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1. PROBLEM/KEY ISSUE
_How can Boon Rawd Brewery maintain its competitiveness in Thailand's alcoholic beverages market as the legal enforcement of total ban regulations on alcoholic drink advertisements become effective?_
PORTER'S FIVE FORCES ANALYSIS OF BEER INDUSTRY IN THAILAND (AS CONSOLIDATED INDUSTRY)
THREAT OF NEW ENTRANTS - LOW
Entry barriers (i.e. huge capital investments in breweries) are high resulting in low threat of new entrants.
THREAT OF SUBSTITUTE PRODUCTS - HIGH
Other types of alcoholic beverages such as wine, spirit and liquor represent the substitutes of beer, though not perfectly substitutable.
THREAT OF BUYERS' GROWING BARGAINING POWER - LOW
Wholesalers and agents are considered as buyers for Boon Rawd Brewery in which they have to follow the predetermined prices.
THREAT OF SUPPLIERS' GROWING BARGAINING POWER - LOW
Suppliers who mainly provide key ingredients for beer (i.e. hops and bottles) tend to be not powerful since they are neither concentrated nor organized and the costs of switching suppliers are not high.
THREAT OF INTENSE SEGMENT RIVALRY - HIGH
Beer market in Thailand contains some strong and aggressive incumbents such as Boon Rawd Brewery, Thai Beverage and Thai Asia Pacific Brewery.
BOON RAWD BREWERY CO., LTD. TOWS MATRIX
In-depth beer industry experience and insight
Well-managed and established distribution channels
Top quality ingredients used to produce Singha beer
Brand image strength associated with "International Thai" identity
High production costs of Singha beer
Singha beer is priced higher than economy beers
Taxation according to alcohol degree
Light beer trend
Offer premium beer (i.e. Kloster) to capture premium segment (S1, S2, O1)
Foreign markets expansion (S1, S3, S4, O2)
Develop light beer (i.e. Singha Light) and price lower than Singha (W2, O1, O3)
Total ban regulations on alcoholic drink advertisements
Adverse economic recession
Importation of foreign beers due to FTA agreements
Full-line forcing strategy adopted by Thai Beverage
Utilize color and symbolic forms which are associated with Singha's brand identity to do IMC (S4, T1)
Price war (S1, S2, T1, T2, T3, T4)
Develop fighting brand (i.e. Leo) to compete with economy beers (W1, W2, T4)
BRAND IDENTITY AND POSITIONING FOR THAILAND'S BEER INDUSTRY�
The above figure shows the positions of these "virtual images" on the perceptual map. Note how Heineken and Kloster represent well the Master European Brewer "space", while Carlsberg appears slightly off-center in the Cosmopolitan World Traveler space. Singha appears on the edge of the International Thai space while Leo represents the Heritage Thai dimension. Chang does not seem to be able to be explained by any of the images. As a low-priced brand and the cheapest on the market, sold in bulk with a whisky product via a predominantly rural market, Chang seemed to compete mainly on price. As several focus group participants mentioned: "You drink Chang to get drunk!" The Modern Thai space does not appear to be served by any product.
In addition, the brands towards the top of the Established-Contemporary dimension had a more modern, new, up-to-date, fresh, and present or future image, as compared to the brands at the bottom, which were perceived as traditional, established, and consumed by older and more conservative people. However, the brands towards the left of the Head/Heart dimension were perceived as more logical, and serious, while those towards the right were perceived as appealing more to the heart.
2. ALTERNATIVE ACTIONS
Utilize color and symbolic forms which are associated with Singha's brand identity to do IMC
Foreign market expansion
Compete on price (Price war)
3. EVALUATION OF ALTERNATIVES
Utilize color and symbolic forms...
References: BrandAge Megazine. (Yr. 7, vol. 9). _Tipping Point Global Brand._ Retrieved April 17, 2007, from http://www.brandage.com/issue/cs_detail.asp?id=1911
BRANDAGE MEGAZINE. (YR. 7, VOL. 12). BEER WAR 2007 SYMBOLIC WAR. RETRIEVED APRIL 17, 2007, FROM HTTP://WWW.BRANDAGE.COM/ISSUE/CS_DETAIL.ASP?ID=1991
MANAGER MEDIA GROUP PUBLIC COMPANY. (2003, SEPTEMBER 2). RETRIEVED APRIL 17, 2007, FROM HTTP://WWW.GOTOMANAGER.COM/NEWS/DETAILS.ASPX?ID=7746
MANAGER MEDIA GROUP PUBLIC COMPANY. (2007, JANUARY). RETRIEVED APRIL 17, 2007, FROM HTTP://WWW.GOTOMANAGER.COM/NEWS/DETAILS.ASPX?ID=55510
Orient Pacific Century Market Research. _BOON RAWD BREWERY: Researching beer brand image and strategy options._ Retrieved April 17, 2007, from http://www.brandingasia.com/cases/case5.htm
� Orient Pacific Century Market Research. BOON RAWD BREWERY: Researching beer brand image and strategy options. Retrieved April 17, 2007, from http://www.brandingasia.com/cases/case5.htm
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