THE SUCCESS FACTORS OF LOCAL PRODUCT GROUP IN SONGKHLA

1WANDEE NUANSOI, 2AMARIN SUNTINIYOMPUKDEE, 3PATCHARIN BUNNOON

E-mail: [email protected], [email protected], [email protected]

Abstract - This study aims to analyze the success factors of local product group in Songkhla Thailand. This research uses qualitative research methods by using in-depth interviews and focus group of 10 local product groups. The study found that 1) the purpose of the group is clear and all members have a common goal, 2) group management, members get sharing of benefits and the development of knowledge, 3) the leader have experience in business management, 4) group members have an understanding of the operations of the group and 5) the communication within the group occur regularly. All factors mentioned above effect the success of local product group in Songkhla Thailand. Another factors are supported from government and private sectors.

Index Terms - Success Factor, Local Product Group, Thailand.

I. INTRODUCTION Aggregation is usually in the form of activity groups or occupation groups that are promoted by various Department of Community Development Ministry of agencies and some groups have been working to help the Interior of Thailand set vision for community each other in a network. Form of grouping may be development “Foundation, stable and self-reliant variations such as housewives, agricultural community by 2021” consistent with the 12 th cooperatives or production group. The main objective National Economic and Social Development Plan of grouping as mentioned above is to help each other's (2017 – 2021), Thailand Strategy, government policy members in the group, strengthen their operations and and current situation. In 2017, they encourage creating a bargaining power [15]. community development (Agenda) under the philosophy of sufficiency economy move forward The development of community product groups in “Household economic stability and people living in Thailand and has changed the way communities with happiness.” by professional that the government will reduce their role and development of households for a household with a encourage the private sector or educational institutions career to earn money for themselves. The household to participate the community development. The focus economy is stable. People live happily in the will be on the requirement of advancement from community. The Community Development products group. Department has carried out the project of community development in accordance with the principle of Despite the encouragement from the public and private sufficiency economy in the target area of 23,589 sector, there are successful and unsuccessful groups, so villages, allowing villagers to teach the villagers what it is essential to study the factors that influencing the they want to do with the process of developing the group successful. This factor will be operational community sages. The career can transfer knowledge. guidelines the development of another group. And to practice the profession to the community, the community can actually lead to a career and fostering II. RESEARCH OBJECTIVE the integration career The purpose of this research is to study the success Songkhla Province has prepared a development factors of local product group in Songkhla Thailand. strategy: Strengthening the security and safety of life and property of citizens and Strategy 1: promotes the III. LOCAL PRODUCT GROUP development and empowerment of communities in the management, so that the villages / communities by the A. The definition of a local product group. Office of Community Development, Songkhla. Group means that two or more people come together. Promoting the establishment and development of The relationship or interaction and they are intended occupational groups in Songkhla covering 16 districts, to do one activity together. Also this relationship will 127 subdistricts, 987 villages [13]. help members live together in a perfect fit. The individuals come together as a group. It must be any At the grassroots level, the local community has many one or more of the following occur. characteristics. Most of them are small businesses.

Proceedings of ISER 107th International Conference, , Thailand, 10th-11th February 2018 42 The Success Factors of Local Product Group in Songkhla Thailand 1. Must always interact with each other. for coordinate with various agencies and related 2. Each person is considered a group member. parties. 3. Each person in the group will accept each other as - Preparation of rules to serve as a common a group member. practice. Between group members and committee. 4. Have shared. - Prepare a group action plan to use as a guideline 5. Each person will have a clear role. for joint activities. 6. They mimic some aspects of their thought 4) Group crawl professional career committee appropriate by the group members. prepared and gathering information to establish a 7. Members have the idea that the group must career group. Contains the meeting record group provide benefits to members. regulations committee list member list program / 8. Members will seek common goals. group activities and others. 9. An acknowledgment of the unity of the group 5) Apply for registration of occupational groups, together. committees, occupational groups, group information, 10. Group members will conduct themselves to suit apply for professional group formation with the district the environment of the group. community development office. The district development office is fully verified. The registration Local product group refers to the integration of the form for occupational groups and the report on the people who produce the same product. Continuing establishment of occupational groups to the provinces professional activities, production and distribution for reporting to the Department of Community activities. The group's board of directors by regulatory. Development. 6) The professional group conducts the activities as B. The purpose of establishing a local product planned. group. 7) District / District Community Development 1. To encourage households, community integration, Support Team. help each other. Ensure stable occupation and 8) Coordinate development agencies to support generate income continuously. professional development in areas such as access to 2. To develop skills knowledge in terms of inputs, knowledge, marketing, public relations and production, marketing and management to management. effectively advance the entrepreneurship community. D. The local product group development. 3. To be a center for the exchange of the righteous in Local product group that can achieve their accordance with the philosophy of Sufficiency objectives effectively and sustainably. It requires Economy. continuous development such as: 1) Management. C. Steps and methods for establishing a product - Participation in group operations. group. - Continuous group activities. 1) Public invited at the same household occupations - Sharing the benefits of fair group and join the local product group. satisfied members 2) Meeting or staging awareness by describing the - There are activities that promote and develop objectives, principles and operation of a professional the learning process. group. The importance of the group to members, - There are rules that everyone are accepted. groups and communities, as well as the activities that - Supervise and monitor operations. the members will share in their needs and suit their - Motivational activities such as reward, praise local potential. 2) Production development. 3) Set up a career group where members formulate - Productivity achieved by the target. the basic elements of the group. - The quality of the work achieved by the - Name the group as per the member's approval. target. The beginning with the word. "Local product groups - A variety of product...... " and may have group slogans. - Development of productivity. - Determine the purpose of group as clear 3) Adding value of the product. direction for the operation of the group. - Quality raw materials are considered for - The group set a place as hub for the activities of safety and environmental impact, such as the use of the group. natural raw materials. - The selection committee consists of the main - The use of wisdom / culture as a basis for the positions being the chairman, vice president, secretary, development of products such as fermented mud. treasurer and public relations. Group members choose - Packaging design and product design that each other to represent the group in the administration meet market needs.

Proceedings of ISER 107th International Conference, Pattaya, Thailand, 10th-11th February 2018 43 The Success Factors of Local Product Group in Songkhla Thailand - Applying for a quality mark such as MLU, internal and external factors. The main external Halal etc. factors are government policy and network. Secondly, 4) Promoting marketing channels and public internal factors indicate that family group relations is the opportunity to create awareness and management, strong leadership, professional skill of sales of the following products: At the group office, member and corroboration and networking of local community market, OTOP shop, Shops in the hotel / product development groups are key success factors. resort / tourist destination, souvenirs / travelers rest, Reference [9] shows the factors affected the success of trade shows of government agencies such as district Banchongcorungrueang Mushroom Cultivate offices, town hall or industrial promotion center, Community Enterprise Group are the group’s exhibitions of the private sector, public relations, organizing, producing, marketing, financing and posters, brochures or leaflets, online media such as accounting and support from government. Facebook or smart phone application: Line. Reference [10] shows business achievement factors of 5) Allocation of Profits. five star OTOP product champion entrepreneurs at - Welfare allocations such as funeral San Sai District, Province. All arrangements. Medical expenses, scholarships, life entrepreneurs had production planning, production insurance Food and Beverage Buy and repair supplies. site, and paid by cash or credit. All of the finished - Develop public facilities such as tourist products would be verified, all entrepreneurs prepare a attractions. balance sheet, income statement, statement of retained - Promoting and developing board members and earnings and household account. There were multiple members, such as study visit, loans, committee's channel and used the variety of integrated marketing remuneration, product payers, working capital communications. members. Reference [13] shows the factors affecting the success - The allocation of capital for group. of the occupational groups are 1. Leadership 2. - The dividend to members. Member 3. Objective 4. process management 5. Communication 6. Product and 7. Fund IV. FACTORS INFLUENCING SUCCESS OF Reference [14] shows the factors contributing to GROUP success of Occupational of a fabric products group in Phetchabun province are 2 factor include internal There have been several studies which analyze the factor comprising the product is Height quality and factors influencing success of group are as follow: beautiful according to customer requirements. The Reference [1] shows the success factors for Bumiputera group member have knowledgeable and skills to entrepreneurs in business can be grouped into eight produce. The group have development regularly. The major dimensions in rank order: advancement drive, group have material and machine for manufacturers. achievement oriented, commitment, decision making The group has appointed chairman of the board and ability, managing risks, tenacity, networking, and operates a competent manner. The group have optimism. Other success factors in order of emphasis manufacturing process are quality. And external factor are effective marketing strategies, support and comprising. The government are support the budget cooperation from others, strong capital base, strategic implementation of the professional group. The location, being competitive, effective financial government are support distribution channels. The management, religious values, supportive business government are support material and machine for partner, family business background, Bumiputera manufacturers. And the province has a strategic status. operation and support operations to the professional Reference [6] shows the guidelines for development of group. the reed mat occupational group into a community As mentioned earlier, the factor effect the success of enterprise concerned four aspects, namely (1) process group are leader, group member, administration and management, (2) awareness raising, (3) education, and management, corroboration and networking, effective (4) participation. financial management, effective marketing strategies Reference [2] found three key success factors of local and support from government. economic development in several remote areas in Indonesia are entrepreneurial activities, empowerment V. LOCAL PRODUCT GROUP IN SONGKHLA and local leaders. THAILAND Reference [7] shows the four factors affected the success of community business management: leader, Songkhla is divided into 16 districts, 127 subdistricts building network, administration and management, and 987 villages. The province has promoted the and committee. establishment of professional groups for the Reference [8] shows key success factors of local improvement the quality of life of self-reliant product development at Tambol Haiyong, Phangkhon households. In such aspects as housewives, women's in Northeast of Thailand are both groups, the elderly, agricultural processing group, civil

Proceedings of ISER 107th International Conference, Pattaya, Thailand, 10th-11th February 2018 44 The Success Factors of Local Product Group in Songkhla Thailand union and community enterprise. The group is formed processes, distribution, group performance, and by the integration of people in the same occupation. continuous improvement. The activities of the group are based on the occupation 6. Product: The products of the group are diversified to of the community, the agricultural community. The meet the needs of certified customers. The group have wisdom of the occupation is inherited to develop into a the ability to produce according to the needs of the career that generates income in the nature of customers. community products. There are 758 total group: 60 7. Fund: Capital used in production or sales of the groups of professional and 698 group of enterprises group's members will be financed from loans or grants. community. The performance of the group is both Factors that affect the success of the group include: 1) successful and unsuccessful. There are 68 groups are the purpose of the group is clear and all members have accredited community standard and 22 groups have a common goal. 2) group management, especially the been selected as the best product. sharing of benefits for members and the development In the study of the factors affecting the success of the of knowledge for members. 3) knowledgeable leaders community product group, the group selected the skills and experience in business management and product as the best product and performed the group commitment to operations. 4) group members have an efficiently. Also, this results are guideline of success of understanding of the operations of the group. 5) group operation for another group that the target of communication within the group is communicated in group was not successful. many forms and consistently. Another factors are supported from government and private sectors. VI. RESEARCH METHODOLOGY In the production of products of the group, there are obstacles in the operation of the marketing. The Data were collected through in-depth and formal problem solved by the government to find various interviews. This will be a deep interview from the marketing. In the production of season problems. leader and group members. Group discussion is a Songkhla Province has frequently raining, Also the sub-group meeting for members to provide feedback, group can not produce some products. The solution is joint counseling among researchers and group leaders to create innovative solutions to weather problems. for find problem of groups. Group meeting to share There are solutions to problems by financing sources ideas between the researcher and the group members. from the government. The community is centered on giving opinions. Non-participant observation is used to check the CONCLUSION AND RECOMMENDATIONS information by interview. The data were analyzed in conjunction with the data obtained from interviews The development of local product group should and data from relevant agencies such as Department of encourage the knowledge or skill about administration Community Development. and management for leader and member of group. VII. Results and discussion Furthermore, the government or Department of The operational characteristics of the group's Community Development should support about successful operations are as follows. financing sources, material and machine for 1. Leadership is the leader of the community or leader manufacturers or variety of marketing. of other groups and producer of community products. They have experience in administration. REFERENCES 2. 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