Herbal drink factory

Herbal drink factory Modern, standardized, wants to expand the business to support the market for healthy herbs for the population around the world.

James Investment April 29, 2020 at 7:30 pm
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Herbal drink factory. : MethaPorn Farm.

has been in the business of producing and selling health drinks under the brand Methaporn since April 2012, later in 2014 changed the brand name to Nara, selling products in the form of beverage kiosks ( Kiosk) and place the products on the beverage shelves in the large shopping mall. And national events

Because of seeing business opportunities from the healthy beverage market Is gaining high popularity with the forecast from Kasikorn (Kasikorn Bank, Thailand) Research Center The health beverage business will have a market capitalization of up to 20,000 million baht in 2020 and grow at 10-15% per year. In addition, consumers are more interested in health. Including current lifestyles, must work against time Making MP’s beverages an alternative for consumers who want convenience and speed, and respond to the plaintiff’s personal health needs in consuming herbal drinks.

Herbal drink : factory

The product must pass the quality inspection from the Department of Medical Sciences. Allowing consumers to be confident in the quality and production process that is correct according to good manufacturing practices Good Manufacturing Practice or GMP and Hazard Analysis Critical Control Point or HACCP and HALAL certified as well.

MP’s products are divided into 4 groups, which are helping the digestive system. Body and Skin Care Group Hot fix group in And the circulatory system treatment group.

Manufactured with quality machinery. Work quickly and help produce good quality.

Herbal juice production process.


Herbal drink factory Target group.


Target market : aged 25-59 years.

The main target groups of MP are early working age to middle level executives and high level executives (aged 25-59 years) with incomes from 12,000 baht and having a lifestyle that likes New There is a concern in health. Take into consideration the taste And give importance to the brand Organized into groups that are fairly large And this group is still developing further to promote the ownership of health beverage brands as well. Due to the current trend of popularity of personal ownership Make it want to have your own product to test the knowledge or ability or want to succeed in a short period of time. MP will support the production under the brand of this group or OEM for those who want to sell products under Own brand as well.


Target market : age 20-24 years.

The secondary target groups are two groups, the student group and the working age (age 20-24 years), which is a middle-income group who is interested in trying new things. And groups older than 60 years, which are groups that are very interested in health and have experience drinking herbal water before, therefore have the opportunity to give their children, which is The main target group is bought to drink.


Product distribution channels.

Online marketing.

Creating sales of products and promotion of the company through the main channels are online systems such as world-class websites such as Lazada, Alibaba etc. and offline, such as stores at the manufacturing plant, shopping mall, both product sales. In the product shelf and beverage kiosks And contract manufacturing or OEM under the customer’s brand.

offline marketing. International market group. For example, Australia and Dubai.

The company plans to expand the international market. (Both for direct sales Or contract manufacturing), such as the Middle East, Europe and neighboring countries Because there are customers and there are ways to present healthy beverage products through businessmen and other business alliances such as private organizations, associations, or government agencies that mainly promote this area, such as diplomats. The company traveled to meet potential business people in United Arab Emirates. In order to present rice and have a good relationship with this group of businessmen In addition, the company’s executives have stayed and researched on the development of market and herbal drink products in Australia for over 2 years in order to bring the information to develop the products to be in line with the market demand in Australia to export the products. To be sold too.


Product distribution channels. In Thailand.

Available for sale in large department stores. The product placed in the shelves. And organize product introductions during certain times or in festivals.


Cost of Goods Sold

Product cost.

Breakeven analysis.

Sales forecast.

Financial statements.

Investment required for the project.


Analysis of internal and external factors.

Strengths.

  1. Research and Develop (R&D)

There are experts in research and product development in the organization. And a team of consultants who are experts and have experience in the production of health drinks Resulting in the development of various products Can enter the market, fast period Keeping up with the changes or needs of the market that may change over time.

  1. Product

The product of MP Millionier Company Limited, which is a healthy drink that can reach the customers under a suitable marketing plan. By using distribution channels that are distributed to the most target groups Both domestically and internationally The company’s products are more diverse than the competitors in the market. Make it able to meet the needs of consumers in various fields, whether it is a property to nourish the body for health. And benefits in terms of properties such as helping to drain / cure constipation Skin care Maintaining the balance of the circulatory system, etc. emphasizing naturalness Therefore not harmful to the consumer’s body

  1. Production

Have the ability to produce the lowest cost Under the material management system and the most effective inventory The production capacity has been developed to achieve the lowest cost under the supply chain management system in order to obtain the most effective raw materials and inventory.

  1. Team

Have a team and management personnel who are knowledgeable, capable, committed In business administration And intend to do business Is also involved in investment With most executives having the same domicile as the company’s location, Chon Buri Province Know the marketing factors and costs of procuring local ingredients at reasonable and quality prices. As well as receiving cooperation from farmers who supply raw materials to factories and government agencies that promote business as well. Giving the business or company a very high chance of success

As for marketing, the management team has conducted researches and collected data on healthy herbal drink consumption in Australia. And marketing, recommending products by giving drinking trials Received good feedback In terms of taste and confidence in quality Because it is a product or product that comes from Thailand.

  1. Location

The location is in a good location, not far from Bangkok. Which can be a place to be able to welcome tourists who come to learn about the production and buy good non-toxic products as souvenirs There are markets and large department stores within a radius of not more than 10 kilometers, which is a good distribution point. Especially near Laem Chabang Port Which is the main port of the country, making transportation convenient to export products abroad, can have a low cost And also in an area that can easily source raw materials for production Because Chon Buri Province is an area that can grow almost all kinds of medicinal plants. May exclude some plants that only need cool air.

Weakness.

Is a company just starting to expand the business causing the company has weaknesses as follows

  1. Not known to consumers and is a brand or a new brand Therefore causing the consumer to not yet be recognized and remembered in the product Resulting in losing the cost of branding Needing to help the market to create Brand Awareness, especially in the first phase of the product market.
  2. Distribution of products to reach consumers thoroughly, requires a lot of partners Which is an activity that requires a lot of time and high cost to develop distribution channels
  3. Becoming a new entrepreneur With limited funds Disadvantage the big competitors that enter

First Mover

Opportunity.

  1. Consumption trend of a new generation that uses herbs as an alternative to health care. By looking it safe and natural Consumer groups of beverages that provide health benefits Considered a relatively stable market with consistent frequency of consumption As well as having a high purchasing power
  2. Government policies that promote those involved in the herbal industry Through the Master Plan on Herbal Development 2017-2021 and the operation of the Ministry of Public Health, which encourages hospitals and hospitals to use herbs instead of importing modern medicine more By adding herbs to the national drug list From the above factors Therefore, it is expected that in the year 2019, the market of herbs used as raw materials for the production of products in downstream industries (such as the cosmetics, food supplements, herbal medicines) will be worth not less than 18,200 million baht and should have a chance to jump to 20,000 million baht. Can be received within 2020
  3. The raw materials used in production are agricultural products that are easy to find in Thailand. Because Thailand is one of the few countries that has an abundance and variety of herbs. Causing the cost of this type of raw material to not be very high
  4. Can expand the business. By expanding into the international market in relation to Concentrate Diversification, such as mixed herbal drinks for health

Threat.

  1. An industry that uses price competition. It can be seen that at present. This many manufacturers Tried to reduce the price of ready-to-drink herbal drinks Which is a result of the amount of ready-to-drink herbs in many brands on the market Combined with the characteristics of products in this market With a low brand loyalty In addition to reducing the unit price There are also sales promotions to attract customers such as sweepstakes, free giveaways, etc.
  1. Problems regarding food standards Production standards That will be certified by the relevant supplier Takes quite a long time And the problem of uncertainty of raw materials such as lack of products And has a higher production cost Due to inconsistency between the raw materials and the marketing plan As there is something related to the growing season and there may be a natural disaster as well.

Success factors in the herbal drink industry.

  1. Efficiency (Efficiency) in the production that makes the cost of production low. Under production planning, which focuses on self-production and production from a single central location, resulting in the use of resources that are worthwhile. Also resulting in economies of scale (Economy of scale) and Learning curve that will help reduce production costs. In addition, a management system that can reduce costs to the lowest (TPM-Total Productive Management ) Will help increase efficiency and create a competitive advantage too.
  2. The ability to develop new types of herbal drinks that are not yet on the market And improve the quality of existing products In accordance with the needs of the market Both the taste and benefits. Research and development of new products. Continuously Regarded as the head of the company To make a difference and prevent imitations As well as creating the ability to compete in the future with the company focusing on using herbs that are in the country, but there is no seller to make beverages. By developing new formulas to make the products unique and appealing to consumers Considered one of the factors that generate revenue growth and expand the market. Including the improvement of the product which is not as popular as it should be
  3. The ability to design the packaging of herbal drinks to look modern and hygienic. Packaging used to pack healthy drinks is no less important than the product. Because it is a product that can be used to indicate the level of products and added value that the manufacturer wants the consumer to know Entrepreneurs must be able to change the packaging to look modern and feel clean and safe for consumers.
  4. Ability to use academic together with marketing, providing information to customers Regarding the properties and benefits of herbs that customers will receive from consumption of herbal drinks through various media first, then bringing herbal drinks to the market will create awareness and then send products to the target audience immediately. However, it is important to be aware that the published data must have evidence that can be referenced with academic work in the background. Which will create credibility for consumers
  5. The ability to select channels of product distribution appropriately And the selection of distribution locations in relation to the target groups, distribution channels that cover the most target groups Will allow consumers to access the company’s products Which will affect the sales growth of the company For health drinks, the products can be distributed in both channels via the kiosk of Health Chanel. Both hospitals and Fitness Club, large stores in the Discount Store etc.

Industry analysis And market analysis.

“Thailand is in the tropics with a variety of herbs. From data from the Ministry of Agriculture and Cooperatives It is found that more than 20,000 plant species in Thailand are known by their scientific names, of which more than 1,800 species are used as herbs, distributed in all regions of the country. In addition, Thailand has more than twenty thousand medicinal recipes. But has only been used and registered for hundreds of digits. Therefore, Thailand has many opportunities to develop into medicines or ingredients in health care products such as cosmeceutical or mixed in beverages as health care beverages.”
The government’s direction will be to promote herbs for both domestic and export use. In the 1st National Master Plan on Thai Herbal Development (2017 – 2021), which is the first 5 years, will focus on the country To make Thai people alert Good understanding of herbs From then on, next will be a promotion to foreign countries, however, during this period, did not abandon exports. The bridge was started in the 2nd and 3rd years when it started to stand. Thai herbs are of modern standards and are ready to go abroad and can be connected immediately.

Information provided by: Dr. Kiatphum Wongrachit, Director-General of the Department of Thai Traditional and Alternative Medicine, website: https://www.thaihealth.or.th

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