Beer Strategy

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STP Analysis of

different Beer Brands

By :Souvik SenSushant SagarSayantan KarSumitra Nandan SrivastavaPriyanka GhoshPuja Bhalotia

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Industry Overview :

The beer market in India is estimated to be over Rupees 3000corers.

Annual consumption of beer is over hundred 10 million cases.

Rising income the Indian consumer, change in age profile and

lifestyle as well as a reduction in beer prices are major factorspushing this growth.

In India, beer sales grew at nearly 90% compared to, less than

60% growth for other alcoholic drinks and according to industry

sources Indian beer market is expected to nearly double itself to 23.3million hL by 2012 from 12.5 million hL at present.

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More than 80% of the market is controlled by the two players, UB and SAB Miller.

While UB with brands like Kingfisher, Zingaro and Kalyani Black has a 48% market

share, SABs bouquet of acquired brands- Haywards, Royal challenge, Knock Out

and Fosters deliver a combined market share of 37%.

According to market analysts international brands excepting Fosters have made little

impression in India till date but according to these new entrants Indian beer market

just started to evolve and has a huge growth potential.

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Classification of Beer:

Lager: It is stored for a specified period before being bottled or canned.

Pilsner: A type of lager beer, it is light with 3.0 3.8% alcohol and has a

medium hop flavor.

Ale: Top fermented, this kind of beer has distinct hop aroma. The alcohol

content is around 4 5%.

Stout: Dark with burnt flavor and strong malt aroma; it is heavily hopped

and contains 5 6.5% alcohol.

Porter: This is less dark than stout, even less hopped and is somewhat

sweet. Alcohol content is around 5%.

Creamy Ale:A highly carbonated beer that is produced by a combination of

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

colors.

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STP Analysis of following Beer

BRANDS

1. Domestic: Kingfisher

2. International: Fosters

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Kingfisher

Kingfisher History: Parent company of Kingfisher, United

breweries was established in 1857 with the name Castle breweries.

It was renamed to United Breweries in 1915 and started

manufacturing beer from the year 1944 under the label Exports

Beer. Market Position: It is the largest selling brand in India and

commands more than 30% share in the beer market. In 2005-2006 it

recorded 28% growth.

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Segmentation

Geographic segmentation: It is available through out

India and is dominant in particularly in south and west

India.

Demographic Segmentation- Age basis Youth: 16 to 25yrs. (kingfisher mild)

Adults: 25yrs & above (kingfisher strong)

Segmentation based on Situation:

Birthdays, Anniversary, New year parties etc.

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Target Market:

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Promotions:

Kingfisher tagline King of good times is one of the most popular and most

successful tagline in India.

Since advertising of liquor is banned in India, Kingfisher uses surrogate

advertising methods like using mineral water and sodas.

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

accessories under Kingfisher brand name.

Each year Kingfisher brings out new calendars featuring top models in

swimwear.

Kingfisher also promotes itself by sponsoring events like fashion shows,

sportspersons like Narain Karthikeyan, East Bengal soccer team. UBpromoter also acquired a Formula- One team (Force India).

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Contd.

Kingfisher also deals in sports merchandising starting with an ad featuring

Sourav Ganguly and Ajay Jadeja in 1997.

With the launch of Kingfisher airlines combined promotion is possible which

helps the brand promotion a lot. Kingfisher also ventured into other

businesses with same brand name making the brand more visible and

publicity easier.

Kingfisher recently tied up with NDTV for their new lifestyle channel NDTV

Good Times for five years

And finally the Sultan himself, Dr. VijayMallya, the Big Daddy of all brands,

the flamboyant Czar of the liquor industry who is the youth icon of a million

hearts. His sole presence outweighs all other competitors taken together.

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Fosters

History: Fosters was established by two brothers W M and R R Fosters in

the year 1986. SABMiller is the parent company which runs Fosters group,

a premium global multi-beverage company delivering a total portfolio of

beer, wine, spirits, and cider non-alcohol beverages. In the 70s Fosters

started exporting to USA and UK and entered the Indian market in a 1998.

Fosters is considered as a consumer driven brand.

Market Position: Fosters belongs to the SAB Miller stable which is the

second largest beer company in India, in terms of market share. Till now it is

the only international beer brand which successfully captured a significant

share in the Indian market.

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Geographic Segmentation

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Segmentation

Geographic segmentation: It is available through out

India and dominant in north & south India.

Demographic Segmentation- 20-30 Age group with

low disposable income. Segmentation based on Situation:

Fosters maintained its Australian identity throughout

the spirit industry.

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Target Market:

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Promotion :

Australianness is the essence of Fosters brand image is promoted

in every market in the world. All Fosters lager theme advertising is

consistent with an Australian positioning.

The overseas advertising of the product often focuses upon the

Australian connotations of the beer, e.g. with reference to

stereotypical Australian imagery such as kangaroos, exaggerated

accents, and hats with corks on strings.

Since direct promotion is banned in India Fosters use surrogate

advertising method using mineral water of the same brand name.

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Contd.

Fosters promoted its brand by sponsoring various sports like

cricket, to enter the Indian market. Afterwards it withdrew from

cricket and started promoting sports like football, rugby, motorsport

etc.

Fosters is deeply committed to promoting responsible consumption. While Fosters does not provide medical advice, nor attempt to

advise individuals on important and complex medical issues, the

Company is committed to ensuring that consumers access the best

available information regarding alcohol and their health.

Steeping into Mens Fashion apparels collections for better brandvisibility.

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Conclusions:

Traditional beer markets in Europe and USA are either flat or are in

a state of decline, whereas India still has a huge untapped market.

For this international beer companies are coming to India almost

every quarter.

Kingfisher, since its origin proved to be the marketing savvy brandand even though it was the largest selling beer brand but when

Fosters entered the Indian market Kingfisher sniffed possible

competition and invested heavily in brand visibility and positioning.

Kingfisher changed its logo and adopted a new logo and tagline,

sponsored the West Indian cricket team and also used the Indiancricketers to sponsor its product.

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THIS STUDY NOWHERE

ENCOURAGES ALCOHOLCONSUMPTION .

ALCOHOL CONSUMPTIONIS INJOURIOUS TO

HEALTH---

THANK YOU