Osotspa shifts gear to target urban niche

The company is hoping to capture a five per cent stake of the highly competitive 14 billion baht energy drink market for MMAX in its first 12 months, through "music marketing", said Tacharin Osatanugrah, assistant managing director at Osotspa. "We believe that with this strategy we will be able to communicate with our target consumers very well." The 80 million baht launch campaign aimed at those keen "to live life to the max" is built mainly around events and sponsorship, although it will initially also feature a 45-second TVC. The spot's focus on the lifestyle of the city dweller, rather than the product, is in line with new advertising regulations limiting energy drink TVCs to social messages, and banning product shots. MMAX, is the first energy drink to enter the market since new regulations went into effect. As such, its ability to penetrate the market is being closely watched, particularly by potential new entrants, said to include Japan's Ajinomoto and Coca-Cola. Energy drink players have traditionally relied heavily on TVCs to build brand awareness. "For the first part of our launch, we have to do some mass communications to build up the brand, but after that, we will reach the city consumer with events and sponsorships," said a MMAX spokesman. Developed by Leo Burnett under the umbrella concept "Life Never Stops", the campaign includes a specially composed song "Get Out" by popular Thai band Ebola, which will be released in the band's new album, and used particularly in radio spots. The brand is also to sponsor the Linkin Park Live in Bangkok concert in June, as well as activities "that are challenging such as sports, exercise, travel and adventure." MMAX hopes to win over those who have shied away from traditional energy drinks, and also grab market share from soft drinks. Osotspa, which has a combined 42 per cent stake of the energy drink market with M150 and M100, will lend both its expertise, and considerable distribution muscle to the new player. "This will further enhance our competitive edge," said Tacharin. The new drink is likely to feel the heat from Red Bull Extra, which also targets the young and trendy. Shark, the only other carbonated energy drink in the Thai market, is also owned by Osotspa, and is aimed at the mass market. MMAX is Bite's second product after hangover reliever Hang, and is in line with Osotspa's strategy to grow its customer base by exploiting niche markets. "This year, we chose to focus our new products on specific group of customers," said Tacharin. "These young, energetic people are well-educated, intelligent and highly demanding. They want to live their lives to the max. MMAX is a new functional drink designed to serve the needs of these people."