Marketing of Wood Plastic Composite Products in Thailand

Abstract

The production, marketing and five competition forces analysis of wood plastic composite (WPC) products in Thailand were analyzed. A designed questionnaire was used to interview five respondents. Statistical analysis used the frequency, percent, mean, minimum, and maximum.

The results of the study revealed that in 2009 there were only five active WPC entrepreneurs. The majority of raw materials used for WPC production were sawdust and thermoplastic and production was approximately 4,983 m³, with an increasing annual trend. Obvious obstacles to the production were: the price of plastic, the price and quality of sawdust, a lack of workers, and aging machinery. WPC products could be divided into three groups: solid, hollow, and C-shaped with clipped lock. The length varied between 2.5 and 6.0 m and the thickness and width varied from 0.8 to 5.0 cm and 1.3 to 30.0 cm, respectively. Of the products, 92% were distributed to the domestic market. The structure of market was an oligopoly. Obstructions to new entrants were mostly caused from being new-entry products, benefits in price from import shipments, and not having certification to meet the industrial standard. Based on five competition forces analysis, there has been close competition in the production design to optimize products. New entrants might require a high budget to invest in running their business. Vinyl, wood cement board, and sawn wood were replacements for WPC products. Due to the economical recession, and to enhance the sales volume, buyers were playing a major role in bargaining, even the raw-material sellers, who had taken advantage to bargain as raw plastic plays an important role in the production lines of many business sectors. Furthermore, saw-dust was also being increasingly required for production.

Keywords: marketing, wood plastic composite