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" Marketing Strategy Development of Community Businesses in Thailand "
Srikaew, Anuwat
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Latin Dissertation
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| Record Number
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1097315
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TLets507480
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| Main Entry
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Srikaew, Anuwat
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| Title & Author
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Marketing Strategy Development of Community Businesses in Thailand\ Srikaew, Anuwat
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| College
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University of Liverpool
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| Date
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2009
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| student score
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2009
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| Degree
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Ph.D.
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| Abstract
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Small community businesses in Thailand have flourished, noticeably under the OTOP scheme,started in 2001. This study focuses on community businesses (CBs) in Chiang Mai provinceinvolved in the production of fabric and clothes that have faced issues such as marketingproblems. Appropriate marketing strategies can be employed to ensure that these issues can bemanaged, allowing these community businesses to eventually become self-reliant.The objectives of this study were to: I) Investigate the internal and external factors that influencemarketing strategies of community businesses; 2) Examine the existing marketing strategiesemployed by community businesses; 3 ) Consider which of these marketing strategies should bedeveloped to benefit the community businesses; 4) Develop the chosen marketing strategiesfurther.Mixed method approaches were employed, referred to in this study as Exploratory SequentialDesign. This design starts with a qualitative approach, and then builds to a quantitative study.Phase 1 (QUAL I): Document study and the use of focus groups, aimed at exploring phenomenaand context (the internal and external factors influencing marketing strategies of communitybusinesses).Phase 2(QUAL 2): In-depth interviews and observations were conducted to prepare variables andquestionnaires for the quantitative approaches that were later employed.The results of phase 1 and 2 (qualitative phases) showed that the macro-external (political, socialand cultural, economic and technological) factors had a significant impact on communitybusinesses, both providing opportunities and creating threats to their potential success. The studyof micro-external factors (customers and competitors) showed that the OTOP Groups' sales weremainly to local customers. Customers also included wholesale distributors, overseas buyers andtourists. Competitors ranged from local producers and factories to neighboring countries.The study of internal factors showed that organization and management was undertaken in a cooperativestyle. The manufacture and production of products was typically hand made or machinemade in the traditional local style, using locally sourced raw materials. Financially, communitybusinesses were found to build their capital from the shareholders and members of the business,as well as securing external funding. Financial education was also provided by agencies affiliatedwith the OTOP project.Marketing, which also come under internal factors, was seen to have four main areas of focus,namely product, price, place and promotion. The products being produced fall in to the categoriesof fabrics, clothing, personal effects, household articles and souvenirs. The prices are set by acombination of production costs and rivalry between competitors. The distribution, or place ofsale, was seen to be through a variety of shops, wholesalers, exhibitions and events. Withadvertising being expensive, cost effective methods to promote products used included namecards, brochures and in some cases buying local radio advertising space.Phase 3 (QUAN I) Under a quantitative approach, the researcher used survey method with 400customers of CBs in Chiang Mai province of Thailand. Statistical methods of Factor Analysis,Multiple Regression, and Percentages were used in this study.The results of the factor analysis showed six components, or factors, that would be significantareas of interest: Place, product, personal selling (customer service), promotion, packaging andprice. This was ascertained through a rotated component matrix, listing the factors loading afterrotation. Using the process of multiple regression on these six factors, three key areas of place.product and personal selling (customer service) were identified as being the most significantareas to develop marketing strategies. These three areas of place, product and personal selling(customer service) were subjected to SWOT and TOWS analysis to systematically develop andsuggest 15 appropriate marketing strategies.These are as follows: (I) Broaden the range of traditional clothing garments produced; (2) Gainknowledge of latest fashion trends, in order to develop stylish garments incorporating moderndesigns with traditional fabrics; (3) Employ stricter quality control measures to ensure productsare of consistently better quality; (4) Encourage producers of high quality products (4 star and 5star) to broaden their channels of distribution into the potentially lucrative export market; (5)Identify staple items that are most popular with customers implement a production strategy that caters to these market demands; (6) Broaden the channels of distribution utilised by communitygroups to sell their products; (7) Maintain rigorous staff training programmes, to ensure that allsales staff have detailed knowledge of the products they are selling to customers, as well asmodem selling techniques; (8) Community businesses should focus their production firmly onhandmade, traditional, intricate products that are unique to their local area; (9) Develop acomplementary network of producers producing inter-related goods; (10) Utilise governmentfunding to establish 'one stop' OTOP shopping centres within each district town centre inChiang Mai to cater for customers interested in OTOP products; (II) Develop a range of natural,colour-fast dyes for fabric; (12) Improve the consistency in terms of quality of communitybusiness products: (13) Cease production of modem clothing garments; (14) Educate CBemployees about the negative impact of chemical dyes on the customer and the environment;(15) Improve the layout and visual appearance of OTOP retail premises in order to make themdistinctive from those of their competitors.
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University of Liverpool
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