Cold Stone budgets Bt250m for 5-year marketing plan
Central Restaurants Group's Cold Stone Creamery subsidiary is counting on the high purchasing power of customers in key cities, and has earmarked more than Bt250 million for marketing and other costs as it aims to have 30 branches in place by 2020, expect
"The mass market is also in our focus after we have succeeded in the premium market," Wachiraporn Wanitchai, general manager of Cold Stone, which runs ice-cream shops, said yesterday.
Of the Bt250-million investment, at least Bt50 million will be spent on decorating and marketing in each of the next five years. The source of the budget will be from the company’s cash flow.
The company will add outlets at Central Westgate, Central Festival East Ville, and Central Pinklao to reach a total of 16 branches by the end of this year. Currently, there are 13 stores, including 11 in Bangkok.
Wachiraporn said the premium ice-cream market had been affected by the economic slowdown and declining purchasing power. Therefore, the company started targeting the upper mass market by offering value-for-money ice-cream cones last year. The starting price is Bt65 per cone.
With this pricing strategy, the company intended to lure younger customers and build its brand awareness in that segment.
Apart from in-store sales, mobile outlets and delivery and catering services are also priorities. They are expected to contribute about 15 per cent of this year’s revenues, she said.
The company saw sales surge by more than 30 per cent in the first half of this year, mainly driven by the new affordable product line and seasonal marketing events. It hopes for full-year growth of more than 40 per cent, a big improvement on its average annual growth of 10 per cent.
Of the Bt15-billion ice-cream market, premium products contribute 20 per cent. The overall market is expected to rise by less than 10 per cent this year because of the economic sluggishness.
