Rethinking ‘value’

NIQ’s On-Premise research shows Southeast Asian consumers are sharply focused on value—but beverage brands don’t have to rely solely on price to secure sales.

Cost is a key consideration in making beverage choices across Southeast Asia. In the Philippines, 48% of consumers cite value for money as an important factor in making their drink choices. In Malaysia, the importance of value for money has jumped by +10 percentage points compared to 2023, while Thailand and Vietnam have also seen increases of 4 percentage points. This growing focus on price has led many consumers to rationalise their drink choices—both in terms of categories and brands—intensifying competition among suppliers and venues.

This makes it more important than ever for suppliers to give consumers compelling reasons to choose a brand that provides value. However, price is far from the only lever that businesses can pull. NIQ’s expert insights—drawn from the exclusive On Premise User Survey (OPUS) of more than 8,000 On-Premise consumers in some of Southeast Asia’s biggest countries—reveal the elements of strategies that can resonate the most.

Focus on brand reputation 

Pressure on spending means many consumers are prioritising brands they know and trust. In Indonesia, more than a quarter (26%) of consumers say reputation is important in their choice of spirits brands (+3pp vs average SEA On-Premise consumer), making it even more significant than value for money. In a country with a fast-growing middle class and concentration of Spirit consumption in key cities/regions, targeted education initiatives by suppliers to both consumers and operators can pay dividends. A focus on the quality of brands based on heritage credentials can secure trust and loyalty to provide greater value. Real success comes when the stories are authentic.​ 

Reliability is a major element of brand reputation, which makes it important for brands to emphasise their consistency and dependability. In Indonesia and Singapore, trustworthiness and reliability rank only fifth in consumers’ perceptions of spirits brands—and suppliers that change those perception can increase engagement and boost their value-for-money messages.  

Emphasise quality 

Providing first-class experiences is the best way for brands to communicate good value to consumers who are increasingly choosing quality over quantity. More than three quarters (77%) of those in the region say they prefer quality drinks over cheap options when they go out, and the number is even higher in countries including Indonesia (83%) and Vietnam (80%). In Thailand, 78% of consumers would prefer to spend their money on one or two high quality drinks—far more than the 22% who would choose three or more lower standard ones. Positioning the right premium options in the right territories and venues is key. 

Stand out on menus 

Menus are a powerful tactical tool to influence on consumer choices. Around a third (34%) of consumers in Thailand (34%), Indonesia (31%) and Malaysia (31%) say they are an important factor in their selections.

Collaborating with venues on compelling stories for menus can draw attention to brands and educate consumers on their quality. This also applies to digital menus, as large numbers of consumers across Southeast Asia check a venue’s online drinks menu ​before they visit.

NIQ’s research provides deeper insights into the kind of menu content that resonates with consumers, like images, tasting notes and details of ingredients. Suggestions for food pairings and nutritional information are among the other aspects to consider. It is also important to use appealing language for menus, and NIQ’s data highlights the most influential words—like ‘fresh’, ‘premium’, ‘exclusive’ and ‘authentic’.

Secure recommendations 

NIQ’s research shows how bar staff can have a big influence on their guests’ decision-making​. Just over a fifth (21%) of consumers in Southeast Asia say bar staff recommendations are an important factor in their choice of spirits.

Supporting bartenders with training and knowledge can be a very effective way to win their endorsements. In countries including the Philippines, it’s also important to secure recommendations from family and friends, and group promotions can turn single customers into powerful brand advocates.

Optimise social media 

The On-Premise consumer journey often starts online, where consumers form their first impressions of beverages. A quarter (26%) of Indonesians say that seeing a venue post about a drink on social media can help them decide what to drink, and 44% report seeing drinks brands mentioned or advertised on social media in the last month. Globally, two-thirds (66%) have purchased food or drink that they have seen on social media or online​. 

For suppliers, this is an indication of the value of advertising on social media. Highlighting brand heritage stories, production processes, taste profiles and serve suggestions can all reinforce messages around quality and value. As with menus, finding the right language and tone of voice is vital. However, with intense competition for eyeballs on social media, ads need to stand out from the crowd and be memorable. 

Target different need states

NIQ’s research highlights the wide variety of occasions that are enjoyed in Southeast Asia’s On-Premise—especially celebrations and relaxed drinks. Understanding the needs of these visits from country to country can help suppliers and venues craft the right drink ranges.  

For example, in the Filipino On-Premise, 44% of consumers say relaxation motivates their drink choices to foster relaxation, but they are much more likely than the Southeast Asian average to celebrate and have fun. Ambience and atmosphere are instrumental in meeting these needs, and 39% of Thai consumers think these qualities are an important factor in their choices.

It’s also essential for venues and suppliers to collaborate on diverse product ranges that offer choices suited to every occasion, from casual drinks to important celebrations. 

The expert view

James Phillips, Head of BevAl APAC, said: “Cost concerns are clearly impacting consumers across Southeast Asia. But people are still eager to enjoy the On-Premise and it’s very important to remember that good value doesn’t have to mean low prices. Brands can generate trial and trade-up in all sorts of ways, though the effectiveness of strategies varies by market in SEA.

Crucial to setting an On-Premise strategy is investment into a deep understanding consumer of needs and habits. It is clear need states, reputation, value, On-Premise marketing tools and staff all impact the consumer choice in the channel. OPUS SEA is the ideal deep dive to explore the highly important On-Premise to set the most effective channel strategy to win.”