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A Study of the Beer Market Leader, Challengers and Niche Strategies

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Successful companies study their competitors as closely as they do their customers. Analyzing and evaluating competition helps management decide where to compete and how to position against the competition in each market margin. The changing patterns of global competition require continuous analysis of competing forces. Business and marketing strategies need to take advantage of opportunities and to avoid threats. Market leaders and competitors cannot fulfill their executive role unless customer needs and desires are understood and satisfied.
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World Academy of Science, Engineering and Technology 43 2008
A Study of the Beer Market Leader,
Challengers and Niche Strategies
Sinee Sankrusme
market is to be a leader in a smaller market, or niche. Smaller
AbstractSuccessful companies study their competitors as
firms normally avoid competing with larger firms by targeting
closely as they do their customers. Analyzing and evaluating
small markets of little or no interest to the larger firms.
competition helps management decide where to compete and how to
“Market leaders, challengers and niche strategies” of the
position against the competition in each market margin. The
beer industry in Thailand has been an interesting study.
changing patterns of global competition require continuous analysis
Businessmen and business universities both in Thailand and
of competing forces. Business and marketing strategies need to take
advantage of opportunities and to avoid threats. Market leaders and
abroad will be interested in such a study as many of the
competitors cannot fulfill their executive role unless customer needs
principles could be successfully applied to other industries.
and desires are understood and satisfied.
II. PURPOSE OF THE STUDY
KeywordsBeer, Market Leader, Challenger, Niche.
The purpose of this study is to analyze the market leader,
challengers, and niches strategies of breweries in Thailand.
I. INTRODUCTION
N 1991, as beer consumption was rising, a policy by the
III. SCOPE OF THE STUDY
Igovernment sector encouraged liberalization of
development in production efficiency and increase in product
The study addresses the defense strategies of alcoholic
quality. Permission was granted to establish new breweries.
beverages in Thailand among market leaders, challengers and
This resulted in an increase of entrepreneurs entering the beer
niches before liquor liberalization in 2000.
business.
Entrepreneurs who entered were Carlsberg Brewery
IV. METHODOLOGY
Company, a producer of Carlsberg beer; Thai Asia Pacific
Data collection was a qualitative approach. This approach
Brewery Company, a producer of Heineken and Thai Beer
took the form of in-depth interviews of the key people and
(1991) Company, a producer of Chang beer. This began
experts in alcohol beverage business. The primary data is
serious competition in beer market.
gathering from direct answers to specific questions. The
At that time imported beers were mainly from Europe and
secondary data was gathered from textbooks, journals,
USA with limited local consumption. Brewery operating
dissertations, newspapers, newsletters, seminars etc.
groups from abroad entered into Thailand and caused an
escalation in the competition for sales.
V. DEFINITION OF TERM
By 1993 Carlsberg Beer Company had entered into the beer
Beer is a beverage that has some alcoholic strength
business producing locally produced Carlsberg beer. It was
obtained from fermentation of drained water from boiling of
not a success. The company then introduced Chang beer into
barley, malt and/or rice of other species and/or sugar, hop
the market. Increasingly severe and fierce competition
flowers and pure water having alcoholic strength below 15
between Singha and Chang resulted. All companies in the
degrees.
industry had to re-evaluate price changes, distribution,
promotional intensity and new-product introductions.
VI. FINDINGS
While trying to expand its market size, the dominant
Boon Rawd Brewery Company was a company that is the
company must continuously defend its current business
acknowledged market leader for a long time due to a legal
against rival attacks. Companies that occupy second, third and
monopoly and the company has the largest market share in
lower ranks in a business are often called runner-up, or
beer market. Therefore, Boon Rawd Company was a dominant
trailing, firms. An alternative to being a follower in a large
company and normally gains the most when the total market
expands. Singha beer stood to gain because it sold over 90%
Manuscript received December 20, 2007. The study involved many persons
of the country’s beer consumption. This induced new beer
in both private and government sectors. Without their cooperation, the
companies to join the market.
completion of my study would have been impossible. I would like to express
A new era of beer market in Thailand began when
my thank to experts in alcoholic businesses who inform data with honesty.
S.S. Authors is an Associate Professor in International Business, Faculty of
Carlsberg beer was being produced for distribution in 1993. In
Business Administration, Ramkhamheang University, Bangkok 10240,
the first period of entering into beer market, measures to
Thailand (e-mail: beesank1@yahoo.com).
492

World Academy of Science, Engineering and Technology 43 2008
establish a lower price level of Carlsberg beer were employed.
Market Leader
Challenger
Follower
Niche
In this regard, one part of the reason was for an opening of the
40%
30%
20%
10%
market for introduction of new products. Later, after entering
products into the market for a period, price strategy was
Fig. 1 Market Share of Market Leader, Challenger, Follower, and
adjusted by Carlsberg with stress on creating a product image
Niches
instead and the level of groups of beer consumers was being
In comparison of sales volume of overall beers of all
re-evaluated. In the primary stage when Carlsberg entered into
producing companies in 1999, Thai Beer (1991) Company
the market it could not be too influential to Singha beer sales.
was the market leader and Boon Rawd Brewery Company was
The key factors were Thailand’s long history with Singha and
the market challenger, having a market share of 57.96% and
their support of a locally produced beer. The loyalty of
34.81% respectively. For other companies, they were Thai
consumers toward Singha beer was high. For Carlsberg, its
Asia Pacific Brewery Company, Carlsberg (Thailand)
image looked like an imported beer. Its competitors should be
Brewery Company and Thai Amarit Brewery Company,
beers from abroad like Heineken, Budweiser and Kloster beer.
which are market niches (Table1).
It can be concluded that a chance for new entrepreneurs in
ability to compete successfully in the market depended on the
TABLE I
capacity to substantially reduce firstly a loyalty of consumers
MARKET LEADER, CHALLENGER AND NICHES (1999)
toward products. In order to solve this challenge, Chang beer,
Production
Percentage
Market
a product of Thai Beer (1991) Company, belonging to the
Companies
Brand
(Million
(%)
Structure
Liters)
same entrepreneur of Carlsberg beer was thus being produced
Thai Beer (1991)
Chang
607.5
57.96
Leader
to launch into the market in 1995 with an image as a local beer
Company
having a concentrated taste which was corresponding to the
Boon Rawd Brewery
Singha
364.9
34.81
Challenger
Company
Leo
demand of Thai consumers and was distributed at a lower
Thai Asia Pacific
Heineken
price than that of general beers.
45.3
4.33
Niche
Brewery Company
Amstel
In the primary stage, budget for advertising and public
Carlsberg Brewery
Carlsberg
17.4
1.66
Niche
relations including a variety of casting lot arrangements was
(Thailand) Company
Kloster
for Chang beer to enable it enter into the market rapidly.
Thai Amarit Brewery
Black
Chang beer was reasonably successful at an early stage. As
Company
Tiger
13.1
1.24
Amarit
Niche
economic conditions were extremely depressed and the
Beck’s
purchasing power of people diminished consequently, selling
Brew Max
Total
1,048.2
100.0
at a low price of Chang beer played a more important role in
the beer market. This took advantage over other competitors
The strategies of the market leader are aimed at maintaining
resulting in a reduced sales volume of Singha beer. As a
market dominance and creating defensive techniques against
result of this new marketing war, both groups re-evaluated
future competitive strikes.
current sales and return strategies to increase market share.
This resulted in Singha Corporation Co. Ltd (under Boon
MARKET LEADER STRATEGIES
Rawd) creating a new beer named Leo and in the following
Defense strategies are employed by the market leader to
year Super Leo (1998 and 1999) in a successful strategy to
avoid a reduction in their market share.
regain some market share of Thai Beer’s (Carlsberg) Chang.
By 1999, Chang beer had emerged as the market leader
In addition Boon Rawd diversified and introduced new non-
with 57.96% of market share. This share was well ahead of
alcoholic drinks such as water, soda and fruit juices to the
Singha, now relegated to challenger. Thai Beer (1991)
market. In the current situation, the beer marketing war has
Company with Chang as the leading brand, therefore, had to
many areas of energetic competition. A big camp like Singha
try to maintain its market share carefully, as Singha beer was
which had occupied a major marketing share for more than 60
still a highly competitive opponent.
years sent in “Leo” to shake the throne of “Chang”. This in
Defense strategies to be employed are detailed below.
turn, caused the competition to be even more belligerent. The
1. Position defense. The market leader, forward thinking,
fighting between Singha beer as market leader and the
planned in an extension of marketing to take necessary
competitor like Chang beer was very interesting to study.
corrective action immediately.
How Chang beer became a new market leader? The
Thai Beer (1991) Company (Chang), was required to have a
developing strategies of challengers and niche?
market share of 10% of the overall beer value of 30 billion
A structure of marketing in the beer production industry
baht by 1996 and, in the future, it planned to occupy an
is similar to that of general industry, namely, it consists of
increasing market share.
market leader, challenger, follower and niches (Figure 1) as
A strategy used by the market leader was local liquor
following details:
selling with a beer plus method, that made Chang beer able to
dump would be sold per 100 baht, particularly in areas where
there was high completion, its price would be five bottles per
493

World Academy of Science, Engineering and Technology 43 2008
100 baht, while Singha beer reduced its price to two intercept the intrusion of the market challenger.
bottles per
When Boon Rawd Brewery Company produced Leo beer
and launched it in June 1998, a variety of strategies were used
(2) Flank defense
by the market leader to challenge this: (1) the selling of local
or white local liquor with a beer plus method with an increase
of quantity during 1995-1997. The previous practice of one
tae of white local liquor with a plus of Chang beer of three
bottles to be one tae of white local liquor with a plus of
(1)
increasing Chang beer to be 1-2 dozen bottles and the number
Position
of beer was continuously increased periodically; (2)
(3) Preemptive defense
defense
conducting aggressive advertising; (3) strongly emphasizing
Attacker
(4) Counter offensive
(6) Contraction
that Chang beer had received a gold medal award with a
defense
defense
universal quality, and (4) utilizing of marketing mix strategy.
Defender
4. Counter offensive defense. The market leader
concentrated on satisfying its customer base. Improvement of
product quality, sales promotions and discounts were aimed at
(5)
Mobile
preventing competitor’s intrusion.
defense
Thai Beer Company, now as the market leader, retaliated to
the market challenger, Boon Rawd Brewery Company, to
prevent it from growing by intercepting an extension of its
market by the following practices: (1) reducing the price of
Chang beer immediately upon the launching of Leo beer and
Fig. 2 Defense Strategies
Super Leo beer for distribution in June 1998 and December
and Leo beer three bottles per 100 baht.
2000 respectively. The technique used was to sell local liquor
An economic factor enabled Chang beer to step upwards to
with a larger amount of beer (beer plus). (2) The use of
be the market leader. In the economic crisis in the middle of
marketing mix strategy. (3) increasing aggressive promotional
1997, a large number of people were discharged from their
and advertising campaigns promoting Chang as a beer that
jobs and their salaries and wages were reduced. Consumer
received a global gold medal award for high quality, and (4) in
purchasing power was diminished and their behavior changed,
product development, the market leader enhanced product
by turning to have a favorite in drinking Chang beer with a
quality and production technology. Improvement in taste for
cheaper price. Their strategy worked. By the end of 2000,
the consumer utilized higher quality raw materials such as first
Chang beer had a market share of as much as 60%.
class malt, a special strain of yeast and premium hops. Teams
2. Flank defense. The market leader had to protect its
of international experts provided assistance in beer
market share from the in surge of competitors, by getting rid
preparation and final quality.
of weak points completely.
5. Mobile defense. The market leader has to be aware of
Chang beer’s original weak points, when it was launched
market movement and change at all times. It is sometimes
for distribution, were that its brand was new and had no
needed to use an aggressive defense to protect a market share
reputation. As part of their brand building strategy Chang was
of its own.
entered into the International Beer Contest in Australia in July
Chang beer was launched in 1995. The market leader
1998 as a lager beer, without limitation of alcohol content. A
concentrated on marketing management all the time and
gold medal was awarded in this category. Chang beer was
several kinds of strategy were used, such as promotion mix
then upgraded from the lower market to the upper market.
strategy as follows:
Complementing strategies were: (1) increasing channels of
For pull promotion strategy, consumer promotion strategy
distribution in deluxe food shops; (2) conducting continuous
was used such as rebate, exchange, handing out, giving gifts
aggressive advertising campaigns (1998-2000 approximately
and
drawing
lots.
Consumer
promotion
was
used
121.7 million baht, 255.8 million baht and 318.1 million baht
consecutively for a five-year period (1996-2000), by the
invested respectively), and (3) emphasizing the esteem of the
arrangement to deliver Chang beer crown caps for drawing
gold medal award for quality and taste. This has resulted in a
lots with rewards in the value of 100 million baht annually,
pride by Thai consumers and foreigners alike that Chang beer
with a total of 500 million baht.
is of a universal standard and high quality.
April 1999, music marketing programs were held in ten
3. Preemptive defense. The market leader must cement the
provinces in the Northeastern part of Thailand to extend the
solidity of its marketing. A requirement is the construction of
market in these regions.
a strong wall to prevent competition, and devising an
Aggressive advertising was carried out: (1) emphasizing
aggressive defense by attacking a competitor prior to being
Chang brand as a beer that received a global gold medal
challenged. The market leader used a protective strategy to
award with a universal quality and (2) stimulating consumers
to “try and buy”.
494

World Academy of Science, Engineering and Technology 43 2008
6. Contraction defense. The market leader may fear
distribution, (2) in the area of prices, and (3) in the area of
fighting in the pattern of confrontation, because it may be
defeated. The market leader will wait and seek data for an
(4) Bypass attack
analysis of a competitor's strategies meticulously and
carefully. In the case of having a chance, the market leader
(2) Flank attack
will attack promptly, by selecting to use an appropriate and a
highly efficient strategy.
The market leader has well established channels of
distribution. Passing through approximately 500 local liquor
Attacker
(1) Frontal
Defender
distributing agents of Sura Thip Group Company (a producer
k
and distributor of Hongthong liquor, Sang Thip liquor, etc.)
and 43 of Affair Company Group. A strong channel strategy
(3) Encirclement
was used by the market leader to protect its own market share
against preemptive attacks by competition.
(5) Guerrilla attack
Market Challenger Strategies
Boon Rawd Brewery Company as the market challenger
Fig. 3 Attack Strategies
has a market share in a secondary order, which is a subsidiary
to Chang beer. In the matter of protecting market share and
products. The market challenger attacked on the weak point of
making an extension of it, the market challenger has to study
products of the market leader, by using brand strategy and
and analyze the market leader elaborately. Attacking the
advertising strategy in the following ways: (1) attacked Chang
market leader is highly risky, but the market challenger has to
beer, as a beer of a lower level compared with Singha beer
take action to gain victory.
that had higher brand loyalty and (2) the manner of local
The technique is to: (1) assess psychological areas of
liquor selling with a beer plus method, as an action that
weakness and (2) employ a general attack strategy. Boon
destroyed the market mechanism. The purpose was to identify
Rawd Brewery Company used a general attack strategy
to consumers an ethical violation of trading practices.
(Figure 3):
3. Encirclement attack. Boon Rawd Brewery Company, as
1. Frontal attack. This is an attack at an enemy's strength.
the market challenger, had to offer products for selling to
It utilizes and combines instruments relating to marketing
consumers with granting them a chance in selecting in a
techniques, such as competing management confrontations
variety of quality models, and prices, in order to make a
(the psychological), competing by heavy advertising,
response to customers' demand in every level.
arranging of sales promotion activities and the undercutting of
Proactive and brand strategies, for example, would be used
prices. Boon Rawd Brewery Company, as the market
coupled with heavy advertising, marketing mix and sports
challenger, had to keep market share and tried to extend the
marketing strategies. New products of several brands were
market by using the following strategies: (1) the use of block
produced by Boon Rawd Brewery Company to respond to
channel strategy by establishing Singha beer trader cycles in
target groups, such as Leo beer for customers who with a low
the number of 11 circles throughout the country, having a total
income; Super Lion beer for substitution of Super Leo beer
of 360 agents with an issuance of regulations forbidding in
with a 6.8% alcohol content and more intense taste and
selling competitors' products and establishing of penalties
Mittweida beer for customers who liked to drink foreign beer.
for those
4. Bypass attack. This is development of sales of new
who violated such regulations. In the case there was any
products not necessarily concerned with former products, the
violation of regulations, the right to be an agent would be
application of new technologies, including an extension of
deprived. An opportunity for a new appointment would not be
new markets.
opened. By these reasons, it caused all agents to try to keep
The market challenger used product and market expansion
their status in their full capacity. (2) Production of a new
strategies. Boon Rawd Brewery Company produced new
product (year 1998-2000), such as Leo beer, Super Leo beer,
products, such as canned fruit juice and seasoning sauce by
Super Lion beer and Mittweida beer would be carried out to
using mostly domestic agricultural raw materials.
retaliate directly. Super Lion beer and Singha Gold beer were
Singha beer improved quality and packaging to respond to a
fighting with Chang beer and Mittweida beer was fighting
new generation of consumer demand, and produced Super
with
Lion and Mittweida beer as alternatives for beer consumers.
Heineken and Kloster beer and so forth. Reduction of the
They extended the market to overseas and produced a Singha
price
can beer and a Singha Gold can beer contained in a new can in
of Leo beer to compete with Chang beer in 1998 enabled it to
the pattern of Stay on Tap (SOT). Local pride was enhanced
gain market share of more than 20%.
knowing Singha was now an international brand.
2. Flank attack. An attack on a weak point of a competitor
5. Guerrilla attack. This is an attack on competitors' markets
company when a chance can be seen such as: (1) in the area of
by using a variety of strategies.
495

World Academy of Science, Engineering and Technology 43 2008
Boon Rawd Brewery Company, in the year 2000,
advertised via television denouncing the market leader for
Similar Strategies
selling local liquor with a beer plus method as a violation of
The market leader, the challenger and the niches used the
liberalization ethic. The purpose was to let consumers
same marketing mix as follows:
recognize and oppose Chang beer. The market challenger used
Product strategy. The market leader used a product strategy
strategies to complete with the market leader, such as a
to improve quality and develop new products to increase sales
discount of retail price of Leo beer to complete with Chang
volume. Three areas are identified below:
beer and used other strategies such as marketing mix, trade
The market had many companies competing.
promotions and improvement of quality and packaging of
The improvement and the development of new products
Singha beer to be a modern beer of the new generation. The
impressed consumers.
purpose was to promote newly developed products and to
Products now had a life cycle, satisfying the new
extend the market.
generation of consumers.
The market leader had improved quality and received the
Market Niche Strategies
gold medal award in the category of lager beer in the
Market niches in Thailand are Thai Asia pacific Brewery
International Beer contest in Australia in July 1998. This
Company, Carlsberg Brewery (Thailand) Company and Thai
prestigious award serves as one of the important selling points
Amarit Brewery Company and imported beer companies.
of the market leader.
Market niches applied marketing mix. Examples follow:
Product strategy. Market niches conducted research and
TABLE II
developed products jointly with their respective parent
SIMILAR AND DIFFERENT STRATEGIES
companies. The purpose was to carry out marketing to give
Companies
Similar Strategy
Different Strategies
consumers a good impression with products that had been
Domestic Beer
already developed.
- Selling local liquor
C.V.S. Syndicate Company, an imported beer company,
with beer
1. Thai Beer (1991)
strategy
used brand image to stimulate consumers' demand. Corona
Company
- Strong channel
beer, with a lemon wedge was aimed at discerning consumers
strategy
with a high level of taste.
- Block channel
strategy
Price strategy. Market niches followed the policy of price
2. Boon Rawd Brewery
-Strategies in creating
setting according to the market leader.
Company
Marketing mix
marketing hindrance
An increase in niche prices would result in lower sales. In
3. Thai Asia Pacific
the case the market leader reduced price, niches would follow
- Music marketing
Brewery Company
by reducing also to maintain customer base. The price setting
4. Carlsberg Brewery
-Product warranties
policy of niches was aimed at selling more products. It is
(Thailand) Company
and service
difficult to compete against the market leader and primary
5. Thai Amarit Brewery
-Credit marketing
Company
challenger due to their advantage of scale.
Imported Beer
Promotion strategy. Market niches added sales volume and
1. C.V.S Syndicate
Brand image strategy
added market share. Similar strategies were consumer and
Company
Marketing mix
trade promotions.
2. TIS Worldwide
Proactive strategy
(1997) Company
Thai Asia Pacific Brewery Company and Carlsberg
Brewery (Thailand) Company used music marketing, product
Price strategy. As mentioned previously, market niches
warranties and services as push promotion strategies. In
follow the policy of price setting according to the market
advertising, market niches used media mix strategy.
leader, combined with a strategy of local liquor selling with a
Channel strategy. Market niches administered agents to
plus of beer had increased Chang sales.
utilize on and off premises marketing channels aimed at
Promotion strategy. To increase sales volume, the market
increasing sales volume.
leader used sales promotion strategy directly with consumers
Thai Asia Pacific Brewery Company arranged amusing
as follows:
games to entertain potential consumers. Thai Amarit Brewery
(1) a consumer promotion strategy was used for an
Company found additional customers by giving a prepaid card
arrangement of program for the delivery of Chang beer crown
(credit marketing). These are categorized as push channel
cap pieces to draw lots, for rewards valued at 100 million baht
strategies.
per year, by holding drawing lot programs consecutively for
five years (1996-2000), using a total expense budget in the
STRATEGY COMPARISON AMONG COMPANIES
amount of 500 million baht.
Studying the marketing strategies of the leader, challenger
(2) a music marketing strategy was used (April 1999) by the
and the niches, there were both similar and different
arrangement of a country concert celebration of the gold
strategies. There was, however, a relationship to each other
medal Chang beer towards ten provinces in the Northeastern
(Table 2) as follows:
496

World Academy of Science, Engineering and Technology 43 2008
part of Thailand.
competitive situation. It was done by discounting Leo beer to
Advertising. The purpose in advertising of the market
three cans per 100 baht and two bottles of Singha beer per 100
leader was to emphasize a repeat of brand. A budget for
baht.
advertising Chang beer in the amount of 318 million baht in
Promotion. As the market challenger desired to increase
2000, was used by mainly utilizing advertising via the
sales within a short period, two strategies were used, namely:
television medium, calculated to be 97.28% of the whole
(1) Push promotion strategy, which a trade promotion was
expense of advertising cost.
used with agents and shops
The advantage of advertising via television is that it is a
(2) Pull promotion strategy by using a consumer promotion
combination of picture, sound and movement, which promotes
in the following manners:
good feelings and can be accessible to target groups. The
The market challenger has held activities jointly with
disadvantage is that the cost of advertising is high. The market
agents and shops to stimulate increased sales volume, which is
leader selected to use advertising media appropriately with
conducted by using beer crown caps to deliver casting lots and
target groups and used the well-known country singer named
by arrangement of sports marketing, such as car racing and
"Ad Karabao" to make a repeat of a selling point of a gold
marathons.
medal award Chang beer coupled with a crowd drinking
Advertising. Media strategy had been used by the market
Chang beer with fun. It was a medium to let consumers
challenger to attack a competitor. The advertising cost in 2000
recognize that Chang beer is appropriate for celebrations and
was up to 332.9 million baht, which media used was mainly
entertainment. This push promotion strategy helped Chang
television at 91.31%. The purpose in using this strategy was
beer to be successful.
to:
Channel strategy. The market leader had channels of
(1) Increase market share
distribution via local liquor distribution agents of Sura
(2) Attack the competitor
Maharas Public Company, including Sura Thip Group
(3) Build brand awareness.
Company, Sang Som Company and 43 Company Group. It
Channel. The market challenger had administered channels
was regarded to be a strong channel of distribution. The
of distribution to distribute products to wholesalers and
market challenger had marketing mix strategy similar to the
retailers.
market leader, but had different objectives and targets from
the market leader as follows:
Market Niche Strategies
Product: Quality and packaging of Singha beer were
Market niches used marketing mix strategy as the following
improved including carrying a product life cycle. Being the
respects:
same category of product, competition is high. Consumers
Product. Thai Asia Pacific Brewery Company had
were pleased with this improvement and development.
improved and developed Heineken and Amstel beer to aim for
The market challenger then issued new products, such as
sales and desires to be the market leader in the premium beer
Leo beer (1998), Super Leo beer (1999), Mittweida beer
market. Carlsberg Brewery (Thailand) Company developed
(1999) and Super Lion beer (2000).
and changed the packaging of bottles, to be in a green color
The purpose was to:
and sticking a black label on the bottle with the word "Cool",
(1) Let them be aggressive with competitors
to constitute a selling point to make sales increase. Thai
(2) Add alternative products to consumers
Amarit Brewery Company improved the quality of taste of
(3) Maintain marketing share
Kloster beer. Its purpose was to:
(4) Increase sales volume.
(1) Create customer satisfaction
Packaging was upgraded for Singha beer, Singha Gold
(2) Increase sales.
beer, Leo beer, Super Lion beer, etc to be sold in cans and to
Price. Market niches set the retail price to be approximate
be a Stay on Tap (SOT) product. The advantages were:
to that of the market leader. It is a strategy of price setting that
(1) It is easy to carry
aims to boost sales or quantity of sales. Its purpose was to:
(2) It is convenient to buy
(1) Increase sales
(3) It creates satisfaction to consumers allowing them to
(2) Maintain market share
share in the conservation of the environment.
(3) Increase market share
To conclude, the purpose in using product improvement
(4) Survival of the firm
strategy was to:
Promotion. Similar methods were use as stated
(1) Use strategies to attack the market leader;
previously, such as conducting sales promotions at selling
(2) Take into account of consumers' demand and
points, using pieces for drawing lots, rebate, exchange and
satisfaction;
providing an extra gift.
(3) Scramble market share
Advertising. Media mix was used, such as television,
(4) Use a quality strategy.
radio, newspapers and motion pictures. The purpose was to
Price. The market challenger used a price setting
increase sales.
strategy. Its purpose was for survival. Its price was, therefore,
Channel. Mutual channels of distribution were used, such
set in a level that the business could survive in a highly
as trade centers, convenient stores, food shops, on premises
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World Academy of Science, Engineering and Technology 43 2008
etc. To conclude, objectives in using a marketing mix strategy
(2) An extension of market share.
are different. It has been used by the market leader for
Proactive strategy is also used, for instance, selling local
protection and extension of its market share. The market
liquor with a beer plus method, strong channel strategy etc.
challenger has used it for counter-attack and increasing market
This purpose is to:
share. For market niches, they have used it for seeking
(1) Protect market share
revenue and increasing market share.
(2) Preemptive strikes against competitors
Different Strategies
Mix strategies can be highly efficient.
In the different strategies of the market leader, challenger
and niches, objectives were similar, namely:
Relationship Among Local Liquor Selling With a Beer Plus
(1) Aiming for accomplishment
Strategy, Marketing Mix and Proactive Strategy
(2) Increase efficiency of marketing mix
The market leader used push strategies to promote Chang
(3) Increase sales.
beer to achieve maximum sales. They were able to occupy a
The market leader used management strategy by selling
market share of up to 60% in 2000, by using local liquor
local liquor with a beer plus method and using solid marketing
selling with a beer plus strategy to reduce substantially the
channels. The company used a product to stimulate
price of Chang beer. This included the use of forceful
consumers demand by reducing prices and pushing products
advertising and marketing mix. The market leader needs to
into marketing channels, and letting such goods stock at
protect market share, try to extend a market and maintain
agents and retail shops in bulk. The price was lowered but
being a leader, for as long as possible. Strategies, as above
sales increased. Again, efficiency of scale comes into play
mentioned, have to be used in combination with defense
and year-end earnings were little affected.
strategies.
The market challenger used a mutual alliance drawing
strategy and a channel blocking strategy and had to prevent
Relationship Between Block Channel Strategy and Marketing
market share from increasing erosion caused by competitors.
Mix and Finding Mutual Alliance With Kloster Beer and
It had to find an opportunity to protect itself, by using other
proactive Strategy
alternative strategies.
The market challenger Singha has made an attempt in every
Market niches used music marketing as product warranties
aspect to maintain market share of Singha beer. A pull channel
and service. Their marketing strategy takes into account
strategy has been used to block marketing channels of its own
agents and not to let a competitor gain market share. Also, a
consumer orientation. When a product satisfies a customer,
push channel strategy was used by developing an alliance with
demand and sales will increase. Importantly, in a warranty of
Kloster beer to attack the market leader. The relationship
product quality, the quality of product has to be excellent and
between similar and different strategies, as above mentioned,
fulfill the advertising claims. If not, the customer will consider
will help marketing management efficiency.
the product unreliable.
Credit marketing is a modern selling strategy, because some
groups of customers do not like to carry large amounts of cash
Relationship Among Music Marketing Strategy, Credit
Marketing Strategy, Proactive Marketing Strategy and

strolling in shopping centers etc. Many products are bought by
Marketing Mix Strategy
customers spontaneously, because of having a credit facility
Strategies, as above mentioned, were used by market niches
available. Market niches used this selling strategy in various
in order to boost market share and to occupy more market
marketing channels with a comprehensive scope and they
share, such as music marketing strategy, marketing mix
obtain members or customers increasingly, due to using credit
strategy and proactive strategy. They were used by Thai Asia
cards. The credit cards can be universal (AMEX etc) or
Pacific Brewery Company, as a push strategy to push
supplied by the product company.
Heineken beer to have sales approaching being a leader of
premium beer, with a market share of 80% in 1998.
RELATIONSHIP AMONG MARKETING STRATEGIES
Product warranties and service strategy were used by
For the success of marketing management, mix strategies
Carlsberg Brewery (Thailand) Company, as a push promotion
are vital to the market leader, the market challenger and the
strategy coupled with marketing mix strategy to increase sales.
niches. Mix strategies consist of strategies, as above
The promotion was used to attract customers, as well as
mentioned. It is a combination of several strategies to push
showing a good quality product with certification. This would
and pull products to reach consumers rapidly, to increase sales
lead customers to make a decision in buying more easily and
and push forward to being a market challenger and a market
rapidly.
leader ultimately. Mix strategies are highly efficient and they
Thai Amarit Brewery Company, the producer of Kloster
cover objectives of marketing in a broad scope, such as
beer, to increase sales, used marketing mix and proactive
marketing mix of the market leader is undertaken for the
strategy and also credit marketing strategy, which serves as a
purpose of:
push channel strategy
(1) Protection of market share
TIS Worldwide Marketing (1997) Company, as a beer
importer from abroad and as a market niche, used proactive
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World Academy of Science, Engineering and Technology 43 2008
strategy and marketing mix for marketing management to
In the middle of 1997, there was an economic crisis in
increase sales.
Thailand. A large number of employees were discharged and
The successful application of similar and different strategies
the salaries of others, who were still employed, were reduced.
consists of several factors that can be described as follows:
In 1998, 1.4 million people were unemployed. Consumers
(1) Using mix strategies that have a logical relationship to
were thrifty and reduced spending for deluxe goods, such as
each other and the selection of push and pull strategies
automobiles and imported products from abroad. However,
applicable to current market circumstances
the quantity of beer production in 1998 for distribution still
(2) Using strategy progressively
increased from the previous year (1997) up to 11.8%.
(3) Selection in the use of efficient strategies should be
The reason was that consumers still enjoyed beer
compatible with current economic and local situations
consumption in an increasing quantity, even though the Thai
(4) Strategies must be ready to deploy immediately if
economy had slowed down and they changed their behavior of
required. Sufficient capital and other logistical factors must be
consumption, by turning to select beer with a cheaper price.
available
Since Chang beer’s price was cheap, it was therefore popular
(5) Product quality strategy planning concerns maintaining
and its sales soared, both in Bangkok and provincial areas.
current high product quality and continual enhancement of
Thai Beer (1991) Company, as the producer of Chang
quality control techniques. Improvement in life span is an
beer, used a dumping marketing strategy of product retail
example of instilling confidence in consumers as to the
prices to be lower, by the method of local liquor selling with a
product’s reliability. Using a product quality strategy, coupled
beer plus method. In 1999, Chang beer was the market leader
with advertising, it increases consumer confidence that a
Table 1) with a market share of 58%; Boon Rawd Brewery
product would be of good quality and has been continuously
Company’s (Singha beer, Leo, Super Leo, Supper Lion and
developed and improved.
Mittweida) market share fell to 35% and was now the market
challenger (being the former market leader for 65 years, 1933-
VII. CONCLUSIONS
1998).
From a study concerning modernization of beer selling, it
The rate of growth of the beer industry in Thailand is high.
was found that key factors that caused Singha beer to be
A quantity of production was averagely increased during the
relegated to second place and Chang beer to be the market
ten year period between 1990 and 2000, in the percentage of
leader, as above mentioned, was an application of similar and
16.2% per year. Almost the whole quantity of production is
different appropriate market strategies. The market leader
domestic consumption and exports to overseas are only 1-2 %.
took advantage of a competitor, by using a strategy of local
In addition, renowned beers are imported into Thailand in
liquor selling with a beer plus method, which is both a price
response to consumer’s demands.
strategy (dumping prices to be lower) and marketing channel
The future of the beer industry is still bright, since Thai
extension strategy in a broad scope. This was coupled with
society still enjoys the consumption of beer and along with a
the use of a marketing mix strategy, making a choice in using
recovery of the Thai economy. Liberalization of liquor
strategies to be compatible with a market where consumers
legislation in 2000 and subsequent increased competition
have low purchasing power, cheaper prices, using marketing
resulted in cheaper beer and increased sales.
strategies steadily with high frequency and creating reliability
Competition is high. Continuous improvement in taste,
in product quality. Additionally, having a large amount of
packaging and service is satisfying to customers. Marketing
capital and taking into account consumer patterns, promoted
management has realized the importance of consumer
Chang beer to be the market leader.
orientation.
Thai Asia Pacific Brewery Company is the market niche
A special feature of the beer industry is freshness. Beer is
in the distribution of Heineken beer, with the maximum
always required to be kept at a cool temperature and to be in a
quantity in a premium segment. It is a success due to the
fresh condition. Production in the beer industry is generally
management of marketing mix. The company produces and
mass production. The beer industry has a relationship with
distributes Heineken beer with good quality and its taste is
each other among the sectors of agriculture, economy, society,
compatible with Thai preferences. Sales promotion activities
government and the international market.
and advertising are conducted with high frequency and
In 1933, Boon Rawd Brewery Company was the first beer
steadiness. Also, the use of aggressive sports marketing to
producer in Thailand. In 1977, Thai Amarit Brewery
approach target groups and using of marketing channels
Company produced Kloster beer to launch onto the market.
belonging to a partner (channels of distribution belonging to
Singha beer was the market leader and Kloster beer was the
Coke) comprising approximately 400,000 agents throughout
market niche. In 1991, the government agreed on a policy to
Thailand have made Heineken beer the leader of the premium
add a number of breweries in Thailand. In 1993, there were
beer market.
three new additional beer producers. They were Thai Asia
To manage marketing to achieving defined goals, beer
Pacific Brewery Company, Carlsberg Brewery (Thailand)
companies have to attach the importance to consumers, as the
Company and Thai Beer (1991) Company who produced
consumer is paramount. Therefore, the modernization of beer
Heineken,
Carlsberg
and
Chang
beers
respectively.
selling stresses marketing success beginning from the study of
Competition in the beer market began to rise. The competition
consumers’ demands and ending with consumer satisfaction.
among the five major beer producers became more intense.
Beer companies build consumer satisfaction through
499

World Academy of Science, Engineering and Technology 43 2008
marketing mix and marketing strategy to respond to consumer
[7] Khookhaeng Weekly
demand.
[8] Phoojudkarn Raiwan
A
Interviews
CKNOWLEDGMENT
[1] Mr. Kawinanan, Thon. TIS Worldwide Marketing (1997) Company.
The study represents the end of a long and fulfilling process
Managing Director.
that involved many persons to whom I am indebted.
[2] Mr. Luxsitanonda, Rungsrid, Boonrawd Trading Company. Advertising
I would like to express my thanks sincerely to both the
and Public Relation Director.
[3] Mr. Prejapanij, Karn. C.V.S. Syndicate Company. Assistant Marketing
private sources and government office who gave advice and
Director.
valuable information concerning alcoholic beverages in
[4] Mr. Pongtanya, Panya. Thai Asia Pacific Brewery Company. Deputy
Thailand.
General Manager.
[5] Mr. Thaweengam, Nathaphol. Boonrawd Trading Company General
My sincere thanks and deep appreciation are also extended
Manager.
to alcoholic beverage companies who patiently and candidly
[6] Mr. Tarpanwong, Somboon. Thai Amarit Brewery Company, Vice-
answered all my questions and also to the interviewer who
President-Factory Department.
helped collect data with patience and honesty. Without their
cooperation, the completion of my study would have been
Sinee S. was born in Bangkok on 10 July 1952. She obtained her Ph.D. in
impossible.
(Leadership and Human Behavior) from the United States of International
University in 1995, the United States of America., M. A. in Developing
R
Economics from National Institution of Development Administration in 1987,
EFERENCES
B.A. in Mass Communication Arts (Hon) from Chulalongkorn University in
[1] Bank of Thailand, Academic Section, Conclusion of Industrial
1975, and B.A. in Economics from Ramkhamhaeng University in 1987.
Business Situation, 1994, 1995 and Tendency in 1996.
She was an Associate Professor at King Mongkut Institute of
[2] Bernard Simon. “Canada Ads Sparkle to De Beers’ Strategy.”
Technology (KMITL) during 1981 to 2001. From 2001 to the present, she has
Financial Times. London (UK): Oct 30, 2004, p. 6.
been an Associate Professor in Business Administration at Ramkhamhaeng
[3] “Brewing a Beer Strategy.” Anonymous. Convenience Stores Decision.
University. She has authored many text books in the area of Agribusiness,
Newtown: Jun 2006, Vol. 17, No. 5, p. 20.
Organization and Management, Human Resource, International business and
[4] Browersox, Donald J., and Cooper, M. Bixby. 1992. Strategic
has published many research papers and articles. Her current and previous
Marketing. Singapore: McGraw Hill Book Company.
research interests are “Analysis of ASEAN Economic Change, Consumer
[5] “Budweiser: The King of Beers’ New Clothes.” Marketing Week.
Behavior, Marketing Trends and International Trade with NAFTA” and “An
London: Aug 10, p. 23.
Analysis of Business Leaders in Thailand”. She also joined the International
[
Business Conference in Hawaii and London and has participated in seminars
6]
“Budweiser truck burns in Somerton” Knight Ridder Tribune Business
in the United States of America and Korea.
News. Washington: Mar 10, 2006. P. 1
[7]
Cravens, David W.1994. Strategic Marketing. Illinois: Richard D.
Dr. Sankrusme has been a membership in National Research Council of
Irwin, Inc.
Thailand. Her publications are:
[8] Doug Campbell. “Beer Nuts.” The Business Journal. Greensboro: Dec
[1] “An Analysis of Business Leaders in Thailand” The Business Review:
30, 1999, Vol. 2, No. 13, p. 12.
Cambridge, Vol. 8, No 1, Summer 2007, pp. 114-120.
[9] FT.com site: Canada Adds Sparkle to De Beers’ Strategy. Bernard
[2] “The Changing Nature of Marketing in Japan” International Conference on
Simon in Toronto. FT.com London: Oct 29, 2004, p. 1.
Business. The 6th Hawaii International Business Conference, May 24-28,
[10] Kali Pearson. “Beer Story.” Profit. Toronto: March 2003. Vol. 22, No.
2006. Honolulu, Hawaii, U.S.A
1, p. 39.
[3] “An Analysis of Alcoholic Beverage Marketing History in Thailand”
[11] McDaniel, Carl Jr., and Darden, William R. 1987. Marketing.
International Conference on Business. The 6th Hawaii International
Massachusetts: Allyn and Bacon.
Business Conference, May 24-28, 2006. Honolulu, Hawaii, U.S.A
[12] Methaporn Anuyahong. 2002. The Development of Marketing Strategy
for Boon Rawd Brewery Co., Ltd. Bangkok: Marketing Graduate
School, Rajabhat Institute Suan Dusit.
[13] Lamb Jr., Charles W.; Hair Jr., Joseph F. and McDaniel, Carl. 1994.
Principles of Marketing. Ohio: South-Western Publishing Company.
[14] Landler Mark and Beery Jonathan. “Ogilvy’s Big Bet on Big Blue.”
Business Week. New York: Jul 4, 1994, No. 3379, p. 70.
[15] Lisa Fickenscher. “Beer Wars at a Head.” Crain’s New York Business.
New York: Aug 22, 2005, Vol. 21, No. 34, p. 2.
[16] Rick Armon. “Beer Brewed Just for Ohio.” Knight Ridder Tribune
Business News. Washington: Jun 14, 2006, p. 1.
[17] Tom Daykin. “Budweiser fires patriotic salvo at Miller, Coors in battle
of the beers” Knight Ridder Tribune Business News. Washington: Apr
17, 2005. P. 1
[18] Tom Daykin. “Miller shifts focus to smaller brands: Strategy includes
‘stoking’ older brews” Knight Ridder Triburne Business News.
Washington: Jul 8, 2007. p. 1.
Periodicals and Newspapers
[1] Bangkok Post
[2] Nation
[3] Choojadkard Raiwan
[4] Thansettakij
[5] Krungthep Turakij
[6] Prachachart Turakij
500

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