Using Cluster Analysis to Understand the Value Proposition in Digital Business to Develop Digital Marketing for Agricultural Community Enterprise in Thailand

Authors

  • Chayathatto, Mada Na Krom, Woradech, Abdullah, Abdul Rashid

Abstract

Digital Marketing transformation is the realignment of technology and process to drive new value for customers and business. In Thailand, Digital Marketing has become popular because digital marketing tactics will help business improve marketing performance, especially for agricultural community enterprises. However, the minority enterprises are already leveraging the benefits of digital marketing while almost all of the agricultural community enterprises struggle with the incorporation of the necessary changes into the business process. This paper provides practices to guide value assessments that can help community enterprises assess value to customers and presents the empirical results that businesses need to adopt a perspective of value to generate a    digital marketing plan and strategy from a digital presence. The value assessments guideline in this paper identifies a three perspectives approach:  value creation, value delivery and value capture. The guideline also defines    ten attributes of values to guide community enterprises thinking about values that consist of understanding platform, key activity, price discovery, review system, key value proposition, transaction content, geography, price mechanism, price discriminator and key player coordinator. Moreover, this analysis attempted to identify the attributes of value that were developed by digital marketing for each cluster of enterprises.

The research systematically analyzed 225 selected agricultural community enterprises in the Lower North of Thailand based on a survey.  The aggregated data was evaluated using cluster analysis methods   to classify and to extract the value proposition from agricultural community enterprise groups. The result showed that there are three distinguishable clusters of enterprises: Cluster 1 is developing enterprises. Enterprises in this cluster are ready to start their own digital marketing but need to further develop their digital marketing strategy.  Cluster 2 is advanced enterprises. They exhibit a strong resemblance to the characteristics discussed in the trend toward growth and success in digital marketing utilizing a value proposition. Enterprises in this cluster can use a digital platform to drive growth and gain new customers including sharing interesting and relevant content.  Cluster 3 represents beginning enterprises for digital marketing. Their focus is often on the supply side. The enterprises in this cluster must understand and improve platform strategy which provides business enterprise with multiple opportunities for generating customer value and offers access to a larger market.

Finally, this classification can help businesses and executives in the planning, executing, or assessing of these types of agricultural community enterprises. And the agricultural community enterprise can improve customer engagement with a digital marketing model, developed based on its relationship with value for their business. The model helps a business begin to build a customer value relationship and generate opportunities for the agricultural community to increase revenue. 

Published

2020-11-01

Issue

Section

Articles