MARKETING SYSTEM OF HARDBOARD IN THAILAND

Abstract

The main objectives of this study were to determine the production, marketing, market structure, market conduct and market performance of hardboard in order to formulate the action plan for forest plantation and marketing of hardboard in the future. The study was conducted by using questionaires. The results of the study indicated that there were 4 hardboard mills. The raw materials used for hardboard production were eucalyptus and wood residues. The production problems were the raw material quality and it's shortage, especially in the rainy season; the low efficiency of the old machine; the lack of skill labor and the high production cost. The marketing channels for hardboard moves through retailer, affiliate, furniture factory and exporting Marketing problems were the high competition and low price in foreign market. The market structure was monopoly. Due to the limitation of product differentiation, hence, each firm attempted to provide the good services for their customers. The important barriers for the new firm to entering the market were the high overhead costs, at least 277 millions baht for small-scale hardboard mill. In addition, know how cost, personnel and differentiate products were the significance factors for the new firm to determine. In addition, market conduct could not employ the price policy, this relied on it's substitution goods, and world market price, while the commodity policy emphasized on brand name stralegy, selling promotion, and acceptance of the returning of defected products. Moreover, the results of marketing operation indicated that hardboard with 3 mm in thickness having with the highest marketing margin of 4,640 baht per m and marketing efficiency base on the lowest price of 193.06 percent, while hardboard with 6 mm in thickness having with the lowest marketing margin of 4,528 baht per m and marketing efficiency based on the highest price of 195.36 percent, whereas the technical marketing efficiency indicated that the different between the ratio of retail price to marketing cost and ratio of retailed price lo marketing margin of hardboard having high value in every thickness levels. Hence, the producers could take opportunity to monopolize their business operation and issue the related marketing policies.