{"Affiliation":[{"label":"Affiliation","value":"Forestry, Faculty of","attrs":{"lang":"en","ns":"http:\/\/vivoweb.org\/ontology\/core#departmentOrSchool","classmap":"vivo:EducationalProcess","property":"vivo:departmentOrSchool"},"iri":"http:\/\/vivoweb.org\/ontology\/core#departmentOrSchool","explain":"VIVO-ISF Ontology V1.6 Property; The department or school name within institution; Not intended to be an institution name."}],"AggregatedSourceRepository":[{"label":"AggregatedSourceRepository","value":"DSpace","attrs":{"lang":"en","ns":"http:\/\/www.europeana.eu\/schemas\/edm\/dataProvider","classmap":"ore:Aggregation","property":"edm:dataProvider"},"iri":"http:\/\/www.europeana.eu\/schemas\/edm\/dataProvider","explain":"A Europeana Data Model Property; The name or identifier of the organization who contributes data indirectly to an aggregation service (e.g. Europeana)"}],"Campus":[{"label":"Campus","value":"UBCV","attrs":{"lang":"en","ns":"https:\/\/open.library.ubc.ca\/terms#degreeCampus","classmap":"oc:ThesisDescription","property":"oc:degreeCampus"},"iri":"https:\/\/open.library.ubc.ca\/terms#degreeCampus","explain":"UBC Open Collections Metadata Components; Local Field; Identifies the name of the campus from which the graduate completed their degree."}],"Contributor":[{"label":"Contributor","value":"University of British Columbia. Sustainability Office","attrs":{"lang":"en","ns":"http:\/\/purl.org\/dc\/terms\/contributor","classmap":"dpla:SourceResource","property":"dcterms:contributor"},"iri":"http:\/\/purl.org\/dc\/terms\/contributor","explain":"A Dublin Core Terms Property; An entity responsible for making contributions to the resource.; Examples of a Contributor include a person, an organization, or a service."}],"Creator":[{"label":"Creator","value":"Ashari, Newsha","attrs":{"lang":"en","ns":"http:\/\/purl.org\/dc\/terms\/creator","classmap":"dpla:SourceResource","property":"dcterms:creator"},"iri":"http:\/\/purl.org\/dc\/terms\/creator","explain":"A Dublin Core Terms Property; An entity primarily responsible for making the resource.; Examples of a Contributor include a person, an organization, or a service."},{"label":"Creator","value":"Mak, Jamie","attrs":{"lang":"en","ns":"http:\/\/purl.org\/dc\/terms\/creator","classmap":"dpla:SourceResource","property":"dcterms:creator"},"iri":"http:\/\/purl.org\/dc\/terms\/creator","explain":"A Dublin Core Terms Property; An entity primarily responsible for making the resource.; Examples of a Contributor include a person, an organization, or a service."}],"DateAvailable":[{"label":"DateAvailable","value":"2014-11-26T21:04:06Z","attrs":{"lang":"en","ns":"http:\/\/purl.org\/dc\/terms\/issued","classmap":"edm:WebResource","property":"dcterms:issued"},"iri":"http:\/\/purl.org\/dc\/terms\/issued","explain":"A Dublin Core Terms Property; Date of formal issuance (e.g., publication) of the resource."}],"DateIssued":[{"label":"DateIssued","value":"2003-04-11","attrs":{"lang":"en","ns":"http:\/\/purl.org\/dc\/terms\/issued","classmap":"oc:SourceResource","property":"dcterms:issued"},"iri":"http:\/\/purl.org\/dc\/terms\/issued","explain":"A Dublin Core Terms Property; Date of formal issuance (e.g., publication) of the resource."}],"Description":[{"label":"Description","value":"This report is an investigation into the marketing strategies for small diameter Douglas-fir logs.\r\nThe Cariboo Forest Region in British Columbia is overcrowded with small diameter Douglas-fir\r\ntrees. This poses several environmental problems in the region, which includes the reduction in\r\nlarge diameter trees and mule deer populations, and an increased probability of serious forest\r\nfires. Through commercial thinning, there will be access to the small diameter trees. There are\r\nvast product opportunities to utilize the small diameter Douglas-fir logs. Due to the softwood\r\nlumber dispute and high logging costs, the highest and best use of the resources is value-added\r\nproducts. After analyzing the advantages and disadvantages of potential value-added products,\r\nsolid Douglas-fir RTA furniture has the best potential to enter the market and make a profit. The\r\ntarget markets for the furniture are retailers \u2013 aiming at middle to low class consumers. The\r\nproduct line included tables, chairs, entertainment centres, desks, bookcases, hutches and\r\ndressers; these products will be showcased and promoted at trade shows and in catalogues. Disclaimer: \u201cUBC SEEDS provides students with the opportunity to share the findings of their studies, as well as their opinions, conclusions and recommendations with the UBC community. The reader should bear in mind that this is a student project\/report and is not an official document of UBC. Furthermore readers should bear in mind that these reports may not reflect the current status of activities at UBC. We urge you to contact the research persons mentioned in a report or the SEEDS Coordinator about the current status of the subject matter of a project\/report.\u201d","attrs":{"lang":"en","ns":"http:\/\/purl.org\/dc\/terms\/description","classmap":"dpla:SourceResource","property":"dcterms:description"},"iri":"http:\/\/purl.org\/dc\/terms\/description","explain":"A Dublin Core Terms Property; An account of the resource.; Description may include but is not limited to: an abstract, a table of contents, a graphical representation, or a free-text account of the resource."}],"DigitalResourceOriginalRecord":[{"label":"DigitalResourceOriginalRecord","value":"https:\/\/circle.library.ubc.ca\/rest\/handle\/2429\/51209?expand=metadata","attrs":{"lang":"en","ns":"http:\/\/www.europeana.eu\/schemas\/edm\/aggregatedCHO","classmap":"ore:Aggregation","property":"edm:aggregatedCHO"},"iri":"http:\/\/www.europeana.eu\/schemas\/edm\/aggregatedCHO","explain":"A Europeana Data Model Property; The identifier of the source object, e.g. the Mona Lisa itself. This could be a full linked open date URI or an internal identifier"}],"FullText":[{"label":"FullText","value":"UBC Social Ecological Economic Development Studies (SEEDS) Student Report Marketing Strategy for Small Diameter Douglas-fir Newsha Ashari, Jamie Mak University of British Columbia WOOD 465 April 11, 2003 Disclaimer: \u201cUBC SEEDS provides students with the opportunity to share the findings of their studies, as well as their opinions, conclusions and recommendations with the UBC community. The reader should bear in mind that this is a student project\/report and is not an official document of UBC. Furthermore readers should bear in mind that these reports may not reflect the current status of activities at UBC. We urge you to contact the research persons mentioned in a report or the SEEDS Coordinator about the current status of the subject matter of a project\/report\u201d. Marketing Strategy for Small Diameter Douglas-fir submitted to Dr. Robert Kozak b y Newsha Ashari Jamie Mak W o o d 4 6 5 The University of British Columbia 11 April 20 0 3 ii Executive Summary \u201cMarketing Strategy for Small Diameter Douglas-fir\u201d by Newsha Ashari and Jamie Mak This report is an investigation into the marketing strategies for small diameter Douglas-fir logs. The Cariboo Forest Region in British Columbia is overcrowded with small diameter Douglas-fir trees. This poses several environmental problems in the region, which includes the reduction in large diameter trees and mule deer populations, and an increased probability of serious forest fires. Through commercial thinning, there will be access to the small diameter trees. There are vast product opportunities to utilize the small diameter Douglas-fir logs. Due to the softwood lumber dispute and high logging costs, the highest and best use of the resources is value-added products. After analyzing the advantages and disadvantages of potential value-added products, solid Douglas-fir RTA furniture has the best potential to enter the market and make a profit. The target markets for the furniture are retailers \u2013 aiming at middle to low class consumers. The product line included tables, chairs, entertainment centres, desks, bookcases, hutches and dressers; these products will be showcased and promoted at trade shows and in catalogues. iii Table of Contents EXECUTIVE SUMMARY .........................................................................................................................................................II TABLE OF CONTENTS ........................................................................................................................................................... III LIST OF FIGURES ..................................................................................................................................................................... V LIST OF TABLES ........................................................................................................................................................................ V 1.0 INTRODUCTION.........................................................................................................................................................1 2.0 PRODUCT OPPORTUNITIES .................................................................................................................................2 2.1 VALUE-ADDED PRODUCTS......................................................................................................................................... 2 2.1.1 Furniture.................................................................................................................................................................2 2.1.2 Cabinets ..................................................................................................................................................................3 2.1.3 Engineered Building Products............................................................................................................................3 2.1.4 Factory-build or Prefabricated Structures.......................................................................................................4 2.1.5 Millwork..................................................................................................................................................................4 2.2 TRADITIONAL PRODUCTS........................................................................................................................................... 5 2.2.1 Structural Roundwood..........................................................................................................................................5 2.2.2 Dimension and Nondimension Softwood Lumber............................................................................................6 2.2.3 Pulp Chips..............................................................................................................................................................7 2.3 RESIDUE PRODUCTS.................................................................................................................................................... 7 3.0 FURNITURE INDUSTRY..........................................................................................................................................8 4.0 READY-TO-ASSEMBLE FURNITURE..............................................................................................................10 4.1 MANUFACTURING..................................................................................................................................................... 10 4.2 MARKETING STRATEGY ........................................................................................................................................... 11 4.2.1 Target Markets ....................................................................................................................................................12 4.2.2 Marketing Mix.....................................................................................................................................................12 4.2.2.1 Product......................................................................................................................................................... 12 4.2.2.2 Place............................................................................................................................................................. 13 iv 4.2.2.3 Promotion .................................................................................................................................................... 14 4.2.2.4 Price............................................................................................................................................................. 15 5.0 CONCLUSION.............................................................................................................................................................17 REFERENCES .............................................................................................................................................................................18 APPENDICES v List of Figures Figure 1. Canadian Millwork Products\u2019 Trade Balance.........................................................................4 Figure 2. Canadian Softwood Trade Balance .......................................................................................6 Figure 3. Break-down of Furniture Production .....................................................................................9 Figure 4. Panel Made from Glued-up Lamells ....................................................................................11 Figure 5. Distribution Channels Used in 1999 ....................................................................................14 List of Tables Table 1. BC Wood Furniture Exports from 1998-2002 .........................................................................8 Table 2. Percentage of Production and Average Prices of Residential and Office RTA Furniture...........13 11.0 Introduction Over the past century, interior British Columbia\u2019s forests have changed. A vast area of forests has changed significantly for the worse. Changes in the land use and settlement patterns have reduced the frequency of forest fires, which is a natural occurrence for forest regeneration. The shortage of forest fires has produced forests with overcrowded stands of small diameter trees and lack of larger trees. The overcrowding of trees is potential for serious fire hazards. These fires can spread very fast and have devastating consequences to our landscapes and watersheds (LeVan-Green and Livingston, 2001). The existence of small diameter trees creates moisture limited forest; therefore, many small trees compete for water and food with large trees, thus reducing the vigour of large trees (Kozak, 2003). The region under the microscope in British Columbia is the Cariboo Forest Region, which is saturated with small diameter Douglas-fir. In this region, mule deer winter ranges cover more than a quarter of a billion hectares. The mule deer are dependent on the large Douglas-fir trees for food and cover. Thus, managers have to make sure that there is enough supply of large trees for the deer. In order to do so, management plans, such as commercial thinning, will provide enhanced mule deer habitat in the future access to small diameter timber. In addition, the condition of forests will be healthier with larger trees growing and reduced forest fires. There is a vast range of product opportunities for small diameter Douglas-fir. These trees are approximately 60 years old. The wood possesses small tight knots, and tight grain structure, i.e. a large number of rings per inch, making the wood highly dense and strong, idle for high quality products. By exploring these product opportunities, the raw material will be best utilized. 22.0 Product Opportunities A hierarchy of products for small diameter raw material in general includes value-added, traditional and residue products. These products will be explored by discussing their advantages and disadvantages in the ever changing forest industry. 2.1 Value-added Products Value-added products range from furniture, cabinets, engineered building products, factory-build or prefabricated structures, and millwork. Refer to Appendix A for a list of all the value-added companies in BC currently registered with BC Wood (www.bcwood.com\/). 2.1.1 Furniture Products considered to be furniture are household, office, knock-down or ready-to-assemble (RTA), outdoor and shelving. Positive sign of producing furniture is that the market is growing. Also, an advantage of making furniture out of the small diameter logs is the high quality of the wood. Structurally, the wood is high in strength and sound. However, the wood retrieved from the log is low. The widths of wood only range from two to five inches making it difficult to produce a product, yet possible. Whole log furniture is another option to consider. Waste would be minimal since utilization of the log is near 100%. However, this product may be difficult to attract customers because of its aesthetics and bulkiness. 32.1.2 Cabinets Cabinet producers are those that manufacture the following: kitchen cabinets, bath vanities, home entertainment and case goods. Manufacturing cabinets out of solid Douglas-fir has a possible potential market since the majority of cabinet manufacturers make their cabinets out of particleboard and MDF with laminated veneer. However, kitchen cabinet components made entirely out of solid wood will be more expensive than composites. Therefore competing with these low cost manufacturers would be an issue to enter into this market. There are still customers that will pay extra money for a higher quality product. 2.1.3 Engineered Building Products The production and consumption of engineered wood products have increased over the past decades. In this time these products have experienced rapid growth and gained acceptance in the marketplace. Such products include floor and roof trusses, glulam, laminated veneer lumber, and I-beam\/joists. According to ECE\/FAO Products Annual Markets Reviews, 2000-2001, wooden I-beams have gained a significant acceptance in North American residential construction. North American glulam production increased by 14%, where as laminated veneer lumber declined by 6% in 2000. Market forecast in the next five years seems to be promising due to the housing boom (See Appendix B). Douglas-fir engineering wood products enable the ability to control the strength of the overall product. However, the fact that these logs are very small in diameter might not be feasible to make such products. Moreover, there are many existing manufacturers that produce engineering wood products; therefore, competition would be very high in this industry \u2013 making it difficult to penetrate the market. 42.1.4 Factory-build or Prefabricated Structures Log homes, timber-framed structures, and prefabricated home structures are considered in this category. This is a growing market with over a hundred companies in BC alone. Due to the small diameter of the logs, this may not be the best option for the use of the raw material. Majority of log homes are made of large diameter logs. Another problem would be competing with already existing companies that are making log homes and timber structures out of larger diameter logs. 2.1.5 Millwork Millwork includes products such as mouldings, doors, windows, and staircases to name a few. Demand for these products is growing due to the housing boom in the U.S. Figure 1 below shows increase Canadian exports of these products over the last five years. Home builders and manufactured home companies would be possible target markets. Figure 1. Canadian Millwork Products\u2019 Trade Balance Source: Statistics Canada 5The quality of the raw material makes it an excellent choice for millwork products. But due to the small diameter Douglas-fir logs, knots may affect the finishing quality of these products. 2.2 Traditional Products On average, the top log diameter is 10.5 cm (15 cm at breast height). These could then be peeled to be used as poles or posts. Conversely, logs may also be exported. Other alternatives are structural and nonstructural lumber and pulp chips. World trade of secondary processed wood (value-added) products is expanding at a faster rate than trade in primary wood products. More over, the value in wooden furniture ($29 billion) exceeds that of sawnwood ($25 billion) and wood-based panels ($16 billion) according to ECE\/FAO Products Annual Markets Reviews, 2000-2001. 2.2.1 Structural Roundwood Advantages of small diameter logs that are 4-6 inch DBH are that they are less susceptible to warp, dimensionally stable, its natural taper makes it suitable for use in column applications, and the process costs are low. Since these logs are small in diameter, utilizing the required size for column and beams for heavy duty application is not very feasible but could be possible for light duty applications. However, they are more susceptible to splitting and cracking when used in highway structures. Also, compared to steel applications, roundwood is less durable and more difficult to install. Therefore, in order for roundwood to compete with steel in this market, costs must be lower (Paun and Jackson, 2000). 62.2.2 Dimension and Nondimension Softwood Lumber To process small diameter logs, only high-speed sawmills would equal or exceed harvest and delivery costs. Any other conventional sawmill or studmill would result in a loss (Wagner et al., 2000). According to a grade recover study by E.C. Lowell and D.W Green, grade recover as Select Structural for Douglas-fir in the Pacific Northwest was at 47%. This indicated that volume and grade recoveries for lumber sawn from small diameter trees were comparable to larger trees. In addition, machine grading appeared to offer an economic benefit to lumber sawn from smaller trees (Funck and Brunner, 2000). Small diameter D-fir logs can be used for non-dimensional lumber to make window blanks. The utilized lumber has to be cut into three pieces and then glued together to make very stable products. Because of the ongoing softwood lumber dispute between Canada and the U.S., the market has been on a decline as shown in Figure 2 below. Canadian softwood lumber exports have decreased from $12.8 billion (1999) to $10.4 billion (2002) from Statistics Canada. Figure 2. Canadian Softwood Trade Balance Source: Statistics Canada 72.2.3 Pulp Chips According to a report by Susan LeVan-Green and Jean Livingston, pulp chips will remain a viable use, but the cost of producing and transporting then to distant pulp mills makes it uneconomical. There have been some recent studies that shows small diameter Douglas-fir with kraft pulping procedures have behaved similarly to kraft pulp made from traditional sawmill residue chips. However, there may be problems if certain species are mixed with traditional sawmill residues. 2.3 Residue Products As a low-value product, biomass energy, pulp, and composting are possible alternatives for small diameter logs. The current utilization of the Douglas-fir logs is for energy uses. However, the costs of processing the logs in the forest exceed the profit of wood fuel. Harvesting of the logs and shipping to the mill costs $200 per cubic meter alone. Pulp quality of Douglas-fir to make paper is rather low, i.e. brown paper bags. Using wood for residue uses in its simplest form is often the least costly approach, but may not be the highest and best use of the resources. 83.0 Furniture Industry An overview of the Canadian furniture industry over the last decade is provided by Strategis, Canada\u2019s Business and Consumer Website. In 2001, Canada exported $7.3 billion worth of furniture, 97% of that to the U.S., Canada\u2019s single largest export market. Between 1992 and 2001, exports of Canadian furniture increased by 383% or equivalently grew at a compound average annual growth of 17.05%. Currently, Canada is the second largest exporter of furniture in the world. A concern is the growing furniture market in China. Ontario and Quebec combined account for about 80% of the industry. BC\u2019s production and market for furniture is relatively small compared to the two provinces. In BC alone, the largest market for wood furniture for offices and residential is the U.S. The table below shows the distribution of BC wood furniture exports to the top ten countries around the world over the past five years. Table 1. BC Wood Furniture Exports from 1998-2002 Source: Statistics Canada 1998 1999 2000 2001 2002 U.S. 121,933,381 172,553,847 204,979,18 6 210,706,010 223,790,926 Japan 8,685,321 9,726,246 6,796,662 4,188,060 5,389,849 China 353,886 90,384 304,158 215,871 472,307 Bermuda -- -- 39,985 107,020 353,147 Taiwan 157,499 351,321 132,244 105,556 313,345 Hong Kong 107,672 528,103 379,580 605,51 0 274,383 Malaysia 141,174 -- 94 -- 180,514 U.K. 379,344 576,011 577,505 214,885 172,887 South Korea 17,645 20,171 247,521 113,804 167,942 Singapore 156,027 16,028 27,367 32,693 139,683 SUB - TOTAL 131,931,949 183,862,111 213,484,302 216,289,409 231,254 ,983 OTHERS 961,774 1,476,005 595,191 923,265 626,313 TOTAL (ALL COUNTRIES) 132,893,723 185,338,116 214,079,493 217,212,674 231,881,296 Values in Canadian dollars Source of data: Statistics Canada 9There is certainly a huge opportunity for a new company to get into an ever growing industry, especially those located in BC. Companies should take advantage of the raw material available in the province and make BC a larger furniture manufacturer. The term furniture is somewhat broad. When entering into this industry, it will be important to know what type of furniture to produce. Furniture can be further broken down to household and office furniture, wood kitchen cabinets and counter tops, and other manufactured products, such as blinds and shades. Figure 3 below shows how Canadian furniture production is broken down. Canadian Furniture Production3 8 %4 3 %1 6 %3 %H o useholdO f f iceKitchen cabinetsOther Figure 3. Break -down of Furniture Production RTA furniture has been growing in excess of 5% annually since 1977 with forecasted growth of more than 10% annually over the next couple of years (Vlosky et al., 2001). The RTA industry in North America is estimated to be in excess of three billion in retail sales. In only a few short years, the RTA segment has gone from second-class citizen to being looked up to as the fastest growing segment of the furniture industry in North America, representing upwards of 20% of total wood furniture sales according to Ameriwood Industries Inc. 104.0 Ready-to-Assemble Furniture Based on the vast market and product opportunities that have been explored for small diameter Douglas-fir, a recommended and viable business opportunity for UBC \/ Alex Fraser Research Forest is to manufacture and market RTA furniture. Of the RTA furniture manufacturers located in Canada, none of which are currently producing solid Douglas-fir RTA furniture (See Appendix C). In British Columbia, only Canwood Furniture Inc. is producing solid wood RTA, which is made entirely out of solid Lodgepole pine. Also, there is not a single company, in almost all of North America that controls its harvesting to the manufacturing of a value-added product such as furniture. In Europe for instance, this is not a unique type of operation; there is no reason why such an operation can occur in North America. This allows a company to be in control throughout its entire operation. Because of the excellent wood properties of these small diameter logs, solid Douglas-fir RTA furniture would be high in quality and aesthetically pleasing. In addition, this opportunity will help Canada move away from a commodity producer to a more innovative, value-added producer. This will hopefully make Canada more competitive in the global market, especially in the forest industry (Porter and Martin, 2000). 4.1 Manufacturing The manufacturing plant would be based in Williams Lake where it will be close to the raw materials. The small diameter logs are to be debarked and processed. The strips of wood would then be dried to a moisture content of 8-9%, ensuring that all furniture is resistant to cracking, checking, and warping. From experiments recently performed, strips of only two to four inches wide were utilized from the log. The widths of these strips or lamells are ideal because a group 11of lamells are then glued-up together (as shown in Figure 4) in a radio frequency laminator to produce main furniture components, such as gables or table tops. Figure 4. Panel Made from Glued-up Lamells Since the diameter of the logs is relatively small, the production of lamells is ideal for maximizing the lumber recover factor of a log. All waste can be converted into biomass for energy to power the facility. A drilling or CNC machine would then produce the holes needed for dowels and other fasteners to accommodate the European 32mm system. This will make every piece of furniture easy to assemble for customers. Lastly, all furniture is sent through a lacquering line where a finish is applied for a durable surface and an aesthetically pleasing piece of furniture. 4.2 Marketing Strategy To determine how viable this business opportunity will be, the products\u2019 target markets, trends, and the marketing mix, which includes the product, place, promotion, and price (four P\u2019s of Marketing), are to be investigated. 124.2.1 Target Markets There is a small niche for solid RTA furniture. So, who will buy these products? Furniture will be solely targeted at retailers, which includes small \u201cmom\u2019s and pop\u2019s\u201d stores and large department stores in large urban populations. Middle to low income consumers are expected to purchase these products because they are affordable. In Canada purchasing decisions regarding furniture are usually made by women who tend to be sensitive to price and value; discriminating in their tastes; and often individualistic in their choice of styles (Patlan and Rahman, 1999). 4.2.2 Marketing Mix To provide the customers with their needs and wants, there are controllable variables. First variable is product. Second is place which deals with the distribution of the product, i.e. finding distribution channels. Next is promotion of the product followed by pricing. 4.2.2.1 Product The products produced offer \u201cthe total product\u201d. High quality is guaranteed when this Douglas-fir RTA furniture is purchased, since it will be checked by ISO certification. To set this company apart from competitors will be the design, quality, and range of furniture. The ranges of furniture will suite the current lifestyles and values. Included in the product line are unique designs of tables, chairs, entertainment centres, desks, bookcases, hutches and dressers. An example of a product list is shown in the table below. 13 Table 2. Percentage of Production and Average Prices of Residential and Office RTA Furniture Source: http:\/\/www.rnr.lsu.edu\/lfpl\/publication\/papers\/wp49.pdf 4.2.2.2 Place The furniture will be sold to intermediaries. Intensity of distribution will be partly exclusive and intensive. Channel of ownership is vertically integrated, where the company controls all operations from the forest to final product. The intermediaries will be merchants, who will take title of the products to be sold at wholesalers and retailers. Local retailers in the Cariboo region as will make up the majority of the market, where as larger furniture retailers, such The Brick Warehouse Corporation or Hudson\u2019s Bay Company, will make up 20%. Market for the furniture will also include exports to stores in the U.S. Figure 5 below is a study done by Louisiana State University in 2001 showing the distribution channel of RTA furniture used in 1999. 14 Figure 5. Distribution Channels Used in 1999 Source: http:\/\/www.rnr.lsu.edu\/lfpl\/publication\/papers\/wp49.pdf All furniture components are nicely packaged in a box, which saves a lot of space, especially during shipping. As for modes of transport, products are delivered by company trucks for close proximity destinations. Rail is used for further destinations, such as retailers located in Eastern Canada or the United States. 4.2.2.3 Promotion The company will have a showroom to showcase their entire product line. Products will also be exhibited at trade shows, such as the large one at High Point, North Carolina. Approximately 51% of retailers\u2019 yearly orders are placed during the six weeks after furniture market showings (Michael and Smith, 1996). It is known that retailers and customers are reluctant to make any purchases without being able to actually see the 15physical product (Bennington 1985). Also, catalogues and the Internet are other methods to promote the furniture. A website of the manufacturer should be created to showcase the products and significance of the mule deer problem, as well as the community service it\u2019s providing. The mule deer itself should be used to promote the products. For example, with every furniture set sold, a mule deer certificate would be issued stating the Cariboo Forest Region that is benefited. As for finding potential buyers, i.e. retailers, another effective promotional solution other than trade shows is personal sales. Therefore, there would be a marketing department that would take orders via telephone and build relationships with potential customers. 4.2.2.4 Price There would be a mark-up in retailer prices of approximately 40-50% on each of the furniture. Wholesale prices will cover the cost needed to manufacture each product. Costs that need to be considered are fixed costs, which includes the cost of land, machines, kilns, etc. There are also variable costs to be to take into account. These costs would include utility and labour costs. Approximately 5% of all furniture manufactured will be defective either because of machining errors or quality of the wood. Instead of throwing the parts out, all insignificant defective parts are to be gathered together to produce a set product and then sold to the staff members or the community for half of the wholesale price. Refer back to Table 2 in Section 4.2.1.1 for average prices ($US) of residential and office RTA furniture. 16Canada and U.S.A. are currently in slight recessions. Because of unstable markets and fears of war between nations, people tend hold on to their money and are reluctant to spend. With Douglas-fir RTA furniture, it is high in quality and aesthetically pleasing and also affordable for common consumers. 175.0 Conclusion By commercial thinning the overcrowded Cariboo Forest Region of small diameter Douglas-fir tree, there will be access to a supply of raw material for many years. A profitable business can be started with this resource supply. If the proposed marketing strategy for solid Douglas-fir RTA furniture is to be implemented then the UBC\/Alex Fraser Research Forest can \u201cmake something out of nothing.\u201d Not only would there be a profitable business in place, but a forest region with large diameter trees and a healthy population of mule deer. Although there are many product opportunities from small diameter Douglas-fir, each product must be examined to determine if there is a market demand for it and if the market can be penetrated. Once products have been singled-out, target markets, marketing mixed and trends are to be investigated. The niche target markets for high-end solid Douglas-fir RTA furniture are retailers for middle to low class consumers. The product line includes tables, chairs, entertainment centres, desks, bookcases, hutches and dressers. These high quality products are affordable \u2013 marked up to cover manufacturing costs. To promote the product line, these products are showcased at trade shows and advertised in catalogues. All products are delivered on-time and customer satisfaction is quarantined. In conclusion, even though this report proposes a business manufacturing solid Douglas-fir RTA furniture, by no means is it the only viable business to venture. However, out of the products investigated in this report, RTA furniture shows the best potential to make a profitable business and overcome the problems caused from overcrowding of small diameter trees. 18References About Ameriwood Industries, Inc. Ameriwood Industries, Inc. April 2003 . BC Wood Inquiry Database. BC Wood, April 2003 Bennington, R.R. 1985. Furniture Marketing: From product development to distribution. Fairchild Publications, New York. Cooper, R. and C. Adair. Chapter 11: Secondary Processed Wood Products Markets, Including Engineered Wood Products. ECE\/FAO Forest Products Annual Market Review, 2001: 123-132 Funck, F.W. and C.C. Brunner. 2000. Small-diameter Trees in the Pacific Northwest: resource for dimension lumber or cut stock? Forest Prod. Soc., Madison, WI. pp.15-20 Kozak, Robert. Term Assignment Context. Wood 465 Notes, 2003 Levan-Green, Susan L. and Jean Livingston. Exploring the Uses for Small-Diameter Trees. Forest Product Journal, Vol.51, No. 9: 10-21 Michael, J.H. and P.M. Smith. 1996. An Analysis of Home Furnishings Retailers\u2019 Use of Furniture Markets. Wood and Fiber Sci. 28(2):168-177 Patlan, Rita and Rani Rahman. Canada: Household Furniture. U.S. Department of Commerce-National Trade Data Bank, November 2000 Paun, D. and G. Jackson. 2000. Potential for Expanding Small-diameter Timber Markets: assessing use of wood posts in highway applications. USDA Forest Serv., Forest Prod. Lab., Madison, WI. 28 pp. Porter, M. and R. Martin. Canadian Competitiveness: Nine Years after the Crossroads. January 2000 19Survey Outlines Key Habits of Furniture Shopper Group. Global Wood Trade Network, April 2003 The Canadian Furniture Industry - An Overview. Strategis Canada, April 2003 Vlosky, Richard P., Kofi Poku, and Stefan Wille. A Market Analysis of the Ready-To-Assemble Furniture Industry. Louisiana State University, July 2001: 1-12 Wagner, F.G., C.E. Fiedler, and C.E. Keegan. 2000. Processing Value of Small-diameter Sawtimber at Conventional and High-speed Sawmills in the Western United States: a Comparison. Forest Prod. Soc., Madison, WI. pp. 5-10 20Appendix A Number of BC Companies in the following areas: Cabinet # of Companies Engineered Building Products # of Companies Bath Vanities 38 Floor Trusses 22 Case Goods 17 Glulam 25 Commercial\/Fixtures 21 I-Beam\/Joists 25 Home Entertainment 28 Other 0 Kitchen Cabinets 42 Plywood 17 Other Residential 23 Roof Trusses 25 Parts\/Components 22 Structural Composite Lumber 15 RTA\/Knockdown 10 Millwork and Finished Products Furniture and Fixtures Architectural Millwork 53 Case Work 6 Exterior Doors 46 Contract Fixtures 33 Flooring 82 Ergonomic 7 Flush Doors 23 Frames\/Parts 24 Garage Doors 19 Gazebos 26 Interior Doors 46 Hospitality 2 Mouldings\/Trim 99 Household 70 Paneling 77 Knock Down\/Ready-To-Assemble 27 Staircases 33 Office 40 Stile & Rail Doors 38 Other 1 Turnings 17 Outdoor\/Garden 49 Wood Windows 35 Saunas\/Hot Tub Finishings 0 Shelving 33 Factory-build or Pre-Fabricated Structures Log Homes\/buildings - Handcrafted 52 Log Homes\/buildings - Machined 34 Other 1 Panellized Homes\/Structures 28 Pre-Cut Garden Sheds 28 Pre-Cut Home Packages 31 Prefabricated Home Structures 1 Timber Frame Structures 48 Source: www.bcwood.com 21Appendix B ANNUAL HOUSING STARTS (1978-2002) Year Single-Family Multifamily Total 2002 (r) 1,358,900 346,900 1,705,800 2001 1,273,300 329,400 1,602,700 2000 1,230,900 337,800 1,568,700 1999 1,302,500 338,700 1,641,200 1998 1,271,400 345,600 1,617,000 1997 1,133,600 340,400 1,474,000 1996 1,161,000 315,900 1 , 4 76,900 1995 1,076,300 277,900 1,354,200 1994 1,198,400 258,600 1,457,000 1993 1,125,600 162,100 1,287,700 1992 1,030,100 169,500 1,199,600 1991 840,400 173,600 1,014,000 1990 894,900 297,700 1,192,600 1989 1,003,400 372,700 1,376,100 1988 1,081,400 406,600 1,488,000 1987 1,146,300 474,300 1,620,600 1986 1,179,500 625,900 1,805,400 1985 1,072,300 669,400 1,741,700 1984 1,084,100 665,300 1,749,400 1983 1,067,500 635,500 1,703,000 1982 662,600 399,600 1,062,200 1981 705,300 378,800 1,084,100 19 80 852,100 440,100 1,292,200 1979 1,194,100 550,900 1,745,000 1978 1,433,400 586,900 2,020,300 Source: U.S. Census Bureau Source: http:\/\/www.nahb.org\/generic.aspx?sectionID=130&genericContentID=554 22 Appendix C Different RTA Raw Material Breakdown: Source: www.rnr.lsu.edu\/lfpl\/publication\/papers\/wp49.pdf 23Appendix D Solid Douglas-Fir RTA Product Line Table Desk Entertainment Centre Bookcase 24Dresser Note: All drawings belong to Canwood Furniture Inc. 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