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Bangkok beer & beverages: in pursuit of growth.

Entrepreneurship, Strategic management, Importer/Distributor, Marketing, Environmental forces, Wine, Thailand.

Senior undergraduate or graduate MBA students taking a course in entrepreneurship, strategic management, marketing or small business management.

Bangkok Beer & Beverages (BB&B) Company is an importer, distributor and marketer of premium spirits and wines in Thailand. The case takes place in April 2007, after the public announcement of BB&B's distribution agreement with Fosters Group of Australia to distribute the Group's Penfolds brand throughout Thailand. Coinciding with this milestone of BB&B is the rising interest in wine and the announcement by the Thailand Government to impose stricter regulations for the distribution and promotion of alcoholic beverages to curb consumption in response to demands made by several public interest groups. Within this backdrop, Pongchalerm Chalermsaphayakorn, co-founder and CEO of BB&B, was working with a team to consider future opportunities to pursue for sustainable long-term growth.

This case problem can be used to increase students' understanding of: how an entrepreneurial firm attempts to build/develop organizational capability; how decision-makers should assess the impact of, and respond to, the threat of significant and uncontrollable changes to the business macroenvironment; a firm's market position and the identification of strategic groups in an industry; and evaluating different growth opportunities and the implications on a firm's mission.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

International marketing, new product development, international business expansion, small business management.

This case is intended for senior undergraduate or graduate MBA students taking a course in international business, international marketing, or small business management.

Thai Jintan Company Limited (Thai Jintan) is a medium-sized importer, distributor, and marketer of premium confectionery and health care products in Thailand with the exclusive distribution arrangements of Morishita Jintan Company Limited (Morishita), one of Japan's oldest companies and a leader in the Japanese probiotic and confectionery industry. The case takes place in August 2009, approximately 18 months after Thai Jintan implemented its market launch of Morishita's technologically advanced breath and belly mint under the brand name of Jintan Nude. With a limited promotional budget of 8 million baht (€161,128) coupled with Thailand's regulatory environment for the marketing of food and drugs, Thai Jintan, a newcomer to the breath mint market, was faced with having to devise a resourceful marketing and promotional campaign. Thai Jintan management was confronted with assessing its past marketing plan and deciding on what to do to achieve its ambitious goal of capturing a 20 percent market share of the growing mint/menthol candy confectionery segment in Thailand.

After reading and discussing the case, students should have a better understanding of the following: the challenges faced by small businesses and new entrants; learning to apply different frameworks such as PEST or PESTEL, SWOT, and/or Five Forces to scan and assess a competitive environment; familiarizing themselves with different channels members’ roles in a distribution system; learning to evaluate a company's current marketing strategies and to recommend strategies to improve its segmentation, targeting, and positioning strategies and to design a new marketing mix for a new product launch in an overseas market; and learning how to effectively allocate a marketing budget.

Teaching notes are available.

Grounded in strategic choice and resource-based views, this study aims to investigate the antecedents and consequences of relational strategic emphasis of foreign subsidiaries operating in Thailand. Four types of relational strategies were identified with associated differential performance outcomes.

Data collected via self-administered surveys from a diverse sample of 168 foreign subsidiaries were analyzed in two stages. First, multinomial logistic regression was used to test whether resource-bridging capability, nonmarket-based assets and market-based assets were significant predictors of relational strategy type. Then, multivariate analysis of variance was used to determine whether the four relational strategy types differed in their strategic performance and financial performance.

The three resource-based motives are significant predictors of relational strategy. Firms adopting the “dual-relational” strategy tend to have the highest level of resource-bridging capability and nonmarket-based assets while firms pursuing the “business-oriented” strategy are likely to possess a higher level of market-based assets. Extensive reliance on relational ties enables foreign subsidiaries to achieve a much higher level of strategic and financial performance than those that chose to only rely on transactional or contractual relations.

Foreign subsidiaries operating in emerging markets characterized by an unstable market environment have to establish good relationships with buyers, suppliers and distributors, as well as government agents.

Using a juxtaposition of political and business ties, a typology of the relational strategy was conceptualized. This study extends non-market strategy research by investigating the relationship between resource and capability in the choice of relational strategy. Diverse degrees of political and business ties show different impacts on strategic and financial performances.

After reading and discussing this case study, students will be able to explain the concept of diffusion of innovation and predict how the passion fruit-infused vinaigrette (PFIV) might spread throughout the Thai market; analyze the market environment for condiments in Thailand and identify specific opportunities that Preedha Vinchit and her team should consider for the successful launch of the PFIV; interpret both qualitative and quantitative data gathered by the new product development (NPD) team and discuss its implications for the product’s market strategy and development; and critique the initial launch plan proposed by Krit Anon, suggest practical strategies and calculate the break-even point necessary to meet the project’s financial goals.

During July 2023, Vinchit, product marketer at the Thani Food Institute (TFI), faced a critical decision regarding the launch of the APFIV. Developed from TFI’s patented passion fruit peel powder, the PFIV offered functional benefits and addressed the sustainable use of passion fruit resources. As COVID-19 restrictions eased, TFI’s board of advisors anticipated a successful market entry for PFIV. Anon, culinologist and chef behind PFIV’s formulation, expressed keen interest in launching it independently with a startup investment of THB 500,000 (US$14,388). Vinchit, with market research and home-use test results indicating positive consumer reception in hand, contemplated whether to proceed with a launch plan of TFI’s design or endorse Anon’s entrepreneurial venture. Critical considerations included market viability, strategic partnerships, target demographics and marketing strategies encompassing pricing, distribution and promotional campaigns. The decision hinged on maximizing PFIV’s market potential amidst Thailand’s robust condiment consumption and growing health awareness.

This case study can be used in undergraduate and graduate courses in entrepreneurship, food product development, marketing strategy, market research and innovation on topics including NPD, opportunity identification, concept testing, consumer research analysis, marketing strategy formulation, business/financial analysis and launch strategies. This case study may be more useful in the middle or later parts of a course or module when an instructor is focusing on any or all stages of the NPD process and the strategic decisions, particularly for aspiring entrepreneurs with limited resources. Additionally, students should have developed at least some preliminary understanding of qualitative and quantitative research methods. This case study has been very effective in demonstrating various organizational processes and decision-making tools, which allow students to apply strategy frameworks and systematically evaluate several alternatives.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

This study investigated an appended belief-attitude-intention (BAI) model, which included two antecedent beliefs of attitude and two marketing factors as additional determinants of air traveller behavioural intentions towards low-cost airlines (LCAs). The hypothesized relationships were compared across different behaviouristic groups based on flying frequency, travel purpose and travel party size.

Survey data from 331 air travellers intercepted at a major international airport in Thailand were analysed using structural equation modelling and bootstrapping multiple-group comparisons to investigate the hypothesized mediation and moderation effects.

Results indicate that behavioural intention towards LCAs is largely influenced by perceived price, followed by attitude towards LCAs and subjective norm and not determined by airport accessibility. Antecedent beliefs of perceived service quality and uncertainty avoidance influence behavioural intention, as mediated by attitude towards LCAs. The role of subjective norm varied among air traveller groups.

Managers can manage price perceptions by focusing on LCA affordability and they should closely scrutinize these air traveller behaviouristic groups to identify opportunities to appeal to the distinctive cognitive responses of traveller segments.

This study tested an appended BAI model across three different air traveller behavioural characteristics, a multi-group analytical approach that can reveal meaningful implications, yet has been underused in LCA research.

Grounded on resource-advantage (R-A) theory, the purpose of this paper is to investigate how customer orientation, as a higher-order or interconnected operant resource, enhances firm performance through creativity capability (i.e. idea generation and problem solving) and innovation capability (i.e. the implementation of creative ideas) – among firms of different sizes and within different market contexts. The authors conceptualize customer orientation as a firm’s capacity to create and deliver superior customer value through the processing of market intelligence, as demonstrated by the firm’s composite operant resources of market-sensing, customer-relating and customer-response capabilities.

Data were collected via qualitative in-depth interviews for scale development followed by a mail questionnaire survey for quantitative responses. A final sample size of 190 firms based in Thailand participated and the data were analyzed using structural equation modeling and bootstrapping multi-group comparisons to investigate the hypothesized mediation and moderation effects.

Customer orientation enhances organizational creativity and innovation capabilities, which improve firm revenue and financial performance. The relationships among customer orientation, creativity capability, innovation capability and firm performance vary depending on firm size, market dynamism and customer type.

Managers need to consider contextual factors, particularly firm size, market dynamism and the nature of their buyer markets as key contingencies in their resource deployment decisions intended to develop customer orientation and innovation capabilities.

This study advocates R-A theory by empirically revealing how different hierarchical resources within a firm are intertwined to provide firms with competitive R-A. The findings further highlight a contingent nature of customer orientation–innovation–performance relationships among firms in an emerging economy.

Corporate diversification, product portfolio analysis, industry structure, international business expansion, beverage industry.

The case is suitable for senior undergraduate and graduate MBA strategic management, international business strategy, and marketing strategy courses.

Thai Beverage Public Company Limited (ThaiBev) was Thailand's largest beverage company and was among Asia's major alcoholic beverage companies. The case situation takes place during the latter part of August 2010, two years after the public announcement of ThaiBev's ambitious intentions to become a comprehensive and integrated beverage company and after having recently re-launched its acquired Wrangyer energy brand, a move signaling ThaiBev's strong commitment to its non-alcoholic beverages. The case describes the beverage industries at the global, regional, and country level and discusses ThaiBev's range of businesses. Marut Buranasetkul, Senior Vice President of Corporate Service and Deputy Managing Director of Thai Beverage Marketing, the sales and marketing arm of ThaiBev, must decide on the direction for ThaiBev to pursue to bring ThaiBev's non-alcoholic beverages to account for at least 10 percent of the company's total revenue. This case presents a number of important strategic topics, particularly in discussing industry structure and competition, as well as diversification issues encountered by a firm that was attempting to create a greater balance between the revenue contributions from its market leading dominant businesses and that of its younger and newer business lines.

Students will: understand the challenges faced by large conglomerates wanting to change their market position; learn to apply different frameworks such as Porter's Five Force Model, portfolio analysis, SWOT and to assess the competitive environment; learn to evaluate a company's current product portfolio and to recommend strategies to improve its allocation of resources; and learn to identify key success factors necessary to compete in a highly competitive industry.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

This study applies social network theory to examine the moderating effects of two online social media network characteristics, namely homophily and consensus, on the influence of negative electronic word of mouth (NeWOM) and of firm crisis response on consumer attitude toward a company.

Hypotheses were tested using a mixed-model experimental design of three between-subjects factors, including manipulations of homophily (high vs low), consensus (high vs low), and firm crisis response (accommodative vs defensive), and one repeated measure within-subjects factor of attitude toward the company at three different points in time (A₀, A₁, A₂). Data were collected from 328 Thai participants who were randomly assigned to one of the eight experimental conditions.

High homophily and high consensus online social media network conditions worsen the negative impact of NeWOM on consumer attitudes. However, high homophily and high consensus strengthen the positive influence of an accommodative response in regaining favorable attitude toward the company. Low homophily and low consensus negate the impact of the firm's defensive response, preventing any further deterioration of attitude toward the company.

Marketers need to understand the relational patterns among members of online social media networks in order to assess the extent to which consumers are influenced by others in the network. In doing so, the firm can better anticipate and manage the impact of NeWOM and can launch an appropriate response strategy that optimizes the recovery, or minimizes the deterioration, of lost company image and reputation.

This study provides a dynamic view of consumer attitudes and highlights the substantial impact that others in the online social media network have on consumers' evaluation of NeWOM and of firm recovery efforts.

The purpose of this paper is to identify firm groups pursuing different configurations of customer-, entrepreneurial-, and information technology (IT) orientation and to compare their new product development (NPD) capability and NPD performance.

Hierarchical cluster analysis was used on the sample of 156 firms on the basis of their mix of customer-, entrepreneurial-, and IT- orientation. Then, analysis of variance was used to compare the groups’ NPD capability (NPDCAP), NPD process efficiency (NPDPROC), new product effectiveness (NPEFF), and new product financial performance (NPPERF).

Of the seven strategy configurations posited, four emerge and two unexpected configurations are revealed. Overall, firms simultaneously pursuing multiple strategic orientations have higher NPDCAP, NPEFF, and NPPERF. Interestingly, all six strategy groups have equally low levels of NPDPROC.

To enhance NPDCAP and NPD performance, managers should consider more complex strategy configurations that act in complementary ways, in particular, customer-orientation complemented by either entrepreneurial- and/or IT-orientation. Moreover, more attention is needed to improving NPDPROC, as achieving gains in this area would contribute positively to firm performance.

This study presents initial evidence that, at least for firms in Thailand, resources must be configured by pursuing several strategic orientations simultaneously to enhance their dynamic capabilities in NPD, a strategic issue that has not been given much attention in previous literature.

This paper aims at investigating and uncovering the potential effect of exporters' market orientation upon international business relationship with particular emphases on cooperation, dependence, and relationship distance.

This is a quantitative study using a mail survey among Thai exporting firms in various industries. The final sample size was comprised of 388 strategic business units (SBU's) from 279 Thai export firms in over eight industries. Data were analyzed using structural equation modeling by means of AMOS 4.01.

Exporters' market orientation enhances the cooperation between the exporters and their major overseas distributor while minimizing their dependence and relationship distance. In addition, export performance is higher with greater exporter cooperation and lower relationship distance. Interestingly, the influence of exporter dependence on export performance varied among industry groups.

This study extends the domain of market orientation in international contexts by illustrating and empirically testing how exporters' market orientation serve as an antecedent to the development of business‐to‐business relationships, which ultimately enhances export performance. To business practitioners, this research pinpoints a particular challenge faced by exporters in managing their relationships with their overseas distributors in order to achieve better performance. Our findings show that market orientation plays a crucial role in developing and nurturing cooperative efforts with overseas distributors. As a result, exporters and their overseas distributors are recommended not only to form cooperative norms that are critical to joint marketing decisions and actions, but also aim to establish and maintain mutual dependence for their superior performance enhancement.

This study contributes to marketing and international business literature and provides insights to exporters by investigating the relationships among market orientation, behavioral aspects of business relationships and export performance. It also provides some evidence that market orientation practices are beneficial in enhancing cross‐cultural relationships, which have been given limited attention in previous literature.