SCG's Tiger Mortar becomes role model

Balancing the benefits of all stakeholders and realising the value of the aesthetics of its products are among the key factors contributing to the success of Tiger Mortar, which has helped the Siam Cement Group (SCG) increase its sales and differentiate itself from competitors.

Thammasat Business School marketing lecturer Vittaya Charupongsophon said price competition had been fierce in the cement industry because producers had found it difficult to make their products different. This is because consumers do not see the finished product, as concrete is always covered by paint or wallpaper.

"Consumers are not buying the cement, but the wall," he said.

Accepting the hard reality, SCG introduced Tiger Mortar, which takes into account the aesthetic value of the products - or an appreciation of their beauty. Tiger Mortar not only comes in various textures and colours, but offers textures that can be customised, to suit individual tastes.

"In the future, you may even have your face [textured] on a wall," Vittaya told a recent Thammasat Business School seminar entitled "The Corporation of Design", in discussing the success story of Tiger Mortar.

More importantly, he said, Tiger Mortar had satisfied and offered solutions to the problems of all stakeholders.

The lecturer gave as an example the case of a company that introduced mortar to the local market 13 years ago. It failed because masons did not like it. Importantly, contractors also shunned it because it forced them to incur higher costs.

In the case of Tiger Mortar, contractors have been able to save both cost and time, thanks partly to a spraying machine invented locally by SCG that has helped them ease shortages of labour and reduce work delays.

"Earlier, contractors would have to use 15 masons to render 80 square metres of wall per day, but with Tiger Mortar, they can finish 400 square metres per day with only seven masons," Vittaya said. "Furthermore, the cost is reduced from 70 baht per square metre to 50 baht."

Tiger Mortar has offered solutions to all stakeholders, including contractors who faced labour shortages and work delays; consumers who were upset with contractors who abandoned jobs or provided poor work quality; and producers who faced price-cutting problems, he said.

Tiger Mortar has also used "people-centric" and networking strategies. SCG has invested Bt20 million to set up a centre in Saraburi to which contractors can send their masons for free training. It is also building a network with academic institutions and SCG's retail chain subsidiary Cementhai Homemarts, Vittaya said.

Since Tiger Mortar was introduced less than one year ago, its sales have risen 30 per cent, compared with an increase of only 3 per cent for ordinary cement sales.

In recognition of its success, SCG has awarded its best innovation prize to the team that invented Tiger Mortar, and given them Bt1 million in cash.

 Tiger Mortar could be seen as part of SCG's ambitious drive to increase the proportion of high-value products to 50 per cent of its sales by 2015, moving up the value chain from its current main offerings of basic materials and commodities.

Thammasat Business School researchers have been promoting their "ATP + Hodtren" concept as a formula for corporate success. ATP stands for aesthetics, technology and process, while Hodtren is an acronym for human-centred, observation in context, design, research and development, term of integration, rapid prototyping and external networking.

pichaya@nationgroup.com