bm4825 - physical distribution of singha beer
Post on 23-Jan-2015
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Woraphan Atikomtrirat
ID : 4414107
SEC : 401
Singha Beer is the leading product of the Boon Rawd Brewery Co. Ltd. located in Bangkok, Thailand. Singha has for many years been Thailand’s most popular beer.
A premium lager beer brewed from the finest ingredients, Singha is a full - bodied 100% barley malt beer that contains notes of lemons, flowers and cinnamon.
Product AttributesProduct Attributes
Product AttributesProduct Attributes
Price StructuresPrice Structures
• Since Chang Beer use the competitive price by cut
their price 5 Baht below Singha Beer and with stronger
degree. Because of Chang Beer’s manufacturer was
owner of rice whisky. Even small villages in up country
have rice whisky but beer can’t reach. So, this opportunity
Chang will balance their price of beer and rice whisky. In
the past rice whisky is 40 baht and beer is 40 baht then
they change to rice whisky is 45 baht and beer is 35 baht.
For the present rice whisky is 65 baht and beer is 25 baht.
Because of rice whisky they always sell and expand the
Chang beer market. In this situation Singha Beer loose
their market share (Chang Beer sale volume increase
256% but Singha Beer sale volume reduce 50% )
Price StructuresPrice Structures
• Singha Beer’s manufacturer try to open the rice
whisky market for find the competitors to Chang due to
Chang Beer’s manufacturer is the only one rice whisky
factory in Thailand at that time. By Boon Rawd Brewery
Co. Ltd. enter to auction. Its make cost of manufacture of
Chang increased. Then Boon Rawd Brewery reduces
their price and use fighting brand strategy but isn’t work.
So, Boon Rawd Brewery uses the choice band strategy by
release “Leo Beer” into the market for fight with Chang
Beer.
Target CustomersTarget Customers
• Singha, the traditional Thai beer, which
had seen some image-development work in
previous years to increase its acceptability to
younger, affluent groups
• The Heritage Thai: a personality that
appeals to those who value heritage, and in
Thailand this includes Thai heritage in particular;
a more mature personality, is reliable and
respects values and traditions like family; Boon
Rawd's corporate image and many of its
advertisements its an reflect this personality
Market SharesMarket Shares
• Singha Beer is the oldest Thai beer
and used to have a 90% market share
until Chang came along. The total value
of Beer market in Thailand (2006) is 82
Billion Baht.
• Now Singha Beer have only 30%
market share.
Distribution StructuresDistribution Structures
• At present, there are 300
distributors to serve the customers
throughout Thailand. Internationally,
Singha Beer has been exported to
connoisseurs around the world since
1970's and is currently present in 36
countries worldwide with a total of 40
distributors.
Distribution StructuresDistribution Structures
Channel StrategiesChannel Strategies
• Singha Beer used the new strategy by
set distributing agents in the distinct. Each
distinct has 10 agencies. For example Bangkok,
Out bound, Lower North, Upper Northeast, East,
Upper Central, Lower Central and South. This
strategy makes standardization of the company
and set the price equally to the agencies. It’s
increase the sale volume by 7%. And they also
have their own transportation system because
they can control the quality of transportation.
Distribution StructuresDistribution Structures
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