Despite the absence of official confirmation about it winning the main rights, BeIN Sports has reportedly secured the audio-visual broadcasting rights for the next three seasons of the Barclays Premier League for Thailand, Laos and Cambodia.

“We are in discussions with our partner BeIN Sports, seeking a sub-licensing contract for all media rights to telecast 380 live matches to TrueVisions’ subscribers, as well as to True4U’s audience. The negotiations appear to be constructive,” Birathon Kasermsri na Ayudhaya, head of commercial and business development at TrueVisions, said yesterday.

“An exclusive deal is our ultimate goal, but at a reasonable price,” he stressed, adding that a non-exclusive contract was also acceptable for TrueVisions because the company still believed that broadcasting the English Premiership was definitely a good deal to have.

However, an industry source believes a sub-licensing deal would pose a big challenge for TrueVisions or any other prospective broadcasters, because BeIN Sports – an affiliate of Al Jazeera news agency – reportedly offered the Barclays Premier League about US$250 million (Bt8.9 billion) to clinch the main deal.

The relationship between True-Visions and BeIN Sports has been a constructive one since it began last February, when Thailand’s largest pay-TV operator struck an exclusive deal to telecast BeIN Sports channel in the Kingdom.

Last year, BeIN Sports also struck an exclusive deal to broadcast Spain’s La Liga matches for three seasons, beginning with the current season, after TrueVisions had failed in its bid to win the Spanish league broadcasting rights.

Apart from international soccer leagues, TrueVisions is also focusing on local football leagues and competitions, such as the Toyota Thai Premier League, Chang FA Cup and Toyota League Cup.

Last year, the company invested more than Bt4.2 billion to secure those media rights from the Football Association of Thailand.

“After telecasting live matches of the Toyota Thai Premier League for more than five years, the soccer league anticipated good feedback from Thai audiences. According to NIDA Poll, the penetration rate for Toyota Thai Premier League viewers significantly increased to 29.13 per cent last year, from 26.72 per cent in 2013,” Birathon said. To capitalise on this trend, TrueVisions yesterday introduced a new “Sanan Ball Thai” package, targeting fans of Thai leagues and competitions.

With this new package and a related marketing strategy, the company aims to see double-digit growth in terms of subscribers to nearly 4 million this year, from 3.1 million last year, he added.

The first Mini Big C franchise is The Station branch, in Muang district, Samut Sakhon. The 24-hour outlet opened last Sunday.

The parent company sees Mini Big C as the model of one-stop service that caters to modern consumer behaviour. These convenience stores focus on housekeepers, labourers, and grass-roots people interested in buying a variety of products at low cost.

Big C aims to open 75 new Mini Big C convenience stores this year, of which 50 will be franchised and the rest company-owned. However, the company expects franchise outlets to represent half of its Mini Big C stores within three years.

In the past, they were all owned by Big C Supercenter.

At present, the company has 125 hypermarkets (Big C Supercenter, Big C Extra, and Big C Jumbo), 55 Big C Market branches, 394 Mini Big C branches, and 146 Pure branches.

Getting into a franchise system for Mini Big C convenience stores will be in line with the company’s strategy to accelerate the expansion of its small-scale stores and to reach economy of scale, so that they will be able to utilise the company’s logistics network and bargaining power with suppliers.

Big C hopes the move will allow it to be more competitive with its major rivals in the convenience-store segment, including 7-Eleven, Family Mart and Lawson.

Currently, franchisees are required to invest about Bt3.75 million to open a Mini Big C with retail space of 100-120 square metres and offering more than 5,000 items for sale. However, the company will launch two new types of Mini Big C in smaller store formats that will require less investment from franchisees, at around Bt1 million and Bt2 million respectively.

The new smaller formats will be launched next quarter.

The return on investment will be three to five years depending on location. The franchise contract will be for around nine years.

Warunee Kitjaroenpoonsin, director for corporate affairs, marketing and communications, said that as consumers had been making more demands, supply chains had been expanded. While responding to these consumer demands, Big C wants to offer opportunities for people to own a business within a stable organisation through a Mini Big C franchise.

Big C will be a consultant for these investors and promises benefits not available from other convenience-store chains.

Compared with Big C hypermarkets, Mini Big C has different promotions, which the company sees as one of its selling points.

The company says that while it wants to open more Mini Big C branches and has adopted the |franchise model to that end, it has no intention of compromising quality.

The move forms part of the company’s vision to become the No-1 player for brand and packaging design in Asia.

Fumi Sasada, president and chief executive officer, said yesterday that the Bangkok office would be the third office owned by Bravis outside Japan.

After opening its Tokyo headquarters in 1996, Bravis International moved abroad for the first time with the opening of an office in Seoul in 2006, and another in Shanghai three years ago, employing 10 and seven staff, respectively.

“For Thailand, we will officially open Bravis International (Thailand), located on the 30th floor of Bhiraj Tower at Emquartier, on March 17, starting with six people, of whom three are designers and the rest are marketing officers.

“The opening of the Bangkok office will be in line with the company’s vision to become the number-one player in brand and packaging design in the Asia region,” he said.

The company had previously looked at Singapore for the opening of its first Asean office, he added, but finally chose Bangkok thanks to the city’s better geographic location at the centre of Asean, and its proximity to Malaysia, Myanmar and Vietnam.

Compared to Bangkok, Singapore is a relatively small city and one in which it is more expensive to open and operate an office, Sasada said.

It would be quite difficult for the company to control a Singapore operation from Japan, and communicating with the Bangkok office should be much easier, he explained.

Bravis International posted US$10.5 million (Bt374 million) in domestic revenue in Japan last year, and a further $2 million (Bt71.2 million) in foreign income.

“We wish to double our annual revenue both in and outside Japan in the next five years. We currently employ 130 staff totally, of which 30 are overseas. We want to increase the number of staff to 230 in the next five years, of which 150 will be in Japan and 80 at our international operations.

“In addition to Bangkok, we are also considering opening new Bravis offices in Singapore, Indonesia and Vietnam,” the company chief said.

The Bravis operation in Bangkok is expected to acquire between 15 and 20 new customers per year and reach at least $1 million (Bt35.6 million) in annual revenue in the next three years.

“Asia is a good potential market for branding and packaging design. Based on experience from our Bravis operation in China, we found that many companies in China have converted themselves from OEM [original equipment manufacturing] and are looking for good branding and packaging design for their own products,” he said

“We will rely on our Tokyo operation as the hub for global expansion and for providing support on creative design,” he added.

Sasada said branding and packaging design was not, however, easy work, taking from one month to more than a year to complete the process for each particular product.

For the client company, branding and packaging design should not be considered as a cost, but as an investment, he stressed.

“I myself am not an artist, but a designer. I answer to my clients. I’m like a boxer, but one who makes my client’s product for fighting in the market place. With competitors all around, the loser has to be moved out of the market,” the president and CEO said.

Sasada said good packaging design needed to stand out and convey a strong message to potential buyers, and it was not therefore only a matter of allowing something to look beautiful, but to sell the product.

This is crucial, as an estimated 60 per cent of shoppers are impulse buyers who decide to purchase a particular product once they are inside a store, he added.

MISMANAGEMENT of pilots and other internal problems have rocked budget carrier Nok Air resulting in last Sunday’s chaos at Don Mueang airport, the airline’s CEO Patee Sarasin has admitted.

The government, meanwhile, issued a warning to Nok Air and threatened to suspend and revoke its operating licence if such an incident – in which more than 1,400 passengers were left stranded due to the abrupt cancellation of nine flights – happened again.

Patee, who met Transport Minister Akom Termpitayapaisit yesterday, said the airline is undergoing a restructuring of its flight operations in compliance with the International Air Transport Association (IATA)’s operational safety audit.

The restructuring will separate the roles of pilots and management, negatively affecting pilots, who currently hold dual positions, he said, adding that the airline is also facing a critical shortage of pilots and co-pilots for its average 1,600 flights per month.

He said the restructuring is understood to be a major reason for some pilots to go on strike, resulting in the abrupt cancellation of flights on February 14.

“We need to upgrade our safety standards in line with IATA and European Aviation Safety Agency (EASA).

“We have an independent partner to help audit our flight operation since we don’t want pilots to do the crucial task themselves.

“Previously, we found some pilots exceeded the legal limit on working hours,” he said.

The CEO said the airline, which has a load factor of 93 per cent, has reduced the number of flights by 10-15 per cent and transferred some passengers to chartered flights operated by other airlines.

This year, Nok Air, which has a fleet of 28 aircraft, will recruit another 116 pilots in addition to the current workforce of 83 pilots and 113 co-pilots, with the first batch of 20-30 new recruits expected over the next two months.

Meanwhile, Sanit Kongpetch, a pilot and former manager of the airline’s flight standard department, said after being fired without compensation that the February 14 incident was not a “strike”, but a shortage of pilots.

There were about 30-40 pilots quitting, but the airline management failed to recruit enough replacements.

“All this is about how to cope with the pilots’ shortage,” Sanit said.

He said top executives must take responsibility and talk to workers at the operational level.

According to the Transport Ministry, Nok Air’s licence will be suspended if this happens once more, and will be revoked if such incidents are repeated.

Government Spokesman Sansern Kaewkamnerd said the issue was taken up by Deputy Prime Minister Somkid Jatusripitak, who ordered the Transport Ministry to help find solutions to the airline’s internal management problems to avoid any further impacts to passengers.

Patee was told he should have taken action earlier, right after the problem occurred.

The CEO reportedly relied on lower-level staff to tackle the crisis at first.

Somkid said all airlines should have contingency and risk-management plans, as well as consumer-protection measures ready, and that they were now required to submit such plans to the Transport Ministry within a month.

 

He made the remark after he and Finance Minister Apisak Tantivorawong visited THAI headquarters yesterday as part of a follow-up on the performances of state enterprises under the Finance Ministry.

THAI will announce its 2015 financial results late this month.

THAI executive vice president for commercial Teerapol Chotithanapibal said that next month the carrier would announce a step-by-step cut in its fuel surcharge as part of its target of bringing to zero. The policy will be implemented on selected routes, but he declined to elaborate.

Some international airlines recently announced plans to remove fuel surcharges, in response to low global oil prices.

Somkid instructed THAI to focus heavily on boosting operating efficiency to improve its competitive edge. The company also has to prepare a long-term aggressive business strategy to create growth over at least the next five years.

THAI is expected to announce such a strategy to the State Enterprise Policy Commission within two months.

Somkid said the government was ready to support THAI and it could invest in what it deemed necessary. However, its cost controls must not affect its service quality.

Apisak said THAI would work closely with relevant state authorities to bring in a greater number of tourists to Thailand. It also has to seek new profitable regional routes and try to cover all key Aseanroutes and destinations.

Apisak believes that if THAI achieves all its goals, it will return to profitability this year.

THAI is one of seven state enterprises undergoing rehabilitation based on orders from the State Enterprise Policy Commission.

THAI’s rehab plan is divided into three phases – the “stop bleeding” plan last year, the “strength building” plan this year, and next year’s “sustainable growth” plan.

Suraphong Triamchanchai, managing director of Nippon Pack (Thailand), a listed plastic-packaging company, yesterday said the company was expected to conclude the second deal within two months and it involved a Japanese restaurant chain with its own brand in Thailand.

“Since we will own the brand, we will be able to sell the franchise or expand it on our own, both in Thailand and in neighbouring countries,” he said.

Suraphong said Nippon Pack had sufficient capital to acquire other restaurant brands to the tune of a billion baht, provided it was a good deal.

These fast-food and restaurant chains will provide a synergy to the parent firm, which is a producer of food packaging, he said. Furthermore, Thai Luxe Food Products, its new subsidiary acquired last year, will produce food for these chains, he said.

The group has brought in Wichai Charoenthanmanon, the former president of CRG International, to spearhead its new restaurant business, NPP Food Inc.

Suraphong said Nippon Pack’s food business was expected to contribute 30-35 per cent of its total revenue this year.

“During the first nine months of last year, we grew by over 30 per cent, excluding the food business. This year with the food business, we should grow even more,” he said.

The food business will grow to 35-40 per cent of the group’s total revenue in the future, since it is also expanding its packaging business through acquisitions, Suraphong said.

He said NPP took over the A&W franchise in Thailand from its previous Malaysian operator in January and had turned it into a profitable operation this month. It had annual revenue of more than Bt100 million and was making a loss of at least 5 per cent of its total sales last year, he said.

NPP yesterday unveiled a plan to spend an initial Bt160 million to renovate all 21 A&W outlets and open six additional branches in Bangkok and the vicinity, beginning from the second quarter.

Wichai said the company had agreed with the parent firm A&W US to expand the number of A&W branches in Thailand to 100 within the next five years.

Nippon Pack has also received the franchise license to establish A&W restaurant networks in Laos and Myanmar, and is interested in acquiring the rights for the Cambodian market as well.

Suraphong said A&W would open its new branches at The Street and Fashion Island shopping malls in Bangkok, while Mall Group also wanted an A&W presence.

“For the outlets at petrol stations, we have a permanent friendship with PTT and Bangchak,” he said.

Thailand’s food industry is worth Bt120 billion annually, with Bt60 billion coming from restaurant chains and Bt60 billion from quick-service restaurants.

Kevin Bazner, president and chief executive of A&W Restaurants Inc, said: “After we bought A&W from Yum! Brand Inc four years ago, we see a lot of potential for double growth in Southeast Asia.

“A&W has been in this region since 1963, and we have more than 300 branches. We will focus on expanding in the markets where there already are A&W shops, such as Indonesia, Malaysia and Thailand, as well as Okinawa in Japan.

“We are discussing our expansion into CLMV countries [Cambodia, Laos, Myanmar and Vietnam]. We plan to double the number of branches in this region within five to seven years.”

Wichai said that according to NPP’s market research, people aged 35 or over were most familiar with the A&W brand, so the challenge was to increase its brand awareness among the younger crowd.

“In the future, the plan is to introduce a new type of A&W shop that is being launched in the US,” he said. “The hip nostalgic concept will present stories that will make the menu more special.

“There will be a retro decor, an old jukebox, or reminiscences about the World War II era when root beer [a famous A&W product] was a groundbreaking innovation.”

After airing on prime time by top-rated TV stations, this imported kitchen utensil has become the talk of the town and reportedly attracts tremendous orders.

Demonstrated by outspoken TV host Vuthithorn “Woody” Milintachinda, the commercial claims that this pan is suitable for health-conscious consumers because they can cook without using oil thanks to its nano-silver marble coating.

According to its website, Wizards Solutions is the importer of this product.

Nielsen found that in terms of brands, Korea King spent the most on advertising last month, followed by Toyota with Bt84.43 million, Total Access Communication (DTAC) with Bt78.89 million, Isuzu with Bt61.63 million, KFC with Bt47.11 million, AIA Life Insurance with Bt46.4 million and Coca-Cola with Bt46.12 million.

However, this year began with an unsatisfactory result as January’s ad expenditures dropped 4.9 per cent to Bt8.07 billion from Bt8.49 billion in the same month last year.

The downtrend was seen in major media outlets such as free TV, newspapers and magazines, and in-store media.

Last month, the incumbent analog TV channels faced a decline of 9 per cent to Bt3.86 billion, and even digital terrestrial TV channels slid 9.3 per cent to Bt1.3 billion.

Suffering sharp declines were newspapers – 12.5 per cent to Bt729 million – and magazines – 32.0 per cent.

Major consumer-product companies cut back ad expenditures last month – Unilever (Thai) Holdings, the biggest corporate spender, from Bt461 million in January last year to Bt323.5 million, Toyota Motor Thailand from Bt209 million to Bt179.6 million and Procter and Gamble from Bt146.7 million to Bt145 million.

However, radio, cinemas, outdoor, transit and Internet media still enjoyed rises last month.

Ratthakorn Surbsuk, a trading partner at GroupM Thailand, said recently that advertising in January slowed dramatically, but his company noticed many brands increasing their ad budgets for February and the following months.