The Marketing Strategies of the Thai Rice Business

in Xi’an City, Shaanxi Province , China

JingXin Yang, Tanachart Raoprasert, Chaturaporn Sihabutr

[Abstract]
Thai rice positioned as a high-end imported product which
faced many matters during selling process in Xi’an City.
Marketing strategy had a crucial impact on long-term sur-
vival and development of enterprises. This study aimed to
found which factor will influence the marketing strategy in
Thai rice business as marketing mix as research variables.
The data used structured interview technique on six inter-
viewees who expert in Thai rice business from four success-
ful enterprises in Xi’an. The study results showed that four
factors played different roles in marketing strategy and for
Thai rice business, “place” had highest impact on strategy
planning, because place directly related to the speed and
area of the product into the market. Followed by “product”
which was the basic of the trade, the symbol of corporate
image and brand. Then showed the contradictory opposition
on“promotion” and “price”.
Key words: Chinese rice market, Thai rice in Xi’an market,
Marketing strategies, 4Ps

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Introduction

The friendship of Sino-Thai ran a long time and the formal diplo-
matic relations established in July 1st 1975 (Yuyun, 2013). Favorable rela-
tionship and positive trade policy promoted the rapid economic develop-
ment such as the Agreement on Zero Tariff of Fruit & Vegetable between
China and Thailand in 2003, The Engineering Procurement Construction
(EPC) Contract of Steel and Purchase Contract on Agricultural Products in
2005 (Xiawen, 2015). China was second largest export market also the first
largest source of imports for Thailand (World market and trade, 2016). The
relationship between two countries got a superior stage after established
the partnership China-ASEAN and Free Trade Zone, then the transaction
between two countries covered a lot of ground both the heavy industry and
the light industry (MingYang,2009).

China and Thailand were agricultural powerful countries and as

Thai rice as the major imported food in transaction. The main reason for
Thai rice accessed to Chinese market was the adjustment on species de-
mand (Qingchun, 2014). Secondly, in view of the food security occur-
rences and immoral business ethics, the worrisome quality of Chinese rice
had already caused the panic among the consumers (Guangyang, 2016).
Moreover, due to a large increase in Chinese grain production, govern-
ment approved Minimum Purchase Policy to ensure the rice price stay
at a high level so as to guarantee the income of farmers (Zhimin and Or-
rasa, 2012). At the time of policy implementation, the global rice pro-
duction with an adequate supply in export and the international rice
price slowdown continuously because of the appreciation of U.S. dollars
(Food and Agriculture Organization (FAO), 2015). The rice price risen
persistently led a wide gap between domestic and international market
thus caused the impressive profit space in import trade (Zhidong, 2015).
Therefore, many rice sellers in China shifted their sight to import mar-
ket and attempted to take new opportunities with the Thai rice business.

Thai rice belonged to upscale product with higher price than local
rice which caused many unscrupulous traders used illegal ways to reduce
the cost in order to make profit (Guangyang, 2016). This phenomenon not

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only led the trust crisis of consumers to Thai rice also let the legitimate
companies facing the grave difficulties. Besides, the competition of do-
mestic rice rushed to Thai rice business which effected the development
of Thai rice industry, such as the famous brand “Wu Chang Rice” and
“Dao Hua rice”(Qing, 2016). Although Thai rice business was difficult
to survive in Xi’an city, still had some achievers dominated the rice mar-
ket. Business development can not be separated from proper marketing
strategy which played an important role in business running also was an
integral part of the business management (Muangkhot & , 2015). Market
would be affected by some factors which divided into controllable and
uncontrollable. There was no fixed pattern for marketing mix, different
combinations of factors would influence the final strategy and the imple-
mented strategy also need to improve in time according to market changes
and internal resources (Luca & Suggs, 2011). Companies must make an
effective combination of these factors in order to seek the market vitality
then got maximum profit (Naeem, salam and Ali, 2011). This paper mainly
describe the relationship between 4P factors and market strategy through
qualitative methods on Thai rice enterprises in Xi’an market, exploring
which factor had influence on marketing strategy on Thai rice business.
The result of study had benefits both for businessmen who engaged in
Thai rice business and anyone who interested in Thai rice business. The
academic researcher also can use this study to do the further survey.

Literature Review

Marketing Strategy

Marketing strategy embodied in the design of marketing mix which

was the most important concept in doing business including a set of
controllable marketing tools that a company used to create a desired re-
sponse in the targeted market (Khan, 2014). Marketing mix referred to
an enterprise focused on marketing demands and took into account the
environment, company ability, competitive situation to make a compre-
hensive optimization and combination for internally controllable fac-

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Journal of International Buddhist Studies Vol. 9 No. 1 (June 2018) 116-140.

tors in order to achieve better economical benefits by coordination, ad-

vantage exertion and weaknesses avoiding (Biggs &  Calvert, 2013).
This study focused on 4Ps only because those were key points for
connecting market performance and self-management (Thusyanthy and
Senthilnathan, 2012). In 1960, E.J.Mc Carthy proposed the famous theory
of 4Ps and defined the factors as product, price, place and promotion, from
which to formed later doctrines. The ability to change the external envi-
ronment was limited for any enterprise, the approach 4Ps was the base
component and vital link for marketing activities by which company could
realize the control of the market (Cole, Joan & Jayson, 2013). The essence
of marketing activities was a process of using internal controllable fac-
tors to adapt the external environment, that was, through implement the
strategy of product, price, distribution, promotion to respond the external
uncontrollable factors so as to contribute the transaction and meet the indi-
vidual or organizational goals (Jiaxun, 2012).

Development of marketing strategy was the key point in doing

business, enterprise could combine the internal elements in different ways
to accomplish business goals and tasks (Hon, 2011). There was no fixed
pattern for marketing mix, different combinations of factors would influ-
ence the final strategy and the implemented strategy also need to improve
in time according to market changes and internal resources. (Jing, 2016).
Market just like a cake which composed of different ingredients and the
final taste depended on the proportion of sugar, flour, milk. Same reason as
the market direction which determined by marketing mix factor and would
get the different results with different combining form (Jessa, 2014).

Enterprises entered the market relied on reasonable direction and

action with the change of product attributes (creation, communication-
focused, performance-focused) and market changes (demands, market-
oriented) at any time to make adjustments, through the specific implemen-
tation of market management can effectively improve the competitiveness
and influence of enterprises (Tollin&Schmidt, 2015). The task of market-
ing management was the activities to promote the achievement of business
goals by adjust the level, timing and nature of demand (Xiangyun, 2009).

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The process of marketing management referred to an enterprise find, ana-

lyze, select and use market opportunities to finish the business tasks and
objectives, the steps include market opportunities evaluation, target mar-
ket selection and segment, seller assessment marketing mix development
and marketing programs control (Xiucheng and Yuxiang, 2014).

This paper mainly examined which factor from four variables had
influence on the marketing strategy of Thai rice business, so the assump-
tion as below:

Assumption 1: Product is the factor that influence Thai rice business

strategy

It was the basic of transaction in business activity, created the value

for two parties of deal (Gordon, 2012). Muala (2012) defined the products
as something that can be offered to customers for attention, acquisition,
consumption and satisfies some want or need for them. It included both
tangible product and intangible service and there were four main contents
in one product which were feature, abstract, performance, internal and ex-
ternal, the product also be classified further more as performance, value
and value added (Qurneh, 2012). There was no best-selling product of all
time in market, innovation constantly or not became an critical issue that
decided the development continuously and steadily for a enterprise (Ozka-
ya, 2011). Branding awareness was a key factor for them to choose the per-
fect product, they believed a good brand reputation was the performance
of product quality (Kalafatis, 2010).

Assumption 2: Price is the factor that influence Thai rice business

strategy
Virvilaite (2009) thought that the price was an important factor
to determine customers’ satisfaction. Price was the only element in the
marketing mix that produced the revenue directly, thus a sale man need to
know how to set a attractive price (Ruiliang, 2008). How much consumers
were willing to pay fluctuate due to their different needs. Thus, the price
perceptions to the same service or products may differ among individuals

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and that was also the reason why need to make customer segmentation.
Price strategy affected the attitude toward product value also the strategies
for evaluating the impact of corporate branding. The way to show the price
was a special strategy in business and affected on consumers’ evaluation of
purchase progress (Nusair, 2010). Danes & Lindsey-Mullikin (2012) said
that price was the best embodiment of product technology and technical
value. Consumers’ price sensitivity was an important reason for purchase
behavior and directly affected the judgment of the customer on the nature
of the commodity. Traders often developed appropriate price by differ-
ent performance or characteristics of commodity and used to highlight the
business image.

Assumption 3: Place is the factor that influence Thai rice business

strategy

Place represented the path that transferred the product to clients in-
cluding sales agencies, agents, distributors and retail stores. The main task
of place was to link an existing supply with an existing demand (Berger,
2016). Place was a vital part for corporate strategy. The level of manage-
ment and power of control on channel had a crucial force for market share
of product (Murshid & Mohaidin, 2016). Place was a vital part for corpo-
rate strategy which directly affect the market size can be occupied, the cost
structure of goods, customer satisfaction and product sales (Sarkar & Pa-
reek, 2013). Channel strategy assumed the main business operations risks,
from the operation of resources, common development with partners, the
realization of business goals, the occupation of market share (Singh, 2011).
The level of management and power of control on channel had a crucial force
for market share of product (Mohseni & Zurina, 2016). Channel strategy
helped enterprises to expand market share and diversification of channel
innovation was a powerful means for market occupation (Manasan, 2011).

Assumption 4: Promotion is the factor that influence Thai rice busi-

ness strategy

The aim of promotion was not to improve product awareness but

advance the customers acceptance (Sarkar and Pareek 2013). Strategy for-

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mulation should be based on the external environment and market con-

straints (Singh and Bhowal, 2011). Promotion served for conveying infor-
mation of product to consumers and persuaded or attracted consumption
in order to achieve the purpose of expanding sales (Norizan & Siti, 2015).
Promotion took a particularly effective for impulsive action, defined as a
selling technique or a special communication which can build the custom-
er’s brand awareness (Khan, 2014). Goi (2011) considered the promotion
not only described as the market activity but also emphasize the relation-
ship between consumers and products. Anyone who wanted to create a
promotion for the product had to concentrate on motivating of the target
market and thinking about what type of offer would motivate to the target
(Susan, 2009). Promotion mix referred to the enterprise make an appropri-
ate choice and cooperation about advertising, sales promotion, publicity
and other promotional methods (Haughton, 2015).

Conceptual Framework

Assumption
Assumption 1: Product is the factor that influence Thai rice business
strategy

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Assumption 2: Price is the factor that influence Thai rice business strategy

Assumption 3: Place is the factor that influence Thai rice business strategy

Assumption 4: Promotion is the factor that influence Thai rice business

strategy

Methodology

The study selected qualitative method to explore because there

were small key person to analyze and no available contents for reference
before. Research carried out by structured interview which was a direct,
personal communication between investigator and the respondents.

Interview questions around the concept and function of 4Ps, the

formulation of specific strategies, the impact or importance of different
factors on market strategy and Thai rice business development. Before
the official interview, obtained the basic information of enterprises, such
as address, scale, business scope from websites and contact with them by
email or phone number. Interviewee nominated by companies after com-
municated with the manager in Human Resources Department about the
criteria of the respondents. The official interview took place in face-to-
face format, with this way can eliminate the group pressure in process of
interview, the interviewer also can provide more information on their own
feelings, comprehension and description. All interviewers need to know
enough about company information and market conditions so that could
provide the useful response for Thai rice business. In order to ensure the
accuracy of the results and avoided the troubles for companies, number of
interviewers depended on internal assignments and scale of enterprises,
the SME chose one person and the large business for two to communicate.

Specific Process of research

1.Numbers of the Thai rice Business in Xi’an

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There were six well-known grain and oil enterprises engaged

in Thai rice business in Xi’an including foreign enterprises, state-
owned, large and medium private chains, all of them had a sufficient
capital for development and a complete industrial chain as well as a
mass of subsidiaries (National Enterprise Credit Information, 2015).

Table 1 for companies information

Number Name of Company Information of Company

1 China Oil and Food In 1949

Import and Export
The largest stated-owned en-
Corporation（COFCO）
terprise in grain and oil food
import and export trade around
China, one of the top 500 enter-
prises in the world.
2 Xi’an MaiXiang Company. In 1992

Chain enterprises with a great

reputation in Xi’an and special-
izes in grain & oil production
and sales.
3 Xi’an Yatai Trading Co., Ltd. In 2002

Professional engaged in import

and export business.
4 Xi’an Golden Shell Trading In 2003
Company
A joint venture between China
and South Korea.

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5 Xi’an JinXin Development The year 2002 for branch in

Business Co., Ltd. Xi’an

The year 1997 for headquarter

An enterprise integrated with

production, processing, packag-
ing and sales.

6 Metro AG In 1964

Secondly in Europe, thirdly

in world and the world’s first
commercially available business
group, one of the world’ top
500.
Requirement of key interviewee

All interviewers required have following conditions:

(1) More than ten years of experience and realized the Thai rice
market situation

(2) In the upper management and professional in internal informa-

tion, such as sales behavior, strategic planning, financial status, etc.

(3) The person with the traits of conscientious, responsible, honest

and interested with interview.

3.Tools for research

Content collection both from recording and writing notes, the de-
tail information related to companies’ strategy and Thai rice samples were
shown in-kind shooting.
4.Question Design and Validity

The interview question used the content-related validity which re-

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ferred to verify the applicability of the test subject to the content or exam-
ine whether or not could get the proper conclusion(Myers & Major, 2017).
The assessment method applied the expert judgment that was evaluating
the test systematically by a qualified judge then put forward the improve-
ment suggestion (Elaine & Thomas, 2009). The adapted question in this
research derived from business references or previous studies. After com-
pleted the problem design, three academic experts who engaged in busi-
ness administration or trade development conducted an inspection on in-
terview issues and gave comments on the modification, then determine the
final interview questions.

Table 2 for question design

Factors Previous study Adapted ques-
tion
Product 1.Products as something that can be 1.What function did
offered to customers for attention, the “product” have
acquisition, consumption and satis- for seller and buyer?
fies some want or need for them.
2.How to improve
(Murshid, Mohaidin and Yen, 2016)
the product strategy?
2.Due to the social need, competition
3.What influence
environment, technological level and
did product strategy
standard performance, a company
have for business？
need to have consciousness of inno-
vation on the product.

(Pongpatipat, 2014).

3.A successful branding has been

become a fierce power in business
competition.
(Blankson & Kalafatis, 2014)

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Place 1.The place meant how a company 1.What function did

send the products or service to the the “place” play in
consumer.
business?
(Martensen &  Mouritsen, 2016) 2.How to improve
2.Different business had different
distribution channel, the market fac- an available place
tors, enterprise policy factors and the strategy？
economic benefits all would influ-
ence the distribution to choose. 3.What influence did
the place strategy
(Murshid, Mohaidin and Yen, 2016)
have for business？
3.A suitable channel can quickly pen-
etrate the product into the market.

(Ta, 2014)
1.Promotion was the bridge between 1.What role did the
Promotion products and customers, solving the promotion play for
problem about how to make custom-
ers access to the products. business?
2.How to make a
(Wood, 2012)
proper promotion
2.Strategy formulation should be strategy?
based on the external environment
and market constraints. 3.What influence
(Singh and Bhowal , 2011) did the promotion
3.The aim of promotion was not to strategy have for
improve product awareness but ad-
vance the customers acceptance. business?

(Sarkar and Pareek, 2013)

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Price 1.Price was the only element in the 1.How to define the
marketing mix that produced revenue function of “price”?
and salesman need to know how to
set a attractive price for public. 2.What price strat-
egy were often used
(Ruiliang, 2008)
2.The way to show the price was a in your company?
special strategy in business and af- 3.What influence did
fected on consumers’ evaluation of the price strategy
purchase progress.
have for business?
(Nusair, 2010)
3.Price strategy affected the
attitude toward product value
also the strategies for evaluating the
impact of corporate branding.

(Goi, 2011)

Overall ques- Which factor among

tion 4Ps was most im-
portant in making
marketing strategy?

Content collecting and analyzing

(1).The interview questions translated from English to Chinese

to facilitate the interviewers answer and asked three Chinese people who
knew well about English language to assess the contents consistency.

(2).Appointments with interviewees made by telephone or visited

the company personally.

(3).Formal interview with interviewees face to face and the time

less than 1 hour.

(4).Recording all interview details in Chinese based on saved voice

and manuscripts.

(5).Manual sorting and analysis. The information collected after

interview was diverse and complex, using this way can screen the sortable

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information from the background noise (Fink and Litwin, 2002). Marking
each of information points with different color to do the view screening
and summarize the information as new record.

(6).The well-prepared content translation from Chinese to English

and asked three Chinese people who knew well about English language to
assess the contents consistency.

(7).Feasibility comparative analysis as interviewee as investigation

unit and summed up the different idea on the four factors. Compared the
final conclusion with the previous literature review to do consistence test.

Result

The results of interview came from 6 people in 4 companies and

two companies declined the interview because they thought the interview
issue involved trade secrets.The result sum up as table 3.

Factor of View Number for agreement

Place Metro AG, MaiXiang Company, JinXin Company,

COFCO
Product Metro AG, MaiXiang Company, JinXin Company

promotion COFCO, MaiXiang Company

Price COFCO
From the table got the conclusion that place was the most influential factor
on strategy planning followed by product, promotion and price.

Place referred to the business organizations or individuals with all

ownership or assistance in the process of transferring the product from
producer to end users, “just like a bridge to connect the products with con-
sumers (interviewer from MaiXiang Company)”. The interviewers from
Metro AG and JinXin Company expressed a valid channel helped to re-

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duce the transportation risks and operating costs especially for imported
goods, and help enterprises from different angles into the market such as
online and offline market. All four companies considered the place strategy
with traits of timeliness and variety, so the strategies should be fully taken
into account the regional selection, population density, market changes,
product features and customer psychology. COFCO thought it was better
to adopt “multi-channel mode” to control the channels, which implicated
to simplify the purchase channels to reduce costs and spread sales chan-
nels to increase market influence. The main impact of marketing chan-
nels on business were efficiency improvement and value creation, “Only if
the customers touched with commodity.....desire to purchase (interviewer
from MaiXiang Company)”. On the other hand, four companies all thought
about channel strategy directly affected the formulation of other strategies,
such as price and product strategy. The huge transportation costs pushed
up the price of product, the corresponding price strategy would based on
the cost-oriented pricing method. The brand strategies used by companies
also different because of the unlike distribution channels, high-end brands
focused on business centers, mid-range on large and medium supermarkets
and niche brands sold in farmers market or small shops.

The interviewees from Jinxin and MaiXiang companies put

the idea that product was the basis of the transaction both vital for two
sides of trade, the seller received income and the buyer gained practical
value. “The connotation of product contained three parts, the image of
the company, the nature of business and the commodities passed to the
consumers”(interviewee from MaiXiang Company). Product strategy con-
sisted of two parts, product and service, the former represented the nature
of the business and created the profits for enterprise, the latter directly af-
fected customer satisfaction. Metro said about service attitude can enhance
the company’s external image and reputation, now service war shifted as
a formidable artifice in marketing competition. Due to the life cycle of
goods, how to establish the long term dependencies between customers
and product became a core question for business consideration. “Long-
term survival of enterprise need product innovation as a carrier .......ac-

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cording purchase behaviors and marketing changes”(interviewer from

MaiXiang Company). For instant, adding a new packaging model from
color and material to highlight the cultural and functional features of Thai
rice.

From analysis found that the promotion and price were two contro-
versy factors with different idea. Interviewers from Metro AG said promo-
tion transmitted the various information of commodity to buyers in order
to persuade the consumption and achieve the purpose of expanding sales.
Metro was renowned for high quality services to VIP clients and never
do public promotional activities for social group, so promotion strategy
was not the main strategy for Metro. JinXin Company believed promotion
strategy could strengthen social force of product and the plan based on
the nature of company, product price and financial budget. However, the
interviewer expressed promotion strategy was no widely use on Thai rice
business due to the cost and the scale of enterprise, because small and me-
dium sized enterprises limited on fund support, the income effect in Thai
rice propagation less than Chinese rice.

COFCO and MaiXiang companies had different views. MaiXiang

thought about promotion had less influence in the past, but at current so-
ciety, it was the most direct and effective means for close connection be-
tween customers and products, especially for imported products which had
short information in market. COFCO put the idea that promotion strategy
did not have obvious effects at initial stage of business working, once the
enterprise was in orbit, the circulation of commodity urgently need promo-
tion to guarantee. Promotion strategy played an effective role on long-term
survival of enterprises and both two companies mentioned the concept of
promotion innovation. Enterprises should follow the “technology trends”
and use mobile advertising (bus boards, electronic advertising), social me-
dia software (WeChat, blog), social activities (charity activities, commu-
nity activities or festivals), mass media (radio, television program titles),
and other emerging tools to promote product information widely to foster
the brand awareness of consumers.

Price strategy was the premise for normal profitability of a enter-

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prise which was the crucial factor for the long-term development of the
enterprise. All four enterprises believed price strategy decided by market-
ing position of product. Whereas, three companies expect COFCO thought
the price had negative affects on Thai rice business. The genuine Thai rice
belonged to high-end product with a stiff price and narrow market, but
domestic brands as their good quality and low price won the trust of peo-
ple day by day with the improvement of production technology in China.
Due to lack of customer acceptance caused by price and insecurity quality,
Thai rice did not have clear advantages compared with local rice. Limita-
tions of price led the strategy was difficult to break through so compa-
nies chose to use other strategies to make up the defects of price strategy.
However, COFCO did not agree with the idea but believed market
need different states of products. Price was the value of the goods and
price strategy was the internal plan which aimed to ensure the profit of
the enterprise. High end product represented the advanced position of en-
terprises and faced upscale markets or customers which was an excellent
opportunity for a profitable business. “The more unsettled of market , the
more stable the price was and never cut prices or dumping (interviewer)”,
what enterprise should do was how to make an intimate contact between
customers and products.

Discussion

Marketing strategy played an important role in business running

which was an integral part of the business management and operation pro-
cess (Muangkhot & Ussahawanitchakit, 2015). Marketing strategy meant
the company made an overall vision for a certain period on basis of com-
prehensive consideration both on external market opportunities and inter-
nal resources conditions so as to achieve the business objectives. 4Ps was
the basic component and vital link for marketing activities by which com-
pany could realize the target market controlment (Cole & Jayson, 2013).
There was no fixed pattern for marketing mix, different combinations of
factors would influence the final strategy and the implemented strategy
also need to improve in time according to market changes and internal re-
sources (Jessa, 2014). Four factors all played an important role in formula-
tion of market strategies but for different businesses, emphases and period.

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Market demand changes with the level of social life and corporate strategy
changes with market demand.The variability of the market required enter-
prises should take the concept of development and innovation for strategy
planning (Jackson& Ahuja, 2016).

Place strategy with great diversity which depended on the nature

of products, marketing changes, cooperation direction and sales location
(Bolar & Shaw, 2015). Different types of products corresponding to unlike
channels. For Thai rice, the main channel divided into two parts which
were company’s supply direction and business sales bridges. The specific
process included determining the suppliers and partners, accurate market
research, confirmation of sales location and establishing an effective chan-
nel connection. In general. Channels divided into direct channels (tradi-
tional marketing or primary channels) and indirect channels (new distri-
bution channels or more than two middlemen). Direct channel reduced
operating costs, transformation and sales risks but had a narrower market
influence. Indirect channels had higher operating costs and greater cooper-
ate risks but had more extensive in distribution, goods delivery, it helped
to expand the marketing influence of enterprise in some extent. Therefore,
enterprises usually combined two of kinds to reduce defects and speed up
the completion for entering market. At the same time, channel innovation
also an indispensable strategy in expanding the marketing share, such as
online sales mode and application business (Manasan, 2011).

Product innovation and service war shifted as a formidable artifice

in marketing competition. Life cycle decided the limited period in mar-
ket of product also proved the importance of innovation, so the company
should optimize and upgrade the product at any moment (Wong, 2012).
In product innovation, enterprise should take different plans on the basis
of comprehending the needs of customers, also in the study of existing
products in similar industry and the possible substitution. Thai rice in-
novation as expanded the particularity of product, highlight the cultural
expression, physical display and emphasis on corporate trademark as the
goal, starting from product creation, packaging upgrades and discrepant
performance exaggeration to establish the model (interviewer). Product
creation referred to brands and types renewal from ordinary Thai rice to

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Thai jasmine and sticky rice. Package upgrades meant to add cultural ele-
ments, abundant color decoration on package and produced diverse pack-
aging forms. Discrepant performance exaggeration expressed in highlight
the characteristics of Thai rice, such as cooking methods, nutritional value,
efficacy and so on.

Service had became a soft power for corporate brand commonly

used by firms for winning the trust of customers and establishing the pres-
tige of the enterprise (Haak & Weinhardt, 2014). Service was the invest-
ment for human capital and now service war had turned into tactic widely
used in market competition. Good service attitude could meet the superior-
ity on customer psychology that often let them ignore the lack of products
(interviewer). Purchase behavior not only based on the attractiveness of
goods, but also depended on shopping environment and corporate service
attitude. Therefore, service was also an important selling point for busi-
ness improvement.

Promotion used to send the commodity information to consumers

through various media or discount activities in order to establish the brand
image and expand the sales, especially for exotic and imported goods
(Bhadra, 2013). Promotion strategy helped to shorten the entry process
and encourage the first time consumption by consumer, then promoted the
re-consumption behavior to achieve the purpose of sales improvement.
The objective of promotion activities had its own limitations. Enterprises
selectively promoted the products according to target market, customer
groups combined with the financial budget. As for Thai rice, the well-cap-
italized enterprise believed promoting Thai rice was a reasonable way to
enter the upscale market, but SMEs considered there was unnecessary to
advertise Thai rice because the plan need invest huge capital and unknown
revenues as return.

Price was the embodiment of the commodity value also the direct
approach for business profit which usually developed by the costs of goods
and business position (Susan, 2009). Price was one of the reasons caused
Thai rice business dull of sale because of the high rice and uncertain qual-
ity. On the other hand, the low-cost pricing strategy from illegality firms

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and the blindly price-cutting act from followers created the negative price
war, which was a huge challenge to legitimate enterprises.Under such cir-
cumstances, some enterprises tried to arouse the vitality of the market with
price-cutting activities. Others thought that no matter how turbulent the
market structure, prices should be kept steady and never cut down or dump
in order to prove the value for product and brand so as to win customers’
trust. Opportunities and challenges always tended to coexist and if com-
pany discovered the new direction from the price strategy that will bring
about a massive prospects.

Conclusion

The study followed the objective which factor in 4Ps had influence
on marketing strategy of Thai rice business in Xi’an by describing the
establishment of Sino-Thai relations, the development of Thai rice trade
in Chinese market and the situation of Thai rice in Xi’an city. Analyzing
the reasons why Thai rice could enter to Chinese market and the causes
for negative development of Thai rice business in Xi’an. Using interview
technique on four companies to draw conclusions that four factors played
different roles in marketing strategy, but for Thai rice business, “place”
had best impact on strategy planning, because it can help companies re-
duce the time and risk for dominating the market and expanding market in-
fluence. Followed by “product” which was the main item in transaction,
on behalf of the nature and image of the enterprise. There showed the
different points on significance of “promotion” and “price” due to diverse
scales, main business scopes, business mission, target customers, financial
budget and capital. Meanwhile, due to market volatility, corporate strategy
also need constant innovation specifically in the product and promotion
strategy, because those were directly related to consumer groups. Enter-
prise should as customer psychology and social trends as refine start, tak-
ing into account the overall strength of inner resource to choose innovative
strategies for business development.

The study described the relationship and the situation about bilat-

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eral trade between China and Thailand then did the research about Thai
rice business in Xi’ an city, China. The academic researcher can use this
study to do the further research. Besides, this study talking about the mar-
keting strategies for Thai rice companies in Xi’an and getting the result
about which factor influence the marketing strategy development on Thai
rice business that had benefits both for the businessmen who engaged in
Thai rice business as well as anyone who interested in Thai rice business.

The paper and results still need to complete because of the restric-
tion in region and methodology. The study mainly focused on the Thai
rice market in Xi’an, all research situation and results just related to Xi’an.
On the other had, the interviewers of study were small group so could not
infer the whole market situation and the results may have some measure-
ment errors because the contents relied on the experience and ability of the
researchers.

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