Both are driven by the tremendous potential of a market where ice-cream consumption is among the lowest in the region -- and the quick and tangible results of new packaging, product launches, and marketing campaigns.
"The consumption per capita in Thailand is two litres, in the US, it's 24 litres -- there is enormous opportunity for growth here," said Phillippe Eberle, assistant vice-president for marketing and direct sales at Nestlé. "We are now two times bigger than two years ago, and last year, we grew 35 per cent."
The pace has picked up even further this year.
The company saw a 45 per cent increase in sales in the first five months, and will spend 800 million baht on marketing and promotions -- 60 per cent more than last year -- to push its advantage.
Nestlé's latest move is a multi-pronged advertisement, outlet upgrade and movie-in strategy. Its 'Painting Thailand Blue' initiative will see decorations and uniforms at all outlets changed to blue. The push will be backed by a 300 million baht ad campaign, Eberle said.
The company is also injecting 200 million baht in product and concept innovation across its kids, teen and young adult impulse segments.
To tie-in with the opening of the new Spiderman movie, this month, the company will launch a red chocolate-covered blueberry ice cream called Spider-Man 2, expected to help drive full year sales in the kids category up by 50 per cent.
Competitor Wall's has been no less vigorous in product innovation and marketing.
Within two weeks of announcing the launch of Wall's Light, a low fat ice-cream targeting the health-conscious, Unilever has unveiled a new soft serve ice-cream to be sold at 7-Eleven stores from July. Wall's Soft is expected to increase sales of Wall's products via the convenience store chain by 20 per cent. Unilever simultaneously renewed an "exclusive partnership" contract with 7-Eleven for a further three years
Earlier in the year, the brand repackaged its range of products, and has now also launched campaigns aimed at each of its three target groups - children, teens and families.
Popular Japanese character Doraemon has been recruited to connect children with the Wall's Paddle Pops, said Pongtip Thesaphu, Unilever corporate relations general manager.
Meanwhile, Thai singer-songwriter Boyd Kosiyabong has been enlisted to create a CD to market the Cornetto to teenagers.
The family market is being wooed by new packaging and design, and a larger choice of sizes, she said.
Unilever says its Wall's brand grew 22 per cent in the past summer, to claim a 66 per cent share of the 5.4 billion baht market. Nestlé claims a 38 per cent share, and is targeting 40 per cent by year-end.
