Sep 10, 2004

Leading noodle brand targets snack market

BANGKOK: Instant noodle market leader Saha Pathanapibul has launched a noodle-based snack it hopes will help it break into the country's crowded but fast-growing snack business.

Leading noodle brand targets snack market

According to the maker of the popular Mama and Koka instant noodle brands, the 10.5 billion baht (US$252.3 million) snack industry is projected to grow at eight per cent this year, way ahead of the three per cent projected for instant noodles. Noodle-based snacks have also been steadily increasing their share of the snack food pie.

"The figure for 2002 was estimated at 14 per cent, and it increased to 16 per cent in 2003," said Surat Ketrattanakul, division manager for products. "This trend is expected to continue."

Targeted at pre-teens from nine to 11, Snack Noodo will be available in two sizes - 30g and 70g - and will be made further accessible by competitive pricing of five and ten baht respectively. The company expects Snack Noodo to generate 100 million baht in sales by year-end. "Our pre-launch research showed very good response to the product from Thai consumers ... and we are confident that Snack Noodo will soon establish a strong presence in the Thai market," Surat said. There are plans to eventually export the product to Korea, Japan and Taiwan, where people are familiar with noodle-based snacks. The "bite-sized crunchy crispy" Snack Noodo will initially be introduced in three flavours - barbeque, sour cream and onion, and nori seaweed, with another 10 flavours in the works if the brand performs as well as expected over the next three months.

Little is being left to chance - the launch is backed by a 50 million baht promotional campaign, spearheaded by a TVC created by Far East DDB, and aimed at building the brand as a "trendy, modern and fun" choice.

A 30-second TVC will begin airing from mid-September, accompanied by a PR campaign, product sampling and other marketing initiatives co-ordinated by local PR agency Integrated Communications.

Snack Noodo will also gain from the 63-year old consumer goods giant's extensive distribution network, which spans both modern and conventional trade outlets nationwide.

Thailand's snack market is dynamic, with more than 2,000 brands competing to increase their stakes. Of the lot, about 350 brands are large enough to advertise on television, led by market leader Frito-Lay, which has a market share of close to 25 per cent, and followed by Berli Jucker Food with seven per cent.

A survey by the Health Promotion Foundation found 67 different snack products advertised on television from 7am to 10:30am on weekends.

Saha's bid for a slice of the action comes as the Government is being put under pressure to regulate snack food advertising, including cutting ad time during programmes watched by children from 12 to eight minutes an hour. Hard hit by regulations on alcohol advertising, the ad industry is currently working to put its own checks in place.

Source:
Campaign Asia
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