Arnut Changtrakul introduces new Samsung electronic products that the company hopes will bring it local sales of Bt11 billion this year.

The bold plan belies the gloomy prospects seen by other players, who are expecting growth of less than 10 per cent.

Deputy managing director for consumer electronics and IT operations, Arnut Changtrakul, said the marketing splurge was aimed at lifting company sales to Bt11 billion, from last year's Bt8 billion.

Sixty per cent of the marketing budget, or Bt600 million, will be spent on below-the-line activities like event marketing, road shows featuring its products and joint promotions with its "executive dealers", which now number 70 around the Kingdom.

The rest will be spent on more conventional advertising, such as television commercials.

The company's product focus will be on new innovative products in the areas of audiovisual products and digital home appliances.

"Market growth in audiovisual products and digital home appliances is expected to be only 9 per cent this year for a total market value of Bt85 billion. That's Bt50 billion for audiovisual products and Bt35 billion for digital home appliances," Arnut said. "Our sales target is for higher growth than the rest of the market, because we have changed our customer target from the middle market to the upper market, and these customers are not sensitive to slow economic growth."

While other electronics companies are expecting growth of less than 10 per cent, Samsung is raising its sights higher. Arnut argues that demand for premium products has shown strong growth since last year, particularly for high-definition LCD televisions, high-definition SlimFit televisions, side-by-side refrigerators, washing machines, air-conditioners and air purifiers.

Company research has found that sales of LCD televisions doubled last year, while sales of conventional sets fell 13 per cent. Likewise, sales of side-by-side refrigerators doubled, while sales of single-door models dropped 22 per cent.

Arnut said his company would boost its sales of premium products from last year's 40 per cent of total sales to 50 per cent and strive to have its brand recognised for premium products.

To meet this goal, Samsung will launch more than 20 premium products this year in the audiovisual and digital-home-appliance segments.

It will also focus on corporate customers, including real-estate developers and furniture firms, as well as strategic product placements at premium locations like five-star hotels and luxury showrooms.

Arnut said the company plans to increase its number of corporate customers from last year's 10 per cent of total customers to 30 per cent. The remaining 70 per cent will come from the retail market.

"Our marketing concept will focus on 'premium', and that will create both a new market and a new brand awareness among our customers, changing from cheaper products to premium products," he said.

Meanwhile, the company will expand its marketing efforts from the greater Bangkok metropolitan area to upcountry, because demand for home electronic products in upcountry markets showed strong growth last year, and that growth is continuing, Arnut said.

"Purchasing power with which to buy premium products upcountry is as high as it is in Bangkok."

At present, Samsung has 300 dealers around the Kingdom, 70 of which have been developed as "executive dealers", creating a new distribution channel aimed at achieving the company's Bt11-billion sales target for the year.

Somluck Srimalee

The Nation