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The Indian Beer Industry
• The beer market accounts for roughly 10% of all alcohol sales in the country. • The beer market in India is estimated to be over Rupees 3000 corers. • It is estimated at around 7 million hectoliters. • Beer consumption has increased by 9% over the last 5 years. • In India, beer sales grew at nearly 90% compared to, less than 60% growth for other alcoholic drinks. • The top 2 beer players in India account for about 75% of the market. • The spirit to beer consumption in India is 7:1.
(UNITED BREWERIES LTD.)
UBL's leading Brands
• • • • •
Kingfisher Premium Kingfisher Strong UB Export Lager London Pilsner UB Premium Ice
Lager in East India
• Kalyani Black Label Premium - Largest selling • Kingfisher Premium has raced to sales of 18.8 million cases • Kingfisher Strong became the fastest growing brand. Its sales crossed the 10 million cases mark within 5 years of introduction.
UBL – Sales Forecast
• Sales revenue up by 26%. • Gross margin maintained despite increases in input costs. • Market Share up by 1% Against same period of previous year. • UBL added to its market share, growing at 9.2% against industry average of 7.7%, powered by a 23% growth in strong beer.
• Kingfisher Strong continues its march recording a 24% growth this year, retaining its position as the country’s largest beer brand. • Kingfisher Premium continues to be the King in the mild beer segment. • Kingfisher Beer accounts for 29% out of 50% of UB.
q q q q q q q q Budweiser Carling, Carlsberg, Dansberg, Golden Eagle, Guru, Heinekin, Hi-Five. qLegend, qLondon Draft, ` qMarcopolo, qSan Miguel Lager, qSand Piper, qStrohs, qStud qZingaro.
Fosters: It is a Premium Lager beer with a Fresh taste. is a light beer highly carbonated with low bitterness and no aftertaste. It has fewer calories and lower alcohol content. Haywards: the brand is most well known for its Haywards 5000 label -a top selling strong beer that contains 7% alcohol. Haywards also produces Haywards 2000, a mild beer with 5.5% alcohol, and the rarer super strong Haywards 10000. Kings: is only brewed and sold in the state of Goa. The Kings Black Label premium pilsner is a very light
• Budweiser. Largest selling in USA it has 5.0% alcohol by volume and 145 calories per 12 oz., except in Utah, Minnesota, Kansas and Oklahoma where a 3.2% alcohol by weight (4.0% by volume) strength is available due to state laws. Minnesota and Colorado require 3.2% alcohol by weight beer only at select public events and beer being sold in grocery stores and gas stations. • The Carlsberg Group is a Danish brewing company founded in 1847 by J. C. Jacobsen after the name of his son Carl. The headquarters are in Copenhagen, Denmark. in January 2001, Carlsberg became the 5th largest
State wise Beer Consumption
India's beer consumption extended robust growth for the third year in a row with 14.5% volume jump in FY08.
State wise Andhra Pradesh Tamil Nadu Karnataka Maharashtra Rajasthan Haryana Delhi Orissa, West Bengal and Jharkhand Uttar Pradesh (de-growth) Consumption 15.4% 11.6% 24% 5 – 6% 26% 30% 3% 20 – 25% 7%
BEER MARKET : FEATURES
• States’ prohibition policies Beer packed in 650,750 & govern trade sales for 1000 ml glass bottles; beer usage of (330 ml) cans • Multi layer trade channel minimal structure Preference in the Indian • Beer sold through the same market for strong beer outlets as IMFL Import duty on beer - 100 % • Institutional sales of beer to basic; 10 % surcharge; star hotels, large SAD : 4 % restaurants, bars/ pubs Sales taxes - 45% , 5% cess • South and west zones (State subject). account for bulk (> 75 %) Excise Duty - Rs. 4/ Bulk litre of this market in Karnataka (State • Major beer consuming
The Brand – Kingfisher
• The largest selling Beer in India • Commanding a 25% market share in the country • Every third Beer sold in India is Kingfisher • Available in 52 countries across the globe • The first among Indian brands to launch its own range of designer wear.
• Lager : It is stored for a specified period before being bottled or canned. • • Pilsner : A type of lager beer, it is light with 3.0 - 3.8% alcohol. • Ale : Top fermented, this kind of beer has distinct aroma. The alcohol content is around 4 - 5%. • • Stout : Dark with burnt flavor and strong malt aroma; contains 5 - 6.5% alcohol. • Porter : This is less dark than stout, is somewhat sweet. Alcohol content is around 5%. • • Creamy Ale : A highly carbonated beer that is produced by a combination of Ale and Lager. • Malt : A strong flavored, high alcohol content beer that ranges in flavor and colors. •
Marketing Mix Analysis
M a rk e t P o sitio n : It is the largest selling brand in India and commands 29% market share. TARGET AUDIENCE : 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.
• No. 1 selling product in its segment. • Good quality raw material is used to maintain the quality standards. • Consistency of product quality is high. • Always tastes fresh due to good quality and well developed distribution network. • Hangover due to heavy consumption is very mild.
• 650ml – Rs.65 • 330ml – Rs.35
• It is available throughout India, and is dominant particularly in South and West India.
• UB has 16 company-owned breweries & 9 contract breweries in 20 different locations.
• Kingfisher also has an online marketing system @ www.Kingfishernetshop.com • It also has some 1600 shops apart from pubs and bars.
• Kingfisher also has tie-ups with large department stores like ‘Foodworld’ for retailing. • It has association with Very Classy, Up-market & Stylish bars & lounges.
KINGFISHER – Profile
TARGET AUDIENCE • SEX: Male • AGE: 28 years • NATIONALITY: Indian
PSYCHOGRAPHIC – Segmentation
Lifestyle: Easy going, ‘chilled out’ person who’s always willing to take a break and party with his pals, as long as the sun is shining and the beer is flowing.
DEMOGRAPHIC – Segmentation • • Age : 25-35 years • Region : India, urban population • Occupation : White-collar service/professional • Religion : Insignificant • Social class : Middle and upwards • Family life cycle : Young, single/married. •
BEHAVORIAL – Segmentation
Occasions: Regular user User status: Repeat user Loyalty status: Near absolute Readiness Stage: Informed Attitude toward product:
• Kingfisher tagline ‘King of good times’ • Kingfisher uses surrogate advertising methods like using mineral water and sodas. • Aggressive advertising at Outlets & Pubs. • Recently it also started merchandizing sports goods and trendy clothing and accessories under Kingfisher brand name. • Each year Kingfisher brings out new calendars featuring top models in swimwear. • Kingfisher also promotes itself by sponsoring events like fashion shows, sportspersons like Narain Karthikeyan, East Bengal soccer team. • Tying up with large department stores like Food-world for retailing its Beers.
Promotion – Making a Mark
Brand Re - Positioning
• During 2003-04 Kingfisher Kingfisher again repositioned repositioned itself itself by changing the logo. into a lifestyle • This change was made brand adopting mainly to maintain the jingles like ‘Oola la distinctive positioning le lo’ and tagline and to create a stronger emotional bond ‘King of good times’. with the aspiring Indian youth.
• 90% look at Taste while selecting a beer. • 75% Are loyal to Kingfisher Strong and are satisfied with the Taste •
• 95% people think that Kingfisher is priced perfectly and consider it worth the amount • Most people would not switch over to competition •
• Consumers prefer drinking at public places, even though the price is slightly higher.
• People who consume beer are mostly aware of the ads (surrogate). • The Oo--la -la campaign by kingfisher was extremely successful.
• Consumers prefer the bottle • They would be impressed if a special mug is offered.
• Kingfisher has TOM awareness and Recall • Budweiser, Fosters
• The consumption of beer is maximum amongst the Youth.
Survey done following
• • • •
on bases of parameters
Sample size- 50 Age : 25-35 years Region : urban population Occupation : White-collar service/professional • Social class : Middle and upwards • Family life cycle : Youth
• Which is the preferred brand in BEER?
1.Kingfisher 2.Fosters 3.Carlsberg 4.Budweiser 5.Hayward 6.Others •
• What do you look at while selecting beer?
1.Brand name 2.Quantity 3.Taste and flavor 4.Satisfaction 5.Value for money 6.Praise from friends 7.Any other
• How much do you spend on a one time purchase?
1.200/- to 250/ 2.150/- to 200/3.100/- to 150/4.50/- to 100/5.Below 50/•
• Would you switch to another brand if the price of Kingfisher increases?
1.Definitely Yes 2.Probably yes 3.Definitely no 4.
• Where do you purchase the drink from ?
1.Wine Stores => 5 2.Club=> 1 3.Local drink stores=>1 4.Bar=>2 5.Pub=>1 •
• When do you usually consume drinks and how often? 1. 2.In a party 3.Social Occasions 4.When in mood at home 5.With friends 6.Formal party
• How often do you consume beer?
1.Daily 2.Once in a week 3.Twice in a week 4.Once in month 5.Once in six months
• Are you aware of what surrogate advertising is? 1.Yes 2.No. • Which brands do you recall who have used surrogate advertising? 1.Bacardi=> 1 2.Smirnoff=> 2 3.Haywards=> 1 4.Kingfisher => 1 5.Bag piper
• What would you prefer having beer in? And why ?
1.Bottle 2.Can 3.A designer glass 4.Any other suggestion 5. •
• Compare the following 3 brands on the features mentioned above . Each feature is to be given a rating of 1 to 5 for each brand . For e.g. , For the feature TASTE , rate the brands separately on BUDWEIS of 1 to FEATURES KINGFIS FOSTE CARLSBE a scale HAYWAR RS RG ER DS SATISFACT HER 2 3 4 5 5 1
ION TASTE AROMA COLOUR MOUTH FEEL BRAND NAME 1 1 1 1 1 2 2 3 2 2 3 3 2 3 3 4 5 5 4 4 5 4 4 5 5
• What other products/services/events besides beer are you aware of under the brand of Kingfisher?
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