BANGKOK -- Thailand's two dominant ready-to-drink tea companies anticipate sales growth of more than 20% in 2015 as they mount aggressive marketing campaigns in the hottest months of the year.
First-place Ichitan has 33% of the market and is wooing consumers with luxury vehicles. Oishi, a subsidiary of Thai Beverage with a 26% market share, is scaling up a digital campaign to spread the word on social media.
Ichitan this month kicked off its campaign to give away 50 Mercedes Benz cars, including three luxury SLK 200s, to lucky customers.
The company is known for marketing gimmicks initiated by its founder, Chief Executive Officer Tan Passakornnatee. It has previously given away iPhones and gold bars. Worth a combined 123.4 million baht ($3.7 million), the German cars set a giveaway record for the company.
Tan said Ichitan is hoping for 15% market growth this year with a revenue target of 7.5 billion baht. That would mark a 20% increase over 2014, which was 5% down from the year before. The company's net profits are expected to rise more than 16%.
Oishi was also founded by Tan, who pioneered the ready-to-drink tea business in Thailand, and annual giveaway campaigns have been a staple there as well. This year, Oishi is offering Toyota Yaris cars and Yamaha Fino motorbikes worth a combined 50 million baht.
The company's strategy is to give away more familiar, lower-end vehicles in larger numbers and to use a mobile app to attract the younger generation. Enrollment in the campaign can also be done with a conventional SMS.
Oishi has erected a huge beverage bottle outside the Siam Paragon shopping mall in central Bangkok. Pictures taken of it with the Oishi app appear three dimensional using augmented reality technology. By sharing the photo on Facebook or other social media, the user becomes eligible for a prize.
The company hopes to build a Japanese image by offering the Toyota and Yamaha vehicles, and is targeting a 25% increase in sales in 2015 to achieve 15.5 billion baht. Last year, growth was only 2%.
According to Euromonitor International, Thailand's ready-to-drink tea market expanded 18.7% in 2014 to 497 million liters, following 21% growth in 2013 and 58% in 2012. Political unrest severely dampened growth in 2014.
The intensified marketing strategies also include sugar-free beverages and herbal teas designed to appeal to the health-conscious.