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Background of the Project At the present days, Internet is becoming a technology of every people at every

age and every occupation, available nearly every where at all time. It is a must tool to completed any modern business firm in both E-Commerce and Information provider. As well as a fact that is, good healthy food from organic farming for wealthy and healthy life is always true. There are many cyber shops have emerged every minute but very few for Organic Society. The author is one of the organic farmers who produce a variety of organic products with love and truth. Therefore, Sustainable Home co., Ltd. decided to build a the cyber shop hosted on the E-Organic Mall Server (Which Mr. Krirkpong, P. had decided, built and in operated at Co-location of KSC Internet service provider for the foundation, strengthen and solidarity to the Organic Society in Thailand) to gain higher interest, support, visibility, and alliances. By using the Internet connectivity tool, organic farmer can share their information and trade their products directly to customers, provide customer services and support. produces the line of organic products which got certify from Organic Thailand Authority Committee under certificate TAS 008. targets at the customers who concern about their health and their living standard on both wealthy and healthy life. SustainableHome.Net s products are premium famous organic well certify by both Organic Thailand Agriculture Standards The Department of Agriculture and Quality Food Safety, The Ministry of Agriculture 1

and Cooperatives, we produces every organic products by home made care, with love and truth. There are variety types of products in 4 main departments: (1) (2) (3) (4) Organic Rice. Organic Seasonal Fruits and Vegetable. Herbal&Probiotic Health Promotion and Refreshment Drink. The pure champion blood line of Labrador Puppy.

There are several strategies to be used to manage such as knowledge of Web Publishing And Design, Web Programming, Internet Marketing Plan, Information System Management, Information Security, future plan and other approaches to be conduct to accomplish the goal of the company.


How Domain Name and Internet User Link to Each Other. offers high quality products with reasonable price and more

convenience to the customers. With the marketing strategies and activities would create and maintain the customers satisfaction. These relationships will bring the customers into the long team transaction and brand royalty. As well as knowledge and implication on good healthy living increasing the varieties of product categories is the major plan to implement in the future. Therefore, increasing and maintaining the good relationship with the customers by real time activities, update Organic Society information and reasonable fair trade price are the important keys for the Web Sites success. 1.2 Objectives of the Project The objectives of this project are to design and create a web site that is provides Organic Society news and information and sale of organic products to enhance the business of Sustainable Home co., Ltd. The Web Site is intent to be both provider of the Organic Society and news information about organic standard procedures and farming. Sale organic products also by catalog on line cash upon delivery: (1) (2) To gain more customers both in Thailand and foreign country. To help strengthen the Sustainable Home Co., Ltd. as well as Organic Societys solidarity in Thailand. 1.3 Scope of the Project (1) To provide the organic information about standard procedures and farming online with web board thru the Internet connectivity. (2) (3) To provide the organic products and order thru the To notify updated Organic Society news. 3

(4) (5)

To provide useful Web Site information and organic friendly links Build the Web Site with feature that easily to modify and update in both online and offline, with the protection of availability, accuracy, authenticity, integrity, confidentiality, utility, possession of the Web Sites Information Security.

(6) (7) (8)

To help promote strengthen and solidarity of E-Organic Mall Server Design flexible, effective, simple, and less time consuming way of producing Web pages by using the template method.


Deliverables (1) (2) (3) (4) (5) Project proposal. Project hard copy report. Web Site and text file report. Project power point presentation




Internet The Internet began as a U.S. Department of Defense network to link scientists and

university professors around the world. Even today individuals cannot connect directly to the Net, but individuals can access it through Internet Services Provider (ISP) which is a commercial organization with a permanent connection to the Internet both domestic and international, that sells temporary connections to subscribers.

Figure 2.1.

The Percentage of Internet Users per Continentals. [36]

Internet is the most well-known, and the largest implementation of internet working, linking millions of individual networks all over the world. The Internet has a range of capabilities that organizations are using to exchange information internally or 5

to communicate externally with other organizations. Internet technology is providing the primary infrastructure for electronic commerce, electronic business, and the emerging digital firm.

Figure 2.2.

Infrastructure Components of the Internet. [36]

The Internet is a worldwide network of networks that uses the client/server model of computing and the TCP/IP network reference model. Using the Net, any computer (or computer appliance) can communicate with any other computer connected to the Net throughout the world. The Internet has no central management. The Internet is used for communications, including e-mail; public forums on thousands of topics; and lives, interactive conversations. It also is used for information retrieval from hundreds of 6

libraries and thousands of library, corporate, government, and nonprofit database. It has developed into an effective way for individuals and organizations to offer information and products through a web of graphical user interfaces and easy-to-use links worldwide. Major Internet capabilities include e-mail, Usenet, LISTERV, chatting, Telnet, FTP, Gophers and the World Wide Web.

Table 2.1. Capability E-mail

The Major Internet Services. Functions Supported Person-to-person messaging; document sharing Discussion groups on electronic bulletin boards Discussion groups and messaging using e-mail mailing list servers

Usernet newsgroups LISTSERVs

Chatting Telnet FTP Gophers World Wide Web

Interactive conversations Log on to one computer system and do work on another Transfer files from computer to computer Locate information using an hierarchy of menus Retrieve, format, and display information (including text, audio, graphics, and video) using hypertext links.

Tele-communications All means of communication audio, video and control over the and remote control long distant inter actively. operation

Figure 2.3.

Information Exchange between Web Browsers

and a Web Server. [36]

Figure 2.4.

World Internet Host Count. [48]


Benefits of The Internet Offers to Organizations [36] [37] The Internet, intranets, and extranets are becoming the principal platforms for

electronic commerce, electronic business, and the digital firm because this technology provides so many benefits. The Internets global connectivity, ease of use, low cost, and multimedia capabilities can be used to create interactive applications, and provide services and products. By using Internet technology, organizations can reduce communication and transaction costs, enhance coordination and collaboration, and accelerate the distribution of knowledge. Many organizations use the Net to reduce communication costs when they 9

coordinate organizational activities and communicate with employees. Researchers and knowledge workers are finding the Internet a quick, low-cost way to gather and disperse knowledge. The global connectivity and low cost of the Internet help organizations lower transaction and agency costs, allowing them to link directly to suppliers, customers, and business partners and to coordinate activities on a global scale with limited resources. The web provides interactive multimedia capabilities that can be used to create new products and services and closer relationships with customers. Communication can be customized to specific audiences.


Virtual Community of Internet and E-Commerce. [36]


E-Commerce Electronic Commerce seems to be everywhere these days. It is nearly impossible

to open a newspaper or magazine without coming across an article about how Electronic Commerce is going to change all our lives. Businesses of all sizes are bombarded with


adverts that seem to imply that any company not investing in E-Commerce will be left behind.

Figure 2.6.

The Distinction between Buy-Side and Sell-Side E-Commerce. [36]

E-Commerce, or Electronic Commerce, is an emerging concept that describes the process of buying, selling, or exchanging products, services, and information via computer networks, including the Internet. It is a general term for any type of business, or commercial transaction, which involves the transfer of information across the Internet. This covers a range of different types of businesses, from consumer-based retail sites like, through auction and music sites like eBay or, to business exchanges trading goods or services between corporations. Electronic Commerce has expanded rapidly over the past several years and this growth is forecast to continue or 11

even accelerate. It is likely that in the future, boundaries between "conventional" and "electronic" commerce will become increasingly blur as more and more businesses move parts of their operation onto the Internet.


Categories of Electronic Commerce [36] [37]

There are alternative ways in which electronic commerce transaction can be classified. One is by looking at the nature of the participants in the electronic commerce transaction. The three major electronic commerce categories are business-to-consumer e-commerce (B2C), business-to-business e-commerce (B2B), and

consumer-to-consumer e-commerce (C2C). Business-to-consumer (B2C) electronic commerce: stands for Electronic retailing of products and services directly to individual consumers. These transactions include retail transactions with individual shoppers. In B2C transactions, online transactions are made between businesses and individual consumers, such as, a famous online store in Thailand which sells variety of goods, software, and advertisements to individual consumers, is an example of B2C e-commerce. Business-to-business (B2B) electronic commerce: stands for Business to Business and refers to Electronic Commerce between businesses rather than between a business and a consumer such as, when businesses purchase parts, fuel, or services online. Businesses can often deal with hundreds or thousands of other businesses, either as customers or suppliers. Carrying out these transactions electronically gives obvious 12

advantages over traditional methods. It is faster, cheaper and more convenient., Milacron Inc.s Web site for selling cutting tools, grinding wheels, and metal working fluids to more than 100,000 small machining businesses, is an example of B2B e-commerce. Consumer-to-consumer (C2C) electronic commerce: involves consumers selling goods or services electronically directly to other consumers. For example,, allows people to broadcast their products on the web and sell to other consumers by auctioning them off to the highest bidder. There are many other types of E-Commerce transaction and especially mentioned here is C2B (Consumer to Business). This category includes individuals who use the Internet to sell products or services to organizations, as well as individuals who seek sellers, interact with them, and conclude transactions online. The web of this project also has this function. A real estate company that wants to get more property information from individuals, these people can sell their property directly to the company.



Summary of Transaction Alternatives between Businesses and Consumers. [36]


Benefits of E-Commerce Benefits to Organizations: (1) Electronic commerce expands the marketplace to national and international markets. With minimal capital outlay, a company can easily and quickly locate more customers, the best suppliers, and the most suitable business partners worldwide. (2) Electronic commerce decreases the cost of creating, processing, distributing, storing, and retrieving paper-based information. (3) Supply chain inefficiencies, such as excessive inventories and delivery delays, can be minimized with E-Commerce. (4) Pull-type processing allows for inexpensive customization of products and 14

services and provides a competitive advantage for companies who implement this strategy. A well-known example of pull-type processing is that used by Dell Computer Corp. (5) E-Commerce allows for many innovative business models that provide strategic advantages and/or increase profits. Group purchasing combined with reverse auction is one example of such an innovative business model. (6) E-Commerce allows for a high degree of specialization that is not economically feasible in the physical world. For example, a store that sells only dog toys can operate in cyberspace, but in the physical world such a store would not have enough customers. (7) E-Commerce reduces the time between the outlay of capital and the receipt of products and services. (8) (9) E-Commerce supports business processes reengineering (BPR) efforts. E-Commerce lowers telecommunication cost, because the Internet is much cheaper than value added networks (VANs) Benefits to Consumers: (1) Enables consumers to shop or do other transactions 24 hours a day, all year round from almost any location. (2) (3) Provides consumers with more choices Provides consumers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons (4) Allows quick delivery of products and services (in some cases) especially 15

with digitized products (5) Consumers can receive relevant and detailed information in seconds, rather than in days or weeks (6) (7) Makes it possible to participate in virtual auctions Allows consumers to interact with other consumers in electronic communities and exchange ideas as well as compare experiences (8) Facilitates competition, which results in substantial discounts

Benefits to SMEs: Besides the exposure to the world buyers, e-Commerce enhances corporate image for SMEs. With permission from the SMEs, the online transaction disclosure or so-called transaction visibility enables the financial institutions to monitor and financially support SMEs. Benefits to Society: (1) Enables more individuals to work at home, and do less traveling for shopping, resulting in less traffic on the roads, and lower air pollution (2) Allows some merchandise to be sold at lower prices benefiting less affluent people (3) Enables people in Third World countries and rural areas to enjoy products and services which otherwise are not available to them (4) Facilitates delivery of public services at a reduced cost, increases effectiveness, and/or improves quality



Limitation of E-Commerce The most common problem of e-Commerce for CLMV found in this workshop is

lack of technical skills in both technology and business models. They also lack sufficient infrastructure such as computer equipment and network. The legal aspect of the IT is also needed. In addition, fear of the IT dark side exists among parents and among customers. For example, the Internet is abused by teenagers not using for educational activities, but for playing games at most of the times. Technical limitations of electronic commerce: (1) Lack of sufficient systems security, reliability, standards, and

communication protocols (2) (3) (4) Insufficient telecommunication bandwidth The software development tools are still evolving and changing rapidly Difficulties in integrating the Internet and electronic commerce software with some existing applications and databases (5) The need for special Web servers and other infrastructures, in addition to the network servers (additional cost) (6) Possible problems of interoperability, meaning that some EC software does not fit with some hardware, or is incompatible with some operating systems or other components Non-Technical Limitations: (1) Cost and justification; The cost of developing an EC in house can be very high, and mistakes due 17

to lack of experience may result in delays. There are many opportunities for outsourcing, but where and how to do it is not a simple issue. In order to justify the system, one needs to deal with some intangible benefits which are difficult to quantify. (2) Security and Privacy; These issues are especially important in the B2C area, but security concerns are not so serious from a technical standpoint. Privacy measures are constantly improving too. The EC industry has a very long and difficult task of convincing customers that online transactions and privacy are, in fact, very secure. (3) Lack of trust and user resistance; Customers do not trust unknown faceless sellers, paperless transactions, and electronic money. So, switching from a physical to a virtual store may be difficult. [36] [37] 2.7 E-Commerce and Web The World Wide Web is the heart of the explosion in the business use of the Net. The Internet provides a universally available set of technologies for electronic commerce that can be used to create new channels for marketing, sales, and customer support and to eliminate intermediaries in buy and sell transactions. Companies can use the web to provide ongoing information, service, and support, creating positive interactions with customers that can serve as the foundation for long-term relationships and encourage repeat purchase.


Figure 2.8.

Model of Internet Customer Satisfaction. [36]

Manufacturers can sell their products and services directly to retail customers, by passing intermediaries such as distributors or retail outlets. Eliminating intermediaries in the distribution channel can significantly reduce purchase transaction costs. By selling directly to consumers or reducing the number of intermediaries, companies can achieve higher profits while charging lower prices. The elimination of organizations or business process layers responsible for intermediary step in a value chain is called disintermediation.


Figure 2.9.

Disinter Mediation Push and Pull on Supply Chain. [36]

Interactive capabilities on the Web can be used to build closer relationships with customers in marketing and customer support. Marketers can use the interactive features of web pages to hold consumers attention or to capture detailed information about their tastes and interests for one to one marketing. Web sites have become a bountiful source of detailed information about customer behavior, preferences, needs, and buying patterns that companies can use to tailor promotions, products, services, and pricing. Firms can use various web personalization technologies to deliver web pages with content geared to the specific interests of each user, including technologies to deliver personalized information and ads through m-commerce channels. Personalization can 20

also help firms form lasting relationships with customers by providing individualized content, information, and services.

Figure 2.10.

Show how Internet Impact Buying. [36]

Companies can also reduce costs and improve customer service by using Web sites to provide helpful information as well as e-mail and even telephone access to customer service representatives. The web provides a medium through which customers can interact with the company, at their convenience, and find information on their own that previously required a human customer support expert. Automated self-service or other web-based responses to customer questions cost one-tenth the price of a live customer service representative on the telephone. 21

B2B e-commerce generates efficiencies by enabling companies to electronically locate suppliers, solicit bids, place orders, and track shipments in transit. Businesses can use their own web sites to conduct B2B e-commerce or use online marketplaces.

Figure 2.11.

Internet Networking that Serves E-commercialization and Information Management. [36]


Internet and E-Commerce in Thailand [27] Like in most countries, the Internet in Thailand began in the academia. The Thai

Internet slowly developed in the late 1980s and the early 1990s and was largely limited to academics, researchers, engineers and computer professionals until

commercialization in 1995. The Thai Internet had its official debut in 1987 when the first electronic mail activity occurred between the Prince of Songkhla University (PSU) in southern 22

Thailand and the University Of Melbourne, Australia, with assistance from the Australian International Development Plan (IDP) (Palasri et al, 1999). A year prior, a computer science professor at the Asian Institute of technology (AIT) and a University of Melbourne graduate, Kanchana Kanchanasut, was the first Thai to use email. Towards the end of 1987, using UNIX to UNIX CoPy (UUCP) Kanchana and her Japanese colleague connected to the University of Tokyo and the University of Melbourne severs by dialing up from a phone line to THAIPAX, an X.25 service hub provided by the CAT. Consequently, they were able to connect to UUNET in Virginia, USA [1] In early 1988, with financial and technical assistance from the Australian IDP three Thai universities, PSU, AIT and Chulalongkorn University (Chula), set up the Thai Computer Science Network (TCSNet), which was the first email network in Thailand. PSU and AIT servers ( and subsequently functioned as the main local gateways for Thai academics to the University of Melbourne's server ( (Palasri et al, 1999). By 1991, two more universities were connected, namely Thammasat University and Kasetsart Univeristy. Again, with the Australian assistance, the Australian Academic and Research Network (AARNet), Thammasat set up MHSNet with a 14.4Kbps modemthen Thailands fastest, making MHSNet Thailand's newest gateway connecting with Australia, replacing PSU and AIT (ibid). Meanwhile, NECTEC, a government agency newly established to promote the development of computer technology, ran its own network, called the Inter-University 23

Network, also on X.25. Before the end of 1992, there was a need for the Thai networks to make a transition from UUCP to full Internet Protocol (TCP/IP), resulting in an agreement between MSHNet and NECTECs Inter-University Network to merge (Thaweesak, personal electronic communication, September 5, 1997, cited in Palasri et al, 1999, p. 13). This merger in turn gave birth to ThaiSarn (The Thai Social/Scientific, Academic and Research Network) which was a collection of interconnected academic and research sites, allowing Thai academic and research communities to connect by information-exchange via computer (Thaweesak, "The Outlook," 24 June 1996). ThaiSarn was nationally funded by the national budget and technically supported by NECTECs in-house lab, the Network Technology Laboratory (NTL) and participating sites (Palasri et al, 1999). The Bangkok-based international computer vendors such as IBM (Thailand), Digital Equipment Corporation (DEC-Thailand) and Hewlett Packard (HP-Thailand) donated servers for testing to the ThaiSarn network, while Shinawatra Datacom donated some of its leased line circuits. In addition, because Thailand did not have a local exchange or any international leased circuits at the time, HP (Thailand) and DEC (Thailand) provided independent nodes locally ( and for data transfer within ThaiSarn. Therefore, the data between the two nodes were routed first through the two corporate hubs in the United States and then re-routed back to their destinations in Thailand. However, shortly thereafter, Chulalongkorn University, one among original members of TCSNet, acquired a 9.6 Kpbs leased line to UUNET, and the HP and DEC nodes were removed (Thaweeksak, current, and Palasri et al, 1999, p. 14). 24

Connecting through CATs domestic and international half-circuits, Chula became a new gateway for members of TCSNet, now known as ThaiNet, comprising Chula, AIT, Chiangmai University and Assumption University. As a courtesy, Chula also permitted ThaiSarn members to access Internet via its local leased line through NECTEC, giving an opportunity for ThaiSarn members to upgrade their dial-up connections to TCP/IP (Palasri et al, 1999). With Chula and NECTEC as two main hubs and after both upgraded to 64 Kbps international leased circuits to UUNET in late 1993, ThaiSarn became a full TCP/IP network in mid-1994, reaching 27 institutions and 34 sites, mostly universities and government agencies (Thaweesak, current). The typology of Internet development in Thailand hence centered around these two institutions and did not change much until commercialization in 1995 (Palasri et al, 1999). The Internet community in Thailand began to grow more rapidly in the mid 1990s. After commercialization in early 1995, estimated growth of commercial Internet usage in terms of individual users and corporate node connection was at a rate of 23 percent per month in 1995. By the end of 1995, there were at least 60 corporate nodes with independent Internet domains connected to commercial ISPs. The total number of Internet users in Thailand was estimated at 100,000 persons, the majority of which had their access via their corporate nodes. About half of the total estimated users were associated with research or academic institutions. Yet, only 10 percent (10,000) were found to be individual users served by commercial ISPs. [4] (1) Internet Users in Thailand by Rear Admiral Prasart Sribhadung, Dean graduate School of Internet and e-Commerce, Assumption 25

University, Thailand, says it is apparent that, for even small and medium sized businesses, the e-Commerce uptake is a challenge that must be faced. For all those brave enough to take up the challenge, they receive business advantages ranging from the protection of an existing market position to the development of a new e-Business. Over two decades ago, electronic systems had one major drawback: they were expensive to use and to implement. On the other hands, the success of e-Commerce today is largely based on low cost of the Internet--an inexpensive but powerful network. However, any new venture requires a careful planning. Enthusiasm often takes the place of experience and the benefits from e-Commerce that can be maximized through careful preparation and continuous effort in conjunction with comprehensive training for all. Therefore, awareness, education and training of electronic commerce are crucial at this time, especially for SMEs working across the whole spectrum of sectors. A distinction cannot be made between e-Commerce and e-Business. E-Commerce usually represents the customer-facing electronic solution (conducting trade: buying and selling using electronic means). Meanwhile e-Business is a term often used to encompass the integration of these front-end solutions with back office systems (conducting business using electronic means). In conclusion, e-Commerce is about using technology to improve the 26

effectiveness of business processes. It requires an understanding of both business and technical issues involved. An in-depth knowledge of the market in which the business operates is also a great advantage for any implementation. However, it does not mean that in order to do e-Business, one need to have everything in hand. The risk is that the business selects a solution that is not ambitious enough or one that is over-ambitious for its limited resources. (2) Commercialization and Expansion of Thai Internet Commercialization of the Internet in Thailand came rather slowly (NECTEC, 1999). This was at the least partly contributable to the states monopolistic regulations Communication in the telecommunications of Thailand (CAT), industry. a The



telecommunications operator and regulator, had a sole monopoly in international half-circuits, while private entities were prohibited from owning telecommunications equipments, barring free entry by the private sector into the Internet industry. While the Internet was expanding relatively rapidly in the educational and research community in the early 1990s, growing demands in the private sector was unmet. It was not until early 1995 when Thai Internet was commercialized. After six months of feasibility study, CAT and the Telephone Organization of Thailand (TOT), the Thai telecommunications duopoly, approved a joint 27 venture proposal from NECTEC to

commercialize the Internet. In February 1995, Internet Thailand Company Limited was established as a state enterprise joint venture of CAT, TOT and the National Science and Technology Development Agency (NSTDA), an agency under the Ministry of Science, Technology and Environment, with CAT and TOT holding 33 percent each of the total shares and NSTDA 34 percent [2] received an operating license from CAT and started operating as the first commercial Internet Service Provider (ISP) in March 1995 (Thaweesak, current). Three months after the establishment of Internet Thailand, CAT began allowing the private sector to operate as ISPs. Thailands second commercial ISP was issued a license in June 1995. [3] is a joint venture between CAT and Internet KSC (comprising Assumption University or ABAC, Thai Sugar Group, and Ban Chang Group which was shortly replaced by Jasmine International). In August 1995, CAT granted another license to LoxInfo, a joint venture of three private firms.[4] These first three ISPs became the largest and the most sustainable commercial ISPs in the country, being among a minority of ISPs posting operating profits in 1999 and 2000 [5]. At the end of 1996, more than ten ISP licenses had been awarded but only five were in operation, including Internet Thailand, KSC Comnet, LoxInfo, Samart Cybernet, and Taksin Cybernet [6]. The state-initiated commercialization of the Internet was expected to stimulate Internet growth in Thailand. In late 1994, the Internet Society 28

ranked Thailand Number Six in Internet growth in the Asia-Pacific region after Australia, Japan, Taiwan, Korea and New Zealand and slightly ahead of Singapore and Hong Kong. However, less than a year later, with SingNet promoting Internet use in the business sector, Singapore quickly surpassed Thailand and stayed ahead ever since [7]. According to the Internet Software Consortium (ISC)s top-level Internet domain survey by July 1995, Thailand had 2,481 hosts and 94 active domains, compared with 8,208 hosts and 114 domains in Singapore, and 1,087 hosts and 85 domains in Malaysia [8]. Similarly, the January 1996 ISC host count revealed that Thailand was beginning to lag behind Malaysia as well, while Singapore was leaping ahead at an exponential speed: 22,769 hosts and 276 domains in Singapore; 4,194 and 245 in Malaysia; and 4055 and 130 in Thailand [9]. Despite the seemingly slow growth compared to the two neighboring countries, from the perspective of Thailands Internet and IT think tanks, NECTEC and the National Information Technology Committee (NITC), IT development in Thailand was "perfectly on course" and growth was deemed considerable [10]. According to the Bangkok Post, the Thai IT industry was surging toward 23 percent growth in 1996 (Borisuthitoun and Waltham, 1996). Several ISPs began providing services in large provinces outside Bangkok. [11] Internet Thailand, KSC Comnet and Loxinfo expanded services to 29

Pattaya and Songkla (Had Yai) in Southern Thailand and joined Samart Cybernet in Chiangmai, the largest city in the North [12]. The early growth projection proved to be optimistic. The Thai IT industry registered only at 11 percent, instead of the 23 percent forecast in 1996. The beginning of economic slowdown and political uncertainty in 1995 and 1996, and slow private investment in particular, took the blame for lower than expected growth. Personal computer sales were neither satisfactory in 1996. PC sales were at the level of some 300,000 units50,000 units fewer than projection. In terms of Internet users, the 1996 figures indicated increase in commercial Internet

subscription40,000 from 10,000 in 1995 [13]. At any rate, as the commercial Internet industry expanded Internet use in Thailand enjoyed an average of 50 percent growth annually in the late 1990s [14]. Total commercial Internet revenue increased from 522 million baht in 1997, to 900 million baht in 1998 (72% increase) and 1.3 billion baht in 1999 (35% increase). The number of Internet users grew from 600,000 in 1998 to 1 million by 2000 [15]. In terms of registered domains, Thailand has also seen a substantial increase over the years. From 558 domains registered under 3th (third-level domain name for Thailand) in June 1996, Thailand Network Information Center, Thailands official domain registration agency known as thnic, reported 3,676 in November 1999 (NECTEC, 1999a). However, the Internet Software Consortium 30

survey reported only 2,224 registered under the domains and 53,683 hosts in July 2000 [16]. The expansion with respect to international bandwidth was similarly slow initially, from 64 Kbps in 1993 to 2 Mbps in 1995, and more drastic in the recent years, from 50 Mbps to 100 Mbps within 1999 and to 316 Mbps (in)/215 Mbps (out) by early 2001 [17]. Domestic bandwidth also saw a dramatic increase, from 336 Mbps in 1999 to 457 Mbps in 2000. Accordingly, the data volume within the country rose almost 200 percent during the same period. At one of the countrys two domestic exchange, Internet Information Research or IIR. exchange run by NECTEC, the daily data volume grew from 6.1 Mbps in 1999 to 17.6 Mbps in 2000 and jumped to 49.6 Mbps in January 2001 [18]. (3) Challenges to Internet Expansion in Thailand Despite Thailands ambition to become an information society and the center for Southeast Asias information networks (NITC, 1995a), many have been dissatisfied with the countrys rates of information infrastructure development. Although its early lead in Internet adoption in the early 1990s, Thai Internet development has been slow relative to that in its neighboring countries. The 1997 economic crisis has also set back growth. A research done by Thailands Development Research Institute (TDRI) in 1997 argued that Thai Internet development lagged at least one to two years behind that of Singapore and Malaysia where Internet took off in 31

the mid-1990s [19]. In mid-1999, the International Data Corporation (IDC)/World Times Information Society Index ranked Thailand 45th among 55 countriesdown from the 43rd place in the previous year, while Singapore shot up from the ninth to the fourth rank in the index. Thailands rank was on par with the Philippines and Columbia, placed on the 39th for computer rank and 40th on the Internet respectively [20]. In 2000 the Thai Farmers Banks research center estimated the number of computers in Thailand around 1,400,000 or a ratio of 23 to 1,000, compared to 65 to 1,000 in Malaysia [21]. Internet usage at the end of 2000 was still limited to two to three percent of the over 60 million population. Thailands Internet usage rate, though above that of the Philippines and Indonesia, is about half of Malaysias five-six percent rate and lags well behind Singapore and Hong Kong where fifteen percent of the population are connected [22]. Restrictive regulatory environment and the lack of well-defined policy have been cited as major causes for Thailands slow-moving Internet expansion. As early as 1996, industry executives were complaining about the hands-off approach of the Thai government in national IT development. The governments lack of vision, guidance and focus in IT planning and policy, in particular the lack of cohesive IT standards for both short- and long-term IT strategy and shortage of IT human resources, have been the targets of the criticisms [23]. 32

CAT, the state Internet regulator, is widely seen as especially hampering the growth of Thai Internet industry through its tight regulations. It has been argued that CATs monopoly presents a serious barrier to entry, deters foreign investment, and causes market distortion. CATs requires that all ISPs must have an international link through its international gateway (NIX) and forbids ISPs from reselling bandwidth, providing no competition in Thailands relatively high-priced leased line market. The high costs of leased lines and CATs 32 percent free stockholdings in each ISP have been cited as reasons for high Internet pricing which further limits Internet growth in Thailand. Currently, despite increased competition and one-time price reduction for the leased lines by CAT in 1997, Internet access costs in Thailand still remain among the most expensive in the world [24]. Inroads into e-commerce have also been slow in Thailand as most small and medium enterprises (SMEs)the backbone of Thai economyare still crippled with high costs for connections and lack of knowledge and understanding of e-commerce (Charoen, 2000a). (4) E-Commerce in Thailand The DCO web sites are managed by Proglen Trading Company which was the first company to build an ecommerce site in Thailand in 1995 after the internet became a public service here. This first site was hosted on KSC's server and was called MultiVision serving the then small group, 33

probably less than a few hundred, subscribers in Thailand. Since then, and after many firsts such as bringing online credit card ordering in Thailand with the Siam Commercial Bank, Proglen has become a manager and fulfillment specialist for numerous web sites. There have been few developments in the IT sector since. Despite numerous government initiatives, Thailand still lacks the proper

infrastructure and legal framework necessary to support e-commerce. As a result, most businesses operating in Thailand have been unable to take full advantage of the opportunities it offers. However, changes should take place in the near future with the adoption of specific e-commerce-related laws and the forthcoming deregulation of the telecommunications sector, which will bring security for businesses and users, reduced tariffs, and higher speed connections. This newsletter provides an overview of the proposed legal framework along with a summary of issues that need to be tackled to speed up the deregulation of the telecommunications sector. (5) Deregulation of the Telecommunications Sector While Thailand has undertaken measures to liberalize its

telecommunications sector by 2006 pursuant to WTO requirements, much remains to be done before business and end-users can benefit from market competition. In November 1997, the Thai government adopted a comprehensive 34

Master Plan for Telecommunications Development, which provides guidelines for: (A) The establishment of an independent and impartial regulatory body, the National Telecommunications Committee ("NTC"); (B) The privatization of two state enterprises, the Communications Authority of Thailand ("CAT") and the Telephone Organization of Thailand ("TOT"); (C) The conversion of existing Build-Transfer-Operate concessions into licenses; and the opening up of the telecom market to competition through a step-by-step liberalization process. Implementation was nearly completed, but due in principal to the local economic downturn, workers' resistance and, more recently, the election which took place early this year, it suffered delays. [25] (6) Recent IT Developments The government has been quite active recently in addressing Thailand's lack of adequate measures to support the development of electronic commerce. In addition to addressing the lack of an adequate legal framework and the slow implementation of the Telecommunications Master Plan, the government is also working on increasing the number of IT specialists in Thailand. In that respect, the government will adopt measures to improve the IT education system and also open up the sector to highly skilled foreign IT 35

specialists. With this in view, visa and work permit requirements for such specialists may be eased in the near future. The Board of Investment ("BOI") recently announced its intention to increase existing incentives (tax and other incentives) for e-commerce businesses in order to encourage the establishment of regional offices in Thailand. The upcoming adoption of the IT 2010 Policy drafted by NECTEC will also assist Thailand in moving towards an IT knowledge-based economy by focusing on five main issues: e-industry, e-commerce, e-government, e-education, and e-society. Finally, the government is also drafting an e-government master plan to provide guidelines for government departments and agencies as they develop their online services. Thailand's government is pointed in the right direction to ensure that Thailand's e-commerce will be on par with that of other countries. However, while other countries have charged forward in the protection and development of their e-commerce, Thailand has been plagued by one delay after another. Nevertheless, we should witness significant changes in the next few years with the new government's commitment to increasing Thailand's competitiveness in the IT sector specially the e-commerce sector. [26], [27] (7) Summery of Thailand e-commerce According to NECTEC data the growth of e-commerce in Thailand is over 50,920 million baths in year 2546. With over 8000 website the top ten 36

website are: Traveling, Computer, Internet, Cloths, Cosmetic, Flora, Handicraft, and SME trade/Hold sale, Jewelry, Entertainment, Restaurant and Printing. The organic product web sites are very few. There are two major problems here in Thailand on e-commerce. One is the commercial websites with items for sale in Thailand do not prefer credit card purchase without signature. Both consumers and suppliers are feeling uncomfortable with purchasing and selling on-line. Thailand is still a society that favors cash, plus our bad experience of the recent economic crisis that was partly caused by overextended credit. The result is that a very small number of credit cards are in use in our society. The second problem is the small number of Thais surfing the internet. This number doesnt make it worthwhile for local companies to go on-line with the web creation, presence and maintenance costs. Without a good number of users, opportunities to profit from the on-line sales seem limited. That any firm who could be success in E-Commerce must be over come these problems. Some of the ways out are information services provider and catalog online with a good cooperate along with physical shop or cash upon delivery.


Figure 2.12.

Approximated Number of Internet Users in Thailand. [38]




Organic Products Market These days, Thailands strong economic recovery, especially the growth outlook

for the next year, has frequently hit the news headlines. One hears or reads about favorable economic outcome during the first half of this year even though the global environment was much troubled by uncertainties. Real GDP grew by 6.7 percent in the first quarter and was dampened only slightly by the repercussions of the Iraqi War and the outbreak of SARS to 5.8 percent in the second quarter. Such resilience to adverse external shocks is a testimony of the economys greater flexibility as well as its underlying strengths. With this, the National Economic and Social Development Board have revised upward the growth projection for 2003 by about half a percentage point to 5.8-6.2 percent. From the Bank of Thailands point of view, it is most important that the current recovery has been accompanied by a continued strengthening of economic stability both on the external and domestic fronts. While the current account has consistently been in surpluses and external debt falling steadily, public debt has also been declining substantially from roughly 57 to 50 percent of GDP over the past three quarters. Not only so, the unemployment rate continues to fall, and headline inflation is just slightly above 2 percent. As a result, international credit rating agencies have indicated positive views on the economy, citing improved growth with stability as the key reason for a number of sovereign and bank upgrades in recent months. For the past years, however, things have been looking up. Growth momentum from the private sector has picked up more firmly, making it possible for the 39

Government to begin moving toward fiscal consolidation to ensure medium-term fiscal sustainability. According to current estimates, effective tax collection together with the economic expansion could allow the Government to achieve a balanced budget a couple of years earlier than planned. It is therefore clear that the thrust of growth has now been shifted from the fiscal sector to private hands, with export also contributing in a very significant manner. This is a much welcome development, as sustainable growth cannot rest forever on the shoulder of the government who makes up only about 15 percent of the countrys GDP. [29] Thailand is enjoying its highest levels of prosperity since the regional economic crisis of 1997. The Thai economy continues to perform strongly, growing a robust 6.7 per cent in 2003 and 6.5 per cent in the first quarter of 2004. Total growth over 2004 is expected to reach around 7 per cent, spurred by both public and private investment. Growth is reasonably balanced, with contributions from private consumption, investment (particularly construction) and exports. Private consumption and investment are expected to expand in 2004, due to the recovery of business and consumer confidence, low interest rates and the expansionary fiscal policies of the government. While private consumption is the dominant driver of growth, investment, growing at 16 per cent in the first quarter of 2004, provides strong forward momentum. [28] Organic Agriculture grows world wide [30] More than 24 million hectares (1 hectare = 2.5 acres) of farmland are under organic management worldwide, according to a February 2004 report by the International Federation of Organic Agriculture Movements (IFOAM). The World of Organic Agriculture: Statistics and Emerging 40

Trends 2004, attributes the growth in organic acreage primarily to an increased global demand for organic food and the expansion of markets for organic products. If current growth rates continue, organic agriculture may be seen less as a "niche" market and more as a primary option for farmers in both northern and southern countries. Since the last IFOAM report in 2003, the amount of farmland under organic management has grown by two million hectares, or 9%. In addition, IFOAM identified 10.7 million hectares of land certified as "wild harvested plants," which include naturally grown herbs and timber. Currently three continents -- Australia (42%), Latin America (24.2%) and Europe (23%) -- represent roughly 90% of the organically certified acreage worldwide. Countries fueling the expansion include Australia with approximately 10 million hectares, followed by Argentina (close to three million hectares), and Italy with close to a million hectares. The study estimates that less than half of total worldwide organic acreage is on arable land, since most of the organic acreage in Australia and Argentina consists of grazing land supporting extensive livestock systems. The growth in organic farming is the direct result of expanding global markets for organic products, which totaled approximately US$23 billion in 2002. Demand for organic products remains concentrated in affluent, industrialized continents, such as North America and Europe. North American markets experienced a growth rate of 12% in 2002, totaling US$11.75 billion, with the bulk of the revenue coming from the U.S. ($11 billion). Growth rates for European markets have slowed in recent years, yet still increased at a respectable 8% in 2002, totaling US$10.5 billion. These two regions 41

represent nearly 93% of the total market share for organic products and are thus the primary destination of exported organic goods. In addition to North America and Europe, the organic food market in Australia has grown rapidly and now represents close to US$200 million. Although initially farmers were attracted to organic farming in order to supply growing export markets, research indicates that farmers there now have difficulty meeting domestic demand, which is increasing at a rate of 20 - 30% annually. Despite Australia's status as a leading producer of organic food, domestic demand has caused the country to import organic products from abroad. Industry growth is projected to continue as farmers earn a reported 50 - 75% price premium for organic products. The report identifies two principle reasons why demand for organic products has remained concentrated within industrialized nations. First, the price premium for organic foods requires a sizeable middle class with the purchasing power to consume higher quality products. Second, the study found that as education levels rise, demand for organic products increases, especially as consumers gain a greater awareness of food issues. IFOAM reports that demand for organic products is unlikely to remain concentrated in industrialized nations indefinitely. As more and more developing countries are attracted to organic farming for export purposes, domestic and regional organic markets are also expected to grow. In Asia, for example, export opportunities remain the principle factor in the conversion of farms to organic production in the region's developing countries. However, expansion of domestic organic markets in 42

China, Malaysia, Philippines, Singapore and Thailand has continued to fuel the region's growth. In China, demand for organics reportedly exceeds supply, with premiums for organic goods ranging from 10% to 400%. As southern economies become more developed, it appears that both the supply and demand for organic foods will continue to grow. [40]

Table 3.1.

The International Market for Organic Food Products (US$ billion). [28]
Country Sales in 1997 4.2 1.8 1.2 0.75 0.72 0.45 N.A. N.A. N.A. N.A. N.A. 1.33 10.45 Estimated Sales 2000 Potential in 2004 8.0 1.4 2.5 3.9 2.5 4.3 1.1 2.1 1.25 2.3 0.9 1.6 0.17 1.1 0.12 1.8 0.58 2.1 0.10 0.21 0.06 0.8 10.38 98.32 19.727 119.93

USA Germany Japan Italy France Great Britain Australia China New Zealand Taiwan Philippines Other Total


The Existing Company 43

Sustainable Home Company is both organic farmer and trader with more than 8 years of experience with a good reliable record in the Organic Society. Sustainable Home co., Ltd. produces a line of organic products certified by the Organic Thailand Authority Committee under certificate TAS 008. The products and information about the company are hardly to get, the location of each organic farm are in Cheingrai the farthest north of Thailand. Only member of Organic Society know about our existing thru the Organic Authority Committee of Thailand. Web Site is the truly gate way that make Sustainable Home company really exist and could open to the world 24 hours a day, seven days a weeks and all year long. targets the customers who are concerned about their health and their living standard. The products are certified by Organic Thailand Agriculture Standards, The Department of Agriculture and Quality Food Safety, The Ministry of Agriculture and Cooperatives. There are 4 main groups of products: Organic Rice, Organic Seasonal Fruits and Vegetable, Herbal&Probiotic Health Promotion and Refreshment Drink and pure champion blood line of Labrador Puppy. provides the following services: (1) (2) Provide Organic News and information for Organic Society. Help conventional farmer change to organic farming. And also support alliances organic farmer. (3) Sell organic products both produce form Sustainable Home and alliances organic farmer. 3.3 SWOT Analysis 44

SWOT analysis is an important part of marketing. There are Strength, Weakness, Opportunity and Threats of the Sustainable Home Co., Ltd. The company must focus with the other competitors and identify the recommendation about the marketing strategy.

Figure 3.1.

The Generic SWOT Analysis Showing Typical Opportunities and Threats Presented by the Internet. [36]

Strengths 45


High quality of certified Sustainable Home Co., Ltd.s products. Organic product from other certified farmer who also be the member of Thai organic food and agriculture Federation.

(2) (3)

Merchandise mixes those appeals to the customers of all ages. Provide both big volume whole sale and small unit quantities for fast product rotation.


Good customer service by delivery daily fresh form farm within 3 days after order and also daily pick up from store chain of Thai organic food and Agriculture Federation.

(5) (6)

Special order for register member customer. Sustainable Home Co., Ltd. is both organic farmer and trader. We could put more goods on the shelf with less cost.


The trend of the most luxury living is person can effort rapidly change to happy living with healthy physical and peaceful mind with Mother Nature.


Sustainable Home Co, .Ltd. could offer both online business and physical location to customer through net work of Thai Organic Food and Agriculture Federation.


Sustainable Home Co, .Ltd.

are well certify organic farm that pass strictly

process of certify by both Organic Thailand Agriculture Standards, The Department of Agriculture and Quality food Safety, Ministry of Agriculture and Cooperatives. (10) The staffs of Sustainable Home Co., Ltd. are major organic instructor and 46

expertise for Ministry of Agriculture and Cooperatives, who touch organic farming all over Thailand. And always be one of the joint committee for Organic food and farming delegated on international level for Thailand. This brings big trust to the products and the Web Site. (11) Sustainable Home Co, .Ltd. gets fully support from both and Thai Organic Food And Agriculture Federation. They are the major role of Organic Society in Thailand. (12) Major products were signed contact farming and sold before products are in the market, as long as the consumer knows the farming information.

Weakness (1) Client can not see, test and feel freshness of the organic products thru the distance of far farming location. (2) Most of the other major organic farmer and trader companies are run their business with Web Site support. (3) The location of organic farm are far north in Cheingrai province hardly to visit. (4) The information of Sustainable Home co., Ltd. is difficult to get only thru The Organic Authority of Thailand. Due to no budget to advertise. (5) (6) (7) New web site is hard to be well known in short term. High delivery cost. The limitation of budget to promote company. 47


Both consumers and suppliers feel uncomfortable with purchasing and selling on-line by give away their credit card number.


The merchant do not prefer credit card purchase without signature.

(10) On line transaction thru Web Site and still a problem in Thailand. It is trend to reduce over the time. (11) There are many products from conventional farming in the market.

Opportunities (1) Advertising and support from Thai Organic Food And Agriculture Federation, Organic Consumer Society Of Thailand and (2) The organic food supreme quality are well known and except from the consumer. (3) The tread of agriculture chemicals to consumer and the Mother Nature are aware in every news paper, everyday and every level of society. (4) Our product price is lower than the other competitors and we could play big roll with promotion as we are both the producer and trader. (5) (6) (7) Change product on the shelf every week. Daily fresh from farm. The company could promote and advertise organic product and information both local and international world wide at all time in a very low cost as client help paying the internet connectivity, hardware, software, and time 48

cost to visit the Sustainable Home Web Site, if the company build it. (8) (9) To specific target group in niche market. Join the special event and exhibitions such as activity of Thai Organic Food And Agriculture Federation. (10) To give special promotion in special occasion. (11) Nowadays customer well aware about good healthy living and familiar with searching and shopping thru the internet as Sustainable Home is an alliance of (12) Well support form Minister of Agricultures and Cooperative Department. (13) Many Multi level marketing and trader company want to be our distributor.

Threats (1) Many competitor company use Web Site to take away company target market and customers. (2) (3) (4) No stable of standard product and many imitation products from competitor. Easy to duplicate the similar product and service. There are many competitions in the Organic Business from international level. (5) (6) (7) Lack of personal and knowledge in the organic farming technology. Lack of touch and feel of products from the far away distant. Organic products could be spoiled by wrong handling and technique. IV. MARKETING ANALYSIS



Market Statement Why people go organic? This commonly asked question is easy to answer. The

primary reason to embrace the organic approach is health. This means the well-being of the individual as well as the health of the environment. Many pesticides can accumulate over time, both in our own bodies and in the wider environment, a poisonous legacy that can persist for decades. Organic farming seeks to redress this damage by working with and encouraging nature. It is a long-term investment in the health and wellbeing of us all. The Organic products market in Thailand and International are both with opportunity and challenge. First, the Thailand organic products market is so booming in the recent years. Second, the amounts of people who wish to have both good wealthy and healthy life are increase everyday. It is become the trend of living fashion for real cleaver people no matter rich of poor, especially middle class people. Organic Societys living standards are booming both in Thailand and International. The needs of organic products are increase 300% this year [39], [40]. The demands of all organic products are much more than supply from domestic organic farming. Now it is right moment to invest in any part of organic society activity and trade. Sustainable Home co., Ltd. are both organic farmer and organic products trader (Sustainable Home co., Ltd. would help transform any conventional farmer to organic farmer with contact farming method and buy those organic product they could produces). Modernist as well as everyone who wish for wealthy and healthy living will easily adapt and remember with meaningful. It is also related to the character of modernize 50

and healthy habits. When you think of the true good healthy life, think of So this name means it is good to click for the good healthy living and the knowledge of organic society. There is only four major organic producers company in Thailand. Our product will help to promote and improve the consumer good healthy life. Consumer could enjoy good taste as well as good food value from our organic product. It makes consumers life totally difference in today and everyday. This is a good chance and a challenge situation for our business and also helps create good healthy society. 4.2 Target Market first, target at the customers who concern about their health and their living standard known as organic products consumers in all ages and sex. Second, target to the one whom making business concern with organic society who need all means of advertising thru our web site. There are 2 market segments separated by different attributes of needs. Organic products consumer segment: this segment provides service for consumer customers who are looking for good organic products for good wealthy and healthy living. (1) For those consumer customers who buy for themselves or their family members. We must try to get as much as information about the condition, needs and situation of their current way of trend. So that we can find the appropriate products for them. Such as, some customers would like to eat vegetarian, more vegetable product should be added, some customers who 51

want to promote their health to overcome their health problem, more herbal and probiotic should be added or some customers would love to drink healthy refreshment drink regularly, more organic drink such as fresh milk should be added. All these data and information could be acknowledged thru the process of cooperative research with The Department of Agriculture and Cooperative. And Thai Organic Food and Agriculture Federation. (2) For those customers who plan to advertise their business concern with Organic Society, we should understand the variety kind of those businesses and the scale of business, so that we could provide a proper way of advertisement according to their requirement to such their needs with Organic Society news and information segment: this segment provides service for personal customers who are searching for a organic information and news to fulfill their needs. In order to provide the good services, we must provide consumer only the good clear news and information that would help lead them to the right trend of organic consuming and producing. For the conventional farmer we must provide the right information to encourage them, to change them to become certify organic farmer in order to strengthen the solidarity of Organic Society in Thailand. Demographic Segmentation: it covers all over people in Thailand who care about the healthy food for good health like a slogan Best foods are organic foods Organic food is appropriate for all male and female and at all ages and at all time. 52

Socioeconomic Segmentation Producer: The organic farmer will know the motion of organic community and organic news. They could find any interesting information and creating new ideas for doing the business. Consumer: The consumers can buy the products online and offline. Psychographic Segmentation: At the present, consumes do concern about nutrition and food safety more than the old day. They will choose the high quality nutrition for their good health. Geographic Segmentation: Target of the website is not limited to any region, but all people who can choose the products for healthy and wealthy life. Behavioral Pattern Segmentation: Consumption pattern segmentation. Consumer predisposition segmentation. Diffusion of Innovation Product characteristic: Superiority we choose the highest quality product to serve all consumer need. And

this is the first Web Site that contains all information concern Organic Society in Thailand. Adopter categories all organic products and information were simple and easy to understand, consume and practice. Innovation - Organic products online which are web service for all targets segments 53

such as Farmers, Authority, Expertise, Trader and Consumer. 4.3 Marketing Objectives (1) To create service over the Internet, and enhance trading and information service provider effectively. (2) (3) To get more customers and make more famous. Increase the amount and frequency of business and sale by catalogs on line, mail order and cash upon delivery or pick up at physical shop. (4) Provide creative organic news and information to customers, for the solidarity of Organic Society in Thailand. (5) 4.4 Provide customer centered and personalized service.

Web Site Advertisement In order to start the online business, the advertisement is an important manner to

get more interested customers. Advertising is an attempt to disseminate information in order to promote the objective of the Web Site. There are many benefits of web site advertisement: (1) The Internet advertisements are accessed on demand 24 hours a day, 365 days a year, at user convenient and costs are the same regardless of audience location. (2) The accessed primarily because of interest in the contents, so market segmentation opportunity are large. (3) The opportunity to create B2C direct marketing relationship with the consumer is high and at low cost. 54


The multimedia will increasingly make Web Site more attractive and compelling.


In many Web Site advertisement manners, we can register into well known search engine, such as Google. The search engine optimization is crucial for anyone who wants people to visit their Web Site. We could place as many ads, but most people are still going to find site because of its listings in search engines or directories. could alliance same category Web Site such as E-Organic Mall Server to gain more interested and customers.

Combined with search engines and good created Meta tag in the Web pages, directories also are a good advertisement strategy. The directories are needed that can guide customers to right targeted sites, it is available on many portals for shopping and business opportunities, such as Yahoo portal search engine site regarded as effective aid for advertisement. The exchanging of banner with another Web Site always a very good strategy to promote any Web Site that is would do.


Figure 4.1.

The Elements of the Marketing Mix. [36]


Why the Name was Chosen? The reasons are It is compact and everyone already knows

the right meaning and does remember it. Then an effective name will be helpful for easy to memorize. The characteristics of good name should be short, pronounceable and in trend. It has a good meaning which is relates to the healthy living of the consumer. comes from Sustainable and Home, means Sustainable mean well-being of farmer, well-being of consumers and well-being of the envelopment. With all well-being of all the three parties, then the sustainability will be occurs. The organic products consumer will have sustainable living by consuming organic products, with the good result of wealthy and healthy life. The products that come from non agriculture chemical produce at all and must past strictly process of certify by both Organic Thailand Agriculture Standards, The Department of Agriculture. And Quality food Safety, Ministry of Agriculture and Cooperatives. This is guarantee quality of food value and nutrition. Everything must come from the Mother Nature. The Home means house with warmness of Love and Truth. It is related to product according to the meaning of the Shops name, it shows the characteristic of good healthy products and good wealthy & healthy consumers with love and truth. The name is fulfilling promise of products and needs of consumers Web Site. Any kind of organic products may be added in this cyber shop such as organic meat, organic green tea, organic flowers, organic bean, organic cloth, organic fertilizer 56

or any other organic products in the future. Therefore, this Web Site is suitable and specific for Organic Products and the one who loves good healthy living. So these are the best reasons why I have chosen this name and products. cyber shop was designed by a simple plain HTML and necessary PHP page by template method with sensation beautify photos from real organic farm give a sense of simplicity and attractive with the same theme of the organic products itself. 4.6 Value There are 4 kind of value as Image Value, Product Value, Service Value, and Personnel Value. (1) SustainableHome.Net: Cooperative of farmer sector gets fully support by government sector, organic expertise sector and commercial sector. All SustainableHome.nets product was produce with love and truth for the true wealthy and healthy life is our slogan. (A) The consumers who consume good food, with regular exercise and have enough rest. They could have a last longer life for more than 10 years. (B) Organic farmer could earn more from the products, by organic farming. We product non-chemical food for good health. (C) Create our environment for good health by practicing organic farming.

(D) is the first web site of organic products that provide all need cover all target to any level of the users. 57


Product Value (A) Image: Products is a unique Web service organic product that provide online for reduce waste time consuming in traveling and search for organic products. (B) The premium grade products: Create wealthy and healthy life, also good for the environment by consuming organic product. cares about health of consumer, the web site choose the best quality organic products from all over the country for trading thru the website. (3) Service Value Service: Both Online and Offline serve the need for all 5 cooperative sector and the target groups. (A) Online: The consumers can search Plant information, Distribution Channel information, how to get certified organic farming, Organic Company information, Organic Society news & information and government service (Linking website). (B) Offline: For the consumers who dont have computer or online, they can find the information through the cooperative Organic Society alliance, which they provide the information for any users. (C) Create cooperative services with very less time consuming and resources nearly real time performance with nearly no cost. (4) Personnel Value 58

(A) Personal: Provide the FAQ thru the web board by organic expertise. Well organic knowledgeable person who could provide the answer of organic products to consumer. (B) Search: All organic news and information which it suit the consumers needs. (C) Provide: The organic farming knowledge for any farmer who want to convert to organic farming and also how to get certify by the authority. 4.7 Cost (1) Monetary Cost Set the price at skimming price. Fair trade price to all segments of target groups. We will not cut the price for competition. Win Wins policy and premium quality will determine for the Web Site. Reason: because of the organic products are premium qualities, so the prices are reasonable. We will not trade low quality for high price. Because the price and stock will inspect through the Organic Farming Authority and Organic Society about quality of the product, cost and price. It saves time and money of transportation, consumer just sit and click for details and order thru the distribution channels cash upon the delivery or pick up from physical store or our organic alliance. (2) Time Cost Reduce the process of: Ask for application form through the website 59

we can register and summit to the Service provider on the internet. It was very easy and convenience. Save time for transportation, consumer can survey for merchandise and source of organic news & information by searching information from the Web Site. Information searching, we consolidate all important web link into If consumers have any problems; they can post the question in Web board. Product for selling in the store, the customers do not need to go outside for searching the organic products got report of organic products and information updating everyday on the website. Easy to search for organic products and information the Web Site also provides. (3) Energy Cost The customer dose not needs to spend time for searching the organic information from any other source. (4) Psychic Cost The Products quality reach high standard for person who are interested for health living. Now a day consumers are well aware about themselves more and more. The trend of organic products consuming are in fashion ever where. The accurate information, fair trade price, report from Organic Society 60

to customer into direct mail or thru the web board. Real time catalog on line for quantity and price of the products, consumer can order directly through the web site. 4.8 How to increase CDV? Try to increase the number of organic products category and number of organic farmers by help changing from conventional farmer to be organic farmers by using online of internet connectivity. The members of Organic Society can work at home and send receive e-mail by using the computer. It will lead to increase the volume of products and decrease the overall expenses and price. Services among all sectors will be increases both the quality and quantity which will grow the whole solidarity of the website automatically. The growth of the website will serve all needs of all sectors which will reduce more time and resources. The gaining of members, products, and services will be automatically gain image and profit after all. Business Position: is the first Web services in Organic Society in Thailand. There is consolidated important information and keep it in Web Site. Online Positioning: First web site who will provide the organic foods news and information and e-commerce for any user and small business and enterprise who are interesting for doing business or shopping. This website chooses the potential collaboration for doing the same target. We are not only providing the organic foods but we also provide interesting news & 61

information to public. Links to another useful Web Site: that provides necessary information for organic consumer and organic farmer. And also Web surfer who search knowledge about plant, and Mother Nature.


Figure 4.2.


4.9 Products (1) Organic Rice, it categories into 3 kinds of products, i.e. (A) Ruby jasmine (B) (C) (2) (3) (4) Jasmine rice Great Thai fragrance rice

Organic seasoning Fruits Organic Vegetable Organic health promotion and refreshment drink (A) Organic tea (B) (C) Organic coffee Organic honey

(D) Herbal and probiotic Organic health promotion drink (5) Organic Labrador puppy



Organic Ruby Jasmine Rice

price: 180 baht per a pack of 2 kilograms The strongest jasmine fragrance rice in Thai kingdom is the most supreme soft and tender steam rice with best quality of food value and nutrition. No matter what rice that Thai farmers produce for commercial, they are always home made ruby jasmine rice for their own family consuming.

Figure 4.3.

Ruby Jasmine Organic Rice.


Organic Jasmine Rice

price: 140 baht per a pack of 2 kilograms The classic strong jasmine fragrance rice. The best consuming as normal steam white rice with supreme soft and tender taste include all the best quality of food value and nutrition from the Mother Nature.

Figure 4.4.

Jasmine rice Organic Rice.


Organic Great Thai Fragrance Rice

price: 180 baht per a pack of 2 kilograms The original oriental short grain rice, like the well known Japanese rice, but twice bigger size and with unique sweet fragrances smell. The best

consuming as normal steam white rice with supreme soft and tender taste include all the best quality of food value and nutritious from the Mother Nature.

Figure 4.5.

Great Thai Fragrance Organic Rice.


Organic Seasonal Fruits: Each category offers 3 kinds of products, which are: Naturally grown in a sustainable culture climate with the help of Probiotic friendly micro-organism from the exotic rain forest of Thailand, this is healthy for fruits and consumers. The freshness of all organic fruits lasts for longer periods of time with 24 hrs. Fresh from farm transport, consumer will always get fresh products from the farm each day.

Figure 4.6.

Organic Seasoning Fruits.


Organic Pineapple
price: 25 baht per kilograms

The original Nanglea pineapple with juicy, sweet and smooth none fiber texture. Nanglea is well known as the best pineapple region of Thailand.

Figure 4.6.

Organic Seasoning Fruits (Continued).


Organic Pumpkin
per kilograms baht price: 20

The special select local breed with mild sweet taste, supreme firm soft and tender include all the best quality of food value and nutrition from the the best organic farm in Cheingrai province.

Organic Passion Fruits price: 40 baht per kilograms Special selected. The best for fruit juice & punch full of vitamin C, A, B, food value and nutrition.

Figure 4.6.

Organic Seasoning Fruits (Continued).


Organic Vegetables: uses rotational crops, natural pest control and organic fertilizer non agriculture chemical in order to maximize the impact on both environment and consumer health. The great taste of crunchy and strong flavors in all kinds of organic vegetables is our unique identity. Whether you eat it fresh or cooked, it always represents the best taste of vegetables.

Organic Vegetables Salad

price: 100 baht per pack of 4 kilograms

Organic Vegetables Salad There are many varieties according to the season in a pack of 5 difference kinds of ready to make vegetable salad in a pack of 4 kilograms.

Figure 4.7.

Organic Vegetables.


Organic Refreshment Drink : Each category offers 3 kinds of products,

which are: Organic Tea, Organic Coffee, Organic Honey Organic Tea price: 300 baht per pack of 4 Oz.

Figure 4.8.

Organic Tea.

Organic Coffee
price: 250 baht per pack of 5 Oz. Both Organic Coffee and Organic Tea were well selected from the original best tea and coffee pots, with strictly organic way of plant and cultivation. Home made Blended with purely hand made to reach the maximum of their aroma and good food value of organic products.

Figure 4.9.

Organic Coffee. 71

Organic Honey

price: 200 baht per 250 cc.

Organic Honey
Fresh Environment Cheingrai. from of organic Sustainable farming Home

Figure 4.10.

Organic Honey.


Herbal Pro Health Promotion Drink

Herbal Pro price: 1800 baht per bottle of 800 ml.

The Herbal&Probiotic Health Promotion Drink will strength your immune system and will experience you with real wealthy and healthy living. This product could help many cancer patients out of their sufferness. The Herbal and Probiotic were contained of 18 health promotion herbs and probiotic, which had been using effectively, since over 3000 years ago both in Thailand and in China known as immortality supplementary food; 1.CEPHALOTAXACEAE Cephalotaxus griffithii Hook. 2. ZINGIBERACEAE Curcuma zedoaria Roscoe. 3. SAURURACEAE Houttuynia cordata Thunb. 4. PALMAE Phoenix dactylifera Linn. 5. Ganoderma, Lucidum, Mushroom of Immortality. 6. MENISPERMACEAE Tinospora crispa Miers. 7. COMBRETACEAE Terminalia chebula Retz. 8. ZINGIBERACEAE Kaempferia pafiflora. 9. PERIPLOCACEAE Myriopteron extensum Schum. 10. PAPILIO NACEAE Suvathbandhu Leguminosae. 11. Murdannia loriformis (Hassk.) Rolla Rao et Kammathy. 12. Gynostemma pentaphyllum Makino. 13. Honney. 14.

Lactobacillus acidophilus. 15. Lactobacillus plantarum. 16.Bifidobacterium 73

longum. 17. Lactococcus lactis. 18. Yeast.

Figure 4.11.

Organic Herbal and Probiotic Health Promotion Drink

Organic Labrador Puppy

price: 12,000 baht per puppy

Labrador Puppy with pure champion blood line and well-breed from one of the
most happiest Labradors family in Thailand, with full certified pet degree, grown up in the environment of organic food&farm, surrounded with parents love and mountain next to the rich all year long cool stream of Mae Kok river of Sustainable Home certify Organic farm TAS008. The only Labradors who have their own beach, swimming place, jogging field and hunting ground.

The best life time friend as one mans dog, that money can buy.


Figure 4.12.

Organic Labrador Puppy.

Dogtor, Rocky, Inzy, Probiotic, are our family members.


Figure 4.12.

Organic Labrador Puppy (Continue).

4.10 Why the Organic Products were selected? Sustainable Home co., Ltd. is both organic producer and distributor our company slogan is. All Sustainable Home products is produced with love and truth for calling publish attention and For the true wealthy and healthy life as striking the good heart felling sells. offer premium product to the consumer. could offer both online business and physical location to customer through net work of Organic Food and Agriculture Federation of Thailand. This is the largest group of organic professionals society in Thailand through and delivery goods through network organic shop of the federation. Each product brings a guarantee quality of food value and nutrition product to consumer. These healthy products are for major parts of living, from morning to the night, from weekday and holiday, for every member of the family and every member of the society. Now a day every people work and study hard, in order to get the best for themselves over the other. The trend of the most luxury living that they can effort rapidly change to happy living with healthy physical and peaceful mind with Mother Nature. These are truly wealthy and healthy life, a dream of ideal living for everyone. The consumer changes their habits of consuming and carefully select good healthy food and product, that their money could effort. The bumming of supplementary food product market increased up to 500% for the past one year is the best guide 76

direction of the consumer trend. (Joint research among Ministry of Agriculture and Cooperative Department and Thai Organic Food and Agriculture Federation.) The numbers of canner and none disease sickness patients are the major health problems and dead in every developing society. The Mother Nature was polluted by conventional agriculture. It is contaminated with all kinds of chemicals. The organic agriculture & organic food is the only way out of these crises. Most of all our target consumers lairize that. Also the numbers increate automatically every living moment. 4.11 How to Manage the Shop? Present supreme quality products and services with reasonable price are providing products with value-added service. Promptly requires to customer queries by respond the customer quickly on both web site and physical location. Always add update storefront and change display to attract the customer attention and needs. Get feedback to improve the products and activities by the customers consider and recommendations. Monitor and evaluate the competitors to obtain any fair ideas of which competitors have taken their online well and new trend of consumer need and want in the market. Ensure that the site is loaded easily and quickly because a site that takes too long to load always irritate customer. Add more quantity, quality and variety of products which is interesting for customer with fair trade price principle. Provide web board for educate and help customer understanding about healthy organic living for themselves and Mother Nature. 4.12 Marketing Plan (1) Products 77

The producing and managing product is primary goal of our shop. While value added and explaining both producing and marketing in the future is the secondary goal. Since the revenue of the shop is derived from selling products, it is money for buying new products and a gate way of our own organic farming. presents a supreme organic product; there are verities products for the customer daily fresh from the farm. The customer can create appropriate products concept by evaluating price, quality and service. provides as supreme quality product with reasonable price of organic food and puppy, it is attributing of our unique organic certified products. Strategies products of by creating product guarantee: (A) To ensure the supreme quality of our organic products which we home made with love and truth from Organic Sustainable Home Cheingrai Tas 008. (B) Quality control and full certified organic product is our processing before reach the customer. (C) To ensure the products are daily fresh from the farm with minimal variant from the photos on web site. (D) To innovate variety of product by: y To make a group web board for voting and sharing the 78

knowledge and experience on new organic products. y To explore new product innovative in the other qualify brand and other web sites. y y y y y Add new organic product in each categories. To survey flowing of the products. To evaluate sale volume of products every week. To remove products those are not fresh out of the shelf. To delivery product within 3 days when custom place the order or daily pick up at chain store of Thai Organic Food and Agriculture Federation. y (2) Price The pricing strategy is a major of customer buying behavior. It is a key element in the marketing plan. Price of the product is the part of product considering when the customer makes decision for buying a product. produces our own product we can make promotion, reduce, increase, and decrease price wildly. We also include possible tactics that will be used to allow the adjustment to the based price. Strategies for price by analyzing the price, i.e.: (A) The price consider for selling to customer by estimating prices with anther company organic product. If there some products are more expensive and not reasonable price for customer. The Web Site would 79 For special member order with weekly home delivery.

change price or make special promotion or value added immediately. (B) The Web Site will only choose and produce the supreme quality product and warranty from principal that our product must daily fresh from the farm to customer. (C) Formulate pricing policies and determine method. A fair trade markup method is used to determined price. The price must be acceptable with 20-30% discount in RSP price (retail selling price).To determine the cost of customer satisfaction which it includes the returns of products. (D) Determine the marketing promotion for giving any special discount for customer. y y y (3) Place Providing the customer satisfy in a customers convenience. We provide product available in adequate quantities in accessible location at the time when the customer desire them daily fresh from the farm. Our shop distributes product internationally by using the service from Fed Ex. by air freight and shipment. For the local distribution, using service from local firms and distribute channel of both Thai Organic Food And Agriculture Federation and could help economic the cost. 80 To give a special promotion for increase sale volume To reduce the price more 20% register member. To discounts the price when the product is over the demand.

Strategies: (A) Have an organic products daily fresh from the farm. In order to guarantee supreme quality or organic product. (B) Transport both local Nemsiseng transporter and our own farm transport. (C) Provide delivery information for each geographic zone.

(D) Send the letter of product information by e-mail or letter to majority target customer along with Thai organic food and agriculture Federation and OrganicThailand.Net channel. (E) (F) We guarantee delivery on time. Product will be on time within 3 days of home delivery or daily pick up from chain store of Thai organic food and agriculture Federation and OrganicThailand.Net channel. If products are late, we will discount 20% to customer. After sale customer service tracking products for ensuring that delivery is made completely. (A) Call for confirmation to customer that receive product completely. (B) Reply E-mail of the customer orders after each supply of home delivery. (C) Get the feedback from the customers to evaluate the services of carrier firms. (4) Promotion 81

There are more than a million web site provide product and information. Promotion is very important to persuade customer to buy our products. various types of promotional approach both online and traditional trade to communicate with the target groups such as: (A) Use banner for advertise our product at the others web site. (B) Advertise and make public relation along the channel of Thai Organic Food And Agriculture Federation and OrganicThailand.Net. (C) Web Site provides the organic news and sell organic product at the same time. (D) Exchange banner by registering a shops banner with the banner exchange companies will manage banner advertising for a shop. (E) Put our web site into famous search engine (Yahoo, Google, and AltaVista). (F) Write every web page, Meta tag to be easy and wide span to find on every search engine. (G) Advertising our web site in the organic magazine, leaflet and any possibility document among the member of Thai organic food and agriculture Federation and The Strategies for promotion: (A) To determine type of promotion approach to be used. To promote both in E-market and Traditional trade for reach maximum effectiveness. (B) Evaluate the effectiveness of each method. Establish criteria for 82

evaluation such as number of visiting, purchasing, etc. Set the appropriate time frame for evaluation (C) Plan and implement sales promotion efforts. Launch a promotion in both web site and shop to attract visitors. Develop advertising messages media. 4.13 Future Plan For the successful of web site, we have plans to expand in the future in many ways below: (1) Increase another line of products and other categories about organic product such as organic meat, organic green tea, organic flowers, organic bean, organic cloth, organic fertilizer and organic seeds in the future (2) (3) To make a special activities for promote and launch new product. To join the other web site for co-operation in exchange banner and selling products such as OrganicThailand.Net. (4) (5) Create chat room for giving any knowledge or comment for future development. To make a registration form for customer when they takes order both at physical and from the web site. Update news and information every 3 days. (6) (7) Try to gain more advertisement and exchange brander to gain more income. Try to gain more alliance and organic farmer in order to gain more trade and products. (8) To provide more information about Organic Society to gain more potential customer and alliance. 83




Purpose of the Web The goal and purpose of this Web Site is to expand and

enchanted traditional physical business of organic information provider and sale the organic products, both domestic and international level. For both customer who sake for Organic Society information or organic products. provides more online services for customer, such as online cataloged, Organic Society news, Organic Standard, Weather Station, World Time Station, Organic Friendly Links and Web Board. Our customers can get to these information and good services that they want thru the internet at their demand. Many of information customers can not get from any where else, such as Thailand organic standard, how to convert from conventional farming to organic farming and organic bible.


Figure 5.1.

The Ten Steps of Web Site Development. [36]

The ten steps of Web Site development are: (1) Phase 1. The goal setting (marketing objectives and strategies which feed into the Internet marketing strategy). have two goal are provide Organic Society news & information and trade organic products by catalogs on line, cash upon delivery or pick up at physical location. (2) Phase 2. The situation review (environment analysis). has specific target market audient as customers who concern about their health and their living standard on both wealthy and healthy living at all age and sex. Also analysis the trend of living fashion show that, organic products are for the real cleaver people no matter rich of poor, especially middle class people. SWOT analysis, Four P and Assumption. (3) Phase 3. The strategy formulation (develop Internet marketing strategy). Includes detailed objective setting for Internet marketing which occurs after situation analysis. Note that the generation of marketing objectives and strategies, estimating expected results and identifying alternative plans and mixes are iterative processes. Which will show in detail in that section. (4) Phase 4. The resource allocation and monitoring (define Internet marketing plan and monitor). Step by step until accomplish the web site goal and the success show thru the profit on both income and strength on Organic 85

Society. (5) The Web Site were Base on Human-computer interaction goal with Simplenology User-centered as: (A) Safety of users, Safety of data with Authenticity (B) (C) Utility concern a users ability toward the goal Efficiency for user to finish their needs

(D) Usability are ease for user at any age and sex (E) Simple to navigate with one click to any another Web Page thru the entire Site. (F) Appeal to like the Web Site system first time and every time for long-term satisfaction Design Analysis for Simplenology as: (A) The Users Analysis the Web Site users are Advanced Beginner is impatient with needing to learn concepts when they have a job to do such as students, office worker, organic farmer, officer. Web Site design not to confuse by too many alternatives to choose. Only one simple click to any next destination of the Web page to fulfill customers needs. Competent Performer is an ability to diagnose simple problem and perform a series of complex tasks to achieve a goal. The Web Site 86

organic bible and standard of organic farming are suitable for them. And will serve their need of surf for organic information. Expert are the small portion of user who can perform a wider range of complex tasks the Web Site Web Board will help them to be able to contact will all other members of Organic Society to both fulfill their needs of organic products as well as help answer and guide the right direction to strengthen the solidarity of Organic Society in Thailand. (B) The Visual Organization good visual organization makes it easy to locate and well understand content. Also try to inspire user confidence and help them to find what they want is the design concept of the Web Site. Proximity is close together as being related to a group close together. The Web Site relates products in same category in the same manner for good proximity. And also all Organic Information that is arrange by the same method. Alignment is placing related items along an imaginary line and clarifies meaning as the same group. All products, links, Organic News and Information are arranged in this manner. Consistency is making the related items looks the same. The artistic Photoshop 7 photos serve well in the Web Site for grouping 87

every content and links. Contrast is make different items looks different. The Web Site use contrast color and theme for emphasize the important content, such as products and services (Organic New and Information). (C) The Content Organization of the Web Site is base on helping user find what they want in the most simplest way on their demand by all the following issue. Task oriented Metaphor driven Hypertext (D) The Navigation & Color Organization Global and Local Navigation Bar Ad hoc Links Search Engine Color-harmony Schemes Analogous enhance w. strong color (E) (F) The Typography Multimedia

(G) Trust 88

Hardware Requirement: One average desktop or laptop computer could make a web site and maintain it. The list below is for reference according to what I have built and used:

Table 5.1. Hardware CPU Main board Memory Hard disk Graphic card Sound card Dive DVD Monitor

Hardware Requirement. Description Athlon XP2500+ Gigabyte 7n400Pro2 512 X 2 80Raid0 Fx5200 RealTek Liteon 832S 15" LCD network card, ADSL modem, ADSL

Internet line or dial up modem with phone line


Table 5.2. Software

Software Requirement. Description Windows XP Professional Microsoft Access Macromedia Dreamwaver, Template technique,

Operating System Database

Web Develop Adobe GoLive6, EditPlus 2 Graphic Tool Upload Tool Web Implementation Browser Office Tools Adobe Photoshop7, Adobe After Effects 5.5 WinSCP3 Web Template Internet Explorer6, Mozilla Firefox Microsoft office 2003


Web Site Architectural Blueprint The site of is very simple but very effective, with human

technology design concept, only one click to excess any web page from any web page. This website has three levels of information. Firstly, homepage is the gateway to the rest of the categories. Secondly is main page of each category. Finally is sub-category of each category.


Organic Fruits&Vegetable About us Labrador Puppy Product Herbal&Probiotic Support Organic Rice Contact Cataloged on line Site Map World Weather Station Friendly Links Services Organic Society News World Time Station Google Search Edit Users information Add new information Web Board

Administrator Panel Maintain Users information Maintain Web Board

Figure 5.2.

SustainableHome.Net Site Structure.

Although there are 3 levels in, the architectural is mesh 91

structure. Every page of mesh can be linked to each other because of the navigation menu bar which is frozen at the top part and bottom part of every web page, so that it makes the customer easy to reach the desired page by human technology design with one click concept. In order to make it the most convenient for the customer and surfer, the services are listed on the left column, useful and organic friendly links are listed on the right column in every page. This structure is simple, clear, and easy to read. The template of web site were tested by user and listed at the top ten best templates. 5.3 Web Design Design on the page has to be attractive to induce the visitor to surf through the site. Most pages of are HTML with necessary ASP, and Photoshop clip art act as a link to help focus on the goals and content along with the audience's needs to produce effective communications means by template method. This focuses on creating a clear and easy-to-read web for audience. It uses white or light color as the background, and green as essential color combined with black and some dark green text. The color maximizes the contrast to catch the audiences eyes. The sketch of this website divides every page into eight parts for effectiveness and consistency. (1) Head Flash Logo: Sustainable Home co., Ltd. flash Logo name and Security Seal (work coordinate with last up date modify Java Script at last line of the web page) which could help protect availability, accuracy, authenticity, 92

integrity, confidentiality, utility, and possession of the web sites information security. (2) Navigation area: These parts are at the top and the end of every page, containing links to every desired page by human technology design with one click concept. (3) Display area 1: This part is at the left of every page, containing links to every main category of the products. (4) Display area 2: This part is at the middle part of every page containing the World Weather Station, World Time Station and Google Search Engine. (5) Display area 3: This part is at the right side of every page containing a calendar, the useful organic friendly links and advertising banner. (6) Display area 4 (Main): This part is at the middle of every page containing Links to main information of Organic Society News on the Home Page and all information of any selected Web page. (7) Foot area (last line of the web page): Copyright declaration, Java Script show last modify time, date, month and year of the page (work coordinate with security seal for the Web Sites information security).


Head Flash Logo and Security Seal

Top Page Navigator

Display 2

Display 1 Display 4 (Main)

Display 3

End Page Navigator Foot (Last up date and time)

Figure 5.3.

Design Sketch.


Details of the Web with Functional Description Web prototype was created to achieve the objective that is mentioned earlier, and

the main contents on the Web Site are to sale organic products and provide the Organic Society Information. The main pages in Web prototype are explained as follows: (1) Home Page It is the first page when visiting The visitor will see every function are the same as every Web page(See Figure 5.3.) which 94

is frozen on every page to make the reader easy to get related information. All details and contents will apple in the Display area 2 and 4. Home page is an HTML page. In the main Display area user will find World Weather Station, Google Search engine, World Time Station, on the top and Organic Society News, useful Organic Information and Friendly Links. With Privacy & Term of use link on the bottom left of the page.

Figure 5.4.

Home Page.



Products Pages. When user click the Product Menu on the Left Display area 1, every product contents will show in middle Display are 2,4 every other Menu and Function are freeze, that make user could navigate thru every part of Web Site so easy with only one simple click to any where thru in the Web Site.

Figure 5.5. 96

Products Pages.


Information Page This page shows Organic Society Information and News, as well as Organic Standard, how to do Organic Farming and many more according to the Links that provide. And these content will be up date every 3 days.

Figure 5.6.

Information Page.



Web board Page This page provides all necessary function of Web Board, with member registrations and post board.


Member Logging Page This page describes all the necessary function of member log in and log out.

Figure 5.7.

Web Board Page.


Figure 5.8.

Message Board Page.

Figure 5.9.

User Log In.

Message board: This page is for user to write some frequently asked questions. 99

After webmaster or expertise answers it, it will be shown on the web page. Other audience can check it, so that if they have a similar question they neednt ask again. It enhances efficiency of the companys service. There is a function in this page, which uses ASP to decide which record will be shown. When user submits a new record, the show is null. When the webmaster checks it and decides to show it, just add y and it will be shown on the page. So protect the web so as not to be attacked by junk message. (6) Member Registration and User Panel User must register and provide their information after that, they can login; user can enter into the User Panel page and modify their contents.

Figure 5.10.

User Registration Panel.



Administrator Panel This page is for webmaster to maintain all the information in this web and keep the web running as expected. Because the web is of utmost importance, only the Administrator can enter this page. For restricted access to login function, add a level 0, and it is the highest level of user.

Figure 5.11.

Administrator Panel.


About Us Pages About Us: This page is the introduction of the company, that lets the customer know much about the Sustainable Home Co., Ltd.


Figure 5.12.

About Us Page.


Privacy and Term of use concerns in are the right to

privacy and protection to both the Web Site and the user information [B] known as law of contract (Volokh 2000) are well writing for the benefits of both party.



Database Design Database is very important today, and many systems use database. As mentioned

before, most pages of this web are ASP (active serve page), which is worked with database. So the database is the core of this web containing all the information. There are 3 tables of this web. (1) (2) User: contain users information. Customer: it connects to the My Opinion page and contains customers question and advice. (3) Message: it is used for message board and contains customers question and webmasters reply. To be an efficient database, only tables are not enough as there should be relationship among some tables. Following is the relationship of this database:


Figure 5.13.

Database Relationship.

Following is the database dictionary of 3 main tables:


Table 5.6.

Message Table.

Figure 5.14.

User Question Table.

Figure 5.15.

Show Answer Table. 105


The Information Security, a Trust of the Web Site The level of complexity in todays information systems, the implementation of

information security has often been described as a combination of art and science. The concept of the security artesan is based on the way individuals have perceived systems technologists since computers became commonplace. The Information security in todays enterprise is a well-informed sense of assurance that the information risks and controls are in balance. Jim Anderson, Inovant (2002). It is important to realize that it is impossible to obtain perfect security. Security should be considered a balance between protection and availability. So that our information is available to anyone, anywhere, anytime, through any means. However, this kind of random access poses a danger to the integrity of the information.

Figure 5.16.

Balancing Security and Access. [32] 106

The principle of is base on this balancing concept. The definition of information security is the protection of information and the systems and hardware that use, store, and transmit that information (National Security Telecommunications and Information System Security Committee NSTISSC). A successful of not only sale and making money but the Web Site must have multiple layers of security in place as: (1) Physical security Well kept the information of the Web Site in well decide and kept in the Co-location of KSC. (2) Personal security The only one who works with the information management of the Web Site as web master is owner of Sustainable Home co., Ltd. (3) Operations security Well contain in Linux enterprise server software behind firewall of both KSC internet service provider and the server. Web Site contents only could be uploading thru specific IP address only. It needs to send command of open port thru server name Nangko in USA only. Any software or contents which some one tries to install into our server will be uninstalling automatically thanks to our security software. (4) Communications security Both upload and download always insure by service of KSC and TOT in 107

cooperated, who are recognize as one of the best service provider in the country. (5) Network security KSC internet service provider is one of the most reliable networks and connectivity in Thailand. (6) And also Information security that I will state in detail. The value of information comes from both the useful of information in Organic Society and its critical characteristics as: (A) Availability Any users could access information of the Web Site without interference or obstruction, and would receive it in the required format by any common internet browser. All the information of always back up with Nangko server (every day at 05:00 Am.) in USA and will be on line right away in case of could down. Also the contents of were saving in the potable hard disk that I always carry with me and could upload or download thru any internet connection. In very near future all information and data will be backup with Sustainable Home server in Cheingrai thru the internet connection network of IPstar. (B) Accuracy information came from the truth of experience organic farming and Thais Organic Bible that well written and certify by 108

both Thai Organic Food And Agriculture Federation, and Organic Thailand Agriculture Standards, The Department of Agriculture. Any attempt on changing of the Web pages contents will be able to identify by Web surfer or Web master right away thru the time different between Head Logo Security Seal and the Foot last modification time. (C) Authenticity Authenticity of information is the quality or state of being genuine or original, rather than a reproduction of fabrication. Information of the Web Site is authentic when it is the information that was originally created, placed, stored, of transferred. This issue is one of the major problem that no one ever invent the solution or the method to notify that the document or web page contents that we send, upload ,download, and save over the internet connection network is authenticity or not. But this project of had invented and solves the issue with very simple and costless method. Anyone could adopt and do it on any Web page and could use on any document that we transfer over the internet connection network. This method name Head Logo Security Seal and the page last modification identify by Java Script according to its practices. How the Head Logo Security Seal work? First of all the Head Logo must create by Adobe After Effects 5.5 in artistic manner, the result we always have a group of file to be render in one computer. Those groups of file contain ANIMATE.aep, last modification file .psd, logoseal.gif and 109

any other mean of file to suit it custom make. The last modification file .psd create by copy text from last modification Java Script locate at the end of our Web page every time that we modify it. After render we always have logoseal.gif that would show in every Web page. Any modify or save page will change the last modification of the page, cause differential on last modification between the Head Logo Security Seal and last modification date and time at the footage of the Web page that identify the Accuracy and Authenticity of the information. As Adobe After Effects use temp file and os of the computer that render the Logo gif. file any other computer could not change and render the content again, cause the unique of each Logo gif. file. (D) Confidentiality The confidentiality of information is the quality or state of preventing disclosure or exposure to unauthorized individuals or systems. contain with nice to know and useful information that could strengthen the solidarity of Organic Society that no confidential. Only the information about member registration and the cataloged on line that are confidential and well control by administration tool of the Web Site and server software. (E) Integrity The integrity of information is threatened when the information is exposed to corruption, damage, destruction, or other disruption of its 110

authentic state. The noise in the transmission media or low power signal could cause data to lose its integrity. were keep in

well decide server and Co-location of KSC who is recognize that one of the best internet service provider in Thailand. We have the system that will including redundancy bits and check bits. During each transmission, algorithm, hash values and the error-correcting codes ensure the integrity of the Web Site transition information. Any data, which has not been verified in this manner, is retransmitted. (F) Utility The utility of information is the quality or state of having value for some purpose or end. Information has value when it serves a particular purpose and person. The utility of information has its value in three issues. The value of information for buying and selling organic products, that useful for both the farmer and the consumer. The value of knowledge that could be a bible for practicing organic farming and guide to be certify. The value of organic news and web board, that strengthens for the solidarity of Organic Society in Thailand. (G) Possession The possession of information is the quality of state of having ownership or control of some object or item. The information of in possession as we obtain and in full control by web master no any other personal for this matter. 111

Figure 5.17.

NSTISSC Security Model. [32]

(H) E-Commerce Law and Regulation in Thailand [30] Many of the E-Commerce firm operated in Thailand does not comply with the law and regulation, some does not even know those E-Law are exist. These are the Regulation and Announcement from Department of Business Development, Minister of Commerce. For Internet service provider, Web Hosting provider, E-Commerce Web Site, e-Marketplace that everyone must be complies in Thailand. [A]

Figure 5.18.

Department of Business Development. 112

The registration of E-Commerce rule and regulation in Thailand. That needs to be register; (A) The person or company who are location of there business is in Thailand. (B) (C) The ISP: Internet service Provider. The one who give service of Web Hosting.

(D) The E-Marketplace service provider thru internet connectivity. The necessary document that firm must prepare; (A) The requisition document and detail of content of the Web Site. (B) (C) A copy of the Thai Identification Card (in case of individual person). A copy of the Thai Identification Card of the Manager who authorized of the company. (D) The authority delegation document. (E) In case of any late registration the explanation document must be prepare and submit. The time frame; The E-Commerce firm must submit the registration form with in 30 days from the first operated day. According to the regulation are subject to a group of E-Commerce Web Site who does not need to be register.



Financial Analysis The projected cost and benefit analysis for five years of the business plan. The

forecast will be classified into two parts. The first part will be the information of investment and the second part will be the income statement. This section will be the projected cost and benefit analysis for five years of the business. The forecast will be classified into two parts. The first part will be the information of investment and the latter will be the income statement.


Investment The following information will be the requirement in capital budgeting, human

resources and facilities for the start-up

Table 5.7.

Web System Cost Analysis, Baht.

Estimated Years Description 1 Fixed Costs Hardware Cost: PC (30,000.-) UPS (2,500.-) Laser (12,000.-)
Modem (2,000.-)

30,000.00 2,500.00 Printer 12,000.00 2,000.00 4,000.00 3,000.00 114



Scanner Telephone Setup(3,000.-)


Maintenance (10,000.-) Total Hardware Cost Software Cost: Ms. Office Web Design Macromedia Studio MX Adobe Photoshop 7.0 Total Software Cost 10,000.00 20,000.00 80,000.00 30,000.00 140,000.00 53,500.00



Implementation Cost: Training Cost Hi-Speed Internet Domain name Web Hosting Total Cost Implementation 34,850.00 20,000.00 1,500.00 1,350.00 12,000.00 -

Total Fixed Cost





Table 5.8.

Estimated Investment of Staff Member of IT for five Years.

Estimated Years Staff Member Salary 1 Operating Costs Marketing Director: Financial and Account Content Editor Programmer Web Designer Administrative Office 300000 180000 180000 180000 180000 96000 300000 180000 180000 180000 180000 96000 300000 180000 180000 180000 180000 96000 300000 180000 180000 180000 180000 96000 300000 180000 180000 180000 180000 96000 2 3 4 5

Total Salary Cost






Others Cost: Office Supplies Cost Miscellaneous Cost Total Cost Implementation 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00

Total Operating IT Cost Total Web System Cost

1191000 1419350

1191000 1191000



1191000 1201000

1191000 1201000


Table 5.9.

5-Year Accumulated Web System Cost, Baht.

Estimated Years 1 2 3 4 5 Total

Total Web System Cost


Accumulated Cost 1419350 2610350 3801350 5002350 6203350 -

1191000 1191000 1201000 1201000 6203350

When we know about the estimated costs from investment of the project, we will calculate the benefits in order to find the actual break-even point that will be shown at Table 6.4 and 6.5, respectively.

Table 5.10.

Tangible Benefits after Launching Web System, Baht.

Description A. B. C. D. E. F. Cost of reduction or avoidance Error Reduction Increased Flexibility Increased Speed of Activity Improvement in management planning or control Others: Advertising Banners Total

Year 1 through 5 200,000.00 200,000.00 200,000.00 200,000.00 250,000.00 250,000.00 1,300,000.00


Table 5.11.

Web System Benefits Estimated, Baht.

Year of Project Description 1

Economic Feasibility:
Net Economic

Benefits Discount rate (8%)

PV of Benefits

1,300,000.00 1,300,000.00



1,300,000.00 0.7273 945,490.00





NPV of all Benefits 945,490.00 1,890,980.00 2,836,470.00



Project Costs: Fixed Costs Operating Costs Discount rate (8%)

PV of Costs
-228,350.00 0.00 0.00 -10,000.00

-10,000.00 -1,191,000.00 0.7273 -873,487.30

-1,191,000.00 -1,191,000.00 -1,191,000.00 -1,191,000.00 0.7273 0.7273 0.7273 -866,214.30 0.7273 -873,487.30

-1,032,293.26 -866,214.30

NPV of all Costs

-1,032,293.26 -1,898,507.92 -2,764,722.22 -3,638,209.52


Overall NPV Overall ROI

215,753.18 0.05

Break-Even Analysis Yearly NPV Cash

-86,803.26 79,275.70 79,275.70 72,002.70


Flow Overall NPV Cash

-86,803.26 -7,527.92

71,747.78 143,750.48


Flow 118

Use the third year of positive cash flow to calculate break-even fraction: ((79,275.70-71,747.78)/79,275.70) =0.1 Actual break-even occurred at 3.1 years

The result of Break-Even Analysis will help us to get payback period of second years after launching web system in Internet and there are several benefits that occur as follows:(1) (2) (3) (4) (5) (6) More improvement of the efficiency and effectiveness in web system Paperless and no waste in processing time More convenience and accuracy Easy to browse and track the result of working process Anywhere, anytime connectivity to the Internet New way to sell products and services using website as advertising tool

Another way of looking at this that the capitalization rate is the rate of return on the price paid based on the assumption that the income which is received at that time will continue for ever at the same level. If our company thinks the income will

increase then we will reduce the capitalization rate; if we think the income will reduce then we will increase the capitalization rate. The same process is adopted to cover the

possibility of capital gain or capital loss experienced by the property. To be able to do this requires some experience and knowledge of the particular market and it causes are large amount of disagreement and variation in the values produced by this method of valuation. 119


The present value (PV) is the current value of future cash flow. PVn = Y x [1/ (1+i) n]


The net present value (NPV) is sum amount of PV. NPV = Sum (PVn)


Discount rate (i) is the rate return used to compute the present value of future cash flows and n is the number of year from now.


The return of investment (ROI) is the ratio of the net cash receipts of the project divided by the cash outlays of the project. [Overall NPV / NPV of all Costs]


Break-Even Analysis (BEA) is the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment. Break-Even Ratio = Yearly NPV Cash Flow Overall NPV Cash Flow Yearly NPV Cash Flow


Figure 5.19.

Total Cost and Total Revenue chart.

The break even point of the project will be at 3 years and one month at discount rate of 8%.





Conclusion This report present all the information and future plan of Cyber shop under URL related details about managing strategies, marketing strategies, SWOT analysis, and the future plan. divided the product into 4 Categories Organic Rice, Organic seasoning Fruits, Organic Vegetable, Organic health promotion and refreshment drink, Organic Labrador puppy. Each category contains supreme product with reasonable price SWOT analysis to be a strategy in marketing position of the shop. There are all over millions web site in the Cyber space, have to work hard for promoting the web site. will exchange banner and logo in the famous web site and advertisement. must generate a new idea to propose the best things to customer. So should always update all the time. will survey others competitors and improving the Web Site. offer All Sustainable Home product is produced with love and truth, For the true wealthy and healthy life to our consumer. Sustainable Home Company creates the Web Site for extending the traditional physical business to be a click and mortar business model. The initial objective of this project is to build a Web Site to enhance sale and information provider, extend the business of the company and reach more consumers. 122

When the web is developed, it matches these requirements. In extending the business, because the Internet is a huge society, the company can get much more customers from the Web Site and the company will be more well-known in this way. In work efficiency, all Organic Society members can share the information on the Web Site, and it reduces time and cost in communicating and transportation to each other. A member and consumer can submits the information on the Web Site, and other member can read it at the same time. As the Web Site provide many kinds of online services and information, the customer can get enough information they need before they ask for further services in a traditional way which cannot be made online. So it reduces a lot of time for initial services of the Organic Society. The Web Board could reply many similar questions to solve Organic Society problem by same expertise thereby improving the efficiency of work thru Web posting. In cost analysis, the Sustainable Home Co., Ltd. must do some initial investment in the first year for building the web. Although the company cannot get profit from the web in the first year, it makes a good basis for further year. When the effect of advertisement appears, many more customers will know this Web Site and visit it. In the following year, the company can get profit from the Web Site and get all the investment back. When continues, in later years, the company can get more profit. Apart from the profit, another benefit for the company from the Web Site is it will be well-known and the solidarity of Organic Society in Thailand will be strengthened. 123

In Web Site developing process, the target is to make it easy to use and personalized web. So the Web Site is mesh architecture, user centered and every page is linked to each other by a visible navigation bar in a manner of only one click. And use the ASP, JavaScript combine with Access database to make the Web Site, it contains much function can satisfy the customer. To start the online business, advertisement is required. The company will use search engine and directories and well written Meta tag, which can guide customers to visit the Web Site. Marketing strategies also are important to implement. The product of the company which provides customers with good personalized services and the fair trade price. For place, the company will combine online with offline channels so as to increase the efficiency of work. Promotion is the most important, and the company will use both pull and push strategies thru the alliances. The Web Site brings many strengths and opportunities to the company, but at the same time, weakness and threats also follow. In conclusion, this Web Site will improve the companys services and work efficiency, and it will bring more revenue and benefit for the company.


Recommendation (1) Develop the Web Site regularly to suit customer as the world on Internet and online Web Site progress. (2) Develop more effective Information security function of the Web Site. 124

(3) (4)

Increase more Organic Society alliance member. Increase more function to provide a real one stop Organic farming and certify service.

(5) (6) (7) (8)

Increase more function to provide Organic Society News and Information. Increase more products and products category. Provide on line transaction for the consumer. Extend for local organic products trader to more International level.


Appendix A ...... E-Regulation and Registration in Thailand.





1. 2. (e-Directory)

3. mark)




(2) (3)

(ISP : Internet Service Provider) (Web Hosting) (e-Marketplace)


1. ( .) 2. - - (


3. 4.

) )


(1) 1-7

( ) . 0 2547 5153-5


1( 2( 3 . 0 2276 7268 4 2266 5853-4 5 . 0 2276 7255 6 129

. 0 2722-8366-7 7 . 0 2276 7253



e-cash / ( )

( ) Download

Ring tone Screensaver SMS

) .


- -



e-Commerce )



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Research References [1] Kanchana, personal electronic communication, August 27, 1997, cited in Palasri et al, 1999, p. 9. Internet Thailand Service Center (ITSC) ( KSC Comnet ( Loxley Information, Wattachak Group, and Advanced Research Group), and, once again, CAT (Thaweesak, 2001). [4] (Loxley Information, Wattachak Group, and Advanced Research Group), and, once again, CAT (Thaweesak, 2001). Srisamorn & Soonruth, 4 February 2000. Bangkok Post Database, 3 July 1996. Thaweesak, "Achievement in 1995," 24 June 1996.

[2] [3] [4]

[5] [6] [7] [8] [9]

[10] Thaweesak, "The Outlook," June 24, 1996. [11] See Internet in Thailand in 1996 at Internet Information Research Center, NECTEC ( [12] Bangkok Post, 3 July 1996. [13] Waltham & Daraneyavaja, December 1996. [14] Winn, June 2000. [15] Sasiwimon, 4 August 1999; and Sasiwimon, 8 December 1999. [16] [17] NECTEC, 1999a, p. 8, Table 1 and IIRC, 3 January 2001. 144

[18] Thaweesak, current and IIRC, 3 January 2001. [19] Somkiat & Duenden, June 1997. [20] Waltham & Daraneyavaja, 1999. [21] Waltham, 2000, August 9. [22] ibid; Winn, June 2000. [23] Bangkok Post, December 1996. [24] Waltham & Dasaneyavaja, 1999. [25] Speech by Mr M R Pridiyathorn Devakula, Governor of the Bank of Thailand, at the British Chamber of Commerce-Thailand special luncheon, Bangkok, 1 October 2003. [26] Thailand Economic Outlook Thailand. [27] [28] Organic Agriculture Grows World wide [29] Source: Bhagirath Choudhary [30]
[31] Web Publishing with HTML and XHTML in 21 days, fourth edition, Laura Lemay.

[32] Information Security document by Rear Admiral Prasart Sribhadung. [33] User-Centered Website Development, Daniel D. McCracken, Rosalee J. Wolfe. [34] Philip Kotler. Marketing Management, Eleventh Edition. [35] Internet Marketing document by Dr. Chawapol Jariyawiroj.
[36] Internet Marketing 2nd edition, by Dave Chaffey, Richard Mayer, Kevin Johnston, Fiona Ellis-Chadwick.

[37] Management Information Systems by Kenneth C. and Jane P. Laudon. [38] Management Information Systems document, by Professor Srisak Jamonmal. 145


Organic Bible of Thailand, by Dr. Somkid Dithstarporn, Department of Agriculture.

[40] Organic Society news, by Thai Organic Food And Agriculture Federation.

Web Site References [41] [42] www.Best-Templates.Net [43] [44] [45] [46] [47] [48]