Production of frozen foods for export in Thailand
ABSTRACT
The main objective of the dissertation is to examine the feasibility of producing frozen foods for export in Thailand. This was done in two ways. The first involved primary research through online questionnaires. Respondents came from the three target markets; China, US and UK. They also came from Thailand itself. Data was collected through online software known as Statpac and one hundred and twenty one participants took part in the survey.
The Ricardian model strongly emphasizes the issue of comparative advantage.This eventually led to the country's superiority in this product forty years later. (Bouet, 2008)
In the gravity model of international trade, exports between countries must adhere to the economic sizes of the respective countries. Additionally, there ought to be a consideration of the distance between the two countries because these affect the level of success in those countries.The participants need to be either non-frozen food eaters or frozen food consumers since opinions of both sides will be sought in the questionnaire. Since almost everyone falls in the latter two categories, then the target population is rather wide. However, in order to ascertain that the population for the research represents views of the overall population, it is necessary to use an internet medium that is common. In this case the web was chosen as the ideal medium. Surveys show that mailing lists apply to 18% of the world's internet users while 89% of the world's internet users use email and the web is used by 81%. (Jossey-Bass, 2007)
Sample frame development
In order to identify suitable respondents, it was necessary to have access to the most common websites in the respective sites. This was because it is likely that frozen food consumers or people who know about frozen foods are well versed with technology and frequently use the internet. The participants were located by examination of all the common websites in the latter countries. This was done by compiling lists from online companies that did these surveys. The websites that appeared most frequently were chosen as the target websites for locating participants. It should be noted that a pop up window was displayed in the chosen website and users asked to participate in the questionnaire. Consequently, the sampling frame was done by getting the right website to display the pop up window. The possibility of having a well laid out sampling frame was difficult owing to the fact one cannot get access to a master database that has the names of all web users.
Additionally, its per capita expenditure is also quite conducive for business. Additionally, the frozen food sector in the UK is quite large; it is the largest in Europe. Owing to these factors, then Thailand exporters should consider this country for business. It would be advisable to offer minimal products there at first as Thailand tried to make a name for itself in the market. This could be done through partnership agreements between the producer and leading retailers such as Tesco or Asda. On top of that, Thailand exporters should stay away from products that have not been performing well in the UK market. It could start with potato frozen foods and frozen pizza which have done relatively well here
All in all, Thailand's macro-economic climate is very conducive for the export business. On top of that, Thailand's industrial sector has also started producing frozen foods and very minimal modifications will have to be made with regard to expanding the industry to the rest of the world. When choosing export partners, Thailand should give precedence to those countries with a large market for their produce; these are the UK and US. Additionally, it should also consider those countries that have potential for growth in the frozen foods market such as China. Other crucial factors that need to be taken into account include the trade conditions and restriction in those market and consumer attitude towards these commodities. Since the research found that China had almost all these qualities, then it should take first precedence. The US and UK should take second and third precedence respectively also owing to their market size but Thailand should have a unique product offering in order to make it there.
Limitations of the research
The research has found that Thailand is ready to produce frozen food for export. However, there are a number of factors that may interfere with the applicability of the results. For instance, the frozen food sector may change drastically within an identified country and this may hinder good performance there. Also, since the primary research (questionnaire) relied on the internet heavily, then a large portion of the respondents were young people. The opinions of the older generation could affect the outcome of the exporting business in particular. Also, the research eliminated all people who may not have access to the internet. This can hinder the accuracy of the results.
Appendix
Reasons for not eating frozen foods in each of the countries
Reasons for not eating frozen foods from China Screen dump of online questionnaire pop up window
Data requirement table
Investigative question Variables required How data will be measured Check to be placed in questionnaire
Do you purchase frozen Behaviour of employees concerning frozen food Consumers may indicate yes, no or not sure
What is your reason for not eating frozen foods Opinions on not eating frozen food Indicate; eats food at home, its not nutritious, is expensive, is not accessible
Would you purchase frozen foods from Thailand Behaviour when required to purchase frozen food from Thai Indicate; either yes, no or not sure
What are your reasons for not purchasing frozen foods from Thailand? Opinions on Thailand frozen foods It would; be too expensive, hurt local business, have poor quality or the market is already saturated
What is your age bracket Indicate age Is between: 18-30, 30-40, 40-6-
Summary of participants
Total respondents: 121
China UK US Thailand
Total respondents 38 19 35 29
No. Of female participants 18 8 27 17
No. Of participants between 18-30 23 26 4 18
No. Of frozen food consumers 8 30 14 17
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