Ichitan targets revenue growth of 17% despite economic woes
AMID the economic volatility, Ichitan Group is challenging itself to achieve growth of 17 per cent to Bt7.5 billion in revenue this year, by focusing on new products, packaging and pricing in line with 360-degree marketing communications.
“Even though the ready-to-drink green-tea market experienced a decline of 2.5 per cent to Bt15.57 billion last year due to economic conditions, consumption volume still saw growth of 0.7 per cent,” said Tan Passakornnatee, president and chief executive officer.
With the government’s stimulus packages, the industry should shift into recovery mode by the second half this year, so the green-tea market should advance at least 10 per cent over last year, he said.
The Ichitan green-tea empire aims to increase its market share through a series of campaigns in line with the introduction of new products.
Tanapan Khongnuntha, executive vice president, said the company would concentrate more on the sugar-free green-tea segment to expand its customer base to health-conscious consumers.
Next month, the company will start an online campaign for its existing sugar-free green tea and Oolong tea drink, targeting urban dwellers.
“If any brands in this segment do not make significant moves, this segment will see a drop in market share. So Ichitan’s efforts must be in place.
“I personally believe that the sugar-free green-tea-drink market could hit Bt1.5 billion in five years,” he said.
Ultra-high-temperature processed green tea is another highlight for the group this year. Tan said his company would offer a bigger UHT green-tea pack with 300 millilitres, up from 250ml, but keep the price the same to grab share from its rivals.
It will apply a sizing strategy to supply seven sizes for Ichitan green tea, Yen Yen herbal drink and Bireley’s 30-per-cent-concentrated orange juice, from 290ml-840ml, priced from Bt10-Bt27.
By next quarter, Ichitan will make a significant move into the 100-per-cent-concentrate juice market with the introduction of the Bireley’s Premium brand.
This seems to be a daring move as there are already two strong players – Tipco and Malee.
In the third quarter, the company expects to introduce another product category, but Tan did not elaborate.
The company has earmarked about Bt900 million or 12 per cent of estimated sales for marketing campaigns, promotions, on-ground activities and TV sponsorship.
Ichitan will join forces with GMM Grammy to air the “Sue Tid Peek” talent show soon on the One digital TV channel.
For the overseas market, Ichitan Indonesia will do more brand-building to expand its customer base with the addition of at least two or three products to its line-up this year.
Under a partnership with Japan’s Mitsubishi Corporation, the company now distributes its products via Alfamart convenience stores, run by Atri Pasifik, in Indonesia.
In the near future, Ichitan expects to realise Bt1 billion in revenue from Indonesia.
