Professional Documents
Culture Documents
Group Number - 3
Anmol Kakkar 008
➢It shows the problems faced by the beer industry during pandemic period.
● In Uttar Pradesh, the excise duty on beer was reduced from 280% to 200% for FY22.
● The Karnataka government decided not to increase duty on liquor for this fiscal.
● A few state governments such as Jharkhand, Odisha, and West Bengal allowed online delivery of
alcohol with the help of food aggregators such as Swiggy and Zomato.
● After talking with the government they were able to open there shops in the second
lockdown.
● Companies after talking with the state governments of Jharkhand, Odisha, and West Bengal
● Brewing industry is experiencing problems such as lack of labour, more expensive transport and
shortage in supply of raw materials.
● The production of barley has dropped in the US, Canada and EU region, whereas, at the same
time, the prices of aluminium, the vital raw material for beer can packing has skyrocketed.
● A Covid-19 cess was applied by the state governments, which made the product even more
expensive.
● Depressed people want to escape from reality, that's why beer demand expended in pandemic.
Micro Analysis
● Customer
● preferring to have beer at home
● Shift to Premium beers
● Preferring cans instead of glass bottles
● Competitor
● Launch of multi packs of beer
● Launch of premium beers
● Intermediaries
Decline in sale of on trade channels
Increase in sale of off trade channels
Introduction of new intermediary
Retailers not happy with introduction of new intermediary
SWOT Analysis of UB Group
STRENGTHS
● Ever increasing market base : Growing Indian population serves as a ready customer base for
the UB group. Such population growth puts the UB group in a comfortable spot.
● Favourable Demographics : Indian demographics are bound to benefit the company in long
term with large number of people under drinkable age.
Adequate supply of raw materials: Main raw materials for beer is water and a
source of starch. In India, most of breweries use barley as a source of starch
in beer production. UP, rajasthan, punjab, haryana, HP are the major states
cultivating barley.
Recession proof nature : One of the blessings for the beer industry in
India is providentially it’s recession proof nature. Beer industry is inelastic
in nature which means it doesn’t get affected by variation in prices or
consumer’s income.
Weakness
● Highly taxed & regulated : The biggest challenge before the UB group is
the multiplicity of taxes and the lack of uniformity in the regulations of
different states. Alcohol industry is not an easy market to make buck in.
● Ban on direct advertising : Advertising of liquor products is banned in
India. Liquor can promote brands only at a point of sale. Companies use
surrogate advertising to promote their products.
OPPORTUNITIES
❖ Low per capita consumption : India has one of the lowest levels of beer
consumption per capita in Asia, a BMI research report said it holds a
favourable outlook for the market in the country, on the back of changing
cultural attitudes and more young affluent population.
❖ Rising disposable income & discretionary spend : Beer sales in India
are expected to see an annual growth of 7.5% over the next 5 years
despite regulatory hurdles, as rising disposable income in the hands of
middle class will lead to higher spending.
❖ Urbanization : It is estimated that the urban population in India will rise
to 38% of the total population by 2025. This will provide enormous
opportunities for the players to tap.
THREATS
❖ Religious constraints : The UB group faces moral restrictions due to
religious influence . It is still considered to be forbidden, taboo drink in
some parts of society, detrimental for Indian culture. Drinking alcohol is
culturally not accepted in most parts of India.
❖ Competition : Complementary to changing industry dynamics, beer
segment has seen a high spurt in the players operating in the market
which has worsened the competition for existing players.
Consumer Behaviour
Comparative :- Strong, Mild, Craft
Reference group
Daily routine
Economic
High income (Premium)
Low income (General)
Targeting
Segment Marketing & Differentiated Product
1. Industry View: All the alcoholic beverages are the competitors of beer.
Alcohol 5% Alcohol 5%