Bangkok--22 Mar--Siam PR. Consultant
Moong Pattana Marketing Co., Ltd. reports sales of Pigeon products grows at the average of over 10% annually dominating the premium market with over 54% market share. The company also prepares to retain leadership through expansion of sales channels and provincial markets with hopes to bolster sales by 15%
Niramai Laksananunt, Vice President, Marketing and Sales, Moong Pattana Marketing Co., Ltd, disclosed the overall picture of Thailand’s mother care products saying the market would continue to remain positive as evident through the growing performance of both new and old players, resulting in greater competition. “In 2005, the mother care market totaled 570 million baht, up 10% compared with that of the previous year. The premium end occupies 45% of the total market or 255 million baht up from 223 million baht in 2004. The middle-income market is around 26% of the total market or 148 million baht, up from 132 million baht in 2004, which stood at 25%. The low end of the market occupies only 29% of the total market or 167 million baht, unchanged in value but lower in market share from 32% in 2004 due to pricing as only means of attraction. The main reason for the premium products to command growing market share is the shifting of lifestyle more toward being working women who take care of their own children. Modern women are both working professionals and mothers caring for their own children. This is why the number of children in each family is down to 1-2 children. These modern moms are highly educated and highly paid. They are particular with what they choose. Functionality now overshadows pricing as this group of consumers has the purchasing power for the products they trust,” he said.
A research has found that over 90% of modern mothers are willing to pay more for the products suitable to their children without having much of brand loyalty but rather the health concerns and child development. With competition from new players, the mother care products enjoy satisfactory growth at the premium end with even greater future growth expected.
“What each player has given great importance to the mother care market is the understanding of the fast changing behaviors of the mother resulting from increasing product development and marketing communications through more credible product presentations highlighting both the benefits on child development and convenience,” he explained.
“As for 2006, the mother care market will continue to grow despite lower birth rate. Each manufacturer remains focused with product development for better quality and variety in order to effectively cater to the needs of modern consumers with expanded sales channels such as specialty stores and greater brand building. Pigeon products enjoy obvious advantages over its competitors in these 4 following aspects — quality of products developed in Japan to suit Asian consumers; better pricing through local product base; nationwide distribution; and marketing activities that create brand value through functional and emotional approaches,” he said.
Methin Lersumitkul, Marketing Manager, Moong Pattana Marketing Co., Ltd., added that the sales of Pigeon products in 2005 were in line with the projections - growing at double digits. “The sales in 2005 were around 215 million baht or 38% of the 570 million baht total market. The ratio of Pigeon products sold last year is 65:35 for locally produced and imported goods respectively,” he said.
“As for the marketing this year, the company is looking to retain market dominance by highlighting the recognition of being ‘the mother care specialist’ with continuous performance of double digit growth through new sales channels and excellent product quality with variety. The company will implement continuous marketing activities, advertising and public relations delivering the message that Pigeon products are better in value, greater in variety and higher functionality. The number of imported products from Japan will increase to accompany the growing demands, along with special strategy to stimulate sales in specialty stores, direct sales, e-commerce especially expanding the channels in the provinces with strong advertising and public relations executions throughout the year,” he explained.
Pigeon is positioned as specialist in mother care products with target groups including modern mother who are being conventional and working women — raising their own children while working outside. In the last 5-10 years, the fertility rate has significantly declined. Last year only around 660,000 children were born proving the new index that each family will have the number of children limited to 1-2 children, allowing the ratio of spending per head to increase, especially on the first child. Our products enjoy the advantage over competitors because of the quality that promotes outstanding child development.
“In addition, Pigeon products are well recognized brand of products in Japan with highest sales performance for several consecutive years and this is what we are trying to point out to the customers especially on the way the products are invented and developed, which is targeting Asian children. This message has become increasingly important when competition has multiplied. This is how we allow customers to know the product and truly build the brand loyalty,” he concluded.
For more information please contact:
Jidapa Pramualsub, Somruthai Polpala
Siam PR. Consultant Co., Ltd.
Tel.0-2693-7835-8 ext. 32,34
Fax 0-2693-6920, 0-2276-8552
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