British retailing giant Tesco-Lotus has awarded its advertising and media assignment to Omnicom agencies, BBDO and OMD, while Big C has handed its 100 million baht (US$2.3 million) account to Creative Juice/GI following a credentials pitch.
The account shifts come as rival Tops Supermarket begins a review of its advertising assignments (Media, January 24).
A spokesman for Tesco said the company would maintain its account at last year's 120 million baht (US$2.8 million) level, while Big C said it would increase marketing budgets this year by 25 per cent to reflect the escalating competition in its category.
A spokesman for Tesco-Lotus said its brief was mainly for corporate advertising and that the underpinning message would essentially be that "no one tries harder with customers". Tesco-Lotus, one of four majority, foreign-owned hypermarkets in Thailand with 39 stores, has announced plans to expand to up-country locations, a move that will bring the retail battle beyond the main cities. BBDO's top creatives, Suthisak Sucharitannonda and Thirasak Tanapatanakul, both of whom worked on the Central department store brief, will handle Tesco-Lotus.
Big C's vice-president for marketing and communications, Jariya Chirathivat said the Creative Juice/G1's task was to bring across the hypermarket's image as an "inexpensive and fun" place to shop. The company has in the past used agencies on a project basis, and Creative Juice/G1's appointment is seen as partly defensive after Tesco-Lotus announced its upcountry expansion drive. Big C currently dominates in areas outside the main cities, where it has 17 of its 33 stores.
Jariya concedes that "competition is expanding aggressively, and we want to maintain our share of the market". According to Big C's figures, it has nine per cent of the total retail market, compared with Tesco-Lotus' 11 per cent, Macro's seven per cent and Carrefour's four per cent.
Hypermarkets control the largest chunk of Thailand's retail market, followed by supermarkets, department stores, direct sales and convenience stores.
Jariya declined to say how much of the budget increase would go to advertising.
Much of the company's promotional strategy, she said, would focus on pricing.
"What we have found is that if the location is right, the next thing customers look at is price, and then comes service."
Creative Juice/G1 has started work on a corporate campaign for the second quarter of the year, said chief executive officer, Witawat Jaya pani.
"It will be the main campaign for this year for the brand to build a relationship with its clients," he said. This will run alongside ongoing promotional campaigns. Big C targets individuals aged between 24 and 40, earning 8,000 baht (US$186) a month and up.
