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BM4825 - Physical Distribution of Singha Beer

Date post: 23-Jan-2015
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Physical Distribution of Singha Beer
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Woraphan Atikomtrirat ID : 4414107 SEC : 401
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Page 1: BM4825 - Physical Distribution of Singha Beer

Woraphan Atikomtrirat

ID : 4414107

SEC : 401

Page 2: BM4825 - Physical Distribution of Singha Beer

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

Page 3: BM4825 - Physical Distribution of Singha Beer

Product AttributesProduct Attributes

Page 4: BM4825 - Physical Distribution of Singha Beer

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% )

Page 5: BM4825 - Physical Distribution of Singha Beer

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.

Page 6: BM4825 - Physical Distribution of Singha 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

Page 7: BM4825 - Physical Distribution of Singha Beer

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.

Page 8: BM4825 - Physical Distribution of Singha Beer

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.

Page 9: BM4825 - Physical Distribution of Singha Beer

Distribution StructuresDistribution Structures

Page 10: BM4825 - Physical Distribution of Singha Beer

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.

Page 11: BM4825 - Physical Distribution of Singha Beer

Distribution StructuresDistribution Structures

Page 12: BM4825 - Physical Distribution of Singha Beer

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