Teen idols carry Osotspa through doldrums

In an attempt to cling to its sales-growth targets in the current sluggish economic conditions, conglomerate Osotspa is pouring money into what it calls an "idol advertising strategy" by hiring teenage heartthrobs as presenters for its personal-care products.
So far this year, the company is falling short of its target of 10 per cent and has grown only 7 per cent. However, marketing director Vichien Santimahakullert said the heartthrob presenters, combined with other heavy marketing promotions, would bring the company's growth back on track. The new strategy began over the past few months with the launch of its 12 Plus Extra Cool Cooling Powder. With Korean actor and singer Choi Si Won as its presenter, sales of the new product have lifted Osotspa's share of the cooling powder market by 3 per cent, from 19 per cent to 22 per cent. The target group for 12 Plus is males between the ages of 12 and 18. Yesterday, Osotspa launched another product - 12 Plus Extra Whitening Roll On Fruity Almond Milk - targeting the same group and using the same strategy. This time, Sakolrat (Four) Woraurai and Chutimon (Mod) Chairat, together making up the Four-Mod band, are employed as presenters. Vichien said that using highly popular presenters had helped significantly in boosting the company's sales when many markets in the consumer products industry were experiencing negative growth. Osotspa has four main product groups: consumer products, Namacha brand green tea, M100 brand energy drink and medicines. The company's consumer products are feeling significant effects from the economic slowdown, with cologne and body spray most affected, Vichien said. These products are expected to see 10-per-cent negative growth. Consumers usually use colognes and body spays when they meet friends or travel, but they are meeting friends and travelling less than before, he noted. Even roll-on deodorants, which many manufacturers claim have become a necessity of life, are expected to suffer negative growth of 5 per cent, he said. However, Osotspa still holds second place in the Bt1.03-billion roll-on market, with a 19-per-cent market share, behind Nivea, which leads the market with 30 per cent. As well, Osotspa leads the market for the teenage roll-on segment. Vichien said Osotspa may hire popular presenters to help boost sales of other products. However, it will wait to see if there is any recovery in consumers' confidence and spending habits before making any decisions. He is hopeful that economic conditions will improve in the second half of this year. He revealed that in order to achieve 10-per-cent sales growth for its consumer-product group, Osotspa had set aside a marketing budget of Bt1 billion, 20 per cent more than last year. Of this, the 12 Plus products have required only Bt400 million.
Nitida Asawanipont The Nation
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