Essay, Pages 15 (3560 words)
Tiger beer is a household name in Singapore and it was a preferred drink for any occasions that cab variety from celebrations to celebrations. The group chose to choose Tiger Beer as their marketing efforts and promos were exceptional, for that reason the group decided to learn what makes Tiger beer marketing efforts and promotions so successful. Launched in 1932, Tiger beer (Tiger) is Asia Pacific Brewery’s flagship brand name. Throughout the years, Tiger Beer has actually seen beer drinkers internationally acclaim Tiger as one of the finest in the world.
It has regularly come out on top in world tastings, winning gold medals for its crisp, smooth, refreshing, healthy and tasty taste. Tiger Beer’s distinct taste comes from its quality ingredients and precise brewing process that involves over 200 quality checks. This European-style lager is brewed utilizing only the finest natural ingredients like malted barley from Australia and Europe and bitter hops from Germany. The former includes body and flavor to the beer which numerous beer fans enjoy; while the latter provides the brew its characteristic bitter passion.
What makes Tiger genuinely stick out is the unique strain of yeast used in this bottom-fermented beer. This special pressure of yeast is specifically cultured in Holland and it works slowly in the golden liquid at low temperature levels rather of fizzling away on the surface area of the 5% alcoholic brew. From brewing to the method it is served, Tiger is crafted to please the thirst for the most refreshing and flavorful beer.
An acclaimed beer, Tiger has actually likewise built up over 40 awards, awards and distinctions. Some of the more significant awards include a Gold medal at the Brewing Market.
International Awards in 1998, the equivalent of “the Oscar Awards for the brewing industry”; and a Gold medal in the highly contested European-Style Pilsner category at the World Beer Cup 2004, which has been dubbed “the Olympics of Beer Competitions” by the beer industry. It also clinched a Gold Medal for the Australasian, Latin American or Tropical-Style Light Lager category at the New Zealand International Beer Awards 2008. Each year from 2004 to 2006, Tiger was named a UK Cool Brand Leader. The recognition reaffirmed Tiger’s popularity and was given only to the coolest brands in the UK.
2. 0 RESEARCH APPROACH.
The research approach was done by using a survey with questions targeting at the general public views. This approach was chosen because it was best suited for gathering descriptive information and those are the information that the group needs to analyze. The survey was aimed at getting consumer’s preferences, tastes and buying behavior. The method used to contact consumers for their views would be by using online surveys and personal survey. It is because online surveys would be to target consumers who are tech-savvy and they would be likely to provide truthful views about Tiger Beer products.
The targeted age group for online survey would be between 18 to 40 years old. As for the personal contact methods, current Tiger Beer promoters would be roped in to help in conducting the surveys. They would be the best candidates to conduct the surveys as they are the “ambassadors” on the ground and customers would likely be truthful to them as the customers would be comfortable with the promoters as compared to representatives from the company or even from a third party survey company as the customers would feel uncomfortable talking to strangers.
Places for the personal survey to be conducted can ranged from discos to pubs to coffee shops so as to cover the various age groups and different types of professions which can be found at different places. The survey sample, using a mixture of stratified random sample and quota sample, will be focused mainly on demographics of the sample group. This group will be categorized further to gather more in depth information from this sample group. They will be categorized by their age, profession, income and their lifestyle. The survey group comprised of 50 people of both genders and from all walks of life.
The age range is from 18 to above 30 years old. These people are randomly picked as the online surveys are opened to everyone and the personal survey will be consumers of Tiger Beer at various places. 3. 0 CUSTOMERS The primary customer segment would be the consumers aged 18 to 35 years as they are the future and present consumers that would affect the future marketing plans. This age group would form the majority because these are the people who are starting to earn their keep and in turn, would spend on alcohol beverages.
These are also the people who are in their prime and would party along with their peers, this age group would mostly be found in discos or pubs. For consumers aged 35 years old and above, their lifestyle would differ much from their younger peers. This group of consumers would likely be found in places where they could chill out and chat. These places include outdoor bars and coffee shops. As more people are drinking beer, it is now socially acceptable to drink at a relatively young age and beer is now drank at more celebratory occasions.
The primary target segment would like to party after work or having a drink after work with friends. They are likely to spend on beer as they are starting to have an income after college. Some will also bring potential clients to have a drink to discuss about business as they feel that it might be a good way to break the ice between themselves and the clients. Research has also shown that more young women are drinking as well and these all add up to the current social acceptance towards drinking. Beer is often drank with joyous occasions and on social gatherings.
During social events where people tend to clam up in the initial proceedings, people do feel much more relaxed after a few drinks. This acts a good ice breaker and this can lead to business deals being done and can even lead to a start of a relationship. In Singapore, men tend to have first drink when they got called up for National Service. This is because this is the time they had reached the legal age for drinking and of course relaxing over a beer or two after tiring week training. There are also the regular drinkers who may go over to a favourite pub to wind down after a day of hard work.
Loyal beer lovers will have sworn by their favourite brand of beer, insisting that their brand of beer is always taste better than others. This has led to certain coffee shops or pubs selling only a particular brand of beer, therefore limiting consumer’s choices. People drink beer for different reasons. Recent research had shown more and more people are binge drinking with more than 5 glasses for male and 3 glasses for female. This is particular dangerous especially they might get into accidents when highly intoxicated.
4. 0 MARKETING MIX
4. 1 PRODUCT.
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or a what. A product can also be in a form of service. It can come in the form of activities, benefits or satisfactions offered for sale that are essentially intangible or and do not result in ownership. Product can sometimes be the experience when buying the product or service will do for the consumer. There are 3 levels to a product. They are namely Core product, Actual product and augmented product. The Core product is not the tangible physical product.
It cannot be touched. That is because the core product is the benefit of the product that makes it valuable to the consumer. The Actual product is the tangible, physical product. Consumers can get some use out of it. The actual product is what the average person would think of under the generic banner of product. The Augmented product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer.
The features of augmented products can be converted in to benefits for individuals. Tiger Beer would be the Actual product group as it is a physical product and the consumer gets to consume it. Consumers who go for Tiger beer because they believe in the product’s quality and also trust the brand’s name as it proclaim itself as the leading brand in Singapore. Tiger beer redesigns its logo and launched it on 30 October 2007 in order to rejuvenate the Tiger beer brand to a contemporary audience and entice more Singaporeans to enjoy the beer while at the same time holding to the existing consumers.
But the changes made to the logo were subtle so as to retain the brand’s sense of familiarity. Tiger beer also packages its beer into different quantity so as to meet everybody’s needs. There are currently 3 types of packaging on offer and these packaging meets the needs of the current consumer’s needs. Under Asia Pacific Brewery, there are many other beer brands under its name. Under APB’s portfolio, there are more than 40 beer brands and beer variants, including Heineken, Tiger, Anchor and ABC Stout.
Tiger beer is one of the most recognizable brands around the world, due to its awards, accolades and distinctions. Therefore due to its reputation, APB recently introduced new flavours of Tiger beer, the Tiger Crystal beer and the Ice Freeze Tiger beer. Tiger Crystal was introduced to the market in 2 December 2010 to capture the modern day drinkers. It is a new refreshing and easy-to-drink beer that will be available in bars and clubs around Singapore, extending the reach of the world acclaimed beer brand to drinkers that have come to demand greater variety.
Tiger Super Cold beer is three times colder than conventionally chilled beers which is made by harnessing new technologies that chills this award winning beer to between-2 Degree Celsius to 2 Degree Celsius. Ice Freeze Tiger beer is being brewed by using a revolutionary draught system known as ‘‘Twin Ice Technology’’. Ice Freeze Tiger allows the melting crystals of ice which delivers the most refreshing serving of beer. Beer can have health benefits when the balanced diet is included in it.
Tiger beer contains niacin, vitamin B1, B2, B3 and b6, folic acid as well minerals such as zinc, copper, magnesium, phosphorus, potassium and calcium. Beer also contains about 93% of water and has no fat in it. It helps to thin a blood; thereby preventing clotting and it can reduce the risk of stroke and heart diseases. Its rigorous brewing process and innovation that has garnered Tiger Beer many international accolades, Tiger Crystal is targeted at the discerning beer drinker and is made with the finest hops from the United State using high quality malted barley and yeast from Europe.
The difference between the original Tiger beer and this new variant lies in its unique brewing technique also known as the ‘Cold Suspension’. The ‘Cold Suspension’ technique filters the brew at a cold temperature of -1°C and in the process, preserving only the desired flavours and rich aromas for Tiger Crystal. This results in a crisp beer with an alcohol level of 4. 3% by volume, but at the same time it retains the same robust flavour of a full-bodied brew, providing a smooth and velvety palate, followed by a clean aftertaste.
Tiger Crystal’s introduction underlines APB’s strategy to constantly enhance their brand offerings and increase choices for the consumer. As the modern-day consumers’ preference changes, APB will be always looking for new variants of beer to introduce to the market to maintain its position as the leading beer brand. The survey shows that most of the consumers preferred Heineken to the rest of the beer brands, including Tiger beer. It was because they felt that Tiger beer is a bit bland and bitter as compared to Heineken’s.
Consumers also had this perception that imported beer is better than those brewed locally such as Tiger beer therefore physiologically they felt that Heineken taste better than Tiger beer. But those voted for Tiger beer said Tiger beer had this distinctive taste that won them over. The beers in this survey are relatively easy to find in most convenience stores and provision shops as well as pubs and clubs. Anchor beer is the only beer which is the least featured in clubs and pubs as it is not as popular as the rest of the beers featured in this survey, and the results of the survey reflect this point.
4. 2 PRICE
Price is the amount charged for a product or service. It is the sum of all values that consumers exchange for the benefits of having or using the product or service. In marketing mix, this is the P that generates revenue. Tiger beer uses a Competition-based pricing. It is because Tiger beer’s biggest competitor, Heineken, is also under APB as well as Anchor, therefore it can set the their pricing according to the popularity of the different beers and reacts accordingly if the sales for a particular brand of beer falls drastically due to initial price set.
It is also a going-rate pricing as the price of Tiger beer varies in different places or neighborhood. Tiger beer main competitor outside APB’s purview would be Carlsberg. Therefore, Tiger beer would price itself just below Carlsberg to entice consumers to choose Tiger beer. But as Carlsberg do have many other flavours, Tiger beer chose to price itself between the variants of Carlsberg. This is to ensure that Tiger beer gets a share of the market segment that Carlsberg is trying to dominate. With many consumers in different segments mean that understanding the purchasing capability of these diversified categories.
To ensure maximum profitability and at the same time allow affordability, prices are carefully calculated to suit the purchasing power of different consumer groups. Tiger beer is therefore using Product-Line pricing for this strategy. Tiger beer also uses Product Bundle pricing strategy. The consumers pay a discounted price when they ordered 3 bottles of different beers or it can also be the same brand of beer. This allows the consumers to choose their preferences and allow them to share the beer too.
By giving a discount on the total costs of the beer, the consumers would feel obliged to order 3 bottles of beer rather than having just 1. This would increase the volume of sales and thus increasing the total revenue. This strategy has been proven to be successful especially in the neighbourhood coffee shops. Tiger beer uses price skimming strategy for its new Tiger Crystal beer. This strategy involves deliberately exceeding the price of Carlsberg’s other premium beers. This strategy can help boost the initial revenue for Tiger Crystal beer that is new, and is perceived as unique in the marketplace.
As Tiger Crystal beer is not common in pubs, clubs or neighbourhood shops, the higher price they command are still able to attract consumers. However, Tiger Crystal beer will need to lower their initial skimming price if the novelty wears off and competition intensifies. Tiger beer practices segmented pricing adjustment strategies to reward its consumers. This means that Tiger beer is selling at two or more prices, where the difference in prices iss not based on difference in cost. Tiger beer sets up a Tiger Beer Football Club to attract soccer fans to join the club.
Tiger beer would organize functions when there is a soccer game between famous football clubs. This type of functions is only open to members of the Tiger beer football club and there would be gifts and special discounts given. There are also clubs or pubs that participate in the Tiger beer football club and these clubs gave special discounts to their customers who are members of the football club or extend the happy hours for them. As Tiger beer strives catered for diversified consumers, they set different prices at different locations.
It is because at different places, the overhead expenses had to be taken into account when setting prices for these club or pub owners. These owners overhead costs would be significantly higher than those in neighbourhood coffee shops hence the price different. The consumers at different areas are also different and marketing survey must be done to determine the price these consumers are willing to pay. Tiger beer can also use competitor’s price as a bench mark so that Tiger beer would not be priced out of the market. Tiger beer also gave discounts to their products during festive seasons.
This is especially so during the month of December where people would make merry during Christmas and New Year. Chinese Lunar New Year is another festival where Tiger beer would give discounts to its products as goodwill for the consumer’s support. Tiger beer would also reduce price of their products when there is a football tournament going on. Tiger beer sponsored many football tournaments and uses the tournaments as a mean of advertising. Tiger beer occasionally gave cash rebates to its consumers. This is done by collecting bottle caps and redeeming it for cash.
This is only valid for a certain period of time. Tiger also organizes many events to create buzz for their products. The target segment is the young consumers who may see drinking beer as an uncouth behavior. Tiger beer is trying to change the mind set of these young consumers by staging special events at various hip places such as Sentosa and prominent night spots. Tiger beer also collaborated with St James Powerhouse, a prominent local nightspot, to have a dedicated bar for its Tiger beer football club members to mingle and watch soccer matches.
But the survey also shows that some consumers are willing to forgo quality over the price differences between the beers. These consumers felt that there is not much difference between the local beer and the imported beer therefore is not willing to fork out extra price. These group of consumers are mostly aged 30 years old and above. Clubbers who patronize night spots are willing to pay for Tiger beer as they deem that although the club may serve various types of beer, Tiger beer is the beer that is value for money.
4. 3 PLACE
In Singapore, Tiger beer uses both direct and indirect marketing channels. Asia Pacific Brewery, which owns Tiger beer, has a brewery in Tuas, Singapore. For a fee, consumers can take a tour inside the brewery and after the tour; there is a beer tasting session which allows consumers to have a taste of freshly brewed beer. Consumers are also allowed to purchase Tiger beer directly from the brewery after the tour. Tiger is practicing a one level channel for this approach. Tiger also uses indirect channel to distribute its beer locally.
Asia Pacific Brewery would distribute to places such as night spots and neighbourhood shops and these retailers would then sell to consumers. There are also wholesalers and distributors in Singapore who distributes to these outlets too. They helped to reach out to places where the quantity ordered would not be big and therefore will not get to enjoy the bulk discounts given to major outlets by Asia Pacific Brewery. Smaller outlets that got their supplies from these wholesalers or distributors therefore get to enjoy some discounts.
Customers who are likely to import their Tiger beer are likely to be hotels, nightspots and other entertainment establishments where their consumption is very high. Tiger is practicing a two level channel for this approach. The relationship can be illustrated in the following diagram. In the two level channels, there are 2 intermediaries between Asia Pacific Brewery and the consumers. As Asia Pacific Brewery is the manufacturer in Singapore, the wholesalers and distributors helps to reduce the number of channel transactions between Asia Pacific Brewery and the consumers.
Tiger beer’s sales force team looks for potential distributors, wholesalers and retailers to market their product. The sales force would observed and analyze a channel potential to market their products. Sales forces are geographically organized in various parts of Singapore to scout for new openings of outlets. Tiger also employs intensive distribution strategies to make sure that Tiger beer is readily available in most parts of Singapore. This would to make sure that Tiger beer has a market present in places where alcoholic beverages are being sold.
Therefore in Singapore, it is safe to say that the Tiger beer is available everywhere, named the house beer for many pubs and clubs and is available in almost every Cold storage, 7-11, NTUC etc. Most of the people who took the survey agreed that Tiger beer is readily available everywhere. Young people would prefer to have their beer at clubs or night spots while people aged 30 years old and above would prefer to enjoy their beer in a quieter place such as in the comfort of their homes. This results show that smaller outlets situated in the neighbourhood still holds a heavy weightage in terms of market share.