“S-Pure” the premium and super hygienic fresh eggs Betagro groups are the company groups produce high quality of agriculture, meat processing and food product under concept “Let’s make life better”. Their main markets are mostly export to Japan and Europe. “S-Pure” local premium brand is one of product line to positioning fresh pork and chicken product with healthy from high quality of raw material, close system and antibiotic free and e-traceability and super hygienic of food safety & quality assurance process from farming to the shelf.
The product lines of fresh pork consist of Strip slices, Pork chop and Sirloin parts. The product lines of fresh chicken consist of Wing, Drum stick, Breath parts. The product could be cooked after taking off the packaging without washing process. As S-Pure is the premium brand of high quality fresh meat, Betagro continuous launching premium fresh egg under brand S-Pure which serves need from the A group of customer.
The quality of premium fresh egg is accepted from high grade of customer because Betagro select the breeder, chick to feed with quality food in the save and clean environment, of course, antibiotic free and after that they select, sanitize and bath with UV as cleaning process to eggs with automatically high technology machine. The eggs were kept under chill condition at temperature 0-4 C through the process from farm until end customer to make sure that customers get fresh quality and save eggs.
That’s why the product can be sold in retail at price 9 bath per pc in 2 packing size; 10 packs per box and 6 packs per box at the high end supermarket such as the Emporium, Siam Paragon, UFM Fuji, Isaton, Villa Market and Max Value, and Betagro shop. Another group of customer is chain Japanese restaurant ex. Ottoya, Mos Burger, premium Japanese restaurant and five star hotels. The main reason that the main group customers buy the premium and hygienic egg brand’s S-Pure because they aware health conscious and product entrusted that make sure that they save from bird flu and Salmonella micro.
This egg could be eaten raw with save and clean. Betagro is the first mover advantage to produce premium and hygienic egg of Thailand’s company and use price strategy on “Quality of the product” could make high price to the market. The target customer is less price sensitivity even this product is the commodity price but it’s the most high end quality of commodity product with inelasticity demand. The market price of common egg is about 3 Baht face the problem by be controlled price from government which the egg producer try to move away this threat.
In the market, I would separate value added of egg market in 3 product lines pricing which separate with quality vs. price as follow; 1. Premium and super hygienic eggs; the main player is S-Pure brands from Betagro and their direct competitor is from imported eggs from Japan. The products were made from high technology, antibiotic free and Salmonellas free, with high quality production with specializing through the process to entrusted customer. The price is about 9-30 baht per pc. 2.
Quality eggs; there are 2-3 main brands such as HyEGG brand from Betagro, CP brand and Kasemchai Farm that were produced with quality and food safety factory. The price is about 3-4 baht per pc. 3. Function eggs; the product with differentiate by add Vitamin into egg such as eggs plus Omega 3 , DHA with 2 main brands; Doctor Hen and CP. The price is about 4-8 baht per pc. Due to S-Pure has 2 groups customers; B2B and B2C, they will have different Pricing tactics. B2B customers price adaptation strategy Chain Japanese restaurant ex. Ottoya, Mos Burger, premium Japanese restaurant and five star hotels, could give quantity discount to get large volume purchase. * Retail customers such as the Emporium, Siam Paragon, UFM Fuji, Isaton, Villa Market and Max Value should have functional discount for in-store support to educate end customers get better understanding about product and clear for product positioning. B2C customers price adaptation strategy * In Betagro shop, this shop is selling only product which produced from Betagro.
The customers are currently having loyalty in products brands. No need to educate to them but need to increase sales per basket by giving services such as could call to order and delivery to customers. They could use price tactics by having special – event pricing in festive event such as Chinese New Year, Easter, etc. In summary, S-Pure eggs has only 1 price objective which is Premium price policy ; Higher quality at higher price; for high end customers while Major has a lot of pricing objectives and trategies to serves several target customers and needs. Betagro needs to educate target customers how S-Pure egg special and differentiate from others brands. If the customers perceive the value of product, they will re-purchase more in the future.
References; http://www. ryt9. com/s/nnd/1031119 http://www. foodindustrythailand. com/v17/index. php? option=com_content&view=article&id=1682&Itemid=134 http://www. betagro. com/index_th. php http://www. cpbrandsite. com/th/product/product_list. aspx? f=P&i=5