kotler-marketing-thailand-eng by fanzhongqing


									        Marketing the Nation
• Philip Kotler, Ph.D.
• Kellogg School of
• Northwestern University

• CEO Forum
• Bangkok, Thailand
• October 18, 2001
Strategy Development

           • Situation Analysis
             – SWOT

           • Objectives

           • Strategies

           • Implementation
           Situation Analysis:
              Past Policies
• Thailand’s annual growth was 8% between
  1991 and July 1997 when the currency

•   1960s: Import substitution
•   1970s: Export promotion
•   1980s: Foreign direct investment
•   1990s: Trade liberalization
•   2000s: ???
            Situation Analysis:
            Strategy Dilemma
• Past growth was based on factor input growth, not
  productivity (Paul Krugman)

• Problem with factor-driven growth: China and
  IndoChina will be cheaper.

• The nutcracker dilemma: Thailand is caught in the
  middle between low cost-based competitors (China) and
  high value based competitors (Italy, Japan).
   – Low cost based country: stagnation, unemployment, shortage of
     hard currency, second class economic power.
   – High value adding country: develops sophisticated industries
     with differentiation and niche potential.
         Situation Analysis:
        Thailand’s Strengths
• Good natural resources
• Low labor costs
• Large internal market
• Democratic government, politically stable, safe
  haven (Switzerland)
• Good access for reaching other markets in
  Southeast Asia, China and India
        Situation Analysis:
      Thailand’s Weaknesses

• Bad bank loans

• Credit crunch

• Bankruptcies

• Weak capital inflow

• Unemployment

• First, get out of the crisis.

• Second, improve international
          Objective One:
      Escaping from the Crisis
• Fighting Unemployment
   – Many Thais may come back to Thailand from the Middle East
   – Many unemployed Thais will go to villages
   – Undergraduates should stay in school one extra year to pick up
     more skills
   – Unemployed MBAs introduced to program for entrepreneurs
   – Slow down company downsizing through consulting and
   – Start large scale government work projects
• Get banks on a sound footing. Thailand Assets
  Management Corporation.
• Companies need to revise their product mix, segment
  mix, customer mix, and marketing mix.
   Objective Two: Improving
 International Competitiveness
• Thailand needs to improve productivity, innovation,
  and marketing.
• Examples of specific objectives:
   – Among top five trading countries in Asia,
   – Occupy eight niches in world markets.
   – Achieve three global brands.
   – In top ten more favored countries to invest in.
   – In top ten tourist destinations.
   – In top ten with high quality of life.
   – In top ten with social and political stability.
• Choose the industries to develop.
• Improve the financial system.
• Facilitate entrepreneurship.
• Support small and medium scale enterprises.
• Help villages and cities develop place
• Consider import substitution.
           Industries to Develop
• Tourism
   – Green tourism, quality tourism, Japanese weddings, Second
      Phuket, Long stays for retired people, “Be My Guest” program
• Promote Thai food restaurants around the world.
• Promote entertainment industry in Thailand.
• Build auto industry; make Thailand, “Detroit of the East.”
• Build natural foods industry.
• Apply biotechnology to agriculture.
• Some industries have to be extended (Thai foods); some
  strengthened (tourism, entertainment); and some started (Biotech)
• Two types of companies:
   – Physical based companies (speed, quality, delivery)
   – Knowledge based companies (design, differentiation, branding,
      high value add)
  Encourage Entrepreneurship
• Ministry of Entrepreneur Development. One
  stop service and lending and training.

• Micro-lending

• Drucker’s suggestion
 Strategies: Support Small and
   Medium Scale Enterprises

• SMEs that feed into LSEs.

• SMEs that feed into international markets.

• SMEs that feed into local markets.
      Strategies: Build Places
• Places need to develop place marketing plans.

• One product, one village: already 4,000
  products. Marketing needed.

• A few products will end up in international
  market (Thailand Plaza); some in regional
  market; many in domestic market; most in
  local market.
        Import Substitution

• Machinery (raise tariff)

• Grow flowers and fruit here that were

• Grow quality beef

• Role of government

• Office of Opportunity Development
         Government’s Role
• Government should be the driver. Guided
• Build infrastructure.
• Improve credit availability.
• Build public service information.
• Deregulate, privatize, where appropriate.
• Lower tariffs on luxury products.
• Reduce bureaucracy
    Opportunity Development
• September 11 creates new opportunities for
  Thailand. Every sector must develop a list of

• Needed: Opportunity Development Salesforce
  – Don’t wait for industry and investors to
    come here. Go and market to them.
• Thailand is better situated that neighboring
  countries that went hi-tech.
• Thailand must position itself as a safe neutral
  haven in a troubled world.
• Government must apply business and
  marketing thinking to support recovery and
• Thailand must extend and strengthen present
  industries and build new ones that have high
  value-added, knowledge-added content.
• Thailand needs to apply marketing skills in
  order to turn ideas into results.

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