Promotion Strategy and Thai Government Regulation on Alcohol Advertising

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Abstract

Promotion Strategy and Thai Government Regulation on Alcohol Advertising

Asso.Prof. Sirisopak Buraphadeja
Faculty of Commerce and Accountancy
Chulalongkorn University

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The total value of advertisement on alcoholic beverage in Thailand had been steadily rising averaged more than 2,000 million baht each year during 1999-2002 There were 1,891 million baht in 1999, 2,751.6 million baht in 2000, 2,191.6 million baht in 2001 and 2,360.4 million baht in 2002.

The value of alcohol beverage advertisement was 2,606 million baht , ranked to the fourteenth or 2.9 percent of total value of advertisement industry in 2005.

In 2004, the Thai government had issued legislation to ban the advertisement on alcoholic beverages that had more than 15 percents alcohol on television and radio between the hours of 5 a.m. and 10 p.m.. Thus , the value of alcohol advertisement has been started to drop. However, some television station extended the drama and soap opera program broadcasting after 10 p.m. to persuade advertising agency to buy the advertising time after 10 p.m. Then the targeted audiences both youth and adult could still watch the alcohol advertisement on television. The alcohol company has switched to below the line strategy instead of above the line strategy or advertising strategy such as using event marketing, extending the distribution channel on premises, etc.

Names of liquor companies will also be allowed to appear as a sponsor of a television program on the condition that they are not similar to their alcohol brands or contain alcohol related words such as liquor, brewery and winery, etc. Internet and direct-sales. Yet, the ban will not be applied to printed matter that is published overseas and foreign live telecasts.

There is some controversy on the matter of double standard on foreign brands will have an advantage over local brands. Also, the ban is likely to be diverted to other marketing activities, such as price cutting and exclusive brand distribution on premises like pub and bar.