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A PROJECT REPORT

ON
Consumer Behavior of Beer Industry
Submitted in partial fulfillment of the requirements
for the award of the degree PGPM
(2016-2018)

ICFAI BUSINESS SCHOOL
GURGAON
Submitted to:Prof. Vipin Khurana

Submitted by:16BSP1589
16BSP1672

NITIKA CHADHA
PARV MAKHIJA

16BSP2488 SIDDHARTH CHOUDHARY
16BSP2160
16BSP3442

SAHIL KALIA
LEKHA LOKWANI

ACKNOWLEDGEMENT
We are using this opportunity to express our gratitude to everyone who
supported us throughout the course of this BUSINESS RESEARCH
METHOD project. We are thankful for their aspiring guidance,
invaluably constructive criticism and friendly advice during the project
work. We are sincerely grateful to them for sharing their truthful and
illuminating views on a number of issues related to the project.
We would also like to thank our project guide Prof. Vipin Khurana and
all the people who provided us with the facilities being required and
conductive conditions for our PGPM project.

Live Project Proposal

1. INTRODUCTION:
ABOUT BEER INDUSTRY
Beer is the 3rd largest drink in the world after water and tea, India is ranked at the bottom of the barrel
among the world’s top 30 beer markets.
The beer market in India was estimated to be more than 200 billion in 2012. It is expected to be 430
billion by 2017. The growing market is attributed to a growing middle class & youth with disposable
income. Beer with alcohol content in the 8% range accounted for 83% of the total beer sales in the year
2012.
Beer alcohol content at 5% to 8% is even lower than wine which is 12% and IMFL which is at 42.5%. And
yet in India, Beer is taxed indiscriminately. In terms of absolute alcohol content, it is taxed more than
Spirits. No wonder youth and others, shift to spirits considering cost of intoxication.
In developing and developed countries the Quantum of beer is over 80% of the alcobev category
compared to India where it is only 50% compared to IMFL and if one includes country liquor, beer will be
35%. This is the precise reason for youth, when achieving the legal age of consumption move straight to
hard liquor.
Beer taxation is indiscriminate and does not depict value to the consumer. Beer if taxed rationally,
positioned more liberally, viewed more positively will wean people away from hard liquor. This will
therefore do immense good to society at large.
In spite of high level of taxation, the revenue from beer is only 15% of the gross alcohol revenue.
Therefore, there is a case to rationalize beer taxes.
Beer is currently targeted at the higher middle and middle-income demographics in India. It is estimated
that of the top 30 global beer markets, India has the lowest affordability of beer relative to average GDP.
India is the only BRIC country where a beer is more expensive than a burger. Furthermore, on a
unit/alcohol content basis, beer is more expensive than spirits, in India.

ABOUT CONSUMER BEHAVIOUR
Consumer behavior has been always of great interest to marketers. The knowledge of consumer behavior
helps the marketer to understand how consumers think, feel and select from alternatives like products,
brands and the like and how the consumers are influenced by their environment, the reference groups,
family, and salespersons and so on. A consumer’s buying behavior is influenced by cultural, social,
personal and psychological factors. Most of these factors are uncontrollable and beyond the hands of
marketers but they have to be considered while trying to understand the complex behavior of the
consumers. Consumer is the study “of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires”
This is the most effective tool in marketing. In liquor industry advertising is not allowed by the Indian
Government therefore they are indulged in surrogate advertising products with similar brand name:- This
is very common method used in the liquor industry, here companies introduced a non-alcoholic product
with similar brand name and advertise it in full swing. Financially sound players use this. “Kingfisher”
brand of mineral water launched by UB group to promote the Kingfisher brand of beer.
2. LITERATURE REVIEW:

SNO.

AUTHOR

1.

TITLE

Simone

beer
consumption

Pettigrew

PUBLICATI
ON

SUMMARY & VARIABLE

Amandi
Christian

in Australian

*(sahil)*

2

Australia culture,taken from the particular

culture

Gaston van de
Laar

Trends in

*(parv)*

Popsop Staff

Oct 29, 2013

beer:
opportunitie
new
s in a

products and packaging designs and/or by defining
potential new consumer groups, beer brands can

beer market
Professor V.R.

Craft Beer

Lane

and
Consumer

*(parv)*

Behavior

viewpoint of researcher.
Conclusion:- Despite being perceived as the great
leveller,beer consumption in Australia reflect
gender,age,and social class difference.
Challenging developments in the market do not
necessarily prohibit future expansion for the beer
market. The presented consumer movements
underline the importance for breweries to be
innovative and to respond to the needs and wishes

of their different target groups. By launching new

challenging

3

Summary:- The result of the study is an
interpretation of the role of beer consumption in

definitely create new opportunities in the,
Marketing

6060:
Buyer/Consu
mer

Behaviour

sometimes difficult, beer market.
The Breckenridge Brewery brand is associated
with happiness and originality • Because
Breckenridge brewery produces smaller batch beer
than mass produced beer, the beer is of higher
quality and tastes better • The Breckenridge
Brewery brand is different than other brands •

Breckenridge Brewery products are unique •
Consuming Breckenridge Brewery products leads

4

Kingfisher

Ezekiel
Maurice

--

beer in hotel

Sunday

to pleasure
Upper class prefers to buy branded
products and do not mind paying for
quality. But middle class purchase items

they feel is value for money.

*(lekha)*
Highest selling beer -

1) Kingfisher strong-rs 70 for 650ml
bottle
2) Kingfisher premium -rs100 for 650ml
bottle (low sales)
This shows it will take some time for
Indian minds to spend on quality without
thinking much about price.

5

--attitudes
*(lekha)*

--Different gender and income have different

towards beer
products in

attitude component towards beer. However, age
and occupation have no different attitude
component towards beer.
These examples illustrate that there is no one-shot
solution for the numerous challenges faced by the
beer industry. However, leading companies are

Bangkok

6

German

Estevez

A perfect

Rutishauser,

Stefan Rickert,
and Frank
Sänger

storm

brewing in

June 2015

beginning to apply a carefully balanced cocktail of
changes. They are coordinating their commercial,
manufacturing and supply chain functions to
deliver solutions that suit the precise tastes of

*(nitika)*

different markets and customer segments, without
losing sight of their operational models. These are

the global

still early days, but the top and bottom line effects

beer

on these businesses have been remarkably
refreshing.

business

7

The Beer
Vishwas
Kumar Gupta, industry in
Faculty

India

Beverage
Marketing
Corporation

Marketing
INC–HQ,
Hyderabad

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 centres, 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 consumption
because

*(nitika)*

it is associated with calories, and has traditionally
been a buddy drink, associated with pot-bellied
men sitting at bars and shooting darts.

8

Slide share

Consumer

*(siddharth)*

and
innovation
trends

Slide share

• The growing popularity of craft beer is made

even more conspicuous by the fact that
the
segment represents only a very small proportion

of the total beer category. • Expect craft
beer to
outperform the overall category in more
mature
markets throughout North America and
Europe.
The influence of the craft beer segment is
disproportionate to its size. • Millennials are
unquestionably championing the craft beer

segment. Monitor how their needs and
preferences evolve as they mature in order
to
maintain their engagement with the
segment. •
Make sure to incorporate female drinkers into
future positioning strategies. Millennials will

continue to drive growth in craft beer globally. •
The term "craft" is as ambiguous as it is appealing.
Without a standard definition, "craft" will mean

different things to different people,
creating
markedly different motivations for drinking craft

beer. • Ensure that the brand's
interpretation
aligns with that of the target consumer. "Craft
beer" is a subjective term with multiple
interpretations. Insight Implications and

recommendations
9 Craft brew
business

5 consumer

*(siddharth)*

international
The large number of products available on
soft drink and supermarket shelves means that many brands are

trends for

alcoholic

2015

beverage

(looking

industries

in danger of fading into the background.
Innovative packaging that draws consumer
attention will be vital for retaining market share

and for brands attempting to enter the
market.

good for
craft beer

industry)

10

Lee,KwokWah,Gilbert

Beer market
in china

*(sahil)*

university of

The Beer market, however, is highly fragmental

Hong Kong

with the market leader, Tsingtao contributing less
than 3% of the total market. There is a high

proliferation of local brand, joint-venture brands
and imported brands .Thus effective management

of brand equity is extremely important for the
brewer to excel in market place.

3. OBJECTIVES:
To study consumer behavior and increase market share and to do comparison between different brands.
To identify the factors affecting consumer buying behaviour.
To find the expectations and needs of customers from beer giants.
To study the consumer’s behavior towards different beer varieties.
To study the consumer’s behavior towards different beer providers.
4. RESEARCH METHODOLOGY:
Research always starts with a question or a problem. Its purpose is to question through the application of
the scientific method. It is a systematic and intensive study directed towards a more complete knowledge
of the subject studied. Marketing research (MR) is the function which links the consumer, customer and
public to the marketer through information- information used to identify and define marketing opportunities
and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor
marketing performance and improve understanding of market as a process.

a)PRIMARY DATA:

i.Questionnaires
ii.Personal Interview
5. EXPECTED OUTCOMES:
1)To understand the behavior and mindset of buyers when they buy a particular alcohol beverage.
2)To come to a conclusion why do the respondents prefer beer over any other alcohol.
3)What all factors do respondents consider before buying the brand of there choice?
4)To understand when a person becomes a active drinker from a passive drinker.
5)To come to a conclusion about how strong does the buyer like his beer to be?
6)To understand what are the after effects of having too much of alcohol?
6. REFERENCES:
i.http://www.academia.edu/2811500An_Ethnography_of_Beer_Consumption_in_Australia
ii.http://popsop.com/2013/10/trends-in-beer-new-opportunities-in-a-challenging-beer-market/

iii.https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUK
Ewj88r26uJ7QAhXDpo8KHeO2CKsQFggbMAA&url=https%3A%2F%2Fanthonygarver.files.wordpress.com
%2F2013%2F06%2Fbuyer-behavior-craft-beer- project.pdf&usg=AFQjCNEQdlP6xGk2uWWXY87B_yqp0jtHig&bvm=
bv.138169073,d.c2I
iv.http://documents.mx/documents/study-of-consumer-buying-behaviour-for-kingfisher-beer-in-the-hotels-and-preferencelevel-of-consumers-towards

v.https://www.google.co.in/url?sa=t&source=web&rct=j&url=http://www.divaportal.org/smash/get/diva2:240647/FULLTEXT01.pdf&ved=0ahUKEwjBqfcqJ7QAhUXTY8KHY71D504ChAWCC0wBQ&usg=AFQjCNHueXhJ3yKNr11jm5LErAFn3BDh1A
vi.http://www.mckinseyonmarketingandsales.com/a-perfect-storm-brewing-in-the-global-beer-business
vii.http://www.indianmba.com/Faculty_Column/FC519/fc519.html
viii.https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&uact=8&ved=0ahUK EwiVMaKwZ7QAhXBq48KHV9gCckQFghPMAc&url=http%3A%2F%2Fwww.slideshare.net%2Fcteahan%2F consumerandinnovationtrendsincraftbeer&usg=AFQjCNEB6ugwErESVxhZxeaIF3oVOMf1Ug&bvm=bv.13816907 3,d.c2I

ix.http://www.craftbrewingbusiness.com/business-marketing/consumer-trends-craft-beer-industry/
x.http://hdl.handle.net/10722/37776

Submitted by:Nitika chaddha
Siddharth chaudhary
Parv makhija
Sahil kalia
Lekha lokwani
(section-B)