Professional Documents
Culture Documents
Industry Basics...........................................................................................................4
Alcohol Market.......................................................................................................4
Location of consumption & Sale...........................................................................4
Business hours prescribed in Maharashtra.........................................................5
Universe for selling Beer in Mumbai....................................................................5
Beer..............................................................................................................................6
Different Strokes of Beer.......................................................................................7
Alcoholic strength of Beer.....................................................................................8
History of Beer.........................................................................................................10
General History....................................................................................................10
History of Beer in India.......................................................................................11
Overview of Indian Beer Market ...........................................................................13
Market Definition.................................................................................................13
Market Segmentation I........................................................................................14
Market Segmentation II......................................................................................14
Market Share .......................................................................................................15
Comparison of Indian & US Beer Industry...........................................................16
Indian Beer Industry...........................................................................................16
US Beer Industry .................................................................................................17
Determinants of growth of Indian Beer Market...................................................18
Indian Brewing industry.........................................................................................23
Breweries in Maharashtra...................................................................................23
Mashing.................................................................................................................27
Sparging................................................................................................................27
Boiling...................................................................................................................27
Fermentation........................................................................................................28
Pasteurisation.......................................................................................................28
Packaging..............................................................................................................28
Ingredients of Beer...................................................................................................30
Water.....................................................................................................................30
Malt.......................................................................................................................30
Hops.......................................................................................................................30
Yeast......................................................................................................................31
Clarifying agent....................................................................................................31
Categorizing beer by................................................................................................32
Yeast......................................................................................................................32
Ale..........................................................................................................................32
Lager.....................................................................................................................32
Lambic beers........................................................................................................33
Pale and dark beer...............................................................................................33
Serving......................................................................................................................34
Draught and keg...................................................................................................34
Cask-conditioned ales..........................................................................................34
Bottles....................................................................................................................34
Cans.......................................................................................................................34
Vessels....................................................................................................................35
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Serving temperature................................................................................................35
By-products / Waste.................................................................................................36
Taxation Policies ......................................................................................................37
Excise Duties.........................................................................................................37
Octroi ...................................................................................................................37
About APB................................................................................................................38
Corporate Profile.................................................................................................38
Fraser & Neave, Limited ....................................................................................39
Heineken ..............................................................................................................39
Members of the Asia Pacific Breweries Group......................................................40
Senior Management of APB....................................................................................42
APB - INDIA............................................................................................................43
Core Values ..........................................................................................................43
Locations of Operation........................................................................................45
Organization Structure............................................................................................46
Brand Portfolio .......................................................................................................47
Tiger Beer.............................................................................................................47
Baron's Strong Brew ...........................................................................................48
Cannon 10000 Super Strong Beer .....................................................................48
APB International Brands......................................................................................50
Heineken ..........................................................................................................50
ABC Extra Stout .............................................................................................50
Anchor ..............................................................................................................50
Marketing Mix of Tiger Beer..................................................................................51
Product..................................................................................................................53
Price ......................................................................................................................58
Factors affecting pricing decisions ................................................................58
Primary considerations in price setting ........................................................58
Pricing in Mumbai...........................................................................................59
Place......................................................................................................................61
Distribution Network.......................................................................................62
Distributors of APBI........................................................................................63
Promotion.................................................................................................................65
Major Tools in Marketing Beer......................................................................65
Marketing Activities at APBI .........................................................................65
Sales Promotion....................................................................................................71
Various sales promotions techniques adopted at APBI................................74
Permit Room Activation..................................................................................76
Tracking Effectiveness of sales promotion.........................................................78
Designing a Powerful Sales Promotion..........................................................78
Packaging .................................................................................................................79
Beer Advertising ......................................................................................................82
Surrogate Advertising in liquor industry ..........................................................83
Surrogate for Tiger Beer - Tiger Translate .......................................................84
Why Tiger Translate in India..........................................................................84
Competitors of Tiger Beer in Mumbai ..................................................................86
Carlsberg .............................................................................................................86
Budweiser..............................................................................................................87
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Kingfisher Mild....................................................................................................89
Fosters ..................................................................................................................91
Health effects............................................................................................................92
Community & Environment ..................................................................................94
A Responsible Beer Company ............................................................................94
Asia Pacific Breweries Foundation.....................................................................94
Responsible Alcohol Consumption.....................................................................95
SWOT Analysis of APBI..........................................................................................97
Why Beer better than Milk.....................................................................................99
Top 10 Reasons Beer is Good for your Health ....................................................101
The Future..............................................................................................................104
Conclusion .............................................................................................................106
Questionnaire.........................................................................................................108
Bibliography & Webliography .............................................................................112
3
Industry Basics
Alcohol Market
1. Spirits –Whisky, Rum (Dark, White) Vodka, Brandy, Gin, Ready To Drink
(RTD)
4. Country Liquor
4
Business hours prescribed in Maharashtra
Business hours for Policy
E & E – II (Beer Bar & Wine Bar) 9.00 a.m. to 12.00 Midnight
Institutions 450
Beer Shoppee 60
5
Beer
Beer is the world's oldest and most popular alcoholic beverage. Some of the
earliest known writings refer to the production and distribution of beer. It is
produced by the fermentation of sugars derived from starch-based material—the
most common being malted barley; however, wheat, corn, and rice are also widely
used, usually in conjunction with barley.
The starch source is steeped in water. Enzymes in the malt break down the
starch molecules, producing a sugary liquid known as wort, which is then flavored
with hops, which acts as a natural preservative. Other ingredients such as herbs or
fruit may be added. Yeast is then used to cause fermentation, which produces
alcohol and other waste products from anaerobic respiration of the yeast as it
consumes the sugars. The process of beer production is called brewing.
6
Different Strokes of Beer
STOUT Dark and heavy, with roasted unmalted barley and, often, caramel
malt or sugar
BITTER Highly hopped for a more dry and aromatic beer. It is pale in colour
but strong
DARK BEER Barley is kilned for a longer period of time which creates richer
flavours
FRUIT BEER Fruit , usually berries, is added either during primary fermentation or
later
WHEAT BEER Malted wheat and barley are used for this German style beer
(WEIZEN)
A great many beers are brewed across the globe. Local traditions will give
beers different names, giving the impression of a multitude of different styles.
However, the basics of brewing beer are shared across national and cultural
boundaries.
7
Alcoholic strength of Beer
While we all love the taste of beer, it's the alcohol content thats responsible
for beers standing in most societies. Its the alcohol content of beer that makes it the
number one social lubricant. The alcohol content of beer is generally denoted by the
"percent alcohol by volume", or % ABV. "Percent alcohol by wieght", % ABW,
could also be used. It's easy to convert between them. ABW = 0.8 × ABV.
Beer ranges from less than 3% alcohol by volume (ABV) to almost 30%
ABV. The alcohol content of beer varies by local practice or beer style. The pale
lagers that most consumers are familiar with fall in the range of 4–6%, with a typical
abv of 5%.
"Low alcohol beer", also known as "non-alcoholic beer" contains less than 1% ABV.
The strongest beer ever made was the Hair of the Dog Brewing Company's barley
wine named "Dave", which was 29% ABV.
The alcohol in beer comes primarily from the metabolism of sugars that are
produced during fermentation. The quantity of fermentable sugars in the wort and
the variety of yeast used to ferment the wort are the primary factors that determine
the amount of alcohol in the final beer. Additional fermentable sugars are sometimes
added to increase alcohol content, and enzymes are often added to the wort for
certain styles of beer (primarily "light" beers) to convert more complex
carbohydrates (starches) to fermentable sugars. Alcohol is a byproduct of yeast
metabolism and is toxic to the yeast; typical brewing yeast cannot survive at alcohol
concentrations above 12% by volume. Low temperatures and too little fermentation
time decreases the effectiveness of yeasts, and consequently decreases the alcohol
content.
The type of beer plays a large role in the alcohol content. While it's not exact,
if you know the type of beer you can generally estimate how much alcohol you will
be imbibing. This is an important skill to have. For instance if you go to a pub and
all your friends are drinking pale ales, and you start ordering barley wines; if you try
to keep up with them, you might not make it out of the pub without being carried.
The following chart will help in these situations:
8
Beer Alcohol Content Table
Lager 4–5
Porter 4–5
Stout 5 – 10
Barleywine 8 – 12
9
History of Beer
General History
Beer is one of the world's oldest beverages, possibly dating back to the 6th
millennium BC, and is recorded in the written history of ancient Egypt and
Mesopotamia. The earliest Sumerian writings contain references to beer. A prayer to
the goddess Ninkasi known as "The Hymn to Ninkasi" serves as both a prayer as
well as a method of remembering the recipe for beer in a culture with few literate
people.
As for the close link between bread- and beer-making, women produced
most beer prior to the introduction of hops in the thirteenth century, selling the
beverage from their homes as a means of supplementing the family income.
However, by the 7th century AD beer was also being produced and sold by
European monasteries. During the Industrial Revolution, the production of beer
moved from artisanal manufacture to industrial manufacture, and domestic
manufacture ceased to be significant by the end of the 19th century. The
development of hydrometers and thermometers changed brewing by allowing the
brewer more control of the process, and greater knowledge of the results. Beer was
also known by Slavic tribes in early 5th century.
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History of Beer in India
Modern beer brewing began for India in the early days of the British Empire
— the mid-1700s. The demand for beer in the hot climate of many parts of India by
the British administrators and the troops was so great that it led to the creation of a
completely new style of beer by George Hodgson in his London brewery — India
Pale Ale also known as IPA. IPA is strong, highly hopped ale designed to survive the
five month ocean voyage to India without spoiling. India Pale Ale was shipped with
every voyage for over a century and became very popular in Britain and North
America.
In the late 1820s Edward Dyer moved from England to set up the first
brewery in India at Kasauli (later incorporated as Dyer Breweries in 1855) in the
Himalaya Mountains, near Shimla, producing Asia's first beer called Lion. The
brewery was soon shifted to nearby Solan (close to the British summer capital
Shimla), as there was an abundant supply of fresh spring water there. The Kasauli
brewery site was converted to a distillery which Mohan Meakin Ltd. still operates.
Dyer set up more breweries at Shimla, Murree, Rawalpindi and Mandalay.
Today no brewer in India makes India Pale Ale. All Indian beers are either
lagers (5 % alcohol — such as Australian lager) or strong lagers (8 % alcohol - such
as the popular MAX super strong beer). International Breweries Pvt. Ltd. have
recently announced an intention to work with Mohan Meakin to produce and launch
an India Pale Ale called Indian IPA from India's first brewery at Solan. Kingfisher,
11
Haywards, Kalyani Black Label, Soumitree, Jaguar, Foster's, Castle Lager, Royal
Challenge, Max, Kings and Belo are popular Indian beer brands.
12
Overview of Indian Beer Market
Market Definition
The beer market consists of ales, stouts & bitters, low/no alcohol beers,
premium lager, specialty beers and standard lager. The market is valued according to
retail selling price (RSP) and includes any applicable taxes. The Indian beer market
delivered strong, stable growth over the last five years. Looking forward, this trend
is expected to persist through to 2011.
The Indian beer market generated total revenues of $874.2 million in 2006,
this representing a compound annual growth rate (CAGR) of 6.6% for the five-year
period spanning 2002-2006. Standard lagers proved the most lucrative for the Indian
beer market in 2006, generating total revenues of $760.3 million, equivalent to 87%
of the market's overall value. The performance of the market is forecast to follow a
similar pattern, with an anticipated CAGR of 6.8% for the five-year period 2006-
2011 expected to drive the market to a value of $1,213 million by the end of 2011.
Market Value
13
Market Segmentation I
Sales of standard lager form the most lucrative sector of the Indian beer
market, with an 87% share of the market's value. In addition, sales of premium lager
generate a further 6.2% of the market's revenues.
Category % Share
Total 100.0%
Market Segmentation II
Geography % Share
Japan 45.50%
China 36.40%
India 1.30%
Total 100.0%
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Market Share
United Breweries is the leading company in the Indian beer market, with a
50.3% share of the market's volume. In comparison, SAB Miller accounts for 34.2%
of the total market's volume.
Market share in volume
Company % Share
APB 4%
Other 5.30%
Total 100.0%
15
Comparison of Indian & US Beer Industry
Indian Beer Industry
The Indian beer industry has been witnessing steady growth of 7-9% per year
over the last ten years. The rate of growth has remained steady in recent years, with
volumes passing 100m cases during the 2005-2006 financial year. With the average
age of the population on the decrease and income levels on the increase, the
popularity of beer in the country continues to rise.
The Indian beer market was estimated to be 6.7 million hectoliters (hl) in
2002-03. Beer consumption has been growing rapidly at a CAGR (Compound
Annual Growth Rate) of 7% over the last 9 years, while growth in 2002-03 was 11
per cent. Indian growth rates compare favorably with the global beer industry, which
grew by about 2.6 per cent in 2001-02 Apart from providing strong growth; India
also provides attractive profit margins due to the consolidated nature of the industry.
A comparison between China and India, for example, reveals that the
Chinese beer market is marked by intense competition, with several players being
marginalized.
In China there are about 400 brewers, of which the top 10 account for only 45 per
cent of the market. This has resulted in low profit margins for the Chinese beer
players.
In contrast, the top two beer players in India account for about 75 per cent of
beer sales in India and the industry stands a chance to see more consolidation in the
near future. The effect of this consolidation can be seen in the fact that beer prices in
India rarely go down with the competitive pressures of new product or brand
launches. In the past, whenever beer prices have gone down, it has been due to either
the lowering of duties by the government or the deregulation of distribution (leading
to lower margins for the distribution channel partners). In neither scenario have the
margins or revenues of beer manufacturers been affected.
16
annum. Per capita consumption is directly related to the taxation, according to an
industry observer.
US Beer Industry
The U.S. brewing industry is dominated by three firms – Anheuser-Busch,
SAB-Miller, and Coors – who together account for about 80% of beer shipments.
Anheuser-Busch has been the leading firm in the industry every year since 1957.
Miller joined the top three in 1976, following the introduction of Lite beer. Coors
became one of the top three brewers in 1989 after it expanded nationally and
displaced Stroh. However, despite a high level of industry concentration, the real
price of beer has been stable or declining since 1963. In recent years, a number of
marketing concerns have affected the industry leaders, including growth of beer
imports to an 11% share; a decline of sales of leading premium brands (Budweiser,
Miller High Life, Miller Genuine Draft); competition from new products and
marketing methods (flavored malt beverages, direct shipments of beer and wine);
competition from specialty-craft brewers; and continued attempts by neo-prohibition
groups to demonize the industry, especially its advertising and marketing practices.
17
Determinants of growth of Indian Beer Market
The Indian beer market has been growing rapidly over the last 10 years, due
to the positive impact of demographic trends and expected changes, like:
Changing lifestyles:
A deep-seated traditional social aversion to alcohol consumption has been a
traditional feature of the Indian society. However, as urban consumers become more
exposed to western lifestyles, through overseas travel and the media, their attitude
towards alcohol is relaxing. Social habits are undergoing a transformation as mixed
drinks are becoming more popular. The greatest evidence of this trend is the increase
in beer consumption among women. With increasing urbanisation, this acceptance is
only going to rise.
18
19
Reduction in beer prices:
The Indian consumer typically values an alcoholic beverage on the basis of
its 'kick' factor versus its price. The following two factors therefore, affect the
market for beer. Firstly, as most states do not have a differential tax structure based
on the alcohol content, strong beer.
2. The beer-drinkers in the country are much younger than the average beer-
drinker elsewhere in the world. This makes them more likely to carry the
brand with them for a lifetime.
4. Increasing exposure to beer and wine drinking, mainly due to media and
consumer mobility.
All these factors combined make the scenario very promising for beer
industry and are 'in sync' with their strategy for India.
UB (United Breweries Ltd.) is the market leader in the Indian beer market
with a 40% market share. Its flagship Kingfisher brand alone commands 25%
market share. The company has however been focussing on strong beer, which has
driven growth. The company introduced its strong beer, Kingfisher Strong during the
year 2000 in the selected market of Maharashtra and Karnataka. The move came as a
reactive move following increasing shift of consumers towards strong beer, a trend
started by Shaw Wallace. While the overall market grew marginally by 2%, the
strong beer market grew at 8-10% during the year at the expense of lager beer. The
market is now skewed towards strong beer with more than 60% of the market being
strong beer market.
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Beer mix today is approximately 60 percent lager beer and 40 percent strong
beer. This ratio was very different 4 years ago. Over the last four years strong beer
has been the fastest growing segment. This was completely usurped by Shaw
Wallace. As of today while Shaw Wallace has approximately 28 to 30 percent of the
strong beer market, UB already has achieved 14 to 15 percent of that strong beer
market and is growing very fast. It launched Kingfisher Strong only in May of 2001.
And once it is able to take Kingfisher Strong national, it will try to match Shaw
Wallace's market share over the next few years.
Apart from Kingfisher, and Foster's Beer, the other brands in the Indian
market are Carling Black Label, Carlsberg, Tiger, Baron’s, Heinekin, Budweiser,
Corona, Dansberg, Golden Eagle, Guru, Maharaja Premium Lager, Haake Beck,
Haywards 2000 Beer, Haywards 5000, Haywards skol, Flying Horse Royal Lager,
Taj Mahal, Hi-Five, Ice, Kingfisher Diet, Kingfisher Strong, Kirin, KnockOut,
Legend, London Diet, London Draft, London Pilsner, Royal Challenge, San Miguel
Lager, Sand Piper, Strohs and Zingaro.
The major brands which belong to large groups in the industry (apart from
UB) are – Shaw Wallace - Royal Challenge Premium Lager, Haywards 2000
Premium Lager, Haywards 5000 Super Strong, Hi-Five and Lal Toofan.
A lot of new variants promise to gain prominence, but mainly in niche urban
segments. The sophisticated consumer who drinks beer for the experience and not to
get drunk will lap up ice beer or light beer. In urban centers, apart from first time
users companies are also targeting women, who as 'the times they are a changing,'
are entering the market for beer. Essentially, women shy away from beer
21
consumption because it is associated with calories, and has traditionally been a
buddy drink, associated with pot-bellied men sitting at bars and shooting darts.
22
Indian Brewing industry
Today, the brewing industry is a huge global business, consisting of several
dominant multinational companies and many thousands of smaller producers
ranging from brewpubs to regional breweries. More than 133 billion liters (35
billion gallons) are sold per year—producing total global revenues of $294.5 billion
in 2006.
Breweries in Maharashtra
Sr. Name of Brewery District Factory Address Phone No.
23
Bansilal Nagar
Brewing Process
Beer is made by brewing. The essential stages of brewing are mashing,
sparging, boiling, fermentation, and packaging. Most of these stages can be
accomplished in several different ways, but the purpose of each stage is the same
regardless of the method used to achieve it.
24
Image Courtesy: Aurangabad Breweries Ltd.
Batch Size: 100 HL
Time Taken for each brew – 8.5 Hrs
Max. No. of Brews/ Days - 06 Nos.
25
Fermentation Flow Chart
26
Stages in Beer Making
Mashing
Mashing manipulates the temperature of a mixture
of water and a starch source (known as mash) in order to
convert starches to fermentable sugars. The mash goes
through one or more stages of being raised to a desired
temperature and left at the temperature for a period of time.
During each of these stages, enzymes (alpha and beta
amylase primarily) break down the long dextrins that are
present in the mash into simpler fermentable sugars, such as
glucose. The number of stages required in mashing depends
on the starch source used to produce the beer. Most malted
barley used today requires only a single stage.
Sparging
Sparging (a.k.a. Lautering) extracts the fermentable liquid, known as wort,
from the mash. During sparging the mash is contained in a lauter-tun, which has a
porous barrier through which wort but not grain can pass. The brewer allows the
wort to flow past the porous barrier and collects the wort. The brewer also adds
water to the lauter-tun and lets it flow through the mash and collects it as well. This
rinses fermentable liquid from the grain in the mash and allows the brewer to gather
as much of the fermentable liquid from the mash as possible. The leftover grain is
not usually further used in making the beer. However, in some places second or even
third mashes would be performed with the not quite spent grains. Each run would
produce a weaker wort and thus a weaker beer.
Boiling
Boiling sterilises the wort and increases the concentration of sugar in the
wort. The wort collected from sparging is put in a kettle and boiled, usually for
about one hour. During boiling, water in the wort evaporates, but the sugars and
other components of the wort remain; this allows more efficient use of the starch
sources in the beer. Boiling also destroys any remaining enzymes left over from the
27
mashing stage as well as coagulating proteins passing into the wort, especially from
malted barley, which could otherwise cause protein 'hazes' in the finished beer. Hops
are added during boiling in order to extract bitterness, flavour and aroma from them.
Hops may be added at more than one point during the boil. As hops are boiled
longer, they contribute more bitterness but less hop flavour and aroma to the beer.
Fermentation
Fermentation uses yeast to turn the sugars in wort to alcohol and carbon
dioxide. During fermentation, the wort becomes beer. Once the boiled wort is cooled
and in a fermenter, yeast is propagated in the wort and it is left to ferment, which
requires a week to months depending on the type of yeast and strength of the beer. In
addition to producing alcohol, fine particulate matter suspended in the wort settles
during fermentation. Once fermentation is complete, the yeast also settles, leaving
the beer clear. Fermentation is sometimes carried out in two stages, primary and
secondary. Once most of the alcohol has been produced during primary
fermentation, the beer is transferred to a new vessel and allowed a period of
secondary fermentation. Secondary fermentation is used when the beer requires long
storage before packaging or greater clarity.
Pasteurisation
Pasteurisation is an optional stage of the beer process in which the beer is
slowly heated and cooled to kill off any existing bacteria in order to maintain longer
shelf life. This is generally a stage not included in higher end beers, but is quite
common in mass-produced beers such as American-Style lite beers, and other mass-
produced lagers. It is less common in ales as pasteurization can change the many
flavours.
Packaging
Packaging, the fifth and final stage of the brewing process, prepares the beer
for distribution and consumption. During packaging, beer is put into the vessel from
which it will be served: a keg, cask, can or bottle. Beer is carbonated in its package,
either by forcing carbon dioxide into the beer or by "natural carbonation". Naturally
carbonated beers may have a small amount of fresh wort/sugar and/or yeast added to
28
them during packaging. This causes a short period of fermentation which produces
carbon dioxide.
29
Ingredients of Beer
Beer is made from 4 simple ingredients; water, grain
(barley, wheat, rice, corn, or other cereals), yeast, and hops.
Other ingredients are used by many brewers to create
distinctive tastes and characters. Brewing beer is a mix of
both chemistry and art. The most successful brewer will not
only understand all aspects of brewing but will also have
the love and devotion of the beer drinker.
Water
Beer is composed mostly of water, and the water used to make beer nearly
always comes from a local source. The mineral components of water are important
to beer because minerals in the water influence the character of beer made from it.
Different regions have water with different mineral components. As a result, it is
argued that the mineral components of water have an influence on the character of
regional beers.
Malt
The starch source in a beer provides the fermentable material in a beer and is
a key determinant of the character of the beer. The most common starch source used
in beer is malted grain. Grain is malted by soaking it in water, allowing it to begin
germination, and then drying the partially germinated grain in a kiln. Malting grain
produces enzymes that convert starches in the grain into fermentable sugars.
Different roasting times and temperatures are used to produce different colours of
malt from the same grain. Darker malts will produce darker beers.
Hops
The flower of the hop vine is used as a flavouring and preservative agent in
nearly all beer made today. The flowers themselves are often called "hops". Hops
contain several characteristics that brewers desire in beer: hops contribute a
30
bitterness that balances the sweetness of the malt; hops also contribute floral, citrus,
and herbal aromas and flavours to beer.
Yeast
Yeast is the microorganism that is responsible for fermentation in beer. Yeast
metabolizes the sugars extracted from grains, which produces alcohol and carbon
dioxide, and thereby turns wort into beer. In addition to fermenting the beer, yeast
influences the character and flavour. The dominant types of yeast used to make beer
are ale yeast and lager yeast; their use distinguishes ale and lager.
Clarifying agent
Some brewers add one or more clarifying agents to beer. Common examples
of these include isinglass finings, obtained from swimbladders of fish; Irish moss, an
seaweed; Polyclar (artificial); and gelatin. Clarifying agents typically precipitate out
of the beer along with protein solids, and are found only in trace amounts in the
finished product.
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Categorizing beer by
Yeast
The most common method of categorizing beer is by the behavior of the
yeast used in the fermentation process. In this method of categorizing, those beers
which use fast-acting yeast, which leaves behind residual sugars, are termed ales,
while those beers which use a slower and longer acting yeast, which removes most
of the sugars, leaving a clean and dry beer, are termed lagers. Differences between
some ales and lagers can be difficult to categorize.
Ale
Modern ale is commonly defined by the strain of yeast used and the
fermenting temperature. Ales are normally brewed with top-fermenting yeasts. The
important distinction for ales is that they are fermented at higher temperatures and
thus ferment more quickly than lagers.
Lager
Lager is the English name for bottom-fermenting beers of Central European
origin. They are the most commonly consumed beers in the world. The name comes
from the German lagern ("to store"). Lagers originated from European brewers
storing beer in cool cellars and caves and noticing that the beers continued to
ferment, and also to clear of sediment. Modern methods of producing lager were
pioneered by Gabriel Sedlmayr the Younger, who perfected dark brown lagers at the
Spaten Brewery in Bavaria, and Anton Dreher, who began brewing a lager, probably
32
of amber-red colour, in Vienna in 1840–1841. With improved modern yeast strains,
most lager breweries use only short periods of cold storage, typically 1–3 weeks.
Lambic beers
Lambic beers, a speciality of Belgian beers, use wild yeasts, rather than
cultivated ones. Many of these are not strains of brewer's yeast, and may have
significant differences in aroma and sourness.
Dark beers are usually brewed from a pale malt or lager malt base with a
small proportion of darker malt added to achieve the desired shade. Other colourants
—such as caramel—are also widely used to darken beers. Very dark beers, such as
stout use dark or patent malts that have been roasted longer. Guinness and similar
beers include roasted unmalted barley.
33
Serving
Draught and keg
Draught beer from a pressurized keg is the most common method of
dispensing in bars around the world. A metal keg is pressurized with carbon dioxide
(CO2) gas which drives the beer to the dispensing tap or faucet. Some beers, notably
stouts, such as Guinness and "smooth" bitters, such as Boddingtons, may be served
with a nitrogen/carbon dioxide mixture. Nitrogen produces fine bubbles, resulting in
a dense head and a creamy mouth feel. Some types of beer can also be found in
smaller, disposable kegs called beer balls.
Cask-conditioned ales
Cask-conditioned ales (or "cask ales") are unfiltered and unpasteurised beers.
These beers are termed "real ale" by the Camra organisation. Typically, when a cask
arrives in a pub, it is placed horizontally on a stillage and allowed to cool to cellar
temperature, before being tapped and vented—a tap is driven through a (usually
rubber) bung at the bottom of one end, and a hard spile or other implement is used to
open a hole in the side of the cask, which is now uppermost. At this point the beer is
ready to sell, either being pulled through a beer line with a hand pump, or simply
being "gravity-fed" directly into the glass.
Bottles
Most beers are cleared of yeast by filtering when bottled. However, bottle
conditioned beers retain some yeast—either by being unfiltered, or by being filtered
and then reseeded with fresh yeast. It is usually recommended that the beer be
poured slowly, leaving any yeast sediment at the bottom of the bottle.
Cans
Many beers are sold in beverage cans, though there is considerable variation
in the proportion between different countries. People either drink from the can or
pour the beer into a glass. Cans protect the beer from light and have a seal less prone
to leaking over time than bottles. Cans were initially viewed as a technological
breakthrough for maintaining the quality of a beer, then became commonly
34
associated with less-expensive, mass-produced beers, even though the quality of
storage in cans is much like bottles.
Vessels
Beer is consumed out of a variety of vessels, such as a glass, a beer stein, a
mug, a pewter tankard, a beer bottle or a can. Some drinkers consider that the type
of vessel influences their enjoyment of the beer. Some breweries offer branded
glassware intended only for their own beers.
Serving temperature
The temperature of a beer has an influence on a drinker's experience. Colder
temperatures allow fully attenuated beers such as pale lagers to be enjoyed for their
crispness; while warmer temperatures allow the more rounded flavours of an ale or a
stout to be perceived. Beer writer Michael Jackson proposed a five-level scale for
serving temperatures:
35
By-products / Waste
Beer brewing produces several byproducts that can be used by other
industries. During the malting of the barley, rootlets form on the grain and drip off.
These can be collected and used for animal feed. The hops that are filtered out from
the finished wort can also be collected and used again as fertilizer. The residual yeast
from the brewing process is a rich source of B vitamins. It can be put to use by
pharmaceutical companies to make vitamins or drugs, or used as a food additive.
Used beer cans and beer bottles are routinely recycled.
36
Taxation Policies
Excise Duties
Government has different policies for charging excise on mild beer and
strong beer which is highlighted in the table below.
Octroi
Previously 4 to 7 per cent of octroi duty was charged on beer on billed
invoice, but government came to know the loop hole in the system of which undue
advantage was taken by the companies so to curb this government has decided to
charge 4 – 7% octroi on MRP of product after giving discount of 25%.
37
About APB
Corporate Profile
Listed on the Singapore Exchange, Asia Pacific Breweries Limited (APB) is
one of the key players in the beer industry. A joint venture between the Fraser and
Neave Group of companies and Heineken International, APB was established as
Malayan Breweries Limited (MBL) in 1931. It went on to open its first brewery in
Singapore and launched the award-winning Tiger Beer a year later.
With more than 70 years in the brewing industry, APB has been consistently
ranked by the Far Eastern Economic Review as one of the top companies in Asia.
KPMG also rated APB as among the top ten value creators in Singapore, for having
consistently added value for its customers, consumers and shareholders.
APB's flagship brew, Tiger Beer commands a strong following in Asia and
is also widely enjoyed in many European Cities such as London, Manchester,
Dublin, Glasgow, Berlin, Copenhagen, Stockholm and many others. The
internationally recognised Singapore beer has accumulated a long list of accolades,
awards and distinctions.
38
APB is also one of the few corporate organizations in Singapore to set up its
own philanthropic foundation, the Asia Pacific Breweries Foundation to render
financial aid to causes in Creativity Development, Achievements in Human
Excellence and Humanitarian Awards.
Today, F&N owns an impressive array of renowned brands that enjoy market
leadership across a mix of beer, dairies, soft drinks and beverages; residential
properties, retail malls and serviced residences; as well as publishing and printing
services. Listed on the Singapore Exchange, F&N's shareholders' funds are in excess
of S$3billion, and its total assets employed exceed S$7billion. F&N is present in
more than 20 countries spanning across Asia Pacific, Europe and USA and employs
more than 14,000 employees worldwide.
Heineken
Heineken has its roots in Amsterdam, where in 1864, Gerard Adriaan
Heineken acquired the Hooiberg (Haystack) brewery. This brewery itself dates back
to 1592. Heineken N.V. is the most international brewer in the world. The Heineken
brand is sold in almost every country in the world and the company owns over 115
breweries in more than 65 countries with a total volume of 113 million hectolitres.
Heineken owns and manages a strong portfolio of more than 120 top selling brands,
which has Heineken at its centre.
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Members of the Asia Pacific Breweries Group
Cambodia
• Cambodia Brewery Ltd.
China
• Heineken-APB (China) Management Services Co. Ltd.
• Shanghai Asia Pacific Brewery Co. Ltd.
• Hainan Asia Pacific Brewery Company Ltd.
• Kingway Trading (Shanghai) Co. Ltd.
• Jiangsu DaFuHao Breweries Co. Ltd.
India
• Asia Pacific Breweries (Aurangabad) Ltd.
• Asia Pacific Breweries (Pearl) Ltd.
Laos
• Lao Asia Pacific Breweries Ltd.
Malaysia
• Guinness Anchor Berhad
Mangolia
• MCS-Asia Pacific Brewery LLC
New Zealand
• DP Breweries Limited
Singapore
• Asia Pacific Breweries (Singapore) Pte. Ltd.
• Tiger Exports Pte. Ltd.
Sri Lanka
• Asia Pacific Brewery (Lanka) Limited.
Thailand
• Thai Asia Pacific Breweries Co. Ltd.
Vietnam
• Hatay Brewery Ltd.
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• Vietnam Brewery Ltd.
41
Senior Management of APB
Mr Koh Poh Tiong
Chief Executive Officer
Mr Chris Kidd
Regional Director, Indochina
Dr Les Buckley
Regional Director, S.E.A / Oceania
Mr Vivek Chhabra
Regional Director, South Asia & Director, Group Business Development
Ms Sarah Koh
General Manager, Group Corporate Communications
Ms Geraldine Lim
General Manager, Group Legal
Mr Edmond Neo
General Manager, Group Commercial
Ms Yvonne Yeo
Director, Group Human Resource
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APB - INDIA
Extending its footprint to Andhra Pradesh, APB on 30 June 2006, entered yet
another joint venture partnership to set up Asia Pacific Breweries-Pearl Private
Limited. APB holds the majority stake of 67% in the joint venture company which is
building a Greenfield Brewery just outside Hyderabad. The brewery is expected to
commence operation in 2008.
Core Values
• Be passionate about your work.
• Instill sense of urgency.
• Maintain the highest standard of ethics and integrity.
• Work as a team, with respect for each other.
• Deliver quality in all that we do.
• Be cost conscious.
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• Maintain business confidentiality.
• Have fun at work and strike balance between work and personal life.
44
Locations of Operation
• Delhi
• Goa
• Hyderabad
• Aurangabad
• Bangalore
45
Organization Structure
46
Brand Portfolio
APB Maintains approach of a multi-brand portfolio in each market, it enjoys
an extensive reach across different market segments in different countries. Today,
APB oversees a portfolio of over 40 beer brands including Tiger Beer and Heineken
and several brand variants.
Tiger Beer
47
Details of Tiger beer are discussed in detail in marketing mix section of this project.
48
49
APB International Brands
Heineken
Embraced by drinkers in over
170 countries, Heineken possesses the widest
international presence of any international
beer brand. Distinctive in a green bottle, its
exclusive image finds rapport with
sophisticated young adult consumers who
enjoy cutting-edge music experiences and
premier sporting events.
Anchor
Anchor was first brewed in Singapore over 70 years ago using German
technology and brew masters. Anchor's value-for-money positioning and its
refreshing and signature crisp taste have clearly struck a chord with drinkers in over
10 countries in Asia.
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Marketing Mix of Tiger Beer
Marketing mix is defined as the set of controllable tactical
marketing tools that the firm blends to produce the response it wants in
the target market. The marketing mix consists of everything the firm can
do to influence the demand for its product.
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Robert Lauterborn suggested that the sellers’ 4 Ps correspond to the customers’ 4 Cs.
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Product
Tiger beer is one of the world's finest beers, It was launched in 1932; Tiger
Beer is enjoyed in more than 60 countries across the globe including Europe, USA,
Latin America, Australia and the Middle East.. The distinctive taste of Tiger Beer is
favoured by the modern man of today. Tiger Beer is synonymous with self-
progression, manliness and social engagement. As a world class, award-winning
quality beer that is winning the world over, Tiger Beer is on track in realizing its
aspiration of becoming
a leading pan-Asian beer brand.
Tiger Story
“Brewed exclusively and with dedication
In Asia since 1932, using the finest quality hops
And malted barely, tiger beer has a distinctive
Clean and crisp taste that’s winning the world over”
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54
Various Captions of Tiger Print Ads overseas
Tiger has used various headlines in it’s print ads to capture consumer
attention. Some of it is as follows.
55
Tiger Beer fact sheet
• Launched in 1932, Tiger Beer is APB's flagship brand. Today, Tiger Beer is
brewed in ten countries and available in over 60 countries worldwide
including Europe, USA, Latin America, Australia and the Middle East.
• In the western markets such as the UK and USA, Tiger Beer has been
embraced as a leading premium brew that hails from the Far East.
• Tiger Beer has become such a recognizable and much sought-after import
premium beer in UK that it was named UK Cool Brand Leader each year
from 2004 to 2006 - a recognition given to the coolest brands in UK.
• Tiger Beer also topped a list of 50 beer brands and was crowned the NUTS
(a weekly magazine in the UK) Beer of the Year 2004. These recognitions
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reaffirmed that apart from industry medals, Tiger Beer is also gaining greater
popularity with its growing number of fans.
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Price
Price is the amount of money charged for the product or service, the sum of
values that consumer exchange for the benefits of having or using the product or
service.
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Pricing in Mumbai
Following list provides information regarding number of companies and
brands operating in Mumbai along with their MRP and End Consumer Price (ECP).
ECP = MRP + Taxes. Prices are as in the month of June 2008.
UB Group
Name of Brand Type M.R.P. E.C.P.
SAB MILLER
Name of Brand Type M.R.P. E.C.P.
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LILA SONS
Name of Brand Type M.R.P. E.C.P.
Other Competitors
Name of Brand Type M.R.P. E.C.P.
Cobra Mild
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Place
In the USA, Tiger Beer’s presence is strong in New York, Miami, San
Francisco and Boston.
In the UK, Tiger Beer can be found in over 8,000 premium bars/clubs and
distribution outlets in UK’s major cities such as London, Manchester, Leeds,
Newcastle, Inverness, etc.
In India On-trade sales form the leading distribution channel account for
nearly 70% share of the market by volume. Company has appointed total 16
distributors in Maharashtra including Marathwada, & Vidrbha.
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Distribution Network
APB
Breweries
Distributors
On / Off Premise
Locations
End Consumer
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Distributors of APBI
Area Number of distributor
Ahmed Nagar 1
Akola 1
Aurangabad 1
Dhule 1
Jalgaon 1
Jalna 1
Kolhapur 1
Mumbai 2
Nagpur 2
Nashik 1
Prabhani 1
Pune 1
Solapur 1
Total 16
Distributors in Mumbai
Mansha Agencies
Ph. 2370 0720
Sakinaka
63
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Promotion
Promotion includes advertising and other forms of sales presentations,
designed to encourage fast consumer or trade up-take of a product or service. The
form of any promotion depends on the product, the marketing plan and its
objectives, and on the imagination of the product management team. It can vary
from a simple in-store demonstration, or sampling, or a tie-in with on premises. A
range of promotional tools, techniques and activities are mixed and matched to meet
the needs of individual marketing campaigns.
Events: Companies can draw attention to new products or other company activities
by arranging special events like news conferences, on-line chats, contests and
competitions, and sport and cultural sponsorships that will reach the target publics.
News: One of the major tasks of PR professionals is to find or create favorable news
about the company, its products, and its people. The next step is getting the media to
accept press releases and attend press conferences.
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• Packaging
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Factors Influencing Company Marketing Strategy
There are various forms of marketing which are used for promoting the
product in market. They are pull marketing, push marketing, ATL & BTL activities.
Obviously not every campaign will include every element in the mix, but every
viable campaign must incorporate some of them. They are explained in detail below.
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Marketing professional need to understand following four concepts viz. Pull
marketing, push marketing, ATL & BTL for effective execution of any marketing
campaign. Company can select on the tool or combination of it based on product
type and marketing objective. Let’s look at them in detail.
Pull marketing
Advertising is one of the most powerful forms of "Pull" marketing—
persuading the customer to try a product and continue to use the product. It is a paid
form of impersonal promotion that can appear in many venues:
• Print brochures or • Point-of-Purchase
flyers Ads
• Billboards & • Television and
Hoardings radio ads
Push Marketing
"Push" marketing occurs when the product is
"pushed" from the seller to the consumer. The most common
type of push marketing is when a company uses a direct
sales force to all on prospective companies or consumers. It
is the salesperson's task to persuade the consumer to
purchase the product.
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Below The Line (BTL) Activities
BTL Denotes advertising expenditure in which no
commission is payable to an advertising agency. For
example, direct mail, exhibitions, point-of-sale material, and
free samples are regarded as below-the-line advertising.
POPs - Ads at Consumer touch points
• Posters • Coaster
• Tent Cards
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APB’s Marketing Supporting Agencies
Ad-agency
• Leo Burnett
Media Planner
• McCann Erickson
• Load Star (Working on the ATL plan)
PR Agency
• Weber Shandwick (A unit of The Interpublic
Group)
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• Regularly follows up with media on press releases
related to beer
• Ensures Event Collateral
• maintaining journalists & publications profiles
Sales Promotion
Sales promotion, a key ingredient in many marketing
campaigns, is a collection of incentive tools, usually short
term, designed to stimulate trial of a product or service,
quicker or greater purchase. These include discounts, gifts
or give-away, free goods, cooperative advertising, and trade
shows. Advertising offers a reason to buy; sales
promotion offers an incentive to buy.
• Prizes,
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• Free Trials,
• Tie-In Promotions,
• Cross-Promotions,
• Point-Of-Purchase
Displays,
• Demonstrations
72
Relationship between PLC & Marketing Strategies
73
Various sales promotions techniques adopted
at APBI
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9. Program on Radio One 94.3 FM with “Malini till
mid night moon” for 3 months from 19th May till 18th
Aug.
10. Bar promoter girls promotions
11. Mall Activation
12. Permit room activations
13. Various promotional offers in institutions
• Meal Combo • Exclusive tiger
• Sunday beer tie-ups
Brunch • Bar night
• Tiger Bucket • Food Festivals
(grab 4 pints at • Karaoke Nite
price of 3)
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Permit Room Activation
Points to be considered while permit room promotion
• Time 6.30 pm to 10.30 pm
• Days of promotion: Wednesday, Friday, Saturday,
Sunday
• Promoters need to reach outlet by 6.00 pm
• Promoters need to carry certain items with them viz.
Call Sheet, Tent Cards, Banners, Tiger Quick Card.
• Once they reach outlet they will ask rate of TIGER
in that particular outlet
• While promotions they should keep Tiger Quart
bottle with them, and give it to consumers while they
do quality presentations
2. Hire Agency
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12. Evaluation of reports submitted by agency
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Tracking Effectiveness of sales promotion
There are various ways for checking effectiveness of sales
promotions:
1. Check our sales volumes of outlet pre, during and
post promotion
2. Go to junk yard of outlet where they keep empty
bottles to check actual sales performance of brand.
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• Use sales promotions in markets of high brand
dissimilarity: Sales promotions tend to attract brand
switchers who look primarily for low price, good
value, or premiums. You'll get more and longer-
lasting market share if you use such incentives in
markets of high brand dissimilarity.
• Distinguish between price promotions and added-
value promotions:
Sales promotions, with their incessant prices off,
coupons, deals, and premiums, can devalue the
product offering in consumers' minds. Make sure
your promotions enhance your brand image.
• Pretest your sales promotion program Use pretests
(small trial runs) to determine whether the
promotional tools you've chosen are appropriate, the
incentive size will produce enough sales response
without costing the company too much, and the
presentation is efficient.
Packaging
Packaging, as defined by Kotler and Keller, refers to
‘all the activities of designing and producing the container
for a product.’ Though the primary purpose of packaging is
to serve against damage during the movement of the
product, it is no longer the only purpose that it serves.
Packaging, and not the product, is the first touch-point that
the customer comes into contact with. A substandard
product within a unique packaging might be easier to sell as
against a superior product packaged in a substandard pack.
Superior packaging would not ensure repeat sales though.
Packaging is an effective tool to make the product
distinguishable in the clutter.
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Packaging, the fifth and final stage of the brewing
process, prepares the beer for distribution and consumption.
During packaging, beer is put into the vessel from which it
will be served: a keg, cask, can or bottle. Beer is carbonated
in its package, either by forcing carbon dioxide into the beer
or by "natural carbonation".
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Primary Pack – 330 ml Pint Bottle Primary Pack – 650 ml Quart Bottle
Secondary Pack - 4 X 330 ml Bottle Pack Secondary Pack - 6 X 330 ml Bottle Pack
Imported (etch-out) Imported (etch-out)
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Beer Advertising
82
Surrogate Advertising in liquor industry
83
Surrogate for Tiger Beer - Tiger Translate
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On May 24th 2008, Tiger Translate made its Indian
debut at Yashab near Red light in Kala Ghoda, Mumbai. In a
first of its kind event on the Indian scene where creative
talents from across many art forms find home under a single
roof, From live paint artists to musicians, from
photographers to audio-visual artists will come together to
celebrate Asian and in particular Indian creativity on a never
before scale
85
Events under tiger translate Judges on the panel
Graffiti Art Brinda chudasama miller
Photography Tino Francorsi
World Music Munir Kabani
Visual Animation Pravina & jamal macklia
Carlsberg
The Carlsberg Group is a large brewing company
founded in 1847 by J. C. Jacobsen after the name of his son
Carl (Carl Jacobsen). The headquarters are in Copenhagen,
Denmark. The company's main brand is Carlsberg Beer, but
it also brews Tuborg as well as local beers. After merging
86
with the brewery assets of Norwegian conglomerate Orkla
ASA in January 2001, Carlsberg became the 5th largest
brewery group in the world, employing around 31,000
people.
Budweiser
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"Budweiser" in United States and Canada, and marketed as
"Bud" or "Anheuser-Busch B" in Europe.
88
Crown Beers is planning massive below-the-line
activities to make its presence felt in the market.
Kingfisher Mild
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Festivals. Kingfisher Premium Lager beer is currently
available in 52 countries outside India and leads the way
amongst Indian beers in the International market. It has been
ranked amongst the top 10 fastest growing brands in the
UK.
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Fosters
Foster's Lager is an internationally distributed
Australian brand of filtered beer based in Melbourne,
Australia and listed on the Australian Stock Exchange, It is
also brewed under licence in many countries, including the
USA, Canada and the People's Republic of China. The
European rights to the beer are owned by Scottish &
Newcastle, who brew and distribute Foster's in most
European countries including; the UK, Greece, France,
Belgium, Portugal, Finland, Germany, Spain, Sweden,
Ukraine and the Republic of Ireland. In the U.S and India,
rights to the brand are owned by SABMiller. SABMiller
acquired Foster's India on 04 August 2006.
SABMiller
SABMiller plc is one of the world’s largest brewers with
brewing interests or distribution agreements in over 60
countries across five continents. The group’s brands include
premium international beers such as Miller Genuine Draft,
Peroni Nastro Azzurro and Pilsner Urquell, as well as an
exceptional range of market leading local brands. Outside
the USA, SABMiller plc is also one of the largest bottlers of
Coca-Cola products in the world.
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Health effects
The moderate consumption of alcohol, including
beer, is associated with a decreased risk of cardiac disease,
stroke and cognitive decline.
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undesirable) 110. Critics rejoin that beer consists mostly of
water, hop oils and only trace amounts of sugars, including
maltose.
93
Community & Environment
94
Since its inception, the Foundation has provided
grants and other forms of support to over 150 initiatives,
benefiting disadvantaged homes and charitable
organizations, medical research bodies, theatre and music
groups and scholarships programs amongst others.
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Every bottle label of Tiger bottle quotes “Enjoy
Tiger Responsibly” this shows commitment of company
towards responsible alcohol consumption.
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SWOT Analysis of APBI
Strength
• Production capacity
• Premium Quality Product
• Experience Management team
Weakness
• Low Advertising & Promotion Spends
• Less Manpower
• Products not available in Cans
• Low Market Share
• Inefficient Distributors
• Less Market Visibility
Opportunities
• Regional Expansions
• Production Volumes
• Higher Profits
• Increased Market share
Threats
• Competitors High Spends
• International Players
• Government Laws
• Taxes & Tariffs
97
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Why Beer better than Milk
There is more protein in beer than in milk. What's
more, beer has fewer calories than apple juice, milk or cola
and contains neither fat nor cholesterol. These claims have
been made by the All India Brewer's Association.
99
beer is malt, the same as for health drinks Maltova and
Horlicks.
100
Top 10 Reasons Beer is Good for your
Health
Beer as a Multi-vitamin
101
Beer is a significant source of magnesium, selenium,
potassium, phosphorus, biotin, folate, vitamin B6 and
vitamin B12
102
Beer keeps your Brain Young
A large study, published in the December 2001 issue of
Alcoholism: Clinical & Experimental Research, was
conducted on elderly italian men and women. It showed that
moderate drinkers had a 40% lower risk of mental
impairment.
103
The Future
104
technology is already in use in medical science for drug
screening, AIDS testing, and pregnancy testing. Brewers are
eager to adapt this cutting edge research to the beer industry.
105
Conclusion
106
& discernment needs which he would like to
communicate through his brand choices
107
Questionnaire
Offering
Messages
Target Audience
108
16. What segments are we not targeting?
109
Marketing Strategy - Sales & Pricing
18. What are our business objectives over the next two
years? Be as specific as possible, and make sure to
address the following goals:
• Number of customers
• Revenue
• Profit
• Market share
Competition
110
28. Which competitors have the greatest visibility with
our target audience?
111
Bibliography & Webliography
1. http://en.wikipedia.org/wiki/Portal:Beer
2. http://www.indiadiets.com/Health_flash/News/Beer_
better_than_milk.htm
3. www.tigerbeer.com
4. www.apb.com.sg
5. http://www.drinks-business-review.com/
6. www.ratebeer.com
7. www.drinkingbeer.net
8. http://www.indianmba.com/Faculty_Column/
9. http://indiabrew.blogspot.com/
10. http://www.thehindubusinessline.com
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