Sample Assignment on Chang Beer

Group 5: CHANG BEER
Names of group members: FAHRIDA KALI 1907150004
: STACY GONCALVES 1907090006
: AMARDEEP SINGH 1902260032
Class: OPERATIONS MANAGEMENT
Lecturer: ANGSAYA SIEPONG
Date: 18/05,2021
Fahrida Amardeep Stacy

Executive summary
This beer will be a whole new category for Chang that they have not explored. They
have the 320ML and 500 ML cans and the 320ML and 620ML beer bottles. So our
product will be released in both the can and the bottle size. Now the flavor will also be a
whole new dimension to Chang and their product range. Chang is the top local brand in
the nation of Thailand and it will be the ideal campaign for the woman in the nation to
come out and purchase this beer. This will result in a huge increase in sales especially
even out the ration between both the genders and their consumption of beer. Chang
Beer has decided to launch a new beverage named Rose Beer, which is aimed
primarily at women. While there is a booming demand of women who enjoy drinking
beer, traditional beer is a little harsh on their taste buds and is perceived as a more
muscular beverage. Among the major rivals in the beer manufacturing industry, a few,
such as, are developing more beer flavors and variants, which is becoming a common
trend. The benefits of launching a new flavored beer that has not previously been in
their pipeline are that you are aiming a larger number of people, which has the power to
bring in more revenue, it stands out from the crowd and pulls good attention to the
organization because you are constantly growing your portfolio of beers to complement
the advancements and customer tastes, and it can increase the cash flow.
Nevertheless, there are problems associated with introducing a new flavored beer, such
as low sales and launch failure, a lack of understanding of consumer tastes, and the
threat of competing brands of the same product on the market. To make the Rose beer
stand out from its rivals, we did the following: To make the drink more feminine and
appealing to women, it will be packaged in a glass bottle shaped like a woman's body
silhouette. Since women are more aware of energy expenditure, the drink will be
available in a variety of sweetness amounts, which will cater to the consumer.

Table of content
 Introduction to new product
 Analysis of product design process
 Idea generation
 Feasibility study
 Rapid prototyping
 Functional design
 Production design
 Equipment
 Final design and process plans
 Recommendations
 References


Introduction to new product development
Our company is Chang, and our new product introduction is the women’s editions
Rose beer in an hour glass silhouette bottle. This beer will be a whole new category
for Chang that they have not explored but is a big emerging Chang has their famous
beer that they have been selling for several years. It is made from water, barley, yeast,
and hops. They only have one product which is sold in 4 different sizes and shapes of
bottles. They have the 320 Ml and 500 ML beer cans and the 320 ML and 620Ml beer
bottles. As you can see that they haven’t introduced any new product in another range
except the same product in different sizes. So our product will be released in both the
can and the bottle size. So we will have a 12Oz can and a 400ML bottle for our
women empowered campaign. This beers shape will also be similar to the one of a
coke bottle or women silhouette body shape. Therefore more slimmer and have curves
on the bottle which resembles a woman’s waist. Now the flavor will also be a whole
new dimension to Chang and their product range. This beer will be sweeter than their
regular local brew however Chang plans to launch it in different sweetness levels and
callory build up as women might be more conscious about their weight. The
ingredients aimed to reach that perfect taste to the beer will include additionally
include red wine grapes, malt, organic syrup and malt. Appearance plays a big role in
human minds. Therefore when looking at a pink beer, our brains will automatically
connect it to a more feminine and possibly sweeter flavor than their yellow colored
beer for women. This product will be called Chang FOR HER ROSE BEER. This
beers goal is to increase woman consumption of beer and tap into the market that
many Thai beer giants havnt thought of yet. Although the beer is targeted at both the
genders. It is a common stereotype for men to drink beers and woman to drink a
sweeter cocktail. So keeping that in mind we came up with a sweet beer which will
target more woman in the society. Chang is the top local brand in the nation of
Thailand and it will be the ideal campaign for the woman in the nation to come out
and purchase this beer. This will result in a huge increase in sales especially even out
the ration between both the genders and their consumption of beer
Analysis of Product design process

Chang beer has decided to introduce a new a new beverage which is called Rose Beer mainly
targeting the women population as there is a growing market of women who enjoy drinking beer
however standard beer is a bit rough on their taste buds and is seen as more masculine drink.
Among the main competitors in the beer production market, a few such as are coming up with
more variations and flavors of beer which is becoming a popular trend. The advantages of
launching a new flavored beer which has not been in their pipeline is that you are targeting a
wider population which has the potential to bring in more revenue, it catches the eye and draws
good attention to the company as you are continuously growing your portfolio of beverages to
match the developments and customer tastes and it can increase the company revenue. However,
there are risks in launching a new flavored beer which might include risk of poor
sales and launch failure, lack of sufficient knowledge of consumer preference and
threat of current brands with the same drink in the market. The launch and
product design must be unique to remain competitive. To ensure the Rose beer
stands out among various other competitors we ensured the below:
 Rose beer will come in a glass bottle shaped in the form of the silhouette
of a woman’s body to make the drink more feminine and target women.
 The drink will come in different ‘sweetness’ levels as women are more
conscious about calorie intake therefore it will appeal to the market.
 To make us more competitive and ensure our product is cheap, we are
proposing reverse logistics of empty bottles through vending machines or
stores for a discount on their next drink. This protects the environment as
well reduce costs for Chang.
To design and develop a new product properly, Chang went
through the below steps to come up with he designs and
product development.
1. Idea Generation
To come up with a successful product there is a usual
catalyst and brainstorming through idea generation

which can come from both within the company or can have external influence. At this
stage, Chang got the ideas through extensive market research using primary and
secondary sources, idea generation of internal R&D design team, suggestions from
customers as well as through benchmarking themselves against their top competitors to
compare their products and portfolios and not last but least they also created a perceptual
map to see the positioning of various brands as well as their own in the consumer’s eye.
This will show a gap in the market.
According to Chang research statistics, 40% of women drinkers in Thailand drink beer
however when informal interviews and questionnaires were conducted, the
beer drinkers admitted that Chang is a bit too rough or does not taste that
good and it is more of a man’s drink, but they drink it
because it is widely available and cheap. Some women
admitted they are reluctant to drink beer often as it is high
in calorie intake and they are conscious of their figures
and health. All this information is essential to Chang as it
shows why women drink beer, and it also uncovers
women preferences and considerations when choosing
their alcoholic beverages. From this information, a gap in
their portfolio exists for a beverage that tastes good, low
on calories, more feminine and widely available. This was
their starting point. While these statistics are important
and give Chang an insight into what women preferences
are, it does not speak for all women. The rose beer can be 3.5% ABV, comes
in zero to high sweetness and will be pink in nature and have calorie intake. A product
concept is as per the diagram to the right. It will come in both can and glass bottle.
2. Feasibility Study
A major and one of the most important parts of product design analysis and development Is the
feasibility study as this will analyze if the product will be successful and identify and evaluate
possible challenges and obstacles that will be faced. It analyses competitors, market opportunity
and economic situation. This stage needs critical thinking to evaluate the benefits and drawbacks
of the proposed launch and development of the product taking into consideration internal and
external influences. Questions that are associated in this stage are usually:
1. Is there a growing demand for Rose Beer?
2. Can our product be beat and be more competitive than that of our competitors?
3. What is the unique selling point of our product? Can it outshine the current existing
products?
4. Taking the financial aspect into consideration, does the economy and product
development cost make the project worth taking on and measuring against projected and
estimated sales, will it be profitable? What are the legal constraints?

To answer the first question, there is a growing demand for Rose beer and flavored beers in
Thailand and around the world. Some of the brands that already infiltrated this market are
Hoegaarden and wish beer. Hoegaarden recently launched its rose beer in Thailand and
according to the statistics their sales were quite favorable. Hoegaarden recently entered the Thai
flavored beer market and 50% of sales came from women with the remaining 30 to be men and
20 to be the LGBTQ community. This shows us there is a growing demand for flavored beer in
Thailand and another interesting fact that was pointed out was that most women preferred this
alcohol because it had a less alcohol volume content which is 3% compared to most of their
traditional beer that was 4.9% ABV which we can take into consideration when creating our
beverage. However, while this shows there is a growing market, this is a foreign brand, and it
caters for craft beer lovers unlike Chang. They just entered the market recently therefore forecast
might not be accurate enough to predict the future trends. When planning to launch this product,
Chang needs to take into consideration that sales might not increase instantly and growth will
take time because it is a new palate, one that is not very familiar to Thailand hence while demand
is growing, it might take time to take off. Even if the demand is not as high as what Chang would
have wanted to, all markets emerge from somewhere and its better to be among the first brands
to launch it compared to entering a saturated market in future.
Now that Chang has established that there is a slowly but emerging market of flavored beer in
Thailand, they need to establish the competitiveness of their proposed product against their
competitors and see if their products can outshine the existing competitors. Taking a closer look
at some of the competitors such as Hoegaarden, while they have a customer base established, one
of their pit falls are that their beverages are costly and this might be because of brand positioning
or high cost of production however if Chang was to launch its Rose beer at a cheaper cost
(ensure low production and distribution cost) and launch it with a new bottle design and ensure
cheap but wide marketing campaigns, the product can outshine its competitors. Chang already is
one step ahead of some of their competitors especially Hoegaarden because Chang is already a
proud Thai brand that is widely known and has a well-established distribution network and
factories in Thailand which will make their capital cost lower and easier to produce. Chang main
local competitors Leo and Singha offer only one mainstream drink therefore this is a gap for
them to gain more market share.
When taking legal aspects and financials into consideration in relation to the production,
distribution, and sales projection, it is important to make sure that the timing and scheduling will
make the launch worth it and will be profitable. Firstly, to address the economic condition,
during Covid Thailand economy has contracted by an average of 5% in and consumption in
households reduced on average of 3.2% however as a projection the Thai economy was projected
to grow by a margin of 4.1% in 2021 and 3.6% in the year 2022(Major Impact from COVID-19
to Thailand's Economy, Vulnerable Households, Firms: Report ,2020). These projections are
important for Chang when taking into consideration when to launch and whether their product
will be profitable. Considering the contraction of economy and GDP as well as legal restrictions
such as the ban of alcohol sales in restaurants, pubs and online, it is not advisable to launch their
rose beer as it will not generate much profit as there is less disposable income and marketing
opportunity to gain traction. However, because people are at home more often and need to
relieve their stress and relax there might be hidden statistics to show the amount of alcohol
consumption in households. There is not sufficient evidence to prove this, and more research is

needed to prove this hypothesis. As a suggestion, they should plan their launch however wait for
the pandemic to ease especially with restrictions in order to get a return on their investment.
Chang, under Thai Bev, already has established factories and plants, a secure and strategic
distribution network and marketing networks therefore little capital injection would be involved
however due to the design shape of the bottle they would need to procure sufficient machinery to
customize the bottle unless they outsource it.Outsourcing might be cheaper in the short run as it
avoids capital injection however in the long run it is not feasible because its also prone to
external disruptions. They will need a nutritionist to formulate calorie intake of the drink as well.
While there will be needed to invest quite a bit, it is easy for them to get a return on their
investment as they are not starting their whole business from scratch, they have established
breweries which are licenses, their own logistics chain, distribution chain and strong marketing
and business development teams. As a suggestion, they should test the market with a small
amount.
3. Rapid Prototyping
Rapid prototyping is simply defined by the fast creation of mockups of the final product using
technology or software such as CAD etc. to create a visual image which can then be
demonstrated physically through translation into a physical mockup from 3D printing if in high
fidelity or basic modeling if low fidelity. This stage is important because to beat competitors
there is need for a faster and quicker product development, it also allows the company to revisit
their design before producing in mass to get validation for the design, form as well as function
and fit. It also gives the final consumer an accurate idea of what the product will look like and
feedback can be generated. However, some disadvantages of rapid prototyping are it is an added
cost, it might not be of the best quality compared to the final product and if shown to a customer
they might mistake it for the product, and it can be expensive as you must revisit and correct the
prototype continuously.
First Chang will look at the form design. The design will be a silhouette of a woman as a bottle
which will be transparent with a pink beverage inside, it will be dimensions and specifics will be
as follows:
Glass bottle:
Volume: 400ml
Metal cap width 1cm
height:12.8cm
Width: 5cm
Bottle neck: 3cm
Indent: 5cm
Material composition: glass bottle, metal cap, plastic
label
Size of label: length: 10 cm (wrap round)
Width of label: 6cm

In terms of functional design, the glass bottle has an indent in the the body of the bottle not only
to illustrate a silhouette of the female body, but it also gives for easy holding of the bottle. Most
of the time your full hand cannot wrap around the bottle therefore by having an indent helps an
elegant grip of the bottle especially for women with smaller hands. The twist
metal cap proves for easier opening as you do not need much strength and it
also keeps the fizz in the bottle to not make the beer flat. The can is also
slightly narrower than an average can to provide an easy grip and our can also
has an innovative way of opening and closing a can. To open and close a can
push the flick to the left or to the right. This is an easier way compared to the
metal putt levers which are harder for women to open because of artificial
PVC nails and are not user friendly. It also allows for them to close the can in
they want to drink it later. This are all under easy of usability.
When it comes to production design, we used
simplification as a production process by reducing the
number of assembly points in the production process as
well as the number of components in the production
especially in the glass bottle filling production. As a
company, outsourcing the bottles and cans is the best
way forward as it will be expensive on capital cost and
training cost as well as expert laborers to handle glass
bottle production Chang will outsource the
customization of glass bottles to Thai glass industries
Public limited and cans to Royal Can industries Co. in
Thailand. Because of economies of scale, when we do
launch it, we can have better bargaining power due to
proposal of mass production. Filling up the bottles and,
we use simplification and standardization because it does not need any modification and the
same method can be used for every bottle and can.
Aluminum Can:
Volume: 12 Oz
height:4.75 inches
Width: 2 inches
Material composition: 100% aluminum composition
so, can be recycled.
Size of label: length: 11 cm (wrap round)
Width of label: 7cm

For the final design and process plans, we used the same design as it was more appealing and
functional for the end user. The specifications can be as per below.
For Chang process plans, we plan to source and procure as much of the ingredients and
components locally and we chose this because we want to empower local producers, it reduces
our logistics costs and helps us remain more competitive. Some of the ingredients are yeast, malt,
rose syrup, hops, extract, and corn sugar. For equipment we used:
 Base glass filling machine
 Can filling machine:
 Treatment system for the water
 Mixing system as well as preparation for the
beverage
 Label machine
 Carton packaging operating machinery
 A system for the palletization
 A conveyor system for rotation
We will our own Thai Bev logistics to transport the
raw materials and we use our own warehouses to store
the outsourced bottles from Thai Glass industries
Public limited. For the technology and software that
controls the machine we will use the PLC controller
software which will instruct the machines to
efficiently fill the bottles and cans. Other software
used in the product development are CAD – computer
aided design as well as CAM- Computer aided
manufacturing. To ensure quality and productivity,
we will use a KPI process for the workers in the

factory and delegate work to specific workstations and have a hierarchy to oversee the operations
such as supervisors. The workforce will be paid monthly with a base salary.
For the review of design quality, we used the Fault tree analysis to find the inter – relationship of
the errors, especially in production. For quality management we use the lean six sigma model
to eliminate any waste, we insured our suppliers and venders are ISO certified to make sure all
our bottles and cans as well as other ingredients came from reputable companies, we will also
use a TQM, Total quality management system to ensure quality of our product is maintained
and this form is customer centric to make sure it meets the expectation and requirements of the
customer.
Chang also designed the product in a way that is beneficial to the environment. Our cans are
100 percent aluminum therefore they are recyclable and will not go to dump grounds. Our
reverse logistics department will handle can returns for possible discounts for customers or
incentive to ensure our company reduces greenhouse gasses and destruction of the environment.
In future if we want to ship our product overseas, we will use sea freight as it has less greenhouse
emissions compared to most modes of transport and for our sourcing, procuring from suppliers in
Thailand is more environmentally friendly. For reverse logistics and collection of bottles that
need to be recycled and cans, we can use vending machines where consumers put their can and
they get an incentive or points for their next purchase or with glass bottles, when they want to
purchase their new drink, if they return the bottle, they get a discount. Our distribution team will
then take theses bottles for recycling/ washing and refilling.
Recommendations:
To make recommendations for Chiang beer especially if they plan to launch their rose beer, we
recommend that they launch it after the covid 19 pandemic because of the recession and less
disposable income therefore their launch will not be as successful. We also suggest that when
making their rapid prototype, they use high fidelity and test the market, it might cost more but
you have a real feel of what the product might be like in the final process and it gives a potential
end customer a final feel where they can give constructive criticism and feedback.

Recommendations
References
Appendix