Leo goes head to head with new rival Cheers

Boonrawd Brewery, makers of Singha and Leo, has unveiled a high-visibility 70 million baht (US$1.7 million) campaign - its largest ever - to promote economy brand Leo Beer in the face of impending competition from new entrant Cheers.

"The objective of the launch is to further strengthen our brand's 'cool and sexy' image and sustain consumer interest in Leo," said Trachoo Kanchanasatitya, executive business group director, Spa Advertising, the agency handling the Leo account. "The Thai beer consumer is maturing fast and now wants a lighter beer, albeit at the right price. Leo plugs this demand perfectly and is growing fast." According to Spa, Leo holds a 20 per cent market share of the US$1.8 billion beer market in Thailand, having grown its share from 15 per cent a year ago. The economy segment accounts for almost 80 per cent of the total market.

Industry sources believe that the campaign could help Leo pre-empt fierce competition in the category from the launch of Cheers, Thai Asia Pacific Brewery's (APB) new economy brand. Said Mahesh Madhavan, managing director, Bacardi Thailand: "Leo has been flying off the shelves and is eating into the share of Chang beer, particularly here in Bangkok. However, the fact that APB is launching a low-price beer is a threat, and how Boonrawd manages that will be interesting to watch."

Trachoo noted that strict Government advertising regulationswould make it difficult for a new beer to enter the Thai market: "An additional clause has been added wherein the beer manufacturers cannot even do any kind of promotional activities, such as lucky draws or freebies."

The new Leo campaign involves a nationwide hunt for a female brand ambassador -- a beauty contest of sorts in which the winner, who best embodies the attitude, style and sexy positioning of Leo' will win one million baht. "As we can no longer use well-known faces to promote our brand, we have decided to create our very own celebrity," said Trachoo. The three-step nationwide campaign kick- started with a print announcement and recruitment ad followed by a 30-second TVC at the end of September.

"We recreated the actual contest with 21 'stand-in' models, who will then be shortlisted to seven girls and finally one," said Trachoo. "The last commercial, that will be aired sometime in November, will show the actual winner of the contest take over as the future spokesperson of the brand." sm