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Marketing the Nation. Philip Kotler, Ph.D. Kellogg School of Management Northwestern University CEO Forum Bangkok, Thailand October 18, 2001. Strategy Development. Situation Analysis SWOT Objectives Strategies Implementation. Situation Analysis: Past Policies .

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Marketing the nation l.jpg
Marketing the Nation

  • Philip Kotler, Ph.D.

  • Kellogg School of Management

  • Northwestern University

  • CEO Forum

  • Bangkok, Thailand

  • October 18, 2001

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Strategy Development

  • Situation Analysis

    • SWOT

  • Objectives

  • Strategies

  • Implementation

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Situation Analysis: Past Policies

  • Thailand’s annual growth was 8% between 1991 and July 1997 when the currency collapsed.

  • 1960s: Import substitution

  • 1970s: Export promotion

  • 1980s: Foreign direct investment

  • 1990s: Trade liberalization

  • 2000s: ???

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Situation Analysis: Strategy Dilemma

  • Past growth was based on factor input growth, not productivity (Paul Krugman)

  • Problem with factor-driven growth: China and IndoChina will be cheaper.

  • The nutcracker dilemma: Thailand is caught in the middle between low cost-based competitors (China) and high value based competitors (Italy, Japan).

    • Low cost based country: stagnation, unemployment, shortage of hard currency, second class economic power.

    • High value adding country: develops sophisticated industries with differentiation and niche potential.

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Situation Analysis: Thailand’s Strengths

  • Good natural resources

  • Low labor costs

  • Large internal market

  • Democratic government, politically stable, safe haven (Switzerland)

  • Good access for reaching other markets in Southeast Asia, China and India

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Situation Analysis: Thailand’s Weaknesses

  • Bad bank loans

  • Credit crunch

  • Bankruptcies

  • Weak capital inflow

  • Unemployment

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  • First, get out of the crisis.

  • Second, improve international competitiveness.

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Objective One: Escaping from the Crisis

  • Fighting Unemployment

    • Many Thais may come back to Thailand from the Middle East

    • Many unemployed Thais will go to villages

    • Undergraduates should stay in school one extra year to pick up more skills

    • Unemployed MBAs introduced to program for entrepreneurs

    • Slow down company downsizing through consulting and subsidies.

    • Start large scale government work projects

  • Get banks on a sound footing. Thailand Assets Management Corporation.

  • Companies need to revise their product mix, segment mix, customer mix, and marketing mix.

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Objective Two: Improving International Competitiveness

  • Thailand needs to improve productivity, innovation, and marketing.

  • Examples of specific objectives:

    • Among top five trading countries in Asia,

    • Occupy eight niches in world markets.

    • Achieve three global brands.

    • In top ten more favored countries to invest in.

    • In top ten tourist destinations.

    • In top ten with high quality of life.

    • In top ten with social and political stability.

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  • Choose the industries to develop.

  • Improve the financial system.

  • Facilitate entrepreneurship.

  • Support small and medium scale enterprises.

  • Help villages and cities develop place marketing.

  • Consider import substitution.

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Strategies: Industries to Develop

  • Tourism

    • Green tourism, quality tourism, Japanese weddings, Second Phuket, Long stays for retired people, “Be My Guest” program

  • Promote Thai food restaurants around the world.

  • Promote entertainment industry in Thailand.

  • Build auto industry; make Thailand, “Detroit of the East.”

  • Build natural foods industry.

  • Apply biotechnology to agriculture.

  • Some industries have to be extended (Thai foods); some strengthened (tourism, entertainment); and some started (Biotech)

  • Two types of companies:

    • Physical based companies (speed, quality, delivery)

    • Knowledge based companies (design, differentiation, branding, high value add)

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Strategies: Encourage Entrepreneurship

  • Ministry of Entrepreneur Development. One stop service and lending and training.

  • Micro-lending

  • Drucker’s suggestion

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Strategies: Support Small and Medium Scale Enterprises

  • SMEs that feed into LSEs.

  • SMEs that feed into international markets.

  • SMEs that feed into local markets.

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Strategies: Build Places

  • Places need to develop place marketing plans.

  • One product, one village: already 4,000 products. Marketing needed.

  • A few products will end up in international market (Thailand Plaza); some in regional market; many in domestic market; most in local market.

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Strategies: Import Substitution

  • Machinery (raise tariff)

  • Grow flowers and fruit here that were imported

  • Grow quality beef

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  • Role of government

  • Office of Opportunity Development

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Implementation: Government’s Role

  • Government should be the driver. Guided capitalism.

  • Build infrastructure.

  • Improve credit availability.

  • Build public service information.

  • Deregulate, privatize, where appropriate.

  • Lower tariffs on luxury products.

  • Reduce bureaucracy

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Implementation: Opportunity Development

  • September 11 creates new opportunities for Thailand. Every sector must develop a list of opportunities.

  • Needed: Opportunity Development Salesforce

    • Don’t wait for industry and investors to come here. Go and market to them.

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  • Thailand is better situated that neighboring countries that went hi-tech.

  • Thailand must position itself as a safe neutral haven in a troubled world.

  • Government must apply business and marketing thinking to support recovery and competitiveness.

  • Thailand must extend and strengthen present industries and build new ones that have high value-added, knowledge-added content.

  • Thailand needs to apply marketing skills in order to turn ideas into results.