Suvimol Foods is a registered business entity in the food industry. Founded in 2002, it currently employs five people and is incubated at the infoDev-supposed Kenan Institute of Asia (KIAsia) in Bangkok, Thailand.
Company Start-Up & Incubation Support
Mrs. Suwimol sells home made deep-fried Thai-style crab cakes and steamed fish curry cakes in the community, catering to locals clients as well as other communities. She has good cooking skills and earns a high reputation for her delicious food. She is now operating a food outlet in her own shop house in a small community about 100 kilometers from Suratthani province. The objective of her business is to expand her target market to nearby communities and in the province.
"My recipe in itself is an innovation and a direct response to the market situation and trend! ... The business incubator has given me a big push and useful tools for taking my concept and operations further!"
Mrs. Sumivol Jamnian, Owner, Sumiwol Foods
The KIAsia incubator manager suggested that Mrs. Suwimol sell her products at nearby market and trade fairs organized by the college, for market testing. The outcomes were very satisfying as more orders from local and non-local customers poured in. Then a problem occurred since her business is a one person enterprise utilizing traditional methods to mix ingredients manually, using 2 part-time workers. The production scale is limited and cannot increase easily as the market expands. In addition, if the market is going to expand to other communities, better and more attractive packaging is needed for better marketing and convenient transportation. At the time, she was using a simple plastic bag for her packaging.
As a result, a mixing machine was introduced to increase productivity. However, Mrs. Suwimol still preferred the traditional method, which, she said, would result in a better texture. Then, the incubator manager suggested she initially recruit two more employees to increase capacity to serve the growing market. At the same time, the incubator utilized one of the mixing machines in the home economics department of the college for experimenting with production. Furthermore, a loan structure for buying a mixing machine, if needed, was also planned, with assistance from the incubator manager.
Packaging was also another issue. The incubator manager provided advice on appealing and convenient package designs, to serve as not only a container but also a marketing tool for the product. She also advised on preparing business cards, brand name and logo designs and assisted in planning a marketing plan and finding more distribution channels through the incubator’s network, such as hospitals, restaurants and trade fairs.
The assistance resulted in a significant increase in customers from nearby communities and the province. This has been accomplished through a convincing marketing plan and the available networks of the incubator and the college. The brand name and product packaging were created with an attractive design that was suitable for transportation. As the new packaging creates more value added to the product, the profit margin has increased due to the higher selling price. Average monthly income increased from 6,000-8,000 Baht to 12,000-15,000 Baht (from USD 190-255 to USD 382-478).
Interview with Incubator Client Company
This interview was conducted with Mrs. Suvimol Jamnian, Owner of Sumivol Foods.
Is this the first company that you have started, and what drove you towards it?
We are not registered as a company yet, but I have registered at the Ministry of Commerce as a business entity. This has given us better access to support from government, rather than being registered as an individual. I started this business for a very basic reason: I have always been complemented for the food I have made!
How did you finance your start-up operations and how long did it take for the company to become self-sustainable?
I started up by using my personal savings. It took me about 2 years to become self-sustainable. I also received support from my family, my husband and my mom, especially when the business was short of cash in the first 6 months of operation. All along we tried to keep low inventory costs in order to minimize overall costs. We had no incubator support at the time but I attended training organized by the Skills Development Agency, which is supported by the government.
What are your major products and services and how are they unique? What is your competition?
Our major products are home made deep-fried Thai-style crab cakes and steamed fish curry cakes. I have created my own style and ingredient so it tastes better than the competition. In my area, my products are the most famous. I use fresh ingredients and I make the curry paste myself by using fresh chile from my own yard - and people say it tastes than elsewhere! Customers always come back to me after they have tried from other vendors. The secret is to use the fresh ingredients and no stock products. My products became so popular that even surrounding communities came to buy my food.
How did you first launch the product?
I have always been a good cook and I have try many foods for business purposes, but narrowed it down to these two products to make me sustainable. The products could sell a lot and made a good margin. I did no advertising in the beginning - it was just word of mouth. Then the incubator at the vocational college recommended me to the food stores and restaurants in the city, so I made more sales.
How do you measure the success of the company?
Currently, the products are selling in my area in the community, about 200 kilometers from the closest big city. I would like to have my products sold in the city and all over the province, and eventually get to the market in Bangkok. My measurement of success is the geographic area that I cover, and sale figures come only after that measurement.
Who are your clients and how many do you have? How are you focusing on expanding your user community?
My clients are people in the community and nearby, as well as travelers who travel pass through our community. I get about 200-300 clients per day, many of whom are repeated customers. Now I am also sending my products to 5-6 restaurants in town every day.
Are you planning to patent your product and do you see any obstacles in doing so?
To my knowledge, this particular food cannot be patented, but instead we are trying to create brand awareness. We have designed the packaging with a logo for maximizing the awareness of customers. We have created an advertising billboard. The incubator at the college promised that they would also advertise my products in the local radio, free of charge. Word of mouth has always worked for me, so I am excited about this new advertising opportunity!
What was the biggest challenge in starting an innovative business in your country and how did you overcome that?
The biggest challenge is commitment to the business, funding and support for your family and those who are close to you. I wanted to stay in the community and support my family. Currently, people are more health conscious, so I use only fresh ingredients and chile form my yard, which is organic and has no chemicals, and then I add some herbs into it. My recipe in itself is an innovation and a direct response to the market situation and trend! Challenges remain in keeping consistent in taste and value, because the price of fresh organic ingredients is rising.
Who are the shareholders in your company?
Myself and my family.
How have you benefited from business incubation?
The business incubator brought me close to my dream and helped me succeed! In order to create more sales and expand in the market, we needed to improve our packaging, our production capacity and most importantly establish our brand name. The incubator provided me with the necessary knowledge as well as the technical support, such as finding designers who can assist me with the packaging design, and the installation of machines so that we can produce more and create the brand name.
With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company?
You need to have commitment and stay strong because there will be many challenges and obstacles. For example, when you first start a business, sales hardly cover operational costs. I had to borrow money from my mom and friends and no bank would give a loan to me as I have no collateral - so I learned to control my production costs. Sometimes there was also a shortage of seasonal ingredients, such as fresh crab meat and fish, so I had to learn more about purchase planning and networking with many vendors to avoid such a shortage.
Do you feel that you had the necessary advisory and support network when you started your company?
When I first started, there was no incubator to help me yet. I only had the support of my family and friends. I also received advice from the Skills Development Agency for technical training and some basic business training, such as basic accounting.
The business incubator is a great project and I wish that other entrepreneurs can continue to receive this support! For me, the initial challenges came with having such a limited support framework, but the business incubator has given me a big push and useful tools for taking my concept and operations further!
For more information about the KIAsia Business Incubator, please visit their profile in the Global Network Directory.