Marketing in the present context is understood to mean the entrepreneurial activities and procedures which, directed towards the needs of the market and of the consumer, enable planned production. In the present instance these marketing activities include the introduction and promotion of coconut palm wood as a construction material, and of the products processed from it. Coconut palm wood is still not a commonly traded wood. The opportunities for the application and use of coconut wood for a wide range of products (in this connection see Chapter 2) is still not known to the required extent in many markets to secure an adequate demand for this construction material. The promotion of a “novel” construction material in a comparatively conservative market such as the one for wood and for the products manufactured from it (furniture, doors, parquet etc.) is generally considered to be a difficult and tedious project.
Basically the utilization of coconut palm wood has numerous positive effects and these must be presented, especially in the potential outlet markets:
- Through the utilization of excessively old and unproductive palms, replacement of old plantations and additional sources of income and jobs in the rural area.
- The opportunity to relieve the pressure on tropical rainforests, mainly through wood for the local market.
- Reducing diseases and catastrophes in the plantations (e.g. as a result of the rhinoceros beetle or lethal yellowing) by the purposeful use of old palms.
Being a plantation wood and agricultural by-product, the use of coconut wood from plantations that are too old can be accepted under ecological aspects and must be seen apart from the context of tropical rainforest utilization. This must be made clear to the end-users in the industrialized countries.
Pre-conditions for use and marketing
- An adequate and permanent availability of raw material for continuously supplying the outlet markets.
- The manufacture from coconut palm wood of products whose manufacture and use does not pose any problems. Not ail wood products can be manufactured from coconut wood (knowledge of the properties and limitations of the construction material).
- Fulfilment of the quality requirements of the different markets. The manufacture and marketing of products of inadequate quality should be avoided. This brings the construction material into disrepute. It is better to manufacture pro ducts with a smaller added value (e.g. parquet instead of furniture) until sufficient know-how is available and/or the correct techniques can be employed.
A fundamental distinction must be made between the local markets in the countries of origin and the export markets, since different demands are imposed on manufacture and marketing.
Local markets
In certain cases the use of coconut wood can replace tropical wood from rain forests. The foremost of these are use as structural material in building, for telephone poles and as fuel wood (waste, slabs, and low density material). Construction wood with a low level of processing can currently be made available more cheaply than tropical wood from rain forests, especially in the rural area (50 – 60 % of the price of tropical wood).
None of the products mentioned above requires the use of costly technology for its manufacture.
Export markets
The above-mentioned pre-conditions for use and marketing must be ensured, especially when supplying export markets. Obviously the highest possible amount of added value must be aimed at, taking into account the available know-how and technology. In the industrialized countries the palmtree is the symbol for the exotic, sun and vacation. This should be exploited in marketing activities. There are two obvious opportunities for marketing products made from coconut palm wood:
Cheap products in large quantities and to some extent a low level of processing, such as sawn timber, pallets, wallpanelling, parquet, packaging material, scantlings timber for doors).
Products with a special design and of high quality, such as furniture, finished parquet, accessories, that are offered in the higher (up-market) price sector.
The characteristics of coconut wood that may have impacts on the sales opportunities must be taken into consideration in both product routes. In the first case these include high manufacturing costs that result mainly from higher tooling costs and low machine capacities in the machining and which may therefore prevent the provision of economically-priced products. In the second case special account must be taken of the appearance of coconut wood, since it looks very dark when used in large surface areas, i.e. the design must take special account of this effect, e.g. by the use of differently coloured materials (a combination of materials and colours, e.g. through fabrics or differently coloured woods).
Photo 58: Table-top made of various coloured woods incl. coconut palm wood
Tables and Photo by Rapi Furniture, Indonesia
Moreover it must be remembered that certain geometries (e.g. highly prominent profile shapes) cannot be manufactured or are achievable only with a loss of quality. Good design, adapted to the construction material, is therefore an essential marketing factor for products made from coconut palm wood. A professional, strategic approach is indispensable in both cases, A joint venture with a company from a potential sales region would be advantageous for a business that would like to enter into the utilization and marketing of coconut palm wood. As a result of a joint venture of this kind the entrepreneur's technical pre-conditions in situ as well as the market opportunities can be improved by a knowledge of the existing markets and administration structures/instruments.
Companies from Mexico, Jamaica and other tropical countries have attempted in the past to export products made from coconut wood into industrialized countries. These attempts failed because they were not able to fulfil the requirements of the outlet markets through bad product quality and sorting of the wood, pest attack on the wood and lack of knowledge of the markets. The outlet markets and the characteristics of coconut palm wood dictate the framework conditions for the successful utilization of this raw and construction material.
