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Published on July 13, 2007

Dumex hopes the new formula and packaging will raise its market share to 29 per cent, from 24 per cent now, overtaking current market leader Enfagro, which has about 27 per cent of the market, marketing director Wanna Swuddigul said yesterday.

The company is also counting on the launches to stimulate growth in the premium segment of the baby milk-powder market and help it achieve sales of more than Bt5 billion with two-digit growth this year.

The new formula, which is said to strengthen babies' immune systems, is being introduced in the Hi-Q Natural ProteQ milk powder for infants up to one year old and Hi-Q Natural Shield for older children.

Meanwhile, the EaZy Pack, being introduced for the first time in Asia, allows mothers to open the pack, measure out the milk powder, store the scoop and close it again more easily than with current packaging.

The marketing plan for the new formula and packaging includes magazine advertisements, out-of-home media, in-store communication and displays, customer-relations management, medical-detailing programmes, road shows (in Bangkok, Chiang Mai and Khon Kaen) and targeted mailings.

Wanna said the milk-powder market, currently worth Bt12 billion annually, had eased since early this year due mainly to the economic slow-down. She estimated the market would grow only 3-4 per cent this year.

However, the premium segment of the market, which is where Dumex operates, is still showing good growth, mainly because players keep introducing new products with innovations and parents are always willing to spend on their children, she said.

Milk powder for children aged one year and up accounts for 55 per cent of the market, Wanna added.

Sixty per cent of the market for baby-milk powder is in the premium segment, compared to only 40 per cent for children's milk powder.

Regarding the Commerce Ministry's approval for increases in the price of milk powder for children, Dumex managing director Christopher Stratton said the company would try not to raise prices of products currently on the market.

Instead, the company will introduce new products with innovations for added value to match higher prices, which will allow it to maintain price competitiveness, he said.

Nitida Asawanipont

The Nation