Tao Kae Noi Presentation

By:…..

Industry Analysis

Market Background• Market value – 12,000 Million Baht• 4 Main segment• 30% potato chips (3,600 Million Baht)• 30% other chips (3,600 Million Baht)• 30% seaweed snacks (3,600 Million Baht)• 10% fish snacks (1,200 Million Baht)

Seaweed Market Share

70%

13%

17%

Tao-Kae-NoiSelecoMachita,Uni,Daiso, etc

Market Demand• Average consumption person/year

• Thailand 6 pieces

• Japan 60 pieces

• Korea 140 pieces

Economic• Problem 1• Cost increase

• Solution 1• Innovating manufacture new product with lower cost

• Issue• People spend less on non needed product

• Counter • People have no time for fresh cooked, spend more on

ready to eat product

Competitor Analysis

Competitor analysis: Seleco

Product:“Roasted Seaweed”

Marketing Campaign:

•Discount promotion

•Sponsor school activities

Competitor analysis: Masita

Marketing Campaign:• Using Korean actors and singers as a brand representative

Product:“Korean Seaweed”

Marketing Campaign:

• Interactive : youtube and facebok

Competitor analysis: Onori

Product:“Japanese Seaweed”

Marketing Campaign:

•Below the line: ตู้��คี�บยั�กษ์�เงิ�นแสน•Above the line: TVC, printed media, etc

Marketing Campaign:

•Interactive: Facebook and Onori’s own website

Marketing Campaign:

•Promotion: buy one Oishi to get free Onori

Porter’s Five Forces

Porter’s Five ForcesCompetitive Rivalry• Intense competition between seaweed snack brands•There are many seaweed snacks available (high substitution)•Buyer has a high bargaining power

High competitive rivalry will lead to price war, investment in innovation & new products, intensive promotion

Porter’s Five ForcesSupplier Power• Fresh seaweed are mainly imported from Korea, China, and Japan.•Fresh seaweed is an agricultural product• Difficult for the supplier to enter seaweed snack market due to limitation in technology know-how, distribution network, etc.

Supplier power is low

Porter’s Five ForcesThreat of Substitute Products•Seaweed snacks are easily substituted•Low-involvement products that only required nominal decision making

Threat of substitute product is high

Porter’s Five ForcesThreat of New Entrant• Market has low entry and exit barrier

High threat of new entrant

Porter’s Five ForcesBuyer Power

•Difficult to differentiate between seaweed brands•Low price low switching cost

High bargaining power for consumers

Company Analysis

Company Background

• Mr. Itthipun Kulpongwanit • online-game addict• Selling chestnut.• Established in 2003. • Distribute to 7/11• Main industry in Bangbuathong

Export

• In 2007– 60% are exported

• In 2011– 50% are exported– Due to focus on

competitive in Thailand

• Export tao kse noi in the in Asia– Hongkong, Macau, Taiwan, Malaysia, Singapore, Indonesia,

Vietnam

Thailand• Slogan of “ถ้�าเป็�นส่าหร่ายต้�องเถ้�าแก่น�อย”

• 2011 – Revenue of 2,000

million– 70% from domestic– 30% from export

• Many distributions channel– Modern trade– Traditional trade– Tao Kae Noi Land– Vending machine

Company Background

SWOT• Have their own R&D department• Innovators of packaging• Strong Brand Entity• Market leader • Many distributions channel to cover the

market• First mover• Many product offering

• Tao Kae Noi is too dependent on the owner

• Low switching cost• Product not diversify• Seaweed for some

countries is not that common

• The healthy snack trend is so popular nowadays in Thailand, which Tao Kae Noi is one of those kinds.

• To expand the international market

• Chance to diversify product into other type of snack

• There are several brand of seaweed, which is the second mover after Tao kae noi and have lower price for example, Machita.

• Environmental threat • Global business recession.

S WO T

Marketing Strategies Analysis

Brand Positioning

1. Competitive frame of reference – target consumer

Teenagers Employees

Age: 4 – 35 years old Price: 5 – 40 baht

Brand Positioning

1. Competitive frame of reference – main competitors

Brand Positioning2.1 Points - of – parity

•Flavors

•Quality

•Packaging design

Brand Positioning2.2 Points - of – difference

•Owner of the brand

•First successful

seaweed snack •Offers all types of seaweed snack •Marketing campaign

Brand Portfolio analysis1. Fried Seaweeds – Crispy Seaweed

• 85 g., 40 g., 20 g.• Original, Hot & Spicy,

Tom Yum Goong, Tomato Sauce, Wasabi, Seafood, and Pizza

Brand Portfolio analysis1. Fried Seaweeds – Big Sheet

• 4 g.• Classic, Spicy, Japanese

Sauce, Pizza, Seafood

Brand Portfolio analysis1. Fried Seaweeds – Big Sheet Pocket

• 40 g.• Classic, Spicy

4. Grilled Seaweeds – Super Crisp

Brand Portfolio analysis

• 12 g., 24 g.• Hot Chili Squid, Kimchi,

Classic

4. Grilled Seaweeds – Big Bang

Brand Portfolio analysis

• 6 g., 30.6 g., 60 g.• Classic, Spicy Grilled

Squid, Hot & Spicy

4. Grilled Seaweeds – With Rice Crisp

Brand Portfolio analysis

• 24 g., 30.6 g. 51 g.• Original Flavor

3. Roasted Seaweeds – Extra Sheet

Brand Portfolio analysis

• 16 g.• Original Japanese

Sauce, Garlic

3. Roasted Seaweeds – Korean Style

Brand Portfolio analysis

• 4 g.• Classic

2. Tempura Seaweeds

Brand Portfolio analysis

• 25 g., 36 g., 40 g.• Original Style, Spicy,

Tempura Shrimp

5.Other products

- Norimaki- Fish Snack- Paul Squid Cracker

Brand Portfolio analysis

1. Onori

Competitor Portfolio analysis

2. Seleco

Competitor Portfolio analysis

3. Masita

Competitor Portfolio analysis

BCG

Current marketing programsNew Perspective Marketing

• Experiential Marketing– Interview of Tao-Kae-Noi’s owner

Current marketing programsNew Perspective Marketing

• Permission Marketing– Think of Seaweed, Think of Tao Kae Noi

advertising– Free sample

Traditional marketing programsProduct Strategy• Perceived quality and value– Functional product performance• Features, Reliability, Durability• Performance > Perceived Value

– Brand intangible• Brand reputation, brand personality• Owner’s Reputation

Traditional marketing programsPrice Strategy

• Different sizes = different prices > capture different target market

• 5-60 Thai baht

Traditional marketing programsPlace or Channel Strategy• Indirect Channel– Convenient store ex. 7-11– Aboard

• Direct Channel– Tao-Kae-Noi Land

Traditional marketing programsPromotion Strategy• Advertising– Print advertising– Interactive– Place advertising

• Publicity

Traditional marketing programsPromotion Strategy• Promotion

– Customer franchise building program• Flip the Cards game

Traditional marketing programsPromotion Strategy• Promotion– Non Customer franchise building program• Price Promotion

Recommendation

Recomendation• Strong association between “seaweed” and

Tao-Kae-Noi– The association is too strong– For products that are not related, Tao-Kae-Noi

should introduce different brand name

Recomendation• Maintain and improve brand image– Maintain the strong and favorable associations• Taste and brand name

– Differentiate the “homogeneous products” through Image ads.– Try to project and symbolize what the brand is about

other than selling the functional aspects of the products.

Recomendation• Aim at new potential segments– Tao-Kae-Noi existing customers are mostly young

adults– Have opportunity to extend the product-line and

aim at different segments• To gain additional revenue• Increase market coverage

– Tao-Kae-Noi “Roasted seaweed” and the elderly

Recomendation• Be aware of the social networks– A cheap and effective marketing tool• Reach potential customers• Can provide real time feedbacks/ interactions with the

customers

– Tao-Kae-Noi must use this tool to its maximum potential

Recomendation• Be aware of the social networks

Recomendation• Maintain and strengthen the position of Fried

seaweed • Invest in different areas• Marketing communications• Logistic• Research and development

Recomendation• There are two options for Grilled seaweed• Either invest a lot of money to stimulate

and improve market share• Or minimize investment and harvest

whatever revenue (8.03%) it generates• Minimize risk

Recomendation• Harvest money from the cash cow• Investment requirements should be low

since there is little to no market growth• Invest only to make sure that the Roasted

seaweed stay as a cash cow

Recomendation• Slowly divest the Tempura seaweed• Harvest whatever revenue it generates• Stop investing money• Slowly fade out to minimize impacts

Thank you