Table of Content 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 1

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 2

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

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Industry Basics
Alcohol Market
1. Spirits –Whisky, Rum (Dark, White) Vodka, Brandy, Gin, Ready To Drink (RTD) 2. Beer – Mild, Strong 3. Wine & Champaign – Red Wine, White Wine, Champaign 4. Country Liquor

Location of consumption & Sale
ON PREMISE Clubs Restaurants & Bar Permit Room Modern on Trade (MOT): Pubs, OFF PREMISE Hyper Marts Super Marts Wine Shops Beer Shoppee

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Business hours prescribed in Maharashtra
Business hours for FL-III (Permit Room) FL-II (IMFL Retail Shops) CL-III (CL Retail shops & Permit room) E & E – II (Beer Bar & Wine Bar) Policy 11.30 a.m. to 1.30 am in Mumbai & Thane 11.30 a.m. to 11.00 p.m. elsewhere 10.00 a.m. to 10.30 p.m. in Mumbai & Thane 10.00 a.m. to 9.30 p.m. elsewhere 10.00 a.m. to 12.00 Midnight in Municipal Area 10.00 a.m. to 10.00 p.m. elsewhere 9.00 a.m. to 12.00 Midnight

Universe for selling Beer in Mumbai
Name of Location Institutions Permit Room Retail Shops Beer Shoppee Number 450 1172 570 60

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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. Beer uses many varying ingredients, production methods and traditions. Different types of yeast and production methods may be used to classify beer as ale, lager or spontaneously fermented beer. Some beer writers and organizations differentiate and categorise beers by various factors into beer styles. Alcoholic beverages fermented from non-starch sources such as grape juice (wine) or honey (mead), as well as distilled beverages, is not classified as beer.

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Different Strokes of Beer
LAGER Brewed using bottom-fermenting yeast that ferments slowly at a low temperature to create a smoother, mellow beer

ALE

Uses top-fermenting yeast, is a more aromatic and fruity product

STOUT

Dark and heavy, with roasted unmalted barley and, often, caramel malt or sugar

MILD BEER

Developed as a sweeter and cheaper alternative to dark ales

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 (WEIZEN)

Malted wheat and barley are used for this German style beer

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.

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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:

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Beer Alcohol Content Table

Beer Type Lager Pilsner Lager Wheat (Weissbier) Porter Bitter (ESB) IPA (India Pale Ale) Stout Double (Dubbel) Tripel (Trippel, Triple)

%ABV 4–5 3–6 4–5 4–5 3–7 5–7 5 – 10 6.5 – 9 7.5 - 9.5

Barleywine

8 – 12

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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. The earliest known chemical evidence of beer dates to circa 3500–3100 BC from the site of Godin Tepe in the Zagros Mountains of western Iran. As almost any substance containing carbohydrates, namely sugar or starch, can naturally undergo fermentation, it is likely that beer-like beverages were independently invented among various cultures throughout the world. The invention of bread and beer has been argued to be responsible for humanity's ability to develop technology and build civilization. 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. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA to a lager in the 1960s, when due to East European influence, most brewers in India switched from brewing Ales to brewing lagers. 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. In various parts of north-eastern India, traditional rice beer is quite popular. Several festivals feature this nutritious, quite intoxicating, drink as part of the celebrations. The rice is fermented in vats that are sometimes buried underground. Elephants are known to attack villages, with the primary agenda of drinking from these vats. Following one such raid in north-eastern India, a police officer in Dumka was quoted in the press as saying: "Tribals who love rice beer brew the liquor at home. Elephants too are fond of this beer. Often it is found that, attracted by the strong smell of the liquor, wild elephants tear down the tribal houses where the brew is stored."

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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 20062011 expected to drive the market to a value of $1,213 million by the end of 2011.

Market Value
Year 2002 2003 2004 2005 2006 CAGR $ million 677.7 722.5 769.4 819.4 874.2 2002-2006: INR billion 29.9 31.9 33.9 36.1 38.6 6.60% 6.50% 6.50% 6.70% 6.6% % Growth

Source: Datamonitor

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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 Standard lager Premium lager Ales, stouts & bitters Low/no alcohol Specialty beer Total % Share 87.00% 6.20% 3.20% 2.90% 0.70% 100.0%

Market Segmentation II
India accounts for 1.3% of the Asia-Pacific market by value. In comparison, Japan generates 45.5% of the market's revenues
Geography Japan China South Korea Rest of Asia-Pacific India Total % Share 45.50% 36.40% 9.50% 7.30% 1.30% 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 APB United Breweries Limited SAB Miller India Mohan Meakin Other Total % Share 4% 50.30% 34.20% 10.10% 5.30% 100.0%

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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. Per capita consumption in India is hovering around a measly 1 litres per annum. These figures pale into insignificance if one compares them with those of Czech Republic that has the highest per capita consumption of 156.9 litres per 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.

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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:

Rising income levels:
India is home to nearly one-sixth of the global population and is one of the most attractive consumer markets in the world today. Various research studies have shown that a rise in the income levels has a direct positive effect on beer consumption. The National Council for Applied Economic Research (NCAER) projects India's 'very rich', 'consuming' and 'climbers' classes to grow at a CAGR of 15 per cent, 10 per cent and 2 per cent respectively. With this growth in income levels, Indian beer consumption is expected to continue growing, at the very minimum, at the growth rates witnessed in the last decade.

Changing age profile:
As a consequence of the high birth rates prevalent until the 1990s, a large proportion of the Indian population is in the age group of 20-34 years. This age group is the most appropriate target for beer marketers. This population trend will give a further boost to the growth of beer consumption in India. Many global players are planning to enter the Indian beer sector and they realise that a partnership with a local player is important to establish a successful presence in India in a short time frame.

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.

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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.

In India the future of beer industry is very much optimistic because:
1. India has predominantly a warm/hot climate 2. The beer-drinkers in the country are much younger than the average beerdrinker elsewhere in the world. This makes them more likely to carry the brand with them for a lifetime. 3. Also, as the target audience becomes younger, a light beer is expected to attract first-time drinkers, since it is much milder than any of the other beers in the country. 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. South African Breweries India Ltd. - Knock-Out, Continental and Three Lions, a new brand that was launched in the autumn of 2001 by SAB in Uttar Pradesh, Chandigarh and Himachal Pradesh. Other possible competition – Radico Khaitan and beer international Interbrew has formed a joint venture to distribute Interbrew's Beck's brand of beer in India. The premium lager beer segment in India will be targeted. Radico has also announced the launch of its international division. 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

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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.

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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. InBev is the largest beer-producing company in the world, followed by SABMiller, which became the second-largest brewing company when South African Breweries acquired Miller Brewing in 2002. Anheuser-Busch holds the third spot.

Breweries in Maharashtra
Sr. 1 Name of Brewery Associated Breweries & Distilleries District Thane Factory Address Plot D103, Trans Thane creek ind area, Sion- Panvel Rd, A/P Shirwane C/23-24, Wagle Industrial Estate Plot M-1, MIDC, Industrial Area Mohan Wadi, Khopoli, Kegaon, Tal Uran E-1, MIDC Industrial Estate Plot No H-9, 10,11,& 13, MIDC Industrial Area, Walunj Plot No 1-10, MIDC Area, Walunj M-99, MIDC, Walunj 0240-2564172 022-27410632 02192-262461 022-27222139 Phone No. 022-27671939

2 3 4 5 6 7

Hindustan Breweries & Bottling Ltd. Bombay Breweries Mohan Rocky Spring Water Breweries Ltd. Skol Breweries Skol Breweries Ltd (Unit of Doburg Ltd.) Arlem (Aurangabad Breweries/Asia Pacific Breweries-Heineken) Inertia Industries Foster’s India Lilasons Breweries

Thane Raigad Raigad Raigad Satara Aurangabad

8 9 10

Aurangabad Aurangabad Aurangabad

0240-2554979 0240-2554563

1-1-7 MIDC, Walunj, 8 0240-2555198

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Bansilal Nagar 11 Pals Distilleries Aurangabad L-5, MIDC, Walunj 0240-2555236

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.

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Image Courtesy: Aurangabad Breweries Ltd. Batch Size: 100 HL Time Taken for each brew – 8.5 Hrs Max. No. of Brews/ Days - 06 Nos.

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Fermentation Flow Chart

Image Courtesy: Aurangabad Breweries Ltd. Total No. of Unitanks:9 Total Fermnters : 8 Nos. Total Storage Tanks : 12 Nos. Total No. of Bright Beer Tanks : 04

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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

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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 massproduced 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

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them during packaging. This causes a short period of fermentation which produces carbon dioxide.

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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

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bitterness that balances the sweetness of the malt; hops also contribute floral, citrus, and herbal aromas and flavours to beer. The acidity of hops acts as a preservative that—after its introduction—gave brewers the ability to transport their product over longer distances, thereby allowing for the rise to commercial breweries. The bitterness of beers is measured on the International Bitterness Units scale.

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. Ale is typically fermented at temperatures between 15 and 24 °C (60 and 75 °F). At these temperatures, yeast produces significant amounts of esters and other secondary flavour and aroma products, and the result is often a beer with slightly "fruity" compounds resembling apple, pear, pineapple, banana, plum, or prune, among others.

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

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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.

Pale and dark beer
The most common colour is pale amber produced from using pale malts. Pale lager is a term used for beers made from malt dried with coke. Coke had been first used for roasting malt in 1642, but it wasn't until around 1703 that the term pale ale was first used. 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.

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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

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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: • • • • • Well chilled (7 °C/45 °F) for "light" beers (pale lagers), Chilled (8 °C/47 °F) for Berliner Weisse and other wheat beers, Lightly chilled (9 °C/48 °F) for all dark lagers, altbier and German wheat beers, Cellar temperature (13 °C/55 °F) for regular British ale, stout and most Belgian specialties and Room temperature (15.5 °C/60 °F) for strong dark ales and barley wine.

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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.

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Taxation Policies
Excise Duties
Government has different policies for charging excise on mild beer and strong beer which is highlighted in the table below.

Mild Beer 1 100% of Manufacturing cost 2 RS. 16 Per Litre 1 2

Strong Beer 125% of Manufacturing cost RS. 20 Per Litre

Which ever is higher of above two conditions

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%.

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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. To more accurately reflect the growing regionalization of its business interests, MBL was renamed Asia Pacific Breweries Limited in 1990. Today, APB oversees a portfolio of over 40 beer brands and brand variants, including Tiger Beer, Heineken, Anchor and ABC Stout. The group operates an extensive global marketing network, which spreads across 60 countries and is currently supported by breweries in countries including Singapore, Cambodia, China, India, Laos, Malaysia, Mongolia, New Zealand, Papua New Guinea, Sri Lanka, Thailand, and Vietnam. 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 benchmarks itself against international brewing standards and observes the most stringent brewing process that sees no less than 250 quality control checks. This explains why APB breweries are among the forerunners in their respective markets with various Quality Assurance Certifications including the ISO 9002, ISO 9001:2000, and the Hazard Analysis and Critical Control Point. 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.

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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.

Fraser & Neave, Limited
Fraser and Neave, Limited (F&N) is a leading Pan Asian Consumer Group with core expertise and dominant standing in the Food and Beverage, Property and Printing & Publishing industries. Leveraging on its strengths in marketing and distribution; research and development; brands and financial management; as well as acquisition experience, it provides key resources and sets strategic directions for its subsidiary companies across all three industries. F&N's commitment is to grow and strengthen its core businesses so as to provide sustainable earnings to shareholders through geographical expansions. 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

Papua New Guinea
South Pacific Brewery Ltd.

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. 40

Vietnam Brewery Ltd.

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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 Huang Hong Peng Regional Director, CEO's Office Mr Lee Meng Tat Regional Director, China Mr Vivek Chhabra Regional Director, South Asia & Director, Group Business Development Ms Loy Juat Boey Director, Group Finance Mr Nah Kok Chun General Manager, CEO's Office 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 42

APB - INDIA
Office Address: 405, Rachanaa Magnum Opus, Shanti Nagar Industrial Area, Near Grad Haytt Hotel, Vakola, Santacruz East, Mumbai 400 055

On 2 May 2006, APB made its second investment in South Asia by expanding its brewery network to include India. APB currently holds a

Registration No: B.S.T. NO. 431136-S-17 DT. 01-04-96 CST NO. 431136-C-10 DT. 01-04-96

76% stake in Asia Pacific Breweries (Aurangabad) Limited (APB (Aurangabad)) which owns a brewery in Maharashtra. APB (Aurangabad) produces and markets Tiger, Baron's and Cannon-10000. 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. Today total turnover of the company is approximately 100 crores Asia Pacific Breweries (Aurangabad) Ltd. & Pearl

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. 43

• •

Maintain business confidentiality. Have fun at work and strike balance between work and personal life.

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Locations of Operation

• • • • • • •

Mumbai & Navi Mumbai Thane & Raigarh Delhi Goa Hyderabad Aurangabad Bangalore

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Organization Structure

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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.

APB BRANDS in India • Tiger beer • • Baron’s Strong Brew. Cannon 10000

Tiger Beer

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Details of Tiger beer are discussed in detail in marketing mix section of this project.

Baron's Strong Brew
Launched in Singapore in 1997, Baron's Strong Brew is European to the last drop. Traditionally blended from the finest European hops and malt for a strong smooth taste, Baron's delivers a message of solid European heritage. Its authenticity has translated into a strong presence in the high alcohol beer category. Baron's packaging is distinctive in design, reflecting its premium image and quality.

Cannon 10000 Super Strong Beer
Cannon 10000 is a flagship brand of Aurangabad Breweries which is now acquired by APB. Cannon 10000 enjoys strong brand recall and reach in Tier 2 and Tier 3 cities of India. As name suggests brand is famous for its super strong beer image and stronger kick. Thus calling it strong beer for strong men.

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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.

ABC Extra Stout
Determined, confident and successful, APB's proprietary ABC Extra Stout reflects its core drinker's values and self-image. ABC Stout drinkers know what they want and will go the extra mile to get it. They want the best and do not settle for anything less. Appreciated for its full-bodied and robust taste, ABC is the leading premium stout in Cambodia.

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 selfprogression, 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” Punch Line – It’s Tiger Time / Enjoy Winning

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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. • • • • • • • • • • • • • • It’s Tiger time Enjoy winning Passion for winning Sometime it’s OK to let other beat you but only in their dream Reserved for winners Here’s a way to start your winning streak Pick a winner I only serve winners Don’t stop until you reach the top Real winners have lots of love to give. Winners go further Winners get the best seats The view is better when you’re on the top Some victories are hollow; others have tiger beer in them.

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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. • Tiger is available in more than 60 countries with strong position in markets of Southeast Asia such as Singapore, Malaysia and Vietnam. • 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. • In May 2006, Anheuser-Busch was appointed the importer of Tiger Beer in the USA. The tie-up has since given APB access to a strong network of 500 wholesalers and Tiger Beer is currently traded in 48 of 50 states there. • This authentic Singapore brand can be found in over 8,000 premium bars/clubs and distribution outlets in UK's major cities such as London, Manchester, Leeds, Newcastle, etc. • Tiger Beer's award-winning taste has picked up over 40 internationally acclaimed accolades and awards. The most notable include the Brewing Industry International Awards, UK, 1998 (the equivalent of the Oscar Awards for the brewing industry) and more recently, Tiger Beer won the Gold medal in the European Style Pilsener category of the 2004 World Beer Cup, a competition which is considered "the Olympics of Beer Competitions" by the industry. • 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.

Factors affecting pricing decisions

Primary considerations in price setting

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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.

APB (Aurangabad) Ltd
Brand Name Cannon 10000 Baron’s Tiger Type Strong Beer Strong Beer Mild Beer M.R.P. 54.15 58.35 58.33 E.C.P. 64.98 70 70

UB Group
Name of Brand Kingfisher Strong Kingfisher Mild London Pilsner Zingaro Strong Beer Type Strong Beer Mild Beer Mild Beer Strong Beer M.R.P. 59.95 55.80 35 55.79 E.C.P. 71.94 66.96 42 66.95

SAB MILLER
Name of Brand Foster Royal Challenge Haywards 5000 Haywards 2000 Knock Out Castle Lager Amberro Lager Type Mild Beer Mild Beer Strong Beer Strong Beer Strong Beer Mild Beer Mild Beer M.R.P. 60 54.17 60 54.17 56.67 45 35 E.C.P. 72 65 72 65 68 54 42

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LILA SONS
Name of Brand Khajuraho Khajuraho 10000 Khajuraho Lite Type Strong Beer Strong Beer Mild Beer M.R.P. 54.98 54.98 33.34 E.C.P. 65.98 65.98 40.01

Other Competitors
Name of Brand Budweiser (Anheuser-Busch) Carlsberg (South Asia Breweries Pvt. Ltd.) King Cobra Cobra Meakin 10000 Type Mild Mild Strong Mild Strong M.R.P. 62.49 66.66 56.66 E.C.P. 74.99 80 67.99

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Place
APB has breweries in Singapore, Malaysia, Thailand, Vietnam, Cambodia, China, New Zealand, Papua New Guinea, India and Sri Lanka. It also has joint ventures in India, Laos and Mongolia, and distributes to over 60 countries worldwide. The company's stronghold is in Asia Pacific, especially in Singapore, Malaysia, Vietnam, Cambodia, Papua New Guinea and New Zealand. 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 March 2006, Anheuser-Busch was appointed the U.S. importer of Tiger Beer. The new agreement significantly broadens Tiger Beer’s U.S. distribution opportunities by giving Asia Pacific Breweries access to Anheuser-Busch’s network of nearly 600 independent wholesalers. In 2005, the brand recorded double-digit growth in the United States. 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 Ahmed Nagar Akola Aurangabad Dhule Jalgaon Jalna Kolhapur Mumbai Nagpur Nashik Prabhani Pune Solapur Thane & Ulhasnagar Total Number of distributor 1 1 1 1 1 1 1 2 2 1 1 1 1 1 16

Distributors in Mumbai
Surya Sales & Marketing
Ph. 2850 4349 Ray Road (Godown) Girgaon (Office)

Mansha Agencies
Ph. 2370 0720 Sakinaka

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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.

Major Tools in Marketing Beer
Publications: Companies rely extensively on published materials to reach and influence target markets, including annual reports, brochures, articles, printed and on-line newsletters and magazines, and audiovisual materials. 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.

Marketing Activities at APBI
• • • • • • • Brand Advertising Promotional Activities in on & off trade Experiential marketing Consumer planning Relationship marketing Consumer PR Brand Website & online activities

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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 flyers Billboards & Hoardings • • Point-of-Purchase Ads Television and 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.

Above The Line (ATL) Activities ATL denotes advertising expenditure on mass media advertising, including press, television, radio, and posters. It is traditionally regarded as all advertising expenditure on which a commission is payable to an advertising agency. Company has appointed various agencies to carry out its ATL activities efficiently. They are: • • Leo Burnett Load Star • • 70 Media Weber Shandwick

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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 • • • Wobblers Shelf Talkers Posters • • • Bar (on-premise) Merchandise 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)

Event Management Company • Seventy Media Sales Promotion / Brand activation Agency • Market Men • • RW Promotions Pvt. Ltd. Candid Marketing

Outdoor Advertising Agency • Outdoor Advertising Professionals (OAP) Shop Signage Agency • Signage World • Map Arts

PR Agency • Weber Shandwick (A unit of The Interpublic Group) Duties & Responsibilities of PR Agency • Tracks & Monitors Media Daily. • • • • Prepares Fortnightly/Monthly reports/ drouchers Maintains Clips/Folders Provides Collateral Maintains Professional relationship with the media, by regularly sharing information

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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.

Objective of Sales Promotion Sales-promotion tools can be used to achieve a variety of objectives. Sellers use incentive-type promotions to attract new triers, to reward loyal customers, and to increase the repurchase rates of occasional users. • • Awareness Trials

Tools of Sales Promotion Sales promotion includes tools for consumer promotion: • • • • • Samples, Coupons, Cash Refund Offers, Prices Off, Prizes, • Trade promotion Includes: • • Prices off, Advertising and display allowances, Free goods • • Business and sales force promotion includes: • Trade shows and conventions, Contests for sales reps, Specialty advertising

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• • • • •

Free Trials, Tie-In Promotions, Cross-Promotions, Point-Of-Purchase Displays, Demonstrations

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Relationship between PLC & Marketing Strategies Like human beings, products also have life cycles. That is, they're born, and then—over time—their sales grow, mature, and finally decline. The strategies with which you market a product need to change with each of these lifecycle phases. The table below shows a few examples of how this might work:

PLC Stage
Product

Characteristics
Low sales, high cost per competitors Rising sales and profits, more and more competitors Peaking sales and profits, stable or declining number of competitors

Marketing Objectives
Create product awareness and trial Maximize market share Maximize profit while defending market share

Market Strategies
Offer a basic product, Use heavy promotions to entice trial Offer product Extensions Diversify brands Intensify promotion to encourage switching

Introduction customer, no profits, few Product Growth Product Maturity

Product Decline

Declining sales, profits, and number of competitors

to new brands Reduce expenditure Phase out weak and "milk" the brand Products, Cut price; Reduce promotion

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Various sales promotions techniques adopted at APBI
1. PRODUCT LAUNCH OFFERS FOR DEALERS FOR TIGER • Entry incentive scheme: 10 cases you get 4 cases free (one time validity for 45 days from date of launch) • Subsequent offer o 15 cases  1 case free o 25 cases  2 case free o 50 cases  5 case free o 250 cases  Singapore Trip (One person only) o 450 cases  Singapore Trip (Two person only)

2. Rs. 2 for Cap of Baron’s to waiters 3. Gifts (Pens, Openers) to people who preferred to drink Barron’s over other brand 4. On Premise promotion items like Ice buckets, Serving tray, Ash Tray, Premium Openers, Wall Clocks etc. given to Permit room owners 5. Promoters hired for Brand awareness campaign of Baron’s and Tiger 6. Tiger Bucket offer (Get 4 Tiger in price of 3) 7. IPL Activation promotion 8. Association with MTV splitz villa – a youth oriented program

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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 Sunday Brunch Tiger Bucket (grab 4 pints at price of 3) • • • • Exclusive tiger beer tie-ups Bar night Food Festivals Karaoke Nite

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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 Steps followed for permit room activation of Tiger Beer 1. Identify promotion need 2. Hire Agency 3. Briefing the agency 4. Agency product 5. Approval of idea or asked to come with new idea 6. Cost approvals by company 7. Agency to brief operation department 8. Recce (Reconnaissance) / Field survey by agency 9. Supplying gifts to be given to consumers 10. Start of activity / Execution of plan 11. Report submission by agency at the end of every day activity come out with plan / idea to promote

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12. Evaluation of reports submitted by agency 13. Performance evaluation / Tracking of reorders 14. Process complete

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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.

Designing a Powerful Sales Promotion
• Use sales promotions with advertising: For example, combine a price promotion with an ad emphasizing the product's features or with a pointof-purchase display. Or if you're marketing to businesses through trade shows or conventions, combine poster ads with sales-rep selling contests to get the most impact. • Be clear about your objectives: Your goals for sales promotions will vary with your target market. If you're targeting retailers, persuade them to carry your company's new offerings, to stock more inventories, to encourage off-season buying, or to offset competitive promotions. • Choose the appropriate promotion tools:

Depending on your objectives, select the right tools. For salespeople, launch sales contests—with prizes to the winners. If you're marketing to businesses through trade shows or conventions, use publications, videos, and other audiovisual materials to generate new sales leads, meet new customers face to face, sell more to existing customers, and educate customers.

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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 longerlasting market share if you use such incentives in markets of high brand dissimilarity.

Distinguish between price promotions and addedvalue 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". Most products have multiple levels of packaging. For example, Tiger Beer is packed in a glass bottle (primary package). These individual bottles are then packed in cartoon case (secondary package). Each of these packages serve a different purpose.

Tiger Bottle Shield

Tiger Label Design

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Primary Pack – 330 ml Pint Bottle

Primary Pack – 650 ml Quart Bottle

Secondary Pack - 4 X 330 ml Bottle Pack Imported (etch-out)

Secondary Pack - 6 X 330 ml Bottle Pack Imported (etch-out)

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Beer Advertising
Advertising of beer is a topic that has frequently attracted the attention of industrial organization economists. For beer advertising several interrelated issues should be analyzed, including: 1. The importance of advertising and product

differentiation for structural change in the brewing industry 2. The manner and extent to which brewers can strategically alter market shares using advertising 3. The social costs of alcohol advertising and marketing. Analyses of both issues include attempts to determine the net welfare effects of beer advertising. On the third issue, economists have analyzed advertising’s possible influence on alcohol consumption and underage drinking, and as a contributor to social costs such as drunken driving fatalities. Several regulatory concerns are related to this issue, including use of advertising bans; advertising placements that might target underage youth; legal rights of states under the three-tier system of alcohol distribution; and other advertising or marketing restrictions that affect competition in the industry (e.g., price advertising bans, price-posting and price affirmation laws)

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Surrogate Advertising in liquor industry
The rule says “Advertisements which lead to sale, consumption and promotion of liquor should not be allowed.” So, in Surrogate Marketing, a product which is different from the main product is advertised, and has the same brand name as the main product. The product is called as “surrogate” and advertising through this channel is called “Surrogate Advertising”. It may include CDs, water, clothing, Apple juice, fashion accessories, sports goods or even events sponsoring! Surrogate advertising has been around ever since someone decided that certain things were probably not good in the interests of the community at large. The wisdom of the Government extends only to banning the advertising of tobacco or liquor. Not to the manufacture or marketing of these supposedly deadly substances. It is legal to manufacture liquor and cigarettes or beedis. It is legal to sell cigarettes at every roadside stall, even to unsuspecting children. But it is illegal to advertise it. And that is precisely why you have to live with surrogate advertising.

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Surrogate for Tiger Beer - Tiger Translate

Tiger

Translate

is

about

art,

music

and

encouragement, the essence of it lies in the fact that it’s an experience. It is about walking through spaces and feeling the vibes around. So with the launch of the very first Tiger Translate event in India, it is important to introduce people to this unique Tiger Translate experience again and again again in different regions of India

Why Tiger Translate in India
Given the fact internationally Tiger Translate was conceived as a platform for Tiger Beer to interact with the youth through art and music, post the launch of Tiger Beer in India it became a natural progression to launch Tiger Translate in India and expose the Indian youth to this unique Tiger Translate experience. While giving this experience, establish Tiger Beer as the preferred beer with the youth and provides a stage that brings the best of Asian creativity to the world and the best of world to Asia. 84

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

Tiger Translate launched in India on 24th May 2008
The event was launched through a glittering event in Red Light and Yashaab. Guest lists comprising of the known names form the various art faculty were present to pledge their support to the Tiger Translate platform. The launch for Tiger Translate was done by having an interacting session with the media with the artists who had come participate and perform at the launch of Tiger Translate. Around 657 guests/artists and numerous media turned out for this unique Tiger Translate experience continued till very late in the night. More info and interaction continues through the various substances at different places in Mumbai featuring different Art forms each of these events form a platform for Tiger Beer to interact with it’s audience/TG. Finalists from Mumbai are eligible to be showcased in the translate Global even taking place in London

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Events under tiger translate Graffiti Art Photography World Music Visual Animation

Judges on the panel Brinda chudasama miller Tino Francorsi Munir Kabani Pravina & jamal macklia

Competitors of Tiger Beer in Mumbai
• • • • Carlsberg Budweiser Kingfisher Mild Foster

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

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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. Carlsberg's tagline "Probably the best beer in the world" was created in 1973 by Saatchi and Saatchi for the UK market. It began to appear in company corporate ads around the world from the 1980s onwards. Carlsberg operates in India through South Asia Breweries Pvt Ltd, which manages the company''s businesses in the Asian region comprising India, Sri Lanka and Thailand. South Asia Breweries Pvt. Ltd. South Asia Breweries Pvt. Ltd., Plot 52, Sector 32, Gurgaon , India is Foreign direct investment company formed to brew, market Carlsberg brand beer in India. Carlsberg beer from South Asia Breweries is launched at various states in India, including Delhi / NCR, Maharashtra, Punjab, W Bengal, U.P., Goa with three operational breweries one in Rajasthan and one at Maharashtra and one at Himachal Pradesh. South Asia Breweries Pvt. Ltd. currently employ over 200 professionals and demonstrates strong market presence in share of premium beer sector in India. Carlsberg launched in Mumbai on 14th May 2008.

Budweiser
Budweiser (Anheuser-Busch), from

Anheuser-Busch in the United States. Marketed as

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"Budweiser" in United States and Canada, and marketed as "Bud" or "Anheuser-Busch B" in Europe. Budweiser was introduced in 1876 when company founder Adolphus Busch set out to create the United States’ first truly national beer brand – brewed to be universally popular and transcend regional tastes. Each batch of Budweiser follows the same family recipe used by five generations of Busch family brewmasters. Samples of Budweiser are flown into St. Louis everyday from each of A-B’s 12 regional breweries. There, in a special tasting room, the beer is sampled and judged by our brewmasters to ensure its quality and consistency. Anheuser-Busch International and Crown Beers have signed a 50:50 joint venture agreement to brew market and distribute The King of Beers and other brands in India. Crown Beers India Ltd. includes a new 500,000-hectoliter brewery in the southern city of Hyderabad. Crown Beers India Ltd. will collaborate on all local management, marketing and sales decisions, according to a press release from the St Louis-based beer major. ``The Hyderabad brewery was designed to uphold Anheuser-Busch's high standard of quality for brewing Budweiser,'' said Mr Srikanth M. Reddy, Joint Managing Director of Crown Breweries Ltd. An Anheuser-Busch brewmaster will oversee local production of Budweiser at the brewery, to assure the same crisp, distinctive taste enjoyed by consumers around the world. Budweiser is an American lager brewed since 1876 using a blend of US and European hops, and a combination of barley malts and rice, the release added.

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Crown Beers is planning massive below-the-line activities to make its presence felt in the market.

Kingfisher Mild
The beginnings of what is today The UB Group are rooted in the flagship company, United Breweries Limited, (UBL) also referred to as the Beer Division of the UB Group. Led by Mr. Kalyan Ganguly, President & Managing Director, it has around 48% market share in the country. Millennium Alcobev Pvt. Ltd., (MABL), is the Joint Venture Company in which UB along with its subsidiary and Scottish & Newcastle of the UK have equal stake of 50%. United Breweries Limited, the flagship company of the UB Group, has an association with the brewing dating back over five decades, starting with 5 breweries in South India in 1915. From bullock cart-loaded barrels or 'hogheads' of frothing ale, the Beer business has gone on to become the undisputed 'king' in the Indian beer market. Here, innovative, creative and aggressive marketing is complemented by a strong distribution network. A management focused on building brand equity on one hand and exploiting it to the hilt on the other. UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the Country. Kingfisher has achieved international recognition consistently, and has won many awards in International Beer

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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. In addition, UBL has also entered into mutli-faceted strategic alliance with Scottish & NewCastle Plc (S&N), an international brewery major, with $6 billion in revenue and a market capitalization of $5.4 billion.

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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. In the year ended 31 March 2006, the group reported US$2,626 million adjusted pre-tax profit and a turnover of US$15,307 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.

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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. Brewer's yeast is known to be a rich source of nutrients; therefore, as expected, beer can contain significant amounts of nutrients, including magnesium, selenium, potassium, phosphorus, biotin, and B vitamins. In fact, beer is sometimes referred to as "liquid bread". Some sources maintain that filtered beer loses much of its nutrition. A 2005 Japanese study found that low alcohol beer may possess strong anti-cancer properties. Another study found nonalcoholic beer to mirror the cardiovascular benefits associated with moderate consumption of alcoholic beverages. However, much research suggests that the primary health benefit from alcoholic beverages comes from the alcohol they contain. It is considered that overeating and lack of muscle tone is the main cause of a beer belly, rather than beer consumption. A recent study, however, found a link between binge drinking and a beer belly. But with most overconsumption it is more a problem of improper exercise and overconsumption of carbohydrates than the product itself. There is conclusive evidence that heavy and prolonged consumption of alcohol leads to liver disease including cirrhosis and malignancy. Heavy alcohol consumption has also been linked to pancreatitis and gout. Several diet books quote beer as having the same glycemic index as maltose, a very high (and therefore

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undesirable) 110. Critics rejoin that beer consists mostly of water, hop oils and only trace amounts of sugars, including maltose.

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Community & Environment
A Responsible Beer Company
As a responsible beer company, APB believes in contributing to the communities in which its breweries operate. While the Asia Pacific Breweries Foundation has been fulfilling APB's philanthropic commitment to society, APB's breweries have also demonstrated their dedication to the society in which they are based. The breweries have each in their own ways, supported causes in education, community welfare and the advocacy of Responsible Alcohol Consumption. The commitment of APB to environmental

protection and worker safety extends throughout the organization. Apart from seeking to continually improve its environmental performance by operating more efficiently and reducing waste, APB also takes the responsibility of providing a safe workplace very seriously. Our Environment and Safety Report provides an overview of our activities, including how our performances measure up to the targets set.

Asia Pacific Breweries Foundation
Instituted in June 1994, the Asia Pacific Breweries Foundation (APB Foundation) has been fulfilling APB's philanthropic commitment to society. Its philanthropic intent spans three areas namely Creativity Development, Human Excellence and Humanitarian Causes.

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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. The APB Foundation Board of Trustees, assisted by its Advisory Committee, envision the Foundation to play a constructive and developmental role in the community, and working with partners who share common altruistic goals to better serve societal needs both in Singapore and the Asia Pacific region.

Responsible Alcohol Consumption
As responsible corporate citizens, APB and its breweries advocate responsible alcohol consumption and are pro-active in company stance against alcohol abuse, in particular underage drinking and drink driving. Mindful of social responsibilities, APB has always ensured responsible marketing and promotion of our beers and support responsible and sensible drinking campaigns which promote public awareness and educate consumers on responsible and moderate drinking. Amongst the many initiatives APB has participated in are Get Your Sexy Back, a campaign that promoted drinking in moderation amongst youths in Singapore; the Know When campaign held in collaboration with the National Traffic Safety Committee of Vietnam to educate the public on drinking responsibly; the annual Responsible Drinking campaign by the Singapore Traffic Police; Responsible and Ethical Alcohol Consumption in Thailand; and the Social Alcohol Model program in Papua New Guinea. 95

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

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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. The apex body representing 42 beer manufacturers, has urged the food processing ministry to delink beer from the status of liquor and whisky, so that it can be advertised and marketed like any other product. They have argued that liquor has an alcoholic content of 42.8% while beer has only up to 7%. Beer is battling to get the status of milk. The all India Brewer's Association (AIBA) have argued in a memorandum to the government that a glass of beer contains more protein than does the same quantity of milk. Not just that. They have said that the calorie content in beer is lesser than that of a bottle of apple juice, milk or any cola. So do not club beer with hard liquor in computing tax, argues the industry. "It has been given the status of a fast moving consumer good (FMCG) that can be traded over the counter at any departmental store", says the Vice-President and President of Shaw Wallace. "Beer distribution has to be made open as in Singapore." The industry's representation for removing beer restrictions are straight and simple: Beer is only an agrifood. Arguing that it has neither fat nor cholesterol, the beer manufacturers' body has told the government that an average bottle of beer gives four vital minerals and five important constituents of vitamin B and proteins. Raw material for

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beer is malt, the same as for health drinks Maltova and Horlicks. In their representation titled 'Indian Beer Industry Needs Policy Support'. AIBA has pitched beer as a "mild and healthy beverage", conforming to the tenets of "responsible" drinking. "Beer has to be taxed on the basis of alcoholic strength keeping levels on alcohol content as bench mark", say many of the top manufacturer's. Duties and tax account for 40% of the beer cost in India while it is of the order of 20% in US, France and Germany. They have said that the cost of one litre of beer taken as percentage of daily income in the high selling states of Andhra, Karnataka and Maharashtra is close to 28%. The comparable figures for US, France and Germany are less than 3%. And if India attains this level of even 15% then the beer should cost around Rs. 30 per litre (Rs. 20 per bottle). "It is a highly capital intensive business. It is not feasible for the brewers to sustain the current market pressure", says the top shots. "Brewing companies are increasingly being declared sick", they add.

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Top 10 Reasons Beer is Good for your Health
Everyone is looking for a reason to drink beer. Right? It turns out that a lot of people are. So here are 10 great reasons to drink more beer. Not only that, but they're all true. Beer really is good for your health, so drink up!

Beer Reduces Stress
Alcohol in general has been shown to reduce stress. This one is obvious, and may be the best reason beer is good for your health. Beer is Good for the Heart A study was conducted from 1982 - 1996 on the elderly. It was found that those who drank at least 1.5 per day had a 20-50 percent less chance of having heart failure. Beer Improves Blood Circulation Beer increases your "good" cholesterol, or HDL (highdensity lipoprotein) cholesterol. Its basically a kind of blood fat, so it reduces blood's tendency to clot. Beer is Chock Full o' Fiber The fiber comes from the cell walls of the malted barley. A liter of beer can have as much as 60% of your daily recommended fiber. The extra fiber will keep you regular and can also lower the risk of heart disease. Beer as a Multi-vitamin

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Beer is a significant source of magnesium, selenium, potassium, phosphorus, biotin, folate, vitamin B6 and vitamin B12 Beer can Prevent Strokes A study published in Stroke magazine in 2001 showed that alcohol drinkers have fewer strokes. Because it thins the blood, it increases the circulation in the brain, thereby protecting from silent strokes which are cause by tiny blood clots.

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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. Beer is Good for your Liver Alcohol expands the small blood vessels in the liver. This speeds up metabolism so it can help clean all the toxins out of the liver. This is from Beer Net Publication, April 2001 Biological Institute. Beer Cures Insomnia Lactoflavin and nicotinic acid, both present in beer, can promote sleep. Also hops are a natural sedative. Beer Fends off Gallstones According to Professor Oliver James at the University of Newcastle, beer protects against gallstones and kidney stones.

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The Future
Recently, concern among citizens' groups over the excessive consumption of alcoholic beverages by some individuals has initiated additional government regulation of beer. New warnings have been added to labels, warning of impaired driving, hazards to pregnant women, and other health ailments associated with alcohol consumption. Reduced tolerance for drunk driving, for example, encouraged many brewing companies to advocate responsible consumption. As a result, certain states have established laws to control the alcoholic content of beer for sale within their jurisdiction. The beer industry will continue to contend with these large social issues.

Much research is currently conducted in the area of plant engineering. Brewery researchers are manipulating the genes of barley and other common grains to increase their resistance to disease and to encourage helpful mutations. This genetic research also extends to improving the yeast. Current research is aimed at producing yeast strains that resist contamination and to making new varieties of yeast that can ferment carbohydrates, which common yeasts cannot process.

The brewing industry is also making advances in the area of rapid testing for contaminants. New technology such as DNA probes and protein and chromosome finger-printing is being developed by brewers to detect microorganisms that can adversely affect the brewing process. Some of this

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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.

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Conclusion

In a massive (over 100 million cases), fast-growing and difficult beer market like India where beer drinkers have strong brand affinities and where brands like Kingfisher are almost ubiquitous, Tiger beer needs to establish its unique identity and consumer base by focusing on a niche market (as it cannot spend / act like big beer brands with deep marketing pockets)

Tiger beer is a world beating, award winning, great tasting beer of very high quality. Tiger beer has effectively been using the platforms of electronic music and contemporary art to connect with its target consumers in the Indian market.

Marketing spends are limited so we need a guerilla marketing strategy to win.

Although beer consumers have strong loyalties, there are still needs which are not being met by their current beer brands.

Beer is largely perceived as a mass market product with no clearly defined target consumer. Tiger beer needs to focus on a targeted niche market to differentiate itself and position itself uniquely in the consumer’s mindscape.

Focus should be on the upwardly mobile beer drinker who enjoys drinking beer but still has status

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& discernment needs which he would like to communicate through his brand choices

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Questionnaire
1. List the company's product line(s) and the amount and percentage of total sales represented by each. 2. What is Company’s USP? 3. How is the company's product or service distributed to its primary market? 4. List the company's major competitors. 5. What is the company's market share? Attach market study or survey, if available. 6. Describe the nature of the regulatory environment in which the company operates. 7. List the company's distributors for Mumbai location. 8. What are the factors which should be kept in mind while marketing beer in India? Offering 9. What need is your offering designed to fill? 10. What improvements can we make to our offering to better meet customer needs? Messages 11. What does each of our identified target audiences know and believe about us today? 12. What is the single most important message that we must communicate to ALL of our target audiences? 13. What kind of personality do we want to portray in our communications? What tone? What flavor? Target Audience 14. How can the market be segmented into logical customer groupings? 15. What market segments are we targeting (list segment name and characteristics)? 108

16. What segments are we not targeting? 17. What is our customer’s primary reason for buying or wanting to use our product or service?

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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 19. What is the process for selling our services or products (list the key milestones in the process)? Do we use any of the following processes? • Direct personal sale • Direct online sale • Indirect through channels 20. How important is price in the purchase decision process? 21. What is our current pricing structure, including discounts, product options, rebates, and so on? 22. Which of our competitors is considered the price leader? What does the price leader charge for its offering? 23. What are our other competitors charging for their offerings? 24. What is the perceived value of our offering as compared to its price? Competition 25. Which companies pose the greatest threat, and how do they differentiate themselves? 26. List the strengths and weaknesses of each of your competitors. 27. Which competitors have the largest market share within our target market segments?

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28. Which competitors have the greatest visibility with our target audience? 29. How will we differentiate ourselves to best combat competition?

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Bibliography & Webliography
• Datamonitor, Beer in India, Industry profile, Publication December 2006 • • The Business Line (Internet Edition) Maharashtra state excise basic statistics 2005 Compiled by commissionerate of state excise. • • International Dictionary of Marketing - Daniel Yadin Marketing Management Millennium Edition by Philip Kotler

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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