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Signha Beer: Boon Rawd Brewery. Thai Beer Industry With Five Forces And Swot Analysis, Tows Matrix, Perceptual Map, Positioning.

1030 words - 4 pages

PAGE PAGE 6
1. Problem/Key IssueHow can Boon Rawd Brewery maintain its competitiveness in Thailand's alcoholic beverages market as the legal enforcement of total ban regulations on alcoholic drink advertisements become effective?Porter's Five Forces Analysis of Beer Industry in Thailand (as Consolidated Industry)Threat of new entrants - LowEntry barriers (i.e. huge capital investments in breweries) are high resulting in low threat of new entrants.Threat of substitute products - HighOther types of alcoholic beverages such as wine, spirit and liquor represent the substitutes of beer, though not perfectly substitutable.Threat of buyers' growing bargaining power - LowWholesalers and agents are considered as buyers for Boon Rawd Brewery in which they have to follow the predetermined prices.Threat of suppliers' growing bargaining power - LowSuppliers who mainly provide key ingredients for beer (i.e. hops and bottles) tend to be not powerful since they are neither concentrated nor organized and the costs of switching suppliers are not high.Threat of intense segment rivalry - HighBeer market in Thailand contains some strong and aggressive incumbents such as Boon Rawd Brewery, Thai Beverage and Thai Asia Pacific Brewery.Boon Rawd Brewery Co., Ltd. TOWS Matrix

STRENGTHS
In-depth beer industry experience and insight
Well-managed and established distribution channels
Top quality ingredients used to produce Singha beer
Brand image strength associated with "International Thai" identity

WEAKNESSES
High production costs of Singha beer
Singha beer is priced higher than economy beers

OPPORTUNITIES
Taxation according to alcohol degree
Overseas markets
Light beer trend

Offer premium beer (i.e. Kloster) to capture premium segment (S1, S2, O1)
Foreign markets expansion (S1, S3, S4, O2)

Develop light beer (i.e. Singha Light) and price lower than Singha (W2, O1, O3)

THREATS
Total ban regulations on alcoholic drink advertisements
Adverse economic recession
Importation of foreign beers due to FTA agreements
Full-line forcing strategy adopted by Thai Beverage

Utilize color and symbolic forms which are associated with Singha's brand identity to do IMC (S4, T1)
Price war (S1, S2, T1, T2, T3, T4)

Develop fighting brand (i.e. Leo) to compete with economy beers (W1, W2, T4)

Brand Identity and Positioning for Thailand's Beer IndustryThe above figure shows the positions of these "virtual images" on the perceptual map. Note how Heineken and Kloster represent well the Master European Brewer "space", while Carlsberg appears slightly off-center in the Cosmopolitan World Traveler space. Singha appears on the edge of the International Thai space while Leo represents the Heritage Thai dimension. Chang does not seem to be able to be explained by any of the images. As a low-priced brand and the cheapest on the market, sold in bulk with a whisky product via a predominantly rural market, Chang seemed to compete mainly on price. As several focus group participants...

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