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Published on December 5, 2007

Marketing manager Taras Sudhikam said yesterday that the rising cost of raw materials - mainly milk fat, milk powder and cocoa - and the rising baht were major problems.

The strong currency has significantly affected its export revenues, as the company quotes its prices in baht.

The company is adjusting its product range and manufacturing process after experiencing a difficult business environment this year.

Regarding raw material costs, these have increased by over 20 per cent over the course of the year.

Taras said the company had tried to avoid raising prices by introducing smaller items starting from just Bt100, but had also retained its larger varieties, in order to keep an attractive product range. It has also been running monthly marketing campaigns.

For its latest Bt2-million promotion, the company is offering special chocolate varieties and designs for the upcoming Christmas and New Year's period.

Special products include mixed chocolate sets with gold foil and with Thai fruit inside. In order to widen brand awareness, it has set up sales kiosks in major shopping malls, including CentralWorld and Siam Paragon.

Taras said he expected the campaign to generate sales growth of up to 30 per cent over last December. However, he declined to reveal sales figures for last year.

The company plans to strengthen its brand awareness by targeting niche customers by arranging workshops where customers can try its products. The marketing budget will be increased slightly.

He added that in the past, Mrs Flowers had concentrated its sales focus on wholesale and export markets, but would now concentrate more on the retail sector.

It has seven permanent sales outlets in Bangkok, all in major shopping malls.

Nitida Asawanipont

 The Nation