Varin Supaongprapa 6043322926

Adisorn Sribua 6043346026

COMPANY OVERVIEW

BUSINESS OVERVIEW
Processed Fruit Business Extract and Agricultural Business
Thai-based company specializing in ready to
Tipco Foods Public Company Tipco Biotech Company Limited
drink fruit juice, smoothies, and canned fruits,
with their own developed plant species and
• Canned pineapple • Extract Business
extracts and their patent pineapple species • Pineapple juice concentrate • Agricultural Business
called Tipco Homsuwan. • Canned aloe vera
• Canned tropical fruit
salads etc.

Founded in 1976
Consumer Business Retail Business
• Ready-to-drink fruit • Squeeze Juice Bar by Tipco
No.1 in market share of fruit juice and vegetable
juice and premium fruit juice juice products

• Natural mineral
Reported 3.56 Billion THB water (Aura)
Revenue in 2019

Source: TIPCO Business Overview

Company Overview Analysis Executive Summary Strategies Impact

FINANCIAL PERFORMANCE
2019 % to Sales Revenue 2018 % to Sales Changes %
Revenue Changes

Sales Revenue 3561064263 100% 4248050424 100% -686986161 -16%

Profit from investment in associate 732668446 21% 132661359 3% 600007087 452%

Cost of Sales 3178577480 89% 3394578070 80% -216000590 -6%

Selling and Distribution Expense 436828614 12% 604276166 14% -167447552 -28%

Administrative Expense 541720254 15% 439140641 10% 102579613 23%

Net Profit 207667159 6% -30876745 -1% 238543904 773%

KEY TAKEAWAY
• Sales Revenue decreased due to lower selling price and general decline of fruit juice market
• Cost of Sales decrease due to decrease in raw materials price (fruits and vegetables)
• Selling expense decrease because changes in Thailand’s new IFRS standard
• Administrative expense increase due to change in calculation of depreciation and production expense
due to shortage of fruits and vegetables
• Net Profit increase massively due to the 452% increase in profit from investment in associate

Source: TIPCO Annual Report

Company Overview Analysis Executive Summary Strategies Impact

EXTERNAL ENVIRONMENT ANALYSIS: PEST ANALYSIS
POLITICAL ENVIRONMENT
• Laws to protect consumers
• Laws on privatization process control
• Laws on businesses related to food and
drugs
• Government has supported the
establishment of new SMEs, encouraging
competitions
ECONOMIC ENVIRONTMENT
• Growth in health-conscious customers lead
to interest in healthy drinks
• New entrants brings immense competition to
the market and price war
• Natural environment (drought) also influence
the volume of production
Source: Team Analysis
Company Overview Analysis
SOCIOLOGICAL ENVIRONMENT KEY TAKEAWAY
• Apart from being health conscious,
consumers are also looking for
convenience
• Subsequently, producers must provide the
right customer solution which is ready-to-
drink juice that are worth the price, vary in
terms of choices, nutritious and most
importantly convenient
Tipco still has competitive advantages
over its competitors despite immense
TECHNOLOGICAL ENVIRONMENT competition and threats from new
entrants. The company can satisfy
• Technological advancements have customer needs through delivering
introduced new method of preserving drinks healthy products that comes in
including UHT juices suitable prices and packaging with the
• Product appearance, taste, variety are help of the technological resources it
important factors that consumers consider has.
when choosing a product
• Including freshness and cleanliness
Executive Summary Strategies Impact
SWOT & CORE COMPETENCIES
STRENGTH WEAKNESSES CORE COMPETENCIES
• Market Leader in Fruit juice market (in • Higher price than most competitors
Thailand) • Factories in remote location (high “Prime Minister’s Export
• Various product lines distribution cost) Award 2015: Best Thai
• Accepted as a “high standard” by customers • Some customers viewed fruit juices as Brand”
(good brand image) “unhealthy”
• Distribution channel has great reach to Market leader in terms of
customers (7-11) market share
• Have their own production channel
Advanced technology
OPPORTUNITIES THREATS
Product quality and taste
• Healthy Trends are growing among • Fruit Drinks’ market’s growth is declining
customers (healthy drink is one of TIPCO’s (viewed as unhealthy) Vertical integration
product line) • High Competition market
• Decrease in fruits and vegetables prices • Many substitute product (fresh fruits, etc.)
Advertisement and
public relations

Distribution Channel

Source: Team Analysis

Company Overview Analysis Executive Summary Strategies Impact

EXECUTIVE SUMMARY
PRESENT (2020) KEY ISSUES STRATEGIES FUTURE

Introducing new product

How can Tipco deal with the
(coconut juice) to attract new
emerging trend of healthy food Tipco will remain the
Tipco is currently the segments and compete against
& beverages? position of market
market leader in the our main competitor, Malee
leadership with an
fruit juice industry.
increase in sales
The company is
revenue of 2.46
aiming to maintain
billion THB (22.28%
market leadership in
growth), customer
terms of market
base and brand
share and product Opening a total of 15 ‘Squeeze
How can Tipco defends its recognition
quality Bar’ branches within the next 5
market position with the decline
years to improve to sales revenue
in sales revenue?
on the financial statement

Source: Team Analysis

Company Overview Analysis Executive Summary Strategies Impact

STRATEGY: INTRODUCING NEW PRODUCT LINE
CUSTOMER ANALYSIS COMPETITOR ANALYSIS WHY?
MARKET SHARE IN PREMIUM UHT JUICES • Consumers has become more
Others
9% concerned about the nutrition benefits of
Cocomax Tipco healthy drinks
9% 28%
• Functional drinks can integrate all the
nutrition needed in one product
• Looking for healthier alternatives
• Healthy juice market has become
• The pandemic has provoked consumers
Doikham saturated
to be more health-conscious 20% • There are only few players in the
• Drinks with low sugar content
functional beverages market
• Demands quality and safety
Malee
Unif
13%
21% HOW?
TARGET MARKET
MARKET SHARE IN PREMIUM PASTEURIZED JUICES
Florida's Others
Natural 4%
6%
Smile
8%
• Introducing “Functional Drinks”
Consumers are searching for more
• Middle age male/female who are soon Tipco
47% innovative, exciting and nutritious drinks
going to become more health conscious rather than conventional healthy juices
• Willing to pay a premium for products • Utilizing Tipco’s core competencies:
that can deliver what their bodies ask for Malee product quality and taste and advanced
35%
technology
Source: Team Analysis, marketingoops.com

Company Overview Analysis Executive Summary Strategies Impact

IMPACT FROM NEW PRODUCT LINE STRATEGY

CAGR CAGR
Brings innovation to the “beverage” 4.15% 8.27%
segment of Tipco

Normal projected revenue growth per

year: 5% 477.28
355 1822.53
247.58 1735.74
153.51 1653.09

Projected revenue growth with the new 71.4

1499.4
1574.37
1428
product line strategy
“Functional drinks” : 10% annually

Second mover advantage: able to

learn from B-ing (Singha Corp.) and
Amino Plus (Oishi Group)

Source: Team Analysis, Statista

Company Overview Analysis Executive Summary Strategies Impact

STRATEGY: EXPAND SQUEEZE BAR BRANCHES
HOW? Potential Locations
• Open more branches (total of 15 new Gym
stores) Target: Athletes, Limited
• Currently there are 34 branches healthy options
mostly concentrate within
Bangkok (23 of them)
WHY? Hospitals
• All other branches are in and
• Overall sales revenue of Tipco has been declining around Bangkok area (apart from Target: Patients, Visitors,
due to market saturation except for the Squeeze Central Korat Branch) Medical workers
Bar segment • Open branches in more big cities
• Squeeze Bar offers a more appealing product to e.g. Phuket, Chiang Mai, etc. Shopping centers
new generation of health-conscious customers: • Target on customers in large Target: Workers, teenagers,
smoothie, ice-cream yoghurt and cold-pressed cities to offer the choice of eating tourists
juice healthy while traveling
• During the pandemic lockdown, 45% of Thai
people are paying more attention to their health
Result:
→ Maintained market position and increasing revenue by taking
advantage of the healthy food trend
→ Increasing brand recognition: through advertisement with focus on
the “healthy” theme

Source: Team Analysis

Company Overview Analysis Executive Summary Strategies Impact

IMPACT OF EXPANDING SQUEEZE BAR BRANCHES

Raise sales revenue on the “retail” part CAGR CAGR

4.15%
of the beverage segment and improve 15.07%
the financial statement

Normal projected revenue growth per 497.3

year: 5% 607.51
323.04
499.8
194.33

Projected revenue growth with the

551.03
101.99
advertising and more recognition: 10%
39.2 524.79
499.8
476

Projected 2021: 13%

revenue growth 2022: 16%
with the new 2023: 19%
branches: 2024: 21%
2025: 23%
Source: Team Analysis, Statista

Company Overview Analysis Executive Summary Strategies Impact

OVERALL IMPACT

CAGR Growth
2020-2025
497.3
477.28
323.3 2430.04 CAGR CAGR
355 4.15% 10.17%
194.33
247.58 2314.32
101.99
39.2 153.51 2204.12
71.4 2099.16
1904 1999.2
Assumptions:
• Customer growth from
Squeeze: 5% per branch
annually
• Customer growth from New
Product Line: 5% annually

Source: Team Analysis, Statista

Company Overview Analysis Executive Summary Strategies Impact

EXECUTIVE SUMMARY
PRESENT (2020) KEY ISSUES STRATEGIES FUTURE

Introducing new product

How can Tipco deal with the
(coconut juice) to attract new
emerging trend of healthy food Tipco will remain the
Tipco is currently the segments and compete against
& beverages? position of market
market leader in the our main competitor, Malee
leadership with an
fruit juice industry.
increase in sales
The company is
revenue of 2.46
aiming to maintain
billion THB (22.28%
market leadership in
growth), customer
terms of market
base and brand
share and product Opening a total of 15 ‘Squeeze
How can Tipco defends its recognition
quality Bar’ branches within the next 5
market position with the decline
years to improve to sales revenue
in sales revenue?
on the financial statement

Source: Team Analysis

Company Overview Analysis Executive Summary Strategies Impact

THANK YOU
And now we
are open for
Q&A