ABSTRACT

The retail markets in Thailand become intensely competitive due to the number of competitors entering the market and globalization. New companies that have recently entered the market could manufacture their products at a marked-down price and consequently use the price-cutting strategy to compete with the existing brands. Competitors, both newcomers and previously existing companies, tend to cut down the selling price to gain more market share for themselves and stimulate more demand. Currently, many companies in Thailand were wrecked and closed down as the consequence of economic downturn and intense price competition. In order to survive this situation, companies have to find the optimal promotional strategy to attract demand for products to increase profits.
This study investigated the relations between factors of the price-promotion intensity and sales volume which factors of the company and also competitor factors were explored. The simultaneous model of determinants of retailer pricing strategy (Shankar & Bolton, 2004) was applied to examine the stainless steel kitchenware market in Thailand, focused on the product line of noodle pots in which the target customers of this product is restaurant businesses, not home users. This study used the data from 2 companies that currently dominate the market of stainless steel kitchenware in Thailand.
From the result, this research found that the company’s deal depth is the only substantial factor that affects the sales volume of the company itself. On the other hand, the competitor’s deal depth does not correlate with the company’s sales volume. And the type of deal that the company provided does not matter.

ABSTRACT

The retail markets in Thailand become intensely competitive due to the number of competitors entering the market and globalization. New companies that have recently entered the market could manufacture their products at a marked-down price and consequently use the price-cutting strategy to compete with the existing brands. Competitors, both newcomers and previously existing companies, tend to cut down the selling price to gain more market share for themselves and stimulate more demand. Currently, many companies in Thailand were wrecked and closed down as the consequence of economic downturn and intense price competition. In order to survive this situation, companies have to find the optimal promotional strategy to attract demand for products to increase profits.
This study investigated the relations between factors of the price-promotion intensity and sales volume which factors of the company and also competitor factors were explored. The simultaneous model of determinants of retailer pricing strategy (Shankar & Bolton, 2004) was applied to examine the stainless steel kitchenware market in Thailand, focused on the product line of noodle pots in which the target customers of this product is restaurant businesses, not home users. This study used the data from 2 companies that currently dominate the market of stainless steel kitchenware in Thailand.
From the result, this research found that the company’s deal depth is the only substantial factor that affects the sales volume of the company itself. On the other hand, the competitor’s deal depth does not correlate with the company’s sales volume. And the type of deal that the company provided does not matter.

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