Beer Final

8/6/2019 Beer Final

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Indian beer market is growing at 30% approximately.

60% of the population under the age group of 30 years

the Indian beer market is expected to nearly double to 23.3million hectoliters by 2012 from 12.5

Foreign breweries are eyeing the Indian beer market which is

largely untapped and has growth potential

Market

Drivers &Challenges

With current duopoly situation and entry of foreign players beerindustry in India will quickly witness consolidation

Premium beer segment is outpacing the mainstream beer market

Emerging new sub-categories of beer with consumers in India

open for experimentingGrowing demand for barley and evolving contract farming

Trends

More than 80 per cent of the market is controlled by the twoplayers, UB and SAB Miller

With Carlsberg and Anheuser Busch coming with their Globaloffering there is going to be an exciting battle in the beer industry

Competition

Drivers

� Young population

� Low per capita consumption

� Rising income level

Challenges

� Regulatory Environment

� High tax structure

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Global trends in Beer IndustryGlobal trends in Beer Industry

�Beer has maintained a compound

annual growth rate (CAGR) of

4.8% globally

�Despite economic pressures, totalglobal beer consumption recovered

slightly in 2010, growing at over 2%

after a downturn in 2009, caused

by the global economic recession

�The main growth coming fromChina, Africa, India and South

America while developed markets

declined by 1.7%

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Global beer market volume growthis forecast to be 2.5%, led by

continuing strong performances in

Asia, Africa and Latin America

China and Africa are expected to

grow by almost 5% and Latin Americaby almost 3%. The 25 fastest-growing

markets are forecast to deliver over

5% CAGR in beer volumes

China is expected to account for

almost 40% of this growth with

Vietnam, Brazil, Ukraine, Nigeria, India

and Peru contributing significantly

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Indian Market Overview

Drivers & Challenges

Characteristics and Trends

Key Developments

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Indian Beer Market

Huge Market

Potential

Entry of International

Brands

Rising income levels

Drivers

Challenges

Regulatory

Environment

High tax Structure

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Rise in barley price

and emergence of contract farming

New forms of beer

being introduced inthe market

Premium beer market outpacingmainstream beer

market

Increase in merger and acquisition

activity

Characteristicand trends

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With the Global Beer market being stagnant, the focus ofInternational firms is on the untapped potential in India

�Indian beer market has witnessed a

steady growth of 10% over a decade

�India is currently among the top 3

markets in Asia in terms of growth rates

�The market is set to flourish with

Global breweries eyeing India

�Per capita consumption amongst the lowest

(Global average 22litres)

�Globalization playing a pivotal role

�In the last 9 years beer consumption has been

growing rapidly at a CAGR of 7%

�India is one of the worlds fastest growing

consumer markets

�Beer sales grew at nearly 90 per cent,compared to a less than 60 per cent growth for

other alcoholic drinks

�A rapidly growing population, an emerging

middle class with rising per-capita incomes and

blossoming urban centers make India a powerful

emerging market

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Objectives of the Research

To study consumers behavior towardsglobal beers

To study the factors affecting buying

behavior of beersTo find out consumer awareness towards

global beers

To study consumption pattern of beer

To study alternative ways of productpromotion

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Major findingsMajor findingsMajority are males and only 12% are females

A staggering 81 % are from the age group of 21-35

40% drink beer 1-2 times and 30% drink beer 3-4 times a week

36% of the respondent consumes 5-6 pints in a regular drinking

31% respondents always particular about the brand of beer. And the samepercentage are sometimes particular about the brand of beer they drink

46% sometimes experimented with the brand of beer and a close 40% never experiment with the brand of beer

µFriends get together¶ & µFun¶ are the most influencing factors to consume beer

Beer is most consumed when with friends

Taste ,price and alcoholic content are the most important factor why they like their beer

Favorite Indian brand ± Kingfisher

Favorite International brand - Tuborg

Favorite beer brand overall µKingfisher¶ followed by µTuborg¶

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Weighted Average for Indian & Global Beer Brands

Weighted Average for Indian Beer

Brands

Indian Beer

Brands

Weighted

Average

Kingfisher 8.16

Haywards 6.86

Royal Challenge 6.75

Khajurao 5.76

Weighted Average for Global Beer

Brands

Global Beer

Brands

Weighted

Average

Fosters 7.68

Carlsberg 7.64

Tuborg 7.46

Budweiser 7.18

Parameters Weight Rate Product

Taste 8.11 XXX XXX

Visual appeal 7.85 XXX XXX

Brand Image 7.90 XXX XXX Alcohol Content 7.49 XXX XXX

Convenience to consume 7.39 XXX XXX

Market Availability 7.09 XXX XXX

Price 7.36 XXX XXX

Effervescence Quality 7.18 XXX XXX

Total 60.37 XXX

Weighted Average 7.469 137

Weight * Rate = Product

Weighted Average = Total product /Total weight

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Recommendations Increase the consumption amongst women drinkers by creating a new brand targeting women

drinkers

Increase the number of times beer is consumed in a week by positioning beer as a refreshingdrink

As the industry has the constraint of surrogate advertising, increasing BTL activities in bars,pubs, sports bars & restaurants

Providing tours to the distillery and making it into an event or an outing destination

Trying to build loyalty by creating online communities, sport bars, drinking friends

Creating a distinct and standardized taste as according to the research Taste plays a pivotalrole more so than Price

Tuborg has created a niche for itself because of its Taste as well as the packing and Kingfisher

has created a niche by its distinct taste and brand image ,Other brands can create a niche for themselves like Budweiser can promote itself as the most favorite American past time

Going ahead branding will play an important role, with so many Indian as well as foreign brandscoming in India

A brand has to focus its communication on FRIENDS and FUN as according to the researchthese are the words beer is most associated with. Budweiser can capitalize on its name anduse friendship in their communication as their name BUD can be capitalized upon

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CHEERS !!!!!

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Beer Final