Neo Corporate targets higher shower cream sales
Neo Corporate Co, the marketer and distributor of Fineline household and BeNice personal care products, plans to increase sales to 10 billion baht within three years, up from 5.3 billion last year.
Sirisupa Ajsonjorn, the company’s marketing manager, said Neo will use various strategies, including expanding its product line and distribution channels both online and offline.
Neo wants to focus on expanding the business in neighbouring markets, particularly Cambodia, Laos, Myanmar and Vietnam, aiming to boost sales from abroad to 25% of the total by 2020. Sales from exports accounted for 15% of the total 5.3 billion baht in 2017.
Last year, Neo set up a special team to handle overseas expansion, particularly for the CLMV region.
“There is strong demand for Fineline and D-nee liquid detergent in Vietnam, and the popularity of our BeNice shower cream also continues to grow,” Ms Sirisupa said.
For the domestic market, the company will reposition its eight existing brands to become premium product lines and attract new customers.
“The strategy of focusing on premium will help lift our brand value and the brand image of our products to another level,” Ms Sirisupa said.
The company has already extended its premium line for three brands: D-nee, Tros and BeNice.
In addition, Neo allocated 1.9 billion baht for the advertising and promotional budget to create buzz for household and toiletry products this year. The budget for online media was also increased to 20% of the total budget, up from last year’s 15%.
Of t he 1.9-billion-baht marketing budget, some 300 million baht will be used to boost BeNice shower cream sales this year, the highest budget ever used since the product was launched 16 years ago.
BeNice brand is one of the three business pillars for Neo Corporate, along with Fineline and D-nee.
The company plans to launch new products this year, including BeNice Detox 2 in 1 for the premium market. The new products are expected to increase sales of BeNice by 18% on the same period last year to 800 million baht this year before rising to 1 billion baht by 2020.
BeNice controls a 14% share of the shower cream market, ranking third in the 4.83-billion-baht space.
The liquid beauty shower cream segment has shown average annual growth of 3-4%.
The growth rate in the segment is projected to hit 5% amid intense competition, prompting all players to constantly launch new products.
BeNice expects its market share to rise to 17% this year.
To support future growth, Neo will open a new factory at a cost of 2 billion baht on a 199-rai plot in Rangsit Klong 13 in July.
The new plant will mainly produce household goods such as shower cream and fabric softener to serve aggressive expansion abroad.
Ms Sirisupa said that under the plan Neo aims to achieve sales revenue of 6.2 billion baht this year.