Turning Today’s Top Franchising Challenges Into Franchising Gold
MARKET PRODUCT RECENT DEVELOPMENTS …thailand.superbrandsmena.com/pdf/pdffile1452171178.pdf · z...
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50 MARKET S. Khonkaen Foods is engaged in the agro-industry but is self-integrated. Their mission is to market Thai foods aacross the globe. Today, the company’s food products, including Vietnamese sausage, fermented sausage, Thai-style sausage and seafood balls etc have been marketed nationwide, gaining a market share of over 70% in the modern trade outlets in Thailand and have been exported across three continents namely America, Europe and Asia focused in Hong Kong and part of the People’s Republic of China. The next target markets will be Australia and Africa. However the company aims to export Halal-certified chicken and sea food-based snacks to the Middle East in the not too distant future. Since the company carries many categories of food stuff the practice of applying multi-brand strategies is a must. S. Khonkaen brand is the name of the company, as well as the brand name of the product itself. All processed meat products marketed under the name of S. Khonkaen are positioned to be premium grade products. Since this brand is recognised nationwide as well as being internationally well-known, this brand has served as an endorser for those brands marketed under the umbrella of “S. Khonkaen” Brand, for instance one snack food is branded Entrée, seafood balls are branded “Chiu chow” and stewed pork leg is branded as “Yunnan”. ACHIEVEMENTS l 1987 Manufacturer of the Year (medium size factory) awarded the Ministry of Industry. l 1988 Outstanding Product Award given by General Chartchai Choonhawan, the Prime Minister of Thailand. l 1991 Marketing Award for best practice in marketing consumer goods during 1990-1991 conducted by Thammasat University and Thailand Management Association. l 1991 First prize in Chinese sausage in the category of Processed Meat Product Contest at Kaset Food Fair 1991 organised by Kasetsart University and The Ministry of Agriculture and Cooperatives. l 1993 The Company’s CEO was awarded the Golden Junk Prize as Model Businessman of the year 1993, in the category of agriculture. l 2011 Selected and approved to use the Thailand’s Brand Product Logo by The Ministry of Commerce as a symbol of a high quality exported brand. l 2012 The Company’s CEO was conferred Royal Doctorate Degree in Food Science and Technology. l 2014 The Company’s CEO was awarded APEA 2014 prize as Outstanding Entrepreneur of Asia Pacific Region in the category Asia Pacific Entrepreneurship. HISTORY S. Khonkaen Foods Public Company Limited was founded in 1984, by the Rujirasopon family, under the name S. Khonkaen Food Industry Company Limited and it started as a merchandiser, sourcing North-eastern style meat products from Khon Kaen to market in Bangkok. Khon Kaen is a province situated in the north- eastern part of Thailand, where piggeries were abundantly found as in nearby provinces. Khon Kaen is quite outstanding and is renowned for making delicious and quality products of this nature but then almost all the meat processors were cottage industries. Since then, S. Khonkaen had sourced those native meat products from Khon Kaen to sell to supermarkets in Bangkok. It proved tremendously successful and there was a strong request from market places that a daily delivery for perishable foods is a must. For quality reasons and cost efficiency on transportation, S. Khonkaen had to set up a production base in Samut Prakan, a province next to Bangkok. In order to accomplish the company’s mission to bring Thai native foods to global markets, a constant inflow of capital and funds is compulsory so the founder decided to have the company listed on the Stock Exchange of Thailand, in 1994, and turned public in 1995. After listing, the company started to expand and diversify into processed seafood business such as seafood balls, which also proved quite a success. Today, S. Khonkaen’s fish balls have been exported to many continents, namely America, EU, Australia and Asia. The company further diversified into meat-based and seafood-based-snacks for global markets as well as Halal certified chicken snacks for markets in the Middle East and all Muslim countries. In 2009, the company took over a frozen meal factory, and today they are making Ready- to-Eat meals supplying to all leading convenience stores and supermarkets. Furthermore, to cope with the lifestyle of consumers in major cities, the company also operate two chains of quick service restaurants under the brands of “Yunnan”, serving Chinese cuisine with 31 outlets in Thailand, two in Vientiane and some more will be coming up in Phnom Penh - and “Zaap Express” with six outlets serving Thai Northeastern style cuisine. To further attain its mission, in 2008, the company set up a production base in Poland to serve Thai native meat products for markets in the EU and later shifted to Holland which is run by the company’s subsidiary named S. Khonkaen Foods (Netherlands) B.V. PRODUCT Traditional Thai Food Traditional Thai food is one of the company’s core businesses. They are the first product group since the company has started commercially. Products under this category comprised of dried and fresh products include Shredded Pork, Crispy Pork, Chinese Sausages, Thai Sausages, Fermented Sausages, Vietnamese Sausages, Pork Balls etc. Meat-based-snacks Under the same vision of traditional Thai food brought up to date, the company has developed new lifestyle meat-base-snacks which are tasty and healthy, cooked under a special and home-made recipe. There are comprised of Bar-B-Q crispy pork, roasted pork, roasted chicken, Bar-B-Q crispy fried pork and pork-rind which are produced under the company’s own brands. These “Entrée” snacks are high in protein but low in carbohydrates and calories. At present, the products have been exported to Hong Kong and Macau. Recent developments include chicken and seafood-base- snacks which will adhere to Halal standards for serving Muslim markets worldwide. Quick Service Restaurants S.Khonkaen brand currently comprises two QSR business units which are Yunnan and Zaap Express, targeting office workers and the young generation. The business plan is to expand its branch network through franchising and promoting via local store marketing and online marketing channels. Currently, Yunnan has 31 branches in Thailand, two branches in Laos and a new branch coming up in Cambodia (2015). Yunnan: Serving legendary Yunnan stewed pork leg and Chinese home cooking cuisine with secret spices inspired by Yunnan in a chain restaurant format that fits new the generation’s lifestyle through creativity and innovation. Zaap Express: Zaap Express focuses on North- eastern Thai foods by using most of the company’s products as ingredients in various menus served in modern style with a cozy experience and standardised process. Things you didn’t know about S.Khonkaen l S. stands for “Sin-Ka”, which means goods in Thai. Khonkaen is the name of a province in northeast Thailand, where the founder began the business. l S. Khonkaen is the pioneer in modernising “Traditional Northeastern Thai Food” products in Thailand and also the traditional Thai food packaging innovation. l From consumer research in Thailand over 90% of respondents are aware of S. Khonkaen brand and 42% would recommend it to their friends. RECENT DEVELOPMENTS The company is gearing towards becoming a regional brand, aiming to target the AEC Market and the Chinese Market, both locally and internationally, by expanding various ranges of products and service, offering cooking demonstrations with full-experience shop. In addition, the company utilises the concept of forward integration strategies to pursue changing lifestyles of consumers by entering the Ready-to- Eat (RTE) market in modern trade segment as well as the health-conscious market such as Samitivej hospital, with no MSG product development. PROMOTION Marketing strategies are focused more on below- the-line channels which are more approachable and directly urge product trial including in-store activation, promotions in modern trade launches, roadshows throughout office buildings, and participating in food fairs, tasting and giving free samples locally and globally. In addition, the brand has been promoted through above-the-line media on occasional TV tie-in, radio, and especially online campaigns via social media to attract the young generation. Apart from integrated marketing communications, the brand offers specific product assortment in various packing sizes to cater to the different needs of their customers’ lifestyles as well as new product development for seasonal greeting with beautifully- designed giftset packages. BRAND VALUES “Quality and Delicious” Over 30 years, S.Khonkaen brand has built its reputation on its commitment to “Quality and Delicious”. Wherever and whenever you sample a S.Khonkaen product, the quality and deliciousness remain unchanged, which has been the principal statement of the company since its opening. The brand takes pride in offering Thai ways of eating, and intends on providing the best quality and greatest tasty food to delight customers all over the world. www.sorkon.co.th
Transcript of MARKET PRODUCT RECENT DEVELOPMENTS …thailand.superbrandsmena.com/pdf/pdffile1452171178.pdf · z...
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MARKETS. Khonkaen Foods is engaged in the agro-industry but is self-integrated. Their mission is to market Thai foods aacross the globe. Today, the company’s food products, including Vietnamese sausage, fermented sausage, Thai-style sausage and seafood balls etc have been marketed nationwide, gaining a market share of over 70% in the modern trade outlets in Thailand and have been exported across three continents namely America, Europe and Asia focused in Hong Kong and part of the People’s Republic of China. The next target markets will be Australia and Africa. However the company aims to export Halal-certified chicken and sea food-based snacks to the Middle East in the not too distant future.
Since the company carries many categories of food stuff the practice of applying multi-brand strategies is a must. S. Khonkaen brand is the name of the company, as well as the brand name of the product itself. All processed meat products marketed under the name of S. Khonkaen are positioned to be premium grade products. Since this brand is recognised nationwide as well as being internationally well-known, this brand has served as an endorser for those brands marketed under the umbrella of “S. Khonkaen” Brand, for instance one snack food is branded Entrée, seafood balls are branded “Chiu chow” and stewed pork leg is branded as “Yunnan”.
ACHIEVEMENTSl 1987 Manufacturer of the Year (medium size factory) awarded the Ministry of Industry.l 1988 Outstanding Product Award given by General Chartchai Choonhawan, the Prime Minister of Thailand.l 1991 Marketing Award for best practice in marketing consumer goods during 1990-1991 conducted by Thammasat University and Thailand Management Association.l 1991 First prize in Chinese sausage in the category of Processed Meat Product Contest at Kaset Food Fair 1991 organised by Kasetsart University and The Ministry of Agriculture and Cooperatives.l 1993 The Company’s CEO was awarded the Golden Junk Prize as Model Businessman of the year 1993, in the category of agriculture.l 2011 Selected and approved to use the Thailand’s Brand Product Logo by The Ministry of
Commerce as a symbol of a high quality exported brand.l 2012 The Company’s CEO was conferred Royal Doctorate Degree in Food Science and Technology.l 2014 The Company’s CEO was awarded APEA 2014 prize as Outstanding Entrepreneur of Asia Pacific Region in the category Asia Pacific Entrepreneurship.
HISTORYS. Khonkaen Foods Public Company Limited was founded in 1984, by the Rujirasopon family, under the name S. Khonkaen Food Industry Company Limited and it started as a merchandiser, sourcing North-eastern style meat products from Khon Kaen to market in Bangkok.
Khon Kaen is a province situated in the north-eastern part of Thailand, where piggeries were abundantly found as in nearby provinces. Khon Kaen is quite outstanding and is renowned for making delicious and quality products of this nature but then almost all the meat processors were cottage industries. Since then, S. Khonkaen had sourced those native meat products from Khon Kaen to sell to supermarkets in Bangkok. It proved tremendously successful and there was a strong request from market places that a daily delivery for perishable foods is a must. For quality reasons and cost efficiency on transportation, S. Khonkaen had to set up a production base in Samut Prakan, a province next to Bangkok.
In order to accomplish the company’s mission to bring Thai native foods to global markets, a constant inflow of capital and funds is compulsory so the
founder decided to have the company listed on the Stock Exchange of Thailand, in 1994, and turned public in 1995.
After listing, the company started to expand and diversify into processed seafood business such as seafood balls, which also proved quite a success. Today, S. Khonkaen’s fish balls have been exported to many continents, namely America, EU, Australia and Asia. The company further diversified into meat-based and seafood-based-snacks for global markets as well as Halal certified chicken snacks for markets in the Middle East and all Muslim countries. In 2009, the company took over a frozen meal factory, and today they are making Ready-to-Eat meals supplying to all leading convenience stores and supermarkets. Furthermore, to cope with the lifestyle of consumers in major cities, the company also operate two chains of quick service restaurants under the brands of “Yunnan”, serving Chinese cuisine with 31 outlets in Thailand, two in Vientiane and some more will be coming up in Phnom Penh - and “Zaap Express” with six outlets serving Thai Northeastern style cuisine. To further attain its mission, in 2008, the company set up a production base in Poland to serve Thai
native meat products for markets in the EU and later shifted to Holland which is run by the company’s subsidiary named S. Khonkaen Foods (Netherlands) B.V.
PRODUCTTraditional Thai FoodTraditional Thai food is one of the company’s core businesses. They are the first product group since the company has started commercially. Products under this category comprised of dried and fresh products include Shredded Pork, Crispy Pork, Chinese Sausages, Thai Sausages, Fermented Sausages, Vietnamese Sausages, Pork Balls etc.
Meat-based-snacksUnder the same vision of traditional Thai food brought up to date, the company has developed new lifestyle meat-base-snacks which are tasty and healthy, cooked under a special and home-made recipe. There are comprised of Bar-B-Q crispy pork, roasted pork, roasted chicken, Bar-B-Q crispy fried pork and pork-rind which are produced under the company’s own brands. These “Entrée” snacks are high in protein but low in carbohydrates and calories. At present, the products have been exported to Hong Kong and Macau. Recent
developments include chicken and seafood-base-snacks which will adhere to Halal standards for serving Muslim markets worldwide.
Quick Service Restaurants S.Khonkaen brand currently comprises two QSR business units which are Yunnan and Zaap Express, targeting office workers and the young generation. The business plan is to expand its branch network through franchising and promoting via local store marketing and online marketing channels. Currently, Yunnan has 31 branches in Thailand, two branches in Laos and a new branch coming up in Cambodia (2015).Yunnan: Serving legendary Yunnan stewed pork leg and Chinese home cooking cuisine with secret spices inspired by Yunnan in a chain restaurant format that fits new the generation’s lifestyle through creativity and innovation. Zaap Express: Zaap Express focuses on North-eastern Thai foods by using most of the company’s products as ingredients in various menus served in modern style with a cozy experience and standardised process.
Things you didn’t know aboutS.Khonkaen
l S. stands for “Sin-Ka”, which means goods in Thai. Khonkaen is the name of a province in northeast Thailand, where the founder began the business.l S. Khonkaen is the pioneer in modernising “Traditional Northeastern Thai Food” products in Thailand and also the traditional Thai food packaging innovation.l From consumer research in Thailand over 90% of respondents are aware of S. Khonkaen brand and 42% would recommend it to their friends.
RECENT DEVELOPMENTSThe company is gearing towards becoming a regional brand, aiming to target the AEC Market and the Chinese Market, both locally and internationally, by expanding various ranges of products and service, offering cooking demonstrations with full-experience shop. In addition, the company utilises the concept of forward integration strategies to pursue changing lifestyles of consumers by entering the Ready-to-Eat (RTE) market in modern trade segment as well as the health-conscious market such as Samitivej hospital, with no MSG product development.
PROMOTION Marketing strategies are focused more on below-the-line channels which are more approachable and directly urge product trial including in-store activation, promotions in modern trade launches, roadshows throughout office buildings, and participating in food fairs, tasting and giving free samples locally and globally. In addition, the brand has been promoted through above-the-line media on occasional TV tie-in, radio, and especially online campaigns via social media to attract the young generation.
Apart from integrated marketing communications, the brand offers specific product assortment in
various packing sizes to cater to the different needs of their customers’ lifestyles as well as new product development for seasonal greeting with beautifully-designed giftset packages.
BRAND VALUES“Quality and Delicious”Over 30 years, S.Khonkaen brand has built its reputation on its commitment to “Quality and Delicious”. Wherever and whenever you sample a S.Khonkaen product, the quality and deliciousness remain unchanged, which has been the principal statement of the company since its opening. The brand takes pride in offering Thai ways of eating, and intends on providing the best quality and greatest tasty food to delight customers all over the world.
www.sorkon.co.th
