-Thailand
Program
Health Policy
International
-Thailand
Program
Policy
Health
International
Alcohol marketing
in non-western countries
: Thailand
Thaksaphon Thamarangsi
International Health Policy Program
thaksaphon@ihpp.thaigov.net
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Health Policy
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-Thailand
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Health
International
-Thailand
Outline of presentation
• Thailand: situation in brief
• Thai marketing regulation
• Marketing practice: Product, Price, Place,
Promotion
• Synthesis part
– Difference between domestic and international
operators
– Difference between advertising in Thailand and
Western countries
– The way forward
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Thailand: a perfect emerging market for alcohol industry
•
•
65 million population, 95% Buddhism & 4% Moslem
Country in transition: modernization, increase income, fade of religion
faith and social control, globalization
•
Sky rocket increase in per capita consumption (recorded alcohol) 0.26
in 1961 >> 8.47 L of pure alcohol per adult in 2001, since then quite
stable
Particular growth in western-style beverages
12-time growth in beer consumption in 16 years, 1987-2003
Gradual decrease for domestic distilled beverages (Thai style/
indigenous style), since the liberalized market campaign, in 2000
Unrecorded alcohol still has substantial proportion, estimated to be 2
L/capita/year
•
•
•
•
•
•
•
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Stable in drinker prevalence, 1/3 of adult
High gender discrepancy, female drinker prevalence~10%
Increase prevalence among teen and young adult, particularly female
Steady increase in drinking frequency, still yet 50% drink not more
than once a month
High per capita consumption from low drinker prevalence and
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low drinking frequency, therefore very high drinking volume per occasion
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Thai alcohol market: at a glimpse
• End of production monopoly in 90s
•Affected by economic agreements (cheaper imported beverages),
modern trade system
• International operators has invaded Thai market since, and
focused not only premium market sectors (like before)
•Yet still oligopoly
68%
White spirits
Other domestic spirits
Imported spirits
14%
7%
11%
Beer
Share of production and imported volume by beverage type, 2005
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Marketing regulations
• Promotion regulation revised in 2003, known
as ‘Partial Ban’, enforced between 2003-2008
• The new Alcohol Consumption Control Act
2008,
– Raises minimum purchasing age (on- and offpremises) from 18 to 20 years
– Bans sale and drink in many public venues:
religion, education, park, etc
– Revise advertising again, subject for further
regulation (expected to be announced soon): No
advertising, except to promote social value which
brand and logo can be broadcasted- but not
product or quality of beverage
Confusing stage for both regulator and operators
Operators enjoy free-riding at the moment
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Advertising control: in summary
Alcohol advertisement is regulated in three dimensions; content,
channel & time and place, and warning messages.
Prohibited contents include;
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Drinking pictures and sounds and consumption encouraging
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Linking to corporate image in unclear manner
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Give away or lucky draw campaign
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Linking to sexual and life success and health benefits
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Using celebrities ( sport/music/movie stars) as presenter(s)
Channels
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TV and radio: allow only 22.00-05.00
•
Billboard: 500 meters to educational venue
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-Thailand
3000
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Advertisement budget categorized
by types of alcohol beverages, Thailand
1500
2500
2000
1000
500
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Whisky
4
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
0
3 1
Beer
20
68
Source: Foundation for consumers
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Marketing practice: Product
• Diversification of beverages: i.e. three segments of
beers
• New beverage for new customer segment
• Introduction of never-seen-before beverages, tailored
to customer groups: RTDs, Alcoholic Frappe
• Westernization of alcohol market
• Anglicized domestic products: i.e Spy, Blue, Golden
Knight, Cavalier Trooper
• Localization of low-end products: ESAN (NorthEastern) Beer, TAI Beer
• Observation: Naming beers names that are linkable
to met-amphetamine/ ‘Kick effect’: i.e. Red horse,
Archa (literally horse)
• Adaptation to Thai context: Alcoholic Frappe, Beer
girl
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Marketing practice: Product
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160
140
120
100
80
60
40
20
Mekhong
Singha
Adjusted-Mekhong
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0
1989
•
1988
•
Mushrooming of cheap/ economy grade beverages
Disproportion to income growth
A can of beer [1.28 standard drink] is sold at 10-20 Baht
(0.25-0.5 USD)
A 660 ml. bottle of 6% beer [3.18 standard drink] at 30 Baht
(0.75 USD)
Beer price still higher than cola (from very cheap cola price),
generally cheaper than milk and mineral water
1987
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•
•
1986
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Marketing practice: Price
Adjusted-Singha
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Marketing Practice: Place
• High accessibility: 110 population/1 outlet, 7.5
minute on average
– licensing procedure and fee are no barrier
– Modern trade: introduction of convenient
stores to every community
– Substantial proportion of unlicensed outlets
– Better transportation
• Effective distribution system
• Point of sales: 58.64% grocery store, 17.18
convenient store, 5.3% supermarket and discount
store, 0.85 from shop in petrol station: therefore
81.96 % off-premise sale
• Contract between producer and outlet
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Marketing practice: Place
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Marketing practice: Promotion
• Integrated advertising
• Relationships between over and below the
line promotion i.e. budgets for mobile
advertisements such as ads-on-vehicle, and
on-drinking-site promotions increased by
583% and 148% in one year after the 2003
Partial ban
• Modern advertising channels
• Sponsorship still play a big role
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Integrated marketing
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Integrated advertising
From TV to Website to drinking venue
TV spot
Website
On site promotion
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Exempted area: internet
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Logo
advertising
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Sponsorship & social donation
• Mainly unregulated
• Well designed for customer groups
• Broadcasting of sponsorship by surrogate
products
• Advertise on social donation
• Many events are gradually replaced by
ThaiHealth Promotion Foundation, funded by
2% extra surcharge of alcohol & tobacco
excise tax
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Sponsorship: sport
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Sponsorship: entertainment event
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Sponsorship: cultural events & donation
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Alcohol industry: Cunning entrepreneurs
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Give away & Lucky draw campaign
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Beer Girl system
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Ad-on-the-go
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Advertising monitoring system
• Setting up the hotline center in Health
Ministry, yet still reactive to complaints
• Practically no punishment
• More effective through academics: Media
Monitor project
• NGOs & civil society can effectively support
regulation enforcement
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Pitfalls of current advertising control
Policy content
• Comprehensiveness: unable to cover belowthe-line and modern advertising channels
• Poor punishment
Policy downstream
• Poor implementation
• No official and evaluation mechanism
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Differences in promotion practices:
domestic and international operators
• Advertising contents and channels:
decreasing discrepancy, learning from each
others
• International operators: relation to its main
company
• International operators: use of regional and
international advertising themes
• Domestic operators: can use the locality
themes
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International themes
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Differences in alcohol promotion
Thailand and Western countries
• Differences mainly come from promotion
regulations and cultures
• Difference in content: extent, not direction
• Sensitive issues include sexual appeal, and
family drinking
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Generalization of Thai experiences to others
• Emerging market countries will suffer most
from alcohol advertising in the long run.
These is are the most populous areas.
• Thai marketing control is strong and
comprehensive, compared to other middle
and low income countries, yet it cannot stop
the recruitment of new drinkers
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-Thailand
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-Thailand
The way forward
• Alcohol is a globalized problem, but policy is
confined to national boundary. We need
international mechanism to control alcohol
marketing.
• The concept of ‘Alcohol as no ordinary
commodity’ should be the backbone principle
for any policy decision. To have this the
connection between knowledge segment,
advocacy and policy makers should be
strengthened.
• Knowledge generation, sharing and utilization
are as of paramount important
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Scenarios analysis
Country
weak
Country
strong
Regional/
Global
weak
- Pandemic alcohol
consumption & harms,
- Good for industries,
- Bad for health
- Successful domestic
alcohol policies,
- threats by trade treaties
Regional/
Global
strong
-Alcohol policies were
shelved,
-NATO scenarios
- Comprehensive global,
regional and national
synergistic policies
strategies,
- Actions in good pace,
- Good for health,
- Fair for the industries
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-Thailand
Thank you
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