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

17%

13%

70%

Tao-Kae-Noi
Seleco
Machita,Uni,D
aiso, 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

Product:
Korean
Seaweed
Marketing
Campaign:
Using Korean
actors and
singers as a
brand

Marketing
Campaign:
Interactive :
youtube and
facebok

Competitor analysis: Onori

Product:
Japanese
Seaweed

Marketing
Campaign:
Below the line:

Above the line:
TVC, printed
media, etc

Marketing
Campaign:
Interactive:
Facebook and
Onoris own
website

Marketing
Campaign:
Promotion: buy
one Oishi to get
free Onori

Porters Five Forces

Porters Five Forces

Competitive 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

Porters Five Forces

Supplier 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

Porters Five Forces

Threat of Substitute Products
Seaweed snacks are easily substituted
Low-involvement products that only
required nominal decision making
Threat of substitute product is high

Porters Five Forces

Threat of New Entrant
Market has low entry and exit barrier
High threat of new entrant

Porters Five Forces

Buyer 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
Export tao kse noi in the in Asia
Hongkong, Macau, Taiwan, Malaysia, Singapore,
Indonesia, Vietnam
In 2007
60% are exported
In 2011
50% are exported
Due to focus on
competitive in
Thailand

Thailand

Slogan of


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

Tao Kae Noi is too

dependent on the
owner
Low switching cost
Product not diversify
Seaweed for some
countries is not that
common

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
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

S
O

W
T

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.

Marketing Strategies Analysis

Brand Positioning
1. Competitive frame of reference target consumer

Teenagers

Age: 4 35 years
old

Employees

Price: 5 40 baht

Brand Positioning
1. Competitive frame of reference main competitors

Brand Positioning
2.1 Points - of parity

Quality
Flavors
Packaging design

Brand Positioning
2.2 Points - of difference

Owner of the
brand
First
successful
seaweed
Offers all types of seaweed
snack
snack
Marketing
campaign

Brand Portfolio analysis

1. Fried Seaweeds Crispy Seaweed
85 g., 40 g., 20 g.
Original, Hot &
Spicy, Tom Yum Go
ong, Tomato Sauce
, Wasabi, Seafood,
and Pizza

Brand Portfolio analysis

1. Fried Seaweeds Big Sheet
4 g.
Classic, Spicy,
Japanese Sauce, Pi
zza, Seafood

Brand Portfolio analysis

1. Fried Seaweeds Big Sheet Pocket

40 g.
Classic, Spicy

Brand Portfolio analysis

4. Grilled Seaweeds Super Crisp

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

Brand Portfolio analysis

4. Grilled Seaweeds Big Bang

6 g., 30.6 g., 60 g.

Classic, Spicy
Grilled Squid, Hot
& Spicy

Brand Portfolio analysis

4. Grilled Seaweeds With Rice Crisp
24 g., 30.6 g. 51 g.
Original Flavor

Brand Portfolio analysis

3. Roasted Seaweeds Extra Sheet

16 g.
Original Japanese
Sauce, Garlic

Brand Portfolio analysis

3. Roasted Seaweeds Korean Style
4 g.
Classic

Brand Portfolio analysis

2. Tempura Seaweeds

25 g., 36 g., 40 g.
Original Style,
Spicy, Tempura Shr
imp

Brand Portfolio analysis

5.Other products
- Norimaki
- Fish Snack
- Paul Squid
Cracker

Competitor Portfolio analysis

1. Onori

Competitor Portfolio analysis

2. Seleco

Competitor Portfolio analysis

3. Masita

BCG

Current marketing programs

New Perspective Marketing

Experiential Marketing
Interview of Tao-Kae-Nois owner

Current marketing programs

New Perspective Marketing
Permission Marketing
Think of Seaweed, Think of Tao Kae
Noi advertising
Free sample

Traditional marketing programs

Product Strategy
Perceived quality and value
Functional product performance
Features, Reliability, Durability
Performance > Perceived Value

Brand intangible
Brand reputation, brand personality
Owners Reputation

Traditional marketing programs

Price Strategy
Different sizes = different prices >
capture different target market
5-60 Thai baht

Traditional marketing programs

Place or Channel Strategy
Indirect Channel
Convenient store ex. 7-11
Aboard

Direct Channel
Tao-Kae-Noi Land

Traditional marketing programs

Promotion Strategy
Advertising
Print advertising
Interactive
Place advertising

Publicity

Traditional marketing programs

Promotion Strategy
Promotion
Customer franchise building program
Flip the Cards game

Traditional marketing programs

Promotion 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, TaoKae-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 productline 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