INNOVATION AND ADDED VALUE PAY OFF FOR SCG FIRM

       SCG Building Materials, a subsidiary of the Siam Cement Group, has a simple marketing strategy: "Create better functions for all." The company's drive for innovative products and added value has won it acclaim within the giant conglomerate.
       SCG Building Materials offers a range of products, including tiles, faucets, Cotto-brand sanitary-ware, CPAC Monier-brand roofing materials, CPAC Design-brand paving blocks and Siam Fiber Glass-brand insulation products.
       President Pichit Maiphum said SCG Building Materials was forced to focus on innovative products and adding value to others because that generated higher returns on investment than producing and distributing cheaper products in a market with fierce competition and low profit margins.
       "There is high competition for our products, so we have to have a marketing strategy of producing creative building solutions. This has more value than simply selling [conventional] products," he said.
       The strategy, pursued over the past four to five years, has led to SCG Building Materials winning three out of four awards in the Siam Cement Group's first "in-house" Marketing Best Awards 2009.
       The awards recognise superior marketing strategies, in which companies have built their brands and created new distribution channels, among SCG's subsidiaries. Eighteen marketing teams competed for the awards this year, the first time the competition has been held. There were only four awards: the SCG Marketing Best Award, a first runner up, a second runner up and Creative Best.
       SCG Building Materials' three awards included first runner up for Cotto Speed Bathroom, second runner up for the Disney Collection by Cotto Tile, and Creative Best for Spark the Smart Installer, by CPAC Excella roof tiles.
       Siam Sanitary Ware Industry marketing specialist Parapapar Atcharanukul, who led the Cotto Speed Bathroom team, said the company had succeeded in creating a marketing solution for tiles and sanitary-ware by offering a system in which it could design, renovate and build a customer's bathroom in seven to 15 days.
       The company is currently developing the building concept to make it even faster in the future. This adds value to the products, rather than simply selling ceramic tiles and sanitary-ware, she said.
       Cotto (Disney) Thai Ceramic marketing manager Pranee Chansuroj said the company created co-branded products in deals with globally-recognised brands such as Disney. This differentiated the products from normal ceramic tiles.
       The company plans to join other global partners to produce more co-branded ceramic tiles this year, building added value for its products.
       The presales manager for Excella roof tiles, Siriwan Lila, said Thai Ceramic Roof Tile had created a new distribution channel through local residents to the Thai temple market.
       The company recognised a business opportunity in offering quality roof tiles for use on temples.
       Previously, community funds used to renovate temple roofs were spent on locally made roof tiles of low quality.
       Pichit said the three awards proved that his company's strategy was succeeding in building its brands. However, market pressures meant his company would have pursued the marketing strategy whether it received awards or not.