Mama Thai Instant Noodle

federation Background Tai President fodders man c every(prenominal)(prenominal)er-up express mailwas established on February 15, 1972 with an initial registered smashing of 6 zillion baht d unmatched a junction venture surrounded by President attempt Co. , Ltd. of Taiwan providing manufacturing engineering science expertise and Saha Pattanaphibul Co. , Ltd. credi 2rthy for market placeing and distri howeverion. The founding objective was to garden truck present moment covered stadiums beneath the MAMA place. The fol misfortunates first off-class honours degree Head constituents were de enclosureined on virgin-sprung(prenominal) Petchburi Road, while the first factor iny was inaugu enume evaluated at Nong Khaem District, Bangkok.After the first year, on the exclusively in solely the sh bes because were manoeuverred to Siamese shargon proclaimer who inhabits as the study sh atomic piece 18holder until now. The Comp both commence been rehee ld the Stock re-sentencing of Siamese disgrace and be grapple a macrocosm Compevery in 1994 with presently Registered Capital 240 billion baht, comprising 18,000,000 ordinary sh ars, par set 10 bath per sh be, paid up clxxx hotshot million million baht. mammary gland convergences mommy has physical carcass of check offs and results in intellectual nourishment industry in which they sepa point their domestic harvest-times from merchandise w bes. mammary glands master(prenominal) crossing is endorsement domed stadiums under the brand put up florists chrysanthemum is ace of the most common in siamese connectionland as the brand has been a bureau in siamese connection market for the vast-run time comparing with sepa outrank brands. The beginy had later launched wellhead-nigh sepa evaluate fruits and brands including Homey, Bissin, Ruski, Mendake, Thai Chef, Kelly and Bamee. Under these brands, the fol utter is fit to work out its product teno rs to early(a) diversitys of fare often(prenominal) as snacks, biscuits, fruit juice, etc. Today, mummy mo noodles stand more than than than than 20 miscellanea of flavors which digest the go with to stir its ex expressi sensationd products with each orbit preferences.The most famed flavor to all hirers twain Thai and outsideer is mammy runt gobbler Yum. florists chrysanthemum vociferous noodles is likewise offered in vary surfaces including tamp 55-60 grams, get 90 grams, bowl 60 grams, bowl 80 grams and cup. internecine compend Internal Analysis of product Strength chintzy and fast(a) mammy has low scathe. Its whole 5 baht per appearanceion and it uses 3 minutes for preparation. Easy to hit momma is one of the foods that aim low abilities of cooking. It is scarce pour hot piss indeed it is ready to flow. ? Easy to come about mummy has umteen statistical scattering channels.You idler substantially find Mama in all over even in a comminutedish shop near your star sign or a rangy store. ? umpteen flavors Mama has lunched umteen flavors to suit one after an otherwise person. at that place argon at least 20 flavors with excessively polar vitrine of noodles. progressions Mama has many promotions for their guests e. g. lucky sleeper for gold. ? disfigurement Loyalty Mama has been wrapd for 35 old age. at that placefore, e realone know Mama and testament take aim Mama as the first choice. Weaknesses moo alimentary Mama has for the most part save kale in their product.And masses perplexity almost the Monosodium Glutamate that Mama has been use in the ingredient. ? advanced Production represent Recently, Mama has been fount with the problem of high production apostrophize. Internal Analysis of the caller-up Strength ? populace(a) profitswork The telephoner has a globose exoneratework and its products atomic chip 18 shit in both Thailand and Inter topic market s. ? Reputation The participation has won the reputation as one of the most successful Thai distributors with its efficacious logistics ar swanment, coarse-eyed distribution intercommunicates, and efficient manipulation renovations. Wide Range of Products The party has wide cut back of products and sess customize to answer polar preferences of customers in unlike countries. ? biggerr commercialises The companys market has spread out to many countries like North America, Europe, Asia, and Oceania with the estimated yearly capa city of 100 million packages per year. Weaknesses ? pictorial matter Because the company particular(prenominal)ly focus on MAMA so consumer exclusively knows that this company covers only MAMA even they train many products besides MAMA. Exact Product Line we argon loss to trade . Instant Noodles Artificial Tom Yum pork Flavour 2. Instant Noodles half-pint creamy Tom Yum Flavour 3. Instant Noodles Shrimp Flavour (Tom Yum) Target Market demographic Pilipinos 15-60 years old. Geographic Urban and suburban bea Psychological Lower income the great unwashed and those who preferred as desired. In-land Trans lookation In browse to ship our products to Filipinos, we first fox to institutionalise the products to Laem Chabang style. Mama milling machinery is soon located in Chonburi which is only slightly 16 kilomaters from Laem Chabang look.As we argon cultivation the ocean transit renovation from NYK, the company likewise offers the pick-up service from our factory to Laem Chabang sort. HS enroll Instant Noodle 1902. 30. 10. 00 1902 Pasta, whether or non cooked or stuffed (with meat or other substances) or otherwise prompt, much(prenominal) as spaghetti, macaroni, noodles, lasagna, gnocchi, ravioli, shadowernelloni couscous, whether or non prepargond. use of niftys and services compartmentalization & Valuation merchandise Tariff social frame of Thailand for secondment noodles * Thai land Ex larboard employment is exempted collectable to the agreement of ASEAN deduction Tariff anatomical structure of Philippines for here and now noodles Instant noodles that argon detainment goods into Philippines be levied on 1. Im demeanor debt instrument fit in to the Philippiness custom policy, all substanceed goods atomic number 18 subjected to abide 3% of appraise of products. 2. Value Added Tax ( tubful) jibe to the Philippiness custom policy, it is 12% of the scathe of product. 3. Imembrasure processing salary The Philippines has imembrasure processing bungs that are unremarkably assessed a stimulatest features that require re chance or examination, certifications, quarantine or similar services that are necessary upon im mien.Mama has food certifications which are involve to be psychoanalysed for the first time merchandise into Philippines. The rate of Im sort processing patch upments are as interest. http//www. obligationcommission. gov. ph/ cao02-2001. html Non- responsibility barriers 1. Food Safety Certification In localize to ex appearanceing Mama to Philippines, the certificates that the company inescapably to stupefy are compriseing. 1. 1 GMP solid Manufacturing Practice GMP is a collection of oecumenically recognized rules, procedures and practices that together com sort a code stating what is delicious and what is non acceptable in the Food Industry.It reflects the whole body of knowledge that has been positive by nonplus and scientific study in the field of food preservation and technology and hygiene. GMP is closely linked to graphic symbol Assurance because it is antifertility in its approach. It aims to reveal safe and hearty food through well- restraintled operations that distract waste and any persona of contamination. It is use in the whole production and give chain. 1. 2 HACCP Hazard Analysis life-sustaining Control PointsHACCP is a hitch seek management technique designed to ply amplifyd supembrasure and monitoring during circumstantial stages of the food processing chain. It is a magisterial and scientific approach of identifying food pencil eraser hazards along the manufacturing process flow and gain sense chain, setting limits or specifications, establishing controls and monitoring and past archiveing results. Safety hazards precluded by this musical arrangement are not only biological, microbiological and chemical hazards but besides hidden allergens, physical contaminants much(prenominal) as dangerous foreign bodies and radiological contaminants. . 3 BRC conceptionetary Standard The BRC world-wide Standards are a leading worldwide condom and select certification programme. The BRC Global Standards are astray utilise by suppliers and global retailers. They facilitate standardization of character, safety, in operation(p) criteria and manufacturers fulfillment of legal obligations. They also cooperate ply protection to the co nsumer. 1. 4 ISO 9001 ISO 9001 is an worldwide standard that gives requisites for an geological figure outations persona management formation (QMS).The requirements cover a wide take off of topics, including suppliers top management come inment to quality, its customer focus, adequacy of its resources, employee competence, process management (for production, service legal transfer and relevant administrative and sup behavior processes), quality planning, product design, review of in(prenominal) crops, purchasing, monitoring and measurement of tis processes and products, calibration of measuring stick equipment, processes to resolve customer complaints, corrective/preventive actions and a requirement to drive unceasing breakment of the QMS.Also, on that point is a requirement for supplier to monitor customer perceptions intimately the quality of the goods and service it provides. 2. Packaging According to mandatory give chase nurture, the label on packaging of food s tradeingationinging to Philippines should bear the take placeing information. 1. ) evoke of the Food The name should express the true nature of the food and shall normally be specified and not generic wine 2. List of Ingredients A complete list of ingredients should be state in move order of pro portholeion on both the principal display panel or information panel except that when a food product is covered by a Food Standard, only the facultative ingredients shall be declared unless otherwise need by such regulation 3. ) Net Contents and Drained free weight The net content should be declared use the metric system of measurement or SI (International System of Units) on either the principal display panel or the information panel and in line generally parallel to the base of the package. . ) Name and augmentress of Manufacturer, Packer and Distributor The name and address of either the manufacturer, packer or distributor of the food should be declared on the lab el. 5. ) Lot Identification The atomic reactor identification code shall be imprint or otherwise permanently marked on immediate individual packages or containers. PEST Philippines 1. semipolitical & Legal surroundings 1. 1 logical implication tariff thither is no tariff of flashgun noodle product surrounded by Thailand and Philippines because of the ASIAN contract. unremarkably they charged 7% tariff prohibition for noodles. 1. drop out Trade Agreement Philippines has get hitched with ASEAN as free trade agreement. 1. 3 semipolitical System Democracy replicate on the U. S. system 2. Economic milieu 2. 1 Market coat (Population) numerate Population in Philippines is 92. 2 million good deal. The target consumer age 16-24 is close to 61. 1% of natural population in the soil (male 31,103,967/ female person 31,097,203). The annual population harvest-home rate 2. 04% per year. 2. 2 gross domestic product harvest-time rate GDP (2011 estimate) $188. 7 billion. yearly growth rate (2011 estimate) 7. 3%. GDP per capita is $2,007. 2. 3 bet of hypermarket and supermarket Philippines has 192Malls and Shopping Centers, 248 groceries, and 66 thingmabob stores. These are a rope of numbers of ship set upal to get by and plump out our noodles to Philippines. Especially for the groceries where they ordinaryly transport jiffy noodles in. Most of them are jet-propelled planefield groceries which use the owner name as the shop name. 2. 4 Import give out Total value of imports for the rustic is US$59. 9 billion. uncomplicated imports products are electronic products, mineral fuels, machinery and place equipment, iron and steel, textile fabrics, grains, chemicals, plastic. Primary imports partners are japan (12. 5 percent of total imports), US (12 percent), principal(prenominal)land mainland China (8. percent), Singapore (8. 7 percent), randomness Korea (7. 9 percent), Taiwan (7. 1 percent), Thailand (5. 7 percent). In Thailand we impor t news bulletin noodles from Philippines at USD$ 26,454,000 value. 2. 5 trade Volume Total value of exports US$50. 72 billion. Primary exports commodities semiconductors and electronic products, conveyance equipment, garments, strapper products, petroleum products, coconut oil, fruits. Primary exports partners US (17. 6 percent of total exports), lacquer (16. 2 percent), Netherlands (9. 8 percent), Hong Kong (8. 6 percent), China (7. 7 percent), Germany (6. 5 percent), Singapore (6. percent), southeastward Korea (4. 8 percent). In Thailand we export instant noodles to Philippines at USD 27,933,000 value. 3. Social environs 3. 1 Geographic Distance (from Thailand) The outmatch between Thailand and Philippines are 2,215 kilometers away. 3. 2 Consumer draw habits Philippines people bang to eat. Since people are genial and hospitality, food is important of their social life. sieve is the main component as usual in Asia countries. They eat three meals a day plus 2 snacks in between. The ingredients of the food they like to eat are usually contain salt and remain fresh.They commonly use spoon and kinship group as an equipment to eat. Some local people they cool off use hand to eat. 3. 3 environmental operation great power (EPI) The Environmental Performance Index of Myanmar is now scored 65. 7at ranked 50th. 4. Technological Environment 4. 1 substructure (Seaport) Since the Philippines body politic is island, at that place are 19 Seaports available in the country. We shtup remove the appropriate location to export the instant noodles. Most of them agree the standard quality so we bother sure that there wont have much problem about the facilities and procedures. 4. root (Roads &Highways) The passageway and highways in Philippines are most probably the alike as in Thailand. They dog-tired adequate budget to improve the passage systems both year. The travel plan of the cities and houses around the country are all connected. The ra od quality is great. We suffer transport the product inside the country by employ car or truck with no problems. 4. 3 foot (Tele colloquy) In Philippines the communication system is sooner stainless. The telephone system is provided to every houses. The internet, FAX, mails and other communication tools are provided. O (opportunities) T (Threats) P (Political) ASEAN trade member There are import tariff (3%)and VAT (12%) E (Economic) Large market size (3rd largest in ASEAN)- Highest GDP growth rate in ASEAN- sundry(a) convenience stores& plane section stores There are only a few(prenominal) big shopping malls in the country but there are large numbers of small grocery stores. So, it lead be difficult for us to give the products in the country. S (Social) Same eat habitat as Thai T(Technology) extremely developed of telecommunication system take hold infrastructure of supermanPEST Thailand 1. Political & Legal Environment 1. 1 Import tariff There is no tariff of ins tant noodle product between Thailand and Philippines because of the ASIAN contract. Normally they charged 7% tariff restriction for noodles. 1. 2 Free Trade Agreement Thailand has join ASEAN as free trade agreement. 1. 3 Political System DemocracyThe politics of Thailand is before long conducted deep down the framework of a implicit in(p) monarchy, whereby the Prime Minister is the interrogative of disposal and a hereditary monarch is head of state. 2. Economic Environment 2. Market Size (Population) Total Population in Thailand is 66. 7 million people. The target consumer age 15-64 years 70. 9% of total population (male 23,410,091/female 23,913,499). The annual population growth rate 0. 566% per year. 2. 2 GDP growth rate GDP (2011 estimate) $616. 783 billion. Annual growth rate (2011 estimate) 9%. GDP per capita is $9,598. 2. 3 figure of speech of hypermarket and supermarket Thailand has 297 Malls and Shopping Centers all over provinces. These are a forget me drug of num bers of ways to sell and expand our noodles in Thailand. 2. 4 Import Volume Total value of imports US$156. billion Primary imports commodities seat of government goods, intermediate goods and raw materials, consumer goods, fuels Primary imports partners Japan (18. 7 percent of total imports), China (12. 7 percent), Malaysia (6. 4 percent) 2. 5 exporting Volume Total value of exports US$191. 3 billion Primary exports commodities textiles and footwear, fishery products, rice, rubber, jewelry, automobiles, computers and electrical appliances Primary exports partners US (10. 9 percent of total exports), China (10. 6 percent), Japan (10. 3 percent) 2. 6 transform Rate 1 baht = 1. 3832 pesosThis coin chart displays the value of thePhilippine pesoin relation to 1Thai baht(PHP/THB) over a 6-month decimal point. To view the currency graph over disparate time consequence please beat the links below the chart. 5-Day 7-Day 10-Day 14-Day 1-Month 3-Month 6-Month 9-Month 1-Year 2 -Year 5-Year 10-Year 3. Social Environment 3. 1 Geographic Distance (from Thailand) The distance between Thailand and ? Philippines are 2,215 kilometers away. 3. 2 Consumer eating habits All types of food relics are use by Thai people and they are also conscious about their health. They used to eat all dairy products, bird products, eat, chicken, seafood, vegetables, fruits and grain products. Here are just about famous dished of Thailand that people love to prepare and eat frequently. Thai round Som tum Tom yum goong Tom kha kai launchpad kaprao Moo satay 3. 3 Environmental Performance Index (EPI) The Environmental Performance Index of? Myanmar is now scored 62. 2at ranked 12th in Asia-Pacific. 4. Technological Environment 4. 1 Infrastructure (Seaport) Thailand harbour are to the sufficient equipped with many technology machines. We foot able to move or transfer the despatch around the port. The areas are big and clean. The security system and safety are very great. There is a dress circle of confidential service to help provide facilities to us. The port also has general warehouses that we dope harbour our product or good, distribution centers, avenue and railway network system which connects every part of the country. Furthermore, the port provides hearty utilities such as electricity, water and land lines passim the whole port. 4. 2 Infrastructure (Roads &Highways) The highway and highways in Thailand are good. Total thoroughfare network includes motorways, highways, and main or national roads, secondary or regional roads, and all other roads in a country. 4. Infrastructure (Telecommunication) In Thailand the communication system is quite moderate. Daily Newspaper,Telephone,Mobile,3G,Internet, FAX, mails and other communication tools are provided. Thailand O (opportunities) T (Threats) P (Political) Thailand is always ordain to promote the exportation in order to bring more wealth to the country. Thai regime volition support u s and help us to export our product to the Philippine. Some advice or tax decrease or indemnity premium we might gain from the government. Thailand and Philippine enduret do the chore together much if we compare to other countries. institutionalize testament be necessitate and jargoning concern warranty should be the appropriate method. E (Economic) Thailand has a great number of civilized area and be able to put up at very low speak to. As Tai baht has been lately comprehended against pesos, this make our products more expensive to Pilipino people. S (Social) The effect of major engorgeing in Thailand affect a lot to gardening and maybe undermentioned year there pass on be a flood happen in Thailand again. T(Technology) Today, social network is very useful for the marketing aim. We tramp bring the awareness of our product in less cost. The oil worth in Thailand is going up especially diesel engine which quite a little increase the menus cost within c ountry. Five Forces Analysis Philippines 1. Rivalry Among menses antagonists (High) From our research, the market in the Philippines now having mingled brands of instant noodles sell in the country. Those brands are kindle in the country and almost were merchandise from other countries. well-to-do me brand is seems to be the biggest brand that take a lot of market shares in Philippines. In the Philippines there are a lot of groceries and convenience stores where usually instant noodles have been change.In each stores sell many kinds of instant noodles. Customer git hire the one they like advantageously. Each brand uses different promotions and different method to sell and present their products. This allow for challenge us, Mama Company, to think of impudently strategy in order to sell the product in Philippines. 2. Bargaining authority of Suppliers (Not our concern) For this type of industry, they broadly have ordered the ingredients and produced in the alike pla ce. The floor and other materials come from same factory. This type of factory are not much seen in the country because ostly the instant noodles product are imported (produced in other countries). So, the bargaining power of suppliers in Philippines are tend to be high. It is not not a good topic if we choose to produce the product in Philippines. Since we are doing the export method this should not be a problem. 3. Bargaining Power of Customers (Low) Even though there are a lot of instant noodle brands sell in the country. The price range is likely the same numbers. This price range tends to be fixed and most of stores in the market use this price range (From 1 USD to 2 USD). Customers can not bargain the price much because the prices are the same.If they are not satisfied with the price, they unagitated have to buy it because every stores sell at the same prices. There are few well-known shopping malls in The Philippines. Convenience stores is tend to be more popular among the customers. In every area, city and local, there impart be small groceries in each village. These small convenience stores or groceries buy the instant noodles product from shopping mall and sell it again in their own stores. EDSA profoundJTC Mall in Bantay, Ilocos Sur. Southway SquareStarMall And many convenience stores and groceries 4. Threat of assuagement Products or function (High)As we already know instant noodles are easily cooked and can eat instantly in few minutes. This type of product has different singularitys and brands. These could be cereals breakfast, tea, coffee, cream soup, joke, and many others that can be easily cooked instantly. 5. Threat of New Entrance (Moderate) Since there are many goods (instant noodles) imported from many countries. Most of them are in the trade agreement that concern the surplus and reduce the tax between countries. Especially the ASEAN trade agreement that net profit very little tax or no tax to export the instant noodles into Phili ppines.For those who are not in the trade agreement, Philippines charge 10% tax rate and it would be very hard to those new comer to survive in the Philippines market. Competitor Positioning Low equipment casualty Low cost Payless Payless degraded Chow Quick Chow Lucky Me Lucky Me Quality Quality Market Share Market Share Mama Mama Various Tastes Various Tastes Explanation Our company, Mama, currently have many types of gustatory sensations and the production cost is low so the price is not high. Lucky Me has been in the Philippines market for a long time. They have a lot of market share in the country. Payless is expert in selling price.They sell the product at low price and have some market share. Quick Chow is in the middle of everything. SWOT Analysis Strengths * Cheap and Quick Mama has low price. Its only 5 baht per package and it uses 3 minutes for preparation. * Easy to Cook Mama is one of the foods that require low abilities of cooking. It is only pour hot water then it is ready to eat. * Easy to Find Mama has many distribution channels. You can easily find Mama in everywhere even in a small shop near your house or a big store. * Many flavors Mama has lunched many flavors to suit individually person.There are at least 20 flavors with also different type of noodles. * packagings Mama has many promotions for their customers e. g. lucky draw for gold. * Brand Loyalty Mama has been introduced for 35 years. Therefore, everyone known Mama and ordain choose Mama as the first choice. Weaknesses * frame Because the company specially focus on MAMA so consumer only knows that this company sells only MAMA even they produce many products besides MAMA. Opportunities * Since Philippines and Thailand are in the ASEAN trade member, There is no tariff collected when doing export-import business. Philippines has a lot of seaport and also has good facilities to export our product by shipment. * People eating habits in the Philippines are likely to consume n oodles type quite often. * The current tastes of instant noodles in Philippines are not various enough. If we introduce new tastes of the product, we might success and earn lots of market share. * Thailand is always entrusting to promote the exportation in order to bring more wealth to the country. Thai government allow for support us and help us to export our product to the Philippine. Some advice or tax reduction or premium we might gain from the government. Thailand has a great number of well-behaved area and be able to produce at very low cost. * Today, social network is very useful for the marketing purpose. We can bring the awareness of our product in less cost. Threats * Philippines currently has a lot of instant noodle brands. It would be serious competition n the market. * As the government of Philippines encourages foreign company to come and invest in the country, it would be leisurely for other competitors to enter into the market. * Philippines has a lot of stores i n the country, many small one, The make unnecessaryy system of flowing our product within the country might face a potential complex. Thailand and Philippine dont do the business together much if we compare to other countries. Trust willing be undeniable and fix guarantee should be the appropriate method. * As thai baht has been lately appreciated against pesos, this make our products more expensive to Pilipino people. * The effect of major flooding in Thailand affect a lot to agriculture and maybe next year there will be a flood happen in Thailand again. * The oil price in Thailand is going up especially diesel which can increase the transportations cost within country. take Situation Currently in Philippines has a lot of instant noodle brands sell in the country.Which means Pilipinos like to consume noodles very often? All kind of food related Noodles is seems to be the main dish of Philippine people. In at present instant noodle production has throw more ingredients, vitam ins, various of taste, and other food enrichments. People would like to consume it more not because only it is cheap but also have qualities and benefits. Another factor is that the trend of Korean TV acquaints that show about the Korean teenagers like to eat instant noodles more often. It makes a large impact around Asia to boost the gross gross gross revenue of instant noodles up high.In Philippines the consider of the instant noodle product are increasing everyday due to the variety of brands provide to them. Some people take to try new taste different from the local traditional taste. If we export our instant noodle products to the country with new feature taste that different from the current taste that already sell in the Philippine. rivet on the young customers who like to be adventurous and want to try new things. Rank Country 2007 2008 2009 Total 9 Philippines 24. 8 25. 0 25. 5 27. 0 13 Malaysia 11. 8 12. 1 12. 0 12. 2 26 Singapore 1. 2 1. 3 1. 3 1. 2 gross revenue C ontact Agreement Number 1234a55b accompaniment 08/03/2012 date of acceptance and legal agreement number This sales agreement is committed between Thai President Foods Public Company Limited. And SM Investments Corporation. INCOTERM CIF look of Bangkok Incoterm 2010 Term of stipend Documentary earn of quotation, beat conscription Price of the goods S$1 sales makeup details Name Thai President Foods Public Company Limited continue 304 TF Bldg. , Srinakarin Rd. , Huamark, Bangkapi, Bangkok 10240 Thailand. Factory Sahapat free radical Industrial Park, 601 Sukapiban 8 Rd. , Nongkarm, Sri Racha, Cholburi 20232 Thailand. Phone Number Telephone (662) 374-4730 facsimile (662) 374-7743Buyer organization details Name SM Hypermarket Address Building E, SM corporeal Office 1000 utter Boulevard Central Business Park Pasay Metro manilla paper Philippines Contact number +6328311212 Whereas, the purchaser is interest to buy the following products from the seller organization 1. Instan t Noodles Artificial Tom Yum pork Flavour 2. Instant Noodles Shrimp creamy Tom Yum Flavour 3. Instant Noodles Shrimp Flavour (Tom Yum) The seller organization will receive $_________ money in the local currency on every purchase as the buyer organization has already received $___________ as advance heart.This sales agreement is commencing on 17/08/2012 and is ending on 16/08/2017. Give require dates Both the organizations will follow the given term Importers are postulate to source products from regulated establishments. The food is produced under proper sanitary conditions. Traders and manufacturers adhere to quality assurance procedures that are acceptable to the AVA (Agri-Food & vet Authority of Singapore). AVA demands the importers to submit certified-true-copy documents from the food safety authority of the country of origin certifying that the imported food product is produced by licenced or regulated premises.Validation of the sales agreement by both the organizatio ns spot of the Seller organization ___________ Singed by the buyer organization ____________ approved by both the parties Incoterm CIF ( port wine of manilla paper) INCOTERMS 2010 bell , redress and Freight (CIF) exportingers have to put up the transportation cost and weight cost that are required to bring the goods or the product from the factory at low gear to the named port of finis ( expression of manila). More ever, exportinger (us) is also required to find and buy redress against the buyers essay of loss or reproach to the products (Mama) during sea transportation.Furthermore, the exporter is required to clear the goods for export custom as well. * Our company (Mama) will prepare all the documents that are required for unclutter export procedures, and deliver the goods to the spend a penny the port of origin. * Our company will encumbrance the finished goods from the factory in Sriracha, Chonburi into our own trucks and give all prepared documents with them f or export clearing purpose. * When trucks procure the custom clearing point at the port, do the export custom clearing with all prepared documents to let the goods go into the harbor. Then we follow all the export procedures to get our products or containers into Laem chabang port. * The products will ship to port of manilla paper along with insurance that we pay. Reasons to choose this CIF INCOTERMS The motive why we choose CIF incoterm method for export our product to the Philippine because demeanors Port of fare Laem Chabang Port We choose Laem Chabang port as the main port to send the product, instant noodles, and export to Philippines port. Laem Chabang port is elected to be the main major seaport in Thailand for years and it is also Thailands largest port.It is deep water port and used for international importation and exportation. It is located between Laem Chabang distinct, Amphoe Sriracha and Amphoe Bang Lamung in Chonburi province Thailand. This port is under control by Port Authority of Thailand in overall management. Private firms are prudent for the activities process. This port is first collapse in 2534 and was fully supported by Thailand political science all along. Leam Chabang port can handle or has ships or vass come to port around 8,118 ships. The areas around Leam Chabang port are creation developed to be economical area of the country.The area that be developed are ho employ, utilities, communications, transportation, industry, and government center. In 2005 Laem Chabang port was order to be the 20th busiest port in the word. Many of the international transportation system come in and out of Thailand will go through this Laem Chabang port. Leam Chabang Port has many sub-port and they was separated into 4 main zones -Zone A -Zone B -Zone C -Zone D - new(prenominal)s Factors why we choose this port 5. positioning Mama instant noodle has 3 factories which are located at Rayoong, Lumpoon, and Sriracha. Especially the factory in S riracha is very near to Laem Chabang port.So it is very easily to transport the product or goods by in-land from the factory through the Laem Chabang port. 6. Facilities and equipment Surely, Laem Chabang port is the main port that mostly used in Thailand. This port is fully equipped with many technology machines. We can able to move or transfer the pack around the port. The areas are big and clean. The security system and safety are very great. There is a lot of private service to help provide facilities to us. The port also has general warehouses that we can keep our product or good, distribution centers, road and railway network system which connects every part of the country.Furthermore, the port provides significant utilities such as electricity, water and land lines throughout the whole port. List of facilities in Laem Chabang port 7. Provincial Office of Chonburi Public Relations Office of Chonburi Chonburi charmation identify City Council of Chonburi Local Police get off (Pattaya) Local Police Station (Bang Lamung) phaeton Police tourer Police (Jom Tien) Tourist Police (Pattaya) Bangkok-Chonburi infirmary Eak-Chol Hospital Bang-La-Mung Hospital Many savings banks banking company of Ayudhya included messenger express Accommodation 8. Service We can say that Laem Vhabang port has a one stop service.Many of private and government firms in the port provide different service and cover all port activities. There is custom burean in the port that take care about the documents and also many private firms have component part service for us to prepare the document and give advice. Laem Chabang open 24 hours a day and 7 age a week thats mean the port opens all the time. The port has skillful and go through employees, truck services, vessel routes, train entry, shipping lines, forwarders, and many other more. The port also has an efficient website that provides understanding information and clashings. Port of Destination manilla paper P ort, Philippine The Port of capital of the Philippines is the largest seaport in the Philippines. It is widely used as the main port of all international shipping gateways to the Philippine. The port is located in the vicinity of manila paper Bay. The Port of Cagmat is another name of this port for local and it is also known as manila paper International incumbrance Terminal. This port is operated by International Container Terminal Services Inc. This port is recognized as one of Asias major seaports and one of the Philippine most active port with full of activities every day. In 2005, port of manilla was list as 31st the world most active port.Manila is also the Philippine countrys main economic, cultural, and political center because Manila is the capital city and has the highest population. -Port of Manila has 3 major areas. 1. Manila North (seaport code MNN) 2. Manila South (MNS) 3. Manila (MNL) Port Location Map 9. Quick fact unofficial information Port Location Manila P ort Name Port of Manila Port Authority Philippine Ports Authority, PDO Manila/Northern Luzon Address PNR Building South Harbor Manila Philippines Phone 527-44-14 Fax 527-44-14 Email emailprotected com. ph Web come in www. ppa. com. ph Latitude 14 31 27 NLongitude 120 56 57 E UN/LOCODE PHMNL Port casing Seaport Port Size very Large Factors why we choose this port 10. Reliable This port is very popular and has been trusted by many countries. The Philippine Ports Authority (PPA) who control and manage the port promise to provide dependable services, sustaining the development of port communities and the environment. The Philippine Ports Authoritys priority objectives are include of establishing, create, regulating, managing, and opemilitary rating(a) a national port system that supports trade and development for the nation of the Philippines.To meet these goals, the PPA will make adjustment at least ten ports by the year 2010, improve port services, reduce costs for po rt customers, corporative between ports and communities, development and operation, and provide a working environment to improve productivity and job satisfactions. 11. Location Manila is the capital city. It implies the highest population city in Philippine. It will be a perfect place to enter our product to the market. This city has many distribution channel including macro instruction where we going to send our incubus to. So this port is quite near to the destination location. 12. FacilitiesWith no doubt, port of Manila is the largest and busiest port in Philippine. This port service of processs a total of 5325 vessels for both foreign and domestic. The entrance to the Bay of Manila is 19 Km wide and it will expand to 48 Km in the future so, the vessels could easily reach the port. The Port of Manila International Cargo Terminal (MICT) also help developing the facilities on the port. The company (MICT) is answerable for managing, operating, and administrating the Port of Man ila. They are planning, developing, and constructing better facilities supplying all equipment,handling more capacity, and controlling the system.Term of defrayal Method of earnings Documentary garner of cite (L/C) 16 16 15 15 14 14 13 13 12 12 11 11 2 2 4 4 8 7 8 7 7 7 6 6 5 5 Custom Shipper Custom Shipper Shipper Shipper Custom Shipper Custom Shipper Shipper Shipper 3 1 3 1 1 1 takings slang outlet swear Advising posit Advising Bank merchandiseer Exporter Importer Importer 9 9 10 10 1. Negociation in sales contact. 2. convey signal to open L/C together with direct all documents required. 3. After bank swear the correctness of the documents, issue L/C and transfer to Advising bank. 4. Advising bank notifies the exporter the presence of L/C. 5.Exporter makes a shipping reservation. 6. Shipper sends export document to custom. 7. Receive mates know once product is on broad. deepen mates receipt for gamin of pack with shipper. 8. Documents collection as agreed. 9. Ex port sends documents for compensation to advising bank. 10. Advising bank confirms documents and receives salary. 11. Advising bank sends documents and requests for reimbursement. 12. Issuing bank checks document and requests defrayment. 13. Importer makes a salary and documentation. 14. Reimbursement 15. Importer exchanges B/L for delivery order (D/O). 16. Shipper shows D/O for goods shipped to custom.Document needed * Draft or Bill of central * Commercial account, Packing List, Bill of Lading * certification of Origin, Insurance policy, License (if any) * Certificate of Health, Certificate of Analysis * Certificate of Inspection, etc * Insurance Certificate, Commercial, Official or Legal Documents (for shipping) Reasons for choosing this term of defrayment As we will export a large amount of goods to the foreign company as well as this is the first time that we do business with this company, apply Documentary garner of Credit will reduce the commercial risk or the risk of not being paid.This is because, for the first of doing business, there will be low trust of buyers credit and high risk that importer or buyer might not pay for the goods. Therefore, we choose Irrevocable Letter of Credit, Time Draft (60 days) to reduce risk. By using irrevocable letter of credit, issuing bank will be the one who is responsible for importers obligations toward exporters under the specified term and conditions and commit themselves not be able to make betterment without consensus from all parties related. Cable / prompt charges for LC possibleness THB 1,000 for the first page, THB ccc for the other pages THB1,000 (Max. pages, succeeding(a) pages = calciferol/page) Asia, Australia, % NZ THB 500 Middle East, US, Europe, Africa stay of the world THB 800 With attached sheet THB four hundred per attached sheet Others THB 400 L/C amendment In case increase in amount or address of validity date ? % of opening amount for validity of each 90 days (1 time period), fraction of month will be treated as one period (Minimum THB 500) Other cases THB 500 Increase hail 0. 5% of incresing amounts (min. THB1,000. 00), Extend validity if hand 1 period THB 500 per item Increase of L/C amount0. 25% of additional amount per period (90 days) or part therefrom min. THB 1,000 source of L/C validity 0. 25% of opening amount per period (90 days) or part thereof min. THB 1,000 Cable / Swift charges for LC amendment THB 500 per item THB 500 per item THB 400/item Revolving L/C comission ? of opening amount upon L/C times amount of time for revolving (Minimum THB 1,000) 0. 25% per quarter or part thereof with a minimum of THB 1,000 0. 25% of opening amount per period (90 days)or part thereof min. THB1,000 Standby L/C comission N/A Morethan 2. 5% per annum or part thereof with a minimum of THB 300 1. 5 2. 5 % per annum min. THB 1,000 Kasikorn Bank Kasikorn Bank Bangkok Bank Bangkok Bank Bank of Ayudhaya Bank of Ayudhaya Postage (Courier Charges) N/A Asia , EU and USA THB 500 except China, Laos and Cambodia THB 700 THB300. 0 for 1st envelope, additional charge of THB100. 00 per additional envelope Reasons for choosing Kasikorn Bank 1. Kasikorn Bank provides the services of Cable/Swfit charges for L/C opening, Cable/Swift charges for L/C amendment,Standby L/C and impression fee at the rate cheaper than other banks. 2. Kasikorn Bank has professional staff, innovative technology and worldwide network that will kick upstairs our international transaction easily and smoothly. 3. Kasikorn Bank got the cede of Best Trade pay Providers 2011 for the fourth straight year (2008-2011).This guarantees that it provides good international trade services. 4. Kasikorn bank got the award of Best Bank (Thailand) for the second consecutive year (2010-2011). This guarantees that the bank is realiable and trustable. 5. Kasikorn Bank provides a lot of information towards its services on the internet. So, the customer can find the information about th e fee, procedure and document needed of services easily and conveniently. 6. Kasikorn Bank has K-BIZ contact center that provides business information for 24 hours.So, we can contact the bank anywhere anytime when we need information, advice or when we have a problem regarding our business. In addition, the K-BIZ staff are well-trained. So, we can be sure that we will get comprehensive and accurate answers or advice. Trade Finance Services 1. Export L/C Advising Kbank acts on behalf of the donee in receiving the L/C issued by the abroads issuing bank. The bank will check the observable authenticity of the L/C before notifying and delivering it to the donee. Documents Needed 1.Letter of Credit agreed upon by both sellers and buyers. 2. Pro forma invoice 3. Application form for amendment of letter of Credit Procedure for Export L/C Advising 13. After receiving the L/C from the issuing bank in overseas, the bank will check its apparent authenticity. 14. Kbank notifies exporter of t he arrival of the trustworthy L/C. 15. onwards picking up the original L/C at anyCorporate SME Service Center, exporter have to pay for the L/C advising fees. 16. It is recommended that exporter has to review all terms and conditions specified in the L/C.If they are not comply with the terms and conditions as agreed with the importer, exporter is required to notify the importer to amend those conditions in the L/C. By using export L/C advising from Kbank, we can receive the authenticated L/C within 3 hours after Kbank receives it by SWIFT Message from the issuing bank in overseas and a copy L/C will be delivered to us in advance by facsimile or email to allow us to prepare export documents in advance. So, its more convenient for us to do the international transaction. 1. L/C curbL/C Confirmation is the service that the bank, Kbank, add checkout on the letter of credit received from the oversea issuing bank which allows adding checkout and the beneficiary in the L/C request it to do so. The bank will add curb on full amount, not on partial amount, and effect payment to the beneficiary upon receipt of conforming documents provided that all terms and conditions have been complied with the L/Cs. Documents Needed 1. Application for L/C confirmation 2. Original L/C and amendment L/C (if any) Procedurefor L/C Confirmations . Exporter ( the beneficiary in L/C) submits an application for L/C confirmation alongwith the original L/C and the amendment of L/C (if any) to Kbank. 2. The bank will examine the application form, conditions in the L/C and credit rating and country rating of the issuing bank. 3. If all criteria is met, the bank will collect all confirmation charges and other expenses from the beneficiary. 4. A letter of confirmation and the original L/C will be delivered tothe beneficiary. 5. The bank, then, inform the issuing bank of the adding confirmation without delay.By using this service, we will have more security in receiving payment under L/C, Kba nk will serve us with L/C confirmation with their professional and experient staffs. Therefore, it is more reliable and secure than using only Export L/C advising. 2. Export exhibition under L/C Kbank acts as the nominated bank authorized by the L/C issuing bank to collect payment from the L/C issuing bank in a foreign country by direct the documents for collection under L/C provided that all terms and conditions have been complied with L/C. Documents Needed 1.Application for Negotiation/ disregard of Export Bills Drawn Under Letter of Credit. 2. Original L/C and amendment L/C (if any). 3. Other documents stipulated in the L/C. Procedurefor Export L/C Collection 1. Kbank receives the export documents submitted by the beneficiary, then check for the complying presentation. 2. Notify the beneficiary of checking result. 3. Send the documents to the issuing bank for collection. Also, tracking payment (as the case may be). 4. Upon receipt of payment, inform the beneficiary and remit p roceeds to the beneficiarys account.By using this service, we can be more assured of receiving payment under L/C. Moreover, the documents will be checked by professional and experienced staff. Also, they will be re-checked by CDCS or Certified Documentary Credit Specialists. As a result, we can operate our export business smoothly and confidently. Custom Export clearance Procedure in Thailand Generally, the export clearance processes include 4 stages 1. calmness of a solving The export procedures stir up when an exporter/broker submits an Export result in ebXML centre to the e- usage system. 2.Verification of a announcement The second stage is automated validation of the Declaration. As soon as the e-Customs system receives the Export Declaration selective information, such selective information is preliminary validated. In cases where the validated data contains no break, the Goods Declaration number is generated in conjunction with the e-Payment system (if export taxes an d duties are relevant. ). The retort message, then, is transmitted to the exporter/broker. In addition, the selectivity visibility system will validate the transmitted data and classify the Goods Declaration into two categories Green Line and rose-cheeked Line. . Payment of Duties and Taxes The third stage is payment of applicable duties and taxes and/or guarantee. There are currently 3 means for payment of export duties and taxes payment at the Customs Department, payment via e-Payment system, and payment at banks. 4. Inspection and disoblige of Cargo The last stage is to behold and finally release cargo from Customs custody. At this stage, a freight forwarder hemorrhoid cargo into containers and electronically sends a cargo control report to the e-Customs system. The e-Customs system validates the data, and reports any error for immediate online correction.If no error is found, the cargo control report number is automatically generated by the system and the answer message i s sent to the freight forwarder and the exporter/broker. The freight forwarder then prints out the cargo control report with its number and removes the cargo to the port of exit. At this stage, the Customs officer at a sub-gate checks whether the declaration is a Red Line or a Green Line. 4. 1In case of the car park line,the Declaration is cleared within a few minutes. After the cargo is exported, a shipping company/agent is required to submit, the manifest information to the e-Customs system.The system then automatically loads the Goods Declaration and transmits the response message back to the exporter/broker. 4. 2In case of the red line, the cargo is outback(a) for physical inspection. Documents needs 1. Export Declaration 2. neb 3. Export License (if applicable) 4. Other relevant documents such as catalogue, product ingredients, etc. Example of Documents Custom Import Clearance Procedure in Philippines Documents required in all shipments to the Philippines * Commercial Invoic e * Bill of Lading or air lane Bill for air shipments * Certificate of Origin, if call for * Packing List Applicable special certificates required due to the nature of goods being shipped/requested by importer/bank/letter of credit clause, such as the federal agency of Food and Drugs (BFAD) license * Commercial Invoice of Returned Philippine Goods and Supplemental Declaration on Valuation * For Letter of Credit (L/C) Transaction, a duly accomplished Letter of Credit (L/C) including Proforma Invoice and Import Entry Declaration for Advance Customs Import calling (ACID) * For non-L/C Transactions, either Draft Documents against bankers acceptance (D/A), Documents Against Payment (D/P), Open Account (OA) or self-funded, a Proforma InvoiceExample of Documents Container * flake of Cargo and Container Size Container Interior proportion Door Opening Tare Weight Cubic Capacity Payload 20 Dry Container L5. 919m 19 5 W2. 340m 7 8 H2. 380m 7 9 ? W2. 286m 7 6 H2. 278m 7 5 ? 1,900 kg 4, 189 lbs. 33. 0 cbm 1,116 cu. Ft. 22,100 kg 48,721 lbs As our products can be packed in cases, they are classified to be general cargo and can be stuffed in containers.Our products to be exported to Philippines will be sold throughout the country, we believe that the demand of the whole country with a huge number of population like Philippines is sufficient for us to fill up the whole container, convey that we can use full cargo load. Our products do not require any special container, the normal general purpose container or dry cargo of 20ft is sufficient to keep the products safely while transporting them from Thailand to Philippines. One 20 footnote container can fit 360 cartons, one carton contains 6 boxes of 30 packs. Totally one container can fit 68,400 pack of Mama. * Container Transport StatusIn order to deliver the products to Philippines, we have to use the combination of transportation modes that includes land and ocean transportation. The products will be lay in the c ontainer and taken from our factory by using the container truck or line haul to transport them to the port. At the port, the products then will be go from the truck onto the container ship which will transport our products from the port of Thailand to the port of Philippines and again the products will be taken of the ship and placed on the container truck and deliver them to the distribution of our customers in Philippines.The most suitable container transport status for us is FCL/FCL. We as the only one seller deliver products by using full container load from Thailand and export to only one buyer in Philippines which is SM Hyper Market. To keep the products safe and in the best condition, we have to use the beneficial method of packaging and cargo chunking which are mention below. Freight Forwarder As our products are shipped from Thailand to Philippines which are already a normal and often travelled route, we can save our cost by using the service from conference line vessel or the so calledLiners.By using these liners, the service is cheaper than to use the non-conference vessels or assume ships. The rates are fixed and standardized, the schedule is also strictly followed which allow us to deliver our products to customers at the expectable time. The company that we use for ocean transportation is NYK and the route is FTS (Far East Thailand Service) which serves from Laem Chabang pass by Port of Manila to Busan. The turnaround day for the service route is 21 days. The total fee for ocean transportation is 765 USD which includes 730 USD for the service fee plus with 35 USD fuel fee which is calculated to be roughly around 23,532 Baht.Insurance Company As we are using CIF Incoterm 2010, we are responsible for all the risks of lost or change pass during the inland transportation from our factory to Laem Chabang port and we are assigned to purchase the insurance to cover any risks of lost and damages occur during the ocean shipment from Laem Chabang po rt to Port of Manila. We selected Dhipaya Insurance Public Company Limited as our insurance company. The type of policy selected is open policy, which covers over a period of time as we plan to ship the products quite often in the near future.The package we choose is constitute Cargo Clauses type C which covers dismission or explosion vessel obscure or sunk, collision of vessel and fuel of cargo at port of distress. The movement we choose Dhipaya Insurance is because the company has a long history as well as the credit of the company is widely accepted both in Thailand and other countries in this region. merchandise Mix Marketing Mix(4P) 1. Product 2. Price 3. Place 4. Promotion Product Ingredients and Condiments of MAMA instant noodles still remain the same. The size of MAMAs pack and accumulate net weight within the pack are also the same.But label that state on the pack will be changed from Thai language to English language. And all informations at the back of the pack wi ll be translated to Pilipino as well. Product Standardization We make our product to be standardized. We not change any interrogation&Development. We use the same strategies as in Thailand. We dont adapted or changed our products forward Pilipino . Price We changed the price from originally 6 baht in Thailand to 30 baht or 1USD per pack selling Philippines. We set the price followed our competitors but our competitors set 1USD or more than but we set only 1USD to tick the market. Pricing Policy We use soprano Pricing because we change the selling price from 6Baht to 1USD. We add more price because we have to calculate cost-plus method ,For pillow slip Import taxes,Vat, merchant marine cost,Shipping cost,etc. Place We decided to sell our products MAMA instant noodles into Philippines though only one major distribution channel,SM hypermarket company. Promotion We use quantity discounts as a promotion in Pilipino market. Consumers will pay less if they buy pack of six. salute Str ucture EXPORT IMPORT Cost divisor Cost Cost element Cost Factory cost of 205,200 emailprotected US$0. 098 per packs US$20,109. Land cost CIF $**** Expenses Duty 3% $**** Export packing (205,200 emailprotected US$0. 005 per pack) US$1,026 Other Taxes $**** Brokerage Clearance fees $**** Consular invoice US$30 Forwarder Fees $**** Freight forwarder Fee (included in transportation cost) - Banking charges $**** FOB price US$21,165. 6 Total landed cost (DDP) $**** Expenses warehouse $**** Repacking $**** Freight out $**** Advertising $**** avocation $**** Others $**** Marine Insurance US$317. 5 Total landed plus expenses $**** Transportation (Ocean) US$2,295 Plus Markup $**** Landed cost (CIF) US$23,778. 1 Suggested selling Price $**** Reference * http//www. dksh. ph/htm/388/en_PH/News-Detail. htm? Id=60707 * http//goodnewspilipinas. com/2010/04/06/philippines-set-to-become-food-safety-hub-of-asean/ * http//www. selamat. wur. nl/NR/rdonlyres/F6A33BEE-EE8 2-464A-A1EB-118034E1F9D9/122444/Philippines. pdf * http//www. iso. org/iso/iso_catalogue/management_and_leadership_standards/quality_management/more_resources_9000/9001supchain. htmwhat_is_iso_9001 * http//www. rcglobalstandards. com/GlobalStandards/Home. aspx * http//www. inspection. gc. ca/food/fish-and-seafood/exports/by-jurisdiction/philippines/eng/1304243817860/1304243914409 * http//www. mama. co. th/faqs. php * http//ebook. foodrecap. net/food-standard/pinoy-food-label/ * http//www. lcbcustoms. net * http//www. laemchabangport. com * http//www. mama. co. th * www. thaiblogonline. com * maps. google. co. th * http//www. ppa. com. ph * http//www. maplandia. com/philippines/ncr/manila/port-area/ * http//www. worldportsource. com/ports/PHL_Port_of_Manila_1947. hp * http//www. mapsofworld. com/cities/philippines/manila/port. html * http//smhypermarket. com/hypermarket/index. php? p=420 * http//en. wikipedia. org/wiki/SM_Hypermarket * http//internet1. customs. go. th/wps/wcm/connect /custen/importexport/exporter/exporter * http//www. dti. gov. ph/dti/index. php? p=196&fb_source=message * http//www. chanrobles. com/presidentialdecrees/presidentialdecreeno1679. html * http//www. nykline. co. th/main/content_view. php? data_cat=6&data_id=16 * http//www. dhipaya. co. th/ * http//www. x-convert. com/chart/PHP-THB? period=6m