Embed Size (px)
Citation preview
A MARKETING STRATEGY FOR
SUPER-PREMIUM DRAFT BEER SEGMENT
BY
MR. NATTHAPHOJ TANSAKUL
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2014
COPYRIGHT OF THAMMASAT UNIVERSITY
A MARKETING STRATEGY FOR
SUPER-PREMIUM DRAFT BEER SEGMENT
BY
MR. NATTHAPHOJ TANSAKUL
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2014
COPYRIGHT OF THAMMASAT UNIVERSITY
(1)
Thesis Title A MARKETING STRATEGY FOR SUPER-
PREMIUM DRAFT BEER SEGMENT
Author Mr. Natthaphoj Tansakul
Degree Master of Science Program in Marketing
(International Program)
Major Field/Faculty/University Faculty of Commerce and Accountancy
Thammasat University
Independent Study Advisor
Prof. Dr. Paul G. Patterson
Academic Years 2014
ABSTRACT
This independent study, “A MARKETING STRATEGY FOR SUPER-
PREMIUM DRAFT BEER SEGMENT”, aims to analyze market opportunity,
consumer’s consumption behavior, competitors’ strategy, and to figure out strategy
for Super-premium draft beer segment and the suitable segment target positioning.
The results in finding will be benefit to the brands or companies those who are
interested in importing original-quality international draft beer especially
‘Hoegaarden’ and ‘Stella Artois’, the number one and two leaders in super-premium
draft beer category imported by brewery company The study is developed based on findings from both primary and secondary
data in fields of exploratory and descriptive research. The descriptive research
methods are focused on only qualitative area included in-depth interview with 15
minutes script questions. In-depth interview was conducted in 15 random respondents
found in bar, pub and restaurant. Respondents live in Bangkok and have an awareness
of Super-premium draft beer segment.
The result of this study were shown that Super-premium draft beer brands
should market to the adult working class those who are at the age between 25-40
years old and live in Bangkok. Although the Super-premium draft beer should be an
element to connecting and creating good atmosphere. Researcher suggests that core
element of Super-premium draft beer marketing strategy will be the taste of products,
(2)
company should do further taste test of the specific brand prior to import to Thai
market that will show which taste that Thai consumers favor to. The product needs
differentiation from other categories. The details of recommendation for 4P’s are
provided in this study.
Keywords: Super-premium draft beer, Pub and restaurant, Marketing Strategy,
Product, Price, Chilling, Connect, Taste
(3)
ACKNOWLEDGEMENTS
First of all, I genuinely would like to express my gratitude to my advisor,
Professor Dr. Paul Patterson, for his kind encouragement and very valuable advice
throughout this independent study. Without his support, advices, knowledge and
patience, this independent study would have never been possible. Also, his
recommendation on persons who I could benefit from using script questions to do in-
depth interview and the very useful guiding idea to develop my research and study. I
truly appreciate his kindhearted contribution in both time and afford to make this
independent study become one of the best experiences in my life.
Furthermore, I would like to extent my appreciation to MIM Program,
Thammasat University especially to Asst. Prof. Pannapachr Itthiopassagul, MIM
Director and all the staffs for their kind effort and assistance. Lastly, I would like to
thank all of the friends for their helpful answers and great support throughout this
paper.
Mr. Natthaphoj Tansakul
(4)
TABLE OF CONTENTS
Page
ABSTRACT (1)
ACKNOWLEDGEMENTS (3)
LIST OF TABLES (5)
LIST OF FIGURES (5)
CHAPTER 1 INTRODUCTION 1
1.1 Problem Statement and Research Purpose 1
1.2 Research Objectives 2
CHAPTER 2 LITERATURE REVIEW 4
2.1 Finding Summary 7
CHAPTER 3 RESEARCH METHODOLOGY 8
3.1 Framework 8
3.2 Exploratory Research 9
3.3 Descriptive Research 10
3.4 Sampling Procedure 10
CHAPTER 4 DATA ANALYSIS AND RESULT 12
4.1 Choice of Alcoholic Beverages 12
4.2 Beer Market Segmentation 14
4.3 Findings 15
CHAPTER 5 CONCLUSION AND RECOMMEND STRATEGIES 20
5.1 Value Proposition 20
5.2 Segment Target Positioning 21
(5)
5.3 Marketing Mix 22
5.4 Further Recommendation 23
REFERENCES 25
APPENDICES 26
BIOGRAPHY 29
LIST OF TABLES
Tables Page
4.1 Choice of Alcoholic Beverages 12
4.2 Consumers’ perception: Super-premium brands 13
4.3 Consumers’ perception: Premium brands 13
4.4 Consumption rate: Number of visit per month 16
4.5 Consumption rate: Number of pint ordered per visit 17
4.6 Purchasing Factors 17
4.7 Price Range 18
4.8 Place 18
4.9 Promotion 19
LIST OF FIGURES
Figures Page
3.1 SWOT Analysis model 8
3.2 Marketing mix 9
3.2 Sampling procedure 11
5.1 SWOT Analysis 20
1
CHAPTER 1
INTRODUCTION
1.1 Problem statement and research purpose
The alcoholic beverages market in Thailand is an important market as the
country has significant alcohol consumption per capita. The growth in the Thailand
Alcoholic Beverages Market has been largely impelled by the augmenting demand
for premium quality alcoholic beverages and changing consumer preferences.
Increasing demand for alcoholic beverages as contributed by the factors such as high
population growth, rising disposable incomes and molasses production in Thailand is
anticipated to further stimulate the country’s overall alcoholic beverages market in
the following years.
According to the data from Euromonitor International, in 2013 Thailand
has consumed 350 million liters of draft beer. Within the amount, consisted of 100
million liters of Commercial draft beers. This includes both international and local
brands segmented in to 3 segments. The first segment is price at 100-180 Baht per
pint and is beverage produced in Thailand. The second segment is consumed at 10
million liters of Super-premium draft beers and is price at 180-300 Baht per pint.
Noted that the second segment is only imported from abroad. The last segment is
economy beer that is cheaper than 100 Baht per pint. The introduction of Super-
premium draft beer caused Thailand’s former Premium segment of draft beer
consumer to split into two distinguished segments as follow; Super-premium and
Premium beer. The market size of Super-premium segment tends to increase by the
number of drinkers and premium bar in Thailand.
The market size of the alcoholic beverages in Thailand increased 2008 to
2013 with a CAGR of 7%. The Thailand Alcoholic Beverages Market on account of
significant rise in the demand for premium quality alcoholic beverages and increasing
income of Thai population. Beer has lost its dominance to spirits in the Thailand
Alcoholic Beverages Market with a market share 2013. The industry has been
traditionally dominated by the organized sector in terms of revenue generated. Thai
Beverages Plc., Boon Rawd Brewery Co. Ltd., Thai Asia Pacific Brewery, Pernod
2
Ricard and Diageo Moet Hennessey are the leading players in the Thailand Alcoholic
Beverage Market. (Ken, 2014)
The international beer is at 1% of the total market. The trend of
international beer consumption is constantly increasing. Super-Premium draft beer
segment has double digit growth rate for the last 2 years and expected to have a
continuous strong growth over the next few years.
One of the main reasons for the increasing market is due to the increase of
Thai consumers understanding more of the true taste of the original German beer and
as well other international beers that are drunk globally. Note that beer is not a single
taste beverage as prefer by Thai consumers. This result in many bar and restaurant
begins to provide various type of international beer varieties of countries.
As to conclude, the purpose of this research is to construct the marketing
strategy in international business in contemporary topic of the applied marketing for
conducting marketing strategy for Super-Premium draft beer segment in Thailand.
This study is focusing in ‘on premise’ alcoholic beverage consumption where the
selling of alcoholic beverages for consumption at the site of the sale, generally in
pubs, bars, cafes or restaurants. Note that, not only Super-premium and Premium beer
but also Whiskey and Cocktail categories to cover the market competition which they
aim to compete with.
1.2 Research objectives
The objectives of this study are to analyze the target customers in the
segment of Super-Premium draft beer. This is to find out what are the customers
attitudes toward brand and to define the purchasing decision factors that influence
this segment during their alcoholic beverages consumption process. The research
objectives can be defined as follow;
1. To study and overview about draft beer industry in Bangkok and its
strategy includes,
- The market value, market growth and market trend
- The current situation, competition and its strategy
3
2. To understand perception and define influencing factors in choosing
beverage in terms of,
- The most important purchasing factor in choosing beverage
- Key influence factors based on 4Ps
- Value added of the key brands
- Affect of country of origin
- Alternative products
- Price to value perception
- How attitudes toward Super-Premium draft beer were created
3. To develop marketing strategy for Super-Premium draft beer
concentrating on,
- Segment Target Positioning
- Advertising
- Branding
- Market strategy supported by research
4
CHAPTER 2
LITERATURE REVIEW
Ken’s Research.
“Thailand Alcoholic Beverages Market Outlook to 2018 - Changing
Consumer Preferences towards Spirits to Impel Growth”. (2014)
An analysis of the alcoholic beverages properties in Thailand including market
by revenue along with the market segmentation, by different types of alcoholic
beverages such as spirits, beer, whiskey, wine and others, by on-trade and off-trade
channels, by regional consumption. The report involves a description on the current
developments and trends in the market, competitive scenario and growth drivers,
market share of key players in the alcoholic beverages market.
Issaraamorn.
“Thailand Beer Industry 2010”. (2011)
The analysis of Thailand’s economic and supports the overview analysis on the
consumer behavior and competitors as well as regulation of the industry. In addition,
the analysis presents main players in Thailand’s market such as Asahi, Federbrau, Leo,
Singha, Chang, and Archa. The study shows the market share, identification of beer
classes, marketing campaigns, operation processes, distribution channels, expertise in
new product launching of Thailand beer industry.
Sinee Sankrusme, Ramkhamhaeng University.
“A Study of the Beer Market Leader, Challengers and Niche Strategies”.
(2008)
The study delivers the defense strategies of market leader, challengers and
niche beer producers in Thailand before liquor liberalization in 2000.
5
ASTV Manager Online.
"Increasing demand for international beer brand in Thailand”. (2008).
The online article presents the opportunity of increasing demand for the
international beer brand in Thailand. The article provides strategy of each main player
to approaching Thailand’s market.
TRIS Rating.
“Industry Research – Alcoholic Beverages Producer”. (2013)
The alcoholic beverages market in Thailand contains two main products
including spirits and beers. Consumption rate of alcoholic beverages has fallen in the
last few years. Two main factors drive demand are population growth and growth in
population income. The growth in consumption has been stuck by some negative
factors such as more strict regulations, political uncertainty, higher excise tax rates,
new restrictions, health concerns, and many campaigns against drinking by the
government.
Roberto Farai, Miami Ad School, Account Planning Bootcamp.
"Hoegaarden Beer- Product Launch." (2010)
The article presents the conclusion of Hoegaarden’s achievement. The article
had delivered the analysis of the brands uniqueness in terms of product and strategy,
its communication strategy and target market. In addition, article as well provides key
driver of the consumers purchase behavior and researches for consumer insight. This
reaches to the summary of how the brand became one of the most famous global
brands within the beer beverage market.
Sinee Sankrusme, Ramkhamhaeng University.
“Marketing Strategy Competition among Beer Companies before Liquor
Liberalization.” (2011)
The report delivers information of Thailand’s beer industry. The source is
including information of domestic and imported beers. The domestic beers market had
been concluded that the major leading companies in Thailand are Thai Asia Pacific
Brewery Company, Boon Rawd Brewery Company, Calrsberg Brewery, Thai Amarait
6
Brewery Company and Thai Beer Company. As for the imported beer market, the
source had presented analysis on TIS Worldwide Marketing Company and C.V.S
Syndicate Company. The study purposes to analyze the marketing strategy used by the
beer companies before the liquor liberalization in year 2000.
Sinee Sankrusme, Ramkhamhaeng University.
“Marketing Strategy Analysis of Boonrawd Brewery Company.” (2013)
Boon Rawd Brewery is a beer company based in Thailand that has an
excellence image, a well-managed company as well as a good employer with a strong
social responsibility. Singha beer is the most famous company’s products. A case
study analysis was conducted together with qualitative research methods to study the
company’s marketing strategy. The report analyzed Boon Rawd Brewery’s marketing
strategy before the liberalization of Thailand’s liquor market in 2000. The source
offers data of beer industry of Thailand. The data includes imported and domestic
beers insight.
Sinee Sankrusme, Ramkhamhaeng University.
“Marketing Strategy Analysis of Thai Asia Pacific Brewery Company.”
(2013)
The analysis of a case study about strategies of Thai Asia Pacific Brewery
Company. The study aims to analyze the marketing objective of the company,
marketing mix and marketing strategy at company level before liquor liberalization of
Thailand’s liquor market in 2000.
Kang Wan Chern.
“Thai Beverage changes distribution strategy.” (2009)
The largest whiskey maker in Thailand, Thai Beverage has uncovered two new
product lines of its flagship brand Beer Chang in order to compete with Boonrawd
Brewery’s brand Singha beer in its home market. The new product lines are Beer
Chang Draught, Beer Chang Light and a new Beer Chang Classic with alcohol content
of 4.2% to 6.4% are designed to attractive to dissimilar tastes.
7
2.1 Finding summary
In the present days, growth of Super-Premium draft beer segment is growing in
double digits and the major players in Thailand are Hoegarden, Stella Artois, Leffe
and Bodington. The main target of their consumers is the working adult who has
income range between B+ to A.
The cost for super-premium beer dealer is approximately 200 Baht per liter
while the premium beer charges 3 times cheaper. Therefore, in order to maintain high
level of sophistications, Super-Premium brands need to set high criteria for its channel
such as the minimum order, image, location, etc. This includes providing credit term
of payment as no credit is given at the current.
All criterions are negotiable towards the brands’ side. However the brands are
not performing very well in term of their strategy with weakness on threat, channel
and developing customers enthusiastic.
8
CHAPTER 3
RESEARCH METHODOLOGY
Exploratory and descriptive research is used to gather relevant data that relies to
the study objectives.
3.1 Framework
Situation analysis through observation of SWOT analysis of the premium-draft
beer market as shown in Figure 3.1 together with the Marketing Mix Theory had been
applied as framework for the study in order to analysis and develops marketing
strategy for super-premium draft beer segment in Thailand.
Through situation analysis, the research focuses on all 4 aspects of threats,
weaknesses, opportunities, and strengths that lead to the evaluation of alternatives and
analysis of best possible recommendations. In addition, the study as well provides
finding on influencing factors affecting the customers purchasing decision.
Figure 3.1: SWOT Analysis model
All 4 aspects of the Marketing Mix Theory had been applied to the study. As
shown in Figure 3.2 below, the aspects could support well the recommendation of the
study on preferable taste of super-premium draft beer, price premium signaling, prefer
modern high-end atmosphere, most appealing promotion to attract the segment, and as
9
well suggestions on the segment trends as predicted in regards to the 4 segment of the
marketing mix theory.
Figure 3.2: Marketing Mix
The finding of the framework will be used to provide points in developing a
successful marketing strategy for long-term sustainability of the super-premium draft
beer segment in Thailand.
3.2 Exploratory research
3.2.1) Secondary research
Data are collected by various websites and sources in order to study the
overview of the market specifying in current market situation, industry research,
competitors and its strategy. In addition, the research as well provides the important
overview figure for draft beer market in term of market values, market leader, market
growth and market trend. This finding is later used as guide in developing the
questions of the qualitative research.
3.2.2) Primary research
Data are collected based on face-to-face interview to gain consumer insights.
The obtained data is analyzed and used to develop key question and guideline for in-
depth interview script. The session took place at the respondent convenience location.
10
The respondents and objectives are collected in 3 segment as Beer
expertise/bar owner, Beer expertise/distributor, and Beer drinkers.
3.3 Descriptive research
After researcher gained data from the primary sources, descriptive research is
constructed. The purpose of the research is to analyze the qualitative data and to
interpret result. Qualitative research provides in-depth understanding of consumer
behavior and perception toward Super-Premium draft beer segment. The method was
conducted by using script questions in interviewing the participants. The 4 objective of
the research are listed below,
• To study and overview about draft beer industry in Bangkok and its strategy.
• To understand perception and define influences
• To develop marketing strategy for Super-Premium draft beer
3.4 Sampling procedure
The respondents for each in-depth interview have been conducted in Bangkok
area at the location most convenient for the participant. The face-to-face interview
duration in the range of 10 – 15 minutes in order to yield full participation and
generate best respond for the research.. Some interviewers were arranged for an
interview at the beer place to support more discussion exploration of the respondent
lifestyle within the atmosphere of preference.
3.4.1) Selection
Research was conducted within the Bangkok area. The participants must
be a Super-Premium draft beer drinker, screened at the beginning stage of the
interview.
3.4.2) Respondent selection criteria
15 participants were selected in reference to the Theoretical saturation
method.
11
3.4.3) Survey acquisition & recruiting plan
The participants are interviewed with semi-structured script questions as
shown in Appendix A Note that all respondents are a Super-Premium draft beer
drinker.
Figure 3.3: Sampling procedure
12
CHAPTER 4
DATA ANALYSIS AND RESULTS
4.1 Choice of alcoholic beverages
It has been a long time since alcoholic beverage on premise consumption in
Thai market separates in to 3 main groups included beer, whiskey and cocktails. In
present days beer in Thai market is classified into 4 categories: super-premium
premium, standard and economy. In this study the analyses are based on the potential
super-premium draft beer’s competitors including premium beer, whiskey and
cocktails. The brands that represent to each category defined as follow.
Table 4.1: Choice of Alcoholic Beverages
4.1.1) Super-premium draft beer
Hoegaarden and Stella Artois as number one and two leaders in super-premium
draft beer category imported by Brewberry company who owns well-known restaurant
chain name HOBs (House of Beers), the role-model of ‘pub and restaurant’ trends in
Thailand where provide a great beer, good food and chilling atmosphere.
Respondents’ percept characteristics of this segment as socialize young success
people who enjoy chilling and relaxing moment to get connecting with their friends.
For the perception towards brand defined in Table 4.2
Categories Owners BrandsHoegaardenStella Artois
Asia-pacific Brewery Heineken
AsahiCarlsbergSingha
Whiskey Diageo Johnnie Walker
Super-premium draft beer Brewberry
Premium beerBoonrawd Brewery
13
Table 4.2: Consumer’s perception: Super-premium brands
4.1.2) Premium beer
Heineken, Asahi, Carlsberg and Singha as consumers’ top of mind brand in
premium beer category, international brand locally imported and producing by Asia-
pacific brewery and Boonrawd brewery. This 2 big player aim to aggressively control
the distribution channel by distributing through the restaurant, hotel, pub of 120,000-
130,000 (Brandage, 2006). The perception towards each brand defined in Table 4.3
Table 4.3: Consumer’s perception: Premium brands
Brand Consumers' perceptionSmoothSweet
Easy to drinkFresh
PremiumNewbie
SophisticatedSmooth
Easy to drinkPremium
Hoegaarden
Stella Artois
Brand Consumers' perceptionBitter
OverratedMassEasy
PremiumBad taste
DrylishDrinkableNeutralMassSoft
Relatively lower priceBad tasteNot good
Heineken
Asahi
Singha
Carlsberg
14
4.1.3) Whiskey
Whiskey was embedded Thai drinking culture for a long history. With a wide
variety range of whisky choices in Thai market the study used Johnnie Walker’s black
label brand which the exploratory research defined as same level of premium to super-
premium draft beer segment as a represent of whiskey category to make clear image in
respondents’ mind.
Respondents’ percept characteristics of this people consuming whiskey as old
man in business formal, conservative and strong.
4.1.4) Cocktail
By attractive taste and great appearances, cocktails are one of coming drinking
trends in on premise alcoholic beverage in Thai market. Cocktails such as Singapore
sling, Mojito, Bloody Mary and B52 are easy to drink and convenience.
Respondents’ percept characteristics of this people consuming cocktails as
ladies or gays with chic looks and love to dance and party.
4.2 Beer market segmentation
In 2013 Thailand has consumed 350 million liters of draft beer. Within the
amount, consisted of 100 million liters of Commercial draft beers. This includes both
international and local brands segmented in to 3 segments. The first segment is price at
100-180 Baht per pint and is beverage produced in Thailand. The second segment is
consumed at 10 million liters of Super-premium draft beers and is price at 180-300
Baht per pint (Noted that the second segment is only imported from abroad). The last
segment is economy beer that is cheaper than 100 Baht per pint. The introduction of
Super-premium draft beer caused Thailand’s former Premium segment of draft beer
consumer to split into two distinguished segments as follow; Super-premium and
Premium beer. The market size of Super-premium segment tends to increase by the
number of drinkers and premium bar in Thailand.
15
4.3 Findings
4.3.1) Exploratory research and key findings
4.3.1.1) Beer expertise/bar owners: Cobalt and Londoner
Findings from pub and restaurant owners are that they think that Super-
premium draft beer can target to both male and female with middle to high level of
income who wants to drink mainly for a taste and atmosphere, university student to
working adult age. The factors that involve with consumers decision-making process
are taste, price and promotion. They concerned that country origin has impact in small
group of target consumer. They carefully selected tabs of draft beer by taste,
popularity and mentioned the country of origin on their menus. They found it very
interesting to have super-premium beer tabs in their restaurant because they can see
the higher level of customer comes and the overall margin is higher. However, there is
more complicated in operation according to the minimum order, payment, quality
control and the brand itself did not do much on advertising and promotion. Their
suggestion to promote this beer is to make sense of premiumneess to the image of the
brand and its positioning should be ‘Chill out and Connect’. The selling price range
should be approximately 180-300 Baht per pint.
4.3.1.2) Beer expertise/distributor: Sales Manager – Brewery Company
The cost for Super-premium draft beers is more than double for average cost of
Commercial beers. From distributor’s perspective, Super-premium draft beer’s
consumers are more sophisticated and less price sensitive. Generally the product
placements are depending on type of restaurant that capture particular segment of
consumers. Taste is the most important factor to control, company is its own staffs to
install and replace every keg to ensure the quality of beer, the combination of oxygen
and carbon dioxide those are effect to the taste of beer. The target of super-premium
beer is to compete and gains market share from premium beer and whiskey categories.
4.3.1.3) Beer drinkers: Group of MNC office workers
Findings from consumers are that when asking about their favorite place to
drink beer, most of them said pub and restaurant because it is chill and not too loud so
they can drink and chat with their friends. They normally visit pub and restaurant once
16
a month up to every week. When they consider consuming super-premium draft beer,
Hoegaarden and Stella Artois run to the top of their mind because they are easy to
drink when comparing with other beers and the most important factor is taste. And
consider consuming premium draft beer; Heineken, Asahi, Carlsberg and Singha run
to the top of their mind because they are available everywhere. However their
perceptions are that Super-premium draft beers are more delicious and complicated
and consuming Commercial draft beers are less healthy. In order to buy a pint of beer,
they will look overall reputation such as brand, country of origin, reviews and
promotion. All of them will not re-purchase it if it does not suit to their taste. The
lowest price per pint for the super-premium draft beer should not lower than 150 Baht
and the highest price that they can afford is 300 Baht. Furthermore place is very
important decision factor because they always stay for a long period of time having
drinks and chilling with friends.
4.3.2) Qualitative analysis and key findings
Data analysis was collected the data from questionnaire survey and it was
analyzed by using Statistic Package for Social Sciences (SPSS) program. As the result,
an online questionnaire survey was received from 50 respondents (n=50) who
concerned on weight and shape consciousness after drinking beer for a prolonged
time. The key findings and the data interpretation was analyzed as follow.
4.3.2.1) Consumption rate
From the research, the consumption rate of super-premium draft beer were
divided in to 2 parts; 1.Number of the visit per month 2.Number of pint ordered since
there are only 2 sizes of Super-premium draft beer available in the market (0.5 Pint
and 1 Pint). The research shown consumption rate in table as below,
Table 4.4: Consumption rate: Number of visit per month
Number of visit (Monthly) Number of respondent0 - 4 55 - 8 8
9 - 12 2
17
Table 4.5: Consumption rate: Number of pint ordered per visit
4.3.2.2) Situation
The mutual situation of the respondents is that they usually go for chilling and
chatting with their friends. Whenever they want to relax and dine, they will consider
the place that serves super-premium draft beer to enhance their quality time.
4.3.2.3) Purchasing factor
Taste is the main factor to purchase followed by price, reputation of brand,
place to drink and recommendation by friends. Respondents can detect the higher
complicate and smoother taste of super-premium draft beer to be as taste signal of
premiumness.
Table 4.6: Purchasing factors
4.3.2.4) Marketing mix
4.3.2.4.1) Product
Uniqueness of brand and sophisticated taste together with premium
quality and atmosphere.
Number of pint ordered (Per Visit) Number of respondent0.5 - 2 52.5 - 4 94.5 - 6 1
Purchasing Factor Number of respondentTaste 12Price 7Brand 7Place 6Friend 5
18
4.3.2.4.2) Price
Even though the super-premium draft beer consumers are fewer prices
sensitive as long as the taste of beer matches their preferences but there is a
range should not be exceed. 350 Baht per pint is the maximum price that
consumer thinks too expensive to buy no matter how good it taste and 100
Baht per pint is the minimum price that consumer starts doubting the quality.
Table 4.7: Price Range
4.3.2.4.3) Place
From 9 out of 15, the First place that came up to the respondents mind
to have super-premium draft beer is pub and restaurant. The term pub and
restaurant is mainly serve various type of drinks but also focus on the good
quality of food and atmosphere.
Table 4.8: Place
4.3.2.4.4) Promotion
The most attractive promotion for Super-premium draft beer is happy
hour or buy 1 get 1 in some period of time. The bar usually promote it to gain
more customer in evening or weekdays. But for most of beer drinkers, it’s time
to drink more beers.
Too expensive Expensive but consider buying Quite cheap which good value to buy Too cheap / doubting the quality350 300 170 100
Preferred Place Number of respondentPub & Restaurant 9
Bar 5Beer House 4Restaurant 3
19
Table 4.9: Promotion
Promotion Number of respondentBuy 1 get 1 (Happy Hour) 11
Ladies Night 3Buy 3 Pint free 1 Food 2
Lucky Draw 1
20
CHAPTER 5
CONCLUSIONS AND RECOMMEND STRATEGIES
With total 350 million liters of draft beer consumed (year 2013) and only 10
million liters belongs to super-premium draft beer consumption. However, the trend in
drinking Super-premium draft beer is increasing and in addition Thai consumers are
familiar to more complicated taste and more discerning on their choice of drinking
from time to time. The SWOT analysis of Super-premium draft beer shown its
strength and opportunity assures that there is a market potential for this segment of
beer in Thailand. Regarding to the research’s results, most of the respondents prefer
super-premium draft beer because of taste and the atmosphere of drinking moments.
Super-premium draft beer brand needs to have proper strategy to market which are
recommended in followings,
Figure 5.1: SWOT Analysis
5.1 Value proposition
The value proposition of the Super-premium draft beer segment is offering
consumers highly sophisticated and uniqueness of taste at reasonable prices ensuring
the image of premiumness and original.
This value proposition should be communicated through brand advertisements
that emphasize how the brand is able to provide satisfaction to the customers.
STRENGTHS WEAKNESSES- Sophisticated of taste - High price- Sense of premiumness - Limited distribution channel
OPPORTUNITIES THREATS- Increasing trend in drinking - RegulationSuper-premium draft beer - Local competitors- Thai consumer - Other alcoholic beveragewith high purchasing powerthat concerns taste
21
5.2 Segment Target Positioning
5.2.1) Segment
Super-premium draft beer segment in Thailand will be focusing on the first
jobber to adult managerial class who appreciate good quality and sophisticated beer.
The first jobber class will range from the fresh graduates who consume an expensive
Super-premium draft beer in only special occasional, to middle level office worker
that personally appreciative of good quality of imported beer. The adult managerial
class will be those in senior level or managers who aware of their image health and a
taste of beer.
The most important group of potential customers are those in the metropolitan
areas who often spend hours after work to socialize and chilling with friends. These
are potential customers who want to have an enjoyable time while drinking a good
quality beer.
5.2.2) Target
Regarding to the research’s result, the Super-premium draft beer brands should
target to adult working class those who are at the age between 25-40 years old and live
in Bangkok. Although the Super-premium draft beer should be an element to
connecting and creating good atmosphere.
Super-premium draft beer brand will be mainly focused on providing the good
quality and good taste product available to the target customer. Brands must ensure
that their products' prices take into consideration peoples' budgets and reach people
who have potential to appreciate the product know that it worth to spend their money
on, including where to find it. The marketing will convey the sense of quality in every
picture, every promotion, and every publication.
5.2.3) Positioning
The brand should position itself as the original taste for beer lovers and best
choice of beverages to choose when hanging out with good friends. Regarding to the
research’s result, the Super-premium draft beer brands should be communicated in
theme ‘Taste’, ‘Connecting’ and ‘Chill out’. In addition brand image which is used
22
globally can be used as well in Thailand and the brand could remain the same mood
and tone.
5.3 Marketing mix
5.3.1) Product strategy
The Super-premium draft beer product marketing will emphasize on the image
of the products, including good quality and taste of the original-quality brews. In
parallel, continue looking for opportunities to recruit new drinkers.
The Super-premium draft beer brands are percept as ‘top-of-the-line’ brand in
the beer beverages. In Thai market, the beers have to be imported from specifying
countries that is reputable in producing beer. This helps customers to create perception
that will ensure the beer standardization that will result in further enhancement of the
international image.
The brand equity will fulfill the mark up in price due to the higher cost
compare to the local produced premium draft beer brands.
5.3.2) Price strategy
In order to match consumer’s perception of Super-premium draft beer referring
to price sensitivity method, the price perception of consumers is in range 100-350
Baht per pint. As to promote existing consumers and to attract new consumers. The
recommended price for Super-premium draft beer per pint should be set at range 200-
300 THB. In addition, the product can be discounted on controlled specific rate
towards distribution channel or pub and restaurant depends on their promotion so that
the pub and restaurant can launch frequent promotion to attract consumers to try the
product.
5.3.3) Distribution strategy
Due to the limitation of draft beer that only be able to sell on premise trade.
Recommendation to the brand is to mainly sell at pub and restaurant, restaurant and
bar to build the brand and create brand awareness. Once the brand awareness is higher
and the rate of consumption reaches the target, the brand can create its own beer place
such as beer garden or beer festival.
23
5.3.4) Promotion strategy
The Super-premium draft beer brand could use its physical attribute such as its
unique shape of glass, taste and smell of the product and also its emotional attribute
such as creating status, price, distribution and their advertising through both above and
below the line. Thus, the target customers in the Super-premium draft beer segment
are less price sensitive, price discount will not be affected to consumers the
recommendations for short-term promotion are to create ‘Happy hours’ in some period
of time selling 1 pint get free 1 pint or co-promotion with food because normally
consumers always order beer with some food, with this promotion consumer will
potentially changes his decision to order promotional beer. For above the line, the
brand should advertise in lifestyle magazine, and sell this product during the main
concerts of the year. Besides its intangible attribute, the brand would like to creating
physical attributes such as ensure that the product is available in many places, online
platform and dispense limited edition glass for brand loyalty.
5.3.5) Advertising campaign
In order to make Super-premium Draft beer more attractive, advertising
campaigns will be promote on the ‘Chilling and Connect’ of the good quality of beer,
the best taste, better chilling atmosphere created by great beer. Consumers enjoy the
moments by having fun chilling, talking and connecting premium taste with their
friends.
5.4 Further recommendation
Regarding to the research, the consumers will give the highest important to
good taste as well as brand and place to drink respectively. Therefore, the company
should do further taste test of the specific brand prior to import to Thai market that
will show which taste that Thai consumers favor to.
One core element of Super-premium draft beer marketing strategy will be the
differentiation from other categories. In terms of promotion, brand should do a
differentiated strategic ally with its channel such as co-promotion with pub and
24
restaurant. In price, Super-premium draft beer offers relatively higher but reasonable
prices in comparison to the competition.
25
REFERENCES
Kotler P. and Keller K. Marketing Management: 14th Edition. Pearson
International Edition. Pearson Education Ltd.
Positioning Magazine (2006). Light beer: New market segment for Thai beer:
http://www.positioningmag.com/?q=content/light-beerหรูแต่ถกู-เซ็กเมนต์ใหม่เบียร์ไทย
Roberto Faria (2010). Strategic Communications Planner & Brand Specialist at
Three Way Street: http://www.slideshare.net/BetoFaria/hoegaarden-beer-product-
launch
Manager Online News (2000). When Thai beer market consumption does not
stop only for Thai beer: http://info.gotomanager.com/news/printnews.aspx?id=7251
Scandasia Hopsession (2013). Shaking up Thailand’s beer scene:
http://scandasia.com/hopsession-shaking-up-thailands-beer-scene/
KDSdesign (2011). Stella Artois Campaign:
http://www.slideshare.net/KDSdesign/stella-campaign
26
APPENDICES
27
APPENDIX A
SCRIPT QUESTIONS FOR 15 MINUTES INTERVIEW
“a marketing strategy for Super-premium draft beer segment”
Self-screening Question
1. Do you regularly drink Super-premium draft beer?
1) Yes
2) No (End of questionnaire)
Place of interview
Part 1: Respondent profile and lifestyle
1. Specify respondent
1.1 Gender
1.2 Age
1.3 Education level
1.4 Occupation
1.5 Monthly income
2. Who do you often go for beer consumption with?
3. What are the situations that you consume draft beer?
Part 2: Respondent visitation preference
4. Where do you often go for draft beer consumption?
5. How often do you visit for draft beer consumption?
6. How many pint do you consume on average per visit?
Part 3: Factors in selecting beverage
7. What is the most important purchasing factor in choosing beverage?
8. What is you most favorite place to have draft beer? Please specify your
reason.
9. What is the most recent premium-draft beer promotion that attracted
you?
28
10. At which price point you start to feel that the premium-draft beer is too
expensive?
11. At which price point you find it somewhat expensive but still consider
to buy?
12. At which price point you find premium-draft beer cheap but still
consider to buy?
13. At which price point you find premium-draft beer too cheap that you
would doubt its quality?
Part 4: Super-premium draft beer insight
14. What are the attributes you like about super-premium draft beer?
15. How different are the attributes from other alcoholic beverage?
16. Is country of origin effect your purchasing decision?
17. What is your perception towards super-premium draft beer?
18. What is your attitude towards super-premium draft beer?
19. What is your perception toward the following brands?
19.1 Hoegaarden
19.2 Stella Artois
19.3 Heineken
19.4 Asahi
19.5 Carlsberg
19.6 Singha
20. How do you percept people who consume super-premium draft beer?
21. How do you percept people who consume whiskey?
22. How do you percept people who consume cocktail?
Part 5: Competitors analysis
23. Do you drink other type of alcoholic beverage?
1) Yes, Continue question 25.
2) No, Skip to question 26.
24. What is the main criterion for selecting decision among other alcoholic
beverages?
25. Do you have other favorite alcoholic beverage?
29
BIOGRAPHY
Name Mr. Natthaphoj Tansakul
Date of Birth January 15, 1990
Educational Attainment
Bachelor’s Degree in Engineering, Faculty of
Engineering, Chulalongkorn University
Work Position Product Manager
Hilti (Thailand)
