BEER INDUSTRY INDIA

Going To The Market

United Breweries Limited( UB Group)

Kingfisher Beer

Submitted By:

Abhishek Gupta

Allen Thomas K

Pooja Ganatra

Shubham Dubey

Sweta Kumari

Contents

1. EXECUTIVE SUMMARY...............................................................................................................3

2. TRENDS......................................................................................................................................4

3. COMPETITIVE LANDSCAPE.........................................................................................................4

4. PROSPECTS................................................................................................................................4

5. SWOT ANALYSIS.........................................................................................................................4

6. PESTEL ANALYSIS.......................................................................................................................5

7. PORTER’S 5 FORCES MODEL......................................................................................................6

8. TYPES OF BEER...........................................................................................................................7

9. COST ANALYSIS..........................................................................................................................8

10. STP FOR KINGFISHER BEER.........................................................................................................8

11. P’s OF MARKETING..................................................................................................................10

12. BCG MATRIX............................................................................................................................12

13. BRAND PRISM..........................................................................................................................12

14. MARKETING STRATERGIES.......................................................................................................13

15. SUPPLY CHAIN AND PRODUCTION...........................................................................................15

16. IMPORTANCE OF RESEARCH....................................................................................................15

17. STEPS INVOLVED IN RESEARCH PROCEDURE...........................................................................17

18. TOOLS FOR DATA COLLECTION................................................................................................18

19. DATA PROCESSING AND ANALYSIS PLANS...............................................................................18

20. LIMITATIONS OF THE SURVEY..................................................................................................18

21. FINDINGS.................................................................................................................................18

22. SECONDARY RESEARCH...........................................................................................................22

23. MARKET DRIVERS, CHALLENGES, AND TRENDS DRIVERS.........................................................23

24. SUGGESTIONS..........................................................................................................................25

25. CONCLUSION...........................................................................................................................27

26. BIBLIOGRAPHY.........................................................................................................................28

1. EXECUTIVE SUMMARYAlthough Indian Alcohol Industry has been dominated by stronger spirits (IMFL), but over the years beer has

made a mark in the industry and has been able to make its presence felt. Bubbling with enthusiasm and high on

growth wave, Indian Beer Industry has been a magnet for many international players. High growth rates and

relaxation of rules on foreign direct investment in the last decade has attracted foreign investment in the beer

sector. The industry which once offered limited varieties today has left the beer lovers bewildered with varieties

and qualities on offer. Also, the Indian growth story holds up the expansion of the beer industry. 

Trends in the Industry

Entry of foreign brands in India

Budding Beer Categories

Surrogate Advertising

Favourable demographics, rising disposable incomes, urbanization and rising acceptability of drinking have

brought the winds of change for the industry. Expectant & hopeful rationalization of the taxation rules will

further aid the growth. Indian beer scenario is estimated to remain buoyant and consumption is expected to

continue its growth arc. The report starts with a brief on the Indian scenario of the beer industry and then

proceeds to analyse the UB group’s Kingfisher brand. The beer segment is categorized as strong beer and mild

beer. Strong beer has alcohol contents of >5% and mild beer contains <5% of alcohol. Indian beer market is

dominated by United Breweries capturing over 50% of the market followed by SABMiller with around 25%

and Carlsberg with under 10% of the market share. Similarly in brands, Kingfisher dominates the market

followed by Haywards 5000, Knock Out and Tuborg. The report analyses the beer market in profundity by

covering data points like industry growth drives, emerging trends coupled with SWOT analysis and Porter’s

five forces model of the market framework.

The report captures the popularity of kingfisher with the help of customer and retailer survey. Secondary data

collected shows that beer is the preferred alcohol of the 21St century Indian. Nowadays consumers are looking

for choices away from whisky and it is not just the male populace that is enamoured by beer but female

population equally enjoys the drink. The industry today boasts of an array of high quality varieties that were not

even thought about 7-8 years ago. And Kingfisher is leaving no stone unturned for wooing the Indian consumer

in all the beer segments.

Indian market players have been forced to be more innovative in their approach to engage the consumers,

branching out into concepts such as non-alcoholic brand extensions and surrogate advertising coupled with

alignment with sport. Kingfisher Premium has associated itself with five teams of the IPL as the ‘Good Times

Partner’, resulting in huge brand awareness among its target audience. This report provides market analysis

covering major growth driving factors for the industry, latest market trends and insights on the position of

Kingfisher in the beer industry. Our research broadly covers Indian markets, present analysis and outlook on the

basis of secondary data research and is cross-validated through interactions with the customers and retailers.

2. TRENDSConsumers in urban India are slowly getting adventurous and trying new beers. With microbreweries and brew

pubs expanding their footprints in metro cities, people have also started to appreciate wheat beers, ales and

many imported beer brands. The trend of microbreweries started in 2008 with two microbreweries – Doolally

and Howzatt. But now there are more than a dozen microbreweries all over India. Many imported beers like

Estrella Damm and St Erhard have also made their foray in India in 2012 and 2013 which will drive sales of

imported beers as well as beers from microbreweries as consumers will think beyond brands like Kingfisher or

Haywards.

3. COMPETITIVE LANDSCAPEUnited Breweries Ltd was the leading player in beer in 2013 with a volume share of 51%. The strong

distribution channel of the company and the popularity of the brand Kingfisher, which is almost synonymous

with beer in India, have helped the company to maintain its leadership position. The company has a wide

portfolio of beers in the low, medium and premium price bands. The company also invested Rs2000 million in

a green field brewery near Patna.

4. PROSPECTSMost Indians still do not drink beer or any form of alcohol mainly due to religious or cultural reasons, but with

rapid urbanisation, a young population and a fast-growing middle class, India has become an attractive place for

companies to operate. The growth in beer consumption is expected to be driven by changing social norms,

increasing disposable income, consumers’ greater affluence and the increasing social acceptance of beer.

5. SWOT ANALYSIS

Strength:

1. Strongest Worldwide Distribution System

2. Huge Finances backing from UB Group

3. Oldest Player in India

4. Worldwide known Brand with 360 degree marketing including the famous Kingfisher model calendar

6. Excellent brand visibility and advertising makes it a top-of-the-mind beer brand

7. Available in over 50 countries

Weakness:

1. Different brands under same category.

Opportunity:

1. Brand Extension Benefits2. Global market expansion3. Beer consumption is increasing due to changing culture

Threats:

1. High Taxes & Regulations2. Prohibition on Advertising3. High Concentration on Strong Beer Market means market share growth is slow.4. Many International Players Entering In India

6. PESTEL ANALYSIS

PoliticalThe scenario of India is very different from rest of the world. Any company venturing into the Indian market will have to study the political environment here. Different states have different rules for liquor. Some states like Gujarat are dry states where the sales of liquor are completely banned while some states have time limits i.e., after 10 the sales of liquor are prohibited. Also the huge cost involved for retailers to get the valid license for liquor. Even the age limit for drinking in India is under discussion but right now it is 25, so Kingfisher has to be very specific when targeting its consumer. As the advertisement of liquor is banned in India, Kingfisher has cashed its international image to boost its sales in the domestic market. They have targeted the public houses and discotheques for their promotion which is very apt.

EconomicThe economy of India is changing with rising per capita income and as a result the disposable income of people

specially living in urban cities is also increasing rapidly. The Kingfisher group has realized this potential and

thus has targeted the urban cities of India very well in their early stage to penetrate the market. Higher sales are

expected because of the sports branding as well as the huge population that enters the legal drinking age every

year. The population is culturally more comfortable with beer and distribution by the Government has improved

significantly.

SocialAs India is said to be the land of diverse culture, we can’t categorize India under one segment. The northern

part is completely different from the southern part. Per capita income is rising, but at the same time the gap

between the culturally right and wrong is also widening. Though we hope that this gap will be narrowing in the

near future, but the scenario is a bit bitter right now. There is a school of thought against the so called pub

culture, but as they say change is inevitable that’s why the Kingfisher Group is relying on the change and has

targeted the new Indian who is open to change. In urban India, one can see the growing western culture which

is actually the target market for the liquor industry.

TechnologicalImporting beer attracted heavy taxes from the government resulting in higher prices for the same. Therefore

Kingfisher opted to setup its own plant in India to increase the base in the market. As per the general manager

marketing UB Ltd., Mr. Gurpreet Singh, the per capita consumption is less than 2 litres per person, while it is

around 25 litres to 30 litres in China. There is a lot of scope for growth. According to the company sources, it is

using an advanced technology to ensure that the beer that gets out is of better quality and great taste.

EnvironmentalEnvironmental factors include the weather and climate change. As the climate here is generally warm,

Kingfisher increases the promotions during summertime. As the company is operating since last 35 years, it has

seen sales variations in different seasons but there are some cities like Goa which is a premium tourist

destination in India for youths has seen higher sales throughout the year.

LegalAgain The UB Group is very careful about the steps it takes because of the political environment which could

land it in trouble. As the laws are different for different states, Kingfisher India has played smart in tying up

with different sports league in making a social network so that its purpose of marketing is also solved and it

didn’t cross the line of the law as well.

7. PORTER’S 5 FORCES MODEL

Threat of new entrants is towards lower side. Economies of scale in manufacturing, distributing, and marketing create high barriers to the national and

global markets.

The capital needed to build beer manufacturing facilities and the costs associated with operating

business on a national scale are extensive.

The costs associated with this highly controversial industry seek high levels of sales, thus making the

industry more and more prohibitive for newcomers.

Barraging power of buyers is high. The quantity of alcoholic beverages that a nation consumes tends to be unaffected through recession and

prosperity while the quality of the products purchased is directly related to the disposable income.

A decline in disposable income shifts consumer preferences away from premium-priced brand-name

products in favor of lower-priced brands i.e. switching cost is low.

Threat of substitutes is low. Customer loyalty through brand awareness.

The advertising restrictions placed on alcoholic beverage industry in recent years make it harder to

achieve brand loyalty.

Supplier Power is low. Products used to brew beer are inexpensive and suppliers are numerous.

8. TYPES OF BEER

Beer

Dark Beer

Ale

Sorghum

Weissbier/Wiezen/Wheat Beer

Lager

Flavoured/Mixed Lager

Standard Lager

Premium Lager

Domestic Premium Lager

Imported Premium Lager

Mid-Priced Lager

Domestic Mid-Priced Lager

Imported Mid-Priced Lager

Economy Lager

Domestic Economy Lager

Imported Economy Lager

Standard Lager by Origin

Domestic Lager

Domestic Premium Lager

Domestic Mid-Priced Lager

Domestic Economy Lager

Imported Lager

Imported Premium Lager

Imported Mid-Priced Lager

Imported Economy Lager

Non/Low Alcohol Beer

Stout

9. COST ANALYSIS In 2013-14, operating margins of the brewers improved by about 150 basis points, aided by stable barley (raw

material) prices and an increase of 4-5 per cent in net realisations. Packaging costs also increased moderately,

by the same extent. In terms of net margins too, there was a 100 bps increase. The industry is capital intensive

due to working capital requirements and this reflects in higher debt requirements too thus increasing interest

cost and eating up on net margins.

10. STP FOR

KINGFISHER BEER

Segmentation

Geographic Segmentation:

The product is available in markets of India, UK, France, Finland, Portugal and Canada.

In India it is available throughout the country but is dominant in south and west India.

Demographic Segmentation:

The kingfisher beer mainly segments the market as youth and adults.

Youth: Under the age group of 16-25yrs(kingfisher mild)

Adults: Under the age group of 25yrs & above(kingfisher strong)

Psychographic Segmentation:

For newly emerging and potentially promising segment (Kingfisher ULTRA)

It includes people who attend the night clubs, have parties and live a rich lifestyle.

Behavioural Segmentation:

Here behavioural segments are created on the basis of occasions like birthday, anniversary and New

Year parties.

Target Market:Kingfisher target customers are as follows:

Youth who drink for fun.

First time drinkers who drink for experience.

Urban women who prefers to drink light.

The above listed target segments prefer mild beer (Alcohol<4%)

Those who wants something stronger.

Regular drinkers who prefer strong beer.

The above listed target segments prefer strong beer (Alcohol >4%)

Emerging and promising target market that drink because it is a lifestyle.

Those attending pubs and night parties.

Those who prefer premium beer.

The above listed target segments prefer ULTRA and PREMIUM beer.

Positioning Kingfisher has positioned itself as a brand for successful and professional individuals who are always

ready to take a break, party or just chill out.

The brand has reflected the spirit of 'Good Times' through associations with speed and thrill right from

the days of Benetton Formula 1. From sponsoring the fastest Indian on the circuit - Narain Karthikeyan,

to signing on Karun Chandhok, Kingfisher has also been involved in promoting the current rage among

youngsters in India, Go-Karting.

Kingfisher STRONG combines the unique taste and quality of Kingfisher in a Strong Beer and is

positioned on the similar platform as the mother brand – Kingfisher. The tagline used for

communicating the positioning platform is “Same Taste. Extra Dum”. Kingfisher Strong symbolizes

the values of strength, style, youthfulness, power & machoism.

Kingfisher ULTRA has positioned itself for people experiencing their next high in life. It is a beer for

the classy, modern, urban, confident, independent, self-assured consumer. It is for those who wants the

best and deserve the best.

11. P’s OF MARKETING

ProductOne factor in the new brew battles: the strength of the beer. Indian drinkers are largely still partial to stronger

beers like Kingfisher Strong, with an alcohol content that can go as high as eight per cent. Kingfisher as a

product has acquired a wider brand image with various variants in the Indian consumer market.

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.

Variants Kingfisher Premium

Kingfisher Strong

Kingfisher Draught

Kingfisher Ultra

Kingfisher Blue

Kingfisher Red

Kingfisher StrongFresh

As much as 80 per cent of the beer sold in India’s beer industry is “strong” with alcohol content of six to eight

per cent. United Breweries’ stable of brands includes Kingfisher Strong and Draught as well as milder variants

such as Ultra. Carlsberg has introduced stronger brews, including Carlsberg Elephant and Tuborg Strong and it

has made the segment so much competitive for the Indian market.

Kingfisher Strong enjoys close to 40 per cent market share in the Indian sub-continent and has also been one of

the fastest growing beer brands in the strong beer category in India. United Breweries Limited today said its

beer brand Kingfisher Strong has been recognised as 'Asia's Best Strong Lager Beer' at the prestigious World

Beer wards- 2013 held in UK recently.

Kingfisher has penetrated the Indian beer market in its early days by launching various bottle sizes for all kinds

of consumers. This has helped Kingfisher to gain a remarkable market share as a product which is closer to the

consumers fulfilling their booze as per the occasions.

New product Kingfisher Ultra is the first step in the direction of trying to come up with good brands in the

premium space. In a matter of months, this brand has overtaken the likes of Carlsberg wherever it has been

launched—Mumbai, Pune, Bangalore and Pondicherry. Kingfisher is also promising its consumers experiences

that no other brand can promise. This is apart from launching Tiger Beer and Heineken brands in the premium

segment. So, it has two challenges—to continue to grow the mass, and to appeal to a greater deal to the

premium consumer.

PlaceIn the last 35 years since its inception in the Indian market Kingfisher has made its legacy in the beer industry.

It has adapted to changes with the passage of time and in the past decades, it has offered its consumers the

product they wanted. The reach and coverage of Kingfisher can be analysed by the following facts –

It is available throughout India, and is dominant particularly in south and west India.

UB has 16 company owned breweries apart from 9 contract breweries in 20 different locations across

the country.

Kingfisher also has a presence in 60 countries.

It has some sixteen hundred shops apart from pubs and bars.

Kingfisher also has association with number of Very Classy, Up-market & Stylish bars & lounges which

goes hand in hand with its brand image.

Microbreweries are springing up in India as well in the modern era and it can be observed in the cities like New

Delhi, suburb of Gurgaon and Pune. The consumption of beer has increased significantly in the past decade

with the arrival of the technical industry in India. Kingfisher judged it well and tied up with various breweries

and pubs. One of the largest, called Rockman’s Beer Island, has raised prices as many as four times since

starting in 2009 and still has customers flying to its brewery, on the top floor of an upscale mall, from other

cities. Apart from tier 1 cities, the strong presence of Kingfisher can also be observed in the growing techno

savvy cities adopting to modern culture.

12. BCG MATRIX

13. BRAND PRISM

14. MARKETING STRATERGIES

Social Media:There are multitude of rules and regulations surrounding the sales and promotion of alcohol which makes it

difficult for alcohol brands to promote itself. However, Kingfisher while adhering to these rules and

regulation is doing a commendable job in the digital space backed up by a strong Social Media Strategy.

Kingfisher treats social media as a part of digital marketing and as a lead medium in their marketing. The

company has invested in it financially as well as infrastructurally. The company believes in a mix of offline

and online integration. There are few online initiatives that are only done on digital platform but do not

happen in the offline world. The company wants to be the ‘buzziest’ brand in the world.

Kingfisher has a mobile app on Android platform (google play) and IOs operating system and website

largely to promote engagements through intriguing content.

Budget of Social media: close to 3-4% and the number is doubling every year.

The Facebook Factor: Finding creative ways to engage a person on Facebook so that they can come closer to the brand is one

of the reason 7,500,000 people follow Kingfisher on Facebook. The intent is to come up with content

and ideas that makes the followers share and enjoy the experience of being a part of Kingfisher brand.

Keeping regular contests on Facebook and uploading a lot of appealing pictures, tweeting, re-tweeting.

E.g.: they kept a contest for fans to create beer commandments and later printed t-shirts for the best

responses.

We show behind-the-scenes activities, exclusive updates, promotions mentioning who contributed it,

Using Facebook advertisements has helped in flourishing brand image.

Posting kingfisher calendar pictures on the kingfisher page of facebook attracts a lot of fashion

followers.

Youtube Effect: Kingfisher has an impressive YouTube channel which is a rarity among Indian brands.

Content on the social media is to a great extent driven by videos. In upcoming time 80% of all the

content will be videos,

Marketing: We have something called Brewdolph, who is the good times reindeer. It’s a take on

Rudolph and Brewdolph is a fictional reindeer who brings beer to the needy.

Positioning of Kingfisher blue: this particular brand is positioned on the outdoor adventure activation

platform.

The Blue mile: this is a road trip taken 5-6 people who tweet and blog, and they do they river rafting and

rappelling, and rock climbing, etcetera. And the Blue Mile is a property that we’re going to have at least

two, three times a year and that works very well on YouTube.

Spreading the fun using hashtags: Known for spreading the good times, the engagement using hashtags like

#BeerCommandments and #BeerMovies is the best way to get people engaged as they create virtual wordplay

and people share their fun thoughts.

We’ve also got #KF6Pack which was for presenting your Valentine a six pack of Kingfisher Beer. That

hashtag trended and it was #1 in India for most of the day. It was #3 even till late at night. There are

invaluable benefits in terms of doing these fun hashtags.

#KFBeerUp: excites people to meet up with their fellow tweets in the real world.

The company promotes beer and alcohol explicitly on twitter s compared to facebook because of more

mature audience and also keeping sensitivity in mind and facebooks own guidelines.

Recruitment using social media:The company has used Facebook and LinkedIn to look at appropriate candidates because it’s a tool that is

available and as a company also we believe in moving with the times and some very interesting profiles have

come through social media. And of course, largely in the area of general management, sales and

marketing because typically specialized functions, you know like legal or, let’s say, brewery manufacturing or

quality control is a bit difficult to get through social media. But some of the more general functions, for sure,

we’ve used social media for these.

Joint venture with HeinekenHeineken is the world’s number one beer brand on Facebook. Kingfisher is world’s number three. So between

Heineken and Kingfisher, we have close to 90 percent of the entire digital traffic on beer in the world.

Investments on events:Kingfisher Premium has held a dominant position in India’s beer market. However, in recent times, its parent

company United Breweries has been reeling from a market slump in the beer category. But according to a

recent report by business standard the brand losing part of its market share as the landscape becomes more

competitive with international players like Carlsberg and Anheuser-Busch.  As a result, the brand is ramping up

its marketing activities, pushing out a series of innovative brand events

Recent events:

1. The event took place at several popular pubs across the city where the brand challenged pub goers to “spill some beer” and spell a “whole new language.” The font was created out of beer mugs and bottle and can impressions by people who uploaded their photos on Instagram, Twitter and Facebook where the brand eventually found the ideal letters to form the word “beer.”

2. Parallel to Germany’s Oktoberfest, Kingfisher hosted an event that ended in late October 2013 called the Great Indian Oktoberfest.The brand is expected to sell about 15% more beer compared to last year and Kingfisher has reportedly increased its marketing spend by about 10% on upscaling The Great Indian Octoberfest

Kingfisher’s heavy events strategy:The brand has a strategy focusing on four platforms: sports, music, fashion and food, with the brand’s motto

being “The King of Good Times.” The brand’s target audience is the aspirational youth in India who lives life

to the fullest. Few strategic events include:

a. Indian premier League (IPL). According to the Business Standard report the UB group increased the

marketing spend by 10% for the sixth edition of the IPL.

b. The organisation has also set up a football club, called Kingfisher East Bengal Football Club.

c. The brand is an active advocate of sporting events such as the Bombay Marathon, the Delhi Half-

Marathon, and the Bangalore and Hyderabad 10 and 15KM runs respectively.

d. Other events that Kingfisher is closely associated with includes tennis tournaments, hockey

tournaments, rugby tours, Formula One, horse racing derby and a host of other events.

15. SUPPLY CHAIN AND PRODUCTION

The big company brewers brew and bottle their beer on a company-owned site. They convert their raw

materials into a finished product, and bottle it into pre-made containers. Therefore, the inputs that breweries

need are the raw materials (such as water, barley, hops, corn and yeast) and packaging materials (such as kegs

and bottles), as well as equipment (such as grain mills, tanks, yeast propagators, and packaging systems).

Law prohibits restaurants, stores and individuals from buying directly from breweries. There is a required three-

tier process in place to prevent alcohol abuse, and to ensure minors are not purchasing or consuming alcohol.

Therefore, individuals and retail outlets must purchase from a licensed wholesaler or distributor.

16. IMPORTANCE OF RESEARCHMarket research is an essential part of any business plan whether it’s a start up or a multi-national organisation.

Knowing that there’s a target market for your product and comprehending well that what the stockholders

expect from you is quintessential for making a product or service successful.

Research also plays and equally important role in projects and technical paper presentations as it adds more

credibility into the idea.

Market research can be classified into:

a. Primary research

b. Secondary research

Primary research. The research can include question that you ask to your friends and family or a survey put

together alongside that addresses a wide variety of audience. You choose the questions and then using a

sampling technique obtain the detailed responses from the individual. One can decide the how, when and where

of the primary research which helps in gaining control of the project and decide the path to be followed, during

and after the research work (essentially the evaluation). Primary research is considered to be the most accurate

way to find out a market sector that is specific to your product. On the down side, this kind of research is quite

expensive (financially as well as the time involved) and requires producing quality questions that will help your

analyse the responses well.

You can ensure that the research is focussed by including few parameters:

1. Number of participants in the survey

Since we have different sets of questionnaires for consumers and retailers, our survey

participants will be close to 100, including both.

We will also look forward to having a response from someone in the Kingfisher group as to what

they think about their product and their market competition.

2. Background of the participants (students/working professionals etc)

We have catered mostly to the college going students as there is a strong market in that segment

because of the pricing.

We also have included the working professionals, which will help us find more about the brand

that people follow where the money constraint is less prevalent.

The retailers (brick and mortar and online) will give us good insights regarding which product/

brand is preferred as compared to competition.

3. The number and nature of the questions included.

The survey for the consumers has 17 questions. The question covers aspects of product quality,

variety, pricing, likeability, preference of the customers and brand value.

For the retailers the questions comprise of the profit generated through Kingfisher sales as

compared to other brands, units sold per day, consumer preference in the eyes of the seller and

their stock availability.

4. The amount of time that your survey is available.

It’s crucial that the survey is available for a good but stipulated time. That helps in gathering

views of more people. Our survey will be floated for about 10-15 days.

The live survey we intend to undertake in the restaurants and pubs will be for a short duration.

Participants in the survey should incorporate a mix of different backgrounds. This will ensure that we get holistic inputs. The following factors will be considered while sampling the participants for the consumer survey:

Age group: We will have Youth: 16 to 25yrs and Adults: 25yrs & above.

Gender: Keeping a decent ratio of males to females is a necessity owing to the changing trends in the

consumer behaviour.

Income group: it’s quite important that we understand the preferences of the consumer group with

different incomes. Hence sampling them will be a crucial thing. We can segregate income groups as

high, medium and low.

Category: It is possible to classify beer drinkers into 3 categories based on the frequency of their

drinking beer.

a. Light drinkers: People who drink beer once in one or two months.

b. Moderate drinkers: People who drink beer 1-3 times a month.

c. Heavy drinkers: People who drink beer at least once every week.

Education: Since we wish to bring a variety in the sample, the more highly educated vs less educated

category will also play an important role. More highly qualified would include graduates and post

graduates as compared to less educated which will comprise of workers and labourers.

The percent of each category in the whole sample will vary slightly, since we need to understand more about

consumers preferences which we hope to get from category of heavy drinkers and moderate drinkers.

The second questionnaire participants include retailers of both brick and mortar shops and online channel. The

survey we intend to take for this would be based on the following factors.

Locality: Bangalore has a good mix of populated areas. Choosing retailers based on different locality is

crucial.

Shops in malls vs other liquor stores: Would tell us about the consumer behaviour as to how many

people purchase from big

17. STEPS INVOLVED IN RESEARCH PROCEDURE

Statement of hypothesis

Extensive literature survey

Defining Research problem

Developing the Hypothesis

Determining sample drawn

Execute the project

Analysis the data

Generation of interpretation

Preparation of the report

Analysis the data

18. TOOLS FOR DATA COLLECTION

For this project report, Questionnaire method was adapted to analyse the consumer’s preference/ behaviours

and personal interview were conducted together information from the consumers/ clients and company

organization.

19. DATA PROCESSING AND ANALYSIS PLANS

The data was processed and analysed on the basis of the responses given by the customers of the kingfisher

beer in the questionnaire. The responses were first classified on the basis of similarity of views and then

tabulated in two different groups. Further, analysis was done on the basis of the tabulated data. Suitable pie

charts and bar charts were shown to represent the data graphically.

20. LIMITATIONS OF THE SURVEY

1. The survey was limited for Bangalore region only

2. Random samplings of retailers were selected under the market survey

3. Due to the restricted time frame the sample size was small. Bigger sample size would have made few

aspects more clear.

4. The information gathered was based on customers’ response to questionnaire. Even then a genuine attempt

has been made to get correct data from them

5. Time constraint.

21. FINDINGS

Competitor Analysis

Kingfisher Carlsberg Knockout Tuborg

Critical Success Factor

Weight Rating Score Rating Score Rating Score Rating Score

Product quality 0.2 3 0.6 4 0.8 2 0.4 3 0.6

Price 0.15 4 0.6 2 0.3 3 0.45 3 0.45Taste 0.2 3 0.6 4 0.8 1 0.2 3 0.6

Packaging 0.15 3 0.45 5 0.75 2 0.3 4 0.6

Brand 0.3 4 1.2 4 1.2 1 0.3 4 1.2Total 1 3.45 3.85 1.65 3.45

Analysing the data:

70 people were surveyed for coming up with a proper competitor analysis. The analysis consists of four major

players in the Indian market namely: Kingfisher, Carlsberg, knockout, Tuborg.

We took few factors into consideration and named them as critical factors and also assigned weights to them

basis the reviews given by survey participants.

The weights and ranks hence obtained are as follows:

1. Brand (weight 0.3)

2. Taste & Product quality (weight 0.2)

3. Price & packaging (weight 0.2)

Inference 1: Hence, one thing can be interpreted about the Indian consumer here, that they love to go for a

brand in the beer category. Price and packaging were tied as the last factors amongst the factors considered.

Ratings:

We asked the participants to rate each of the critical success factors for each beer on the scale of 1 to 5 (wherein

1 being the least and 5 being the highest)

Inference 2: Carlsberg was rated the highest in 4 of the 5 factors: brand, taste, quality, and packaging. While

Kingfisher was rated the best in the price category.

Overall score: the overall score is obtained by multiplying the weights of individual factors with the ratings

provided for each beer brand in that factor. The final rank order is obtained by adding all the data in the respect

brand.

Inference 3: The overall score tells us that Carlsberg is the best product in the market with the highest score of

4.15 followed by Tuborg with a score of 3.45 (the second best in the brand and taste category). Kingfisher stood

third overall with the weighted score of 3.15.

BEER PREFERENCETotal no.

of respondentsKing

fisher consumer Others Percentage of Kingfisher Others

70 55 15 79% 21%

79%

21%

BEER PREFERENCE

King fisher consumerOthers

Conclusion for above Table & GraphThe above table reveals that out of 70 respondents contacted, 55 of them buy K .F and 15 respondents consume

other. It was also found that there was no one who have never heard of K .F the same is depicted in the

diagram. One of the important reasons for this is the brand image Kingfisher has created. Using social media in

the appropriate way and leveraging on other activities like Kingfisher annual calendar and sponsoring sporting

events has helped in increasing brand value. Also easy availability in the retail outlets leads to more consumers

trying the kingfisher beer.

LOCATION OF PURCHASE

Wine shop Club Bar Restaurant20 28 22

Inference: - From the above data we can conclude that most of the customers are consuming kingfisher

beer at the club/bar (40%) followed by restaurants & fine dining places (31%) and last in wine and beer shop

(20%). This segregation also depends on the profession of the participant.

BEER YOU WOULD LIKE TO PREFER IN KINGFISHERStrong Premium Ultra Blue Draught

61 20 6 4 9

Inference: - From the above table we can conclude that 61% of the participants surveyed prefer Kingfisher

Strong as the most preferred beer in the Kingfisher portfolio followed by kingfisher premium (20%). Rest of the

portfolio accounts for the remaining 19% percent.

Table and graph showing the respondents incident of consuming beerIncidents of consuming beer No. of respondents PercentageDaily 10 14Weekdays 15 21Weekends 30 43Monthly 10 14Occasionally 5 7

14%

22%

43%

14%

7%

Beer Consumption

DailyWeekdays Weekends Monthly Occasionally

Quality of Kingfisher when compared to other brandsThe study provided on opportunity to the respondents to give their comparative opinion regarding the quality of

King Fisher. The results obtained are given in the following table:

Opinion No. of Respondents PercentageGood 35 50

Satisfied 24 35Not Satisfied 11 15

A glance at the above table shows that 50% of the respondents are of the opinion that the quality of K.F beer

compared to other brand is good, 35% of the respondents are of the opinion that quality of the K.F beer is

satisfactory and 15% of them are of the opinion that it is unsatisfactory when compared to other brands. Some

of the consumers have brand preference the consumer have satisfied themselves to particular brands and this is

very important at this point. It should be noted that the people are made to stick on to their brands and are not

let to migrate to other brands.

Reason for consuming kingfisherOpinion No. of Respondents PercentageQuality 20 29Flavour 15 21Strong 35 50

Packaging 0 0Others 0 0

Inference: Easily it can be deducted that people like Kingfisher strong amongst all the products of the

Kingfisher (50% percent of the respondents). Quality was the next best factor for people to consume beer

followed by flavour. Packaging was not that strong a factor for the people to buy a beer.

Demand for different brands of beer (According to their sales)The following table shows the demand for different brands of beer 

From the above table it is clear that the demand for Kingfisher beer is very high when compared to others and it

occupies first place.  Consumers have said that they look for quality and some others look for taste. Another

important reason for the high sales number is the easy availability of the brand in the retail stores due to a

strong supply chain system of Kingfisher.

Table graph show the consumer feelings about the price of Kingfisher

Feeling about price No. of Respondents PercentageLow 15 21

Nominal 30 43High 25 36

Inference: A combined of 64% people feel that the kingfisher products are reasonably priced in the beer segment that gives them a

huge advantage in a market where people are quite price sensitive.

Brand RankingKingfisher 1KnockOut 2Carlsberg 3

Tuborg 4

DEALERS SURVEY

A dealer survey was conducted in few Koramangala and HSR Layout retail outlets and responses were recorded. Questionnaire for

the dealers is put in the annexure.

Key inferences from the dealer survey are as follows:

All the 5 retailers surveyed agreed to the first part where they were asked if beer is sold more than other

hard drinks.

80% of the retailers said that kingfisher beer was the most sold beer in the day amongst all the beers in

their store.

The retailers provided the feedback that the sales of kingfisher are high because of best prices in the

market and strong supply chain network.

Amongst the various products kingfisher strong was the most sold product followed by the premium

beer.

All the retailers were divided when asked which packaging type (bottle/can/ pint) is sold the most.

The following table and graph shows the opinion of dealers about Kingfisher

Factors No. Of Respondents PercentageGood 14 20Better 21 30Best 34 50Bad 0 0

Total 70 100

22. SECONDARY RESEARCHTrending news about beer in news and twitter:

1. There is recent news about the beer rates at all-time high in Patiala.

Sources said that rates had been increased by liquor contractors of the district after allegedly

forming a cartel of sorts in several pockets, which had led to unanimity among them over

uniform prices of popular brands, especially in Patiala.

2. Now brewing: Mumbaikars raise a toast to craft beers.

Over the past two years, craft beers—the product of smaller, independently owned breweries—

have found a steadily growing fan-club in Mumbai.

A well-travelled consumer base looking to try "that fantastic beer" they may have sampled in

Hamburg or Sierra Nevada, has led to a growing demand. And the suppliers are several.

The idea is to provide innovative, interesting alternatives to customers, aside from the handful of

local beer and international beer brands available. There is scope for wider experiments with

flavour, and the chance to chug freshly brewed beer. 

Competitive Analysis:

The following figure tells us about the brand prominence of the various brands in the beer industry.

The figure given below shows that kingfisher is most liked and talked by the age group of 18-25yrs. Hence the

company should focus on this segment more and try increasing its visibility in other age groups too.

23. MARK ET

DRIVERS, CHALLENGES, AND TRENDS DRIVERSKey Growth Drivers:

1. Young population – India has amongst the youngest population in the world. 60% of the population is under

the age of 30. Further, over 50% of the population is in the working age of 22- 54.

2. Rapidly growing consumption – Beer is increasingly acceptable as a social drink and the urban youth in

particular favors it as the preferred alcoholic beverage. Per capita consumption of beer is 1.5 liter and has been

growing at over 15% in the last few years.

3. Home grown brands – Even international giants like SAB Miller and Carlsberg have not been able to grow

their own brands significantly. SAB Miller leveraged its acquired Indian brands like Haywards, Knock Out and

Royal Challenge to become a leader in the industry.

4. Expanding product range-Indian beer market has been witnessing introduction of new flavours by leading

beer brands to woo Indian consumers. Beer drinkers now have a huge variety to choose from there are wheat

beers. Meads, ales, stouts, and cider with fancy names

5. Rising social acceptability-Two thirds of Indians don’t drink alcohol at all, often for religious or cultural

reasons, but rapid urbanization, a young population and a fast growing middle class are changing alcohol

consumption habits making India an attractive market.

The rising social acceptability of alcohol has opened the market to new customers like women and youth who

earlier comprised only a small proportion of alcohol consumers in the country

6. Promotional activities-Too woo the consumers companies take up many promotional activities. Pubs for

instance organize ladies night where alcohol is served free to the women on given days of the week. Certain

organizations as a part of their social gatherings encourage the youth to participate in beer drinking contests

with offers of exciting prizes to the winners.

7. Easy availability-The Indian beer market has been experiencing the trend of microbreweries and exclusive

beer outlets which contributes to increased awareness and easy availability of beer in Indian markets. The

recent addition in the list is the beer cafe’s which aim at making beer as easily available as coffee.

8. Health benefits-Several studies emphasize that when drunk in moderation beer has more health benefits than

commonly known. Beer is known to decrease the incidence of heart attacks by 20-40%. It is loaded with

vitamin B and is also known to decrease kidney stones.

MARKET STRUCTURE The main states for beer include Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu and Delhi. Beer is seen

as mostly an urban-youth drink and has increasing social acceptance. Hence, the beverage has a universal

acceptance across the country.

Challenges and Impediments

India is predominantly a hard spirits market and beer is a minority preference for those who consume Beverage

Alcohol. Beer makes only 4% by revenue of the total alcoholic market. It would be pertinent to mention that

while per capita consumption of spirits in India is 65% of global average, in the case of beer it is a mere 3% of

global average.

Moreover, the Indian beer industry is plagued with myriad taxes & levies that vary from state to state. In fact no

two states or UTs have a same or even a similar policy.

The inconsistency in the state policies leads to fostering an environment of mismanagement & lack of focused

strategy to manage state finances. States usually do not adopt policies based on scientific management or by

considering the social aspects of managing this trade. The policies are generally short term in their outlook,

with little or no thought to long-term interests of all stakeholders, including the general public.

Hence, despite the recent growth, there still exist numerous challenges for the beer industry.

• Beer Highly Taxed - Beer, which is a softer form of alcohol consumption, is taxed higher by most states

compared to Spirits on absolute alcohol basis. This is primarily because taxes on beer in India tend to be

relatively higher than spirits whereas in most parts of the world, in fact, the reverse is true. Globally, on a per

alcohol basis beer is taxed at 50% of hard liquor whereas in India, beer is actually taxed 60% more than hard

liquor.

• Most Regulated Industry- The beer industry is highly regulated.. 26 different alcohol specific taxes constitute

about 50% of the consumer price which is amongst the highest in the world.

• Price Restrictions- Price restrictions in many large markets remain a biggest challenge for the industry. The

Government decides the End Consumer Price (ECP), leaving the manufactures with no say in determining the

price of the beer. In a free market economy this has no rationale.

• Inadequate Market Infrastructure- The market infrastructure for beer in India is inadequate. For every 21000

persons there is one outlet hampering the availability of beer. In China, for instance the figure is 300. The

highly regulated market hampers beer sales, unlike most developed countries where beer and wine are not

regulated in grocery/ retail stores.

• Restriction of Movement of Beer- For the movement of beer from one state to another, an export license and

an import license is required. Export fee is imposed in the state where beer is manufactured and import fees on

the State where it is sold.In some states only beer manufactured in that state can be sold.

24. SUGGESTIONS

The following are the some of the important suggestions that could be given to the firm, company and the

government so that the sale beer can be increased without letting it to come down further.

1. As the prices of beer are going higher and Higher

 It is suggested to the firm to increase the capital, so that purchases can be made in accordance with the demand

of the market. So as be able to meet their demands.

2. The firm must adopt good market information system So as to get necessary information to take decision about the market and the consumer behaviour, more

information will help in knowing demands for brand of beer at that day and this will help to make orders

according to the existing demand.

3. The Government should decrease the figure of tax

It is not only harmful to the company, also to the nation which will not have the income without sales of beer

and so this is even harmful it.

4. Consumer is said to be the king in the market

So levelly now and then his shies should be fulfilled as for as possible. At times credit facility may recur to be

extended in large numbers to face the Compton and also some gifts or incentives should be given to make

them happy. It must be so as to make them patronize kingfisher.

5. Consumer preference

It should be made to become stable so that he should stick on the same brand slows i.e. should not be let to

divert his attention towards other products.

6. Uniform Policy and Taxation

Uniform tax regime for liquor/ beer would be a boon for the industry. If implemented, it would help the beer

industry by rationalizing end consumer prices & making them uniform in all states, as it is in the case of other

consumer goods. MoFPI in its draft excise policy outlined the need to base duties on alcoholic beverages on

alcohol content. Globally, the policy of uniform taxation has been a success because of inherent implications on

revenue. Apart from economic contribution, a uniform tax structure will also create increased agro linkages that

are inherently beneficial to a country like India.

7. Free Pricing

Consumer prices be determined by manufacturers, based on market forces and not dictated by Government

policy.

8. Preferential Treatment to beer

The government has brought into a situation where 96% of alcohol consumption is spirits with an average 34%

alcohol volume. Inherently that is bad (in terms of) social effects. Hence, there is a need to provide greater

preferential treatment to other milder forms of alcohol such as beer. It is important to realize that the beer sector

can contribute immensely to the agricultural sector, as it is completely an agro-based product. Marginal barley

farmers particularly stand to benefit from the growth of the beer sector. Moreover, the income and job

multiplier of the beer industry are also extremely high. Experience in other countries has shown that for every

person employed in a brewery 28-30 jobs are created up-stream and down-stream.

9. Lower Consumer Prices

Steady growth of the beer market helped by lower retail prices would not only make the industry more

profitable, a much larger consumer base would make see State revenues grow drastically. “Beer Only Off

shops” outlets should be allowed to open for which license fees should be considerably lower.

10. Market driven Retail Sector

At the moment there are only about 55,000 outlets nationally in a country of more than billion people. The

industry is highly straight jacketed by regulatory barriers. A more open market would create a uniform pricing

and reduce the effects of cross border smuggling of alcohol.

11. Better Beer selling practices

There is a need for creating better retail environment and promotes sales force development. The need is to

entrench good beer selling practices and develop value-added structures such as better point of-sale promotions.

12. Formation of a Beer Board

As done in the case with Wine, it is pertinent to set up a beer board. Beer should be given preferential treatment

which would encourage diversification in agriculture, which would offer higher income to farmers and generate

substantial employment opportunities, as well as counter large-scale imports by increasing domestic production.

13. Product Development

The use of technology and continued innovation to make product personalization easier and product upgrades

more accessible to the consumer. A shift in consumer expectations, attitudes and preferences to things such as

satellite TV, smart phone, and Internet connections. Constant access to information has led a dramatic shift in

consumer culture, ideas and lifestyles.Must meet the new consumer demand for People more variety, more

novelty, more sophistication in the products offered in the market.

Example: New Trend Low Calorie Beers

14. Brand Expansion

Capitalize on the success of a solid brand by breaking into different product categories under the same brand

name. Allows firm to increase and leverage the brand equity, increase product portfolio, and grants a company

a larger hold over the market; thus generating greater revenue.

25. CONCLUSION

Kingfisher beer maintains a highest share, to maintain and to improve the standards. They require correct customer preference analysis, decrease in cost and increase in quality. Therefore the urgent need for kingfisher is to take up convincing for customer by proper publicity and decreasing price and also by motivating consumers by different methods. Kingfisher also reviser proper motivation of dealers to make then more involved in kingfisher.

26. BIBLIOGRAPHY

Britannica- Encyclopaedia

Colliers- Encyclopaedia.

Wealth of India- Magazine

Advertising and marketing- Magazine

Marketing management- Sherlekar

Economic Times

Websites:

google.com

www.kingfisher.com

CONSUMER QUESTIONNAIRE

I am …………..….. student of Narsee Monjee College, Bangalore. Conducting a study on “Consumer attitude towards Kingfisher beer”, I would be grateful if you spend some of your time in following up these questionnaires, because thisinformation helps my project report.

Thanking you,

Yours FaithfullyAllen Thomas1. Name

2. Address

3. Agea) 18 to 20 [ ]b) 20 to 30 [ ]c) 30 to 40 [ ]d) 40 – above [ ]

4. SexMale [ ] Female [ ]

5. Occupation

a) Services [ ]b) Business [ ]c) Student [ ]d) Others [ ]

6. Do you consume beer?

a) Yes b) No

7. How often do you drink?

a)Daily b)Weekdays c)Weekends d)Monthly e)Occasionally

8. If yes, at what place do you prefer to drink at?

a) Bar b) Home c) Others_______

9. Which brand, now are you using?

a) Beer [ ] b) Whisky [ ] c) Brandy [ ] d) Rum [ ] e) Gin [ ] f) wine [ ]

10. Which beer are you presently consuming?

a) Kingfisher [ ] b) Knock out [ ] c) Carlsberg [ ] d) Tuborg [ ] e) others______

11. Are you aware of the beer called kingfisher?

a) Yes [ ] b) No [ ]

12. Are you consuming kingfishers or had tried earlier?

a) Yes [ ] b) No [ ]

13. If yes, please indicate how it is comparable to other popular brands.

a. Knockout: Good [ ] Satisfied [ ] Not satisfied [ ] b. Carlsberg: Good [ ] Satisfied [ ] Not satisfied [ ]c. Tuborg: Good [ ] Satisfied [ ] Not satisfied [ ]d. Others: Good [ ] Satisfied [ ] Not satisfied [ ]

14. What do you feel about the price charged by Kingfisher?

a) Low [ ] b). Normal [ ] c) High [ ]

15. What are the reasons for consuming particular brand of beer?

a) Quality [ ] b) Price [ ] c) Flavour [ ] d) Strong e) Packing [ ] f) Other (Specify [ ]

16. If you are consuming kingfisher, what is the reason for consuming it?

a) Quality [ ] b) Price [ ] c) Flavour [ ] d) Strong [ ] e) Packing [ ] f) Other [ ]

17. Based on your experience, how satisfied are you?

a) Very Satisfied [ ] b) Whether satisfied [ ] c) Quite Satisfied [ ] d) Rather dissatisfied [ ]

18. Based on your experience, would you recommend to your friends to consume the kingfisher?

a) Yes [ ] b) No [ ]

Date: Signature

Place:

Dealer questionnaire

1. How is the sale of beer as compare to other alcoholic products like vodka, whiskey and rum?a. Very high [ ]b. High [ ]c. Moderate [ ]d. Low [ ]

2. How does Kingfisher fare in sales of the total beers sold throughout the day. Highest sales Moderate sales Low sales

3. Which product of the kingfisher portfolio is sold the most. Kingfisher strong Premium Ultra Draught

4. Which kind of packaging is preferred in the beer segment? Bottle (650ml) Pint (350ml) Large Can (550ml) Small can (330 ml)

5. What is the most preferred way to procure the stock in case when stock finishes.a) Distributorsb) CNFA agents c) Direct dealers