Market Situation

In 2023, the bagged rice market in Thailand is expected to be valued at approximately 60 billion baht, with an average growth of about 3-4% per year. Although rice consumption per capita in Thailand is trending down from 100 kilograms per person per year to about 90 kilograms, many believe that consuming rice contributes to weight gain, leading to a shift toward healthier foods. Nevertheless, rice remains a staple food for Thais and plays a vital role in nutrition as it is a source of energy and essential nutrients.

Despite the decrease in overall rice demand, interest in health-conscious rice varieties, such as brown rice and unpolished rice, continues to rise, particularly among health-conscious consumers. The health-focused rice market is valued at approximately 2-3 billion baht and has a growth rate of no less than 10% per year, indicating opportunities for market expansion in rice products that meet health and convenience needs.

PESTEL Analysis

Political: The government has policies to enhance the quality of agricultural products in Thailand, emphasizing the elevation of agricultural product prices and promoting Thailand as a global Agriculture and Food Hub, alongside pushing Thai jasmine rice as a Soft Power.

Economic: The GDP growth rate is projected at 2.8% in 2023, supported by increased private investment and consumer spending related to tourism, along with rising numbers of both Thai and foreign tourists (Office of the National Economic and Social Development Council, 2023).

Social: Thai consumers use social media as their primary news update channel, ranking number one globally (Bangkok Business Online, 2021). This necessitates that ข้าวตราฉัตร communicates its brand increasingly through social media.

Technology: ข้าวตราฉัตร has developed a cold storage technology at 15°C to lock in freshness, ensuring that the rice retains its aroma and texture similar to freshly harvested rice in opaque metalized bags.

Environment: ข้าวตราฉัตร has adopted world-class innovations in packaging to facilitate recycling and help reduce greenhouse gas emissions, contributing to the fight against global warming by minimizing plastic use and energy in production (Bangkok Business, 2021).

Legal: Carbon taxes are imposed directly on production processes in industries according to the EU CBAM measures, which Thailand has adopted (Pollution Control Department, 2023).

SWOT Analysis

Strengths

- Extensive distribution network both domestically and internationally, allowing ข้าวตราฉัตร to reach consumers widely.

- A diverse range of rice products, including jasmine rice, white rice, brown rice, and rice berry, catering to varied consumer preferences.

Weaknesses

- Heavy reliance on jasmine rice sales, making the brand vulnerable to quality or yield issues affecting sales and consumer trust.

Opportunities

- Growing demand for health-oriented rice products such as brown rice and rice berry, offering ข้าวตราฉัตร the opportunity to develop new products that meet health-conscious consumer needs.

Threats

- Fluctuating rice prices and production costs could impact company profitability, particularly due to natural disasters or economic issues.

- A shift in consumer preferences toward other food options, such as ready-to-eat meals or non-rice-based foods, may reduce demand for rice products.

Consumer Insights

Consumers face challenges with storage and usage of bagged rice. Current bagged rice products often present storage inconveniences, taking up considerable space and being prone to tipping over. Additionally, there are concerns about moisture and pests, such as ants or other insects, which complicate storage and make traditional bagged rice inconvenient.

Beyond storage issues, measuring the right amount of rice for cooking is challenging, especially for those living alone or not cooking rice frequently. They may be unsure about the quantity of rice and water needed, leading to less-than-ideal cooking results.

Thus, consumers seek products designed for ease of use and storage, ideally with features to prevent moisture and pest intrusion to maintain rice quality. Packaging that facilitates easy measurement of rice and water would greatly enhance user experience.

Target Market

Individuals with limited space living in condos or dormitories require packaging that is convenient for storage and helps accurately measure the amount of rice needed for single servings.

Packaging Development

We are committed to designing packaging that meets consumers' needs in every aspect, both for storage and environmental friendliness. Our packaging will be a rectangular box (10*10*20 cm) that simplifies storage, keeps the rice from tipping over, and holds 2 kilograms of rice. It will feature a large lid that can double as a measuring cup for easy portioning. This packaging will protect against moisture and pests and can be reused for refilling with rice.

Our rice container will be made from HDPE (High-Density Polyethylene), offering strength and impact resistance, moisture protection, and lightweight convenience for transportation, with the added benefit of being recyclable to promote environmental sustainability.

Strategy:1 Server Ready-to-Cook Rice Box

**Why**: Given that our target market consists of individuals in condos with limited storage space, we designed the packaging for convenience and to stand out, attracting customers and fostering brand recognition while clearly communicating the product's safety and eco-friendliness.

Objective

1. Differentiate from competitors by leveraging the unique features of the packaging as a selling point to boost sales and consumer interest.

Details

1. Build product awareness through promotional efforts on the brand's social media channels.

2. Set up booths at various shopping malls for 3-4 days at a time.

Duration: 2 months

KPI:

1. Product promotion through online channels targeting 3,000,000 views.

2. Booth events targeting 2,000 attendees per event.