goal of Business. 政治大. ‧ 國. the first 3 years and the long-term one will follow afterwards.. ‧. Short-term Goal. 學. Our Goal can be divided into short-term and long-term. The short-term plan should last within. n. al. er. io. they are all completely fine and sometimes better.. sit. y. Nat. 1. Educate Thai market about the usefulness of misshape or left-over organic products that. i Un. v. 2. Building good connections with organic farmers and retailers and create long-term plan. Ch. engchi. together to solve the food waste problem.. 3. During this period, create Love Back brand awareness among all stakeholders. Long-term Goal 1. Establish an organic farm network that benefit the logistics and lower the cost significantly. 2. Become one of the first options when customers think of organic brand and socially responsible company 3. Cooperate with government and other organization to create impacts on waste reduction in Thailand. 5 DOI:10.6814/NCCU202000439.

(19) 2.2. Business Model Canvas. 立. 政治大. ‧ 國. 學. Figure 2: Love Back Business Model Canvas. ‧. 2.2.1. Value Proposition. The first value that Love Back put emphasis on is that our customers must always get the. y. Nat. io. sit. reliable products as promised; fresh, nutritious and safe. We would like to provide further. n. al. er. solutions that this must be convenient; that is to say, we deliver our provided choices to their. Ch. i Un. v. home on subscription basis. This must come with significantly lower cost comparing to. engchi. normal organic vegetables and fruits in the market.. Another important value is that we would like to create positive impacts on the environment by reducing food waste in the cycle of supply chains. This food might not be selected to sell in normal supermarkets; however, they are perfectly acceptable to consume. Naturally, vegetables and fruits are not meant to be in perfect sharps. The perfect requirements stimulate the use of more chemicals, fertilizers and GMO5 products. We would like to put it into our value and also educate as well as do marketing to change consumer’s perspective.. 5. Genetically Modified Organism. 6 DOI:10.6814/NCCU202000439.

(20) Furthermore, Love Back will try to lower its cost as much as possible in order to be able to stay sustainable.. 2.2.2. Customer Segments We will focus on health-conscious customer groups. Our customers will not be the niche market, who has the highest purchasing power in the market, but we will focus on modern individual, small family or small organization that care about their daily consumption; nonetheless, also want the healthy lifestyle to be more convenient. Those people should have. 政治大 2.2.3. Customer Relationships 立. the access to further food preparation e.g. own kitchen.. ‧ 國. 學. Love Back is an online platform; therefore, most of our orders will be made through our website. We will provide customers several packages based upon subscription. Customers will. ‧. have the freedom to choose a package that suits their need the most. Our subscription will be. sit. y. Nat. flexible to match Thai customer’s characteristics of preference; meanwhile promotions will be. n. al. er. io. added through our membership programs.. i Un. v. Call-in order is also possible as we wish to please and provide more convenient option for the elderly group of customer.. Ch. engchi. 2.2.4. Channels Since it is an online platform, the most important channel will be our website and blogs. We will create blogs as a way to educate our customers as well as providing healthy and delicious recipes using our misshape products. Social Media e.g. Facebook and Instagram will also play a role in reaching more audience to come to our main channel, which is the website and blog. Also, due to our products are seasonal, we will create seasonal promotions that will focus on different kinds of vegetables or fruits that come out with too much quantity during that season. Last but not least, content marketing has been proved to work successfully in Thailand. Love 7 DOI:10.6814/NCCU202000439.

(21) Back will create its own content e.g. a short film or an advertisement through moving motion online platform e.g. YouTube. All of this will be linked to our main channel; the website.. 2.2.5. Revenue Streams Our sales will come from the paid subscription of our products from customers. We will create several options of packages for customer to choose from and also the length of period of subscription as well. Therefore, the revenue should be stable and predictable.. 2.2.6. Social and Environmental Benefit. 政治大 considered trash otherwise. 立 Consequently we will reduce the significant amount of waste. The products we purchase usually do not meet normal supermarket’s standard and will be. food. supply. ‧ 國. the. chains.. Furthermore,. we. will. 學. within. use. recyclable. or. environmentally-friendly package. As a result, food waste numbers should be decreased. ‧. annually.. Nat. sit. y. 2.2.7. Key Activities. n. al. er. io. Sourcing the trusted farm and negotiate the deal with them will be the first important task,. i Un. v. which requires multiple farming networking in Thailand. After that, the products will be. Ch. engchi. transported to our inventory, where we finish the packaging for delivery to customers. All of the transportation and logistics should be handled by our third-party logistics partner. Meanwhile, the management of online payment and customer care will also play an important role during all these production processes.. 2.2.8. Key Resources Most of the transactions will happen through online channel; therefore, Love Back needs exceptional information technology talents to create and manage the system on a daily basis. Also, online marketing know-how will also be crucial to our business in order to reach more customers to our platform. Love Back needs IT-literate people to run the business. 8 DOI:10.6814/NCCU202000439.

(22) 2.2.9. Key Partners Farmers will be our number-one key partner in providing all the supplies as well as creating marketing campaigns together with us. Some organic retailers can also provide us with supplies that cannot be put on their shelves, but still perfectly exquisite to consume. Logistics company partner will also play a critical role in moving goods from supplier to customers for us with lowest cost possible. Moreover, we need special supplier for providing environmentally-friendly package. Lastly, in case of huge IT infrastructure, we might need. 政治大. consultant team to accomplish the project.. 2.2.10.Cost Structure. 立. ‧ 國. 學. The cost consists of sourcing products process, packaging process, transportation and logistics, inventory, office and facilities rent, IT projects and maintenance as well as the monthly. ‧. expenses including utility bill and employee’s salary.. Nat. sit. y. 2.2.11.Social and Environmental Cost. n. al. er. io. With all of our processes, the only one that might possibly create negative environmental cost. i Un. v. would be the transportation and logistics, of which we have little control due to it is a third. Ch. engchi. party. However, Love Back will find a partner that also shares the same goal and vision in being more favorable to the environment. Also, this is a normal occurrence for any business with delivery process. In addition, we need to use resources of office regular operations e.g. electricity, water etc.. 9 DOI:10.6814/NCCU202000439.

(23) 3. Situation Analysis 3.1. Industry Structure Love Back is an online platform for organic products. Although our products, which are the first of its kind in Thai organic market, that either have misshape, too much for the season, old-fashioned package, in short all those that will be managed as trash otherwise, we would like to analyze further in the current situation of Thai organic products selling platforms both offline and online.. 立. 3.1.1. The offline platform. 政治大. ‧ 國. 學. This platform sells through retailers either chain-retailer or individual ones. Surprisingly in Thailand, the normal supermarkets have very limited choice of organic products. The reason. ‧. behind this might be that a lot of Thai customers still have confusion between kinds of. y. sit. n. al. er. io. often mixed up.. Nat. alternative consumption products e.g. real organic and hydroponic products, which are very. Ch. i Un. v. To be able to have access to the proper organic products, customer should reach to the pure. engchi. organic shops, which there are several renowned brands in the market e.g. Lemon Farm. Usually most of proper organic retailers are not chain supermarket, but owned by farmers themselves. In the provinces of Thailand, usually organic products especially vegetables and fruits are sold in normal markets where vendors and buyers are often local only.. 3.1.2. The online platform Online platform for organic products in Thailand are most of the time operated by those proper. 10 DOI:10.6814/NCCU202000439.

(24) organic retailers, who already have physical shops. All of them offer similar options to what they have in the physical shops that customers choose their preferred choice and place in the basket and make the final order. Delivery time usually depends on the choice of their third party logistic partners, in general 2-4 days of operating days. Also, there are small vendors on Facebook pages, which are usually the direct channel from small farmers; however, the quality and certified source are questionable.. 政治大. All in all, there has been no retailer or any sales channel, who sells the special products that. 立. Love Back will.. ‧ 國. 學. 3.2. External Analysis (Porter’s Five Forces). Here Porter’s Five Forces will be used to determine the strength and weakness of organic. ‧. products retailer’s industry in Thailand.. er. io. sit. y. Nat. 3.2.1. Bargaining Power of Suppliers: Medium. Our main supplier would be organic farmers. Usually farmers have very low bargain power in. al. n. iv n C Agriculture depend heavily on h eproducts ngchi U. Thai agriculture industry.. market price function.. Moreover, Love Back will purchase those left-over products; therefore, the bargain should be extremely low from farmers. The potential bargaining power from suppler should be from logistics partners. Now there are a number of transportation services in Thailand; however, the barrier to merger and acquisition for them is actually very low due to weak anti-trust law enforcement in Thailand. Therefore, it is certainly possible that those logistics companies might raise arbitrary price in the future. Considering all these mentioned factors together, the supplier’s bargaining power can be classified as medium. 11 DOI:10.6814/NCCU202000439.

(25) 3.2.2. Bargaining Power of Customers: Low Vegetables and fruits are commodity goods, which are normally consumed on a daily basis. The power of bargaining of customers for them depends on seasonal factors as vegetables and fruits are seasonal products. However, Love Back will provide customers only in several packages to choose from and they have limited freedom to choose the options within the package; therefore, the customer’s bargaining power should not be immerse.. 3.2.3. Threat of New Entrants: High. 政治大. Organic farmers usually have no trouble in finding the appropriate market for their products.. 立. Nonetheless, the left-over products are considerably cheaper and this factor might draw a lot. ‧ 國. 學. of new-comers into the market if it has been proved that there are markets for these products.. ‧. Moreover, with the help of instant online shops on the social media website makes it easier to create a platform for vendors.. sit. y. Nat. n. al. er. io. One of the solutions to prevent new competitors from entering into the market is we will have. i Un. v. a legal agreement with suppliers that they will solely supply the misshape products to us by. Ch. engchi. offering them a higher price than the market in order to attract potential partners. We are the only exclusive partner with them. This might not prevent all the competitors especially those who have their own farm and distribution channels; however, we would try our best to fulfill the loopholes in the industry.. 3.2.4. Threat of Substitutes: High As already mentioned above, vegetables and fruits are commodity goods, which mean it is easy to be replaced by other alternatives. Moreover, there are non-organic options for consumers as well as other kinds of food and supplements in the market. 12 DOI:10.6814/NCCU202000439.

(26) It is not easy to overcome the challenge of substitute products in the market. Nevertheless, one of the most important factors that determine why customers should choose Love Back, other than competitors is the brand awareness, which includes customer’s understanding of our impact to the society and environment. However, we need to go beyond only being an impactful brand, which a lot of organic brands in the market have already been trying to position themselves for decades. Love Back is a more reasonable option for customer, that is to say, the price is not over-charged like the other brands meanwhile the quality is the same.. 政治大 internet. Customers have more 立freedom to be recognized as a unique individual. All in all, we Moreover, it responds to the lifestyle of this century that everyone is connected through the. the existing competitors.. ‧. ‧ 國. 學. need to put a lot of emphasis on marketing and brand positioning in order to differentiate from. y. Nat. 3.2.5. Rivalry Among Current Competitors: High. er. io. sit. There are already existing pure organic chain retailers in the Thai organic market, who can purchase the products in much larger volumes. Even though there is no player who purchases. n. al. Ch. i Un. v. left-over now, but the change of the game can be very quick among players. Moreover, a lot. engchi. of farmers now have their own retail, which might not be impactful, but they always try to find the distribution channels of their control. Therefore, the competition among each other is in a high volume, but not as high as non-organic products. Similar to the high substitution that was mentioned above, the key to win in a competitive market is to be different from the others and to ensure the quality of our products. Moreover, we need to understand our competitors, which will be analyzed thoroughly in 3.3. Also, another important factor is the customer relation. Until now, there is no organic brand in Thailand that put the customer relation in practice seriously for example there is no content 13 DOI:10.6814/NCCU202000439.

(27) marketing, no concrete and specific brand image awareness of organic products. No organic brand has seriously cooperated with the governmental bodies to promote the environmental or societal issues. We can capture these loopholes and fulfill them in the market.. 立. 政治大. ‧. ‧ 國. 學 er. io. sit. y. Nat. al. iv n C Although customer’s alternative is tremendous, h e n g ctheh demand i U has been constantly increasing in n. Figure 3: Love Back Five Forces Analysis. the market. Also, the bargaining power of Love Back is in a better position. Therefore, we need find the add-on and promotion on our products and try to lower the cost from production as low as possible in order to win in this industry.. 3.3. Competitor Analysis At this moment, there has been no direct competitor concerning left-over organic vegetables and fruits in Thailand because this is a brand-new business idea in the country. The only organization that manages left-over food from hotel and brought to those in need are a. 14 DOI:10.6814/NCCU202000439.

(28) non-profit one; SOS 6 , who mainly collected already prepared food to other social organizations for underprivileged people. However, there could be indirect competitor in the market. As already mentioned above, there are several health-conscious supermarket chains in Thailand. Lemon Farm. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 4: Lemon Farm Supermarket in Bangkok Lemon Farm is the biggest supermarket chain in Thailand offering organic and health-conscious products in currently 17 branches nationwide. Most of branches are situated in Bangkok. It offers wide variety of products ranging from raw food e.g. vegetables, fruits, meat, eggs, cheese etc. until supplements or utilities. In some bigger branches, Lemon Farm also offers ready-to-eat products for customers either take-home or din-in. 6. Scholars of Sustenance. 15 DOI:10.6814/NCCU202000439.

(29) Lemon Farm is the only retailer without their own production or home-own brand. It collects majority of high quality organic products from all around Thailand. Therefore, when comparing with normal supermarket, product’s price is significantly higher. In a research7, Lemon Farm was willing to accept organic vegetables with 30 percent higher of cost comparing with non-organic vegetables. Furthermore, Lemon Farm also offers online channel to customers in order to serve the need of younger generation and also those who live in other provinces.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 5: Lemon Farm Website: https://www.lemonfarmdelivery.com/. 7. A research by Sal Forest Foundation in cooperation with Friedrich Ebert Stiftung. 16 DOI:10.6814/NCCU202000439.

(30) In their website, the main function is to provide customers with an online purchasing option. There are some recipes providing in the website, but overall customer engagement is very limited. Moreover, there is no online option for fresh vegetables and fruits, only dry products are offered online. Harmony Life. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 6: Harmony Life Website: http://harmonylife.co.th/en/ Harmony Life is an individual retailer, who also owns their farms as well. They also have a physical store in Bangkok; Sustaina Restaurant, which is a restaurant and also a distribution channel for their products.. 17 DOI:10.6814/NCCU202000439.

(31) In the website, they offer a wide range of organic products including fresh vegetables and fruits. However, the delivery is very limited, only in the CBD areas of Bangkok. Also, the supply should come from the restaurant, not directly from the farm. Other small retailers Most of the other organic selling channels are mostly through Facebook pages. This is a very traditional way of online shopping in which customers can order per direct message. Usually. 政治大 have a restaurant as a distribution 立 channel.. they are organic farmers that wish to find direct sales channels with customers. Many also. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 7: Organic Supply, an example of small organic retailers Overall, there is no competitor, who dedicatedly positions themselves as the obvious environmentally-friendly one e.g. using recyclable package or environment and social integration. Moreover, no player in the market has so far offered the misshape products to customers. Love Back is the first one in Thai market. 18 DOI:10.6814/NCCU202000439.

(32) 3.4. Internal Analysis (SWOT Analysis) Internal Analysis lets us understand more deeply about factors that involve in the business both positive and negative. With that, we can therefore utilize them into building a more sustainable business. We will use SWOT analysis, which figures strength, weakness, opportunity and threat of the business and generate business’s strategies accordingly.. 3.4.1. Strength of the Business . The first factor to be considered is the cost of managing the business that is lower than. 政治大. normal organic vendors in the market due to uncommon features of our products.. 立. According to American Market, this type of business usually offers 20 to 40 percent. ‧ 國. 學. lower than usual grocery store prices.8 The reason behind is because those products. Love Back is a start-up, which normally can be categorized as smaller, faster and. y. Nat. . ‧. are purchased with a very low cost in the first place.. er. io. sit. more flexible than those market giants. Moreover, we are an online platform, which leads to more adequate adaptability to the market. That is to say, we can establish a. n. al. Ch. better management with much lower cost. . engchi. i Un. v. Needless to say, organic vegetables and fruits are a better option for consumers. Love Back offers the exact same quality that consumers can find in the high-end organic markets with different sharps of products.. . Our order is subscription-based, which means customers have no hassles in dealing with grocery shopping. We deliver to their door and ensure that all products are safe and meet the organic standard; moreover, we provide the vegetables and fruits in season, which is proved to be safer to consume due to having less chance of. 8. Misfitsmarket.com. 19 DOI:10.6814/NCCU202000439.

(33) contaminating with chemicals and fertilizers. . The last strength is that we offer a great variety of vegetables and fruits in a package. Although customers cannot choose what should be in the box, Love Back provides a large quantity and worth the money more than normal organic grocery prices.. 3.4.2. Weakness of the Business . Rescuing and selling misshape or uncommon organic products online are totally new in Thailand. Usually those products will be sold only within the local community or. 政治大. reused as animal food. We bear a significant burden in educating customers to. 立. understand the quality and value of the products.. ‧ 國. 學. . We are a new market entry; therefore, the negotiation and credit among stakeholders. ‧. especially suppliers are lower than those existing ones. It might be difficult to get the optimal deals from farmers, packaging providers or logistic partners at the beginning.. y. Nat. io. sit. One of the biggest challenges for fresh vegetables and fruits online is the delivery time.. er. . Both from the supply side and to customer side. We need an efficient and low-cost in. n. al. Ch. i Un. v. managing the goods along the ways before and until delivering to customer’s hands.. engchi. 3.4.3. Opportunity of the Business . Thai consumer’s consuming behavior has been changing in the last decade that there are more and more demand for organic and healthy options because they become more selective in what they consume daily.. . Thai people in general especially millennial concern more on the surrounding issues. Environment and society problems are one of the major concerns in this generation. Business can be sustainable only when it provides a sustainable value to the society as well. Also, customers will have a better perception toward brand. 20 DOI:10.6814/NCCU202000439.

(34) . Government’s policy supports all agricultural activities in Thailand. At this moment, organic agriculture is on the focus. The government emphasizes on stability of farmers, efficiency of management, sustainability and increasing competitiveness with technology integration. Also, it encourages younger generation to become farmers and do agricultural business.. 3.4.4. Threat of the Business . Love Back is an online platform that is easy to duplicate by competitors especially. 政治大. those with greater power of negotiation with farmers. If it reaches the moment that. 立. they consider this market as valuable, it is very likely that they will create the similar. ‧ 國. 學. platform in the market.. Another threat to consider is trade barriers from big competitors. For some suppliers,. ‧. there is an agreement between them and big size company that they would not sell the. y. Nat. io. sit. rest of “unselected” products to other vendors or retailers. These products can be used. er. . for other purpose or purchased to different type of industry.. n. al. Ch. engchi. i Un. v. 21 DOI:10.6814/NCCU202000439.

(35) 學. ‧ 國. 立. 政治大. Figure 8: Love Back SWOT analysis. ‧. 3.5. Business Strategy. After SWOT analysis, to construct business strategy, TOWS Matrix will be applied to order to. y. Nat. n. er. io. al. sit. make better decision, seize opportunity and prevent threats.. i Un. v. There are SO-Strategy (Strengths and Opportunity Strategy), ST-Strategy (Strengths and. Ch. engchi. Threats Strategy), WO-Strategy (Weakness and Opportunity Strategy) and WT-Strategy (Weakness and Threat Strategy).. 22 DOI:10.6814/NCCU202000439.

(36) 立. 政治大. ‧ 國. 學 ‧. Figure 9: Love Back TOWS Matrix. SO-Strategy (Strengths and Opportunity Strategy). y. Nat. sit. Since we can offer lower price and the demand for organic products have been increasing, we. n. al. er. io. can use this point to promote Love Back as a differentiated organic provider in the market.. i Un. v. Also, there are many programs from the government to support agriculture business in. Ch. engchi. Thailand, for example, know-how seminars, fairs and events etc. We can seize this opportunity to get more network of suppliers and if possibly financial support from government. Also, the marketing campaign with the governmental body will save a lot of cost for us. ST-Strategy (Strengths and Threats Strategy) Creating strong brand awareness in the market is very important as mentioned in the five forces analysis. The factors that will set Love Back apart from competitors are reliability, quality, health and impact. 23 DOI:10.6814/NCCU202000439.

(37) It is also very likely that we will launch our own certification of quality after being in the market for a while. This will gain customer’s trust more easily and also farm suppliers would be more willing to become partners with us. WO-Strategy (Weakness and Opportunity Strategy) Continuing from ST Strategy that we will have a strong marketing strategy. One of the main purposes apart from differentiating ourselves from competitors is that we have to educate the customers. First, we need to let them perceive the existence of Love Back and our position in. 政治大. the market. Then, customers have to know that there are options that are cheaper and better. 立. for them. Lastly, they can be a part of creating the difference for our environment. Customers. ‧ 國. 學. need to feel empowered in order to create brand awareness and loyalty. The content marketing. ‧. will play an important role for us. In addition, we can become a partner with the government to have wider spread of brand awareness and save more cost on branding.. n. er. io. al. sit. y. Nat. WT-Strategy (Weakness and Threat Strategy). i Un. v. Love Back certainly has to constitute a proper agreement with farmers to be the sole and. Ch. engchi. exclusive partner with them in terms of handling misshape products as mentioned in the five forces analysis. Apart from using the “hard” power, we also need to implement the “soft” power as well in order to be sustainable. Continuing from becoming a partner with government, this will create a lot of brand awareness, not only among customers, but also the suppliers as well. We will become a more credited and reliable business partner for them. Also, customer relation is to be emphasized within Love Back’s employee’s attitude. Their satisfaction is the most important criteria in determining their performance. At the moment, organic product vendors in Thailand are rather inflexible and stiff in terms of customer relation. As a modern online platform, we will have to guarantee this century’s satisfaction 24 DOI:10.6814/NCCU202000439.

(38) criteria that are fast, reliable, credited, impactful and price-reasonable.. 3.6. Business Key Success Factors One of the major factors that Love Back can win in the market is that it can offer lower price of organic product when compared with the other competitors. This is the result of the cause that we can source cheaper raw materials than the others. Moreover, even the products might be considered lower grade in the market; nevertheless, the total nutrition and safety of consumption is completely the same. Therefore, we need to have a. 政治大. good story behind our business in order to be able to give customers better understanding of. 立. our position and product’s good points. Love Back will become the quality guarantor of these. ‧ 國. 學. lower grades of vegetables and fruits.. ‧. Also, we integrate technology into the business that enables customers to have a much more convenient shopping experience. Customers can place an order without going out to find the. y. Nat. subscription-based for daily consumption products.. n. al. Ch. er. io. sit. trusted products by themselves. We are also the first ever player in Thailand that offer. i Un. v. Another factor that can help Love Back succeed is to be a part B-Corp. B-Corp is a. engchi. certification, which guarantees businesses that can balance their profit and purpose. It is a good indicator to measure which company can be trusted and reliable to the society and the world. Becoming a B-Corp business will provide Love Back with a trustworthy position in the market. More explanation of B-Corp can be found in chapter 10.. 25 DOI:10.6814/NCCU202000439.

(39) 4. Marketing Research 4.1. The Objective of Marketing Research To understand the overview and concerns of related organic businesses e.g. farm, restaurants, retails, who will be our potential suppliers in the future To have proper target of supplier in order to have cooperation To define which group has potential to be customers To be able to position ourselves correctly in the market among customers and suppliers. 立. 政治大. To understand customer’s thought and awareness for organic product. ‧ 國. 學. 4.2. The Scope of Marketing Research. Love Back is a platform that connects between vendors and consumers. That is to say, our. ‧. main interaction parties are both those suppliers of raw material and end-customers. Therefore,. y. Nat. n. al. Ch. er. io. 4.2.1. Organic Businesses: Our Supply Side. sit. here we conducted marketing research both sides.. i Un. v. In this section, we conducted a quantitative data analysis among current players in the market.. engchi. In order to understand the current situation, we gathered all relevant information found concerning selected Thai organic companies. We put a lot of emphasis on interviews from those companies’ management so that we could get the firsthand experience and more authentic as much as possible. After having cleared the data we collected, we used QDA Miner Lite, free and reliable software that analyzes quantitative information. Selected Companies for Data Analysis Lemon Farm – the largest organic retailer in Thailand Harmony Life – complete organic farm with various product expansions. Also, own a. 26 DOI:10.6814/NCCU202000439.

(40) distribution: shop and restaurant in Bangkok Ohkajhu – the most successful organic restaurants in this era. Originally from Chiang Mai and have own farms. Dairy Home – a recognized organic dairy farm Sutee Organic Farm – a small organic farm in Chanthaburi province Uncle Ree – a small and modern organic farm in Bangkok The data comprises of 3 big players and 3 small players in the market to avoid biased analysis.. 政治大 conclude current Thai organic立 characteristics.. The 3 big ones are the main players in Thai organic markets. Thus, this should competently. ‧ 國. 學. Coding. The most important thing in conducting qualitative analysis is coding selected in the software.. ‧. Coding can be word or short phrases that researcher considers as relevant to the research. sit. y. Nat. question. In this case, we want to understand the current situation and concerns from. n. al. er. io. managing organic business. Hence, coding was concluded from main points of business. i Un. v. model canvas with the exclusion of customer parts as we will conduct another survey for that.. Ch. engchi. (Please refer to the questions that we focused researching information in the appendix) This will be combined with Word Frequency Tool to squeeze the most important information out as well.. 4.2.2. End Customer: Our Demand Side The sampling plans Sampling unit: People who live in Bangkok and nearby provinces Sampling size: 402 people Sampling procedure: Convenience sampling The duration: March 2020 27 DOI:10.6814/NCCU202000439.

(41) Research approach: Descriptive questionnaire approach (online survey) The questionnaire is divided into 2 parts The first part objective is general information of respondents. The questions ask about the demographics of respondents The second part of questionnaire asks about consumer behavior concerning organic product consumption e.g. reasons or motivations, frequency, preferred channels, factors of buying organic products, packaging and subscription-based attitude.. 政治大 4.3.1. Organic Businesses: 立 Our Supply Side. 4.3. The Result of Marketing Research. ‧. Lemon Farm. ‧ 國. analyzed.. 學. We will process company by company analysis. At the end, the overall market will be. sit. y. Nat. As already mentioned in the competitor analysis section, Lemon Farm is the largest organic. n. al. er. io. retailer. They have built extensive network with farmers nationwide. Lemon Farm aims to. i Un. v. become a social corporate, which bridges farmers and consumers together.. Ch. engchi. 28 DOI:10.6814/NCCU202000439.

(42) 立. 政治大. ‧. ‧ 國. 學 y. Nat. io. sit. Figure 10: Lemon Farm Quantitative Analysis. n. al. er. In the analysis, here is the percentage for each coding: Society 42.1%, Education 24.3%,. Ch. i Un. v. Labor 14.2%, Cost 9.7%, Logistics 7.4%, and Environment 2.3%.. engchi. The interpretation is that Lemon Farm put a lot of value on society or social impact by their operation. To do this, they need to educate both suppliers and consumers considerably. Main cost is from store operations and logistics or transportation, which is logical since they are just a retailer. Environment is just one part of their main goals. Harmony Life Created by a Japanese ex-expat, who lived in Thailand more than 30 years. They have their own farms in the northeast of Thailand where the mountainous climate allows them to grow organic vegetables. Moreover, they have other manufactures that transform organic raw. 29 DOI:10.6814/NCCU202000439.

(43) materials into other organic products e.g. noodles, dish washer etc. They export their products to many countries around the world.. 立. 政治大. ‧. ‧ 國. 學 er. io. sit. y. Nat. al. iv n C In the analysis, here is the percentage h eforn geach i U Environment 33.3%, Cost 27.9%, c hcoding: n. Figure 11: Harmony Life Quantitative Analysis. Distribution 27.9%, Health 10.8%. The interpretation is that Harmony Life put a lot of emphasis on environment in their business. They ensure that all the manufacturing process is organic and reliable. Since the beginning of the business, Mr. Sho Oga wanted to create a better environment for Thai agriculture and reduce the use of chemicals in everyday life. Cost and distribution channels are the main concerns since organic vegetables need a lot more attention and cost of taking care are higher. Also, they have a lot of distribution channels especially in department stores. This facilitates them to have more product line extensions. 30 DOI:10.6814/NCCU202000439.

(44) Ohkajhu Consider as the most popular organic concept restaurant in Thailand with long queue every day. Beginning with organic farm in Chiang Mai, the north part, then expanded to Bangkok. Ohkajhu has been expanding with constantly high demand. They have their own farms and also cooperate with other farmers as well.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 12: Ohkajhu Quantitative Analysis In the analysis, here is the percentage for each coding: Educate 29.5%, Labor 20.6%, Distribution 18.4%, Cost 13%, Health 12.6% and Logistics 5.9%. The interpretation is that they need to educate a lot for all related stakeholders: customers, suppliers especially the customers because Ohkajhu became popular from the concept “from farm to table”, which they let customers see the process of picking up vegetables directly. 31 DOI:10.6814/NCCU202000439.

(45) serving to their plates. This took a lot of time until it has reached the networking effect point that everyone kept sharing the restaurant’s unique point. With the popularity of the restaurant, it is rational that they need a lot of staff for its operation. Staff came with a lot of cost for them. Moreover, they are under fast expansion with many branches, so the distribution process plays a very crucial role in operation as well. This comes along with logistics cost. High cost in production is also inevitable when planting organic vegetables as greater care is required. Dairy Home. 政治大 weather is chillier. Dairy Home 立 owns a restaurant next to their farm used a distribution. One of the most noted organic dairy farms in Thailand, located in the northeast part where the. ‧. ‧ 國. 學. io. sit. y. Nat. n. al. er. channel as well.. Ch. engchi. i Un. v. Figure 13: Dairy Home Quantitative Analysis. 32 DOI:10.6814/NCCU202000439.

(46) In the analysis, here is the percentage for each coding: Cost 31.7%, Environment 20.8%, Society 16.6%, Educate 16.2%, Health 7.2%, Distribution 5.6% and Labor 1.9%. The interpretation is that cost has been a heavy burden for Dairy Farm since the beginning. Dairy business has been hit hard by Thailand and Australia-New Zealand FTA9, which allows dairy products from Australia and New Zealand to compete in Thai market at a very much lower price. The owner put a lot of value on environment for his business. This can be identified in his plan to change his farm into a touristic place and he tried to emphasize on the. 政治大 dairy industry, they had to educate 立 customers extensively on the advantages of local organic importance of society as a whole by going organic. Due to weaker position of authentic Thai. ‧. ‧ 國. their business.. 學. dairy products. Lastly distribution and cost in operation has also been a concern in running. Sutee Organic Farm. sit. y. Nat. Sutee Organic Farm is a medium organic farm located in Chanthaburi, east part of Thailand. It. n. al. er. io. is owned by a single owner, Sutee himself. His farm’s products have been in demand for various retail chains e.g. lemon farm.. 9. Ch. engchi. i Un. v. Free Trade Area. 33 DOI:10.6814/NCCU202000439.

(47) 立. 政治大. ‧. ‧ 國. 學 y. Nat. io. sit. Figure 14: Sutee Organic Farm Quantitative Analysis. n. al. er. In the analysis, here is the percentage for each coding: Educate 34.7%, Environment 23.7%,. Ch. Cost 23.1%, Health 15.5% and Distribution 2.9%.. engchi. i Un. v. The interpretation is that Educate coding is the highest because he had to educate his local customers a lot when he started his business. Normally organic products should not look too beautiful especially when compared with those raised with fertilizers that look too good in the market. He had to educate that the bad-looking shape of fruits are actually better for customers’ health. His value in doing this business is environment and health concerns, to which most organic farmers share the value. Cost is a part of major concerns since organic products need better care.. 34 DOI:10.6814/NCCU202000439.

(48) Uncle Ree Uncle Ree is a small organic farm located in Bangkok, which is quite unique since Bangkok is a big metropolitan city with few natures. It is also owned by a single farmer, Ree himself. This farm was initially a farm for earthworm production. This came from Ree’s idea and concern that nowadays there is too much food waste in the city. Earthworm can be a good and natural solution for dissolving food waste in the city. After that, he has also expanded to plant organic vegetables as well. This farm is renowned for integrating technology with farming. 政治大. operation. It has partners with technology firms and developed application and software. 立. together.. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 15: Uncle Ree Organic Farm Quantitative Analysis. 35 DOI:10.6814/NCCU202000439.

(49) In the analysis, here is the percentage for each coding: Cost 30.2%, Society 26.8%, Environment 16.6%, Educate 11.4%, Distribution 6.9%, Health 6.4% and Logistics 1.7%. The interpretation is that cost in operation is the main concern for them, a common ground for most of small organic farms. Uncle Ree has high percentage on values: Society, Environment and Educate due to the owner wanted to spread the modern and organic farming to the society as much as possible. He opened regular courses for urban people to come and learn about organic farming. Also, similar to other organic farms, health plays a significant role when it comes to the value of the farm.. 立. ‧ 國. 學. Overall Analysis. 政治大. This section gives the overview of understanding and concerns in running organic businesses.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 16: Overall Supply Side Quantitative Analysis 36 DOI:10.6814/NCCU202000439.

(50) In the overall analysis, here is the percentage for each coding:. 立. 政治大. ‧. ‧ 國. 學 er. io. sit. y. Nat. Figure 17: Overall Supply Side Quantitative Analysis Percentage. n. al. Ch. i Un. v. It can be concluded that cost is the most concern and burden in running an organic business. If. engchi. we can lower the cost down, this will give us an advantage position in the market. Moreover, it is rather common that organic business has to educate customers about the advantages of organic consumption. If awareness does not exist, it is likely that demand would not happen either. Also, businesses share value in society, environment or health, but health has been emphasized least in the market now. We can take this knowledge and highlight more on health-related campaign. Lastly business expansion will occur more costs e.g. labor, distribution or logistics, which has to be put in account as well.. 37 DOI:10.6814/NCCU202000439.

(51) 4.3.2. End Customer: Our Demand Side Part 1: General Information of Respondents (Google Form & SPSS) 66.9% of respondents are female, 33.1% are male.. Figure 18: Gender Survey Result. 政治大 20.4% and the third group 立 is 51-60 years old with 13.2%.. The major age group is 21-30 years old with 41%, following by 31-40 years old with. ‧. ‧ 國. 學 er. io. sit. y. Nat. n. a lFigure 19: Age Survey Result iv n Ch U slightly different from those e n gdegree The numbers of people with bachelor c h iis 46.5%, with master degree at 44.3%. High school graduates are 7.5%. Only 1.7% finished only elementary school.. Figure 20: Education Survey Result. 38 DOI:10.6814/NCCU202000439.

(52) 70.6% have full-time jobs with stable income: company employees (31.1%), government officials (21.1%) or self-employed (14.7%). 29.4% do not have full-time jobs with stable income: retired people (9.7%) or students (19.7%).. Figure 21: Occupation Survey Result. 學. ‧ 國. 立. 政治大. The monthly salary range is varied. 19.2% have 20,001-30,000 Baht. 18.9% have. ‧. 30,001-40,000 Baht. 17.7% have less than 20,000 Baht. 13.7% have 40,001-50,000. sit. y. Nat. Baht. 12.4% have 50,001-60,000 Baht. 10% have more than 70,000 Baht and only. io. n. al. er. 8.2% have 60,001-70,000 Baht. It shows that all groups consume organic products.. Ch. engchi. i Un. v. Figure 22: Salary Survey Result. 39 DOI:10.6814/NCCU202000439.