Dairy Queen Thailand thrives without full digital transformation

Brand’s unique approach to consumer engagement leads to unprecedented 20% sales growth in 2023.

IN an age dominated by e-commerce, Dairy Queen Thailand has defied the odds, thriving without a fully developed digital transformation strategy.

To compensate for a laid back online presence, the brand counted on comprehensive market research and consumer data to fuel its growth. It focused on core its competencies in crafting innovative products that resonated deeply with customers.

All this was put on display at the recent Retail Asia Forum in Bangkok when Tanakritt Kittipanachol, general manager of Dairy Queen Thailand, shared how they mustered a remarkable 20% sales growth in 2023.

Commitment to consumers

Kittipanachol said that Dairy Queen’s success can be attributed to its unwavering commitment to understanding consumer preferences and crafting innovative products tailored to their needs.

With over 500 stores across 76 provinces, Dairy Queen Thailand faced the challenge of sustaining growth in the absence of a comprehensive digital transformation seen in larger retailers.

The company’s groundbreaking feat in sales in 2023 was its highest ever, reflecting its effective use of data from various channels to innovate on brand offerings.

Data-driven insights

How did they do it? Kittipanachol explained they went back to basics and used data from platforms such as Facebook, Instagram, TikTok, and their own sales systems to understand what customers wanted.

“Come back to basics of concept crafting with in-depth interviews,” he said. “We have to gather all that information from the various channels that we have, trying to see the insights that we can get, and come up with an idea of what consumers really want.”

Through extensive market research and analysis of consumer data from various channels including social media platforms, Dairy Queen Thailand identified nostalgia as a key trend driving consumer behaviour.

“After all the market research, all the trend studies that we did, all the consumer data that we've been collecting, we finally came upon a few concepts that we believed consumers relate to,” said the general manager.

Collaborative strategies

Kittipanachol also said the company’s innovative process involved collaboration across various departments, including marketing, research, and product development.

Kittipanachol added the company was able to create products that captivate consumers and drive sales by harnessing the collective expertise of its teams.

Rigorous testing and validation processes ensured that Dairy Queen Thailand's new products met the highest standards of quality and appeal.

Moreover, through concept evaluation and sensory testing, the company attracted consumer interest and fine-tuned its offerings to perfection.

Kittipanachol said the launch of Dairy Queen Thailand’s latest product, Cha-Taing, surpassed all expectations, selling out within just 20 days of its release.

“This was one of the key successes that we had from using key insights from the various data that we could collect, use it, and then actually roll it out as a product into the system,” he said.

“So that, in a nutshell, was the success of Dairy Queen as an example of how in the midst of this digital transformation where we don't have an e-commerce platform yet, we're able to use the information that we have,” Kittipanachol concluded.