Enjoy Our Product

PROJECT REPORT ON
THE STUDY OF MARKETING STRATEGY
FOR
FOSTER’S BEER
Submitted By:
Mr.Parish Mukesh Sharma

Under the guidance of :

Prof. D.N Gore Sir

Submitted To:

Savitribai Phule University of Pune, MH.

In the partial fulfillment of TYBBA (Semister-VI).

C.T.BORA College,Shirur,MH
Year2018-19

2
 ACKNOWLEDGEMENT

I would like to thanks all the people at Foster’s company whom I met during
the period of this project for their support & for providing me valuable
without which I could not have completed this project successfully.

I would also like to thanks Mr. Dinesh Khonde, Mr.T.V.Sitaram & Mr.
Suresh Morvani for their support & untiring effort & for sharing with me
their experience. This was due to their helpful hands that I could manage to
do this project successfully.

I am sincerely thankful to principal Dr. K.C Mohite sir and also the
faculty incharge and as well as BBA(CA) department Dr. S.P Borse sir. It’s
my pleasant duty to articulate my deep sense of gratitude to my research
supervisor Prof.D.N Gore sir of C.T.Bora college, Savitribai Phule Pune
University for his constant and sagacious guidance during the course of
this investigation.

Date: Mr.Parish Sharma

Place:

3
 Index
Sr. No. Heading Page No.
1. Acknowledgement 03
2. Declaration 06
3. Importance of Project 07
4. Company Profile 08
5. Companies 10
6. Foster’s The Brand 12
7. Foster’s Group Ltd 13
8. Foster’s India Ltd. 17
9. Product Profile 19
10. History of Foster’s 21
11. Health, Safety, & Environment 22
12. Market Place 24
13. 5 Steps to the Perfect Beer 25
14. Objectives of the Study 27
15. Scope of the Study 28
16. Research Methodology 32
17. Consumer Behavior & Marketing Strategy 35
18. Segmentation 37
19. Culture 41
20. Promotion Activities of Foster’s 45

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21. Data Analysis 50
22. Conclusion 58
23. Suggestions 59
24. Bibliography 62
25. Questionnaire 63

5
 DECLARATION

I Mr.Parish.M.Sharma hereby declares that this project report on

“THE MARKETING STRATEGY of the Foster’s beer.” Is a
genuine & bonafied work prepared by me under the guidance of
Prof.D.N Gore sir.
The empirical findings in this project report are based on the data
collected by myself. The matter presented in this report is not copied
from any source. I understand that any such copy is liable to the
punishment in way the university authority deems fit.
The work has been not submitted for the reward of any degree or
diploma either to Savitribai Phule Pune University, or any other
University.
This report is submitted to SAVITRIBAI PHULE PUNE
UNIVERSITY in the partly fulfillment of the degree of Bachelor of
Business Administration.(TYBBA sem-VI )

Place: Mr.Parish Sharma

Date:

6
 Importance of Project

Research problem is important from researcher’s own as well as company’s point

of view because it is the need of the hour to know about the present market
condition & the effect of the promotional scheme on such conditions.

From company point of view the researcher has much more importance. The
findings & suggestion given by the researcher may help the company to take the
future decision in order to achieve the company’s goal.

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Profile

Foster's Group is a premium global multi-beverage company delivering a total

portfolio of beer, wine, spirits, cider and non-alcohol beverages. Our products
inspire global enjoyment and are enjoyed by consumers all over the world.

Our Philosophies
Consumer led, customer driven
We believe in placing the consumer and the customer at the heart of everything we
do. We strive to be innovative in the way that we respond to the changing needs of
our consumers and customers. i-Nova is Foster’s global innovation hub providing
leading insights into consumer and shopper behaviour that informs every aspect of
our business from brand development and marketing to supply chain and logistics.

Sustainability @ Foster’s
Foster’s is committed to continuous improvement in our business processes so that
we maximise our positive social, environmental and economic impacts. We are
also conscious of the need to minimise our environmental footprint wherever
possible. We do this because we know that our shareholders, our employees and
our stakeholders in the communities where we operate rightly expect us to
demonstrate corporate responsibility leadership.

We monitor our sustainability performance in four key areas: our workplace, our
marketplace, the environment and in the community.

Foster’s People
Foster’s offers an exciting and diverse portfolio of career opportunities. Our people
are innovative, passionate and energetic – working as one team with one high-
performance culture.

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Foster's is committed to creating an 'inspiring workplace' which attracts and retains
highly skilled people. Our people are a key focus for the organisation and form one
of the three key strategic goals for Foster's, to be:

o First choice brands for consumers

o First choice employer for our people
o First choice investment for our shareholder's

The Foster’s workforce comes from different backgrounds, experiences and

personal circumstances. At Foster’s, we do not merely tolerate employee diversity,
equal opportunity and inclusiveness - we recognise and value it. In addition to our
policies that clearly express our commitment to these principles, we have put in
place programs and processes to make sure our workforce reflects the diversity of
the community.

Foster's aims to be externally competitive, and internally equitable, taking into

account the relative performance and demonstration of desired Group values and
behaviours. We strive to deliver total reward packages that are fair and equitable to
all employees.

Foster's Group is highly committed to the ongoing development of its people. We

know that our investment in employee development has a direct impact on the
achievement of our business goals and the profitable growth of our business. We
provide our employees with high-quality opportunities to address their individual
development needs to build their capacity for high performance and foster the
creation of an inspiring workplace.

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Companies

Foster’s Australia

Foster’s Australia is Australia’s leading multi-beverage business offering

retail customers and consumers an unrivalled portfolio of leading beer,
wine, spirits, ready-to-drink, cider and non-alcohol brands.

Through its unique direct sales network Foster’s Australia has built strong
relationships with almost 25,000 retail customers – the largest customer
base in the industry in Australia.

Foster’s Australia combines the strengths and heritage of the former

Carlton & United Beverages (CUB) business with the non-wine production
of Foster’s Australian-based wine business, formerly named Beringer Blass
Wine Estates Asia Pacific. The recent acquisition of Australia’s largest wine
company Southcorp, has seen the wine portfolio expand to include icon
brands such as Penfolds, Rosemount and Lindemans.

Foster’s Australia’s scale, customer contact network and portfolio breadth

provide it with valuable insights into its consumers' needs. Foster’s
Australia’s commitment to delivering new and established products to
market faster than anyone else is underpinned by continuous investment in
brand building and innovation.

Foster’s Australia’s brand portfolio encompasses some of Australia’s most

well-known and well-loved brands including the number one premium wine
brand by value in Australia - Wolf Blass - and the number one brand in the
sparkling wine market - Yellowglen*.

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Our non-alcohol range includes traditional favourites like Cascade Ginger
Beer and Cascade Real Juices, plus new favourites like Angostura Lemon,
Lime and Bitters and Torque accelerated recovery drink. Foster’s Australia
also produces and manages a wide portfolio of spirits brands including The
Black Douglas scotch and SKYY vodka. And our beer range includes all
the local and international icons like Australia’s favorite beer, Victoria Bitter,
premium favourite Crown Lager and great imports like Corona and Asahi.

Foster’s Brewing International

Foster’s Brewing International is Foster’s Group’s international beer

business, responsible for managing the Foster’s beer brand globally.
Foster’s Brewing International has business partnerships with leading local
brewers in the UK, Europe and USA, and in Asia owns breweries in China,
Vietnam, India, Fiji and Samoa.

As one of only a handful of truly global beer brands, Foster’s has enjoyed
phenomenal success. The brand has enjoyed international growth of more
than 40 per cent in the last five years and is one of the fastest growing beer
brands in the world. In total, over 100 million cases of Foster’s are currently
sold annually in more than 150 countries around the world.

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 Foster's the Brand

Foster's Lager is the largest selling Australian beer brand in the world with more
than 100 million cases of Foster's consumed worldwide every year.

Brewed in nine countries and over 20 plants, Foster's Lager is widely sold and
distributed throughout Australia, Asia, the Pacific, Europe, the Americas and the
Middle East. It is the world's third most widely distributed brand, available in more
than 150 countries.

Foster's Lager is the international flagship brand for the Foster's group.

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FOSTER’S GROUP LIMITED

In 1886 two brother, W.M. & R.R. foster, stepped off the boat in Melbourne from
New York City to make their fortune brewing a new kind of bear for the colonies.
They brought the most advanced brewing equipment available & the world’s best
brewing expertise in a German / American brewer & New York refrigeration
engineer. The brother paid almost every penny they had, £ 48,000, to build
Melbourne’s most modern brewery. The first Foster’s larger prototype was brewed
in November 1888 & bottled in the classic heavy bottle of the day with a wired-
down cork.

When Foster enters in the Indian market their goal was stated “They want to
establish Foster’s international premium lager beer. Therefore, the international
packaging & size.” They came in with both sizes, though pint-size (330ml) bottles
were more aggressively promoted. 70% of Foster’s sales today come from the pint
size market & the company enjoys 31% of the market in the Maharashtra.

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Prior to July 1998, Foster’s was just another of the foreign beers available in India.
In 2000, they notched up sales of Rs. 25 crores with around 1.58 million cases
sold. Their reading of the Indian pitch has so far been accurate.

Domestic players are realizing that they are no pint sized

challenge!

 Fosters Group is a premium global beverage company dedicated to

delivering quality beer, wine & spirit products that are enjoyed by million of
consumers around the world every day.

 Foster’s Group is one of the world’s leading brewers& the leading global
premium wine company, employing around 9,300 people.

 The company generates around $ 4 billion in total annual sales & has
brewing operations in 10 countries including Australia, Fiji, Vietnam, &
China & 25 wine operations in Australia, Chile, the United States, the
Netherlands, France, Germany, New Zeeland, Italy, the United Kingdom
&Japan.

 In the 2004 financial year net profit increased 73 % to $ 799.3 million. The
result included net significant items of 329.9 million associated with the gain

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 On disposal of Australian Leisure & Hospitality pertly offset by a write
down on some asset, predominantly wine inventories.

 Foster makes & markets Australia’s most famous beer, Foster’s Lager, as
well as Australia’s leading beer brands including Victoria Bitter, Carlton
Draught & Crown Lager.

 Foster’s also produces Australia’s best-known wine labels such as Wolf

Blass, Jamieson’s Run & yellow glen & leading U S wines such as Bringer,
St Clement, Stag’s Leap & Chateau St jean.

 There are three main operating arms within Foster’s Group: Carlton &
United Beverages, Beringer Blass Wine Estates, Foster’s Brewing
international.

 Carlton & United Beverages (CUB) is the Australian multibeverage

business. It produces markets & sale the leading rang of premium beers,
cider, spirits & non-alcohol beverages.

 Beringer Blass Wine Estates, the company’s international wine business, is

the world’s leading premium wine company. Beringer Blass Wine Estate
sells around 18.5 million cases of premium wine annually. Beringer Blass
premium wines are sold in more than 60 countries. In Australia Wolf Blass
is the number one Australian bottled wine in value & in volume.
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 Foster’s Brewing International manages Foster’s Lager, the world’s fastest
growing international premium beer brand in more than 150 countries.
Foster’s is the number one beer in London & the number two beers in the
United Kingdom.

16
 FOSTER’S INDIA LIMITED

Foster Group is a premium global multi-beverage company delivering a total

portfolio of beer, wine, spirits, & cider & non alcohol beverages. Our products
inspire global enjoyment & are enjoyed by consumers all over the world.

Foster’s emphasizes excellence……

And working collaboratively to build brand equity……

Foster’s is a quality beer with a proud Australian heritage, was first brewed in
1888. A unique crisp lager style on which Australian beers have been modeled for
more than a century. Foster’s is the fastest growing international premium beer
with a 40% growth since 1997. Foster’s ranks as the seventh largest beer brand in
the world & available in more than 150 countries. Foster’s has won gold medals
three times at the prestigious bi-annual International Brewing Industry Awards.

Aurangabad, is currently fostering true Australian venture; an eighteen million liter

premium Greenfield brewery in India. Fosters India Limited (FIL) is having its
State of the Art plant located at Plot No. M-99, MIDC, Walunj, Aurangabad. The
establishment of Foster’s India represents a landmark in the Indian market. For the

17
first time an international beer is being brewed in India. Foster’s India limited, is
ISO 9001: 2000, ISO 14001:1996 & OHSAS 18001: 1999 certified organization.

Foster’s is an Australian Public company, with the global focus on premium

beverages. Its flagship beer brand, Foster’s Lager, which is now available in more
than 150 countries, one of the fastest strategies of continuing to build Foster’s lager
as a truly global brand.

The management team of Foster’s India combines the best marketing, sales &
brewing skills, backed by the experience & expertise of one of the world’s top
brewers. The beer brewed in India exhibits the brand’s premium characteristics,
with each step in its production rigorously controlled.

Foster’s India play an important role in the brand’s global growth strategies. The
beer was successfully launched in various parts of the country & has acquired
tremendous in Mumbai, Pune, Goa, Hyderabad, Bangalore, Delhi, Chandigarh,
Kolkatta & many more cities enjoys Foster’s.

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Beer-Product Profile
Following products are manufactured at Foster’s Brewery, Aurangabad.
Beer Brand Pack size
 Foster’s lager 650 ml.
 Foster’s lager 330 ml.
 Foster’s Export Premium lager 650 ml.
 Foster’s Export Premium lager 330 ml.
 Amberrow Strong 650 ml.
 Amberrow Lager 650 ml.
 Amberrow Lager 330 ml.

Some of the international brands of Beer Foster’s possess.

Foster's leading beer range is enjoyed by drinkers throughout the world.

Led by Foster's Lager, one of only a handful of truly global beer brands, our
portfolio includes Australian and international icons like Australia's favorite
beer, Victoria Bitter, premium favorite Crown Lager and great imports like
Corona and Asahi. The number one performer in three major segments of
the Australian beer market - premium, full-strength and lower alcohol,
Foster's brands are part of the Australian lifestyle, enjoyed by drinkers
throughout the country and indeed the world.

Foster's is committed to the advertising and marketing of its products to

adults of legal drinking age. Any marketing or advertising materials or ideas
referred to or accessed from this website are directed only to consumers of
legal drinking age.

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Traditional Beers
All beers are produced using varying quantities of barley malt, i.e. dried,
germinated barley. In the brewing process the malt starch is solubilised in hot
water as fermentable sugars. Only part of the malt protein is solubilised, and in the
subsequent boiling of the extract much is degraded. Later steps in the brewing
process also reduce the amount of malt protein found in beer. However some
protein is essential for beer quality, particularly for beer presentation, since the
beer foam (head) would be extremely poor without the protein.

It should also be noted that some beers are produced using a proportion of sugar
syrups made from wheat starch, ie wheat flour from which most of the gluten has
been removed. The processing of this starch to produce the syrups used in brewing
would result in minimal contribution of gluten to beer.

Tests conducted in accordance with the procedure specified by the Australian and
New Zealand Food Authority (ANZFA), suggest that traditional beers contain a
level of gluten which is less than the level specified in the ANZFA Food Standards
Code as "Low Gluten".

However, there are concerns that the ANZFA test is unreliable in cases where malt
is present (such as beer) and therefore the test may not detect gluten-like materials
contributed by malt. Furthermore, it is also unclear whether these gluten-like
materials have a similar effect to gluten, and therefore whether they also affect
people with coeliac disease in a negative way.

Wheat Beers
Wheat beers are speciality products and represent only a small proportion of the
beer market in Australia. It is generally apparent from a beer's label that it is a
wheat beer.

Wheat malt is a significant ingredient in wheat beer. The ANZFA test for gluten
shows the presence of low levels of gluten in wheat beer. However, the level of
gluten in wheat beer is higher than in traditional beers. Foster's recommends that
people with coeliac disease should not consumer beers made with wheat malt.

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 History
Bringing together a wealth of history, Foster’s Group is the union of some
of the world’s best-loved premium beverage companies.

Foster’s roots are firmly entrenched in the late 19th century. In 1876, Jacob
Beringer established Beringer Vineyards in the Napa Valley and in 1888,
the first Foster’s Lager was brewed and the original Mildara Winery was
established.

In 1907, to help cut costs in the wake of a long economic recession in

Australia, the Foster’s Brewing Company and Carlton Brewery
amalgamated with four other breweries to form Carlton and United
Breweries (CUB).

Throughout the twentieth century, the various entities that would eventually
form Foster’s Group expanded through acquisition and brand development
to become leading beverage companies in their markets. Carlton and
United Breweries became a brewing icon in Australia through the
production of much loved brands such as Victoria Bitter, Carlton Draught
and Crown Lager and established Foster’s Lager as one of the world’s top
selling beers.

Mildara Wines and Beringer Wine Estates expanded their portfolios through
the launch and acquisition of premium brands such as Jamieson’s Run,
Saltram Wine Estates and Yellowglen for Mildara; and Meridian, St
Clement and Stags’ Leap for Beringer.

Wolf Blass Wines was established in the Barossa Valley in 1966 and
merged with Mildara in 1991 to form Mildara Blass. Foster’s acquired
Mildara Blass in 1996 heralding their entry into the wine industry for the first
time.

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In 2001, Mildara Blass merged with Beringer Wine Estates to form Beringer
Blass Wine Estates, the world’s first truly global premium wine company.

The sale of non-core parts of the business including Australian Leisure and
Hospitality Group and the Lensworth property division in 2003 and 2004
respectively marked Foster’s shift to a pure multi-beverage organisation – a
key strategy for the future.

Health, Safety and Environment

Foster's Group Limited Health Safety and

Environment Policy

Foster's Group commits itself to goals of zero injury to our employees and
zero harm to the environment from our operations. This Health, Safety &
Environment Policy is a key component of the Company’s sustainability
framework and integrates management of health safety and environment
into the way we do business.

We recognise our responsibilities for the health and safety of our

employees and the employees of our supply chain partners; and for the
environmental impacts of our operations and of our products. These
principles are central to the values of Foster's Group and guide our
business activity. We will work towards our goals through a process of
continuous improvement and, in particular, fulfil these commitments by:

1. Meeting or exceeding all health, safety and environment regulations in

each of our workplaces around the globe.

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2. Maintaining structured health, safety and environment management
systems with common global corporate standards and performance
indicators, thus providing a framework for effective hazard identification and
management, performance monitoring and continuous improvement.

3. Ensuring effective and equitable injury management through responsible

claims management and rehabilitation.

4. Providing support and training for all employees; building through

consultation a culture based on managing risk with responsibility and
accountability; and encouraging open communication with all stakeholders
on health, safety and environment issues.

5. Ensuring that all employees, contractors and visitors are informed of and
understand the need to comply with company HSE policies, procedures
and practices.

6. Integrating change management principles into our planning,

implementation and monitoring to control any introduction of new hazards.

7. Integrating cleaner production and resource conservation into our

planning and implementation.

8. Minimizing unnecessary packaging and maximizing recycling in our

internal processes, including a preferential buying policy for products with
recycled content.

9. Working with government, industry and the community to identify and

implement effective post-consumer recycling and litter minimization
initiatives.

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10. Achieving energy efficiency best practice, in line with our support for the
principles of the Kyoto Protocol on reducing greenhouse emissions and our
voluntary participation in energy efficiency initiatives.

11. Working with our supply chain to encourage suppliers to adopt similar
commitments on health, safety & environment issues and with our
customers to help them achieve their health, safety and environment
objectives.

Marketplace
Our key marketplace sustainability issues include responsible marketing
and advertising practices, how we use our influence to extend sustainable
practices through our supply chain and to our business partners and how
we ensure that our products are enjoyed responsibly and by informed
adults. Minimizing the potential negative impacts of alcohol misuse on
individuals, their families and the broader community is a shared
responsibility which we take seriously.

Practical examples of our marketplace sustainability initiatives include:

Sponsorships: Foster’s will only sponsor events that are aimed at adults,
and which present a balanced, mature and responsible approach to
alcohol. We also require sponsorees to sign agreements which oblige
them to serve our products according to recognised Responsible Service of
Alcohol guidelines.

Marketing: Fosters has played a key role in establishing the Alcohol

Beverages Advertising Code (ABAC), a self regulatory scheme which
prescribes an additional set of standards to alcohol advertising. The code
was updated in 2004 to include internet advertising and promotional events
within its scope. Foster’s submits all advertising to independent ABAC
24
adjudicators for pre-vetting against the Code. Any concerns raised by the
adjudicators are swiftly addressed.

At a company level, our Responsible Marketing Guidelines commit us to

responsible product design as well as communication with customers and
consumers.

Labelling: In 2002 Fosters initiated the Enjoy Responsibly logo and

message, which appears on an ever increasing number of Foster’s
products, packaging and brand advertisements. We also support this
message through targeted Enjoy Responsibly advertising and other
responsible drinking initiatives and sponsorships.

5 Steps to the Perfect Beer

How to pour the perfect beer

1. The glass:
Get a proper beer glass; one that's a good full shape and curves in a
little at the top to trap the beer's aromas. Take one of these, make
sure it is scrupulously clean, and chill it in the fridge for an hour or so.

2. The beer:
Beer is never better than when it is delivered from the brewer. It does
not improve with age; in fact, over time it will lose some of the
crispness of it's flavour. So, for the perfect beer, choose a bottle that
hasn't been hanging around the house too long.

25
3. The temperature:
This varies with personal taste and with the style of beer. For most
Australian lager-style beers, something around typical household
refrigerator temperatures (2 to 3 deg C) is fine.

4. Pouring:
Slosh some beer into the bottom of the glass to form a head. Then
gently pour the beer directly onto the foam to break any large bubbles
and pack the head. Leave for a short period to "age" the foam, then
tilt the glass and fill carefully. Straighten the glass as it fills and keep
pouring until the collar or head just froths over the rim of the glass.
Tip: The bitterness of the hops tends to be most concentrated in the
foam of the head, so if you like a good hit of hops to jolt the
tastebuds, give yourself a more generous head and sip the beer
through it.

5. Savouring the beer:

Bring the glass to your lips and inhale gently to take in the aroma of
the beer. This will awaken your tastebuds to the flavours that are to
follow. Then sip, letting the cool beer flow over the tongue so you
savour the full complexity of the flavour. Perfect!

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OBJECTIVES

1. TO ANALYSE THE MAJOR COMPETITORS OF FOSTER’S IN THE

AURANGABAD CITY.
2. TO STUDY & SETUP A NEW MARKETING STRATERGY FOR
FOSTER’S.
3. TO SEGMENT THE MARKET & SELECT A TARGET MARKET.

27
Hypothesis
Existing marketing strategy of the Foster’s is good.

Scope of the Study

 The geographical scope of study limits to Aurangabad city.
 Since this is the competitive study the comparison of tested beers that is
Foster’s beer has made with the other beer brands.
 The promotional scheme studied which was limited to the Maharashtra state.

Methodology
Data is assimilated fact about the market information & is recorded experience that
is useful for decision-making. In the research program the information required is
both qualitative & quantitative.

The information required for the said research was about the outlet base status in
which data about the name &address of outlet, the position of Foster’s in outlet,
etc.

a) Type of research
Exploratory as well as conclusive. Exploratory research refers to that research
which put emphasis on the development of hypothesis rather than on their testing.

b) Period of research
June, July 2006. These two months work has been done in normal season for beer
industry.

c) Sampling units
Dealers/outlets & consumers of Foster’s beer.

d) Type of sampling
Random & Judgment sampling

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e) Sample size
100outlets/dealers
130consumers

f) Data source
The data collected for this project with the help of both primary & secondary data.
The secondary data was collected through internet & from the company but this
secondary data was not sufficient for the purpose of the project, so it was necessary
to go for the primary data, which was collected through market survey.

Information from the dealer’s outlets. Dealers were asked questions & interviewed
for the structured EDS (each dealer survey) format made to get the information by
the company.

Information about market position for the route analysis, route mapping, &
extensive survey was made by visiting Foster’s outlets.

g) Data collection method

Researchers collect data with the help of following method

1. Interview method
2. observation method
3. Schedule method

Interview method: - In this method data is collected by interviewing

the dealers & consumers.

Observation method: - In this method researcher observed the

visibility of the product & presence of glow

signboard, tin board, banners.

Schedule method : - In this method researcher visited the dealers &

29
 consumers asked close ended & open ended

questions to them.

Data collection instrument :-

Primary data was collected through each dealers & consumers survey prepared
with the help of consumer executive. This is an instrument through which the data
related to the actual position of stock is to be measured, with the help of which the
market share is to be calculated.

Market survey :-
Market survey essentially done through field work & by visiting market outlets &
consumers.

Primary work :-
Discussion with territory development manager (TDM), customer executives (CE)
& desk research led to the formulation of topic.

Each Dealer/Bar & Consumer Survey Design:-

The format of survey was done by company officers TDM (territory develop
manager), CE (customer executive)

Pilot study was done in the nearby area of distributors.This market survey for the
project was undertaken by covering about 100 beer bars & 130 consumers in
Aurangabad city to get necessary information. The retailers were asked as to the
amount of stock they have kept, the beer they patronized, their customer
preferences etc. & the consumers were asked as to the choice of beer, frequency of
drinking, etc. On the promotion side it was noted that whether the had a wall
painting Racks for particular beer, in this case it was found that there was either
Foster’s or any other . Bottle coolers like EBC’s (Electric Bottler Cooler), Visi
coolers & OYC (Own Your Cooler) were also checked as to which of the retailers
possessed them.

Since segment of market outlets was visited there was a mixed response from the
retailers, & consumers, some were quite cooperative, some of them were
indifferent but on the whole each one was eager to provide information as to the
queries asked.

30
The stock noted down through the survey about mild beer was based on per case.

Limitation of the study

 Since the segment of market outlets was visited there was a mixed response
from the retailers & consumers, some were quit cooperative, some of them
also provide based information regarding to their stock position.
 The research was conducted in the Aurangabad city, if the research would
have conducted in other city or over the country, the conclusion would have
different.
 Only 100 Beer bars & 130 consumers were surveyed because of limited time
& economical constraints.
 The company’s rules & regulation didn’t allow researcher to go to in depth
regarding some confidential strategies.
 Only two month time is very less to know the each & every aspects of
marketing activities.
 The study is being made in slag season.
 The sample size was also not sufficient for getting accurate results.
 The instrument used is may not be 100 % accurate.
 The scheme of analysis may differ from region to region & season to season.
 The methodology used may not provide accurate picture & may be changed
according to season & region.

31
Research Methodology
There are two main category of research mythology .secondary research use
research that has already been done by some one else. For example, marketers
often find information complete US. census very useful. Howere, in some case,
information specific enough to satisfy a firm’s need is not publicly available. For
example, a firm has to learn its own research to find out whether consumer would
prefer that more vanilla taste to added to its beer brand. Original reacher that a firm
does for itself is known as primary research.

There is no one perfect primary research method. Each has strength & weakness, &
thus appropriate method must be selected based on research needs.

Surveys are useful for getting a great deal of specific information. Surveys are
contain open ended questions (e.g., “in which city & state where you born?
_______”) or close ended, where the respondent is asked to select answers from a
brief list (e.g., “____male /female”). Open ended question have the advantage that
the respondent is not limited to the option listed, & that respondent is not being
influenced by seeing list of response. However, open ended question are often
skipped by respondents, & coding them can be quit challenge. In general, for
surveys to yield meaningful response, sample size of over 100 is usually required
because precision is essential. For example, if a market share of 20% would result
in a loss while thirty percent would be profitable, a confidence interval of 20-35%
is too wide to be useful.

Surveys come in several different forms. Mail surveys are relatively inexpensive,
but response rate are typically quite low-typically from 5-20%. Phone surveys get
somewhat great response rates, but not many questions can be asked because many
answer options have to be repeated & few people are willing to stay on the phone
for more than five minutes. Mail intercepts are convenient way to reach
consumers, but respondents may be reluctant to discuss anything sensitive face-to-
face with an interviewer.

A survey, as any kind of research, is vulnerable to bias. The wording of a question

can influence the outcome a great deal. For example, more people answered no to
the question “Should speeches against democracy be allowed?” than answered yes
too “Should speeches against demo cry be forbidden?” for face to face interviews,
32
interveners bias is a danger, too. Interwar bias occurs when the interviers
influences the way the respondent answers. For example, unconsciously an
intervier that works for the firm manufacturing the product in question may smile a
little when something good is being said about the product & frown a little when
something negative is being said. The respondent may catch on & say something
more positive than his or her real opinion. Finally, a response bias may occur-if
only part of the sample response to a survey, respondents answers may not be
representative of the population.

The case of “The pentagon declares war on rush Limbaugh” illustrated that biased
surveys are often taken at face value. It was reported in the national media, without
question of validity of the research, that only 3.8 % of listeners to the armed forces
network wanted to rush Limbaugh. It turned out, however that this inference was
based on the question “What single thing can we do to improve the programming?”
Only if the respondent wrote in an answer mentioning rush Limbaugh where he or
she counted as wanting to listen to rush.

Experiments are used when the researcher wants to rule out all but one explanation
for a particular observation. Suppose, for example, that we observed sales of our
brand are increased when we send out coupons. However, retailers may also give
us better self space when the coupon is out. Thus, we can’t tell if it was the coupon
or the self placement that caused sales to increase-the two variables are
confounded. In an experiment, we carefully control what varies. In this case, we
inviting one hundred people & asked them to shop in a simulated store. Half of the
respondent are the randomly selected & get a coupon, the others do not. Since the
only difference here was whether the subjects got a coupon or not, we can be more
confident that differences in a branch choice where due to the coupon. Experiments
do, however, have a serious drawback in that the consumer is removed from his or
her natural surrounding. For example, if we pay some consumers to come in to a
lab & watch T.V. “as you normally would”, these consumers, figuring that they are
being paid, may give to the advertisement or brand aware. Focuses groups
involved getting a group of 6 to 12 consumers together to discuss product usage.
Focus groups are especially useful if we do not have specific question to ask yet,
since we don’t know what consumers concerns might be. We start out talking
broadly about the need that a product might surve, & only gradually move towards
the product itself. For example, a firm considering the marketing of sugar free
cookies might star out its group talking about snakes-why people consume them &
the benefits they expect. Gradually, we then move towards concerns people have
about snacks. Eventually, we address sugar contain & concerns that consumers

33
 have about that. Only towards end of the session we do show consumers the actual
products we are considering & ask for the feedback. We postpone our
consideration of actual product towards the end because we want to be sure that we
find out about the consumers needs & desires rather than what he or she thinks
about the specific products we have on the drawing board right now(that product
can be changed, & it can be repositioned). Drawbacks of focused groups include
high cost & the facts that generalization towards the entire population is difficult
for such small sample sizes.

The facts that focus groups involves social interaction also means that participants
may say what they think will make themselves good rather than what they really
believed (the social desirability bias).

Personal interviews in-depth questioning of an individual about his or her interest

in or experiences with a product. The benefit here is that we can get really in to
depth (when the respondent says some thing interesting, we can ask him or her to
elaborate), but this method of research is costly & can be extremely vulnerable to
interviewer bias.

Projective techniques are used when a consumer may feel embarrassed to admit to
certain opinions fillings or preferences. For example, many older executives may
not be comfortable admitting to being intimidated by computers. It has been found
that in such cases, people will tend to respond more openly about some one else.
Thus, we may ask them to explain reasons why a friend has not yet bought a
computer, or to tell a story about a person in a picture who is or is not using a
product. The main problem with this method is that is difficult to analyze
responses.

An observation of consumers is often a powerful tool. Looking at how consumers

select product may yield insights into how they make a decision & what they look
for. For example, some American manufacturers whereas concerns about low sales
of there products in Japan. Observing Japanese consumers, it was found that, many
of these Japanese consumers scrutinized packages looking for a name of a major
manufacturer- the product specific brand that are common in the US where not
impressive to the Japanese who wanted a name of a major firm like Mitsubishi or
Proctor & Gamble. Observation may have determined how much time consumers
spend comparing prices, or whether nutritional labels are being
consulted.Physiological measures are occasionally used to examine consumer
response. For example, advertisers may want to measures a consumer’s level of
arousal during various parts of an advertisement.

34
Consumer Behaviour &Marketing Strategy
The study of consumers helps firms & organizations improve their marketing
strategy by understanding issues such as how the psychology of how consumers
think, feel, reason, & select between different alternatives(e.g. brands, products
etc.);

The psychology of consumer is influenced by his or her environment (e.g. culture,

family, sign, media etc.);

Limitation in consumer knowledge or information processing ability influence

decision &marketing outcome;

How consumer motivation &decision strategy differ between products that differ
in their level of importance or interest that they intail for consumers; &

Hoe the marketers adapt &improve their marketing campaigns &marketing

strategies to more effectively reach the consumers.

Understanding these issues help us to adapt our strategies by taking the consumer
in to consideration. For example, by understanding that a number of different
messages compete for our potential consumers’ attention, we learn that to be
effective, advertisements must usually be repeated extensively. We also learn that
consumers will sometimes be persuaded more by logical arguments, but at other
times will be persuaded more by emotional or symbolic appeals. By understanding
the consumers, we will be able to make a more informed decision as to which
strategy to employ.

One “official” definition of consumer behavior is ‘The study of individuals, group,

or organizations & the process they use to select, secure, use& disposal of
products, services, experiences or ideas to satisfy need & the impacts that these
processes have on the consumers & society.” Although it is not necessary to
memorize this definition, it brings up some useful points:

Behavior occurs either for the individual or in the context of group (e.g. friend’s
influence what kind of clothes a person wears) or organization (people on the job
make decision as to which products the firm should use).

Consumer behavior involves the use & disposal of products as well as the study of
how they are purchased. Product use is often of great interest to the marketer,
because this may influence how a product is best positioned or how we can
encourage increased consumption. Since many environmental problem’s results of
product disposal(e.g. motor oil being send into sewage system to save the recycling
35
fee, or piling up at landfills)this is also an area of interest. Consumer behavior
involves services & ideas as well as tangible products.

The impact of consumer behavior on society is also relevance. For example,

aggressive marketing of high fat foods, or aggressive marketing of easy credit may
have serious repercussions for the national health & economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategy- i.e., for marketing better marketing
campaigns. For example, by understanding that consumers are more receptive to
food advertising when they are hungry, we learn to schedule snack advertisements
late in the afternoon. By understanding that new products are usually initially
adopted by a few consumers & only spread later, & they only gradually, to the rest
of the population, we learn that (1) Companies that introduce new products must
be well financed so that they can stay afloat until their products becomes
commercial success & (2) It is important to please initial consumers,since they will
in turn influence many subsequent consumers’ brand choices.

A second application is public policy. In the 1980s, acutance, a near miracle cure
for acne, was introduced. Unfortunately, accutant resulted in severbirht defect if
taken by pregnant women. Although physician were introduce to warn their female
patients of this, a number still become pregnant while taking the drug. To get
consumers attention, the Federal Drug Administration (FDA) took the step of
requiring that very graphic pictures of deformed babies be shown on the medicine
containers.

Social marketing involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for
the Center of Disease Control trying to reduce the incidence of transmission of
diseases through illegal drug use. The best solution, obviously, would be if we
could get illegal drug users to stop. This, however, was deemed to be infeasible. It
was also determined that the practice of sharing the needles was too ingrained in
the dug culture to be stopped. As a result, using knowledge of consumer attitudes,
Dr. Fishbein created a campaign that encourages the cleaning of needles in bleach
before sharing them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behaviour make us better consumers.

Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of
laundry detergent, you should pay lass per ounce than if you bought two 32 ounce
bottles. In practice, howere, you often pay a size premium by buying the larger
quantity. In other words, in this case, knowing this fact will sensitize you to the
need to check the unit cost labels to determine if you are really getting bargain.
36
There are several units in the market that can be analyzed. Our main thrust in this
course is the consumers. However, we will also need to analyze our own firm’s
strengths & weakness& those of competing Firms. Suppose, for example, that we
make a product aimed at older consumers, a growing segment. A competing firm
that targets babies, a shrinking market, is likely to consider repositioning toward
our market. To assess a competing firm’s potential threat, we need to examine its
asses (e.g., technology, patent, market knowledge, awareness of its brands) against
pressures it faces from the market. Finally, we need to assess conditions (the
marketing environment). For example, although we may have developed a product
that offers great appeal for consumers, a recession may cut demand dramatically.

Segmentation
Although the text makes reference to segmentation, this issue is not discussed
explicitly in much detail. However, segmentation is important in consumer
analysis because understanding the consumer will allow us to segment the market
more meaningfully.

Segmentation basically involves dividing consumers into groups such that

members of a group (1) are as similar as possible to members of that same group
but (2) differ as much as possible from members order segments. This unable us
then to “treat” each segment differently –e.g., by; providing different products or
offering different prices (e.g., some consumers will take the cheapest product
available, while other will pay for desired features).

Distributing the product where they are likely to bring by the targeted segment.

In order for the segment structure to be useful;

Each segment must have an identity –i.e., it must contain members that can be
describing in some way (e.g., price sensitivity) that behave differently from
another segment.

Each segment must engage in systematic behavior (e.g., a price sensitive segment
should consistently prefer the low price item rather than randomly switching
between high & low priced brands).

Each segment must offer marketing mix efficiency potential – i.e., it must be
profitable to serve. For example, a large segment may be profitable even though
the competition it attracts tends to keep prices down. A smaller segment may be
profitable if, e.g., it is price insensitive or can be targeted efficiently (e.g., if its
37
members consistently subscribe to one magazine where all the company’s
advertising can be put). Some segments are not cost effective. For example, a small
group of consumers would love to have a no sport news channels (similar to CNN),
but we are just too small a group to profitable.

There are three levels of segmentation. Levels here refer to the tradeoff between
the difficulty of implementing a segmentation scheme & the benefit that result.

The first level of segmentation involves personal characteristics –e.g.,

demographics. This is a fairly easy method of segmentation to employ because (1)
we have a good idea of who is in each segment& (2) we can easily target these
segments. For example, if we want to reach males ages fifteen to fifty-five, we can
find out which TV shows they watch from firms such as Nielsen(similar services
exist for news paper & magazines).the trouble with this method of segmentation,
however, is that there is often not a good correlation between personal
characteristics of consumers & what they want to buy. Perhaps males may want
more flavor, & he willing to settle for more calories, in a beer than women do, but
there is a great deal of within group variation. Interestingly, it has found that
people who live in the same area, as an operationalized by there codes, tend to
share a many consumption relevant characteristics. Firms such as Clarita’s will
sale profiles of zip codes based communities that can be used in aiming massage at
particularly receptive residents. For example the US army aggressively targets
communities dubbed “Guns & Pickups.”

Psychographics includes a bit more information about the consumers than his or
her more descriptively characteristics. For example, two men could both be
plumbers, aged 45, married with two children, & have annual income of $ 45000.
However, one could be couch potato who came home & eat fast food while
watching television. The other could be health conscious who spend his time
exercising. Several firms have tried to come up with psychographic profile of
consumers. One is the VALS project from the Stanford Research Institute (STI).
Since most of these programs are proprietary, there is not a lot of published
research on their usefulness. However, some firms are paying a great deal of
money for these firms consulting. For example, Merrill Lynch used VALS to
change its advertising strategy. The firm had seen a disappointing response to its
advertising campaign featuring a herd bulls used to symbolize the bull market. A
lot of consumers responded, but not the wealthier ones the firm had hoped for. By
making a very simple change – substituting a lone bull for the herd – based on
advice from SRI, the wealthier groups, which want to “stand apart” from the
crowd, was attracted.

The second level is befit desired – that is, segmenting on what someone wants
rather than who he or she is. Implementing segmentation on benefit desired is more
38
difficult since we have to research for each product category. The benefit,
however, is that we can now make product that matches more closely a particular
segment’s specific desires, & we can promote, price, & distribute it according the
desires of the segments. This method, then, lends itself extremely well to strong
product positioning – we make a product that offers specific benefits, & we
aggressively promote this fact to interested consumers. A drawback, however, is
some efficiency is lost in marketing communication. While we can look up which
television programs male’s ages twenty to thirty watch, we do not have this
information for the segment of consumers that prefers scented unscented hand
soup.

The third level is segmentation based on behavior. Behavior here refers to a

person’s response (or lack of response) to a given treatment. For example, some
consumers will switch from their preferred brand to another one that happens to be
on sale (the “switchers”) while other will stay with the preferred brand (the
“loyal”). The trick, then, is to get as many switchers as possible to switch to your
brand (which will take some incentive, such as a cent off coupon) while not going
this incentive to the brand loyal (who would have bought your brand even without
the discount). In practice, segmentation on behavior can be very difficult.

For example, supermarkets spend a great deal of money to establish the “lazed”
ones that end up paying full price. Despite this difficulty, the rewards are often
great, because we can tailor the kind of deal we give a consumer to the minimum
concession needed to get that consumer to buy our product.

Direct marketing offers exceptional opportunities for segmentation because

marketers can buy lists of consumer names, addresses, & phone numbers that
indicate their specific interests. For example, if we want to target auto enthusiasts,
we can buy list of subscribers to auto magazines & people who have bought auto
supplies through the mail. We can also buy list of people who have particular auto
makes registered.

No one list will contain the entire consumer we want, & in recent years technology
has make it possible, through “merge-purge” processes, to combine list. For
example, to reach above mentioned auto-enthusiasts, we buy list of subscribers to
several different car magazines, list of consumers from the hot Wheels & Wiring
catalog, & registration of Porsche automobiles in several states. We then combine
these lists (the merge part). However, there will obviously be some overlap
between the different lists – some people subscribe to more than one magazine. for
example, the purge process, in turn, identifies & takes out as many duplicates as
possible. This not as simple task as it may sound up front. For example, the address
“123 Main Street, Apartment 45” can be written several ways, e.g., 123 Main St.,

39
#123, or 123-45 Main Street. Similarly, John J. Jones could also be written as J.J.
Jones, or it may be misspelled Jon J. Jones. Software thus “standardizes” addresses
(e.g., all street addresses would be converted in to the format “123 Main St.#45” &
even uses phonetic analysis to identify a likely alternative spelling of the same
name).

Response rate for “good” lists – lists that represent a logical reason why consumer
would be interesting in a product—are typically quite low, hovering around 2-3%.
Similarly picking a consumer out of the phone book would yield even lower
responses—much less than one percent. Keep in mind that a relevant comparison
here is to conventional advertising. The response rate to an ad placed in the news
paper or a television is usually well below one percent (frequently more like one
renth of one percent). More than one percent of people who see an ad for foster
will buy the product, the most of these people would have bought foster anyway,
so the margin response is low.

40
Culture
Culture is the part of external influence that impacts the consumers. That is, culture
represents influences that are imposed on the consumer by other individuals.

The definition of culture offered in the text is “That complex whole which includes
knowledge, belief, art, moral, custom, & any other capabilities & habits acquired
by man person as a member of society.” From this definition, we make the
following observations;

Culture, as a “complex whole,” is a system of interdependent components.

Knowledge & beliefs are important parts. In the US, we know & believe that a
person who is skilled & work hard will get ahead. In other countries, it may be
beliefs that differences in the outcome results more from luck. “Chunking,” the
name China in Chinese, literally means “The belief among ancient Chinese that
they were in the centre of the universe greatly influenced their thinking.

Other issues are relevant. Art, for example, may be reflected in the rather arbitrary
practice of wearing ties in some countries & wearing turbans in others. Morality
may be exhibited in the vies in the united state that one should not be naked in the
public. In Japan, on the other hand, groups of man & women may take steam bath
together without perceived as improper. On the other extreme, women in some
Arab countries are not allowed to reveal their faces. Noticed, by the way, that what
at least some countries view as moral may in fact be highly immoral by the
standards of another country. For example, the law that once banned interracial
marriages in South Africa was named the “Immorality Act,” even though in most
civilized countries this law, & any degree of explicit racial prejudice, would itself
be considered highly immoral.

Culture has several important characteristics; (1) Culture is comprehensive. This

means that all part must fit together in some logical fashion. For example, bowing
& a strong desire to avoid the loss of face are unified in there manifestation of the
importance of respects.(2) Culture is learned rather than being something we are
born with. We will consider the mechanics of learning latter in the course. (3)
Culture is manifested with in foundries of acceptable behavior. For example, in
American society, one can not show up to class naked, but wearing anything from
a suit & tie to shorts & a T-shirt would usually be acceptable. Failure to behave
within the prescribed norms may lead to sanctions, ranging from being hauled off
by the police for indecent exposure to being laughed at by others for wearing a suit
at the beach. (4)Conscious awareness of cultural standards is limited. One
American spy was intercepted by the German during World War II simply because
off the way he held his knife & fork while eating. (5) Culture fall somevere on a
41
continuum between static & dynamic depending on how quickly they accept
change. For example, American culture has changed a great deal since the 1950’s,
while the culture of Saudi Arabia has changed much less. It should be noted that
there is a tendency of outsiders to a culture to overstate the similarity of members
of that cultures to each other. In the United States, we are well aware that there is a
great deal of heterogeneity within our cultures; however, we often under estimate
the diversity within other cultures. For examples, in Latin America, there are great
differences between people who live in coastal & mountainous areas; there are also
great differences between social classes.

Cultural rule can be categorized into three types. Formal rules carry relatively
explicit standards as to how one would behave, & violations often carry sever
sanction. for example, in many countries, two forms of the second pronoun (you)
exists, with different levels of difference associated with each (e.g., tu & usted in
Spanish & tu & vous in Spanish – German even has three levels !) In Japan, senior
executives will enter & leave a meeting room before subordinates in a very
deliberate manner. In formal rules, on the other hand, are less explicit & may not
carry sanctions for violations. For example, in the US, most people would consider
eating dinner at 10:00 p.m. weird, while this is perfectly normal in parts of latine
America & Southern Europe. Finally, technical rules involved implicit standards as
to what constitutes a good product. For example, in India, a movie must have at
least seven songs to be successfully; in the US, preempting the sound track for the
amount of time would not be desirable.

Language is an important element of culture. It should realize that regional

difference may be subtle. For example, one word may mean one thing in one latine
American country, but something off colour in another. It should also be kept in
mind that much information is carried in non-verbal communication. In some
cultures we nod to signify “yes” & shake our hand to signify “no” in other cultures,
the practice is reversed.

Different perspectives exist in different cultures on several issues; e.g.,

monochromic culture tend to value precise scheduling & doing one thing at a time;
in polychromic cultures, in contrast, promptness is valued less,& multiple tasks
may be perform simultaneously (see text for more detail).

Space is perceived differently. Americans will feel crowded were people from
more densely populated countries will be comfortable. Symbols differ in mining.
For example, while white symbols purity in the US , it is a symbol of death in
china. Colors that are considered masculine & feminine also differ by culture.
Americans have a lots of quite shallow friends toward whom little obligation is
felt; people in Europe & some Asian cultures have fewer, but more significant
friends. For example, one P.H.D. student from India with limited income, felt
42
obligated to try buying an air line ticket for a friend to go back to India when a
relative had died.

In the US & much more Europe, agreements are typically rather precise &
contractual in nature; in Asia, there is a greater tendency to settle issues as they
come up. As a result, building a relationship of trust is more important in Asia,
since you must able to count on your partner being reasonable.

In terms of etiquette, some cultures have more rigid procedures than others. In
some countries, for example, there are explicit standards as to how a gift should be
presented. In some cultures, gift should be presented to avoid embarrassing the
recipient; in others , the gift should be make publicly to insure that no perception
secret bribery could be made.

The United States has undergone some changes in its predominant culture over the
last several decades. Again, however, it should be kept in mind that there are great
variations within the culture. For example, on the average, Americans have
becomes less materialistic & have sought more leisure; on the other hand, the
percentage of people working extremely long hours has also increased. The text
discusses changes in value in more detail.

Significant changes have occurred in gender roles in American society. One of the
reasons for this is that more women work outside the home than before. However,
women still perform a disproportionate amount of housework, & men who
participate in this activity tend to do so reluctantly. In general, commercials tend to
lag somewhat reality – for example, few men are seen doing housework, & few
women are seen as buyers & decision makers on automobile purchases.

Subculture refers to culture within a culture. For example, African, Americans are,
as indicated in the group name, Americans; however, a special influence of the
African, Americans communities is often also present. For example, although this
does not apply to everyone, African, Americans tend to work ship in churches that
have predominantly African, American membership, & church is often a
significant part of family life.

Different perspectives on the diversity in the US culture exists the “melting pot”
metaphor suggest that immigrants gradually assimilated after they arrived. There
for, if the long run, there will be few difference between ethnic groups & instead,
one main stream culture that in corporate elements from each will results .the
“salad bowl” metaphor, in contrast, suggest that although ethnic groups will
interact as a whole (through the whole mix salad) & contain some element of the
whole (through the dressing), each group will maintain its own significant traits
(each vegetable is different from other). The “melting pot” view suggest that one
43
should run integrated promotions aimed at all groups; “the salad bowl” approach
suggest that each group should be approached separately. Sub culture is often
categorized on the basis of demographics. Thus, for example, we have the
“teenage” subculture & the “Cuban-American” subculture. While part of the over
all culture, these groups often have distinguishing characteristics. An important
consequence is that person who is the part of two subculture may experience some
conflict. For example, teenage Native American experiences a conflict between the
mainstream teenage culture & traditional Indian way.

Values are often greatly associated with age groups because people within age-
group have shared experiences. For example, it is belived that people old enough to
have experienced an American Depression are more frugal because that
experience.

Regional influence both in the united state & others areas, is significant. Many
food manufactures offer different product variations for different regions. Joel
Garreau, in his book the Nine Nations of America, proposed nine distinct regional
subcultures that cut across at right line. Although significant regional differences
undoubtedly exist, research has failed to support Garreau specified
characterizations

Demographic & social stratification

Demographics are clearly tied to sub culture & segmentation. Here, however, we
shift our focus from analyzing specific subcultures to trying to understand the
implications for an entire population of its makeup.

44
Promotion Activity of Foster’s

45
1) Foster’s & Formula 1 Race

46
47
Fosters has long & proud association with Grand Prix Formula 1 racing around the
world. Foster’s is one of the world’s fastest-growing international premium beer
brands & Grand Prix Formula 1 racing has great synergy with the global marketing
of Foster’s.
fosters established its involvement with the Formula 1 Grand Prix back in 1986
with its sponsorship of the Australian Grand Prix in Adelaide. At home in
Australia or abroad, Fosters has been actively promoting the brands association
with Grand Prix ever since.
In 2000 Foster’s look up an exciting long term agreement to sponsor Grand Prix
worldwide.
Track side, Foster’s is now the most recognized brand association with formula 1
Grand Prix globally. Foster’s involvement with Grand Prix extended to premium
trackside signage, pouring rights, a Paddock Club sponsorship at the majority of
races & naming rights for the high profile Australian, San Marino & British Grand
Prix. The Australian Grand Prix is, for Foster’s, the jewel in the crown.

48
2) Yard Glass

Yard Glass is one of the promotion activities of Foster’s. In it they invite some
respected guest, for them they offer some beer in the Yard Glass.
Fosters also organizing different promotional activities like beer & Biryani festival,
beer & Barbeque, Quality presentation, Meal Combo, etc.
In the Hotel Rama International (***), fosters had organized the Pizza & Berger
Festival. In this festival, those who demanded for the Pizza or Berger they will get
a Foster’s Pint beer. The Pizza Festival & Berger Festival was conducted from 15th
April to 30th April 2006 & 1st May to 15th May 2006 respectively. During that
period the price of Pizza & Berger was Rs.175 & Rs.178 respectively.
In the last month from 8th June to 15th June, the Foster’s was conducted a Beer &
Biryani festival at Agenda Ambassador (***). In that period if any consumer
demanded a biryani then the4y get a Foster’s Pint Beer free. During that period the
price of biryani is Rs. 180 per dish.

49
 PRESENTATION OF THE DATA ANALYSIS

The questions asked in the questionnaires are analyzed as:

1) The respondent was asked about which mild Beer Brand
consumer preferred?

Brand mix No. of respondent

Foster’s 33
Amberrow 12
Kingfisher 32
Other 23

______________

50
 2) Which pack size is mostly preferable by consumers?

Pack Size Preferences

330 ml. 28 %
650 ml. 72 %

Preferences

330 ml.
650 ml.

51
 3) Which purchasing variables are considered while storing beer?

Variables Ranks (%)

Customer Demand 20%
Brand Name 11%
Margin /scheme 27 %
Distribution System 07%
Quality 05%
Credit Period 22%
Other 08%

Ranks (%)
Customer
Demand
Brand Name

Margin /scheme

Distribution
System
Quality

Credit Period

Other

52
 4) Which pack size of Foster’s is more preferred by the consumer?

Foster’s Brand 330 ml. 650 ml.

Foster’s Beer 42% 58%
Amberrow Beer 20% 80%

650 ml.

Amberrow Beer
Foster’s Beer

330 ml.

0% 20% 40% 60% 80% 100%

53
 5) Mostly which age group of people preferred the Foster’s Beer?

Age Group Percentage

18-20 12%
21-25 18%
26-30 20%
31-35 22%
36-40 17%
41-50 06%
51-60 05%

Percentage

25%

20%

15%
Percentage
10%

5%

0%
18- 21- 26- 31- 36- 41- 51-
20 25 30 35 40 50 60

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 6) Which social class of people mostly prefers Foster’s?
social class Percentage (%)
High 62%
Medium 31%
Low 07%

Percentage (%)

70%
60%
50%
40%
Percentage (%)
30%
20%
10%
0%
High Medium Low

55
 7) What do you feel about the prices of Foster’s Beer?
Prices Percentage (%)
High 53%
Medium 43%
Low 04%

Percentage (%)

High
Medium
Low

56
 8) Are you satisfied with the services offered by the Foster’s?
Satisfaction Level Percentage (%)

Highly Satisfied 23.2%

Satisfied 41%
Nither Satisfied Nor 30.3%
Dissatisfied
Dissatisfied 05%
Highly Dissatisfied 01.5%

45.00%
40.00% Highly Satisfied
35.00%
Satisfied
30.00%
25.00% Nither Satisfied
20.00% Nor Dissatisfied

15.00% Dissatisfied

10.00%
Highly Dissatisfied
5.00%
0.00%
Percentage (%)

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CONCLUSION
According the project report finding

 In the mild beer, the main competitor of Foster’s Beer, is King Fisher Beer,
and other brand. In this market segment market leaders are Foster’s Beer and
King Fisher Beer.
 The fact is that 33% market share capture by Foster’s Beer.
1. Foster’s Beer 33%
2. Amberrow Beer 12%
3. King Fisher Beer 32%
4. Other Beers 23%
 In the mild beer, quart (650 ml.) is mostly preferred by the
consumers.
 Margin, the purchasing variable which was considered by the beer bar owner
while storing the beer brand.

 The sale of quart is more than pint (i.e. sale of 650 ml. is more than 330 ml.)
 Mostly the top high people & students prefer Fosters, Because of less
content of alcohol (Mild Beer) & its high price.
 Foster’s is mostly preferred by the 31-35 age groups.
 Mostly high class of people preferred Foster’s.
 The prices of Foster’s are high as compairs to other beer brand.
 The beer bar owner/retailers are satisfied by the services offered by the
Foster’s & very few of them are dissatisfied.

58
Suggestions
Foster’s India Private Limited should introduce some change in its marketing
function & advertising to make it rational.
The following factors found to be worthy of consideration,
1) A complete register should be provided by the company to every
distributor/ beer bar in every route in which the retailers & customer
can write there complaints. Complaints registered should be checked
out by the consumer executive & depot in charge at a time to time.
2) To improve the sale, the company should offers the better scheme to
the retailers/beer bars time to time, particularly on the bulk purchasing
like, discount or umbrella etc.
3) It is not possible to reach at all the outlets within a day for a salesman.
Because in some routs the number of outlets are too much. So it is
required to sort the routs & extra vehicle provide in that route.
4) The sell of beer can be improved by advertising it heavily & making
them easily available around or nearby the standard areas & colleges as
students & serviceman & businessmen are constitutes a major part of
beer consumers.
5) Company should advertise through print media i.e. by painting the
walls, and hoarding in major markets so as to create customer demand.
6) As most of the retailers promote a particular brand due to customer
demand, company should provide coupons, freebies such as caps, T-
shirts, pocket size diaries etc to the consumers.
7) Company should provide some properties to the retailers like banners,
paper weight, pen stand, glass etc. so that the retailer/ the beer bar
owner use these properties in his shop to improve his sale.
8) The company should offer some credit policy to the retailers.

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Annexure

1) The target market : -

The well-to-do, fashion & status loving upper middle class & high
class of people in the Aurangabad city.
That is the targeted area for the Foster’s in the Aurangabad city is those
who are lover of fashion, & status conscious.

2) Positioning: -
Foster’s is positioned as the high fashion, high status & lifestyle potable cool
water with some addition of alcohol, which is very good for the health. One
can enjoy it like a cold drink in summers.

3) Marketing Mix:-
 Product :-
Premium quality beer, with bitter flavors & sparkling test,
which can be made by the malt i.e. pure vegitable. Dark amber colour,
from which the ultraviolet rays can not affect test of the beer. Attractive
packaging is one of the one of the outstanding feature of Foster’s.

 Price:-
Premium pricing in tune with the high quality
offering. Company should offer some discount or credit to the major or
big outlets of the Foster’s while purchasing, in the Aurangabad city, like,
Ding Dong Beer Bar.

 Place:-
A vast chain of wholesalers like, Mohavir Traders,
Aurangabad Wines etc., retailers/wine shops like Pyasa wine shop,
Golden Palace etc. & hugh number of beer bars & permit rooms, which
contribute to the high sale of the Foster’s Beer in the Aurangabad city.

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 Promotion:-
Company should provide some properties to the retailers like banners,
paper weight, pen stand, glass pen etc. as a promotion tool to the retailer/
the beer bar owner. As most of the retailers promote a particular brand
due to customer demand, so that company should provide some coupons,
freebies such as caps, T-shirts, pocket size diaries etc. to the consumers
while purchasing a Foster’s Beer. Company should think ahead to paint
walls, for the advertisement. For the promotion the company also should
conduct some competition.

61
Bibliography

1. Introduction of Marketing by William J. Stanton

2. Principle of Marketing by P. Kotler & L.M.Prasad

3. Marketing Management Analysis Planning & Control

by P. Kotler

4. Consumer Behaviour by Mewert J.C.

5. www.fostersgroup.com

6. www.google.com

62
THE STUDY OF MARKETING STRATERGY
NAME OF RESPONDANT: - ___________________________________________

CONTACT NO. _________________________________ DATE / / 2006

FORM NO.
AGE : - ___________________________________________
OCCUPATION: - _______________________________________
ADDRESS: -____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________

1) DO YOU DRINK BEAR? Y/S

2) WHICH BEAR YOUR DRING?

a) STRONG b) MILD

3) FREQUENCY OF DRINKING BEAR.

a) WEAKLY
b) HALF WEAKLY
c) MONTHLY
d) OCCASIONLY

4) ON WHICH OCCASION YOU MOSTLY PREFERES BEAR?

___________________________________________
___________________________________________

5) WHO IS INFLUANSING THE BEAR BRAND SELECTION DESIGION?

a) FRIENDS
b) FAMILY MEMBERS
c) ANY OTHER

6) DID YOU TEST FOSTERS BEAR? Y/S

7) WHICH BEAR OF FOSTERS?

a) FOSTERS b) AMBARRO

8) ANY SUJJESTION FOR FOSTERS

63
THE STUDY OF MARKETING STRATERGY
SHOP NAME: - ______________________________________________________
NAME OF RESPONDANT: - ___________________________________________
CONTACT NO. _________________________________ DATE / / 2006
FORM NO.
ADDRESS: -____________________________________________
____________________________________________
____________________________________________
____________________________________________

1) DO YOU STOCK BEARS? Y/S

1.1) AVERAGE SALE OF ALL BEARS
(IN UNIT):-_______________ (IN RUPEES):-_________________

2) HOW MANY MILD BEARS BRANDS YOU ARE STORE & WHICH ARE THEY?
a)FOSTERS
b)AMBARRO
c) KINGFISHER
d) KHAJURAO
e) OTHERS

3) WHICH BRANDS ARE MORE PREFERABLE BY CONSUMERS?

BRAND NAME PREFERANCE / RANKING
a)FOSTERS
b)AMBARRO
c) KINGFISHER
d) KHAJURAO
e) OTHERS

4) WHICH PACK SIZE IS MOSTLY PREFERABLE BY CONSUMERS?

330 ml
650 ml
Other

5) WHICH PURCHESING VARIABLES ARE CONSIDERED WHILE STORING BEAR

BRANDS?
VARIABLES RANKING
a) CUSTOMER DEMAND
b)BRAND
c) MARGIN
d) DISTRIBUTION SYSTEM
e) QUALITY
f) CREDIT PERIOD
g) OTHER

64
6) WHICH BRAND / COMPANY ARE OFFERING VERY GOOD SEVICES?
a) ______________________d)_________________________
b) _______________________e) ________________________
c) _______________________f) _________________________

7) WHICH PACK SIZE OF FOSTERS & AMBARRO ARE MORE PREFERED BY

CONSUMERS?
FOSTERS BRAND 630 ml 330 ml
a) FOSTERS BEAR
b) AMBARRO

8) WHAT IS THE AVERAGE SALE OF FOSTERS AS COMPAIRS TO OTHERS? (IN

UNIT)
a) FOSTERS BEAR
b) AMBARRO BEAR

9) MOSTLY WHICH AGE GROUP OF CUSTOMERS ARE DRINKING FOSTER BRAND

BEAR? _____________________________________________________

10) WHICH CLASS OF PEOPLE ARE MOSTLY PREFERE FOSTERS?

a)HIGH b) MEDIUM c) LOW

11) WHAT DO YOU FEEL ABOUT THE PRICES OF FOSTERS?

a)HIGH b) MEDIUM c) LOW

12) WHICH TYPE OF PROMOTION ACTIVE IS MORE EFFECTIVE FROM THE

FOLLOWING?
a)BEAR & BIRYANI FESTIVAL b) FORMULA-ONE-RACE
d) BEAR & BARBEQUE d) QUALITY PRESENTATION
f) MEAL COMBO f) YARD GLASS

13) ARE YOU SATIESFIED ABOUT THE SERVICES OFFERED BY FOSTERS?

a) HIGHLY SATIESFIED b) SATIESFIED
c) NITHER SATIESFIED NOR DISATIESFIED
d)DISATIESFIED f) HIUGHLY DISATIESFIED

14) ANY SUJJESTION FOR FOSTERS?

a)______________________________________________________
b) ______________________________________________________

65