Kratingdaeng aims to expand through music events

The company makes the Kratingdaeng (Red Bull) energy drink.

The strategy has been adopted because the economic downturn has affected the spending power of especially industrial workers, many of whom have been laid off. This category is considered the major target for energy-drink firms.

"Sales [of the Red Bull brand] in overseas market are still satisfactory, but those in the domestic market recorded a drop in the first two months of the year," marketing manager Sanit Wangvichar said yesterday.

After seeing negative signs since early in the year, he said, the company decided to extend into new market segments such as youths, in particular university students, and drivers in order to compensate for lower sales in the workers' segment.

Red Bull, the global market leader in energy drinks, sold a combined 3.5 billionbottles and cans in 148 countries last year.

For the Thai energy-drink market, he said, the company was satisfied with 5-per-cent sales growth last year, beating the average industry growth of 1 per cent.

Last year, the local market for energy drinks was worth Bt15 billion, about 15 per cent of which was held by Kratingdaeng. The market leader was the M100 brand, with a share of 25 per cent.

Sanit said the company had set a marketing budget of not more than 10 per cent of total sales this year. It plans to hold seven music events in seven provinces.

The biggest event - "KTD Thailand Rock Festival On The Beach" - will be held at Had Yao, Sattahip, on March 28-29. The ticket price is Bt800.

Sanit said the company expected domestic Red Bull sales to be about the same as last year. "We have projected our sales conservatively, given the unfavourable situation," he added.

When asked about the excise tax that the government is reported to be considering for coffee and tea and energy drinks, he said energy drinks were already subject to duty of 20 per cent.