TAPB targets Leo with mainstream Cheers

Thai Asia Pacific Brewery (TAPB) has made its move into the mainstream beer segment with the launch of new brand Cheers. With the mainstream segment accounting for almost 79 per cent of the 82 billion baht (US$2 billion) beer industry in Thailand, the launch is part of TAPB's strategy to capture 15 per cent overall market share over the next three years.

"The launch of Cheers Beer is in line with TAPB's long-term strategy to maximise and sustain our position in Thailand with a portfolio of quality beers," said Jeff Kimble, commercial director, TAPB. "To be a major player in Thailand's beer market, a brewer needs to capture at least a 15 per cent share, and that is what we are aiming to achieve within the next three years. "

Priced similarly to competitor Leo, Cheers is available at 35 baht for a 64cl bottle and 20 baht for a 33cl can. "Cheers aims to attract 22- to 30-year-olds who appreciate good beer , but are very price sensitive," said Kimble. "It is different from the other players, with its English name, English soccer team logo-like packaging and a smooth taste. It looks, sounds and tastes unique -- and that will be its USP."

Phromson Ayanaputra, TAPB marketing manager for Cheers Beer, said Cheers is positioned as a beer which "friends can enjoy anytime, anywhere". The company has earmarked a budget of 400 million baht for marketing activities, under the theme 'Cheers! To the good little things in life', and includes both above- and below-the-line campaigns.

The bulk of the budget will be for television advertising, made up of three 30-second commercials, produced by JWT. "The commercials promote social values by emphasising the importance of cheering the small things in life such as moments with a friend and a football match, which, in a quest for bigger achivements like a raise or a bonus, we tend to forget," explained Kimble. "We will also introduce five 'Cheers Up' vans that will tour target locations and give people an opportunity to sample Cheers Beer's unique taste."

When asked how the company intends to win refrigerator space at mom and pop stores, he replied: "Most traditional vendors stock only mainstream beers such as Leo and Chang. Thus, the question is not substitution, but adding on a third brand into the cold spot."

The company has also planned several trade promotions and will be distributing Cheers through 5,500 outlets such as supermarkets and hypermarkets, and over 90,000 medium grade restaurants, noodle shops and street vendors, nationwide. sm