Brand Line Positioning in the Norwegian Mass-Produced Beer Market a Comparative Brand Association Study
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Norwegian School of Economics Bergen, Spring 2018 Brand line positioning in the Norwegian mass-produced beer market A comparative brand association study Øystein E. Rakap Supervisor: Dr. eocon Leif Egil Hem Master’s thesis, Marketing and Brand Management NORWEGIAN SCHOOL OF ECONOMICS This thesis was written as a part of the Master of Science in Economics and Business Administration at NHH. Please note that neither the institution nor the examiners are responsible − through the approval of this thesis − for the theories and methods used, or results and conclusions drawn in this work. Abstract The purpose of this thesis is to compare the image positioning of two Norwegian beer brand lines in terms of consumer perceptions. Despite recent popularity of microbrewery research, it argues that industrial breweries are more profitable, and should not be neglected. An introduction to the realm of brand equity is provided. It poses three research questions about two brands: 1) which associations are most frequently reported; 2) which associations differentiate the brands, and; 3) do they drive brand attitudes? Thereafter, information about the product category, the Ringnes and Hansa brand lines and owners, distribution chain and recent developments is disclosed. Consumer-Based Brand Equity and other theory relevant to consumer behavior and brand management is presented. Following the theoretical framework, two hypotheses are developed, deducted from publicly available brand information. A combined-methods approach was applied to collect primary data in two processes. To answer the first research question and develop additional hypotheses, a pilot study (n = 21) was conducted using semi-structured interviews on a convenience sample consisting mostly of students. It was finalized by developing a new set of three hypotheses. The main study (n = 342) utilized a survey strategy to collect quantitative data to be used in the analysis. Self- selected questionnaire respondents were automatically assigned a brand condition for comparison purposes. The process of each study was presented separately, including discussions of validity, reliability and statistical assumptions. Indications of perceived brand differences were found and summarized comparatively. All five null hypotheses that the brands were perceived to be equal, were rejected in favor of Hansa. Significant relationships between test variables and brand attitude were found by correlation, and potential drivers of brand attitude were explored using multiple regressions. Findings indicate that Hansa is positively differentiated from Ringnes by unique heritage and sports associations, however, generalizations cannot be made. Implications of findings are discussed along with limitations and recommendations. Acknowledgements My specialization is in the Marketing and Brand Management profile. Consequently, this thesis is written as a mandatory part of my master’s degree, making up 30 ECTS. First off, I would like to extend my sincere gratitude to my thesis supervisor, dr. oecon Leif Egil Hem for his patience, expertise and always-encouraging demeanor. He has made himself available and provided clear guidance throughout what turned out to be a lengthy writing process, helping me to stay focused and materialize this thesis. I also found both of his courses, Integrated Marketing Communication and Brand Equity, highly educational and enjoyable, and would generally recommend them to other students, especially in the MBM profile. Secondly, I would like to thank my parents for their constant love and support which has facilitated my studies. Also, I would like to thank Lene Baldersheim at Section for Quality Assurance for assisting in distributing the questionnaire to a larger sample. Finally, I would like to thank everybody who participated in interviews, and all those who responded to, tested or helped distribute the questionnaire. Table of Contents List of tables: ................................................................................................................................ List of figures: .............................................................................................................................. Chapter 1: Introduction ........................................................................................................... 1 1.1 Research question ................................................................................................................. 2 1.2 Thesis outline and content .................................................................................................... 2 Chapter 2: Background Information ..................................................................................... 4 2.1 Norwegian Alcohol Legislation ........................................................................................... 4 2.2 Advertising ........................................................................................................................... 5 2.3 Distribution Channels and beverage categories ................................................................... 6 2.4 Product category - Beer ........................................................................................................ 7 2.4.1 Norwegian beer history and recent trends ..................................................................... 8 2.4.2 Types of breweries ......................................................................................................... 9 2.4.3 Competitive situation ................................................................................................... 10 2.5 Beer market leaders ............................................................................................................ 10 2.5.1 Hansa Borg Bryggerier ................................................................................................ 11 2.5.2 Ringnes ........................................................................................................................ 12 2.5.3 Recent developments and motivation .......................................................................... 12 Chapter 3: Theoretical Framework ...................................................................................... 14 3.1 Brand Knowledge ............................................................................................................... 14 3.1.1 Brand awareness .......................................................................................................... 14 3.1.2 Brand image ................................................................................................................. 15 3.1.2.1 Associative Networks ........................................................................................... 15 3.1.2.2 Association types .................................................................................................. 16 3.2 Brand identity and personality: .......................................................................................... 21 3.3 Brand Strategy .................................................................................................................... 22 3.4 Hypotheses ......................................................................................................................... 25 Hypothesis 1: Unique sports association .............................................................................. 25 Hypothesis 2: Unique heritage association ........................................................................... 26 Chapter 4: Methodology ........................................................................................................ 28 4.1 Research overview ............................................................................................................. 28 4.1.1 Research approach ....................................................................................................... 28 4.2 Pilot study ........................................................................................................................... 28 4.2.1 Research purpose and approach .................................................................................. 29 4.2.2 Pilot study design ......................................................................................................... 29 4.2.3 Sample selection .......................................................................................................... 31 4.2.4 Execution ..................................................................................................................... 32 4.2.5 Hypotheses (post pilot study) ...................................................................................... 33 Hypothesis 3: Product appearance .................................................................................... 34 Hypothesis 4: Sports spectating as consumption context ................................................. 34 Hypothesis 5: Fit with healthy lifestyle as user imagery .................................................. 35 4.3 Main study .......................................................................................................................... 36 4.3.1 Research Design .......................................................................................................... 36 4.3.2 Research Strategy ........................................................................................................ 36 4.3.3 Data collection and sample .........................................................................................