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Kingfisher Soft Drink

Kingfisher Soft Drink

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Published by marshalsonavane
This is the marketing plan of hypothetical kingfisher soft drink.
This is the marketing plan of hypothetical kingfisher soft drink.

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Published by: marshalsonavane on Jan 12, 2010
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06/30/2013

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Group 9BAnjana Satpathy (B09069)Gaurav Chowdhary (B09079)Marshal Sonavane (B09089)Pathikrit Basu (B09099)Sandeep Singh (B09109)
Group 9BPage 1
NEW PRODUCT LAUNCHUB GROUP – SOFT
DRINKS
 
Vijay Khairnar (B09119)COMPANY OVERVIEW
 The UB Group was founded by a Scotsman, Thomas Leishman in 1857. TheGroup took its initial lessons in manufacturing beer from South Indian basedBritish breweries. United Breweries made its initial impact by manufacturingbulk beer for the British troops, which was transported in huge barrels or"Hogsheads". At the age of 22, Vittal Mallya was elected as the company'sfirst Indian director in 1947. After a year, he replaced R G N Price as thechairman of the company. Kingfisher, the Group's most visible and profitablebrand, made a modest entry in the sixties. With currently into business of Spirits (United Spirits Ltd.), Wine, Beer (United breweries Ltd.), Engineering(UB Engineering Limited), Fertilizers (Mangalore Chemicals and Fertilizers)company has made its mark and presence in each sector it is in.United Breweries Limited (UBL) - has assumed undisputed market leadershipwith a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The UB Group today controls60% of the total manufacturing capacity for Beer in India. The flagshipbrand, Kingfisher is now sold in over 52 countries worldwide having receivedmany accolades for its quality. The sub-continent’s Beer market has been equally dynamic, growing byalmost 90% since the turn of the century. Exceptionally high growth wasgenerated in the northern states of Punjab, Haryana and Rajasthan whichtook full advantage of reduced taxes and improvements in the distributionpolicy. In contrast to Russia, consumers are displaying a distinct preferencefor Strong Beer which has gained market share steadily in recent years andnow accounts for almost 70% of total volume. Kingfisher Strong replacedKingfisher Premium as the leading Beer and the Kingfisher brand overall nowholds a commanding position.
Group 9BPage 2
 
MACRO-ENVIRONMENTAL ANALYSIS
Political Factors
 The political forces affect the beer industry to a large extent. The rates of the beer in various parts of the country are affected by the taxes and dutiesapplied by the Govt. The political forces also affect the pricing of the beer bylowering the duties or deregulating the distribution channel. This leads tolower margins for the distribution channel partners. But, as 75% of theIndian market is covered by two players, there hasn’t been a reduction inthe margins of the manufacturers. The taxation policies also affect theconsumption patterns.
Economic Factors
India is home to nearly one-sixth of the global population and is one of themost attractive consumer markets in the world today. The total worth of Indian Beer Market is Rs 750 crore. This market is expected to expand by39% by 2010. The beer consumption has been growing at a CAGR of 7%over last nine years. India provides attractive profit margins due to theconsolidated nature of the industry. Various research studies have shownthat a rise in the income levels has a direct positive effect on beerconsumption. The National Council for Applied Economic Research (NCAER)projects India's 'very rich', 'consuming' and 'climbers' classes to grow at aCAGR of 15 per cent, 10 per cent and 2 per cent respectively. Thus, Indiagives ample opportunities for the UB Group to grow.
Social Factors
A deep-seated traditional social aversion to alcohol consumption has been atraditional feature of the Indian society. However, as urban consumersbecome more exposed to western lifestyles, through overseas travel and themedia, their attitude towards alcohol is relaxing. Social habits areundergoing a transformation as mixed drinks are becoming more popular. The greatest evidence of this trend is the increase in beer consumptionamong women. More and more women are consuming beer thepenetration in metropolitan areas is almost twice as high as the penetrationin other large cities – implying that the greater tolerance towards alcoholconsumption in metropolitan areas facilitates the consumption of beer. Withincreasing urbanisation, this acceptance is only going to rise. As a
Group 9BPage 3

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