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Published on February 27, 2008

The company has already started with its cologne by introducing a 15-millilitre pocket size, compared with the standard 45ml size before. It also plans to introduce larger packages for its liquid detergents to expand the usage period for housewives.

Consumer products have become sensitive over the last few years, with the country experiencing an economic downturn while manufacturing and operating costs have risen steadily. Many manufacturers have not been able to bear the rising costs and have gradually increased prices, while many other products are being listed on the Commerce Ministry's price-control list.

Osotspa has also had to shoulder rising costs but considers that this period is not a good time to increase prices, because consumers remain worried about their financial stability. Conducting such a stable policy should maintain strong loyalty among its targeted customers.

"Consumers' purchasing power has not recovered yet in the first quarter. It should start recovering by May or June," said marketing director Vichien Santimahakullert.

However, he did not think marketers would offer heavier special promotions than last year.

He said Osotspa wanted to wait and see how effective the new government's populist policies would be. The company is also worried about the government's stability, because some members still have problems with lawsuits related to last December's general election. Another worry is whether the government can effectively work with various political parties.

Osotspa wants to be sure the country's gross domestic product grows more than 5 per cent and may review its policy again in the second half of the year.

Osotspa expects sales contributed by its consumer products this year to grow 8 per cent from last year's Bt5 billion. The targeted growth rate, however, is less than the 10-per-cent growth it achieved last year.

Somchai said the whole economy should start to revive in another six months, once the government has settled in.

The company has allocated Bt400 million for marketing and advertising all of its consumer products this year.

Nitida Asawanipont

The Nation