Secondly, Thailand's market also offers a good platform for the proposed business model. Farmers have previously had to get less money from rubber farming: they have been forced to sell their sap quickly at a lower price because they cannot store the product. This business model promotes the growth of the business.
B. Target Customers in Thailand
The target customers in Thailand are the commercial businesses purchasing sap for industrial use. The business will supply sap to these ventures at a cost when the market allows the business to make some profits. The business will also be supplying the sap to other private companies that may demand the sap. The competitions that the business will face include the dominant companies, which have previously engaged in the sap industry.
V. Marketing and Sales Plan
A. Marketing Strategy
The success of this business plan will significantly depend on the marketing strategy that will be employed by the business. This is because the business seeks to make profits and expand. The two depend on the volumes of sales of sap that the business will make. Consequently, employing an effective marketing strategy is paramount to ensure that the business can sell more sap to the identified sap markets. It is important for the management team of this business plan to employ effective marketing strategies that will ensure that the stored sap, which is ready for sale, gets good market and sells at a good price. This will play a critical role in ensuring that the business remains in the course of sustaining its profit margins.
For this business, the main purpose of the marketing strategy is to promote the sale of sap to the ripe markets. The marketing strategies to be employed include undertaking promotional activities such as advertizing in the media about the quality sap that is available to the market. This will play a critical role in maintaining an informed market, thus boosting the demand for sap from the business. The other strategy that will be employed is branding the sap sold by the business. Besides, the sap will be well packaged, named, and advertized as a good product for the markets. Branding will play a critical role in pushing up the demand for sap in the markets.
B. Pricing
Pricing will also play a critical role in ensuring that the proposed business plan is a success. This is because the proposed business is involved in the purchase and sale of sap into the markets when the market is ripe. In other words, pricing plays a critical role in both the buying and the selling processes of management. Good and market sensitive pricing mechanisms would play a critical role in ensuring that the business is not only making profits, but is also able to sustain the profits in the industry. It will make the business effective in conducting its trade transactions on sap while operating optimally on a good profit margin. This is critical for the success of this plan.
One of the pricing strategies that will be employed by the management of the proposed business plan is pricing the sap for purchase according to the prevailing market conditions. Moreover, the management of the business has a critical role of ensuring that the prices of the sap that is purchased and sold is at a given market rate. Sometimes, this is not an easy process because various market changes occur. However, the management has still to consider the aggregate figures of pricing sap at various seasons so that the business can make profits.
For instance, in the last about five years, the figures for the sap industry that may determine the pricing of sap are as follows. First, one Rai may hold an estimated 100 trees and 100 trees may offer an approximate 16.66 kilo a day. For about 20 days, the trees may offer 333.2 kilo of sap. The farmers often sell a kilo of sap at 60 baht: a farmer has to be paid an estimated 19,992 bahts per month according to these calculations. The proposed business may purchase this amount of sap from various farmers. This means that the management team has to negotiate good buying prices for the sap, and sell the sap at a higher price when the market is ripe.
C. Sales Plan
The sales plan for this proposed business plan is a critical aspect of business that has been well addressed in this plan. The sales plan of this business is such a critical aspect of business by the nature of business that the company will engage. The proposed...
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