Royal Umbrella rice firm targets sales jump despite strong competition

Yongyut Phurkmahadamrong, assistant vice president for marketing, said yesterday that the high price of Thai rice had resulted in a serious drop in exports, which encouraged more domestic trading.
 “The company will attempt to focus on marketing campaigns to promote sales and increase market share to ensure it is the country’s leading rice brand,” he said.
Many rice exporters and millers who have faced difficulties have become rice packers to stay in the rice industry. Thus rice trading in the country faces high competition, and players must work hard to adjust.
CP Intertrade aims to boost sales volume from last year’s 300,000 tonnes to 580,000 tonnes this year, while it expects market share will increase from the current 17 per cent to 20 per cent.
The firm will rely less on exports, which now account for 60-70 per cent of its sales volume. Domestic and export sales will be balanced 50:50 this year, Yongyut said.
Royal Umbrella is currently the country’s brand leader for packed rice. Thailand consumes about 6 million to 7 million tonnes of rice a year. Modern trade accounts for only 20 per cent of that, and wholesale and traditional trading for the rest.
To boost sales, the company this year will spend Bt80 million, the highest budget for packed-rice marketing, to continue its promotion whereby consumers can get discounts of Bt1-Bt10.
The firm will also spend Bt21 million on marketing and advertising campaigns.