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ACKNOWLEDGEMENT

Firstly, my gratitude to God for giving me the strength and ability to cope up with all that is entailed in the preparation of this study project till completion.

My gratitude also goes to my advisor for this project, Tuan Haji Dr. Kadir Haji Roslin for his kind assistant and guidance in completing this project, not forgetting also to Madam Habibun Nisa Mohamed Ajmal and staff of in ED UiTM Sabah, a very big thank you.

1 also owe my gratitude to the staff of SFI at Paper Machine department, Finishing House department and Technical Services department for their kindness and understanding, in helping and allowing me to use some reference while carrying this project.

Last but not least, my utmost gratitude to my beloved wife (Mrs Mercoh Singan), she family, my family, friends and colleagues, thank you for your all full support, encouragement and understanding in completing this project.

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T A B L E OF CONTENT

ACKNOWLEDGEMENT ii TABLE OF CONTENTS iii LIST OF TABLES vii LIST OF CHARTS viii ABSTRACT x

CHAPTERS

1. INTRODUCTION 1 1.1 Background of the study 1

1.2 Problem statement 2 1.3 Objectives of the research 2 1.4 Significance of the study 3 1.5 Scope of the study 3

1.5.1 To the Researcher 3 1.5.2 To the Organization 3 1.5.3 To the Retailer and Final Users 3

2. L I T E R A T U R E R E V I E W 4 2.1 National Forest Products Statistics, Malaysia 4

2.2 B I L T Acquires Malaysia's Top Paper Mill for $261 Million 5

2.3 SFI Take Over Will Benefit US : Sapawi 7

2.4 Future Investment 8

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2.4.1 B I L T to Invest $1 Billion in Malaysia's

Pulp & Paper Mill 8 2.4.2 Avantha's SFI Presented with Smartwood verified

Legal Origin Verification Statement 9 2.4.3 Metso Rebuilding Pulp Mill In Malaysia 11

2.5 SFI Marketing System Audit 11 2.5.1 Order or Customer 11 2.5.2 Marketing Department 12 2.5.3 Paper Producing 12 2.5.4 Finishing House 12 2.5.5 Warehouse 12 2.5.6 Shipping & Logistics 13

2.5.7 Marketing Department 13

2.6 SFI Marketing Productivity Audit 16 2.6.1 SFI Total Paper Sales 2007-2009 16

2.7 SFI Marketing Overview 18 2.7.1 Macroenvironment 19

2.7.1.1 Demographic Environment 19 2.7.1.2 Economic Environment 19 2.7.1.3 Natural Environment 19 2.7.1.4 Technological Environment 19 2.7.1.5 Political Environment 20 2.7.1.6 Cultural Environment 20

2.7.2 Task Environment 20 2.8 SFI Marketing Organization Audit 21

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A b s t r a c t

The scope of this study is focused on government servants, private sectors, retailers wholesalers which located in sipitang, papar and beaurfort of sabah. This study tries to investigate on the effectiveness on its marketing strategy after acquisition of Ballarpur Industries (BILT).

The objectives of these study are to find the better way to improve sales through greater

marketing strategy efforts, a reasonable price of high quality paper products and to indentify the performance of their production activities to fulfill the customers demand.

From the findings, customer of this company is more sensitive toward the pricing of the products.

To successful, a company must provide greater customer value and satisfaction then its

competitors. Each firm should consider its own size in industry positions in an industry can use strategies that smaller firms unable afford.

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