One hundred billion or bust for Cementhai

Cementhai Sales and Marketing Co, the marketing and retail arm of the Siam Cement Group, targets 100 billion baht (US $2.63 billion) in sales by 2012, driven by customer relationship management, according to managing director Krij Kulanet. Krij went on to predict sales growth this year of 3-4% year-on-year to 50 billion baht. “Although the growth figure seems quite small compared with the past few years, it is accepted as satisfactory amid a tough environment,” he said.

In Krij’s view, sales are to be driven by the company’s new marketing approach through a CRM network, which required an initial investment of 200 million baht for developing an IT network. Under the new strategy, Cementhai Home Mart seeks to develop a database of end-users, detailing customer demands in each category and segment.

Initially, 40 dealers out of a total of 500 will join the CRM networking programme and about 200 dealers are expected to join over the next two years. Of the company’s 500 dealers, 100 are Cementhai Home Mart Max stores, 300 are Cementhai Home Mart Builder outlets and the remaining are conventional retail outlets. This plunging in to CRM is part of the overall Cementhai strategy, which involves the Cementhai Home Mart brand as a leader in the local construction and home-decoration markets.

Last year, products of the Siam Cement Group accounted for 80% of total sales of Cementhai Home Mart. The figure is expected to drop slightly to 77% this year. By 2012, non-SCG products would contribute 30% of total sales, said Krij.