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Decoding Thailand: Discovering the secrets and distinct characteristics

September 18, 2024

We invited Anisha (Director at Savant Marketing) and Bo (Head of Marketing at Seven Peaks) to talk about consumer behaviour, campaigns, and cultural aspects that affect doing business in Thailand.

In your experience, what are the key challenges of operating in the Thai market?

Kiana: Let's start with our first question. Both of you have worked in Thailand for a long time and have lots of experience with different brands, products, generations, and media channels.

I'm really interested to hear about your experiences. What challenges have you faced working in the Thai market? How have you dealt with these challenges and found success? Would anyone like to share their thoughts first?

Bo: As a foreigner, one big challenge is assuming everyone speaks English. This isn't true, so we need to adapt. In Thailand, you must localise not just the language, but also the culture.

For example, advertisements that work in America might not work here. Thai consumers react differently to marketing. There are even differences between North and South Thailand.

I find these cultural differences fascinating. Many companies struggle with this, but it's possible to overcome. You just need to adjust to the local culture.

A good example is KFC, one of the biggest fast-food chains here. In Thailand, they don't just serve chicken. They also offer dishes like fried rice with chicken, which you can't get in Denmark, where I'm from. KFC in Denmark doesn't change their menu for the local taste.

This is one of the main challenges in Thailand, but it's not insurmountable. The key is to adapt to the country's preferences.

Anisha: I think Bo read my mind! I agree with what he said. Let me add a few points.

First, it's not really a challenge, but more about understanding your market. Every market is different. As a marketer, you need to know who you're talking to and what they like. It's not just about demographics (like age or gender), but also psychographics (how people think and behave). It's similar to being a good salesperson.

You need to understand that Thai people can be both price-conscious and very trend-focused. For example, there are current trends like Labubu that are popular. Things can become popular quickly and fade away just as fast.

Also, social media is huge here. There are many ways to reach people online and offline, but social media plays a big role. Like in any market, the tools used in Thailand are different.

For instance, people here use Line more than WhatsApp. Billboards are common here. Many people rely heavily on TikTok. Each market has its own unique features. When Thai consumers want to buy something, they often look at the product first and then check prices on Shopee and Lazada (popular e-commerce platforms).

In Thailand, trends are very important for marketing. You need to stay up-to-date with what's happening on social media and online. What's interesting about Thailand is that trends can start very quickly. If something becomes popular, many brands will try to use it in their marketing. But these trends can also end very quickly.

The type of content shared on each platform is also different. So, when marketing in Thailand, you need to consider both where your audience is and what kind of content they like to see.

In smaller towns and rural areas, people often prefer to have more personal conversations. However, in big cities like Bangkok, people's behaviour can vary depending on the industry.

In Bangkok, many people prefer to do their own research before making decisions. Thailand is very diverse, so it's important to understand your audience. You need to know who you're talking to, where they are located, what type of content they like, and which communication channels they use.

It's also crucial to understand how to guide customers from first becoming aware of your product or service, all the way through to making a purchase. Finally, you should think about how to turn customers into loyal fans of your brand.

Each region and demographic group in Thailand is unique. It's not really about facing challenges, but more about understanding your market. This is true for any country, but in Thailand, there's often more to learn compared to other markets.

Bo: That's a great point about social commerce and customer engagement. In Thailand, especially for business-to-consumer (B2C) companies, there's a lot more interaction with customers compared to many other countries.

You can't just open a store and expect orders to come in. You need to actively engage with your customers. This is particularly important outside of Bangkok and other big cities, as you mentioned earlier.

Anisha: Let me add to what Bo said. In Bangkok, trends are really important. You need to plan your marketing strategy carefully to stay relevant.

In some markets, you can spend all your money at once and the effects last for a while. But in Thailand, it's different. For most industries here, you have to be smart about how you spread out your budget over time.

Kiana: This brings up a question I've been thinking about. You've mentioned trends, and I agree that Thailand is very trend-focused. When I worked in hospitality marketing, like for restaurants such as Cocotte and Maze, we focused a lot on trends. You're right about needing to use the budget wisely over time.

I'm curious about how quickly trends come and go in Thailand. Do you have any examples? How fast can a trend appear and then disappear? I think this information could be really helpful for our listeners.

Also, Bo, I'd like to hear your thoughts on this from a business-to-business (B2B) perspective. I think that could be quite interesting.

Bo: For business-to-business (B2B) companies, trends work differently than for consumer-focused businesses. It depends on how you look at trends.

B2B companies usually move more slowly with trends. They don't change as quickly as Anisha mentioned earlier about some trends lasting only five minutes.

However, B2B companies do follow trends too. They want to be where their customers are and stay relevant. B2B is different from consumer markets, but they still pay attention to trends.

Anisha: Trends can change very quickly here. Sometimes, something becomes popular and everyone talks about it. But after just a week or two, it's already old news. This doesn't happen with everything, but it's common for some online trends.

The important thing is to focus on what brings value to people. For businesses working with other businesses (B2B), it's about helping those companies focus on what's really important for their customers. You don't need to follow every trend - just the ones that add value to the company and its brand.

At the end of the day, it's all about value. What's useful for customers? Some things don't need to be valuable - they can just be fun. But if you try to do everything fun, you might end up doing a lot of work without much impact.

It's about finding the right balance. Thai marketers and companies are very good at bringing value and emotion to their work. This helps people remember them. Even if a trend ends, if a company brings enough value and emotion to it, people will remember it for longer.

Bo: Let me add something about trends in business-to-business (B2B) marketing. I call them buzzwords. Right now, everyone is talking about AI.

This is happening because the market here moves much faster than in places like Europe. New trends come and go very quickly. Companies need to keep up with these trends to stay relevant. If they don't, they risk falling behind or even failing.

How does regional diversity impact media consumption habits and marketing preferences?

Kiana: This is really interesting. You've talked about the differences between Europe and Thailand, and how diverse Thailand is in terms of language and culture across different regions.

I'd like to ask about this regional diversity. How does it affect the way people use media and respond to marketing? I know you've mentioned this a bit, but could you give more examples from different parts of Thailand?

For instance, some trends that work well in Bangkok might not be popular in other areas. Can you explain how marketing approaches differ across Thailand?

Bo: Thailand has many festivals, and each region often has its own. Companies are starting to use these festivals in their marketing, especially online. This is becoming more common.

These festivals give companies a choice: they can use them in their ads or not. If they do use them, it can really help their marketing. This is something you'll see happening in different parts of Thailand.

When we talk about digital marketing, there's a lot to consider. For example, Line (a messaging app) is very popular in Thailand, but not in other Southeast Asian countries except Korea.

Companies are starting to use Line for marketing. They make stickers and advertise using the festivals and local events. This approach works well in Thailand.

Anisha: To add to what Bo said, media consumption in Thailand is different from other places in Asia-Pacific. Some areas have very different habits.

Across Thailand, you'll see some common things in marketing and media. For example, billboards are popular, and many people use apps like TikTok, Shopee, and Lazada.

While these platforms are used all over the country, how people use them and interact with them can be different depending on where they are. Let me give you an example from my experience with clients.

When we interact with consumers in Bangkok with the same product, it's much more transient. They want to ask their questions. They want to do their own research, and they want to make a decision and come back. They don't want to have long conversations with you very much.

In big cities like Bangkok, people behave differently. They value their time a lot. They prefer to ask quick questions, do their own research, make decisions quickly, and avoid long conversations.

This is different from other parts of Thailand. In smaller cities and towns, people often like talking to salespeople in person, prefer to see products offline, and enjoy having longer conversations to get more information.

People interact differently with businesses depending on where they are in Thailand. For example in the north and northeast, people prefer to talk face-to-face with sales. They often visit stores in person. In Bangkok and nearby areas, most interactions happen online. In the south, customer behaviour is different from both the north and Bangkok.

These differences show that while people might use the same platforms across Thailand, how they use them varies. This is because consumer behaviour changes from region to region.

Consumer behaviour also affects how people respond to marketing. For example, humour in advertising can be different in various parts of Thailand. How a brand uses humour depends on its image.

Playful brands can create different content for different regions, while keeping their overall brand theme consistent. More serious brands might need to be more careful with regional differences in humour.

The key is to understand that while the platforms are the same throughout Thailand, how people use them and respond to content can be quite different depending on the region.

We found that people in different parts of Thailand prefer to have more conversations with businesses compared to other areas. This is important because it affects how customers interact with businesses, from first learning about a product to finally buying it.

It changes how customers move through the buying process, what information businesses need to put online, and what information businesses need to discuss directly with customers. This helps guide customers from first becoming aware of a product to eventually making a purchase.

Kiana: Have you noticed any common mistakes or issues that brands make when marketing in different regions of Thailand?

Bo: In Thailand, we see advertisements in English, Thai, or a mix of both. It would be interesting to test how these different approaches work.

When we think about different regions in Thailand, there are some important differences. Bangkok is more international, so English might work well there. People might even think it's cool to use English.

In other parts of Thailand, like the northeast, people might not understand English as well. If you're advertising in these areas, it's safer to use Thai. This helps you connect better with the local people.

As an advertiser, it's important to adapt your language to fit the region you're targeting. This way, you can make sure your message is understood and appreciated by the local audience.

Anisha: I agree with Bo. Language is really important in Thailand. While many people understand English, they're usually more comfortable with Thai. Finding the right balance is key. Let me give you an example.

I can read and write Thai, but I'm more comfortable with English. When I see something long in Thai, I often avoid it because it feels like too much work.

It's crucial to understand what language people are comfortable with. The region matters a lot too. Remember, there are also many people in Thailand who can't read Thai.

We need to balance these factors. Another common issue, not just in Thailand but with many brands, is trying to move customers from awareness to purchase too quickly. This often doesn't work.

Bo and I have talked about this. You can't expect people to buy right after they first learn about your product. If you push for a sale too soon, customers will feel they don't have enough information and will likely leave.

It's important to understand your customers. Know what they know and what information they need. This can vary by region. Guide them through the process to build trust before trying to make a sale.

This approach can differ across regions because people make decisions based on their knowledge and experiences. The key is to really know your customer. That's the most important thing.

How do you balance innovation with data and research while managing risks and ROI?

Kiana: You talked a lot about data, which I also noticed when I was doing marketing in Thailand. We based many of our decisions on data. But there's another side to this.

When we think about viral and trendsetting campaigns, sometimes it's just a gut feeling - we just do it. So how do you balance this? How do you come up with new ideas while still using data and research? How do you do this without losing money or taking too many risks?

Bo: As someone who loves data, I want as much as I can get. But we also need to think about return on investment. We can't spend all our money on research, or we won't have enough left for the actual marketing.

However, if we don't do any research or use the data we have, our message might not reach the right audience or be understood correctly. This is important no matter where we're marketing - in English or Thai, in Chiang Mai or Bangkok.

Getting data might be harder in some areas, but Thailand has an interesting advantage - it's very mobile-focused. There are more SIM cards than people here. Many Thais skipped using laptops and went straight to smartphones. Even in rural areas, people often have iPhones but no computers.

This is great for collecting data. When people use phones, we can gather a lot of information, often without them realizing it. So it's crucial to use this data, because we can get information from people all over Thailand.

Anisha: Data is useful for making decisions, but there are two main problems. Many people don't understand the data they have. This is a big issue. They struggle to make sense of the information and can't use it effectively.

We need to remember that data doesn't change human nature. People will still behave like people, regardless of how much data we have.

Remember, no matter how many tools or screens we have, people will always be people. Data supports this idea. Even with technology between us, we still need to understand how humans think and act. It's important to look at things from a human perspective to understand how people will behave.

Understanding data is important, but it's not everything in marketing. It's hard to predict what will become popular or catch people's attention. Some marketers claim they can guarantee success, but that's not realistic. The truth is, we can't always know for sure what will work.

There's no perfect formula for marketing success. The key is to listen closely to your customers, analyse your data carefully, and keep improving your approach. By doing these things, you can work towards the best results possible within your given timeframe.

It's about using data wisely, combining different pieces of information, listening to customers, and always trying to improve. This is the best approach. I never tell my clients, "Do this, and it will definitely work." We can't be sure of that.

We can use our experience to suggest what we think will work best. Then, we can optimise our approach, check our results regularly, and make changes as needed.

This is the key to success. It's all about using data, applying our experience, and continuously improving.

Bo: Most of our clients have a common problem. They tell us, "We have lots of data, but we don't know how to use it. We're afraid of it because we don't trust it." This is our main job - to help them trust and use their data properly.

Our most important task is to show clients how to use their data effectively. When you have a lot of data, there are many ways to use it. But you have to be careful. Sometimes people misuse data to support what they want to believe, even if it's not correct.

That's why it's crucial to clean your data first and make sure you can trust it. These days, we get data from many different sources like LINE, Facebook, and Google. It's important to handle all this data correctly.

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