TAC is targeting one Scandinavian country as well as France and Switzerland, and is currently negotiating with prospective sole distributors there.

Theerawat said ZenYa uses "the colorful green tea" concept to build its brand, giving it a fashionable look in the green-tea market because of its five colours, offering five different flavours. Consumers in the target countries are also attracted to fashionable products.

He said the green-tea markets in Scandinavia and Europe are still in the early stages, unlike those in Japan and South Korea, which have already reached maturity. Therefore, TAC sees a good opportunity to build ZenYa's brand awareness in the three new markets, linking its fashionable look and its good nutrition with local consumer behaviour.

Last February, the company penetrated the green-tea markets in South Korea, Cambodia and India.

In South Korea, where the green-tea market has been mature for many years, consumers mainly prefer brands with a clear benefit to their health, rather than those with attractive flavours, like Thai products. Therefore, success in Korea continues to be a big challenge.

On the other hand, the markets in Cambodia and India's are still in their early stages, much like those targeted in Scandinavia and Europe. Cambodian and Indian consumers still prefer black tea, Theerawat said, so the opportunity for TAC to build awareness there is about the same as that in the new Western markets.

To build brand awareness, the company will apply the same marketing strategies as those in Thailand, including promotions and advertising through various media channels.

The company's overall marketing budget for current international markets this year is Bt2 million.

TAC began marketing ZenYa in Thailand in August 2005 and currently holds a 4 per cent share of the local green-tea market, which is valued at Bt4 billion.

Next year, it expects to achieve a 10 per cent market share. The company plans to accentuate its "colorful green tea" concept. Previously, it had three green-tea flavours - original, super lemon and pomegranate - featuring green, yellow and red packages. Recently, it launched two new flavours - pomegranate and berries, and wild berry - with blue and pink colours.

Theerawat said the variety of green-tea colours on shelves will help its target customers, aged between 18 and 25, grasp a clearer picture of the concept. Its advertising next year will also focus on the fashionable look.

He said TAC is not a big company and doesn't have big marketing budgets like its competitors Oishi, Unif and Moshi. Moreover, many other players have stressed the health benefits of green tea, with some using an emotional marketing strategy. Therefore, TAC has settled on its colourful look to make ZenYa different from the other brands.

TAC has set aside Bt40 million for marketing next year, up from almost Bt30 million this year.

Theerawat believes TAC will achieve sales of Bt250 million this year. Of this, Bt140 million will come from ZenYa and the rest from tea-with-milk products selling in Seven-Eleven convenience stores.

The rise of fruit juices this year, led by Splash orange juice, hasn't affected ZenYa sales because all of the products have fruit ingredients.

Next year, TAC expects sales to reach Bt300 million. However, Theerawat believes the green-tea market will not grow in 2007 because oil prices will increase again after a period of decline and consumers won't spend more on green tea, partly because of the government's sufficiency economy philosophy. Some people, he said, regard green tea as an unnecessary product.

TAC plans to launch two new flavours during the second half of next year.

Nitida Asawanipont

The Nation