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Point2 Untuk Waxy
Point2 Untuk Waxy
Point2 Untuk Waxy
Siam Waxy Standard Co. Ltd, a family-owned company founded in 1973, is the first waxy
manufacturer and distributor of leather nourishing and car care products in Thailand. Their
product ranges from car interior and exterior care to office and household furniture care. The
company acquired ISO 9001: 2000, an International Quality Standard Qualification from the TC
Cert Certification Body for QM Systems of WTY Systems GmbH in 2001, and has been
promoting quality assurance ever since.
Siam Waxy uses both primary channels to market, distribute and sell their products, namely
General Trade (4500 shops), Traditional Trade (TT) and Modern Trade (MT) which are further
categorized by locations (Northern, Southern, Eastern, Western parts of Thailand). Their
products are available in most leading hypermarkets, supermarkets and convenience stores all
around Thailand. Over the years Siam Waxy has survived fierce competition, from 6-7
competitors to only 2-3 competitors, 80% of their sales are mainly from its wax polished product
range.
Exports to neighbouring countries are mainly done through partnerships with local companies.
To date, Siam Waxy has been exporting to Vietnam (2006), UAE (2006), China, Myanmar,
Nepal, Vietnam, and Laos (2019).
Business Journey:
● 1997: Bath currency fell against USD ( from USD 1= Bath 20 to USD 1= Bath 50). Siam
Waxy responded by cutting the advertising and promotion budget, recalculating the value
of their stocks, adjusting the selling price but maintaining the same quality of product.
● 1998 – 1999: Crisis due to appearance of counterfeit products in the market. The
company responded by selling One Pack Premium Promo and also Product Bundling, the
sales started to go up ever since.
● 2015: Heavy rain and flooding in Bangkok had a huge impact on distribution and
contributed to the decline in sales. The company could not do much but waited until the
situation went back to normal.
● 2018: Cost of raw material increased significantly (2x the cost), the company responded
by cutting the promotion cost (did not bundle products).
● 2020: COVID-19 pandemic contributed to the decline in sales. A lot of shops closed but
thanks to their extensive distribution channels - supermarkets and convenience stores
were still open - thus the impact was not too severe.
Moreover, it can be seen from the graph that car care products are part of the Grocery and
household products category and 92% respondents who bought online reported that they usually
buy their products through Kaidee which is an online shopping portal in Thailand.
The global pandemic in 2020, COVID-19, has accelerated the shift towards the digital world
even more, and this shift is likely to have a lasting impact. Businesses who want to stay relevant
and secure their market should think about their online presence.
Currently Siam Waxy products are sold online domestically through resellers but not from direct
selling. Thus Siam Waxy wishes to increase their online presence as part of their next strategic
moves.
PROPOSED SOLUTIONS:
1. BUILD ONLINE PRESENCE
A. THAI ONLINE MARKETPLACE
Here are some TIPS AND TRICKS to sell in the marketplace:
● FAST RESPONSE: Nowadays people seek fast responses and those who can
provide the fastest response usually get the sales. Make sure to set the operating
hours for the online store then assign employees to manage and answer all the
questions that the potential buyers may have within, for example, 1 hour.
● TRUSTWORTHY AND ATTRACTIVE ONLINE PROFILE: The profile of the
store is very important to gain the trust of potential customers. This includes the
name and the description of the company, address and contact numbers, product
range, social media accounts, website links, and other important information.
Design the online store in such a way that is unique and attractive to potential
buyers.
● PROVIDE A VARIETY OF SAFE AND SECURE PAYMENT METHODS:
Buyers favors different types of payment methods - some like to use credit cards,
some like to use e-wallet, bank transfer, etc. Payment flexibility is not just good
for customers but also for the store because it promotes faster and more complete
payments and signals to customers that we are on their side.
● OFFER PROMOTIONS ONLINE: To get people to buy online, Siam Waxy can
offer promotion that is not available in physical stores. For example, offer free
products (bundling) if they buy online in the marketplace. This will surely bring
more crowds to the marketplace.
● PROVIDE VARIOUS TYPES OF SHIPPING SERVICES: Some online buyers
are very sensitive with shipping costs. By providing a variety of choices will give
buyers flexibility to choose which service they want - a fast but more expensive
service or a slower but cheaper service. Buyers can also choose when they want to
receive their package, office hours or after office hours.
● CLARITY OF PRODUCT DESCRIPTION: Make sure to include all product-
related information such as ready stock/PO, dimensions of products, weights,
variants, no of stocks available and the corresponding price. Incomplete
information may cause opportunity loss.
● MAKE SURE TO GET A GOOD RATING FROM CUSTOMERS: Deliver
product and service as promised - fast response and delivery, good packaging.
Assign employees to do after-sales service, ask the buyers to give feedback and
rating for the product and service they received.
Picture: Example of an online car-care store in an Indonesian marketplace.
E: OPTIMISED FOR MOBILE DISPLAY: More and more people access the internet
using their mobile phones rather than computers/PC. Siam Waxy needs to make sure the
website display is not distorted when accessed using mobile devices.
F. BUILD PRESENCE IN SOCIAL MEDIA: One of the many good points of Social
Media is that it brings people together. It strengthens connections between people and
helps to spread knowledge. Siam Waxy can leverage or make use of these platforms to
get people to know more about the company and its products, building the company’s
brand image. This can be done through an internal digital marketing team or outsourcing/
using professional online digital marketing service. Having digital content posted
regularly can improve the credibility of the company and the products.
Social Media platforms that Siam Waxy can try and Some useful tips:
● YOUTUBE:
- Create any interesting videos related to products offered - how to use the
products, etc.
- Hire a celebrity/ social media influencer / well known car racer/
enthusiasts to help promote the products.
- Videos can be about companies recent activities, sponsorships, CSR, or
any educational contents about automotive/ cars.
- Update content regularly.
● INSTAGRAM: one of the most popular social media and has 16 millions users in
Thailand based on Statista data as of January 2021
- Create an Instagram Business Account.
- Hire a celebrity/ social media influencer / well known car racer/
enthusiasts to help promote the products.
- Create contents (photo/video) related to product and brands.
- Upload regularly on Instagram, make use of the story, highlights and IG
Live features.
- Promote some appealing contents with Instagram Ads
- Take advantage of the statistics from the business accounts to identify the
proper target market
A. CAR CLUBS SPONSORSHIP: offer to sponsor some car clubs events. Siam Waxy can
also put banners, open a booth to sell and promote the products, give product samples for
people to take home.
B. CAR WASH/CAR SPECIALIST COLLABORATION: offer to collaborate with car
wash and car detailing businesses. Siam Waxy can also offer to put a well-trained staff to
do product demonstrations on site, or provide product training.
C. RACING TEAM SPONSORSHIP: sponsoring a team usually brings excitement
around a brand and builds awareness. A good example is Monster/ Red Bull energy drink
products, they are known worldwide for diligently sponsoring well-known motorcycle
racing teams, which in turn make their brand even more well-known. Siam Waxy can
follow this step by sponsoring a racing team that has a good chance of winning. Their
wins will also bring excitement and awareness to the company’s brand.
D. EVENT SPONSORSHIP: Thailand is well-known for its tourism and a lot of events are
held within the country. Siam Waxy can choose to sponsor some of these events to gain
more recognition to the brand. Thailand is also known for its two wheel motorsport, with
the new Buriram International Circuit that hosts many international racing events
including local. One of the upcoming events is MotoGP which is going to be held in
October 2021. Siam Waxy may consider sponsoring this event.
Siam Waxy can arrange purchases made online by customers to be delivered/ distributed from
the 4500 Shops across the country to reduce the distribution cost. This way the shop owners are
also happy and do not feel threatened by the company’s extensive effort to promote/sell online.
They can also enjoy increase in sales and faster stock turnover.
CHALLENGE 2: Entering a new foreign Market, namely Indonesia, strengthening its
position as a Global Company
In Thailand Siam Waxy products are the preferred brand by consumers. It is only natural if their
next strategic move is to tap into new foreign markets. Currently Siamwaxy has been exporting
their products to neighbouring countries such as Myanmar and Laos. In 2019 their export
accounted to 10% of their total Sales, a 2% increase from previous years. In the coming years,
Siamwaxy wishes to enter the Indonesian market to increase their global presence and secure
more sales for the company.
On a social level, just like Thai people, Indonesian are also facing a shift towards the
digital world. Nowadays they seek convenience, fast, status and quality products. Before
COVID-19, online shopping was growing at a steady pace, but the pandemic has put e-
commerce at the forefront of retail nowadays. Advancement in technology has made this
shift possible.
Moreover, Indonesia and Thailand both signed the ASEAN Free Trade Agreement which
facilitates direct investments in neighbouring countries at a very low tariff rate. This
makes Indonesia an even more attractive choice for investment for Siam Waxy.
Hypermarket:
Supermarket:
Moreover, KIT brand is also at the top of search results for car care products at major
online shopping portals/apps in Indonesia, namely Tokopedia and Shopee. These KIT
products are produced by PT SC Johnson & Son Indonesia, a joint venture company with
SC Johnson & Son, Inc. USA who owned the majority of shares.
4. Products Comparison
As shown on the graph, although KIT’s performance is not as good as its competitor
brands, it is still the cheapest, the easiest to use, and the easiest to get. Note that the result
of our survey also showed that products accessability (available everywhere) and
availability (always in stock) are the most important factors in choosing a car care brand
for our respondents (76%).
* KIT Meguiar’s TurtleWax
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PROPOSED SOLUTIONS:
From the market analysis, 3 things can be concluded:
1. Indonesian also experienced a major shift in buying online due to pandemic COVID-
19. These people get information about new products through friends/families and
social media.
2. Indonesian people wash their own car but also use professional help which opens up
an opportunity for companies to sell not only to B2C but also B2B.
3. KIT is the preferred brand in Indonesia due to its accessibility, availability,
practicality and relatively cheap price. The brand dominates both physical and
online retailers.
Hence, we propose that a faster and more efficient way to enter the Indonesian market
right now is through ONLINE. In order to successfully penetrate the Indonesian car care
market, Siam Waxy first needs to make a huge presence in online and social media
platforms. In the past 5 years through automotive online platforms, automotive
influencers have played a great role in the advancement from merely a car user to a car
enthusiast. Siam Waxy may offer sponsorships and build strong collaborations with
these influencers, they have millions of followers in YouTube and Instagram, their video
series and posts will surely bring attention to the company’s brand and persuade people to
buy the products. While building brand image and awareness, Siam Waxy can also open
Official Stores in online marketplaces in Indonesia, such as Tokopedia, Shopee and
Bukalapak. These are the three biggest online marketplace to date and able to bring
products from abroad to Indonesia. Selling the products online is a faster and more
efficient way to enter Indonesian market rather than getting them on supermarket shelves.
It is going to be quite difficult to compete with a top-of-mind brand like KIT if Siam
Waxy’s products are put head to head on the same shelf. KIT brand has been in the
business for quite some time, a brand that is sold almost everywhere at an affordable
price.
In addition, Siam Waxy can offer programs to B2B in the automotive business (such
as professional car services) preferably in big cities in Indonesia. Indonesia has a range of
high, middle and lower class Car Care and Detailing Services all around the country.
Siam Waxy needs to carefully select the brand's positioning and make attractive
offers to the appropriate group of Car Care Services and Detailers, ask them to carry
the products and give incentives/ rewards if they reach a specific target. With this B2B
strategy, hopefully Siam Waxy can start gaining brand recognition each time the B2B’s
customers use their service.
CONCLUSION
To conclude this proposal, we proposed two big solutions for Siam Waxy. The first one for the
Thailand market itself. The online market in Thailand is a big opportunity for Siam Waxy as the
global pandemic in 2020 has also accelerated the shift towards the digital world and most likely
will have a lasting impact in the future. The company has been partnering with resellers, but we
do recommend increasing your company's online presence as part of your strategic moves.
Strategies for the online market are mentioned extendedly at the previous part of the report, but
some of the key takeaways are: coordinating with the local e-commerce to sell the products,
adding a direct purchase through your website, taking advantage of online advertising, and
ultimately using social media (Instagram, youtube, facebook) to promote your products and
brand, as well as boosting your sales. In addition to the online market, the other strategies are by
partnering with the local car care businesses and events partnership. With this partnership,
your products will be demonstrated properly to the customers so they understand the quality of
the product. The end goal for partnering with the local businesses or by joining an event is to
gain brand awareness, word of mouth, and to increase the revenue of the local businesses, thus
will also increase your company overall revenue.
As for the Indonesia market, Waxy needs to make a huge presence with making collaborations
with automotive influencers as they play a great role in influencing automotive users, whether
it is car user or enthusiast. To complement the huge presence, its product needs to be available
in bigger marketplace like Tokpedia, Shopee and Bukalapak so customers can access and get
the product easily especially in this pandemic situation where online shopping rate is
unprecedented. For the B2B strategy, Waxy needs to collaborate with the appropriate class of
car care and detailer service providers so it fits right into the market with indirect brand
awareness (car owners use Waxy through the services they bought from car care and detailer
service providers).
REFERENCE:
SURVEY RESULT
Filtered respondents: 126 people (all having car)
Age:
Summary per Question
3. Which of the following brands of car care products are you familiar with? (can choose
more than one)
a. KIT (95.2%)
b. Carrera (30.2%)
c. Meguiar’s (35.7%)
d. Turtle Wax (27%)
e. Sonax (16.7%)
4. Which of the following brands of car care products have you used before? (can choose
more than one)
a. KIT (91.3%)
b. Carrera (22.2%)
c. Meguiar’s (25.4%)
d. Turtle Wax (25.4%)
e. Sonax (11.1%)
7. How much money are you willing to spend on car care products (one time purchase)?
a. Rp 0 - 50.000 (20.6% - blue)
b. Rp 50.000 - 100.000 (38.9% - red)
c. Rp 100.000 - 200.000 (23.8% - yellow)
d. Rp 200.000 - 300.000 (10.3% - green)
e. > Rp 300.000 (6.3% - purple)
Note: 1 THB = Rp 464 (29 March 2021)
8. Where do you usually buy your car care products? (can choose more than one)
a. Supermarket (69.8%)
b. Convenience store (33.3%)
c. Tools store (38.9%)
d. Online marketplace (27.8%)
e. Brand’s official website (5.6%)
f. Other offline stores (19%)
In order to import, the importer should have an import permit named “API-U” that issued by
Indonesia Trade Ministry.
From the website of INSW ( Indonesia National Single Window ), we find that the HS Code that
might be suitable for SiamWaxy Car Wax is 3405.90.10
All the import charges are :
Import tariff : 15%
Taxes : PPn 10% + PPh 7,5%
But since Siam Waxy is produced in Thailand, based on regulation of Indonesia Finance Ministry
about Preferential Tariff, Ref. 28/PMK.010/2017 : Importer no need to pay for Import tariff as
long as they can attach COO ( Certificate of Origin, Form AANZ ) and when doing the online
Import declaration ( PIB / Pemberitahuan Impor Barang ) at destination port put the facility code
58.
For assumption, the final price of the product to be delivered to customer warehouse in Indonesia
might be calculated asf :
CNF Price + 10% import clearance charge + 10% PPn + 7.5% PPh.
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