S&P shifts ad and marketing strategy
restaurant chain S&P Syndicate Plc plans to change its advertising and marketing strategies after experiencing a 10-per-cent drop in customers since early this year.
President Pravesvudhi Raiva said the company had in the past focused on stimulating spending per bill and had not paid attention to formulating a marketing strategy to attract new customers. With many negative factors impacting the economy, S&P had been hit by a decrease in the number of customers. However, average spending per head has increased from Bt150 to Bt160. S&P will change its strategy to attract new customers by promoting its brand through various media. Pravesvudhi said S&P would increase the proportion of above-the-line marketing budget from 40 to 50 per cent and decrease below-the-line budget by 10 per cent. The former covers media advertising, while the latter includes promotional activities and events. It allocates three per cent of annual sales as its advertising and marketing budget. Last year, it generated Bt3 billion in sales. S&P's business is separated into three: food, bakery, and other businesses such as domestic and exported frozen ready-to-eat food. Sales from food and bakery each represent 40 per cent each of sales. With the advertising and marketing adjustment, S&P hopes to see 15-per-cent sales growth this year, according to Pravesvudhi. S&P's vice president for sales and marketing, Surat Senviboon, said the company had begun exporting frozen ready-to-eat food to the United States using the Quick Meal brand five years ago, expanding to Australia last year. This year, it plans to penetrate the European market, beginning with the United Kingdom. He said exports represented 10 per cent of overall sales of frozen ready-to-eat food last year. Asian communities in those countries are its main distribution channel. It offers 10 menu items for the international market and over 20 for the domestic. Surat foresees a high possibility for S&P to double its domestic and international sales this year as the company still has a small base in a huge market. S&P's plan next month is to launch another frozen ready-to-eat food - via the Delio Testing Meal brand - in a bid to provide more product variety.
Nitida Asawanipont The Nation
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