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

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

3. 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 40110 - Tel: 043-218105, Fax. 043-218106 - E-Mail : kkc_khonkaen@hotmail.com,kkc_khonkaen@hotmail.com - Website: www. Kkceramic.com - Established in:1991 - Capital Register:US. 100,000.- - Employees:105 - Bank:TMB, KBANK - Area: 3.7 ha - Quality certificate:during certain standard - Incomes: Domestic 30% and Export 70%

4. 1./ Introduction (Cont’)

5. 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

6. 2./ Products (Cont’)

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

8. 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

9. 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

10. 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…

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

12. 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

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

14. 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 6.2.1 Domestic : 3 Customer Classes - High quality - Medium quality - Normal quality 6.2.2 Export : China, Vietnam, Malaysia

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

16. 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

17. 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

18. 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

19. 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…

20. Thank you for your attention