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FORESTRY WOOD PRODUCTS

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Title: FORESTRY WOOD PRODUCTS


1
FORESTRY WOOD PRODUCTS
  • Assoc. Prof. Dr. Nickola Stoyanov
  • University of Forestry
  • Sofia, Bulgaria

2
structure of a product
3
Base use
  • In general, the main benefit of a product is
    abstract in nature.
  • When booking a hotel room, one expects to find
    sleep and rest at night. However, these features
    cannot be bought in this way.
  • Only the generic product is marketable - in the
    case of the hotel, this will be represented by at
    least a bed and a receptionist's desk

4
Generic Product
  • Quality
  • Special characteristics
  • Branch
  • Style
  • Packing

5
Expected product
  • Placement (distribution)
  • Price
  • Installation
  • Service
  • Garantee

6
Augmented product
  • Additional benefits

7
DEFINITION OF THE PRODUCT
  • Product is the sum of the physical,
    psychological, and sociological satisfactions
    that the buyer derives from purchase, ownership,
    and consumption.
  • From this standpoint, products are
    consumer-satisfying objects that include such
    things as accessories, packaging, and service.

8
Product Classification
  • Agricultural products and raw materials.
  • Industrial goods
  • a.Raw materials and semifinished goods.
  • b.Major and minor equipment, such as basic
    machinery, tools, and other processing
    facilities.
  • c.Parts or components, which become an
    integral element of some other finished good.
  • d.Supplies or items used to operate the
    business but that do not become part of the final
    product.

9
Product Classification
  • Consumer goods
  • a.Convenience goods, such as food, which
    are purchased frequently with minimum effort.
    Impulse goods would also fall into this category.
  • b.Shopping goods, such as appliances,
    which are purchased after some time and energy
    are spent comparing the various offerings.
  • c.Specialty goods, which are unique in
    some way so the consumer will make a special
    effort to obtain them.

10
New product
  • New products are a vital part of a firm's
    competitive growth strategy.

11
What is a 'new' product?
  • A new product will be considered anything which
    is perceived as such by the consumer, or with
    which the firm has no previous experience. The
    former permits the inclusion of variants in
    existing products, and their packaging, as well
    as totally new products such as satellite
    television, body scanners or laptop computers.

12
NEW PRODUCT POLICY (How many ways can a product
be new?)
  • A product performing an entirely new function,
    such as television, which for the first time
    permitted the transmission of audiovisual
    signals.
  • A product that offers improved performance of an
    existing function, such as a wristwatch whose
    balance wheel has been replaced by a tuning fork.
  • A product that is a new application of an
    existing product. For example, the aerosol bomb,
    which was first developed for insecticides, was
    later applied in paints.
  • A product that offers additional functions. The
    hands-free telephone, for instance, does what the
    earlier telephone did, plus more.

13
NEW PRODUCT POLICY (How many ways can a product
be new?)
  • An existing product offered to a new market. This
    may be done, for example, by repositioning or by
    taking a regional brand into other regions.
  • A product that through lower cost is able to
    reach more buyers. Hand calculators are an
    example.
  • An upgraded product defined as an existing
    product integrated into another existing product.
    The clock-radio is an example.
  • A downgraded product. For example, a manufacturer
    switches from buying a component to producing a
    cheaper component in-house and marketing it.
  • A restyled product. Annual auto and clothing
    changes are examples.

14
The New product Development Process
  • Idea generation
  • Idea screening
  • Project planning
  • Product development
  • Test marketing
  • Commercialization

15
Idea Generation
  • Every product starts as an idea. But all new
    product ideas do not have equal merit or
    potential for economic or commercial success.
    Some estimates indicate that as many as 60 or 70
    ideas are necessary to yield one successful
    product. This is an average figure, but it serves
    to illustrate the fact that new product ideas
    have a high mortality rate. In terms of money, of
    all the dollars of new product expense, almost
    three fourths go to unsuccessful products.
  • The problem at this stage is to ensure that all
    new product ideas available to the company at
    least have a chance to be heard and evaluated.
    This includes recognizing available sources of
    new product ideas and funneling these ideas to
    appropriate decision makers for screening.

16
Idea Screening
  • The primary function of the screening stage is
    twofold first, to eliminate ideas for new
    products that could not be profitably marketed by
    the firm and, second, to expand viable ideas into
    a full product concept. New product ideas may be
    eliminated either because they are outside the
    fields of the firm's interest or because the firm
    does not have the necessary resources or
    technology to produce the product at a profit.
    However, other ideas are accepted for further
    study because they appear to have adequate profit
    potential and offer the firm a competitive
    advantage in the market.

17
Project Planning
  • The product proposal is evaluated further and
    responsibility for the project is assigned to a
    project team.
  • The proposal is analyzed in terms of production,
    marketing, financial, and competitive factors.
  • A development budget is established, and some
    preliminary marketing and technical research is
    undertaken.
  • The product is actually designed in a rough form.
  • Alternative product features and component
    specifications are outlined.
  • Project plan is written up, which includes
    estimates of future development, production, and
    marketing costs along with capital requirements
    and manpower needs.
  • A schedule or timetable is also included.
  • The project proposal is given to top management
    for a go or no-go decision.

18
Product Development
  • At this stage the product idea has been evaluated
    from the standpoint of engineering,
    manufacturing, finance, and marketing. If it has
    met all expectations, it is considered a
    candidate for further research and testing. In
    the laboratory, the product is converted into a
    finished good and tested.

19
Test Marketing
  • Up until now the product has been a company
    secret. Now management goes outside the company
    and submits the product candidate for customer
    approval. Test marketing programs are conducted
    in line with plans for launching the product. At
    this stage, primary attention is given to the
    general marketing strategy to be used and the
    appropriate marketing mix. Test findings are
    analyzed, the product design is frozen into
    production, and a marketing plan is finalized.

20
Commercialization
  • This is the launching step. During this stage,
    heavy emphasis is on the organization structure
    and management talent needed to implement the
    marketing strategy. Emphasis is also given to
    following up such things as bugs in the design,
    production costs, quality control, and inventory
    requirements. Procedures and responsibility for
    evaluating the success of the new product by
    comparison with projections are also finalized,

21
CAUSES OF NEW PRODUCT FAILURE
  • Faulty estimates of market potential.
  • Unexpected reactions from competitors.
  • Poor timing in the introduction of the product.
  • Rapid change in the market (economy) after the
    product was ap proved.
  • Inadequate quality control.
  • Faulty estimates in production costs.
  • Inadequate expenditures on initial promotion.
  • Faulty test marketing.
  • Improper channel of distribution.

22
Need for Research
  • In many respects it can be argued that the
    keystone activity of any new product planning
    system is research - not just marketing research
    but technical research as well.
  • Regardless of the way in which the new product
    planning function is organized in the company,
    new product development decisions by top
    management require data that provide a base for
    making more intelligent choices.
  • New product project reports ought to be more
    than a collection of "expert" opinions.
  • Top management has a responsibility to ask
    certain questions, and the new product planning
    team has an obligation to generate answers to
    these questions based on research that provides
    marketing, economic, engineering, and production
    information

23
New product management and development some
conclusions
  • Most manufacturers cannot live without new
    products. It is common place for major companies
    to have 50 percent or more of current sales in
    products new in the past 10 years.
  • Many new products are failures. Estimates of new
    product failure range from 33 percent to 90
    percent.
  • Companies vary widely in the effectiveness of
    their new product programs.
  • Common elements tend to appear in the management
    practices that generally distinguish the relative
    degree of efficiency and success between
    companies.
  • About four out of five hours devoted by
    scientists and engineers to technical development
    of new products are spent on projects that do not
    reach commercial success

24
Product life-cycle phase's
  • Birth
  • Growth
  • Maturity
  • Decline and death.

25
PRODUCT LIFE CYCLE
26
Introduction phase (Birth)
  • There are usually high production and marketing
    costs and, since sales are only beginning to
    materialize, profits are low or nonexistent.

27
Growth stage
  • Profits increase and are positively correlated
    with sales as the market begins trying and
    adopting the product.

28
Maturation
  • Profits for the initiating firm do not keep pace
    with sales because of competition. Here the
    seller may be forced to "remarket" the product,
    which may involve making price concessions,
    increasing product quality, or expanding outlays
    on advertising and sales promotion just to
    maintain market share.

29
Decline
  • Seller must decide whether to
  • (a) drop the product,
  • (b) alter the product,
  • (c) seek new uses for the product,
  • (d) seek new markets, or
  • (e) continue with more of the same.

The first stage in the product life-cycle is
30
Preliminary classification of forest and tree
products
31
ROUNDWOOD
  • All round wood felled or otherwise harvested
    and removed. It comprises all wood obtained from
    removals, i.e. the quantities removed from
    forests and from trees outside the forest,
    including wood recovered from natural, felling
    and logging losses during the period, calendar
    year or forest year. It includes all wood removed
    with or without bark, including wood removed in
    its round form, or split, roughly squared or in
    other form (e.g. branches, roots, stumps and
    burls (where these are harvested) and wood that
    is roughly shaped or pointed. It is an aggregate
    comprising wood fuel, including wood for charcoal
    and industrial roundwood (wood in the rough). It
    is reported in cubic metres solid volume
    underbark (i.e. excluding bark).

32
WOOD FUEL (INCLUDING WOOD FOR CHARCOAL)
  • Round wood that will be used as fuel for purposes
    such as cooking, heating or power production.
  • It includes wood harvested from main stems,
    branches and other parts of trees (where these
    are harvested for fuel) and wood that will be
    used for charcoal production. It also includes
    wood chips to be used for fuel that are made
    directly (i.e. in the forest) from roundwood.

33
INDUSTRIAL ROUNDWOOD (WOOD IN THE ROUGH)
  • All round wood except wood fuel.
  • The customs classification systems used by most
    countries do not allow the division of Industrial
    Round wood trade statistics into the different
    end-use categories that have long been recognized
    in production statistics (i.e. sawlogs and veneer
    logs, pulpwood and other industrial roundwood).

34
PULPWOOD, ROUND AND SPLIT
  • Round wood that will be used for the production
    of pulp, particleboard or fiberboard.
  • It includes round wood (with or without bark)
    that will be used for these purposes in its round
    form or as split wood or wood chips made directly
    (i.e. in the forest) from round wood.

35
OTHER INDUSTRIAL ROUNDWOOD
  • Industrial round wood (wood in the rough) other
    than saw logs, veneer logs and/or pulpwood.
  • It includes round wood that will be used for
    poles, piling, posts, fencing, pit props tanning,
    distillation and match blocks, etc.

36
WOOD CHARCOAL
  • Wood carbonized by partial combustion or the
    application of heat from external sources.
  • It includes charcoal used as a fuel or for
    other uses, e.g. as a reduction agent in
    metallurgy or as an absorption or filtration
    medium.

37
CHIPS AND PARTICLES
  • Wood that has been reduced to small pieces and is
    suitable for pulping, for particle board and/or
    fibreboard production, for use as a fuel, or for
    other purposes.
  • It excludes wood chips made directly in the
    forest from roundwood (i.e. already counted as
    pulpwood, round and split).

38
WOOD RESIDUES
  • The volume of round wood that is left over after
    the production of forest products in the forest
    processing industry (i.e. forest processing
    residues) and that has not been reduced to chips
    or particles.
  • It includes sawmill rejects, slabs, edgings
    and trimmings, veneer log cores, veneer rejects,
    sawdust, residues from carpentry and joinery
    production, etc.

39
SAWLOGS AND VENEER LOGS
  • Round wood that will be sawn (or chipped)
    lengthways for the manufacture of sawn wood or
    railway sleepers (ties) or used for the
    production of veneer (mainly by peeling or
    slicing).
  • It includes round wood (whether or not it is
    roughly squared) that will be used for these
    purposes shingle bolts and stave bolts match
    billets and other special types of round wood
    (e.g. burls and roots, etc.) used for veneer
    production.

40
SAWNWOOD
  • Wood that has been produced from both domestic
    and imported round wood, either by sawing
    lengthways or by aprofile-chipping process and
    that exceeds 6 mm in thickness.
  • It includes planks, beams, joists, boards,
    rafters, scantlings, laths, boxboards and
    "lumber", etc., in the following forms unplaned,
    planed, end-jointed, etc.

41
WOOD-BASED PANELS
  • This product category is an aggregate comprising
    veneer sheets, plywood, particle board, and
    fiberboard.

42
VENEER SHEETS
  • Thin sheets of wood of uniform thickness, not
    exceeding 6 mm, rotary cut (i.e. peeled), sliced
    or sawn.
  • It includes wood used for the manufacture of
    laminated construction material, furniture,
    veneer containers, etc.

43
PLYWOOD
  • A panel consisting of an assembly of veneer
    sheets bonded together with the direction of the
    grain in alternate plies generally at right
    angles. The veneer sheets are usually placed
    symmetrically on both sides of a central ply or
    core that may itself be made from a veneer sheet
    or another material.
  • It includes veneer plywood (plywood
    manufactured by bonding together more than two
    veneer sheets, where the grain of alternate
    veneer sheets is crossed, generally at right
    angles) core plywood or blockboard (plywood with
    a solid core (i.e. the central layer, generally
    thicker than the other plies) that consists of
    narrow boards, blocks or strips of wood placed
    side by side, which may or may not be glued
    together) cellular board (plywood with a core of
    cellular construction) and composite plywood
    (plywood with the core or certain layers made of
    material other than solid wood or veneers).

44
PARTICLE BOARD (INCLUDING ORIENTED STRANDBOARD
(OSB))
  • A panel manufactured from small pieces of wood or
    other ligno-cellulosic materials (e.g. chips,
    flakes, splinters, strands, shreds, shives, etc.)
    bonded together by the use of an organic binder
    together with one or more of the following
    agents heat, pressure, humidity, a catalyst,
    etc. The particle board category is an aggregate
    category.
  • It includes oriented strandboard (OSB),
    waferboard and flaxboard.

45
ORIENTED STRANDBOARD (OSB)
  • A structural board in which layers of narrow
    wafers are layered alternately at right angles in
    order to give the board greater elastomechanical
    properties. The wafers, which resemble small
    pieces of veneer, are coated with e.g. waterproof
    phenolic resin glue, interleaved together in mats
    and then bonded together under heat and pressure.
    The resulting product is a solid, uniform
    building panel having high strength and water
    resistance.

46
FIBREBOARD
  • A panel manufactured from fibres of wood or other
    ligno-cellulosic materials with the primary bond
    deriving from the felting of the fibres and their
    inherent adhesive properties (although bonding
    materials and/or additives may be added in the
    manufacturing process).

47
MEDIUM DENSITY FIBREBOARD (MDF)
  • Fibreboard of a density exceeding 0.5 g/cm3 but
    not exceeding 0.8 g/cm3.

48
WOOD PULP
  • Fibrous material prepared from pulpwood, wood
    chips, particles or residues by mechanical and/or
    chemical process for further manufacture into
    paper, paperboard, fibreboard or other cellulose
    products.

49
PAPER AND PAPERBOARD
  • The paper and paperboard category is an aggregate
    category. In the production and trade statistics,
    it represents the sum of graphic papers sanitary
    and household papers packaging materials and
    other paper and paperboard.

50
SECONDARY WOOD PRODUCTS
51
FURTHER PROCESSED SAWNWOOD
  • Wood sawn or chipped lengthwise (including strips
    and friezes for parquet flooring, not assembled)
    and continuously shaped (tongued, grooved,
    rebated, V-jointed, beaded, moulded, rounded or
    the like) along any of its edges or faces,
    whether or not planed, sanded or finger jointed.

52
WOODEN WRAPPING AND PACKAGING MATERIAL
  • Packing cases, boxes, crates, drums and similar
    packings, of wood cable-drums of wood pallets,
    box pallets and other load boards, of wood
    pallet collars of wood. Casks, barrels, vats,
    tubs and other coopers' products and parts
    thereof, of wood, including staves.

53
BUILDERS JOINERY AND CARPENTRY OF WOOD
  • Including windows and doors and coverings thereof
    as well as cellular wood panels, assembled
    parquet panels, shingles and shakes.

54
WOODEN FURNITURE
  • Seats with wooden frames as wooden camping and
    garden seats etc. and parts thereof. Wooden
    furniture other than seats as of a kind used in
    offices, in the kitchen, bedrooms and elsewhere,
    as well as parts of all these.

55
PREFABRICATED BUILDINGS
  • Log cabins, houses prefabricated from particle
    board.

56
Conclusion
  • Although product considerations are extremely
    important, remember that the product is only one
    element of the marketing mix. Focusing on product
    decisions alone, without consideration of the
    other marketing mix variables would be an
    ineffective approach to marketing strategy.

57
Thank you!
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