Marketing of Beer in Mumbai

Table of Content

Industry Basics...................................................................................................................4Alcohol Market................................................................................................................4Location of consumption & Sale.....................................................................................4Business hours prescribed in Maharashtra.......................................................................5Universe for selling Beer in Mumbai...............................................................................5

Beer......................................................................................................................................6Different Strokes of Beer.................................................................................................7Alcoholic strength of Beer...............................................................................................8

History of Beer.................................................................................................................10General History..............................................................................................................10History of Beer in India.................................................................................................11

Overview of Indian Beer Market....................................................................................13Market Definition...........................................................................................................13Market Segmentation I...................................................................................................14Market Segmentation II.................................................................................................14Market Share..................................................................................................................15

Comparison of Indian & US Beer Industry..................................................................16Indian Beer Industry.......................................................................................................16US Beer Industry............................................................................................................17

Determinants of growth of Indian Beer Market...........................................................18Indian Brewing industry.................................................................................................21

Breweries in Maharashtra..............................................................................................21Brewing Process..............................................................................................................22Stages in Beer Making...................................................................................................24

Mashing..........................................................................................................................24Sparging.........................................................................................................................24Boiling............................................................................................................................24Fermentation..................................................................................................................25Pasteurisation.................................................................................................................25Packaging.......................................................................................................................25

Ingredients of Beer...........................................................................................................26Water..............................................................................................................................26Malt................................................................................................................................26Hops...............................................................................................................................26Yeast...............................................................................................................................27Clarifying agent..............................................................................................................27

Categorizing beer by........................................................................................................28Yeast...............................................................................................................................28Ale..................................................................................................................................28Lager..............................................................................................................................28Lambic beers..................................................................................................................29

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Pale and dark beer..........................................................................................................29Serving..............................................................................................................................30

Draught and keg.............................................................................................................30Cask-conditioned ales....................................................................................................30Bottles............................................................................................................................30Cans................................................................................................................................30Vessels...........................................................................................................................31

Serving temperature........................................................................................................31By-products / Waste.........................................................................................................32Taxation Policies..............................................................................................................33

Excise Duties..................................................................................................................33Octroi.............................................................................................................................33

About APB........................................................................................................................34Corporate Profile............................................................................................................34Fraser & Neave, Limited................................................................................................35Heineken........................................................................................................................35

Members of the Asia Pacific Breweries Group.............................................................36Senior Management of APB............................................................................................37APB - INDIA....................................................................................................................38

Core Values....................................................................................................................38Locations of Operation...................................................................................................39

Organization Structure...................................................................................................40Brand Portfolio.................................................................................................................41

Tiger Beer......................................................................................................................41Baron's Strong Brew......................................................................................................42Cannon 10000 Super Strong Beer..................................................................................42

APB International Brands..............................................................................................44Heineken....................................................................................................................44ABC Extra Stout........................................................................................................44Anchor........................................................................................................................44

Marketing Mix of Tiger Beer..........................................................................................45Product...........................................................................................................................46Price...............................................................................................................................49

Factors affecting pricing decisions............................................................................49Primary considerations in price setting......................................................................49Pricing in Mumbai.....................................................................................................50

Place...............................................................................................................................52Distribution Network.................................................................................................53Distributors of APBI..................................................................................................54

Promotion.........................................................................................................................55Major Tools in Marketing Beer.................................................................................55Marketing Activities at APBI....................................................................................55

Sales Promotion.............................................................................................................59

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Various sales promotions techniques adopted at APBI.............................................61Permit Room Activation............................................................................................62

Tracking Effectiveness of sales promotion....................................................................63Designing a Powerful Sales Promotion.....................................................................63

Packaging..........................................................................................................................64Beer Advertising...............................................................................................................66

Surrogate Advertising in liquor industry.......................................................................67Surrogate for Tiger Beer - Tiger Translate....................................................................68

Why Tiger Translate in India.....................................................................................68Competitors of Tiger Beer in Mumbai...........................................................................70

Carlsberg........................................................................................................................70Budweiser.......................................................................................................................71Kingfisher Mild..............................................................................................................72Fosters............................................................................................................................73

Health effects....................................................................................................................74Community & Environment...........................................................................................75

A Responsible Beer Company.......................................................................................75Asia Pacific Breweries Foundation................................................................................75Responsible Alcohol Consumption................................................................................76

SWOT Analysis of APBI.................................................................................................77Why Beer better than Milk.............................................................................................78Top 10 Reasons Beer is Good for your Health..............................................................80The Future........................................................................................................................82Conclusion........................................................................................................................83Questionnaire...................................................................................................................84Bibliography & Webliography.......................................................................................86

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Industry Basics

Alcohol Market

1. Spirits –Whisky, Rum (Dark, White) Vodka, Brandy, Gin, Ready To Drink (RTD)

2. Beer – Mild, Strong

3. Wine & Champaign – Red Wine, White Wine, Champaign

4. Country Liquor

Location of consumption & Sale

ON PREMISE OFF PREMISE

Clubs Hyper Marts

Restaurants & Bar Super Marts

Permit Room Wine Shops

Modern on Trade (MOT): Pubs, Beer Shoppee

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Business hours prescribed in Maharashtra

Business hours for Policy

FL-III (Permit Room)

11.30 a.m. to 1.30 am in Mumbai & Thane11.30 a.m. to 11.00 p.m. elsewhere

FL-II (IMFL Retail Shops)

10.00 a.m. to 10.30 p.m. in Mumbai & Thane

10.00 a.m. to 9.30 p.m. elsewhere

CL-III (CL Retail shops & Permit room)

10.00 a.m. to 12.00 Midnight in Municipal Area

10.00 a.m. to 10.00 p.m. elsewhere

E & E – II (Beer Bar & Wine Bar) 9.00 a.m. to 12.00 Midnight

Universe for selling Beer in Mumbai

Name of Location Number

Institutions 450

Permit Room 1172

Retail Shops 570

Beer Shoppee 60

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Beer

Beer is the world's oldest and most popular alcoholic beverage. Some of the

earliest known writings refer to the production and distribution of beer. It is produced by

the fermentation of sugars derived from starch-based material—the most common being

malted barley; however, wheat, corn, and rice are also widely used, usually in

conjunction with barley.

The starch source is steeped in water. Enzymes in the malt break down the starch

molecules, producing a sugary liquid known as wort, which is then flavored with hops,

which acts as a natural preservative. Other ingredients such as herbs or fruit may be

added. Yeast is then used to cause fermentation, which produces alcohol and other waste

products from anaerobic respiration of the yeast as it consumes the sugars. The process of

beer production is called brewing.

Beer uses many varying ingredients, production methods and traditions. Different

types of yeast and production methods may be used to classify beer as ale, lager or

spontaneously fermented beer. Some beer writers and organizations differentiate and

categorise beers by various factors into beer styles. Alcoholic beverages fermented from

non-starch sources such as grape juice (wine) or honey (mead), as well as distilled

beverages, is not classified as beer.

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Different Strokes of Beer

LAGER Brewed using bottom-fermenting yeast that ferments slowly at a low temperature to create a smoother, mellow beer

ALE Uses top-fermenting yeast, is a more aromatic and fruity product

STOUT Dark and heavy, with roasted unmalted barley and, often, caramel malt or sugar

MILD BEER Developed as a sweeter and cheaper alternative to dark ales

BITTER Highly hopped for a more dry and aromatic beer. It is pale in colour but strong

DARK BEER Barley is kilned for a longer period of time which creates richer flavours

FRUIT BEER Fruit , usually berries, is added either during primary fermentation or later

WHEAT BEER (WEIZEN)

Malted wheat and barley are used for this German style beer

A great many beers are brewed across the globe. Local traditions will give beers

different names, giving the impression of a multitude of different styles. However, the

basics of brewing beer are shared across national and cultural boundaries.

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Alcoholic strength of Beer

While we all love the taste of beer, it's the alcohol content thats responsible for

beers standing in most societies. Its the alcohol content of beer that makes it the number

one social lubricant. The alcohol content of beer is generally denoted by the "percent

alcohol by volume", or % ABV. "Percent alcohol by wieght", % ABW, could also be

used. It's easy to convert between them. ABW = 0.8 × ABV.

Beer ranges from less than 3% alcohol by volume (ABV) to almost 30% ABV.

The alcohol content of beer varies by local practice or beer style. The pale lagers that

most consumers are familiar with fall in the range of 4–6%, with a typical abv of 5%.

"Low alcohol beer", also known as "non-alcoholic beer" contains less than 1% ABV. The

strongest beer ever made was the Hair of the Dog Brewing Company's barley wine

named "Dave", which was 29% ABV.

The alcohol in beer comes primarily from the metabolism of sugars that are

produced during fermentation. The quantity of fermentable sugars in the wort and the

variety of yeast used to ferment the wort are the primary factors that determine the

amount of alcohol in the final beer. Additional fermentable sugars are sometimes added

to increase alcohol content, and enzymes are often added to the wort for certain styles of

beer (primarily "light" beers) to convert more complex carbohydrates (starches) to

fermentable sugars. Alcohol is a byproduct of yeast metabolism and is toxic to the yeast;

typical brewing yeast cannot survive at alcohol concentrations above 12% by volume.

Low temperatures and too little fermentation time decreases the effectiveness of yeasts,

and consequently decreases the alcohol content.

The type of beer plays a large role in the alcohol content. While it's not exact, if

you know the type of beer you can generally estimate how much alcohol you will be

imbibing. This is an important skill to have. For instance if you go to a pub and all your

friends are drinking pale ales, and you start ordering barley wines; if you try to keep up

with them, you might not make it out of the pub without being carried. The following

chart will help in these situations:

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Beer Alcohol Content Table

Beer Type %ABV

Lager 4 – 5

Pilsner Lager 3 – 6

Wheat (Weissbier) 4 – 5

Porter 4 – 5

Bitter (ESB) 3 – 7

IPA (India Pale Ale) 5 – 7

Stout 5 – 10

Double (Dubbel) 6.5 – 9

Tripel (Trippel, Triple) 7.5 - 9.5

Barleywine 8 – 12

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History of Beer

General History

Beer is one of the world's oldest beverages, possibly dating back to the 6th

millennium BC, and is recorded in the written history of ancient Egypt and Mesopotamia.

The earliest Sumerian writings contain references to beer. A prayer to the goddess

Ninkasi known as "The Hymn to Ninkasi" serves as both a prayer as well as a method of

remembering the recipe for beer in a culture with few literate people.

The earliest known chemical evidence of beer dates to circa 3500–3100 BC from

the site of Godin Tepe in the Zagros Mountains of western Iran. As almost any substance

containing carbohydrates, namely sugar or starch, can naturally undergo fermentation, it

is likely that beer-like beverages were independently invented among various cultures

throughout the world. The invention of bread and beer has been argued to be responsible

for humanity's ability to develop technology and build civilization.

As for the close link between bread- and beer-making, women produced most

beer prior to the introduction of hops in the thirteenth century, selling the beverage from

their homes as a means of supplementing the family income. However, by the 7th century

AD beer was also being produced and sold by European monasteries. During the

Industrial Revolution, the production of beer moved from artisanal manufacture to

industrial manufacture, and domestic manufacture ceased to be significant by the end of

the 19th century. The development of hydrometers and thermometers changed brewing

by allowing the brewer more control of the process, and greater knowledge of the results.

Beer was also known by Slavic tribes in early 5th century.

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History of Beer in India

Modern beer brewing began for India in the early days of the British Empire —

the mid-1700s. The demand for beer in the hot climate of many parts of India by the

British administrators and the troops was so great that it led to the creation of a

completely new style of beer by George Hodgson in his London brewery — India Pale

Ale also known as IPA. IPA is strong, highly hopped ale designed to survive the five

month ocean voyage to India without spoiling. India Pale Ale was shipped with every

voyage for over a century and became very popular in Britain and North America.

In the late 1820s Edward Dyer moved from England to set up the first brewery in

India at Kasauli (later incorporated as Dyer Breweries in 1855) in the Himalaya

Mountains, near Shimla, producing Asia's first beer called Lion. The brewery was soon

shifted to nearby Solan (close to the British summer capital Shimla), as there was an

abundant supply of fresh spring water there. The Kasauli brewery site was converted to a

distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla,

Murree, Rawalpindi and Mandalay.

Another entrepreneur, H G Meakin, moved to India and bought the old Shimla

and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie,

Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the

company was restructured with its Indian assets as Dyer Meakin Breweries, a public

company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan

took over management of the company and the name was changed to Mohan Meakin Ltd.

The company continues to produce beer across India to this day and Lion is still available

in northern India. Lion was changed from an IPA to a lager in the 1960s, when due to

East European influence, most brewers in India switched from brewing Ales to brewing

lagers.

Today no brewer in India makes India Pale Ale. All Indian beers are either lagers

(5 % alcohol — such as Australian lager) or strong lagers (8 % alcohol - such as the

popular MAX super strong beer). International Breweries Pvt. Ltd. have recently

announced an intention to work with Mohan Meakin to produce and launch an India Pale

Ale called Indian IPA from India's first brewery at Solan. Kingfisher, Haywards, Kalyani

Black Label, Soumitree, Jaguar, Foster's, Castle Lager, Royal Challenge, Max, Kings and

Belo are popular Indian beer brands.

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In various parts of north-eastern India, traditional rice beer is quite popular.

Several festivals feature this nutritious, quite intoxicating, drink as part of the

celebrations. The rice is fermented in vats that are sometimes buried underground.

Elephants are known to attack villages, with the primary agenda of drinking from these

vats. Following one such raid in north-eastern India, a police officer in Dumka was

quoted in the press as saying: "Tribals who love rice beer brew the liquor at home.

Elephants too are fond of this beer. Often it is found that, attracted by the strong smell of

the liquor, wild elephants tear down the tribal houses where the brew is stored."

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Overview of Indian Beer Market

Market Definition

The beer market consists of ales, stouts & bitters, low/no alcohol beers, premium

lager, specialty beers and standard lager. The market is valued according to retail selling

price (RSP) and includes any applicable taxes. The Indian beer market delivered strong,

stable growth over the last five years. Looking forward, this trend is expected to persist

through to 2011.

The Indian beer market generated total revenues of $874.2 million in 2006, this

representing a compound annual growth rate (CAGR) of 6.6% for the five-year period

spanning 2002-2006. Standard lagers proved the most lucrative for the Indian beer market

in 2006, generating total revenues of $760.3 million, equivalent to 87% of the market's

overall value. The performance of the market is forecast to follow a similar pattern, with

an anticipated CAGR of 6.8% for the five-year period 2006-2011 expected to drive the

market to a value of $1,213 million by the end of 2011.

Market Value

Year $ million INR billion % Growth

2002 677.7 29.9

2003 722.5 31.9 6.60%

2004 769.4 33.9 6.50%

2005 819.4 36.1 6.50%

2006 874.2 38.6 6.70%

CAGR 2002-2006: 6.6%

Source: Datamonitor

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Market Segmentation I

Sales of standard lager form the most lucrative sector of the Indian beer market,

with an 87% share of the market's value. In addition, sales of premium lager generate a

further 6.2% of the market's revenues.

Category % Share

Standard lager 87.00%

Premium lager 6.20%

Ales, stouts & bitters 3.20%

Low/no alcohol 2.90%

Specialty beer 0.70%

Total 100.0%

Market Segmentation II

India accounts for 1.3% of the Asia-Pacific market by value. In comparison, Japan

generates 45.5% of the market's revenues

Geography % Share

Japan 45.50%

China 36.40%

South Korea 9.50%

Rest of Asia-Pacific 7.30%

India 1.30%

Total 100.0%

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Market Share

United Breweries is the leading company in the Indian beer market, with a 50.3%

share of the market's volume. In comparison, SAB Miller accounts for 34.2% of the total

market's volume.

Market share in volume

Company % Share

APB 4%

United Breweries Limited 50.30%

SAB Miller India 34.20%

Mohan Meakin 10.10%

Other 5.30%

Total 100.0%

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Comparison of Indian & US Beer Industry

Indian Beer Industry

The Indian beer industry has been witnessing steady growth of 7-9% per year over

the last ten years. The rate of growth has remained steady in recent years, with volumes

passing 100m cases during the 2005-2006 financial year. With the average age of the

population on the decrease and income levels on the increase, the popularity of beer in

the country continues to rise.

The Indian beer market was estimated to be 6.7 million hectoliters (hl) in 2002-

03. Beer consumption has been growing rapidly at a CAGR (Compound Annual Growth

Rate) of 7% over the last 9 years, while growth in 2002-03 was 11 per cent. Indian

growth rates compare favorably with the global beer industry, which grew by about 2.6

per cent in 2001-02 Apart from providing strong growth; India also provides attractive

profit margins due to the consolidated nature of the industry.

A comparison between China and India, for example, reveals that the Chinese

beer market is marked by intense competition, with several players being marginalized.

In China there are about 400 brewers, of which the top 10 account for only 45 per cent of

the market. This has resulted in low profit margins for the Chinese beer players.

In contrast, the top two beer players in India account for about 75 per cent of beer

sales in India and the industry stands a chance to see more consolidation in the near

future. The effect of this consolidation can be seen in the fact that beer prices in India

rarely go down with the competitive pressures of new product or brand launches. In the

past, whenever beer prices have gone down, it has been due to either the lowering of

duties by the government or the deregulation of distribution (leading to lower margins for

the distribution channel partners). In neither scenario have the margins or revenues of

beer manufacturers been affected.

Per capita consumption in India is hovering around a measly 1 litres per annum.

These figures pale into insignificance if one compares them with those of Czech Republic

that has the highest per capita consumption of 156.9 litres per annum. Per capita

consumption is directly related to the taxation, according to an industry observer.

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US Beer Industry

The U.S. brewing industry is dominated by three firms – Anheuser-Busch, SAB-

Miller, and Coors – who together account for about 80% of beer shipments. Anheuser-

Busch has been the leading firm in the industry every year since 1957. Miller joined the

top three in 1976, following the introduction of Lite beer. Coors became one of the top

three brewers in 1989 after it expanded nationally and displaced Stroh. However, despite

a high level of industry concentration, the real price of beer has been stable or declining

since 1963. In recent years, a number of marketing concerns have affected the industry

leaders, including growth of beer imports to an 11% share; a decline of sales of leading

premium brands (Budweiser, Miller High Life, Miller Genuine Draft); competition from

new products and marketing methods (flavored malt beverages, direct shipments of beer

and wine); competition from specialty-craft brewers; and continued attempts by neo-

prohibition groups to demonize the industry, especially its advertising and marketing

practices.

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Determinants of growth of Indian Beer MarketThe Indian beer market has been growing rapidly over the last 10 years, due to the

positive impact of demographic trends and expected changes, like:

Rising income levels:

India is home to nearly one-sixth of the global population and is one of the most

attractive consumer markets in the world today. Various research studies have shown that

a rise in the income levels has a direct positive effect on beer consumption. The National

Council for Applied Economic Research (NCAER) projects India's 'very rich',

'consuming' and 'climbers' classes to grow at a CAGR of 15 per cent, 10 per cent and 2

per cent respectively. With this growth in income levels, Indian beer consumption is

expected to continue growing, at the very minimum, at the growth rates witnessed in the

last decade.

Changing age profile:

As a consequence of the high birth rates prevalent until the 1990s, a large proportion of

the Indian population is in the age group of 20-34 years. This age group is the most

appropriate target for beer marketers. This population trend will give a further boost to

the growth of beer consumption in India. Many global players are planning to enter the

Indian beer sector and they realise that a partnership with a local player is important to

establish a successful presence in India in a short time frame.

Changing lifestyles:

A deep-seated traditional social aversion to alcohol consumption has been a traditional

feature of the Indian society. However, as urban consumers become more exposed to

western lifestyles, through overseas travel and the media, their attitude towards alcohol is

relaxing. Social habits are undergoing a transformation as mixed drinks are becoming

more popular. The greatest evidence of this trend is the increase in beer consumption

among women. With increasing urbanisation, this acceptance is only going to rise.

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Reduction in beer prices:

The Indian consumer typically values an alcoholic beverage on the basis of its

'kick' factor versus its price. The following two factors therefore, affect the market for

beer. Firstly, as most states do not have a differential tax structure based on the alcohol

content, strong beer.

In India the future of beer industry is very much optimistic because:

1. India has predominantly a warm/hot climate

2. The beer-drinkers in the country are much younger than the average beer-drinker

elsewhere in the world. This makes them more likely to carry the brand with them

for a lifetime.

3. Also, as the target audience becomes younger, a light beer is expected to attract

first-time drinkers, since it is much milder than any of the other beers in the

country.

4. Increasing exposure to beer and wine drinking, mainly due to media and

consumer mobility.

All these factors combined make the scenario very promising for beer industry

and are 'in sync' with their strategy for India.

UB (United Breweries Ltd.) is the market leader in the Indian beer market with a

40% market share. Its flagship Kingfisher brand alone commands 25% market share. The

company has however been focussing on strong beer, which has driven growth. The

company introduced its strong beer, Kingfisher Strong during the year 2000 in the

selected market of Maharashtra and Karnataka. The move came as a reactive move

following increasing shift of consumers towards strong beer, a trend started by Shaw

Wallace. While the overall market grew marginally by 2%, the strong beer market grew

at 8-10% during the year at the expense of lager beer. The market is now skewed towards

strong beer with more than 60% of the market being strong beer market.

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Beer mix today is approximately 60 percent lager beer and 40 percent strong beer.

This ratio was very different 4 years ago. Over the last four years strong beer has been the

fastest growing segment. This was completely usurped by Shaw Wallace. As of today

while Shaw Wallace has approximately 28 to 30 percent of the strong beer market, UB

already has achieved 14 to 15 percent of that strong beer market and is growing very fast.

It launched Kingfisher Strong only in May of 2001. And once it is able to take Kingfisher

Strong national, it will try to match Shaw Wallace's market share over the next few years.

Apart from Kingfisher, and Foster's Beer, the other brands in the Indian market

are Carling Black Label, Carlsberg, Tiger, Baron’s, Heinekin, Budweiser, Corona,

Dansberg, Golden Eagle, Guru, Maharaja Premium Lager, Haake Beck, Haywards 2000

Beer, Haywards 5000, Haywards skol, Flying Horse Royal Lager, Taj Mahal, Hi-Five,

Ice, Kingfisher Diet, Kingfisher Strong, Kirin, KnockOut, Legend, London Diet, London

Draft, London Pilsner, Royal Challenge, San Miguel Lager, Sand Piper, Strohs and

Zingaro.

The major brands which belong to large groups in the industry (apart from UB)

are – Shaw Wallace - Royal Challenge Premium Lager, Haywards 2000 Premium Lager,

Haywards 5000 Super Strong, Hi-Five and Lal Toofan.

South African Breweries India Ltd. - Knock-Out, Continental and Three Lions, a

new brand that was launched in the autumn of 2001 by SAB in Uttar Pradesh,

Chandigarh and Himachal Pradesh.

Other possible competition – Radico Khaitan and beer international Interbrew has

formed a joint venture to distribute Interbrew's Beck's brand of beer in India. The

premium lager beer segment in India will be targeted. Radico has also announced the

launch of its international division.

A lot of new variants promise to gain prominence, but mainly in niche urban

segments. The sophisticated consumer who drinks beer for the experience and not to get

drunk will lap up ice beer or light beer. 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. Essentially, women shy away from beer consumption because it is

associated with calories, and has traditionally been a buddy drink, associated with pot-

bellied men sitting at bars and shooting darts.

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Indian Brewing industryToday, the brewing industry is a huge global business, consisting of several

dominant multinational companies and many thousands of smaller producers ranging

from brewpubs to regional breweries. More than 133 billion liters (35 billion gallons) are

sold per year—producing total global revenues of $294.5 billion in 2006.

InBev is the largest beer-producing company in the world, followed by

SABMiller, which became the second-largest brewing company when South African

Breweries acquired Miller Brewing in 2002. Anheuser-Busch holds the third spot.

Breweries in Maharashtra

Sr. Name of Brewery District Factory Address Phone No.

1 Associated Breweries & Distilleries

Thane Plot D103, Trans Thane creek ind area, Sion- Panvel Rd, A/P Shirwane

022-27671939

2 Hindustan Breweries & Bottling Ltd.

Thane C/23-24, Wagle Industrial Estate

3 Bombay Breweries Raigad Plot M-1, MIDC, Industrial Area

022-27410632

4 Mohan Rocky Spring Water Breweries Ltd.

Raigad Mohan Wadi, Khopoli, 02192-262461

5 Skol Breweries Raigad Kegaon, Tal Uran 022-27222139

6 Skol Breweries Ltd (Unit of Doburg Ltd.)

Satara E-1, MIDC Industrial Estate

7 Arlem (Aurangabad Breweries/Asia Pacific Breweries-Heineken)

Aurangabad Plot No H-9, 10,11,& 13, MIDC Industrial Area, Walunj

0240-2564172

8 Inertia Industries Aurangabad Plot No 1-10, MIDC Area, Walunj

0240-2554979

9 Foster’s India Aurangabad M-99, MIDC, Walunj 0240-2554563

10 Lilasons Breweries Aurangabad 1-1-7 MIDC, Walunj, 8 Bansilal Nagar

0240-2555198

11 Pals Distilleries Aurangabad L-5, MIDC, Walunj 0240-2555236

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Brewing Process

Beer is made by brewing. The essential stages of brewing are mashing,

sparging, boiling, fermentation, and packaging. Most of these stages can be

accomplished in several different ways, but the purpose of each stage is the same

regardless of the method used to achieve it.

Image Courtesy: Aurangabad Breweries Ltd.Batch Size: 100 HLTime Taken for each brew – 8.5 HrsMax. No. of Brews/ Days - 06 Nos.

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Fermentation Flow Chart

Image Courtesy: Aurangabad Breweries Ltd.

Total No. of Unitanks: 9

Total Fermnters : 8 Nos.

Total Storage Tanks : 12 Nos.

Total No. of Bright Beer Tanks : 04

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Stages in Beer Making

Mashing

Mashing manipulates the temperature of a mixture

of water and a starch source (known as mash) in order to

convert starches to fermentable sugars. The mash goes

through one or more stages of being raised to a desired

temperature and left at the temperature for a period of time.

During each of these stages, enzymes (alpha and beta

amylase primarily) break down the long dextrins that are

present in the mash into simpler fermentable sugars, such as

glucose. The number of stages required in mashing depends

on the starch source used to produce the beer. Most malted

barley used today requires only a single stage.

Sparging

Sparging (a.k.a. Lautering) extracts the fermentable liquid, known as wort, from

the mash. During sparging the mash is contained in a lauter-tun, which has a porous

barrier through which wort but not grain can pass. The brewer allows the wort to flow

past the porous barrier and collects the wort. The brewer also adds water to the lauter-tun

and lets it flow through the mash and collects it as well. This rinses fermentable liquid

from the grain in the mash and allows the brewer to gather as much of the fermentable

liquid from the mash as possible. The leftover grain is not usually further used in making

the beer. However, in some places second or even third mashes would be performed with

the not quite spent grains. Each run would produce a weaker wort and thus a weaker beer.

Boiling

Boiling sterilises the wort and increases the concentration of sugar in the wort.

The wort collected from sparging is put in a kettle and boiled, usually for about one hour.

During boiling, water in the wort evaporates, but the sugars and other components of the

wort remain; this allows more efficient use of the starch sources in the beer. Boiling also

destroys any remaining enzymes left over from the mashing stage as well as coagulating

proteins passing into the wort, especially from malted barley, which could otherwise

cause protein 'hazes' in the finished beer. Hops are added during boiling in order to

25

extract bitterness, flavour and aroma from them. Hops may be added at more than one

point during the boil. As hops are boiled longer, they contribute more bitterness but less

hop flavour and aroma to the beer.

Fermentation

Fermentation uses yeast to turn the sugars in wort to alcohol and carbon dioxide.

During fermentation, the wort becomes beer. Once the boiled wort is cooled and in a

fermenter, yeast is propagated in the wort and it is left to ferment, which requires a week

to months depending on the type of yeast and strength of the beer. In addition to

producing alcohol, fine particulate matter suspended in the wort settles during

fermentation. Once fermentation is complete, the yeast also settles, leaving the beer clear.

Fermentation is sometimes carried out in two stages, primary and secondary. Once most

of the alcohol has been produced during primary fermentation, the beer is transferred to a

new vessel and allowed a period of secondary fermentation. Secondary fermentation is

used when the beer requires long storage before packaging or greater clarity.

Pasteurisation

Pasteurisation is an optional stage of the beer process in which the beer is slowly

heated and cooled to kill off any existing bacteria in order to maintain longer shelf life.

This is generally a stage not included in higher end beers, but is quite common in mass-

produced beers such as American-Style lite beers, and other mass-produced lagers. It is

less common in ales as pasteurization can change the many flavours.

Packaging

Packaging, the fifth and final stage of the brewing process, prepares the beer for

distribution and consumption. During packaging, beer is put into the vessel from which it

will be served: a keg, cask, can or bottle. Beer is carbonated in its package, either by

forcing carbon dioxide into the beer or by "natural carbonation". Naturally carbonated

beers may have a small amount of fresh wort/sugar and/or yeast added to them during

packaging. This causes a short period of fermentation which produces carbon dioxide.

26

Ingredients of Beer

Beer is made from 4 simple ingredients; water, grain

(barley, wheat, rice, corn, or other cereals), yeast, and hops.

Other ingredients are used by many brewers to create

distinctive tastes and characters. Brewing beer is a mix of

both chemistry and art. The most successful brewer will not

only understand all aspects of brewing but will also have

the love and devotion of the beer drinker.

Water

Beer is composed mostly of water, and the water used to make beer nearly always

comes from a local source. The mineral components of water are important to beer

because minerals in the water influence the character of beer made from it. Different

regions have water with different mineral components. As a result, it is argued that the

mineral components of water have an influence on the character of regional beers.

Malt

The starch source in a beer provides the fermentable material in a beer and is a

key determinant of the character of the beer. The most common starch source used in

beer is malted grain. Grain is malted by soaking it in water, allowing it to begin

germination, and then drying the partially germinated grain in a kiln. Malting grain

produces enzymes that convert starches in the grain into fermentable sugars. Different

roasting times and temperatures are used to produce different colours of malt from the

same grain. Darker malts will produce darker beers.

Hops

The flower of the hop vine is used as a flavouring and preservative agent in nearly

all beer made today. The flowers themselves are often called "hops". Hops contain

several characteristics that brewers desire in beer: hops contribute a bitterness that

balances the sweetness of the malt; hops also contribute floral, citrus, and herbal aromas

and flavours to beer.

27

The acidity of hops acts as a preservative that—after its introduction—gave

brewers the ability to transport their product over longer distances, thereby allowing for

the rise to commercial breweries. The bitterness of beers is measured on the International

Bitterness Units scale.

Yeast

Yeast is the microorganism that is responsible for fermentation in beer. Yeast

metabolizes the sugars extracted from grains, which produces alcohol and carbon dioxide,

and thereby turns wort into beer. In addition to fermenting the beer, yeast influences the

character and flavour. The dominant types of yeast used to make beer are ale yeast and

lager yeast; their use distinguishes ale and lager.

Clarifying agent

Some brewers add one or more clarifying agents to beer. Common examples of

these include isinglass finings, obtained from swimbladders of fish; Irish moss, an

seaweed; Polyclar (artificial); and gelatin. Clarifying agents typically precipitate out of

the beer along with protein solids, and are found only in trace amounts in the finished

product.

28

Categorizing beer by

Yeast

The most common method of categorizing beer is by the behavior of the yeast

used in the fermentation process. In this method of categorizing, those beers which use

fast-acting yeast, which leaves behind residual sugars, are termed ales, while those beers

which use a slower and longer acting yeast, which removes most of the sugars, leaving a

clean and dry beer, are termed lagers. Differences between some ales and lagers can be

difficult to categorize.

Ale

Modern ale is commonly defined by the strain of yeast used and the fermenting

temperature. Ales are normally brewed with top-fermenting yeasts. The important

distinction for ales is that they are fermented at higher temperatures and thus ferment

more quickly than lagers.

Ale is typically fermented at temperatures between 15 and 24 °C (60 and 75 °F).

At these temperatures, yeast produces significant amounts of esters and other secondary

flavour and aroma products, and the result is often a beer with slightly "fruity"

compounds resembling apple, pear, pineapple, banana, plum, or prune, among others.

Lager

Lager is the English name for bottom-fermenting beers of Central European

origin. They are the most commonly consumed beers in the world. The name comes from

the German lagern ("to store"). Lagers originated from European brewers storing beer in

cool cellars and caves and noticing that the beers continued to ferment, and also to clear

of sediment. Modern methods of producing lager were pioneered by Gabriel Sedlmayr

the Younger, who perfected dark brown lagers at the Spaten Brewery in Bavaria, and

Anton Dreher, who began brewing a lager, probably of amber-red colour, in Vienna in

1840–1841. With improved modern yeast strains, most lager breweries use only short

periods of cold storage, typically 1–3 weeks.

29

Lambic beers

Lambic beers, a speciality of Belgian beers, use wild yeasts, rather than

cultivated ones. Many of these are not strains of brewer's yeast, and may have significant

differences in aroma and sourness.

Pale and dark beer

The most common colour is pale amber produced from using pale malts. Pale

lager is a term used for beers made from malt dried with coke. Coke had been first used

for roasting malt in 1642, but it wasn't until around 1703 that the term pale ale was first

used.

Dark beers are usually brewed from a pale malt or lager malt base with a small

proportion of darker malt added to achieve the desired shade. Other colourants—such as

caramel—are also widely used to darken beers. Very dark beers, such as stout use dark or

patent malts that have been roasted longer. Guinness and similar beers include roasted

unmalted barley.

30

Serving

Draught and keg

Draught beer from a pressurized keg is the most common method of dispensing in

bars around the world. A metal keg is pressurized with carbon dioxide (CO2) gas which

drives the beer to the dispensing tap or faucet. Some beers, notably stouts, such as

Guinness and "smooth" bitters, such as Boddingtons, may be served with a

nitrogen/carbon dioxide mixture. Nitrogen produces fine bubbles, resulting in a dense

head and a creamy mouth feel. Some types of beer can also be found in smaller,

disposable kegs called beer balls.

Cask-conditioned ales

Cask-conditioned ales (or "cask ales") are unfiltered and unpasteurised beers.

These beers are termed "real ale" by the Camra organisation. Typically, when a cask

arrives in a pub, it is placed horizontally on a stillage and allowed to cool to cellar

temperature, before being tapped and vented—a tap is driven through a (usually rubber)

bung at the bottom of one end, and a hard spile or other implement is used to open a hole

in the side of the cask, which is now uppermost. At this point the beer is ready to sell,

either being pulled through a beer line with a hand pump, or simply being "gravity-fed"

directly into the glass.

Bottles

Most beers are cleared of yeast by filtering when bottled. However, bottle

conditioned beers retain some yeast—either by being unfiltered, or by being filtered and

then reseeded with fresh yeast. It is usually recommended that the beer be poured slowly,

leaving any yeast sediment at the bottom of the bottle.

Cans

Many beers are sold in beverage cans, though there is considerable variation in

the proportion between different countries. People either drink from the can or pour the

beer into a glass. Cans protect the beer from light and have a seal less prone to leaking

over time than bottles. Cans were initially viewed as a technological breakthrough for

maintaining the quality of a beer, then became commonly associated with less-expensive,

mass-produced beers, even though the quality of storage in cans is much like bottles.

31

Vessels

Beer is consumed out of a variety of vessels, such as a glass, a beer stein, a mug, a

pewter tankard, a beer bottle or a can. Some drinkers consider that the type of vessel

influences their enjoyment of the beer. Some breweries offer branded glassware intended

only for their own beers.

Serving temperatureThe temperature of a beer has an influence on a drinker's experience. Colder

temperatures allow fully attenuated beers such as pale lagers to be enjoyed for their

crispness; while warmer temperatures allow the more rounded flavours of an ale or a

stout to be perceived. Beer writer Michael Jackson proposed a five-level scale for serving

temperatures:

Well chilled (7 °C/45 °F) for "light" beers (pale lagers),

Chilled (8 °C/47 °F) for Berliner Weisse and other wheat beers,

Lightly chilled (9 °C/48 °F) for all dark lagers, altbier and German wheat beers,

Cellar temperature (13 °C/55 °F) for regular British ale, stout and most Belgian

specialties and

Room temperature (15.5 °C/60 °F) for strong dark ales and barley wine.

32

By-products / WasteBeer brewing produces several byproducts that can be used by other industries.

During the malting of the barley, rootlets form on the grain and drip off. These can be

collected and used for animal feed. The hops that are filtered out from the finished wort

can also be collected and used again as fertilizer. The residual yeast from the brewing

process is a rich source of B vitamins. It can be put to use by pharmaceutical companies

to make vitamins or drugs, or used as a food additive. Used beer cans and beer bottles are

routinely recycled.

33

Taxation Policies

Excise Duties

Government has different policies for charging excise on mild beer and strong

beer which is highlighted in the table below.

Mild Beer Strong Beer

1 100% of Manufacturing cost 1 125% of Manufacturing cost

2 RS. 16 Per Litre 2 RS. 20 Per Litre

Which ever is higher of above two conditions

Octroi

Previously 4 to 7 per cent of octroi duty was charged on beer on billed invoice,

but government came to know the loop hole in the system of which undue advantage was

taken by the companies so to curb this government has decided to charge 4 – 7% octroi

on MRP of product after giving discount of 25%.

34

About APB

Corporate Profile

Listed on the Singapore Exchange, Asia Pacific Breweries Limited (APB) is one

of the key players in the beer industry. A joint venture between the Fraser and Neave

Group of companies and Heineken International, APB was established as Malayan

Breweries Limited (MBL) in 1931. It went on to open its first brewery in Singapore and

launched the award-winning Tiger Beer a year later.

To more accurately reflect the growing regionalization of its business interests,

MBL was renamed Asia Pacific Breweries Limited in 1990. Today, APB oversees a

portfolio of over 40 beer brands and brand variants, including Tiger Beer, Heineken,

Anchor and ABC Stout. The group operates an extensive global marketing network,

which spreads across 60 countries and is currently supported by breweries in countries

including Singapore, Cambodia, China, India, Laos, Malaysia, Mongolia, New

Zealand, Papua New Guinea, Sri Lanka, Thailand, and Vietnam.

With more than 70 years in the brewing industry, APB has been consistently

ranked by the Far Eastern Economic Review as one of the top companies in Asia. KPMG

also rated APB as among the top ten value creators in Singapore, for having consistently

added value for its customers, consumers and shareholders.

APB benchmarks itself against international brewing standards and observes the

most stringent brewing process that sees no less than 250 quality control checks. This

explains why APB breweries are among the forerunners in their respective markets with

various Quality Assurance Certifications including the ISO 9002, ISO 9001:2000, and

the Hazard Analysis and Critical Control Point.

APB's flagship brew, Tiger Beer commands a strong following in Asia and is

also widely enjoyed in many European Cities such as London, Manchester, Dublin,

Glasgow, Berlin, Copenhagen, Stockholm and many others. The internationally

recognised Singapore beer has accumulated a long list of accolades, awards and

distinctions.

APB is also one of the few corporate organizations in Singapore to set up its own

philanthropic foundation, the Asia Pacific Breweries Foundation to render financial aid

35

to causes in Creativity Development, Achievements in Human Excellence and

Humanitarian Awards.

Fraser & Neave, Limited

Fraser and Neave, Limited (F&N) is a leading Pan Asian Consumer Group with

core expertise and dominant standing in the Food and Beverage, Property and Printing &

Publishing industries. Leveraging on its strengths in marketing and distribution; research

and development; brands and financial management; as well as acquisition experience, it

provides key resources and sets strategic directions for its subsidiary companies across all

three industries. F&N's commitment is to grow and strengthen its core businesses so as to

provide sustainable earnings to shareholders through geographical expansions.

Today, F&N owns an impressive array of renowned brands that enjoy market

leadership across a mix of beer, dairies, soft drinks and beverages; residential properties,

retail malls and serviced residences; as well as publishing and printing services. Listed on

the Singapore Exchange, F&N's shareholders' funds are in excess of S$3billion, and its

total assets employed exceed S$7billion. F&N is present in more than 20 countries

spanning across Asia Pacific, Europe and USA and employs more than 14,000 employees

worldwide.

Heineken

Heineken has its roots in Amsterdam, where in 1864, Gerard Adriaan Heineken

acquired the Hooiberg (Haystack) brewery. This brewery itself dates back to 1592.

Heineken N.V. is the most international brewer in the world. The Heineken brand is sold

in almost every country in the world and the company owns over 115 breweries in more

than 65 countries with a total volume of 113 million hectolitres. Heineken owns and

manages a strong portfolio of more than 120 top selling brands, which has Heineken at its

centre.

36

Members of the Asia Pacific Breweries Group

Cambodia Cambodia Brewery Ltd.

China Heineken-APB (China) Management Services Co. Ltd. Shanghai Asia Pacific Brewery Co. Ltd. Hainan Asia Pacific Brewery Company Ltd. Kingway Trading (Shanghai) Co. Ltd. Jiangsu DaFuHao Breweries Co. Ltd.

India Asia Pacific Breweries (Aurangabad) Ltd. Asia Pacific Breweries (Pearl) Ltd.

Laos Lao Asia Pacific Breweries Ltd.

Malaysia Guinness Anchor Berhad

Mangolia MCS-Asia Pacific Brewery LLC

New Zealand DP Breweries Limited

Papua New Guinea South Pacific Brewery Ltd.

Singapore Asia Pacific Breweries (Singapore) Pte. Ltd. Tiger Exports Pte. Ltd.

Sri Lanka Asia Pacific Brewery (Lanka) Limited.

Thailand Thai Asia Pacific Breweries Co. Ltd.

Vietnam Hatay Brewery Ltd. Vietnam Brewery Ltd.

37

Senior Management of APB

Mr Koh Poh Tiong

Chief Executive Officer

Mr Chris Kidd

Regional Director, Indochina

Dr Les Buckley

Regional Director, S.E.A / Oceania

Mr Huang Hong Peng

Regional Director, CEO's Office

Mr Lee Meng Tat

Regional Director, China

Mr Vivek Chhabra

Regional Director, South Asia & Director, Group Business Development

Ms Loy Juat Boey

Director, Group Finance

Mr Nah Kok Chun

General Manager, CEO's Office

Ms Sarah Koh

General Manager, Group Corporate Communications

Ms Geraldine Lim

General Manager, Group Legal

Mr Edmond Neo

General Manager, Group Commercial

Ms Yvonne Yeo

Director, Group Human Resource

38

Registration No: B.S.T. NO. 431136-S-17 DT. 01-04-96CST NO. 431136-C-10 DT. 01-04-96

APB - INDIA

Office Address: 405, Rachanaa Magnum Opus,

Shanti Nagar Industrial Area,

Near Grad Haytt Hotel, Vakola,

Santacruz East, Mumbai 400 055

On 2 May 2006, APB made its

second investment in South Asia by

expanding its brewery network to

include India. APB currently holds a

76% stake in Asia Pacific Breweries (Aurangabad) Limited (APB (Aurangabad)) which

owns a brewery in Maharashtra. APB (Aurangabad) produces and markets Tiger, Baron's

and Cannon-10000.

Extending its footprint to Andhra Pradesh, APB on 30 June 2006, entered yet

another joint venture partnership to set up Asia Pacific Breweries-Pearl Private Limited.

APB holds the majority stake of 67% in the joint venture company which is building a

Greenfield Brewery just outside Hyderabad. The brewery is expected to commence

operation in 2008.

Today total turnover of the company is approximately 100 crores Asia Pacific

Breweries (Aurangabad) Ltd. & Pearl

Core Values

Be passionate about your work.

Instill sense of urgency.

Maintain the highest standard of ethics and integrity.

Work as a team, with respect for each other.

Deliver quality in all that we do.

Be cost conscious.

Maintain business confidentiality.

39

Have fun at work and strike balance between work and personal life.

40

Locations of Operation

Mumbai & Navi Mumbai

Thane & Raigarh

Delhi

Goa

Hyderabad

Aurangabad

Bangalore

41

Organization Structure

42

Brand Portfolio APB Maintains approach of a multi-brand portfolio in each market, it enjoys an

extensive reach across different market segments in different countries. Today, APB

oversees a portfolio of over 40 beer brands including Tiger Beer and Heineken and

several brand variants.

APB BRANDS in India Tiger beer

Baron’s Strong Brew.

Cannon 10000

Tiger Beer

Details of Tiger beer are discussed in detail in marketing mix section of this project.

43

Baron's Strong Brew

Launched in Singapore in 1997, Baron's Strong Brew is European to the last drop.

Traditionally blended from the finest European hops and malt for a strong smooth taste,

Baron's delivers a message of solid European heritage. Its authenticity has translated into

a strong presence in the high alcohol beer category. Baron's packaging is distinctive in

design, reflecting its premium image and quality.

Cannon 10000 Super Strong Beer

Cannon 10000 is a flagship brand of Aurangabad Breweries which is now

acquired by APB. Cannon 10000 enjoys strong brand recall and reach in Tier 2 and Tier 3

cities of India. As name suggests brand is famous for its super strong beer image and

stronger kick. Thus calling it strong beer for strong men.

44

45

APB International Brands

Heineken Embraced by drinkers in over

170 countries, Heineken possesses the widest

international presence of any international

beer brand. Distinctive in a green bottle, its

exclusive image finds rapport with

sophisticated young adult consumers who

enjoy cutting-edge music experiences and

premier sporting events.

ABC Extra Stout

Determined, confident and successful, APB's proprietary ABC Extra Stout

reflects its core drinker's values and self-image. ABC Stout drinkers know what they

want and will go the extra mile to get it. They want the best and do not settle for anything

less. Appreciated for its full-bodied and robust taste, ABC is the leading

premium stout in Cambodia.

Anchor

Anchor was first brewed in Singapore over 70 years ago using German

technology and brew masters. Anchor's value-for-money positioning and its refreshing

and signature crisp taste have clearly struck a chord with drinkers in over 10 countries in

Asia.

46

Marketing Mix of Tiger BeerMarketing mix is defined as the set of controllable tactical marketing

tools that the firm blends to produce the response it wants in the target

market. The marketing mix consists of everything the firm can do to influence

the demand for its product.

Robert Lauterborn suggested that the sellers’ 4 Ps correspond to the customers’ 4 Cs.

47

Product

Tiger beer is one of the world's finest beers, It was launched in 1932; Tiger Beer

is enjoyed in more than 60 countries across the globe including Europe, USA, Latin

America, Australia and the Middle East.. The distinctive taste of Tiger Beer is favoured

by the modern man of today. Tiger Beer is synonymous with self-progression, manliness

and social engagement. As a world class, award-winning quality beer that is winning the

world over, Tiger Beer is on track in realizing its aspiration of becoming

a leading pan-Asian beer brand.

Tiger Story “Brewed exclusively and with dedication

In Asia since 1932, using the finest quality hops

And malted barely, tiger beer has a distinctive

Clean and crisp taste that’s winning the world over”

Punch Line – It’s Tiger Time / Enjoy Winning

48

Various Captions of Tiger Print Ads overseas

Tiger has used various headlines in it’s print ads to capture consumer attention.

Some of it is as follows.

It’s Tiger time

Enjoy winning

Passion for winning

Sometime it’s OK to let other beat you but only in their dream

Reserved for winners

Here’s a way to start your winning streak

Pick a winner

I only serve winners

Don’t stop until you reach the top

Real winners have lots of love to give.

Winners go further

Winners get the best seats

The view is better when you’re on the top

Some victories are hollow; others have tiger beer in them.

49

Tiger Beer fact sheet

Launched in 1932, Tiger Beer is APB's flagship brand. Today, Tiger Beer is

brewed in ten countries and available in over 60 countries worldwide including

Europe, USA, Latin America, Australia and the Middle East.

Tiger is available in more than 60 countries with strong position in markets of

Southeast Asia such as Singapore, Malaysia and Vietnam.

In the western markets such as the UK and USA, Tiger Beer has been embraced

as a leading premium brew that hails from the Far East.

In May 2006, Anheuser-Busch was appointed the importer of Tiger Beer in the

USA. The tie-up has since given APB access to a strong network of 500

wholesalers and Tiger Beer is currently traded in 48 of 50 states there.

This authentic Singapore brand can be found in over 8,000 premium bars/clubs

and distribution outlets in UK's major cities such as London, Manchester, Leeds,

Newcastle, etc.

Tiger Beer's award-winning taste has picked up over 40 internationally acclaimed

accolades and awards. The most notable include the Brewing Industry

International Awards, UK, 1998 (the equivalent of the Oscar Awards for the

brewing industry) and more recently, Tiger Beer won the Gold medal in the

European Style Pilsener category of the 2004 World Beer Cup, a competition

which is considered "the Olympics of Beer Competitions" by the industry.

Tiger Beer has become such a recognizable and much sought-after import

premium beer in UK that it was named UK Cool Brand Leader each year from

2004 to 2006 - a recognition given to the coolest brands in UK.

Tiger Beer also topped a list of 50 beer brands and was crowned the NUTS (a

weekly magazine in the UK) Beer of the Year 2004. These recognitions

reaffirmed that apart from industry medals, Tiger Beer is also gaining greater

popularity with its growing number of fans.

50

Price Price is the amount of money charged for the product or service, the sum of

values that consumer exchange for the benefits of having or using the product or service.

Factors affecting pricing decisions

Primary considerations in price setting

51

Pricing in Mumbai

Following list provides information regarding number of companies and brands

operating in Mumbai along with their MRP and End Consumer Price (ECP).

ECP = MRP + Taxes. Prices are as in the month of June 2008.

APB (Aurangabad) Ltd

Brand Name Type M.R.P. E.C.P.

Cannon 10000 Strong Beer 54.15 64.98

Baron’s Strong Beer 58.35 70

Tiger Mild Beer 58.33 70

UB Group

Name of Brand Type M.R.P. E.C.P.

Kingfisher Strong Strong Beer 59.95 71.94

Kingfisher Mild Mild Beer 55.80 66.96

London Pilsner Mild Beer 35 42

Zingaro Strong Beer Strong Beer 55.79 66.95

SAB MILLER

Name of Brand Type M.R.P. E.C.P.

Foster Mild Beer 60 72

Royal Challenge Mild Beer 54.17 65

Haywards 5000 Strong Beer 60 72

Haywards 2000 Strong Beer 54.17 65

Knock Out Strong Beer 56.67 68

Castle Lager Mild Beer 45 54

Amberro Lager Mild Beer 35 42

LILA SONS

52

Name of Brand Type M.R.P. E.C.P.

Khajuraho Strong Beer 54.98 65.98

Khajuraho 10000 Strong Beer 54.98 65.98

Khajuraho Lite Mild Beer 33.34 40.01

Other Competitors

Name of Brand Type M.R.P. E.C.P.

Budweiser (Anheuser-Busch) Mild 62.49 74.99

Carlsberg (South Asia Breweries Pvt. Ltd.)

Mild 66.66 80

King Cobra Strong 56.66 67.99

Cobra Mild

Meakin 10000 Strong

53

Place

APB has breweries in Singapore, Malaysia, Thailand, Vietnam, Cambodia, China,

New Zealand, Papua New Guinea, India and Sri Lanka. It also has joint ventures in India,

Laos and Mongolia, and distributes to over 60 countries worldwide. The company's

stronghold is in Asia Pacific, especially in Singapore, Malaysia, Vietnam, Cambodia,

Papua New Guinea and New Zealand.

In the USA, Tiger Beer’s presence is strong in New York, Miami, San Francisco

and Boston.

In the UK, Tiger Beer can be found in over 8,000 premium bars/clubs and

distribution outlets in UK’s major cities such as London, Manchester, Leeds, Newcastle,

Inverness, etc.

In March 2006, Anheuser-Busch was appointed the U.S. importer of Tiger Beer.

The new agreement significantly broadens Tiger Beer’s U.S. distribution opportunities by

giving Asia Pacific Breweries access to Anheuser-Busch’s network of nearly 600

independent wholesalers. In 2005, the brand recorded double-digit growth in the United

States.

In India On-trade sales form the leading distribution channel account for nearly

70% share of the market by volume. Company has appointed total 16 distributors in

Maharashtra including Marathwada, & Vidrbha.

54

Distribution Network

Distributors

On / Off PremiseLocations

End Consumer

APBBreweries

55

Distributors of APBI

Area Number of distributor

Ahmed Nagar 1

Akola 1

Aurangabad 1

Dhule 1

Jalgaon 1

Jalna 1

Kolhapur 1

Mumbai 2

Nagpur 2

Nashik 1

Prabhani 1

Pune 1

Solapur 1

Thane & Ulhasnagar 1

Total 16

Distributors in Mumbai

Surya Sales & Marketing Ph. 2850 4349

Ray Road (Godown)

Girgaon (Office)

Mansha AgenciesPh. 2370 0720

Sakinaka

56

PromotionPromotion includes advertising and other forms of sales presentations, designed to

encourage fast consumer or trade up-take of a product or service. The form of any

promotion depends on the product, the marketing plan and its objectives, and on the

imagination of the product management team. It can vary from a simple in-store

demonstration, or sampling, or a tie-in with on premises. A range of promotional tools,

techniques and activities are mixed and matched to meet the needs of individual

marketing campaigns.

Major Tools in Marketing Beer

Publications: Companies rely extensively on published materials to reach and influence

target markets, including annual reports, brochures, articles, printed and on-line

newsletters and magazines, and audiovisual materials.

Events: Companies can draw attention to new products or other company activities by

arranging special events like news conferences, on-line chats, contests and competitions,

and sport and cultural sponsorships that will reach the target publics.

News: One of the major tasks of PR professionals is to find or create favorable news

about the company, its products, and its people. The next step is getting the media to

accept press releases and attend press conferences.

Marketing Activities at APBI Brand Advertising

Promotional Activities in on & off trade

Experiential marketing

Consumer planning

Relationship marketing

Consumer PR

Brand Website & online activities

Packaging

57

Factors Influencing Company Marketing Strategy

There are various forms of marketing which are used for promoting the product in

market. They are pull marketing, push marketing, ATL & BTL activities. Obviously not

every campaign will include every element in the mix, but every viable campaign must

incorporate some of them. They are explained in detail below.

58

Marketing professional need to understand following four concepts viz. Pull

marketing, push marketing, ATL & BTL for effective execution of any marketing

campaign. Company can select on the tool or combination of it based on product type and

marketing objective. Let’s look at them in detail.

Pull marketingAdvertising is one of the most powerful forms of "Pull" marketing—persuading

the customer to try a product and continue to use the product. It is a paid form of

impersonal promotion that can appear in many venues:

Print brochures or

flyers

Billboards &

Hoardings

Point-of-Purchase

Ads

Television and radio

ads

Push Marketing"Push" marketing occurs when the product is "pushed"

from the seller to the consumer. The most common type of push

marketing is when a company uses a direct sales force to all on

prospective companies or consumers. It is the salesperson's task

to persuade the consumer to purchase the product.

Above The Line (ATL) Activities

ATL denotes advertising expenditure on mass media

advertising, including press, television, radio, and posters. It is

traditionally regarded as all advertising expenditure on which a

commission is payable to an advertising agency. Company has

appointed various agencies to carry out its ATL activities

efficiently. They are:

Leo Burnett

Load Star

70 Media

Weber Shandwick

Below The Line (BTL) Activities

BTL Denotes advertising expenditure in which no

commission is payable to an advertising agency. For example,

59

direct mail, exhibitions, point-of-sale material, and free samples

are regarded as below-the-line advertising. POPs - Ads at

Consumer touch points

Wobblers

Shelf Talkers

Posters

Bar (on-premise)

Merchandise

Coaster

Tent Cards

60

APB’s Marketing Supporting Agencies

Ad-agency Leo Burnett

Media Planner McCann Erickson

Load Star (Working on the ATL plan)

Event Management Company Seventy Media

Sales Promotion / Brand activation Agency Market Men

RW Promotions Pvt. Ltd.

Candid Marketing

Outdoor Advertising Agency Outdoor Advertising Professionals (OAP)

Shop Signage Agency Signage World

Map Arts

PR Agency Weber Shandwick (A unit of The Interpublic Group)

Duties & Responsibilities of PR Agency Tracks & Monitors Media Daily.

Prepares Fortnightly/Monthly reports/ drouchers

Maintains Clips/Folders

Provides Collateral

Maintains Professional relationship with the media, by

regularly sharing information

Regularly follows up with media on press releases related

to beer

Ensures Event Collateral

maintaining journalists & publications profiles

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Sales Promotion

Sales promotion, a key ingredient in many marketing

campaigns, is a collection of incentive tools, usually short term,

designed to stimulate trial of a product or service, quicker or

greater purchase. These include discounts, gifts or give-away, free

goods, cooperative advertising, and trade shows. Advertising

offers a reason to buy; sales promotion offers an incentive to

buy.

Objective of Sales PromotionSales-promotion tools can be used to achieve a variety of

objectives. Sellers use incentive-type promotions to attract new

triers, to reward loyal customers, and to increase the repurchase

rates of occasional users.

Awareness

Trials

Tools of Sales Promotion

Sales promotion includes tools for consumer promotion:

Trade promotionIncludes:

Business and sales force promotion includes:

Samples,

Coupons,

Cash Refund Offers,

Prices Off,

Prizes,

Free Trials,

Tie-In Promotions,

Cross-Promotions,

Point-Of-Purchase

Displays,

Demonstrations

Prices off,

Advertising and display

allowances,

Free goods

Trade shows and

conventions,

Contests for sales reps,

Specialty advertising

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Relationship between PLC & Marketing Strategies

Like human beings, products also have life cycles. That is,

they're born, and then—over time—their sales grow, mature, and

finally decline. The strategies with which you market a product

need to change with each of these life-cycle phases. The table

below shows a few examples of how this might work:

PLC Stage

Characteristics MarketingObjectives

Market Strategies

Product

Introdu

ction

Low sales, high

cost per customer,

no profits, few

competitors

Create

product

awareness

and trial

Offer a basic

product,

Use heavy

promotions to

entice trial

Product

Growth

Rising sales and

profits, more and

more competitors

Maximize

market share

Offer product

Extensions

Product

Maturit

y

Peaking sales and

profits, stable or

declining number

of competitors

Maximize

profit while

defending

market share

Diversify

brands

Intensify

promotion to

encourage

switching to

new brands

Product

Decline

Declining sales,

profits, and number

of competitors

Reduce

expenditure

and "milk"

the brand

Phase out

weak Products,

Cut price;

Reduce

promotion

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Various sales promotions techniques adopted at APBI

1. PRODUCT LAUNCH OFFERS FOR DEALERS FOR TIGER Entry incentive scheme: 10 cases you get 4 cases free

(one time validity for 45 days from date of launch)

Subsequent offer

o 15 cases 1 case free

o 25 cases 2 case free

o 50 cases 5 case free

o 250 cases Singapore Trip (One person only)

o 450 cases Singapore Trip (Two person

only)

2. Rs. 2 for Cap of Baron’s to waiters

3. Gifts (Pens, Openers) to people who preferred to drink

Barron’s over other brand

4. On Premise promotion items like Ice buckets, Serving

tray, Ash Tray, Premium Openers, Wall Clocks etc. given

to Permit room owners

5. Promoters hired for Brand awareness campaign of Baron’s

and Tiger

6. Tiger Bucket offer (Get 4 Tiger in price of 3)

7. IPL Activation promotion

8. Association with MTV splitz villa – a youth oriented

program

9. Program on Radio One 94.3 FM with “Malini till mid

night moon” for 3 months from 19th May till 18th Aug.

10. Bar promoter girls promotions

11. Mall Activation

12. Permit room activations

13. Various promotional offers in institutions

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Meal Combo

Sunday Brunch

Tiger Bucket

(grab 4 pints at

price of 3)

Exclusive tiger

beer tie-ups

Bar night

Food Festivals

Karaoke Nite

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Permit Room ActivationPoints to be considered while permit room promotion

Time 6.30 pm to 10.30 pm

Days of promotion: Wednesday, Friday, Saturday, Sunday

Promoters need to reach outlet by 6.00 pm

Promoters need to carry certain items with them viz. Call

Sheet, Tent Cards, Banners, Tiger Quick Card.

Once they reach outlet they will ask rate of TIGER in that

particular outlet

While promotions they should keep Tiger Quart bottle

with them, and give it to consumers while they do quality

presentations

Steps followed for permit room activation of Tiger Beer

1. Identify promotion need

2. Hire Agency

3. Briefing the agency

4. Agency come out with plan / idea to promote product

5. Approval of idea or asked to come with new idea

6. Cost approvals by company

7. Agency to brief operation department

8. Recce (Reconnaissance) / Field survey by agency

9. Supplying gifts to be given to consumers

10. Start of activity / Execution of plan

11. Report submission by agency at the end of every day

activity

12. Evaluation of reports submitted by agency

13. Performance evaluation / Tracking of reorders

14. Process complete

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Tracking Effectiveness of sales promotion

There are various ways for checking effectiveness of sales promotions:

1. Check our sales volumes of outlet pre, during and post promotion

2. Go to junk yard of outlet where they keep empty bottles to check actual sales performance of brand.

Designing a Powerful Sales Promotion Use sales promotions with advertising: For example,

combine a price promotion with an ad emphasizing the

product's features or with a point-of-purchase display. Or

if you're marketing to businesses through trade shows or

conventions, combine poster ads with sales-rep selling

contests to get the most impact.

Be clear about your objectives: Your goals for sales

promotions will vary with your target market. If you're

targeting retailers, persuade them to carry your company's

new offerings, to stock more inventories, to encourage

off-season buying, or to offset competitive promotions.

Choose the appropriate promotion tools: Depending on

your objectives, select the right tools. For salespeople,

launch sales contests—with prizes to the winners. If

you're marketing to businesses through trade shows or

conventions, use publications, videos, and other

audiovisual materials to generate new sales leads, meet

new customers face to face, sell more to existing

customers, and educate customers.

Use sales promotions in markets of high brand

dissimilarity: Sales promotions tend to attract brand

switchers who look primarily for low price, good value, or

premiums. You'll get more and longer-lasting market

share if you use such incentives in markets of high brand

dissimilarity.

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Distinguish between price promotions and added-value

promotions:

Sales promotions, with their incessant prices off, coupons,

deals, and premiums, can devalue the product offering in

consumers' minds. Make sure your promotions enhance

your brand image.

Pretest your sales promotion program Use pretests

(small trial runs) to determine whether the promotional

tools you've chosen are appropriate, the incentive size will

produce enough sales response without costing the

company too much, and the presentation is efficient.

Packaging Packaging, as defined by Kotler and Keller, refers to ‘all

the activities of designing and producing the container for a

product.’ Though the primary purpose of packaging is to serve

against damage during the movement of the product, it is no

longer the only purpose that it serves. Packaging, and not the

product, is the first touch-point that the customer comes into

contact with. A substandard product within a unique packaging

might be easier to sell as against a superior product packaged in a

substandard pack. Superior packaging would not ensure repeat

sales though. Packaging is an effective tool to make the product

distinguishable in the clutter.

Packaging, the fifth and final stage of the brewing process,

prepares the beer for distribution and consumption. During

packaging, beer is put into the vessel from which it will be

served: a keg, cask, can or bottle. Beer is carbonated in its

package, either by forcing carbon dioxide into the beer or by

"natural carbonation".

Most products have multiple levels of packaging. For

example, Tiger Beer is packed in a glass bottle (primary

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package). These individual bottles are then packed in cartoon case

(secondary package). Each of these packages serve a different

purpose.

Tiger Bottle Shield Tiger Label Design

70

Primary Pack – 330 ml Pint Bottle Primary Pack – 650 ml Quart Bottle

Secondary Pack - 4 X 330 ml Bottle Pack Imported (etch-out)

Secondary Pack - 6 X 330 ml Bottle Pack Imported (etch-out)

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Beer Advertising

Advertising of beer is a topic that has frequently attracted

the attention of industrial organization economists. For beer

advertising several interrelated issues should be analyzed,

including:

1. The importance of advertising and product differentiation

for structural change in the brewing industry

2. The manner and extent to which brewers can strategically

alter market shares using advertising

3. The social costs of alcohol advertising and marketing.

Analyses of both issues include attempts to determine the

net welfare effects of beer advertising. On the third issue,

economists have analyzed advertising’s possible influence on

alcohol consumption and underage drinking, and as a contributor

to social costs such as drunken driving fatalities. Several

regulatory concerns are related to this issue, including use of

advertising bans; advertising placements that might target

underage youth; legal rights of states under the three-tier system

of alcohol distribution; and other advertising or marketing

restrictions that affect competition in the industry (e.g., price

advertising bans, price-posting and price affirmation laws)

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Surrogate Advertising in liquor industry

The rule says “Advertisements which lead to sale,

consumption and promotion of liquor should not be allowed.” So,

in Surrogate Marketing, a product which is different from the

main product is advertised, and has the same brand name as the

main product. The product is called as “surrogate” and

advertising through this channel is called “Surrogate

Advertising”. It may include CDs, water, clothing, Apple juice,

fashion accessories, sports goods or even events sponsoring!

Surrogate advertising has been around ever since someone

decided that certain things were probably not good in the interests

of the community at large. The wisdom of the Government

extends only to banning the advertising of tobacco or liquor. Not

to the manufacture or marketing of these supposedly deadly

substances. It is legal to manufacture liquor and cigarettes or

beedis. It is legal to sell cigarettes at every roadside stall, even to

unsuspecting children. But it is illegal to advertise it. And that is

precisely why you have to live with surrogate advertising.

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Surrogate for Tiger Beer - Tiger Translate

Tiger Translate is about art, music and encouragement, the

essence of it lies in the fact that it’s an experience. It is about

walking through spaces and feeling the vibes around.

So with the launch of the very first Tiger Translate event

in India, it is important to introduce people to this unique Tiger

Translate experience again and again again in different

regions of India

Why Tiger Translate in India

Given the fact internationally Tiger Translate was

conceived as a platform for Tiger Beer to interact with the youth

through art and music, post the launch of Tiger Beer in India it

became a natural progression to launch Tiger Translate in India

and expose the Indian youth to this unique Tiger Translate

experience.

While giving this experience, establish Tiger Beer as the

preferred beer with the youth and provides a stage that brings the

best of Asian creativity to the world and the best of world to Asia.

On May 24th 2008, Tiger Translate made its Indian debut

at Yashab near Red light in Kala Ghoda, Mumbai. In a first of its

kind event on the Indian scene where creative talents from across

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many art forms find home under a single roof, From live paint

artists to musicians, from photographers to audio-visual artists

will come together to celebrate Asian and in particular Indian

creativity on a never before scale

Tiger Translate launched in India on 24th May 2008

The event was launched through a glittering event in Red

Light and Yashaab. Guest lists comprising of the known names

form the various art faculty were present to pledge their support

to the Tiger Translate platform.

The launch for Tiger Translate was done by having an

interacting session with the media with the artists who had come

participate and perform at the launch of Tiger Translate. Around

657 guests/artists and numerous media turned out for this unique

Tiger Translate experience continued till very late in the night.

More info and interaction continues through the various

substances at different places in Mumbai featuring different Art

forms each of these events form a platform for Tiger Beer to

interact with it’s audience/TG. Finalists from Mumbai are eligible

to be showcased in the translate Global even taking place in

London

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Events under tiger translate

Graffiti Art

Photography

World Music

Visual Animation

Judges on the panel

Brinda chudasama miller

Tino Francorsi

Munir Kabani

Pravina & jamal macklia

Competitors of Tiger Beer in Mumbai

Carlsberg Budweiser Kingfisher Mild Foster

Carlsberg

The Carlsberg Group is a large brewing company

founded in 1847 by J. C. Jacobsen after the name of his son

Carl (Carl Jacobsen). The headquarters are in Copenhagen,

Denmark. The company's main brand is Carlsberg Beer, but

it also brews Tuborg as well as local beers. After merging

with the brewery assets of Norwegian conglomerate Orkla ASA

76

in January 2001, Carlsberg became the 5th largest brewery group

in the world, employing around 31,000 people.

Carlsberg's tagline "Probably the best beer in the world"

was created in 1973 by Saatchi and Saatchi for the UK market. It

began to appear in company corporate ads around the world from

the 1980s onwards.

Carlsberg operates in India through South Asia

Breweries Pvt Ltd, which manages the company''s businesses

in the Asian region comprising India, Sri Lanka and Thailand.

South Asia Breweries Pvt. Ltd.

South Asia Breweries Pvt. Ltd., Plot 52, Sector 32,

Gurgaon , India is Foreign direct investment company formed to

brew, market Carlsberg brand beer in India. Carlsberg beer from

South Asia Breweries is launched at various states in India,

including Delhi / NCR, Maharashtra, Punjab, W Bengal, U.P.,

Goa with three operational breweries one in Rajasthan and one at

Maharashtra and one at Himachal Pradesh. South Asia Breweries

Pvt. Ltd. currently employ over 200 professionals and

demonstrates strong market presence in share of premium beer

sector in India. Carlsberg launched in Mumbai on 14th May

2008.

Budweiser

Budweiser (Anheuser-Busch), from

Anheuser-Busch in the United States. Marketed as

"Budweiser" in United States and Canada, and

marketed as "Bud" or "Anheuser-Busch B" in Europe.

Budweiser was introduced in 1876 when company

founder Adolphus Busch set out to create the United States’ first

truly national beer brand – brewed to be universally popular and

77

transcend regional tastes. Each batch of Budweiser follows the

same family recipe used by five generations of Busch family

brewmasters. Samples of Budweiser are flown into St. Louis

everyday from each of A-B’s 12 regional breweries. There, in a

special tasting room, the beer is sampled and judged by our

brewmasters to ensure its quality and consistency.

Anheuser-Busch International and Crown Beers have

signed a 50:50 joint venture agreement to brew market and

distribute The King of Beers and other brands in India. Crown

Beers India Ltd. includes a new 500,000-hectoliter brewery in the

southern city of Hyderabad. Crown Beers India Ltd. will

collaborate on all local management, marketing and sales

decisions, according to a press release from the St Louis-based

beer major.

``The Hyderabad brewery was designed to uphold

Anheuser-Busch's high standard of quality for brewing

Budweiser,'' said Mr Srikanth M. Reddy, Joint Managing Director

of Crown Breweries Ltd.

An Anheuser-Busch brewmaster will oversee local

production of Budweiser at the brewery, to assure the same crisp,

distinctive taste enjoyed by consumers around the world.

Budweiser is an American lager brewed since 1876 using a blend

of US and European hops, and a combination of barley malts and

rice, the release added.

Crown Beers is planning massive below-the-line activities

to make its presence felt in the market.

Kingfisher Mild

78

The beginnings of what is today The UB Group are rooted

in the flagship company, United Breweries Limited, (UBL) also

referred to as the Beer Division of the UB Group. Led by Mr.

Kalyan Ganguly, President & Managing Director, it has around

48% market share in the country.

Millennium Alcobev Pvt. Ltd., (MABL), is the Joint

Venture Company in which UB along with its subsidiary and

Scottish & Newcastle of the UK have equal stake of 50%.

United Breweries Limited, the flagship company of the

UB Group, has an association with the brewing dating back over

five decades, starting with 5 breweries in South India in 1915.

From bullock cart-loaded barrels or 'hogheads' of frothing ale, the

Beer business has gone on to become the undisputed 'king' in the

Indian beer market.

Here, innovative, creative and aggressive marketing is

complemented by a strong distribution network. A management

focused on building brand equity on one hand and exploiting it to

the hilt on the other. UBL today boasts an impressive spread of

own and contract manufacturing facilities throughout the

Country.

Kingfisher has achieved international recognition

consistently, and has won many awards in International Beer

Festivals. Kingfisher Premium Lager beer is currently available in

52 countries outside India and leads the way amongst Indian

beers in the International market. It has been ranked amongst the

top 10 fastest growing brands in the UK.

In addition, UBL has also entered into mutli-faceted

strategic alliance with Scottish & NewCastle Plc (S&N), an

international brewery major, with $6 billion in revenue and a

market capitalization of $5.4 billion.

79

Fosters

Foster's Lager is an internationally distributed Australian

brand of filtered beer based in Melbourne, Australia and listed on

the Australian Stock Exchange, It is also brewed under licence in

many countries, including the USA, Canada and the People's

Republic of China. The European rights to the beer are owned by

Scottish & Newcastle, who brew and distribute Foster's in most

European countries including; the UK, Greece, France, Belgium,

Portugal, Finland, Germany, Spain, Sweden, Ukraine and the

Republic of Ireland. In the U.S and India, rights to the brand are

owned by SABMiller. SABMiller acquired Foster's India on 04

August 2006.

SABMiller

SABMiller plc is one of the world’s largest brewers with brewing

interests or distribution agreements in over 60 countries across

five continents. The group’s brands include premium

international beers such as Miller Genuine Draft, Peroni Nastro

Azzurro and Pilsner Urquell, as well as an exceptional range of

market leading local brands. Outside the USA, SABMiller plc is

also one of the largest bottlers of Coca-Cola products in the

world.

In the year ended 31 March 2006, the group reported US$2,626

million adjusted pre-tax profit and a turnover of US$15,307

million. SABMiller plc is listed on the London and Johannesburg

stock exchanges.

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Health effectsThe moderate consumption of alcohol, including beer, is

associated with a decreased risk of cardiac disease, stroke and

cognitive decline.

Brewer's yeast is known to be a rich source of nutrients;

therefore, as expected, beer can contain significant amounts of

nutrients, including magnesium, selenium, potassium,

phosphorus, biotin, and B vitamins. In fact, beer is sometimes

referred to as "liquid bread". Some sources maintain that filtered

beer loses much of its nutrition.

A 2005 Japanese study found that low alcohol beer may

possess strong anti-cancer properties. Another study found

nonalcoholic beer to mirror the cardiovascular benefits associated

with moderate consumption of alcoholic beverages. However,

much research suggests that the primary health benefit from

alcoholic beverages comes from the alcohol they contain.

It is considered that overeating and lack of muscle tone is

the main cause of a beer belly, rather than beer consumption. A

recent study, however, found a link between binge drinking and a

beer belly. But with most overconsumption it is more a problem

of improper exercise and overconsumption of carbohydrates than

the product itself.

There is conclusive evidence that heavy and prolonged

consumption of alcohol leads to liver disease including cirrhosis

and malignancy. Heavy alcohol consumption has also been linked

to pancreatitis and gout.

Several diet books quote beer as having the same

glycemic index as maltose, a very high (and therefore

undesirable) 110. Critics rejoin that beer consists mostly of water,

hop oils and only trace amounts of sugars, including maltose.

81

Community & Environment

A Responsible Beer Company

As a responsible beer company, APB believes in

contributing to the communities in which its breweries operate.

While the Asia Pacific Breweries Foundation has been fulfilling

APB's philanthropic commitment to society, APB's breweries

have also demonstrated their dedication to the society in which

they are based. The breweries have each in their own ways,

supported causes in education, community welfare and the

advocacy of Responsible Alcohol Consumption.

The commitment of APB to environmental protection and

worker safety extends throughout the organization. Apart from

seeking to continually improve its environmental performance by

operating more efficiently and reducing waste, APB also takes the

responsibility of providing a safe workplace very seriously. Our

Environment and Safety Report provides an overview of our

activities, including how our performances measure up to the

targets set.

Asia Pacific Breweries Foundation

Instituted in June 1994, the Asia Pacific Breweries

Foundation (APB Foundation) has been fulfilling APB's

philanthropic commitment to society. Its philanthropic intent

spans three areas namely Creativity Development, Human

Excellence and Humanitarian Causes.

Since its inception, the Foundation has provided grants

and other forms of support to over 150 initiatives, benefiting

disadvantaged homes and charitable organizations, medical

82

research bodies, theatre and music groups and scholarships

programs amongst others.

The APB Foundation Board of Trustees, assisted by its

Advisory Committee, envision the Foundation to play a

constructive and developmental role in the community, and

working with partners who share common altruistic goals to

better serve societal needs both in Singapore and the Asia Pacific

region.

Responsible Alcohol Consumption

As responsible corporate citizens, APB and its breweries

advocate responsible alcohol consumption and are pro-active in

company stance against alcohol abuse, in particular underage

drinking and drink driving.

Mindful of social responsibilities, APB has always

ensured responsible marketing and promotion of our beers and

support responsible and sensible drinking campaigns which

promote public awareness and educate consumers on responsible

and moderate drinking.

Amongst the many initiatives APB has participated in are

Get Your Sexy Back, a campaign that promoted drinking in

moderation amongst youths in Singapore; the Know When

campaign held in collaboration with the National Traffic Safety

Committee of Vietnam to educate the public on drinking

responsibly; the annual Responsible Drinking campaign by the

Singapore Traffic Police; Responsible and Ethical Alcohol

Consumption in Thailand; and the Social Alcohol Model program

in Papua New Guinea.

Every bottle label of Tiger bottle quotes “Enjoy Tiger

Responsibly” this shows commitment of company towards

responsible alcohol consumption.

83

SWOT Analysis of APBI

Strength

• Production capacity

• Premium Quality Product

• Experience Management team

Weakness

• Low Advertising & Promotion Spends

• Less Manpower

• Products not available in Cans

• Low Market Share

• Inefficient Distributors

• Less Market Visibility

Opportunities

• Regional Expansions

• Production Volumes

• Higher Profits

• Increased Market share

Threats

• Competitors High Spends

• International Players

• Government Laws

• Taxes & Tariffs

84

Why Beer better than MilkThere is more protein in beer than in milk. What's more,

beer has fewer calories than apple juice, milk or cola and contains

neither fat nor cholesterol. These claims have been made by the

All India Brewer's Association.

The apex body representing 42 beer manufacturers, has

urged the food processing ministry to delink beer from the status

of liquor and whisky, so that it can be advertised and marketed

like any other product. They have argued that liquor has an

alcoholic content of 42.8% while beer has only up to 7%.

Beer is battling to get the status of milk. The all India

Brewer's Association (AIBA) have argued in a memorandum to

the government that a glass of beer contains more protein than

does the same quantity of milk. Not just that. They have said that

the calorie content in beer is lesser than that of a bottle of apple

juice, milk or any cola. So do not club beer with hard liquor in

computing tax, argues the industry.

"It has been given the status of a fast moving consumer

good (FMCG) that can be traded over the counter at any

departmental store", says the Vice-President and President of

Shaw Wallace. "Beer distribution has to be made open as in

Singapore."

The industry's representation for removing beer

restrictions are straight and simple: Beer is only an agri-food.

Arguing that it has neither fat nor cholesterol, the beer

manufacturers' body has told the government that an average

bottle of beer gives four vital minerals and five important

constituents of vitamin B and proteins. Raw material for beer is

malt, the same as for health drinks Maltova and Horlicks.

85

In their representation titled 'Indian Beer Industry - Needs

Policy Support'. AIBA has pitched beer as a "mild and healthy

beverage", conforming to the tenets of "responsible" drinking.

"Beer has to be taxed on the basis of alcoholic strength

keeping levels on alcohol content as bench mark", say many of

the top manufacturer's. Duties and tax account for 40% of the

beer cost in India while it is of the order of 20% in US, France

and Germany. They have said that the cost of one litre of beer

taken as percentage of daily income in the high selling states of

Andhra, Karnataka and Maharashtra is close to 28%.

The comparable figures for US, France and Germany are

less than 3%. And if India attains this level of even 15% then the

beer should cost around Rs. 30 per litre

(Rs. 20 per bottle).

"It is a highly capital intensive business. It is not feasible

for the brewers to sustain the current market pressure", says the

top shots. "Brewing companies are increasingly being declared

sick", they add.

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Top 10 Reasons Beer is Good for your

Health

Everyone is looking for a reason to drink beer. Right? It

turns out that a lot of people are. So here are 10 great reasons to

drink more beer. Not only that, but they're all true. Beer really is

good for your health, so drink up!

Beer Reduces Stress        Alcohol in general has been shown to reduce stress. This one

is obvious, and may be the best reason beer is good for your

health.

Beer is Good for the Heart

        A study was conducted from 1982 - 1996 on the elderly. It

was found that those who drank at least 1.5 per day had a 20-50

percent less chance of having heart failure.

Beer Improves Blood Circulation

        Beer increases your "good" cholesterol, or HDL (high-

density lipoprotein) cholesterol. Its basically a kind of blood fat,

so it reduces blood's tendency to clot.

Beer is Chock Full o' Fiber

        The fiber comes from the cell walls of the malted barley. A

liter of beer can have as much as 60% of your daily recommended

fiber. The extra fiber will keep you regular and can also lower the

risk of heart disease.

Beer as a Multi-vitamin

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        Beer is a significant source of magnesium, selenium,

potassium, phosphorus, biotin, folate, vitamin B6 and vitamin

B12

Beer can Prevent Strokes

        A study published in Stroke magazine in 2001 showed that

alcohol drinkers have fewer strokes. Because it thins the blood, it

increases the circulation in the brain, thereby protecting from

silent strokes which are cause by tiny blood clots.

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Beer keeps your Brain Young

        A large study, published in the December 2001 issue of

Alcoholism: Clinical & Experimental Research, was conducted

on elderly italian men and women. It showed that moderate

drinkers had a 40% lower risk of mental impairment.

Beer is Good for your Liver

        Alcohol expands the small blood vessels in the liver. This

speeds up metabolism so it can help clean all the toxins out of the

liver. This is from Beer Net Publication, April 2001 Biological

Institute.

Beer Cures Insomnia

        Lactoflavin and nicotinic acid, both present in beer, can

promote sleep. Also hops are a natural sedative.

Beer Fends off Gallstones

        According to Professor Oliver James at the University of

Newcastle, beer protects against gallstones and kidney stones.

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The Future

Recently, concern among citizens' groups over the

excessive consumption of alcoholic beverages by some

individuals has initiated additional government regulation of beer.

New warnings have been added to labels, warning of impaired

driving, hazards to pregnant women, and other health ailments

associated with alcohol consumption. Reduced tolerance for

drunk driving, for example, encouraged many brewing companies

to advocate responsible consumption. As a result, certain states

have established laws to control the alcoholic content of beer for

sale within their jurisdiction. The beer industry will continue to

contend with these large social issues.

Much research is currently conducted in the area of plant

engineering. Brewery researchers are manipulating the genes of

barley and other common grains to increase their resistance to

disease and to encourage helpful mutations. This genetic research

also extends to improving the yeast. Current research is aimed at

producing yeast strains that resist contamination and to making

new varieties of yeast that can ferment carbohydrates, which

common yeasts cannot process.

The brewing industry is also making advances in the area

of rapid testing for contaminants. New technology such as DNA

probes and protein and chromosome finger-printing is being

developed by brewers to detect microorganisms that can

adversely affect the brewing process. Some of this technology is

already in use in medical science for drug screening, AIDS

testing, and pregnancy testing. Brewers are eager to adapt this

cutting edge research to the beer industry.

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Conclusion

In a massive (over 100 million cases), fast-growing and

difficult beer market like India where beer drinkers have

strong brand affinities and where brands like Kingfisher

are almost ubiquitous, Tiger beer needs to establish its

unique identity and consumer base by focusing on a niche

market (as it cannot spend / act like big beer brands with

deep marketing pockets)

Tiger beer is a world beating, award winning, great tasting

beer of very high quality. Tiger beer has effectively been

using the platforms of electronic music and contemporary

art to connect with its target consumers in the Indian

market.

Marketing spends are limited so we need a guerilla

marketing strategy to win.

Although beer consumers have strong loyalties, there are

still needs which are not being met by their current beer

brands.

Beer is largely perceived as a mass market product with

no clearly defined target consumer. Tiger beer needs to

focus on a targeted niche market to differentiate itself and

position itself uniquely in the consumer’s mindscape.

Focus should be on the upwardly mobile beer drinker who

enjoys drinking beer but still has status & discernment

needs which he would like to communicate through his

brand choices

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Questionnaire

1. List the company's product line(s) and the amount and percentage of total sales represented by each.

2. What is Company’s USP?

3. How is the company's product or service distributed to its primary market?

4. List the company's major competitors.

5. What is the company's market share? Attach market study or survey, if available.

6. Describe the nature of the regulatory environment in which the company operates.

7. List the company's distributors for Mumbai location.

8. What are the factors which should be kept in mind while marketing beer in India?

Offering

9. What need is your offering designed to fill?

10. What improvements can we make to our offering to better meet customer needs?

Messages

11. What does each of our identified target audiences know and believe about us today?

12. What is the single most important message that we must communicate to ALL of our target audiences?

13. What kind of personality do we want to portray in our communications? What tone? What flavor?

Target Audience

14. How can the market be segmented into logical customer groupings?

15. What market segments are we targeting (list segment name and characteristics)?

16. What segments are we not targeting?

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17. What is our customer’s primary reason for buying or wanting to use our product or service?

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Marketing Strategy - Sales & Pricing18. What are our business objectives over the next two years?

Be as specific as possible, and make sure to address the

following goals:

• Number of customers

• Revenue

• Profit

• Market share

19. What is the process for selling our services or products

(list the key milestones in the process)? Do we use any of

the following processes?

• Direct personal sale

• Direct online sale

• Indirect through channels

20. How important is price in the purchase decision process?

21. What is our current pricing structure, including discounts, product options, rebates, and so on?

22. Which of our competitors is considered the price leader? What does the price leader charge for its offering?

23. What are our other competitors charging for their offerings?

24. What is the perceived value of our offering as compared to its price?

Competition

25. Which companies pose the greatest threat, and how do they differentiate themselves?

26. List the strengths and weaknesses of each of your competitors.

27. Which competitors have the largest market share within our target market segments?

28. Which competitors have the greatest visibility with our target audience?

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29. How will we differentiate ourselves to best combat competition?

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Bibliography & Webliography

Datamonitor, Beer in India, Industry profile, Publication

December 2006

The Business Line (Internet Edition)

Maharashtra state excise basic statistics 2005

Compiled by commissionerate of state excise.

International Dictionary of Marketing - Daniel Yadin

Marketing Management Millennium Edition by Philip

Kotler

1. http://en.wikipedia.org/wiki/Portal:Beer

2. http://www.indiadiets.com/Health_flash/News/

Beer_better_than_milk.htm

3. www.tigerbeer.com

4. www.apb.com.sg

5. http://www.drinks-business-review.com/

6. www.ratebeer.com

7. www.drinkingbeer.net

8. http://www.indianmba.com/Faculty_Column/

9. http://indiabrew.blogspot.com/

10. http://www.thehindubusinessline.com

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