Purpose and Scope of Work
The purpose of this study is to determine the possibility of opening the “the Third Place.” In this report we provide a clear definition of what “the Third Place” means. Including crucial information and detail about this business. Such as business background, opportunity, problems, and demonstrate the potential to be successful. We also provide SWOT analysis, using to compare this business to other similar business in overall market situation. This report is also to gain necessary information and provide them to business investor which will help in the process of decision making and encourage investors to have confident in our business. Furthermore, this report will reveal new idea or knowledge about this business, and therefore use it for further improvement.
Sources and Methods
To find out necessary detail, we adopted three methods which are; (1) surveys, (2) interviews, and (3) internet research. We targeted at Chula students, Chula staffs and teachers, and Satit Chula students. Our target market will be teenagers to middle class people with average income to high income in Chula area. The sources of our information were directed study from these groups of people.
The total amount of 100 surveys was randomly distributed to theses groups of target. Moreover we interviewed five business owners in the area to identify the potential problems that could occur. Despite the two methods, we also need secondary information over the internet to help us gather the best information for this report.
Report Organization
This report will show the preference of people, especially prospect in our business. It tells the study behind this business and listed in many sub headings. Also gives the analysis of the result found, and recommend step in starting up the business.
DEFINITION OF “THE THIRD PLACE”
The “first” place as our home and those we live with. Our second place is the workplace — where we may actually spend most of our time. Third places, then are "anchors" of community life and facilitate and foster broader, more creative interaction. All societies already have informal meeting places; what is new in our day is the intentionality of seeking them out as vital to our current societal needs. (From Wikipedia, the free encyclopedia)
In our own word “the Third Place” is an extra place, despite home and school (or office). A "home away from home", the café section of the place will be decorated outfitted with comfortable chairs, as well as the usual tables and hard-backed chairs found in cafés. Free electricity outlets are provided for patrons, and many branches also have wireless internet access. The atmosphere will be cozy and relax. Music such as pop or jazz will be played. This will give a wonderful environment for study, hangout, and friend gathering.
“The Third Place”’s Services
The Third Place will provide services including;
- Full access to the Internet and other computer services. Internet and computing services available to The Third Place’s customers are listed below:
- FTP, Telnet, Gopher, and other popular Internet utilities will be available.
- Access to Netscape or Internet Explorer browser.
- Access to laser and color printing.
- Access to popular software applications like Adobe PhotoShop and Microsoft Word.
- Access to file transfer protocol
- Access to communicate through MSN, ICQ, etc.
- Access to electronic mails
- Printing Corner- with printing, scanning, CD burning and photo copy service.
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Chimney Coffee Shop- by cooperating with the Chimney Coffee Shop, we are able to provide customer with quality food and drink. (See also illustration0)
- Sitting area with comfortable sofa, hard-back chair, and table.
- Private study room that could fit 4-5 people.
- Locker renting service(only for member of the Third Place)
- Clean restroom
- Parking lot(only for member of the Third Place)
Good coffee, specialty drinks, bakery goods, and a comfortable environment will provide The Third Place customers which is a place to enjoy the benefits of computing in a comfortable and well-kept environment.
Membership
The Third place is the very first café with the membership in Chula area or maybe in Thailand. Membership will receive broader range of service like car park, locker, and discount. The member of the Third place can be sure that they will always be a place for them here. No doubt those members will receive greater benefits than typical customers. Membership fee will be set around 2,000 baht(referred from the survey result) Many advantages will be given such as;
- Free wireless internet service
- 30% discount at the Chimney bakery and printing service
- Private parking lot
- Locker rental
- Private study rooms
We will emphasize on persuading people to become member rather than trying to get new comers. We think that membership will be more profitable and workable in long lasting outcome situation.
High Technology Services
The Third Place will invest in high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to work with. The Third Place will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with Internet cafes, is the state of the art equipment available for use. Technological services such like this will attract many customers. Although, the cost of investing in theses technological devices are high, but it is a cost that worth paying for. The cost of each device is stated below.
Price list of technological devices
Illustration1(www.pricewatch.com)
BUSINESS BACKGROUND
Market Analysis -The Third place has an exciting opportunity of being the first mover in the cyber-cafe market. The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in the Chulalongkorn University area. Our research shows that area around Chula has 45 coffee shop and about 17 similar business opening. With only two coffee shops that provide access to internet; Starbucks, and True Coffee Shop. These two coffee shops are yet consider far, only the Faculty of dentistry has easy access to Siam Square. Most faculties like has to walk very far which is inconvenient.
Competitive Comparison -The Third Place will be the first Internet cafe in Chulalongkorn University area (Walking distance). The Third Place will differentiate itself from the strictly-coffee cafes in the area by providing its customers with Internet and computing services.
The Third Place will obtain computer support and Internet access from IBM. IBM will provide the Internet connections, network consulting, and the hardware required to run the network. We will provide The Third Place with coffee equipment, bulk coffee, and paper supplies. At this time, a contract for the bakery items has been completed. The Third Place has currently negotiated with Chimney coffee shop.
The Third Place has no primary competitor since there is no single internet café with membership in this area. Still there are many secondary competitors; traditional café, bakery shop, cafeteria, internet service shop, library, and typical restaurant. Here is the list of our secondary competitor;
- Starbucks
- True Coffee Shop
- TCDC
- Creative Park at Central World
- All Chula cafeterias
- All Chula libraries
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Coffee & Snacks at Faculty of Political Science, Chula
- Internet service shops in Sam Yan market
- Ton Kok (bakery shop) in Sam Yam market
- Ton Horm restaurant
- Koolibar
- Preaw Pak
- BKK Steak
- Hob Nob café
These services are giving service in their own specialty; the Third Place will sum up all their services and provide it in just one place, one stop. Many advantages of this business will be demonstrated in the next topic.
SWOT Analysis
Strength-Our business is “A Third Place” which is a place that provides spaces for people to hang out, reading books, study in group, and relax which no others business provide services like we will provide to our customers, we can affirm that we are the company that will do this business. So we only have an indirect competitors like Starbucks, True coffee, TCDC, and others coffee shops to compete with our business. “A Third Place” is a combination of library and coffee shop; it’s providing a place to drink coffee, study, hang out, around campus area. Moreover, “A Third Place” also provides many services to our customers such as internet, wireless internet, copy center, lockers for rent, and parking spaces for members. “A Third Place” also located on Jamjuree Square area which is very comfortable for our target customers. By giving a membership to the customers, “A Third Place” will provide it customers a prestige privileges as we provide such services to our customer this can help us to build a long term relationship with customers so they might be our committed customer in future.
Weakness- As our company is the first company which was founded this kind of business that provides such services, it might have difficulties to create awareness and attract people interest about this kind of business, “A Third Place.” And “A Third Place” also has to compete with many businesses that have similar services as “A Third Place” such as Starbucks, True coffee, and Blue cup.
Opportunities- This year Thai economic have growth from its previous projection of between 4-5% to 4.3 - 4.8%. Although the GDP is decrease from last year but it still improves even it improves just in 2-3% if compare to Japan, even though Japan has high GDP but there are not growing. As the economic grow investors both Thai and foreigners are more confident to invest in Thai market. Additions to an increasing percentage of workers now , not from home, but from a third place. Workers cite isolation when telecommuting from home and find working in public spaces a happy medium between the home office and the corporate office. Availability of public has been a major enabler of this trend, and an increasing number of chains are catering to it
Threats- The oil prices which continue to increase in world market and the uncertainty of political direction of Thailand may lead investors, both Thais and foreigners doubt about the certainty of business investment. And, since internet café is a fast growing business, it is scary of how many new internet café will be open in the area and become our competitor in the near future.
RESULTS OF WHAT WE FOUND
Surveys- As we survey 100 people around Chulalongkorn University which mostly are undergraduate student.
- 47 people drive to campus and workplace
- 36 of them have problem about finding a parking space
- Park a car aside the street (53.19%)
- Park inside Chula (44.68%),
- Park at Jarmjuree Building (10.63%),
- Park at Siam (6.38%)
- The rest do not have problem about finding car park because their workplace or faculty located near Siam and MBK Center.
They also have problem about finding a place to read book during the exam period, a place to arrange group meeting, and a place to use internet/computer/printing service. Most students go to read book at coffee shop, such as Starbucks and Au Bon Pain, because they can have something to eat during the meeting/reading, and they like the atmosphere. They also think that it is the place that they can stay as long as they want. Some said they don’t know where to go so they read and arrange meeting at home. Some also like to go to library because it is quiet.
Most of them feel that it would be good if there is “The Third Place” where they can read book, have a meeting, hang out with friend, and relax after class because the coffee shop is sometimes crowded and noisy. They said they will go if that place if it is exists. The atmospheres that they want are;
- Chilling like sitting in your own place (65%)
- Quiet like a library (35%).
- Suggestion that “The Third Place” should provide study place (28%)
- Suggestion that “The Third Place” should provide bakery beverage (21%)
- Suggestion that “The Third Place” should provide Internet/computer/printing service (23%)
- Suggestion that “The Third Place” should provide locker (15%)
- Suggestion that “The Third Place” should provide parking space (13%)
About the membership fee per year of “The Third Place” most people think that;
- 3,000 Baht is too expensive.
- 1,500-2,500 Baht is reasonable
At the end of the questionnaire some people suggest that “The Third Place” should locate near Chulalongkorn University or Siam Paragon, and should provide some books to borrow. Some comment that it is very good to have printing service because sometimes the students need to print their work at campus but in there are only 2-3 place in Chula that have this service. Some of them also want the cost of all service be included in membership fee. All respondents satisfy to have a place like this and state that they will go there. The results from surveys in detail are;
1. Gender
-Male 35
-Female 65
2. Education Status
-High School 23
-Undergraduate 55
-Graduate 22
3. Do you drive to school or university?
-Yes 47
-No 53
4. For the person who drives to school or university, do you face the parking space problem?
-Yes 41
-No 6
5. For the person who drives to school or university, where would you like to park your car? (Can choose more than one)
-Jamjuree 9 5
-Aside the Street 25
-Siam Square 3
-Inside Chula 21
Illustration2
6. Do you have the problem with the textbook such as it has a big size?
-Yes 79
-No 21
7. How often do you use the internet?
- Everyday 28
- 4-6 days per week 42
- 1-3 days per week 30
- Never 0
Illustration3
8. Do you want to have an internet provider near your campus?
-Yes 100
-No 0
9. Where do you usually go to study?
- Coffee Shop 64
- Home 24
- Library 12
Illustration4
10. What kind of study place do you think it should be?
- Chilling like sitting in your own place 65
- Quiet place like a library 35
11. What kind of services which you think The Third Place should provide? ( the respondent has to choose 3 things)
- Bakery and beverage 65
- Internet/Computer/Printing 70
- Locker 45
- Parking space 41
- Studying place 88
Illustration5
12. What do you think about “The Third Place” which is a place that you can go to study and hang out - providing internet/computer/printing service, coffee shop, locker, and parking space?
- No one said it’s bad
- Most people said they like it and they will go there
- Some suggest it should located near Chula
- A few respondents suggest about book renting service
13. What is your acceptable price for membership fee of “The Third Place”? (Per year)
- 1,500-2,500 Baht 66
- 2,500-3,000 Baht 29
- More than 3,000 Baht 5
Illustration6
Interviews- We conducted short individual interview of shop owners in the area around Chula. The purpose of these interviews is to find out any necessary and possibility involving with this kind of business in area around Chula. We hope to find out about problems which we could use as precaution and use it to improve this business plan.
Five interviews of shop owner near Chula
Illustration7
From interviewing five business owners in the area, we found that all five businesses are still young, and have high risk of having business changes. Many business owners faced with the problem of high rental price for shop location, and lack of parking space. And Chula students are their usual customer.
Internet Research- We searched in numbers of websites, chat room, blog, etc. Our main search area is in Chula website and chat room because it directs to out target market. First the purpose of internet research is to find out business background about this business, and to find a list of location which the café will take place. But while searching, we also find interesting information of opinion of people towards business around Chula area. From Chula main website, an article for staffs, teachers, and students of Chula, “ It is always crowed in Chulalongkorn university, it is even more chaos during lunch time, students were killing themselves waiting in line for lunch while teacher had to find other places to have lunch. There should be more places provided for member of Chula.” This indicated that the need of Business like th Third Place is there.
We listed number of location which we found interesting and reasonable, the list included; Siam Square, Siam Paragon, Sam Yan market, U-Center, and Jamjuree Square. We were able to find the price and deal of every location which helped us to evaluate the best location for the Third Place. Our location will have to be large, and have many parking spaces. Jamjuree Square is the best fit for our business.
Illustration8
Average Coffee and Bakery Shop
After conducted surveys on our target customer, we were able to find out the reference of people. Surveys about 65 % showed that people would like most to have coffee and bakery shop at the Third Place. Also many people worried about the price would be too high, and unfit able for custom consuming behavior. Starbucks is coffee shop for higher-income people; people with lower-average can not buy Starbucks every time. So we choose to cooperate with the local bakery shop, Chimney. This bakery shop owns by Thai businesspeople with the goal of serving good quality bakery to local Thai people. According to their sell plan, they had made a fast growing rate for their shop. In year 2000, the first shop was established in Suphanburi; 2001 at the Kinlom Chom Saphan restuarant, Bangkok; 2003, the second shop for Suphanburi, and 2005 at Sathorn road, Bangkok. And they receive credibility as small caterer in funeral, meeting, and event by providing quality snack box. The illustration in the next page is Chimney menu, only at the Third Place.
Illustration9
Better Socioeconomic
“Chulalongkorn student are Hi-so and often come from family with famous reputation, most of them drive fancy car to school and use brand name product like Louis Vuiton.” A qute from blogger in Siam2you.com, this was posted under the topic of “Which University is the richest.” Many people who posted answer Chula as the richest in term of student and teacher.
Chulalongkorn students, Satit Chula students, as well as some teachers have high socioeconomic status. Most of theses people are in international program, BBA, EBA, for example. They are our primary target. This group of people spend good amount of money each day for their clothes, food, drinks, and unnecessary things. Our business required some expense which makes this group of people a higher possibility to become our member.
PROMISING OPPOTUNUITY IN BUSINESS
Thailand has highly business expansion rate over the past few years, especially business in small to medium size (SME) that comes with creative idea. The rapid growth of the Internet and online services has been witnessed worldwide. The potential growth of the Internet is enormous; a computer terminal with an online connection will be as common and necessary as a telephone. For the next five years, the online service provider market is sure to experience tremendous growth. Being the first cyber-cafe in the area, The Third Place will enjoy the first-mover advantages of name recognition and customer loyalty. Initially, The Third Place will hold a 100 percent share of the cyber-cafe market in Chulalongkorn University area. In the next five years, competitors will enter the market. The Third Place has set a goal to maintain greater than a 50 percent market share.
Foreign Investor Confident and Investment Trend
The result of the 2006-2007 survey of foreign investors’ confidence in Thailand shows a very positive result. Survey results on foreign investors’ confidence related to overall business environment factors between 2007 and 2008 found that they had a positive view in terms of the Infrastructure and logistics factor. For the next 2 years, showed that overall they still have confidence in the Thai business environment. (Thailand Board of Investment)
- 43 percent foreign investors planned to maintain their investment in Thailand at the existing levels
- 35 percent anticipated an expansion of their business investments (28 percent planned slight expansions and 7 percent planned significant expansions)
- only 4 percent considered reducing their business size
The Uniqueness, Differentiate from Others
We are the first to establish this so-called business. With an increasing amount of needs and desires to have good study atmosphere, or just good place to relax that ensure us that the Third Place will be success. There is no café which provide full-options of educational service; printing, scanning, copying and internet service with emphasis of creating moods and sensation in Chula area. Nor in any place around Bangkok. The membership and internet service are what differentiate the Third Place to others which we will emphasize on them later in our promotion.
CONCLUSIONS AND RECOMMENDATIONS
To sum up, after collected all useful information about this business and analyzed it. We are certain that The Third Place is a business worth investing. It is like to have high profit later on.
The result of what we have found shows that people of Chulalongkorn University is likely to participate over our business as customer. People tend to like business with new idea and different from others. Also a problem of crowded around Chula area and the trend of people like coffee shop, especially with internet service given us an opportunity to gain many customers.
As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. The Third Place provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that The Third Place provides.
The keys to the success for The Third Place are:
- The creation of a unique, innovative, upscale atmosphere that will differentiate The Third Place from other local coffee shops and future Internet cafes.
- The establishment of The Third Place as a community hub for socialization and entertainment.
- The creation of an environment that won't intimidate the novice user. The Third Place will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer.
- Great coffee and bakery items.
- Bakery items.
Recommendation on how to start …
- The location of the shop should be close to Chula (walking distance) For example, Jamjuree Square, U Center, or Siam Square.
- Target should focus on high class to middle class student and teacher because our service require membership fee.
- The membership fee should be reasonable about 2,500 baht per year
- The car park should be provided for members.
- Staffs must be trained and maintain the same standard at all time, we are focusing on high class to middle class student and teacher which they will expect perfection.
- Drink and bakery will be sale in reasonable price approximately 40-70 bath. Since they already paid for membership
- The Third Place will provide all necessary services for study, such as internet, private study room, copy service, etc
- Open time should be early around 8am. Since we are targeting on student and teacher. Close time will also have to late because student like staying late during their examination.
