In collaboration

with

TEAM NAME HELL Demons CAMPUS IIM Lucknow TEAM MEMBERS

 THE BIG IDEA
Set up MICROBREWERIES. Presently it accounts for 1% of total beer
sales and will grow at 20% annually. Enter the market inorganically
through acquisitions.
OPPORTUNITY FOR GROWTH
CRAFTING THE IDEA
Target population ~208 million urban residents
STAGE 1: Expand in tier-1 cities. Currently brew pubs present in Mumbai,
Pune, Bangalore and Delhi NCR. Large scope in Hyderabad, Kolkata and
Target young population | Sourcing fruit concentrates to Chandigarh.
LEVARAGING brew different variants | Favorable demographics | Locate brew pubs near hotel and business parks instead of malls (become
OPPORTUNITY Rising disposable income | Urbanization and growing obsolete due to e-commerce)to attract larger crowd.
acceptability of beer among other alcoholic beverages STAGE 2: Packing and distribution of Craft beer in tier-2 and tier-3 cities
Ambience in the pub to refresh the beer mood | Find a food
that compliments beer to start a trend | Brewers nights to
COMMUNICATIO
begin a community of craft beer lovers | Annual beer festival
N THEMES
on the lines of Sula Fest | POS Merchandise for brand
awareness
INVESTMENTS
Threat of Substitutes: Medium | Bargaining Power of
EXTERNAL Suppliers: High | Bargaining power of Buyers: Medium | Total Cost of 1 Brewery (Capital Expenditure) : 4 Cr to 16 Cr
THREATS Competitive Rivalry: High | Threat of New Entrants: Cost of land (Tier 1 city) = 3 to 15 Cr
Medium License cost = 2.5 lakh+ 17.5 per liter
Currently 80 brew pubs functioning (in 2016 45 present Machinery Setup = 15 to 50 lakh
GROWTH BETS pan India) | Average price of craft beer comes to INR 200
– BRANDS/ for a 500ml glass post analysing the north, west and
PRICING southern market. Regional preferences for types of beer
leading to wide varieties.
 SUPPORTING DOCUMENTS

Motivators to visit a brewery

Preference for local beer 25
To taste new beer 47
Socializing 26
To increase knowledge about beer 15
To get drunk 5
To relax 19
Ambience 36
Recommended 18
To buy beer irrespective of the type 6
Not visited a micro brewery 32
RESULTS OF A SURVEY CONDUCTED (111 RESPONSES)
Excel containing responses to the survey

NORTH INDIA MICROBREWERIES MARKET

Consumption of craft beers in Gurgaon is ~5000 to 6000 liters per establishment per month People in Gurgaon enjoy wheat beers followed by lagers.
Prices of craft beers average $3 (INR 200) for a 500 ml glass to $23 (INR 1,500) for a 1,500 ml pitcher of a specialty beer.
WEST INDIA MICROBREWERIES MARKET
Consumption of craft beers in Pune is ~3000 to 7000 liters per establishment per month. People enjoy lighter and “refreshing” beers.
Prices of craft beers vary from $3 (INR 195) to $4.60 (INR 300) for a 330 ml glass and can increase up to $10.15 (INR 660) for a 1,500 ml pitcher.
SOUTH INDIA MICROBREWERIES MARKET
Consumption of craft beers in Bangalore is ~ 9,000 to 15,000 liters a
month per establishment
Prices range from $2.82 (INR 183) to $4.62 (INR 300) for 330 ml draught.
IPAs, stouts, blonde ales, Irish ales and golden ales are the most popular varieties along with seasonal varieties of mango, peach, vanilla, chilly beer and the like.

Threat of Substitute : Bargaining power of Bargaining power of Competitive Rivalry : High Threat of New Entrants :
Medium Suppliers : High Buyers : Medium Number of brewpubs and craft beers
Medium
Many beer options available. Craft Less options and high switching Low switching cost. Price sensitivity increasing rapidly. High Variety and high Capex requirement medium. Time to setup
beer : High quality and taste with costs. Small number of local medium. Order Size is small. Number quality. Switching cost for customers is a brewery 6 months to 1 year. Good
various flavors. Cost of switching suppliers of customers in for craft beer are low. Further, customer loyalty is low. supplier and distribution network required.
is low. medium. It’s differentiated product. Strict govt. policies. Specialist knowledge
required.