Marketing Project Report for Term I

4 P’s, STP and PESTEL Analysis on Carlsberg
Submitted to Shubhra Bahal Aug 2009

Indian Beer Market is expanding like never before. While the world market has almost stagnated, Beer consumption in India is growing at a rate of almost 12%. Major international players have ventured into the Indian scenario. Carlsberg is one of them. We have tried to understand the strategy adopted by The Carlsberg Group by 4P’s, STP and PESTEL analysis.

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CONTENTS EXECUTIVE SUMMARY ABOUT THE COMPANY BEER CULTURE IN INDIA 4 P’s ANALYSIS STP ANALYSIS PESTEL ANALYSIS REFRENCES 3 4 4 6 8 10 12 .

Okocim Palone and Tuborg. . Place: All the metros and major cities especially north and west India. the company is trying to create a premium. 4P’s: Products: Three product have been launched in India Carlsberg. STP: Segmentation: Carlsberg group has tried to segment the market on the basis of urban and rural population moreover they have also tried to segment on the basis of geography concentrating more to the northern and the western region of the country. social networking. free sample. Tuborg Rs. 40. Carlsberg Pint (330ml) costs Rs. Promotion: Targeting the youth with their mild section. have a variant for strong section. Moreover STP and 4P’s analysis show that Indian breweries market is open for international players and they can very well cash-in on their international brand recognition. Carlsberg has positioned itself as a premium mild beer. 50. the company is trying to create a premium. Positioning: It has positioned itself as a premium mild beer. all-malt beer category. all-malt beer category.Executive Summary: Danish brewer Carlsberg entered into the Indian market in 2006 and operates here through a joint venture named South Asia Breweries. With the launch of its flagship brand. 30 whereas the bottle (650ml) of Okocim Palone will cost us Rs. Carlsberg as compared to its counter-part is costlier and with the launch of its flagship brand. They have positioned their product in all the metros and the major cities of India. Price: Different variants have different price. Target Market: The Carlsberg group has majorly tried to cater to the younger consumer and with its product Okocim Palone it has targeted the section who likes to have a stronger beer.

headquartered in Gurgaon.) accounts for 48% of the total market. Kalyani Black. a strong beer. it seems. and named after his son Carl.C. Beer Culture in India Indians love their booze.000 people. Denmark. While the share of the UB Group ( Kingfisher. Jacobsen outside Copenhagen. The company's main brand is Carlsberg Beer. ) is at comfortable 30%. Ltd. foreign brewing began in 1968 with the opening of a Carlsberg brewery. Royal Challenge etc.About the Company: "Probably the best beer in the world" The company was formed in 1847 by J. but it's somewhere near the bottom in beer drinking. but it also brews Tuborg as well as local beers. Carlsberg India Pvt. Carlsberg India Pvt. Hayward’s. Carlsberg Group has ventured into the Indian market with its three brands Okocim Palone. SAB Miller ( Fosters. but beer. in the mild beer section. Today the two major players in the Indian beer market are The UB Group and SAB Miller. Sand Piper etc. The country ranks tops globally in consumption of whisky. in which it has a 45 per cent stake. Carlsberg became the 5th largest brewery group in the world. National Capital Region and India is a foreign direct investment company formed to brew and market Carlsberg beer in India. Ltd. Today the markets around the world have stagnated but the beer consumption in India has been growing at a rate . Carlsberg operates in India through a joint venture named South Asia Breweries. After merging with the brewery assets of Norwegian conglomerate Orkla ASA in January 2001. In 2009 Carlsberg is the 4th largest brewery group in the world employing around 45. leaves them cold. Exportation of Carlsberg Beer began in 1868. currently employs over 200 professionals and is headed by Pradeep Gidwani as of May 2009. Tuborg and Carlsberg.

2). Karnataka (9. In China there are about 400 brewers.0).3). of which the top 10 account for only 45 per cent of the market. India also provides attractive profit margins due to the consolidated nature of the industry – a comparison between China and India.of around 6% and is predicted to grow at the rate of 11. changing age profile and changing lifestyles.6) account for 63% of total beer consumption and top 10 States for 85%.5% by 2011. Apart from providing strong growth. with several players being marginalized. Andhra Pradesh (18. Tamil Nadu (9. due to the positive impact of demographic trends. & Rajasthan (5.0). In short. for example. This has resulted in low profit margins for the Chinese beer players. Five States. . rising disposable income. Maharashtra (16. The Indian beer market has been growing rapidly over the last 10 years. reveals that the Chinese beer market is marked by intense competition.

4.6% and above. something that the beer market in India hasn't seen until now. which does not need a bottle opener. It was launched in the Indian market this summer. . The alcohol content is at 4. it is again targeting the premium mild beer segment.6% it is being marketed in the mild beer segment.8% . Tuborg: Tuborg's USP is its innovative packaging in the form of a unique pull-off cap. With the alcohol content at 3. Okocim Palone: The strong beer from Carlsberg from Poland has alcohol concentration at 5. Carlsberg Pilsner is the flagship in the Carlsberg Group's portfolio of beers.4 P’s Analysis of Carlsberg  Product: Carlsberg Lager: The most common product of The Carlsberg Group and was the first one to be launched in the Indian market.6 %. remains widely available at all the major outlets because of its demand in the traditional section of beer consumers.

The bottle( 650ml) of Carlsberg lager is priced at Rs. Okocim Palone the strong beer from The Group has again priced it higher in its segment at Rs. Carlsberg has understood the growing demand of beer in Indian market. Carlsberg. With the introduction of its first brand Carlsberg Pilsner its stormed every outlet with it. it has already gained 4. Place  Price Danish brewer Carlsberg has begun nation-wide distribution of its flagship brand Carlsberg beer. has consciously chosen the north. The pricing of Carlsberg has been kept on a bit higher side as compared to the existing domestic beers. where it is distributing in 150 outlets. Pradeep Gidwani. wherein free samples were . Carlsberg has adopted somewhat aggressive promotion for its brands. Maharashtra.50 in the mild beer segment. Tuborg is also priced with the same price tag. South Asia Breweries. and is using its international brand image to penetrate into the market. Carlsberg has targeted majorly north and west India to enter into the market. The Carlsberg group is cashing in on its international image and with its higher pricing policy it is targeting niche segment of the market. 70 as compared to general pricing of Rs.5 per cent share in volumes in the beer market. said: "We are targeting the top-20 key metros and cities for distribution because Carlsberg will be positioned as a premium mild beer. which has four breweries in Rajasthan. the only thing that you could see when you go out to buy beers was Carlsberg Lager. With the introduction of Tuborg. managing director. Himachal Pradesh and West Bengal. UB Group and SAB Miller enjoying at a comfortable 75% share of the market. east and west regions of the country to set up its breweries when it saw its competitors focusing on the southern region. 60.  Promotion Since The Carlsberg Group has entered the Indian scenario at a time when there were two major players.” In Delhi. Though south India is the biggest market in the country for liquor. the promotional strategy had to be different. it organized Tuborg Nights in all the major parts of the metro. 45.

The strategy adopted by Carlsberg is to concentrate on to the untapped market of north and west India in the initial stage of the production. But that does not deter middleclass customers. For a complete month they were distributing free beer in all the parts of the capital. Carlsberg has consciously chosen the north. which was a new concept in India and that attracted many consumers. It capitalized on its USP. the cap. Carlsberg has segmented the Indian market in following ways: Geographical.The major consumer for alcoholic beverages is Southern India. India is becoming younger. It may not . With its international image as the sponsor of a football team. the lifestyle. North America and Europe. since it has positioned itself as a premium product. it is only catering to the urban cities of India. it has created an impression in young ones’ mind. the personality of an Indian is changing which is good for international brands like Carlsberg. Demographic. The target market for Carlsberg as discussed earlier is the changing Indian which is the only reason it has targeted all the urban cities of India. east and west regions of the country to set up its breweries when it saw its competitors focusing on the southern region. The recently introduced international brand is priced at a premium to other local offerings. Moreover. The population of youth is high in India.The age of India is changing. The rise in disposable income of the urban middle class is also a point.  Segmentation STP Analysis of Carlsberg International beer companies have a good enough reason to tap markets like India.distributed. That their main markets.The culture. are either flat or in a state of decline is no secret.  Targeting Psychographic.

Carlsberg India has converted its website into a social networking website so that more and more people get to know about the product. the UB Group's Kingfisher and Tiger beer by Asia Pacific Breweries (a joint venture of Dutch brewer Heineken) in the Indian market. Carlsberg has successfully associated itself with the young and changing Indian. Now to overcome this challenge and at the same time to target young consumers. A break through marketing!  Positioning Carlsberg has positioned itself as a premium beer in the Indian market. Carlsberg is also under the process of test-marketing its strong beer brand Okocim Palone from Poland. Outside India they have associated themselves with football and has created an impression of a young drink which they have brought to India as well. Carlsberg is the most expensive beer compared with its competitors Budweiser. .be called a niche marketing because of the nature of the product but yes the product is placed at a higher price because of the image of the brand it wants to cash on. As its long-term strategy for the Indian market. it plans to deploy a portfolio with brands in new beer segments and at several price points. Though the Indian scenario doesn’t allow them to advertise openly. The company is betting on the shift in urban consumers to spend on quality.

There is a school of thought against the so called pub culture and then there are rest.PESTEL Analysis of Carlsberg Political The scenario of India is very different from rest of the world. The Carlsberg group has realized this potential and thus has targeted only the urban cities of india in their early stage to penetrate the market. Gidwani. once that target is achieved. Mr. Social As India is said to be the land of diverse culture. they will expand their base to other cities and rest of the country. Carlsberg has cashed its international image to boost its sales in the domestic market. Some states have time limits i. Even the age limit for drinking in India is under discussion. 10 % by next 2 years. Though we hope that this gap will be narrowing in the near future. Right now it is 25. but as they say change is inevitable that’s why The Carlsberg . As the advertisement of liquor is banned in India. Some states like Gujrat are Dry states where the sales of liquor are completely banned. The northern part is completely different from the southern part. after 9 the sales of liquor are prohibited. we can’t categorize India under one segment.e. so Carlsberg has to be very specific when targeting its consumer. Carlsberg has aimed to grab a market share of approx. Economic The economy of India is changing. Any company venturing into the Indian market will have to study the political environment here. Different states have different rules for liquor. There is a rise in per capita income and as a result the disposable income of people specially living in urban cities is also increasing rapidly. but the scenario is a bit bitter right now. They have targeted the public houses and discotheques for their promotion which is very apt.. but at the same time the gap between the haves and have-nots is also widening. Per capita income is rising. According to the MD of the Carlsberg Group.

Carlsberg increases the promotions during summer time. Maharashtra. According to the company sources. Legal Again The Carlsberg Group is very careful about the steps it takes because of the political environment which could land it in trouble. Carlsberg has set up four breweries in Rajasthan. it was advisable to set up plant in India itself. Carlsberg India has played smart in making a social networking website so that its purpose of marketing is also solved and it didn’t cross the line of the law as well. Technological Importing beer attracted heavy taxes from the government resulting in higher prices of the same.Group is relying on the change and has targeted the new Indian who is open to change. As the company is new. . Therefore to increase the base in the Indian market. As the laws are different for different states. it is using an advanced technology to ensure that the beer that gets out is of better quality and great taste. Environmental Environmental factors include the weather and climate change. we yet have to see its effect on environment and vice versa. With the joint venture with South Asia Breweries. Himachal Pradesh and West Bengal to reduce the cost. As the climate here is generally warm.

VASANT KUNJ.COM WIKIPEDIA.IN HINDUSTANTIMES.COM CARLSBERG.REFRENCES GOOGLE.COM TUBORG. .COM CARLSBERG.COM CARLSBERG (INDIA). GURGAON THE POCKET BAR.

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