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A Study on Marketing System of the Royal Project Product

          

          The Royal Project Foundation (RPF) has been playing a very important role in developing and promoting quality of life for the highland farmers in various aspects. The development derived from the RPF has turned the household and community subsistence farming into the commercial-based production bringing to further develop in market channels for the highland agricultural products delivered to consumers throughout the country. The main stream of the RPF’s products comprise vegetable,fruit,coffee,cutting flower,herb and agronomic crops under Good Agricultural Practice (GAP) emphasizing on quality and safety standards in all link of the supply chain. Moreover,the existing of the grading and packaging center can also ensure the consumer’s confidence in consuming the RPF’s products for both domestic and international markets.

          The supply of the highland agricultural products is mainly drawn from vegetable more than fruit products. The majority of these local traders are representatives of the provincial traders. The second and the third places go to the individual traders and the traders from Bangkok, respectively. This characteristic indicates that the distribution of the highland Agriculture products has been developed to connect with the city and Bangkok markets via local and representative traders.

          Beside prevailing traders,each development center of the RPF performs a marketing task by means of gathering agricultural products from the farmers who are the members of the development center. After the gathering process,the products are sent to the grading and packaging development of the RPF. The marketing activities of the Doi Kham agricultural Product start from the grading and packaging processes in Mae Hea under GMP,HACCP,and CODEX standards to assure that the product are safe throughout the supply chain before distributing to marketing agents and finally to the consumers. This is the reason why the vegetable and fruit products of the Doi Kham differentiate from other existing products in the market.

          The fresh vegetables and fruits under the brand name “Doi Kham” are characterized as safety products because the production process is under the GAP system,plus the grading,storage ,and transportation systems are safely taken care. Hence the Doi Khum’s product are able to the pass safety standards are receive “Q” and “Organic Thailand” from Department of Agriculture. Consequently, Doi Khum’s products can seek specific marketing channels via the modern trade and some can be exported to other countries such as Singapore.

          The wholesale of the Doi Khum’s fresh vegetables are normally traded by means of the modern trade e.g. hypermarket,supermarkets,specific stores,Doi Kham stores,and other specific customers such as Thai Q.P.,Thai International Catering,Hotels,and restaurants.

          Interestingly,the price survey between Doi Khum’s and other prevailing fresh vegetables at the Supermarkets showed that the prices of the leaf-,root-,and fruit-, consumed vegetables were 86.7 %,141.4 %, and 61.2 % respectively different from those of the other prevailing vegetables in the market. This can be explained that the quality throughout the supply chain is the significant strength of the Doi Khum’s products which are capable of catching the upper market, high income class, and quality concerned comsumers.

          The survey of consumer’s attitude on the Doi Khum’s products indicates that most5 samples were interested to buy the RPF’s vagetable products. Those who buy had the buying frequency runs between 1-3 time a week. Safety,health standards,certified sign, and freshness are among the main reason of the consumers in buying the RPF’s products.


          To catch up with the dynamics of the market, the study suggests that the RPF marketing department should formulate strategic vision and should actively expand the market of safety food associated with the campaign of healthiness among the Thais. A move on product development in terms of value added and value creation of the chain is necessary in coupled with constructing measures for product promotion. In addition , building relationship with the business partners should importantly be considered for marketing cost reduction.

 

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