The local beer industry in the Philippines is dominated by two major players namely San Miguel Brewery Incorporated

(95% market share) and Asia Brewery Incorporated.(5% Market Share) The total market value of the local beer industry is around Php 71,131,578,940.00 and a market volume of 2,777,492,344 bottles. The breakdown of market size and market value of the two companies are as follows:

San Miguel Brewery Incorporated Market Share: 95% Market Value: Php 67,575,000,000 Market Volume: 2,638,617,727 bottles Asia Brewery Incorporated Market Share: 5% Market Value: Php 3,556,578,947 Market Volume: 138,874,618 bottles The following are the key brands for San Miguel Brewery Inc.

San Miguel Light San Miguel Strong Ice San Miguel Pale Pilsen San Miguel Super Dry San Miguel Premium All-Malt Beer Cerveza Negra Gold Eagle Red Horse

The following are the key brands for Asia Brewery Inc.

Colt 45 Manila Beer Manila Beer Light Coors Light Coors Beer na Beer Lone Star Marketing Mix a) San Miguel Pale Pilsen

San Miguel Pale Pilsen has a slight hoppy note with a distinct bitter hop character. It has a well-balanced medium body and is smooth on the palate with a pleasant clean finish. Menu Tri-media campaign, Pinoys rich and vibrant heritage, making every celebration larger than life. its alcohol content is 4% by weight or 5% by volume. b.) San Miguel Premium All Malt Beer

San Miguel Beer Oktoberfest Lahat Kasali sa Saya Reflections TV commercial SMB takes you to the Philippines Canned offering

San Miguel Premium All-Malt Beer has a malty flavor with pleasant hoppy notes. It is full-flavored with a smooth balanced bitterness. It is slightly sweetish in taste and has medium to full body. This premium lager is made of 100% malt and contains 5% alcohol by volume. To relax and recover their zest for life. c.) San Miguel Super Dry

San Miguel Super Dry is more hoppy with slight citrusy notes. It has a moderate body and a crisp dryish taste. Its bitterness is smooth and balanced. A crisp dry taste with an elegant finish. The first and only dry beer in the Philippines. This brilliant light amber lager suits individuals who believe they work hard to live well. d.) Cerveza Negra

Cerveza Negra has roasted malty notes which extends to its taste. It is full-flavored and full bodied. Bitterness is moderate but still smooth. With its distinct color and flavor, Cerveza Negra suits those who separate themselves from the crowd; those who are nonconformists and unconventional. Bohemians, Romantics and Sophisticated. Cerveza Negra is the first and only local dark beer in the country. This beer is full-flavored and full-bodied, with its bitterness that is moderate but still smooth. It is composed of raosted malt, sugar, cereals, hops and brewing water with 5% alcohol content. Caramel flavored, full-bodied dark lager with a balance of moderate bitterness and sweetish roasted malt bouquet. e.) San Miguel Strong Ice

Slide Smooth Strike Strong Events (URCC) A high-alcohol pale amber lager characterized by pleasant estery notes and mild balanced bitterness. A brilliant ice-filtered beer that gives exceptional smoothness and a refreshingly cool afterdrink experience. Premium ice-filtered strong beer that has a smooth taste. f.) Red Horse Beer

Lifestyles, Tigas ng Loob, Rock Legends campaigns Sponsorship of various rock events and the Muziklaban Red Horse Extra Strong, Ito ang Tama Red Horse Beer is a beer with a distinctive, full flavored taste and extra satisfying strength of a world class premium strong beer. g.) San Miguel Light

Lightstyle Ladies Night Its San Mig Light Bucket Time. Mahabang habang inuman San Mig Light is the low-calorie beer that gives you the full beer flavor, the same beer alcohol, yet less filling. The perfect balance between right and light.

h.) Gold Eagle Beer

Magrelaks, Mag Gold Eagle campaign Gold Eagle Beer is moderately light bodied, yet flavorful, hopped just enough for a little bite on the finish bringing out an over-all easy drinking character. Low price low alcohol beer. It has a pale amber hue, moderately light bodied, yet flavorful, subtly hopped just enough for a little bite on the finish that brings out an overall easy-drinking character. i.) Beer na Beer

Smooth, clean refreshing beer taste Excellent value for money 5.0 % Alcohol Content by volume

Laging Tapat Sayo j.) Colt 45

Colt 45 is Americas leading strong beer. In the Philippines. Colt 45 is the strongest beer in the market with an alcohol by volume content of 7.2% Colt 45 is known throughout the world for its distinct bold taste and strong kick. Strong Beer for Real Men k.) Lone Star Light

Mindanao and Visayas Step Into a New Light Distinctively smooth, crisp tasting, low calorie beer that hits right and feels right Affordable price 5% Alcohol Content by volume l.) Coors Light

Taste the Cold Brewed from 100% natural ingredients. Crisp taste that is extremely refreshing and easy to drink beer after beer. The only brand in the Philippines that uses the Thermochromic Ink technology which detects the best temperature to drink the beer. Calorie Content: 95 calories/serving. 4.1% Alcohol Content m.) Coors Original

Taste The Original Slow-brewed from premium ingredients to be crisp and clean. Golden lager that is full-flavored respected for its unique taste. Calorie content: 135 calories per serving

n.) Manila Beer

Taste All-Malt Difference First and only super premium all-malt strong beer. It uses special yeast and noble hops to create a distinctive and super premium flavor and aroma. It is made only from the finest ingredients: premium malt, hops and water. No additives (like cereals, cereal grains, and sugar) which are added to some beers to lower the cost; but unfortunately, also lower beer's quality. It gives full-bodied flavor, clean taste and clean hit. A premium taste in every gulp. 7% Alcohol Content by volume o.) Manila Beer Light

Taste The All-Malt Difference It has 30% less calories so it feels light on the stomach Made from 100% Malt. No additives (like cereals, cereal grains, and sugar) which are added to some beers to lower the cost; but unfortunately also lowers the beers quality. It gives full-bodied flavor, clean taste and clean hit. 5% alcohol content by volume The marketing warfare in the local beer industry is between San Miguel Brewery Inc. and Asia Brewery Inc. How do they compete against one another?

1.

Marketing Tools

San Miguel Brewery Inc. Asia Brewery Inc. Promotions

Events Sponsoring Public Awareness Campaigns Tri-media advertising Non-traditional advertising Corporate Social Responsibility Events Sponsoring, Commercials Print Ads Pricing

Premium Discounted

Discounted

Product

Tailored to different segments Tailored to different segments Place

More distributed and more (5) breweries in key strategic points Not that complete product line (supermarket, bars)

Strategies Used San Miguel Brewery Inc. Asia Brewery Inc.

Create Awareness Understand the Markets preferences Target more segments Copy the market leader Target more segments Do better than competition

Action Plan San Miguel Brewery Inc. Asia Brewery Inc.

Create events (Octoberfest) Sponsor Events Commercials using personalities Packaging Sponsor basketball team (San Miguel Beermen, Barangay Ginebra Kings) Create new brands of beer

Sponsor events TV commercials (Colt 45) Packaging (Coors Light) How is warfare waged in this Category San Miguel Brewery Inc. is currently on the defensive end because they continue to launch new products like the San Miguel Beer Premium All-Malt beer. Red Horse beer and San Miguel Light performed well last 2009. San Miguel Brewery is also trying to increase its slice of the pie by targeting new market segments in the coming years. Asia Brewery Inc. is on the offensive end. They are trying to match with the products of San Miguel Brewery Inc. they tried launching products like Colt 45, which is doing well against San Miguel Brewerys Red Horse because its positioned as the Strongest Beer in the Philippine market. Its price is also cheap compared with Red Horse.