Feasibility Study on Investment in Bottled Herbal Jaew Hon Product

Abstract

This feasibility study aims to examine the possibility of investing in bottled herbal Jaew Hon soup in regards to its marketing, technical, management, and financial aspects. A questionnaire was used to collect the data from 400 participants interested in consuming Jaew Hon soup in the Khon Kaen Municipality area. The results showed that in terms of marketing, based on analysis of the general environment and the product’s strengths, weaknesses, opportunities and obstacles, the outbreak of the COVID-19 virus has influenced Thai people’s consumption behavior: they tended to
eat at home as much as possible to reduce the risk of getting infected, clearly providing an opportunity for investment. The results of the analysis of
marketing mix factors influencing decision-making showed three possible types of products, namely Jaew Hon soup, bitter sauce, and non-bitter sauce.
The package should be in a bright color to make it stand out against the color of the Nam Jaew Hon sauce. The ingredients of the product should
be clearly stated on the label. The price of the sauce should be around 35 baht per bottle and the Jaew Hon soup should be around 90 baht per bottle, which are relatively the same prices as its competitors in the market. There are two possible distribution channels: the storefront at the Nonna Cafe and an online channel. In terms of marketing promotion, the products should be advertised via Facebook, Line, Instagram, and Google because they can analyze the target customer’s behavior for effective access to customers. To increase sales and customer awareness, various forms of content such
as video clips on tips for delicious serving suggestions, the benefits of eating Jaew Hon herbal soup, and sources of raw ingredients which are
non-toxic and organic, should be created and shown to the customer. Also, product guarantees should be provided to give consumers confidence in the product. In regard to the technical aspect, it was found that the best location is within the Nonna Cafe area, which has a lot of parking spaces, providing easy access for customers who want to taste the products at the shop. In addition, the location is close to many private delivery companies. As for management, there is a plan to recruit staff for each position with clearly
defined qualities and benefits. In regard to finance, the initial investment cost is 1,378,660 baht. With an estimate for 5-year operation, its current value
stands at 1,698,629.55 baht with a rate of return of 47.6252%. The payback period is 1 year, 11 months and 18 days, which is considered a short period.
This makes the project an attractive project for investment.