AN EXPLORATORY STUDY ON PRODUCT, PRICE, DISTRIBUTION CHANNELS, AND PROMOTION OF SEAWEEDS IN SEMPORNA DISTRICT OF SABAH, MALAYSIA

Abstract

This exploratory study aims to enhance understanding of marketing of seaweed in Semporna district of Sabah, Malaysia with concentration on product, price, distribution channels, and promotion of seaweeds. Qualitative research is conducted via preliminary observation and focus group interviews with nineteen subjects including small entrepreneurs as well as representatives of the companies involved in the seaweed industry in Semporna district of Sabah, Malaysia. This exploratory research found that seaweed farmers concentrated on producing only Kappaphycus Alvarezii (“cottonii”, of commerce) and Eucheuma Denticulatum (“spinosum”, of commerce) which are known by local people as “Agar-Agar”. Farmers sell their dried seaweed to the middlemen who normally travel among the farms to search for sellers and usually offer a good buying price. Promotion of seaweed products through word-of-mouth, besides consult and trust recommendations by friends and family members before making any buying decisions as they value them more highly than anything companies can say through various mediums of advertising.