Singha Corporation is a well-known name in the field of beverage all across Thailand since 1933. Singha water is one of the most successful and well-known brands of Singha corporations’ group. It has been declared as No.1 in water market for many decades. Their major sales channels are from traditional trade which consider agent, wholesalers, retailed as well as modern trade and convenience stores. 99% of penetration through all offline channels.
The most challenge is that water is just a commodity product widely used by every single home. Therefore, many brands want to enter this market and switch share from No.1 brand like Singha. Moreover, customers find that water is a necessary product that they need to have but cannot enjoy shopping and carrying back home because of its heaviness.
Then we find the opportunity from customer insight which are the NECESSARY and HEAVINESS. Water is heavy and no one in the market offer free delivery to home. Customers who live in BKK must face with traffic jam when they go outside. Therefore, when they go shopping, they only want to shop what they enjoy which is not heavy and necessary products like water. If any brand can offer free water delivery to their home, they would consider buying in order to save their time and energy to do other more enjoyable activities.
As a brand leader, we need to be the first to expand into new segment, market or channel in order to expand growth. In digital disruption, we see the disruptive opportunity of the changing behavior that prefer online shopping and home delivery. Our strategic move is to develop new SKU which is Singha Tank Water 18.9 litre to serve direct customers both individuals and corporates. We offer free delivery to their doors and offices every week with subscription basis. Customers can order thru call center or Singha online channel and get Tank Water every week on regular basis. We develop application to help track remaining coupons and alert system to remind customer to repurchase before their coupon run out. With sophisticated technology and customer insight analysis, we have run this Singha smart family program successfully for 8 years with only call center and online channel that generate average growth rate at 16% every year.
We can recruit total members of 24,000 members with annual sales of 1 million tanks in Bangkok and greater Bangkok area. Retention rate is 90% and 10% new members. On top of the success, we can also offer other water SKU thru this channel. Besides, sales growth, we also better understand direct customers and new generation who prefer online shopping and be able to offer the right products to fit the changing needs.