Marketing Strategy

 

The DEP's strategies for 2001 have covered many major aspects of the export business, revolving around the core activities of marketing, product development and services, and including other factors that support the growth of Thailand's exports.

 
Market Diversification back

Thailand's geographical location has many advantages in terms of agriculture and commerce, particularly in the Asian region. In the past, Thailand's trade policies were mainly aimed towards developed countries and markets with high purchasing power. However, excessive reliance on these markets makes the country susceptible to sudden downturns. Other markets have therefore had to be targeted in order to increase Thailand's world market share and to reduce such risks. The Thai government's market diversification policy thus aims to forge closer trade relations with neighboring countries as well as other countries in the region such as China and India. The fact that their large populations show great import demands coupled with China's accession to the WTO makes them very attractive markets.

Gateway countries are being explored to serve as springboards to the smaller and more remote markets, such as those in the Central Asian region, the Middle East, and Africa.

 

Gateway

 

Due to the dramatic downturn in world trade in 2001, Thailand's biggest export markets, the USA and Japan, saw a substantial reduction in imports from Thailand in the final quarter of the year. However effective marketing strategies allowed Thailand to adjust to this dramatic change.

The DEP has supported this market diversification policy with new measures to adjust the export ratio of the major markets to the new markets at 60:40 within the year 2004. Thai exporters are being encouraged by the DEP to increase business partnerships in the new markets as well as existing markets. There are more than 200 countries currently importing Thai products, and most of them have the potential to import a greater volume.

 
Distribution Network back
 
 

As a result of the WTO regulations aimed at opening up trade markets, Thai exports face intense competition. Marketing and promotional campaigns have to be very focused, depending on exporter and market needs. A distribution network is an effective channel and a way of promoting Thai exports. The DEP's distribution network was established to support Thai exporters who want to use their own brand names in overseas trading. Exporters can directly deal with their own clients, and thus increase competitiveness.

Thai exporters are now being encouraged by the DEP to initiate their own distribution networks overseas by finding distribution partners and distribution agents, by making joint investments on retail brands, setting up an office specifically for a brand, and registering their trademarks abroad to protect their copyrights.

The DEP arranges activities to help Thai exporters who have their own brand names in finding the appropriate partners by considering market feasibility, surveying customer demand, supplying information on import regulations, and devising processes to promote Thai products in the market, including public relations campaigns.

Joining the DEP project automatically allows participation in a number of export promotion activities, such as specific partner finding projects and exhibiting at trade fairs. Project members in the garments and leather products sectors participated in a brand presentation mission to Singapore and Malaysia, an event that resulted in more than 100 importers in each country wanting to enter business partnerships with the participants. The most successful Thai products in Singapore and Malaysia are casual wear and fashion garments respectively, while ladies' leather bags are very popular in both countries.

Thai trade representatives were also sent to the United Arab Emirates and Iran for business negotiation purposes, and a meeting between Thai exporters and Singapore buyers was be held as part of the Thai-Singapore Distribution Network Project.
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