“ Create and expand collaboration with all parties to create value to the society as a whole.”
Moving into “Boundaryless Era”, in the next 5 years CPRAM will continue the determination to create products and services with high quality and standard with the maximum value creation to the consumers. This includes the sourcing of quality raw material, implementation of modern technology and machinery and continuous research & development. The company emphasizes on conducting business according to international standard systems and drives the business with innovation followed by value creation to the organization’s strategic partners by supply chain management from upstream to downstream involving purchasing process, raw materials input into production process until continuous and most efficient delivery to customers.
“The concept of “Nice & Smart” is to elevate the goodness together with smartness.”From the aspiration to provide the quality foods that are not only delicious but also deliver with safety and nutritional benefits. CPRAM is dedicated to create products and services according to the standard by creating the highest value to consumers
The company continues to select quality ingredients in combination with modern technology and machinery, never stops the research and development and gives emphasis to the operation according to international standard driven with innovation. CPRAM further creates value to business alliance by developing the supply chain management starting from the purchasing process into production process until the products are delivered to customer with consistency and with the highest efficiency.
From the aspiration to provide the quality foods that are not only delicious but also deliver with safety and nutritional benefits. CPRAM is dedicated to create products and services according to the standard by creating the highest value to consumers. The company continues to select quality ingredients in combination with modern technology and machinery, never stops the research and development and gives emphasis to the operation according to international standard driven with innovation. CPRAM further creates value to business alliance by developing the supply chain management starting from the purchasing process into production process until the products are delivered to customer with consistency and with the highest efficiency.
In the next 5 years, CPRAM has set higher standard of running business to spread values for stakeholders in a wider range. This leads to the concept of “Nice & Smart” (Goodness together with smartness) which is to elevate the goodness and skill of organization to another level.
“Sustainable organization is the organization that creates value to the stakeholders whether directly or indirectly consistently. The organization has to be committed to development and creating innovation continuously and sustainably. For the function of innovative organization in this Nice & Smart Era, CPRAM will develop and promote every party involved both employee in the organization and business alliance in the supply chain. CPRAM is determined to continue the development of food safety to the society and country to reach the long term goal of food security and sustainability to create quality of living for consumers forever
Mr. Wisade Wisidwinyoo, CPRAM’s managing director has explained about the concept, in term of “Nice” CPRAM will continue to create value for society beyond promoting the knowledge of food safety, nutrition, pleasure in consumption, moral, ethics, education, human resource development, substantial environment and community preservation. CPRAM also considers providing the values based on social responsibility both inside and outside the organization throughout the supply chain continuously and sustainably.
“For an example within CPRAM organization at head office (Lat Lum Keaw), CPRAM carries out “CPRAM Zero Water Discharge” to find a solution to recycle used water from factory production process and perfectly recycles all 100% of water to use as raw water for producing water to use inside the factory or use in cooling system in cooling tower. This project helps CPRAM to develop higher technology to improve water quality and also create consciousness in water conservation, creating good attitude within the community and least disturb the environment. Lastly to coexist in balance between company, community, society and environment, CPRAM Chonburi factory is also certified in industrial ecological system to portray that the factory is committed to operate the business which is friendly to the environment for sustainable development, improving production process and environmental management according to the corporate social responsibility.”
Mr. Wisade also placed a significant emphasis in the supply chain management because this includes cooperation from the upstream consisting of raw material suppliers to downstream consumers who want food safety and want CPRAM to create a lively world. Today these factors are essential to promote sustainable business. If all parties do not cooperate within the supply chain, the result would not be sustainable. The supply chain management within food industry is critical for sustainable food security as the supply chain consists of many Small- Medium Enterprises (SME) and large enterprises from upstream to downstream. The development and implementation of modern technology appropriately can create confidence with the partners in each supply chain in term of consistent delivery and quality that can be traced back throughout the supply chain. When food security occurs, to operate sustainably at the same time the company also needs to create the value for society and environment. Therefore, in the Nice & Smart Era CPRAM is not only going to elevate the goodness and smartness of the organization but the result has to be expanded to CPRAM’s business partners throughout the supply chain.
The simple example Is Stir-Fried chicken with basil leaves and rice. In order to get quality basil leaves without any contaminants, CPRAM has prepared learning and working for sustainable agriculture project called “Partner Farmers” by applying organization’s ability to promote and develop the society. CPRAM’s position as a food manufacturer and distributor to customers and consumers understand that the main raw material is agricultural produce. Therefore, CPRAM must help the farmers to grow together sustainably. The problems that most farmers face are marketing, investment and knowledge. For instance of marketing, CPRAM has provided suggestion for suitable vegetables required from the market, in this case wild basil leaves that are more fragrant than other types of basil leaves are recommended.
In term of investment and occupation within the community, the company helps the farmers to sell at reasonable prices and have liquidity and support any beneficial projects for farmers. In regards to the academic aspect, CPRAM has set up the agricultural knowledge center to share the information for farmers. CPRAM’s farm is opened for farmers to study the model according to Good Agricultural Practices (GAP) which encourages the farmer to have a career, revenue and supporting market while the consumers can receive quality food that are safe without any worry.
Another example that reflects the operation in consideration of corporate social responsibility that answers to the path to sustainability is the “Crab Fried Rice” menu. This product is one of the best-selling items in 7-Eleven stores causing the lack of supply of crab meat to meet the demand and possibility of raw material shortage. CPRAM notices the opportunity to promote preservation of Blue Swimming Crabs by not capturing the crab during spawning season and released more blue swimming crab breeder with eggs outside the shell into natural water resource to increase the population of blue swimming crab so that the community can continue sustainable fishery.
In term of “smart”, CPRAM focuses in driving the organization with innovation more intensely by developing own technology and innovation in every aspect toward Industrial 4.0 policy for examples of Biotechnology, Robotic and Automation, E-commerce, Digital Technology together with IoT (Internet of Things), Cloud Computing, Big Data and Data Analytics in order to move the business toward growth and sustainability and impel Thailand to become the center of food innovation in Asian region.
“In the past 30 years, CPRAM has collected knowledge about food until period 6 Innovation Convergence period. CPRAM has developed CPRAM Management System (CPRAM-MS) by implementing 3 modern management systems involving Total Quality Management (TQM), Total Productive Maintenance (TPM) and Lean System. When CPRAM develops the smart in the Nice & Smart Era, CPRAM will use the smart to create value by passing on the concepts and ideas to the related parties whether direct or indirect in the whole supply chain to elevate Thai industry’s standard in moving forward.
CPRAM’s management believes that human and organization share similarity. Each person was born with different foundation such as birth, education, experience or opportunity. Anyone with good background can create great value to the society. Similarly to organization with good foundation, well equipped with human resource, technology and other abilities should also deliver great value to society as well.
“His Majesty King Bhumibol Adulyadej has always been a great role model for Thai population in everything. His Majesty was born to be a great king and at the same time he was working for the country and Thai people without being tiresome only for the benefits of Thailand. This is one clear example that we can learn and follow in His footsteps that we should always be ready to create value to the public.”
Mr. Wisade was also giving end note for the new challenge that will occur in the Nice & Smart Era is the implementation of biotechnology to develop food innovation for specific group to answer for the different nutritional requirement.
“Next step of CPRAM will lead into production of food specific for each group of consumers called “Functional Food” because not everyone will have the same nutritional requirement. We should study and develop to have food for children, working adults and elderly consumers to understand what kind of nutrition or energy are required for each group. In addition, we should also study the requirement for diabetic patient, hypertension patient and so on. This is what CPRAM plans to do in this period while still sharing the benefits within the supply chain from upstream to downstream. By together developing, every party gains benefits and become a part to elevate Thai industry to be accepted at international levels.
In addition, Ms. Rumpaiparn Porntrisat, Senior Vice President of CPRAM Co., Ltd. has shared her perspective in stepping into Nice & Smart Era that “Nice & Smart Era is the period that focuses on creating good and smart team. CPRAM emphasizes the importance in developing new leader in the organization who can lead the in the next 30 years by underline stronger idea of morals and consciousness that sustainable organization have to be good organization that create benefits to the overall society. At the same time, we also need to have wisdom and be smart. Today, the company cannot be smart alone but also has to involve business alliances throughout the supply chain to create benefit and sustainability. Therefore, if ‘Nice’ & ‘Smart’ are combined together, it describes how each individual can work base on the morals of good people and wisdom from smart people starting from personal level, organization level, business alliance within the supply chain up until social level.
In regards to operation plan, the target in the next period will be the period which CPRAM’s bakery will not only be “snacks” but will be “breakfast” which is the most important meal for everyone.
“From innovation convergence era where the production had become automatic, the next era CPPRAM will increase value for bakery product by elevating into breakfast meal for Thai consumers that are delicious at affordable prices while maintaining the bakery’s charm which can still be consumed as convenient dessert.
The next era CPRAM will develop the product using important technology which is temperature control in the production process and storage. In the past, CPRAM only had room temperature bakery products, moving forward CPRAM will proceed with chilled bakery and frozen bakery to respond to variety of consuming occasion. The products can be kept in ambient temperature, chilled and frozen. In order to continue, CPRAM has to rely on alliances such as raw material suppliers, Machinery Companies both in Thailand and outside Thailand. I believe that this will create product innovation and efficient production management.
From all of the above, moving forward into “Nice & Smart” era will strengthen CPRAM food business and grow together with all stakeholders to respond to consumers’ satisfaction. The emphasis as leading brand image for ready to eat food and bakery businesses will move CPRAM toward sustainable organization in the good intelligence period. Mr. Charoen Keawsooksai, CPRAM Co., Ltd.’ Senior Vice President has revealed the vision for future.“For era 7, human resource plays a significant role so CPRAM is focusing on human resource development as well as training in new technology especially in automation, robot and E-commerce including food research and development as well as processes such as functional food research and development for each target consumers. Moreover, CPRAM will develop the machine and technology together with our partnering manufacturers.
The upcoming era will be the era of sustainability focusing on the production process to save energy and is environmental friendly. In the past, CPRAM has adjusted the production process management to minimize the carbon dioxide released into the earth’s atmosphere. The result is for an example of the jumbo pork steamed bun having certified carbon footprint labeling which is the first product in steamed bun category to be certified. CPRAM is also working on water footprint for sustainable water management. At the same time, CPRAM is also setting up regional factories to reduce transportation distance which are now on process and will be finished in the near future. Moreover, the company is trying to use local ingredients by bringing all related parties to share the knowledge. The process has already begun but CPRAM will place more emphasis in this era.”
Furthermore, the consumers will be seeing the new sales channel and service in the form of Vending Machine and Food Van on the go to sell variety of food products to respond to the changing needs of consumers that look for more convenience. In addition, CPRAM also has catering business under “CPRAM Catering” brand and food sold in E-commerce channel. For export market, CPRAM will expand the sales channel in more regions such as Europe and North America.
The challenge in the next period is the new product management which CPRAM has been doing continuously but will be doing more intensely since the products in this upcoming period will have shorter selling time. The management has to be done professionally in both production and delivery in order to consumers to receive freshest products leading to Thai society’s food security.
“Innovation played a significant role by building a strong and sustainable organization. Not only innovation could elevate the competitiveness within the market, it could also respond to present day consumers’ need that required more than just delicious food products.”
In 2013, C.P. Retailing and Marketing Co., Ltd had changed the organization name to CPRAM Co., Ltd. Under innovative culture that had molded the organization for over 10 years, CPRAM became more prepared in fully creating innovation in many aspects. Innovation played a significant role by building a strong and sustainable organization. Not only innovation could elevate the competitiveness within the market, it could also respond to present day consumers’ need that requires more than just delicious food products.
In 2013, C.P. Retailing and Marketing Co., Ltd had changed the organization name to CPRAM Co., Ltd. Under innovative culture that had molded the organization for over 10 years, CPRAM became more prepared in fully creating innovation in many aspects. Innovation played a significant role by building a strong and sustainable organization. Not only innovation could elevate the competitiveness within the market, it could also respond to present day consumers’ need that requires more than just delicious food products.
One tangible example of the success in this era was the establishment of CPRAM Innovation Center and Chonburi factory which was recognized to be the first private food innovation center in Thailand. CPRAM Innovation Center was the place that created innovator, a source of information and sharing knowledge to society. The innovation that CPRAM had created was presented in the form of exhibition and live models that could be touched.
CPRAM further cooperated with other international organization to develop technology and innovation for Robot and Automation that responded to the CPRAM development into Industry 4.0 in every aspect.
To drive sustainable business growth, the highlight of this center was within new Chonburi factory that was located in the same area. The factory had fully automatic production line which was specifically designed and was the most high technology in Thailand.
For examples of automatic steamed bun production line and ready to eat meal production line in Chonburi factory still used almost all energy saving equipment. The office was also designed to have colorful atmosphere called Smart Office for any employee to work anywhere in the office in order to increase the imagination. The company also arranged encouraging activities for employees to present their work idea. The factory itself has a visitor corridor separately inside the building for different group of employee and visitors to avoid disturbance while working. Overall image of CPRAM Innovation Center and Chonburi factory were designed to be clean and modern like university or research institute which were different from typical factory.
In this period, CPRAM was able to accomplish the set goal by utilizing the supply chain from upstream including raw materials suppliers, production process, storage and distribution to downstream until end consumers in order to receive good quality and consistent supply which provided the greatest benefits in running business for every stakeholder.
The result of commitment had given CPRAM many awards within this era in both national level or international level award for examples of Thailand Kaizen Award, TPM Excellence Award, Industry Excellence Award,KANO Quality Award, Best Company of ASEAN Award and CPRAM was the only Thai food manufacturing company that received Deming Prize from Japan.
Moreover, C.P. Food Lab which was the research and development company was established to provide food analysis service in the Food Inno-polis in Innovation Center 2 (INC2) at Thai Science Park, Pathumthani. Previously the facility was the first CPRAM research and development center that brought the problems and challenges from CPRAM and worked on basic and applied research which would then be passed on to New Product Development (NPD) team. Currently C.P. Food Lab is the center of knowledge in research and development as well as the center for providing testing service to certify the research and development in Charoen Pokphand Group and any other companies within and outside the country.
“In order to build a strong foundation for sustainable growth, C.P. Retailing and Marketing had invested in establishment of branch factories and human resource development”
In the following period, C.P. Retailing and Marketing still continued to grow and in order to build a strong foundation for further growth, the company had planned an investment to expand production bases for 2 main purposes which were to invest and build 8 new factories according to target in order to reach more consumers as well as deliver food to 7-Eleven within 4 hours which would help the consumers to receive the fresh products, reducing global warming and created self-reliance economy within the local community.
In the following period, C.P. Retailing and Marketing still continued to grow and in order to build a strong foundation for further growth, the company had planned an investment to expand production bases for 2 main purposes which were to invest and build 8 new factories according to target in order to reach more consumers as well as deliver food to 7-Eleven within 4 hours which would help the consumers to receive the fresh products, reducing global warming and created self-reliance economy within the local community.
Nevertheless, there were many important crises both in local and international market that caused C.P. Retailing and Marketing to face with circumstances which affected the company performance. For instance of Sub-prime crisis in the USA that affect global economy, European economy crisis and Natural Disaster in Japan all affected the sales of export value from C.P. Retailing and Marketing to overseas.
Looking back in domestic situation, there were political conflict and huge floods that caused C.P. Retailing and Marketing to delay the factory branch opening. From the first plan of opening 8 factories, the actual plan was carried out to open 1 factory and expand current 3 factories only.
In crisis there was opportunity, although the new factory opening plan had to be stopped, C.P. Retailing and Marketing did not stop In order to build a strong foundation for sustainable growth, C.P. Retailing and Marketing had invested in establishment of branch factories and human resource development to increase the work efficiency by implementation of Lean Process production and Total Productive Maintenance (TPM) to reduce expenses, increase the efficiency and respond to consumers’ satisfaction. Later on, the export market had expanded rapidly which increased the company’s revenue above expectation. While the domestic market slowed down for a short period during the flood and increased steadily after consumers became aware of the nutritious benefit of ready to eat food during crisis period.
Moreover, C.P. Retailing and Marketing also focused investment in human resource development which considered being the valuable resource for the organization to support the sustainable growth of the company. In this era, C.P. Retailing and Marketing encountered many changes especially after receiving Thailand Quality Class (TQC) award in 2005 which was the main turning point to notice the opportunity to adjust the organization particularly in creating leadership. In this 5 year era, C.P. Retailing and Marketing was continuously building leadership development program and focused in providing the atmosphere to create innovation within the organization. The company had promotion and supporting projects focusing in innovation for examples of Ant/Bee Mission Conference, Innovation Conferences 2 times per year for ready to eat food business, CPRAM Award and Product Award for bakery business.
Besides creating leadership within the organization, C.P. Retailing and Marketing also prioritized in developing human resource to become an innovator which Mr. Wisade Wisidwinyoo explained further in this point.
“This emphasis was important so C.P. Retailing and Marketing opened up for every employee to create innovation. The innovation did not have to be only new products to sell to customers but also innovation within the organization to improve the production process. I did not want to block any idea and wanted to encourage every employee to think of how to add value and this would bring our organization towards better ideas.”
C.P. Retailing and Marketing received the 1st runner up for innovation food design from National Innovation Agency (NIA) for “Sticky Rice Burger” products that derived from invention of teamwork in the organization and achieved 5 out of 10 outstanding awards from total of 500 projects in Charoen Pokphand Group.
C.P. Retailing and Marketing entered into the final round and received Chairman Award from Mr. Dhanin Chearavanont in CP Innovation Exposition in 2011 and 2016 which proved C.P. Retailing and Marketing to be the organization of innovation and built a foundation for the new era.
One of the main importance in this period was to modify the brand image and updated the logo to be more globalize with the concept of “moving forward with continuous development” under “CPRAM” brand.
“This era for C.P. Retailing and Marketing was considered to be the revolution period for IT system and implemented TQA framework to lead the organization towards excellence.”
C.P. Retailing and Marketing had emphasized the overall development not only in production technology, research and development and factory management but including communication and quality operation management. This era for C.P. Retailing and Marketing was considered to be the revolution period for IT system within the organization to achieve the target of aiming toward excellence.
C.P. Retailing and Marketing had emphasized the overall development not only in production technology, research and development and factory management but including communication and quality operation management. This era for C.P. Retailing and Marketing was considered to be the revolution period for IT system within the organization to achieve the target of aiming toward excellence.
In the past, C.P. Retailing and Marketing’s IT system was dispersed but only came together in this era under the system called Enterprise Resource Planning (ERP) which was the international management standard using SAP program. With stronger integration and real time management as well as Total Quality Management (TQM) and Thailand Quality Award (TQA), C.P. Retailing and Marketing had received Total Quality Control (TQC) Award in 2005.
In 2004, C.P. Retailing and Marketing increased the registered capital to 350 million Baht and opened the bakery factory in Chiang Mai Province branch as well as developing “Bakerland” brand as exclusive brand in 7-Eleven in order to elevate 7-Eleven from convenience store into food store. In regard to ready to eat food business, the factory was expanded to Lat Lum Keaw District, Pathumthani Province which increased the market share of C.P. Retailing and Marketing. In addition, the company also developed the innovation products in Japanese style rice ball category under “O! Arochan” brand.
Next in 2006, the company had increased the registered capital to be 600 million Baht. In 2007, C.P. Retailing and Marketing had expanded the bakery factory in Lat Krabang Industrial Estate while the ready to eat food factory had started to produce and distribute chilled ready to eat food for general convenience store and other catering.
“C.P. Retailer and Marketing never stopped to work on product research and development and always focused in performing according to international standard system”
After the development era , C.P. Retailing and Marketing had developed and strengthened accordingly by continue the product research and development as well as placing emphasis on performance according to international standard system whether Quality Standard Management ISO 9001:2000, Hazard Analysis Critical Control Points (HACCP), Environmental Standard Management ISO 14001, Health and Safety Management system TIS 18001 and Total Quality Management (TQM).
After the development era , C.P. Retailing and Marketing had developed and strengthened accordingly by continue the product research and development as well as placing emphasis on performance according to international standard system whether Quality Standard Management ISO 9001:2000, Hazard Analysis Critical Control Points (HACCP), Environmental Standard Management ISO 14001, Health and Safety Management system TIS 18001 and Total Quality Management (TQM).
All of the above standards assisted C.P. Retailing and Marketing’s progress and efficient growth. In this era, C.P. Retailing and Marketing had implemented international standard and applied the same method throughout the organization. Although the bakery business is not producing for export but was also required to execute all international standard system to improve the product quality and efficiency as well.
In 1999, C.P. Retailing and Marketing had increased the registered capital to 170 million Baht and moved the bakery factory from Meenburi to Lat Krabang Industrial Estate as well as opened another 2 factory branches in Had Yai District and Khon Khean Province. Later in year 2000, the frozen ready to eat food factory was also moved to Lat Lum Keaw District in Pathumthani Province.
“This era involved the modern technology and machinery into the business to increase the product efficiency. The steamed buns that were once made by hand were changed to be produced by machine where the products were formed and released onto the paper ready for steaming right away.”
It would not be an overstatement to say that C.P. Retailing and Marketing started from zero since at that time there was no factory that produced ready to eat food like this before.
In the beginning, Charoen Pokphand Group would produce only mass processed foods such as fried chicken or sausages only. When the business model had changed, the company had to learn and started from scratch. Before 1992, all steamed bun were all handmade, staffs were standing in line in a small production room. Even though the machinery was quite modern but it could also be called basic standard kitchen equipment.
From the first 5 years of trial and error, C.P. Retailing and Marketing started to expand from small kitchen into bigger production line considered to be medium industry. Based on the concept that the food production had to be based on quality, safety, cleanliness, nutritional value and delicious, these 5 years after establishment period was the development period of C.P. Retailing and Marketing since modern technology and equipment were implemented in order to improve the production efficiency.
For instance of the steamed buns that were handmade were later changed to be formed by Japanese machinery where the products were formed and released onto paper ready to be steamed right away.
With expertise in food production and emphasis on product development based on the consumers’ need, C.P. Retailing and Marketing had launched many products to respond to variety of consumers’ need.
The progress in this period after siu mai and steamed bun involved many hamburger patties such as pork, shrimp, chicken and seafood for distributed in 7-Eleven. After that another products were created which was ready meal box to respond to customers who want to purchase food but did not want to consume right away.
For bakery business, since there was need for homemade products that can be sold on daily basis without keeping stock which responded to modern trade retailers nationwide, it was not possible to produce from center in Bangkok and distribute throughout the country. In 1996, the company had opened its first branch at Phitsanulok province to support the growth of 7-Eleven and other modern trade retailers in the Northern part of Thailand.
Although, C.P. Retailing and Marketing focused in production for distribution to 7-Eleven without consideration about the exporting the products overseas, after 1997 economy crisis Thai foods became cheaper which captivated the interest from customer abroad. During that time, the customers in Europe had contacted to buy the products from C.P. Retailing and Marketing because of interest in buying siu mai and steamed bun in the clean and attractive packaging. In addition, the company also had team for product development that can adjust the flavor profile according to European consumers.
During the time of the economic crisis, domestic consumers also wanted to buy products that were low priced and easy to find. Therefore, the company had launcned “Le Pan” brand to support the expanding market at competitive prices as well as “Miss Mary” to support the super stores market with the main focus in seasonal products such as pound cake and cookies.
Moreover in 1996, C.P. Retailing and Marketing had increased the registered capital from 20 million Baht to 40 million Baht.
When Charoen Phokphand Group joined modern trade retailer and food service business in domestic market such as Makro, 7-Eleven, Sunny Supermarket and Chester Foods, the company has established food production unit to support many relating businesses. This was how C.P. Retailing and Marketing Co., Ltd. was established to support the retailer business expansion in Thailand in which frozen ready to eat food business was set up on 12th December 1988 and bakery business set up on 1st April 1989 at Meenburi District, Bangkok. Besides production of breads, cakes, cookies for deliver to retailer and food services business within Charoen Pokphand Group, the company also opened bakery shop called “Bakerich” on Silom Road opposite C.P. Tower and in Sunny Supermarket on Srinakarin Road branch as well.
In the beginning, C.P. Retailing and Marketing Co., Ltd. started off with frozen processed vegetables and fruits for export by cutting the fruits, packed and froze in clean and attractive packaging that consumers could eat immediately.
Due to wide vision and experienced human resource within Charoen Pokphand Group together with the knowledge of external experts, C.P. Retailing and Marketing started to expand. On the day at 7-Eleven was set up, C.P. Retailing and Marketing was also established together with freshly baked bakery products which were suitable for launch in convenience stores which responded well with customers that want ready to eat food that are filling without the need to cook or reheat.
In this era, C.P. Retailing and Marketing Co., Ltd. had separated the products into two main categories which were the frozen fruits group and freshly baked bakery products that could be consumed immediately. Later on, the company found out that the frozen fruits business might not be suitable since the consumers had more options to eat fresh fruits so the company had developed new products which were the starting of siu mai and frozen steamed buns.
When 7-Eleven had opened about 10 branches, C.P. Retailing and Marketing started to sell siu mai and steamed buns. The beginning of this idea happened when 7-Eleven marketing and product management team visited Taiwan for business trip then the company had an idea to start producing these products. Siumai and steamed buns were the first products that C.P. Retailing and Marketing had developed together with 7-Eleven with the concept that the products must suitable for Thai people’ lifestyle since it was easy to eat. After finished freezing process, the products are distributed into 7-Eleven branches, the stores will thaw the products and arrange for display in hot steamer which was the starting of classic sentence when the customer enter into 7-Eleven that “Would you like additional siu mai or steamed buns?”
Regarding the bakery products, at first the products that were produced to deliver to 7-Eleven beginning from the 1st store was homemade bakery style which was similar to premium bakery store but were packed and sell through modern trade retailer. The products had about 3-4 days shelf life. C.P. Retailing and Marketing was considered to be the leader for this type of business because at that time most of the bakery products were mass product from factory while homemade products would only be sold in the stores with service staffs.
Even though in the beginning, C.P. Retailing and Marketing had a strong sales channel but the company was losing money because the factory was well set up with modern equipment, using quality ingredients which resulted in high expenses and cost of good. Other than this, the factory was hiring skilled staffs in order to produce appealing products rather than using machine and the modern trade retailers were still limited in number. C.P. Retailing and Marketing management had to work very hard to focus the main business in production and distribution of ready to eat food business. At the time, the company also closed down Bakerich store on Silom Road due to high rental cost.
