Srinanaporn Marketing PCL (SET: SNNP) Senior Executive Vice President Business Division I, Mr. Wiroj Wachiradechkul gave an impressive interview about his marketing strategy and company vision which have been the key factor driving SNNP a fast-growing FMCG company in Thailand and soon the region.
1. What was the key to success that significantly drove SNNP’s business performance in 2021?
First of all, long-term planning is essential for an FMCG business. Before launching new products, we always do consumer research to find consumer demand. Therefore, business performance in 2021 is the payback for our hard work over the past three years. In addition, we have a variety of products, mainly snacks, and beverages such as Bento, Jele, Magic Farm, Lotus, and 20-30 other brands. When in the low season of one product, we have other different options to offer the customer. This is why our performance was quite good throughout the whole year.
Second, we have the products that position the market leaders, Bento and Jele, to which we have consistently penetrated marketing activities. For the F&B industry in this country, I have seen any Thai brands that cover up to 70% market share. And both products are from the same company. Thus, today our well-planned tree has grown by leaps and bounds. This is the first step. The result from Q1/2022 will probably come out even better than the year 2021.
2. What has been the strength that makes SNNP stand out from competitors in the market?
Srinanaporn Marketing Public Company Limited is originally a Thai company. Executives have been in this business for over 30 years. We know the needs of consumers, retailers, wholesalers, and, thereafter, the comprehensive method for product development. This is the first one. Very important. Once the products hit the market, everyone tries them and feels delicious, mellow, and safe. This is the strength of product development we have adhered to for over 30 years. And today, it’s still the same generation. After that, when the products become popular, we launch marketing campaigns to extend market share.
The second phase was when we listed the company on the stock exchange. We had to change the structure and bring in professionals whose experience could help us improve our operation and management. Those working with us before will see that the current process and management have differed from the past. We have adjusted ourselves to accommodate future consumer changes.
They said that big fish nowadays could not eat little fish because it is more adaptable than big ones. But another aspect that I think is also very important is the marketing strategy. Assuming there are 100 products in the market. Maybe only five would be successful. Concept of placing products and doing market research to find the actual demand of consumers must be precise. The key is to turn consumers’ needs into products they must purchase.
3. What is your marketing plan for new products in 2022?
Firstly, SNNP has successfully placed a new product called “Jele Chewy,” targeting upper elementary – middle school children. We wanted to introduce “Jele” to the younger generation since we already have a “Jele Cup,” “Jele Freshy,” and “Jele Beauty” for adults. So, Jele Chewy came out to fill the gap. We succeeded pretty well. Secondly, “Lotus chicken skin.” We expect the product will achieve its goal. The primary aspect is hygienic and low-fat ingredients, followed by convenience, as consumers can buy it 24-7 because it’s available in the convenience-stole. Another major highlight this year is that we are the first and only company in Thailand to produce hemp and cannabis-related products. We released lotus chicken drumsticks mixed with hemp leaves and hemp seeds. Hemp seeds are high in protein which Thai people still know very little about. Therefore, we have been working hard to educate consumers and make them understand the benefits. Another item that I think would catch the thunder is “Magic farm cannabis leaf juice.” We couldn’t even produce fast enough to fill the demand during summer.
In the meantime, we have already planned the product pipeline, marketing campaigns, and a new advertising movie for the next three quarters. In addition, the best part of Q3 is a new Jele with cannabis and CBD. It will definitely be the star. Next destination, we aim to launch food supplements in the jelly form. Today, when consumers buy food supplements in department stores, often, they were informed about the benefit by word of mouth. However, we will make it reliable. And we are confident because SNNP has been in this business for 30 years, and every Jele product contains vitamins. So, it is going to be our future S curb.
4. What about the overseas marketing plan?
We currently have products distributed in 35 countries on five continents, which is the model where we have local distributors. At the same time, we also have another business model in Cambodia and Vietnam, where we set up our factories. We expect our factory construction in Vietnam to be completed sometime around the end of Q2. SNNP has been in this market for more than ten years. We are confident that consumers are familiar with our products. After that, in the medium term, we have the initiative to set up a factory in Indonesia. We currently rely on the local convenience store chains which distribute our products throughout their tens of thousands of branches. Just like 7-11 here. Another significant market is China. Today, our revenue in China is still a tiny amount. However, in the future, I guarantee the figure will grow enormously. Overall speaking, our current business revenue is 80 percent in Thailand and 20 percent abroad. One day, the latter will grow more extensive than the former. Today our revenue is between 4 – 5 billion THB. But if the overseas business grows bigger, it is not too exaggerated to expect a ten billion THB within the near future. And it will be a great honor for SNNP. From a Thai company to becoming a regional and worldwide corporate.
Nowadays, even though we don’t seriously focus on marketing strategy overseas, Korean artists pick Bento whenever they come to Thailand. So, if you want to hold their hand, just give them Bento, and they will come and take your hand. A famous Thai artist in Korea who visited Thailand recently brought Bento back for her friends. If you are a fan of Korean artists, you would see they helped us promote Bento from time to time. Do you know Bento is one of the top five tourists’ most-picked products?
5. SNNP has been with Thai society for over 30 years. How do you define sustainability, and to what extent have you applied it to the company?
People are the center of corporate sustainability. We have employees, both Thais, and foreigners, of over 3,000. What inspires them to continue working here? Because people are our priority. They come first. People are essential in the development and extension of the organization. When they are well trained and knowledgeable, the extension of sustainability in various dimensions will come after. We also provide CSR and improve the work environment in the factory. For example, recently, I made a solar roof at the factory, changing and upgrading machines to prevent the risk of an accident. These are essential elements of the organization’s sustainability. They surround the center, which is the people.
6. What core values do you and the employees adhere to at work?
All the products, whenever our children try, must be safe. That’s the number one aspect. Second, it must be delicious. And finally, good for health. The core value we adhere to has proved itself through the quality of the products. Every item we sell domestically and internationally always comes from excellent consumer research. We develop innovation to fulfill consumers’ needs. It is embedded in the DNA of everyone who founded this company and passed on from generation to generation.
About The Executive Q&A Series
The Executive Q&A Series is presented by ShareInvestor, Asia’s leading financial internet media and technology company and the largest investor relations network in the region. For more information, email email@example.com. Website: www.ShareInvestorThailand.com