More than marketers

Business News - Monday December 17, 2007

Bangkok Post

More than marketers

PPP strategists say track record of its predecessor speaks volumes about the party's workable vision for development

CHIRATAS NIVATPUMIN

Mingkwan Sangsuwan pulls back in mock horror. ''Don't call me a public relations man. And I'm not a marketing man. I'm a strategy man,'' he says with a grin.

The former boss of the listed broadcaster MCOT Plc is now overseeing economic strategy for the People Power Party (PPP), the party formed from the disbanded Thai Rak Thai juggernaut.

It should come as little surprise that PPP's policies closely mirror those of TRT, under the belief that there is little need to diverge from the winning formula that delivered two landslide victories to Thaksin Shinawatra.

PPP's campaign fliers proudly highlight TRT policies such as the One Tambon, One Product programme, the 30-baht universal health care scheme and the village investment fund initiative.

''Everyone is a populist now. What is it that differentiates one policy from another?'' Mr Mingkwan asked rhetorically. ''In our first year in office, we will boost national income, cut national expenditures and give new opportunities to the people.''

What critics deride as populist is simply a different method of distributing public funds, he maintains.

''The government receives tax revenues, which are used for financing public services. That's normal policy. But fiscal programmes go through multiple layers of bureaucracy, resulting in inefficiency and loss. All we did was go right for the people.''

He sees a vote for PPP as a vote for experience, past successes and a strategic platform.

''We will continue with our original policies, and add a new, special formula. We will boost revenues to finance our new spending programmes,'' Mr Mingkwan said. ''Thailand's economic advantages are considerable. We are in a prime geographic location, have sizeable natural resources and market. We just lack good management.''

Modern marketing strategies are needed for development, he says.

''What is our positioning? What image do we want for the country? If you have a good product, then you must have good communications. If we aspire to be an aviation hub, then we need to focus on Suvarnabhumi.

''But the quality needs to be there. I don't agree with going forward with PR if you don't have a successful product.''

Mr Mingkwan said Thailand needed to identify the areas offering the greatest potential for growth.

''Tourism generates 350 billion baht per year, with the returns available relatively quickly. In manufacturing, you can invest massively in a new factory and you won't see the returns for five years,'' he said.

''Thailand already boasts first-class medical facilities. We want to make the country a medical hub for the region, with world-leading drug manufacturing and research facilities.''

Thai fruit offered huge potential for growth with the right marketing, logistics and support, he said.

Basic business strategy is needed to consider the issues of knowledge, capital, opportunity and sustainability. Of all the parties, PPP perhaps offers the most holistic, integrated vision for national development, say party spokespersons.

''Where will our revenues come from?'' says Mr Mingkwan. ''How can we take advantage of what we have? Look at our crocodile farms. We use them now to show tourists a picture of a man with his head in a crocodile's mouth. But Ferragamo sells crocodile leather shoes for thousands of dollars. That's what is meant when you talk about value creation.

''Economic development depends on having a comprehensive national strategy,'' he says. ''It's not just one idea, and you can't change everything overnight.''

Boosting revenues, however, represents just one side of the national balance sheet. PPP also wants to reduce national and household expenses on energy, transport and other sectors through an aggressive expansion of alternative energy development and mass transit infrastructure investments.

''We can't control the price of crude oil,'' he says. ''But we can develop replacements and substitutes. E10 gasohol saves 10% now. It's just a first step. We need to move to E20 and look at our other options. Thailand doesn't have oil, but we do have gas.''

Mr Mingkwan offered a management insight learned from his long years at Toyota Motor: ''Implementation leads to evaluation and further change. It's the kaizen principle. You need continuous improvement.''