CPF WANTS TO SPONSOR PREMIER LEAGUE TEAM WITHIN THREE YEARS

       Aiming to achieve global-brand status, Charoen Pokphand Foods (CPF) will adopt a sports-marketing strategy that includes plans to become a sponsor of an English Premier League football team within three years.
       Asian representatives of Premier League club Liverpool have been in talks with a number of major Thai corporations including CPF, Singha and Central Group. The representatives presented a business proposal and outlined a range of potential benefits for the targeted partners.
       Becoming a main sponsor of a Premier League team would give the CP brand global exposure, and the firm direct access to the football fans it has targeted.
       Suphat Sritanatorn, CPF's senior vice president for marketing, said the firm is considering not only English teams but also clubs in Spain's La Liga and Italy's Calcio Serie-A. In England, CPF is interested in Liverpool, Manchester United, Arsenal, Manchester City and Everton.
       The company must first consider many details, especially which team, league and division would create the maximum benefit for the company's CP brand, Suphat said.
       Currently, the only Thai-owned brand to sponsor an English team is Chang beer, owned by the Sirivadhanabhakdi family, which has a deal with Everton. Chang last year extended the sponsorship deal for three years at a cost of ฃ8 million (Bt442.5 million).
       "The company is in talks with interested football teams in the UK. We expect that the CP brand will become the main sponsor of a Premier League team within the next three years," said Suphat.
       CPF is already a major sponsor of international boxing bouts and the Thai League football competition.
       Suphat said CPF spends an average of Bt400 million to Bt450 million per year on marketing. Of the total, Bt180 million to Bt200 million is allocated to the domestic market and the remainder is for the export market.
       The global economic crisis prompted the company to increase its marketing budget by 10 per cent to ensure sales targets are met. Total sales are set to reach Bt150 billion this year.
       "During these tougher economic times, the company has had to increase its marketing budget to focus on brand-building. If we don't, our competitors will boost their market shares," Suphat said.
       As part of the marketing plan, the company is expanding its CP Fresh Mart shops network. The company manages about 500 shops nationwide and plans to add 100 to 120 outlets next year. It aims to have 700 shops by 2011.
       Due to the economic slowdown, CPF missed its first-half sales projection. However, it is hoped that the expected economic recovery will boost sales volume by 10 per cent and sales value by 8 to 10 per cent by the end of this year.
       Suphat said CPF has had to reduce the retail price of CP brand products in the domestic market by 5 to 10 per cent due to fierce competition.