Consumer Behaviour On Kingfisher Beer

Consumer Behaviour on Kingfisher Beer
INTRODUCTION OF BEER
Beer making dates back to ancient Egyptian times. There are five main types of beer: lager,
stout, ale, porter and bock. The process of making all five is primarily the same. The
difference in color comes from the amount of roasting that takes place. Beer is an alcoholic
beverage made by brewing a fermenting malted barley and sometimes other cereals with hops
added to flavor and stabilize it.
Barley is germinated and then is called malt. Malt is dried in a kin, the duration of which
determines the darkness and sweetness of the Beer. The longer the roasting the darker and
sweeter the beer. The roasting malt is mixed with other cereals and specific water then
cooked. After it is cooked, a liquid called 'wort' from the pre-alcoholic porridge is drained off.
The liquid is mixed with hops which adds the flavor. After a few more hours of cooking the
hops are strained off, the wort is cooled and yeast is added which causes fermentation. Yeast
converts wort to beer.
Beer is an alcoholic beverage produce by the fermentation of malted barely. Although the
preparation of fermented beverages has been practiced in India since early times, the art of
brewing of Europeans.There were 26 beer breweries in across India when the government
called the game over in the early 70s by freezing the industries production capacity. Nobody
was permitted to either expand existing units or build new ones. In swift reaction, the cash
rich Banglore based u. b group began buying up all the breweries if it possible could bring its
tally up to 10. Many of these were small, sick units going cheap. Given the government new
anti-alcohol pasture. U.B was amongst the few willing act on the future of the beer business.
Rather than cost U.B.s actual consideration was that they were located in the north and east
markets it wanted to gain access to (beer being perishable product and transportation being a
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costly proposition, sales are usually combined to a radius to few hundred KM around the
brewery). Although the south and west accounted for an over whelning majority of sale.
U.B. was confident other part would grow, some U.B.s brewing capacity was on par with
that of its arch rival, muhan meakin.
HISTORY OF BEER
Beer is an old as the science of agronomy. As soon as man learned to fit them in to his diet,
bread and beer were two of the earliest utilization. Both baking and brewing followed similar
processes up to a certain point during early civilization. Processes show that in Mesopotamia
6000 years ago, beer was made with barley malt and allowed to ferment. Beer also was used
in ancient Egypt, Greece and Rome. Translation of uniform writings on a clay tablet found in
ancient ninevch describe Noahs alleged preparations for the food and indicate that beer was
among the provisions that were loaded on the ark.
Respite its antiquity and general use, beer attained little commercial standing until about the
10th c. until then brewing was largely followed as a domestic function like many as baking
and cooking. In the middle ages brewing like many other arts was concentrated in the hands
of churchmen. Almost every monastery had its beerhouse and some of the monks were as
famous for their beer as are traipses for their cheese and Benedictines for their liquors. Beer,
in that period also was closely identified with many religious and social festivals. Such as
church asses for raising church funds.During the era exploration of American continent beer
was deemed an essential in the provisioning of ships. Water stagnated quickly on a longtime.
While beer remained comparatively whole some and palatable. Moreover its diet properties
although unidentified in those days helped ward off many of the diet deficiency ills to which
passengers and crews on long voyages were subject. The dwindling supply of beer on the
may. Flower was a factor in the pilgrims decision to seek harbor ahead of schedule.
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ECONOMICS ASPECTS
Country 1965 1975 1985

U.S.A 89783 108024 157863
W. Germany 2619 57471 7962
7 8
Great Britain 33960 41282 5505
6
USSR 15740 27006 51131
Japan 3453 7093 3348
2
France 10665 1686 1901
9 7
Australia 8588 1065 1648
0 1
Canada 5605 11546 18117
Mexico 5615 8732 1650
9
Spain 1434 8389 1416
2
Poland 4406 6592 1095
2
Brazil 6077 5629 1477
5
Czechoslovaki 8939 16022 1906
a 6
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The output has been divided among approximately 100 breweries. The amount paid each
year in federal state and local taxes has been $9 per barrel. State taxes vary widely. The
brewing industry also has expenditures totaling well oversee and packing goods and for
transportation , advertising and promotion.
Although more beer is produced in U.S.A, than in any other country. The U.S.A. ranks well
below west Germany, Luxembourg and other leading consumer nation in per capital
consumption. In 1975 per capital consumption in the U.S.A. were about 31 gallons(1117
liters) annually. Patterns of consumption vary greatly within the U.S.A. and tend to be
prohibition remain in effect through local option laws.
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MANUFACTURING PROCESS OF BEER
Beer is manufactured usually form barley, hops, yeast and sugar. The barley corn consist
largely of starch, which will not ferment and so it must first be converted into sugar, which
ferments readily. This brought about by malting the barely. During the malting process the
barely is soaked and then kept in a warm atmosphere so that it begins to germinate. As the
barley germinate, it produces an enzyme called diastase which will convert the starch into
malt sugar. Which in turn are then converted to alcohol by the yeast enzymes during the
brewing. After malting the barely is milled and then washed together with hot water and
sugar. The resulting liquidate , known as wrote is pumped into large copper vessels where it
is boiled with hops and sugar. The hops act as a flavoring and as preservative. Next, the
spent hops are separated from the boiled wort, which is cooled and put into the fermenting
vessels. The yeast is now added, and fermentation begins. British beer begins fermentation at
a temperature of about 15.6 degree c (60) degree and fermentation takes form five to seven
days. These beers are top fermented, that is the type of used floats on the top of the liquid.
The beer after fermentation, is drawknife into setting tanks where any residual yeast is
removed and then stored for a time ( from a few days to a few weeks, depending on the type
of beer) at around o degree c (32 degree) to allow it mature before it ils rocked (filled) into
bottles or cans. Lager beers are bottom fermented, the yeast used setting at the bottom of the
vessels during fermentation, which begins at a temperature of from 6 degree c to 10 degree c
and takes about 8 days. Lager bears are matured for up to 3 months at 0 degree c before
rocking ( the same lager is the word for store). During the maturation period a second
fermentation takes which clears the beer and improves its flavor and strength.
The term ale originally applied to UN-hoped beers, but it is now widely used as a general
name for top fermented beer. The amount of hops used depends upon the type of beer being
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produced. A strong to p-times the amount of hops used in malting a light lager. Another
factor which varies according to the type of beer being produced in the malting process. For
example, the barely for a top fermented beer may be germinated for 11 days and then dried at
107 degree c for 3 or 4 days, but barley for lager may only be for 7 or 8 days and then dried
at a temperatures of bout 55 degree c. When dark beer such as brown ales and stouts are to
be made, The barley is also high roasted. The root lets sprout form the barely during
germination shrivel and drop off when it is dried, and they are usually collected and sold for
use in animal foods.
1. Trends
Since the realization of beer in U.S. in 1933 there has been a complete switch form dark to
light beers form drought to bottled and canned beer. Drought beer accounted for more than
2/3 of all beer sold in draught beer most of the increase in packaged beers has been in canned
beer.
2. Types of beer:
In the U.S. the name Beer is generally given to a bright, pale Golden, light boiled , crispy
fresh beverage that is drunks, chilled some where between 44 degree f and 48 degree f (6.6
degree c and 9 degree c ).
Bock beer
It is a special, full bodied brew, some what darker and sweeter than regular beer. It is brewed
in winter for use in the spring. Bock beer day, the day on which it is first sold is planned to
herald the arrival of spring. The bock beer season lasts about six weeks.
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Malt liquor
It is a special kind of beer that varies considerably among brands. Some malk liquors are
quite pale, others are rather dark. Some are quite happy , others are only mildly so, their
essential characteristics is a higher alcoholic content than in other beers.
Lager
It is generally understood to be a light bright and sparking beer, but today all malt beverages
in the U.S. are laggard.
Pilsner
It is a term after seen on beer labels around the world. The original and the pilner beer is the
pilsner urquell which has been brewed at platen in bohemia. Czechoslovakia, for some 800
years and has never been equaled.
Ale:
It is an aromatic, golden, fuller-bodied and bitter malt beverage with a slightly higher
alcoholic contents than beer , all ales top fermentation brews.
Stout
It is darker, fuller bodied ale yielding a rich, ceremony foam, strongly rousted most is used to
give a richer body. It is sweeter and less happy than regular ale.
Sake
A Japanese brew made form rice, is given a high alcoholic content by refermentation.
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United Breweries Group
United Breweries Group or UB Group, based in Bangalore, is a conglomerate of different
companies with a major focus on the brewery (beer) and alcoholic beverages industry.
The company markets beer under the Kingfisher brand and has also launched Kingfisher
Airlines, an airline service in India, with international flights operating recently. United
Breweries is India's largest producer of beer with a market share of around 48% by volume.
It is owned by Vijay Mallya who had been a member of the Indian Parliament.
United Breweries now has greater than a 40% share of the Indian brewing market with 79
distilleries and bottling units across the world. Recently UB financed a takeover of the spirits
business of the rival Shaw-Wallace company giving it a majority share of India's spirits
business. The group owns the Mendocino Brewing Company in the United States.
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History:-
The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took its
initial lessons in manufacturing beer from South Indian based British breweries. At the age of
29, Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he
replaced R G N Price as the chairman of the company. United Breweries made its initial
impact by manufacturing bulk beer for the British troops, which was transported in huge
barrels or "Hogsheads". Kingfisher, the Group's most visible and profitable brand, made a
modest entry in the sixties. During the 1950's and 60's, the company expanded greatly by
acquiring other breweries. First was the addition of McDowell as one of the Group
subsidiaries, a move which helped United Breweries to extend its portfolio to wines and
spirits business. Strategically, the Group moved into agro-based industries and medicines
when Mallya acquired Kissan Products and formed a long-term relationship with Hoechst AG
of Germany to create the Indian pharmaceutical company now known as Aventis Pharma, the
Indian subsidiary of the global Pharma major Sanofi-Aventis.
The Logo:-
The Pegasus, which is the symbol of the United Breweries, first found its place as the Group
logo in 1940. Then, the Helladic horse associated with beer and nectar in Greek mythology
carried a beer cask between the wings, ostensibly because beer formed the core operations of
the Group. Later, the beer cask was removed to represent the Groups multifaceted
operations. Now, it is just the Pegasus.
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Present History
Sales of the United Spirits Ltd. are expected to exceed 60 million cases during the fiscal year
2005-06 making the Group the third largest manufacturer of Spirits products in the world. In
addition, USL is one of only three in the world to own seven millionaire brands and at least
five brands rated by Drinks International, UK, to be amongst the ten fastest growing brands
in the world in their respective categories. The market share of the Spirits Division in India is
currently 60% and exports to the Middle East, Africa and Asian countries are growing
rapidly. The UB Groups Brewing Entity - called United Breweries Limited (UBL) - has also
assumed undisputed market leadership with a national market share in excess of 50%.
Through a process of aggressive acquisition and market penetration, The UB Group today
controls 60% of the total manufacturing capacity for Beer in India. The flagship brand,
Kingfisher is now sold in over 52 countries worldwide having received many accolades for
its quality. With plans to becoming a global player United Spirits Ltd. (USL), the flagship of
the UB group, purchased the Scottish distiller Whyte and Mackay in May 2007 for 595
million (Rs. 4,800 crore).This would bring the brands of W&M like The Dalmore, Isle of
Jura, Glayva, Fetter cairn, Vladivar Vodka, and Whyte & Mackay Scotch under its portfolio.
The UB group is also into manufacture of Fertilizers. The group company Mangalore
Chemicals and Fertilizers Limited (MCF) has factory at Panambur in Dakshina Kannada
district of Karnataka.
Kingfisher beer is an Indian beer brewed by United Breweries Group. With a market share
of over 36%, it is India's largest selling beer, with 1 out of every 3 bottles of beer sold in
India being a Kingfisher brand. It is currently available in 52 countries outside India.
Heineken Group, holds 37.5% equity shares in United Breweries Ltd.
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Slogan
Kingfisher Beer is sometimes promoted as The King of Good Times.
Types of kingfisher beer
Kingfisher comes in the following varieties
Kingfisher Premium
Kingfisher Strong: The brand was launched in 1999 to cater to the growing strong beer
segment in the country. Today, Kingfisher Strong is Indias largest selling beer brand. It is
available in 4 SKUs- 650ml & 330ml bottles and 500ml & 330 ml cans.
Kingfisher Strong Fresh: Kingfisher Strong Fresh is the first ever strong draught beer
available in the Indian market. It is packaged in a 500 ml cans.
Kingfisher Draught: It is packaged in a 500 ml cans.
Kingfisher Ultra: It was launched in Mumbai on 18th September, 2009. It is an entry in the
premium beer segment in the country to compete with international players like Carlsberg,
Heineken and Budweiser. Kingfisher ULTRA is available in Thane, Pune and Bangalore and
will be extended to other cities of the country soon. Currently, Kingfisher ULTRA is available
in two SKUs: 650ml and 330ml bottles.
Kingfisher Blue: The brands core target group is the young male population. Kingfisher
Blue tries to occupy an imagery of adventure sports. It contains fewer than 6% alcohol.
Kingfisher Blue is packaged in metallized blue colour labels and cans. It is available in 4
SKUs- 650ml & 330ml bottles and 500ml & 330 ml cans. The brand has been launched in
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key markets like Karnataka, Pondicherry, Maharashtra, Delhi, Rajasthan, Haryana, Kolkatta
and will soon be a national brand.
Kingfisher Red: It is marketed as Indias 1st ALL SEASON beer.
Kingfisher Bohemia: Unlike the above, Kingfisher Bohemia is a brand of wine. It is the
result of a partnership between Kingfisher and The Company of Wine People (COWP), a key
player in the South African wine industry, both locally and abroad. The wine is produced in
Cape Floral Kingdom, South Africa. Kingfisher Bohemia is available in three varieties - red,
white and ros. It is packaged in 750ml bottles and a case of wine contains 12 bottles.
Kingfisher Bohemia is available in Mumbai, Pune, Delhi, Bangalore, Goa, Chennai,
Hyderabad, Pondicherry, Kerala and Kolkatta.
The World's No.1 Selling Indian Beer!
Kingfisher is enjoyed in over 55 countries world wide. From the USA
in the West, to Japan in the East. And from Norway in the North to New Zealand way
down under!
Kingfisher Premium Lager is brewed using only the finest malted barley and hops.
And this makes it the thrilling international taste sensation that is loved by millions the
world over.
Kingfisher Light Lager shares the honours with Kingfisher Premium, while being low
in carbs and low in calories it still is a unique drinking experience that does credit to this
rich heritage.
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The Brand
A Heritage of Excellence!
The inspiration for the choice of the brand name was certainly influenced by the great
numbers of these beautiful and strikingly colored birds which abound in India where over 70
different varieties/species of kingfisher can be found - more than in any other country or
continent in the world. Kingfishers are particularly prevalent in Bangalore, the garden city of
India, which is also headquarters to The United Breweries Group, brand owners of Kingfisher
Premium Lager.
Kingfisher, the bird is known for its keen instinct, and perfect aim. It zeros on its target with
unfaltering focus. It is a very vibrantly coloured bird. All of its colours represent energy,
youthfulness, enthusiasm, freedom with a touch of formality and discipline. No wonder, that
this bird with an eye for right focus and an aim for succeeding in its attempt became the
mascot for The Kingfisher brand of Beer from the stables of the UB group.
Kingfisher's award winning flavour and consistent excellence of quality has made Kingfisher
one of the largest selling beer brands in the world today.
The new look designed by the UK based packaging specialists, Claessens, is representative of
the brand in full flight, in a supportive environment. It reflects the energy, youthfullness and
freedom that are characteristic of the brand's target consumer and reiterates its contemporary
positioning.
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Kingfisher stands for excitement, youth and camaraderie! "It's flying" and the mood is upbeat
both within the Company and among consumers !
Heritage
Celebrating over 150 Years of Brewing Excellence!
Kingfisher's heritage started with five small breweries in South India, the oldest of which,
Castle Breweries dated back to 1857. Then in 1915, Thomas Leishman, a Scotsman,
combined these breweries to form United Breweries Ltd.
The popularity of their beers soon spread and within a short time, bullock carts carrying huge
'hogsheads' of Kingfisher became a familiar sight in Madras, the Nilgiris and Bangalore, the
headquarters of United Breweries Ltd. Almost immediately, the brew from UB became a
favourite, especially with the British troops.
So began the history of Beer in India...
Kingfisher, the flagship brand of United Breweries and the best-selling Indian Lager
worldwide, is now available in over 55 countries and is exported from the UK to 19
Continental European Markets and Canada and from India to major markets in the Middle
East, South East Asia, the Far East and Australasia, and it is also served on board 10
international airlines.
Kingfisher was first imported to the UK and USA markets in the years 1982 and 1983
respectively in the traditional large 650ml bottles.
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SWOT ANALYSIS:
Strengths Weakness
Market Leader Long Developmental Cycle
Strong Brand Image Relative Static Market
Global Presence Expensive Brand
Aggressive Advertising
Quality & Innovation
Opportunity Threats
Demographic Changes New Competitors
Changes Societal Cloning of Successful Brands
Attitudes Increasing Buyer Power
Consumer Brand Growth in Substitutes
Preference Economic Downturn
Demand for High Quality
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Target markets
Kingfisher has two different products for different market segments.
Kingfisher Mild (Alcohol<4%) Kingfisher Mild (Alcohol<4%)
Youth who drink for fun
Those who want to light beer to something
First-time drinkers who drink for experience stronger
Urban women who prefer to drink light Regular drinkers who prefer stronger flavour
Product
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.
Place
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It is available throughout India, and is dominant particularly in South and West India.
UB has 16 company-owned breweries apart from nine contract breweries in 20
different locations across the country.
Kingfisher also has a presence in 60 countries.
Kingfisher also has an online marketing system. Any consumer can go to
www.Kingfishernetshop.com and get their beer- a mini mum of six bottles home
delivered. This move has been a big draw with info tech professionals and district
women drinkers.
It also has some sixteen hundred shops apart from pubs and bars. Better retailing
outlets are also to be opened under the Kingfisher Brand.
Kingfisher also has tie-ups with large department stores like Food world for retailing
its Beers.
Kingfisher also has association with number of Very Classy, Up-market & Stylish bars
& lounges which goes hand in hand with its brand image.
Price
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In both mild and strong beer segment Kingfisher uses competitive pricing strategy. i.e.
650ml at Rs 85/- and 330ml Rs 45/-
Promotion
Kingfisher tagline King of good times is one of the most popular and most
successful tagline in India.
Since advertising of liquor is banned in India, 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. UB promoter also
acquired a Formula- One team (Force India).
Kingfisher also deals in sports merchandising starting with an ad featuring Sourav
Ganguly and Ajay Jadeja in 1997.
With the launch of Kingfisher airlines combined promotion is possible which helps
the brand promotion a lot. Kingfisher also ventured into other businesses with same
brand name making the brand more visible and publicity easier.
Kingfisher recently tied up with NDTV for their new lifestyle channel NDTV Good
Times for five years And finally the Sultan himself, Dr. Vijay Mallya, the Big Daddy
of all brands, the flamboyant Czar of the liquor industry who is the youth icon of a
million hearts. His sole presence outweighs all other competitors taken together.
Brand repositioning of Indian brand in presence of international brand:
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The term positioning is widely used within the marketing and advertising communities
today. Positioning is often used nowadays as a broad synonym for marketing strategy.
Positioning should be thought of as an element of strategy, a component of strategy, not as the
strategy itself. The term positioning is, and should be, intimately connected to the concept
of target market. That is, a brands positioning defines the target audience. The correct
positioning of a brand is basic and fundamental to its success; an incorrect or suboptimal
positioning can doom a brand to underperformance or failure. Kingfisher, since its origin
proved to be the marketing savvy brand. Even though it was the largest selling beer brand,
but when Fosters entered the Indian market, Kingfisher sniffed possible competition and
invested heavily in brand visibility and positioning. During 2003-04 Kingfisher again
repositioned itself by changing the logo.
PREVIOUS LOGO CURRENT LOGO
Instead of the sitting kingfisher bird, the picture of a flying kingfisher was used during
creation of new logo because the company wanted to promote itself as an aspirational brand
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which always wants to go high. This change was made mainly to maintain the distinctive
positioning and to create a stronger emotional bond with the aspiring Indian youth. This
repositioning was so successful that even today Kingfisher uses this logo. After the entry of
international brand Fosters, Kingfisher repositioned itself into a lifestyle brand adopting
jingles like Oola la le lo and tagline King of good times. Kingfisher tried to position itself
as a brand for the successful and professional individuals who are always ready to take a
break, have a party or just chill out. This positioning was promoted using Indian cricketers
such as Ajay Jadeja and Sourav Ganguly, West Indies cricket team (At that time Kingfisher
was the official sponsor of WI cricket team) and various other means. The notable thing
during this repositioning process is that during this process Kingfisher kept the original
message of the brand intact while adopting strategies (including advertising, logo designing,
etc.) to communicate better with the consumers and to create a stronger emotional bond with
them. The strategies of Kingfisher paid off well and as a result Kingfisher maintained the
leadership position and added more dimensions into the brand making it stronger than before.
Brand Extension:
Kingfisher is one of the most recognized brand in India and SAB Millers fosters has also
positioned itself as a unique brand so extension of both brands is possible without much
hassle. Kingfisher:
Kingfisher is widely known among large number of consumers and its brand presence
increased after diversification into airlines business. Kingfisher brand can be extended in
following ways-
Kingfishers overseas promotion drives -
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1. Abu-Dhabi to Goa: A promotion at all the six stores of Spinneys, Abu Dhabi took place
where customers were entitled to a raffle coupon to win an all expense paid holiday to Goa on
purchase of any case of Kingfisher or Kingfisher Strong. Two lucky winners were to fly to
Goa, for an exclusive Taj resort, sightseeing and excursion including visit to the production
unit and lots of complimentary Kingfisher to ensure that happy times stay with our valued
customers forever.
2. Tie up with Sony: Kingfisher had an exclusive deal with Sony consumer electronics raffle
and instant scratch and win promotion wherein the customers on purchase of any case of
Kingfisher Lager or Kingfisher Strong stood a chance to win by way of instant scratch and
win rewards free Kingfisher Lager / Kingfisher Strong goodies like T-shirts, Caps, Desktop
Calendars, free bottles.
3. Alliance with Bollywood: Keeping in mind the popularity of Hindi movies outside India
Kingfisher was a part of the souvenir programme for the Shah Rukh Khan show in Hong
Kong on 1 December 2004 as a part of Diwali celebrations in Hong Kong. With other high
profile stars like Preity Zinta, Saif Ali Khan, Zaid Khan, etc for the event.
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4. Test market in South Africa : It received very positive test market results for Kingfisher
Premium Lager Beer and Kingfisher Strong Premium Beer in 330 ml cans for the African
markets.
5. Launching new products in the market: A trial for 2 cases of Taj Mahal 330 ml bottles in
June 2004 for Australia generated a lot of interest and enthusiasm for the country of the origin
brand, which spoke of eternal love and passion. With successive orders for the past 3 months,
Taj Mahal Premium Lager Beer is now available in 6 packs: the most preferred pack size
down under. 6. New merchandizing schemes started: Keeping in tune with the times and
constantly updating our merchandise portfolio, Kingfisher offered its customers practical and
useful merchandise, which are of very high quality and designed to meet the high
expectations, which include premium travel bags, sling bags, waist pouches and foldable
shopping bags, windcheaters and luggage tags, premium embroidered aprons and Polo T-
Shirts.
3.9 Surrogate Marketing in India
Surrogate Marketing is a requirement of all alcohol/cigarette brands in countries where it is
prohibited by law to directly advertise addictive products such as alcoholic beverages and
cigarettes in mass media. It is a strategy which refers to the indirect way in which companies
advertise their products, and use minor loopholes in the law to still achieve the basic
marketing objectives of building brands, creating customer associations and promoting
brands. They do this by associating the same brand names to other acceptable products,
ranging from sodas to music CDs !!
India too falls under the category of countries who have prohibited advertising of alcoholic
beverages, but still companies and brands make their own efforts to do the same
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UB Group
United Breweries is the group which has really exploded the restrictions, expanding surrogate
methods of branding in all directions imaginable. Lets list down where all they are present:
a) Kingfisher
Kingfisher has the most diverse set of surrogates floating around: a) Kingfisher Airlines (even
though it is a full fledged business with a monetary interest); b) Kingfisher Calender; c)
Kingfisher bird as a part of the logo of NDTV Good Times (co-branding) d) shows on
making of the calendar on NDTV Good Times etc. Vijay Mallya himself is a popular
brand ambassador now for the company.
b) Bagpiper
A host of ads on Bagpiper soda, featuring Akshay Kumar and a few others, with the now-
famous tagline: khoob jamega rang jab mil baithenge 3 yaar aap, main aur bagpiper
again, promoting Bagpiper soda.
c) Royal Challenge:
A major property in the form of Royal Challengers Bangalore playing in IPL.
d) Whyte and Mackay: nothing notable apart from being present on the RCB IPL jerseys
e) White Mischief: an indirect promotion through the White Mischief holidays, and also
through the RCB cheerleaders So the above was a snapshot on what all the liquor companies
are doing in India, trying to spread awareness about their brands through indirect means and
mechanisms. Of these, some are full fledged business interests, such as Kingfisher airlines.
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REVIEW OF LITERATURE:
A paper entitled Beer Drinking Nations The Determinants of Global Beer

Consumption by Liesbeth Colen and Johan F.M. Swinnen.
In this paper the respected authors study the evolution of beer consumption between countries
and over time.
An overview of the historic evolution of beer consumption in the world indicates that
consumption of beer has changed importantly over time. Also over the past 50 years
consumption patterns in beer have changed strongly, with decreasing consumption in the
traditional beer drinking nations and strong growth in emerging economies.
They analyzed the determinants for beer consumption and estimate an empirical model
toexplain what makes a country a beer drinking nation. Our first empirical result is that the
relationship between income and beer consumption is non-linear. Beer consumption initially
increases with rising incomes, but at higher levels of income beer consumption falls with
further income growth. Second, we find that in countries that were originally beer drinking,
the share of beer in total alcohol consumption reduces with opening of trade and increasing
globalization, while this is not the case in the non-beer drinking nations. These findings are
partially consistent with the idea that there is convergence in the consumption patterns of
alcoholic beverages, as suggested in the literature.
Finally, other factors that can explain the different levels of beer consumption between
countries are the climatic conditions, the importance of different religions in the country and
the relative price of beer to other alcoholic drinks.
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A paper entitled Advertising Alcohol and Youth by John P Nelson.
According to the author, advertising has an effect on alcohol consumption, rather than brand
equity, has proven to be elusive. A report to Congress in 2000 by the National Institute on
Alcohol Abuse and Alcoholism concluded that the results of research on the effects of
alcohol advertising are mixed and not conclusive. A recent report by the National Research
Councils Institute of Medicine, which was conducted at the behest of Congress, reached
much the same conclusion. Nevertheless, the Council recommended heightened regulation of
alcohol advertising.
Beer and spirits producers tend to advertise in magazines withmore young adult readers (ages
2024), men, and blacks. Wine advertisers tend to favor older readers (age 25+) and higher
income readers. Adolescent readers are not important statistically for any beverage, including
spirits, the alcohol beverage that emphasizes magazine advertising.
Page 25
A paper Entitled Modeling the demand for alcoholic beverages and advertising
specifications
The authors
1. ric Larivire
2. Bruno Larue
3. Jim chalfant
In this paper, the demand for beer, wine, spirits and soft drinks in Ontario is modeled in two
parts: an equation is specifiec to endogenize group expenditures and a demand system is set
up to allocate budgeted group expenditures across types o beverages. Advertising is allowed
to influence both the level of group expenditures and its allocation. Three popula advertising
specifications are compared using theJ-test and the likelihood dominance criterion. Even
though all threi specifications fitted well according to standard criteria, the calculated
expenditure, price and advertising elasticities wen sensitive to the manner with which
advertising is specified. This clearly highlights the need to rely on a sound criterion t<
identify a dominant specification. From the identified dominant specification, we found that
advertising has very subtle effect on expenditures on alcoholic beverages (group and
individual beverages). Thus, advertising is not effective in enlarginj markets and this suggests
that firms (especially breweries) use advertising to compete in zero-sum market share games.
From i public policy perspective, our results are comforting but future research should
investigate whether the neutral effect o advertising on aggregated expenditures hide
substantial offsetting changes in the drinking habits of individuals.
A paper entitled The Demand for Beer, Wine and Spirits by by James J. Fogarty
Page 26
According to the author the demand for alcohol literature is vast and much conflicting
information about the nature of the demand for alcoholic beverages has been
published. This paper presents a survey of the literature, and then uses the
technique of meta-regression analysis to establish insights into the nature of the
demand for beer, wine and spirits. Unlike previous meta-studies of the demand for
alcoholic beverages this study adjusts for the precision of each elasticity estimate.
The analysis presented suggests reported elasticity estimates will be influenced by
such factors as estimation technique, data frequency and time period under
consideration. With respect to time, the findings suggest that the demand for
alcoholic beverages has become less inelastic since the mid-1950s and that the
income elasticity has been falling since the mid-1960s. The analysis also found
support for the idea that alcohol as a commodity group is a necessity, and that
consumers respond to price discounting with inventory behaviour rather than true
substitution behaviour. Little support is found for the idea that the demand for
alcoholic beverages varies fundamentally across most countries, although wine may
be an exception.
Area of Study
Page 27
Ulhasnagar a small town somewhere in thane district. A PLACE which is nowhere left
behind. A Place full of crowd with mostly SINDHI COMMUNITY and other communities
too. A Place where doing business is in the Blood of people living here. Ulhasnagar being
called as Business Hub, divided in five camps , nearby ambernath and kalyan.
Ulhasnagar, which is once a military camp area for Sindhi refugees migrated from Pakistan,
is now heavily populated with this community people. The city is also known as Sindhunagar
and it is very famous from economic aspect. Ulhasnagar is a very good business centre not
only in Thane district, but also in Maharashtra State. It is a city located on the coast of West
India, which is nearly 60 kilometres northeast of the city of Mumbai.
Birla temple, furniture market, gajanand market, jeans market, Century
rayon factory, shiv mandir etc are the important places in Ulhasnagar.
Brief description:
Ulhasnagar-1 (W): It is also known as Ulhasnagar camp-1 and it is located on the west side
of railway stations. The main center here is a market with famous landmarks like Goal
maindan where many people visit from nearby areas like kalyan, ambernath, badalpur,
dombivili, thane, titvala etc for shopping.
Ulhasnagar-2 (W): The other name of this place is Ulhasnagar Camp-2. It is a market with
popular landmarks like Gajanand market and it is famous for clothing, electrical and
electronics etc. Nehru Chowk is the main centre here.
Ulhasnagar-3 (W): it has another name as Ulhasnagar Camp-3. It is mainly a market and it is
located on the west side of railway stations. The famous landmarks here are furniture bazaar,
RKT College, Sapna theatre, Ashok-Anil Multiplex etc. it is mainly a furniture and
electronics market.
Ulhasnagar 5 (E): This locality, which is also known as Ulhasnagar Camp-5, is located on
the eastern side of railway stations and it is mainly a residential area. You can see several jean
Page 28
making small scale industries here. Jhulelal Mandir, Swami Sarvanand School, Swami
Shantiprakash Chowk, Nethaji Garden, etc are the famous landmarks here. This locality is
heavily populated with Sindhi community people. Originally, known as Kalyan Military
transit camp (or Kalyan Camp), Ulhasnagar was set up especially to accommodate 6,000
soldiers and 30,000 others during World War II. Sindhis, in particular, began life anew in the
new land. The area was converted into a township in 1949, and named Ulhasnagar by the
then Governor-general of India, C. Rajagopalachari (literally 'city of joy'; ulhas = joy; nagar
= city). On August 8, 1949 the first and last Governor-General of India, C. Rajagopalachari,
laid the foundation stone.
As said earlier, Ulhasnagar is a place which is nowhere left behind because each and
everything is available here, as it is good in providing services like EDUCATION,
HOSPITALITY, BANKING AND INSURANCE SECTOR, TOURS AND TRAVELS,
BEING IMPROVED IN INFRASTUCTURE ALSO , ETC.
Education:
The city has colleges and an industrial-training institute like institute of technology, Holy
family Convent High School, New English (at camp no.5), SST College of Arts and
Commerce etc. Smt. Chandibai Himatmal Mansukhani college and R. K. Talreja are two
major colleges.
Growth:
Ulhasnagar, one of the busiest business centers in Maharashtra, has several jewellery
showrooms. Some of the popular jewellery showrooms in the city are listed here.
We can watch the gradual development of Ulhasnagar to a shopping hub and business centre
from a military camp area in the pre-independence era only with wonder. Sindhis, who
migrated to this land from Pakistan, has significant role in the growth of Ulhasnagar in the
business field. Even though they came to the city with minimal resources, now most of the
Page 29
small and big shops in Ulhasnagar are under owned by them. It is nothing else but their hard
work and talent that made them able to develop this city to a mini-Japan during the last five
decades.
Specialities:
Ulhasnagar, which is the most popular industrial and commercial township
of Thane district, is famous for shops of wedding costumes, jeans and other readymade
garments. Sindhi people, who live other parts of India such as Gujarat, Goa and Madhya
Pradesh, visit Ulhasnagar to do their wedding purchase. There are many shops, which are
exclusively aimed for wedding costumes
The city is also famous for jeans manufacturing. Jeans and ready made garments
manufactures at Ulhasnagar 5 are sold in all markets of the country. Many popular jeans
brand have factories in Ulhasnagar.
The most busy commercial and shopping center here are Ulhasnagar 2 & 3.
Tourist Attractions in Ulhasnagar:
There are several tourist attractions in Ulhasnagar including beautiful locations, religious
places and historical monuments etc. Some of the famous temples in Ulhasnagar including
Chaliho Sahib, Birla Mandir, haji Malang, Jhulelal Temple, Saint Satram Dham and Swami
Shanti Prakash Temple etc.
Facts and Findings:
1. Age group
Page 30
Age group
6.00%
12.00%
18-21
30.00%
21-25
25-35
12.00% 35-50
50& above
40.00%
In the survey of 100 there are Respondents under different age group:-
Age No. Of
Respondents
18-21 yrs 30%
21-25 yrs 40%
25-35 yrs 12%
35-50 yrs 12%
50 yrs and 6%
above
2. Occupation:
Page 31
Occupation
16.00%
Service
Business
46.00% Student
38.00%
occupation No of Respondents in (%)

Service 46%
Business 38%
Student 16%
Page 32
3. How often do you consume beer ?
Consumption of beer
10.00%
Daily
once in week
20.00% 40.00% twice in week
once in month
once in six months
20.00%
10.00%
From the survey of 100 respondents 40 % respondents consume beer daily, 10 %
respondents consume beer once in week, 20% respondents consume beer twice in week, 20 %
respondents consume beer once in month and 10 % respondents consume beer once in six
months.
Page 33
4.
Preferred Brand
6.00%
10.00%
Kingfisher
fosters
8.00% Carlsberg
Budweiser
Hayward
8.00% others
60.00%
8.00%
Which is the preferred brand in BEER?
From the survey of 100 respondents 60 % respondents Prefer Kingfisher, 8 % respondents
Prefer Fosters, 8 % respondents Prefer Carlsberg, 8 % respondents Prefer Budweiser, 10 %
respondents Prefer Hayward and , 6 % respondents Prefer other brands.
Page 34
5. What do you look at while selecting beer?
factors for selecting beer
10.00%
Brand name
10.00% 30.00%
Quantity
Taste
Satisfaction
10.00% Value for money
influenced by friends
10.00%
30.00%
From the survey of 100 respondents 30 % respondents look at Brand name while Selecting
beer , 10 % respondents look at Quantity while selecting beer, 30 % respondents look at taste
while selecting beer, 10 % respondents look at satisfaction while selecting beer, 10 %
respondents look at value for money while selecting beer, 10 % respondents look at influence
of friends while selecting beer.
Page 35
6. How much do you spend on a one time purchase?
Amount spent on one time purchase of beer
10.00%
20.00%
200-250 RS
150-200 RS
100-150 RS
50-100 RS
20.00%
50.00%
From the survey of 100 respondents 20 % respondents spend 200-250 RS on one time
purchase of beer, 20 % respondents spend 150-200 RS on one time purchase of beer,
50% respondents spend 100-150 RS on one time purchase of beer and 10 %
respondents spend 50-100 RS on one time purchase of beer.
7. Would you switch to another brand if the price of Kingfisher increases?
Page 36
switching to another brand if the price of Kingfisher increases

80%
70%
60%
50%
40%
30%
20%
10%
0%
YES NO
From the survey of 100 respondents 30 % respondents will switch to another brand if
the price of Kingfisher increases while 70 % respondents will remain loyal to
Kingfisher instead of increase in prices.
Page 37
8.
Place of Purchase
70%
60%
50%
40%
30%
20%
10%
0%
Wine stores Club Bar Pub
From where you purchase the beer?
From the survey of 100 respondents 60 % respondents Purchase beer from wine stores, 10 %
respondents Purchase beer from club, 20 % respondents Purchase beer from Bar, 10 %
respondents Purchase beer from Pub.
Page 38
9. When do you usually consume beer and how often?
Time of consumption of beer
10.00%
In party
Social occasions
40.00% when in mood at home
with friends
30.00%
formal party
10.00% 10.00%
From the survey of 100 respondents 40 % respondents consume beer in party, 10 %
respondents consume beer in social occasions, 10 % respondents consume beer when in
Page 39
mood at home, 30 % respondents consume beer with friends and 10 % respondents consume
beer in formal party.
10. Kingfisher as a brand, how would you rate it?
Rating of Kingfisher beer

70%
60%
50%
40%
30%
20%
10%
0%
Excellent good satisfactory non satisfactory
From the survey of 100 respondents 60 % respondents rate Excellent, 20 %
respondents rate good, 15 % rate Satisfactory and 5 % rate non satisfactory to
kingfisher beer.
Page 40
Analysis and Interpretations:
1. Age group of the respondents:
In the survey of 100 there are Respondents under different age group 30 %
respondents are in the age group of 18-21 years, 40 % respondents are in the age
group of 21-25 years, 12 % respondents are in the age group of 25-35 years, 12 %
respondents are in the age group of 35-50 years, 6 % respondents are in the age group
of 50 years and above.

2. Occupation of respondents:
In the survey of 100 there are Respondents under different Occupation, 46 %
respondents are under service, 38 % respondents are under Business and 16 %
respondents are Students.

3. Consumption of beer:
From the survey of 100 respondents 40 % respondents consume beer daily, 10 %
respondents consume beer once in week, 20% respondents consume beer twice in
week, 20 % respondents consume beer once in month and 10 % respondents consume
beer once in six months.

4. Prefered Brand:
Page 41
From the survey of 100 respondents 60 % respondents Prefer Kingfisher, 8 %
respondents Prefer Fosters, 8 % respondents Prefer Carlsberg, 8 % respondents Prefer
Budweiser, 10 % respondents Prefer Hayward and , 6 % respondents Prefer other brands.
5. Factors for Selecting Beer:

From the survey of 100 respondents 30 % respondents look at Brand name while
Selecting beer , 10 % respondents look at Quantity while selecting beer, 30 %
respondents look at taste while selecting beer, 10 % respondents look at satisfaction
while selecting beer, 10 % respondents look at value for money while selecting beer,
10 % respondents look at influence of friends while selecting beer.

6. Amount spent on one time purchase of beer:
From the survey of 100 respondents 20 % respondents spend 200-250 RS on one time
purchase of beer, 20 % respondents spend 150-200 RS on one time purchase of beer,
50% respondents spend 100-150 RS on one time purchase of beer and 10 %
respondents spend 50-100 RS on one time purchase of beer.

7. switching to another brand if the price of Kingfisher increases:
From the survey of 100 respondents 30 % respondents will switch to another brand if
the price of Kingfisher increases while 70 % respondents will remain loyal to
Kingfisher instead of increase in prices.

8. Place of Purchase:
From the survey of 100 respondents 60 % respondents Purchase beer from wine
stores, 10 % respondents Purchase beer from club, 20 % respondents Purchase beer
from Bar, 10 % respondents Purchase beer from Pub.

9. Time of consumption of beer :
From the survey of 100 respondents 40 % respondents consume beer in party, 10 %
respondents consume beer in social occasions, 10 % respondents consume beer when
in mood at home, 30 % respondents consume beer with friends and 10 % respondents
consume beer in formal party.

10. Rating of Kingfisher beer:
From the survey of 100 respondents 60 % respondents rate Excellent, 20 %
respondents rate good, 15 % rate Satisfactory and 5 % rate non satisfactory to
kingfisher beer.
Page 42
SUGGESTIONS
Tying up with more number of large restaurants , hypermarkets for retailing Kingfisher
beer. As of now Kingfisher Ultra, blue is not available widely. It should be made available
in more number of outlets
More promotional activities, in order to increase the awareness.
Since Kingfisher Ultra is a mild beer it can be targeted at the women consumer.
Indian market is price sensitive, Kingfisher Ultra, kingfisher premium would benefit from
reducing the price.
UBL should not introduce any new brand of beer. They should concentrate on the existing
brand and should also work on building its image.
Company can improve sales by selling it in more number of restaurants, it is a strategy
which is used by the soft drinks manufacturers. People will probably buy beer with food.
They should start selling Kingfisher in 330ml or 500ml cans.
The consumption of Super Premium beer is higher in night club, so it should be made
available in more number of night club.
They can come up with a low calorie beer and can call it Kingfisher Ultra Lite.
CONCLUSION:
India as a nation is making economic progress. There are lots of people who are indulging in
luxurious life, they prefer to buy branded products and do not mind paying a premium for
quality. But for the majority price is a constraint, especially for the middle class population.
They would only purchase items that they feel is value for money. So if they feel that they
dont get enough benefit from the product then they avoid buying it.
Page 43
As far as buying behavior of people with respect to beer is also the same. The highest selling
beer in India is kingfisher strong and premium which is priced at Rs70 for 650ml bottle. The
sales of Super Premium beer like kingfisher Ultra is relatively low, which is priced at Rs100
for 650ml bottle. Even though the Super premium beer is of high quality and has been
appreciated by the consumer, it has not resulted in as high sales as compared to the premium
category beer.
This just shows that it will still take some time for the Indian mindset to change where more
number of people will be willing to spend on quality without thinking much about the cost.
But we can already see a reasonable change in the consumer mindset, from say 10 years back.
What I feel is that even though price is a barrier at present, but things will get better in the
future and super premium beer would take over the market from the current 5% to about 25%
in the near future. Even though there is stiff competition from the foreign brands like
Carlsberg and tuborg , Budweiser , corona. there would not be any major threat to the
kingfisher brand. The brand is still the favorite among the Indian consumer and it will grow
from strength to strength.
References
1. A paper entitled Beer Drinking Nations The Determinants of Global Beer
Consumption by Liesbeth Colen and Johan F.M. Swinnen
2. A paper entitled Advertising Alcohol and Youth by John P Nelson.
3. A paper Entitled Modeling the demand for alcoholic beverages and advertising
specifications The authors ric Larivire,Bruno Larue &Jim chalfant.
Page 44
4. A paper entitled The Demand for Beer, Wine and Spirits by by James J.
Fogarty.
5. Tremblay, V. J. and C.H. Tremblay (2005). The US brewing industry: Data and
economic analysis,.
6. Poelmans, E. and J. F. M. Swinnen (2011). A Brief Economic History of Beer,
in: Swinnen, J. F.M. (ed.), The Economics of Beer, Oxford: Oxford University
Press.
Annexure
(This questionnaire will be used purely or academic research only. Information provided
will be kept confidential.)
Name_____________ Age__________
sex male / female __________ Occupation- services/ buisness/students /others
Page 45
1. Do you consume beer ?
Yes No
2. How often do you consume beer?
Daily Once in a week
Twice in a week Once in month Once in six months
3. Which is the preferred brand in BEER?
Kingfisher Fosters Carlsberg
Budwieser Hayward Others
4. What do you look at while selecting beer?
Brand name Quantity Taste and flavor
Satisfaction Value for money influenced by friends
Any other
5. How much do you spend on a one time purchase?
200/- to 250/- 150/- to 200/-
100/- to 150/- 50/- to 100/-
6. Would you switch to another brand if the price of Kingfisher increases?
Yes No
7. From where you purchase the beer?
Wine Stores Club
Bar Pub
8. When do you usually consume beer and how often?
In a party Social Occasions
When in mood at home With friends
Page 46
Formal party
9. What would you prefer having beer in? And why?
Bottle Can A designer glass
Any other suggestion
10. If you are consuming kingfisher, what is the reason for consuming it?
a. Quality. b. Price. c. Flavour
d. Taste. e. Packing. f. Other
11. You associate kingfisher with which of the following?
12. Kingfisher as a brand, how would you rate it?
Excellent Good
Satisfactory Not Satisfactory
13. Would you recommend Kingfisher beer for a tea-totler?
Yes No
Page 47

Consumer Behaviour On Kingfisher Beer

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Consumer Behaviour on Kingfisher Beer

added to flavor and stabilize it.

converts wort to beer.

that of its arch rival, muhan meakin.

among the provisions that were loaded on the ark.

Country 1965 1975 1985

transportation , advertising and promotion.

prohibition remain in effect through local option laws.

MANUFACTURING PROCESS OF BEER

vessels during fermentation, which begins at a temperature of from 6 degree c to 10 degree c

use in animal foods.

degree c and 9 degree c ).

essential characteristics is a higher alcoholic content than in other beers.

in the U.S. are laggard.

years and has never been equaled.

alcoholic contents than beer , all ales top fermentation brews.

United Breweries Group

United Breweries Group or UB Group, based in Bangalore, is a conglomerate of different

Indian subsidiary of the global Pharma major Sanofi-Aventis.

operations. Now, it is just the Pegasus.

India being a Kingfisher brand. It is currently available in 52 countries outside India.

Heineken Group, holds 37.5% equity shares in United Breweries Ltd.

Kingfisher Beer is sometimes promoted as The King of Good Times.

Types of kingfisher beer

Kingfisher comes in the following varieties

available in the Indian market. It is packaged in a 500 ml cans.

Kingfisher Draught: It is packaged in a 500 ml cans.

in two SKUs: 650ml and 330ml bottles.

and will soon be a national brand.

Kingfisher Red: It is marketed as Indias 1st ALL SEASON beer.

Kingfisher Bohemia is available in Mumbai, Pune, Delhi, Bangalore, Goa, Chennai,

Hyderabad, Pondicherry, Kerala and Kolkatta.

The World's No.1 Selling Indian Beer!

Kingfisher is enjoyed in over 55 countries world wide. From the USA

one of the largest selling beer brands in the world today.

both within the Company and among consumers !

Celebrating over 150 Years of Brewing Excellence!

combined these breweries to form United Breweries Ltd.

favourite, especially with the British troops.

So began the history of Beer in India...

worldwide, is now available in over 55 countries and is exported from the UK to 19

respectively in the traditional large 650ml bottles.

Market Leader Long Developmental Cycle

Strong Brand Image Relative Static Market

Global Presence Expensive Brand

Quality & Innovation

Demographic Changes New Competitors

Changes Societal Cloning of Successful Brands

Attitudes Increasing Buyer Power

Consumer Brand Growth in Substitutes

Preference Economic Downturn

Demand for High Quality

Kingfisher has two different products for different market segments.

Kingfisher Mild (Alcohol<4%) Kingfisher Mild (Alcohol<4%)

Youth who drink for fun

Those who want to light beer to something

First-time drinkers who drink for experience stronger

No. 1 selling product in its segment.

Good quality raw material is used to maintain the quality standards.

Consistency of product quality is high.

Hangover due to heavy consumption is very mild.

UB has 16 company-owned breweries apart from nine contract breweries in 20

different locations across the country.