Pigeon seeks to boost its market leadership


Moongpattana marketing executives hope to achieve growth of 10 per cent this year.
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Moongpattana Marketing, exclusive distributor of Pigeon mother-care products, has set a marketing budget of Bt20 million to boost its sales by up to 10 per cent this year.
Niramai Luksananant, vice president of the marketing and sales department, said yesterday that the mother-care market had continued to be highly competitive despite political uncertainty last year. The market was valued at Bt700 million, of which 5 per cent belonged to super-premium products, 61 per cent to premium and standard, and 34 per cent to economy. Continuous yearly growth, especially in the premium segment, can be attributed to increased competition from new players. Premium products will continue to remain popular, Niramai said. The company's sales of Japanese-made Pigeon products grew by more than 15 per cent last year, with Pigeon the market leader with a share of over 54 per cent in the mother-care product segment - up from 51 per cent the previous year. The company is also preparing to maintain its market leadership by expanding the Pigeon product portfolios and reaching out to markets in the provinces through integrated media campaigns. "As for the trend in 2007, the mother-care market is expected to continue growing, in contrast to the decline in the birth rate. Products within the premium and standard categories are predicted to remain robust, while cheaper products will experience a slump in growth because modern mothers are more into quality and branding," he said. Niramai added that Pigeon enjoyed competitive advantage over rivals because of quality and reasonable pricing. The products are also trusted by consumers for helping children to develop, he said. Baby accessories are expected to lead industry growth. "Despite the continuous decline in the annual birth rate by an average of one per cent, mother-care product manufacturers and distributors continue to compete intensively, using techniques and strategies to motivate higher sales," Niramai said. "Several players offering premium products now resort to pricing strategy and special campaigns to secure a market share throughout the year. As for Pigeon, we believe modern parents are focusing on both looks and quality, along with adequate product variety to cater to different needs." Marketing manager Methin Lersumitkul said the company planned to maintain the position of Pigeon products as specialists in promoting child and infant development. The company is targeting modern mothers, namely, working women raising children while building a career. About Bt20 million is earmarked to fuel more aggressive marketing campaigns leading to stronger brand loyalty amid fierce competition from a number of new and old players, which has significantly driven up the number of product choices for consumers. Other strategies include expanding to the provinces; above-the-line advertising and public relations campaigns through leading media such as newspapers, magazines, television and radio, and especially mother-care publications; and below-the-line programmes, including continuous sales promotion to sustain high brand awareness. Methin said the company would focus on product differentiation by offering better quality and variety against the competition, along with new product introductions. It will increase imports of new products from Japan.
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