TCP Group picks Vietnam to open first wholly-owned overseas office
- To invest Bht 4,000 million in Vietnam in three years to strengthen marketing, distribution, and R&D
- Aims to double sales in three years
- Readies to launch new brand in Vietnam
- Investments are part of 5-year plan to elevate TCP Group to be a great company on the world stage
Ho Chi Minh City, Vietnam (23 November 2018) – TCP Group, the manufacturer and distributor of Krating Daeng (Red Bull), Ready, Som Plus, Sponsor, Mansome, Puriku and Warrior brand beverages as well as Sun Snack snacks, today, opened its first wholly-owned overseas office, located in Vietnam and called TCPVN Company Limited, as well as unveiled a 3-year business plan that aims to double sales for the group in Vietnam within three years.
Under the plan, TCP Group will invest Bht 4,000 million in Vietnam to boost its marketing and sales, as well strengthen its market research, product development, and distribution capabilities.
Within the next three years, it expects the combined market share for all TCP Group brands in Vietnam to grow to more than 50% of the entire energy drink market and also to launch at least one more brand to reinforce TCP’s leadership in the market for energy drinks.
Mr. Saravoot Yoovidhya, Chief Executive Officer, TCP Group, said, “The opening of this office in Vietnam is also a part of the 5-year plan we announced in 2017 to triple our total group sales to be Bht 100,000 million and to be a business organization that brings pride to Thailand on the world stage.”
Mr. Vassanai Krits-aramruang, Director, International Business, TCP Group, said, “TCPVN will accelerate our growth in this market which has huge potential.”
He based his confidence on several factors.
- First, in terms of lifestyle, the Vietnamese people consume energy drinks as a thirst quencher and together with their meal. It is a country that has a culture of hard work and they look for a boost from energy drinks.
- Second, the market is already one of the largest in Asia and second only to China.
- TCP Group’s products in Vietnam already enjoy high growth of 25% per year, which is much higher than that of the overall energy drink market’s growth.
- The Vietnamese consumer also trusts TCP Group’s products as being of high quality and likes its premium packaging. This gives TCP Group a competitive advantage when it introduces other brands to the Vietnamese market under the group’s umbrella.
- TCP Group knows the Vietnam market well, and has a strong foundation in the country, having done business there for more than 30 years.
Strengthening market research and product development capabilities
Mr. Saravoot said, “We will strengthen our market research capabilities and the technology we use to further enhance the ability of the TCP Vietnam team to better research and understand Vietnamese consumer behavior. It will give us insights on their consumption habits, lifestyle, preferences, and unmet needs which can underpin our development of new brands for the Vietnam market.”
“TCP Group aims to be a powerful house of brands, and, in Vietnam, we are looking to either develop a new brand specific to Vietnam or perhaps bring to Vietnam one of our existing brands,” he said.
Mr. Saravoot added, “Traditionally, Thai products competed overseas based on a ‘lower price’ proposition. Our Warrior brand energy drink, which was specifically created for the Vietnam market and has done exceptionally well, has proven that Thai companies and Thai products can also compete and succeed based on market research capabilities and effective marketing.”
He said, “Five years ago, our research told us that Vietnamese consumers sought an
energy beverage that they could consume and enjoy as they would a normal carbonated beverage. It was an important insight that led us to develop our carbonated Warrior brand energy drink, which we launched in 2015. It was an instant success. In only three years Warrior shot up to become one of the top five most popular energy drinks in Vietnam and our sales in 2018 will double those of the previous year.”
Commitment to maximizing marketing and sales capabilities
According to Mr. Saravoot, TCP Group will share its experience and know-how with the strong Vietnamese team to ensure the Vietnamese operation has a world-class sales and marketing function and that it is supported with adequate financial and other resources to ensure the success of the group’s brands.
“Our marketing support will not only grow our brands but the entire energy drink market, which we hope to grow in value to be similar to that of carbonated beverages,” he said.
Maximizing distribution channel management capabilities
“TCPVN will also play an important part in developing management of the distribution system. We want to increase our distribution capabilities to reach a broader base of consumers, nationwide, as well as grow our modern trade presence. The investments we are making will let us elevate TCPVN’s capabilities to the level of international companies in working with modern trade formats, utilizing the most modern technology,” Mr. Saravoot noted.
The total sales of TCP Group in Vietnam is expected to reach around Bht 10,000 million by the end of 2018, and the market share of all TCP Group brands in the energy drinks category to stand at a massive 42%.
