Formula-maker eyes growth


Youngster s pose for a picture after presenting new powdered milk S-26 Progress Gold for children aged one year and above, yesterday.
|
|
Wyeth-Ayerst (Thailand) Ltd, a US nutritional and pharmaceutical product maker, is gearing up to spend Bt300 million marketing its powdered milk for infants.
The company hopes the campaign will help it take a bite out of the leadership position of Meed Johnson in the Bt8.5-billion powdered milk market for infants up to three years old. Viriya Chongphaisal, Wyeth-Ayerst's managing director, said that the company will spend its budget on advertising its one-year-old S-26 Progress Gold through media outlets particularly television and arranging marketing activities. It will also arrange learning events that will bring families with young children together. The company expects the effort to boost sales to Bt2 billion this year, 20 per cent more than in 2005, when sales grew 50 per cent from 2004. Wyeth-Ayerst has a 25-per-cent share of the children's powdered-milk market, according to Viriya. Meed Johnson is the market leader with 40 per cent market share followed by Dumex and Wyeth-Ayerst in third. To achieve the top position, the company plans to allocate 20 per cent of its expected sales each year to marketing. The powdered-milk market is categorised into three segments consisting of powdered milk for children aged one year old and above, which accounts for 40 per cent of the market; for babies six-months old to one year, which accounts 20 per cent; and for new-born babes to six months old, which accounts for the rest. Premium powdered milk accounts for 30 per cent of the total market. Viriya said powdered milk for the one-year-olds and above seems to have the best growth rate and the market is expected to grow 10 per cent this year. He said the negative economic conditions had not affected powdered milk sales, arguing that parents only wanted the best for their kids.
Nitida Asawanipont The Nation
|