Executive Summary

This report aims to critically analyze the brand of Tiger Beer which is the flag-ship product
of Asia-Pacific Breweries (APB) Singapore, its current market position and review its ability
to be a top-notch brand amongst all other international beers. APB faced many strong
competitors that have a global position i.e. Carlsberg or regional position i.e. Tsingtao.

Carlsberg: Carlsberg is the world’s fourth largest brewery group. Carlsberg’s ambition is
based on one important principle that is creating value for shareholders and all other
stakeholders by building the fastest growing global beer company and being a significant
player in the markets where it choose to compete.

Tsingtao: Tsingtao Brewery is China's oldest beer brands founded in 1903. This firm based
in China is the market leader in the People's Republic and it has a growing global position.

Company Profile: APB & Tiger Beer

Vision: Tiger Beer to become the world’s most highly recognized brewer.

Mission: Tiger Beer is committed to use the world’s best resources to offer the highest
quality products, delivering it with friendly and efficient service.

Asia Pacific Breweries Limited (APB), formerly known as Malayan Breweries Limited (MBL)
was established in 1931. MBL was renamed APB in 1990. APB produces a range of beers
for sale in the Asia Pacific region and several brands that are exported to the rest of the
world. APB has 14 breweries in eight countries: Singapore, Malaysia, Thailand, Vietnam,
Cambodia, China, New Zealand and Papua New Guinea.
Over the years, Tiger Beer has won over 40 medals various international accolades and
awards. The most famous include an international award at the Brewers Exhibition in
London, the Brewing Industry International Awards, UK, 1998 and the coveted Gold Monde
International Quality Trophy (APB annual report 2007). Recently and once more, Tiger won
the Gold in the World Beer Cup competition dubbed the “Olympic of Beers”. And the Tiger
brewed in Malaysia is the only one to win the Tiger Quality Award for 2 consecutive years.
This proves that Malaysians drink the best Tiger Beer in the world

APB aims to reduce operation costs and increase prices in its products to sustain this profit
growth and hence allow for market development and brand enhancement (APB annual
report 2007).

Competitive Analysis Model

The competition faced by Tiger Beer versus its competitors is analyzed using Porter’s Five
Forces Model to explain Tiger Beer competitive position and strategic advantages.

Porter’s Five Forces Model of Competition

Competitive Rivalry
The intensity of rivalry helps decide the extent of the value of brands and products in which
will create head-to-head competition. It also determines the attractiveness of the industry.

Tiger Beer is internationally renowned to be an exotic beer with high quality control. There
are many other international beers such as Heineken, Carlsberg, Suntory and Tsingtao etc.
With so many brands available, it will create a competitive industry. Their prices tend to be
similar and competition focuses on advertising, promotion and product development. Tiger
Beer faces strong competitors and fight for higher market share through Differentitation.

The traditional approach often takes to keep interest and increase consumption is by
advertising, POS materials and other promoters. Tiger Beer stands out by appealing to
consumer and generates interest in its brand. Tiger Beer targets younger consumers which
associate themselves with brands that are seen as cool and trendy by organizing a ‘stand
out with Tiger Beer’ campaign i.e. introduction of three designer bottles based on artistic
and music themes. Tiger Beer also in touch with community of over 20,000 Tiger fans in
Facebook that created more buzz and had fans share their views plus other activities in
bloggers, Twitter, Flicker and YouTube.

Threat of New Entrants

In every industry, existing and potential competitors play a part in its profitability. The threat
of new entrants is highly dependable on industry entry barriers. Newer brands such as
Cheese Beer and Corn Beer have emerged. They all has managed to keep transportation
cost low and hence, is able to keep beer prices at minimal.

Cheese Beer --The US Miller Beer Company develops beer which has the unique rich milk
fragrance and light malt taste which is very delicious. It is made of the lacto-protein whey as
main raw material, malts, and hops which ferments to produce the cheese beer.
Corn Beer-- Japan launched the corn beer, a corn-based materials which is pure in taste,
limpid color, low alcohol, low calorie, high in protein, vitamins and effective in human
nutrition.

Threat of Substitutes
The threat that can substitute a product highly depends on the price allocated to the product
and its performance. This allows consumers to turn to different products to satisfy the same
basic need.

In the beverage industry, there are many substitutes product to Tiger Beer. Wine and hard
liquor is highly available on the market. On other extreme, a substitute can be simply a
Coca-Cola or a cup of coffee.

Bargaining Power of Suppliers

The ability to charge customers different prices with differences in the value created for
those buyers usually indicates that the market is characterized by high supplier power
(Porter, 1998).

Tiger Beer minimize the power of suppliers through close cooperation with the raw
materials suppliers and thus minimize the cost impact.

Bargaining Power of Buyers

With many other brands in the market, consumers have a large variety of brands to choose
from. Many bars and restaurants usually carry several brands of beers. However, through
effective marketing and promotion, Tiger Beer create the demand for its products and with
that value instilled in the name, many bars and club will want to carry the brand.
Personal Evaluation

In this report, the author has reviewed Tiger Beer’s current marketing positioning and
strategies. According to the Porter’s five forces, it shows Tiger Beer has rapid market
growth and a strong competitive position. It is a world famous beer and carries a strong
brand name.

Due to the unavoidable changes economically and environmentally, the organization has to
prepare itself to overcome these changes. To make up for the increasing inflation rate, APB
will need to ensure that there is sufficient research and development done that will improve
sales figures. At the same time, there will be a need to constantly create new products and
services to enhance the brand’s equity. Consumers will be more prices sensitive, so Tiger
Beer needs to differentiate their products from other competitors.

Conclusion

APB has grown to be a successful brewery over the last decade. Its quality maintenance
and market strategies have made Tiger Beer one of the most drank beers in Asia-Pacific.

At present, the greater challenge is to establish its brand into the greater global stage in the
West. Some of the recommendations mentioned may be useful short term measures to
counter the threats and to increase greater profits. More research and analysis is needed to
give obtained a more thorough insight of the beer market and to better understand the
prominence presence in Singapore and the world.