Instant noodle firms ramp up marketing efforts

The slim growth reflected the low purchasing power of people in this country, especially the grass roots.

Instant noodle companies last year spent more than Bt750 million altogether on marketing activities aimed at stimulating sales.

Vathit Chokwatana, vice president of Saha Pathanapibul, distributor of Mama instant noodles, said the market was worth Bt14.5 billion last year, up by only 0.4 per cent from 2014. That year, the market grew by 1 per cent over 2013.

"Mama also grew by 0.4 per cent, the same as the overall market. We remain the market leader with a 51-per-cent share," he said, adding that the second leader was Yum Yum with 21 per cent, and Wai Wai was third with 20 per cent.

Mama Cup, however, commands more than 54 per cent of its segment, and grew by 3.2 per cent last year. Overall, the cup-noodle market grew by only 1.8 per cent.

"We [Mama] are not an economic indicator as defined by many people. Last year with the slow economy, we ourselves also recorded weak sales performance," Vathit said.

"This year, however, we anticipate the overall instant-noodle market to see a higher growth than last year, at 2 per cent. There are many optimistic factors, especially the economic stimulus measures being issued by the government as well as the implementation of the Asean Economic Community, which will allow the flow of people from neighbouring countries to Thailand."

He said the only challenge this year would be drought, which would have an impact on the spending power of farmers and grass-roots people.

He said Mama targeted sales to increase by 5 per cent this year. The company will spend more than Bt250 million on marketing activities.

Mama currently contributes about 33 per cent of Saha Pathanapibul’s annual revenue.

The company plans to penetrate more overseas markets, including Bangladesh, Hungary, Cambodia and Myanmar, to offset the sluggishness of the mature instant-noodle market in Thailand.