“Beger” employs the strategy of “5 Innovations” fighting in all segments Enhancing the position as the “Innovative Brand” in the customer’s mind
The paint market is never die and it is likely to be more aggressive this year as “Beger” prepare to penetrate the market very aggressively. Beger has organized the press conference announcing its business outcomes with the sales of 4 billion baht and also its new strategy of “5 Innovations” in order to become “The number 1 in customer’s mind” and “The leader in every segment” following its position as the leader in wood paint market in the past 50 years. In 2013, the company will continue to penetrate the “Building Paint” market following its continuous growth and the trend of “Superstar Paint – P’Bird’s Paint” and “Global Warming”. There will be series of innovative products being introduced continuously together with distribution channel expansion with the target of 1,500 distributors. Moreover, there will also be promotions and activities throughout the year with the short-term target as “The Number 1 in Customer’s Mind” while the long-term target is to be the leader in every market segment.
Worawat Chaiyosburana, Vice President of Beger Co., Ltd. stated that “Last year was truly a growing year for the paint market with the growth of 20% and the trend is expected to continue this year with the expected growth of 12% - 15% and the market value of 16 – 17 billion baht. In having a go at a very competitive market, our brand has to strive to develop in all phases including products, promotions, and strength of the brand. Customers these days are very smart and they can make their own decision so we will be focusing on creating brand image and highlighting brand positioning as these 2 things are keys to our development. In 2013, “Beger” focuses on “The 5 Innovations” strategy to become the number 1 in customer’s mind with the targeted sales of 4.8 billion baht, an increase of 20% from the year 2012.
“5 Innovations” includes
1. Product Innovation: Beger product development focuses on differentiation under the concept of “Innovation for Better Living” to serve variety of needs which is also practical based on environmental responsibility. At the moment, Beger has more than 30 projects in the pipeline and can be classified into 5 groups including Decorative paint (heat protection product Beger Cool series with microsphere ceramic technology that is used in NASA resulting in completely cool temperature of the house), self-clean paint Beger Shield with Teflon technology that keeps your house beautiful with flood protection, and temperature endurance, air cleaning paint BegerShiled PhotoClean, the first time in Asia-Pacific with Photo Catalyst technology which prevent pollution and keep fresh air in the house, Woodcare products, they are products which nurture Heavy duty Coating + Construction Chemical wood, Industrial and effect paints, Beger Shield Art Effects, is the paint that imported directly from Italy to serve different needs of the customers by reflecting the taste of the owners) All of these products will be introduced consistently to serve the different needs of the customers.
2. Channel Innovation is the development of distribution channels with “Customization” strategy including wholesales, traditional retailer, modern retailer, and projects expert. Moreover, we tend to modernize those of traditional trade shops to become Beger Color Design shops to serve the needs and lifestyle of the customers. The target is to have 1,500 shops in 77 provinces in 2013.
3. Brand Innovation: In the year 2013, the company plans to invest 10-12 % of its sales in marketing including 3 major parts advertising, corporate promotion, and distributor and customer sales promotion along with social activities to cement the position of the innovative brand that is “Not just a paint maker but the Innovation creator”. IMC marketing strategy is employed through different dimensions of advertisements to serve the growing market both in terms of quantity and quality. This year, Beger is focusing on digital marketing including social network and online marketing to serve the needs of digital-age customers. Furthermore, there is also the introduction of Beger’s newest presenter “Khun Bird – Thongchai McIntyre” under the campaign “Beautiful World with Our Hands…Beautiful World with Beger” which has received great feedbacks even before it is on air. The customers realize in our effort through the brand ambassador who is the number one superstar in Thailand with a strong will to “Love the World” similar to Beger products.
4. Service Innovation: Beger service has been developed and expanded to support the market in 2 projects including the setup of Beger Academy, a professional institute to train, provide knowledge, and skills to those who are in the business to be more experienced in delivering the best service to the customers. Those who attend the seminar and trained by Beger Academy will be able to up credit with their institutes in the near future. Also, Beger created Regional Satellite Engineer Services that provide after sales service by engineers with the joint work with local property projects.
5. Social Innovation: This year, Beger still strive to continue its focus to social work through the project “Beger One Wall Creates Smiles”, a good project that Beger set up to revive the spirit of Thai people to smile to each other, be responsible to the society, the environment, and the world. There are 3 main campaigns in the project including “One Wall…Prevent Global Warming with Beger Cool”, “One Wall Keeps the World Clean with Beger Shield”, and “One Wall Protect the Greens with Beger Wood Care”. These projects will be pushed forward in order the build smiles on everyone’s face under the concept of “Beautiful World with Our Hands…Beautiful World with Beger”. Beger would like to thank the efforts of the press, actors/actresses, and the volunteers who join our rides last year including the renovation of Bang Kean Youth Center and the Statue of Democracy with the support from Bangkok Metropolitan Administrator. The schedule of good activities for social will be released soon”.
Finally, Worawat Chaiyosburana, Vice President of Beger Co., Ltd., explained about the overall market and concluded sales promotion activities throughout the year that “The company has set the target of 20% sales growth from the growth of property market and repaint market with the demand of 70%. In the past, the company sales can be divided into 65% from tradition trade, 20% from modern trade, and 15% from project 15%. This year, we will be focusing on modernizing traditional trade shops to become Beger Color Design Center targeting at 1,500 stores covering 77 provinces in Thailand to welcome AEC market with the sales of 300 million baht or 7%-8%. Our marketing strategy, however, will not be focusing much on mass media and marketing as we are still in the process of developing our distribution channels. In addition, focusing on creating brand partnership will be our primary goal.”
From the issue of labor cost increment, the executive stated that “This might affect the cost, but the company has been prepared by fixing some of the costs. However, we have to wait until the 2nd quarter to see how we do. Currently, the company is adapting the production plan by increasing the proportion of automatic machine to reduce the risk of higher labor cost in the future”.
