Literature Review

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Chapter 2: Literature Review

2.1 Introduction

Singha beer is one of the prominent beer brands of Thailand which aims at expanding globally. It attracts majority of its consumers by marketing its brand through sponsoring international sports like the English premier league clubs for instance Chelsea.

In the past, the competitive market of beer was not that much in Thailand because there were two groups operating. The two groups were Boon Rawd Brewery Corporation which produced Singha beers and Amarrit brewery. Therefore, there was no much competition but only a state of monopoly. Due to the large expansion of the beer market many entrepreneurs have joined the market increasing the competition. For instance, Carlsberg beer joined the market with a marketing plan of combining its beer with local liquors. However, Carlsberg could not achieve its target. On the other hand, Chang beer was afterwards released to compete with Singha. Its beer had higher degree of alcoholic beer than that of Singha beer.

When Chang joined the beer market, advertising was mainly done by using television as it attracted a large number of consumers. In so doing, it spent almost 500 Million for promotion this is just but an example of the big market struggle expenditures between Chang and Singha. Another main marketing strategy that was applied was the attractive price. It involved lowering the price from that of the competitor in order to get a competitive advantage due to low price market demand (Ethnic Beer marketing opportunities case study, 2007, P. 6-7). The beer market tuned out to be most competitive in 2000, which forced every company, had to find its own strategy to fight the competitors. Singha beer began sponsoring football clubs as a way of marketing its brand to customers. It sponsored clubs which were in the English premier league because they had a large audience worldwide (Verbeeten, & Vijn, 2010, P. 662).

2.2 Sponsorship

Company sponsoring also termed as event marketing is an emerging form of advertising in business. Sports sponsoring has been growing in the Thailand beer business. Partnering with English premier league football clubs like Manchester united and Chelsea provides a company with a unique chance to get involved with a large audience. Additionally, some of the major advantages that beer industries get by sponsoring this clubs comprise of;

The company gets Access to the target market. English premier league football supporters range from the young population to the older population. Therefore as these populations enjoy the match, they will tend to associate themselves with industries’ images and in this case Singha. The outcome of associating with the company’s image is that the football fans will have a desire to use the products they saw in image form during the match (Wang, Cheng, Purwanto, & Erimurti, 2011, P. 814).

By sponsoring the football clubs, Singha is able to enhance its image and visibility, assist develop closer relations with consumers, showcase services and products, and gain a competitive advantage from Titan Corporation, which have a lot of money to invest on advertising. Moreover, the tickets for the sponsored events can be given to the employees to serve as a motivation factor hence promoting the employee’s loyalty to the company. Consequently, there will be better improved productivity (Ciunova-Suleska, 2009, P. 100).

On the other hand, sponsoring of football clubs gives the sponsor an advantage in the world of public relations. Good relations with the community assist a corporation to attain prominence as a valuable product producer.

Moreover, providing sponsorships to football clubs attracts consumers and government regulators. More consumers are attracted to such type of advertisement because it does not have cultural and language barriers. On the other hand, football sponsoring provides Singha beers with unique chances to position its product in the...
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