Field Visit 10 July 2011, Sunday Khon Kaen Ceramic., Ltd

Team Composition SAK – LAOS NOY– LAOS SANDAR - MYANMAR MA AYE – MYANMAR

1./ Introduction - Name: Khon Kaen Ceramic Co.,Ltd - Contact Person: Mr. Thawatchai Hengprasert, - Position : Managing Director - Address: Moo 4 Mittapab. T.Ban Had, Khon Kaen Tel: , Fax Website: www. Kkceramic.com - Established in: Capital Register:US. 100, Employees:105 - Bank:TMB, KBANK - Area: 3.7 ha - Quality certificate:during certain standard - Incomes: Domestic 30% and Export 70%

1./ Introduction (Cont’)

2./ Products Khon Kaen Ceramic Co., Ltd is a company producing sanitary ware, toiletry, bathroom accessories, decorative items… with 2 brand names: Mato and Tico. They have 6 main products: 1./ Squat2./ Wash basin3./ Soap tray 4./ Paper hoder5./ Outlet6./ Ballustrate/Hawbaw

2./ Products (Cont’)

3./ Production Process Slip makingRaw material: Clay,… Casting Mould making Finishing 1 Drying Finishing 2 Spray Graze Prepare Graze Firing Inspect Packing Transport

The Cluster Diagram Raw Material Transportation Slip making Raw material: Clay,… Casting Mould making Finishing 1 Drying Finishing 2 Spray Graze Prepare Graze Firing Inspect Packing Transport Domestic Firms Warehouse Wholesellers Retailers Export Custormers Government Association

The Cluster Diagram (Cont’) Products / ServiceAreas Allocated / Ha 1. Logistics and transportationThey have own Vehicle: Truck, … 2. Quality ControlOwn QC but no certificate 3. Common websitewww.Kkceramic.com 4. Conference roomSmall room 5. MachinesDrying machine, firing machine,… 6. Parking spaceok 7. Fire station fire extinguishers 8. Office / administration 9. Security systemSecurity guards 10. Design 11.Government Training, technology, member of association… 12. SMEsRaw material, firms… TOTAL :3.7 ha Client Products and Services

4./ Business Strategies for Competitiveness In Khon Kaen no competitor, competitors are in another provinces: Burilam province, central Provinces of Thailand… 4./ 1. Human Resource: - They have a prblem with workers come and out - Good policy - Social affairs - Good Salary… - Good policy - Social affairs - Good Salary…

4./ Business Strategies for Competitiveness (Cont’) 4./2. Research and Development - Economy of scale (Reduce Production costs)

4./ Business Strategies for Competitiveness (Cont’) 4./3. Build Team work - Make every one have come together and how Keep them to work long term

4./ Business Strategies for Competitiveness (Cont’) 4./ 4. Segmentation/Export target - Checking the new market and interested in current market - Trust with customers

5./ Strategy for Maintaining Growth and Production - Economy of Scale - Inventories control - Raw material check: quality raw material - Quality control: checking product first 6./ Products, Segmentation 6.1 Mass Products: taking big quality over to the market 6.2 Fix Segmentation Domestic : 3 Customer Classes - High quality - Medium quality - Normal quality Export : China, Vietnam, Malaysia

7./ Marketing technique and Distribution 7.1 Domestic : Wholesalers Retailers 7.2 Export : Indochina Region Market (Laos, Cambodia, Myanmar)

8./ Problems and Solutions 8.1 Energy: LPG gas change price 8.2 Manpower: they do not enough workers 8.3 Transportation: Petrol higher price 8.4 Raw materials: not enough and not quality

9./ SWOT Diagnostique Strengths -Locate -Transportation - Technical Process Weakness -HR -Marketing - Design -Quality (no certificate) Opportunitieas -Less competitors -Members of Associations Threats -Raw material -Workforce - Gas prices change -Difficult to compete in the external market

10./ Future Target 9.1 Diversify new product: making new products 9.2 Maintain old products with new design 9.3 Export new market: China, Vietnam, Malaysia 9.4 Expand factories to neighboring countries : Myanmar or Cambodia

11./ Recommendation - They should plan regarding human resource immediately - Diversify products - Export by them self - Find new material sources or expand factory - Get quality standard -Showroom, joining exhibition -Accommodation: shuttle bus, Canteen…

Thank you for your attention