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Published on August 23, 2007

It's easy to think of cooking rice as a natural talent of Thais. After all, not only have they been at it for countless generations, but these days it's also simply a matter of throwing some rice and water into an electric rice-cooking pot and flipping a switch.

But Chaitip, a medium-sized rice trader and exporter, is not that easily convinced. It has established a Customer Service Department to provide the correct rice-cooking advice to customers, so that they can enjoy the real taste of Thailand's staple food. It's part of a marketing plan aimed at winning back the domestic rice market by returning to its century-old rice-trading image.

Viput Wanglee, assistant to the managing director for sales and marketing, is a key management figure who recalls the renaissance of his family's prestigious farm-goods business after years without energy and attention.

"In 2002, my family thought of returning to the farm-goods business. We saw that local rice trading still had a strong foundation and bright business channels. On the other hand, we believed rice exporting had high risks in terms of exchange and payment," he says.

The Wanglee family established its rice business in Thailand more than 100 years ago. Then it diversified over the past century into many kinds of businesses, including banking, insurance, real estate, hotels and restaurants.

Its rice-trading business moved slowly - even languished - while the other businesses generated more attractive revenues. The rice operation was downscaled further by shutting down four out of a total of five warehouses. Attention was focused elsewhere.

Now Viput, 35, is the spark that has ignited his family's interest in the rice business once again. He is of the fifth generation of the Wanglee family, and is determined to carry his ancestors' rice business back to the forefront of modern trading.

He believes differentiation, brand-building and services are an important strategy to win over the minds of new and existing customers.

Since joining Chaitip in 2004, Viput has drawn up a brand-building strategy to promote its Panomrung brand domestically. He began with a focus-group survey, concentrating on chefs working mainly in Bangkok's five-star hotels. The result showed that most of all, the chefs wanted consistent quality in their cooked rice. That raised an important question for the company: if the company could control the quality of its rice in its warehouse, how could it maintain that quality in customers' storage?

As a result, Viput established Chaitip's Customer Service Department, focusing on both after-sales and customer service. Its staff includes sales agents through to lorry drivers, all of whom have undergone training in rice knowledge, in order to help ensure the safety and quality of the grain from warehouse to table.

As well, the department has created its own rice-cooking formulas to ensure correct advice for cooking all of its rice types. Customers, including hotels and restaurants, are trained in not only the correct cooking methods, but also general rice knowledge.

Viput has also applied a "brand leadership" marketing strategy to promote the company's rice brand instead of focusing on a traditional strategy of "sales leadership". So far, Panomrung's grade-A jasmine and white rice have both swept up five-star hotels on Sukhumvit Road and restaurants on Rama III Road, as well as catering firms.

With only 10 rice products under the Panomrung brand, Chaitip's local customers have increased from just 30 in 2004 to 1,200 today. Last year's sales reached Bt97 million, and it is targeting Bt182 million this year.

"After launching the Panomrung brand in 2005, the company enjoyed significant growth, from more than Bt10 million in 2004 to Bt97 million last year. We plan to achieve 100-per-cent growth within the next five years," Viput says.

Without going into much detail, he says cooking rice is far more complicated than many people think and that professionals should concentrate first on the style of cooking pot they use. In addition, with many rice types and various qualities coming from all parts of the country, the level of water added to the rice is perhaps the most important aspect of the cooking process.

Chaitip's Panomrung brand is currently sold in 50- and 100-kilogram sacks at Makro wholesale stores and by direct sales to hotels, restaurants and catering firms.

Viput is now considering not only the retail market, but capturing hotels upcountry.

The company has spent more than Bt500 million to set up a hi-tech rice mill in Saraburi province. The 200,000-tonne-capacity plant will not only ensure high-quality rice, but also increase the company's rice-export volume.

Viput believes total sales revenues from both local sales and exports will reach Bt800 million this year. He is targeting Bt1 billion next year.

"My goal is to lead the company in achieving Bt2 billion in annual revenues within the next five years," he says.

Achara Pongvutitham

The Nation