Thursday, November 28, 2019
Singha corporation free essay sample
Singha Corporation Co. , Ltd. is a subsidiary of ? Boon Rawd Brewery Co. , Ltd. , the first and ? largest Brewery of Thailand. The company was ? incorporated to oversee the beverage business ? of Boon Rawd Brewery Co. , Ltd. and is responsible? for the operation and marketing of beer, soda ? water, drinking water and various energy drinks ? and beverage producers. At present,? Boon Rawd Brewery is the owner of Ã¢â¬Å"SinghaÃ¢â¬ ,? Ã¢â¬Å"Leo Ã¢â¬ , Ã¢â¬Å"B-ingÃ¢â¬ ,Ã¢â¬Å"PurraÃ¢â¬ ,Ã¢â¬Å"Pun DeeÃ¢â¬ ,and Ã¢â¬Å"MasitaÃ¢â¬ ? trademarks. At present, Singha Corporation Co. , Ltd. operates 3 Breweries and 7 Soda Water and Drinking Water factories located in strategic Regions across Thailand. Moreover, the companys vast distribution network further enhances its ability to serve the customers throughout the kingdom as well as in nearly 50 countries worldwide under full compliance with FDA regulations and approval of each country, including European and North American Countries. Singha Corporation Co. , Ltd. conducts all its businesses under the principals of good corporate governance and in a social responsible manner. We will write a custom essay sample on Singha corporation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As an integral part of Thai Society, Singha Corporation Co. , Ltd. actively participate in local environmental support programs, educational scholarship programs, cultural events, traditional festivals, and sport sponsorship. History Phraya Bhirom Bhakdi was born Boonrawd Sreshthaputra on 13 October 1872 , son of Pra Bhirom Bhakdi (Chom Sresthaputra ). He was educated at home, teachered by his father until the age of 11 , when he was sent to a temple to be further educated by the monks, a custom at the time for Thai boys. He started work quite young, during his teens,as a teacher, and then moved on to become a clerk at A. J. Dickson, a British-owned logging company. He stayed in the logging business for a while, and acted as a car dealer for a bit before starting his own ferry business, ferrying the Bangkokians across the Chao Praya River, between Bangkok and Thonburi. The business was a success at first, until there came too many competitions, and finally the building of bridges across the river. He dabbled in the idea of brewing a Thai-made beer in 1929, and finally sent in a request to the government to build the first Thai brewery in 1930. Meanwhile,Boonrawd toured Germany and Denmark to study the art of making beer. His dream became a reality in 1933, when the first bottle of Thai beer, Singha Beer,rolled off the assembly line at Boonrawd Brewery. Phraya Bhirom Bhakdi helped with many charities in his lifetime. He also become an expert in the art of kite flying in Thailand, and published a book on kite competitions. He acted as fireman on numerous occasions,using his ferries to stop burning buildings with water from the Chao Praya River, and was finally made Luang Bhirom Bhakdi by His Majesty King Rama VI on 20 November B. E. 2454 (1911) , at the age of 39. He became Pra Bhirom Bhakdi on 20 December B. E. 2460 (1917), aged 44, and finally Phraya Bhirom Bhakdi on 1 January B. E. 2467(1924), at the age of 52. descendants to use the surname of Bhirom Bhakdi, instead of Sreshthaputra. A new dynasty was born. Phraya Bhirom Bhakdi was married to Khunying Lamai, and had 3 sons -Vidhya, Prachuab and Chamnong. He died in 1950, at the age of 78. Boon Rawd Brewery Company Development of a there managing orientation, difficult thought this can be in many organizations, is only one side of the coin in improving the marketing effectiveness of an organization. Marketing strategy specifies a target market and a related marketing mix, Marketing strategy requires a definition of the market domain in which the company will compete and statement of how utility and value will be created for customers through product and service offerings. Recognizing customer needs and filling them better than competitors is the core of successful marketing and management strategies. Product Line Strategy Ã¢â¬â External analysis A product line is a group of products that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels, or fall within given price range. Product line managers need to know the sales and profits of each item in their line in order to determine which items to build, maintain, harvest, or divest. They also need to understand each productÃ¢â¬â¢s market profile. The company produced new beers to be in completed amounts for every segment for the purpose of: (1) Selling for competition, (2) Scrambling for market share and insertion into the marketing space, (3) The liquidity in laying of market policy and cooperation with alliance, (4) Having an increased amount of products to serve the demand for Singha Draft beer with a mild taste to attract customers who like the smooth taste. Product Development Strategy After successfully completing the business analysis stage, product planning moves to development and testing (Cravens 1994, p. 373). In 1998, the company received the certificate of universal standard quality or ISO 9002 from S. G. S. (Thailand). In December 1985, the company began to wade into the market by developing a new beer named Ã¢â¬Å"Singha GoldÃ¢â¬ which was a kind of beer that had low alcoholic content of 3. 5%, similar to a light beer. It was thus, a kind of beer though its taste was lighter than that of both SinghaÃ¢â¬â¢s and KlosterÃ¢â¬â¢s. Singha Gold was positioned as a beer for the new generation. In addition to product development strategy, the packaging of Super Leo beer during April 2000 was modified due to the fact that sales volume did not meet with the target because of customersÃ¢â¬â¢ confusion related to Ã¢â¬Å"Leo. Ã¢â¬ A new label was put in place and the word Ã¢â¬Å"SuperÃ¢â¬ was emphasized (with bigger letters) while the word Ã¢â¬Å"LeoÃ¢â¬ (with smaller letters) was used for advertising which included marketing activities of Super Leo being separated decisively from Leo. Brand strategy and re-positioning options Several strategies are available to Boon Rawd to differentiate its brands from those of competitors, and compete effectively. ? The options for Boon Rawd are to create a master-European-brewer brand themselves and compete in the market place, directly against the global brands and Kloster. Kloster had demonstrated that even though it is a local brand, it could create an image as an international brand. However, there are some hidden traps with this approach. Several focus group participants mentioned that they thought Kloster lost some credibility by being a local brand dressed up in international clothing (the issue of country of origin). Furthermore, this Master European Brewer image space, though obviously a valuable one (whether it will grow faster or slower in the immediate future is dependent on the rate of Thailands recovery), is already crowded. The options for Boon Rawd are to create a master-European-brewer brand themselves and compete in the market place, directly against the global brands and Kloster. Kloster had demonstrated that even though it is a local brand, it could create an image as an international brand. However, there are some hidden traps with this approach. Several focus group participants mentioned that they thought Kloster lost some credibility by being a local brand dressed up in international clothing (the issue of country of origin). Furthermore, this Master European Brewer image space, though obviously a valuable one (whether it will grow faster or slower in the immediate future is dependent on the rate of Thailands recovery), is already crowded. Another strategy to regain some of the market share that Singha had lost due to the entry of the global brands and low-end products, was to re-position the Singha product itself. It was sensed that Singha possessed a great deal of customer loyalty and one strategy would be to develop Singha to be even more Heart-based, and to move further into the international Thai space. This could be accomplished by an integrated marketing communications campaign. A further option would be to develop a Singha export brand and prove that Singha could be accepted worldwide. This would also instill pride in Thai consumers in that they were consuming a Thai product that was recognized internationally, targeting in a tangential but strategic way, the monopoly global brands have on internationalism. For reasons of confidentiality, further information is not available, but the study has been of immense use to strategic thinking. Singha Corporation strategy formulation Singha Corporation SWOT Strengths They are the first Thai beer Companies have a policy to expand market worldwide Companies can respond all the needs of all customers. Companies have many proucts that customers need. Company Has distribution channels in multiple way and nationwide. Weakness Competition within the organization. The large size of the organization, contributing to the management sometimes not possible. Companies need to keep up with demand and changing consumer. Is sometimes necessary to take the analysis to get to those needs. Opportunities Singha try to go global and make them to the top maket. Company is in need of the labor market. They want to work for them. Threats There are many competitors in beer market Singha can not change the price but others competitors can change to the lower prices. Have to import wheat(materials for produce beer) Singha Corporation PEST Political 1. Government comes to control the limit time of selling alcohol 2. For alcohol market, There are a consession 3. An Election in Thailand are under control Economics 1. The companies shutting down, causing more unemployment 2. Loans from financial institutions more difficult. 3. Employment levels and salaries greatly reduced because the growth rate of the economy is not good enough. 4. Currency Change Social 1. Campaign about not drinking alcohol becomes more important in Thai social. 2. Most of Thai people still respect to five commandments of Buddhists. Technology 1. Production process, taste, appearance is a factor in choosing to buy products. 2. Technological development in production in 3-5 years to adapt in a better way. 3. Products can advertise in social network instead TV commercial. ConClusion The company applies marketing strategy and The companyÃ¢â¬â¢s marketing strategies consisted of product line strategy, product development strategy, block channel strategy, media strategy, trade strategy, and consumer incentive strategy. On the other hand, the company used marketing mix or the 4PÃ¢â¬â¢s strategy as follows: Product Strategy: (1) Every product segment was produced in response to customer demand in various levels of income, (2) With regards to product development strategy; the brewery was improved in 1998 to the point where a certificate of quality, ISO 9002, was obtained. In 1998, plans were underway to improve the quality of the companyÃ¢â¬â¢s products in accordance with universal standards, including the ability to maintain the quality of the taste and the image of Singha beer by stressing the fact that it was a Thai beer that Thai people had preferred to drink for 67 years (in 2000) which gave Singha beer a high degree of brand loyalty, (3) Regarding the companyÃ¢â¬â¢s packaging strategy, modern technology was introduced by the company to make Ã¢â¬Å"Stay on TapÃ¢â¬ products on October 31, 1990. a move that took environmental conservation and social demands into due consideration. It was a marketing idea that took society into account in the sense that benefits would be provided by the firm and returned to the society. Environmental pollution was a matter of concern to the firm; it was necessary, therefore, that quilibrium is reached in the long term between a response to market demand and social welfare. The societal marketing concept would be concentrated on social conditions by upgrading the welfare of the people and improving the way of life in society by participating in the overall conservation of the environment as well. Price strategy: Many new producers entered the market, and many brands emerged, such as Heineken, Carlsberg and Chang beer. Because of the Thai economic crisis of 1997, consumersÃ¢â¬â¢ purchasing power decreased, which prompted them to turn to drinking less expensive beer, such as Chang. New beers were produced, such as Leo, Super Leo and Super Lion, which were cheap in order to respond to low-income consumers and to compete with Chang beer. Promotion strategy: Media strategy, trade strategy, and consumer incentive strategy were used in order to create products of good quality in response to the market. Place (of distribution) strategy: Since market share was achieved, with sales volume in the top rank of the market, block channel strategy was used and new agents were added when three breweries entered the already competitive market. Recommendation: 1) Set up or buy a company to grow wheat in the wheat-growing countries (eg: China) to ensure its supply of raw materials for beer production and raw materials price stability. Thailand was not a wheat-growing country, every beer company have to import wheat materials. In this way, As a result, the company is likely to be limited to international currency exchange rates change(baht devaluation), changes in international transport prices, raw material producing countries to reduce export. 2) Enter new market. Obtain expertise and apply new and best business practices across markets, whilst maintaining and recognising the cultural differences. By learning from best practice sharing ideas from different markets and business cultures, synergies will be brought to the Singha Group, which should benefit staff, customers and shareholders. The brand awareness will increase if it successful in new market. 3) Singha should continue corporate with the sports. Right now they are the sponsor for Chelsea and Manchester united football club, so they should continue sponsoring. In the future Volleyball will become Thai people favorite sport, They should consider to be their sponsor. Singha has come to the right way to promote their brands, They are sponsor for international concert and international football team. This actions will help them grow up Questions: What are the current issues/challenges facing companies? The issues that challenge to face with the company for now is the Law. Thailand law of alcohol company has become very strict. There are so many rules that the company must face with government. For this issues, company has to think about the strategy that make them still sell their beer without breaking any law. When Thailand law become strict, Its hard for Boonrawd Brewery to distribute their products. For example, They can only advertise their products along the magazine not allow to use them in Commercial on Televisions. If they want They must use the name of Boonrawd Brewery or Singha corporation not Singha Beer. So for Boon Rawd, They try to advertise their products by they corporate their brad with Chelsea Football Club and Manchester United instead. For this, its works very well. They can go global by sponsor the football team. What are the dangers/risks associated with this approach? The risk of doing this approach will be about the competitors that they already see what singha has done, and they want to do the same. They want to go global too, thatÃ¢â¬â¢s the danger for Singha because if your competitors can do better than you, you must do something that better than them. You should think about the better plan or strategy to make your brand go further and still be number one in the beer market.