Marketing of Agarwood (Aquilaria spp.) Products in Bangkok

Abstract

The objectives of this research were to analyze the production, marketing, environmental value of the agarwood product business using the SWOT analysis and the five competitive force analysis of the agarwood businesses in Bangkok. Data collected through questionnaires were summarized using various statistical indicators such as frequency, percentage, mean, minimum, and maximum.

The results of this study inidcated that there were 24 agarwood businesses selling agarwood products. The products were 1) agarwood chip, priced in a range of 5,000–42,000 Baht per kilogram, 2) agarwood oil, priced in a range of 700–4,500 Baht per tora, 3) agarwood perfume sold in bottles of size 10 or 50 milliliter and priced in a range of 200–550 Baht per smaller sized bottles and 1,200 Baht per bigger sized bottles and 4) agarwood incense, priced in a range of 200–500 Baht per wrap or box. The production problems were generally related to the quality of raw materials, government regulations, availability of labor, and personnel. Marketing through advertising, selling promotional activities, staff selling and booths at trade shows were the primary methods of spreading the information about the products. The market structure was oligopoly, with the products having different quality, price, size, type, and services. The operational strategies employed in the agarwood products business were the good products strategy, siege strategy, flank attack strategy, multiple-products strategy, mobile defense strategy, and enterprise strengthening strategy. The five competitive force analyses found that the competitors in this business were competition for the market share. New entrepreneurs had difficulty entering this business. As the raw material price was set by the seller, due to the economic slowdown, buyers had higher bargaining power. Therefore, entrepreneurs should study consumer behavior, including focusing on public relations while developing new products.