Mitsubishi to spend Bt700m on relaunch
Mitsubishi Electric Kang Yong Watana has set a marketing budget of Bt700 million in the hope of boosting sales by 11 per cent to Bt7.5 billion in this fiscal year, from next month to March 2008. The spending aims especially to boost the relaunch of audio-visual products.
Deputy managing director Praphon Potivorakun said the relaunch of the new products would focus more on commercial and industrial groups rather than end-users. The strategy will strengthen the company's competitiveness instead of entering into a price war in promoting products among end-users. Mitsubishi's Data Display Wall is designed for airports, hotels and security service operators while its LCD projector is designed primarily for home entertainment. Last fiscal year, the company reported total sales of Bt6.7 billion. The company also launched a big campaign yesterday called "The 35th Big Thanks" to celebrate its 35-year anniversary this year. The campaign will end on April 1. To support the 10-day campaign, the company set a marketing budget of Bt25 million and expects to achieve sales of Bt300 million. Praphon said that demand for home appliances showed slight growth of 1-2 per cent last year because customers had concerns about political risks, and Thailand's economy also grew only slightly. As a result the company's total sales in the last fiscal year (April 2006-this month) grew only 1 per cent from fiscal year 2005/2006 - lower than its targeted growth of 10 per cent. However, the company believes that the market shows signs of recovery this year because interest rates are being reduced and the country's political situation may be resolved with a new election in the last quarter of this year. "We believe that consumer confidence will return to the market in the second half of this year, and as a result we believe that our sales will meet the targeted growth in this fiscal year," Praphon said. Mitsubishi Electric Kang Yong Watana invested Bt1 billion last year to expand its air-conditioner plant at Amata Industry Estate at Map Ta Phut. The new plant will produce large air-conditioners, up to 30,000 BTU, which will supply both the domestic and export market. Operations will start in the last quarter. Praphon said that large air-conditioners would replace products imported from Japan. "This is the first time for us to produce large air-conditioners for export, boosting our sales in the last quarter of this year," Praphon said.
Somluck Srimalee
The Nation
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