Panasonic has revised upwards its sales target in Thailand for fiscal 2006 (April 2006 -March 2007) from the earlier expected Bt18.2 billion - 9-per-cent growth from last year - to Bt19.3 billion - 16-per-cent growth.

Of the overall new sales target, Bt12.3 billion is expected to come from the audio-visual and systems and battery group and Bt7

billion from the home-appliances group.

From April to November, the company has already generated Bt12.45 billion, which was 13-per-cent sales growth year on year, according to Suphat Suravichai, deputy director of sales for Panasonic AP Sales (Thailand), Panasonic's subsidiary selling home appliances.

Its marketing strategy relied heavily on sport marketing, particularly the World Cup 2006, and the use of Pana Girls to promote brand awareness.

These factors helped dealers nationwide to boost their sales despite political turmoil in the first nine months of the calendar year and economic slowdown throughout the year.

To achieve the new sales target, the company expects LCD television sets, which it started selling in September, as well as new models of refrigerators, TVs and digital cameras to be the major contributors.

Its marketing and advertising budget this year is Bt2 billion.

Seeing its strong dealer network and appropriate marketing strategy, the company expects its sales next year to be Bt21.26 billion, of which the audio-visual and systems and battery group will represent Bt13.56 billion and the home-appliance group Bt7.7 billion, according to Suphat.

The company does not worry about consumers' spending next year.

Daizo Ito, chief executive of Panasonic Group in Thailand, said the group offered various products to serve many groups.

Also, consumers are willing to pay for its energy-saving and environmental friendly products, he said.

Rather, Panasonic worries that the rising cost of raw materials, particularly copper and zinc, and the strengthening of the baht have already affected its manufacturing costs and its export markets respectively.

Ito said that 70 per cent of its overall sales annually came from exports.

In terms of investment, the company has allocated Bt800 million for use until next year-end.

It as already invested Bt500 million to add new production lines for liquid-crystal-display TVs, ventilators and auto

parts.

New products in the pipeline to be lunched by early January include a 103-inch Plasma Display Panel (PDP), which is said to be the largest one in the world, 3CCD digital video camera, the HDAVI Control home-theatre system, High-Definition Multimedia Interface connecting digital video and audio components and a new inverter system for air-conditioners and refrigerators with Aquabeat dynamic water flow.

Panasonic's batteries, LCD projectors and "E-shower" water heaters have already achieved market-leader position.

Ito said it expected to push CRT and plasma to No 1 but that LCD

television sets would take more time than that.

Marketing campaigns to promote all its products include the English Premier League event, which awards 1,111 prizes to customers who join.

The campaign will last until the end of February and is supported by a Bt100-million investment.

Nitida Asawanipont

The Nation