Final - Presentation Bus331

LEO BEER
BY
SINGHA CO.
Group Members:
• Mallika K.C. 1910070001

• Aryamann Karki 1910150001
• Nattapol Rimthong 1807050004
•Thanaprasert Sutthithanitpong 1811020004
Case Study
comprising of
Operations
PART 1 Management and

Supply Chain
Management, Core
competencies and
Strategy Deployment
INTRODUCTION
This presentation reviews Leo beer under the brand
Singha that is owned by the company Boone Rawd
Brewery CO., LTD.
Boon Rawd Brewery is the first ever Thai brewery

company that was established in 1933 by Phraya Bhirom
Bhakdi.
The management of Boon Rawd Brewery has been

passed on to the Bhakdi family from generation to
generation of the founder.
This company not only produces a variety of

beers but also drinking water, soda, soft drinks and many
more.
Mission And Vision
Mission
-Singha Corporation set that Leo will be Asia's Top 3

beer in the next three years and become the top 50
global brands within five years.
Vision
- It is a company that produces and

distributes beverages Vanguard with a focus on
commercial excellence Continuity in developing
product quality at a premium level and
professionalism.
Core competencies in Relation
to its Strategic Positioning
 Being the first ever Thai brewery company, Boon

Rawd Brewery has a lot of direct as well as indirect
competitors not only inside Thailand but also across
borders.
 There are a lot of core competencies of LEO, in

relation to its strategic positioning that is based on
quality, cost, flexibility, speed and service.
 Some of LEO's local competitors are Chang, Phuket,

Archa, Kloster; while Calsberg, Hineken, Warsteiner,
etc happen to be the international competitors.
Strategic Decisions involving Operations and Supply
Chain Management
TECHNOLOGY TO REUSE THEIR ENVIRONMENTAL PROGRAM THAT REUSE THE WASTE CALLED USING YEAST FROM THEIR OWN
SUPPLY FOR THEIR PRODUCT HELP RAISE AWARENESS OF KIESELGUHR FOR THEIR OWN FARM FOR THEIR OWN BEER TO
DEVELOPMENT ENVIRONMENT ISSUES TO BOTTLES INSTEAD OF IMPORTING MINIMIZE SUPPLY COST.
MINIMIZE IMPACT TO THE CHAO LARGE QUANTITIES OF GLASS FOR
PHRAYA RIVER. THEIR BEER BOTTLES WHICH
INCREASED THE EFFICIENCY.
1) Operative Strategy :
-Sustains their competitive advantage by several

methods
-Application of complicated fundamentals on sustaining
competitive advantage
Strategies that
help sustain 2) Marketing strategy :
-To scramble the market share as much as possible in the
Competitive standard,
-Keep up with Premium and super premium segments of
the market
Advantage in -To increase the market share from 20% to 30%.
Long-run
3) Product strategy :
-Better product are basic to winning

-Keeping market share and growth is a normal objective
of enterprise
-Stimulate sales volume and increase market share
-Pricing their beer almost 10-9 baht lower than other
local competitors so that general public can afford it
Recommendation
(1)
Increment in production
Manufacturing vending machines for their products

and placing them around the tourism sectors.
Competing with international products in global level.
Move to manufacturing beers that are stronger and

crispier as the most American and European visitors
prefer those.
The company could also opt for non-alcoholic beers.

Case Study
comprising
PART 2
of Product Design
Process, Quality
Management System
and Design for
Environment
INTRODUCTION To THE
NEW PRODUCT
Alcohol is mostly unhealthy and could lead to many

long-term health problems like alcohol dependence
and could cause more serious illness like high blood
pressure, cancer, etc.
For our new product, we decided to lower the

volume of alcohol in beer to 0.02% which
considered as non-alcoholic beer.
With our new non-alcoholic 0.02% ABV Leo beer,

consumers can even drink and drive according
Thailand laws, if you are holding two-year
long driver license, you can drink 0.02% ABV and
drive, and up to 0.05% ABV if you are holding 5
years long driver license.
Idea generation
Since Thailand has lot of laws and regulations toward alcohol
and promote many ads about drink and drives, give us an idea
about non-alcoholic beers.
Only Heineken has non-alcoholic beer but not aiming to sell

toward people who are under 20, we see this as opportunity, we
will sell our non-alcoholic beer toward younger people since
there is no alcohol effects.
Leading in market share in top beer, and with many

manufacturing companies and brewery stations give Leo
advantage in mass producing new product with high standards.
New Technologies and
Competitors
 According to Krungsri Research (2019), Four of the
biggest beer brands in Thailand are Leo, Chang, Singha,
and Heineken.
 The market leader in share percentages are Leo (53%),

followed by Chang (35%), Singha (7%), and Heineken
(5%) of the Thailand’s beer market.
 Heineken, also has its own non-alcoholic beer called

Heineken 0.0 whereas it has 0.03% of alcohol and it is
considering as non-alcoholic beer which it has no impact
of alcohol to the consumer, you could drink and drive.
 Heineken would be the only competitor to our new non-

alcoholic Leo beer as other competitors are not into non-
alcoholic beer. Moreover, there would not be a need of
new technologies much because we just producing a same
beer with lower alcohol content to 0.02% beer.
Feasibility Study
Market Analysis
-Leo beer is a marketing model standard or mid-range beer with a

distribution channel in the freezer. To the top restaurants, pubs
and entertainment venues in Bangkok and the major cities.
Economic Analysis
-Leo has released aluminum bottle packaging. It is believed that it

will create quite a lot of volatility in the market.
Technical / Strategic Analysis
-Leo beer's business strategy can be categorized as a

leading alcoholic beverage focused on young people.
Working people with middle income to low-income
Feasibility
people.
Study Performance Specifications
(Con.) -Super Lion, which found that Leo beer sold better.
Help Leo beer grow unrivaled.
-Leo beer packaging is designed as a safe.
-The non-alcoholic Leo beer used packaging bottles
are recyclable.
Form Design
For the form design of our newly introduced product, we have come up
with:
A lighter yellow colored bottle

LEO's logo printed in the center of the bottle
A notation of “NON-ALCOHOLIC” printed on top of the logo.
A note at the back that gives details about the drink.
Functional Design
 Functional analysts design systems and create functional
technical design documents that allow for data sharing across
the organization
 Taking feedbacks to improve our non-alcoholic drink.
 Aim of the company is to target people who don’t like the

taste of hard drinks and don’t want to get intoxicated.
 Using specific target groups for taste testing.

Thailand being a very hot country, the demand of beer
happens to be very high at any time of the day but
drinking alcoholic content at any time does not sound
very suitable and moral.
This gives us a reason to provide people with what they

want the most – "Non-Alcoholic Beer"
Production We will be developing this product to meet the public

demand and provide people with a healthier drinking
Design habit as this non-alcoholic drink causes lower flaws to

human body.
Future focus- Improve the product and even be able to

distribute the product internationally, with time.
Quality Management
Systems
◦ * continuous supervision at the working site
◦ * Taking feedbacks from customers.
◦ * create a hygienic working environment.
◦ * ensure that ethanol level is correct.
◦ * checking the maturity of the drink.

Recommendations
(2)
The new innovations in the beer industry Non-
alcoholic Leo beers offer new flavors to try out in
their non-alcoholic Leo beer releases, this time
hoping to bring some color to the beer market.
Fruity flavors like Lemon, Grape,
Pomegranate, etc could be produced next.
Case Study comprising of
Global Supply
PART 3 Chain Procurement
and Distribution Channels.
Framework
SCM is needed to ensure there is enough

supplies and materials that are required for
the products. There are many ways and
strategies for supply chain managements.
Further discussion :
Leo beer's supply chain
management, distribution channels, target
market, and lastly issues and challenges in
the industry.
Analysis of the company’s global
supply chain procurement, process,
systems, and trends
Leo has been using special Thai rice which gives their beers a
unique taste. The selection of these rice are done by Leo and
are bought from local small businesses. All their ingredients are
sourced locally.
The steps of supply chain process are planned and executed

very well by Leo, as they use local resources and promote local
products.
Leo uses high end IT system to get closer with their suppliers
and customers. They store data ani analyze them through the
help of IT systems.
Trends tends to change over time, but for Leo it has been seen
that they take sustainability very seriously. As seen in most
7/11, their three bottle packs are packed in cartoons and not
plastic.
Company strategic decision systems and
Processes
Four key elements to strategic decision system and processes :
Product development
Customers
Manufacturing
Suppliers
Global supply
procurement system
 The attempt to awaken "logistics" through Leo Link
Focusing on finding products both inside and outside
the network to fill the transport trucks.
 Boonrawd Brewery has chosen Linfox as a partner in

addition to adding "strength" to sing and doing
business in Thailand for more than 2-3 decades and is
also the No. 1 logistics private sector from Australia
and in ASEAN
 Process of procuring raw materials production of

products adjust it to be more effective to reduce costs
for the organization.
Global supply
procurement system
v Aiming to shorten the time to deliver products to consumers "The
sooner the better" receive products outside the company to distribute.
Increase the speed and do more delivery cycles. Originally, affiliated
products were delivered before the car was full, it could take 10 days, 5
days faster, meaning a huge cost savings. Better control of profit and
loss (PNL)
v Singha's supply chain focus is more focused on Cost Center than Profit
Center, because if costs are managed low, “profit” is the result. And
would like to focus on selling products to retailers to get as close to the
consumer as possible.
◦ Purchasing guidelines
◦ 1. Basic procurement concept

◦ 2. Treat suppliers equally
◦ 3. Respect the independence of suppliers
Distribution channels and
Target markets
Leo's distribution channels is retail
Retailer such as Tesco Lotus, Makro, 7-11,

FamilyMart
Target market – alcoholic drinkers, both

foreigners and Thai, legal age
Analysis of global supply
chain issues and challenges in
the industry
 Provision of high tariffs
 Nontariff barriers
 Localization barriers
 Complex taxation and custom duties charged by the Thai

Government
 Price control for which the Thai Government has a legal

authority.
 Companies importing or exporting alcoholic beverages are

required to attain a specific license certificate by the Thai
government.
 Ever since the Covid-19 situation, the company is facing a

downfall in global sector.
Recommendations
(3)
For distribution, Leo could try direct sales on internet
website.
Creating a sales website of their own that is only

authorized to people above 20 and taking orders through
the web as well as providing delivery services would be a
great option technology wise.
The company must be able to come back stronger and

better after the pandemic ends.
THANKYOU
FOR YOUR
ATTENTION! Q&A

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LEO BEER

• Mallika K.C. 1910070001

PART 1 Management and

Boon Rawd Brewery is the first ever Thai brewery

The management of Boon Rawd Brewery has been

This company not only produces a variety of

-Singha Corporation set that Leo will be Asia's Top 3

- It is a company that produces and

 Being the first ever Thai brewery company, Boon

 There are a lot of core competencies of LEO, in

 Some of LEO's local competitors are Chang, Phuket,

-Sustains their competitive advantage by several

-To scramble the market share as much as possible in the

Advantage in -To increase the market share from 20% to 30%.

-Better product are basic to winning

Manufacturing vending machines for their products

Competing with international products in global level.

Move to manufacturing beers that are stronger and

The company could also opt for non-alcoholic beers.

Alcohol is mostly unhealthy and could lead to many

For our new product, we decided to lower the

With our new non-alcoholic 0.02% ABV Leo beer,

Only Heineken has non-alcoholic beer but not aiming to sell

Leading in market share in top beer, and with many

 The market leader in share percentages are Leo (53%),

 Heineken, also has its own non-alcoholic beer called

 Heineken would be the only competitor to our new non-

-Leo beer is a marketing model standard or mid-range beer with a

-Leo has released aluminum bottle packaging. It is believed that it

-Leo beer's business strategy can be categorized as a

Study Performance Specifications

A lighter yellow colored bottle

 Taking feedbacks to improve our non-alcoholic drink.

 Aim of the company is to target people who don’t like the

 Using specific target groups for taste testing.

This gives us a reason to provide people with what they

Production We will be developing this product to meet the public

Design habit as this non-alcoholic drink causes lower flaws to

Future focus- Improve the product and even be able to

◦ * Taking feedbacks from customers.

◦ * create a hygienic working environment.

◦ * ensure that ethanol level is correct.

◦ * checking the maturity of the drink.

SCM is needed to ensure there is enough

The steps of supply chain process are planned and executed

 Boonrawd Brewery has chosen Linfox as a partner in

 Process of procuring raw materials production of

◦ 1. Basic procurement concept

Retailer such as Tesco Lotus, Makro, 7-11,

Target market – alcoholic drinkers, both

 Complex taxation and custom duties charged by the Thai

 Price control for which the Thai Government has a legal

 Companies importing or exporting alcoholic beverages are

 Ever since the Covid-19 situation, the company is facing a

Creating a sales website of their own that is only

The company must be able to come back stronger and

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