BM4825 - Physical Distribution of Singha Beer


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Physical Distribution of Singha Beer

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BM4825 - Physical Distribution of Singha Beer

  1. 1. Woraphan Atikomtrirat ID : 4414107 SEC : 401
  2. 2. <ul><li>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. </li></ul><ul><li>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. </li></ul>Product Attributes
  3. 3. Product Attributes
  4. 4. Price Structures <ul><li>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% ) </li></ul>
  5. 5. Price Structures <ul><li>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. </li></ul>
  6. 6. Target Customers <ul><li>Singha, the traditional Thai beer, which had seen some image-development work in previous years to increase its acceptability to younger, affluent groups </li></ul><ul><li>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 </li></ul>
  7. 7. Market Shares <ul><li>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. </li></ul><ul><li>Now Singha Beer have only 30% market share. </li></ul>
  8. 8. Distribution Structures <ul><li>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. </li></ul>
  9. 9. Distribution Structures
  10. 10. Channel Strategies <ul><li>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. </li></ul>
  11. 11. Distribution Structures