Kingfisher Beer New

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The Indian Beer Industry• The beer market accounts for roughly 10% of all

alcohol sales in the country. • The beer market in India is estimated to be over

Rupees 3000 corers. • It is estimated at around 7 million hectoliters.• Beer consumption has increased by 9% over the

last 5 years.• In India, beer sales grew at nearly 90% compared

to, less than 60% growth for other alcoholic drinks.• The top 2 beer players in India account for about

75% of the market.• The spirit to beer consumption in India is 7:1.

(UNITED BREWERIES LTD.)

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KINGFISHER BEER

UBL's leading Brands• Kingfisher Premium• Kingfisher Strong• UB Export Lager• London Pilsner• UB Premium Ice

• Kalyani Black Label Premium - Largest selling Lager in East India

• Kingfisher Premium has raced to sales of 18.8 million cases

• Kingfisher Strong became the fastest growing brand. Its sales crossed the 10 million cases mark within 5 years of introduction.

UBL – Sales Forecast

• Sales revenue up by 26%.• Gross margin maintained despite

increases in input costs.• Market Share up by 1% Against same

period of previous year.• UBL added to its market share,

growing at 9.2% against industry average of 7.7%, powered by a 23% growth in strong beer.

• Kingfisher Strong continues its march recording a 24% growth this year, retaining its position as the country’s largest beer brand.

• Kingfisher Premium continues to be the King in the mild beer segment.

• Kingfisher Beer accounts for 29% out of 50% of UB.

50%

36%

9%5%

UBSABCOBRAOthers

Market Share

Budweiser Carling, Carlsberg, Dansberg, Golden Eagle, Guru, Heinekin, Hi-Five.

Legend, London Draft, ` Marcopolo, San Miguel Lager, Sand Piper, Strohs, Stud Zingaro.

Competition Analysis

Competition AnalysisFosters: It is a Premium Lager beer with a Fresh taste.

is a light beer - highly carbonated with low bitterness and no aftertaste. It has fewer calories and lower alcohol content.

Haywards: the brand is most well known for its Haywards 5000 label -- a top selling strong beer that contains 7% alcohol. Haywards also produces Haywards 2000, a mild beer with 5.5% alcohol, and the rarer super strong Haywards 10000.

Kings: is only brewed and sold in the state of Goa. The Kings Black Label premium pilsner is a very light tasting, pale colored, beer that's known for its smoky malt aroma.

• Budweiser. Largest selling in USA it has 5.0% alcohol by volume and 145 calories per 12 oz., except in Utah, Minnesota, Kansas and Oklahoma where a 3.2% alcohol by weight (4.0% by volume) strength is available due to state laws. Minnesota and Colorado require 3.2% alcohol by weight beer only at select public events and beer being sold in grocery stores and gas stations.

• The Carlsberg Group is a Danish brewing company founded in 1847 by J. C. Jacobsen after the name of his son Carl. The headquarters are in Copenhagen, Denmark. in January 2001, Carlsberg became the 5th largest brewery group in the world. In 2009 Carlsberg is the 4th largest brewery group in the world employing around 45,000 people

State wise Beer Consumption

India's beer consumption extended robust growth for the third year in a row with 14.5% volume jump in FY08.

State wise Consumption

Andhra Pradesh 15.4%

Tamil Nadu 11.6%

Karnataka 24%

Maharashtra 5 – 6%

Rajasthan 26%

Haryana 30%

Delhi 3%

Orissa, West Bengal and Jharkhand 20 – 25%

Uttar Pradesh (de-growth) 7%

BEER MARKET : FEATURES Market Characteristics

• Beer packed in 650,750 & 1000 ml glass bottles; usage of (330 ml) cans minimal

• Preference in the Indian market for strong beer

• Import duty on beer - 100 % basic; 10 % surcharge; SAD : 4 %

• Sales taxes - 45% , 5% cess (State subject).

• Excise Duty - Rs. 4/ Bulk litre in Karnataka (State subject)

Trade• States’ prohibition policies govern

trade sales for beer • Multi layer trade channel structure • Beer sold through the same outlets

as IMFL • Institutional sales of beer to star

hotels, large restaurants, bars/ pubs • South and west zones account for

bulk (> 75 %) of this market • Major beer consuming centres -

Maharashtra (Mumbai) • Karnataka (Bangalore); Tamilnadu

(Chennai)

The Brand – Kingfisher

• The largest selling Beer in India• Commanding a 25% market share in

the country• Every third Beer sold in India is

Kingfisher• Available in 52 countries across the

globe• The first among Indian brands to

launch its own range of designer wear.

Classifications• Lager: It is stored for a specified period before being bottled

or canned.

• Pilsner: A type of lager beer, it is light with 3.0 - 3.8% alcohol.

• Ale: Top fermented, this kind of beer has distinct aroma. The alcohol content is around 4 - 5%.

• Stout: Dark with burnt flavor and strong malt aroma; contains 5 - 6.5% alcohol.

• Porter: This is less dark than stout, is somewhat sweet. Alcohol content is around 5%.

• Creamy Ale: A highly carbonated beer that is produced by a combination of Ale and Lager.  

• Malt: A strong flavored, high alcohol content beer that ranges in flavor and colors.

Marketing Mix Analysis

Market Position: It is the largest selling brand in India and commands 29% market share.

TARGET AUDIENCE: In urban centers, apart from first time users companies are also targeting women, who as 'the times they are a changing,' are entering the market for beer.

Product

• No. 1 selling product in its segment. • Good quality raw material is used to maintain

the quality standards. • Consistency of product quality is high. • Always tastes fresh due to good quality and well

developed distribution network. • Hangover due to heavy consumption is very

mild.

Price • 650ml – Rs.65• 330ml – Rs.35

Place • It is available throughout India, and is dominant

particularly in South and West India.  

• UB has 16 company-owned breweries & 9 contract breweries in 20 different locations.

• Kingfisher also has an online marketing system @ www.Kingfishernetshop.com

• It also has some 1600 shops apart from pubs and bars.

• Kingfisher also has tie-ups with large department stores like ‘Foodworld’ for retailing.

• It has association with Very Classy, Up-market & Stylish bars & lounges.

KINGFISHER – ProfileTARGET AUDIENCE • SEX: Male• AGE: 28 years • NATIONALITY: Indian

DEMOGRAPHIC – Segmentation

• Age: 25-35 years• Region: India, urban population • Occupation: White-collar

service/professional • Religion: Insignificant • Social class: Middle and

upwards • Family life cycle: Young,

single/married.

PSYCHOGRAPHIC – Segmentation

Lifestyle: Easy going, ‘chilled out’ person who’s always willing to take a break and party with his pals, as long as the sun is shining and the beer is flowing.

BEHAVORIAL – Segmentation

Occasions: Regular user User status: Repeat user Loyalty status: Near absolute Readiness Stage: Informed Attitude toward product: Enthusiastic, positive

Promotion – Making a Mark

• Kingfisher tagline ‘King of good times’• Kingfisher uses surrogate advertising methods like using mineral

water and sodas. • Aggressive advertising at Outlets & Pubs. • Recently it also started merchandizing sports goods and trendy

clothing and accessories under Kingfisher brand name.• Each year Kingfisher brings out new calendars featuring top models

in swimwear.• Kingfisher also promotes itself by sponsoring events like fashion

shows, sportspersons like Narain Karthikeyan, East Bengal soccer team.

• Tying up with large department stores like Food-world for retailing its Beers.

Brand Re - Positioning

• During 2003-04 Kingfisher again repositioned itself by changing the logo.

• This change was made mainly to maintain the distinctive positioning and to create a stronger emotional bond with the aspiring Indian youth.

• Kingfisher repositioned itself into a lifestyle brand adopting jingles like ‘Oola la le lo’ and tagline ‘King of good times’.

Questionnaire AnalysisProduct • 90% look at Taste while selecting a beer.• 75% Are loyal to Kingfisher Strong and are satisfied

with the Taste

Price• 95% people think that Kingfisher is priced perfectly

and consider it worth the amount• Most people would not switch over to competition

Place• Consumers prefer drinking at public places, even

though the price is slightly higher.

Promotion• People who consume beer are mostly aware of the ads

(surrogate).• The Oo--la -la campaign by kingfisher was extremely

successful.

Packaging• Consumers prefer the bottle • They would be impressed if a special mug is offered.

Pace• Kingfisher has TOM awareness and Recall• Budweiser, Fosters

People• The consumption of beer is maximum amongst the Youth.

Survey done on bases of following parameters

• Sample size- 50• Age: 25-35 years• Region: urban population • Occupation: White-collar service/professional • Social class: Middle and upwards • Family life cycle: Youth

• Which is the preferred brand in BEER?

1. Kingfisher2. Fosters3. Carlsberg4. Budweiser5. Hayward6. Others

kingfisher 38%

fosters 25%

haywards 19%

carlsberg 8%

Budweiser 6%

others 3%

• What do you look at while selecting beer?

1. Brand name2. Quantity3. Taste and flavor4. Satisfaction5. Value for money6. Praise from friends7. Any other

brand name 25%taste and flavor 27%satisfaction 20%value of money 8%praises from friends 12%quantity 6%others 2%

• How much do you spend on a one time purchase?

1. 200/- to 250/2. 150/- to 200/- 3. 100/- to 150/- 4. 50/- to 100/-5. Below 50/-

200-300 17%

150-200 28%

100-150 39%

50-100 11%

below 50 5%

• Would you switch to another brand if the price of Kingfisher increases?

1. Definitely Yes2. Probably yes3. Definitely no

definitely yes 10%

probably yes 25%

definitely no

• Where do you purchase the drink from ?

1. Wine Stores => 52. Club=> 13. Local drink stores=>14. Bar=>25. Pub=>1

wine stores 35%

clubs 15%

local drink stores 5%

bar 25%

pub 20%

• When do you usually consume drinks and how often?

1. In a party 2. Social Occasions 3. When in mood at home 4. With friends5. Formal party

In a party 21%

On Ocassions 9%

When in mood at home 11%

with friends 37%

Formal party 22%

• How often do you consume beer?

1. Daily2. Once in a week3. Twice in a week4. Once in month5. Once in six months

daily 30%

once in a week 20%

twice in a week 35%

once in a month 10%

once in six months 5%

• Are you aware of what surrogate advertising is? 1. Yes2. No.• Which brands do you recall who have used

surrogate advertising? 1. Bacardi=> 1 2. Smirnoff=> 2 3. Haywards=> 1 4. Kingfisher => 15. Bag piper

Bacardi 11%

smirn off 30%

Haywards 28%

kingfisher 9%

bag piper 22%

• What would you prefer having beer in? And why ?

1. Bottle2. Can3. A designer glass4. Any other suggestion

bottle 45%

can 35%

designer glass 16%

others 4%

• Compare the following 3 brands on the features mentioned above . Each feature is to be given a rating of 1 to 5 for each brand . For e.g. , For the feature TASTE , rate the brands separately on a scale of 1 to 5

FEATURES KINGFISHER FOSTERS CARLSBERG BUDWEISER HAYWARDS

SATISFACTION 1 2 3 4 5

TASTE 1 2 3 4 5

AROMA 1 2 3 5 4

COLOUR 1 3 2 5 4

MOUTH FEEL 1 2 3 4 5

BRAND NAME 1 2 3 4 5

• What other products/services/events besides beer are you aware of under the brand of Kingfisher?

airlines 42%

calenders 15%

indian premier league 18%

packaged mineral water 23%

others 2%