International Marketing

A. International Commerce, trading history and International

trade development in Thailand.

The economy of Thailand is a rapid growth and industrialization economy which

is heavily export dependent, their major exports include Thai rice, computer parts,
automobiles and automotive parts, services. Thailand has been a World Trade
Organization (WTO) member since 1 January 1995 and Thailand also the 2nd largest
economy in Southeast Asia after Indonesia. Thailand’s government maintains an
open, market-oriented economy and encourages foreign direct investment as a means
of promoting economic development, employment and technology transfer. Thailand
has a long history of international trade, they have trading relationship with United
States, France, Russia, Sweden, Spain, and Japan. The United States, Japan, and the
European Union are Thailand’s top trading partners, among that country The United
States is Thailand's largest export market and second-largest supplier after Japan.

Trade (expressed in billions of US$): Thailand

Exports Imports
1975 2.208 3.280
1980 6.505 9.214
1985 7.121 9.242
1990 23.070 33.379
1995 56.439 70.776
1998 54.456 42.971
SOURCE: International Monetary Fund. International Financial Statistics Yearbook
1999.
Thailand’s export partners in the year 2006. Source: www.wikipedia.org

Its other partners are Hong Kong, China, and the Association of South-East Asian
Nations (ASEAN) countries, the most significant of which are Singapore and
Malaysia. Thailand is a member of several international trade organizations including
the ASEAN Free Trade Area (AFTA), the Asia Pacific Economic Cooperation
(APEC), and the World Trade Organization (WTO).

Source:
http://www.loc.gov/rr/international/asian/thailand/resources/thailand-business.html

http://en.wikipedia.org/wiki/Economy_of_Thailand

http://en.wikipedia.org/wiki/Thailand

B. Cultural Overview

1/ The national sports in Thailand

The national sport in Thailand is Thai boxing, which called Muay Thai. In Myanmar,
Philippines and India etc Southeast Asia area, there are similar kicks, so this kind of
boxing is expected from very long time ago. That is, when Buddhism found its way
into Thailand, India style’s competition introduced, as well. Muay Thai was made by
this India style competition and each country’s competitions combine. This sport
added bit of Chinese and some said, this sport made 1000 years ago for Thai people’s,
who hadn’t got weapons, defensive tactics. Formerly, during the competition, players
wearing only bandage on their hand, however, it judged too cruel so currently, players
have to wear 4 ounces of gloves. The present age, Muay Thai has destructive power in
combative sport association. Kick boxing invented Muay Thai and Japanese Karate’s
mixing. Muay Thai is Thai’s life and pride.

SOURCE: Naver [accessed 3.09.09] Thai boxing

2/ Describe traditional dress

2.1 Men’s traditional dress

Unlike women, men no longer commonly wear traditional clothing. The traditional
clothing of men was not as elaborate as women's dress and did not vary much among
the different ethnic groups. Men wore a short version of the chong kraben as a
loincloth, made of plain or plaid patterned cotton. Men reserved a silk chong kraben
for special occasions such as weddings and ordination ceremonies into the Buddhist
monkhood. A plaid or checked cotton sarong was another lower garment favored by
Malay men in the southern region of Thailand. Men did not wear an upper garment on
a daily basis, and draped a cloth over one or a both shoulders for special events. Men
of ethnicities from colder climates dressed in cotton shirts with a shoulder cloth for
ceremonies and religious activities. Men also used a plaid cotton cloth or or pha khao
ma as a sash, bag, belt, head cloth, scarf, and towel.
 2.2 Women’s traditional dress

The pha sin, or tube skirt, is the traditional lower garment for women of the various
ethnic groups of lowland Thailand. The pha sin consists of three section : hua sin
(head or top), tua sin (body or midsection), and tin sin (foot or border). The three
sections of the pha sin are either woven in one piece of cloth with patterns
differentiating the three sections or are made from two or more pieces of cloth sewn
together. The top section is made from plain-woven cotton cloth of various colors.
The midsection is the largest section of the tube skirt. Weavers of the various ethnic
groups use a variety of techniques to decorate the midsection, including ikat (tye-
dying the thread before weaving it), tapestry, and supplementary warp and weft
patterning. The skirt border is either plainly woven or very elaborate. The most
intricately patterned border is the tin chok, a border pattern with decorated chok, or
discontinuous supplementary weft motifs. The skirt border is highly valued, and many
women of various ethnic groups possess a pha sin tin chok (a pha sin, or tube skirt,
decorated with a discontinuous supplementary weft border) Mature Khmer women of
northeast Thailand often wear tube skirts with a checked or plaid pattern.

SOURCE: Google [accessed 5.09.09] Traditional Thai dress

3/ Discuss ethnic groups and subgroups and language groups

In Thailand, there are over 30 ethnic groups, which have all different history,
language, appearance and patterns of lifestyle. One of the biggest ethnic groups is
Thai which contain 75% of whole Thailand population. This major ethnic group can
be divided into a few different groups according to areas.

• Central Thai, called Siamese, of the Central valley

• The Eastern Thai, called Lao, of the Northeast (Khorat)
• The North Thai, called Lao, of North Thailand
• The Southern Thain, called Chao Pak Thai, of peninsular Thailand.
In addition to, there are lots of minor groups.

• The Phuthai of northeastern Khorat

• The Shan of the far northwestern corner of northern Thailand
• The Lue in the northeaster section of northern Thailand

This several ethnic groups of Thai are joined by a common language.

Here are the other small ethnic groups in Thailand.

• Chinese, approximately 14%, who engaged in business and commerce

throughout the country
• Malays, approximately 3-4%, in the southern peninsula near the
border
• Khmers, approximately 1%, distribute the Cambodian border from the
Mekong to the Gulf of Thailand
• Principal tribal groups
 - The Kui and Kaleung in the northeast
- The Mons who living on the peninsula along the Burmese border
- The Karens who living along the northern Burmese border

In addition, there are over 20 other minority groups, such as the Akha, Musso, Meo,
Kamuk, Tin and Lawa.

SOURCE: Encyclopedia of the Nations [accessed 5.09.09] Thailand – Ethnic groups

4/ Identify most important holidays in the culture and important cultural

traditions

In Thailand, cultural and public holidays distribute throughout whole year. Public
holidays are regulated by the government. There are usually sixteen public holidays in
a year. Most of cultural festivals are influenced by Buddhist and Brahminical
religions, however, with the passage of time a number of them have been adopted in
deference to the international practice. Actually, the official New Year's Day of
Thailand has undergone several changes. Once it used to fall at the end of November.
Later, during the reign of King Rama V (1868-1910) it was moved to a date round
about April and then New Year's Day was changed to April the first. The universal
practice of celebrating the New Year on January 1 was adopted of changes aimed at
modernizing the country. Though January 1 is regarded as official New Year, the
majority of Thais still regard the middle of April (Songkran) as their new year's day,
and on this auspicious occasion a week-long celebration is held throughout the
kingdom. To be frank, a celebration on January 1 is not so popular as that of
Songkran. Normally, before the upcoming January 1, people will exchange greeting
cards and gifts. Since on this auspicious occasion, a few grand celebrations are held in
the kingdom, people take this opportunity to travel upcountry to visit their relatives or
spend holidays at a tourist attraction site, while those stay at home will prepare food
and other necessary items to make merit on the early morning of January 1 and then
take part in various charitable activities held in various places. Obviously, in Thailand
people celebrate New Year three times a year, namely; the Thai traditional New Year
or Songkran, January 1 and the Chinese New Year. Out of these, Songkran is the most
joyous occasion, which draws people from all walks of life to take part in a weeklong
celebration. Meanwhile, the Chinese New Year is important especially for Thai
citizen of Chinese origin. Though it is not a public holiday, most private organizations
will close their business for several days so that the employers and their employees
will be able to celebrate the auspicious occasion with their relatives at home or spend
a long holiday in a place they like.

SOURCE: Sun site [accessed 6.09.09] public holidays

5/ Identify the basis for and evidence of morality and ethics in the culture

Buddhist social ethics must do more than advocate mindfulness and the ideal of
simplicity. To construct a healthier Buddhist society requires a change of the
economic structure into one of more local self-sufficiency, and the political structure
into one of more local decentralization, with moral and cultural values adapted to a
contemporary context. Only then can Buddhist social ethics take root in society as it
did in the historical past. The Buddhist spirit of loving-kindness, compassion, sharing,
and cooperation expressed in Buddhadasa's dhammic socialism will then prevail, at
both a personal and structural level.

SOURCE: Naver [accessed 6.09.09] Naver encyclopedia

C. Demographics and Geo-Demographics

1/ Population size and distribution (by age, ethnic grouping, language group,
religious group, metropolitan areas)
Population size and distribution by age
Age Thousand (unit) Distribution (%)
Total 61,248.4 100.00
Under 13 13,982.5 22.83
13-19 8,002.3 13.07
20-29 11,377.0 18.58
30-39 9,937.3 16.22
40-49 7,672.3 12.53
50-59 4,988.3 8.14
Over 60 5,288.4 8.63

Population size and distribution by ethnic grouping

Ethnic group Distribution (%)
Thai 75
Chinese 14
Malay 3-4
Khmers 1
Vietnamese, Annamese, Kui, Kaleung, 11
Mons, Karens, Akha, Musso, Meo,
Kamuk, Tin and Lawa

Language group
Language Distribution (%)
Thai 78
Chinese 16
Lao 3.2
Malay 2.1
Mon-Khmer 0.7
English Government and commerce

Religious group
Religion Distribution (%)
Theravada Buddhism 94
Muslim 3.9
Hindu 1.5
Christian 0.6
Metropolitan
Region Distribution (%)
Central Thai including Bangkok 33.7
the Northeastern (Thai / Lao / Isan) 34.2
Southern Thai 13.3
Northern Thai 18.8
SOURCE: Asia rooms.com [accessed 8.09.09] Thailand population

2/ Family structure, values, issues

In Thailand there is a much stronger company in the family. Often live several
generations under one roof. The parent’s house for example is bequeathed to the
youngest daughter, she together with her husband in return accommodate her parents
when they are older. The oldest man of a Thai family is the patriarch; the other family
members have to act in accordance with his decisions. In Bangkok every day live
adapts more and more to the western developed nations but in the country the old
traditions continue to exist almost unchanged. As a tradition a Thai man has to meet
the whole family of the bride and get the total consent before he can get engaged.
Only then he can propose to her parents for the hand of their daughter. The bride’s
parents get bride-money from the groom, a kind of compensation for the upbringing
consisting of natural produce or money. Many a time this is returned to the bridal
couple on the wedding day. In the country the newly married often stay with their
parents until they have the first child.

SOURCE: Naver [accessed 8.09.09] Naver encyclopedia

3/ Educational system of the country

The attendance at national schools in Thailand is free of charge, from the age of 7
years there is compulsory school attendance which, since 1998 at least takes 6 years.
During the past centuries the degree of alphabetization in Thailand compared with
previous generations is due to the growing amount of pupils and students heavily
grown. Meanwhile almost 40 % of all Thai elementary schoolchildren change to
higher schools. For studying at a college/university a receiving test is the premise,
moreover there is big competition for the college places. The share of male students in
Thailand is much higher as the women. Main reason is that male students can stay for
reasonable money in many Wats (temples), whereas women cannot pay for expensive
accommodation while studying.

SOURCE: Ko Change VR [accessed 9.09.09] Education in Thailand

4/ Religious systems in the country

The most (about 95 %) Thais are Buddhists (for the most part Theravada-Buddhists).
Apart from this there are approximately 4 % Muslims, mainly living in the south of
Thailand. Moreover there is a Christ minority, primarily living in Bangkok, as well as
few Hindus and Sikhs in former Siam.
The every day live in Thailand is very much coined from Buddhism. Young Thai men
according to the Buddhist tradition have to live for at least 3 month as a monk in one
of the temples (wats), being in almost every Thai village. At the beginning of the
religious education of Thai men the ordination ceremony takes place, where in
memory of the ancestors food is sacrificed. The Buddhist “spirit of giving” is despite
of the growing materialism also entering Thailand, still alive. Generosity against
others is to make sure that oneself befalls the same and furthermore serves to provide
a good long term relation to their fellowmen. The own “karma”, the balance sheet of
“debit and credit” of former lives authorizes the social and corporate position of the
present live of the Thais. The more good you do the higher will the status be in the
next live.

SOURCE: : Ko Change VR [accessed 9.09.09] Religion in Thailand

D. Political and Legal Environment

1/ The political structure and main political processes for the country

The official form of government in Thailand is since 1932 the constitutional

monarchy.
Thailand’s head of state is King Bhumipol Adulyadej (Rama IX, born on the 5.12.
1927) since 1946. His official enthronement was held in 1950. Despite several
attempted coups Thailand’s king. Admittedly he has only little political competences;
the governmental power has the Thai prime minister who runs the governmental
businesses with the aid of the cabinet. Thailand’s legislative lies in the national
assembly which consists of elected delegates of the representative chamber and
appointed members of the senate who must not belong to any party. The legislative
period of the parliamentarians is 4 years.
The general electoral law Thais achieve at the age of 18. In 1932 the former Thai king
lost his power due to the revolution. However, to the king himself, the Thais are very
regardful. For example stamps with the image of the king are not licked with the
tongue but are moistened with a sponge, bank notes should be stored in the purse with
the picture of the king is not upside down. Stepping on a bank note consciously can
cause mayor trouble, in worst case can even lead to a prison sentence.

SOURCE: Royal Thai embassy [accessed 9.09.09] Business information centre

2/ The legal environment for business, including issues such as the environment,
attitudes toward free trade or protectionism, consumer protection and rights,
degree to which marketplace is regulated

A 2006 survey conducted by the Japan External Trade Organization (JETRO) showed
that Thailand was the “most optimal location for establishing a production/sales base
in the coming 5-10 years”
There are many reasons why Thailand is a favorable choice for the investors:
 2.1 Growing Economy
Economically, this country of 64 million people is characterized by steady growth.
Abundant natural resources and a skilled and cost-effective work force help attract
foreign investment, enables them to prosper and help develop industry in Thailand.

2.2 Social and Political Stability

Thailand is a welcoming country. The country’s form of government – constitutional
monarchy – allows democratic processes and reforms, and is balanced by the Thai
people’s peace – loving nature, of the people in Thailand are Buddhist, all religions
are welcome, and His Majesty the King is the patron of all religions.

2.3 Government Support and Incentives

Numerous government agencies support investors. Through the Board of Investment,
the government offers a range of tax incentives, supports services and import duty
concessions available to an extensive list of business that are regarded as priority or
promoted activities.

Through the Board of Investment, there are no foreign equity restrictions in the
manufacturing sector, no local content requirement, and no export requirements as
Thailand’s investment regime is in total compliance with WTO regulations.

The Board of Investment also coordinates the activity of the One-Stop Service Center
for Visas and Work Permits, which enables foreign staff of BOI-promoted companies
to obtain work permits and long-term visas within 3 hours or less.

Other government organizations, like the Department of Export Promotion, and

international chambers of commerce, provide invaluable support and a host of other
important services.

2.4 FDI policies

The country’s well-defined investment policies focus on liberalization and encourage
free trade. Foreign investments, especially those that contribute to the development of
skills, technology and innovation are actively promoted by the government. Thailand
consistently ranks among the most attractive investment locations in international
surveys, and a 2006 World Bank report indicated that Thailand was the 4th easiest
country in Asia in which to do business, and the 20th easiest in the world.

Thai legislation to protect the rights of consumers includes the Consumer Protection
Act, the
Unfair Contract Term Act and the Trade Competition Act. The Consumer Protection
Act (1979)
addresses five basic rights, namely, the right to be informed, the right to choose, the
right to safety, the right to redress and the right to fair contract terms.

SOURCE: Royal Thai embassy [accessed 9.09.09] Business information centre

E. Financial Environment

1/ The national currency, its denominations, its stability, its convertibility in the
world market place, its conversion rate (AUD)

29.11 baht (THB) = 1 dollar (AUD)

Monetary system: 1 baht = 100 satang

2 coins of 50 satang = 1 baht
4 coins of 25 satang = 1 baht
Calculating coins: Satang: 1, 5, 10, 25, and 50
Baht: 1, 5, 10

SOURCE: Trade foreign currency online [accessed 9.09.09] Thailand currency

2/ The banking system, its adequacy, its role in the domestic and international
economy

The central bank is the Bank of Thailand, established in 1942. It operates as an

independent body under government supervision; its entire capital is owned by the
government. The bank of Thailand's mission is to provide a stable financial
environment for sustainable economic growth in order to achieve continuous
improvement in the standard of living of the people of Thailand.

It defines its roles as:

1. To promote monetary stability and formulate monetary policies.

2. To promote institutions’ stability and supervise financial institutions.
3. To provide banking facilities and recommend economic policies to the
government.
4. To provide banking facilities for the financial institutions.
5. To manage the country’s international reserves.
6. To print and issue banknotes.

Since May 2000, the bank has targeted inflation, replacing money supply as the core
of its monetary policy. Its current target for core inflation is 0%-3.5%.

SOURCE: Wikipedia [accessed 9.09.09] The Bank of Thailand

F. Economic Environment:

The Thai economy went to deep recession in 1997/1998 as a result of several financial
problems facing many Thai firms, particularly bank and finance companies. An
economic turned around requires rescheduling the large short-term foreign liabilities
of Thai firms, restoring high rates of export growth to finance foreign liabilities, and
extensively recapitalizing the banking system.

1/ Strength and weaknesses of the country, major industries and primary food
staples:
Thailand continues to be one of the faster-growing economies in Southeast Asia, with
GDP growth rates of at least 5 percent from 2002-2004. Despite the effects of the
tsunami at the end of 2004, the Thai economy is expected to have registered 4.7
percent growth in 2005. The Kingdom continues to benefit from political stability,
growing exports, and strong domestic consumption. Per capita income exceeds
$2,500, and there is a growing middle-class increasingly interested in higher-end
products and services from abroad. Thailand has the largest automotive production
base in Southeast Asia, and surpassed the one million vehicle production mark in
2005, with approximately 400,000 vehicles exported to other countries in the region.

Thailand is the second nation in Southeast Asia to embark on free trade negotiations
with the U.S., and both sides hope to complete negotiations on an agreement in 2006.
Through the FTA, the U.S. hopes to reduce high tariffs on a number of imported
products as well as non-tariff barriers on both industrial and agricultural goods,
restrictions on access to the services market, and deficiencies in Thailand’s
intellectual property protection. Under a separate 1966 Treaty of Amity and Economic
Relations, U.S. companies operating in Thailand are afforded national treatment or an
“equal playing field” with Thai companies, a privilege offered to no other trading
partner. Over 1,400 U.S. companies have taken advantage of the Treaty’s privileges,
and investment matters are currently being discussed as part of the FTA negotiations

Thailand’s major industries are electronics, gems and jewellery as Thai is a country
which has an Chinese culture, people who are living in Thai love to where anything
that make from gold with a complex design, that’s why jewellery is one of the major
industries in Thailand. Beside that, Thai economic is also popular with footwear,
textiles, clothing and mobiles industries as same as other Asian countries.

The staple food in Thailand is rice, khao. Most people in central and southern
Thailand eat khao jao (plain rice) with every meal, even breakfast. In the north and
northeast, people eat khao nieow (sticky rice) with their hands, as we would potato
chips. The sticky rice is rolled into a small ball and is then dipped into different
sauces. All of the dishes that we call main dishes or side dishes are called gap khao
(with rice), so everything is "with rice," except the rice!

2/ Standard of living, income levels, income distribution:

2.1 Standard of living:

Thailand has developed greatly over the past years with growing facilities and
job opportunities for people. Living in Thailand is not a problem if one is hard
working and has a strong urge to work. There are various types of people
residing in the exotic country of Thailand. There are war veterans, students,
westerners as well as common people with normal jobs in Thailand. There are
permanent as well as long-time residents in Thailand apart from the
innumerable tourists who frequent the country at a rapid rate. Many tourists
get so enchanted with the scenic beauty of the place that they make Thailand
their permanent address.
The standard of living in Thailand is almost at-par to the other south-eastern
Asian countries. A plan to settle in Thailand should be decided in advance and
a job should be grabbed before landing into the country. There are ample jobs
available in the country, which range from language instructors to
programmers, from bar work to working in the diving industry. Living in
Thailand is no problem as there is nothing as rigid class distinction in the
country.

There are various classes in the Thai society and there is peace and harmony
between all the classes in the society. There are various types of
accommodation facilities in the exotic country of Thailand. The privileged
classes usually reside in large mansions and villas, while the middle class
prefer to stay in small houses and rented apartments.

Thailand has a better standard of living compared with most of it's close
neighbours, But economically standard of living does not always mean to
much, as even though the standard of living statistics may be much better in
the USA, compared with Thailand, the cost of living is also much higher, so
some one in the USA may earn US $20,000 a year and be living in a trailer
park or renting in poverty, where some one in a small village in Thailand may
earn the equivalent of US $5,000 a year, just 25% of that person in the USA,
but the difference is the person in Thailand can afford to buy there own home
on that income. I think your economic position, compared with other people in
the country, is more important than standard of living for that country.

2.2 Income of Thailand:

The income of Thailand has increased a lot since 1975 until 2000 from $625 to
$1831 through the effects of agricultural factors, financial development, and
education level as well as poverty incidence and has reached the more
developed country status.
The changed in sector of industry from the agriculture to non-agricultural play
very effective role in determining the income distribution in Thailand.
The impact of the shift in sector of industry seems to be larger than other
variable.
Thus, the increasing in income inequality in Thailand are mainly come from
the changed in sectoral.

2.2 Employment and unemployment in Thailand:

In reviewing Thailand's employment situation, four major problems stand out.

First, poor education and limited skills make it difficult for labourers to adjust
quickly enough to the increasingly rapid changes in a shrinking world.
Second, there exists a labour mismatch: as unskilled labourers tend to be
underemployed, this further aggravates the nation's already acute income
disparity. Third, lack of comprehensive social security systems covering the
 majority of the population generates other social problems. Lastly, problems
related to specific groups of labourers, such as children and women, persist.
To rectify these problems, the following policies and measures are advocated:
• Education and lack skills
• Labour mismatch
• Non-universal social security system
• Female and child labour problems.

Source: http://www.tdri.or.th/reports/published/i24.pdf
http://www.esljunction.com/travel/cost_living_thailand.html

Market opportunity analysis of coffee in Thailand

Thailand is the third largest coffee producer in Asia (after Vietnam and Indonesia),
Consumption demand for both instant and roasted/ground coffee is growing in
Thailand. There are many coffee products of Thai and international origin on the
shelves of the supermarkets and stores. Many more modern cafés or coffeehouses
have been established in the big cities in recent years.

According to the World Trade Organization (WTO) Agreement, Thailand has to open
its coffee market and adjust its tariff and tax as related to the regulations of the
agreement. Also for the Asian Free Trade Agreement (AFTA), coffee is listed as one
of the sensitive commodities, which has to reduce the import tax over the years 2001 -
2003, and the tax in the year 2010 has to be reduced to 0.5 % and this tax will creates
an opportunity for Starbucks to enter Thailand’s coffee market. According to the list
of countries by coffee consumption per capita (Year 2007) Thailand standing at level
114 over 182, it means coffee consumption in Thailand is still
very low with less than half a kilo per person per year (in contrast to Finland's average
of 14 kilograms, Germany's 8 kilograms, Italy's 5 kilograms, USA's 4.5 kilograms,
Japan's 2.5 kilograms) and it is not going to be an easy venture for Starbucks to
success in Thailand. They have to cater and identify demand patterns what the
consumers more likely prefer; these include the variety of choices, convenient prices
and innovative products.

The premium coffee market is estimated to be worth 500 million to 700 million Baht
a year. In Thailand Coffee World a Thai- owned premium is the largest coffee chain
which has over 31 coffee shops in Thailand will be the main competitor for Starbucks
and others competitors include Gloria Jean’s, Coffee Bean and a host of other coffee
kiosk outlets which have create more compete against Starbucks. “It’s a very tough
market. The gross margins are big, but the net margins are small” Mr. Janssen
managing director of Coffee World said. However, "Before, people might have had a
choice of three or four brands of fresh ground coffee in supermarkets, but now they
might have seven or eight to choose from." Starbucks having even more choices for
the convenience for the consumer, it will well adapt to the coffee market in Thailand.
In September 2006 political problem occurred in Thailand and it has a huge affect to
the economics of Thailand. Thailand has five prime minister in two years due to the
conflict between their political party and it makes Thailand economics not stable at
the moment, foreign company such as Starbucks must consider carefully if they want
to enter Thailand coffee market.

Coffee is the third major income earner for Thailand and Thailand exports 60,000t of
Robusta coffee, while 20,000t are used for soluble, roasted, ground, and canned
coffee in the domestic market. This will be a good distribution channel for Starbucks
because they can use the local ingredient, Starbucks do not need to import ingredient
from overseas and it helps them to cut down the price to suit Thailand market.

Since cafes and coffees have become like peoples aspirations, creating a brand image
in the mind of the consumers is very important.

Source:

http://www.scribd.com/document_downloads/18619977?
extension=pdf&secret_password=

www.euromonitor.com/Coffee_in_Thailand

http://74.125.153.132/search?
q=cache:Dse4MPkMrngJ:www.coffeeworld.com/press/eng/press_3.asp+coffee+mark
et+in+thailand&cd=3&hl=en&ct=clnk&gl=au&client=firefox-a

http://www.discoverythailand.com/directory_coffee_shops_restaurants_and_bars_ban
gkok.asp

https://www.cia.gov/library/publications/the-world-factbook/geos/th.html

http://www.idrc.ca/en/ev-68148-201-1-DO_TOPIC.html

http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Thailand-
INTERNATIONAL-TRADE.html

Marketing Strategy Recommendation

To have a success business in the new country, my team are recommending some
marketing strategies:

1. Devise marketing strategy in the target market:

Thailand is a developing country, the life of people who are living in Thailand are
getting more convenient and better day by day. The income of working people have
increased a lot since the past couples of years before until now, by that, they are
finding the way to enjoy their life more, and Starbucks is the coffee brand name that
will make they feel like life are moving 1 step above.

Beside that, Thailand is the country of tourism, research showed that there are about 1
million people from all over the world came to visit Thailand every year, they are
from many other countries such as Australia, China, Vietnam and some countries in
Europe such as Germany, Italy and America also. For the people who are coming
from developed countries, Starbucks is a brand name that really familiar to them and
some of them really love to drink Starbucks coffee. For the people who come from
developing countries such as Vietnam, Cambodia who are never heard about
Starbucks, they will really eager to try this famous coffee brand name.

The international exchange rate from Australian Dollars to Thailand currency is not
very high compare with other Asia countries such as Vietnam, Cambodia… so it is
not a problem for people to drink Starbucks.

2. Enter the market:

• Indirect exporting:
To target Starbucks into Thailand, we will find an agent who will help us to do all the
things that needed which are new to us such as:
 Translate and publish our website from English to Thai language
 Can be our Advertising agency in Thailand and use various kind of
media to build Starbuck’s brand
 Create and develop our packaging in Thai languages
The local agent will also help us to choose where are the best locations for us to open
our coffee shop which will attract many people who are walking pass by everyday.

• Strategic alliance:
A strategic alliance with a company selling a complementary product or service can
provide more effective market access, resulting in more foreign sales in less time. As
with indirect exporting relationships, contractual agreements with partners must be
stated in clear terms.
With this strategy, Starbucks will easier to target Thailand market in a short time with
help from the companies which are already in the Thai’s market in along time.

3. Get Starbucks in the market:

Every market has its own set of rules and regulations covering safety, health, security,
packaging and labeling, customs and duties among other things. Thailand is now a
growing country compare with other countries in Asia, that’s the advantage for the
foreign company to invest for new product like Starbucks coffee. And another thing is
that the government of Thai land also offers a range of tax incentives, supports
services and import duty concessions available to an extensive list of business that are
regarded as priority or promoted activities.
That are some advantage things in Thailand would make the new business easier to
enter into the market, beside that, packaging and labelling is also a very important
point for the new product because the process fee is really cheap with nice design and
unique, which will be suitable with the lifestyle as well as the culture in Thailand to
make the product more effective and attractive to the new customer.

4. Put Starbucks into practice:

To build a success brand in the new country like Thailand, we will expand the
promotions to attract the customer. Thailand is a developing county, income of the
people increase a lot that’s why people can enjoy their life more and try the all the
new products from oversea.
Beside that, Thailand has built a very good banking system to provide a stable
financial environment for sustainable economic growth in order to achieve continuous
improvement in the standard of living of the people of Thailand.
Thailand also located next to the biggest sea which can be imported goods from other
country. Time by time, Stabucks will be the popular brand in Thailand.

Promotion:
1. Product introduction:

We can make a big bang into Thailand about Starbucks buy giving free
sample, which will come with a small teddy bear with the Starbucks logo on
the bear in shopping centres as well as the crowded street. That will attract all
the people about our new products effective way.
Another impact way to introduce Starbucks to the people who living in Thai
land is that we will have groups of people who will drive motorcycle on the
street with helmet, shirt and motorcycle designed with Starbucks logo because
Thailand is a country still has the main transportation is motorcycle, these
groups will go all over the street in Thailand to promote Starbucks coffee.

2. Sports promotion:

National sport in Thailand is kick boxing which is Thai’s life and bride,
everybody in Thailand really like to watch this kind of sport. Our group has
build a unique promotion to attract customer is we will go to all the stadium
which will kick boxing will take place to introduce about our products to the
customer, we will give out free small cups of coffee to all of them as well as a
5% discount voucher for the first time when they visit Starbuck store from
anywhere in Thailand.

3. Membership Program:

Membership card will be provided to people who has came to Starbucks

coffee more than 3 times since the first time, that will make the customer feel
 more eager to come to Starbucks than other coffee shop because in other
shops, membership card may only provided after many times drinking coffee.
With this membership card, consumer will get 10% off every time they come
to the store whenever they come to drink coffee or buying souvenir from our
store because we also sell souvenir such as Starbucks mugs, teddy bears..ect.

4. Buy one get one Offer:

With this promotion, we believe Starbucks will make a big bang in Thai land
market. Customers who come to Starbucks will have a extra free coffee as a
gift from our store.
Buy one get one free is the most popular marketing strategies that have been
used by many other brand. Starbucks is not apart from that. Research shows
that, with this strategies, number of customers will be increase a lot from the
first day that we expand our business.

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