This action might not be possible to undo. Are you sure you want to continue?
Lets Say Cheers to Pra ve e n K u ... Beer ... mar
Gag an K a s l i w a l Sne ha K e s h a n Ash mi t a G o e l Jit en d r a K r . G u p t a Abh ij e e t A k a s h
Beer Airlines Fashion Collection Sports Swimsuit Calendar
Brand Growth (Beer)
HECTOLITRES (IN MILLIONS)
0 1985 1990 1995 1997 1999 2000 2001 2003 2005
(President & MD, UB Group)
Mr. Ashok S. Katta
(HR Head, UB Group)
Dr . A . K . Dasbisw
- (Professor & Dean, ITM Business
UNIT: Bombay Breweries, Plot No.-M-1, MIDC Taloja, Dist. Raigad, Maharashtra –
• 1857 - Mr. Thomas Leishman formed United Breweries Ltd.
• 1947 - Mr. Vittal Mallya became the first Chairman of Indian Origin.
• 1974 - International beer exports began to Aden and Middle East.
• 1983 - Dr. Vijay Mallya became the Chairman of the UB group.
• The UB Group, is the market leader in both Spirits & Beer business in the country. • • The Group has a turnover of Rs. 1748 Crores. (approx.) • • An EBITDA Growth of 35.6% in 2008 – 2009. • • Publishes World’s 2nd Costliest Swimsuit Calendar. • • Won more than 6 International Awards for its Kingfisher Beer Brand alone.
Around 34% market share nationally. Sold in over 52 and also on international flights. Every forth beer sold in India is Kingfisher . India’s 1st global consumer brand – Kingfisher.
Source: Annual Report (2008-2009)
Market Share & Growth
Quarter 2 9% 49%
Quarter 3 14% 50%
UB Market Share
vThe Industry is projected to grow between 15% - 18% in next 2 Years. vMarket Growing at 10-12 % per annum. vSouth and west zone accounts for bulk ( >75%) of this market.
v4 large breweries has 84% of the market. vAround 40 units in organized sector. vLicense required and Cap on additional capacities.
Source: UB 2009 Investor PPT, www.indiamarket.com
Kingfisher’s Competitive Advantage
Budweiser Carlsberg Foster Tiger more…
Hayward 2000 Hayward 5000 Palone more…
Professional Managed Seasoned Professionals with Significant Industry Experience Initiatives Planned for Integrating into Retailing Least Vulnerable to Policy Volatility due to Large Spread
Strongest Brand Significant Upgradation
MANAGEMENT SEGMENT TEAM VALUE – CHAIN MARKET OWNERSHIP BE PRESENC BRANDING ELOCAL ER SOURCING MANUFACTURING TECHNOLOGY
Optimal, as almost completely Locally Sourced
Largest Manufacturing Space Maximum Capital Utilization
Porter's 5 Force Model
Porter's 5 Force Model
er of Buyer : Threat of New Entry : hreat of Substitute : buyers are high. ü in form of product. Scale. ions High Economies of Substitute is same and low. Relative price of Less differentiated product so sü multiple sources. of Buyer is low. cannot be copied. Switching cost ü High capital of Suppliers : eats to backward Competitors : . low. is different. Bargaining power Requirement Industry integration is Relative cost to buyer is ü product to Quality of substitute. Switching the buyers varies low of based on customer profile. ü Less access to distribution channel. ü NumberNumber of majorPolicies is taxes. of organized competitors are ü ü Stringent Government suppliers and less. less. ü Availability Growth. ü Industry substitute input is ü High Industry ofgrowth rate is more. less. ü Suppliers threat to of competitor is large. low. ü Relative size forward integration is ü Buyers Buyers switching cost is low. is high. threat to backward integration ü ü Exit barriers are high. ü Competitor less diversified.
Porter's 5 Force Model
Threat of New Entry
ning power of Suppliers Industry Competitors power of B Bargaining Threat of Substitute
Porter’s Generic Strategy
Competitive Advantage Lower Cost Differentiatio n Competiti Broad Target ve Scope Cost Leadership Differentiatio n
Narrow Target Focus
BCG & Ansoff’s
Relative Market Share
Mar HIG H ket Gro wth Rat e LO
Existing products Exis ting mar kets New products
Product Market Penetration Developme
Market Development Diversification
New mar kets
Strongest Worldwide Distribution System. Huge Finances backing from UB Group Oldest & Largest Player In India Worldwide known Brand
Different Brands under Same Company
High Concentration on Strong Beer Market
Few Relaxation of Rules Reduction in Taxes Brand Extension Benefits
High Taxes & Regulations Prohibition on Advertising
Indian Culture is a Major Hindrance Many International Player Entering In India
O IS BIGGEST COMPETITOR OF KINGFISH
WHICH TYPE OF KINGFISHER BRAND YOU PREFER
HOW ATTRACTIVE IS KINGFISHER TO YOU
HOW STRONG IS KINGFISHER BRAND
Firms Business Strength
Mar ket Attr acti High ven ess Medium Low
…… Kingfisher Beer
Tying up with More number of large department stores for retailing its Beers. Entry into Low Cal & Varied Flavor Market. Development of New & Innovative Packaging of Pet. Double Branding, UB’s Brands. Royalty Club for Classy & Up-market Bars & Owners. Lounge i.e. use