Social Media &

Indian Beer Industry: A Research Report

Picture Source: http://linxonesolutions.com/blog/?p=1199
5 Key Research Findings
Kingfisher is the most popular brand among social
media users slide 15,17 and 19.
Maharastra state is the targeted geographic
region for all Beer Brands slide 15.
Twitter is the most used platform slide 16.
People associate beer and cricket slide 22 and 23.
Indian beer buyers are price sensitive slide 22 and 23.
Picture sourrce: http://theoandrosa.blogspot.in/, http://en.wikipedia.org/wiki/Maharashtra, http://www.ditii.com/2011/10/06/twitter-platform-issue-tracker-deprecates-google-code-tracker/,
http://www.pinelandscc.co.za/2010/09/pcc-inv-xi-vs-cuylerville-cc/, http://www.legalfutures.co.uk/latest-news/index-to-measure-success-of-legal-reforms
Contents
Indian Beer Industry Overview
Market Overview
Industry Analysis
Why Social Media is Required ??
Insights through Social Media
Conclusions of Analysis
Recommendations
Beer Industry Overview
Picture Source: http://www.novinite.com/view_news.php?id=103896
Indian Beer Industry
Huge growth since the liberalization and opening up of
economy in 1991.
Intolerance towards alcohol in India has decreased through
globalization and cultural influence of western countries.
Majority of Indian population falls in the age group of 18-35
years, which is the targeted segment for beer sellers.
So, India has become the ideal market for the industry.
Market overview
Indian beer market grew by 17.1% in 2010 to reach a
value of $5,022.8 million.
Volume grew by 13.8% in 2010 to reach 1,687.4 million
liters
Standard lager is the largest segment accounting for
91.8% of the market's total value.
United Breweries Limited is the leading player having
42.4% share of the market's volume.
Indian beer market is highly concentrated, with the top
three players holding 70.6% of the total market volume.
In 2015, forecasted to have a value of $9,639 million, an
increase of 91.9% since 2010.
Drivers and challenges
Drivers
Beer sale in India is forecasted
to grow at a CAGR of 17.2%.
India has an emerging middle
class-India has a healthy
urban workforce.
63% of the country population
is between the ages of 15-24.
Favorable regulatory
environment.
Challenges
Brewers must make
innovative and readily
available products to remain
competitive
Brewers must create a sense
of brand loyalty
Utilization of brewing capacity
to keep manufacturing costs
low.
Clever advertising to induce
beer drinkers to buy a
particular brand
Market Value and Volume
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50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
2006 2007 2008 2009 2010(e)
%

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Year
Market Value
Rs. million
% Growth
Data source: Datamonitor
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18
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200
400
600
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1000
1200
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2006 2007 2008 2009 2010(e)
%

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Year
Market Volume
Volume (million ltrs)
% Growth
Data source: Datamonitor
In 2010, Indian beer market
grew by 17.1% to reach a value
of $5,022.8 million. CAGR for
period 2006-2010 was 21.9%.
Volumes grew by 13.8% in 2010
to reach a volume of 1,687.4
million liters. CAGR for period
2006-2010 was 14.4%
Market Characteristics
Market Segmentaion
Standard lager
91.8%
Premium lager
8.2%
Ales, stouts &
bitters 0.0%
Low/no alcohol
0.0%
Specialty beer
0.0%
Data source: Datamonitor
Market Share
United Breweries
Limited 42.4%
SABMiller 22.8%
Mohan Meakin
Limited 5.3%
Others 29.4%
Data source: Datamonitor
Standard lager is the largest
segment accounting for 91.8% of
the market's total value. The
premium lager segment comes
second and accounts for a
further 8.2% of the market.
United Breweries Limited is the
leading having a 42.4% share of
the market's volume. SABMiller
comes second and accounts for
22.8% of the market.
Environment Analysis
P
E
S
T

A
n
a
l
y
s
i
s

Political
Market Liberalization
Stringent Legal Policies
Economical
Change in exchange rate (foreign players)
Slow down of the developed economies and evolution of emerging
economies
Social
Change in consumption pattern (adaption of western culture)
Rise in the income levels, which has a direct positive effect on beer
consumption
Rise in middle class and increase of urbanization
Technologi
cal
Innovation and Development of new products
State of the art of brewery technique
Industry Analysis
Porters Five Forces Analysis
0
1
2
3
4
5
Buyer Power
Supplier
Power
Substitutes
New
Entrants
Degree of
rivalry
Data source: Datamonitor
Supermarket chains are able to
negotiate very strongly on price
But producers can also differentiate
their products quite strongly

Buyer Power
Medium

Non-vertically integrated businesses
Independent barley growers can find
alternative markets
Supplier Power
Medium
Barriers to entry are high.
But new entries can happen through
differentiated products.
New Entrants
Medium
Main substitutes are spirits and
wine.
Switching costs are not high for
retailers.
Substitutes
Medium
Market is highly concentrated high
competition.
Purchasers have low relatively low
switching costs.
Rivalry
Medium
Indian beer market is
highly concentrated, with
the top three players
holding 70.6% of the total
market volume.
Overall attractiveness of
the market is medium

Social Media Research
Brands Considered
Refreshing beverage represents lifestyle choice for Indians.
Tuborg is famous for easy to drink, low flavored pilsner
beer with its transparent bottle
A Danish companys with Pilsner Beer, a pleasing mix of
bitter and sweet .
Toasted malti-ness and mild fruitiness of this pale gold
lager.
This Aussie lager is full-bodied, malty and eminently
drinkable.
Haywards 5000 is brewed with the choicest of malts and
hops lending itself to a unique flavor.
Fresh, light taste with transparent bottle
Known for great taste and innovation.
Why Social Media?
70% of the social media users in
India accessed a social
networking site daily-Neilsen
survey
37% of the heavy social media
users in India fall in the age
group of 21-30 years
(alootechie.com, Sept. 2010)
The age group 21-30 years is the
targeted segment for Beer
market. They talk alot on social
media, which can be exploited
and used as competitive edge
People talk a lot about their preferences and dislikes only.
People uses the about beer daily.
The keyword BEER tracked by us had about 250 daily conversations
in India.
Social Media Research has faster turn around time, has bigger sample size and is
more accurate and reliable.
Insights
through
Social Media
Picture source: http://emarketinguide.com/2010/11/few-web-updates-insights-part-2/
Audience Gender and Age Distribution
77%
23%
Audience Gender distribution
MALE
FEMALE
15
58
23
4
0
0 20 40 60 80
13-17
18-25
26-35
36-45
45+
Percentage
Audience Age Distribution
Beer brands have more male
patronage than female.
People in the age group of 18-25
years, which is target segment for
beer, talk more about beer
Brand Localization
Kingfisher is present
in almost all states of
India.

Miller Lite has
noticeable presence
only in Tamil Nadu.

Almost all brands are
most famous in
Maharastra.
Channel Distribution
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0100.0
Kingfisher
Tuborg
Carlberg
Heineken
Foster's
Haywards 5000
Budweiser
Miller Lite
Channel Distribution
BLOGS
VIDEOS
DISCUSSIONS
NEWS
OTHERS
FACEBOOK
TWITTER
FLICKER
Beer brands get highest coverage from Twitter and News.
Share of Voice and Brand Opinion
Share of Voice
Kingfisher
Tuborg
Carlsberg
Heineken
Foster's
Haywards 5000
Budweiser
Miller Lite
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Brand Opinion
Positive Negative Neutral
Kingfisher has the maximum share of
voice among all the brands, amounting
to 88.3%. No doubt that it is the
market leader.
Almost all the brands have equal amount
of both positive and negative opinions
with few negative once also.
Social Buzz Benchmarking
0
10
20
30
40
50
60
70
80
90
100
Social Buzz Benchmarking*
Opinion Score Influence Score
Definition of Buzz Metrics used for Benchmarking (more the better for both Scores)
Opinion Score: Opinion Score based on the sentiments of the posts towards the brand.
Influence Score: Influence Score defined by overall buzz, uniformity of the buzz over time,
and diversity of buzz across channels.

Kingfisher has the highest
Influence score, which make it the
most talked about brand among
competitors.

Fosters and Miller Lite have the
highest Opinion score, which
means that they have very less
negative opinions.

*Note : Global buzz ignored.

Platform Affinity and Buzz Score
Overall Audience Platform
Affinity
BLOGS
DISCUSSIONS
NEWS
TWITTER
OTHERS
0
10
20
30
40
50
60
70
80
Buzz score*
People use twitter most to talk about
beer than any other platform.
Buzz Score: It is degree to which a brand get attention in market
Kingfisher has the maximum buzz score,
which means it gets maximum attention
among competitors.
*Note : Global buzz ignored.

Why Kingfisher so Popular??
Courtesy : www.wordle.net
47%
13%
40%
Opinion
Positive Negative Neutral
Kingfisher is famous among various beer brands due to its association with Cricket(IPL), which is
the most talked about work along with beer (slide 24).

Kingfisher also have some negative sentiments in relation employee management issues (salaries,
boycott etc) , covered extensively by news media.
Opinion Score v/s Influence Score
0
10
20
30
40
50
60
70
80
90
100
Opinion Score
Influence Score
A regression test was run on carried on Opinion score and Influence score. The value of
regression coefficient R
2
=0.2030, which proves that there is no established relationship between
Opinion score and Influence score.

This also disproves the point that when people talk they talk only negative or only positive.

What is talked about Beer? (1/2)
Courtesy : www.wordle.net
The most used words in association with beer:
IPL, People, Kingfisher, Easter, Cricket, Price, Party , Food and Tax
What is talked about Beer? (2/2)
Courtesy : www.wordle.net
Common Topic of Discussion
People associate beer mostly with cricket. Maybe they want to drink beer while watching
cricket.
Second most talked about keyword is Kingfisher. Common people relate beer with
Kingfisher in India.
People also associate beer and food.
Price is also talked about in association with beer. This represents cost sensitive customers.
47%
2%
18%
4%
10%
1%
16%
2%
Keyword Analysis
IPL (Cricket)
People
Kingfisher
Easter
Price
Party
Food
Tax
Conclusions of Analysis
Courtesy : www.wordle.net
Beer brands have more male patronage than female. They should also target female
population.
Tuborg and Carlsberg do not have good brand patronage across nation. Kingfisher has the
best national coverage.
Price is also talked about in association with beer. It can serve as an input to companys
pricing strategy.
Cricket and beer go together. Beer companies can create brand campaigns associated with
cricket to be more successful.
Recommendations
Courtesy : www.wordle.net
People talking in social media falls in the same age group as targeted customers of Beer
companies. So it is suggested that brands make good use of Social Media.
Brand Image can be created and managed through social media by engaging existing and
potential customers.
Innovative products is the requirement to remain competitive in beer industry. What the
customers actually want can be known by tracking their online conversations.
By adding online strategy to their marketing mix, Beer companies can tie together everything
they are doing both offline and online.
Beer companies can use online crowd-sourcing for product development. People will tell you
what they want.
By creating online buzz, beer companies can reduce their marketing expense.
Research Methodology
1. General characteristics of Indian beer are analyzed using the report Beer in
India December, 2011 by Datamonitor.

2. Analysis using social media
1. 15 Brands of Indian Beer Industry were considered.
2. Data was collected from April 1, 2012 to April 17, 2012.
3. Chosen channels are Twitter, Facebook, Blogs, News, Flickr, Forums
and Youtube.
4. Buzz in the Social Media Space about the brands were tracked using
Simplify360.

3. Conclusions are drawn considering general Industry characteristics and insights
from the social media.
(c)2012 InRev Systems
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Prepared by Karan : Social Media Research Analyst @ simplify360