By KWANCHAI RUNGFAPAISARN
Under the investment, the group expects to double its total annual sales of Krating Daeng to Bt60 billion in the next three years, with Bt42 billion coming from exports.
TCP Group posted Bt30 billion in sales of Krating Daeng products last year, with exports contributing 70 per cent - or Bt21 billion - of the total.
The group yesterday said that it is making headway into Singapore, breaking new ground with Red Bull Plus – a premium, sugar-free energy drink that targets young people pursuing healthy lifestyles and a good public image.
It is also building on its success in Thailand with the launch of Krating Daeng Extra in new packaging.
Supachai Junkeiat, TCP Group’s global marketing division director, said that Krating Daeng – also known as Red Bull - is a globally known brand. It is the top energy drink in Thailand, which is also the leader in Southeast Asia with a market share of around 40 per cent. The company said it is a top three energy drink brand in every country where it has a presence.
It is also a pioneering brand for energy drinks that has been successful for over 40 years. The brand has the largest outreach in overseas markets with a wide range of products in its portfolio to cover every consumer need in every segment.
“TPC will take the offensive to market a portfolio of Krating Daeng products in Southeast Asian markets where sales are expected to grow by 15 per cent in 2019,” Supachai said.
He said that the key challenge today is how to deeply understand the lifestyles, cultures, and behaviours of consumers in the different markets.
“We call our strategy Glocal. Under the strategy, our global marketing team will work with local marketing units in individual countries to integrate global standard work ethics into the context of each market in which Krating Daeng operates,” he said.
“We will also develop innovations to grow the consumer base and increase brand awareness to make Krating Daeng one of the two top energy drink brands in every Southeast Asian market.
“The retail landscape might be changing sooner or later but our marketing strategy and implementation will still be based on consumer centricity. Thus, we invest substantially in research and the study of consumer behaviour to understand people’s daily routines, consumption behaviour, lifestyles, culture and factors influencing the product buying decision in order to develop our action plan and employ marketing tools accordingly,” said Supachai, adding that this approach leads to the development of game-changing innovation in each market in Southeast Asia.
Krating Daeng is the first Thai brand in the energy drink market to develop marketing innovation that focuses on communication with consumers on different digital platforms such as Line (in Thailand), social media and Whatsapp (in overseas markets) in accordance with the context and popularity among consumers in each country. “Krating Daeng has enjoyed phenomenal success with its use of digital platforms to reach consumers,” Supachai said.
He said TCP Group has increased its growth potential as the leader in the market for energy drinks in Southeast Asia with a wide range of products to meet consumer needs in every segment. Krating Daeng is the only energy drink brand in Thailand with products in its portfolio – each product is the result of extensive consumer behaviour studies to meet consumer needs in every segment, he said.
“The focus is on presenting strengths and different properties of individual products as well as their nutritional benefits and other supplementary functions to improve brand value,” Supachai said.
“For the Thai market in 2019, we have launched the new-formula Krating Daeng Extra in new packaging with the Try Now, Great Taste Guaranteed! campaign.
“The new formula and its great taste have been well accepted by more than 90 per cent of consumers who have tried it.
“Our main targets for the new products are university students and young workers aged up to 35. The product’s re-formulation followed our extensive study of consumer behaviour and needs. We found unmet needs of consumers in terms of product taste and packaging”.