Study of supply chain and marketing strategies for export of Thai fresh fruits to China : a case study of Crop Integration Business of CP Group | |
| Author | Nattee Chaivanit |
| Call Number | AIT RSPR no.SM-06-18 |
| Subject(s) | Fruit--Thailand--Marketing Fruit trade--Thailand--Marketing |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-06-18 |
| Abstract | This research was conducted based on the interest of how Thai fruit exporters enter, and capture the market share of Chinese imported fruit market. Crop Integration Business Group (CP Crop) was selected to study their entry strategy and marketing strategies for their fruit brand, C.P. Fruit, under the condition that Chinese are not sensitive to brand, and see fresh fruits as seasonal perishable commodity. Chinese fruit market situation seemed to be bright for Thai exporters due to the market trend and the result of FTA between China and Thailand. The consumption was forecasted to rise as Chinese economy was growing. Opportunities came alongside with intense competition. Moreover, pattern of living style effected the purchasing decision. Consequently, fruit dealers would need professional marketing campaigns and much more efforts to gain market shares. CP Crop used direct exporting as entry strategy, and then expanded the market area through their customers' networks and CP's distribution network. They applied many promotion strategies to the market as hope to gain market interest, and customer preferences. One outstanding strategy is branding. Their brand is now at the beginning stage of gaining consumers' awareness and creating customers' recognition. The highlight strength of CP's fruits is product quality. CP Crop claims that they could provide superior quality of fruits, especially their flagship products - pomelo and mango, as they can control the whole production process. A sticker of "C.P. Fruit" is marked on each fruit to represent the brand name and to work as a guaranteed label. Every lot of CP's pomelo and mango could be traced back from a supermarket in China to an orchard in Thailand. In addition to large scale promotion campaigns, CP Crop has received very well cooperative from Thailand's Ministry of Commerce and Ministry of Agricultural and Cooperatives. The events in big cities around China help raise attention from Chinese, and consequently result in positive impact on demand of Thai fruits. Although high demand for Thai fresh fruits gives good sign to CP Crop's fruit business, but this does not imply to the demand for CP's fruits. Creating demand for CP's fruits thus the challenging job. They started by selecting prospective fruits that they were confident of. Pomelo was chosen to be their flagship product, and Mango was positioned as their high potential product. In market side, Chia Tai BSI is responsible for creating demand and pushing the "C.P. Fruit" brand, and at the same time, in supply side CP Diamond Star is assigned to take care of the whole supply chain. New techniques and strict quality control procedures are applied to the production process, so that CP Crop could ensure their fruits' quality. They have already succeeded in exported pomelo and mango produces, and are extending the scope to their other fruits. To summarize, the effectiveness of supply chain will result in quality of pomelo and mango, and then will accordingly generate the difference to C.P. Fruit brand. Hence, the competitive advantage of CP's pomelo and mango. Lastly, concentrated marketing strategies are needed to continuously emphasize on the brand name and to build up market share |
| Year | 2006 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-06-18 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Johri, Lalit; |
| Examination Committee(s) | Paul, H.;Shekhar, Vedulla; |
| Scholarship Donor(s) | Royal Thai Government Fellowship; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2006 |