The new regrouped units will consist of Central World, Central Plaza, Central Town, Central Festival, Corporate Marketing and Marketing Service.

The move was initiated by CPN executive vice president Chanchai Phansopha, a former director and business strategist at Microsoft (Thailand) Ltd.

Chanchai is responsible for marketing strategies and overseeing the company's retail image.

He said the overhaul plan was expected to be completed within five years, but the foundation of marketing strategies, including customer-relations management and online marketing, would be finished within the next six months.

"Regrouping operational units will help the company focus on its targets," said Chanchai.

He said the overhaul was part of an effort to prepare CPN, already the No-1 retail developer in Thailand, for another big stage of development, in both Thailand and elsewhere in Asia.

Some of the six teams are also studying investment in the international retail market.

They are also studying the best investment formats in targeted markets.

That includes whether to invest solely in a company, invest jointly with local partners or buy existing businesses.

Chanchai, however, declined to reveal more details.

Splitting into six segments will require CPN to spend hundreds of millions of baht, mainly on recruitment for all six new units.

Chanchai has introduced a change of focus at CPN. Formerly, the company placed equal importance on all work, but Chanchai has set a strategy of using marketing to lead all ventures.

He wants to adjust the atmosphere of all Central malls, so they have a more international look and yet possess a tailored atmosphere and marketing to serve specific groups of customers in each branch.

Chanchai, however, declined to reveal more details on the corporate image-adjustment plan.

In the short term, Chanchai has already increased CPN's marketing budget for this year's second half, but he declined to reveal how much more.

One of the marketing activities will be Central Plaza's annual sale, which is scheduled to start next Wednesday and run to July 2.

The event features discounts of up to 70 per cent offered by more than 1,000 tenants at 10 Central branches nationwide.

The company is joining hands with its six strategic partners - DTAC, Siam Commercial Credit Card, Citibank Credit Card, HSBC Credit Card, OK Cash Card and the Expressway and Rapid Transit Authority of Thailand - to offer shopping privileges.

For instance, customers will have a chance to buy a Honda Jazz at a 70 per cent discount.

The activity requires a Bt40-million investment, of which 60 per cent will be used to build greater awareness and the rest for marketing.

CPN expects its tenants to see an 80-per-cent increase in sales, while Central Department Store expects to see a 20-per-cent increase.

Chanchai said details of strategies of the six departments might be revealed in September.

Central is Chanchai's first retail company.

He formerly spent 16 years setting marketing strategy for five IT companies, including Microsoft and Intel.

He said marketing for the retail and IT industries were no different from each other, because they shared the same working foundations.

Nitida Asawanipont

The Nation